Corporate Management Integrated Statutory Financial

Overview Discussion and Analysis Report Reports Statements

CHAIRMAN’S STATEMENT

macroeconomic and geopolitical upheavals, India has

managed to stay the course in its quest for growth. Your
Company has also performed well while operating within
the given constraints. At this juncture, we wish to reiterate
our commitment to advance the interests of our country
and express our solidarity with the nation and
its leadership.

Business Scenario
FY 2021-22 was an economic roller coaster with the
impact of recurring bouts of COVID-19 and global disquiet
counter-balanced to some extent by Country’s economic
resilience. Regular government spending throughout
the year complemented by liquidity easing measures
by the Reserve Bank of India prevented the risk of an
economic meltdown and helped bolster the confidence of
households and private companies.

An improved borrowing programme for the Centre and

State Governments also meant that the spending proposals
envisaged in the Budget continued unhindered. Most of
the high frequency, mobility and service indicators gained
momentum as the easing of pandemic curbs saw demand
regaining lost ground before geopolitical tensions erupted
to set the clock back once again.

After years of stagnation, India witnessed a pick-up

in exports in FY 2021-22. Consequently, the economy
A. M. Naik expanded at 8.7% in real GDP terms vis-à-vis a contraction
Group Chairman in the previous financial year.

India is expected to post top quartile growth among

Robust self-belief and emerging nations in the medium term. Challenges
resilience – the key to success hovering on the horizon include runaway oil prices, supply
chain disruptions and the US rate hikes affecting capital
in times of challenge. flows into India. Despite these roadblocks, however, our
view is that the bold structural reforms carried out by
the Government in the last couple of years will pave the
Dear Shareholders
way for improved quality of growth. A slew of incentive
Robust self-belief and resilience are the key to success in schemes launched by the Government should stimulate
times of uncertainty and challenge. This spirit has helped manufacturing and exports in our run up to becoming a
India contend with an unprecedented pandemic and, USD 5 trillion economy. Leveraging its expertise in high-
in rapid succession, a war in Europe with its attendant tech manufacturing, your Company is well-positioned to
disruptions. It is indeed creditable that amidst these take advantage of the opportunities as they unfold.

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Integrated Annual Report 2021-22

Driving Growth
India’s FY 2022-23 Budget focusses on consolidation with employed metrics have reported progress, leading in turn to
a capex-driven infrastructure thrust where the Government improved return ratios for the Group. The Group has repaid
will do the heavy lifting and the private sector steps in to borrowings during the year resulting in improved
play its part. Most of the initiatives undertaken, ranging Debt-to-Equity ratios.
from NIP to NMP, creation of DFI, the PLI scheme, the
public procurement initiatives as well as the renewed PPP Your Company continues to focus on shareholder value
models, have an overarching infrastructure focus. Clearly, creation by divesting non-core assets, capturing cost
they are directed to coax capex back into play. We hope efficiencies and leveraging technology for productivity gains.
that a reasonably stable domestic macro environment Our strategically diversified business portfolio, geographical
and an equable socio-economic climate will enable the dispersion, robust balance sheet and strong Order Book
Government to realise the vision envisaged in the NIP are reliable signposts pointing to a brighter future. Further,
blueprint. Public and private investments working in the Company’s proven execution strengths and committed
tandem should also resuscitate India’s Investment / GDP workforce are helping it to seamlessly transition to a more
ratio which has been stagnant. digitally evolved work environment. This should enable the
business to thrive once the immediate challenges posed by
Since infrastructure investments serve the dual purpose of pandemic and the geopolitical uncertainties are behind us.
driving productivity and generating employment, we believe
the underlying macro drivers for growth remain intact. Your It gives me great pleasure to inform you that the Board of
Company is poised to capitalise on these opportunities as Directors has recommended a final dividend of ¢ 22 per
they emerge. share for FY 2021-22.

Internationally, we expect the GCC economy to remain

International Business
buoyant with a strong capex fuelled by prevailing oil prices.
Infrastructure and hydrocarbon opportunities are likely The Company’s policy of aiming for wider geographic
to open up in the African sub-continent on the back of dispersal continues to yield positive results while de-risking
enhanced bi-lateral/multi-lateral funding support. exposure. While the Middle East region remains an area of
focus, your Company has expanded its outreach to several
Group Performance Review countries in Africa as well as South East Asia. Currently, the
In a year marked by several disruptions, your Company Middle East region constitutes 76% of the international
turned in a creditable performance and registered Order Book of ¢ 95,227 crore.
appreciable recovery across key performance parameters.
Our Order Inflow for the year at ¢192,997 crore was Strategic Plan
achieved on the back of major domestic and international
order wins in Hydrocarbon and Infrastructure. Although Our Strategic Five-year Plan christened ‘Lakshya 2026’,
the domestic ordering environment was a shade below continues to steer your Company’s growth. Simultaneously,
expectations, the international environment, especially in it also responds with agility to flux in the business
the Middle East, is a cause for cheer. environment. This year we launched Lakshya 2026, built
around the following themes:
The L&T Group recorded revenues of ¢156,521 crore during
FY 2021-22, registering a growth of 15%. The growth was • Value accretive growth in our current business portfolio
aided by improved project execution and manufacturing
activity further complemented by a strong pick-up in the • Exit from non-core businesses
services businesses amidst a volatile macro backdrop. • Developing innovative business offerings to ride the
As on March 31, 2022, the Order Book at ¢ 357,595 crore energy transition wave
is large, growing and diversified. The Infrastructure segment • Scaling up Digital and e-commerce businesses
has a 73% share of the consolidated Order Book. The Order
Book registered a growth of 9%, on the back of orders • Business sustainability through sharper focus on ESG and
secured in projects businesses. shareholder value creation
We are targeting Group Revenues of ¢ 2.7 lakh crore and
A healthy Operational Profit After Tax at ¢ 8,572 crore,
ROE of 18%+ by FY 2025-26
representing a growth of 23% over the previous year.
Thanks to robust operational cash flows, our capital

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Training and Talent Management Outlook

People are at the heart of our successes and our continuing We live in an age of unpredictability. Just when it appeared
endeavours to do better. Our HR policies are crafted to ensure that the world had come to terms with the pandemic and
professional growth while contributing to the employee’s that the worst was behind us, war broke out in Europe,
sense of pride and well-being. We also leverage technologies dashing hopes of achieving the stability essential for growth.
as we anticipate and adapt to changing requirements. For In the interdependent world we live in, conflagrations are
instance, our digitalisation initiatives enabled us to provide no longer confined to the boundaries of the combatant
learning experience to our employees, even as they worked countries. This has disrupted the global supply chains and
remotely during multiple lockdowns. triggered an alarming spike in prices. The consensus view is
that prices of various commodities would remain elevated in
Sustainable Development the near term.

I am very happy to inform you that this is the maiden issue of Amid all this, there is good news on the technology front.
our Integrated Annual Report, bringing together our financial Paradoxically, it took a pandemic to open our eyes to the
and sustainability performance across multiple parameters. latent benefits of digital technologies. These technologies are
While the world seems to have suddenly woken up to the irrevocably changing the way we work and interact with each
perils of climate change, for your Company sustainability other. Also, the IT spends are possibly the only deflationary
is nothing new. We have been at the forefront of many force in today’s inflationary world. Another positive result
sustainability initiatives long before they were mandated by has been a heightened awareness of sustainability and a
law. Since 2008, we have maintained an annual reporting cycle more rigorous emphasis on Environment Protection, Social
for our sustainability performance. These reports are accessible Responsibility and Governance frameworks.
on the Company’s website.
Conclusion
Your Company has set for itself a Water Neutrality and
Carbon Net Zero target of 2035 and 2040 respectively. We I would like to thank our employees, our customers, supply
are already present in EPC Solar and Water space and are chain partners and the Government for their contribution,
now actively looking at expanding our footprint in Green directly and indirectly, to our growth. I also thank my fellow
Hydrogen and Energy Storage. With more and more countries Board Members for their invaluable support in guiding the
signing up for time-bound zero emission targets, lucrative Company through turbulent times.
business opportunities should emerge for your company in
green hydrogen, storage solutions, renewables and the world My special thanks to all our shareholders for the trust you
of data infrastructure. have reposed in us. You remain an invaluable pillar of
strength, and I look forward to your continued support in our
With regard to governance, the Company’s core values journey towards setting higher levels of excellence.
pivot around the principles of independence, transparency,
accountability, responsibility, compliance, ethics and trust. We My heartfelt greetings to you all as India celebrates
will continue to uphold the value systems which have been the ‘Aazadi ka Amrit Mahotsav’.
traditional hallmark of Larsen & Toubro for over eight decades.
Jai Hind!
As stated in the past, I wish to reiterate that our defence
business does not manufacture explosives or ammunition
of any kind, including cluster munitions or anti-personnel
landmines or nuclear weapons or components for such
munitions. The business also does not customise any delivery
systems for such munitions.

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Integrated Annual Report 2021-22

Message from the CEO & MD

Resilience and Value Creation

FY 2021-22 saw L&T-ites yet again demonstrate their
resilience and spirit to first overcome the challenges posed by
the pandemic and thereafter reorganise themselves to push
forward. During the pandemic, the prime focus was to stand
by our employees, workmen, vendors, and the community at
large. Driving the need to stay safe, we ensured that most of
our employees were vaccinated through regular vaccination
drives. I sincerely thank all our employees, workmen, and
other stakeholders for standing by the organisation during
those tough times.

Despite severe headwinds, we ended FY 2021-22 on a strong

note on the back of several prestigious order wins. The Order
Book at around R3.6 lakh crore is not only the highest in the
history of the Company but is also diversified and growing.

Lakshya 2026
During the year, we formulated our Lakshya 2026 strategy
plan to sustain the present momentum and create value
over the Plan period up to FY 2025-26. In this exercise, the
Company seriously introspected and rededicated itself to its
core focus areas of EPC Projects, Hi-Tech Manufacturing and
Services.

The EPC Projects portfolio will focus on the Infrastructure

and Energy sectors, with the ‘Infrastructure’ segment
continuing to include all our construction businesses,
targeting Order Inflow and Revenue growth between 11 and
S. N. Subrahmanyan 13%. The ‘Energy’ segment will comprise the Hydrocarbon,
CEO & MD Power, and Green Hydrogen EPC businesses. We will strive
for timely delivery and, wherever possible, early completion
in all the projects that we execute. Profitability will be driven
by a combination of productivity of resources, operational
Renewing Focus, Revitalising excellence, as well as our on-going digitalisation drive.
Portfolio, Reaffirming Values
Hi-Tech Manufacturing includes the Heavy Engineering
& Defence Engineering businesses. Additionally, the
manufacture of Electrolyzers and Battery Energy Storage
The best time to change is now
Systems will form part of this portfolio. We will target Order
Forward looking organisations constantly evaluate how the Inflows and Revenue growth of 18%+ and improve and
world is transforming and course-correct to stay ahead of sustain profitability thanks to our several initiatives revolving
the curve. At L&T, our relentless endeavour has been to pivot around Design Excellence, Automation, Value Engineering,
the organisation on its core strength of engineering and Factory 4.0, and On-time Delivery.
technology to enhance shareholder value.
Value creation in the EPC Projects and Hi-Tech Manufacturing
businesses will be a combination of margin improvement and
lower deployment of capital.

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

The Services portfolio is in a sweet spot with the potential for opportunities in the Green Hydrogen BOO projects space will
accelerated growth. I am also happy to inform you that our be housed in this portfolio too. We would like to complete
teams are performing creditably in an intensely competitive the divestment of L&T IDPL and Nabha Power during the
scenario. Going forward, the Services portfolio will comprise current Plan period and unlock their value. In Hyderabad
two segments: IT&TS Businesses and Financial Services. Metro, a combination of capital restructuring, improved
operations, and monetisation through Transit Oriented
IT&TS Business Portfolio Development should generate value over time.

This portfolio includes LTI-Mindtree and LTTS. The IT&TS

businesses will continue to balance the risk and cyclicality Company-wide Perspective
associated with the traditional projects and manufacturing Our thrust areas in the Plan period are clear: Ensure sustainable
segment. The momentum from existing and emerging tech growth in the current business portfolio through profitable
trends such as Cloud, Digital, AI, Industry 4.0 is expected expansion and execution, scale up through business model
to propel growth in the near term. This portfolio will aim at innovation and meet customer demands in an agile manner in
Revenue growth in the high teens during the Plan period and the newer businesses. This should help us clock Group Revenues
be vigilant to tap opportunities for inorganic growth as they of R2.7 lakh crore and an ROE of 18%+ by FY 2025-26.
emerge. Making all these plans work will undoubtedly need
high calibre digital talent, and we intend to on-board the Cash flow is the lifeline of any business and we have
finest minds in the industry. paid close attention to the cash flow profile at the Group
level. As we see it, cash generation during the Plan period
The IT&TS portfolio will also have the in-house incubated will be the outcome of improved profitability and lower
e-commerce and digital platforms that were launched in employment of capital. Further, as I mentioned earlier,
FY 2021-22, SuFin and Edutech as well as the Data we are looking at unlocking capital through the sale of
Center Business. some of our non-core assets to boost cash balances. The
Company will explore option to step up pay-out ratios over
Financial Services time in addition to returning cash to shareholders which
will accelerate ROE improvement.
This business, following the philosophy of ‘Shrink to Grow’,
will reorganise its existing lending portfolio and migrate
towards retail lending over time. We believe a growing Future Ready Initiatives
digitalised retail portfolio, with a focus on upselling and
We, at L&T, are committed to face the global climate
cross-selling, will yield higher returns and lead to significant
change crisis and shape the future around frontier
improvement in valuation.
technologies to mitigate the ill effects of climate change.
The Realty, Smart World & Communication and We do believe that alternative fuels such as Green Hydrogen
Industrial Machinery & Products businesses will comprise will go a long way to create a cleaner environment and
the ‘Others’ segment. contribute towards the nation’s energy security. We have a
unique opportunity to play a significant role to accelerate
In the Realty business, we are looking for growth in the ecosystem around Green Hydrogen, with our thrust in
the residential and commercial spaces through multiple both the EPC and BOO spaces, coupled with the backward
formats under the larger objective of developing captive integration of manufacturing electrolysers and grid battery
landbanks to leverage existing investments. Smart World & energy storage systems.
Communication will mature from the current EPC / O&M
format to that of a total Smart Solutions Provider model that On the digital front, there is maturity in understanding
will enable us to provide complete end-to-end technology data security, data ownership and the Government is also
solutions. We will also grow our Industrial Machinery continuing its thrust for data localisation. Thus, the new Data
& Products portfolio, primarily comprising Construction Center and Cloud Services businesses are distinctly positioned
Equipment and Valves, as demand picks up. to achieve scale in the future. Another dimension to the
digital world is e-commerce and the boom of services being
Developmental Projects or the concessions portfolio will delivered through the internet. In these spaces, we intend to
now largely constitute the Hyderabad Metro while emerging capitalise on our engineering DNA to design superior services.
We have made moves in the e-commerce space through

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Integrated Annual Report 2021-22

SuFin, our B2B platform for the trade of industrial products In various projects today, more than 13,000 equipment
and services, where we put power in the hands of SMEs are digitally connected providing real-time visibility into
and MSMEs and our EduTech platform, through which we operations. We also have quality and safety checks on
empower students seeking practical and application-oriented mobile apps, which also include a database with details of
engineering courses. our workers, their skill sets, and their home addresses. The
entire site topography is being mapped through drones and
Greener and Brighter Tomorrow light detection and ranging (LiDAR) sensors. Safety measures
for workers are being communicated through augmented
With a vision of ‘Technology for Sustainable Growth’, and virtual reality. Such level of digital adoption substantially
the Strategy Plan factors in Climate Change and what we increases productivity, improves quality and safety. This is an
must do to push the agenda for a greener and sustainable on-going journey, and all possibilities will be explored and
tomorrow within the organisation as well. While the implemented in the future too.
set specific targets may be new, proactive environment
conservation is not new to L&T. We have committed to
Raising the Bar
Water and Carbon Neutrality by 2035 and 2040 respectively.
We have also set for ourselves interim targets on various Good governance has been integral to L&T’s DNA for
parameters of ESG up to FY 2025-26. decades. We have always practised the highest level of
governance and intend to keep raising the bar. We actively
We are taking steps to reduce waste production through seek and adopt newer, better ways of doing things to keep
improved recycling initiatives that encourage our people setting new industry benchmarks.
to develop and sustain environment friendly habits. Apart
from our operations and services, we are also working with
People
our partners, to reduce emissions and create a significant
impact. Some note-worthy achievements related to our People are intrinsic to any business both in terms of being
environmental performance include avoiding emission of one of the goals for which they are run as well as the means
around 40,000 tonnes of CO2 during the year, which is to achieve this goal. I have often mentioned that L&T is
equivalent to planting 500,000 trees. Our cumulative energy a great technology platform that nurtures and rewards
conservation is around 150 million units, which is equivalent hardworking, sincere, honest, and dedicated individuals.
to powering 70,000 homes for a year. Every person we employ adds value to the organisation.
The value that some individuals add is apparent while for
We are keenly focused on Circular Economy using the 6R some others it is embedded deep inside and takes the right
(reduce, reuse, recycle, repair, refurbish and rethink) approach atmosphere for it to manifest.
to manage waste and improve material recycling and reuse.
Cumulatively, we have planted around 6 million multispecies It is our endeavour, as an organisation, to provide the
trees, and our focus on biodiversity and protection of right atmosphere, an enabling environment, and the right
natural resources is sharper than ever. Our portfolio of green incentives to realise one’s potential and take the organisation
businesses, which includes solar, water, green hydrogen, and to the next level. Through the projects that we undertake,
some others, is steadily growing and presently constitutes which are some of the biggest, largest, tallest, and heaviest,
>30% of the total revenue. we are committed to creating opportunities at all levels
for people to give expression to their creative instincts and
Digital and Technology Adoption unleash their potential.

We cannot emphasise enough the importance of We are also taking serious steps to increase the percentage
digital technology adoption in both EPC Projects and of women in the workforce to 10% from the current 6%.
Manufacturing operations. In Manufacturing today, most Creating the ecosystem required for not letting biases,
activities are automatically controlled. The amount of data stereotypes, and discrimination creep into decision making
that is generated and monitored gives us a differentiated and letting objectivity define the best person for any job
advantage vis-à-vis competition in terms of visibility of has been and will remain the endeavour for creating equal
operations and remote control over various processes. opportunity for all genders.

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Overview Discussion and Analysis Report Reports Statements

Giving Back to the Society

We have always believed in sharing value with our various
stakeholders and our CSR initiatives, aligned with the
global and national development objectives, primarily
focus on healthcare and education & skilling to help more
Indians become capable to earn themselves a living. In
FY 2021-22, the Company spent ¢ 136 crore on
CSR activities. Apart from spending on CSR-oriented
projects covering water and sanitation, natural resource
conservation, climate change mitigation and adoption of
renewable forms of energy, L&T also responded to the
pandemic by assembling 38 PSA oxygen generation units
and transporting those across to different parts of the
country which were worst affected. Cumulatively, 1.1
million benefitted from our CSR initiatives in FY 2021-22.

L&T – A Technology Company

L&T is fully-geared for the next phase of growth to evolve,
accept, and adopt newer ideas as we revamp our portfolio
and equip our people with tomorrow’s skillsets. Adapting
and assimilating smart technology will play a significant role
going forward.

Challenges are part and parcel of our journey, and we

are ever prepared to face and overcome them through
continuous learning, unlearning, and relearning.

Finally, we will always remember that we are in the

business of nation building. For that, we must remain
passionate, optimistic, calm, patient and stay united in
our shared sense of purpose.

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Integrated Annual Report 2021-22

contents
1
Corporate Overview
9 Company Information
10 Chairman & Board of Directors
12 Leadership Team
13 Executive Committee
14 L&T Nationwide Network & Global Presence
16 Standalone Financials - 10 Year Highlights
17 Consolidated Financials - 10 Year Highlights

2
Management Discussion & Analysis
18

3
Integrated Report
118

4
Statutory Reports
210 Business Responsibility & Sustainability Reporting (BRSR)
258 AGM Notice
280 Board Report

5
Financial Statements
363 Standalone Financial Statements
483 Consolidated Financial Statements
611 Information Regarding Subsidiary Companies

Shareholder’s Satisfaction Survey Form – 2021-22

623

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

company information
BOARD OF DIRECTORS (as on 12th May 2022)

MR. A. M. NAIK MR. M. M. CHITALE

Group Chairman Independent Director

MR. S. N. SUBRAHMANYAN MR. M. DAMODARAN

Chief Executive Officer & Managing Director Independent Director

MR. R. SHANKAR RAMAN MR. VIKRAM SINGH MEHTA

Whole-time Director & Chief Financial Officer Independent Director

MR. D. K. SEN MR. ADIL ZAINULBHAI

Whole-time Director & Sr. Executive Vice President Independent Director
(Development Projects)
MR. SANJEEV AGA
MR. M. V. SATISH Independent Director
Whole‐time Director & Sr. Executive Vice President
(Buildings) MR. NARAYANAN KUMAR
Independent Director
MR. JAYANT DAMODAR PATIL
Whole-time Director & Sr. Executive Vice President MR. HEMANT BHARGAVA
(Defence & Smart Technologies) Nominee of Life Insurance Corporation of India
MR. SUBRAMANIAN SARMA MRS. PREETHA REDDY
Whole-time Director & Sr. Executive Vice President Independent Director
(Energy)
MR. S. V. DESAI MR. PRAMIT JHAVERI
Whole-time Director & Sr. Executive Vice President Independent Director
(Civil Infrastructure)

MR. T. MADHAVA DAS

Whole-time Director & Sr. Executive Vice President
(Utilities)

Company Secretary
Mr. Sivaram Nair A

Registered Office
L&T House, Ballard Estate, Mumbai - 400 001

Auditors
M/s. Deloitte Haskins & Sells LLP

Registrar & Share Transfer Agents

Kfin Technologies Limited
77th Annual General Meeting through Video Conferencing or Other Audio Visual Means on Thursday, 4th August 2022 at 3.30 p.m. IST

9
Integrated Annual Report 2021-22

Organisation Structure

S N Subrahmanyan CEO & Managing Director

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

As on 31.03.2022

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Integrated Annual Report 2021-22

LEADERSHIP TEAM

A. M. Naik
Group Chairman

S. N. Subrahmanyan
CEO & Managing Director

R. Shankar Raman Subramanian Sarma

Whole-time Director & Whole-time Director &
Chief Financial Sr. Executive Vice President
Officer (Energy)

D. K. Sen M. V. Satish J. D. Patil

Whole-time Director & Whole-time Director & Whole-time Director &
Sr. Executive Vice President Sr. Executive Vice Sr. Executive Vice President
(Development Projects) President (Buildings) (Defence & Smart Technologies)

T. Madhava Das S. V. Desai

Whole-time Director & Whole-time Director &
Sr. Executive Vice President Sr. Executive Vice President
(Utilities) (Civil Infrastructure)

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Overview Discussion and Analysis Report Reports Statements

EXECUTIVE COMMITTEE (ECOM)

S. N. Subrahmanyan
CEO & Managing Director

R. Shankar Raman Subramanian Sarma

Whole-time Director & Whole-time Director &
Chief Financial Sr. Executive Vice President
Officer (Energy)

D. K. Sen M. V. Satish J. D. Patil

Whole-time Director & Whole-time Director & Whole-time Director &
Sr. Executive Vice President Sr. Executive Vice Sr. Executive Vice President
(Development Projects) President (Buildings) (Defence & Smart Technologies)

T. Madhava Das S. V. Desai

Whole-time Director & Whole-time Director &
Sr. Executive Vice President Sr. Executive Vice President
(Utilities) (Civil Infrastructure)

Hasit Joshipura Shrikant Joshi Anil V. Parab

Sr. Vice President & Head CEO & Managing Director Sr. Vice President & Head
Corporate Centre L&T Realty Limited Heavy Engineering

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Integrated Annual Report 2021-22

NATIONWIDE NETWORK

+Campus denotes facilities for design and manufacture

* Part of L&T's Corporate Social Initiatives

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Global NETWORK

15
Integrated Annual Report 2021-22

Standalone Financials -
Integrated Annual Report 2021-22 10 Year Highlights

10 Year Standalone
HighlightsFinancials-10 Year Highlights
v crore
Ind AS [11] IGAAP [11]

Description 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13
[8] [9]

Statement of Profit and Loss

Gross revenue from operations [1] 101000 87255 82384 82287 74612 66301 63813 57558 57164 52196

PBDIT[1][2] 9055 8309 6838 7653 7701 6481 5829 6488 6667 5473

Profit after tax (excluding extraordinary/

exceptional items) [12] 7612 5966 5414 5466 4861 4560 4454 4699 4905 4169

Profit after tax (including extraordinary/

exceptional items) 7879 11798 6679 7491 5387 5454 5000 5056 5493 4384

Balance Sheet
Net worth 67114 61738 52175 50048 49174 46013 42135 37085 33662 29291

Loan funds 20298 24474 25785 11990 10561 10558 13924 12936 11459 8478

Capital employed 87412 86212 77960 62038 59735 56571 56059 50021 45121 37769

Ratios and statistics

PBDIT as % of net revenue from
operations [1][3] 8.97 9.52 8.30 9.30 10.34 9.86 9.23 11.38 11.78 10.60

PAT as % of net revenue from

operations [1][4] 7.80 13.52 8.11 9.10 7.23 8.30 7.91 8.87 9.71 8.50

RONW % [5] 12.23 20.54 13.07 15.74 11.32 12.37 12.39 14.30 17.46 16.06

Gross Debt: Equity ratio 0.30:1 0.40:1 0.49:1 0.24:1 0.21:1 0.23:1 0.33:1 0.35:1 0.34:1 0.29:1

Basic earnings per equity share (R) [6] 56.09 84.02 47.59 53.43 38.46 39.00 35.81 36.31 39.57 35.55

Book value per equity share (R) [7] 477.67 439.55 371.65 356.79 350.90 328.79 301.57 265.85 241.97 211.39

Dividend per equity share (R) [7][10] 22.00 36.00 18.00 18.00 16.00 14.00 12.17 10.83 9.50 8.22

No. of equity shareholders 14,92,124 13,71,535 12,51,569 10,21,275 8,99,902 9,23,628 10,28,541 8,53,824 832,831 854,151

No. of employees 50,267 49,107 45,467 45,205 42,924 41,466 43,354 44,081 54,579 50,592
[1] For Continuing Operations from 2018-19.
[2] Profit before depreciation, interest and tax (PBDIT) is excluding extraordinary & exceptional items wherever applicable and other income.
[3] PBDIT as % of net revenue from operations = [(PBDIT)/(gross revenue from operations less excise duty up to June 30, 2017)].
[4] Profit After Tax (PAT) as % of net revenue from operations = [(PAT including extraordinary & exceptional items)/(gross revenue from operations less excise
duty up to June 30, 2017)].
[5] RONW [(PAT including extraordinary & exceptional items)/(average net worth excluding revaluation reserve)].
[6] Basic earnings per equity share has been calculated including extraordinary & exceptional items and adjusted for all the years for issue of bonus shares.
[7] After considering adjustments for issue of bonus shares during the respective years.
[8] Figures for 2021-22 and 2020-21 include the impact of the merger of L&T Hydrocarbon with the Company.
[9] Figures from 2018-19 include the impact of the merger of L&T Shipbuilding Limited with the Company.
[10] Dividend for the year 2020-21 includes special dividend of ¢ 18.00 per share and final dividend of ¢ 18 per share.
[11] Figures from 2015-16 are as per Ind AS and for earlier periods as per IGAAP and hence not directly comparable.
[12] Profit from discontinued operations in the year 2020-21, 2019-20 and 2018-19 has been considered as exceptional item.

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Overview Discussion and Analysis Report Reports Statements

Corporate Management Integrated Statutory Financial

Consolidated Financials -
Overview Discussion and Analysis Report Reports Statements

10 YearConsolidated
Highlights Financials-10 Year Highlights
v crore
Ind AS IGAAP
Description
2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13

Statement of Profit and Loss

Gross revenue from operations [1] 156521 135979 145452 135220 119862 110011 101975 92762 85889 75195

PBDIT [1][2] 18217 15624 16329 15330 13641 11130 10463 11258 10730 9929

Profit attributable to Group

shareholders (excluding
extraordinary/ exceptional items) [3] 8572 6965 8894 8144 7151 5920 4154 4470 4547 4911

Profit attributable to Group

shareholders (including
extraordinary/exceptional items) 8669 11583 9549 8905 7370 6041 4233 4765 4902 5206

Balance Sheet
Net worth 82408 75869 66723 62375 54904 50217 44180 40909 37712 33860

Non-controlling interest 12966 12052 9521 6826 5201 3564 2893 4999 3179 2653

Loan funds 123468 132605 141007 125555 107524 93954 88135 90571 80330 62672

Capital employed 218842 220525 217251 194756 167629 147735 135208 136479 121221 99185

Ratios and statistics

PBDIT as % of net revenue from
operations [4][1] 11.64 11.49 11.23 11.34 11.40 10.18 10.35 12.24 12.60 13.33

PAT as % of net revenue from

operations [5][1] 5.54 8.52 6.57 6.59 6.16 5.53 4.19 5.18 5.76 6.99

RONW % [6] 10.95 16.25 14.80 15.35 14.12 12.80 9.91 12.13 13.71 16.47

Gross Debt: Equity ratio 1.29:1 1.51:1 1.85:1 1.81:1 1.79:1 1.75:1 1.87:1 2.21:1 2.13:1 1.85:1

Basic earnings per equity share (R) [7] 61.71 82.49 68.04 63.51 52.62 43.20 30.32 34.22 35.31 37.69

Book value per equity share (R) [8] 586.52 540.16 475.27 444.67 391.78 358.83 316.20 293.29 271.10 244.40

Dividend per equity share (R) [8] [9] 22.00 36.00 18.00 18.00 16.00 14.00 12.17 10.83 9.50 8.22

Figures for 2015-16 to 2021-22 are as per Ind AS and for earlier periods as per IGAAP and hence not directly comparable.
[1] From Continuing Operations in 2020-21, 2019-20 and 2018-19.
[2] Profit before depreciation, interest and tax [PBDIT] is excluding extraordinary/exceptional items wherever applicable and other income.
[3] Profit from discontinued operations in the year 2020-21, 2019-20 and 2018-19 has been considered as exceptional item.
[4] PBDIT as % of net revenue from operations =[PBDIT/(gross revenue from operations less excise duty upto June 30, 2017)].
[5] Profit after tax (PAT) as % of net revenue from operations = [PAT including extraordinary/exceptional items/gross revenue from operations less excise duty upto
June 30, 2017].
[6] RONW = [(PAT including extraordinary/exceptional items)/(average net worth excluding revaluation reserve)].
[7] Basic earnings per equity share has been calculated including extraordinary/exceptional items and adjusted for all the years for issue of bonus shares.
[8] After considering adjustment for issue of bonus shares during respective years.
[9] Dividend for the year 2020-21 includes special dividend of R 18.00 per share and final dividend of R 18.00 per share.

17
Integrated Annual Report 2021-22

MANAGEMENT DISCUSSION
AND ANALYSIS
Economy generation and acts as a growth multiplier. Complementing
the efforts of the Government, the RBI continues to pursue
Indian Economy an accommodative but cautious monetary stance. The tax
buoyancy due to improved economic activity could help India
The financial year 2021-22 was expected to be a year of to stay adequately prepared to handle the worsening terms of
recovery on the back of normalised resumption of economic trade arising out of high oil prices. The Government remaining
activity and improved mobility, post the first COVID-19 wave. committed to achieve its NIP target and private capex showing
early signs of revival, augurs well for economic growth.
On the contrary, the year commenced with the onset of a
more virulent second wave, resulting in a record number of The surge in domestic demand, improvement in capacity
infections and high mortality rate. The country witnessed utilization levels and much leaner corporate balance sheets
partial lockdowns across different states, as opposed to
are further indicating a sustained resurgence in the economic
complete lockdowns during the first wave. With improved
output. The IMD’s prediction of yet another year of normal
vaccination efforts, the economy bounced back faster than
monsoon has added to the positive sentiments.
anticipated. However, the recovery momentum was once
more disrupted due to the emergence of the Omicron variant With the easing of COVID-19 protocols, consumer confidence
towards the end of Q3, which fortunately, lasted only for a and household optimism are also on an uptrend. A robust
brief period. The emergence of geopolitical tensions towards Rabi output should support recovery in rural demand and
the end of the year has however now created new challenges pick-up in contact-intensive services should help in further
with a sharp rise in commodity prices, leading to a record strengthening the urban demand.
high inflation and rising interest rates.
It is expected that the ongoing geopolitical conflict could
Despite these turbulences, India’s GDP is expected to grow impact supply chain dynamics and keep commodity prices
by 8.7% in FY 2021-22, compared to a 6.6% contraction
elevated for a longer period. Rising interest rates across
registered in the previous year.
the world could also impact capital flows into the country.
India’s Union Budget 2022 emphasised on maintaining fiscal However, India due to its structural reforms and thoughtful
deficit near current levels along with a renewed capex thrust. fiscal stimulus and monetary support from Government
Government capex serves the twin purpose of employment & RBI respectively, is in a better position to withstand the
challenges, as in the past.

18
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Global Economy The Company’s 5-year Strategic Plan, ‘Lakshya’, is developed

through a collaborative and consultative process across the
The global economy witnessed swift recovery amidst continued
organisation. The Lakshya 2026 plan formulation was initiated
progress with vaccination efforts, supportive macroeconomic
in March 2021. The exercise was to be undertaken in 2020
policies in the major economies and favourable financial
for the period FY 2021-22 to FY 2025-26 but was deferred
conditions. However, the global environment significantly
by a year owing to the exigencies created by the COVID-19
worsened in the latter half of the financial year with the
pandemic and the heightened uncertainty across economy
unfavourable geopolitical situation, adversely impacting food
and various sectors. The first year, which is FY 2021-22, was
and energy prices, and supply chain disruption.
covered through the annual budgeting exercise, and
There are no easy policy choices in current times. Lakshya 2026 plan has been now developed for the four-year
Governments and Central Banks across the world continue period FY 2022-23 to FY 2025-26.
to grapple with the prospect of stagflation, as low economic
The Lakshya 2026 plan targets to achieve value accretive
output and supply-side led inflation continues to linger. This is
growth in the existing businesses through a multi-
getting further aggravated with the resurgence of COVID-19
pronged approach like selective project bidding, targeting
infections in some major economies, leading to lockdowns
opportunities in line with global ESG trends, riding the
and thereby delaying the resumption of normalcy.
momentum in existing and emerging technological trends for
In this scenario, the themes to watch out for in the medium services, rejigging business offerings and driving profitability
term would be a possible rearrangement of the global supply through operational excellence, value engineering and
chain, consequent shift in export hubs, establishment of a digitalisation initiatives.
’new world order‘ and the gradual shift from globalisation
The plan also envisages venturing into emerging businesses
to localisation.
like Green Hydrogen development, Electrolyser & Battery
manufacturing, Data Centers and also scale up new-age
Business Model and Strategy digital and e-commerce businesses over the plan period.
The thrust on unlocking value by exiting non-core
Strategy Formulation businesses continues.

Business strategy formulation seeks to set long-term goals

and strategies that help the Company in exploiting its
strengths, identifying and realising new opportunities, and
building new capabilities. This is enabled through three plans
with time horizons ranging from long-term Perspective (7-10
years) to medium-term Strategic (5 years) to the short-term
(the Annual Budget). Each plan dovetails into the next.

19
Integrated Annual Report 2021-22

Business Model
Value creation by the Group is enabled by leveraging its distinct business models across projects, manufacturing and service lines:

EPC Projects
The Group focuses on its proven core competencies
of conceptualising, designing, engineering, executing,
and commissioning large, complex projects in the areas
of transportation infrastructure, power transmission
and distribution, thermal / hydel / solar / nuclear power
plants, green hydrogen, and derivatives, water and
irrigation infrastructure, buildings and factories, oil and
gas facilities, and metals and mining projects.

Hi-Tech Manufacturing
Hi-Tech Manufacturing focuses on custom-built
products catering to process industries, material
handling equipment, electrolysers and advanced cell
chemistry batteries, construction machinery & mining
equipment, industrial valves and defence engineering
including shipbuilding.

Services
The Services businesses cater to sectors of IT (through
LTI and Mindtree), Technology Services (through LTTS,
Smart World & Communication), Real Estate (through
L&T Realty) and Financial Services (through LTFHL), B2B
E-commerce (through L&T SuFin), Skilling & Assessment
(through L&T EduTech) and Cloud Services (through
Data Centers).

While the Group has also undertaken major development projects such as the Hyderabad Metro, toll-road operations (through L&T
Infrastructure Development Projects Limited) and Nabha Power in the past, the focus going forward would be to unlock the value
embedded in these investments and stay asset-light.

20
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Our businesses and offerings are closely linked to global megatrends

Urbanisation Boom

High-rise buildings (B&F)

Underground multi-level
car parks (Geo)

High-capacity utility networks

(PT&D, WET)
Safe and Smart cities (SWC)

Climate Change
Increasing population pressures in cities
leading to various challenges e.g.
congestion and call for better solutions Renewables – Solar,
Energy Storage (PT&D, HC)
Green buildings (B&F)

Water Recycling and Reuse

solutions (WET)

Green Hydrogen (GE)

Climate change and resource scarcity

driving need for solutions to balance
Mobility Growth growing needs with environment

Mass Rapid Transit Systems (TI, HC)

World class airports (B&F, TI)

Electric, Autonomous and

Connected systems (LTTS)

Expressways & Rail Networks (TI)

Safe, fast, affordable and environment

friendly solutions for movement of
people and goods
Societal Challenges
Water and Sewage Treatment
systems (WET)

Affordable & Mass Housing (B&F)

Energy Efficient Power Systems

and microgrids (PT&D)

Financial services (LTFS)

Digital Transformation
Universal coverage for basic amenities
while keeping up with growing
Big Data, AI/ML, AR / VR, 5G, Cloud, demands of global population
Cybersecurity (LTI, LTTS, MT)
Automation, Industry 4.0, Digital
Engineering (LTTS, MT)

B&F Building & Factories LTI L&T Infotech

Data Storage and Computing (DC) TI Transportation Infra LTTS L&T Technology
HC Heavy Civil Services
Platforms (SuFin, EduTech) WET Water & Effluent MT Mindtree
Treatment SWC Smart World &
PT&D Power Transmission Communications
Technology and services offerings & Distribution DC Data Center &
to transform businesses across Geo L&T Geostructures Cloud Services
various domains
GE Green Energy

21
Integrated Annual Report 2021-22

Portfolio Strategy
The portfolio strategy aims to de-risk the revenue while improving profitability in the pursuit of growth.
This strategy focuses on:

Complementing the mature businesses with growth-

stage businesses. While established businesses continue to
drive the growth of the Group, the focus is also on seeding
and scaling up new businesses which have high growth
potential, are tech-oriented and have high value-addition.

Geographically diversified businesses. While India will

continue to be the main market for EPC Projects over the
next 5 years, select international markets i.e., Middle East,
Africa and ASEAN would also be in focus. The Americas and
Europe would continue to be the focus geographies for IT
services businesses.

Balancing the cyclical nature of the EPC business

through a portfolio of Services businesses. With the aim
of better profitability and a stable revenue profile, the Group
intends to increase the share of the Services businesses, while
pursuing growth in the traditional EPC Contracts and Hi-Tech
Manufacturing businesses.

Supplementing the standalone offerings with

partnerships. For the traditional businesses, the Company
has partnered with several large global process and technology
licensors, and for the IT and Technology Services businesses,
the Group has extensive partnerships with established global
software product and technology companies.

22
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Strategic Thrust & Direction

As part of the Lakshya 2026 plan, the Group has re-evaluated shareholder value creation, defined social obligations, and framed
sustainability goals. The outcome of this assessment was the rearticulation of its Strategic Objectives (SOs), which would drive value
creation over a long-term horizon. These are:

Value Accretive growth Completing the divestment

of current businesses of non-core businesses
SO-I

SO-II
SO-V ROE
Growth
Enabling business
Developing business
sustainability through
high focus on ESG & SO-III offerings to ride the
Energy Transition wave
Stakeholder Value Creation SO-IV

Scaling up digital and

E-commerce businesses

These Strategic Objectives are supported through Strategic Enablers (SEs):

SE-1 SE-2 SE-3 SE-4 SE-5

Operational Industry leading Financial resources Talent and Capability
Excellence for capabilities in to enable growth leadership pipeline development
leadership in cost- digital technologies of the businesses to enable growth through R&D,
competitiveness and analytics for and strong financial and business absorption of new
and world-class productivity, ESG health to facilitate continuity technologies and
execution effectiveness and access to capital partnerships
strengthening markets, as and
revenue streams when required

23
Integrated Annual Report 2021-22

Performance in FY 2021-22 against objectives:

Objectives KPIs Performance

SO-I • Revenue Growth In FY 2021-22, despite continued impact of COVID-19 led disruptions,
• Composition of Services the Company achieved revenues of ¢156,521 crore (+15% y-o-y).
Value accretive growth of in Total Revenues
Services business continued to show strong growth of 12% with a
current businesses
stable percentage share in revenues at 30% in FY 2021-22.

SO-II • Businesses divested In FY 2021-22, the Company divested Singoli-Bhatwari Hydroelectric

Project (99 MW) and is actively pursuing divestments in L&T IDPL
Completing the divestment of non- and exploring various alternatives to cap our current exposure in
core businesses Hyderabad Metro.

SO-III • Size of Green Portfolio The size of Green Portfolio of businesses is ¢ 38,843 crore which is
• New Business or 38.2% of standalone revenues in FY 2021-22 (compared to 33.2%
Developing business offerings to Business offerings in FY 2020-21).
ride the Energy Transition wave developed
The Board has approved entry into the ‘Green Energy’ business
through Green Hydrogen & derivates and Advanced Chemistry Cells
batteries. The business will be setup in FY 2022-23, including tie-ups
for technology and business partnerships. These new businesses are
proposed to be set up through joint ventures, with L&T having a
dominant share.

SO-IV • Growth of Digital & L&T SuFin and L&T EduTech have been formally launched in
E-commerce Businesses FY 2021-22 and currently in scale-up stage.
Scaling up digital and E-commerce
A new business which has been evaluated and incubated in
businesses
FY 2021-22 is Data Center & Cloud Services (Business offering linked
to data centers and related services).

SO-V • Metrics linked to ESG For details refer to sections:

performance based on
Natural Capital (pg. no.136)
Enabling business sustainability materiality e.g:
through high focus on ESG & - GHG Intensity Social & Relationship Capital (pg.no.178)
Stakeholder Value Creation -Water consumption Human Capital (pg.no.168)
- Lost Time Incident
- Training hours

24
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Risk Management framework, processes, structure, and the mitigation

systems. It also on a periodic basis, evaluates and monitors
the key risks at a Company level. The Audit Committee,
L&T has a comprehensive Enterprise Risk Management (ERM)
in compliance with The Companies Act and SEBI LODR,
framework in place for identification, assessment, treatment
oversees the financial risk framework of the Company.
and reporting of risks. The Risk Management Framework
consists of four tiers: The Company is predominantly into the Projects business
• The operating businesses form the First Tier as risk owners and has a robust Project Risk Management process. The
and have primary responsibility for identifying and managing key processes of risk reviews include (a) country clearance
the risks. process for the first-time geographies (b) pre-bid risk
reviews based on authorisation level mapped to the range
• The Second Tier comprises corporate functions and
of bid values (c) execution risk reviews of the projects for
dedicated Business Risk Management teams who are
tracking the movement of risks and course corrections
responsible for monitoring and reporting of risks and
and (d) close out reviews to capture key learnings from
providing guidance to risk owners.
the projects completed and document the learnings for
• The Apex Risk Management Committee is the Third Tier future bids. The Company’s risk management processes
that monitors & provides strategic decisions on risks. ensure that the businesses accept risks as per the boundary
This Committee periodically evaluates the robustness conditions based on the risk appetite of the organisation.
and defensibility of the systems in place and suggests The entire risk management process is overseen by the
mitigation plans accordingly. office of the Chief Risk Officer of the Company.
• The Board Risk Management Committee (BRMC) & Audit The Company also has a Chief Information Security
Committee is the Fourth Tier that provides risk governance Officer (CISO) who is responsible for forming and assuring
and oversight as a component of strategic leadership. implementation of IT security policies, frameworks to manage
The BRMC reviews the existing risk management policy, cybersecurity risk, and controls across the organisation.

The top enterprise-wide risks for the Company and their mitigation measures are summarised below:

Risk Mitigation

Geopolitical Risk The Company operates in numerous geographies and The Company has in place mitigation strategies like country-
is exposed to risks on account of protectionist policies, clearance approval procedure, monitoring of changes in
political dynamics, trade barriers, sanctions, and sanction regimes, diversification of Order Book, etc. Further,
geopolitical conflicts. entity level sanctions are also monitored for counter party risk
assessment.
The recent geopolitical event – Russia-Ukraine –
conflict has impacted the world directly or indirectly in The Company engages periodically with external experts
terms of supply chain disruptions and inflation. and Government Authorities to assess potential impacts
of geopolitical conflicts on new investments, supply chain,
logistics, and commodity prices. The Company has put in
place, alternate strategic sourcing options to minimise
the impact.
Competition It has been observed that competition from foreign and The Projects Business derives its competitive strength from its
domestic players has considerably increased in the last excellence in execution, reputation for quality, technology,
few years. timely completion, cost-effectiveness, sourcing capability,
project management expertise, strong safety record and
Removal of Bid Bond and relaxation of Performance
lengthy experience with a wide range of services and
Bank Guarantee in Government contracts has led to
technologies.
increased competition, especially in Road Projects.
Bids are priced accordingly considering the risk appetite and
management strategy to deal with competition.
Underperformance Sectors such as Power, Nuclear, Defence - Shipbuilding, Being a diversified conglomerate, the Company portfolio
in key sectors continued to show slow growth and underutilization of itself offsets the slowdown in some sectors with growth in
their capacities. other sectors.
New Government initiatives like Atmanirbhar Bharat (Make
in India) and impetus to National Infrastructure Pipeline
provides lot of growth opportunities in the near future.
The Company is also foraying into new geographies and
new businesses.

25
Integrated Annual Report 2021-22

Energy Transition There is a renewed focus on Energy Transition across The Company is committed to Energy Transition & Sustainability
the world, with most of the Governments supporting goals by setting targets to become Water neutral by 2035 and
Climate Action Plan. This transition involves risks in the Carbon neutral by 2040. Its ESG roadmap is aligned with the
form of switching to a new business model. 5-year strategic plan - 'Lakshya 2026' with a commitment to
climate leadership, water stewardship, circular economy, green
Stakeholder activism on ESG has increased over supply chain, biodiversity, and green offerings.
the years demanding that corporations pursue
sustainable business models. The Company views the transition to Green Energy as
an opportunity.
Opportunities like Green Hydrogen, Clean Energy Technology,
and Offshore Wind have been identified as new growth avenues.
Inequitable Terms The Company partners with multiple stakeholders in The Company relies on strong internal processes,
of Trade executing projects and the terms agreed upon with these back-to-back arrangements with vendors / subcontractors,
parties have become more stringent over the years. project and business level working capital monitoring policies,
and pre-bid reviews as a risk mitigation strategy.
Joint & several liabilities, long defects liability period,
cost overruns, back-ended payment structure, working Legal, Taxation, Finance and Risk teams are involved in vetting
capital challenges, and claim management challenges the proposal at the bid stage. The Company maintains a strong
will influence the performance and cash flows. documentation and follow up with clients / sub-contractors /
vendors for any claim that is submitted.
Execution The Company faces inherent risks throughout the The majority of risks are identified during the Prebid stage and
Challenges execution phase of the project. Project challenges appropriate mitigation strategies are developed.
include employee / workmen mobilisation, adverse
These identified risks are monitored at regular intervals for
geological surprises, unavailability of work front, land
acquisition and Right-of-Way (ROW), delay in approval resolution / mitigation.
and clearances, visa issues, etc. The Company implemented a number of safety measures like
There have been additional challenges due to pandemic vaccination camps for staff and labour, enforcing safe distancing
like supply chain disruptions, scarcity of raw materials, norms etc. to mitigate the effects of the COVID-19 pandemic.
inflation, counter party risk, etc. Credit worthiness of counterparties is being monitored regularly.
Some of the businesses like Financial Services,
Hyderabad Metro, Realty were affected in varying
degrees due to the pandemic.

Cyber Security The Company is undergoing a digital transformation, The Chief Information Security Officer of the Company, under
and cybersecurity has become a key concern for the guidance of the Risk Management Committee, oversees
the continuity of business. Vulnerabilities like the implementation of strong enterprise-wide cybersecurity
targeted attacks, ransomware threats, and phishing practices. These practices are grouped into people, processes
have enhanced the importance of protecting the and technology control areas under a company-wide Cyber
information technology infrastructure and data of Security Assurance Framework. The maturity of security
the Company. controls is continually being measured to maintain them at
desired benchmarks.
Climate Risk The world has seen high amount of climate variability The Company adheres to all environmental and safety
and extreme weather events over the years due to compliances including ISO 14001 and ISO 45001. Occupational
global warming. The Company’s primary operations hazards and adherence to environmental management plan
in the construction and engineering sector may be are carefully monitored at all project sites and manufacturing
impacted by climate change. Some of the major locations. Assessment of high precipitation/flooding periods
concerns include: is done at bidding stage for construction projects and same
(i) The weather of a location cannot be predicted is factored in project execution plan to avoid heavy or at-risk
accurately based on the meteorological data. work during those periods. Monsoon preparedness plans
are a standard requirement now for all projects and cover
(ii) Climate change is a risk multiplier and has also
plans for protection of equipment (covering, tying down
enhanced the instances of natural calamities, which
or other suitable arrangements), backup for power/fuel,
cause problems in site operations, logistics of
equipment/materials and safety of resources. human safety and plans for restoring normal operations e.g.
dewatering arrangements. For dealing with periods of extreme
(iii) Extremely high daytime temperatures have a negative temperature, operations are adjusted to start earlier in the day
impact on health and safety of construction workers and restart after taking a mid-day break. To de-risk movement
and impact productivity. of equipment in difficult conditions, appropriate arrangements
(iv) High precipitation or high flooding of rivers pose (route assessment, ground reinforcement, special support team
significant risk to operations and movement of plant etc.) are made in advance. Initial Risk assessment and regular
and machinery. risk reviews aim to anticipate impact of climate risks and devise
(v) Extreme weather events cause significant disruptions solutions or build contingencies to handle them accordingly.
in operations and supply chain and thereby have a
direct impact on the costs.

26
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

The Risk Management processes are enabled through an reports of attempts to develop alternate payment systems to
ERM system that facilitates monitoring risks across projects in support trade and capital flows. The rise of cryptocurrency
various geographies of operation, provides a risk-weighted may pose additional challenges in this regard.
portfolio view of businesses and shares learnings across the
organisation. An integrated Knowledge Centre Portal is also The Group has an evolved policy for foreign exchange
available that provides a platform for assessment of financials risk management, with separate policies for project and
of counterparty, geo-political and macro risks to support manufacturing business and IT&TS business. With respect
informed and fact-based decision-making. to project and manufacturing portfolio, the currency risks
are evaluated from the tendering stage and are assessed for
The Company emphasises on continuous learning and has pass-through arrangements in contracts, coverage by way
taken initiatives to strengthen its processes. An e-Learning of natural hedge and the balance appropriately hedged. The
module of ERM is in place for employees to get acquainted with Company also proactively monitors depeg risk in the GCC.
Risk Management processes and manage risks effectively and
responsibly. Periodic training workshops on Risk Management The financial risks involving commodity prices are
are organised across the Company to spread awareness. managed through price variation clauses embedded in the
contracts, hedges in financial markets and pass-through
The Enterprise Risk Management Framework is continuously price arrangements. In the case of contracts with price
reviewed and benchmarked with industry best practices. variation clauses, the Company runs a basis risk in terms of
reimbursement tied to various price indices versus actual
commodity prices. During financial year 2021-22, commodity
FINANCIAL RISKS prices had remained elevated, which is expected to continue
in the financial year 2022-23, driven by supply constraints
Foreign Exchange and Commodity Price Risks which have been further accentuated by geopolitical events.
The businesses of the Company are exposed to fluctuations
in foreign exchange rates and commodity prices. Additionally, For disclosure of commodity exposures as required under
it has exposures to foreign currency denominated financial clause 9(n) of Part C of Schedule V of the SEBI (Listing
assets and liabilities. With the increasing tendency to access Obligations and Disclosure Requirements) Regulations, 2015
sanctions to combat geo-political issues, there have been in the format specified vide SEBI Circular dated
15th November, 2018 is given below:

% of such exposure hedged through

Exposure in Quantity commodity derivative
Exposure towards the
terms towards
Sr No. Commodity Name particular commodity Domestic market International market
the particular
( ¢ crore) Total
commodity (Tn)
OTC Exchange OTC Exchange

1 Aluminium - Buy 1,191 55,723 - - 50.11 - 50.11

2 Aluminium - Sell 372 14,496 - - 52.81 - 52.81

3 Zinc - Buy 80 3,108 - - 100.00 - 100.00

4 Copper - Buy 1,670 22,728 - - 68.48 - 68.48

5 Copper - Sell 801 10,801 - - 100.00 - 100.00

6 Lead - Buy 104 6,045 - - 100.00 - 100.00

7 Coking coal - Buy 83 17,570 - - - - -

8 Iron ore - Buy 71 57,020 - - 73.76 - 73.76

9 Steel - Buy 19,762 29,66,407 - - - - -

10 Cement - Buy 4,209 66,36,849 - - - - -

11 Nickel - Buy 177 1,099 - - 80.07 - 80.07

27
Integrated Annual Report 2021-22

Financial Risk Management is governed by the Risk The Company plans to maintain around the current level of
Management framework and policy approved by the Audit liquidity reserve on the Balance Sheet to deal with continuing
Committee and authorised by the Board. Financial risks uncertainties in economic conditions.
in each business portfolio are measured and managed by
Corporate Treasury aided by the said framework. While the Company has adequate banking facilities to cater
to the business requirements, the Large Exposure Framework
guidelines of RBI implemented from April 1, 2019, may
Liquidity and Interest Rate Risks constrain the availability of bank limits for the Group. At
The Company judiciously deploys its surplus funds in short- the same time, the Government’s initiative to reduce the
term investments in line with the Board approved policy. performance bank guarantee requirement in projects from
It constantly monitors the liquidity levels, economic and 10% to 3% has positively impacted the resources availability
capital market conditions and maintains access to the lowest for the businesses.
possible cost of sourcing liquidity through banking lines,
trade finance and capital markets. The Company managed
its higher than usual treasury investments to generate Internal Controls & Safeguards
investment return to neutralise the higher interest cost due
to borrowings raised in the previous financial year. The One of the important pillars of corporate governance
Company dynamically manages interest rate risks through is a robust internal controls framework that assists the
a mix of fund-raising, investment products and derivatives corporation to achieve predictable and desired outcomes.
across maturity profiles and currencies within a robust risk It helps in aligning controls with the dynamics of constant
management framework. challenges and changes in risk profile, arising due to varying
internal and external factors. The internal controls framework
With the post COVID-19 recovery, the attention is now focussed established by the Company is commensurate with the size
on the size of G4 central bank balance sheets and a rethink of of operations and complexity of its businesses. All internal
the accommodative monetary policy. The Federal Reserve started controls are well aligned with the evolving business needs,
hiking interest rates with a 25 bps increase in their March 2022 objectives, and overall strategic direction. The Company
meeting. The RBI, also in order to combat the inflationary trends, ensures integrity in conducting its business, safeguarding of
has recently increased the repo rate leading to a hardening its assets, timely preparation of reliable financial information,
interest rate regime. accuracy and completeness in maintaining accounting
records, and prevention and detection of frauds and errors
through a set of detailed policies and procedures.
Financial Resources & Capital Allocation
The Board of Directors and Management at all levels exhibit
The capital allocation philosophy of the Company is geared
the right tone at the top through their actions, behaviour,
to support business initiatives for the medium to long term
and directives. The ‘Code of Conduct’ emphasises the
growth of the Company, while retaining enough liquidity to
corporate culture and values of the Company which serves
support any short-term exigencies faced by the Group.
as a beacon for the employees and inculcates the importance
FY 2021-22 started with another phase of uncertainty in of integrity and ethical values. Suppliers must conform to
a separate ‘Code of Conduct’ as a part of the registration
terms of liquidity with renewed lockdowns and disruption
process to ensure that they align to the Company’s
of work at sites as well as in client offices. However, with
commitment to seek sustainable growth by integrating
the Company having raised significant amount of long-term
Environment, Social and Governance (ESG) principles with its
liquidity in FY 2020-21, there was adequate liquidity reserve
businesses. The ‘Code of Conduct’ and the ‘Whistle-blower /
on the balance sheet.
Vigil Mechanism’ policies are available to both employees and
business partners, to enable them to raise genuine concerns
The Company provided support to Group companies like
about any actual or suspected ethical / legal violations or
L&T Metro Rail Hyderabad Ltd. while it was recovering from
misconduct or fraud, with adequate safeguards against
impact of COVID-19’s second and third waves. The Company
victimisation, fear of punishment or unfair treatment.
also supported the capital expenditure required to execute
some of the large projects awarded in the previous financial The Company has adopted the globally accepted framework
year. Going forward, apart from regular capital expenditure, issued by the Committee of Sponsoring Organisations
the Company plans to invest in new businesses of Green (COSO) of the Treadway Commission for Internal Controls.
Energy & Data Centers and continue to focus on growing its The Internal Financial Controls are instituted at the entity
IT&TS services business. and process levels and are aligned with the requirements
of the Companies Act, 2013. The internal control teams at
Since business conditions have improved post the initial corporate and business levels serve as the second line of
disruption, the Company ended the year with a reduction defence and assist the Management in setting up of sound
in its debt levels at ¢ 20,298 crore vis-à-vis ¢ 24,474 crore internal controls and establishing, operating, and upgrading
in FY 2020-21. Low standalone gearing levels (Gross Debt the internal controls system. The Corporate team shares best
to Equity ratio at 0.30) and an adequate cash balance of practices across the organisation, reviews and assesses the
~¢ 25,000 crore equip the Company to deal with normal processes, formulates and updates the policies, guidance
business uncertainties. notes and advisories.

28
 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

The Corporate Audit Services Department carries out Order Inflow and Order Book
independent internal audits covering core business
operations, corporate departments, and support functions.
The annual audit plan of Corporate Audit Services is reviewed Order Inflow
by the Audit Committee of the Board to ensure the adequacy � crore �

of the coverage. The significant audit observations are 10.0%

250000
presented to the Audit Committee every quarter along with
update on the implementation of the recommended remedial 192997
200000
measures and the agreed actions by the Management. 175497

150000 27% 47951 84111 44%

The operating effectiveness of Internal Financial Controls
are carried out by Corporate Audit Services team and
100000
Internal Controls for Financial Reporting by Statutory
Auditors and no reportable material weaknesses either in 73% 127546
50000 108886 56%
their design or operations were observed. The evaluation
included documentation review, enquiries, testing, and other
procedures considered to be appropriate in the circumstances. 0
2020-21 2021-22

Domestic International
OVERALL FINANCIAL REVIEW
FY 2021-22Order Inflow Order Inflow Composition
� crore � crore Infrastructure
10.0% 4368 7312
I. L&T CONSOLIDATED
250000 11971 2%, (2%) 4%, (3%) Hydrocarbon
6%, (8%)
The Group while prioritising the health and safety
192997of its Power
200000
manpower, registered 32256
175497a good performance in FY 2021-22 Heavy
despite all the challenges. The Company continued to focus 17%, (14%) Engineering
150000 27%
on its goal 47951
of maximising shareholder value by84111 44%
an efficient Defence
8079
execution of its large Order Book, leveraging technology Engineering
4%, (1%)
to improve cost competitiveness, achieving operational
100000 IT & Technology
excellence through digital initiatives, and containing working 3223 Services
73%with
capital along 127546
better funds management108886
and divesting 2%, (2%)
50000 56% Financial Services
non-core assets identified for sale. During the year, the 1360 Development
Company concluded the divestment of its 99 MW Singoli- 1%, (1%) 93515 Projects
0 30912 48%, (59%)
Bhatwari Hydel Power
2020-21Plant in the state of Uttarakhand.
2021-22 16%, (10%) Others

During the year, Domestic

the Company launched new businesses: Total Order Inflow: ₹ 192997 crore during the year 2021-22
International
a) L&T EduTech – Which offers EdTech products and [Figures in brackets relate to previous year]
solutions to educational institutions, skilling bodies, working
professionals, students, and learners across segments using a
L&T Group achieved Order Inflows of ¢ 192,997 crore
technology intensive user-friendly platform.
b) L&T SuFin – A B2B E-Commerce online platform launched during FY 2021-22, registering growth of 10% over the
to provide SME/MSME buyers and sellers (mainly focused on previous year, with growth largely driven by receipt of
construction and industrial products & services) to connect in mega international orders in the Power Transmission &
an efficient manner, thereby enabling sellers to expand their Distribution and Hydrocarbon business. This led to an
sales reach, and for buyers to find their required products and increase in share of international Order Inflow to 44%
services seamlessly. The platform also enables logistics services from 27% in previous year.
and credit facilities to support the e-commerce transactions.
The year witnessed booking of some noteworthy orders in
Further, during FY 2021-22, the Company initiated feasibility the rural water supply segment, few metro projects, a project
studies and pilot investments into new businesses planned in Health and Public space business, a large value order
under Strategic Plan i.e. Data Center and Green Hydrogen. from Indian Navy in the Defence Engineering business, a
mega order from the Middle East in Power Transmission &
As at March 31, 2022, the L&T Group comprises 93 Distribution business and big-ticket orders in Offshore and
subsidiaries, 5 associate companies, 27 joint ventures and Onshore verticals of Hydrocarbon.
35 jointly held operations. Out of the total 160 entities, 54
companies belong to the 4 listed subsidiaries and 19 are With improved order traction in Hydrocarbon and Defence
related to Development Projects. The rest of the entities in Engineering, the contribution of the Infrastructure segment
the Group are mostly, strategic extensions of the traditional in the overall Order Inflow decreased to 48% from 59% in
businesses viz. EPC Contracts and Hi-Tech Manufacturing, previous year.
for enabling access to new geographies, technology, and
nuanced business segments.

29
 Integrated Annual Report 2021-22

The Order Book registered a growth of 9.2%, mainly with

Order Book
� crore
receipt of someOrder
� crore
Book
high value Composition
orders during the year. Around
12537
9.2% 21% of the Order Book comprises
14420orders received from various
440000 4%, (2%)
Governments, including4%,
State4714 local(4%)
authorities. The Private
1%, (1%) Infrastructure
357595 sector is gathering momentum with its contribution increasing
360000 327354 8901
to 20% of the total Order Book as of March 2022 Hydrocarbon
as against
95227 27% 2%, (4%)
21% 68773 17% as of March 2021. Of the domestic OrderPower Book, 38% of
280000
the orders are funded by multi-lateral agencies.Heavy
200000 56398 Engineering
16%,
The (14%)
share of the international Order Book increased from
Defence
120000 79% 258581 262368 73% Engineering
21% to 27% with the share of Saudi Arabia in the overall
Others
40000 international Order Book increasing to 63% from
260624 32%.
73%, (75%)
0
As at 31-03-2021 As at 31-03-2022
Consolidated Revenue from Operations
Total Order Book: ₹ 357595 crore as at March 31, 2022
Domestic International
[Figures in brackets relate to previous year]
Gross Revenue from Operations
� crore
Order Book Composition 15.1%
� crore 200000
12537
14420
4%, (2%) 156521
4714 4%, (4%) 135979
1%, (1%) Infrastructure 150000
55783 36%
8901 Hydrocarbon 37% 50463
% 2%, (4%) 100000
Power
Heavy
56398 Engineering 50000 63% 85516 100738 64%
16%, (14%) Defence
% Engineering
0
Others 2020-21 2021-22
260624
73%, (75%) Domestic International
L&T Group recorded revenue of ¢ 156,521 crore during
Total Order Book: ₹ 357595 crore as at March 31, 2022 FY 2021-22, registering a growth of 15.1%. The growth
[Figures in brackets relate to previous year] was mainly achieved with the pickup of execution
momentum in Project businesses and substantial growth in
As at March 31, 2022, the Order Book is at ¢ 357,595 crore IT&TS business. The composition of international revenue at
providing a multi-year revenue visibility to the Company. The the Group level is at 36% in FY 2021-22 compared to 37%
infrastructure segment continues to dominate with a share in the previous year.
of 73% of the consolidated Order Book, vis-à-vis 75% as of
March 2021.

�crore Segment-wise Revenue

80,000
70,000
60,000
50,000
40,000
30,000 2994

20,000
10,000
0
Heavy Defence IT & Financial Development
Infrastructure Hydrocarbon Power Engineering Engineering Technology Services Projects Others
Services
FY 2020-21 61962 16964 3193 3018 3410 25619 13404 3621 6093
FY 2021-22 73560 19265 4448 3039 3226 32474 11971 4368 6282

30
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

During the year, most of the businesses registered a growth Staff expenses for FY 2021-22 at ¢ 29,734 crore increased by
over the previous year. The revenues from the IT&TS 20.1% over the previous year and as a percentage to revenue
segment continue to register industry leading growth. increased by 80 bps, reflecting manpower ramp-up in the
IT&TS segment and salary revision. The Group continues
Operating Expenses and PBDIT to focus on productivity improvements, digitalisation, and
manpower optimisation across most of its businesses.
� crore Operating Expenses and PBDIT
Sales and administration expenses at ¢ 8,832 crore is almost
180000
in line with the previous year at ¢ 8,903 crore.

140000 18217
8832 The Group’s operating profit at ¢ 18,217 crore for the year
15624
8903 2021-22 registered a growth of 16.6% y-o-y, largely due
29734
100000 to higher revenue volumes. The EBITDA margins for the
24751
year improved by 10 bps at 11.6%. Operational excellence
60000 measures in Mindtree and L&T Technology Services and
99739 lower credit cost in Financial Services aided the margin
20000 86701 improvement. However, impact of high commodity prices and
higher provisions on contract assets and customer receivables
0 exerted some pressure on the margin.
2020-21 2021-22
Mfg., Construction & Staff Expenses Depreciation and Amortization charge
Operating Expenses
Sales, Administration & Operating Profit (PBDIT) Depreciation and amortisation charge for the year 2021-22
Other Expenses marginally increased to ¢ 2,948 crore from ¢ 2,904 crore in
previous year.
Manufacturing, Construction and Operating (MCO) expenses
for FY 2021-22 at ¢ 99,739 crore increased by 15% over
Profit Before Interest and Tax
the previous year. These expenses mainly comprise cost
of construction material, raw materials and components, Segment-wise composition of PBIT for FY 2021-22 is
subcontracting expenses and interest costs in the Financial represented below:
Services business. This represents 63.7% of revenue in line
with the previous year.

Segment-wise PBIT
�crore
7000
6000
5000
4000
3000
2000
1000
0
-1000
Heavy Defence IT & Financial Development
Infrastructure Hydrocarbon Power Engineering Engineering Technology Services Projects Others
Services
FY 2020-21 4522 1369 111 488 617 4823 1286 (197) 1123
FY 2021-22 5182 1501 139 470 533 6410 1470 (231) 939

The segment-wise PBIT registered improvement over previous year majorly in Infrastructure and IT&TS businesses.

31
Integrated Annual Report 2021-22

Other Income position as on March 31, 2021. The Return on Net Worth
(RONW) for the year 2021-22 was lower at 11%, compared
It mainly consists of profit on sale of liquid / short term
to 16.2% in the previous year since it included the one-time
investments and interest income. Other income at ¢ 2,267
divestment gains of the Electrical & Automation business.
crore, declined by 33.9% over ¢ 3,429 crore, mainly due to
lower investible surplus.
Liquidity & Gearing
Finance cost Cash flow from Operations (including change in loans and
advances towards financing activities) decreased to
The interest expenses for the year 2021-22 at ¢ 3,126 crore
¢ 19,163 crore as compared to ¢ 23,074 crore in the
was lower by 20.1% over ¢ 3,913 crore for the previous year.
previous year due to the build-up of customer outstanding
The decline was mainly attributable to reduction of borrowings
in the Parent entity. Also, the average borrowing cost for with increase in business volumes. During the year,
FY 2021-22 decreased to 7.4% p.a. from 7.7% p.a. in the additional funds were generated mainly from the divestment
previous year due to refinancing of debt in Hyderabad Metro. of Singoli-Bhatwari Hydel Power Plant, treasury and
dividend income.

Tax Expense Funds were utilised mainly for repayment of borrowings

Income Tax charge for FY 2021-22 (excluding tax charge on ¢ 8,677 crore, capital expenditure of ¢ 3,040 crore and
discontinued operations) increased to ¢ 4,217 crore compared payment of dividend ¢ 2,528 crore. Further funds were
to ¢ 4,011 crore in the previous year on increased profits. applied for purchase of current investment of ¢ 2,422 crore
and net interest payment of ¢ 2,968 crore during FY 2021-22.
Consequently, there was a net increase of ¢ 314 crore in
Exceptional Items
the cash balances as at March 31, 2022 as compared to the
Exceptional items during the year mainly comprises beginning of the year.
divestment gain on sale of Singoli – Bhatwari Hydro project
partly offset by tax on transfer of L&T Nxt to Mindtree Consolidated Fund Flow Statement ¢ crore
Limited. The previous year mainly included impairment Particulars FY 20-21 FY 21-22
of funded exposure in the Heavy Forgings Joint Venture, Operating activities 23,074 19,163
impairment of asset in the power development business, net
of gain on divestment of wealth management business of Net divestment/(investment) 11,574 665
L&T Finance Holdings Limited. Treasury and dividend income 1,476 1,130
ESOP Proceeds (net) 16 11
Profit from Discontinued Operations Sources of Funds 36,140 20,969
The previous year’s Profit from Discontinued Operations Capital expenditure (net) 922 3,040
includes gain from divestment of the Electrical & Automation
business and profit from operations of the same up to the Repayment of Borrowings 9,047 8,677
date of transfer. Purchase / (Sale) of investments 17,787 2,422
Dividend paid 3,651 2,528
Consolidated Profit after Tax and EPS Interest paid 3,388 2,968
Consolidated Profit after Tax (PAT) (excluding exceptional Payment to/(receipt from) minority (796) 1,020
items and profit from discontinued operations) at ¢ 8,572 interest (net)
crore for the year 2021-22 increased by 23.1% over the Increase/(Decrease) in cash balance 2,141 314
previous year at ¢ 6,965 crore.
Utilisation of Funds 36,140 20,969
Consolidated Profit after Tax (PAT) (including exceptional
items and profit from discontinued operations) at ¢ 8,669 The total borrowings as at March 31, 2022 was lower at
crore for the year 2021-22 decreased by 25.2% over the ¢ 123,468 crore as compared to ¢132,605 crore as at March
previous year at ¢ 11,583 crore. 31, 2021. The major decrease is in borrowings of Parent
entity, Financial Services, Nabha and Hyderabad Metro. The
Consolidated Basic Earnings per Share (EPS) for the year gross debt equity ratio decreased to 1.29:1 as at March 31,
2021-22 at ¢ 61.71 declined over previous year at ¢ 82.49. 2022 from 1.51:1 as at March 31, 2021. The net debt equity
ratio improved to 0.81:1 as at March 31, 2022 from 1:1 as at
As highlighted above, the reduction in PAT and EPS over the March 31, 2021.
previous year is primarily due to the gain on divestment of
the Electrical & Automation business in FY 2020-21.
Details of significant changes in key financial
ratios along with explanation:
Return on Consolidated Net Worth
In compliance with the requirement of listing regulations,
The Net Worth, as on March 31, 2022, at ¢ 82,408 crore,
the key financial ratios of the Group have been provided
reflects a net increase of ¢ 6,539 crore, as compared to the

32
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

hereunder along with the explanation for the significant Liquidity & Gearing
changes i.e. change of 25% or more as compared to the
previous financial year: Business operations generated cash flows of ¢ 5,999 crore
during the year as compared to ¢ 9,561 crore in the previous
year. The drop is mainly due to higher deployment of funds
Sr. No. Particulars 2020-21 2021-22 %Change
to support growing business volumes. The cash generated
(i) Gross Debt Equity Ratio 1.51 1.29 14.2% through the sale of short term investment at ¢ 4,075 crore,
(ii) PBDIT as % of net revenue 11.5% 11.6% 1.3% treasury income of ¢ 852 crore and dividend income from
(iii) Net Working Capital % of 22.3% 19.9% 10.7% S&A companies at ¢ 1,615 crore has been utilised towards
Sales (Excluding Financial repayment of borrowings (incl. repayment of lease liability) of
Services & Corporate) ¢ 4,236 crore and net investment in S&A companies at
¢ 667 crore, in addition to capex payment of ¢ 1,350 crore,
(iv) Interest Coverage ratio* 3.76 5.14 36.8%
(excludes Financial dividend payment of ¢ 2,528 crore and interest payment of
Services and Finance ¢ 1,608 crore respectively.
Lease Activity)
There was a net increase of ¢ 2,164 crore in the cash
* The significant change in the Interest Coverage Ratio for balances as at March 31, 2022 as compared to the beginning
FY 2021-22 has been due to improvement in profits of the year.
and reduction in average borrowings, especially at L&T
Standalone level. Fund Flow Statement ¢ crore
Particulars FY 20-21 FY 21-22
II. L&T STANDALONE
Operating activities 9,561 5,999
L&T’s standalone financials reflect the performance of
Sale / (Purchase) of Other investments (13,115) 4,075
Infrastructure, Hydrocarbon, Power, Heavy Engineering,
Defence Engineering and Others. The Others segment Treasury and dividend income 1,853 2,468
comprises Realty, Construction & Mining Machinery, Rubber ESOP Proceeds (net of buyback 16 11
Processing Machinery, Smart World & Communication and expenses)
Digital Businesses. Sources of Funds (1,685) 12,553

During the year, L&T Hydrocarbon Engineering Limited, Capital expenditure (net) 149 1,350
a wholly-owned subsidiary company was merged with Repayment of Borrowings 1,153 4,236
the Company pursuant to the approval of the Scheme (net of Additional Borrowings)
of Arrangement from National Company Law Tribunal, Net investment/(divestment) (8,688) 667
Mumbai Bench (NCLT) with appointed date of April 1, 2021.
Dividend paid 3,651 2,528
Accordingly, previous year’s figures have been restated for
comparative purpose. Interest paid 1,910 1,608
Increase/(Decrease) in cash balance 140 2164
Brief Summary of Performance at Standalone level: Utilisation of Funds (1,685) 12,553

¢ crore Total borrowings as at March 31, 2022 reduced to ¢20,298

Parameters FY 20-21 FY 21-22 crore as compared to ¢ 24,474 crore in the previous year. The
loan portfolio of the Company comprises a mix of Rupee and
Order Inflow 1,26,414 1,18,956
suitably hedged foreign currency loans. The gross debt-equity
Share of International Order Inflow (%) 15% 26% ratio reduced to 0.30:1 as at March 31, 2022 from 0.40:1 as
Revenue 87,255 1,01,000
at March 31, 2021. The Company has become debt free after
considering cash and cash equivalent during the year.
Share of International Revenue (%) 26% 20%

Order Book 3,08,101 3,15,567

Share of International Order Book (%) 18% 19%

PBDIT 8,309 9,055

PAT 11,798 7,879

Net Worth 61,738 67,114

RONW (%) 20.5% 12.2%
EPS (in ¢) 84.02 56.09

33
Integrated Annual Report 2021-22

Mauritius LRT Phase 1

INFRASTRUCTURE BUSINESS
Sector Performance in FY 2021-22 The Prime Minister announced a national master plan for
multi-modal connectivity in October 2021, with the goal of
India continues to invest heavily in infrastructure development developing infrastructure, to lower logistic costs and improve
as the primary driver of growth. This is not only in terms of efficiency. The Government’s PM Gati Shakti initiative is
adopting a long-term integrated focus on large infrastructure expected to bring together 16 Ministries and is expected to
projects but also facilitates quick implementation by providing help in taking care of long-standing issues, such as disjointed
the necessary regulatory and timely financial support. This planning, lack of standardisation, problems with clearances,
has augured well for the country and as a multiplier effect, and timely creation and utilisation of infrastructure capacities.
evidenced positive sentiment on private capex as well. This announcement follows two major steps taken by the
Government towards advancing Indian infrastructure, namely,
Over the years, the Union Government continues to provide the National Infrastructure Pipeline and National Monetisation
policy support for Infrastructure development in India. In the Pipeline, helping generate funds to support the capex.
Union Budget 2021, to support initiatives such as ‘Housing
for All’ and ‘Smart Cities Mission’, the Government allocated The Government’s thrust for bi-lateral co-operation bodes well
¢ 13,750 crore to AMRUT and Smart Cities Mission. In March for the construction industry. In November 2021, India, US,
2021, the Parliament passed a bill to set up the National Bank Israel and the UAE established a new quadrilateral economic
for Financing Infrastructure and Development (NaBFID) to forum to focus on infrastructure development projects in the
fund infrastructure projects in India. region. To meet the objective of a USD 5 Trillion Economy by
2025, Infrastructure spend will be the key driver.
Additionally, in the Union Budget 2021, the Government
announced the Pradhan Mantri Atmanirbhar Swasth Bharat Post a six-year slowdown triggered by the crash in oil prices
Yojana (PMANSY), which will entail an outlay of ¢ 64,180 in 2014 and deepened by the impact of COVID-19, the Gulf
crore over six years to strengthen the existing ‘National Health Cooperation Council (GCC) construction industry is finally
Mission'. The Government also announced ¢ 18,998 crore for set for a strong recovery, as oil production and prices have
metro projects. The Government announced ¢ 305,984 crore risen and much of the non-oil sector rebounded from the
over the next five years for a revamped, reforms-based and impact of the pandemic. The Middle East is continuing to
result-linked new power distribution sector scheme. diversify into non-oil sectors and take advantage of its natural
solar resources. The region also has robust plans around
As a follow up, the Union Budget 2022 has focused on high healthcare, transport, water and sewage, offering some
impact areas and accelerating the capital expenditure cycle by prime opportunities to EPC players.
providing for a sharp increase in capex outlay by 35.4% (from
¢ 5.54 lakh crore in FY 2021-22 to ¢ 7.50 lakh crore in Saudi Arabia, the GCC region’s largest economy in 2021, has
FY 2022-23), to propel economic growth. begun to ramp up tendering on its Public Investment Fund (PIF)

34
 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Mumbai Trans Harbour Link Project

‘giga projects’ program, particularly on the Neom, Red Sea, The Infrastructure segment won orders worth ¢ 93,515 crore,
Diriyah Gate and Qiddiya developments, as it seeks to turn lower by 8.9% over the previous year that had receipt of
its ambitious tourism and real estate plans into action on large-value, high-speed rail orders. During the current year,
the ground. the Power Transmission & Distribution business registered
significant growth with receipt of a mega order in the Middle
While the pandemic affected the African economies, the IMF East. The Buildings & Factories business registered growth
is predicting a strong recovery that will catalyse an increase with receipt of some prestigious orders in the Health and
in project investment. However, Africa’s project plans are
Public Space businesses. The Water & Effluent Treatment
engulfed with challenges from political instability to poor
business also received numerous orders in the Rural Water
infrastructure and lack of finance.
Supply segment, majorly in Uttar Pradesh. De-growth
Increasing construction activity around the globe is expected was seen in the Heavy Civil Infrastructure, Transportation
with global growth gaining momentum. The sharp rise Infrastructure and Minerals & Metals businesses mainly due to
in crude prices will remain a double-edged sword, raising deferral of targeted prospects.
expectations for the oil and gas sector and infrastructure
development in the Middle East, which would augur well The share of international Order Inflow for the Infrastructure
for the construction sector but simultaneously create segment increased to 29%, from 19% in the previous year.
inflationary pressures.

Financial Performance of the Segment

Order
OrderInflow
Inflow Gross Revenue
Gross from
Revenue Operations
from Operations
�crore
�crore �crore
�crore

140000
140000 (8.9%)
(8.9%) 100000
100000 18.7%
18.7%

102702 80000
80000 73560
73560
102702
100000
100000 93515
93515
19%
19% 19641
19641 61962
61962 16752
16752 23%
23%
27231 60000
60000
27231 29%
29% 25% 15709
25% 15709
60000
60000 40000 56808
56808
40000
81%
81% 83061
83061 8.5%
8.5% 77%
77%
66284
66284 71%
71% 20000 75%
75%46253
20000 46253 8.2%
8.2%
20000
20000
0 0 0 0
2020-21
2020-21 2021-22
2021-22 2020-21
2020-21 2021-22
2021-22
Domestic
Domestic International
International Domestic
Domestic International
International OPM%
OPM%

35
Integrated Annual Report 2021-22

Hydearbad International Airport

The Infrastructure segment clocked a gross revenue of The business is organised into following business units (BUs):
¢ 73,560 crore for FY 2021-22, registering growth of 18.7%
over the previous year. Growth was mainly on account of pick Public Spaces: Provides design and execution of special
up in execution momentum of a strong opening Order Book. structures like tall statues, metro stations, convention centres,
Revenue from international operations constituted 23% of marquee buildings, hotels, malls, integrated development and
the total revenues, compared to 25% in the previous year, educational institutions.
with some large value orders getting substantially completed.
Airports: Offers design-and-build solutions for passenger &
The segment’s operating margin reduced from 8.5% to 8.2% cargo buildings and allied service buildings, with integrated
mainly due to the impact of high commodity prices and airport system solutions like baggage-handling systems,
increased provisions on contract assets and customer receivables. passenger-flow monitoring system, passenger boarding
bridges, visual docking guidance systems and other facilities.
The funds employed by the segment at ¢ 24,234 crore as at
Factories: This business unit is a one-stop solution for the
March 31, 2022 registered a decline of 3.7% vis-à-vis March
EPC requirements for cement plants, automobile plants, EV
31, 2021, with receipt of advances in large value projects and
manufacturing, glass & paint manufacturing, warehouses,
better vendor credit management. The increase in inventory
automobile test tracks and food processing plants.
levels to sustain the operations from headwinds in supply
chain also impacted the funds employed to an extent. Health: This BU handles the turnkey Design & Build solutions of
hospitals, medical and nursing colleges. Healthcare infrastructure
is delivered with end-to-end healthcare facilities, including
Buildings & Factories medical equipment, right from concept to commissioning.

Residential Buildings: This unit is a prime EPC solutions

Overview
provider of elite, affordable and mass housing projects.
The Buildings & Factories (B&F) business is an industry leader
in Design & Engineering, Procurement and Construction (EPC) ITOS & Datacentres: Focuses on providing concept-
of projects ranging from airports, hospitals, stadiums, retail to-commissioning services for setting up Data Centers,
spaces, educational institutions, IT parks, office buildings, leveraging its strong mechanical, electrical and plumbing
data centers, high-rise structures to mass housing complexes, (MEP) competencies. It also offers turnkey office space
cement plants, industrial warehouses, test tracks and other solutions for Information Technology and Office spaces.
light factory structures. The business has a track record of
B&F Fast: Responsible for exploring and creating value from
building the tallest, largest, and most complex structures
advanced construction technologies such as prefabricated
across India and overseas. prefinished volumetric construction, modular construction,
structural steel construction, and 3D printing that will fast
track project delivery.

36
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Patna Medical College and Hospital

The Buildings & Factories business offers total turnkey solutions The ITOS segment looked subdued in the initial quarters with
with in-house structural & architectural design using advanced very few large prospects and most of the large ITOS majors
systems like BIM 4D, 5D and BIM 360 field. The Engineering deferring new investments. The year ended with the receipt
Design and Research Centre (EDRC), supports various business of an international order by the BU.
units with efficient engineering solutions and has proven
capabilities in the Data Centre segment as well. Indian real estate ended the fiscal on a very strong footing,
registering one of the highest growth in recent times,
Dedicated competency cells, advanced formwork systems, positively impacting the business. However, Central & State
mechanised project execution, a wide network of consultants Government prospects under ‘Housing for All scheme’ did
and vendors, digitised project control and a talented pool not pick up as anticipated during the period.
of employees help the business in sustaining its leadership
position over the years. The Factories BU saw traction with improved private capex in
the green energy and related segments like electric scooter
factory. Cement manufacturing and industrial chemicals like
Business Environment paints are also gaining traction.
India has emerged as the fastest-growing major economy in
the world and is expected to be one of the top three economic The B&F Fast division has started expanding into the
powers in the world over the next 10-15 years, which augurs market with jobs from Central Government agencies and
well for the B&F business vertical that is dependent equally on other structural steel buildings with some private players.
the public and the private sector investments. The business is now exploring to exploit its expertise in
technologies like 3D printing, PPVC, etc.
As COVID-19 restrictions were gradually lifted, many parts
of the economy witnessed robust activity and private sector Investments in the GCC region remained muted during
capex also showed signs of revival. the financial year.

While the country requires enormous investments in the Major Achievements

expansion and building of new airports to handle expanding
traffic and boost regional connectivity, with the onset of the
Orders won:
pandemic, the investment decisions got delayed.
• Common Central Secretariat project at New Delhi
A growing population and rising burden of new diseases boosts
the demand for health care systems in the country. The Health • SCB Medical College and Hospital, Cuttack
BU saw prospects materializing for construction of hospitals. • IT/Hi-Tech Park at Bangladesh

The Central Vista Redevelopment Infrastructure Plan involving • Prestige City Project, Bengaluru
multiple projects added prospects for the Public Spaces BU. • Super Specialty Hospital at Warangal

37
Integrated Annual Report 2021-22

LnT Innovation Campus - Chennai

Projects commissioned: of Housing & Urban Affairs, Government of India towards

Volumetric (3D) Concrete Printing Technology (VCPT).
• AIIMS Hospital at Gorakhpur
With the technology certification from the Government of
• Indira Gandhi Hospital at Dwarka India’s Apex Body, L&T is planning to offer this innovative
• AIIMS Guntur, Mangalagiri technology to all its prestigious customers and implement in
its ongoing projects.
• NXTRA data center at Chennai
• Prestige Song of the South project in Bengaluru A structured Lean Practices Implementation drive is carried
out across major projects in the business. Some of the
Other key achievements: Lean Initiatives being implemented are Planned Percentage
Complete (PPC), Last Planner System (LPS®), Constraint
The business also achieved important milestones in the Identification, Weekly Progress Tracking, Variance & Root
execution of major landmark projects: Cause Analysis, Workmen Performance Measurement &
Reward System, Work Sampling Technique and 5S system
• Delhi International Airport – Ph 3A – T1, Arrival Part A
implementation to remove root cause of poor housekeeping.
opened for passenger movement in February 2022
Extensive training programs are conducted for staff and
• Chennai Airport- Commissioned the Arrival Lounge for workmen to adopt these practices.
public use
In addition to the existing set of digital tools to monitor
• 1,30,000 Cum Engineered Fill completed in record time of
project progress, quality, safety and workmen mobilisation,
5 months at Shri Ram Temple Project, Ayodhya
some more applications like Procurement Tracker, Material
• Completion & handing over of FCS ADE Facility to DRDO in Wastage Control Solution, Integrated Gate Entry System,
a record time of 45 days and Workforce Management Solutions were developed and
To provide impetus for India’s ambitious ‘Housing for All’ implemented to improve procurement turn-around time,
initiative, the business has been extensively exploring 3D reduce wastage, track material movement, and enhance
Concrete printing, which is significantly new and radically workmen productivity. The business has inhouse developed
different from conventional construction methodology. With and introduced ’Safety Screen System‘ in all new high-rise
extensive research and after obtaining design validation residential structures to significantly enhance the safety of
and structural stability certification from Indian Institute workers while working at high altitude.
of Technology, Madras (IIT-M), the business printed a G+1
Various training programs, for staff and workmen, have been
reinforced concrete building in the previous year. It has
conducted throughout the year to inculcate a pro-safety
received Performance Appraisal Certification from Buildings
culture in the organisation.
Materials & Technology Promotion Council (BMTPC), Ministry

38
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Dhaka Metro

Outlook FY 2022-23 is poised to be a very promising year for the

Indian housing market, supported by investments either
With 100% FDI allowance for green field airports, it is from Government or private players in the Affordable
anticipated that India is set to become the 3rd largest aviation Housing Segment.
market by 2025. India’s aviation industry is expected to
witness ¢35,000 crore (USD 4.99 Bn) investment in the next With manufacturing leaders trying to set their hubs in India,
four years. The Indian Government is planning to invest it is expected that the factories sector will get a significant
USD 1.83 bn for development of airport infrastructure along boost. The Solar PV industry which is now under PLI is also
with aviation navigation services by 2026. expected to generate significant prospects in the future.
Warehousing and Logistics are picking up pace. Industrial
The health sector has garnered significant attention from Chemicals like Paints are gaining significant investments.
the Government after the pandemic. The Government has The Automobile and the Cement industries are also on an
allocated about ¢64,000 crore for healthcare infrastructure over uptrend and will lead an increase in the setting up of new
the next 6 years. Government spending is the biggest growth manufacturing facilities across the country.
driver for this segment and the business is expected to focus
on major healthcare prospects coming up from the Central With the economy poised to grow in the coming year the
Government and the State Governments. The total Health business is well placed to benefit from the expected large
Sector allocation for FY 2021-22 stood at ¢223,846 crore. investments across many sectors.

The State and the Central Governments and a few public

sector units are coming up with buildings like the Central TRANSPORTATION
Vista, Museums, Statues and Educational Institutions. The
awards under National High Speed Rail Corporation Ltd.
INFRASTRUCTURE
( NHSRCL) projects are picking up pace and are likely to
witness further tendering. The business is also expecting
some traction in the development / redevelopment of railway
Overview
stations across the country. L&T’s Transportation Infrastructure business is one of the
leading contractors in India offering turnkey Design & Build /
The Indian Data Centre Industry is witnessing meteoric EPC solutions with single point responsibility for all kinds
growth. A large and growing internet user base coupled of transportation infrastructure such as Roads, Bridges,
with the explosion of data and creation of a conducive Railways, City Infra, Urban Transit and Airports. The business
atmosphere via the Government’s Digital India Mission has is broadly divided into two Strategic Business Groups (SBGs),
transformed India into a fast-growing data centre hub. namely, Railways Business Group (RBG) and Roads Runways
& Elevated Corridors (RREC).

39
Integrated Annual Report 2021-22

Dhaka Metro MRT Line 6

The Railways Business Group is recognised as a full range Business Environment

rail system integrator. The SBG has built capabilities in all
3 railway domains including track construction, overhead Railway Business Group
electrification and signalling & telecommunication. The SBG
is further subdivided into Mainline Business Unit (MLBU) Increasing urbanisation, growing industrialisation, and the
and Metro Business Unit (MTBU). MLBU addresses EPC need to connect metros with growth centres has been driving
construction works in the domains of civil and trackwork, the growth in the Railway sector in the past few years. The
electrification, system integration for all Mainline Railway pace of infrastructure creation has been at an all-time high
Projects, Dedicated Freight Corridors, and Rail Links for with new and innovative means of construction. Most of
Port, Mining & Power Plant facilities etc. MTBU addresses the projects during the year were awarded on a fragmented
EPC construction works involving ballastless trackwork, basis. As a part of Atmanirbhar Bharat, 2,000 km of network
electrification and system integration for all Mass Rapid will be brought under Kavach, the indigenous technology
Transit System Projects and Regional Rapid Transit System in for safety and capacity augmentation in FY 2022-23. A new
India and abroad. Project Development Cell (PDC) has been created in the
Railway Board to increase investments and encourage foreign
The Road, Runways & Elevated Corridor Business Group direct investment.
is divided into Roads & Bridges (R&B) Business Unit and
Formations & Structure (Railways) Segment (F&S). R&B Roads, Runways & Elevated Corridor SBG
provides EPC design and build construction services for all
types of roads, bridges and elevated corridors including all The budgetary support for the Road and Bridges sector has
associated structures, cross-drainage, toll booths, wayside seen a steady increase of more than 58% over the last 4 years.
amenities, etc. In the airport sector, the R&B BU is involved 18% of the National Infrastructure Pipeline announced by the
in the construction of complete airside infrastructure viz. Government is earmarked for roads & bridges.
runways, taxiways, aprons, airfield ground lighting, fuel Over the last 7 years, the length of National Highways has
hydrant systems, etc. The F&S Segment provides design and gone up by 50% - from 91,287 km (as of April 2014) to
build construction services of civil works (Earthwork, Earth- 1,46,440 km (as of March 2022). Construction of highways
retaining structures, Cross drainage, etc.) for all types of has increased to 39 km / day in 2021-22 from 27 km / day in
Railway projects including Dedicated Freight Corridors, High 2019-20, with an increased focus on the timely delivery
Speed Rail and Urban Railway Network. of projects.

The business has Engineering Design Centres located at Also, in view of the exponential increase in traffic over the
Mumbai, Faridabad, and Chennai. It also has a Competency years in urban areas, the Government has shifted its focus
Development Centre at Kancheepuram and a Workmen on developing many new Elevated Corridor / Flyover projects
Training Centre at Ahmedabad. across major cities, with the primary aim of decongesting
urban roads and highways.

40
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Ghoshpukur Salsalabari Road Project

However, over the last couple of years, the number of equipment, the section corresponding to CTP 1 & 2 has
projects awarded under the Hybrid Annuity Method is seeing been commissioned
an increase impacting the prospects for pure play EPC players.
• Odisha Power Generation Corporation - Fully
The Airport sector did not see any major traction in the commissioned 68 km rail connectivity and commercial
recent year. operations started from Manoharpur Coal Mines to
Thermal Power Plant for the OPGC project
Major Achievements • Phase 2A of Mauritius Metro Express has been
commissioned (Rose Hill to Quatre Bornes) and is in
Orders won: commercial operation since June 2021
Major projects received during the year: • 18 TKM of Kanpur Metro priority section commissioned in
Dec 2021 from IIT to Motijheel
• Slab Track Package T3 Package (258 TKM) from National
High Speed Rail Corporation Ltd. • Loco Trial for 133 TKM priority section of EDFC CP-204
Mughalsarai to New Bhaupur commenced in Feb 2022
• EPC Overhead Electrification Projects from IRCON
from Kanpur to Sujatpur
• Third Rail Traction Project: Agra Metro (64 TKM) from Uttar
Pradesh Metro Rail Corporation Limited • Loco Trial for 118 TKM priority section of EDFC MGS-
SEBN commenced in Nov 2021 from New Ganjkhwaja to
• Ganga Expressway Group 1, Package A from IRB Chiralapathu Station
Infrastructure Developers Ltd.
• 4 Lane 11 km Chandigarh-Khadar Elevated Corridor
• Chennai Peripheral Ring Road Project EPC 02 of section
commissioned in June 2021
II from Tamil Nadu Road Infrastructure Development
Corporation • 4 Lane 84 km Ghoshpukur-Salsalabari Road Project
• 4 Lane to 6 Lane Ghaziabad to Aligarh Road Project from commissioned in Jul 2021
CUBE Highways • 4 Lane 34 km Helwak-Patan-Karad Road Project
• Bangalore Suburban Rail Project – Corridor 02 from Rail commissioned in Jul 2021
Infrastructure Development Company, Karnataka
• 4 Lane 111 km Baharagora-Singhara Road Project
Projects completed: commissioned in Aug 2021
• 4 Lane 30 km Karodi-Aurangabad Road Project
The business has completed the following projects:
commissioned in Feb 2022
• Electrical and Mechanical Works at Western Dedicated • Bidkin Industrial Area Development Project commissioned
Freight Corridor involving 2x25 kV, high rise over head in Apr 2021

41
Integrated Annual Report 2021-22

Mumbai-Nagpur Expressway

Rapid commissioning of Western & Eastern Freight Corridors

Outlook will catalyse development of new freight corridors i.e., East
Coast, North-South and East-West Corridors. Detailed project
Railway Business
reports have been initiated for East Coast (1,114 km) and the
As per the National Infrastructure Pipeline, investments East-West (2,328 km) Corridors. In total, Projects worth
worth ¢ 13.67 trillion are to be made in the railways sector ¢ 58,500 crore are expected to be finalised in the next 5 years.
during the period from 2019-20 to 2024-25 to enhance track
capacity, improve freight efficiency, augment the speed of Systems orders are expected to be finalised across six Metros
trains, enhancing safety and ensuring better connectivity. In in FY 2022-23 viz. Chennai Metro Phase 2, Ahmedabad
FY 2022-23, the national transporter has received the highest Metro Phase 2, Surat Metro, Indore and Bhopal Metro and
ever total plan capex of ¢ 2.45 trillion vis-à-vis ¢ 2.15 trillion Delhi Metro Phase 4. New Metros have been announced
in FY 2021-22.
in several Tier 2 cities like Gorakhpur, Varanasi, Meerut,
The Indian Railways (IR) has announced multiple projects Vijayawada, Vizag, Dehradun, Bhubaneswar etc. Expansion
aimed at capacity augmentation and traffic decongestion in of existing Metro Systems in major cities such as Mumbai,
its network. The prospects in next 3 years include New Line Delhi, Bangalore, Chennai, Kolkata is underway. The business
6,000 km (¢ 60,000 crore), Doubling / 3rd Line 4,000 km outlook for the next 5 years includes 18 new projects
(¢ 40,000 crore). (700 km) in the Track and Systems domain.

Also, through Mission Electrification, IR has completed the Road & Bridges
highest-ever Railway Electrification of 6,366 km in its history
and further IR has commenced upgradation of the existing The Government has planned to expand the National
electrification system to 2x25 kV electrification to facilitate Highway network by ~ 60,000 km by 2025 in major
higher speeds (upto 160 km / h), haulage and improved economic corridors, strategic areas, and Elevated Corridor
system efficiency for High Density Network (HDN) and Highly & Flyovers network in major cities such as Delhi, Chennai,
Utilised Network (HUN) through Zonal Railways. Kolkata, Mumbai and Bengaluru, with an investment outlay
of ¢ 20.33 lakh crore under the National Infrastructure Plan
Civil Packages and System Tenders expected under the four
(NIP). While a daily average of constructing 39 km of road per
RRTS corridors being implemented by the National Capital
day has been achieved in March 2022, the Government has
Region Transport Corporation (NCRTC).
set up an ambitious target of construction of 25,000 km of
Further Track and Systems packages are expected to be national highways in the next fiscal year under the PM Gati
awarded for the Mumbai – Ahmedabad High Speed Corridor Shakti National Master Plan.
during FY 2022-23.

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

The Mumbai Coastal Road Project. L&T is executing Packages 1 and 4.

International Front The nuclear business segment offers turnkey services

including seismic qualification, civil, mechanical, electrical,
On the international front, while the business continues to instrumentation and modular construction technology. Its
focus on neighbouring countries like Bangladesh, it is also expertise extends to both Pressurised Heavy Water Reactor
strongly looking at entering ASEAN, North and East Africa (PHWR) and Light Water Reactor (LWR) technologies.
– regions where the Company already has a presence in the
other businesses. The Company’s Hydel & Tunnels segment is involved in road
and railway tunnelling projects, which enhances nation
building and offers EPC solutions for complete hydroelectric
HEAVY CIVIL INFRASTRUCTURE power projects, large-diameter transport / water tunnels and
complex irrigation projects.

Overview The Marine Structures Vertical has extensive experience in

The Heavy Civil Infrastructure business is a market leader in greenfield ports, shipyard structures and seawater intake
EPC projects in core civil infrastructure segments that are systems along the coastlines of India. It specialises in
crucial to the Indian economy viz. Metro Rail System, High providing state-of-the-art ship lift structures and turnkey EPC
Speed Rail, Nuclear, Hydel & Tunnels, Marine Structures and solutions.
Defence Infrastructure Facilities.
L&T Geostructure, a wholly-owned subsidiary engages in
The business has a strong presence in India, Middle East, foundation and ground improvement projects. With its expertise
and Bhutan. With dedicated design and technical centres, in building deep piling and diaphragm walls, multicellular intake
competency cells, specialised training centres, digital project wells for river-linking, and marinas with berths and jetties. It
management, and a talented pool of employees, the business has a strong and professional foundation specialised team with
sustains its leading position. knowledge of design, equipment, and methods to execute and
supervise sophisticated foundation works.
The business is currently involved in the construction of the
country’s first High Speed Rail corridor connecting Mumbai to Business Environment
Ahmedabad. The latest construction technologies including
in-house fabricated Full Span Launching Equipment, Straddle The Government is keen to expand metro services to 50
Carrier and Girder Transporter are being used in the marquee Indian cities to accommodate the growing commuting
project as a part of the Make in India initiative. requirements and for better mobility.

With an industry leading position in enhancing urban mass With hydel power evolving as an alternate source for grid
rail transit capabilities, the Company is involved in building stability, the Government has taken various steps for the
metro rail systems in nearly all major Indian cities. development of hydropower projects in J&K and the North-
Eastern states. 21 Hydropower projects with an aggregate

43
Integrated Annual Report 2021-22

Bangalore Metro – an underground section Rishikesh-Karnaprayag Rail Link Package 2

capacity of 5,186 MW are under discussion at various levels • Patna Metro PC03 for construction of underground twin
for development in the next five years in Jammu & Kashmir. tunnel of 6.3 km length each and 6 stations between
Rajendranagar and Akashvani
India’s installed nuclear capacity is 6,780 MW which is
expected to reach to 22,480 MW by 2031 on completion of • Delhi Metro Rail Corporation Package DC 09 for
projects under construction. At present there are 11 reactors construction of twin TBM tunnel of 5 km length each and
at various stages of construction totaling to 8,700 MW. 4 underground stations between Chattarpur and Neb Sarai
• High Speed Rail Package C5 for construction of civil and
In the Maritime India Summit – 2021, the Government came
up with the Maritime Vision 2030, which envisages the building works for double line high speed rail involving
development of three mega ports of greater than 300 MTPA Vadodara station between MAHSR 393.7 km and MAHSR
cargo handling capacity. Debottlenecking of existing port 401.9 km in the state of Gujarat
facilities is required to accommodate the increased cargo
handling and trading sector. Also, the Government is keen on Key achievements:
strengthening and modernising naval bases across the country.
• Bangalore Metro RT-03 package achieved its second
The Government is focusing on building new capacities and TBM breakthrough on 13th October 2021 after
upgrading existing defence infrastructure. This will lead to covering 866 m
creation of opportunities in various defence infrastructure • High Speed Rail Package 4 connecting Zaroli village –
projects including naval infrastructure facilities. Maharashtra – Gujarat border to Vadodara erected the
first 40 m full span box girder (weighing 970 MT) on 25th
Major Achievements November 2021 at the Navsari casting yard
• RVNL Package 2 connecting Shivpuri to Byasi in
Orders won:
Uttarakhand completed 10 km of tunnelling using the new
• Chennai Metro Rail Ltd. Phase 2 Packages – Austrian tunnelling method (NATM) technology in about
»» UG TU – 02 for construction of approx. 12 km twenty months (out of total 26.6 km)
underground twin tunnel between Kellys and • India’s largest TBM (MAVALA having 12.19 m dia.) at
Taramani Road Mumbai Coastal Road Project, Package-4 achieved its
»» C5 ECV – 02 for construction of approx. 12.4 km of first breakthrough on 10th January 2022, covering a total
elevated viaduct and 12 elevated stations between CMBT distance of 2.1 km
metro station and Puzhuthivakkam metro station • Bangalore Metro Rail Project, RT-02 package has achieved
»» CP10 ECV – 03 for construction of approx. 10.2 km of its First Tunnel Boring Machine (TBM) Breakthrough on 6th
elevated viaduct and 11 elevated stations from Assissi January 2022 at MG Road Station
Nagar to CMBT Metro station

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

500kV Bang Saphan 2 to Surat Thani 2 Transmission Line

• Medigadda Barrage project in Telangana bagged Formwork FY 2022-23 to ¢ 7.5 trillion, which is 24.4% higher than ¢ 6.0
Award 2020 for best use of formwork in civil engineering trillion in FY 2021-22 revised estimate. The above initiatives by
from the Association of Consulting Civil Engineers, India GoI will benefit the business in the upcoming years.

Outlook
Considering Mission 2070 Net Zero India, the country
POWER TRANSMISSION &
is to focus on green construction technologies in future DISTRIBUTION
infrastructure projects. Carbon-efficient design (modular
design), adoption of low-carbon construction processes
(low emission materials such as fly ash), enforcement of Overview
building energy codes are few initiatives suggested by World L&T’s Power Transmission & Distribution business vertical
Economic Forum in the Mission 2070: A Green New Deal for is a leading EPC player, providing end-to-end solutions for
a Net Zero India white paper. The thrust on renewable energy transmission / distribution infrastructure, clean electricity
is expected to increase in the coming years, providing the starting from Solar PV plant EPC to last mile electrification. It
necessary boost for sustainable infrastructure such as Metros, offers integrated EPC offerings including Ground Mounted
Hydel & Nuclear businesses. / Floating Solar Photovoltaic Plants, Battery Energy Storage
Systems (BESS), Substations and Transmission Lines up
In India, metro networks operate only in 13 cities and to
to 1200 kV, Underground Cable Systems, Distribution
increase better urban mobility and metro being one of the
Infrastructure both at Medium & Low Voltage levels, and
low carbon emission transport systems, the Government
related Digital Solutions. With 15 regional offices spread
is keen to expand metro services. It is also considering the
across the SAARC, Middle East, Africa, ASEAN and CIS
implementation of Mass Transit Systems such as Metro /
regions, the Power T&D business has projects being executed
Metro Lite / Metro Neo / Personal Rapid Transit System in Tier
in 30 countries.
1 and Tier 2 cities keeping in view the growing importance of
the transport sector in the city’s overall development. The domestic business is organised based on offerings and
caters to various T&D utilities, developers and infrastructure
The Nuclear business is expected to continue its growth along
customers such as metros, airports etc.
with continued focus on 10 Pressurised Heavy Water Reactor
(PHWR) projects. The growing energy demand in India will The Substation Business Unit provides turnkey solutions
make nuclear power a major source of renewable power, as for Extra High Voltage (EHV) air insulated / gas insulated
fossil fuels are scarce in the country. substations, Flexible AC Transmission Systems (FACTS), Digital
Substation related solutions and EHV cable systems.
In terms of infrastructure investments, the Budget has factored
in a significant increase in capital expenditure in

45
Integrated Annual Report 2021-22

400 kV GIS Substation, Chennai, Tamil Nadu 132-11 kV Umm Besher and 132-11 kV Wakrah-4 Substation

The Transmission Line Business Unit provides complete The international units of the business provide the entire
EPC solutions for overhead transmission lines. It is spectrum of Power T&D related services in Middle East, Africa
well integrated with the digitally-driven, green tower and ASEAN regions.
manufacturing units at Puducherry, Pithampur and
Over the past three decades, the Middle East business unit
Kancheepuram, which have a combined capacity to produce
has earned a strong reputation among the utilities and oil
more than 1.5 lakh tonnes of tower components per companies in Saudi Arabia, UAE, Oman, Qatar, Kuwait, and
annum. The Kancheepuram facility also houses the world- Bahrain, having executed several marquee projects. It enjoys
renowned Tower Testing and Research Station. an enviable track record and garners significant share of T&D
projects awarded every year.
The Power Distribution Business Unit has been at the
forefront of taking electricity to all by providing a range of EPC The fast – expanding Africa business unit has executed
services related to urban / rural electrification, augmenting, several landmark projects in Algeria, Egypt, Morocco, Kenya,
reforming, and strengthening of high voltage and low voltage Ethiopia, Tanzania, Uganda, Botswana, Mozambique, and
distribution networks, power quality improvement works and Malawi. It has made further inroads into Western & Central
advanced distribution management solutions. Africa with breakthrough projects in Ghana and Cameroon.
With the regional offices strategically located in Nairobi,
The Renewables arm of Power T&D business is a single-stop Cairo, Johannesburg & Accra to serve the vast continent, the
EPC service provider globally for GW-scale Solar PV, Energy business has earned a coveted position with a sizeable market
share in the addressable segment.
Storage, Microgrid and Hybrid renewable projects. There are
very few players with such strong experience and expertise in In the ASEAN region, L&T is an established international
different module technologies, module mounting structures T&D player to reckon with, holding a portfolio of prestigious
and storage types. The business unit has accumulated in-depth projects spread across Thailand, Malaysia, and Philippines.
engineering and construction know-how to execute a vast
range of renewable projects, be it hybrid, floating or linear, Larsen & Toubro Saudi Arabia LLC (LTSA), a wholly-
with the best suited technologies for terrain type and tracking. owned subsidiary, provides engineering, construction,
and contracting services in the sphere of transmission &
The container integration facility at Kancheepuram augments
distribution in the Kingdom of Saudi Arabia.
the capabilities of the business with an annual capacity to
integrate ~ 400 MWh of battery energy storage system with
associated intelligent management and control systems. Business Environment
The initiatives in emerging areas such as Digital Solutions and With the consolidation of ongoing distribution schemes
under a new, yet to be operationalised Revamped
Electric Vehicle Charging Infrastructure have made initial wins
Distribution Sector Scheme, the distribution jobs were limited
and are on track to ensure that the business is future ready.
to few packages. However, the business emerged successful

46
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

500 kV HVDC Transmission Line, Kenya

in packages where the scope included advanced SCADA The expansion of the 380 kV network in Saudi Arabia
systems and Digital Solutions. presented sizeable opportunities for Substations and
Overhead Lines. A major Oil & Gas project win for the Group
The Substation and Transmission Line orders from state provided power system opportunities in the Kingdom. The
utilities were limited to few states like Karnataka and GW scale renewable energy projects being built in the region
Rajasthan. The delays in Tariff Based Competitive Bidding gained significant momentum.
for interstate T&D networks led to shrinking of orders from
Power Grid Corporation and other developers. In Africa, the lower vaccination rates, travel restrictions,
internal conflict, etc. etc. has caused a lull in the momentum,
On the back of ongoing transmission line projects in
with borrowing capacities of countries reduced drastically
Bangladesh, the business has made further inroads with
as per the Debt Service Suspension Initiative. However,
Substation and EHV cabling orders. With the successful
execution of Koshi corridor associated substations and the business gained successful entry into West Africa with
transmission lines, Nepal also offers good T&D prospects. breakthrough projects in Guinea and Cameroon. Addition of
South Africa into the fold is another key milestone. Sustained
The customer-end delays in finalisation of funding lockdowns and severe restrictions impacted the order
arrangements and fulfilling bidding / contractual finalisations in the ASEAN region.
arrangements for Optical Fibre Cabling (OFC) projects in
southern parts of the country led to lacklustre performance The FY 2021-22 witnessed several headwinds viz. successive
on the OFC front. The next phase of Bharat Net projects is yet waves of COVID-19, supply chain disruptions worldwide
to take off with PPP mode tenders receiving muted response. causing unusual increase in commodity / solar module prices
besides freight costs. These led not only to delayed order
The Renewables arm of the business has emerged successful finalisations from the customer’s end but also the measured
in more than 1 GWp projects in the western region of the pacing of progress in ongoing projects.
country, from Central and State Public Sector Enterprises.
This is in line with rising potential for hybrid plants with
wind and BESS components. Current supply constraints of Major Achievements
solar modules and batteries are envisaged to ease out in the
medium to long term with the push given by the Government Orders won:
through the Production Linked Incentive Scheme. • 400 kV & 220 kV Substations & Transmission Line
in Karnataka
The opportunities for providing Reactive Power
Compensation devices like STATCOMs, Static Var • 400 kV Substations & Transmission Line in Rajasthan
Compensators (SVCs), and Reactors have previously been • Switchyard package in Gorakhpur
limited only to India. However, such opportunities are on the
• Power Supply System for Agra Metro
rise in other operating geographies such as KSA, UAE and
Qatar recently. • EHV Cable System package in Bangladesh

47
Integrated Annual Report 2021-22

Large scale solar cum storage project in Andaman

• 230 kV GIS in Nepal • Seamless integration of customer relationship and enterprise

• A large Solar-cum-Energy Storage Project with 57 MWhr risk management modules, the migration to an advanced
storage capacity, in Gujarat version of enterprise portal with added capabilities and
fortified cybersecurity were some other milestones.
• STATCOM / Shunt Reactor / Dynamic Reactive Power
Compensation orders in Saudi Arabia and UAE
Outlook
• 400 kV TLs in Cameroon, Tanzania, and the Mozambique –
Malawi 400 kV Interconnector Various measures proposed in the General Instructions
on Procurement and Project Management guidelines by
• 225 kV TL in Guinea
Ministry of Finance, Government of India may prove to be
• 500 kV Castillejos TL – a major transmission line project gamechangers if these get implemented by Central Public
in Philippines Sector Enterprises.

Projects completed and commissioned: The Revamped Distribution Sector scheme gaining traction
• Two 230 kV Gas Insulated Substations in Bengaluru with budget allocation and ministerial push, several packages
are expected to get finalized in next year, especially the
• Power Supply Systems for Mumbai Metro Line 3 & Line 7 infrastructure works meant for Aggregate Technical &
• 1250+ km of Transmission Lines completed in Madhya Commercial (AT&C) loss reduction.
Pradesh, Kerala, etc.
The Himalayan terrain being quite familiar for the business, the
• Distribution Infrastructure improved by adding 2400+ upcoming Leh Solar evacuation related prospects may offer
RMUs and 1450 km of cable conversion in Northern part substantial prospects, in addition to Green Energy Corridor
of India II and intrastate strengthening packages. The evacuation
• 26 substations and 790 km of overhead / underground arrangements and electrics for nuclear power plants being
transmission corridors in the Middle East, including a developed in fleet mode is another good opportunity. Also, the
400 kV Substation in UAE and one of the longest 380 kV power system packages of metro rail projects in major cities
Overhead lines in GCC region provide good substation and cabling opportunities.
• 275 kV Matang Substation in Sarawak, Malaysia With oil prices remaining high due to geo-political tensions,
the Middle East region now provides stable opportunities,
Significant Initiatives though the individual countries are likely to witness cyclical
• Advanced resource management, BIM integration and variations due to various factors including demand growth.
forecasting abilities were added to the mature project
Challenges faced by the EPC players due to slow ramp-up of
management digital ecosystem PRAPTI / BODHI.
domestic module manufacturing capacity, price uncertainty
coupled with aggressive tariffs is further aggravated by

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Haliba, Containerised Substation Chattarpur Water Supply Project

additional customs duty coming into effect from April 2022 WATER & EFFLUENT TREATMENT
on import of solar cells and modules. With India’s ambitious
target of generating 500 GW of renewable energy by 2030,
prospects in renewable evacuation corridors look better. In Overview
KSA and Oman, GW scale plants characterised by substantial
BESS and Grid components continue to provide huge L&T’s Water & Effluent Treatment business develops water
opportunities, given the Net Zero commitments and Green infrastructure offerings which serve to store, move, and treat
Hydrogen prospects. water, thus delivering substantial social and economic benefits.
The business has established itself as an industry leader by
As the multilateral funding from institutions like JICA, executing, commissioning, and operating mega water projects
Millennium Challenge Corporation are now gathering in the areas of drinking water supply, wastewater treatment,
momentum and as the renewable energy projects are given industrial water treatment, irrigation and development of
a thrust, several opportunities including interconnector smart water infrastructure across the length and breadth of the
projects are now on the anvil in Africa. Countries such as country. The business has successfully forayed into Middle East,
Algeria, Mozambique, Tanzania, and Uganda also offer East Africa and SAARC region countries.
substantial potential.
L&T’s Water & Effluent Treatment business is organised into 3
The establishment of an Indonesian subsidiary of the business verticals – (i) Water & Wastewater; (ii) Irrigation, Industrial &
is expected to open up sizeable opportunities locally. The Infrastructure; (iii) Water International.
T&D network expansion plans of Thailand, Malaysia, and
Philippines in addition to Floating Solar, BESS and SVC related The Water & Wastewater business vertical comprises of Rural
opportunities have resulted in several prospects which are Water Supply, Urban Water Supply, Water Management and
under various stages of bidding. The entry into Georgia Wastewater Treatment encompassing the entire spectrum of
with a 500 kV Transmission Line order should help build water and wastewater solutions.
credentials and experience for further opportunities in the
Transcaucasia region. The Irrigation, Industrial & Infrastructure business vertical
constitutes Mega & Micro Irrigation, Industrial Water Systems &
The scaling up of the Digital Solutions business, given its Effluent Treatment, Desalination and Smart Water Infrastructure,
early successes proving its potential and prowess, provides catering to the needs of agriculture and industries.
another avenue for growth and profitability. The business
is well poised to garner opportunities arising out of the Net The Water International business vertical lays its focus on
Zero renewables race and provide a green technology path the international markets and continues to tap business
to clean energy transition in India and abroad, all this while opportunities in the regions of Middle East, East Africa, and
enabling the customers and prosumers with the highest SAARC region countries.
standards of reliability, availability and efficiency of power
transmission and distribution networks.

49
Integrated Annual Report 2021-22

Industrial Area Sewage Treatment Works, Doha, Qatar

Business Environment Major Achievements

The Financial year 2021-22 was the second consecutive
Orders won:
year that the nation had to bear the brunt of the COVID-19
pandemic, with Governments being forced to divert • Piped water supply schemes to various districts in
funds towards mitigating the healthcare emergency and Uttar Pradesh
consequently leading to deferment of prospects in irrigation • Rengali Right Bank underground pipeline project Odisha
and wastewater sectors. However, rural drinking water
• Sewerage works in K&C Valley, Karnataka
continued to receive support under the 'Har Ghar Nal Se Jal'
Yojana in certain states. • Zero Liquid Discharge and Demineralization works for IOCL
Refineries at Baroda and Barauni
The global spotlight on ESG led to an upsurge in technology
• Integrated Infrastructure Development Works for Silvassa
intensive process-oriented orders with some of the established Smart City
PSUs leading the way by transforming their process toward
water neutrality. • Dubai Water Transmission Project
• Water Supply Schemes in various towns of Tanzania
The water infrastructure market in the Middle East is on an
upward trajectory, aided by a rebound in the prices of crude Major projects commissioned:
oil. The water sector in the African subcontinent is seeing
increasing thrust from multilateral agencies focused on 6+ million people benefitted with the commissioning of 20
projects during FY 2021-22.
social sector lending in areas of drinking water supply and
wastewater treatment. Consequently, both these regions • Industrial Area Sewage Treatment Works, Qatar
witnessed a surge in prospects during the last quarter of
FY 2021-22. • 318 MLD Sewage Treatment Plant at Coronation Pillar, Delhi
• CDS Drinking Water Supply Schemes, Rajasthan
The increase in prospects across the value chain of the
• Bansujara Micro Irrigation Scheme, Madhya Pradesh
business has transformed the industry from a niche segment
to a highly commoditised market leading to entry of several • Kanpur Water Carriage System, Uttar Pradesh
competitors. Further, to aid participation of local agencies in The business celebrated the UN Designated ‘World Water
Government contracts, a sharp dilution in prequalification Day’ on March 22 , 2022 for the 13th consecutive year with
criteria has been carried out for all new tenders, leading to numerous events designed to inculcate the need for water
increased competition. The business has been able to thrive conservation among employees and other stakeholders. The
and grow amidst stiff competition by leveraging advanced mega awareness campaign conducted by the employees
technologies, digitalisation and is on course to transform covering 20,000+ students was declared a record by the India
itself into a technology-led EPC player. Book of Records for being the ’Largest Water Conservation
Campaign for students across the nation on a single day’.

50
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Moga Water Supply Scheme Project, Punjab

Significant Initiatives Outlook

As part of the business strategy to become future-proof and The prospects for development of water infrastructure
build on the foundation of an agile culture, the following continue to remain bright. As per NITI Aayog Report 2019,
initiatives were undertaken during the financial year: India is in the midst of a water crisis with 600 million people
facing extreme water stress. The Government is doing its bit
• In order to track the movement of workforce engaged in to tackle water scarcity through a variety of schemes.
remote working areas, a mobile application LMNOP Raksha
has been developed. The application sends timely alerts to The Jal Jeevan Mission with its ambitious target of providing
the related supervisor pertaining to work happening in risk tapped drinking water to 193 million households by 2024
prone areas leading to better EHS performance is expected to provide opportunities for mega prospects in
the arena of drinking water supply. With general elections
• Material Schedule Tracker (MST) is a predictive analytics scheduled for 2024 and several state elections around the
tool that provides information on cycle time associated corner, the Government is working on mission mode to
with the procurement of a wide variety of materials. MST, monitor the progress and hence prospects in this sector look
adopted across projects, aims to influence procurement very encouraging.
decisions and minimise delays associated with procurement
of major supplies Urbanisation, population growth, and climate related water
• In order to mitigate the impact of steep volatility in prices inequity will ensure good opportunities in the water and
of commodities due to pent up demand and geopolitical wastewater infrastructure area in the foreseeable future.
tension, the business is entering into pre-tender pricing Implementation of river interlinking projects announced in
agreements with reputed vendors and increasingly focusing the Union Budget 2022 will add another dimension to the
on the Just In Time Model for material procurement based business prospects.
on the availability of work fronts
Investment into irrigation infrastructure is expected to revive
• With the focus on accelerating innovation and maintaining soon. With 51% of agricultural area being rain fed and with
technology leadership, the business has embarked upon an overall irrigation efficiency of only 38%, a wide array of
the construction of a Water Technology Centre (WTC) prospects are visible in macro and micro irrigation with the
at Kancheepuram. The WTC is committed to continuous Government being focused on 'More Crop per Drop' through
R&D to innovate scalable solutions enabling the business its 'Pradhan Mantri Krishi Sinchayee Yojana'.
to meet present and future water needs, to build safe,
resilient and sustainable eco-systems globally The emergence of ESG investing has enhanced the focus
on sustainable corporate actions. As a result, the visibility
• The business is also working with several renowned start- of prospects has increased in the areas of specialised and
ups in the area of efficient and remote operation of plants process oriented industrial effluent solutions.
with a potential to provide a significant cost advantage.
These initiatives will go a long way in the transformation of On the international front, the rise in crude prices is driving
the business into a technology driven EPC player more investments in the Middle East and enough prospects

51
Integrated Annual Report 2021-22

Stacker-Reclaimer

are available in water and wastewater businesses. Priority manufacturing centres are in Kansbahal, Odisha and
funding from multilateral agencies for social infrastructure Kancheepuram, Tamil Nadu.
projects are opening new markets for the business in East
Africa. The business is carefully reviewing each of the
prospects in the international space and perusing projects Business Environment
in countries with a stable Government and sound economic
linkages to mitigate any associated risks. Domestic Business
With the revival of economic activity post the disruption
MINERALS & METALS caused by COVID-19, the demand for steel has increased and
a strong recovery in steel production was evident during FY
2021-22. During the latter half of the year, all non-ferrous
metal prices have steadied near their peaks, while steel prices
Overview
continue to rise unabated. Consequently, metal industry cash
L&T’s Minerals & Metals (M&M) business offers complete EPC flow has been robust, resulting in a substantial reduction in
solutions for the Mining, Minerals & Metals sectors across their debt levels.
the globe. The business undertakes end-to-end engineering,
procurement, manufacturing, supply, construction, erection, All the major steel and non-ferrous metal producers are
and commissioning of the projects, covering the complete augmenting their current capacity by way of expansion and
acquisitions, including setting up greenfield projects.
spectrum from mineral processing to finished metals.

The business also offers comprehensive product solutions International Business

like an array of customised Mineral Crushing Equipment and
The Mineral and Metals sector is one of the thrust areas
Plants for varied applications such as surface miners, sand
identified by most of the Middle East countries, as a strategic
manufacturing plants, material handling and high-speed
diversification beyond oil. GCC countries continue to invest
railway equipment, other custom-made critical equipment in their mineral sectors with strategic long-term initiatives to
and complex assemblies catering to core industrial sectors exploit the untapped mineral deposits.
including Mining, Steel, Ports, Fertilisers, Cement and
Chemical Plants, etc. The Kingdom of Saudi Arabia has been a frontrunner in
developing a non-oil economy – led by the mineral sector.
The complete range of our product solutions are backed Incidentally, the mineral sector has been earmarked to
by 5 decades of experience & knowledge, in-house design become the third pillar of the industrial thrust area with
resources, state-of-the-art manufacturing capabilities the establishment of a Mining Fund to provide sustainable
and providing after sales product support, value-added finance for the sector.
and cost-effective services to ensure higher uptime. The

52
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Kakrapar Atomic Power Plant 3

Steel, Aluminium, Copper, Gold, Phosphate and their allied demand for steel has increased the business potential for its
industries are likely to present new EPC opportunities, equipment range covering Surface Miners and Skid-mounted
especially in the KSA, UAE and West Africa. The downstream Coal Crushers, Stacker Reclaimers, Plough Feeders, etc. The
metal industry is becoming an attractive investment thrust on increasing domestic coal production is expected to
destination in UAE and KSA due to low power tariffs and continue and reach 1000+ million tonnes by FY 2025-26.
flexible policies which is included in their Vision 2030 to be
net exporter of value-added products. The current year also witnessed an increased Order Inflow for
apron feeders, stacker reclaimers, coal crushing equipment
The first E&P Project of the business in Egypt is expected to from the above sectors and the momentum is expected to
help set a foothold in Africa. continue in the coming years with promising growth plans of
the mining and steel players.
Product Business
Construction Sector: Growth in infrastructure projects,
The Product Business is the domestic leader for many of backed by a revival in economic activities, drives demand for
its products and is actively pursuing international markets sand plants as well as newly launched, new generation, high-
currently, more particularly in Indonesia, Australia and select capacity aggregate crushing solutions (jaw crushers, cone
countries in Africa for their product range. The core products crushers and vertical shaft impactors).
(such as crushers, surface miners, sand plants, material
handling equipment) growth is primarily driven by movement
in following industrial sectors: Major Achievements

Cement Sector: Major cement producers continued to Orders won:

embark on their expansion plans during FY 2021-22 showing With increased demand and growth in domestic
strong revival in the sector. L&T’s Crushing Systems & Material industrial sectors, the business has received the following
Handling Equipment continued to be the preferred choice prestigious orders:
for Indian cement players. Riding on the current momentum
in the economy, business witnessed large order inflows from • Steel Melt Shop at Tata Steel Kalinganagar
the Cement Sector in the current year and continues to see
• Coke Oven Battery at Tata Steel Kalinganagar
a strong order pipeline in the next year. It is estimated that
the Indian cement industry is likely to add ~80 million tonnes • Dry Circuit System at NMDC Ltd. Kirandul
(MT) capacity by FY 2023-24, riding on the growth in housing • 2 MTPA Pellet Plant at NMDC Ltd. Nagarnar
and infrastructure projects.
• Maintained 100% market share in Cement sector and
Mining & Steel Sector: Continued augmentation of securing a total of 17 order wins in limestone
capacities in coal and iron ore to cater to the growing crushing plants

53
Integrated Annual Report 2021-22

KSM-304C Surface Miner

• Booked orders for 19 Sand Plants from various quarry Significant Initiatives
owners and construction companies across the country
• Implemented Design Automation, AI enabled engineering,
Major projects commissioned: and Data Analytics Solution for continuous improvement
on various processes in its domain area
• Coke Oven Battery, JSW Steel Dolvi • Implemented the specialised software under iMPACT
• Blast Furnace, JSW Steel Dolvi initiative to monitor progress from BOM to Erection
in Piping & Structural with QR code-based progress
• Coke Dry Quenching Project, JSW Steel Dolvi monitoring and materials tracing and tracking
• First stream Commissioned for Steel Melt Shop, JSW Steel Dolvi
Outlook
• New Hot Strip Mill, SAIL, Rourkela
Market sentiments continue to remain positive with strong
• 1.5 MTPA to 2 MTPA Expansion of Alumina refinery at demand, bullish commodity price forecasts in near terms and
UAIL Rayagada metal producers recording unprecedented margins which
• Stacker Reclaimer at JSW Paradip will provide solid impetus towards new capex cycle. This has
strengthened the sentiments of investors and, will lead to a
Other key achievements: robust investment environment in the industry.

With its superior manufacturing capabilities and prowess Similarly, the economic scenario in Gulf countries is following
in design to deliver equipment, the Product BU had the a fresh capex cycle to industrialization, facilitating their
following major commissioning highlights this year: strategic shift away from oil & gas.

• Successfully designed, manufactured, commissioned and load

tested the 1100 MT Straddle Carrier & Transporter Girder and
three of the Straddle Carrier Machines, which are in successful
operation at High-Speed Rail Project Sites at Gujarat
• A total of 8 Surface Miners (including 2 in international
geographies), 11 Sand Plants, 3 Largest Capacity Skid-
mounted Coal crushing plants, apart from multiple
limestone crushing plants commissioned this year

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

New Water Injection South - R Project for ONGC

HYDROCARBON BUSINESS
Overview further improve operational efficiencies and organisational
capabilities to sustain the growth momentum, while continuing
The Hydrocarbon business provides integrated D&B turnkey to maintain operational autonomy.
solutions for the hydrocarbon industry, globally. The business
executes projects for oil & gas extraction and processing, The business caters to clients across the hydrocarbon value-
petroleum refining, chemicals & petrochemicals, fertilisers, chain through following business verticals:
cross-country pipelines & terminals, and has recently launched
asset management as well as services for offshore wind.
Offshore
The business has integrated capabilities across the value Lumpsum Turnkey EPCIC solutions are offered to the
chain, supported by in-house front-end design and detailed global offshore oil & gas industry. The products encompass
engineering, R&D, project management, procurement, wellhead platforms, process platforms, process modules,
modular fabrication facilities, Onshore construction, Offshore subsea pipelines and systems, brownfield developments,
installation, and commissioning. Major fabrication facilities offshore drilling rigs (upgrade and new builds), FPSO
are in India and the Middle East. In India, the engineering, modules, deep-water subsea manifold & structures, living-
procurement & project management centres are at Mumbai, quarters platforms, transportation & installation services,
Vadodara & Chennai. Modular fabrication facilities are at and decommissioning projects.
Hazira (near Surat) and Kattupalli (near Chennai). Overseas
presence is dominantly in the Middle East, i.e., in the UAE, Leveraging its Offshore expertise, the business is carving
KSA & Kuwait and in Algeria. The project management office out a part of the team to focus on the emerging business
with a training facility is in Al Khobar, KSA. The business opportunities in Offshore Wind Farms, which will address
has a state-of-the-art modular fabrication facility at Sohar in renewable energy requirements and balance the portfolio.
Oman, Piping shop at Jubail in KSA and an upcoming Heavy
Wall Pressure Vessel Manufacturing shop at Jubail Industrial The offshore vertical has comprehensive in-house engineering
Zone in KSA. capabilities offering customised ‘Fit for Purpose’ engineering
solutions, covering the complete project life cycle, from
Pursuant to the Scheme of Amalgamation, approved by concept to commissioning, for offshore projects. As a
National Company Law Tribunal (NCLT) on January 28, 2022, vertically integrated EPCIC player, it also has in-house
L&T Hydrocarbon Engineering Limited (LTHE) has become fabrication and offshore installation capability. Marine assets
a division of L&T with effect from April 1, 2021. This comprise a self-propelled heavy-lift-cum-pipe-lay vessel – LTS
amalgamation will enable the Hydrocarbon business to leverage 3000 – held in a joint venture, and a wholly-owned
the superior pre-qualification and financial capability of L&T pipe-lay barge – LTB 300.
for securing large bids. The synergies from amalgamation will

55
Integrated Annual Report 2021-22

One of the Three Gas PDMs installed in Hasbah Field, Two Oil PDMs and Associated Facilities in Zuluf Field, Saudi Arabia
Saudi Arabia
Onshore Modular Fabrication
This business vertical provides EPCC solutions for a wide This vertical specialises in modular fabrication and supply of
range of onshore hydrocarbon projects covering oil & gas offshore & onshore structures and process modules, including
processing, petroleum refining, petrochemicals, fertilisers free-standing static equipment for oil & gas fields, refineries,
(ammonia & urea complexes), thermal systems such as petrochemical plants, and fertiliser plants. Leveraging its
cracking furnaces, cryogenic storage tanks and LNG modular capability, much of the on-site work for mega
regasification terminals, cross-country pipelines & terminals projects – such as Onshore Process Modules (PAU) & Pre-
as well as coal / pet-coke gasification, coal-to-chemicals, assembled Piperacks (PAR) for a Residue upgradation Facility
and crude-to-chemicals projects. The business has a track (RUF) in India, a Gasification plant in Singapore, a Hydrogen
Plant in Netherlands, and a Refinery in Thailand are being
record of concurrent execution of multiple mega projects
executed at its fabrication yards.
successfully both in domestic and international markets, with
diverse technology process licensors. Design engineering World-class modular fabrication facilities are strategically
centers for the Onshore vertical offer the complete spectrum located at Hazira (India’s West coast), Kattupalli (India’s
of FEED, process, and detailed engineering. East coast), Sohar (Oman) and Jubail (KSA). The combined
annual capacity for fabrication is estimated at about
Construction Services 60 million manhours or about 200,000 MT (depending on
the product mix).
This business vertical renders turnkey construction services
for refineries, petrochemical, fertiliser projects, gas-gathering The Piping shop and the proposed Pressure Vessel
stations, cross-country oil & gas pipelines and terminals Manufacturing shop in KSA will mainly cater to the local
including LNG & oil storage tanks and underground cavern market and for developing local skills to support the
storage systems for LPG. Its major capabilities include heavy- IKTVA programme.
lift equipment erection competency, application of advanced
The business is equipped to supply products like windfarm
welding technologies with high levels of automation,
foundations and other modules for offshore windfarm
management of manpower and material in large volumes
projects and e-houses. All-weather waterfront facilities
at construction sites and Quality / HSE systems conforming
provide easy access to clients across the globe and have load-
to international practices. The business has also invested in out jetties suitable for dispatch of large and heavy modules
strategic construction equipment viz., a range of pipeline- via ocean-going vessels and barges.
spread equipment, automatic welding machines and other
plant and machinery for mechanical construction works.
Advanced Value Engineering & Technology
Services (AdVENT)
Leveraging the expertise in high-end engineering and
execution of large-scale, technologically complex EPC projects

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Cracker Furnace Package for HPCL-Mittal Energy Limited (HMEL) at Bathinda

over several decades and collaborating with well-organised Business Environment

R&D centres and renowned institutions, the AdVENT vertical
delivers comprehensive customer-centric solutions for the The FY 2021-22 began with a significant thrust across the
entire value chain of the Hydrocarbon industry. developed world for energy transition from the Fossil Fuels
to Renewables. However, energy transition to limit global
AdVENT’s technical capabilities and agility enable it to warming to well below 2 degree Celsius as agreed in the
offer associated tailored value engineering solutions such 2015 Paris Climate Agreement, has been slower than
as product modular solutions, supporting customers in anticipated due to the evolving nature of the technologies,
re-purposing study of existing assets and adoption to their associated high costs as well as the geo-political risks.
energy transition. AdVENT’s offerings to clients encompass With this backdrop, the oil & gas fraternity engaged with
full spectrum engineering, technology co-development & EPC players for cleaner technologies in the conventional
commercialisation, strategic projects delivery through EPC & areas. With normalcy returning post the COVID-19 pandemic
other contracting models, integrated modular solutions as leading to a surge in demand resulting in hardening of oil
well as emerging technology-driven solutions. prices, traction was seen in the GCC region with Saudi
Arabia leading the way. Therefore, at least in the near future
AdVENT also focusses on technology backed chemical significant investments are likely in oil & gas projects.
industries which are now ramping up the investment in the
chemical sector, reducing dependence on imports. These However, the business witnessed disruptive pricing by new
chemicals are the building blocks of high-value industrial entrants in the domestic market, particularly onshore, which
end products. caused loss of some market share. The business expects the
situation to normalise soon. In the domestic offshore market,
business has retained its strong foothold.
Asset Management
The Asset Management business is a newly formed vertical The business has been able to withstand the challenges and
with a view to diversify revenue streams and deliver highly recorded its highest ever Order Inflow in FY 2021-22 with the
integrated, digitally-enabled value-added services to the oil & Order Book remaining healthy. The Business has successfully
gas industry. completed multiple large projects and outperformed most of
its peers in terms of profitability despite inflationary pressures
These comprehensive asset management solutions extend in commodities.
the organisation’s design, engineering, construction, and
commissioning capabilities to cover operations, maintenance, Major Achievements
performance enhancement and health assessment of
critical assets. Asset Management complements EPC project Orders won:
offerings for mutually beneficial engagement with clients
over the entire lifecycle of assets. • Mega contract from Saudi Aramco for a Gas Compression
Plant for Jafurah Basin Development Programme and laying

57
Integrated Annual Report 2021-22

Onshore Process & Piperack Modules being loaded-out from MFF Hazira for a Refinery in Thailand

343 km gas transport pipelines between Jafurah Gas Plant • Cracker Furnace Package for HPCL-Mittal Energy
and Juaymah Tank Farm Limited (HMEL)
• Mega contract for new facilities and integration with • New 48” Crude Transit Line (TL-5) for Kuwait Oil
existing facilities and significant contracts for expansion Company (KOC)
of a marine terminal and replacement of electrical as • SRT – III Ethylene Cracking Furnace at Panipat Refinery for
well as refurbishment of PDMs from a prestigious client Indian Oil Corporation Limited (IOCL)
in Middle East
• Supply of several onshore modules, skids and static
• Large contract for Pipeline Replacement Project (PRP-VII) equipment for various refineries and petrochemical plants
from Oil & Natural Gas Corporation (ONGC) for installation in India and Algeria
of 350 km subsea pipelines and related offshore works
spread across India’s west coast Significant Initiatives
• Significant contract from Indian Oil Corporation Limited for
The business has placed a significant reliance on processes and
Diesel Hydrotreating Project for its Panipat refinery
on operational excellence, covering productivity improvement
• Significant contract from Petronet LNG for 2 x 170,000 and Advanced Work Packs based Project Management, data
m3 LNG tanks for Phase IIIB of the Dahej Expansion driven decision making, Smart SCM, value engineering, besides
Project, Gujarat robust QHSE processes. In May 2021, when cyclone ‘Tauktae’
• Significant contracts for laying of Mumbai-Nagpur impacted the Arabian sea, all manpower along with marine
Gas Pipeline (24” x 224 km) including construction of assets were safely demobilised from the Mumbai High.
terminals along with associated facilities from GAIL and Further, towards the journey in digital transformation, the
construction of Steam Methane Reformer, Air Separation business has rolled-out multiple initiatives, viz., drone-based
Plant and Pressure Swing Adsorption Units for Jubail progress monitoring and survey, product quality surveillance,
Industrial Gas Network Project from Air Products Middle augmented reality based remote inspection, robotic welding
East Industrial Gases systems for fabrication, electrostatic painting application for
waste minimization and resources monitoring and scaffolding
• Supply of PAU, PAR and Reformer modules for a Hydrogen
management system.
plant in Rotterdam, the Netherlands
As part of Lakshya 2026, the business has identified various
Projects completed: strategic initiatives to boost cost competitiveness and achieve
growth aspirations.
• Development of Cluster 8 Marginal Field in Mumbai High
for ONGC Strategic actions include building partnerships, developing
• 28 Offshore Jackets for Saudi Aramco in Zuluf, Marjan, markets for adjacencies in business offerings, nurturing
Safaniya and Rubiyan Oil fields new businesses like asset management, offshore windfarms

58
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

New 48" Crude Transit Line from North Kuwait to CMM (TL-5) Project for KOC, Kuwait

and modular solutions, driving localisation efforts in key private investment in petrochemical and crude to chemicals
geographies where the business can have a long-term projects in India, which augurs well for the business.
presence and digitally-enabled operational excellence.
India’s existing refining capacity of about 250 MMTPA is
expected to reach 298 MMTPA by 2025 for which Indian
Outlook refiners have plans to invest ¢ 200,000 crore with an
The ongoing geo-political conflict between Russia and emphasis on setting up residue upgradation facilities.
Ukraine is leading to rebalancing of the world economic
preferences. Consequent to the recent geo-political changes, With an expected increase in the demand for petrochemical
the commodity prices which were already on a high, have products, investments in integrated Refinery-Petrochemical
spiralled further, resulting in a high inflationary trend across as well as Oil to Chemical (O2C) / Crude-to-Chemicals (C2C)
global economies. This resulted in sharp increase in the projects are expected to be triggered. The draft LNG policy
Brent and WTI crude oil prices. The US Energy Information announced by the GoI aims to create LNG regasification
Administration (EIA) expects the crude oil price to remain capacity of about 70 MMTPA by 2030 from the current level
higher than USD 100 per barrel. With the rebound in oil of 42.5 MMTPA. Further, Indian Government is planning to
prices and increased focus by the Governments to ensure invest ¢ 70,000 crore to expand the gas pipeline network
energy security, Oil & Gas capex is expected to continue. across the country. The GoI has also set up an ambitious
target to gasify 100 million tonnes of coal into value added
ONGC has planned a capital expenditure of ¢ 29,950 crore products like fertiliser / methanol by 2030 towards the
during the financial year 2022-23. Development of the announced net zero targets by 2070.
Deepwater fields in the East Coast of India will continue,
which will provide opportunities for the business, in addition GoI intends to maximise production of fertilisers like urea,
to the existing products like subsea structures and pipelines. phosphates, and potash, mainly based on indigenous
feedstocks and also decrease import dependency of specialty
With the hardening of global crude prices, the focus will be chemicals like ammonium nitrate and nitric acid to achieve
on the development of small and marginal fields by private self-sufficiency.
players. This will offer Transportation & Installation (T&I)
opportunities in India and Southeast Asia. There are visible opportunities in international markets
for both onshore and offshore projects. The business will
The Government of India (GoI) has planned to spend about selectively target focussed geographies in GCC and Algeria
¢ 750,000 crore in oil and gas infrastructure over five years. and continue to look at product based modular opportunities
State-owned oil companies are planning to spend about in Africa and Iraq. Further, the business is building capabilities
¢ 110,000 crore in the financial year 2022-23. After a gap of to address opportunities arising out of new businesses like
several years, there are strong indications of green shoots in asset management and offshore windfarms.

59
Integrated Annual Report 2021-22

A rendering of the 3D Model for IOCL's 3G Ethanol Project

Aggressive competition and increasing commodity prices The Hydrocarbon segment achieved order inflows of
are expected to continue in the near future. The business is ¢ 30,912 crore, registering robust growth of 74.4% over the
geared up to respond to challenges through selective bidding, previous year with receipt of two large value orders during the
enhanced cost competitiveness and prudent management of year from Saudi Arabia, which led to the share of international
risks. There is an increased thrust on localisation in KSA, UAE orders increasing to 79% from 17% in FY 2020-21.
and Qatar and the business has taken up significant initiatives
to address localisation requirements in KSA, which is the
Order Inflow
biggest market for the hydrocarbon business presently.
Gross Revenue from Operations
� crore
� crore
13.6%
With profit-driven growth at the 74.4%
40000 core, the business continues 25000
to 35000
remain a customer-centric organisation with sustained
30912 of 20000 19265
focus on improved competitiveness to achieve mission
30000 16964
’Execution Par Excellence‘. 6911 36%
25000 15000
47% 8019
20000 17729
Financial Performance
17%
of the Segment24353 79%
10000 9.2%
2994 8.7%
15000
Consequent to L&T Hydrocarbon Engineering Limited being
10000 with 83%
merged the parent
14785entity, the previous year’s figures 5000 53% 8945 12354 64%
have5000
been regrouped, wherever necessary. 6559 21%
0 0
2020-21 2021-22 2020-21 2021-22
Order Inflow International
Domestic
GrossDomestic
Revenue from Operations OPM%
International
� crore
� crore
74.4% 13.6%
40000 The segment revenue at ¢19,265 crore for the year grew
25000
by 13.6% y-o-y, due to pickup in execution momentum,
35000 19265
30912 mainly in the Onshore vertical of the business.
20000 The share of
30000 16964
international revenue in FY 2021-22 was lower at 36% of
6911 36%
25000 the total revenue of
15000 the segment as compared to 47% in the
8019
17729 47%
previous year, with a lower opening international Order Book.
20000 24353 79%
17% 2994 10000 9.2% 8.7%
15000 The segment’s operating margin decreased to 8.7% from 9.2%,
10000 83% 14785 mainly
5000 due53%
to input8945
cost inflation and change in job mix.64%
12354
5000 6559 21%
0 Funds
0 employed by the segment as on March 31, 2022 at
2020-21 2021-22 ¢ 2,167 crore increased
2020-21 substantially over March 2021, mainly
2021-22
Domestic International due to increase Domestic
in contract assets in some large OPM%
International value
onshore projects.

60
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

400 MW Bibiyana South Combined Cycle Power Plant, Bangladesh

POWER BUSINESS
Overview The facility manufactures ultra-supercritical / supercritical
boilers, turbines and generators, pulverisers, axial fans and air
L&T has established itself as one of the leading EPC preheaters, components of FGD and electrostatic precipitators.
players in offering turnkey solutions for both Coal and The business has project management offices at Vadodara,
Gas based power plants encompassing every aspect of Faridabad, Dhaka, and various other project sites.
design, engineering, manufacture, construction, and project
management. In addition to undertaking turnkey projects, it The business has the following JVs within its fold:
also offers equipment and other services for power plants.
L&T-MHI Power Boilers Private Limited, a joint venture
The business has developed its own capabilities for with Mitsubishi Heavy Industries (MHI), Japan – The world’s
executing large and complex power projects, which include leading power equipment maker, for the engineering,
engineering, state-of-the-art manufacturing facilities, designing, manufacturing, erecting and commissioning of
competent manpower and decades of experience earned ultra-supercritical / supercritical boilers up to a single unit of
in executing large and complex projects within and outside 1,000 MW.
India. The business has a proven track record of delivering
complete power plant solutions with scale and sophistication L&T-MHI Power Turbine Generators Private Limited, a
to meet India’s growing energy needs. joint venture with Mitsubishi Heavy Industries (MHI), Japan
and Mitsubishi Electric Corp. (MELCO), for manufacture
The business executes combined cycle and cogeneration of Steam Turbine Generator (STG) equipment of capacity
gas-based power projects on turnkey basis. It has an excellent ranging from 660 MW to 1,000 MW. The Company is
track-record in implementing projects in India and overseas. It engaged in the engineering, design, manufacture, erection
is the first company to execute a project with 'F-technology' and commissioning of ultra-supercritical / supercritical
gas turbine of 250 MW class. turbines and generators.
The business has built on its core competencies and L&T Howden Private Limited, a joint venture with Howden
capabilities and has emerged as a major player in Holdings B.V. L&T Howden, is in the business of regenerative
new emissions control technologies such as Flue Gas air-preheaters and variable pitch axial fans (equipment, after-
Desulphurization (FGD) in the Indian thermal power plant market spares and services) for power plants.
industry. It now has a sizeable presence in the FGD business.
L&T - Sargent & Lundy Private Limited, a joint venture
The business has an integrated manufacturing facility at Hazira, with Sargent & Lundy LLC, USA, which is engaged in the
Gujarat. It is one of the world’s most advanced facilities having business of providing design, engineering, and project
a manufacturing capacity of 5,000 MW per annum. management services for the power sector.

61
Integrated Annual Report 2021-22

Turbine manufacturing facility at Hazira, Gujarat

Business Environment to power plants at a ’reasonably stable price‘, most of the 24

GW of installed / commissioned gas-based projects in India
The Indian power sector is undergoing a significant change remain underutilised.
and that has redefined the industry outlook. Sustained
economic growth continues to drive electricity demand in Though there are challenges in the international markets
India. The Government of India’s focus on attaining ‘Power such as greater focus on renewables, geo-political dynamics
for All’ has accelerated capacity addition in the country. and uncertainty hovering around COVID-19, these markets
At the same time, it is conscious of its goal for substantive still offer specific opportunities, and the business is pursuing
reductions in emissions from the power sector. certain targeted projects with reputed clients and OEMs.

The growth of the thermal power sector remained tepid in

view of the Government’s increasing focus on decarbonisation Major Achievements
of the country’s power generation mix and hampered
Some of the major achievements by the business during the
economic activities owing to the COVID-19 pandemic.
year include:
A panel constituted by the Ministry of Power, to update
• Achieved Completion of Facilities of 2nd Unit of a Central
the National Electricity Policy has suggested in its
Utility Project in Uttar Pradesh where the Supercritical
recommendations that new coal-based units can be
boilers were supplied by the Boiler JV
constructed to replace older units of similar capacities, only
after it is convincingly established that it is not viable to meet • Received Operational Acceptance for Cooling Tower
the projected demand from alternate non-fossil sources. package of 2nd Unit of a Central Utility Project in
Uttar Pradesh
Tenders for FGD Units were delayed and retendered due
• Final Acceptance Certificate received from Client for 225
to increase in input costs resulting in budget constraints
MW CCPP project in Bangladesh
for Power producers. Even during this phase of subdued
tendering, the business won a FGD order of 1,000 MW from • Provisional Acceptance Certificate received from Client for
a prestigious Central Utility. 400 MW CCPP project in Bangladesh. This project has been
conferred the Award of Merit by the prestigious US-based
Though the import and pipeline infrastructure for LNG in publication - Engineering News-Record (ENR)
India has been improving, domestic as well as imported
• Supply of pressure parts by Boiler JV for its maiden order
natural gas continue to be economically unviable for
from the Ministry of Economy, Trade and Industry (METI) of
power generation projects and hence near to mid-term
Japan to a power project in Japan
opportunities remain lackluster. While the Government has
set up a committee last year, to make natural gas available

62
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

2x660 MW Khargone Thermal Power Plant, Madhya Pradesh (India's first ultra-supercritical power plant)

Significant Initiatives expecting to witness an increase in new thermal projects to

be tendered out with an aim to support the smooth transition
While the business is targeting the prospects in Coal towards clean energy, while maintaining the country’s energy
based power plants and FGDs, it is exploring into various security amid rising demand. Several projects are expected to
adjacencies such as Life-cycle Management of STG, efficiency be finalised in the imminent future.
improvement of existing plants, manufacturing of quenchers
and absorbers, co-firing of Biomass, waste to energy etc. to Considering the CEA’s projections of 267 GW thermal
contribute towards a cleaner environment. power capacity by FY 2029-30 and in view of retirals of old,
inefficient, and polluting power plants, addition of new
The business aims actively towards ’Execution par Excellence‘ thermal power capacity is envisaged to continue in the near
to improve competitiveness by continuing the journey of cost- future, positively impacting the business prospects.
saving and on-time project completion. The focus to achieve
QEHS excellence remains of prime importance. It has also It is estimated that the total installed capacity of power
accelerated usage of digital levers to increase efficiency and plants for which FGDs are to be installed is around 167 GW,
productivity of operations. involving 440 FGD units. About 80 GW of FGDs have been
ordered till date. Tendering of balance units is expected to
To expand its international footprint, the business is laying gain momentum in FY 2022-23 if the current deadlines
emphasis on business development activities in select stipulated by MoEFCC are to be adhered.
international geographies like GCC, Southeast Asia and CIS. It
has taken steps to strengthen its presence in such geographies The business is also focusing on international markets for
to capitalise on the opportunities available in this sector. opportunities. The inherent advantages of gas-based power
projects like fuel flexibility and fast ramp up and ramp down
capabilities, make it most suitable for grid balancing along
Outlook with renewable energy projects.
An expanding economy, population, urbanisation, and
industrialisation means that India sees the largest increase L&T-MHI Power Boiler JV and L&T-MHI Power Turbine
in energy demand compared to any other country. With Generator JV are also looking forward to leveraging
the emphasis on clean energy and zero emission targets upcoming spares and service opportunities in the domestic
the business continues to face temporary headwinds in market and will continue to explore business opportunities in
the prospects for thermal power. However, the business is the international market for export orders.

63
Integrated Annual Report 2021-22

Boiler manufacturing facility at Hazira, Gujarat

Financial Performance of the Segment

Order
OrderInflow
Inflow Gross
GrossRevenue
Revenuefrom
fromOperations
Operations
� crore
� crore
� crore
� crore
38.5%
38.5% 39.3%
39.3%
2000
2000 6000
6000

5000
5000 4448
4448
1500
1500 1360
1360 265
265 6%
6%
4000
4000
128
128 9%
9% 3193
3193
982
982
1000
1000 3000
3000 5%
5%
5%
5% 148
148
4949 4183
4183
2000
2000 4.6%
4.6% 94%
94%
1232
1232 91%
91%
500
500 95%
95% 933
933 95%
95%
1000
1000 3045
3045
3.9%
3.9%

00 00
2020-21
2020-21 2021-22
2021-22 2020-21
2020-21 2021-22
2021-22
Domestic
Domestic International
International Domestic
Domestic International
International OPM%
OPM%

The Power segment recorded an Order Inflow of ¢ 1,360 crore The segment’s revenue improved y-o-y by 39.3% to
for the year ending March 31, 2022, registering growth of ¢ 4,448 crore, with a higher execution momentum of
38.5% as compared to the previous year with the receipt of an opening Order Book.
FGD order. Ordering activity has remained subdued during the
The operating margin decreased to 3.9% from 4.6%, mainly
year largely due to deferral of limited thermal power project
due to the mix of jobs under execution.
opportunities and delay in tendering of FGD orders.
The funds employed by the segment at ¢ 2,281 crore as
at March 31, 2022 registered an increase of 12.8% over
the previous year, mainly due to the delay in collection of
retention moneys, coupled with the build-up in contract
assets on account of pick-up in execution momentum.

64
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

WASH Tower for IOCL Paradip

HEAVY ENGINEERING BUSINESS

Overview Converters, PO reactors, VAM reactors and Fired-tube
Waste Heat Boiler packages.
L&T’s Heavy Engineering business is the global leader in meeting
the supply of engineered to order hi-tech equipment needs of • Process Plant Internals (PPI) PBU specialises in proprietary
Refinery, Oil & Gas, Fertiliser, Petrochemicals and Nuclear plants. process plant internals for Reactors and Ammonia
Converter baskets. A large variety of critical internals
The business has been at the forefront of introducing new for advanced refining processes are manufactured using
techniques, products and materials in the manufacturing materials like Stainless Steel, Duplex / Super Duplex
sector for over eight decades. Stainless Steel, Inconel, Monel, Hastelloy, Titanium, etc.
• Modification, Revamp & Upgrade (MRU) PBU offers
The A. M. Naik Heavy Engineering complex at Hazira is value-added end-to-end solutions for FCC revamps, Crude
a globally-benchmarked state-of-the-art fully integrated, Distillation Unit / Vacuum Distillation Unit revamps, Multi-
digitally-enabled manufacturing complex. Its capability shutdown Facility revamps, Urea Reactor Life extension, Coke
spectrum not only covers in-house engineering, R&D Drum repairs, Heat Exchanger revamp, Urea Energy saving
centres, and world class fabrication facilities, but also projects and emergency repairs for the process plant industry.
includes a highly talented team, committed to a safe
and sustainable work culture. The business achieved • Nuclear PBU specialises in key equipment for steam supply
international recognition through an impeccable track systems for nuclear power plants. It manufactures key
record of executing large complex projects and constantly components of the nuclear island like Steam Generators,
creating new international benchmarks. End-Shields, Pressurisers, Safety Heat Exchangers, Reactor
Header Assemblies, Calandria, End Fittings etc. It supplies
The business is organised into following Product Business critical components for Fusion Reactors (ITER), Fast Breeder
Units (PBUs) : Reactor, Handling spent fuel (Casks / Canisters) and critical
equipment for strategic programmes.
• Reactor & Pressure Vessels (RPV) PBU specialises in
• Special Fabrication Unit (SFU) fabricates critical Titanium
fabrication of Hydro-Processing Reactors, Tubular Reactors,
Piping Spools, complex internals for Gasification Plants,
Gasifiers, Ammonia Converters, Urea Reactors, Coke Drums,
Loop Reactor, Primary Quench Exchangers (PQE) for the
Fluid Catalytic Cracking (FCC) Reactor – Regenerator system,
petrochemicals sector.
Oxidation Reactor, Titanium Cladded Equipment, LNG / Gas
Processing Pressure Vessels and Heavy Columns. • The business also has one of the world’s largest Forge
shops, L&T Special Steels and Heavy Forgings Private
• Heat Transfer Equipment (HTE) PBU specialises in
Limited (LTSSHF), a joint venture with Nuclear Power
Acrylic Acid Reactor System, Ammonia & Urea plant
Corporation of India Limited. LTSSHF meets the critical
exchangers, High Pressure Heat Exchangers, Methanol
custom-made heavy forging requirements of sectors like

65
Integrated Annual Report 2021-22

Pertamina RR Package 4

nuclear and hydrocarbon. Its custom-made, high-quality and GCC countries. Increasingly, clients are opting for revamps
products are used across the industrial spectrum. and deferring greenfield investment projects.

Business Environment NPCIL’s biggest expansion of the country’s nuclear power

capacity by building 10 nuclear power reactors in ‘fleet mode’
The global economic recovery faced significant headwinds with an aim to reduce costs and speed up construction
with new variants of COVID-19 and geopolitical situations time is underway. Most of the purchase orders for bulk
causing supply-chain and logistics disruptions and steep procurement of critical equipment such as Steam Generators,
escalation in input costs, which in turn resulted in deferred Pressurisers and Reactor Headers have been placed for the
business opportunities. Overall, the business was successful in construction of the 10 proposed units of the new indigenous
navigating the industry-wide domestic and global challenges 700 MWe Pressurised Heavy Water Reactors (PHWRs).
through organisation excellence initiatives. The business Further, Fleet procurement for this strategic sector is also
succeeded in reaching out to new customers and making expected in next 2 to 3 years and Nuclear PBU is well poised
inroads in new territories like Turkey, Poland, and Uzbekistan. to tap this opportunity.
The business continues to face foreign competition in
domestic projects. To have a level playing field, it is proactively Major Achievements
working through industry associations to influence the In the international market, the business secured
concerned ministries to mitigate the risks associated with the breakthrough orders for the supply of Purified Terephthalic
inconsistencies in the implementation of public procurement Acid Plant Equipment for SASA, Turkey; Ethylene Oxide
under ‘Atmanirbhar Bharat’ and also to ease / simplify certain Reactors for PKN Orlean, Poland and Enter Corp / Fargana
processes applicable under BIS & GST. Refinery, Uzbekistan; LNG equipment for projects in Europe
and Australia, Hydro-Processing Reactors for PEMEX, Mexico
The business has observed a surge in demand for Renewable
and Rodeo Refinery, USA and FCC Reactor Systems for JGC,
Diesel and Bio Diesel plants (which are more eco-friendly).
Japan / Basra, Iraq.
Enforcement of clean fuel standards – Renewable Energy
Directive (RED) II, Renewable Fuel Standard (RFS) & Low The business ensured uninterrupted customer supplies
Carbon Fuel Standard (LCFS) in developed countries, is throughout the pandemic year by dispatching six complex
providing sustainable growth in demand in this sector. Oil to and heavy Tubular Reactors to various customers in China,
Chemicals provide additional growth momentum in the mid six of the World’s Heaviest Coke Drums to Mexico, and five
to long-term in the petrochemical sector (especially in Asia) Reactors & Heavy Vessels for a Green Diesel Project in USA.
and LNG sector (especially in USA & Middle East). On the
domestic front, the Government has approved multiple mega In the domestic market, the business secured breakthrough
projects in the refinery and petrochemicals sector and further orders for an Oxidation Reactor for IOCL Paradip PTA Project,
traction is seen in large scale private projects. securing dominance in the Urea Reactor (10th Urea Reactor in
a row), Titanium Piping Spool for NRL JV Bio Refinery under
The Modification, Revamp, Upgrade (MRU) business, identified Green Initiative arena and Seismic Stopper for 1st High Speed
as a Lakshya growth initiative has taken off well, both in India Rail in India.

66
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

End Shield

The MRU business has seen spectacular growth in FY 2021- The ’Quality at Root‘ initiative was embarked upon by the
22. The business has booked the largest order for a Gas business to reduce the cycle time of manufacturing by
Processing Unit in the Middle East and an FCC revamp order eliminating non-value-added activities. This initiative will
(IOCL Barauni). Moreover, the MRU team has executed the ensure a sustainable ‘First Time Right’ quality culture.
most complex HPCL Revamp Project 10 days ahead of schedule
during the peak of COVID-19’s 2nd wave in April / May 2021. LTSSHF has focussed on upgradation of manufacturing
technology and achieved very low reject rates for Nuclear and
The nuclear business team completed the assembly of the Hydrocarbon sectors.
ITER Cryostat’s (the world’s largest stainless-steel, high-
vacuum pressure chamber) top lid in the site workshop Outlook
in France. This was an important milestone in the global
nuclear fusion arena as well as a moment of pride for FY 2022-23 is expected to provide a growth momentum in view
India. The business also created a new global benchmark of an improved global economic environment. It is expected
in nuclear manufacturing by delivering the four 700 MWe that the investment in renewables projects, petrochemical and
steam generators for the Gorakhpur Haryana Anu Vidyut LNG sectors may continue to see an uptrend. The business
Pariyojana (GHAVP) 1 & 2 project (6 -12 months ahead of expects higher investments in Renewable Fuel / Refining
contractual delivery date despite the COVID-19 pandemic) projects in USA & Southeast Asia, LNG projects in USA & Middle
and dispatched the pair of end-shields for the GHAVP 1&2 East and Fertiliser projects in Australia, USA & Middle East.
project (3 months ahead of schedule).
In the domestic segment, the business expects launch
of new projects in coal gasification, petrochemical, and
Significant Initiatives specialty chemical industries. The MRU business expects
Digital and organisational excellence initiatives accelerated the sustainable increased demand.
journey to be the global best Heavy Engineering company.
In the domestic nuclear projects, the customer is evaluating
Improving competitiveness for products like Renewable Diesel fleet procurement in lumpsum turnkey mode to speed up
Reactor, HP Screw Plug Heat Exchangers and Heavy Columns the implementation process. The projects relying on the
& Vessels has been identified as a major initiative to increase foreign technology program continue to progress at a snail’s
market share. pace. Internationally, nuclear energy is gaining traction
based on the recent focus on net zero emission targets. The
Notable digitalisation initiatives include IoT-enabled Industry decommissioning and decontamination business opportunity
4.0 Smart Stations in welding & overlay operations, Virtual is also picking up momentum due to retiring nuclear power
3D Layout Simulation and Digi-Eye – for real-time project plants in Europe / USA / Japan, etc.
progress monitoring. Digitalisation in office areas includes
automation of design & procurement, supply chain The demand for heavy forgings is largely dependent on the
management and estimation system. outlook of the Nuclear, Defence, Hydrocarbon, Thermal
power, and Hydro power industry segments. In the Defence

67
 Integrated Annual Report 2021-22

Ethylene Oxide Reactor weighing 1157 MT for IOCL’s Paradip Refinery

sector, LTSSHF has been certified as the only indigenous business and Fertiliser & Petrochemicals business. The share
producer of large and heavy forgings and thick plates for of international orders increased to 51% from 35% in the
the prestigious strategic program. The focus of the forgings previous year with receipt of a large value international order
business remains to fill the gap in the country with respect to in the Refinery sector.
manufacturing of critical heavy forgings.
Order Inflow Gross Revenue from Operations
�crore
�The business
crore remains positive in its outlook for order prospects.
However, in view of the recent(9.8%)
geopolitical situation, the 0.7%
5000 4500
commodity price escalations have created cost pressures on the
awarded contracts / tenders in PSU sector due to longer bid to
4000
award exposure. 3574
Digital and organisation excellence
3223 initiatives 3500
3018 3039
will result in higher value creation on a long term basis.
3000 35% 1234 2500
49% 1492 1085 36%
Financial Performance of the Segment
1658 51%
2000 19.7%
1500 19.0%
65% 2340 Order Inflow Gross Revenue from Operations
1000 �crore 51% 1526 64%
�crore 1565 49% 500 0.7% 1954
(9.8%) 4500
5000
0 0
2020-21 2021-22 2020-21 2021-22
4000 3223 3500 Domestic International OPM%
Domestic
3574 International 3018 3039

3000 35% 1234 2500

The segment’s
49%gross1492
revenue of ¢ 3,039 crore remained
1085 steady
36%
1658 51%
compared to the previous year. The share of revenue from
2000 19.7%
international
1500 operations has reduced from 49% to 36% in
19.0%
65% 2340 FY 2021-22 since the previous year had a higher execution of
1000 overseas refinery
51% orders.
1526 64%
1565 49% 500 1954
0 0
The segment’s operating margin declined from 19.7% to
2020-21 2021-22 2020-21
19%, mainly due to 2021-22
reduced export incentives under the
Domestic International revised scheme. Domestic International OPM%

The Heavy Engineering segment recorded an Order Inflow Funds employed by the segment as at March 31, 2022, at
of ¢ 3,223 crore for the year ending March 31, 2022, ¢ 1,584 crore, was lower by 8.9% over the previous year, mainly
attributed to better collections and receipt of GST refunds.
lower by 9.8% as compared to the previous year, mainly
due to deferral of orders in the Nuclear Equipment System

68
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Short Span Bridging System

DEFENCE ENGINEERING BUSINESS

Overview • Aerospace Manufacturing shops for India’s space launch
vehicle subsystems at the Precision Manufacturing &
L&T entered the strategic Defence sector in the mid-80s Systems Complex, Coimbatore
leveraging its precision equipment capabilities. This was well
ahead of the opening up of the sector for private industry • Aerospace and Missile subsystems manufacturing at the
participation in 2001. During the preceding one and a half Centre of Excellence for Advanced Composites
decades, L&T has been associated with the Defence Research at Coimbatore
& Development Organisation (DRDO) and Indian Navy’s • Strategic Electronics Centre at Bengaluru
indigenisation programme.
• Modern shipyard at Kattupalli (near Chennai)
With an offerings portfolio of technologies, products, Besides these dedicated facilities, the business also operates
systems, platforms and solutions, the business provides a facility at Visakhapatnam under the Government Owned
design-to-delivery solutions across chosen defence segments Contractor Operated (GOCO) model. These Work Centres
with a focus on indigenous design, development and are complemented by R&D Centres at Powai and Bengaluru,
production of naval (submarines and warships) and land Design & Engineering Centres for submarines and warships at
platforms (armoured systems, howitzers), weapon systems, Powai and Chennai respectively and a Design & Engineering
engineering systems, missile & space launch vehicle Centre for weapon and engineering equipment at Powai. The
subsystems, sensors, radar systems and avionics. These are business is headquartered at Powai, Mumbai.
complemented by R&D and Design & Engineering Centres for
targeted platforms, systems, and solutions development.
The business is structured into two strategic
The business operations extend across two R&D centres, three business groups (SBGs):
Design & Engineering Centres, and six production centres 1. Defence & Aerospace
across India:
2. Defence Shipbuilding
• Submarine hull-building facility and an armoured systems
manufacturing, integration & testing facility at L&T’s A.M. Defence & Aerospace
Naik Heavy Engineering Complex at Hazira, Gujarat Since its inception, the Defence and Aerospace (D&A)
• Strategic Systems Complex for weapon and engineering business has built a portfolio of wide ranging indigenously
systems and sensors at Talegaon near Pune designed & developed products, systems, solutions,
platforms and technologies through in-house efforts

69
Integrated Annual Report 2021-22

L&T has provided critical subsystems for most of India’s space missions

as well as by teaming up with the DRDO. It has also modular fabrication, construction under covered shops,
participated in the Indian Navy’s indigenisation program for use of a Ship-Lift with dry and wet berths, etc., to enable
the development of a range of naval engineering systems simultaneous construction of different classes of vessels until
and weapon systems within the country. Subsequently, near completion on land, and then launching them on water
L&T Defence built a wide-ranging portfolio of land-based through the Ship-Lift. It is the only Indian shipyard with
weapon and engineering systems for the Indian Army. To Industry 4.0 practices embedded, enhancing construction
date, the SBG has indigenously developed more than 250 efficiency, cycle time and build quality.
defence products out of which more than 50 of them have
been delivered in serial production mode. The business A dedicated Warship Design Centre at Chennai is
model is uniquely differentiated through its focus on in- equipped with the latest integrated 3D design, analysis,
house technology and product development, innovation and Product Lifecycle Management tools, and interfaced
for serial production, mature and equated partnerships with project management and ERP systems, in line with
with global majors and through-life support offerings. global best practices.
These enable the business to maintain its market leadership
position (in the private sector) in an environment where The Kattupalli Shipyard has been largely engaged in new
the Government is aggressively pursuing the indigenisation builds and refits / repairs of defence ships of the Indian
agenda through ‘Atmanirbhar Bharat Abhiyan’. Navy and Indian Coast Guard. Since 2010, the business has
designed and constructed 67 defence vessels and delivered
The business also has a Joint Venture (JV) with MBDA, a them ahead of schedules, these include a floating dock
global leader in missiles and missile systems. The JV is well for the Indian Navy, Interceptor Boats and Offshore Patrol
positioned to indigenously offer advanced missile systems Vessels for the Coast Guard as well as five high speed Border
to the Indian Armed Forces. Guard boats for a friendly nation. The shipyard has also
supplied design and material kits for seven vessels to be built
there to empower that country with indigenous shipbuilding
Defence Shipbuilding
using latest shipbuilding practices and processes. The unique
L&T’s Shipbuilding business offers end-to-end solutions for capability of the business to achieve on-time or ahead of
design, construction of defence ships and refit services. The contractual delivery performance in all the contracts for
business owns and operates a greenfield mega defence defence vessels is a benchmark in the Indian shipbuilding
shipyard at Kattupalli, near Chennai, located across a industry. The shipyard has a track record of delivering
sprawling 980-acre complex. The Kattupalli Shipyard is first-of-class OPV vessels on / ahead of schedule and with
India’s largest shipyard, considering just the first phase design and construction maturity and in-built quality. A
spread across 150 acres that has been operational for global benchmark was attained by the Yard in the sea
nearly a decade. The design and construction of the acceptance trials of a 2,130 MT class offshore patrol vessel
yard is modelled to adapt global best practices, such as by completing the entire acceptance trials in the maiden sea
sortie of the vessel to affirm its design and build quality.

70
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

FDN-2: Floating Dock built for the Indian Navy

While being actively associated with the defence sector, the cost of indigenously developed and manufactured goods and
business has a policy of not manufacturing any explosives solutions and also facilitate exports that can unconditionally
or ammunition of any kind, including cluster munitions be done with the Company’s own IP. Given L&T’s track record
or anti-personnel landmines or nuclear weapons or in R&D, the business would be in a best position to exploit
components for such munitions. The business also does not this initiative and take up development of mega platform
customise any delivery systems for such munitions. projects with large order value potential over coming years.

The concluding part of the year witnessed widescale

Business Environment turbulence across the world on account of geopolitical
challenges. However, the business has built in resilience in
With the Government of India initiating substantive policy its supply chain to address the risks on account of these
reforms since past 3 years and allocating higher budgets for challenges. The 'Atmanirbhar Bharat' initiative of the
indigenous procurement, the macro picture has become more
Government also aids in becoming self-reliant with Indian
positive for the business. The determined push by the GoI
resources and assets for the business.
under ‘Make in India’ initiative and ‘Atmanirbhar vision’ saw
positive traction towards indigenous production by building a
robust acquisition pipeline of potential orders with preferential Major Achievements
categorisation in favour of indigenous acquisition by grant of
During the year, the business has achieved multiple successes
Acceptance of Necessity and accelerating issuance of RFPs. and proud moments, uniquely reaffirming L&T’s positioning
as a ‘nation-builder’ through a series of Make-in-India
The Defence capex budget witnessed a systematic increase
programs. These include:
(~12% y-o-y) in the budget year FY 2022-23 over the
previous financial year and the allocation for procurement • Successful delivery of multiple land and naval weapon
from domestic industry has witnessed an enhancement from launch systems, engineering systems and missile systems to
58% to 68% of the total capital procurement budget the Indian Armed Forces. The 10m Short Span Bridge and
(¢ 71,000 crore in FY 2021-22 to ¢ 84,600 crore in FY 2022- Medium Range Surface to Air System were inducted by the
23). Also, the allocation for acquisition for the private sector Armed Forces in July 2021 and September 2021 respectively
has been enhanced from ¢16,000 crore to ¢ 21,150 crore
• The business was selected as a ’Strategic Partner‘ to
(25% of domestic acquisition allocation). the Indian MoD and received RFP for Construction of
six P-75 (I) Submarines by collaborating with a chosen
A major highlight announced in the Union Budget 2022
Foreign Collaborator
is the opening up of Defence Research & Development
funding to the private sector, start-ups and academia with • The shipbuilding business won the contract for
an earmarked allocation of 25% of the total R&D budget Construction of Multi-Purpose Vessels (MPV) and
(¢1300 crore) for fresh cases. This would help create conclusion of negotiations for Cadet Training Ships (CTS) as
intellectual property (IP) within the country, helping reduce well as Special Pontoon for DRDO, amidst stiff competition

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Integrated Annual Report 2021-22

Offshore Patrol Vessel for Indian Coast Guard

• Supplied 223 Medical Oxygen Generation Plants within 75 Focused digital initiatives that were innovated and
days of having been called upon to cater to the healthcare implemented during the pandemic to overcome associated
requirements during the COVID-19 pandemic challenges were adapted to daily operations and the same
• New benchmarks set up by work centres in terms of serial have been institutionalised to gain higher operational
production of systems and equipment. Noteworthy ones efficiencies. These have also helped in achieving business
include delivering Combat Engineering Systems (bridging continuity and meeting key deadlines, evolution of innovative
systems, air drop platforms), Air Defence Systems, attaining technologies and processes that could adapt to provide
operational efficiencies through innovation in manufacture through life support, training, digital quality assurance, trial
and maintenance of safety in operations across work evaluation and acceptance.
centres aided by digitalisation and automation
• The R&D and Design & Engineering teams continue to Outlook
focus on emerging technologies to develop a range of
products and solutions that are intended to future proof Against the backdrop of recent global events, the
the business. Unmanned systems across four domains reinforcement of the importance of self-reliance in a strategic
(Under Water, Surface Warfare for Navy, Land, Air sector like Defence has increased. This could result in
Domains), Augmented Reality (AR) and Virtual Reality (VR) enhanced spending on the Defence sector. The Government’s
based solutions and offerings are being emphasized to add series of reforms in the Defence sector to enhance
a significant value to the business as a differentiator indigenisation has been given a fillip by the ‘Atmanirbhar
Bharat’ initiative to innovate and build differentiation in what
Significant Initiatives the Armed Forces deploy. The budget allocation for domestic
procurement has been identified by the Government and
Evolving through collaboration, the business has identified is expected to be realised in a time-bound manner through
and signed MoUs / agreements with strategic partners the acquisition of the platforms, systems, and equipment
to enhance business opportunities both in domestic and
as mentioned in the Positive Indigenisation Lists. The recent
international markets. R&D and innovation has been
experiences that have taken place at the country’s borders
the backbone of the defence engineering business since
have catalysed the innovative adaption of existing weapons /
inception, and the business continues to invest in R&D to
develop new-age technologies and products. platforms for high-altitude operations as well as development
of indigenous weapons / platforms to combat adverse
The business has been building a strong position in digital environmental conditions. This has brought a renewed focus
design since the early-90s and has attained proficiency in on expeditious completion of trials of systems and their
Industry 4.0 across its multiple R&D, Design & Engineering accelerated induction into services.
Centres and Production Work Centres that extend from
equipment and systems to the building of complete platforms, The MoD has announced significant reforms at different
such as Warships, Submarines and Armoured Systems. levels as a part of the 'Atmanirbhar Bharat' and 'Make

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Air Defence Fire Control Radar

in India' visions. At the strategic level, the revised Draft The Government has announced several reforms towards
Defence Production & Export Promotion Policy (DPEPP) has commercial exploitation of opportunities in the space sector.
been published and extensively deliberated to incorporate The autonomous promotion and regulatory body, IN-SPACe
specific inputs from industry stakeholders. This policy (Indian National Space Promotion and Authorisation), is
focuses on eight pillars of reforms and embeds the vision working towards handholding and promoting private industry
and roadmap towards achieving significant self-reliance in in the space sector. NSIL (New Space India Limited), a PSU
the Defence sector by FY 2025-26. Over 18 programmes under the DoS, is also striving towards working on areas of
have been identified for acquisition under the ’Make‘ launch vehicles and satellite production as well as services
route of DAP 2020 which focuses on indigenous design, through private consortiums. The Space Policy is under review
development and realisation using Indian resources. The by the GoI. It is designed to create a watershed moment for
development and R&D is expected to take off with the facilitating the role of the private industry and opening up of
formation of SPVs with the DRDO. The MoD also assures the space sector. This policy is expected to be released soon.
grant of a level playing field in naval shipbuilding and
inflation linked escalation on long-term contracts of tenures The business has been a trusted industry partner to India
beyond three years. Contracts worth ¢ 500,000 crore are Space Research Organisation (ISRO) and has contributed to
expected to be placed on the Indian industry within the indigenous capability of the Indian space sector for over five
next five years for the procurement of systems / platforms decades. The reforms announced in the space sector will
covered in the Positive Indigenisation Lists. enable private sector companies – like L&T, which has built,
and enhanced their capabilities over the last few decades
– to take on the complete manufacture and integration of
launch vehicles as well as satellite bus manufacturing and
associated services.

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Tactical Unmanned Aerial Vehicle

Financial Performance
Order of the Segment
Inflow Gross Revenue from Operations
�crore
�crore
Order>100%
Inflow Gross Revenue (5.4%)
from Operations
10000
�crore
�crore
>100% 4500 (5.4%)
10000 8079
8000 64 1% 3410
4500 3226
8079 3500
8000
6000 64 1% 24% 823
3410 419 13%
3500 3226
2500
6000 24% 823 419 13%
4000 8015 99% 22.2% 20.2%
2500
2468 1500 87%
4000 0% 8015 99% 76%
2000 8 22.2%
2587 20.2%
2807
2468
100%0% 2460 1500 87%
500 76%
2000 8 2587 2807
0 0
100%2020-21
2460 2021-22 500 2020-21 2021-22
0 0
Domestic
2020-21 International
2021-22 Domestic
2020-21 International OPM%
2021-22
Domestic International The segment’s grossDomestic
revenue ofInternational OPM%
¢ 3,226 crore declined by
5.4% compared to the previous year with some large value
With receipt of some large value orders in the Shipbuilding jobs in the portfolio viz. K9 Vajra, nearing completion in
business, the Defence Engineering segment has recorded a FY 2020-21. Share of international revenues decreased to
substantial growth by bagging orders worth ¢ 8,079 crore as 13% from 24% in previous year with the tapering of an
compared to ¢ 2,468 crore in the previous year. international order in shipbuilding.

The operating margin declined to 20.2% from 22.2% in the

previous year, since previous year had the benefit of release
of cost savings in some key projects that got completed.

Funds employed by the segment as on March 31, 2022, at

¢ 1,115 crore decreased by 46.6% y-o-y, on account of better
collections on completion of deliveries across some key projects
and receipt of customer advance on large value new orders.

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

LTI Headquarters, Powai, Mumbai

IT & TECHNOLOGY SERVICES

The IT&TS business segment consists of: that enabled corporations to not just keep the lights on, but
also repivot their business models to an online / virtual mode,
a) Larsen & Toubro Infotech Limited and its subsidiaries adapt to changing market dynamics and customer needs and
(LTI): LTI is a global IT Services company positioned at the enable collaboration in a distributed work model.
convergence of digital and physical worlds, with real-world
expertise and client centricity. It was founded in 1997 as During the year, the industry saw USD 30 Bn of incremental
a subsidiary of Larsen & Toubro Limited and got publicly revenues and an overall growth rate of 15.5%, the fastest
listed in 2016. since 2011. All sub-sectors of the industry recorded double-
b) Mindtree Limited and its subsidiaries: Mindtree digit growth.
provides end-to-end IT and Digital solutions for business
The performance of the IT sector was boosted in FY 2021-22
transformation through cloud services, data, intelligence,
by the rapid pace of digitalisation and higher discretionary
and enterprise transformation & automation. L&T acquired
expenditure by enterprises. India continues to be one of
controlling interest in Mindtree in June 2019.
the preferred destinations for setting up Global Capability
c) L&T Technology Services Limited and its subsidiaries Centres (GCCs).
(LTTS): It is a global leader in Engineering & R&D (ER&D)
services. LTTS delivers value through Engineering & India has also emerged as a global hub for digital talent
Technology via its offerings in product engineering, with more than 5 mn tech workers and is the largest
manufacturing engineering, operations engineering and employer within the private sector. The industry’s ’people
engineering consultancy. The business was incorporated in first employee-centric‘ approach saw tech firms quickly
2012 and got publicly listed in 2016. adapt to hybrid work models and scale up capability building
programmes. The industry recorded nearly 10% estimated
The Boards of LTI and Mindtree have approved the scheme of
growth in direct employees in FY 2021-22, with the highest-
merger of the two companies subject to receipt of respective
ever net addition of approximately 450,000 personnel to its
shareholders, creditors and regulatory approvals.
employee base.

Business Environment NASSCOM further reports that the current global

pandemic has accelerated the growth of demand for digital
According to NASSCOM, the Indian IT Technology industry transformation and other software-led business journeys. This
crossed the USD 200 Bn revenue mark in FY 2021-22 to has had a direct, positive impact on offshoring for key R&D
touch a record USD 227 Bn. Technology was the panacea destinations, including India.

75
Integrated Annual Report 2021-22

LTI’s state-of-the-art delivery Center in Johannesburg, South Africa

A sense of heightened immediacy, calling for rapid delivery Cyber Security is a major risk as businesses move to newer
schedules measured in months as opposed to years earlier, areas of engagement such as social, mobile computing and
translates to a growing focus on implementing new-age cloud computing. Hacking, ransomware, social engineering,
customer-centric solutions through robust, data-driven and other cyber-attacks represent ever present threats to
business models. The scenario further got strengthened by data security and system availability. Tighter measures are
a rapid on-ground shift towards vehicle electrification, smart put in place to ensure adherence to set policies and practices.
manufacturing practices, digital products and solutions, state- Cybersecurity assessment from third parties provide enhanced
of-the-art healthcare options, streamlined connectivity, and a confidence in cybersecurity measures. End point security
sustainable approach to business operations. These key trends controls are deployed to ensure levels of security are not
will help shape the global ER&D ecosystem, direct investment compromised while working remotely.
decisions, and define growth plans for the future.
Compliance & Litigation risks are a given when businesses
operate out of multiple regions and specially when the
Risks and Concerns regulations across the globe are changing and evolving
Client relationships are at the core of the IT Services business. constantly. It is imperative to be compliant with these
The businesses enjoy a history of high client retention and requirements, to avoid the possibility of legal liabilities and
continue to derive a significant proportion of revenue from reputational damage. System-based controls are implemented
repeat business built on the successful execution of prior to keep the organisation compliant with the regulations
engagements. This exposes the business to the risk of globally. The businesses also engage consultants across
revenue concentration with top customers. Concentrated the globe who provide support in adhering to statutory
efforts are taken to expand the client base and geographies, requirements and complying with the changing regulations.
to cross-sell and up-sell to incrementally achieve broad-based Similarly, litigation is handled by experienced in-house legal
growth and increase the value-add of deliverables. teams along with external counsels.

Employees remain the prime asset for any technology Foreign Exchange risk is one of the key risks as major
business. It is critical for the organisation to attract and retain revenue is denominated in foreign currency. This risk is
skilled employees and manage the industry wide issue of mitigated by a dynamic hedge management policy and
attrition. The concern is contained with employee friendly strategies that are periodically reviewed in the light of
policies, framework to reward high-potential employees, macroeconomic changes.
innovative programmes for employee engagement, learning
& development plans and career growth options. Such
holistic approaches and interventions are implemented to
limit attrition.

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Mosaic Experience Centre, Powai, Mumbai

Financial Performance of the Segment March 31, 2021, mainly reflecting an increase in volumes
by way of increase in customer receivables and higher
investible surpluses.
Gross Revenue
Revenueand
andEBIDTA%
OPM%
� crore

40000
26.8% L&T INFOTECH
35000 32474
30000
25000
25619 Overview
20000 23.5% 23.6% Larsen & Toubro Infotech (LTI) is a global technology
consulting and digital solutions company helping more than
15000
485 clients to succeed in a converging world. Each day across
10000 33 countries, with workforce of over 46,000, LTI enables
5000 clients to improve the effectiveness of their business and
0 technology operations and deliver value to their customers,
2020-21 2021-22 employees, and shareholders.
Revenue EBIDTA%
OPM%
The business has a strong presence in each of the
OPM = EBIDTA
following verticals:

The segment recorded a gross revenue of ¢ 32,474 crore Banking and Financial Services: LTI offers a full array of
for the year ended March 31, 2022, registering a growth of digital banking services that connects to end customers
26.8% over the previous year, reflecting the improved growth through multiple digital channels. It delivers business value
opportunities in the sector. International revenue constitutes through services, such as data driven transformation, risk
a steady 92% of the total revenue of the segment. and regulatory compliance, digital enablement, innovation
partnerships and NexGen ADMS services across retail
In USD terms, the revenue at USD 4,393 mn for FY 2021-22 banking, payments, trade finance, capital markets,
reported an industry leading growth of 26% over the asset / wealth management, custody and settlements.
previous year.
Insurance: LTI helps insurers solve complex business problems
such as digital adoption, customer experience management,
The OPM% was maintained at the previous year levels
speed-to-market, underwriting profitability, operational
despite increase in employee costs.
efficiency, distribution effectiveness and claims optimisation.
The funds employed by the segment as on March 31, 2022 Its domain expertise spans across the insurance value chain,
including intermediaries, carriers, reinsurers, regulators, and
at ¢ 26,441 crore increased by 12.8% compared to
Independent Software Vendors (ISVs).

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Integrated Annual Report 2021-22

LTI Delivery Centre, Warsaw, Poland

Manufacturing: This sector includes Industrial Hi-Tech, Media and Entertainment: LTI has helped
Manufacturing, Automotive and Aerospace arenas. LTI high tech clients with IT solutions to realise substantial
leverages its rich domain knowledge in industrial machinery synergies from their M&A activities by structured IT portfolio
manufacturing to help Plant Equipment and Industrial rationalization, complex digital integration and digitisation of
Machinery (PEIM) companies spur innovation and reduce core processes.
time-to-market. It provides customized IT solutions for PEIM
companies in key areas, including supply chain management, It further enables media entities to offer superior user
shop-floor-to-top-floor integration, productivity improvement, experiences across platforms and helps them enhance
serialisation and traceability, and production analytics. content creation, distribution, and rights management.
By partnering with LTI, customers can leverage multiple
Energy and Utilities: LTI is at the forefront to help the distribution models effectively for higher monetization of the
traditional energy companies to not only improve operational content. Its proven expertise in new media and strong digital
efficiencies and sustainability but also break away into the technology credentials can help achieve faster time-to-market
newer green energy solutions by providing next generation and establish leaner operations.
Energy Industry IT Services and Solutions across Upstream,
Midstream, Downstream and Renewables. With thorough LTI has offerings across the following service lines:
industry know-how and technology expertise, it has delivered
powerful real-time advanced analytics and decision support • Application Development & Maintenance and Testing
capabilities to several global clients. • Enterprise Solutions

Consumer Packaged Goods (CPG), Retail and Pharma: • Cloud Infrastructure & Security
LTI enables CPG companies to transform their businesses • Analytics, AI & Cognitive
with robust IT services and solutions. By partnering with LTI,
• Enterprise Integration & Mobility
customers can effortlessly launch targeted, omni-channel
offers and promotions for consumers, while streamlining
operations to boost profitability. LTI enables retailers to Major Achievements
streamline operations using technologies such as IIoT and LTI has been ranked 22 among the top 25 most valuable IT
Cloud and derive actionable consumer and business insights services brands in the Brand Finance IT Services 25, 2022
by harnessing advanced analytical tools. ranking. It’s brand value reached USD 1.1 Bn, an exceptional
growth of 83% since 2020.

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Blockchain capability demonstration at Mosaic Experience Centre

Key deal wins Significant Initiatives

a) Selected by a European company providing digital LTI acquired Cuelogic Technologies, a digital engineering
marketing solutions for a global, end-to-end managed and outsourced product development company with over
services deal spanning across the internal IT department. 300 people headquartered in Pune, India. Founded in 2010,
The scope includes business applications maintenance, Cuelogic has built capabilities in digital engineering and
development and support of cloud and data platforms, as primarily focuses on developing cloud native web and mobile
well as end-user services applications, modernisation, and runs an innovation lab as
b) Selected by one of the largest global veterinary care a service for its clients in the USA and India. Cuelogic works
practices and chain of North American pet clinics, a new with enterprise clients on multiple facets of digitalisation such
logo, for a managed services deal involving cyber security as UX Consulting, DevOps, AI Consulting, IoT, Applications
and modernisation of IT infrastructure including migration Modernisation, Cloud Architecture & Integration.
to cloud to gain operational efficiencies and transform
clinic management and support LTI launched its hybrid model of working called Yin-Yang,
embracing a next-generation hybrid workplace where
c) Selected by a Global Fortune 500 financial services
Work from Home and Work from Office will coexist to help
company for an end-to-end managed services
employees benefit from both work environments.
engagement involving transformation, governance and
support for middleware and data as part of their global LTI launched Fosfor, the Data-to-Decisions Product Suite,
technology function
an integrated suite of products across the data-to-decisions
d) A Global Fortune 500 corporation, a leading provider of lifecycle signifying LTI's intensified focus into the multi-billion-
ratings, benchmarks, analytics, and financial data, has dollar AI and data products market. As Fosfor, LTI brings
selected LTI as its primary partner for an engagement together the synergies of erstwhile Mosaic and Leni products
involving data and digital services to integrate its data uncovering unlimited opportunities for enterprises with next-
platforms with its recent acquisition generation AI products.
e) Selected by a Global Fortune 500 consumer goods
company as their strategic partner for data and analytics LTI is now a signatory to the Ten Principles of UN Global
work to transform and gain insights across their most Compact. These principles lay down the operating
critical business functions of manufacturing, supply chain, guidelines for a company to meet their fundamental
marketing, and creation of a metadata hub responsibilities in the areas of human rights, labour,
environment and anti-corruption.
f) Engaged by a key Government body in the public
healthcare space to develop an eco-system and technology
infrastructure providing, storing, and improving access
to relevant public data and supporting public health
insurance programmes

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Integrated Annual Report 2021-22

Mindtree West Campus, Bengaluru

Outlook The consumer-packaged goods, retail and pharma sector is

likely to see continued investments in the data platforms and
FY 2022-23 growth estimates for the technology industry digitalisation initiatives with a focus on resilient supply chains
reflects the optimism of FY 2021-22. According to NASSCOM and consumer experience led by direct-to-consumer strategies.
Tech CEO Survey 2022, 72% of Tech CEOs indicate 2022 tech
spend to be in line with 2021. Most respondents also expect LTI also sees an increasing trend in innovation in the 5G
to maintain or grow their hiring, in line with previous year. space, edge computing driven eco-system of connected
devices and smart products, hardware firms moving to new
The industry has also set a target to touch USD 350 Bn revenues business models and heightened focus on supply chain
by FY 2025-26 with an annual growth rate of 11-14%. resilience. The Media and Entertainment industry continues to
experience the influence of consumer behaviour dynamism,
Digital transformation continues to be a strategic priority
mergers and acquisitions fuelled by competitive intensity and
and key area of focus for Banking and Financial Services
industry reshaping due to technological innovation. The year
firms. Technology investments are across large and medium
has also seen the emergence of the Metaverse which is likely
sized banks and across sub-verticals such as capital markets,
to see increased levels of spendings.
payments, retail banking, wealth management etc. Firms are
investing in improving customer experience by shrinking the
core and building a layer of service-oriented interfaces. This MINDTREE
gives them the agility to launch a new product and offer a
higher degree of straight-through processing.

In the Insurance sector, major initiatives will be focused

Overview
on enhancing online user experiences with an increased Mindtree is a global technology consulting and services
emphasis on hyper-personalisation and data-driven company that enables enterprises across industries to
ecosystems as well as remote distribution networks, drive superior competitive advantage, improve customer
augmented reality and IoT. experiences and create positive business outcomes by
harnessing digital and cloud technologies. A digital
The manufacturing industry is likely to continue to see an transformation partner to more than 270 of the world’s
influx of investment in automation and digital solutions that leading corporations, Mindtree brings extensive domain,
support increased agility and better risk management. Tools technology, and consulting expertise to help reimagine
that capitalise on the use of data will also be a key. business models, accelerate innovation and maximise growth.
As a socially and environmentally responsible business,
The spend on energy transition and sustainability could go up
Mindtree is focused on growth as well as sustainability in
even more in FY 2022-23.
building long-term stakeholder value. Powered by more than
35,000 talented and entrepreneurial professionals across

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Overview Discussion and Analysis Report Reports Statements

Mindtree, Kolkata

24 countries, Mindtree is consistently recognised among the Mindtree helps BFSI customers to modernise their core,
best places to work. reimagine their go-to-market models, adopt cloud, leverage
data and insights, and better engage with their customers
The business enables the customers across diverse industry through insightful analytics, personalised marketing, and
sectors such as banking, capital markets, insurance, tailored experiences. It also enables customers with their
communications, media and entertainment, technology, ESG journeys by creating strategies, providing intelligence
education, retail, consumer packaged goods, manufacturing, services, managing risks, staying compliant, and generating
travel, hospitality, logistics, and healthcare to achieve green alpha.
digital transformation.
Retail, CPG and Manufacturing (RCM)
Communications, Media and Technology (CMT)
Mindtree helps its RCM customers become future-ready
Mindtree partners with CMT customers to help them and get to the market with better predictability and speed.
reimagine their business models, optimise and automate key It enables some of the world’s largest food, beverages,
processes, and fully leverage digital technologies. It enables household and personal care products, sports goods,
Communications Service Providers (CSPs) and Original footwear and apparel, consumer durables, and pharma
Equipment Manufacturers (OEMs) to customise, implement and consumer firms to drive hyper-personalisation in today’s
support their 5G products, IoT platforms, and edge devices. connected world. This is done by harnessing cutting-edge
consumer-data platforms and hyper-analytics and reimagining
The offerings help media firms, broadcasters, publishers, supply chains along with manufacturing processes. It also
gaming developers, advertising agencies, information service helps retail customers deliver cohesive and compelling
providers, professional service firms, and educational institutions omnichannel experiences to their 'GLOCAL' customers.
to digitalise their content and scale their direct-to-consumer
platforms. Mindtree also enables technology software,
hardware, semiconductor, and networking companies to build Travel, Transportation and Hospitality (TTH)
innovative and intuitive products, increasingly offered as a Mindtree partners with leading airlines, hotels, cruise lines,
service with subscription-based pricing. travel service providers, car rental firms, and real estate
companies in their digital transformation initiatives to help
Banking, Financial Services and Insurance (BFSI) them recover from the COVID-19 pandemic and deliver
measurable business outcomes.
Mindtree enables banks, cards and payments networks,
capital markets institutions, property and casualty (P&C) Data analytics and cloud modernisation expertise help
carriers, and life and annuity insurance firms to accelerate customers achieve economic discipline, lean operations, and
digital transformation. digitalisation to drive profitable growth.

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Integrated Annual Report 2021-22

Design Thinking Workshop, Mindtree Digital Pumpkin, New Jersey

Healthcare • Salesforce
Mindtree’s cross-industry experience helps customers across Mindtree is an established premium consulting partner
the health ecosystem including payers, providers, and medical of Salesforce with 17+ years of experience on the
device companies to accelerate growth, deliver superior platform. As a Platinum Partner, it specialises in Salesforce
experience to consumers, clinicians and employees, reduce implementation strategies to drive digital growth through
the cost of care, and run digitally optimised operations. deep client engagement and offers services across the
Mindtree also provides industry-focused platforms, value- Salesforce success value chain – ranging from Strategy
driven engagement constructs, innovation labs, and cohesive Consulting & Solution Design to Implementation and
partnerships built on the foundation of technology and talent. Application Value Maintenance.

Alliances and Partnerships • AWS

To meet the rising demand, globally companies need to Mindtree is an Advanced Consulting Partner in the Amazon
innovate and invest in disruptive technologies to better Partner Network (APN) for Amazon Web Services (AWS).
compete in the market. The technology ecosystem banks Together, they have helped several enterprises to successfully
heavily on integrative solutions, which is why it is important migrate to the cloud.
for technology service providers and innovators to collaborate
to create sustainable solutions. At Mindtree, the idea of • Adobe
collaboration and partnership is to deliver appropriate
Mindtree has been a Platinum-level Adobe Business Partner
technology solutions to new and existing clients which result
for over 3 years. The partnership with Adobe and the domain
in better business outputs and outcomes for them.
experience brings together a full suite of customer experience
Mindtree’s key partner relationships are: transformation services to accelerate its clients’ digital
transformation journey.
• Microsoft
• Google
Mindtree is distinguished with the highest tier of Microsoft
Azure partnerships and is one of the exclusive 70+ Managed Mindtree is a Premier Google Partner for Google Cloud
Service Providers with exclusive access to all levels of Platform (GCP) and offers its customers a complete spectrum
support programmes and solutions. It also collaborates of cloud services.
closely with Microsoft to develop next-generation cloud
The business is also empanelled as a strategic vendor to
solutions for clients.
Google’s ‘Professional Services Organisation’ (PSO) and a
part of the Google Cloud Partner Advantage Program that is
designed to provide Google Cloud customers with qualified

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Immersive Aurora, Mindtree East Campus, Bengaluru

partners that have demonstrated technical proficiency and deployment to client projects. Mindtree Edge, a unique learn-
proven success in specialised solution and service areas. and-earn program for BSc and BCA graduates continues to
progress as planned with a focus on investing in future-ready
• SAP talent.

Mindtree and SAP have been strategic partners for more The Future ways of working (FWoW) program is aimed at
than a decade. Mindtree is currently the only integrated creating flexible, more sustainable workplace and working
service provider in the world with expertise on the SAP model centered on clients and Mindtree minds. The business
HANA platform across all three major public cloud platforms: has devised F-O-R (Flexi, Office or Remote) working model
Amazon Web Services, Microsoft Azure and Google Cloud. which is the core of the FMoW program. As part of ’Work of
Mindtree is also one of a handful of Lighthouse Partners, the Future’ talent strategy, tapping into tier 2 and tier 3 cities
which offer customers SAP’s re-imagined enterprise resource and setting up delivery centres in Coimbatore, Warangal, etc.,
planning solution, SAP S/4HANA via the public cloud. has assisted not only in terms of managing the demand, but
also in managing attrition.

• ServiceNow Mindtree continuously endeavours to automate and digitise

Mindtree is an Elite partner of ServiceNow and was the activities embracing the advantages it carries. It employs
recognised as the 2022 ServiceNow Americas Emerging BOTs for performing various tasks, it has launched ‘Flexor’
an internal platform for bottoms up approach for improving
Service Provider Partner of the Year. Its dedicated ServiceNow
project level margin, a crisis communication system is being
practice has carried out large-scale transformational
developed to send internal alerts and advisories and it is
engagements. In addition to upskilling and reskilling
automating Business Continuity Management tools.
resources across various ServiceNow certification streams
and building competencies beyond ITSM, Mindtree has also
invested heavily in establishing a dedicated ServiceNow Key deal wins
engineering team and centre of excellence, developing a
broad range of custom applications and accelerators to drive Multiple annuity and multi-year large deals have been bagged
function-specific as well as enterprise ServiceNow solutions. across verticals and few of them are given below:

• One of the world’s largest technology companies selected

Significant Initiatives Mindtree as a preferred supplier for product engineering and
cloud professional services to enable it to scale up faster
With the increased demand for digitisation from companies
around the world, the demand for talent having requisite • A large global bank selected Mindtree for a multiyear
skillsets has increased significantly. Campus hiring deal to provide global support to the content and event
programmes and the flagship training program for fresh operations of the marketing function of its asset and
graduate hires have been rejuvenated to accelerate fresher wealth management unit

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Headquartered at Knowledge City, Vadodara, L&T Technology Services Limited (LTTS) is a global leader in Engineering and R&D (ER&D) services.

• A leading US flagship airline signed a multiyear contract mergers and acquisitions will continue to navigate the
with Mindtree. As part of the contract, Mindtree will business towards a more profitable growth path.
support core airline systems, including commercial,
operations and enterprise IT, through business verification
testing services L&T TECHNOLOGY SERVICES
• A leading US based managed healthcare and insurance
company selected Mindtree as a preferred partner for
digital transformation and modernisation work
Overview
L&T Technology Services Limited (LTTS) is a leading global
• A leading European producer of dairy and farming
pure-play Engineering Research and Development (ER&D)
machinery awarded Mindtree a multiyear contract to
services company. It offers consultancy, design, development,
transform, implement, and support digital workplace
and testing services across the product and process
services across the globe
development life cycle.

Outlook LTTS provides services and solutions in the areas of software

and digital engineering, embedded systems, engineering
While the COVID-19 pandemic seems to have caused
analytics and plant engineering. The Company’s customer
unimaginable and significant damage, the unprecedented
base includes 69 Fortune 500 companies and 57 of the
collective policy efforts by Governments and central banks, world’s top ER&D companies, active across multiple segments.
paired with the resilience and innovations of private Its technologists work with global firms to offer smart
enterprises, have helped minimise lasting economic and solutions and services that drive new product development,
physical damage across the world. The pandemic has facilitate remote asset management, and enable virtual
accelerated the pace of digitalisation, with businesses product design and prototyping. With its multi-sectorial
ramping up technology and digital presence. This trend is engineering prowess, LTTS is continually blending and
likely to continue and will aid in chasing newer avenues of integrating ideas and technologies to deliver differentiated
growth led by innovation, while enhancing efficiency. engineering solutions that are uniquely designed to address
complex business challenges.
To support the next phase of growth, Mindtree is making
supply-side more efficient by driving a talent mindset The Company’s innovation and cutting-edge work includes
across the organisation and making talent an integral the world’s first autonomous welding robot, architecting
part of the organisational fabric, thereby strengthening the smartest campus in the world, block chaining real estate
employee value proposition. The targeted global investments assets and solar connectivity drones, among others. The key
across partnerships, large deal solutioning, white space differentiators for LTTS’ business are its value-maximising
opportunities, innovative working and delivery models, Go- customer-centric innovations, deep domain expertise, and a
To-Talent strategy, gaining mindshare from key stakeholders, multi-vertical presence across major industry segments:

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LTTS’ Creative Think Studio showcases design aspects of the product to create delightful customer experiences

Transportation sourcing avenues in the post-pandemic global economy.

With digital manufacturing emerging as a major focus area,
LTTS’ Transportation Engineering Services enable OEMs LTTS is spearheading digital transformation initiatives for
worldwide to develop next-generation vehicles and customers to help unlock the true potential of emergent
aircraft systems, achieve a faster time-to-market, and drive technologies in the Industry 4.0 ecosystem.
innovation across the value chain.

In the Automotive sector, LTTS partners with global customers Telecom & Hi-Tech
through robust and reliable platform and solution offerings
LTTS’ Telecom and Hi-Tech vertical provides engineering
across key emerging areas, including, Electrical Vehicle (EV)
services and solutions across five key domains – Telecom,
technologies, Advanced Driver Assistance Systems (ADAS),
Consumer Electronics, Semiconductors, Independent
and Autonomous Drive (AD) frameworks. It aids customers to
Software Vendors (ISVs), and Media & Entertainment (M&E).
meet and exceed global transport safety protocols, emission
standards, and regulations. For the consumer electronics segment, LTTS provides services
in the areas of product conceptualisation, design and
LTTS’ Aerospace offerings cover the widest spectrum across
development, platform software development, testing and
aero engines, aerostructures and systems, avionics, air traffic
certification, manufacturing support, product maintenance,
management systems, new-age digital transformation
and product launch.
solutions, urban air mobility and defence.
LTTS supports its semiconductor customers with a range of
In Rail Transportation, the offerings include cutting edge
services covering hardware system design, platform software
signalling systems and full RAMS support for systems and
development, modem services, verification and validation,
fleet management.
multimedia, connectivity, and storage.

Industrial Products LTTS partners with leading ISVs to deliver application

engineering, VLSI, cloud engineering, product uplift, platform
LTTS leverages its deep domain expertise in software, development and migration, product support, and testing
electronics, connectivity, mechanical engineering, industrial and certification services.
networking protocols, IIoT, smart industry products, test
frameworks, and enterprise control systems to support global In Media & Entertainment, LTTS provides services across
customers. This translates into a robust presence across product engineering, conceptualisation, design and
building automation, home and office product design, energy development, testing and certification, manufacturing
management, process control and machinery design. support, maintenance, and value engineering. The Company
is pursuing key partnerships with leading participants in the
The Company is also involved in supply chain optimisation emerging OTT (Over The Top) space.
and standardisation to help customers explore alternate

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Integrated Annual Report 2021-22

Electric Vehicle Lab

Plant Engineering Major Achievements

LTTS provides end-to-end solutions across designing, LTTS has had several major deal wins across all verticals.
engineering, project management, handover operations, Large deal bookings touched a new high, led by a marquee
and delivery and maintenance of custom digital solutions. USD 100 million+ deal with Jaunt Air Mobility for an electric
As a leading Engineering, Procurement, and Construction air mobility program, a USD 45 million+ deal win in the EV
Management (EPCM) services specialist, LTTS supports all segment, and several USD 25 million+ engagements.
key stages across a plant’s lifecycle – from conceptualisation
to commissioning. LTTS’ strength in Engineering and Technology is underscored
in the ratings by key industry analysts, including, Zinnov,
The Company’s digital solutions further enable manufacturers Everest, ISG, ARC, IDC and NelsonHall, who have consistently
to upgrade and integrate their legacy systems with smart rated LTTS as a leader across various categories.
platforms to help drive state-of-the-art connectivity and
synergy for transforming business outcomes.
Key deal wins
Medical Devices
Transportation
LTTS helps medical device OEMs worldwide accelerate
• Jaunt Air Mobility (Jaunt) awarded LTTS a multi-year USD
product development cycles, reduce time to market, deliver
100 million+ electric air mobility contract. LTTS will open an
sustained value engineering, and ensure seamless multi-
Engineering and R&D Centre in Québec Province to provide
geography compliant product launches. The Company works
new product development engineering and design services
closely with leading global medical device manufacturers
for the Jaunt Journey eVTOL (electric Vertical Takeoff and
and healthcare providers to offer solutions around remote
Landing) air taxi
medical care, regulatory compliances and approvals, in-vitro
diagnostics, patient mobility solutions, surgical services, home • Strategic Engineering Partner for a US-based automotive Tier
healthcare, and Medical Internet of Things. 1 company, to provide engineering services for its Electric
Vehicle (EV) product portfolio. As part of the programme,
LTTS also provides pre-compliance testing and validation LTTS is setting up an R&D centre in Krakow, Poland
support. It also helps customers with product/compliance
• LTTS was empanelled by a global aircraft manufacturer as a
remediation frameworks, complaint management systems,
strategic supplier for its engineering and digital services for
and regulatory documentation support. LTTS is focusing on
5 years to help drive its next-generation programmes
redefining legacy medical product design methodologies
for ensuring the widest possible compliance with diverse
regulatory regimes across territories and regions.

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Overview Discussion and Analysis Report Reports Statements

At LTTS’ Imaging Lab, engineers develop various Innovative AI-based imaging solutions

Industrial Products • A multi-year plant engineering contract from a leading

global food processing company to provide plant
• Implementing a water and wastewater management
engineering design services for the client’s upcoming
system for the beverage plant of a leading food and
beverage conglomerate. The sustainability-focused facilities in Europe and North America
initiative will reduce water wastage and ensure adherence
to local regulations Significant Initiatives
• A global manufacturer of motion and control LTTS has continued to invest significant time and effort in
technologies selected LTTS as a worldwide strategic strategic initiatives that will propel its technology footprint,
transformation partner to implement and support its IoT engineering infrastructure and human resources, with the
initiatives. This multi-year contract includes developing objective to provide a differentiated experience to
and managing its IoT Condition Monitoring platform and
its customers.
integrating various products
• LTTS released its first Sustainability Report for the year
Telecom and Hi-Tech
2020-21, with a roadmap to achieve carbon and water
• A Hi-Tech 5G client selected LTTS as their strategic partner neutrality by 2030. As part of its commitment to building a
to establish an extended product development centre for sustainable business, LTTS signed the Science Based Target
the adoption of new-age technologies and to accelerate Initiative pledge
time-to-market
• LTTS has been selected as an engineering partner by
• A leading technology company has empanelled LTTS as a Mavenir and NVIDIA, to accelerate the adoption of the
strategic engineering partner for a period of 5 years for its industry’s first converged AI-on-5G. LTTS will support
product and devices portfolio
Mavenir with customisation, integration and deployment of
AI applications on NVIDIA’s AI-on-5G unified platform
Medical Devices
• NeXSens Lab at the LTTS, Bengaluru Campus was
• A leading European Med-Tech company named LTTS as its
engineering provider to offer best in class hardware and inaugurated. The lab will serve LTTS’ global clientele and
software product engineering services and help its ‘build is equipped with state-of-the-art high-precision tools for
care as a service’ business model by smart-enabling catering to all sensorisation requirements
their products • The Company has unveiled eVOLTTS, a first-of-its-kind
EV technology demonstrator platform. It is also focusing
Plant Engineering on delivering state-of-the-art telematics and connectivity
• LTTS has been awarded a multi-year programme from solutions, cutting-edge infotainment systems, powertrain
a European Oil & Gas Company to create digital twins design services, and end-to-end design and development
for all its upstream and downstream assets, to reduce of automotive components
operational costs

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Integrated Annual Report 2021-22

The IoT Innovation Hub in Bengaluru is where IoT solutions come to life – from connected workers to smart fuel dispensers

• LTTS is helping drive private 5G network rollouts for global cross-industry experience, the Company is set to strengthen
organisations to achieve seamless connectivity and unlock its robust growth trajectory by providing a unique proposition
business value. The Company has also unveiled a state- to customers across industries and domains.
of-the-art lab as a service model to address the emerging
requirements of its customers LTTS is built on the twin pillars of engineering and
technology. The Company continues to strengthen this
• Project Rendezvous was initiated within the Company to foundation by leveraging emerging trends that it feels will
implement the learnings of the employee engagement drive relevance in the marketplace for years to come.
survey, EMPulse ’21. The Project Avatar teams helped
restate the Vision, Mission, and Values of LTTS to prepare Last year, LTTS identified a set of key focus areas – the Six
the Company for the journey ahead Big Bets: Electric Autonomous & Connected Vehicles (EACV),
5G, Med-Tech, AI & Digital Products, Digital Manufacturing,
Outlook and Sustainability. Investments have been undertaken across
each of these key technology areas, accelerating LTTS’s core
The Indian ER&D sector, valued at USD 31 Bn in 2019, is
culture of innovation. New alliances are being explored to
well-positioned to harness the favourable conditions and
drive and strengthen this journey, as the Company reaffirms
is projected to be worth over USD 63 Bn by 2025, as per
its commitment to becoming the partner of choice for
NASSCOM. As a pure-play ER&D market leader, LTTS stands
customers, engineering sustainable digital transformation
to benefit from leveraging its set of well-defined offerings.
journeys which would make them competition-proof and
With established credentials as an innovation leader and deep
future-ready.

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Overview Discussion and Analysis Report Reports Statements

Farm Equipment Finance

FINANCIAL SERVICES BUSINESS

Overview Kisan Suvidha Loans. LTFH maintained its leading position with
a stable market share of 15%. The collection efficiency of LTFH
L&T Finance Holdings Ltd. (LTFH) is the holding Company at 94% in March 2022, continues to remain the highest in the
for the financial services business of the Larsen & Toubro industry and has surpassed the pre-COVID-19 levels.
Group. It is one of India’s most diversified NBFCs, having a
strong presence across lending and investment management
Two-wheelers
businesses. LTFH was incorporated in 2008 and in 2011, it
went on to become a public-listed company. Headquartered in Despite the industry de-growth of 11% y-o-y, LTFH
Mumbai, LTFH has a strong network of branches and dealers maintained its leading position with a stable market share
across India catering to the business requirements of a 99 of 11% on the back of extensive use of analytics, capturing
lakh+ customer base across core businesses as given below: higher counter shares amongst dealers, focusing on
financially prudent customers, increasing finance penetration
• Retail Finance (farm equipment finance, two-wheeler to provide sustainable future growth and by providing the
finance, micro loans, consumer loans, home loans, loans best-in-class turnaround time of 45 seconds on loan sanction.
against property and small & medium enterprise loans)
• Wholesale Finance (infrastructure finance and real Micro Loans
estate finance) In FY 2021-22, the Micro Loans business registered healthy
volumes driven by normalised collections and better-than-
• Investment Management
industry asset quality. Strategic initiatives like product-focused
set targets and new product launch helped clock the highest
RETAIL FINANCE
ever quarterly disbursements of ¢3,881 crore. LTFH increased
Retail became the largest lending segment for LTFH in its focus on retaining customers with an excellent repayment
FY 2021-22 with 51% share in the entire loan book. track record with a share of repeat customers at 55% in Q4
Additionally, the collection efficiencies have surpassed the FY 2021-22 through loan products like Vishwas Loans and
pre-COVID-19 levels. Pragati Loans. The Company continued to deepen channel
presence in states like Bihar, Punjab and Karnataka and
Farm increased geographic diversification by addition of a new
While the industry de-grew by 6% y-o-y, LTFH performed state of Rajasthan. Enhanced focus on collections during
relatively well through a focus on preferred dealer and OEM the year backed by data analytics led to collection efficiency
strategy and enhanced focus on customer retention through reaching 99.6% during March 2022.

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Integrated Annual Report 2021-22

Housing Finance

Consumer Loans LTFH’s funded road annuity projects are receiving timely
Consumer Loans is LTFH’s first Digital Native product. It payments from NHAI. Toll collections rebounded in FY
is an entirely digital proposition, with no-touch sourcing 2021-22 from the impact of COVID-19 pandemic influenced
and instant decisioning. The whole process of login to lockdowns in FY 2020-21.
disbursement takes less than 30 minutes, which is the USP of
Consequent to the merger of L&T Infrastructure Finance
the Company in the market. It was launched as part of cross
Company Limited with L&T Finance Limited, RBI has advised
sell strategy to existing two-wheeler customers and recently it
LTFH to take steps to convert the IDF – NBFC business to
made an entry into the Education Loan sector. The Company
an NBFC – Investment and Credit Company (NBFC – ICC).
aims to build a sustainable quality portfolio backed by a
Accordingly, L&T Infra Credit Limited has applied to the
robust underwriting framework and leveraging digital and
Reserve Bank of India (RBI) for conversion to an NBFC – ICC.
analytics which enabled Collection Efficiency in this portfolio
reaching ~99.7% in March 2022.
Real Estate
Home Loans LTFH continued its strategy of focus on tranche disbursements
LTFH focuses on the Home Loan market through its presence to existing projects to ensure construction is not stalled.
in 17 locations across India. A digital lending model coupled The emphasis was laid on rigorous portfolio monitoring
with paperless sanction of home loan to salaried customers, for identification and implementation of corrective action
led to a unique offering that helped in quick turnaround of plan. Continued focus on completion of existing Real Estate
proposals. During the year, the contribution of Home Loans projects which resulted in re-payments / prepayments of over
as a part of total retail housing disbursements has increased ¢ 3,000 crore in FY 2021-22.
from 85% in FY 2020-21 to 96% in FY 2021-22.
INVESTMENT MANAGEMENT
LTFH re-initiated disbursements in Self-Employed Non-
Professional (SENP) and Loan Against Property (LAP) segments LTFH announced the stake sale of its mutual fund business in
with revamped market offerings through Direct Selling December 2021. The transaction is expected to be effected
Agents sourcing towards the latter part of the year. post receipt of regulatory approval.

WHOLESALE FINANCE Business Environment

Infrastructure Finance The Indian economy reverted to growth mode in FY 2021-22
LTFH continues to be one of the leading players in the after a decline in FY 2020-21. Just as the economic revival
infrastructure finance business (with a special focus on was seen in the latter part of first half of FY 2021-22, the
Renewable, Roads and Transmission lines). The Company second half of FY 2021-22 again faced another wave of the
continued concentrating on projects with strong sponsors COVID-19 variant, though the adverse impact was limited.
and off-takers with a proven track record.

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Real Estate Finance

However, private consumption spending, especially in the Significant Initiatives

rural belts continued to stay weak throughout FY 2021-22,
led by an uneven monsoon, weak non-farm employment During FY 2021-22, along with addressing the challenges
generation and unfavourable terms of trade for farmers. posed by the COVID-19 pandemic, the business focused
on retailisation, sustainability of performance with steady
India’s Consumer Price Index (CPI) based inflation averaged at margins, improving asset quality and building a strong
5.5% in FY 2021-22 versus 6.2% in the corresponding period liability franchise. The specific focus for the year was on the
of the previous year. While softening of food prices provided following areas:
some relief, the hardening of crude oil prices presented a
major headwind to the inflation outlook.
A) New Retail products
The Indian financial sector remained fully functional during
FY 2021-22 and anchored the process of economic recovery. LTFH scaled up its first ’Digitally Native‘ Product-Consumer
However, in the last quarter of FY 2021-22, the post- Loans (¢2,254 crore disbursement in FY 2021-22) at a rapid
pandemic recovery of Indian economy was partially affected pace and launched a pilot for a new product - Small and
by the disruption caused by the war in Ukraine and the Medium Enterprise Loans (SME loans) in Q3 FY 2021-22. The
consequent economic sanctions on Russia, which are likely to SME products are aimed at addressing the financing needs of
reduce global growth and push up inflation. the professionals (mainly doctors and chartered accountants)
and specific industries which have shown resilience during
The regulatory environment saw lot of changes with the RBI
successive waves of COVID-19.
issuing multiple guidelines for harmonising policies between
all lending institutions.
B) Proactive Liability Management and
To strengthen supervision over NBFCs, the RBI introduced scale- Diversification of Borrowings
based regulation and revised Non Performing Assets (NPA)
recognition and upgradation norms during October 2021. In FY 2021-22, LTFH leveraged its strong liability franchise
to further reduce its weighted average cost of borrowing
The RBI tightened NBFC asset classification norms by issuing (WAC). This was done through renegotiation of interest rates
guidelines on Income Recognition, Asset Classification on existing borrowings, prepayment of high-cost borrowings
and Provisions (IRACP) .The revised norms prescribed the
and raising of long-term low-cost borrowings such as Priority
classification of Special Mention Account (SMA) and NPA on a
Sector Loans (PSL) as well as Sustainability Linked Loan (SLL).
day-end position basis and upgrade from an NPA to standard
The yearly WAC reduced by 58 bps from 8.08% for FY 2020-
category only after clearance of all outstanding overdues.
21 to 7.50% for FY 2021-22 helping to achieve the lowest
Further, the RBI brought in the Prompt Corrective Action ever yearly WAC.
(PCA) framework, which was aimed at increasing market
discipline among non-bank players and align the regulations The Liquidity Coverage Ratio (LCR) guidelines announced by
at par with those of banks. the RBI came into effect from December 2020. As a prudent

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Integrated Annual Report 2021-22

Infrastructure Finance

practice, LTFH has been maintaining LCR ratios well above the in August 2021, ICRA changed its rating outlook for the
regulatory required ratios. Company to ’AAA/Stable‘ from ’AAA/Negative’.

The Company continued to capitalise on the low interest

rate environment in FY 2021-22 and has been able to Outlook
lock-in long-term low-cost funding. It raised long-term At the end of FY 2021-22, risks to India’s economic growth
borrowing of ¢15,293 crore in FY 2021-22 with an average have shifted from the COVID-19 pandemic to geopolitics,
maturity of 3.22 years. elevated crude oil prices and interest rate hikes by the US
Federal Reserve.
C) Digital Initiatives
While economic growth in FY 2022-23 will be driven by
LTFH launched UPI based payments which amplified the another year of normal monsoons, higher public investment
customer experience alongside easing the collection efforts. and private capex in select pockets supported by the
Government’s PLI scheme, there will be headwinds from the
Major Achievements global economic slowdown and higher commodity prices,
especially oil.
LTFH launched a Direct-to-Consumer (D2C) mobile
application named ‘LTFS Planet’ (Personalised Lending and Bond yields and bank interest rates will rise at a faster pace
Assisted NETworks) to fulfil the objectives of: because of adverse spill overs from the actions of global
central banks, higher market borrowings by the Central and
• Sourcing for onboarding customers directly through State Governments and inflation risks.
lead generation, end-to-end digital workflows, digital
partnerships and e-aggregators LTFH plans to be a top-class, digitally-enabled retail finance
• Increasing upsell and crosssell across businesses, thus company moving from a ‘product-focused’ to a ‘customer-
resulting in enhanced customer engagement focused’ approach, thereby creating a Fintech @ Scale. LTFH
with a CRAR of 23% is well poised to leapfrog into this next
• Digital collections and servicing, thereby reducing
branch/call centre dependency and converting the non- phase of growth through vectors like continued product
mandate customers excellence, cross sell and upsell to existing good customers,
geographical expansion, launch of new products and App &
• Providing insights on customer behaviour based on the Digital-based channel expansion.
deep tech and data analytics
During the year, LTFH’s AAA rating was reaffirmed by all four
rating agencies – CRISIL, ICRA, CARE and India Ratings. Also,

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Overview Discussion and Analysis Report Reports Statements

Micro Loans

Financial Performance of the Segment (NIM) including fee income improved from 6.95% to 7.84%
mainly due to the increase of share of rural portfolio, higher
The Financial Services segment comprises Rural, Infrastructure fee income and reduced cost of borrowings.
and Housing Finance.

Gross
GrossRevenue
Revenue Loan
Loan Book and NIM
NIM ++ Fees%
Fees%
�crore
�crore ��crore
crore
(10.7%)
(10.7%) 98000
98000
20000
20000 94013
94013

15000 6464 92000

92000 7.84
7.84
15000 13404
13404 11971
11971
88341
88341
10000
10000 88000
88000

6.95
6.95
5000
5000 84000
84000

0 0 80000
80000
2020-21
2020-21 2021-22
2021-22 2020-21
2020-21 2021-22
2021-22
Loan Book NIM + Fees%
Loan Book NIM + Fees%

The segment’s revenue declined by 10.7% y-o-y at ¢11,971 The Gross Non-Performing Assets (GNPA) ratio improved to
crore for FY 2021-22 due to targeted reduction in the 3.80% as at March 31, 2022 from 4.97% as at March 31,
wholesale loan book. 2021. Net NPA ratio has increased to 2% as at March 31,
2022 against 1.57% as on March 31, 2021, with one large
With easing of the pandemic and resumption of normalcy value account being classified as NPA during the year.
in economic activity, disbursal of fresh Loans and Advances
The Financial Services business entered into a definitive
grew by 31% y-o-y at ¢37,202 crore for the year ended
agreement with HSBC Asset Management (India) Private
March 31, 2022. The Loan Book stood at ¢88,341 crore
Limited (“HSBC AMC”) to sell its stake in the Asset
as at March 31, 2022 registering a decline of 6% over the Management Company (L&T Investment Management),
previous year, reflecting a cautious lending approach, focus subject to regulatory approvals. Average Assets Under
on collections, portfolio sell down and a phased liquidation Management (AAUM) in the Investment Management
of the de-focused business book. The Net Interest Margins business is at ¢75,592 crore.

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Kudgi Transmission Lines, Karnataka

DEVELOPMENT PROJECTS BUSINESS

The Development Projects segment comprises: The segment recorded revenue of ¢4,368 crore for the year
ended March 31, 2022, higher by 20.6% over the previous
a) Roads and Transmission projects developed through a year. The growth in revenue is mainly on account of higher
joint venture company, L&T Infrastructure Development Plant Load Factor (PLF) in Nabha Power Ltd. (NPL) with pickup
Projects Limited and its subsidiaries and associates (the in power demand in the state of Punjab. Further, the gradual
L&T IDPL Group) increase in ridership of metro services in Hyderabad, aided
the growth in revenue of the segment.
b) The Hyderabad Metro Rail project, executed through a
wholly owned subsidiary, L&T Metro Rail Hyderabad Limited The segment reported an operating profit of ¢100 crore for
c) Power development projects executed through subsidiaries FY 2021-22, lower than ¢194 crore reported in FY 2020-
of L&T Power Development Limited 21. The drop is mainly on account of non-consolidation of
NPL profits with the management’s decision to carry the
Financial Performance of the Segment investment in NPL at realisable value.

The funds employed by the segment as at March 31, 2022 at

Gross Revenue and EBIDTA ¢20,136 crore, lower by 5.9% compared to March 31, 2021
� crore
20.6% mainly due to the divestment of Singoli-Bhatwari Hydro-
6000 Electric Plant.
5000
4368
4000 3621 L&T INFRASTRUCTURE
3000
194 DEVELOPMENT PROJECTS
2000
LIMITED (L&T IDPL)
1000 100
500
0
Overview
2020-21 2021-22
L&T Infrastructure Development Projects Limited (L&T IDPL)
Revenue EBIDTA is a pioneer in the Public-Private-Partnership (PPP) model of
development in India, which involves the development of
infrastructure projects by private sector players in partnership

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Major junction at Sambalpur-Rourkela Tollway Limited

with the Union and State Governments. Since its inception in As FASTag (Electronic Toll Collection) has been made
2001, the Company has developed landmark infrastructure mandatory with effect from 15th February 2021 for all the
projects across key sectors such as roads, bridges, vehicles plying on NHAI roads, Electronic Toll collections as a
transmission lines, ports, renewable energy, and urban proportion of total toll collections is currently over 96%. This
infrastructure. It is one of India's largest road developers as digitalisation has resulted in reduced cash-handling and its
measured by lane kilometres under concession agreements associated costs.
signed with Union and various State Government authorities.
Major Achievements
Currently, its portfolio includes nine roads & bridges projects
of 3,936 lane km developed and operated (one road project L&T IDPL holding company has become a zero-debt
in Gujarat ceased to be subsidiary during FY 2021-22) and a company during the year and has complied with procedural
transmission line from Kudgi to Bidadi in Karnataka covering submissions to NSE in this regard. Consequently, the
490 km. It also manages five operational road assets covering Company has applied to RBI for surrendering the NBFC CIC
2,748 lane km transferred to Indinfravit Trust, an InvIT that registration. The requisite RBI formalities in this regard have
the Company sponsored and launched in May 2018 as the been complied with and the Company is awaiting the final
first privately placed InvIT in India, with substantial holding approval confirming de-registration.
from international pension funds and insurance investors.
During the year, Kudgi Transmission consistently achieved
availability of 99.99%, thereby qualifying it to receive
Over two decades of extensive experience in developing
incentive payments over and above the transmission tariff.
various infrastructure projects and working with
governments, financial institutions, and corporate entities, In March 2022, one of the flagship projects of L&T IDPL,
has helped the Company to develop proven competencies in namely, Vadodara Bharuch Toll Road of 498 lane km reached
Viability Assessment, Financial Closure, Project Management, the end of 15 years of concession period and was later
Operations & Maintenance and Portfolio Management of transferred to NHAI, after settling all outstanding liabilities and
infrastructure assets across various sectors. disputes. The transfer of the project on March 17, 2022, and
the Vesting Certificate was issued by NHAI within 16 minutes
Business Environment of transfer of project, which was the fastest in NHAI’s history.
The operations have been fairly normal during the year,
barring the impact of the second wave of COVID-19 and Significant Initiatives
the farmer’s agitation in the National Capital Region and the
surrounding areas, which lasted till mid-December 2021. The dedicated mobile app for O&M of the roads and power
In order to mitigate the impact of the pandemic, the Union transmission line business launched by the Company was
and State Government authorities have granted an extension integrated with ERP and ArcGIS Online (ESRI, a map-based
of the concession period of such affected projects. server), and has successfully run without disruption. The mobile
app’s salient features include capturing GPS coordinates,

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Integrated Annual Report 2021-22

The Hyderabad Metro adds efficiency to city mobility

working off-line, capturing A / V and pictures, various under the National Infrastructure Pipeline, by monetising its
measurement readings, preventive and corrective maintenance assets under the Toll-Operate-Transfer (TOT) model and in
and optimising consumption of spares for asset repairs. FY 2022-23, the Ministry plans to raise about ¢20,000 crore
through such monetisation which augurs well for the business.
As a part of process automation, the Company developed
an intuitive Highway Management System christened as
’iHAMS‘. This is yet another industry-first innovation that L&T METRO RAIL (HYDERABAD)
is transforming the way assets are managed under O&M.
This solution is an AI / ML-based video-analytics application LIMITED
which detects damaged / missing assets without any human
intervention by using dashcams installed in Route Patrolling
Vehicles. The system was successfully piloted at one SPV and Overview
will be implemented at the other SPVs. Also, the system is
being improved for better usage and is being planned to be L&T Metro Rail (Hyderabad) Limited (L&TMRHL) is a special
integrated with SAP S4 HANA ERP in FY 2022-23. purpose vehicle created to undertake the business of
constructing, operating and maintaining the Metro Rail
The Company has also pursued innovative accident reduction System including Transit Oriented Development (TOD) in
measures including adopting of Behavioural Science approach Hyderabad under the Public Private Partnership model on
solutions, which aims at studying driver behaviour and design Design, Build, Finance, Operate and Transfer (DBFOT) basis.
solutions to bring about behavioural changes. This has
been successfully implemented at one of its SPVs which has The Metro Rail system consists of three elevated corridors
resulted in reduction in accidents / fatalities and hence it will from Miyapur to L.B. Nagar, Jubilee Bus Station to Mahatma
be rolled out in other projects as well. Gandhi Bus Station and Nagole to Raidurg, in aggregate
covering a route length of 69.2 km. This network got fully
commissioned in February 2020. The remaining concession
Outlook period is approximately 25 years, extendable for a further
In the Union Budget FY 2022-23, the total expenditure by period of 25 years by the Company subject to fulfilment of
the Ministry of Road Transport and Highways is estimated at certain conditions as set out in the Concession Agreement
being 52% higher than the revised estimates for FY 2021-22. signed with the Government of Telangana.
In FY 2022-23, it is expected to complete a road length of
around 2500 km as part of the Bharatmala project. The Concession Agreement also includes rights for real estate
development in the form of Transit Oriented Development
The National Highway Network will be expanded by 25000 km (TOD) for 18.5 Mn. sq.ft., of which 1.28 Mn. sq.ft. consisting
and development of hill roads will be taken up in PPP mode of 4 malls and an 0.5 Mn. sq.ft. of office block have
under the ’Parwatmala‘ scheme. The Ministry expects to raise commenced commercial operations.
¢86,182 crore during the next three years to fund projects

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Overview Discussion and Analysis Report Reports Statements

Hyderabad Metro, Going the distance – connecting destinations

Business Environment 8.35 MWp) at a very competitive price. This will cater to
about 10% of the energy requirement of Metro trains
The fiscal year started with the onset of second wave of
COVID-19. The State Government imposed a partial lockdown
Significant Initiatives
to control the spread of the virus and allowed metro services
to operate for restricted hours. Normal operations resumed • To boost the ridership, L&TMRHL has undertaken a few
from Q2 onwards and gathered momentum on the back of a initiatives like increasing service hours in the morning from
vaccination drive and with many small & mid-size IT companies November 2021 and introducing a special fare product
starting a ’return to office‘ policy and opening of schools and (Suvarna 2.0 offer) from October 2021
colleges / universities. However, average ridership remained • The signalling software has been upgraded in all the three
below pre-covid levels mainly due to large IT companies corridors for enhancing the maximum operating speed
continuing to adopt WFH strategy and a general precaution from 70 km/h to 80 km/h, leading to a reduction in the
exercised by the local population to avoid / minimise the use of travel time on Corridors 1 and 3 respectively
public modes of transport.
• Another initiative recently launched by L&TMRHL is the
Contracts for various advertisement media including Super Saver Card targeted towards enhancing ridership on
advertisements inside trains, apart from various physical holidays (Sundays, public holidays, etc.)
media like piers, portals, etc., were added during FY 2021-22. • Considering developments in mobility, L&TMRHL has tied
In addition, new media viz. audio advertisements in trains and up with partners to setup Electric Vehicle charging points at
stations were launched in FY 2021-22. different metro stations. A total of 55 charging points are
available across Hyderabad Metro stations
Major Achievements
Outlook
• L&TMRHL completed the refinancing of the entire term
loan availed from the consortium of banks with a mix of With the COVID-19 pandemic waning, it is expected
non-convertible debentures and commercial papers that that the daily commute in Hyderabad across the various
will help reduce interest expenses and improve profitability modes of transport shall be around 9 million, up from 5
• The business was successful in adding many new tenants million in FY 2021-22. The upcoming transport scenario
in its retail malls portfolio. Discussions are also underway shall be influenced by minimum social distancing, IT / ITES
for the launch of a new income source viz. offering rights sector working from office, school and colleges reopening
to television channels to broadcast their exclusive content completely, increased travel by senior citizens and reduced
on trains private transport due to increased road congestion.
Considering the above, L&TMRHL by virtue of providing
• L&TMRHL has tied-up with a solar power developer for safe, clean, comfortable, and punctual travel along with
generating captive solar power (planned capacity of about various value-added initiatives (robust and affordable last

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Integrated Annual Report 2021-22

2x700 MW Supercritical Technology based Thermal Power Plant at Rajpura

mile connectivity, contactless travel, etc.) aimed at minimising which commenced its commercial operation from January
commuters’ pain points, targets a higher ridership on the 2021, was sold to ReNew Power on August 30, 2021. This
Metro Rail System in FY 2022-23. transaction is in line with the Company’s strategy to pursue
the divestment path for all non-core assets in its portfolio.
Measures like collaborations with various feeder services for
first and last mile connectivity are being taken to strengthen
fare revenue. In addition, new Non-Fare Revenue initiatives Nabha Power Limited (NPL)
viz. training, fibre leasing, mobile towers, etc., can add to
revenues for L&TMRHL.
Overview
A new business model of upfronting revenues from Transit NPL owns and operates a 2 X 700 MW supercritical thermal
Oriented Development is being worked on with all the power plant at Rajpura, Punjab. The entire power generated
stakeholders involved. These monetisation activities are likely from this plant is sold to Punjab State Power Corporation
to get a major impetus in FY 2022-23. Limited (PSPCL) under a 25-year Power Purchase Agreement
(PPA) which is effective till 2039.
Hyderabad Metro Rail is seen as an environment friendly,
safe, clean, and sustainable mode of transport with best
The plant sources its fuel from South-Eastern Coalfields Ltd.
practices adopted by L&TMRHL. With Government planning
(SECL) and Northern Coalfields Ltd. (NCL), subsidiaries of
to implement Phase II of the Metro project, it will significantly
Coal India Limited, under a 20-year Fuel Supply Agreement
enhance the average ridership of the metro network in the
(FSA). The FSAs are for a total annual contracted quantity
medium to long term.
of 52.4 lakh MT. The Company has also secured approvals
to arrange coal from alternate sources to make up for any
L&T POWER DEVELOPMENT shortfall in supply of coal under the FSA. The Bhakra-Nangal
distributary is the perennial source of water for the plant
GROUP under an allocation by the State Government. The plant is
operated by an in-house team of experienced operations and
L&T Power Development Limited, a wholly-owned subsidiary maintenance professionals.
of L&T, is engaged in developing, operating and maintaining
power generation assets. The portfolio currently comprises a The power plant is running successfully for over eight years
single project in the thermal sector viz. Nabha Power Limited with an average availability of over 85%. The plant has been
which owns and operates a 2 X 700 MW supercritical thermal the most reliable source of power for the State of Punjab and
power plant at Rajpura, Punjab. has supported its requirements with uninterrupted supply
during peak seasons. NPL also happens to be the lowest
During the year, the Company’s stake in the 3 X 33 MW (99 cost coal-based power producer within Punjab with best
MW) Singoli-Bhatwari Hydro-Electric Plant in Uttarakhand, operational efficiency.

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Overview Discussion and Analysis Report Reports Statements

2x700 MW Supercritical Technology based Thermal Power Plant at Rajpura

Business Environment Outlook

India’s average electricity demand has gone up by 7.85% in In FY 2022-23, the demand in Punjab is expected to remain
FY 2021-22 (y-o-y) as the economy rebounded post easing of around ~8,000 MW (Peak 15,000 MW) and as a result, NPL is
COVID-19 restrictions. The electricity demand in Punjab picked expected to schedule a high PLF of ~82% and remain at the
up during the year and the average demand has been higher top of the merit order among the thermal power producer
by 7.5% (7,205 MW) compared to last year (6,705 MW). within the state.
Punjab witnessed a net capacity addition of 113 MW during FY
2021-22, all of which was contributed by renewable sources. The increase in per capita energy consumption continues
to promise robust long-term demand. However, domestic
The annual Plant Load Factor (PLF) of NPL stood at 79%, the fuel supply and transportation challenges continue to linger
highest in the operational history of NPL and also achieved 20% and coal prices are likely to remain elevated due to various
higher PLF than the national average for FY 2021-22. Out of geopolitical issues.
the total power demand of Punjab state, 15% was met by NPL.
The GoI appointed Commission for Air Quality Management
A drop in coal production due to the extended monsoons and (CAQM) has directed power plants within 300 kms of Delhi-
an increase in imported coal prices, led to severe shortage in NCR region to co-fire up to 5 -10% biomass, to address the
coal supplies. NPL made every possible effort to secure coal concern of stubble burning.
from various CIL subsidiaries and signed FSA with Northern
Coalfields Limited (NCL) for transfer of coal linkage from SECL. The Company continuously faces operation and fuel related
risks such as fuel quality, fuel availability, supply chain logistics
and regulatory risks such as environmental compliances,
Major Achievements clearances, and Government policies. The Company has
• Zero Lost Time Injury (12.08 million cumulative safe implemented multiple measures in each of the risk areas to
working man-hours) ensure a proactive approach and timely mitigation.
• Highest continuous operating station days achieved: 126 NPL expects to commission a Flue Gas De-sulphurisation (FGD)
days (Previous best 119 days)
system in FY 2022-23, which is a mandatory requirement
• Sustained Operational Performance – Annual PLF: 79% v/s under the environmental norms notified by GoI.
all India thermal average: 59%
Major focus areas for NPL during FY 2022-23 would be HSE
• Ensured domestic coal adequacy for FY 2021-22
compliance, maximising plant availability, commissioning
• Capital Overhaul (COH) of Unit 2 completed successfully of FGD, resolution of long pending litigations, improving
• Significant collection of receivables from PSPCL in a operational efficiency, securing adequate coal quality and
disputed matter pursuant to favourable order from Hon’ble quantity, cost management and digitalisation initiatives.
Supreme Court

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Crescent Bay, Mumbai

Others
'Others ' business comprises: ¢6,093 crore to ¢6,282 crore in FY 2021-22. The growth
was in the Realty business on higher handover of flats and
a) Realty Business improved demand in Construction Equipment and Rubber
b) Industrial Machinery, Products & Others comprising of Processing Machinery business. Supply chain disruptions and
Construction & Mining Equipment, Rubber Processing extended conversion cycles impacted the Valves business
Machinery and Industrial Valves whereas completion of projects and lower execution
momentum in the new jobs impacted revenues of Smart
c) Smart World & Communication
World & Communication business.
d) Digital Business
The operating margin declined over the previous year since
Financial Performance of the Segment FY 2020-21 included a non-recurring gain on sale of a
Revenue for the segment registered a growth of 3.1% from commercial property in the Realty business.

The funds employed by the segment as at March 31, 2022

Gross Revenue and OPM% at ¢8,074 crore increased by 5.5% compared to
� crore
3.1% March 31, 2021 largely attributed to inventory build-up of
8000 under construction property in the Realty business.
6093 6282
6000
1785
1441 REALTY BUSINESS
4000 3522
21.0% L&T Realty is positioned amongst the top real estate
17.4% developers in India, with development potential of
3134
2000 ~ 60 Mn. sq. ft. across residential, commercial, and retail
segments in Mumbai, Bengaluru, NCR and Chennai. The
1174 1319
0 business model includes development in partnership with
2020-21 2021-22 land / development rights owners, and sale / leasing of
Realty Industrial Machinery & Others commercial spaces.
SWC & Digital OPM%

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Overview Discussion and Analysis Report Reports Statements

Seawoods Grand Central, Navi Mumbai

Residential Segment 6. Centrona, Mumbai

Centrona is a gated community situated in Ghatkopar and
1. Emerald Isle, Mumbai has functional residences with unmatched comforts and
This flagship residential project in Powai spread over 90 conveniences. The location boasts of being within easy
acres and developed in phases. A new phase named reach of the city’s most iconic locales, providing easy access
Veridian was launched during the year. Regarded as the
to every corner of the city. With world-class amenities, it is
finest gated community, the project today has a lively
perfect for people who want to spend more time with their
community of over 1,000+ resident families.
loved ones.
2. Elixir Reserve, Mumbai
7. Raintree Boulevard, Bengaluru
Elixir Reserve is a premium residential project in Powai that
is enveloped in a picturesque setting. This project is replete Conceptualised on the live-work-play theme, Raintree
with state-of-the-art amenities, including an ICSE school, Boulevard is a 65-acre mixed-use project located in the
office towers and retail spaces within walking distance. high-growth micro-market of Hebbal. Situated just 20 mins
away from the airport, the project offers fine-living and
3. Crescent Bay, Mumbai best-in-class amenities. L&T Tech park and a large format
With the Arabian Sea as the backdrop – Crescent Bay is a mall are within walking distance from the project. 1,000+
residential complex at Parel with the perfect setting for an happy families are already residing at the project. Launched
exclusive lifestyle. The highlight of the development is a sky
in phases, Olivia at Raintree Boulevard is a luxury offering
deck and other lifestyle amenities on level 21. The project is
launched during the year.
complete and occupied by 1,100+ families.
4. Seawoods Residences, Navi Mumbai Commercial Segment
Part of India’s first Transit-Oriented Mixed-Use
Development, Seawoods Development is spread across 1. Seawoods Grand Central, Navi Mumbai
over 40 acres. Seawoods Residences offers unmatched India’s first Transit-Oriented Development (TOD),
connectivity and is surrounded by breath-taking views. It’s Seawoods Grand Central offers 2.6 Mn. sq. ft. of
a successful project, sold out on launch. More phases are Grade A development with a unique combination of
expected to be launched soon. commercial and retail business spaces.
5. Rejuve 360, Mumbai 2. Technology Centres, Mumbai
Designed on the wellness thought, this residential complex Designed to provide superior workspaces, it is a part of
is focused on the rejuvenation of mind, body, and soul. a larger integrated development promoting the ‘walk
Conveniently located in Mulund west, Mumbai Rejuve 360 to work’ concept. It is one of the coveted corporate
has sustained its position among premium developments in addresses in Powai, Mumbai with proximity to excellent
the micro-market. social infrastructure. Much of this development is already
completed and some has been effectively divested.

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Artist's Impression

Elixir Reserve, Mumbai

3. Technology Park, Bengaluru The regulatory changes / reforms over past few years in the
Located in the rapidly growing micro market of Hebbal, the realty sector have created an environment of transparency
project has the potential for development of commercial and reinforced customer confidence, leading to improved
office spaces of 3.1 Mn. sq. ft., which is being taken up in housing ownership.
phases. With unmatched connectivity and well-designed
In the backdrop of improved mobility and rapid vaccination
spaces, it is set to become the most favoured address for drives, employment generation picked up pace in the
many technology companies. organised sector, led largely by hiring in the IT / ITES and BFSI
4. L&T Innovation Campus, Chennai sectors. As a result, office leasing activities in India picked up
Coming up on a 40-acre plot in the IT hub of Chennai, pace in last quarter, registering a healthy growth.
the 6.5 Mn sq. ft. L&T Innovation Campus project will be
Revival in the real estate space has attracted foreign investors
developed in phases. It will bring together world-class leading to a sizeable inflow of foreign funds into commercial
innovation business / IT hub, and an eclectic mix of leisure spaces in recent months.
and lifestyle amenities, with a lush central parkland at its
core. The development offers the convenience of Walk- This change, coupled with customers preference for
To-Work. corporate brands offers a unique opportunity for L&T's
realty business. The complete recovery of the commercial
segment
Business Environment is however, expected to take a longer time due to
Post pandemic, the residential sector has shown significant multiple factors.
uptake across all top cities, supported by multiple factors
such as lower interest rates, better affordability and positive
Major Achievements
outlook of the economy, resulting in liquidation of existing
inventory levels. • Launched a premium project ‘Elixir Reserve’ in Powai
• Successful launch of ‘Veridian’, a new phase in the flagship
Select initiatives by the Maharashtra State Government, Powai development
particularly lower stamp duty on residential property
• Launched a new phase ‘Olivia’ as part of a large maiden
registrations and 50% concession on development premiums
township in Bengaluru. The project commands a premium
were of great support to the real estate sector.
in the micro market
The continuously rising input cost of basic raw materials • As the workplace merges with the home, sale of large size
like cement, steel and other construction raw materials are units gained momentum. Traction was seen in large format
current challenges facing the sector. premium units in Crescent Bay, Parel, placing the business
amongst the most sold projects in the premium South
Mumbai market

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

24” Class 600 Butterfly Valves. Large quantities supplied ahead of time for refinery expansion project

Outlook to serve key sectors such as oil and gas, defence, nuclear
& aerospace, power, petrochemicals, chemicals, water, and
The real estate sector in India is expected to reach USD 1 trillion pharmaceuticals across the globe. LTVL manufactures a wide
in market size by 2030 and contribute 13% to the country's range of products such as Gate, Globe, Check, Ball, Butterfly,
GDP by 2025. Plug valves and automation solutions. L&T Valves also runs a
global after-market business to support its installed base with
The demand for residential properties will continue to surge
service and spares needs.
due to increased urbanisation and rising household incomes.
India is among the top 10 price-appreciating housing markets L&T Valves are designed by specialists with deep
internationally. understanding of various industry requirements, standards
and practices, using state-of-the-art design and analysis
Homebuyers’ preferences for bigger homes, large, gated
software. The Company has a series of successful innovations
communities, better amenities, and attractive pricing will
to its credit, including mission-critical solutions for defence
sustain the demand for premium housing.
and aerospace industries.
Retail inflation has an adverse effect on the disposable
The business has a global manufacturing presence with
income of consumers, possibly posing a concern over
two manufacturing facilities in Tamil Nadu, India which are
consumer sentiments for the near future. However,
equipped with state-of-the-art 5-axis machining centres, CNC
supportive measures from the Government, RBI and
machines and facilities for critical testing and two facilities in
the resultant pick-up in end-user demand will keep the
USA and Saudi Arabia. LTVL products deliver safety, reliability,
momentum going.
and quality for industries across the world.
Environment, sustainability, and governance are expected
to be a path to progress in the Indian real estate industry. Business Environment
Transparency and stakeholder interaction are now becoming
increasingly important. Such growing awareness places The business landscape of FY 2021-22 started with the
developers like L&T Realty in a favourable position. COVID-19 impact in the first quarter and resumed normalcy
by the second quarter. Raw material price increases, supply
chain hurdles and high logistics cost dominated the global
L&T VALVES LIMITED macro-economic scenario.

The recovery of oil consumption across the globe and pent-up

Overview demand revived the pace of capital expenditure and opened
up the market for industrial valves. Planned maintenance
L&T Valves (LTVL) is a leader in flow-control solutions. The by customers deferred from previous period offered
business leverages sixty years of manufacturing excellence opportunities to the business. The valves market remains

103
Integrated Annual Report 2021-22

Nickel Aluminium Bronze Valves for applications Cryogenic Ball Valves for Liquefied Natural Gas

highly fragmented with the presence of large players as well Major Product developments:
as SMEs. These local players are very price competitive, in
turn affecting the price margins of the entire industry. In line with changing market requirements in areas of safety,
emission standards in energy, the business made following
The industry is seeing a shift towards sustainable product developments:
products leading to the creation of a strong demand for
Industrial Valves. • Hull ventilation flap valves for submarine service
• Globe control valves in F92 material for start-up vent
services in power plants
Major Achievements
• Bellow seals gate valves for nuclear power and
Orders received: sodium service
The major orders include supplies to: • Soft-seated gate and check valves
• Large-size butterfly valves for refineries
• Aramco Marjan Project Order from Cunado Spain
• Berri Project Order from Saipem Approval / Certifications:
• 48’’ Rich and Lean Gas Project from Gulfar The business made significant efforts to improve its approvals
• Aramco Marjan Package I Order from Mcdermott and certifications and gained fresh approvals in the following
areas to enhance its market area and customer base.
Major Product achievements:
• API Spec Q1 & API 600, API 594, API 6D, API 609,
During the year, the business through its technical expertise API 603 Monogram Certification for Coimbatore &
customised the products and met customers' requirements: Kancheepuram facility

• Metal seated trunnion mounted ball valves for high • Safety Integrity level (SIL) Certification – Gate, Ball, TMBV,
temperature service TOBFV & Globe by TUV Nord & Exida

• Large size triple offset butterfly valves • Customer Audits by Air Products, Man Energy Solutions,
Kuwait National Petroleum, Saudi Aramco, GE power,
• Gate and check valves with Inconel 625 overlay for SASO, NTPC, Black & Veatch, Vogt Power, Thermax,
sour service Chiyoda Corporation & NAMC, etc.
• Triple offset butterfly valves for cryogenic service
• High pressure flex wedge and parallel slide gate valves in
F92 material for power industry
• Welded body buried service ball valves for city gas projects

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Triple-offset Butterfly Valves for Refineries and Large-size high pressure valve for Hydrogen project Applications
Process Applications

Significant Initiatives The market remains highly fragmented with intensified

competition rising from the changing market dynamics. Raw
• Robust internal quality standards enabled the Company material and logistics costs remain as major challenges for
to become the first Indian manufacturer to comply to the the Company in the FY 2022-23. But with improved on time
stringent specifications of The International Association of delivery and quality products supported by a good mix of
Oil & Gas Producers (IOGP) direct and distribution customers, the Company is confident
• Efforts towards foundry vendor base rationalisation (from of improving its Order Book.
57 foundries to 29 foundries) leading to better buying
costs and terms, better supply quality and reliability The business has also taken stock of advancements in
renewables and energy sector in general. The Company
• Initiative to vertically integrate machine shop to foundry (six is actively engaged in challenging assignments to create
suppliers) improved supply chain visibility and performance new products for the arising needs in clean energy and
as well as reduced the lead time for execution significantly other associated sectors. The diverse portfolio in terms
• The Company prioritised the spending on improving the of geography and industries, continuous new product
infrastructure by constructing a central kitting store and development, range extension is expected to be an
continuing to do shopfloor layout modifications to improve advantage for the business in the years to come.
the lean flow of material
With streamlined product basket building, initiatives
• The Company secured the Authorised Economic Operator on geographical expansion, resilient supply chain,
(Tier 2) certification from the Government of India, Ministry digitalisation and a strengthened aftermarket team would
of Finance, Central Board of Indirect Taxes and Customs, help the business gain market share and build a strong
which is a key step to enhancing the logistics speed and Order Book in the coming year and deliver highest level of
customer satisfaction customer satisfaction.
• Focus on automation of repetitive business processes by
adapting RPA&AI / ML technologies has enabled substantial The business with major linkages to the fortunes of the oil
improvement in productivity and reducing overheads & gas segment plans to increase their focus on growing
segments such as Water, LNG, Hydrogen and in other
cryogenic application segments which are expected to grow
Outlook in the coming year as it has suitable products available for
Crude oil prices, capacity additions, geopolitical scenarios, the mentioned segments. Cryogenics and Water sector is
liquidity, project capex spending and GDP trends in the expected to witness considerable growth in the coming years
relevant geographies continue to be the key demand drivers enabling positive outlook for valves business.
impacting order prospects.

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Integrated Annual Report 2021-22

Komatsu PC300-8 Hydraulic Excavator with Breaker attachment

With COVID-19 behind, revival of the oil prices, stable division completed 75 years of business during FY 2021-22
customer enquiries, buoyancy in the non-oil sectors like and celebrated the same through the release of a corporate
water, pharma, power, and focussed actions taken by LTVL, stamp, among other initiatives.
the outlook of the business remains positive.
LTCEL, located in Doddaballapura, near Bengaluru,
manufactures vibratory compactors, wheel loaders, hydraulic
CONSTRUCTION excavators, asphalt paver finishers, pneumatic tyred rollers,
skid steer loaders, hydraulic power packs, cylinders, pumps
EQUIPMENT & OTHERS and other components. During the year, LTCEL played
a significant role in the process of development and
manufacture of the girder transporter and straddle carrier for
Overview the Mumbai-Ahmedabad High-Speed Rail project.
The Construction Equipment & Others (CE&O) business
includes the manufacture and marketing of construction The RPM division, located in Kancheepuram near Chennai,
equipment, mining equipment and equipment for tyre is engaged in building machines and tyre automation
manufacturing industry, broadly segregated into Construction systems for the global tyre industry. RPM established as
& Mining Machinery (CMM) and Rubber Processing a JV in 1972 for manufacturing tyre curing presses and
Machinery (RPM). became a fully-owned business unit of L&T in 1995. The
manufacturing facility located in Kancheepuram, India
The CMM division is engaged in the business of distribution caters to the machinery requirements of the tyre industry
and after-sales service for hydraulic excavators and dump and has supplied equipment to tyre majors in over 46
trucks manufactured by Komatsu India Private Limited (KIPL) countries across the globe. The division also supports certain
and other mining and construction equipment manufactured customers in the tyre industry with ‘build to print’ products
by Komatsu worldwide. It also handles the distribution and and customised machinery development as well. RPM
after-sales support for a range of construction equipment business is also celebrating a significant milestone in
including wheel loaders, compactors and hydraulic excavators FY 2022-23 with its 50th anniversary.
manufactured by L&T Construction Equipment Limited
(LTCEL) and Mining Tipper Trucks manufactured by Scania The Product Development Centre (PDC), based at
India. In addition, the division handles distribution and Coimbatore, with its highly-skilled design team, renders
after-sales support for the mining equipment manufactured engineering and product development support for CMM and
by L&T’s Minerals & Metals SBG viz. surface miners, sand RPM businesses.
plants, crushing solutions and apron feeders. The CMM

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Overview Discussion and Analysis Report Reports Statements

L&T 1190 Soil Compactor

Business Environment The first half of the year witnessed good recovery for the
tyre industry with pick-up in economic activity and demand
Construction & Mining Machinery Business (CMM) for vehicles. However, due to the effect of the Omicron-led
3rd wave, passenger car tyre demand remained muted for
Investment in the construction and mining sectors is one of the second half of the year. Marginal growth was seen in
the key demand drivers of the CMM business. the truck and bus market in Europe and North America.
The growing infrastructure activities in both developed and
During the year, highway construction activity increased
developing countries, combined with increased agricultural
as compared to the previous year as the overall contract
and mining activities, has been providing a boost to the tyre
awarding activity improved in this period. However, elections
sales in select segments.
in five states resulted in subdued growth in Q4.
The Indian tyre industry reached a turnover of about
The demand for mining / material handling equipment also
USD 7.8 Bn in 2021. The tyre demand has witnessed an
improved on the basis of higher production of coal, iron-ore
overall healthy recovery of 19% - 20% in the last 9 months.
and other non-ferrous metals.
The recovery has been supported by a robust growth in the
The market size for premium excavators grew by 9% in FY after-market replacement segment as well as the OEM tyre
2021-22 with L&T / KIPL’s market share increasing to 31% segment that has grown in the backdrop of higher vehicle
from 30% in the previous year. The market demand for sales. Also, the recovery in the domestic demand and growth
wheel loaders and vibratory compactors remained stable at in exports has resulted in overall better capacity utilisation
about 6,000 with L&T / LTCEL maintaining its market share at for the overall industry. Nevertheless, the Indian tyre industry
12% in FY 2021-22. is facing significant headwinds in the form of a sharp rise in
raw material prices, particularly for natural rubber and crude-
However, the demand opportunities for construction and linked imports such as synthetic rubber, carbon black, and
mining equipment to some extent, got constrained due to other inputs.
stiff competition from domestic and Chinese equipment
manufacturers. FY 2021-22 witnessed significant investments from the
tyre majors both in domestic segment and international
segment, especially in the Americas. The tyre manufacturers
Rubber Processing Machinery Business (RPM) are mostly operating at their peak capacity and looking at
The demand for the rubber processing machinery expansion opportunities. The Truck & Bus, Agri and Off-the-
manufactured by this division depends on the capital Road segment continue to remain profitable and a focus
investments by the tyre majors, which is in turn linked to area for the tyre makers due to increased agricultural, mining
the growth forecast for the Automobile, Agricultural and and construction activity. The investments in 2-wheeler and
Mining sectors. passenger car segments were only incremental.

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Komatsu HD785-7 Dump Trucks

Major Achievements migrate them to a new engine platform conforming to CEV

IV emission norms and meet the new safety regulations
Construction & Mining Machinery Business (CMM) • PDC along with LTCEL developed various attachments
during the year such as Rock Splitter, Bottom Dump
• Won the largest single order ever in this year for supply
Attachment for L&T 300i, Clam Shell, Mass Excavation
of mining equipment with a maintenance contract for a
Bucket and Super Long Front for the 100T Class excavators
period of 10 years
• PDC along with RPM worked on several new development
• Supplied 7000th PC71 and 2000th PC210-10M0 hydraulic
excavators from KIPL and 1500th L&T vibratory compactor and improvement projects related to Tyre Curing Presses
from LTCEL and Tyre Building Machine (TBM) for supply to some of the
marquee customers of RPM. It is noteworthy to mention
• Highest ever dump truck sales of 135+ machines in a year that PDC was also awarded 2 patents related to the RPM
• Commissioned L&T’s largest skid plant (3 x 1500 TPH) in business in this year
Ambey Mine, Rajmahal Coal Mines
Significant Initiatives
Rubber Processing Machinery Business (RPM)
• Received a breakthrough order for the supply of first ever Construction & Mining Machinery Business (CMM)
passenger car hydraulic tyre curing presses to USA • Suraksha 10000 plus programme launched to cover
• Received the largest order from a Japanese tyre PC210-10M0 excavator by extending the warranty service
manufacturer for their green field project in India coverage to 5 years / 12,500 hours
• LTRPM received the US patent for the design of • Inauguration of KOWA (Komatsu Oil Wear Analysis)
Mould-height adjustment for its new generation lab in Nagpur for oil analysis to help in ascertaining the
hydraulic curing press machine condition
• Successfully engineered and executed Truck Bus Radial • Both KIPL and L&T extended the warranty period by 2
(TBR) Presses – Side Frame type – 3rd Generation Press months on the equipment supplied in view of the low
with about 7.5% weight reduction in structures. The press utilisation of machines during the COVID-19 period
offers unique features of energy efficiency with savings of
• Launched L&T Genuine Lubricants along with Gulf Oil for
30% in steam consumption over earlier type of presses
LTCEL equipment
• Reduced floor time for Truck Bus Radial (TBR) & Passenger
• Introduction of KGO (Komatsu Genuine Oil) lube dedicated
Car Radial (PCR) presses by 40% thereby increasing
van for promotion of genuine oils from Komatsu to expand
assembly throughput
sales and market share
Product Development Centre (PDC) • Introduction of new variant of PC205 20T hydraulic excavator
to cater to general construction and hiring segment
• PDC along with LTCEL worked on certain construction
equipment and road machinery of LTCEL to successfully

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Passenger Car Floor Mounted Hydraulic Tyre Curing Press Smart Kiosk installed at Pimpri-Chinchwad

• Introduction of PC500 50T hydraulic excavator for use by large irrigation projects and coal OB (Overburden
private coal OB (Overburden removal) contractors removal) contractors.

Rubber Processing Machinery Business (RPM) Rubber Processing Machinery Business (RPM)
• Evolved 19 design projects through ‘Technology The global tyre demand is likely to be robust and tyre companies
Centre Initiatives’ and implemented 9 initiatives for are poised for investments in select segments. The global tyre
design improvements market size is estimated to be worth USD 146 Bn in 2022 and
• Created vendor fabrication facility adjacent to the plant, to is forecast to a readjusted size of USD 192 Bn by 2028 with a
cater to 150 MT / Month of fabrication load to address the CAGR of 4.7% during this period. The domestic tyre market
shortfall of in-house capacity is expected to be very buoyant especially in sectors like Agri,
• Successfully implemented modular assembly and testing Mining and Truck & Bus. As per ICRA, the Indian automobile
sales volume is expected to grow by 5-9% y-o-y in FY 2022-23.
methodology for TBR presses
• Successfully developed supplier base for machining of heavy Electric car sales will be a growth pole for the industry, with
structures like top / bottom structures, side frames, guide new electric products coming to market. Also, electric vehicles
columns, lock ring etc. to meet the increased business are expected to see strong adoption in the coming years, with
requirements in Hydraulic Tyre Curing Press (HTCP) segment 2-wheelers and 3-wheelers leading the way.

Outlook The business has an added advantage as compared to the

European competitors, due to its wide product range across all
Construction & Mining Machinery Business (CMM) segments and being a market leader in machinery for Off-the-
Road in Agri and Mining sectors which will aid the growth in
With the Government’s thrust on investment in infrastructure coming years.
construction activity expected to pick up pace during the
coming year, the construction equipment market is expected
to grow by 17%. SMART WORLD &
Government initiatives in infrastructure development in roads, COMMUNICATION
railways, irrigation, ports, urban and rural infrastructure,
affordable housing, etc., are expected to drive demand
in the cement and metal sectors, which in turn will boost Overview
demand for excavators, dump trucks, dozers and other road
construction and mining equipment. With ~65% of demand The global adoption of technology for smarter, secure,
for mining equipment coming from coal PSUs, business is intelligent solutions, efficiency improvement and
planning to target selective tenders along with Komatsu. optimisation are not only having a profound impact on
Business plans to strengthen its position in the premium how technology is being used in our daily lives but also has
segment by increasing its focus on large contractors, opened a multitude of business opportunities.

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Integrated Command Control Centre, Jhansi

The Smart World & Communication business unit has been Cloud Security, LTE, Virtualised Network Technologies, 4G /
leveraging the latest technological innovations in Utilities, 5G, TETRA.
Communication, Cybersecurity and IoT areas to benefit
society at large. The business provides end-to-end solutions / Military Communication – Systems and solutions for
services in the system development of Smart Cities, NextGen Satcom and Ground stations, Radio communication System
Communication & Military Communication. (HF VHF & UHF), Tactical Communication Systems, Software
Defined Radios, Electronic Warfare Systems, Vessel Traffic and
The business over the years has gathered prolific experience Coastal Surveillance System.
as a leading systems integrator (MSI) through roll out of
domain centric projects, developing 25+ Safe & Smart Cities, Business Environment
providing digital connectivity to 13 states, integrating more
than 1.25 lakh IoT Devices, 30+ Data Centers and various The opportunity landscape was affected by the 2nd and 3rd
defence communication projects. wave of the COVID-19 pandemic. Diversion of Government
spends resulted in the decline of the addressable market. The
Leveraging the experience garnered across years, the business progress of certain projects was also impacted as the work-
has embarked on a transformational journey of establishing front clearances were delayed due to the restrictions imposed
itself as a Global Smart Solutions & Services Leader for Smart on account of COVID-19.
Cities and in NextGen Communication technologies.
Overall, the progress under the Smart City Mission has been
L&T's Smart World & Communication business has always uneven due to administrative delays and financial constraints
endeavoured to keep pace with the ongoing advancements with many city corporations / agencies.
in the technology landscape with a diversified team of 700+
skilled professionals, the business is continuously keeping Citizen’s safety continued to be a Government priority and
abreast with technology trends like Cloud Computing, IoT City Surveillance and Intelligent Transit Management System
(Internet of Things), AI, Mobility, Drone Technology, LEO (ITMS) projects saw movement in few cities like Bengaluru,
Satellites, 5G, Cyber security etc. The business operates in 3 Chennai, Delhi, etc.
major segments:
Defence and Space technology got higher budgetary
Safe & Smart Infrastructure – Systems and solutions for allocations, paving the way for opportunities for Military
Safe Cities, Smart Cities, Public Safety, Critical Infra Security, Communications but faced with slow roll outs.
Traffic Management Solutions, Integrated Command Control
Centres, Advanced Metering Solutions and Smart Utilities. The BharatNet and Smart Meter programmes saw various
deliberations in the operational modality and policies rollout
Communication & Telecom Infrastructure – Systems leading to delay in implementation.
and solutions for Network Design, Engineering & Rollouts,
Network Migration & Upgradation, NextGen Data Centers, The business is moving up the technology value chain
Private Cloud, Cyber Security with focus on IT / OT Security, with a focus on solution / services-based domain centric

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Smart Signalling System at Raipur Smart Pole at Vishakapatnam

opportunities for more profitable and sustainable pipeline • The Communications segment successfully launched the
in the focus domains. in-house developed Network Management System that can
effectively monitor the IT and Non-IT Infra simultaneously
Major Achievements in a project
• The business has signed transfer of technology with Centre
Despite challenges posed by COVID-19 on the market
for Development of Advanced Computing (CDAC) for Cyber
opportunities, the business was able to secure multiple critical
Security- DLM using blockchain and Centre for Artificial
jobs such as:
Intelligence & Robotics (CAIR) DRDO for Secured Handset
• Patna Smart City - Integrated Command and Control
Center (ICCC Smart City Platform) and implementation of Projects commissioned:
city surveillance, ITMS and smart solutions and analytics • Successful soft launch of Moradabad Smart City Project
• Moradabad Smart City for creation of Command-and- Integrated Command Control Centre ahead of schedule
Control Centre (CCC), CCTV Surveillance, Smart Traffic • Commissioning of 9.3 meter Earth Satellite Antenna
Solution, and Integration of various ICT components System for Integrated Test Range for DRDO
• Ahmedabad Safe City Project - Integrated Command • Cyberabad & Rachakonda ITMS for Cyberabad &
& Control Center, City Surveillance System and Video Rachakonda Commissionerate
Analytics solutions for citizen safety
• Telecom system for R2 section of Bengaluru Metro
• Integrated Mobile Shelters for Armed Forces for flagged off
Advanced Systems Laboratory of DRDO
• Facility Acceptance test for Jharkhand Statewide Area
• Breakthrough orders in areas of solutions / services and Network Project successfully completed
from private sector with solutions order received from
Telangana, orders in Operational Technology and Cyber
security from industrial segments, order for setting up of Outlook
Security Operation Centre, etc Rapid urbanisation is driving the use of technology to solve
• The business also successfully demonstrated its capability in complex city problems globally. Smart Cities expansion to
the 5G domain with the successful deployment of use case remaining Tier 2 & Tier 3 cities is expected. Public Safety (City
leveraging IoT, Video AI riding on 5G network in the areas Surveillance) and better commute experience (ITMS) in cities
of public safety and smart & connected health are being prioritised by the Government. The Smart Meter
National Program in India aims to connect Smart Meters
• Additionally, the business also carried out the proof of at 250 Mn households by 2025. Similar to the Advanced
concept for private Long Term Evolution at L&T’s A M Naik Metering for Energy utilities, opportunities pertaining to IoT
Heavy Engineering Complex Hazira in Surat solutions for Water Utilities is also expected to gain traction

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L&T EduTech - Building Value for Learners, Academia and Industry

in the coming financial year. Under the Jal Jeevan Mission, The latest Spacecom policy has opened doors for private
sensor-based IoT devices play a crucial role in providing safe companies to participate in the domain. Growing application
quality of water and restrict pilferage. of Satellites for Surveillance, Defence & Remote connectivity
through Satellite broadband (LEO / MEO sats.) has opened up
The rising security concerns and emergency service are new avenues in the space domain for ground stations.
leveraging the perimeter security and quick response system
against any external threat, thus giving a boost to the The Smart World & Communication business with its
perimeter security market for Government and private sector experience and expertise is well positioned to ride on the
establishments such as ports, seaports, defence, industries, wave of digitalisation and digital connectivity and convert the
factories etc. prospects to project wins.
The BharatNet program to provide digital connectivity to
gram panchayats across the country has been targeted for Digital Businesses
completion by 2025.
‘Others’ also includes the new age businesses incubated by the
Special initiatives for Data Center & Cloud Modernisation and Company. These ventures are a part of L&T’s plan to leverage
IT Refresh are being implemented by Government and Private digital technologies in some of its core domains in order to
sector. The growing penetration of digital models across a future-proof them and tap future growth opportunities.
wide range of businesses offers a massive opportunity in this
Data Centre & Cloud ecosystem.
L&T EduTech
Driven by the need for high-speed and secured wireless
network, the private LTE market size is experiencing an Technology has led to massive disruption in the education
accelerated adoption across industries and in an industry. World-class education is now available online and is
exponential year on year market growth, creating expected to complement the physical classroom learning. Hybrid
opportunities for the business in the areas of adoption of / blended learning is here to stay and has made education
private LTE across industries. equitable, accessible and affordable.

The Cyber Security market continues to provide exceptional L&T, with its rich experience in engineering, is well placed to
opportunities for solution providers. With the increasing develop industry led, application-oriented content, bridging
threats and IT & OT convergence Cyber Security solutions the industry-academia gap. L&T’s courses are developed based
have received a push in the Private as well as Government on its inherent expertise and strengths in core engineering,
sectors. 5G is critical to cater to the future needs of manufacturing, technology and its efforts in digitalisation, and
digitalisation and for developing digital solutions for not just an aggregation of the existing resources.
businesses across the globe, which will create opportunities
for efficiency enhancements and new revenue streams. 5G L&T EduTech is a business formed to offer EdTech products and
spectrum allocation is expected to be fast-tracked and the solutions to educational institutions, skilling bodies, working
rollouts are expected to be implemented in the near future.

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L&T SuFin, India's first business platform for industrial and construction products, integrated with finance and logistics options.

professionals, students, and learners across segments using experience with SMEs and with the products, provides an
a technology intensive user-friendly platform. The business opportunity to create trust between buyers and sellers on the
commercially launched on October 15, 2021 intends to further platform. Leveraging its strong brand salience, understanding of
fine-tune the product over time. The offerings include technical the products and leadership position, L&T is well placed to enter
courses for colleges covering a wide stream of subjects like and service the B2B e-commerce segment.
Civil, Mechanical, Electrical & Electronics, IT, Chemical, etc. It
also offers Vocational & Skilling programmes for increasing L&T SuFin is a B2B industrial products ecosystem which has been
employability and Upskilling and Assessments for evaluating as is commercially launched in March 2022, providing a platform
skills for measuring employability and for competency mapping. for SME / MSME buyers and sellers to connect in an efficient
manner, thereby enabling sellers to expand their sales reach,
There are four broad categories in EdTech Industry and out of and for buyers to find the right products and services at an
the four segments, L&T has decided to enter Higher Education optimal cost and quality. The business platform offers a wide
and Professional skilling. To address the issue of equity, access product range in industrial supplies & consumables, building
and opportunity, University Grants Commission has recently & construction materials, electrical & electronics equipment,
doubled the academic credit limit for online courses to 40%, machinery tools & mechanical equipment and packaging,
which positively supports the business. Industry-led curriculums printing & office supplies.
and cross functional credits are only going to increase in number
since there is a dearth of continuous industry-based knowledge The logistics partners on the platform would enable efficient
and upgradation among the students of India. All these aspects delivery and fulfilment in a timely, cost-effective manner
create a positive outlook for the business. with strong service level agreement compliance. In this B2B
marketplace initiative, financial services companies will also
participate on the platform by providing attractive financing
L&T SuFin options to the registered users.
In India, a number of B2C e-commerce platforms are well
The revenue for the platform is generated in a hybrid manner
established and operating at scale. In comparison, the B2B
through subscription fees, advertising, product listing, etc.
e-commerce for industrial and construction products is at a
and through transactions fee by charging a commission for
nascent stage and just beginning to emerge with a few players
transacting on the platform. In addition, there are financing
operating in some segments of industry.
fees, and logistics fees collected from the entities for using
L&T, with its presence across multiple industrial and the services.
infrastructure sectors, has deep knowledge of a large number
With digitalisation making inroads into all business
of construction and industrial products and associated supply
segments, e-commerce is slated to grow exponentially and
chain nuances. L&T also has rich experience in dealing with
in this positive environment, L&T SuFin brings choice and
thousands of SMEs over the years, and thereby understanding
convenience in a single and completely reliable package.
their problems and impediments to growth. Further, L&T’s

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INFORMATION TECHNOLOGY
IT at L&T operates on a federated structure with Corporate IT Multiple generational changes in IT Infrastructure in strategic
as the apex IT organisation and CIO council that is represented areas have been done to ensure that IT is able to respond
by all business CIOs. The IT spends at business levels are to the new needs of the business for the next several years.
governed by the specific needs of that particular business. All these investments are done with an eye to reduce
information security risk at all times.
While the IT and digital landscapes continue to expand within
L&T, more and more business stakeholders are becoming At L&T we are constantly enabling businesses with new,
cognizant of the value that IT delivers to the business vis-à-vis innovative platforms for ERP, Vendor Invoice Management,
the investments being put in. Continual measurement of IT Data Analytics, etc., that enable the evolution of a real time
value delivery is the new order in the business. enterprise. L&T also continues to work with public cloud
vendors selectively to move workloads wherever found
While the investments continue in strategic areas of IT, there economically viable.
is a fundamental shift in the way business is done post the
COVID-19 pandemic. Remote working and online collaboration IT at L&T is in a sweet spot as IT and digital transformation
are the new normal of doing business. As the new normal permeates across L&T using various tools and technologies.
settles in, it is even more imperative that one secures these As this happens, IT is working very closely with the businesses
new modes of communication and collaboration. and stands ready to deliver to business relevant and state-of-
the-art solutions that will enable L&T to stay competitive and
Over the past year, significant, yet strategic investments secure in the future.
have been done in the areas of cyber security to ensure
that uniform sets of policies, processes and technologies Regular awareness and training programmes are being
are implemented across the organisation to tackle the ever conducted around IT and Information Security to ensure
evolving threat landscape. ’Security by design‘ principles are that all employees understand the criticality of IT and use it
applied in all areas of IT to ensure that all applications are judiciously for the betterment of the organisation.
secure right from the development stage.

HUMAN RESOURCES
With a people-centric philosophy and practice, combined critical roles and high potential employees, define career
with dynamic top management, the Company was able paths, assess role-readiness, create targeted mentoring
to ensure business continuity, keep the workforce safe, programmes, match mentors and mentees, and enable
healthy, motivated and engaged and contribute to the mentor / mentee collaboration.
society during the unprecedented times brought about by
the COVID-19 pandemic. Continuous communication from An AI-enabled BOT was integrated to facilitate quick
the top management and the HR team helped the employees engagement surveys across the organisation. The platform
deliver their best amidst the pandemic. Financial assistance has been branded HEERA. This provides a methodical
and additional insurance was provided to employees and approach of gathering employees’ feedback / views
their family members affected by COVID-19 along with periodically. Basis such insights, appropriate and timely action
educational, financial and career support to families of is expected to help further improve employees’ experience
deceased employees. The Company also went out on a war and engagement.
footing to build medical grade Oxygen Generation Units and
donated 40 of such large-scale Oxygen Generating units to HiFive, an online rewards and recognition platform was
various hospitals across the country. integrated to promote a culture of appreciation and
recognition of employees at the workplace.
The pandemic did not deter the Company from continuing
with industry leading HR initiatives and some of them are L&T Radio has been launched to create a high-impact
summarised below. employee communication and engagement environment for
all L&T-ites, through a series of podcast covering leadership
The digitalisation journey that started with an advanced ERP messages, employer branding, success stories, life learnings,
solution and online Performance Management System was health and wellness, HR policies, and more.
further integrated with a Career Development & Succession
planning module, which helped in identifying emerging In the post COVID-19 scenario of ’War for Talent‘, the
leaders and build a strong talent pipeline. It helped to identify attraction and retention of talent acts as the biggest

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differentiator for the success of an organisation. Major The Company has a matured Safety Education Programme
emphasis was given on campus branding which included that is designed to build and strengthen a culture of safety at
initiatives like the ’L&T Campus Engage‘ programme, workplace. Ensuring safety for its employees and workmen,
that facilitates the connection with the engineering and the Company has partnered with the National Examination
management students across various colleges by offering Board in Occupational Safety & Health (NEBOSH) and The
industrial visits, sponsoring fests, organising national events, Institution of Occupational Safety & Health (IOSH) to develop
tech talks. GRACE (Get Ready for an Awesome Career in internal training capabilities in EHS and is an accredited
Engineering) was launched as a pre-joining engagement course provider for its employees on diverse aspects of
initiative, which included gamified content with leaderboards, industrial and project safety.
webinars, technical talks and newsletters, presentations on
marquee L&T projects, virtual industry visits and engagement With the emphasis on diversity and inclusion, L&T has
through social media platforms. embarked on a mission to make it a key business imperative.
Employees at L&T cut across the barriers of race, gender,
L&T’s Performance Management System, aptly named nationality, caste and age, reinforcing the Company’s
FAIR (Framework for Linking Appraisals with Incentives image as an inclusive organisation. For the last couple of
and Rewards), ensures that top-class talent gets visibility years, very focused initiatives have been undertaken to
and furthering meritocracy. The Leadership Development improve the gender ratio in the organisation on all the 3
Centres, pivotal to the Company’s core philosophy of aspects – attraction, development, and retention of women
grooming internal talent, ensures that the right leadership employees. Also, re-entry of women into the workforce post
talent is identified through an intense and objective maternity and child-rearing is being supported. The unique
selection process. Talent Assessment is being successfully platform ‘Renew’ which is linked to the talent acquisition
done through the Development Centres which encompass portal is designed specifically for the same. The ‘Winspire’
a structured and objective 2–3-day process to identify the initiative celebrates the journey of women leaders and
strengths and developmental needs of employees in terms provides them a platform to share their inspiring stories
of the required competencies. of overcoming challenges, through a series of interviews
and panel discussions. GROW (Get Ready to Own & Win)
A structured succession planning approach is undertaken to aims at providing opportunities to women employees to
meet business objectives. An entire portfolio of critical roles explore leadership potential and accelerate personal growth
is created by aligning the impact drivers, where succession through group and individual coaching. ‘Winspire Propel’
matters the most. A Career Development and Succession and ‘Winspire Rise’ initiatives were launched pan L&T for
Planning Module is integrated with the Performance developing mid-career women leaders in Tier 2 and for early
Management System to facilitate the process in a more career women in Tier 1. There are a host of initiatives planned
efficient manner. under the newly formulated D&I Charter based on 4 broad
themes of Induct, Engage, Develop leadership pipeline and
The Company’s signature Seven-Step Leadership Enable a supporting ecosystem, to further strengthen the
Development Programme is an established best practice inclusive culture of L&T and make it even more diverse.
in talent development. It prepares leaders at all levels. This
flagship programme provides young employees with high All the above practices have been recognised by prestigious
potential access to a curated learning experience delivered and premier national and international bodies through
by reputed thought leaders from Indian and international numerous accolades and some of the awards won by the
business education institutes. The emerging leaders who Company are:
move up the Seven-Step Leadership Programme are
mentored by seniors ensuring a robustness in the continuity • International Gold Award in the 6th Annual Stevie Awards
of the leadership thought process and value systems. for Great Employers

The organisation gives a lot of emphasis on learning and • ATD Excellence in Practice Award 2022 in Leadership /
development. It runs as many as 18 dedicated training Management Development
institutes / academies including Leadership Development • ATD BEST 2022 for Talent Development
Academy, Lonavala, IPM – Institute of Project Management,
The Company also has an institutionalised mechanism for
Chennai & Vadodara, CTEA – Corporate Technology &
dealing with complaints of sexual harassment through a
Engineering Academy, Mysuru & Madh, Safety Innovation
formal committee constituted in line with the Company’s
School, Hazira, Surat and 8 CSTIs - Construction Skills
policy on ‘The Protection of Women’s Rights’ at workplace
Training Institute across the country. IPM has now established
under relevant statutory guidelines. This policy has been
the Knowledge@Work platform tailored to provide project
widely disseminated across the Company and all complaints
execution related knowledge assets in a digital form. It has
are addressed in a time-bound manner.
also initiated Pragati - the Project Leadership Development
Program (PLDP) of Larsen & Toubro, which is aimed at For further details on HR, refer Human Capital (page no.168)
enabling the comprehensive development of project leaders
who can handle mega projects and mega portfolios through
a structured competency-based development.

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AWARDS
During the year, the CSR Journal has ranked Larsen & Defence Engineering
Toubro Limited #18 among Top-100 companies in India for
CSR and Sustainability. Multiple projects across multiple • Won Apex Gold Medal award for defence work centre at
businesses received awards from RoSPA (The Royal Society Hazira by International Research Institute for Manufacturing
for the Prevention of Accidents) and British Safety Council for
Environment, Health and Safety. Further, businesses have also L&T Infotech
won many awards and accolades, some noteworthy awards
• LTI has been recognised as the Global Innovation Partner of
are mentioned below:
the Year by Snowflake, the Data Cloud Company
• Recognised as a Great Place to Work-Certified™ Company
Buildings & Factories in the USA and as Top Employer in the UK for a second
consecutive year
• American Concrete Institute awarded Narendra Modi
Cricket Stadium Motera with Overall Excellence award • Received Gold recognition from EcoVadis for ESG practices
including environment, labor and human rights, ethics and
• NPCI Datacenter Chennai & Hyderabad received 'TIER – IV'
sustainable procurement
Design Certificate from 'UPTIME INSTITUTE”
• LTI in ITS Top 10 list in Everest Group's PEAK Matrix® IT
• 'Statue of Unity' Project won the 'Outstanding Structure' IA Service Provider of the Year 2022 and Ranked 1 in Top ITS
StructE National Award Challengers list in Everest Group's PEAK Matrix® IT Service
Provider of the Year 2022
Heavy Civil Infrastructure • LTI Syncordis has been recognised as Temenos Service
• Business bagged the International Green Apple Partner of the Year
Environment Award 2021, UK in Habitat and Biodiversity
Conservation in Mumbai Coastal Road Packages 1 and 4 Mindtree
• Ranked second for client satisfaction in the 2021 UK
Power Transmission & Distribution IT Sourcing Study, conducted by Whitelane Research
in collaboration with PA Consulting, with an overall
• PT&D Oman won the Dossier Award for the Best EPC satisfaction score of 80%, well above the industry
Contractor of the Year average of 72%
• Awarded Silver rating by EcoVadis in this year’s
Hydrocarbon sustainability assessment, placing Mindtree among the
• Business adjudged as the ‘Top EPC Contractor in the top 25% of the more than 75,000 companies it assessed
Middle East’ by Oil & Gas Middle East magazine • Won three Brandon Hall Group Human Capital
• Winner Award for Best Practices in Occupational Health and Management Excellence Awards for 2021 for innovative
Safety 2021 from Confederation of Indian Industries (CII) leadership development, HR data analytics, and
employee benefits, wellness and well-being programs
• ASSP - GCC Excellence Awards 2021 for NSGEP & TL 5
• Certified by Great Place to Work® Institute as a Great
Project, KOC Kuwait
Place to Work® in India and recognised as one among
• CII EHS award 2021 under 'Construction Category' and India’s Best Workplaces™ for Women for 2021 (Top 50 –
'EHS Workforce Engagement' special category award for Large Companies)
HPCL FCHCU & HPCL CDU VDU projects • Won the Silver award in the Most Innovative Company
of the Year category at the Best in Biz Awards 2021 in
Power North America
• The 400 MW Bibiyana South Gas-based Combined
Cycle Power Plant in Bangladesh has been conferred the L&T Technology Services
Award of Merit by the prestigious US-based publication - • NASSCOM honoured L&T Technology Services with the
Engineering News-Record (ENR) Engineering and Innovation Excellence Awards 2021 in the
‘Engineered-In-India Product of the Year’ category for its
Robotic Endo-Trainer Kit

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• Confederation of Indian Industry (CII) awarded LTTS with Realty

the prestigious Top 25 Innovative Company Award at the
2021 Industrial Innovation Award • A. M. Naik Tower awarded the Luxury Project of the Year –
Commercial and Most Environmentally Friendly Commercial
• LTTS’ Chest-rAITM solution recognised in the Innovation in Office Space at the Asian Leadership Awards 2021
Overall Customer Experience category by ASSOCHAM 2nd
Innovators’ Excellence Awards 2021 • Raintree Boulevard, Bengaluru recognised as the Residential
Project of the Year at the Realty Plus - South India Awards
• Zinnov rated LTTS as a global ER&D Leader and leader
across its core verticals such as Automotive, Aerospace,
Medical Devices, Industrial, Semicon & Telecom
Valves
• LTTS has been recognised as a Leader in Digital Engineering • Silver Medal in the National awards for Manufacturing
in ISG’s Manufacturing Industry Services 2021 Study in competitiveness 2021 organised by International Research
the Transportation, Hi-Tech and Industrial segments, along Institute for Manufacturing
with its Life Science Digital Services Study recognising LTTS
as a Leader in Europe & USA in the MedTech and Digital Construction Equipment Business
Transformation Services areas • CMM business received best excavator brand 2021
award for PC 210-10M0 excavator and Innovative New
Hyderabad Metro Equipment award for L&T 990HFi vibratory compactor
• Telangana State Global Linker - 4th Edition of the Telangana from Construction week equipment and infra conference &
State Industry Award 2021 for best Sustainability Practices awards 2021

Nabha Power Smart World & Communication

• ‘Best Thermal Power Generator - Commissioned after • India Digital Awards – 2021 for Best Supply Chain Solution
2010’ by IPPAI for the inhouse end to end Supply chain solution (SWIFT,
Smart Sign off & i-smart Inventory)
• India Digital Awards – 2021 for Best Mobile Application
was awarded to Jhansi Smart City for the application
developed for Government bodies

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Integrated Annual Report 2021-22

Integrated
Report
NATURAL
CAPITAL
Page no. 136

SUSTAINABILITY
FINANCIAL
VISION CAPITAL
For a better world! Page no. 196

L&T shall pursue eco-friendly

growth, promoting a culture of
sustainability and innovation,
and thereby contribute
towards a better world.

SOCIAL AND
RELATIONSHIP
CAPITAL
Page no. 178

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

MANUFACTURED
CAPITAL
Page no. 148

INTELLECTUAL
CAPITAL
Page no. 158

About the report

HUMAN At L&T, we have been taking concerted efforts towards
CAPITAL achieving resource efficiency and decarbonising our
Page no. 168 businesses. We have sharpened our focus on improving
performance across environmental, social and
governance (ESG) parameters. We are revisiting our
vision, policies, frameworks, roadmaps and action plans
to deliver solutions towards building a better future.
This Integrated Report (IR) includes financial and non-
financial performance of L&T Limited and is aligned to
principles of International Framework developed by the
International Integrated Reporting Council (IIRC). The
Report expands the target audience from the primary
provider of financial capital to include employees,
customers, suppliers, local communities, regulators,
and policy-makers.

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 Integrated Annual Report 2021-22

value creation Model

Natural Capital Manufactured Capital Intellectual Capital

Water Consumption: 9.4 Mn m3 Project Sites: 710 R&D Spend (Cumulative for last 3 years):
Energy Consumption from Non-Renewable Manufacturing Locations: 18 ¢4,498.4 Mn
INPUT METRICS

sources: 9,520,137 GJ Patents filed: 15

Energy used from Renewable Sources: 127,129 GJ R&D Engineers and Scientists: 187
Spend on Environment: ¢294.8 Mn Active collaborations and partnerships: 28
Material Consumed
• Cement: 3,256,013 MT
• Sand: 3,186,601 MT
• Ferrous: 1,657,640 MT

BUSINESS PROCESSES AND OFFERINGS

Lifecycle costing Lean operations Innovation Process improvement

Engineering Construction

Oil & Gas Platform Hydrocarbon Plant Hospitals Commercial Spaces Stadiums Metro Rails and
Railways

Wastewater recycling efficiency: 48% Building Infra created: 17 mn.sq.ft  alue Engineering projects: 74
V
OUTPUT METRICS

Saving in energy: 149 Mn kWh Mobility Infra created Revenue in FY 2022 from new emerging business
GHG emission: 889,063 tCO2e • Roads: 474 lane km started in last three years: ¢21,510 Mn
GHG emission intensity: 893 tCO2e/Bn • Railways: 306 track km
Material reused/recycled • Mass Transit: 3.86 km
Steel: 2,676 MT • Bridges & Tunnels: 11.6 km
Zinc: 130 MT Power Infra created
Crushed Sand: 1,330,182 MT • Transmission Lines: 1,860 circuit km
• Solar Power capacity: 161 MWp
Water & Sanitation Infra created
• Irrigation capacity : 1.01 L ha
• Pipelines laid: 32,609 km
• Treatment capacity: 617 MLD
• Factory Output : Total production in the
reporting year (B&F, PT&D, M&M, HE,
Defence, LTEH): 321,967 MT
• Green Business revenue: ¢388.43 Bn

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Overview Discussion and Analysis Report Reports Statements

Human Capital Social and Relationship Capital Financial Capital

Permanent Employees: 45,615 CSR Spend: ¢1.36 Bn Order Book: ¢3,155.7 Bn

Engineers (BTech/MTech/Diploma): CSR Partners: 45 Net Current Assets: ¢344.5 Bn
37,966 Active suppliers and contractors: 97,123 Net Fixed Assets: ¢97.0 Bn
Workforce (Contract Employees): MSME Suppliers: 2,615 Gross Debt Equity Ratio: 0.30 : 1
200,062 Memberships of Industry Chambers: 15
Employees covered under leadership
development programmes: 310

Digitalisation Value engineering Benchmarking Design thinking

Technology Manufacturing

Airports Solar PV Plant Hydro Ferrous and Non Nuclear Water Transmission
Power Plant ferrous plant Plant Treatment Plant and Distribution
Lines

Revenue/employee: ¢19 Mn/employee CSR Beneficiaries: 1.13 Mn Turnover: ¢1,010 Bn

Attrition Rate: 9.05% Contribution to Exchequer: ¢54.4 Bn PBIT: ¢115 Bn
Average training hours per employee: 8.37 Awards: 56 Dividend: ¢30.91 Bn
Accident free man hours: 1,153 Mn Appreciation certificates: 27 Return on Net Worth: 12.23%
Joint Projects: 35
Complaints received: 76
Complaints resolved: 50

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Integrated Annual Report 2021-22

value creation process

Our value creation process assesses our operating context, identifies the key business risks, evaluates the
relationships that are critical to our value creation abilities and assesses the availability of our resources.

1 Assessing the external 5 Our Capitals:

environment
Natural

2
Identify key risks and Manufactured
opportunities
Formulate
Strategies Intellectual

3 Stakeholder
Social and Relationship
engagement
Human
4
Evaluate the impacts
of material issues Financial

1 External environment: 3 Stakeholder engagement:

The environment in which we operate, including Our success and business sustainability
the economic environment, global pandemic, depend on the support from our stakeholders
climate change impacts and infrastructure growth and makes it imperative for us to understand
cycle, among others. their needs and interests.

Page 34-112 Page 124-126

2 Identifying risks and opportunities: 4 Material issues:

The key objective is to identify key risks associated with Material issues have the potential to impact
the business and their impact on our strategy and value our value creation and achievement of our
creation process. strategic objectives.

Page 25-29 Page 127-131

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Overview Discussion and Analysis Report Reports Statements

8 Sustainable stakeholder
value creation
Dynamic business
Sustainable returns to shareholders
environment
and investors

Deliver sustainable products

6
and solutions
management
Stakeholder

Strategic Objectives:
framework

Robust risk
Key Patents, copyrights
partners

SO-I, SO-II, SO-III, SO-IV, SO-V

Performance
Increased social value delivery
Strategic Enablers: Indicators
SE-1, SE-2, SE-3, SE-4, SE-5 Safe workplace ensuring Zero Harm
6
GHG emission reduction

Sound corporate Maintaining environmental

7 commitments
governance practices
Engaged and diversified workforce

5 Capitals: 7 Governance:

Our resources and relationships which are critical for We are committed to the highest degree of
us to create value and are classified into six capitals. ethics and compliance. We ensure transparency
We provide inputs under each capital to drive our across business processes and remain
business process. accountable to stakeholders.

Page 136-199 Page 292-317

6 Strategic objectives: 8 Key performance indicators:

In line with our overall strategy, we prioritise the We have defined the financial and non-financial KPIs
strategic objectives which help us in achieving our overall to measure the impacts of our strategy execution over
organisational goals. the short-, medium- and long-term.

Page 22-23 Page 24

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STAKEHOLDER ENGAGEMENT
Fostering and nurturing relationships with all our partners and stakeholders is essential for the success of the
Company and long term value creation. Backed by strong engagement platforms, we are working on several
initiatives with our partners across the value chain for inclusive development. We are able to manage risks
and opportunities proactively and set clear goals to deliver long term shared value by engaging with our key
stakeholders through regular dialogues.

SHAREHOLDERS AND INVESTORS

L&T’s Interaction and Engagement Approach
• Quarterly calls
• Face-to-face meetings
• Annual general meetings
• Investor grievance channels along with the presentation of
financial reports and presentations
• Business Responsibility and Sustainability Report (BRSR,
earlier BRR)
• Integrated Reports (IRs)
Material Topics:
• Regular announcements and filings with the stock exchanges
• Business performance
• Improved Return on Investment (ROI) Value creation
• Effective financial and non-financial risk controls • L&T Limited is India’s largest E&C company with ¢1,010 Bn
revenue and ¢2,483 Bn market capitalisation.
• Fair business practices
• Solid financial performance irrespective of challenges
• Consistent credit ratings CRISIL: AAA (Stable), ICRA:
AAA (Stable)

CUSTOMERS
L&T’s Interaction and Engagement Approach
Continuous interaction through various channels such as:
• Customer meets
• Workshops and conferences
• Exhibitions and trade fairs
• Advertising campaigns, bulletins, and news
• One-on-one interactions
• Periodic reviews, annual reviews, customer satisfaction
surveys and feedback forms
Material Topics:
• Timely completion of projects Value creation
• Confidentiality • On-time project completion with deeper ‘customer
connect’ at multiple levels.
• Competitive contract price bid
• Tighter project monitoring and control
• Innovation and state-of-art engineering techniques
• Increased after-sales support and regular monitoring
• High safety standards
of projects
• Transparency in energy, water and
• KPIs – Safety, water, material management, energy and
GHG emissions performance
GHG emissions, among others.

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Overview Discussion and Analysis Report Reports Statements

EMPLOYEES
L&T’s Interaction and Engagement Approach
Regular communication through:
• Project updates
• Town halls
• Departmental meetings
• Connect sessions where employees voice their ideas
and concerns
• Internal magazines and portals such as Newsman, SPOT
News, RAPL, etc.
Material Topics:
• Enterprise-wide employee portal called ‘L&T Scape’ for
• Career growth
regular connect
• Employee benefits
• Skill development Value creation
• Focus on attracting and retaining talent
• Effective/high-quality training programmes
• Promote employee wellness, functional and soft-skill
development programmes, leadership development
programmes, continuous improvement in programmes for
structured learning and development of workforce

SUPPLIERS/CONTRACTORS
L&T’s Interaction and Engagement Approach
• Periodic partner meets
• E-tendering and e-procuring and supplier meets
• Training and capacity building programmes such as Human
Rights, EHS training, etc.
• Regular visits to suppliers’ and contractors’ facilities

Value creation
• Cost-effective price negotiations
Material Topics: • Screening, assessment and audits of suppliers related to
quality and EHS aspects
• Timely payments
• Repeat orders
• Price reduction
• Different purchase processes by businesses as per
project/establishment's requirements

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Integrated Annual Report 2021-22

GOVERNMENT
L&T’s Interaction and Engagement Approach
• Regular interaction with local governments
• Member of important industry associations
• Play an active role in policy formulation

For further details on our public policy advocacy, please

refer to Principle 7 of BRSR [Businesses, when engaging in
influencing public and regulatory policy, should do so in a
manner that is responsible and transparent]
Material Topics: Value creation
• Compliance with regulations
• Continual improvement in our ESG performance
• ESG performance and Integration
• Present our performance through mandatory and non-
• CSR and reporting mandatory disclosures

MEDIA
L&T’s Interaction and Engagement Approach
• Regular press meets and periodic media visits
• Interactions for news and articles

Value creation
• Provide media updates
• Share critical information through press releases and feeds
to social media (LinkedIn, Facebook and
L&T website)
Material Topic: • Conduct media briefings and presentations

• Transparent Stakeholder Communication

COMMUNITIES
L&T’s Interaction and Engagement Approach
Regular engagement through:
• CSR programmes and initiatives
• Volunteering activities
• Quarterly review of Integrated Community
Development Projects
• Continuous engagement with village panchayats and local
authorities

Material Topics: Value creation

• Expectation of livelihood creation • Nine Construction Skills Training Institutes (CSTIs) impart
training in formwork, carpentry, bar-bending, steel fixing,
• Improvement in well-being and living standards masonry, construction, electrician skills, welding and CCTV
• Water and sanitation - development of installation training
community infrastructure • Education, health and skill development for communities
around L&T establishments and project sites
• Access to drinking water and sanitation in water-
stressed regions
• Integrated Community Development Programmes

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Overview Discussion and Analysis Report Reports Statements

MATERIALITY ASSESMENT
Materiality assessment is the process to identify, prioritise, track and report on ESG issues that are of concern to
stakeholders and can impact the business. A matter is material if it is of such relevance and importance that it could
substantively influence the assessments of providers of financial capital regarding the organization’s ability to create
value over the short, medium and long term. In FY 2021-22, we conducted an extensive stakeholder engagement
exercise to identify the top ten material issues and understand the stakeholders’ perspectives on the potential material
topics and efforts for sustainability. These material topics form input for our strategy, planning and disclosure.

Assessment Process

Identification of Categorisation of Stakeholder identification

potential topics potential material topics and prioritisation

Stakeholder Stakeholder Finalisation of

Engagement feedback material topics

Mumbai Trans Harbour Link

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 Integrated Annual Report 2021-22

Materiality Matrix

We identified 32 potential material issues which are directly or indirectly related to our businesses. Stakeholder feedback was
obtained through surveys and finally top 15 material issues which are most important for short-, medium- and long-term value
creation from both internal and external stakeholders perspective, were identified.

Material topics:
High

1
1. Customer Experience
& Satisfaction
2. Corporate Governance
4 3
3. Business Ethics
7 2 4. Employee & Workforce
Engagement, Wellbeing,
5 Heath & Safety

8 5. Human Rights &

Labour Conditions
Stakeholder concern

6. Skilled Manpower
9
11 7. Sustainable Supply Chain
12
8. Talent Management-Attraction,
Retention & Development
13
6 9. Climate Action

10 10. Diversity, Inclusion &

15 Equal Opportunity
11. Data Security, Privacy
14 And Cybersecurity
12. Quality Of Products And
Project Delivery
13. Brand Management
14. Water, Waste & Hazardous
Materials Management
15. Social Engagement & Impact
Low Importance for L&T High

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Overview Discussion and Analysis Report Reports Statements

Description of material issues and linkage with strategy and capitals

Capitals
Material Topics Description Strategies
Associated

Customer Refers to the relationship, interactions and experiences between SO-I, SO-III,
Experience and the business and the customer throughout the entire journey. SO-IV, SO-V
Satisfaction L&T’s presence is primarily in EPC and projects and customers
include Central & State Govt., public and private sector
organisations. Partnering with customers for on-time project
completion with deeper ‘customer connect’ at multiple levels,
regular monitoring of projects, innovation and state-of-the-art
engineering techniques, high safety standards, transparency in
energy, water and GHG emissions performance, etc.

Corporate Set of systematic rules, practices, and processes by which SO-I, SO-II,
Governance businesses are operated, regulated, or controlled are part SO-III, SO-IV,
of corporate governance. It involves balancing the interests SO-V
of a company's stakeholders, such as shareholders, senior
management executives, customers, suppliers, financiers, the
Government, and the community. Corporate Governance
reflects our core values around the principles and ideals based
on independence, transparency, accountability, responsibility,
compliance, ethics and trust.

Business Ethics Implementation of policies and procedures regarding topics SO-I, SO-II,
which include, but may not be limited to, issues such as insider SO-III, SO-IV,
trading, fraud, bribery, discrimination, professional conduct, etc. SO-V

Employee & Refers to the physical, mental, and emotional health of SO-V
Workforce employees and workforce, both within and outside the
Engagement, workplace. With 52,155 employees and 200,000 + workforce, it
Wellbeing, is important to continuously engage the workforce in an effective
Health & manner. Engagement includes regular communication, training
Safety & development, skilling, management-employee dialogues and
technologies that enable the same.

Human Rights Human rights include child labour, forced labour, prevention SO-V
& Labour of sexual harassment, etc. Also involves the right to safe
Conditions and healthy working conditions, as well as rest, leisure and
reasonable working hours. Labour conditions cover areas such
as working conditions, wages, discrimination, etc, including
entitlement to wages and benefits, working hours, overtime
arrangements and overtime compensation, and leave for
illness, maternity, vacation and respecting collective bargaining
agreement. Our scope is not just limited to Tier 1 vendors but
also our subcontractors and workers. With a contract workforce
of > 200,000 contract, it is crucial to support, respect and
protect human and labour rights and ensure that the Company is
not complicit in any kind of violations.

Financial Intellectual Natural

Capital Capital Capital

Manufactured Social & Relationship Human

Capital Capital Capital

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Integrated Annual Report 2021-22

Capitals
Material Topics Description Strategies
Associated

Skilled Trained, educated and experienced segments of the workforce SO-V

Manpower undertaking more complex mental and physical tasks. As we carry
out large contracts related to construction and infrastructure,
skilling manpower on a continuous basis is extremely important.
Primary skill sets include bar-bending, formwork, electrical work,
tiling, masonry, welding, carpentry and solar electrical work,
etc. It is also required for hi-tech manufacturing for Defence
Engineering and Heavy Engineering businesses.

Sustainable Management of environment, social and economic impacts SO-I, SO-V

Supply Chain across the supply chain. Suppliers are our partners in delivering
timely performance in construction and manufacturing
businesses. We encourage suppliers to partner our sustainable
growth. With an active supplier base of 97,123 and 2500+
MSME suppliers, fostering responsible behaviour in the supply
chain, in accordance with the highest standards of ethics and
integrity, respect for the law, human and labour rights, and
environmental stewardship is vital.

Talent Refers to how employers can attract and retain high-quality SO-I, SO-III,
Management- employees, develop their skill, motivate them to deliver SO-IV, SO-V
Attraction, their best and stay with the organization in the long run.
Retention and Strategic implementation of talent management practices
Development helps businesses improve performance, stay competitive, drive
innovation, form productive teams, reduce turnover and create
a strong employer branding.
Key aspects include productivity, engineering skills, project
execution capability, technology orientation, and
leadership pipeline.

Climate Action Key aspects include emission reduction, efficiency in energy use, SO-III, SO-V
renewables, judicious use of water, recycling of water/ waste and
use of eco-friendly materials, and green business.

Diversity, Refers to providing employment opportunities on merit without SO-V

Inclusion any discrimination based on gender, sexual orientation, disability,
and Equal marital status, pregnancy & maternity, caste, socio-economic
Opportunity status, religion, faith, nationality, ethnicity, race, colour, age,
religious or political views. Ensure equal opportunities with
respect to recruitment, learning, development, promotion,
employee benefits, separation and other aspects of employment
relationship based solely upon merit, performance, potential and
qualifications required for the job.

Financial Intellectual Natural

Capital Capital Capital

Manufactured Social & Relationship Human

Capital Capital Capital

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Capitals
Material Topics Description Strategies
Associated

Data Security, Refers to the state of being protected against the criminal or SO-IV
Privacy and unauthorized use of electronic data, or the measures taken to
Cyber Security achieve this. With the internet being pervasive, cyber security is
becoming a major concern for companies. Includes mechanism
for data security, privacy and cyber security. Covers people,
process and technology. Key aspects include IT security policies,
frameworks to manage Cyber Security risk, and controls across
the organisation.

Quality of High quality and timely delivery of the projects are critical for SO-I, SO-III,
Products success and growth. Products are in high tech manufacturing SO-V
and Project areas of Heavy Engineering (process plants, reactors, boilers,
Delivery steam generators). Construction (building, infrastructure,
hydrocarbon, etc.) and related projects constitute >90% of
revenue for our businesses.

Brand Refers to maintaining and bettering products, services, and SO-I, SO-II,
Management brand perception with the objective to receive cost leverage, SO-III, SO-IV,
increase customer loyalty, and establish meaningful brand SO-V
awareness. It also includes promoting approaches to increase the
perceived value of a product line or brand over time. Our brand
management includes corporate brands and individual brands of
various ICs.

Water, Waste Water is one of the most significant inputs for construction SO-I, SO-V
and Hazardous activity. Processes, technologies, and systems to reduce the
Materials amount of water used, increase water-use efficiency and manage
Management the wastewater appropriately needs to be deployed. Water
conservation through recycling, reuse and efficiency improvement
are major focus areas. Hazardous-waste management is the
process of collecting, treating, and disposing waste material that
can cause substantial harm to human health and safety or to the
environment, if handled improperly.

Social Effective means to create a positive impact in the areas where SO-V
Engagement the Company operates. Our business spans vast areas of the
and Impact country and we directly impact and get impacted by society.
Communities are among our primary stakeholders. Our focus
areas include Water & Sanitation, Health, Education and
Skill Development.

Financial Intellectual Natural

Capital Capital Capital

Manufactured Social & Relationship Human

Capital Capital Capital

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 Integrated Annual Report 2021-22

SUSTAINABILITY PERFORMANCE
Green Business Electricity saved*
(¢ Bn Revenue) (GJ)
Green Green
Business
Business Electricity
Electricity
Saved*
Saved*
Target:
(₹ Green
Bn(₹ 40% of total revenue by
Revenue)
BnBusiness
Revenue) We
(GJ) have
(GJ) cumulatively saved 149 million kWh since
Green Business Electricity Saved*
Electricity Saved*
FY 2026 38.2%
38.2% FY 2008

346

346 346
(₹ Bn Revenue)
(₹ Bn Revenue) (GJ)(GJ)

277

277 277
31.4%31.4% 38.2%
38.2%

346

277
31.4%
31.4% 33.2%33.2%
33.2%
33.2%
388

388 388

74,740
74,740
26,740
26,740
388

74,740
346

346 346

310

310 310

74,740
26,740
26,740

38,056
38,056
346

310

38,056
38,056
FY 2020
FY 2020 FY 2021
FY 2021 FY 2022
FY 2022 FY 2020
FY 2020 FY 2021
FY 2021 FY 2022
FY 2022
FY FY
2020
2020 FY FY
2021
2021 FY FY
2022
2022 FY FY
2020
2020 FY FY
2021
2021 FY FY
2022
2022

Energy
Energy
Consumption
Consumption
Intensity
Intensity GHGGHG Emission
Emission
Intensity
Intensity
(GJ/₹ Bn Revenue)
(GJ/₹
Energy Bn Revenue) Intensity
Consumption (tCO2e/₹
GHG Bn Revenue)
(tCO2e/₹ Bn Revenue)
Emission Intensity
Energy Consumption Intensity GHG Emission Intensity
(GJ/₹ Bn Bn
Energy
(GJ/₹ Revenue)
Consumption
Revenue) Intensity GHG(tCO2e/₹ Bn Bn
Emission
(tCO2e/₹ Revenue)
Intensity
Revenue)
(GJ / ¢Bn Revenue) (tCO2e / ¢Bn Revenue)

Target: Achieve 11% reduction in intensity Target: Reduce GHG emission intensity by 25%
346

346 346

277

277 277

by FY 2026 w.r.t FY 2021** by FY 2026 w.r.t FY 2021**

346

277
9,431
9,431

9,564
9,564

9,693
9,693

893

893 893
860

860 860
9,431

9,564

9,693
9,431

9,564

9,693

864

864 864

893
860

864

FY 2020
FY 2020 FY 2021
FY 2021 FY 2022
FY 2022 FY 2020
FY 2020 FY 2021
FY 2021 FY 2022
FY 2022
FY FY
2020
2020 FY FY
20212021 FY FY
2022
2022 FY FY
2020
2020 FY FY
20212021 FY FY
2022
2022
WaterWater
Consumption
ConsumptionIntensity
Intensity % Wastewater
% Wastewater
Recycling
Recycling
Efficiency
Efficiency
(KL/₹
WaterBn Revenue)
(KL/₹ Bn Revenue) Intensity
Consumption % Wastewater Recycling Efficiency
Water Consumption Intensity % Wastewater Recycling Efficiency
(KL/₹ Bn Revenue)
(KL/₹ Bn Revenue)
* Results of various initiatives undertaken at campuses and project sites

** Increase in Energy Consumption Intensity & GHG Emission intensity in FY 2022 due to:

- Ramping up of construction activity

- Revenue was not realised in FY 2022 for certain projects executed in the same FY
10,852
10,852

11,237
11,237

9,454
9,454

48

48 48
10,852

11,237
10,852

11,237

39

39 39
9,454
9,454

38

38 38

48
39

38

132
 9,431

9,564

9,693
9,431

9,564

9,693

893

893
9,431

9,564

9,693

893
860

860
Corporate Management Integrated Statutory Financial

864

864
860

864
Overview Discussion and Analysis Report Reports Statements

FY 2020
FY 2020 FY 2021
FY 2021 FY 2022
FY 2022 FY 2020
FY 2020 FY 2021
FY 2021 FY 2022
FY 2022
FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022
Water Consumption
Water Intensity
Consumption Intensity % Wastewater Recycling
% Wastewater Efficiency
Recycling Efficiency
Water
Water BnConsumption
Consumption
Bn Revenue)
(KL/₹(KL/₹ Revenue) Intensity
Intensity % Wastewater
% Wastewater Recycling
Recycling Efficiency
Efficiency
(KL/₹ Bn Revenue)
(kl / ¢ Bn Revenue)

Target: Reduce water consumption Intensity by 30% by Target: Achieve 60% Wastewater recycling efficiency by
FY 2026 w.r.t to FY 2021 FY 2026
10,852

11,237
10,852

11,237

9,454

9,454
10,852

11,237

48

4848
9,454

39

3939

38

3838
FY 2020
FY 2020 FY 2021
FY 2021 FY 2022
FY 2022 FY 2020
FY 2020 FY 2021
FY 2021 FY 2022
FY 2022
FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022

Recycled Mateiral
Recycled usedused
Mateiral
Recycled Mateiral used
(MT) (MT)
(MT)
Recycled Material used
(MT)

18% of recycled + eco-friendly materials used

in FY 2022
Safety
TARGET STATUS
Zero Harm Our severity rate of accidents has
447,482

425,747

444,506
447,482

425,747

444,506

reduced by 2.5% in FY 2021-22

447,482

425,747

444,506

compared to FY 2020-21. The number

of fatalities were 25, remains same as
last year

FY 2020
FY 2020 FY 2021
FY 2021 FY 2022
FY 2022
FY 2020 FY 2021 FY 2022

Corporate social initiatives

TARGET STATUS
Baseline
Baseline TargetTarget FY 2019-20
FY 2019-20 FY 2020-21
FY 2020-21 FY 2021-22
FY 2021-22
Reach 1.53 million
Baseline beneficiaries in
Target FYFY 2025-26
2019-20 FY 2020-21 1.13FY
million beneficiaries in FY 2021-22
2021-22

TARGET STATUS
Increase employee volunteering base to 5,000 4,900 employees participated in the volunteering
programmes and worked for various social causes
in FY 2021-22

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Integrated Annual Report 2021-22

Managing Capital Trade-offs

Managing growth while minimising the impact on the environment
L&T is a growing company and present in multiple business 11,000 pieces of equipment across more than 600 project
verticals such as EPC projects, high-tech manufacturing sites and through IIoT for our manufacturing facilities. We
services and others. aim to enhance the usage of renewable energy (target to
reach 50% of electricity consumption by 2026) and clean
The pursuit of growth requires judicious allocation of fuels (biogas, renewable diesel) in our energy consumption.
various resources; with financial resources being one of the We are devoting resources to make our campuses green by
most important ones. We have devoted significant capital minimising waste, increasing the use of renewable energy,
resources (both short and long term) to support the growth and recycling wastewater. We are also working towards
of our businesses. Some of these investments are being reducing water consumption and increasing water recycling
made in new businesses which have a positive impact on the at project sites and manufacturing facilities. Despite the
environment e.g., green hydrogen and battery storage. We constraints faced in some contracts, where clients insist on
are also investing in digital businesses that aim to address the the use of natural materials, we try to maximise the use of
demand-supply gap for skilled personnel (through EduTech, recycled and alternative materials.
an industry-led, application-based online learning platform)
and address the hurdles in growth faced by MSMEs (through Furthermore, we continue to invest in improving our
L&T-SuFin, a B2B e-commerce platform for industrial products capabilities, in terms of facilities, equipment, engineering
and services). These businesses will have a positive impact on & design and technology to be the leader in creating
the lives of thousands of people. environment-friendly assets for our clients i.e., renewable
energy (solar, hydel), non-fossil fuel energy (nuclear), water
Thus, the nature of investments, for some of our growth treatment and reuse, green buildings, and clean mobility
initiatives, obviates the trade-off between sustainability and systems. Over a period of years, the share of business from
growth by addressing both the issues. these projects/contracts has grown steadily to reach ~38%
of our revenues in FY 2021-2022 while helping our clients
While growth creates positive impact for the business, it also reduce their carbon/water footprint.
puts pressure on usage of natural resources. To reduce this
impact on the environment, we also invest in our operations L&T has demonstrated that capital trade-offs can be turned
to increase resource efficiency and minimize waste. Increasing into opportunities and endeavours to maintain the balance
the efficiency of plant and machinery is one of the key focus between growth and environment for years to come.
areas. This is being driven by digitally connecting more than

Capitals deployed: Capitals impacted:

Financial Manufactured Intellectual Financial Manufactured Intellectual

Capital Capital Capital Capital Capital Capital

Human Social and Natural Human Social and Natural

Capital Relationship Capital Capital Relationship Capital
Capital Capital

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Overview Discussion and Analysis Report Reports Statements

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Integrated Annual Report 2021-22

NATURAL
Capital
At L&T, we understand that we
have only one Earth and we need to
optimise resources and synchronise
all activities that further the cause
of sustainability and business
interests. We have been consistently
working towards conservation of
natural resources, building efficient
infrastructure, reducing emissions, and
more importantly, urging stakeholders
towards behavioural change through
consultation and partnership. Our
sustainability reporting started in 2008
and is a testimony of our commitment
towards a better planet.

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KEY HIGHLIGHTS OF FY 2021-22

Water Neutral
by 2035

Carbon Neutral
by 2040

1,499,989
Saplings planted

¢388.43 Bn
Green business REVENUE

STRATEGIES IMPACTED

SO-I SO-III SO-V

SE-1 SE-2 SE-3

SDGs IMPACTED

KEY MATERIAL ISSUES IMPACTED

−−Corporate Governance
−−Business Ethics
−−Sustainable Supply Chain
−−Climate Action
−−Brand Management
−−Water, Waste and Hazardous
Materials Management

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Integrated Annual Report 2021-22

Translating sustainability initiatives into lasting outcomes

Our strategy is to adopt a low-carbon pathway for all our in place to achieve our sustainability goals. The overall
businesses and translate our sustainability initiatives into performance is monitored and reviewed by the Board on
lasting outcomes. a quarterly basis. Our revised broad sustainability roadmap
came into effect in 2022, with the target year of FY 2025-26.
Since 2016, we have been setting targets as a part of our Currently, granular plans are being made.
sustainability programme and working to fulfill them. Our
Company has a sustainability policy, systems and processes

Lakshya 2026 targets on Natural Capital

We have set major targets and are in process of formulating comprehensive action plans on the following aspects:

Actual Target
Aspects UOM FY 2021
FY 2022 FY 2026
(Base year)

CO2e impact - Post abatement Mn tonne 0.75 0.81 1.11

Net water consumption (excl. conservation, recharge methods) Mn kl 9.7 9.4 13.3

Green Business % of revenue 33.2% 38.2% 40%

While overall GHG emissions will increase due to an increase in business activity, the intensity is expected to reduce by
25% by FY 2025-26, primarily due to various energy efficiency measures and greater use of renewables.

KEY HIGHLIGHTS OF FY 2021-22

Energy Conservation Materials Management

149 Mn units 0.32 Mn 45,744 46,539 tCO2e

Fuel Saved (kl) Recycled steel consumed
Energy saved Cumulative (kWh) Emission avoided
cumulative (MT) since
since FY 2007-08
FY 2007-08
Expenditure on
Renewable Energy Environmental measures 1,779
Recycled zinc consumed
35.31 Mn units ¢ 294.8 Mn cumulative (MT) since Mr. S. N. Subrahmanyan,
Renewable Energy used in our FY 2007-08 CEO & MD, L&T has joined
(against 85 Mn in FY 2020-21)
campuses and project sites (kWh) the CEO Forum as one of the
Reduced use of hazardous nine founding members of
10% chemicals by Climate Finance Leadership
of total electricity mix
Green Business1 32% (vs FY 2020-21) and Initiative (CFLI) India formed
by Bloomberg.
54% (vs FY 2019-20)
Water Management 38.2% of total revenue Consumption of oil and
(as compared to 33.2% in
48% FY 2020-211)
lubricants is at par with FY
Wastewater recycling efficiency 2020-21 and 17% reduction
(vs FY 2019-20)
3%
Reduction in water consumption
w.r.t FY 2020-21

1. Previously called Green portfolio. Green Business revenue data of our Buildings & Factories and Smart World & Communication businesses has been
revised for FY 2020-21

Our scope excludes transit houses, guest houses, holiday homes and company owned residential facilities for both FY 2021-22 and FY 2020-21

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

ENERGY
We are progressively ramping up the share of renewable energy in our total energy consumption. Across our businesses, all
departments have Bureau of Energy Efficiency (BEE) certified energy managers and auditors. The primary objective of this team is
to enable us to manage and optimise energy use at our manufacturing facilities. Energy audits on ISO 50001 are also conducted at
regular intervals.

In FY 2021-22, our total energy consumption was 9,647,266 GJ, comprising direct energy consumption of 8,365,802 GJ and indirect
energy consumption of 1,281,464 GJ. Direct energy intensity decreased by 0.18% with respect to FY 2020-21, while indirect energy
intensity increased by 12.6% with respect to FY 2020-21. The increase in overall indirect energy intensity is due to the change in
scope of work of Heavy Civil Infrastructure business wherein their direct energy has decreased and indirect energy has increased.

Renewable energy
We have utilised 23.67 Mn units from wind powered turbines and 11.63 Mn units of solar energy which constitutes 6.7% and
3.3% respectively of our total grid electricity mix.

Renewable energy generated in Wind power sourced in Solar electricity sourced in

campuses: 8 campuses: 5 campuses: 5

Electricity from Renewable energy sources has increased from 97,044 GJ in FY 2020-21 to 127,129 GJ in FY 2021-22 (an increase
of 31%) and currently it is 10% of electricity consumption. Total electricity consumption has increased from 984,692 GJ in
FY 2020-21 to 1,281,464 GJ in FY 2021-22.

250MW Solar power plant at Rewa. Madhya Pradesh

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Integrated Annual Report 2021-22

Energy conservation
At L&T, our core objective is to achieve Energy conservation interventions (GJ/year)
a significant increase in energy
conservation measures every year. The Process re-design 13,908
energy conservation measures have
increased by 96% compared to Optimisation and operational control efficiency 4,179
FY 2020-21. Since FY 2007-08, we have
Conversion and retrofitting of equipment 21,888
cumulatively saved energy equivalent
to 149 Mn units, thereby avoiding
Change to CFL and LED lamps 28,039
46,539 tCO2e in FY 2021-22 through
energy conservation interventions and
Change in personal behaviour and auto shutting of lights when not in use 2,543
renewable energy.
Others 4,183

Total 74,740

Cumulative
Cumulative
energy
energy
conserved
conserved Direct
Direct
energy
energy
Cumulativeintensity
intensity
energy
2 2
conserved Dir
(GJ) (GJ) (GJ/₹(GJ)
(GJ/₹
Bn Revenue)
Bn Revenue) (GJ
346

346

346

346
346
277

277

277

277
277
538,358

538,358

538,358
8,420

8,420
8,254

8,254
463,618

463,618

8,405

8,405
463,618
425,406

425,406

425,406

FY 2020
FY 2020 FY 2021
FY 2021 FY 2022
FY 2022 FY 2020
FY2020
FY 2020 FY 2021
FY2021
FY 2021 FY 2022
FY2022
FY 2022

Indirect
Indirect
energy
energy
intensity
intensity
2 2
Indirect energy intensity2
Bn Revenue)
(GJ/₹(GJ/₹ Bn Revenue) (GJ/₹ Bn Revenue)
346

346

346
277

277

277
1,176

1,176

1,143

1,143

1,287

1,287

1,176

1,143

1,287

FY 2020
FY 2020 FY 2021FY 2021 FY 2022 FY 2022 FY 2020 FY 2021 FY 2022
400kV Kamudhi-Ottapidaram Transmission Line, Tamil Nadu

2. Intensity data for FY 2020-21 and FY 2019-20 has been revised. Total revenue has been considered for Intensity calculation; earlier, customer revenue
was considered.

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

EMISSIONS
GHG
We are committed to become Carbon Neutral by 2040 from FY 2020-21 baseline, contributing meaningfully to combating climate
change. Our focus is on realigning our processes and systems to reduce our GHG emissions.

Scope-1: Scope-2: Scope-3:

Consumption of fuels such as petrol, Utilisation of grid electricity supplied by Purchased goods and services, waste
high speed diesel, furnace oil, natural state electricity supply boards. generated in operations (solid waste),
gas, LPG, CNG and acetylene. employee commute and business travel

615,035 tCO2e 274,028 tCO2e 4,976,909 tCO2e

Direct GHG emission intensity-Scope 13 Indirect GHG emission intensity-Scope 23

(tCO2e /₹ Bn Revenue) (tCO2e /₹ Bn Revenue)
346

346
277

277
245
255
618

275
619
605

FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022

Air emissions
We monitor air emissions at our campuses and project sites and ensure that our emissions stay within permissible limits. Our
principal sources of air emission are process stacks at a few campuses and diesel generator sets. We have been consistently striving
to reduce emissions from different sources. The table below shows our performance over the last three years.

SOx, NOx, PM & ODS emissions (in tonnes)4

SOx NOx PM ODS

FY 2020 1.56 17.78 12.45 8.38

FY 2021 8.31 1.01 9.46 2.62

FY 2022 0.11 0.93 0.22 0.65

3. Intensity data for FY 2020-21 and FY 2019-20 has been revised. Total revenue has been considered for Intensity calculation; earlier, customer revenue
was considered.
4. Excludes data from Minerals & Metals, Transportation Infrastructure, Buildings & Factories, Smart World & Communication, Heavy Civil Infrastructure,
Realty businesses and our offices

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Integrated Annual Report 2021-22

WATER
We are continuously stepping up our water conservation Water Withdrawal (kl/year)5
initiatives as part of our overall commitment to sustainability.
The construction business is a water-intensive sector, but Source FY 2020 FY 2021 FY 2022
we have been successful in reducing water consumption
significantly. We are devoting resources to making our River / Lake 2,174,162 1,637,695 2,001,310
campuses green and one of the important components is
Municipal 770,622 980,433 1,369,437
recycling and reuse of wastewater. We are also working
towards reducing water consumption and increasing water Rainwater 56,672 56,575 82,364
recycling at project sites and manufacturing facilities. Our
groundwater withdrawal has been reduced by 11% since Groundwater 3,087,682 4,087,726 3,251,265
FY 2019-20. Water recycled is used for gardening and
flushing. We undertake various measures to construct Others 4,722,684 3,235,055 2,897,996
rainwater harvesting structures both at our premises and in Total 10,811,822 9,997,484 9,602,372
areas where our projects are functional

Water
WaterIntensity
Intensity
5 5
Total
TotalWater
WaterConsumption
Consumption
5 5

(kl/₹
(kl/₹
BnBnRevenue)
Revenue) (Mn
(Mnkl/year)
kl/year)
10,852
10,852

11,237
11,237

10.32
10.32
9,454
9,454

9.41
9.41
9.68
9.68

FYFY2020
2020 FYFY2021
2021 FYFY2022
2022 FYFY2020
2020 FYFY2021
2021 FYFY2022
2022

Waste & Circular Economy Our waste management measures:

• Hazardous waste – such as used oil, oil-soaked cotton
During the process of disposal, all relevant norms and waste, used chemical / paint / oil containers, batteries,
procedures applicable are appropriately observed and paint residues and ETP sludge – is disposed of through
documented for further reference, should there be an Government-approved recyclers / re-refiners / re-processors.
emergency. For example, we handle oil spills with care and
we continually report on waste and spills as mandated by • Hazardous waste is transported as per the
ISO 14001 and OHSAS 18001. Periodic internal and external statutory requirements.
assessments are conducted to ensure compliance with • Electronic waste (e-waste) is disposed of through
applicable standards and regulations. authorised vendors as per the statutory requirements.
• Biomedical waste generated at dispensaries and health
centres is disposed of as per statutory requirements, and
2,464 tonnes 48,995 tonnes responsible disposal is ensured.
Hazardous waste6 Non-Hazardous waste6
• Non-hazardous wastes are either reused, recycled or
10.4% 6.9%
scientifically managed.
w.r.t FY 2020-21 w.r.t FY 2020-21
• We do not import, export, transport or treat any hazardous
waste covered under the Basel Convention.

5. Water withdrawal data revised for FY 2020-21 and FY 2019-20, data on dewatering and hydrostatic water consumption removed from FY 2019-20 and
data corrected for FY 2020-21. (Note: 1 kl = 1 m3)
6. Data has been revised for FY 2020-21

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Compliance Material consumption (partially reported, MT)

Our campuses and project sites have obtained necessary

Material Consumption
approvals with respect to the various statutes, rules and
regulations from authorities before commencing their
operations. There is a ‘system compliance report’, which is
Ferrous 1,657,640
reviewed at all our units and regional offices on a quarterly
basis. During the year, there were no incidents of non-
compliance, and no fines were imposed on our campuses Non-ferrous 7,692
within the reporting period.

Material Management Hazardous chemicals 58,531

The materials consumed primarily during our business
activities are steel, cement and sand. We make sustained
Oils and lubricants 2,713
efforts to recycle our steel and zinc at our production
facilities. But the scope of using recycled material is limited
due to customer specifications. At our construction sites, we Cement and sand 6,442,614
make judicious use of fly ash and granular blast furnace slag
to blend cement.

Recycled
Recycledsteel
steel– –cumulative
cumulativesince
sinceFY
FY2008
2008 Recycled
Recycledzinc
zinc– –cumulative
cumulativesince
sinceFY
FY2008
2008
Recycled
(tonnes) steel
Recycled
(tonnes) steel– –cumulative
cumulativesince
sinceFY
FY2008
2008 Recycled
(tonnes) zinc
Recycled
(tonnes) zinc– –cumulative
cumulativesince
sinceFY
FY2008
2008
(tonnes)
(tonnes) (tonnes)
(tonnes)
346
346

346
346
277
277

277
277
346

346
346

346
277

277
277

277
45,744
45,744

1,649
1,649
1,494
1,494

1,779
1,779
43,068
43,068

45,744
40,570
40,570

45,744

1,649
1,494

1,649

1,779
1,494

1,779
43,068
43,068
40,570
40,570

FYFY2020
2020 FYFY2021
2021 FYFY2022
2022 FYFY2020
2020 FYFY2021
2021 FYFY2022
2022
FYFY2020
2020 FYFY2021
2021 FYFY2022
2022 FYFY2020
2020 FYFY2021
2021 FYFY2022
2022

Fly
Flyash
ash– –cumulative
cumulativesince
sinceFY
FY2008
2008 Crushed
Crushedsand
sand– –cumulative
cumulativesince
sinceFY
FY2008
2008
Fly
Flyash
ash– –cumulative
(tonnes)
(tonnes) cumulativesince
sinceFY
FY2008
2008 Crushed
(tonnes)sand
Crushed
(tonnes) sand– –cumulative
cumulativesince
sinceFY
FY2008
2008
(tonnes)
(tonnes) (tonnes)
(tonnes)
346
346

346
346
277
277

277
277
346

346
346

346
277

277
277

277
2,472,007
2,472,007

2,703,141
2,703,141

9,171,294
9,171,294
2,242,784
2,242,784

2,472,007
2,472,007

7,841,112
7,841,112
2,703,141

9,171,294
2,703,141

9,171,294
2,242,784
2,242,784

6,228,811
6,228,811

7,841,112
7,841,112
6,228,811
6,228,811

FYFY2020
2020 FYFY2021
2021 FYFY2022
2022 FYFY2020
2020 FYFY2021
2021 FYFY2022
2022
FYFY2020
2020 FYFY2021
2021 FYFY2022
2022 FYFY2020
2020 FYFY2021
2021 FYFY2022
2022

Percentage
Percentageofofcrushed
crushedsand
sandused
usedininplace
placeofofsand
sand Percentage
Percentageofoffly
flyash
ashand
andGGBS
GGBSused
usedininplace
placeofofcement
cement
Percentage
Percentageofofcrushed
crushedsand
sandused
usedininplace
placeofofsand
sand Percentage
Percentageofoffly
flyash
ashand
andGGBS
GGBSused
usedininplace
placeofofcement
cement
143
 2,472,0
2,47

7,841,112
2,242,78
2,242

6,228,81
2,47

2,703,1
2,70
2,242

6,228,81

9,171,2
9,17
2,472,0

2,70

7,841,112
2,242,78

7,841,

9,17
2,703,1

7,841,

9,171,2
6,228,811
6,228,811
Integrated Annual Report 2021-22

FYFY2020
2020 FYFY2021
2021 FYFY2022
2022 FYFY2020
2020 FYFY2021
2021 FYFY2022
2022
FYFY2020
2020 FYFY2021
2021 FYFY2022
2022 FYFY2020
2020 FYFY2021
2021 FYFY2022
2022

Percentage
Percentageofofcrushed
crushedsand
sandused
usedininplace
placeofofsand
sand Percentage
Percentageofoffly
flyash
ashand
andGGBS
GGBSused
usedininplace
placeofofcement
cement
Percentageofofcrushed
Percentage crushedsand
sandused
usedininplace
placeofofsand
sand Percentageofoffly
Percentage flyash
ashand
andGGBS
GGBSused
usedininplace
placeofofcement
cement

346346

346346
346346

346346
277277

277277
277277

277277
33.47%
33.47%

14.23%
12.48%
29.44%

14.23%

11.94%
12.48%
29.44%

11.94%
33.47%
33.47%
22.52%

14.23%
12.48%
29.44%
22.52%

11.94%
14.23%
12.48%
29.44%

11.94%
22.52%
22.52%

FYFY2020
2020 FYFY2021
2021 FYFY2022
2022 FYFY2020
2020 FYFY2021
2021 FYFY2022
2022
FYFY2020
2020 FYFY2021
2021 FYFY2022
2022 FYFY2020
2020 FYFY2021
2021 FYFY2022
2022

Percentage
Percentageofofrecycled
recycledsteel
steelused
usedininplace
placeofofferrous
ferrous Percentage
Percentageofofrecycled
recycledzinc
zincused
usedininplace
placeofofzinc
zinc
Percentageofofrecycled
Percentage recycledsteel
steelused
usedininplace
placeofofferrous
ferrous Percentageofofrecycled
Percentage recycledzinc
zincused
usedininplace
placeofofzinc
zinc
346346
346346

277277
277277
0.19%

0.20%
0.19%

0.20%

13.92%
13.92%
0.19%

0.20%
0.19%

0.20%

0.16%
0.16%

13.92%
13.92%
0.16%
0.16%

3.13%
3.13%

2.95%
2.95%
3.13%

2.95%
3.13%

2.95%

FYFY2020
2020 FYFY2021
2021 FYFY2022
2022 FYFY2020
2020 FYFY2021
2021 FYFY2022
2022
FYFY2020
2020 FYFY2021
2021 FYFY2022
2022 FYFY2020
2020 FYFY2021
2021 FYFY2022
2022

Baseline
Baseline Target
Target FYFY2019-20
2019-20 FYFY2020-21
2020-21 FYFY2021-22
2021-22
LifeBaseline
cycle Assessment
Baseline Target
Target (LCA)
FYFY 2019-20of Diamond
2019-20 2020-21 Green
FYFY2020-21 Diesel Reactor
FYFY2021-22
2021-22
LCA is a method for assessing a product’s environmental impact considering its various life cycle stages. We undertook a cradle-
to-gate LCA of a critical reactor manufactured by our Heavy Engineering business. These reactors process biomass (recycled animal
fats, used cooking oil and inedible corn oil) to make green diesel and reduce greenhouse gas emissions by up to 80% compared
with conventional diesel fuel. LCA results of the manufacturing process of the reactor show that the maximum impacts are due to
the steel and energy consumption from the grid associated with the manufacturing process. Other than these, there are negligible
impacts during the manufacturing process.

Note: Our product portfolio constitutes less than 10% of the standalone revenue of the Company

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Overview Discussion and Analysis Report Reports Statements

Expanding our Green business

We are steadily developing our portfolio of sustainable engineering and design solutions. Our green portfolio comprises projects
embedded with advanced technology, solutions centred around renewables, water and effluent treatment plants, efficient power
distribution, mass transit systems and green buildings. Our green business offers infrastructure that has a low impact on the
environment and focuses on public wellbeing. Our green business contributed ¢388.43 Bn (38.2%) to the revenue of the Company.

Our Green business includes:

• Renewables (Solar / Hydro) • Green buildings / facilities
• Non-fossil power generation (Nuclear) • Surface miners / sand plants, etc. (except for coal)
• Water & effluent treatment • Mass Rapid Transit System (Metro & High-speed Rail)
• Railway Network • Solid waste Management – automated communication
• Flue Gas Desulphuriser (FGD) software for effective solid waste management in Smart Cities

• Process equipment for biodiesel / clean fuels • Natural-gas extraction facilities

Our Green Buildings and their Rating

Leadership
Project
Development
Renewed in IGBC Platinum
Academy,
FY 2022
Lonavala

Project
A M Naik Tower,
completed in LEED Platinum
Powai, Mumbai
FY 2022

LTI, Mahape

Technology
Centre 4, Chennai

L&T Innovation
Certification
Future Projects Tower – Phase I,
in process
Chennai

L&T Innovation
Tower – Phase II,
Chennai

L&T IT Park,
Coimbatore

14 of our campuses have been certified at different periods

and we are working on their recertification processes.

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 Integrated Annual Report 2021-22

220,422
Biodiversity
The urban forest is a unique methodology proven to work worldwide, irrespective of soil and climatic conditions. Our Defence
Engineering business has been successfully undertaking urban forest development initiatives for the past few years. Here is a
glimpse of the impact.
197,790

123,239
124,090

Location: Talegaon Location: Coimbatore Location: Bidkin Location: Erode

3 patches of 400 square 1 acre 8 acres

metres 800 square metres, 2,401
saplings 12,500 saplings with 100% 49,300 saplings with 95%
3,600 saplings survival rate survival rate
Bhopal Cluster

Kolkata Cluster

Jaipur Cluster

Others

Plantation Case studies

L&T has planted 1,499,989 saplings in FY 2021-22, with over Plastic Waste Management
99% having been planted by our Water & Effluent Treatment
(WET) business. Over the years (2008-2022) L&T has planted Waste collection and segregation are conducted daily to
over 4.8 Mn. trees. minimise waste generated at the site and keep workplaces
clean and hazard-free. Our WET business has tied up with a
Cluster wise plantation third-party manufacturer and supplier – PGS Enterprises India
Ltd. – to send its plastic waste to be recycled into plastic
800,000
634,328

granules, polyfuel, etc

700,000
600,000
Impact
500,000
331.6 kg/annum plastic waste recycled
220,422

400,000 108 staff and 194 workmen participated and trained on

197,790
200,120

300,000 plastic management

123,239
124,090

665 kgCO2e/annum emissions avoided

200,000
100,000
0
Bhopal Cluster

Kolkata Cluster

Jaipur Cluster

Others
Bhubaneswar
Bangalore Cluster

Cluster

We continue to explore opportunities both internally and

externally in different aspects of Natural Capital. As stated in
our Group Vision, we will pursue eco-friendly growth, thereby
increasing our green portfolio y-o-y. We will continue to
focus on promoting sustainability within the organisation and
innovation will be a big enabler towards this objective. We
FY 2020-21 FY 2021-22
will also continue to disclose our sustainability performance
through international platforms such as Dow Jones
Sustainability Indices (DJSI) and Carbon Disclosure Project
(CDP) and we are committed to working on Task Force on
Climate-Related Financial Disclosures (TCFD) disclosures as well.

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Promoting sustainable construction • Smart campus with high-end digitisation: monitor

and control of lighting, HVAC systems, meeting-room
Sustainable construction means using renewable and management
recyclable materials when building new structures, as well as
reducing energy consumption and waste. The primary goal of • IAQ sensors to monitor and control of CO2 levels for
sustainable construction is to reduce the industry’s impact on employee wellness
the environment. A project of our Heavy Civil Infrastructure • Anti-COVID-19 features: UVGI (Ultraviolet Germicidal
business, the Mumbai–Ahmedabad High-Speed Rail Project’s Irradiation) in central AC system for health and safety
C4 Package, has been reducing its CO2 impact by using of occupants
supplementary cementitious materials in concrete, and
reducing its water usage by replacing conventional water- • Low water-flow fixtures in toilets
curing with a curing compound.

Impact
Emissions avoided using Supplementary Cement
Impact
Materials: 119,946 tCO2 700 tCO2e/annum emissions avoided
Water savings by using Water conservation through rainwater tanks:
60 Kl/annum
 Curing Compound: 2020.8 kl
Wastewater recycled through Sewage Treatment Plant
 Superplasticisers: 44,479.2 kl
(STP): 96,000 Kl/annum
Savings through reduction in raw material usage:
Waste reduced by 135 tonnes/annum
¢1.6 Bn

LEED Platinum Certification for A M Naik

Tower, Powai, Mumbai
The US Green Building Council has awarded L&T’s corporate
office, A M Naik Tower, the prestigious LEED Platinum
certification under LEED 2009 Core and Shell development.

The certification recognises the iconic structure as a

showcase of sustainability, demonstrating L&T’s leadership in
transforming the building industry. A M Naik Tower scored
high on multiple parameters – including overall energy
savings, water efficiency, design innovation and indoor
environmental quality.
The primary features are as follows:
• Concrete-filled tube technology in steel structure
• Significant energy savings over regular commercial
buildings due to solar roof-top PV cells, high-performance
glazing insulated roof and high-efficiency HVAC equipment
and lifts with regen drive
• Sewage treatment plant generates water for flushing,
irrigation and HVAC make-up
• Rainwater harvesting facility
• Organic waste composter treats kitchen waste, which is
reused for landscaping
• E-waste segregation facility

A M Naik Tower, Powai, Mumbai

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Manufactured
Capital
Our business segments across
geographies, and our tech-enabled
manufacturing capabilities give us a big
competitive advantage globally. We
implement global best practices at our
manufacturing facilities and locations
and invest in innovation to retain and
grow our market share. Notwithstanding
major challenges in the external
environment, we continued to make
encouraging progress in all our business
segments. With prestigious order
wins, our Order Book was at record
levels. Our revenue also picked up
momentum during the year.

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KEY HIGHLIGHTS OF FY 2021-22

710
TOTAL PROJECT SITES

18
MANUFACTURING LOCATIONS

321,697 MT
FACTORY OUTPUT

¢388.43 Bn
Green Business Revenue

STRATEGIES IMPACTED

SO-I SO-III SO-V

SE-1 SE-2 SE-3 SE-4 SE-5

SDGs IMPACTED

KEY MATERIAL ISSUES IMPACTED

−−Customer Experience and Satisfaction
−−Corporate Governance
−−Business Ethics
−−Human Rights and Labour Conditions
−−Skilled Manpower
−−Sustainable Supply Chain
−−Talent Management-Attraction, Retention
and Development
−−Climate Action
−−Data Security, Privacy, and Cyber Security
−−Quality of Products and Project Delivery
−−Brand Management
−−Water, Waste & Hazardous Materials Management
−−Social Engagement and Impact

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BUILDINGS & FACTORIES

Setting us apart
• Turnkey solutions from 'concept-to-commissioning' across • End-to-End EPC capability in multispecialty hospitals
the entire spectrum of urban infrastructure, with in-house including specialised medical systems and equipment.
design expertise using advanced systems like Building • Plug-and-play capability to design-and-build world-class IT
Information Modelling (BIM) 4D, 5D and BIM 360 field and infrastructure and data centres.
project management expertise.
• Capability to offer integrated design and build solutions for
• Track record of building tall, large, complex, and iconic light manufacturing plants and factories.
structures across India and overseas. The Statue of Unity
• Forerunner in offering modular and mechanised
- the world's tallest statue, Shri Narendra Modi Cricket
processes for advanced construction technologies such as
Stadium, Motera – the world's largest cricket stadium, the
Prefabricated Prefinished Volumetric Construction, Offsite
Ahmad bin Ali Stadium in Al Rayyan, Qatar, 11 national
Manufacturing, Structural Steel Construction, and 3D
and international airports apart from many other landmark
printing to fast-track projects.
structures have been built by L&T.

Offerings
Design and Engineering, Procurement and Construction
(EPC) of projects ranging from airports, hospitals,
stadiums, retail spaces, educational institutions, IT
parks, office buildings, data centres, high-rise structures,
mass housing complexes, cement plants, industrial
warehouses, test tracks and other factory structures.

Prestige Song of the South at Begur, Bangalore

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Transportation Infrastructure

Setting us apart
• Engineering and construction company in India offering • Well-equipped engineering
Design-to-Build or EPC solutions with single point centres which offer end-to-end
responsibility for Integrated Railway and Mass design capabilities including
Transit Projects. consultancy and construction
engineering for all our
• Expertise to design and build a full spectrum of highways, offerings.
bridges and elevated corridors including complex
interchanges, both in India and abroad. • First-of-its-kind training centre
for rail construction in
• Pioneers in introducing mechanised construction the country.
techniques for faster execution with quality and safety.

Offerings
Solutions for all kinds of Transportation Infrastructure
– roads, bridges, elevated corridors, runways, high
speed rail, railway lines, dedicated freight corridors,
mass transit systems (Metro/Light Rail Transit/
Monorail).

A section of the Mauritius Metro Project

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Heavy Civil Infrastructure

Setting us apart
• Capability to execute complex infrastructure projects • Owner and operator of one of the largest fleets of
covering civil, structural, mechanical, and electrical works critical machinery e.g. TBM, heavy lift cranes, shotcrete
with international safety and quality standards. machines, etc.

• Expertise to build underground structures with various • Global supply chain management cell to undertake
tunnelling technologies e.g., New Austrian Tunneling competitive sourcing of materials.
Method (NATM), Tunnel Boring Machine (TBM) and • Temporary Works Competency
erecting super structures using innovative methods e.g., Centre (TWCC) to manage
incremental launching and full span ‘U’ girders. enabling structures assuring
• End-to-End design and engineering capabilities for all effective utilization and
offerings including feasibility, detailed project report, seismic asset management.
qualification, geotech engineering, blast resistance, etc.

Offerings
Metros, Nuclear plants, Hydel projects, Marine
structures, Tunnels, Defence infrastructure and High-
Speed Rail projects

The Mumbai Trans Harbour Link

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power transmission & distribution

Setting us apart
• Providing integrated solutions with in-house design, global • Expertise in executing solar projects, micro-grid
sourcing and digitally enabled delivery excellence. electrification projects.

• Digitally driven, green tower manufacturing units with • India’s first 1200 kV and 765 kV Gas Insulated Substation.
a capacity of more than 1.5 lakh tonnes of tower • Strong reputation and significant market share in the
components per annum. India subcontinent.
• One of the world’s most renowned Tower Testing and
Research stations.
• In-house Battery Energy Storage System containerisation
facility to offer large-scale renewable integration solutions.

Offerings
Design, manufacture, supply, installation and
commissioning of transmission lines, substations,
underground cable networks, distribution
networks, power quality improvement projects,
infrastructure electrification, backbone for fibre optic
infrastructure, solar PV plants including floating
solar, battery energy storage systems, mini/micro grid
projects and related digital solutions

Toshka 2 – Wadi Halfa 220 kV double circuit overhead transmission line, Egypt

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Water & Effluent Treatment Minerals & Metals

Setting us apart Setting us apart

• Array of process technologies for water treatment covering • Provider of one-stop solutions in ferrous and non-
conventional treatment and advanced treatment like ferrous sectors
ozonisation and granular activated carbon. • Dominant player in the country in EPC of
• Proven track record of offering total solutions spanning metallurgical projects
the entire spectrum of the value chain – right from tapping
water through intake structures to tertiary treatment and
safe disposal of the treated effluent through marine pipe.
• Developing and adopting sustainable and innovative Offerings
execution methods e.g., horizontal directional drilling and Leading EPC solutions provider in the fields of
micro-tunnelling for faster project execution. minerals, metals and finishing for large industrial,
steel, aluminium, copper, zinc and gold complexes,
• One-stop solution provider for digital and innovative associated facilities, and the mining industry. The
technology driven solutions in water and wastewater business offers integrated solutions for a wide range
management e.g., hydraulic modelling, leakage of systems and equipment for cement, mining
management, GIS asset mapping, billing and master data and steel sectors, powered by in-house design,
management etc. engineering, manufacturing, construction, and
commissioning capabilities. Key offerings:
Offerings • Mineral Beneficiation
Urban and Rural Water Supply, Industrial Water
Supply, Water Treatment Plants, Sewage Treatment • Iron and Steel Making
Plants, Effluent Treatment Plants, Wastewater • Aluminium, Zinc, Copper, Gold Smelters and Refiners
Collection Network, Desalination, Micro and Lift
• Speciality Conveyors
Irrigation Projects, Water Management, Smart
Water Infrastructure, Plant Water Systems 24x7 • Equipment for Mining, Cement, Material Handling
Pressurised Water Supply, Non-Revenue Water (NRW)/
Unaccounted For Water (UFW)

318 MLD Coronation Pillar Sewage Treatment Plant, Delhi Laminar Cooling System for Rourkela Steel Plant

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HYDROCARBON POWER

Setting us apart Setting us apart

• Industry leading HSE performance • In-house engineering, state-of-the-art integrated
manufacturing facilities.
• Integrated design-to-build capabilities
• Technology collaborations with global leaders like
• In-house engineering centres offering ‘Fit to Purpose’
Mitsubishi Power- Japan, Sargent & Lundy - USA, Howden
engineering solutions with a focus on technology.
UK, Chiyoda Corp - Japan, John Cockerill – Belgium.
• Onshore construction and offshore
• Competency in executing large and complex projects
installation capabilities.
within and outside India.
• Project management resources with experience in
• Major player in new emission-control technologies such as
executing large and complex projects.
Flue Gas Desulphurisation (FGD).
• Strategically located state-of-the-art, all-
weather waterfront Modular Fabrication
Facilities at Hazira (India's west coast),
Kattupalli (India's east coast) and Sohar
(Oman), and an integrated manufacturing
facility at Jubail in Saudi Arabia

Offerings
Turnkey solutions for coal-based and gas-based
power plants, ultra-supercritical and supercritical
Offerings boilers, ultra-supercritical and supercritical turbines,
Full spectrum engineering services (including FEED), Generators, power block auxiliaries, heat recovery
EPCIC, turnkey construction, fabrication and asset steam generators, other critical system, Enviro
management services for oil and gas extraction solutions - FGD, electrostatic precipitators (ESP) and
and processing, petroleum refining, chemicals selective catalytic reduction (SCR) total plant design
and petrochemicals, fertilisers projects; cross- and engineering, construction
country pipeline and terminals (including for LNG
regasification) as well as offshore wind farm projects

Ammonia-Urea Plant for HURL at Sindri, India 400 MW Bibiyana-III Combined Cycle Power Plant, Bangladesh

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Heavy Engineering DEFENCE ENGINEERING

Setting us apart Setting us apart

• Providing engineered-to-order equipment, solutions and • Proven command and competence for more than
critical piping to various industries three decades
• Technology-driven, quick turnaround solutions for Process • Offers specialised turnkey defence construction solutions
Plants offered by Modification, Revamp and Upgrade • Seamless integration of solutions through our IT business
(MRU) business
• Leveraging the digitalisation trends achieving higher degree
• World-class manufacturing of welding automation, enhancing IoT application through
complex with cutting deployment of smart devices on various machinery to
edge technology increase consistency of output, and reduction of cycle times
adopting Industry 4.0 for in a sustained manner.
Engineered-To-Order (ETO)
critical equipment.

Offerings Offerings
Hydrocracker and Clean Fuel Reactors, Renewable Tactical and Assault Bridging Systems, Akash
Diesel Reactors, Fluid Catalytic Cracking (FCC) Airforce Launchers, Medical Oxygen Plants Infantry
Reactor and Regenerator Package, Coke Drums, Combat Vehicle, Productive Welding Processes,
Ethylene and Propylene Oxide Reactors, VAM Army Bridging Systems, BrahMos Systems (Naval),
Reactors, Molten Salt Bath Reactors, Ammonia and Naval Platforms
Methanol Converters, Key Gasification Equipment,
Urea Stripper and Reactor, Carbamate Condenser,
Waste Heat Boiler Package, HP Heat Exchanger, Ti
and Exotic Material Heat Exchangers, Nuclear Power
Equipment - Steam Generators, End Shields, Spent
Fuel Canisters and Casks, Modification, Revamp and
Upgrade (MRU) and Critical Piping Spools

Propylene Oxide (PO) Reactors

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REALTY Smart World &

Communication
Setting us apart
• Total portfolio of ~ 60 mn sq. ft. across residential,
commercial, and retail segments in Mumbai, Bengaluru, Setting us apart
NCR, and Chennai. • Focussed on solutions to make world smart and safe,
• India’s first Transit Oriented Development (TOD), Seawoods providing secured robust state of the art digital infrastructure
Grand Central, offering a unique combination of with latest of communication technology, connecting
millions of operational assets.
commercial and retail business.
• Implemented 27 Safe and Smart Cities with Integrated
Command Control Centre (ICCCs), 2mn+ Smart Utility end
points by leveraging its expertise in IOT platforms, OT Data
Analytics & AI/ML.
• Multiple Data Centres & Cyber Security solutions, Mega
Communications Projects connecting 30,000+ Gram
Panchayats, 5 Metro Telecommunication projects and next
Offerings gen connectivity for Indian Armed forces.
Real estate development offering mixed-use • L&T's Smart World & Communication business has
integrated developments, residential complexes, developed it's own Platforms - Fusion-IOT, NOC and SOC
commercial and retail spaces to provide customised and scalable solutions to clients and
have also developed expertise on several industry platforms.
• Created a unique ecosystem of technology partners across
the world to be able to stitch problem-specific solutions.

Offerings
Safe & Smart Cities across India, Fusion: Indigenous
Command Control Centre for City Operations,
End to End IOT Implementation and Analytics,
Smart Utilities: Advanced Metering Solutions for
Utilities & Pioneering Pre Paid Electricity, Defence
Communication, Data Center and Network
Operations Services, Cyber Security for Operational
Assets & Security Operation Centre, Telecom
Services including 5G, Network Connectivity,
Tactical Communication Systems, SatCom Ground
Stations, Radio Communication & Software Defined
Radios, High Capacity Radio Relays & Helo Deck
Communication Systems

Elixir Reserve, Mumbai GVMC City Operations Center

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Intellectual
Capital
For the business to progress, it
is imperative to continue the
innovation journey to stay relevant.
L&T’s innovation efforts are backed
by advanced technology, helping
it deliver projects which set new
benchmarks within their space. With
a continuous focus on innovation,
design and development, the future is
taking shape in L&T's Technology and
Innovation centres across India. These
breakthroughs are deployed across all
businesses of L&T, ensuring added value
to our customers.

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KEY HIGHLIGHTS OF FY 2021-22

29
Total patents owned

t837 Mn
Total R&D spent

56
Awards won for innovation

37
New products and services developed
through R&D

187
R&D1 design engineers

STRATEGIES IMPACTED

SO-I SO-III SO-IV SO-V

SE-1 SE-2 SE-5

SDGs IMPACTED

KEY MATERIAL ISSUES IMPACTED

−−Corporate Governance
−−Business Ethics
−−Talent Management-Attraction, Retention &
Development
−−Data Security, Privacy, and Cyber Security
−−Quality of Products and Project Delivery
−−Brand Management

1
Includes our core R&D engineers

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RESEARCH AND DEVELOPMENT 2. Shredded waste plastic modified

asphalt mixes for eco-friendly
PROJECTS and durable pavements
Disposal of used plastics has been
1. Artificial Aggregate – An alternative to natural a major cause of concern for many
stone aggregates developed and emerging nations.
Due to growing investments in the infrastructure sector, Plastics are usually non-biodegradable and burning of
the demand for various construction materials like cement, waste plastic emits harmful gases like sulphur dioxide.
steel, aggregates and others is increasing exponentially. Utilisation of used waste plastic as a modifier in asphalt
To conserve natural resources like aggregates, research is roads is an emerging technology to mitigate environmental
being conducted on the development of artificial coarse hazards. Plastic-modified asphalt mixes can be produced
aggregates, using industrial by-products such as fly ash and by two methods - dry process, and wet process. L&T’s
GGBFS (Ground Granulated Blast Furnace Slag) with suitable Construction Research and Testing Centre had taken up
chemical activators to form a solid rock mass. This research a detailed study to evaluate the effect of shredded waste
has been taken up at L&T’s Construction Research and plastic on the mechanical properties of mixes prepared by
Testing Centre. Initial results are encouraging and further the dry mixing process. The study revealed that the addition
research is in progress to improve durability and other of shredded waste plastic has the potential to reduce the
qualities. This green and sustainable product has a wide optimum binder content of the bituminous mixes. A 500m
scope for usage across the construction value stream and trial stretch was constructed with shredded waste plastic
will help enable significant energy savings. modified bituminous mix at the Kancheepuram campus in
2021. Preliminary investigations showed that the modified
mix performed better than the conventional mix, especially
during the monsoons, and further studies are planned to
help push the usage of this mix in future road projects.

R&D Centre for Mumbai-Ahmedabad High Speed Rail Project

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Digital Initiatives
There are 50+ digital solutions that are in production and widely used by thousands of L&T’s operating staff at hundreds of project
sites. Over 11,000 construction equipment are connected, providing real-time visibility into operations of these machines at remote
project sites. This visibility enables improvement in productivity and utilisation of these machines, better maintenance and uptime,
and better fuel efficiency leading to faster work completion and cost savings.

The initiatives highlighted in the subsequent section

have been started in FY 2021-22.

Digital Initiatives across our businesses:

• Smart Glass and Help Lightning: AR-Enabled Remote
Assistance Software, including video collaboration
services, that enables experts to work virtually side-by-
side with anyone needing help, anywhere in the world.
• Smart Cameras and Image analytics: Cloud-based
smart cameras help to monitor project site from a
single dashboard. Smart cameras provide live feeds
which are interpreted by AI Models to detect Safety and
non-compliance of COVID appropriate behaviour,
e.g Vision+
• Workforce Induction and Skills Application (WISA):
End-to-end digital solution for all workmen related
functions encompassing worker profiles, wage modules,
experience records, trade validation, certifications and
accreditations, skill database, health profile, safety
training module, attendance management and workmen
camp management.
• PROCUBE (Project, Progress & Productivity): Tool to
monitor multiple aspects of a project. It captures the
real time day-to-day progress while helping to gauge
workmen’s productivity levels, analysing the project and • VR Training for Safety: Immersive Safety training
speeding up progress. modules for workmen and staff using virtual reality.
• TORQ (Tying, Operation, Revenue, Quality): Quality • Connected Asset: Remote monitoring of P&M
control tool developed to raise NC Observation, RFI equipment for utilisation and conditional monitoring.
inspection, Quality Audit and Laboratory Management.
It helps to monitor and ensure maintenance of quality • POMS (Post Order Management System):
standards across the lifecycle of the project. Collaborative supply-chain accelerator used for enhancing
visibility and tracking of critical vendor milestones from
• SHEILD - EHS Platform (Safety Health Environment PO to delivery at sites.
for Industrial Landscape through Digital): Platform
to evaluate a project’s EHS status, manage EHS processes • Surveys using advanced technologies: Advanced
from inspection checklists to approvals, observations and technologies e.g LIDAR, drones, 3D layer scanning,
audits, PTP, DWP, shut down operation and managing Ground Penetrating Radar etc., are used to conduct
safety observations with checklists, and workflows to surveys to provide accurate project information, enabling
ensure planning, communication and action. efficient design and mitigating risks at an earlier stage.
• Conquer – Quality Inspection Application: Web • eMtrack (Material Tracking): Digital solution that
and mobile-based application to conduct quality facilitates material return and material transfer between
inspection prior to final commissioning. It generates stores, and aids in the reconciliation of materials issued to
quality observations, pour cards, quality walkdown, and various subcontractors in one line and being consumed
customer and executive feedback. against activities.
• Digital Stores: Solution to handle material from issue to • Automation of manual processes: Digital technologies
consumption with proper reconciliation across the project e.g. Robotic Process Automation (RPA), Machine Learning
sites. All material transactions are digitally captured etc., have been used to design solutions to automate
using a mobile application, supported by layers of manual processes and improve productivity.
authentication and workflow.

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Buildings & Heavy Civil Infrastructure

Factories
• Pre-Cast Segment Management System (PCSMS):
Application for tracking the status of viaduct segments
• HR Skill Inventory System:
Man-management solutions like using bar codes. It enables real-time tracking of
mySkill, Resource Assessment production and better traceability of finished segments at
Management & Planning (RAMP), the stacking yard.
and Resource Upskilling through Competency assessment • ConPro: Application for end-to-end tracking of concrete
(RUCA), working in tandem to drive staff skill profiling, supply chain. It enables auto dispatching of orders from
competency assessment, resource allocation and skill batching plants and live tracking of transit mixers.
enhancement capabilities.
• Enabling Structures Tracking Application (ETAP):
• FORM FIT: A solution to track formwork panel utilisation Digital application to track utilisation of all Enabling
and productivity. Structures across project sites by using QR codes. This has
helped to increase the reusability of fabricated items and
Transportation Infrastructure improve tracking of the same.
• Machine Control: 3D GNSS based Machine Control • RebarPro: Application that provides end-to-end tracking
System deployed for Motor Graders and Excavators, of rebar (full length, offcuts, scrap) from store-to-site. This
enabling the equipment to run on auto mode for level
enables faster MIS dashboards creation, waste minimisation
control, with the operator only driving the equipment,
and productivity improvement.
thereby improving the productivity and safety at workplace.
• 3D Volumetric Measurements: Bulk material like
aggregate stocks are measured digitally using drone-
based scanning and volumetric analysis, enabling easy
reconciliation and material planning.

Konkan Railway Mumbai - Ahmedabad High-Speed Rail Project

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Power Transmission & • Fibertrack: Application for tracking and monitoring of

patrollers and Operation & Maintenance of around 16,300
Distribution km of fibre network.
• AI For contracts and engineering: Contract
• Exposure Declaration: Digitalised system to track comprehension includes key clause identification, risk
commodity and currency exposure. quantification, document, and datasheet extraction.
• Pronto: Centralised digital system that takes care of site
invoicing activities by enabling resource optimisation and Water & Effluent Treatment
prompt delivery of services.
• Engineering Optimisation & Calculation Automation • SPRINT: Geospatial solution that helps project teams to
Web-based solution using Python Programming with visualize and track pipe laying activity, including theft
an optimiser engine for migrating structural logic from identification and material reconciliation.
spreadsheets to backend services.
• Time Lapse Camera: Capturing timestamped photos for Minerals & Metals
documentation, visualisation, and monitoring purposes.
• Prapti Bodhi: Scientific planning for businesses based on • Wrench: Centralized platform across EPC with automated
historical data, volume, productivity and sequencing done live S-Curves and progress dashboards that also enables
by the system, based on the project variables. Predicting document management, and communication control across
schedule variances based on progress and trade off analysis all stakeholders.
for course corrections.
• iMPACT: Comprehensive item-wise material and progress
• T-TRAX: RFID-based solution for tracking tower bundles management tool applicable across structural fabrication,
across factories and site locations to improve tower-wise piping and equipment. Material management is controlled
visibility, traceability, and lot completion. through GPS enabled QR codes at different stages of
• Factory IOT: Monitoring of OEE (overall equipment fabrication, storage and erection.
effectiveness) at transmission line tower plants through • eALPS: Centralised web-based portal for quality vendor
IoT data. inspection call management system for vendors to raise
inspection call requests along with its documents.
• Super Procure: Application to raise logistics’ requests
from project sites. The system enables float bids
among 67 registered transporters and helps to prepare
comparison statements online while expediting release
orders to L1 vendors.

400 kV Ibri Izki Transmission Line, Oman 48 MLD Water Treatment Plant, Gadag, Karanataka

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Hydrocarbon
• EPSILON (Integrated Project Management
• Drishti (Enterprise Level KMS): Enterprise level knowledge System): Decision support system for effective project
management system to provide situational guidance and management and control,
capture, store, and extract the information required for applying advanced analytics at
efficient knowledge transfer across the organisation. the enterprise level.
• mCode (Unified Material codification): Unified • Virtual Reality Immersive
material codification system for parametric comparisons, Walkthrough: Virtual reality
benchmarking, data mining and analytics of various immersive walkthrough
material categories to drive procurement cost optimisation. for engineering 3D
models offering efficient
constructability and
maintainability
review for Operation &
Management teams.

Gas Production Modules fabricated at LTHE’s Oman Facility for

Hasbah II 3-D model of Farabi Petrochemicals at Yanbu, Saudi Arabia

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Power Heavy
Engineering
• Metal Deck Profile Selection:
Application to help select the optimal
• One-man multiple stations:
metal deck profile
One man operating multiple
• Digital Radiographs Inspection smart welding stations has
using AI: Auto AI-enabled radiograph been successfully implemented
interpretation in the weld joints. at AMN Heavy Engineering
• Price benchmarking: Smarter supply chain system using Complex, leveraging wireless technology as part of the
ML based parametric price discovery model for commodity Autonomous Welding Project.
items like cables, cable trays, valves, and pipes. • PDM (Predictive maintenance) application module:
Implemented for first time by the business on TITAN DHD
(deep hole drilling) machine, this application delivers
capabilities like early failure reduction, reduced spares
consumption and improved OEE (Over Equipment Efficiency).
• Additive manufacturing: The business has leveraged 3D
printing technology to make prototypes for development
projects, thereby significantly reducing development cost

225 MW Sikalbaha Combined Cycle Power Plant, Bangladesh Heavy Engineering's digital initiatives

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Defence Engineering proactively identify interferences through dynamic motion

analysis of ship-in route and generate digital templates of pipe
spools thereby avoiding physical templating.
• IoT of Welding Robots with Digital Report book:
Planned / unplanned downtime and calculating OEE (Over • PLM CAD Integration: Integration of PLM platform
Equipment Efficiency) with the help of an IoT data logger with native CAD software improves the efficiency in D&E
for descriptive analysis. functions and brings better change management.
• Monitoring Execution: Work Allocation System enabling • Armoury: Provides the interface to search surplus material
QC engineer to track First Person Responsible (FPR, viz lying in closed projects with different attributes such as
fitter, welder and electrician) while undertaking inspection make, size, grade, vendor, etc thus improving the possibility
and develop person-wise First Time Right (FTR) data. of alternate use of inventory.
• GST Auto-reconciliation: RPA BOT along with ERP • Smart Quality Management System: ERP based Smart
customisation provides automated GST reconciliation Quality Management System assists in integrated way of
capability to avoid IDT losses. planning in design, material, production and quality functions.
• 3D PDF for design information: Area-wise cabling • RPA Load Balancer: In house developed BOT-based
information shifted from 2D based AutoCAD files to 3D load balancing system to distribute RPA tasks to various
embedded PDF files which facilitates viewing the cable virtual machines.
routing with its complete inventory in a 3D environment
from a desktop computer instead of a high-end workstation. Realty
• Artificial Intelligence-Machine Learning: Database of
pipe spools created using content extraction from queries • MY LTR App for Brokers: Enhanced dynamic interaction
of projects executed previously through natural language with brokers for complete life cycle, resulting in reduction
processing and text analysis. This enables a project planner in broker registration and payment TAT, improved
to visualise the entire pipe spool lifecycle in a timeline sheet transparency with leads and bookings sourced, improved
with all the queries and inspection data and assists the collaboration for new project launches.
execution team to predict the cycle time for future projects.
• LTR Konnect: Centralised HR portal for smooth interaction
• Digital Twin: Laser scanning and digitalisation concepts
with employees. The portal provides learning and training
extended to create digital twin models of the platform where
opportunities in digitisation, analytics, data driven decision
onboard inventory is being scanned for generating 3D models
making and process excellence.
and integrating them in the composite model. This helps to

L&T Tech Park, Bengaluru

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Smart World & Case study

Communication
Ease of living of citizens through Pune
• i-Survey: End-to-end point of presence survey Smart Elements project
management solution with mobile app capturing survey
data, latitude & longitude, photographs and online Brief description
approval system leading to improved productivity and • Flagship technology infrastructure and a pan-city project
performance in SCM. consisting of Integrated Command and Control Centre
• i-Attend: Mobile-Based attendance punching and (ICCC) along with 732 smart elements across Pune.
monitoring solution for Linear Projects with scattered • Enables the city administration and its stakeholders to make
project locations. informed decisions with real-time data and deliver effective
• SmartPro-Planning: Customised and smart project governance.
monitoring tool providing integrated view of project • Institutionalise data driven decision making across levels of city
progress status (Financial and Physical Progress) with functionaries for regular operations and during crises.
dashboard and reports in terms of scope vs progress
on design, procurement (po + delivery), installation, • Enhancing collaboration across multiple departments
integration, commissioning and go live. within and outside urban local and government bodies.

• SmartPM Solution: End-to-end Smart Meter Project • ICCC provide insights using data for civic officials across
Management Solution with mobile App & QR Code urban functions through the deployment of sensors across
Scanner for Consumer Indexing, Smart Meter installation. the city.
• Smart elements installed across Pune: City Wi-Fi, Emergency
Call Box, Public Address System, Environmental sensors,
Flood Sensors, COVID Management through ICCC
1,000+ Impact
cases registered via emergency call box; emergency calls
response time- 10 seconds and resolution time – 10 • Total Data consumed: 19.81 TB per month
minutes for incidents recorded (accidents, police and • Critical Zones with average AQI > 200 observed and
medical emergencies) reported with Environment Monitoring Sensors deployed in
50 locations
• 100 + Incidents recorded using flood sensors deployed at
50 locations
187,410 citizens • PA system - audio message related to COVID-19
using free monthly Wi-Fi facility broadcasted live every 30 minutes using PA systems
between 7 am to 10 pm daily

Moradabad Command Control Centre

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Human
Capital
Our human assets play a key role
in seamless driving of operations
in today’s ever-evolving business
environment. They deliver
projects and business solutions
effectively on time, every time.
At L&T, we have always strived
to create an enabling work
environment that encourages
continuous learning, promotes
inclusivity and equality, while
ensuring a healthy and
safe workplace.

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KEY HIGHLIGHTS OF FY 2021-22

52,155
TOTAL EMPLOYEE STRENGTH

37,966
ENGINEERS

33 years
MEDIAN AGE OF EMPLOYEES

8.37
AVERAGE TRAINING HOURS PER EMPLOYEE

4.96 Mn
SAFETY TRAINING HOURS

STRATEGIES IMPACTED

SO-I SO-II SO-III SO-IV SO-V

SE-2 SE-4

SDGs IMPACTED

KEY MATERIAL ISSUES IMPACTED

−−Corporate Governance
−−Business Ethics
−− Employee and Workforce Engagement, Wellbeing,
Health & Safety
−−Human Rights and Labour Conditions
−−Skilled Manpower
−−Talent Management-Attraction, Retention and
Development
−−Diversity, Inclusion and Equal Opportunity
−−Brand Management

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LEARNING & DEVELOPMENT

Corporate Learning & Development (L&D)

L&T is an 80+ years old Indian multinational conglomerate.
It carries a workforce that is multi-generational, drawn from
diverse ethnic and cultural backgrounds, and brings with it a
rich mix of educational and professional experience.

Continuous learning is one of the highly treasured values

of L&T. This gets addressed through a well laid out L&D
Strategy. Building a leadership pipeline to enable growth and
business continuity is one of the strategic enablers of the
Company. This includes attracting and retaining top talent,
but more importantly, it emphasises L&T’s deep-seated culture
of ‘home-grown’ talent. Over the years, L&T has prospered
manifold in terms of executing green-field, mega/complex
projects including Smart Cities, Mumbai Trans Harbour
Link, Airports under the Government’s UDAAN scheme,
the landmark construction of the Statue of Unity and the
most recent – India’s first Mega Bullet Train Project valued
at ¢25,000 crore. This extraordinary feat requires a sound
foundation of well-honed internal talent. Built on the foundation of these three pillars, the
L&D strategy has multiple facets like:
L&T’s L&D Strategy is centred on three pillars: 1. Grow Within – Focus on grooming and developing
talent internally.
• Anchored to Dynamic Business Needs: L&D offerings
are strongly aligned to the needs of the business over three 2. Built to Last – Design deep-rooted interventions,
major career archetypes – Business Leadership, Technical adaptable to changing needs, that can sustain over long
Leadership, and Project Leadership: periods of time.
3. Best Practices + Next Practices – We position our
Leadership Archetypes interventions on time-tested design principles. At the same
time the pedagogy we use, keeps pace with the latest
approaches in Project, Technical and Behavioural Education,
e.g., blended learning is a big part of our offerings in all
career archetypes.
4. Partnering for Growth - It is said “If you want to go
Business Technical Projects far, go together.”. We operate with a very strong internal
Leadership Leadership Leadership and external network. Internally, we are well supported
by Business Leaders, HR Leaders, Business Talent Partners,
and many Subject Matter Experts (SMEs). Externally, we
• Leadership Commitment: From addressing the sessions, collaborate with the best in the world, be it academic
conducting training, to spending one-on-one time for institutes like INSEAD, Michigan Ross, IIMs, XLRI or faculty
mentoring, the leadership’s commitment and investment members / consultantsconsultants such as Prof. Krishna
towards talent development is visible at multiple levels. Palepu - the Ross Graham Walker Professor of Business
• Strong Learning Ecosystem – People, Processes, Administration at Harvard Business School, and Prof Das
Infrastructure: We have a well-established Learning & Narayandas - the Edsel Bryant Ford Professor of Business
Development Team, that focuses on Technical Training Administration at Harvard Business School.
(CTEA), Project Management (IPM), Leadership and 5. Crafting Leadership Journeys – We encourage long-term
Behavioral Training, Centre of Excellence (CoE) for Process growth journeys for our employees. This ensures holistic
Improvement, Digital Learning (ATLNext), Leadership development guided by learning through training, peers,
Development Academy (LDA), etc. and on-the-job conditioning, supplemented by structured
inputs through one-on-one coaching and strategic action
learning projects, e.g., Ascent (Competency Leadership
Development Program for Tier-3 employees)

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L&D Practices to meet Short & Medium-Term Needs L&D Practices to meet Long-Term Plans
7-Step Leadership Pipeline Programmes
Classroom Training (In-Person or Virtual) for
Competency Development
Journey-Based Competency Development Programmes
Webinars Action Learning Projects
Experiential Learning – Hands-on Training, Simulations, AR / VR Management Development Programmes Mentorship
Digital Learning – ATLNext (Technical & Behavioural Modules) Qualification/ Accreditation/ Certification Programmes
RapL (micro-learning platform)

Ascent – Competency Development Journey Corporate Technology & Engineering Academy

(CTEA) Madh and Mysuru
SUMMIT
PHASE - III
Integrated Simulation
Future PoA
CTEAs have state-of-the-art infrastructure and learner
friendly environments, with robust processes to design
Strategic and deliver technical, functional, and business specific
Imperatives
Live Online / In-person
Engage Learning Partners training programmes in a healthy and pollution-free
CLIMB

Simulations
Journaling Act
environment. In addition to excellent classroom facilities,
Peer-learning both the academies lay emphasis on providing hands-on
PHASE - II Think training to the participants through various labs / hands-on
BASECAMP
Orientation areas, like manufacturing excellence lab, CAD & Safety lab,
Preliminary Assessment
Participative Goal Setting
Digitalisation lab, Prestress Technology, IoT, PLC, Robotics,
PHASE - I 3D printing, GD&T, etc. CTEA provides Training &
Competency Building services to many L&T businesses
Apart from these established processes, there are additional including Construction ICs, Defence Engineering,
measures taken to ensure People Development Needs are Hydrocarbon, Power, Heavy Engineering, L&T Technology
identified and addressed regularly. The following forums Services, Nabha Power, MHI, L&T Infotech, Valves & Process
viz. Talent Partners Meet, CoE Partners Meet, ATL Partners etc.
Meet, HR Council, DC – i-LEAD keep the interaction on
People Development alive and updated. We also participate
Employee development at these academies is
in external industry forums for benchmarking, gaining
focused on various levels:
knowledge and networking. We get outside-in perspectives
on current and future talent development trends from • Level 1 includes young recruits such as GETs, DETs and
such forums. FLS (Frontline Supervisors). It focuses on skill enrichment
of freshers, wherein technical orientation and hands-on
experience are offered to Graduate Engineers Trainees
(GETs) from various L&T businesses to make them
198,975 industry ready. As a part of their orientation, CTEA
Courses conducted in FY 2021-22 organized online sessions with a blended approach
against 187,575 in FY 2020-21 for latest batch of GETs. Some of the key highlights
include virtual labs, mini projects, videos and effective
presentations. Another focus area in Level 1 is the
4.36 lakh hours transformation journey of fresh Industrial Training
Institute (ITIs) to be converted into responsible FLS.
of courses conducted in FY 2021-22
CTEA also design and deliver domain-specific survey and
quality modules and impart technical and functional
3,276 hours modules, to meet the current business needs.
of training on Human Rights provided
• Level 2 training is aimed at Competency Development
in FY 2021-22
needed by employees to hone their knowledge and skills at
their workplaces. CTEA conducted 162 virtual programmes,
~20,000 covering 12,540 working professionals, which include
niche programmes like Behaviour Based Quality, Advanced
L&T executives trained in Project
Management at L&T IPM Hydraulics, 5G Architecture, DMEA & Certification
programmes on topics like Riggers, Scaffolding, Stores
Management, etc.

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CTEA has also customised some key programmes to a platform to nurture and encourage innovators, where
meet changing business requirements, these include the engineers had to pen-down their ideas to resolve any
Vendor Development Initiative, which involves formation of challenge at work.
taskforces comprising CTEA and Project Heads across ICs to
identify Entrepreneurial functions required for construction Digitalisation & Process: AR-based mobile application on
works, so that vendors can start and build their own Wall & Column System module - an immersive self-paced
successful business. A one-of-its-kind, six-day programme learning mobile application for detailed visualisation of the
was designed and executed at Mumbai and Delhi, covering concept created with completely gamified outputs on mobiles
40 sub-contractors. to create an enriching interactive experience.

CTEA also organises several technical professional Any Time Learning (ATL): L&T has established a scalable,
engagements and motivational annual events like the CAD multi-featured and externally-integrated Digital Learning
Fest, Technology Conclave, Virtual Technical Summit, and Platform called ATLNext. It offers a gamut of online courses
Technology Day Celebrations. An innovative engagement including competency courses, behavioural courses, and
activity named ‘Learner Premier League’ was organised to business-specific technical courses to meet the unique needs
motivate L&T-ites to hone their existing skills or acquire new of the learners.
skills the `IPL WAY.’ It was a two-month online engagement In FY 2022, we have tied up with globally renowned
activity as part of the calendar programme to enhance learner content providers such as Skillsoft and Coursera to provide
experience, which helped leverage group activity across multi- training content to employees, while continuing with many
disciplinary teams, increased engagement with the learners existing content providers like Harvard Manage Mentor
during the COVID-19 period and brought a fun element by (HMM) and EBSCO. We have also implemented a unique
breaking the monotony. AI/ML technology-based communication fitness coaching
programme to improve work-related communication skills
CTEA also organised a virtual event ‘Engineering Through
of target employee groups. All the offerings of ATLNext
my window’ on Engineers Day, to recognise innovations
culminated into 2.7 lakh hours of learning clocked by L&T
in engineering across the organisation. The event provided
employees through digital learning.

L&T's Leadership Development Academy. Lonavala

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Leadership Development Academy DIVERSITY & INCLUSION

Our Leadership Development Academy (LDA) is situated in
the tranquil environs of the popular hill station, Lonavala. L&T continues to be an organisation where diverse
Established in 1997, it offers an appropriate ambience for workgroups come together to contribute towards creating
learning and development. It was born out of the vision to a better world. The multi-generational and multi-cultural
fulfill the constant demand of L&T-ites for a holistic learning workforce works in harmony to achieve the organisation’s
centre that will help manage their training programmes results. The Company has employees from 46 nationalities,
better. Even after 25 years, the Academy continues to be the including Indians and more than 80 languages are spoken
preferred training destination for the L&T group. across project sites and offices. Within India, L&T has
employees from 28 states and 8 UTs.
The residential academy is equipped with great infrastructure
to conduct various types of training programmes. It can Ref: The short film Symphony https://www.youtube.com/
accommodate multiple levels of leadership programmes at watch?v=Grb-4czOWzA
the same time. This campus is one of the few places in the
country that have been designed exclusively to meet our To further enhance inclusion of diverse workgroups, we have
growing demand and training. Green design with energy- launched a special initiative WINSPIRE. In the first year, the
efficient outfits and water-efficient measures are some of the focus was to induct, engage and develop more women.
important features of this world-class Academy. The IGBC 24% of Graduate and Post Graduate Engineer trainees hired
Platinum Certification and CII Award winning energy efficient in 2021 are women. Various interview sessions and panel
campus is a testimony of our conscious attempt towards discussions were organised to engage the women workforce.
sustainability. We have also introduced ESG training at LDA Leadership Development Programmes for Women Employees
this year. LDA recognises that learning happens through ‘WINSPIRE RISE’ and ‘WINSPIRE PROPEL’ were launched,
discussions/debates in classrooms, in the privacy of a library, covering 110 participants across L&T. This will help to build a
or in the relaxed atmosphere of a recreation room. This steady pipeline of women leaders going forward.
integrated facility provides all these advantages to nurture
thought leaders and entrepreneurs of the future.

3.16% Share of women in

senior management 27.46% of personnel with
10+ years in L&T

Institute of Project Management, Vadodara

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Non - unionised workforce number New Joinees (age-wise and gender-wise)

(age-wise and gender-wise) Data as at March 31, 2022
Data as at March 31, 2022
Gender AGE Total Gender AGE Total
<30yrs 30-50yrs >50yrs <30yrs 30-50yrs >50yrs
Female 1,540 1,549 149 3,238 Female 540 141 2 683
Male 15,341 29,356 4,220 48,917 Male 3,275 1,686 107 5,068
Grand Total 16,881 30,905 4,369 52,155 Grand Total 3,815 1,827 109 5,751

Attrition (age-wise and gender-wise)*

Data as at March 31, 2022
Gender AGE Total Attrition %
<30yrs 30-50yrs >50yrs
Female 310 190 3 503 15%1
Male 1,738 2,306 172 4,216 8%
Grand Total 2,048 2,496 175 4,719 9%
*Excludes superannuated staff

1. P ersonal reasons (including family related, marriage & relocation),

further studies and career prospects account for higher attrition
rate in female employees.

Employees covered under Leadership Development Programmes (does not cover Leadership Development
programmes done by the businesses)
Consolidated training break up
Programme types Total programmes By internal faculty By external faculty
Leadership Development 6 0 6
Core Development 53 2 51
Competency Development 66 12 54
Calendar 177 50 127
Accreditation 2 0 2
HR for HR 1 1 0
Business Requirements 76 2 74
Webinar 65 1 64
Operational Excellence 41 41 0
Safety 10 10 0
TOTAL 497 119 378

Leadership Development Programmes

310 3,584
participants training man days

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We have been undertaking numerous awareness sessions on representatives, as well as union members. These committees
issues pertaining to Human rights across the Company; viz facilitate specific safety objectives, in line with the Company’s
part of employee induction, EHS training and so on. In FY ‘Mission Zero Harm’ goal. In the collective bargaining
2022, we initiated specific Train the trainer programme on agreement, specific clauses related to health and safety are
Human Rights. incorporated as well. In addition, workers have a Safety
Ambassador at sites who helps them to raise safety issues
directly and in turn, the Ambassador communicates good
HEALTH & SAFETY health and safety practices to workers.
Safety dashboard FY 2020 FY 2021 FY 2022
This section complements with BRSR
Severity Rate 204.29 143.60 140.23
Principle 3 i.e. Businesses should
respect and promote the well-being Frequency rate 0.11 0.10 0.11
of all employees, including those in Fatality 41 25 25
their value chains

Our Goal Accredited Safety Management Systems

Mission Zero Harm is to ensure all L&T workplaces, offices Regular auditing is conducted for our safety management
and premises are safe and without hazards. This commitment systems through accredited external and internal lead
extends to all our contractors and suppliers working on auditors to maintain the standards for continued accreditation
our behalf at our project sites or premises. L&T’s Corporate of ISO 45001:2018. Internally accredited lead auditors
EHS Policy defines the commitment to Health & Safety and ensure that all operations maintain the standard, adopt,
Mission Zero Harm through a structured Corporate EHS and share best practices and innovation across our ICs.
framework supporting our EHS procedures and guidelines. Our EHS Council monitors and measures compliance with
corporate procedures. Major supply chain contractors and
Top-Down and Bottom-Up approach for subcontractors are audited before awarding any contracts
Contractors and Suppliers to ensure that safety standards are maintained throughout
the contract duration. In addition to this, the EHS Council
Our contractors and suppliers are evaluated on their audits each IC on the implementation of procedures. L&T’s
safety infrastructure and assessment through auditing at safety management systems across the business are also
our projects. A comprehensive understanding of safety supported by internally developed Safe Operating Procedures
requirements is imparted to contract workers at our (SOPs), which are fully endorsed by the L&T EHS Council.
construction sites through initial health and safety induction It is important that every business, through their Safety
training. This is followed with specific activity training on risks Management Systems (SMSs) sets targets and objectives to
with refresher sessions supported by skills enhancement- achieve the Zero Harm goal. The business undertakes a risk-
building programmes. based approach to all activities auditors, ensuring that the
standards are being maintained, and identification and sharing
The importance of workmen safety and wellbeing on all our
of best practices and innovation, particularly in digitalisation is
contracts is crucial to the culture of our ‘Mission Zero Harm’
implemented across all L&T businesses.
goal. At our manufacturing locations and project sites‘, safety
committees are constituted comprising senior management

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Digitalisation in Health and Safety

Artificial Intelligence (AI) is being used as a prominent solution
for the identification and prevention of unsafe acts and
conditions, while further enhancing our Building Information
Modeling (BIM) in Safety. We plan to increase the use of 3D
models in more construction sites for scaffold erection and
dismantling and introduce more VR modules. In remote places,
the use of drones has been applied to identify safety hazards,
without the necessity of putting people at risk. Continued
focus on digitalisation allows us to move further to the
‘Connected EHS Manager’ and the ’Connected Workman’ as
we continue to push boundaries and standards in safety to
significantly improve our safety performance. We continue to
develop VR-based training modules with digitalisation playing
a critical role in the identification and reporting of unsafe
acts/conditions. Specific training incident investigation allows
us to fully understand the underlying causes and implement
necessary steps to prevent re-occurrence. Further details of
digital initiatives undertaken in health and safety have been
covered in Intellectual Capital.

Behavioural-Based Safety & Well-being

The EHS Council has developed a Behavioural-Based Safety
(BBS) Programme that is implemented across all businesses.
External BBS providers such as DuPont continue to assist
in further developing an integral safety culture in all our
businesses at all levels and their understanding of risk.
Introduction of the Safety Task Analysis Risk Reduction Talk
(STARRT) Card and Hazard Identification Tool (HIT) Card have
encouraged all employees to report hazards observed and
ensure that action is taken.

L&T recognised the importance of mental wellbeing and

undertook awareness campaigns and programmes for the
same. Projects progressed to having counselling availability and
personal wellbeing initiatives when working away from home.

Furthermore, climate change is not only affecting projects

and their timely delivery but workers are also facing higher
Emergence from COVID-19 Pandemic fatigue due to rising temperatures. Fatigue Mitigation Plans
are implemented and enhanced with medical awareness and
L&T provided full vaccination cover for all workers and medical checks to lessen the impact on workers.
optionally extended the same to their families. Continued
monitoring of workers across the business ensured the spread
Safety and Organisational Culture
of the virus was controlled. L&T’s Crisis Management Team
(CMT) proactively continues to monitor and manage health Every business organises several initiatives and campaigns to
and safety initiatives across businesses, facilities, and projects. spread awareness of safety among our employees, workforce,
and suppliers. L&T dedicates the first month of the year to
Apart from putting processes in place to maintain real-time Safety. Every year, a theme is agreed at the corporate level
communication, the continued use of AI to monitor our which supports the drive to Mission Zero harm. The theme for
projects 24/7 to detect and prevent unsafe situations and 2022 was ‘‘Do it Right, Do it Safely, Do it every Day’.
behaviour has enabled real time reactions to risk analysis.
Further, use of mobile safety apps are ensuring this type of • The CEO & MD and the Executive Directors communicate
real-time reaction and compliance, further improving our the overall direction and priorities
compliance without the need for delayed direct interaction.
• Fire Service Week: Prevent fires, prepare yourself,
Search engines provide direct access to doctors and medical
promote safety
facilities through mobiles.

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• National Safety Week: Reinforce positive behaviour at the Safety training

workplace to achieve safety and health goals
In line with L&T’s progressive safety initiatives and
• Developing innovative programmes: Groom fresh Diploma innovations, a comprehensive safety training programme
Engineers to perform the role of EHS professionals has been developed to enhance safety awareness for all
• Safety Awareness Programmes in specialised areas of employees. Training modules have been developed into
tunnel, marine and launching girders in our metro, online sessions, with both internal and external faculty.
transportation, and special bridges business units
Projects undertake specific training and apply the ‘Lifetime
During the Safety Month, cross-functional safety audits, Learning‘ approach where specific workers can undertake
along with 'train-the-trainer' programmes are conducted. and be trained in a specific area. Virtual Reality training
The objective is to progressively ramp up site-based safety modules for our workmen across the board give a new
capabilities. We recognise the efforts of individuals for dynamic to safety training. To overcome any disabilities or
their contributions to safety across projects through various language difficulties, our training includes interactive tests
rewards and recognition schemes. and sessions where a 3D screen and AI provide attendees
with the opportunity to apply and test their learnings from
the interactions.

On-site safety training through ’Induction Vans’

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Social and
Relationship Capital
L&T strives to promote initiatives
that enhance the quality of life for
communities in and around the areas
where the Company operates. L&T has
been working towards the social and
economic development of communities
around its premises and at various
locations across the country long
before the CSR section was introduced
in the Companies Act 2013. Building
on over eight decades of social
responsibility activities, the Company
has a well-entrenched CSR programme
that contributes to inclusive growth
by empowering communities and
accelerating development
through interventions in water
and sanitation, health, education,
and skill development.

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KEY HIGHLIGHTS OF FY 2021-22

1.13 mn
LIVES BENEFITED THROUGH OUR COMMUNITY
DEVELOPMENT PROGRAMMES

STRATEGIES IMPACTED

SO-II SO-V

SE-2

SDGs IMPACTED

KEY MATERIAL ISSUES IMPACTED

−−Customer Experience and Satisfaction
−−Corporate Governance
−−Business Ethics
−−Employee & Workforce Engagement, Wellbeing,
Health & Safety
−−Human Rights and Labour Conditions
−−Sustainable Supply Chain
−−Diversity, Inclusion & Equal Opportunity
−−Brand Management
−−Social Engagement and Impact

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social capital
Input Metrics Output Metrics

¢1.36 Bn 1.13 Mn
CSR Spend CSR beneficiaries

45 510,781
CSR Partners Vendors, subcontractors and workers trained

48,168 ¢54.4 Bn
New suppliers and contractors Contribution to exchequer

2,615
MSME suppliers

The activities are brought under the CSR theme ‘Building Drivers of CSR Interventions
India’s Social Infrastructure’ to bring about impactful and
long-lasting social change. 1. Corporate CSR Team: L&T has dedicated CSR teams
at the Corporate level, committed to maximising social
impact. The Corporate CSR team acts under the guidance
Building India’s Social Infrastructure and framework approved by the CSR committee of
L&T aims to improve the quality of life, mitigate social the Board. They devise, execute, and monitor CSR
inequalities, build self-sufficiency, and help individuals achieve programmes, either directly or in partnership with NGOs.
their true potential in the identified communities. 2. CSR coordinator and teams at campuses, area offices,
and sites: Area offices and campus teams perform need-
assessment, identify local projects and NGO partners,
implement and monitor the projects – providing support in
achieving stated CSR goals.
3. L&Ts Health Centres: L&T’s multi-specialty Health Centres
Water and Sanitation Education
and their professional staff are equipped to provide
outpatient and tertiary health services by reaching out to
the underprivileged communities and making health care
accessible and affordable to them.
162,341 260,295
4. Prayas Trust: Run by the female spouses of employees
Lives Impacted Lives Impacted
and women employees to provide services to the
underprivileged sections of society located around various
Health Skill Development L&T facilities.
5. Volunteers: L&T-eering, the Company’s structured
employee volunteering programme enables and
encourages employees to participate in community
690,321 14,587 development activities. Volunteers invest their time in
Lives Impacted Lives Impacted programmes that benefit underprivileged communities.

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6. L&T Public Charitable Trust (LTPCT): Established in L&T’s COVID-19 Care

2004, LTPCT has been undertaking projects to facilitate
sustainable development of society through initiatives in the L&T was at the forefront of responding to the COVID-19
threat, with prevention and treatment related initiatives
realms of vocational training, water management, holistic
for affected individuals. The Company supported the
development of children and healthcare in the marginalised Government’s efforts during the pandemic by strengthening
communities. Employees' contribution and management health infrastructure, providing preventive gear and supplies
grant from L&T have made the institution a not-for-profit for frontline workers, as well as donating testing, diagnostic,
entity within the conglomerate. LTPCT benefits from the and treatment equipment.
support and in-house expertise of various L&T companies to
design and deliver its programmes for the community. L&T reached out to 10 states in India and contributed
around ¢ 337.7 Mn for COVID-19 Relief.

Personal Protective Hospital Equipment

32 oxygen generators, over 1,750 bedside ventilators, mobile
Equipment x-ray units, ambulances, portable laboratories, thermal
scanners, pulse oximeters, High Flow Heated Respiratory
PPE Kits, Ply Masks
Humidifier and Cannula, Fowler beds, and CPAP machines

Integrated Community Development Programme

The Integrated Community Development Programme
(ICDP) of L&T started in FY 2014-15 to improve the
availability of water. Two projects in Tamil Nadu have been
handed over to people’s institutions for sustaining the
work initiated by the project.

Rajasthan, Maharashtra
and Tamil Nadu
States covered

23,907 36,181 ha
Households covered Area covered

The ICDP starts from need assessment of the location and

follows a systematic community organisation strategy. These
include mobilising people around the problem, forming
village development and monitoring committees, creating
awareness about saving water, building civil infrastructure to
help water and soil conservation, ensuring its maintenance
by the community, providing sanitation facilities with people’s
contribution in terms of labour, encouraging climate resilient
and sustainable agricultural practices and building capabilities
of the local people to use the resources judiciously.

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7.7
Infrastructure Depth of water from land surface (metre)
As a part of the intervention, structures like check dams, 7.7
6.0 6.0
anicuts, contour trenches, farm bunds and farm ponds were
constructed with participation from the community. These 5.3
structures, along with other sustainable agricultural practices, 6.0 6.0
helped increase the water level in water bodies, and retained 5.3
soil moisture. 3.3

3.3
Water Resource Development through
Farm Ponds

Interventions: Construction of farm ponds, Well SEWANTRI

cleaning, lining and parapet construction
SEWANTRI
Area: Nagzari and Chambharwadi village in Jalana
district of Maharashtra
7.7
22.0
7.7 14.2 20.2
13.7
487 households in Sewantri benefitted
6.0 6.0
22.0 17.6
Storage 6.0
capacity: 46.196.0
lac litres 20.2 5.3
5.3 9.7
17.6
8.0 11.2
10.33.3 7.7
The depth of water from land surface has increased in
3.3
Sewantri due to 43% less than average rainfall in 11.2
FY 2021-22, as indicated in the graphs alongside. 10.3

SEWANTRI
NAGZARI
SEWANTRI DEVGAON

NAGZARI

22.0 914.0
245.2
22.0 20.2
20.2
17.6 914.0
17.6 654.0
180.0
606.0 612.0
156.4
461.0 131.4 654.0 11.2
612.0 10.3
11.2 116.6 606.0
10.3
461.0

DEVGAON
NAGZARI
NAGZARI SEWANTRI
DEVGAON
Baseline Target FY 2019-20
FY 2020-21 FY 2021-22
914.0
Baseline Target FY 2019-20
914.0 1,076.0
FY 2020-21 FY 2021-22 950.0
950.0
903.0 654.0
182 606.0 612.0
654.0
606.0 612.0
Corporate ManagementSEWANTRI Integrated Statutory Financial DEVGAON
Overview Discussion and Analysis Report Reports Statements
DEVGAON

7.7
Increase in14.2
Irrigated Area (ha) 14.2
22.0
13.7 13.7
Changing the financial landscape of245.2
a village
6.0 20.2 6.0 245.2 Name: Hassan Pathan
5.3 17.6 9.7 9.7
180.0 village, Devgaon, Aurangabad,
Location: Georai Marda
180.0 8.0 Maharashtra 8.0 156.4 7.7
7.7
131.4
3.3 11.2
156.4 116.6 473 individuals with 90 households
Demography:
10.3
131.4
116.6 Problem: Dependent on rain-fed farming, and irrigation
from open wells, allowing the farmers to cultivate a
single crop every year

Intervention: Civil interventions like farm bunding, farm

SEWANTRI
DEVGAON ponds, ravine deepening
DEVGAON

NAGZARI
Impact: GroundwaterSEWANTRI
recharge, improved crop yield,
SEWANTRI annual income of ¢ 54,250 cultivation of 2 crops
245.2 245.2

500+ farmers
22.0
20.2 914.0 1,076.0
Overall beneficiaries in the region 950.0 950.0
180.0 17.6
1,076.0 180.0
903.0
156.4
950.0 950.0 156.4
903.0 654.0
606.0 612.0
131.4 131.4
116.6 11.2 116.6
Water Distribution
638.0 System
10.3
461.0
638.0 To provide water security to all beneficiary families, water
distribution schemes are introduced. The households are
provided with adequate piped water supply within or nearby
the household premises to relieve women and girls from the
drudgery of fetching water.

NAGZARI
SEWANTRI Capacity Building SEWANTRI
DEVGAON NAGZARI
In all the ICDP locations, the communities were trained
NAGZARI to facilitate optimum, equitable, and efficient water use
Baseline Target FY 2019-20 and implement other agricultural methods and technology
914.0
to increase the yield. Farmers were trained in agricultural
1,076.0
FY 2020-21 1,076.0
FY 2021-22
950.0 practices that required minimum use of water950.0 along with
950.0 950.0
903.0 techniques to prepare low-cost organic
903.0 manures that retain
the land’s fertility.
654.0
606.0 612.0
638.0 638.0
461.0

DEVGAON
NAGZARI NAGZARI

Baseline Target FY 2019-20

FY 2020-21 FY 2021-22

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Integrated Annual Report 2021-22

Promoting sustainable and climate resilient Cultivating rewarding agricultural practices

agriculture: This intervention is aimed at reducing
the input cost of crops and increasing the yield by Name: Jaydeep Ramrao Rathod
promoting organic methods of cultivation. Location: Devgaon Tanda, Maharastra
Challenge: Usage of chemical fertilisers, huge cost,
Region: Devgaon, Jalna District, Maharashtra adverse effect on land fertility
Overall impact in the region: Intervention: Promotion of multilayer farming, farmer
Savings on cost of fertilizers by 30-35% training and demonstration of organic farming under the
120 Farmers benefitted guidance of Project Agronomists
Savings of ¢300-400 a week through the sale of organic Impact: Increase in harvest and income of the family, 13
vegetables quintals of wheat, priced at ¢ 4,000/quintal

Enhancing Nutrition
Under this component, women were given good quality
seeds of indigenous species of vegetables. They were
encouraged to grow a kitchen garden that provided fresh,
nutritious, and organic food to the household to meet
their daily nutritional needs. During FY 2021-2022, 150
households benefitted through kitchen gardens.

Sowing the seeds of positive change

Location: Sewantri, Rajasthan
Challenge: Low-Income generation due to bad quality Institution Building and Sustainability
of seeds
Community groups like Village Development Committees
Intervention: Social interventions like providing good (VDCs) with 50% participation from women, Farmers’
quality indigenous seeds groups, and Self-Help Groups (SHGs) were created.
Impact: In FY 2021-22, 150 households benefited, the
yield increased from 4.4 quintals/ha to 6.74 quintals/ha
and the average household income has increased from COVID-19 Vaccination: Awareness generation and
¢6,006 to ¢19,808 vaccination through SHGs using audio/ video messages
on social media.
Result: Vaccination of 1,347 people

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Overview Discussion and Analysis Report Reports Statements

Making hay whether the Sun shines or not

Location: Alamgaon Village, Nagzari, Maharashtra
Demography: 272 households, Population: 1,558
Intervention: Training and awareness on climate resilient agricultural practices
Impact: The formation and capacity building of Village Development Committees (VDCs) and other village institutes for
governance,. Federation of SHGs led to the process of forming Farmer Producer Group and selling of farm produce at
fair prices with the support of Government schemes. Farmer Producer Group [Swarajya Shetkari] initiated on
September 30, 2020 with a membership of 300 people.

Paradigm shift in gender perspective through women leadership

Selection of a woman candidate as President in Village Development Committee. This paradigm shift brought confidence
among women and empowered them to make decisions.

Empowering women through SHGs and Impact:

capacity Building
• 46 SHGs linked with banks and total of ¢7.6 Mn worth
Region: Sewantri, Rajasthan loans mobilised by the SHGs
No of SHGs: 78 • 15 Pashu Sakhis developed to cater to the health of goats
No of participants: 1,254 women • 435 women engaged in vegetable cultivation,
Role of SHGs: Better access to savings and credit facilities packaging and selling in local markets; 678 engaged
for income generation, provide loans to their members for in goatry; 27 women earning through purchase of
health, education, and livelihood, provide women with a buffaloes and sale of milk
firm base for dialogue with credit institutes and banks. • 78 micro enterprises set up for individual or small groups
Intervention: Training in financial and digital literacy, SHG of women like grocery stores, flour mills, beauty parlours,
processes and functioning, menstrual hygiene, maternal care sewing and tailoring, etc.
and reproductive health; 208 community meetings conducted
• 70 SHGs have more than ¢3.5 Mn as total savings
Gross Savings: ¢1,895,125

185
 4.5 239.0
5.5 5.5
4.2
4.5
4.2
Integrated Annual Report 2021-22

Impact Indicators
The impact of the ICDP projects that were initiated in 2014 and completed in 2020 is sustained and visible this year by either the
PATHARDI
same/increased level of water in the wells, and area of irrigated land; which is shown in the following ICDP sustainable graphs.
6.5 CHETTIPALAYAM
PATHARDI
5.5 5.5
Depth of water from land surface (metre)
4.5
8.0 4.2
305.0
6.9
268.2 268.2 366.0
305.0
6.0 6.0
6.5 232.0 268.2 268.2
204.0 304.8
5.5 5.5 288.0
262.0 232.0
204.0 239.0
4.5
4.2
PATHARDI

305.0
PAPPAMPATTI
268.2
KUMBHALGARH 268.2
PATHARDI PAPPAMPATTI
CHETTIPALAYAM
232.0
204.0
366.0 909
30.0 893
29.0 29.0 29.1
28.0 812
304.8 366.0
8.0
30.0
305.06.5 288.0 29.0 29.0 29.1
262.0 28.0 673
6.9
304.8
268.2 268.2
239.0 288.0
5.5 5.5
6.0
262.0 6.0
232.0 239.0
4.5
204.0 4.2
366

PAPPAMPATTI

30.0 PATHARDI
29.0 29.0 29.1
CHETTIPALAYAM 28.0
PATHARDI
BHIM CHETTIPALAYAM
PAPPAMPATTI
KUMBHALGARH
BHIM
8.0
Baseline Target FY 2019-20
6.9 90
8.0
FY 2020-21 FY 2021-22 Baseline Target FY 2019-20
305.0
30.0 80
29.0 6.0 6.0
29.0 29.1 6.9
268.2 28.0 268.2 FY 2020-21 FY 2021-22
6.0 6.0 65
232.0
204.0

20
BHIM
12

Baseline Target FY 2019-20

KUMBHALGARH FY 2020-21 FY 2021-22 PAPPAMPATTI

PAPPAMPATTI
KUMBHALGARH
186 BHIM
 288.0
262.0 673
239.0
Corporate 366Management Integrated Statutory Financial
35
Overview Discussion and Analysis Report Reports Statements
366
20.83

PATHARDI
6.5 CHETTIPALAYAM
PATHARDI
CHETTIPALAYAM 5.5 5.5
Increase in Irrigated Area (ha)
4.5
4.2
90 452.6

80 909 394.2 92
6.9 893 90
87
812 350.4
6.0 6.0 65 80
75
673 277.4
65

PATHARDI
366 35
20
12
20.83 20
12
305.0
PAPPAMPATTI 268.2KUMBHALGARH 268.2
PATHARDI 232.0
KUMBHALGARH PAPPAMPATTI
CHETTIPALAYAM
204.0
92
87
909 92
89
75 893
89 87
812 84
90 452.6
89 89
70 75
673 84
80 394.2
350.4 70
53 65
35
53 277.4
366
20.83 35
PAPPAMPATTI

20.83

20
12 30.0
CHETTIPALAYAM 29.0 29.0 29.1
28.0
PATHARDI
BHIM CHETTIPALAYAM

PAPPAMPATTI BHIM
KUMBHALGARH
Baseline Target
452.6 FY 2019-20
FY 2020-21 394.2 FY 2021-22
Baseline Target452.6 FY 2019-20
90
350.4 FY 2020-21 FY 2021-22
80 394.2
89 89
277.4 84 350.4
65
70
277.4

53
BHIM
20
12
Baseline Target FY 2019-20
KUMBHALGARH FY 2020-21 FY 2021-22

PAPPAMPATTI KUMBHALGARH

BHIM 187
Integrated Annual Report 2021-22

Highlights of ICDP programme in three new locations as follows:

Coverage under ICDP in three new locations: Devgaon, Nagzari and Sewantri
Households covered 5,345
Area of land under the project area 10,074 ha
Population 25,208
FY 2022
Water Availability
Increase in water table level 8.88 m
Percentage of household with drinking water 77%
Agriculture
No. of crop demonstrations 65
Area protected from Direct Run-off 3471.54 ha
Increase in area under cultivation / irrigation 53%
Fallow land converted to agriculture land 190.51 ha
Area under horticulture 43%
Health and Nutrition
No. of kitchen gardens 539
No. of children in Balwadis supported 241
Livestock Livelihood
No. of veterinary camps 26
Pastureland area under protection 19 ha
Institution Building
No. of self-help groups (SHGs) active 213
SHG Savings fund created for inter-loaning ¢6.57 Mn
No. of farmers groups formed 26
Capacity Building
No. of farmers attended farm-field trainings 408
Training on subjects • Water budgeting
• Improved Kharif and Rabi cropping
• Horticulture wadi development
• Zero-budget natural farming
• Best practices on grains, pulse, vegetable nursery and fruit orchards.
• Seed treatment
• Formation and strengthening of community organisation

162,413
Lives touched through our water and
sanitation interventions

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Overview Discussion and Analysis Report Reports Statements

Enhancing quality of life EDUCATION

L&T continued to support interventions that aimed at L&T’s education programmes are the key to promoting social
enhancement of education and health services in the same upliftment and inclusive development in the country. The
locations to further improve the quality of people’s lives. Company has undertaken a variety of initiatives to provide
infrastructure to schools that lack adequate resources. It also
Institutionalising Community Learning strives to improve the quality of instruction and learning for
Resource centres the children.

Opening a Community Learning Resource centre has

been one of the key interventions of Saajhi Shikshas’ after Saajhi Shiksha
COVID-19. The project, in collaboration with the Rajasthan
Aim: Inclusive and quality education for marginalised
State Commission for Protection of Child Rights, launched a
children aged between 3-18 years
helpline number in the name of ’UMEED‘ to provide psycho-
social care to the children and parents of the community. Location: Bhim Block, Rajsamand, Rajasthan,
With the aim of reducing mental stress and providing proper Impact: Implemented in 19 schools and six
psychological care, the project team linked children and Anganwadi Centres.
parents on the UMEED helpline platform. In the initial six
months of FY 2022, about 300+ parents and children have
been able to connect and benefit from the UMEED helpline.
Intervention: Establish Learning Resource Centres to
support the learning continuity of children
Impact: Engagement with 263 children through a
team of community volunteers, three new Learning
Resource Centres launched, 105 children were freshly
enrolled, 16,384 library books checked out from
these centres

During and after COVID-19 pandemic

Once the schools reopened, most of our education projects
initiated a blended approach of teaching and learning, where
both offline and online classes were conducted. With this
approach, children coming to school and those who preferred
to stay at home, were both covered.

‘Engineering Futures’- L&T’s STEM

Education Programme
Since 2019, L&T has introduced a STEM (Science Technology
Engineering Math) Education Project called ‘Engineering Futures’
(EF). Operating in resource-poor Government schools around
four campus areas in Vadodara, Hazira, Chennai and Faridabad.
This programme helps teach Science and Math through
hands-on models and digital content for better comprehension,
while encouraging curiosity and scientific rigour among the
students of these schools. Each school is equipped with a
computer centre as a dynamic educational laboratory that builds
the capacity of teachers to utilise technology and empowers
Restoring health of children students with practical digital literacy skills.
Under Nutrition and Health care, the project has initiated
Community-level STEM Model-making sessions: The
work with 10 balwadis at Sewantri in Rajasthan. Through
project team carried resources on field and conducted STEM
these Balwadis, 241 (121 girls, 120 boys) children were able
model-making sessions with students. 2,294 students from
to get effective care, nutrition, and pre-school education.
four locations who did not have proper internet connection/
Due to access to quality nutrition, all severely malnourished
smartphones were reached out. All the models were aligned
children have recovered, and their health has improved.
with the online classes going on in Science and Math.

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An idea can touch many lives

Name: J. Subash, part of the Engineering
Futures Programme

Achievement: His idea of a ‘Pushing Stand Trolley

Wheelchair’ as a participant of MANAK was featured
in the 39,263 ideas shortlisted by the Department of
Science and Technology across the country.

Strengthening school infrastructure for creating a

better learning environment
Providing adequate school infrastructure motivates children to
come to school, in turn improving attendance and increasing
the students' interest in learning. Building classrooms,
Impact of strategies adopted separate washrooms for boys and girls, providing books
• Trained 300 EF teachers (100%) equipped with remote for the library, and improving overall infrastructure of the
learning strategy and methodologies and conducted online schools in different CSR locations across India are some of the
classes for students activities that are executed under the School Infrastructure
initiative.
• 9,603 (56%) students participated in the remote learning
programme Pre-school Community Balwadi Centres: Set up in the
• 4,852 (30%) students were able to perform STEM activities community to help children become school-ready and
create awareness among parents to enrol their children
• 7,555 (44%) students who do not have access to in schools.
smartphones were reached out through community visits
and worksheets Community Learning Centres: Provide remedial teaching
• 17,158 (100%) parents gave feedback on the remote for the students who have limited opportunities for receiving
learning experience and encouraged children to participate guidance from their homes. The classes are run after school
in the project hours and on weekends in the community areas or in public
places like gardens or parks. The sessions are conducted
• In the national level competition – MANAK Science Awards, either by trained volunteers or project staff.
conducted by Department of Science and Technology,
Govt of India, 198 project ideas from 83 STEM schools Students are grouped as per their learning levels and progress
were submitted, of which 12 ideas got selected and were is monitored through a baseline and end line tests.
awarded ¢10,000 for developing their prototype
Extra-curricular activities are also conducted to help the
overall development of children and also retain their
motivation to participate in academic activities.

190
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Overview Discussion and Analysis Report Reports Statements

The Library Programme was implemented in the

community to ensure that the children get access to quality
reading material in various languages namely, Marathi,
Hindi, and English. During the pandemic, e-books were
distributed, followed with the physical distribution of books
in the community and creating library groups, containing
5-6 children. The staff also conducted learning activities to
improve the learning outcomes of children.

260,295
beneficiaries through our
education interventions
this year

HEALTH
The Company set up its first Health Centre at Andheri in Mumbai in 1967. At present, L&T has ten Community Health Centres
operational at Chennai, Kattupalli, Coimbatore, Thane, Lonavala, Surat, Vadodara, and three Centres in Mumbai. Additionally,
L&T also runs artificial kidney dialysis clinics for the underprivileged at its Health Centres in Mumbai, Thane, Vadodara, Surat,
and Chennai. L&T Mumbai’s Anti-Retroviral Therapy (ART) centre conducts HIV/AIDS awareness camps, provides medical support
along with therapy, counselling, and testing. Comprehensive TB related treatment is provided in Mumbai including individualised
treatment OPD, check-up, diagnostics, medicines and nutrition support, home visits and counselling. The Health Centre in Mumbai
provides infertility treatment services free of cost for the underprivileged communities. The Company also has a well-equipped
child guidance clinic in Mumbai in addition to parent counselling. Major services offered are:

Community Health Centre Mobile Medical Unit

 Consultation services; OPD care
 Primary health / medical care at the doorstep
 Low risk and specialised surgical services
 Intensive Care Unit  Health education and promotion
 Day care and inter-patient department  Geriatric care
 Diagnostic services  Counselling
 Dialysis services  Reaching out to unreached population /linking them to other

 Health promotion and camps health services

Case Study • Specialised free breast examination clinics organised at

three locations at Kannur
Breast Cancer Brigade Project (BCB) in
Kannur, Kerala • Conducted 183 free specialised clinics for women
reported to have symptoms based on BSE (Breast Self-
• Initiated in the year 2016-17 by Malabar Cancer Examination) and recommended necessary cases for
Care Society Mammography test
• Provided intensive training to 300 women volunteers • Conducted four village-level specialised camps
this year in comprehensive Breast Cancer Control involving Mobile Tele-Medicine unit with facilities of
• Model for moulding a healthy community of Mammogram, USG, X-ray, Laboratory, etc.
women population • 5,515 women benefitted

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Integrated Annual Report 2021-22

Health camps held at remand homes Through Blood donation camps, 18,474 blood Covid Vaccination camps were also held at three
and orphanges units were donated to various blood banks across health centres with public private partnership
L&T locations. model benefitting 47,910 beneficiaries

SKILL DEVELOPMENT
In L&T’s endeavour to achieve inclusive growth, it provides
vocational training courses and other skill building activities
to provide uneducated youth with wage-earning skills. L&T’s
Construction Skills Training Institutes (CSTIs) in different parts
of the country, provide free-of-cost training in skills like bar
bending, formwork carpentry, masonry, scaffolding, welding,
and electrical wiring, etc., to rural and urban youth. With an
emphasis on technology and innovation, new technology-
based skill-training courses are introduced in Solar PV
Technician skills, OFC & CCTV installation and maintenance.
Training programmes are conducted at nine CSTIs
operational at Kancheepuram and Pulicat in Tamil Nadu,
Panvel in Maharashtra, Pilkhuwa in Uttar Pradesh, Jadcherla
in Telangana, Cuttack in Orrisa, Attibelle in Karnataka,
Chacharwadi in Gujarat and Serampore in West Bengal.

Industry-oriented training: L&T has collaborated with 27

Industrial Training Institutes (ITIs) across the country.

Empowering the differently-abled: L&T’s ‘Project Neev’

initiative enriches the lives of the differently-abled by offering
specially-designed training programmes.

6,897 63%
youth completed various courses at L&T's CSTIs of enrollees were employed

192
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Vocational training for women: L&T introduced vocational

training programmes in the areas of tailoring, beautician
skills, home-nursing and food processing for women from
underprivileged communities.

14,587
rural and urban youth, along with women and physically
challenged persons from underprivileged communities, are
being imparted skills that will improve their employability

Farmer’s son to Site

Supervisor

Name: Mr. Somnath

Challenge: Could not pursue

higher education due to
financial difficulties

Intervention: Introduced to
CSTI for 3 Months

Impact: Presently appointed as L&T-eering: Employee volunteering initiative

Site Supervisor of rebars with a
salary of ¢18,000+ L&T-eers continued to engage with children and youth
through virtual means – teaching, mentoring, reading out
stories, building life skills, conducting educational quizzes,
support with sessions on psycho-social care and awareness
sessions on environment, sanitation, safety and other issues.
Multi Skilling Training Centre (MSTC) at Vizag
L&Teers worked towards mentoring 6th-8th grade children
MSTC is a skill-building Centre established by L&T under in rural schools to create Science Technology Engineering
its CSR initiatives for actively bridging the gap between Math (STEM) models for state level competitions. Several
vocational education and industry needs. The centre helps environment related activities included tree plantations,
in improving the employability of fresh ITI technicians, by cleanliness drives and creation of artificial nest boxes installed
providing structured skill training by L&T qualified trainers. at public gardens and parks were undertaken. Blood donation
is part of the L&T heritage and this year 18,474 units of blood
In FY 2021-22, the centre has had 125 students was donated.
and successfully provided basic training to 74 unique
beneficiaries of which 34 are women (46%). While out of
the 51 advance batch trainees, 23 (45%) got placed with
various employers. 4,900
L&T-ites volunteered to reach more than 12,800 people,
clocking more than 37,119 volunteering hours.
Case Study

Self-employment thought Self-development

Name: Initiative DAWN

Location: Kolkata

Impact: Encouraging self-employment among women

by introducing various skill development programmes
like tailoring, embroidery etc.

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Integrated Annual Report 2021-22

RELATIONSHIP CAPITAL
We have always laid emphasis on
building enduring bonds of trust
with our stakeholders. These include
customers, shareholders, employees,
bankers, business partners, Central
and State Governments and the
communities we interact with. We
believe that enduring relationships with Customers
all stakeholders provide us with insights Our constant endeavour is to provide our customers with a
that help us review and progressively superior experience at every stage of their association with
us. Innovation – across products, projects, processes and
refine our strategies to create long-term
customer servicing – enables us to create value that can set
value for all. a benchmark for the industry to emulate. Some of our major
clients include State and Central Government departments,
ministries, and local municipal bodies as well. We engage
Shareholders and investors
with our customers regularly through various modes of
We follow a policy of engaging with all stakeholders regularly communication to get their feedback and suggestions and
and keep them informed of evolving developments in the understand their requirements. Our Customer Satisfaction
organisation. Our objective is to gain insights into their Score is 89% during FY 2021-2022. Further details have also
perspectives, get clarity on ‘pain points’ and craft the way been provided in BRSR Principle 4-Q2 and Principle 9.
forward collaboratively. Our institutional investors include:
Suppliers and contractors

Investors Sum of % Equity At L&T, our focus is on maintaining and enhancing our
relationships with suppliers, contractors and service providers
LIC 11.9 to drive mutual growth. These include raw material vendors,
machine suppliers and contract workers. We engage with
GIC Singapore 2.5 them regularly through partner meets. We have established
an e-procurement model for paperless buying and an
HDFC Mutual Fund 2.3
e-tendering system is used for information flow and reverse
NPS Trust (India) 1.8 auctioning. We trained more than 5 lakh vendors, dealers,
sub-contractors and workers in FY 2021-2022.
ICICI Prudential Mutual Fund 1.8
Our Code of Conduct has been revamped and includes
Fidelity Investments 1.8 compliance with environmental regulations, health and
safety, labour practices, human rights, ethical behaviour and
GIC India 1.7 transparency in business processes. As at March 31, 2022,
around 65,000 vendors have signed the Code of Conduct
SBI Mutual Fund 1.6 (CoC). Suppliers are assessed based on their environment
and social performance during vendor registration and on-
ICICI Prudential Life Insurance 1.3
boarding. Further details have also been covered in BRSR
Kotak Mutual Fund 1.2 Principle 5 and 6.

Franklin Mutual Fund 1.0 Government

SBI Life Insurance 1.0 We work closely with the Government of India as well
as local governments during the regular course of
Nippon Mutual Fund 1.0 our operations. We abide by the laws of the land and
compliance is non-negotiable. With several international
associations, we participate in national and international
policy formulation and economic forums. We also
¢1,019 Bn
Value distributed in FY 2021-22
participate in several Government schemes to help enhance
the lives of the communities we work with.

194
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Overview Discussion and Analysis Report Reports Statements

Major Government programmes we are associated with:

National Skill
Make in India Swachh Bharat Abhiyan National Health Mission
Development Mission

• Local sourcing of products and • 3,611 household toilets • National AIDS Control • National Skill Development
services constructed under ICDP from Programme (NACP), L&T ART Mission- L&T CSTI and Skill
2017-18 using local skills and centre at Andheri Development Academy (SDA)
• Our Defence Engineering
materials at Madh
business collaborates • Revised National TB Control
extensively with the • 855 school toilets constructed Programme (RNTCP) at L&T TB • Sarva Shiksha Abhiyan(SSA)
Government from 2015-16 Centre at Andheri – Community pre school
programmes and community
• In FY 2022, we have sourced • 27,000+ children trained in • National Family planning
learning centres preventing
materials from 2,615 MSME using toilets, cleanliness and Programme: Contraceptive
dropouts and ensuring
suppliers hygiene from 2015-16 services made available at L&T
enrolment
Health Centres
• Community-based monitoring
• STEM Initiative of National
committees ensured that • Integrated Child Development
Science and Technology
these villages became open scheme: Improving quality of
Communication Council and
defecation free services at Anganwadi and
the Department of Science
capacity building of anganwadi
• Swajal Yojana under Rural and Technology, Government
Development Ministry: Water workers
of India- STEM Education
shed development programme Programme-Engineering Futures
under ICDP
• National Rural Livelihood
Mission (NRLM): SHG
programme under ICDP
• Pradhan Mantri Krishi
Sinchayee Yojana: Accelerated
Irrigation Benefit Programme-
Drip irrigation in ICDP

Interventions during the year include:

National Smart Cities Mission Aerospace

Manufacturing shops for space launch vehicles at Powai

The Smart World & Communication business leverages its technical
and Coimbatore
prowess to solve problems through smart, scalable solutions for
security, urban services, traffic, transportation, utilities and
digital connectivity.
1. Hyderabad City Surveillance and ITMS project
2. Vizag Smart City
3. Prayagraj Smart City
4. Mumbai City Surveillance
5. Raipur Smart City
6. Moradabad Smart City
7. Patna Smart City
8. Jhansi Smart City
9. BBNL (Bharat Broadband Network) Bharat Net Project [High speed
internet connectivity in rural Maharashtra]
10. JHARNET 2.0 (Government of Jharkhand)
11. Early Warning Dissemination System (EWDS) helped Odisha and
Andhra Pradesh Governments during Cyclone Yaas

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Integrated Annual Report 2021-22

Financial
Capital
L&T’s financial capital helps it create
a solid foundation. The Company has
created a strong balance sheet with
strong linkages to economic growth
that can help India reduce external
dependencies and enhance self-reliance.
L&T has judiciously managed its capital
structure, helping the Company to
counter risks effectively. Despite the
size of its business, L&T has been able to
maintain growth. Financial prudence has
helped the Company navigate its way
through the challenging period
of the COVID-19 pandemic.

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Overview Discussion and Analysis Report Reports Statements

KEY HIGHLIGHTS OF FY 2021-22

28%
1

PAT GROWTH

62%
INTERNATIONAL ORDER INFLOW GROWTH

STRATEGIES IMPACTED

SO-I SO-II SO-III SO-IV SO-V

SE-3

SDGs IMPACTED

KEY MATERIAL ISSUES IMPACTED

−−Customer Experience and Satisfaction
−−Corporate Governance
−−Business Ethics
−−Talent Management-Attraction,
Retention & Development
−−Climate Action
−−Data Security, Privacy, and Cyber Security
−−Quality of Products and Project Delivery
−−Brand Management
−−Social Engagement & Impact

1
Excluding Exceptional items and Discontinued operations

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Input Metrics Output Metrics

¢3,155.67 Bn ¢1,010.00 Bn
Order Book Turnover

¢344.50 Bn ¢78.79 Bn
Net Current Assets PAT2

¢96.96 Bn ¢30.91 Bn
Net Fixed Assets3 Dividend4

0.3x 12.23%
Gross Debt to Equity ratio Return on Net worth

L&T’s standalone financials reflect the performance of businesses like Infrastructure, Hydrocarbon,
Power, Heavy Engineering, Defence Engineering and others. The ‘others’ segment consists of Realty, Construction & Mining
Machinery, Rubber Processing Machinery, Smart World & Communication and Digital Businesses. During the financial year, L&T
Hydrocarbon Engineering Limited, a wholly-owned subsidiary company was merged with the Company pursuant to approval of the
Scheme of Arrangement from National Company Law Tribunal, Mumbai Bench (NCLT) with the appointed date of April 1, 2021.
Financials for FY 2021-22 are consequent to the merger and previous year’s figures have accordingly been regrouped.

Key highlights of FY 2021-22:

• Order Inflow achieved, basis robust growth in international
orders ~62%.
• Revenue growth of 16% reflects progress achieved on
execution of robust Order Book.
• PAT from continuing operations (excluding exceptional
items) registered a substantial growth of 28%. Besides
revenue growth, higher dividend from Subsidiaries
coupled with lower interest cost on reduced borrowings,
facilitated the growth.
• The margin remains stable notwithstanding the headwinds
faced from increasing commodity prices.
• The Board of Directors has recommended a final dividend
of ¢22 per equity share for the approval of shareholders -
an increase of 22% per share over the previous year.

2
Including Exceptional item
3
Including ROU assets
4
For FY 2021-22

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Economic value generated and distributed5 [in ¢ Bn]

Value Generated

FY 2021-22 FY 2020-21
1,061.71 927.09

Value Distributed

FY 2021-22 FY 2020-21

54.36 1.32 53.41 1.57

841.21 721.50
30.91 25.286
17.54 23.82
73.91 63.88

Manufacturing, construction and operating expenses Employee wages and benefits Interest
Dividend Payments to exchequer Community investments (CSR spend)

Value Generated - Value Distributed Description 2021-22 2020-21

= Value Retained Economic Value Generated 1061.71 927.09
Manufacturing, construction and 841.21 721.50
FY 2021-22 operating expenses

42.45 Employee wages and benefits

Payments to providers of capital
73.91 63.88

Interest 17.54 23.82

FY 2020-21
37.61
Dividend 30.91 25.286
Payments to exchequer 54.36 53.41
Community investments (CSR spend) 1.32 1.57
Economic Value Retained 42.45 37.61

5
Excluding Exceptional items and Discontinued operations
6
FY 2020-21 excludes special dividend

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SUSTAINABLE Development
Goals (SDGs)
SDGs define global priorities and aspirations for 2030, with objectives to achieve conservation and ecological balance.

The following demonstrate our alignment with SDGs and our initiatives towards climate change mitigation, environmental
conservation and corporate social responsibility.

Goals Initiatives Page number(s)

−− Skilling programmes for youth and migrant labour enables higher wage-earning capacity 148-157,
158-167,
−− Vocational, life skills training and job placements for skilled youth, women and
168-177,
differently-abled 178-195
−− Encouraging entrepreneurship among youth, women and differently-abled through training
End poverty in all
and promoting Self Help Groups (SHGs)
its forms
−− Increased agricultural income and multi-cropping due to water adequacy
−− Created agro-based livelihood, increasing household incomes
−− Formation of farmer’s groups and market linkages for better crop prices

−− Training communities in better nutrition practices 136-147,

178-195
−− Encouraging sustainable agricultural practices by use of zero budget natural farming, drip
irrigation, indigenous pesticides, seed treatment, balanced dose of fertilisers, discouraging
plantation of water-intensive crops, and introducing horticulture through farm field schools
and demonstrations.
End hunger, achieve
food security, −− Nutrition awareness campaign and counselling for women, pre-school teachers and school
improve nutrition and children from the community
sustainable agriculture
−− Addressing malnutrition among children by providing services related to education of mothers,
prevention, early detection and treatment
−− Promoting low-cost backyard nutrition gardens and recipe demonstration in rural
communities; training households in incorporating traditional millets and locally-available
low-cost nutritive foods in everyday meals
−− Supplementary multi-vitamins / milk at Anganwadis / schools
−− Livestock management and training in dairy and poultry business
−− Provide food and ration in disasters and crisis situations

−− Multi-specialty community health centres providing access to maternal, family welfare, 168-177,
paediatric and general healthcare 178-195
−− Health centres offering mental health services, child- guidance clinic and counselling
−− Mobile health vans and camps for school children, women and elderly from underprivileged
Ensure healthy communities
lives and promote
−− Health awareness for adolescents
wellbeing of people
of all ages −− Care and counselling programmes for differently-abled children
−− Blood donation camps
−− Training of frontline healthcare workers
−− Infrastructure support to Anganwadis, PHCs and Hospitals
−− Integration with national health programmes
−− Health infrastructure strengthening during the COVID-19 pandemic
−− Welfare teams at the workplace

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Goals Initiatives Page number(s)

−− School infrastructure development for creating a conducive learning environment, including 178-195
construction of school sanitation facilities
−− Making Government schools accessible by providing technology-enabled education
(e-learning facilities)
Ensure inclusive and −− Mini science centres and laboratories to develop interest in science subjects
quality education,
−− Introducing and strengthening STEM (Science, Technology, Engineering and Math) Education
and promote lifelong
programme in Government schools to unlock scientific and technological potential of children
learning opportunities
and encourage their curiosity, scientific vigour and creativity.
for all
−− Teacher training programme to impart effective pedagogy
−− Enhancing curriculum and impacting classroom learning through nurturing talent
−− Promoting girl child education
−− Life skills and extra-curricular activities for overall development of students
−− Community-based learning centres with parental involvement to prevent dropouts and prepare
children for Board exams
−− Specific interventions to integrate children at risk of dropping-out and out-of-school children
into school
−− Prepare indigenous students for admission to various public schools
−− Mitigating digital divide by providing digitally-enabled devices to the underprivileged children
or visiting students at their homes to provide study material in print form

−− Making water available to doorstep and drudgery reduction initiatives 168-177,

178-195
−− Awareness on women’s health and menstrual hygiene
−− Toilet facilities in schools for girls
−− Motivate parents to encourage girls to participate in STEM activities and exposure visits
Achieve gender equality
and empower all women −− Creating livelihood opportunities and encouraging entrepreneurship among women through
and girls skill development, vocational training programmes and market linkages
−− Formation of women’s Self-help Groups (SHGs), ensuring participation and decision making in
village development and school management committees across villages

−− Achieving water adequacy for drinking, sanitation and agriculture through watershed projects, 136-147,
as part of Integrated Community Development Programmes (ICDP) 178-195
−− Supplementing water bodies to increase ground water level with participation from communities
−− Constructing water harvesting structures with contribution from the community and ensuring
Ensure availability their maintenance
and sustainable water
−− Developing community-based groups like Village Development Committees and Farmers’
management and
Groups for maintaining the water structures, judicial use of common water resources and
sanitation for all
ensuring the villages remain open defecation-free
−− Demonstration of rainwater harvesting system in schools and households
−− Training Farmers’ Groups in water estimation and budgeting, and to measure water levels and
in GIS- based water management
−− Sanitation awareness campaigns followed with construction of household toilets and school
toilets, to make rural India ‘open-defecation-free’
−− Supporting Swachh Bharat Abhiyan

−− Providing solar lamps to the underprivileged communities and with back-up for communities 136-147,
and schools 148-157
−− Increasing renewable energy use within campuses and project sites
−− Green products and services portfolio for customers
Ensure access to
−− Promoting solar agricultural fences in villages
affordable, reliable,
sustainable energy for all −− Promoting bio-gas plants

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Goals Initiatives Page number(s)

−− Employable skill training and placements for youth from underprivileged communities, 168-177,
physically and mentally-challenged persons 178-195,
196-199
−− Construction Skills Training Institutes for skilling youth
−− Transform fresh ITI candidates to multi-skilled workers
Promote inclusive and
−− Skilling youth through training institutes
sustainable economic
growth, full and −− Certified computer courses for students
productive employment −− Television and digital media workshops for youth empowerment
and decent work for all
−− Empowering workforce through learning, development and welfare initiatives
−− Training rural youth in ethno-veterinary care and Natural Resource Management

−− Embolden automation with focus on application for patents/Intellectual Property Rights (IPR) to 148-157,
inspire innovation 158-167,
196-199
−− Resilient infrastructure creation and sustainable industrialisation for our clients, through our
offerings – i.e. green product and service portfolio
Build resilient −− Focus on ‘Make in India’ initiatives to create employment opportunities and import substitution
infrastructure, promote
inclusive and sustainable
industrialisation and
foster innovation

−− Merit-based hiring with emphasis on equal opportunities 168-177,

178-195
−− Established policies to empower employees irrespective of gender, age, disability, race
and religion
−− Encouraging participation of vulnerable groups like women and the deprived in rural
Reduce inequality within development committees of developmental projects supported by the Company
and among countries
−− Fairness in distribution of resources within villages under ICDP to circulate the benefit to
vulnerable communities
−− Prioritise needs of marginal and poor farmers in rural development programmes

−− Create comprehensive and smart technology solutions for critical infrastructure, spanning 136-147,
airports, power plants, metro rail and IT parks 158-167
−− Offer specialised turnkey GIS-based network management solutions for city surveillance, traffic
monitoring and analysis
Make cities and human −− Road barricades and guards to control traffic areas around project sites, especially busy
settlements inclusive, junctions in the city, along with road safety awareness campaigns
safe, resilient and
−− Garden maintenance in cities and flood relief interventions
sustainable
−− Sustainable ICD Programme for water-stressed rural settlements
−− Promoting climate resilient and sustainable agricultural practices, reducing the input cost of
crops and increasing the yield by promoting organic methods of cultivation.

−− Implement material conservation initiatives, energy efficiency advancement projects and 136-147,
sustainable production practices 148-157
−− Our cumulative energy conservation over the years is more than 400,000 GJ.
−− We proactively utilise flash granular blast furnace slag and crushed sand in our construction
Ensure sustainable projects and recycled steel wherever permissible.
consumption and
−− Discouraging plantation of water-intensive crops, use of indigenous pesticides, seed treatment,
production patterns
balanced dose of fertilisers
−− Multi-cropping among farmers on increase

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Goals Initiatives Page number(s)

−− Climate change mitigation and adaptation initiatives: GHG intensity reduction projects, 136-147,
promoting the use of renewable energy, green buildings and tree plantation 148-157
−− Measurable targets for reducing energy and carbon intensity at campuses and project sites
−− Carbon footprint mapping at the organisational level
Take urgent action to
−− Discourage over-exploitation of ground water
combat climate change
and its impacts −− Minimising or avoiding use of chemical fertilisers and preventing degradation of soil quality
−− Building capacity of communities to address climate change and its impact
−− Alignment with National Action Plan on Climate Change (NAPCC), Government of India

−− Evaluate business process risk to ensure that negative impacts are avoided / 136-147
minimised /controlled

Conserve the oceans,

seas and marine
resources for sustainable
development

−− Building soil conservation to prevent soil erosion in the ICD programme 136-147,
158-167
−− Village level committee to regulate the use of common resources
−− Rainwater harvesting in schools and households
−− Lake clean-up and reserve forest clean-up drives alongside de-silting of water bodies
Protect, restore and
promote sustainable use −− Planted 700,000+ saplings in last five years and 150,000+ fully-grown trees are nurtured
of terrestrial ecosystems, across major campuses
manage forests, combat −− In-house guidelines on scientific tree plantation and maintenance
desertification, and halt
land degradation and −− Felicitation of guests with a Tree Certificate, instead of a floral bouquet – planting a tree for
biodiversity loss each certificate
−− Optimising the use of natural resources
−− Afforestation by creating fast-growing sustainable forest

−− Village level committee and democratic process formulated for maintenance, usage and 136-147,
monitoring the sustainability of ICDP interventions 178-195
−− Encourage democratic functioning and financial transparency in conduct of SHG business
−− Associating with industry forums and Government bodies for promoting
Promote peaceful sustainable development
and inclusive societies
for sustainable
development, provide
access to justice for all
and build effective as
well as accountable
institutions at all levels

−− Collaboration and partnership with state and national Governments, NGOs and ITIs 178-195
−− Sharing best practices with stakeholders

Strengthen the means

of implementation
and revitalize global
associations for
sustainable development

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GRI Content Index

This Integrated Report is aligned to the GRI Standards and the mapping is as follows:

GRI Standard Disclosure Page No

GRI 201: Economic Performance 2016 201-1 Direct economic value generated and distributed 196-199
203-1 Infrastructure investments and services supported 180-193
GRI 203: Indirect Economic Impacts 2016
203-2 Significant indirect economic impacts 196-199
301-1 Materials used by weight or volume 138, 139, 143
GRI 301: Materials 2016
301-2 Recycled input materials used 138, 139, 143, 144
302-1 Energy consumption within the organization 138, 139, 140
GRI 302: Energy 2016 302-3 Energy intensity 140
302-4 Reduction of energy consumption 138, 139, 140
303-2 Management of water discharge-related impacts 142
GRI 303: Water and Effluents 2018 303-3 Water withdrawal 142
303-5 Water consumption 138,142
305-1 Direct (Scope 1) GHG emissions 141
305-2 Energy indirect (Scope 2) GHG emissions 141
305-3 Other indirect (Scope 3) GHG emissions 141
305-4 GHG emissions intensity 141
GRI 305: Emissions 2016
305-5 Reduction of GHG emissions 132
305-6 Emissions of ozone-depleting substances (ODS) 141
305-7 Nitrogen oxides (NOx), sulphur oxides (SOx), and other
141
significant air emissions
306-3 Waste generated 142
GRI 306: Waste 2020
306-4 Waste diverted from disposal 142
GRI 401: Employment 2016 401-1 New employee hires and employee turnover 174
403-1 Occupational health and safety management system 175-177
403-2 Hazard identification, risk assessment, and incident investigation 175-177
GRI 403: Occupational Health and Safety 2018 403-7 Prevention and mitigation of occupational health and safety
175-177
impacts directly linked by business relationships
403-9 Work-related injuries 175
GRI 404: Training and Education 2016 404-1 Average hours of training per year per employee 169
GRI 405: Diversity and Equal Opportunity 2016 405-2 Ratio of basic salary and remuneration of women to men 174
413-1 Operations with local community engagement, impact
GRI 413: Local Communities 2016 180-193
assessments, and development programs

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Assurance Statement
Introduction
DNV Business Assurance India Private Limited (‘DNV’) has been commissioned by the
management of L&T Limited (‘L&T’ or the ‘Company’, Corporate Identity Number:
L99999MH1946PLC004768) to carry out an independent customised verification of selected
sustainability performance data related to Energy and Greenhouse Gas Emissions, Water,
Waste, Occupational Health and Safety, Employees, and Corporate Social Responsibility. These
performance datasets have been prepared by L&T using topic-specific Standards from the
Global Reporting Initiative (‘GRI’) Standards (‘GRI Standards’), that is,
• 302-1 - Energy consumption within the organization from GRI 302: Energy 2016;
• 305-1 - Direct (Scope 1) GHG emissions, 305-2 - Energy indirect (Scope 2) GHG
emissions, and GRI 305-3; Other indirect (Scope 3) GHG emissions from GRI 305:
Emissions 2016;
• 303-3 - Water withdrawal and 303-5 - Water consumption from GRI 303: Water and
Effluents 2018;
• 306-3 - Waste generated from GRI 306: Waste 2020;
• 307-1 Non-compliance with environmental laws and regulations from GRI 307:
Environmental Compliance 2016;
• 403-9 - Work-related injuries from GRI 403: Occupational Health and Safety 2018, and
number of safety training hours;
• Number of permanent employees (male and female); and,
• number of corporate social responsibility (CSR) beneficiaries, and CSR expenditure.
for disclosure in the Business Responsibility and Sustainability Report of its Annual Integrated
Report of FY 2021-22.

Our engagement has been carried out based on DNV’s assurance methodology VeriSustainTM1,
(customised verification procedure) as mutually agreed with L&T for the performance data
detailed in Annexure - 1 and provides a limited level of verification while applying a ±5%
materiality threshold for errors and omissions.

The intended user of this Verification Statement is the management of the Company (the
‘Management’). The team is responsible for all data as well as related assumptions and
calculation methodologies as information provided to us for verification, as well as the
processes for collecting, analysing and reporting the sustainability performance data in its
BRSR as part of its Annual Integrated Report. Our verification engagement is based on the
assumption that the data and information provided to us is complete and true and free from
material misstatement. We expressly disclaim any liability or co-responsibility for any decision
a person or entity would make based on this verification statement. This exercise was carried
out during April 2022 – July 2022 by a team of sustainability professionals of DNV.

Scope, Boundary and Limitations of Verification

The scope of the verification includes the identified sustainability performance data (detailed in
Annexure - 1) for the selected boundary of L&T and its twelve (12) Independent Companies
(‘ICs’) in India for the period 1st April 2021 to 31st March 2022 as indicated in the BRSR, in

1 The VeriSustain protocol is based on the principles of various assurance standards including International Standard on Assurance
Engagements 3000 (ISAE 3000) Revised (Assurance Engagements other than Audits or Reviews of Historical Financial Information) and
the GRI Principles for Defining Report Content and Quality, international best practices in verification and our professional experience;
and is available on request from www.dnv.com

Project No.: PRJN-375518

Page 1 of 4

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accordance with the scope of work agreed upon with the management of the Company
including the sampling plan to arrive at our conclusion.

During the verification process, we did not come across limitations to the scope of the agreed
verification engagement. This verification engagement did not involve any engagement with
external stakeholders. The verification was conducted based on desk reviews, site visits to
sample ICs, interactions with data owners and other publicly available data made available to
us. The review of management approach and other qualitative disclosures was not carried out
as part of this engagement. The verification of reported data on expenditure towards CSR
activities is not within the scope of our verification exercise as a separate audit is carried out
by L&T’s statutory financial auditors and reported in L&T’s Annual Integrated Report.

Verification Methodology
During the verification, we adopted a risk-based approach, and a sample-based verification
was carried out for a limited level of verification as per DNV VeriSustain and as agreed with
L&T. We undertook the following activities:
• Review of the data management processes that L&T has in place to report the identified
sustainability data. We examined and reviewed supporting evidence such as supporting
documents, secondary data and other information made available by L&T to us.
• Carried out online and on-site verification for sample ICs of the Company - (i) Buildings
and Factories, (ii) Transportation Infrastructure, (iii) Heavy Civil Infrastructure (iv)
Power Transmission and Distribution, (v) Water and Effluent Treatment, (vi) Minerals
and Metals, (vii) Energy Hydrocarbon, (viii) Energy Power, (ix) Heavy Engineering, (x)
Defence, (xi) L&T Realty, and, (xii) Smart World and Communication and offices
(Chennai Office Campus, Leadership Development Academy at Lonavala, AMN Tower,
L&T House, and Knowledge City) to review the processes and systems for preparing site
level sustainability data and implementation of sustainability strategy. DNV was free to
choose sites for conducting our sustainability performance data verification.
• Review of systems and procedures for data collection and aggregation, that is, the
calculation methodology, assumptions of the selected consolidated sustainability
performance data (Annexure-1) prepared for the Company’s internal reporting purposes
and to be included in the BRSR which forms part of its Annual Integrated Report.
• Assessed the robustness of the data management systems, data accuracy, data flow
and controls for the reported sustainability performance data, as well as the processes
for data consolidation in context to the principle of Completeness as per DNV’s
VeriSustain.
• Verification of sample data to check accuracy and reliability for a limited level of
customised verification through interaction with data owners.

Conclusions
In our opinion, on the basis of limited level of verification undertaken and mutually agreed
scope of work, nothing has come to our attention that would cause us not to believe that the
data verified as listed in Annexure - 1, is not a reliable and accurate representation of L&T’s
selected performance data. Some of the data inaccuracies identified during the verification
process were found to be attributable to transcription, interpretation and aggregation errors,
and the errors have been communicated for correction and corrected.

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Our Competence and Independence

DNV applies its own management standards and compliance policies for quality control, in
accordance with ISO IEC 17021:2015 - Conformity Assessment Requirements for bodies
providing audit and certification of management systems, and accordingly maintains a
comprehensive system of quality control including documented policies and procedures
regarding compliance with ethical requirements, professional standards and applicable legal
and regulatory requirements.

We have complied with the DNV Code of Conduct 2 during the assurance engagement and
maintain independence where required by relevant ethical requirements. This engagement
work was carried out by an independent team of sustainability assurance professionals. We
were not involved in the preparation of any statements or data included in the BRSR except for
this Assurance Statement and Management Report. DNV maintains complete impartiality
toward stakeholders interviewed during the assurance process. We did not provide any
services to L&T and its subsidiaries in the scope of assurance for the reporting period that
could compromise the independence or impartiality of our work.

For DNV Business Assurance India Private Limited,

Digitally signed by
Radhakrish Digitally signed by
Radhakrishnan, Kiran Vadakepatth Vadakepatth,
Nandkumar
nan, Kiran Date: 2022.07.08
13:32:56 +05'30' , Nandkumar Date: 2022.07.08
13:36:39 +05'30'
Kiran Radhakrishnan Vadakepatth Nandkumar
Lead Verifier Technical Reviewer
DNV Business Assurance India Private DNV Business Assurance India Private
Limited, India. Limited, India.

8th July 2022, Bengaluru, India

------------------------------------------------------------------------------------------------
DNV Business Assurance India Private Limited is part of DNV – Business Assurance, a global provider of certification, verification,
assessment and training services, helping customers to build sustainable business performance. www.dnv.com

2
The DNV Code of Conduct is available on request from www.dnv.com (https://www.dnv.com/about/in-brief/corporate-governance.html)

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Annexure 1: Verified Performance Data - 2021 – 22

Environmental Compliance
Environmental Regulatory Non-Compliances Resulting in 2 (Transportation
No. of cases
Fines or Prosecutions Infrastructure IC)
Energy (Renewable)
Indirect energy consumption GJ 127,129
Energy (Non Renewable)
Direct energy consumption(1) GJ 8,365,802
Indirect energy consumption(2) GJ 1,281,464
Greenhouse Gases(3)
CO₂e – Total KT 889.063
CO₂e - Scope 1 T 615,035
CO₂ - Scope 2 T 274,028
N₂O - Scope 1 T 0.93
CO2e – Scope 3 (Cat-1: Purchased goods and services,
Cat-5: Waste generated in operations {solid waste}, T 4,976,909
Cat-6: Business travel and Cat-7: Employee commute)
Water
Water Withdrawal – Total M3 9,602,372
Water Withdrawal – From river / lakes M3 2,001,310
Water Withdrawal – From municipal sources M3 1,369,437
Water Withdrawal – From rain water M3 82,364
Water Withdrawal – From ground water M3 3,251,265
Water Withdrawal – From other sources (Tankers) M3 2,897,996
Water (fresh) consumed - Total M3 9,410,093
Waste(4)
Hazardous waste – Generated T 2,464
Non-hazardous waste – Generated T 48,995
Occupational Health and Safety(5)
Number of reportable accidents No. of cases 132
Number of fatalities No. of cases 25
Number of man days worked Days 1,154,859,499
Number of man days lost Days 161,946
Number of first aid cases No. of cases 8,769
Number of near miss accidents No. of cases 37,674
Number of safety training hours Hours 4,969,092
Employees
Number of permanent male employees Number 42,618
Number of permanent female employees Number 2,997
CSR(6)
Number of beneficiaries impacted Number 1,127,544
CSR Expenditure Crore INR 136
Note 1: Direct energy: Consumption is reported based on amount of fuel procured and not consumed as required under GRI topic-specific standard 302-1.
L&T assumes that procurement = consumption.
Note 2: Indirect energy: In case of certain ICs (Smart World and Communications, and Building and Factories) amount of indirect energy consumed is
calculated by the cost of total grid electricity consumed divided by an average unit cost decided by each IC.
Note 3: Emissions due to SF6 and CH4 are not monitored and reported. Types of Ozone Depleting Substances have not been reported by type (HFC, CFC).
Note 4: Hazardous and non-hazardous waste classification are not carried out based on types (solid and liquid) as required under GRI topic-specific Standard
306-3.
Note 5: Reporting on Occupational Health and Safety covers entire workforce covering permanent employees and on-contract workers.
Note 6: CSR amount spent is not within the scope of our verification exercise as a separate verification is carried out by L&T’s statutory financial auditors and
reported in the Annual Integrated Report.
Note 7: Detailed comments on assumptions, methodologies and estimations reviewed as part of DNV’s verification are provided in DNV’s Management Report.

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United Nations Global Compact

Communication on progress

Principle Category Description Page

Businesses should support and respect the protection of 128-129, 225, 237, 238, 239
1 Human Rights
internationally proclaimed human rights.
Businesses should make sure that they are not complicit in 128-129, 225, 237, 238, 239
2 Human Rights
human rights abuses.
Businesses should uphold the freedom of association and 239, 248
3 Labour the effective recognition of the right to
collective bargaining.
Businesses should uphold the elimination of all forms of 128-129, 225, 237, 238, 239
4 Labour
forced and compulsory labour.
Businesses should uphold the effective abolition of 128-129, 225, 237, 238, 239
5 Labour
child labour.
Businesses should uphold the elimination of discrimination 128, 130, 228
6 Labour
in respect of employment and occupation.
Businesses should support a precautionary approach to 136-147, 240-248
7 Environment
environmental challenges.
Businesses should undertake initiatives to promote greater 136-147, 240-248
8 Environment
environmental responsibility.
Businesses should encourage the development and 145
9 Environment
diffusion of environmentally friendly technologies.
Businesses should work against corruption in all its forms, 128, 129, 224
10 Anti-Corruption
including extortion and bribery.

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Business Responsibility & Sustainability Reporting

SECTION A: GENERAL DISCLOSURES

I. Details of the listed entity

1. Corporate Identity Number (CIN) of the Listed Entity- L99999MH1946PLC004768
2. Name of the Listed Entity- Larsen & Toubro Limited
3. Year of Incorporation- 1946
4. Registered office address- L&T House, Ballard Estate, Mumbai, 400 001, India
5. Corporate address- L&T House, Ballard Estate, Mumbai, 400 001, India
6. E-mail- infodesk@larsentoubro.com
7. Telephone- +91 22 67525656
8. Website- www.larsentoubro.com
9. Financial year for which reporting is being done 1st April 2021 - 31st March 2022
10. Name of the Stock Exchange(s) where shares are listed
a. National Stock Exchange of India Limited (NSE)
b. BSE Limited (BSE)
11. Paid-up Capital- R 281.01 crore
12. Name and contact details (telephone, email address) of the person who may be contacted in case of any queries on the
BRSR report

S. No Particulars Details
1. Name Dr. Pradeep Panigrahi
2. Designation Head-Corporate Sustainability
3. Telephone Number +91 22 61238504
4. Email ID sustainability-ehs@Larsentoubro.com
13. Reporting boundary - Are the disclosures under this report made on a standalone basis (i.e. only for the entity) or on a
consolidated basis (i.e. for the entity and all the entities which form a part of its consolidated financial statements, taken
together).
The Business Responsibility and Sustainability (BRS) initiatives of the Company are extended to the Subsidiary/Associate
Companies, and they are also encouraged to participate in these initiatives of the parent organisation. In addition,
companies like L&T Finance Holdings Limited, Larsen & Toubro Infotech Limited, L&T Technology Services Limited,
Mindtree Limited (Listed entities) have their separate Business Responsibility Report (BRR)/ Business Responsibility &
Sustainability Report (BRSR) as a part of the Annual Report. This report is for Larsen & Toubro Limited (L&T) and the
reporting scope encompasses L&T’s manufacturing locations, project sites & offices across India and overseas.

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II. Products/Services
14. Details of business activities (accounting for 90% of the turnover):

% of
Description of Main
S. No. Description of Business Activity Turnover of
Activity
the entity
1 Infrastructure Engineering, Procurement & Construction of Residential Buildings, Factories, 68.5%
Public spaces, Airports, IT Parks, Hospitals, Roads, Railways, Metros, Elevated
Corridors, Transmission lines, Renewable projects, Water Supply & Distribution,
Industrial Desalination, Sewage treatment plants, Irrigation projects, Hydel
power, Nuclear plants, Marine projects, Minerals & Metals process plants and
related customized equipment etc.
2 Hydrocarbon Engineering, Procurement & Construction for Hydrocarbon Upstream, 17.2%
Midstream and Downstream projects
3 Power Engineering, Procurement, Construction for Coal and Gas based power plants 4.4%

15. Products/Services sold by the entity (accounting for 90% of the entity’s turnover):
NIC Code % of total
S. No Product/Services Turnover
Group Class Sub Class contributed
1 282 2824 28246 Manufacture of parts and accessories for machinery / equipment 4.8%
used by construction and mining industries
2 410 4100 41001 Construction of buildings carried out on own-account basis or
10.8%
on a fee or contract basis
3 421 4210 42101 Construction and maintenance of motorways, streets, roads,
other vehicular and pedestrian ways, highways, bridges, tunnels
and subways 28.5%

42102 Construction and maintenance of railways and rail-bridges

4 422 4220 42201 Construction and maintenance of power plants 4.4%
42202 Construction / erection and maintenance of power, 11.9%
telecommunication and transmission lines
42204 Construction and maintenance of water main and line
connection, water reservoirs including irrigation system (canal)
12.8%
42205 Construction and repair of sewer systems including sewage
disposal plants and pumping stations
5 429 4290 42901 Construction and maintenance of industrial facilities such as 17.2%
refineries, chemical plants, etc.

III. Operations
16. Number of locations where plants and/or operations/offices of the entity are situated:

Location Number of plants Number of offices Total

National 19 19 38
International 3 50 53

17. Markets served by the entity:

a. Number of locations

Locations Number
National (No. of States) 33*
International (No. of Countries) 53

* Includes 25 states and 8 UTs (excluding Mizoram, Manipur, Nagaland and Lakshadweep)

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b. What is the contribution of exports as a percentage of the total turnover of the entity?
19.9 %
c. A brief on types of customers
The Company’s business is construction of infrastructure and manufacturing of products for industrial uses. Some of
its major clients include State and Central Government departments, Ministries, and local municipal bodies as well.
IV. Employees
18. Details as at the end of Financial Year:
a. Employees and workers (including differently abled):

S. Male Female
Particulars Total (A)
No No. (B) % (B / A) No. (C) % (C / A)

EMPLOYEES

1. Permanent (D) 45,615 42,618 93% 2,997 7%

2. Other than Permanent (E) 6,540 6,299 96% 241 4%

3. Total employees (D + E) 52,155 48,917 94% 3,238 6%

WORKERS

4. Permanent (F) 3,307 3,304 99.9% 3 0.1%

5. Other than Permanent (G) 196,755 194,376 99% 2,379 1%

6. Total workers (F + G) 200,062 197,680 99% 2,382 1%

b. Differently abled Employees and workers:

S. Male Female
Particulars Total (A)
No No. (B) % (B / A) No. (C) % (C / A)

DIFFERENTLY ABLED EMPLOYEES

1 Permanent (D) 37 33 89% 4 11%

2 Other than Permanent (E) 11 10 91% 1 9%

3 Total differently abled employees (D + E) 48 43 90% 5 10%

DIFFERENTLY ABLED WORKERS

4 Permanent (F) 15 15 100% 0 0%

5 Other than permanent (G) 9 9 100% 0 0%

6 Total differently abled workers (F + G) 24 24 100% 0 0%

19. Participation/Inclusion/Representation of women

No. and percentage of Females

Total (A)
No. (B) % (B / A)
Board of Directors* 17 1 5.8%
Key Management Personnel 1 0 0%

*The CFO and CEO are included in the Board of Directors.

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20. Turnover rate for permanent employees and workers

FY19-20
FY21-22 FY20-21
(Turnover rate in the year prior to
(Turnover rate in current FY) (Turnover rate in previous FY)
the previous FY)
% %
%
Male Female Total Male Female Total Male Female Total
Permanent 14.3% 20.6%** 14.7% 12.0% 13.7% 12.1% – – 11.1%
Employees
Permanent NA NA NA NA NA NA NA NA NA
Workers*
* Turnover rate of permanent workers is not calculated
** P ersonal reasons (including family related, marriage & relocation), further studies and career prospects account for higher attrition rate in
female employees.
NA: Data not available

V. Holding, Subsidiary and Associate Companies (including joint ventures)

21. (a) Names of holding / subsidiary / associate companies / joint ventures

Does the entity indicated

Indicate
% of shares at column A, participate in
S. Name of the subsidiary/ associate companies whether
held by listed the Business Responsibility
No. (A) Subsidiary/
entity initiatives of the listed
Associate
entity? (Yes/No)
1 Bhilai Power Supply Company Limited Subsidiary 99.9 No
2 Chennai Vision Developers Private Limited Subsidiary 100.0 No
3 Kesun Iron and Steel Company Private Limited # Subsidiary 95.0 No
4 Esencia Technologies India Private Limited Subsidiary 73.9 No
5 Graphene Semiconductors Services Private Limited Subsidiary 73.9 No
6 Graphene Solutions Sdn. Bhd Subsidiary 73.9 No
7 Graphene Solutions Pte Ltd Subsidiary 73.9 No
8 Graphene Solutions Taiwan Ltd. Subsidiary 73.9 No
9 Hi-Tech Rock Products & Aggregates Limited Subsidiary 100.0 No
10 Kudgi Transmission Limited Subsidiary 51.0 No
11 L &T Hydrocarbon Caspian LLC Subsidiary 50.0 No
12 Ahmedabad-Maliya Tollway Limited Subsidiary 51.0 No
13 L&T Arunachal Hydropower Limited Subsidiary 100.0 No
14 L&T Aviation Services Private Limited Subsidiary 100.0 No
15 L&T Capital Company Limited Subsidiary 100.0 No
16 L&T Chennai-Tada Tollway Limited Subsidiary 51.0 No
17 L&T Realty Developers Limited Subsidiary 100.0 No
18 L&T Construction Equipment Limited Subsidiary 100.0 No
19 L&T Deccan Tollways Limited Subsidiary 52.8 No
20 L&T Innovation Campus (Chennai) Limited Subsidiary 100.0 No
21 L&T Finance Holdings Limited Subsidiary 66.2 No*
22 L&T Finance Limited Subsidiary 66.2 No
23 L&T Financial Consultants Limited Subsidiary 66.2 No
24 L&T Global Holdings Limited Subsidiary 100.0 No
25 L&T Himachal Hydropower Limited Subsidiary 100.0 No

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Does the entity indicated

Indicate
% of shares at column A, participate in
S. Name of the subsidiary/ associate companies whether
held by listed the Business Responsibility
No. (A) Subsidiary/
entity initiatives of the listed
Associate
entity? (Yes/No)
26 L&T Howden Private Limited Subsidiary 50.1 No
27 L&T Information Technology Services (Shanghai) Subsidiary 74.0 No
Co., Ltd.
28 L&T Information Technology Spain SL Subsidiary 74.0 No
29 L&T Infotech Financial Services Technologies Inc Subsidiary 74.0 No
30 L&T Infotech S. DE. RL. DE. CV. Subsidiary 74.0 No
31 L&T Infra Credit Limited Subsidiary 66.2 No
32 L&T Infra Investment Partners Advisory Private Subsidiary 66.2 No
Limited
33 L&T Infra Investment Partners Trustee Private Subsidiary 66.2 No
Limited
34 L&T Infrastructure Development Projects Limited Subsidiary 51.0 No
35 L&T Infrastructure Engineering Limited Subsidiary 100.0 No
36 L&T Interstate Road Corridor Limited Subsidiary 51.0 No
37 L&T Investment Management Limited Subsidiary 66.2 No
38 L&T MBDA Missile Systems Limited Subsidiary 51.0 No
39 L&T Metro Rail (Hyderabad) Limited Subsidiary 100.0 No
40 L&T Modular Fabrication Yard LLC Subsidiary 70.0 No
41 L&T Mutual Fund Trustee Limited Subsidiary 66.2 No
42 Panipat Elevated Corridor Limited Subsidiary 51.0 No
43 L&T Power Development Limited Subsidiary 100.0 No
44 L&T Power Limited Subsidiary 99.9 No
45 L&T Rajkot-Vadinar Tollway Limited Subsidiary 51.0 No
46 L&T Samakhiali Gandhidham Tollway Limited Subsidiary 51.0 No
47 L&T Sambalpur - Rourkela Tollway Limited Subsidiary 51.0 No
48 L&T Sapura Offshore Private Limited Subsidiary 60.0 No
49 L&T Sapura Shipping Private Limited Subsidiary 60.0 No
50 L&T Seawoods Limited Subsidiary 100.0 No
51 L&T Special Steels and Heavy Forgings Private Subsidiary 74.0 No
Limited
52 L&T Technology Services Limited Subsidiary 73.9 No*
53 L&T Technology Services LLC Subsidiary 73.9 No
54 L&T Technology Services (Shanghai) Co. Ltd. Subsidiary 73.9 No
55 L&T Technology Services (Canada) Limited Subsidiary 73.9 No
56 L&T Thales Technology Services Private Limited Subsidiary 54.6 No
57 L&T Transportation Infrastructure Limited Subsidiary 63.8 No
58 L&T Valves Limited Subsidiary 100.0 No
59 L&T-MHI Power Boilers Private Limited Subsidiary 51.0 No
60 L&T-MHI Power Turbine Generators Private Limited Subsidiary 51.0 No
61 L&T-Sargent & Lundy Limited Subsidiary 50.0 No
62 Larsen & Toubro (East Asia) Sdn. Bhd. Subsidiary 30.0 No
63 L&T Hydrocarbon Saudi Company LLC Subsidiary 100.0 No

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Does the entity indicated

Indicate
% of shares at column A, participate in
S. Name of the subsidiary/ associate companies whether
held by listed the Business Responsibility
No. (A) Subsidiary/
entity initiatives of the listed
Associate
entity? (Yes/No)
64 Larsen & Toubro Electromech LLC Subsidiary 70.0 No
65 Larsen & Toubro Heavy Engineering LLC Subsidiary 70.0 No
66 Larsen & Toubro Infotech Canada Limited Subsidiary 74.0 No
67 Larsen & Toubro Infotech Gmbh Subsidiary 74.0 No
68 Larsen & Toubro Infotech Limited Subsidiary 74.0 No*
69 Larsen & Toubro Infotech LLC Subsidiary 74.0 No
70 Larsen & Toubro Infotech Norge AS Subsidiary 74.0 No
71 Larsen & Toubro International FZE Subsidiary 100.0 No
72 Larsen & Toubro Kuwait Construction General Subsidiary 49.0 No
Contracting Company, With Limited Liability
73 Larsen & Toubro LLC Subsidiary 98.7 No
74 Larsen & Toubro Oman LLC Subsidiary 65.0 No
75 Larsen & Toubro Saudi Arabia LLC Subsidiary 100.0 No
76 Larsen & Toubro T&D SA (Pty) Limited Subsidiary 72.5 No
77 Larsen And Toubro Infotech South Africa (Pty) Subsidiary 51.5 No
Limited
78 Larsen Toubro Arabia LLC Subsidiary 75.0 No
79 LTH Milcom Private Limited Subsidiary 56.6 No
80 LTIDPL INDVIT Services Limited Subsidiary 51.0 No
81 Mudit Cement Private Limited Subsidiary 66.2 No
82 Nabha Power Limited Subsidiary 100.0 No
83 Nielsen+Partner Unternehmensberater GmbH Subsidiary 74.0 No
84 Nielsen&Partner Pty Ltd Subsidiary 74.0 No
85 Nielsen+Partner Pte Ltd. Subsidiary 74.0 No
86 Nielsen+Partner Unternehmensberater AG Subsidiary 74.0 No
87 Nielsen&Partner Co. Ltd. Subsidiary 74.0 No
88 PNG Tollway Limited Subsidiary 37.7 No
89 PT. Larsen & Toubro Hydrocarbon Engineering Subsidiary 95.0 No
Indonesia
90 Raykal Aluminium Company Private Limited Subsidiary 75.5 No
91 Ruletronics Limited, UK Subsidiary 74.0 No
92 Ruletronics Systems Inc Subsidiary 74.0 No
93 Seastar Labs Private Limited Subsidiary 73.9 No
94 Syncordis Limited, UK Subsidiary 74.0 No
95 Syncordis S.A. Luxembourg Subsidiary 74.0 No
96 Syncordis SARL, France Subsidiary 74.0 No
97 Syncordis PSF S.A. Subsidiary 74.0 No
98 Vadodara Bharuch Tollway Limited Subsidiary 51.0 No
99 L&T Valves USA LLC Subsidiary 100.0 No
100 L&T Valves Arabia Manufacturing LLC Subsidiary 100.0 No
101 Mindtree Limited Subsidiary 60.9 No*
102 Mindtree Software (Shanghai) Company Limited Subsidiary 60.9 No

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Does the entity indicated

Indicate
% of shares at column A, participate in
S. Name of the subsidiary/ associate companies whether
held by listed the Business Responsibility
No. (A) Subsidiary/
entity initiatives of the listed
Associate
entity? (Yes/No)
103 Bluefin Solutions Sdn. Bhd. Subsidiary 60.9 No
104 Lymbyc Solutions Private Limited Subsidiary 74.0 No
105 Lymbyc Solutions Inc Subsidiary 74.0 No
106 Powerup Cloud Technologies Private Limited Subsidiary 74.0 No
107 Larsen & Toubro Infotech UK Limited Subsidiary 74.0 No
108 Larsen & Toubro Qatar LLC @ Subsidiary 49.0 No
109 L&T Geostructure Private Limited Subsidiary 100.0 No
110 L&T Parel Project Private Limited Subsidiary 100.0 No
111 LTR SSM Private Limited Subsidiary 99.0 No
112 Orchestra Technology Inc. Subsidiary 73.9 No
113 LTI Middle East FZ-LLC Subsidiary 74.0 No
114 Cuelogic Technologies Private Limited Subsidiary 74.0 No
115 Cuelogic Technologies Inc. Subsidiary 74.0 No
116 Watrak Infrastructure Private Limited Subsidiary 51.0 No
117 Grameen Capital India Private Limited Associate 17.2 No
118 Indiran Engineering Projects and Systems Kish (LLC) Associate 50.0 No
119 International Seaports (Haldia) Private Limited Associate 14.2 No
120 L&T Camp Facilities LLC Associate 49.0 No
121 L&T-Chiyoda Limited Associate 50.0 No
122 Larsen & Toubro Qatar & HBK Contracting LLC Associate 50.0 No
123 Magtorq Private Limited Associate 42.8 No
124 Magtorq Engineering Solutions Private Limited Associate 39.2 No
125 Gujarat Leather Industries Limited @ Associate 50.0 No

Notes: * they have separate BRR/BRSR

# under strike-off process

@ under liquidation

VI. CSR Details

22. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: Yes
(ii) Turnover (in R): 101,000 crore
(iii) Net worth (in R): 67,114 crore 

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VII. Transparency and Disclosures Compliances

23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business
Conduct:

Grievance Redressal
Mechanism in Place FY21-22 Current Financial Year FY20-21 Previous Financial Year
Stakeholder (Yes/No)
group from Number of Number of
Number of Number of
whom complaints complaints
(If Yes, then provide web- complaints complaints
complaint is pending pending
link for grievance redress filed Remarks filed Remarks
received resolution resolution
policy)# during the during the
at close of at close of
year year
the year the year
Communities – 3 – – 9 3 –
Investors Yes – – – – –
(other than
shareholders)
Shareholders Yes – – – – – –
Employees and Yes 13 3 – 26 6 –
workers*
Customers* Yes 50 22 – 303 –
Value Chain Yes 6 1 – 7 2 –
Partners
(supply chain
partners)
Other Yes 4 – – 6 1 –
(Anonymous
email / letters)

* Data for employees, workers and customers is partially reported. The Company will strengthen its systems for complete coverage in FY23

# The policies guiding L&T’s conduct with all its stakeholders including grievance mechanism are available on the company’s website. The link to

the policies: https://www.larsentoubro.com/corporate/about-lt-group/corporate-policies/

Customer satisfaction score of 89% in FY22.

24. Overview of the entity’s material responsible business conduct issues

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social
matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or
mitigate the risk along-with its financial implications, as per the following format.

Financial
Indicate
implications of the
whether Rationale for
S. In case of risk, approach to risk or opportunity
Material issue identified* risk or identifying the
No. adapt or mitigate (Indicate positive
opportunity risk / opportunity
or negative
(R/O)
implications)
1. Customer Experience & O – – Positive
Satisfaction
2. Corporate Governance R – Policy revision/ upgradation/ Negative
Board review (Refer to
Principle–1)

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Financial
Indicate
implications of the
whether Rationale for
S. In case of risk, approach to risk or opportunity
Material issue identified* risk or identifying the
No. adapt or mitigate (Indicate positive
opportunity risk / opportunity
or negative
(R/O)
implications)
3. Business Ethics R – Whistle blower policy and its Negative
deployment. The Company
has a whistle blower policy for
its employees, vendors and
channel partners, for further
details refer to Principle–1
4. Employee & Workforce O – – Positive
Engagement, Wellbeing
5. Health & Safety R Training/ awareness/ Negative
technological upgradation/
review at senior level and
Board committee. L&T is
committed to its Zero Harm
to life.
For more details refer to
Principle–3
6. Human Rights & Labour R – L&T has always been Negative
Conditions committed to foster a culture
of caring and trust. This
is embedded in its various
corporate policies like
Environment, Health & Safety
(EHS) Policy, Whistle–Blower
policy, Protection of Women’s
Rights at Workplace Policy
and the Code of Conduct.
Training on various issues
related to human rights are
covered under new employee
induction, EHS training, POSH,
code of conduct etc. For more
details, refer to Principle 3.
7. Skilled Manpower O/R – Skill based trainings (Nine Positive/ negative
CSTIs spread across the
country train over 10,000
youth in construction and
allied skills per year. For
further details refer to
Principle 3.8 on training
given to employees for skill
upgradation. Also, refer
to chapter on Social &
Relationship Capital)
8. Sustainable Supply Chain O/R – Supplier/vendor Code of Positive/ negative
Conduct (COC) covers EHS
and Human Rights parameters
to be adhered and supply
chain partners must sign the
COC as a part of the contract
documents.

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Financial
Indicate
implications of the
whether Rationale for
S. In case of risk, approach to risk or opportunity
Material issue identified* risk or identifying the
No. adapt or mitigate (Indicate positive
opportunity risk / opportunity
or negative
(R/O)
implications)
9. Talent Management, Attraction, O/R – For details, refer to chapter Positive/Negative
Retention and Development on Human Capital in the
Integrated Report section.
10. Climate Action O – – Positive
11. Diversity, Inclusion & Equal O – – Positive
Opportunity
12. Data Security, Privacy, and R – Policy and deployment, Negative
Cybersecurity audits/ Cyber Security
Assurance Framework
(L&T has developed a
robust 5–year cyber security
& resiliency roadmap and
made investments in state of
art security platforms. The
Company has implemented
a groupwide Cyber Risk
Assurance Framework and
operationalised one of the
most advanced Security
Operations Centre to monitor
24X7 & respond to any cyber
incidents.)
13. Quality of Products and Project O/R – For details, refer to chapter on Positive
delivery Manufactured Capital in the
Integrated Report section.
14. Brand Management O – – Positive
15. Water, Waste & Hazardous O/R – For details, refer to chapter Positive/ Negative
Materials Management on Natural Capital in the
Integrated Report section.
16. Social engagement & Impact O – – Positive

*For more details, refer to chapter on Materiality Assessment in the Integrated Report section.

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SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

P1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and
Accountable.
P2 Businesses should provide goods and services in a manner that is sustainable and safe.
P3 Businesses should respect and promote the well-being of all employees, including those in their value chains.
P4 Businesses should respect the interests of and be responsive to all its stakeholders.
P5 Businesses should respect and promote human rights.
P6 Businesses should respect and make efforts to protect and restore the environment.
P7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible
and transparent.
P8 Businesses should promote inclusive growth and equitable development.
P9 Businesses should engage with and provide value to their consumers in a responsible manner.

Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
Policy and management processes
1. a. Whether your entity’s policy/ Y Y Y Y Y Y Y Y Y
policies cover each principle and its
core elements of the NGRBCs. (Yes/
No)
b. Has the policy been approved by Y Y Y Y Y Y Y Y Y
the Board? (Yes/No)
c. Web Link of the Policies, if
https://www.larsentoubro.com/corporate/about-lt-group/corporate-policies/
available
2. Whether the entity has translated the Y Y Y Y Y Y Y Y Y
policy into procedures. (Yes / No)
3. Do the enlisted policies extend to your Y Y Y Y Y Y Y Y Y
value chain partners? (Yes/No)
4. Name of the national and international ISO 14001 ISO 45001 IIRC IR Indian ISO14001 - IIRC IR IIRC IR
codes/certifications/labels/ standards and ISO Principle labour Principle Principle
(e.g. Forest Stewardship Council, 45001 codes
Fairtrade, Rainforest Alliance, Trustea)
standards (e.g. SA 8000, OHSAS,
ISO, BIS) adopted by your entity and
mapped to each principle.SEBI (Listing
obligation and Disclosure Requirements)
Regulations, 2015
5. Specific commitments, goals and (a) (b) (c) (d) (e)
targets set by the entity with defined
timelines, if any.
6. Performance of the entity against the (a) (b) (c) (d) (e)
specific commitments, goals and targets
along-with reasons in case the same are
not met.

a) 40% Green Business by FY26, achieved 38.2% for FY22.

b) Zero Harm Vision to life, environment and property.
c) Emission reduction intensity up to 25% by FY26.
d) Achieve carbon neutrality by 2040 and water neutrality by 2035.
e) Number of lives to be impacted by CSR projects: 1.5 million by FY26, achieved 1.13 million in FY22.
Governance, leadership, and oversight
7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and
achievements (listed entity has flexibility regarding the placement of this disclosure).

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L&T is a conglomerate with dominant presence in EPC, High Tech manufacturing, IT Services, and Financial Services.
These businesses, the EPC and manufacturing in particular, have a significant impact on the environment in terms of
GHG emission, energy and water consumption. Given the strong growth aspiration of the Company, the challenge is to
balance the growth pursued while minimising its impact on the environment, and also achieve net zero position for both
water consumption and carbon footprint by 2035 and 2040 respectively.
In the short term, the Company’s aim, even as it grows, is to flatten the emission curve in the next five years, through
improved efficiency in the use of energy and increased use of renewable energy across its operations. This apart, the
Company also aims to improve its share of green business offerings over the years, which currently stands at around
38%.
Energy transition from fossil fuels to green energy is an established mega trend globally and some of the businesses of
the Company like thermal power has already felt the impact of this over the last few years. Another business which could
experience an impact over the next 5-10 years is the hydrocarbon business. The Company is therefore evaluating its
prospects in green energy areas including green hydrogen, battery storage and offshore wind among others. Overall, the
Company intends to reduce its presence across the fossil fuel space and build new businesses around green energy.
The EPC business is very labour intensive, and post-Covid the availability of skilled labour has become a challenge.
This constraint could magnify over time as India increases its thrust on infrastructure development, an area that the
Company seeks to grow in. Recognizing this, the Company has increased its off-site fabrication and its thrust on pre-cast
technology. In addition, the Company is augmenting its mechanization and automation capabilities for on-site work.
These initiatives are intended to reduce manual component of work, increase worker productivity, reduce wastages and
thereby, improve the cost competitiveness of the business.
In an economy facing shortage of skilled workforce, the Construction Skills Training Institutes (CSTIs) run by the
Company’s CSR department in India are worthy of mention. Setup in 1995 and currently with a network of 9 CSTIs
spread across the country, CSTIs trains over 10,000 youth in construction and allied skills every year. These skill training
institutes have grown over the years with a unique industry connect leveraging on the Company’s rich experience and
deep knowledge of contemporary as well as new-age practices of the construction industry.
The Company’s CSR programmes are focused on strengthening the country’s social infrastructure with its thrust in areas
such as water and sanitation, education, health and skill building. The success of these initiatives lies in delivering impact
with optimum use of resources, leveraging strengths and collaborating on areas where capacities need to be built. The
Company’s Integrated Community Development Programmes (ICDP) being aligned closely to the Sustainable Development
Goals (SDGs), is an example of one such effort. The ICDP was initiated 6 years back, specifically in remote water-scarce
locations of Maharashtra, Tamil Nadu and Rajasthan. The program was designed with a focus on improving the quality
of life of the community by achieving water sufficiency and further expanding into various aspects of sanitation, health,
education and livelihood. The ICDP consists of a unique mix of civil interventions (water harvesting structures, farm
field structures, sanitation units etc.) as well as targeted programs to build community-based institutions, to provide
ownership, accountability, self-management and sustainability of the interventions. These locations have become self-
sustaining now, and the Company is replicating this model in other locations.
Across industries, cybersecurity has also become a key concern for the business continuity. Vulnerabilities such as
targeted attacks, ransomware threats and phishing have raised the importance of protecting the IT infrastructure and
sensitive data of the Company. The Company has developed a robust 5-year cyber security & resiliency roadmap and
made investments in state of art security platforms. It has implemented a groupwide Cyber Risk Assurance Framework
and operationalised one of the most advanced Security Operations center to monitor developments 24X7 and respond
effectively when required to any cyber incidents.
On the governance front, the Management and the Board are involved in active review of the Company’s ESG
performance on a regular basis. The Company periodically reassesses all key policies such as Sustainability Policy,
Supplier Code of Conduct Policy etc. To strengthen the policy framework further, two additional policies namely, Equal
Opportunity Policy and ‘Public Policy Advocacy’ Policy have been recently adopted by the Company.
While BRSR is mandatory from FY23, as a responsible corporate citizen, the Company has decided to report on its
business responsibility and sustainability practices from FY22 onwards. This BRSR is a testimony of the Company’s
commitment to sustainability in all its dimensions and the Company will constantly endeavour to strengthen this further
on a continuing basis.

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8. Details of the highest authority responsible for implementation and oversight of the Business Responsibility policy (ies).
Name: Mr. R. Shankar Raman
Designation: Whole-time Director & Chief Financial Officer
DIN: 00019798
9. Does the entity have a specified Committee of the Board/ Director responsible for decision making on sustainability
related issues? (Yes / No). If yes, provide details.
Yes, the Company’s CSR and Sustainability Committee is responsible for sustainability related issues
10 Details of Review of NGRBCs by the Company:
Indicate whether review was undertaken by
Frequency (Annually/ Half yearly/ Quarterly/
Director / Committee of the Board/ Any other
Subject for Review Any other – please specify)
Committee
P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9
Performance against All the policies of the Company are approved by the Board and reviewed periodically or on a need basis by
above policies and follow Executive Committee as a part of ESG review.
up action1
During the review, the effectiveness of the policies is evaluated and necessary amendments to policies and
procedures are implemented.
Compliance with The Company complies with the extant regulations and principles as are applicable.
statutory requirements
of relevance to
the principles, and
rectification of any
non-compliances

11. P1 P2 P3 P4 P5 P6 P7 P8 P9
Has the entity carried out independent Yes. DNV India conduct audit in various ICs on different subjects such as ISO 14001,
assessment/ evaluation of the working of its ISO 45001, ISO 50001 and sustainability assurance. During the audit process they check
policies by an external agency? (Yes/No). If working of the related policies of the company. They do it through checking policy elements,
yes, provide name of the agency. procedures, action plans etc.

12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:
Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
The entity does not consider the Principles material to its NA NA NA NA NA NA NA NA NA
business (Yes/No)
The entity is not at a stage where it is in a position to formulate NA NA NA NA NA NA NA NA NA
and implement the policies on specified principles (Yes/No)
The entity does not have the financial or/human and technical NA NA NA NA NA NA NA NA NA
resources available for the task (Yes/No)
It is planned to be done in the next financial year (Yes/No) NA NA NA NA NA NA NA NA NA
Any other reason (please specify) NA NA NA NA NA NA NA NA NA
NA- Data not available

1 Details of performance against some of the targets are available in the Integrated report section.

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SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with
key processes and decisions. The information sought is categorized as “Essential” and “Leadership”. While the essential
indicators are expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be
voluntarily disclosed by entities which aspire to progress to a higher level in their quest to be socially, environmentally and
ethically responsible.

Principle 1: Businesses should conduct and govern themselves with integrity and in a manner
that is Ethical, Transparent and accountable.
Essential Indicators
1. Percentage coverage by training and awareness programmes on any of the principles during the financial year:

% age of persons in
Topics/principles covered
Total Number of training and respective category
Segment under the training and its
awareness programmes held covered by the awareness
impact
programmes
Board of Directors 20 manhours Business, strategy, risk and 100%
update of laws
Key Managerial Personnel 20 manhours Business, strategy, risk and 100%
update of laws
Employees other than BOD and 5,539 no of programmes Business Principles for 97.4%
KMPs Responsible Organisation Code
of Conduct and principles of
Corporate Governance
Workers 929,901 manhours (Trainings EHS training 100% (EHS Induction Training
and Awareness) is mandatory for all the workers
who resume work)

2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the
entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year, in the
following format:
The Company had no monetary and non-monetary fines / penalties /punishment/ award/ compounding fees/ settlement
amount paid in proceedings (by the entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial
institutions, in the financial year FY22 based on materiality thresholds.

Monetary
Name of the
regulatory/ Has an appeal
NGRBC Principle enforcement Amount (in INR) Brief of the Case been preferred?
agencies/ judicial (Yes/No)
institutions
Penalty/ Fine – – NIL – –
Settlement – – NIL – –
Compounding Fee – – NIL – –

Non-Monetary
Name of the
regulatory/ Has an appeal been
NGRBC Principle Brief of the Case
enforcement agencies/ preferred? (Yes/No)
judicial institutions
Imprisonment – – – –
Punishment – – – –

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3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or
non-monetary action has been appealed:
Not applicable

Case Details Name of the regulatory/ enforcement agencies/ judicial institutions

– –

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a
web-link to the policy.
Yes, The Company has ‘zero tolerance’ of any practice that may be classified as corruption, bribery or giving or receipt of
bribes and the same has been mentioned in its Code of Conduct. The objective of this policy is to serve as a guide for all
directors, executives, employees and associated persons for ensuring compliance with applicable anti-bribery laws, rules
and regulations. This policy is applicable to all individuals working at all levels and grades, including Board Members and
Senior Managerial Personnel, other employees, consultants, interns, contractors, agency staff, agents or any other person
associated with the Company and such person acting on behalf of the Company.
5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement
agency for the charges of bribery/ corruption:
There have been no cases involving disciplinary action taken by any law enforcement agency on the charges of bribery /
corruption against directors / KMPs / employees / workers that have been brought to the Company’s attention.

FY21-22 FY20-21
(Current Financial Year) (Previous Financial Year)
Directors – –
KMPs – –
Employees – –
Workers – –

6. Details of complaints with regards to conflict of interest:

FY21-22 FY20-21
(Current Financial Year) (Previous Financial Year)
Number Remarks Number Remarks
Number of complaints received in relation to issues of Conflict of – – – –
Interest of the Directors
Number of complaints received in relation to issues of Conflict of – – – –
Interest of the KMPs

7. Provide details of any corrective action taken or underway on issues related to fines/ penalties / action taken by
regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest.
Not applicable
LEADERSHIP INDICATORS
1. Awareness programmes conducted for value chain partners on any of the principles during the financial year:

% age of value chain partners covered

Total number of awareness programmes Topics/principles covered under the (by value of business done with
held training such partners) under the awareness
programmes
2,618 participants Environment, health and safety trainings Varying from 40% to 65%*
and awareness, awareness sessions on BRSR
and 9 principles therein

*The top 25 value chain partners (supply chain partners) and also many other suppliers have been covered by the awareness sessions. These
supply chain partners comprise 40% to 65% (by value) across the various business verticals. The Company has excluded government entities from
the list of its value chain partners (supply chain partners) for these awareness training.

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2. Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/No) If
yes, provide details of the same.
The Company has processes on management of conflict of interests involving members of the Board which may arise
due to Directors joining the Boards of other companies and even conflicts which would take place during the course
of normal business activities. The process allows the Directors to recuse themselves from the discussions pertaining
to the conflict of interest. The Directors have to exercise their responsibilities in a bonafide manner in the interest of
the Company, should not allow any extraneous considerations that may vitiate their exercise of objective independent
judgment in the paramount interest of the Company and not abuse their position to the detriment of the Company for
the purpose of gaining direct or indirect personal advantage. Any conflict of interest arising with the Board Members
needs to be reported to the Chairman of the Audit Committee/Chairman of the Board.

Principle 2: Businesses should provide goods and services in a manner that is sustainable and safe
ESSENTIAL INDICATORS
1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and
social impacts of product and processes to total R&D and capex investments made by the entity, respectively.
Current F Y Previous F Y Details of improvements in
FY21-22 (Cr) FY20-21 (Cr) environmental and social impacts
R&D – – –
Capex – – –
L&T conducts R&D linked to environmental and social initiatives, however currently the expenditures are not tracked.

2. a. Does the entity have procedures in place for sustainable sourcing?

The Company has a procedure for sustainable sourcing where all the new and existing supply chain partners are
mandatorily evaluated on environment, health & safety and sustainability parameters before onboarding. Also,
supplier/vendor Code of Conduct (COC) covers EHS and Human Rights parameters to be adhered and value chain
partners (supply chain partners) must sign the COC as a part of the contract documents.
b. If yes, what percentage of inputs were sourced sustainably?
It is mandatory to furnish the evaluation questionnaire (EHS and sustainability parameters) before onboarding as
value chain partners (supply chain partners) and it has 100% coverage.
3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for
(a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste.
The Company does not have any specific product to reclaim at the end of life. However, at the project and operation
sites, there are systems in place to recycle, reuse and dispose in line with regulatory requirement for the above waste
being generated during course of construction and operation.
4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether the waste
collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If
not, provide steps taken to address the same.
EPR is not applicable as the major business of the Company is construction and associated services and the Company
does not manufacture any consumer products. The Company manufactures few heavy construction machineries,
specialised industrial units and defence products. There is no specific plastic, electrical and electronic product
manufactured where EPR is applicable under E-Waste Management.

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Leadership Indicators
1. Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for manufacturing industry) or
for its services (for service industry)? If yes, provide details in the following format?
Yes, the Company has conducted one LCA study for one of its products (Diamond Green Diesel Reactor) from the Heavy
Engineering business vertical in FY22 period.
Results
Boundary for Whether
communicated in
% of total which the Life conducted by
public domain (Yes/
NIC Code Name of Product/ Service Turnover Cycle Perspective/ independent
No)
contributed Assessment was external agency
If yes, provide the
conducted (Yes/No)
web-link.
281 Diamond Green Diesel Reactor Not available Cradle to Gate Yes No

2. If there are any significant social or environmental concerns and/or risks arising from production or disposal of your
products / services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other means, briefly
describe the same along-with action taken to mitigate the same.
Name of Product /
Description of the risk/concern Action Taken
Service
Diamond Green The LCA study concludes that maximum It has been recommended to look for green steel or
Diesel Reactor environmental impact is associated with procurement recycled steel for the manufacturing of this product
of primary raw material (steel) and the energy without compromising the quality of raw material. Also,
consumption (grid source) associated with the it has been advised to consider usage of renewable
manufacturing process. Other than these, there source of energy in the manufacturing process.
is almost negligible impacts in the manufacturing Management is evaluating this recommendation on
process. feasibility of adoption.

3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing
industry) or providing services (for service industry).
Recycled or re-used input material to total material
Indicate input material
FY 21-22 FY 20-21
Fly ash and Ground Granulated Blast-furnace Slag in place of Cement 11.9% 14.2%
Crushed sand in place of Natural Sand 29.4% 33.4%

4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and
safely disposed, as per the following format:
Not applicable as the Company does not have any specific consumer product except heavy construction machinery,
valves and defence products and there is no product reclamation at the end of the product life. However, the waste
material generated at the operation and project sites are reused, recycled and disposed as per the applicable regulatory
requirements.
FY21-22 (Current Financial Year) FY20-21 (Previous Financial Year)
Safely Safely
Re-used Re-cycled Re-used Recycled
Disposed disposed
Plastics (including packaging) – 5 Tons 0.1 Tons – 0 Tons –
E-waste – 112 Tons – 30 Tons –
Hazardous Waste – 732.9 Tons 1541.4 Tons – 1002.1 Tons 1785 Tons
Other Waste – – – – – –

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category.

Reclaimed products and their packaging materials as % of

Indicate product category
total products sold in respective category
NA

NA: Data not available

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Principle 3: Businesses should respect and promote the well-being of all employees, including
those in their value chains
Essential Indicators
1. a. Details of measures for the well-being of employees:
% of employees covered by
Accident Maternity Paternity Day Care
Health insurance
Category Total insurance benefits Benefits facilities
(A) Number % (B / Number % (C / Number % (D / Number % (E / Number % (F /
(B) A) (C) A) (D) A) (E) A) (F) A)
Permanent
employees
Male 45,615 45,615 100% 45,615 100% 0 0% 1,318 3% 1,443 3%
Female 6,540 6,540 100% 6,540 100% 1,338 20% 0 0% 211 3%
Total 52,155 52,155 100% 52,155 100% 1,338 3% 1,318 3% 1,654 3%
Other than
Permanent
employees
Male 6,954 4,145 60% 2,099 30% 0 0% 0 0 26 0%
Female 254 107 42% 67 26% 65 26% 0 0 5 2%
Total 7,208 4,252 59% 2,166 30% 65 1% 0 0 31 0%

b. Details of measures for the well-being of workers:

% of workers covered by
Accident Maternity Paternity Day Care
Health insurance
Category Total insurance benefits Benefits facilities
(A) Number % (B / Number % (C / Number % (D / Number % (E / Number % (F /
(B) A) (C) A) (D) A) (E) A) (F) A)
Permanent
workers
Male 3,304 3,304 100% 2,187 66% 0 0% 0 0% 1,215 37%
Female 3 3 100% 3 100% 2 67% 2 67% 2 67%
Total 3,307 3,307 100% 2,190 66% 2 0% 2 0% 1,217 37%
Other than
Permanent
workers
Male 194,376 58,834 30% 106,957 55% 0 0% 0 0% 0 0%
Female 2,379 2,049 86% 2,139 90% 210 9% 124 5% 165 7%
Total 196,755 60,883 31% 109,096 55% 210 0% 124 0% 165 0%

2. Details of retirement benefits, for Current FY and Previous Financial Year.

FY 21-22 FY 20-21
Current Financial Year Previous Financial Year
No. of No. of
Deducted and Deducted and
Benefits employees No. of workers employees No.of workers
deposited with deposited with
covered as covered as a % covered as covered as a %
the authority the authority
a % of total of total workers a % of total of total workers
(Y/N/N.A) (Y/N/N.A.)
employees employees
PF 100% 100% Y 100% 100% Y
Gratuity 100% 100% Y 100% 100% Y
ESI 100% 100% Y 100% 100% Y

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3. Accessibility of workplaces
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of
the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard.
Yes, most of the Company’s permanent office buildings and manufacturing locations are accessible to differently abled
employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016.
4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a
web-link to the policy.
Yes, the Company has Equal Opportunity Policy as per the Rights of Persons with Disabilities Act, 2016. This policy can be
accessed through the link https://larsentoubro.com/corporate/about-lt-group/corporate-policies/.
5. Return to work and Retention rates of permanent employees and workers that took parental leave.

Permanent employees Permanent workers#

Gender*
Return to work rate (%) Retention rate (%) Return to work rate Retention rate
Male – – – –
Female – – – –
Total 89% 96% – –
* Gender wise breakup for permanent employees and workers not available.
# The Company is putting a process in place to compile the above data for Permanent workers for FY23.

6. Is there a mechanism available to receive and redress grievances for the following categories of employees and worker? If
yes, give details of the mechanism in brief.

Yes/No (If Yes, then give details of the mechanism in brief)

Permanent Workers Yes. Grievance redressal mechanism is available at factory & project site establishments.
Complaints can be raised through the toll-free number provided at project site and
Other than Permanent Workers manufacturing/factory set up or directly reported to the admin and industrial relation personnel.
Also, grievances can be raised through e-mails and all the grievances that are received through
different platforms are directed to the respective function owner and resolved through the
respective IR and Admin function.
Permanent Employees The Company has HR Connect application on L&T Intranet (My Zone) which is accessible to all
employees (except other than permanent employees). On this platform, they can raise their
Other than Permanent Employees
complaints and grievances which are addressed by HR. The grievances can be also raised through
whistle-blower system through dedicated mail and toll-free number.

7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:

FY 21-22 (Current Financial Year) FY 20-21 (Previous Financial Year)

No. of No. of
employees/ employees/
Total Workers in Total workers in
employees/ respective Employee/ respective
Category
worker in category, % (B / A) workers in category, % (D / C)
respective who are respective who are part
category (A) part of category (C) of association
association(s) (s) or Union
or Union (B) (D)
Total Permanent Employees – – – – – –
- Male – – – – – –
- Female – – – – – –
Total Permanent Workers 3,307 2,291 69% 2,852 2,351 82%
- Male 3,304 2,288 69% 2,849 2,348 82%
- Female 3 3 100% 3 3 100%

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8. Details of training given to employees and workers:

FY 21-22 FY 20-21
Current Financial Year Previous Financial Year
Category On Health and On Health and
On Skill upgradation On Skill upgradation
Total (A) safety measures Total (D) safety measures
No. (B) % (B / A) No. (C) % (C / A) No. (E) % (E / D) No. (F) % (F / D)
Employees
Male 42,618 8,271 19% 11,505 27% 47,854 8,427 18% 17,475 37%
Female 2,997 609 20% 984 33% 3,158 561 18% 1,180 37%
Total 45,615 8,880 19% 12,489 27% 51,012 8,988 18% 18,655 37%
Workers
Male 197,680 173,248 88% 8,813 4% 258,910 114,333 44% 6,850 3%
Female 2,382 369 15% 270 11% 962 559 58% 24 2%
Total 200,062 173,617 87% 9,083 5% 259,872 114,892 44% 6,874 3%

9. Details of performance and career development reviews of employees and worker:

FY21-22 FY20-21
Category (Current Financial Year) (Previous Financial Year)
Total (A) No. (B) % (B / A) Total (C) No. (D) % (D/C)
Employees
Male 38,644 33,354 86% 47,854 47,854 100%
Female 2,709 1,931 71% 3,158 3,158 100%
Workers
(Permanent
Workers only)
Male 3,304 2,640 80% 3,805 3,805 100%
Female 3 1 33% 3 3 100%

For FY22 the review process is still in progress and will be completed by FY24

10. Health and safety management system:

a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/No). If
yes, the coverage of such system?
Yes, occupational health and safety management system has been implemented by the entity. It covers the entire
operations covering all construction project sites, manufacturing units, industrial production facilities and offices. In
line with L&T’s vision, philosophy, and EHS Policy, management systems have been implemented in accordance with
the International Standards ISO 45001:2018 (Occupational Health and Safety Management System Standard). EHS
Management System defines the mandatory requirements for the systematic management and execution within the
organisation. The Company’s Integrated EHS Management System is accredited by international certification bodies.
b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by
the entity?
The Company has in place systematic risk management process to identify and control all the hazards in construction
project sites, manufacturing units, industrial production facilities and offices. The Company’s risk management
process is applied through five steps (Identification, Assessment, Mitigation, Monitoring and Reporting) and is the
key driver for controlling the risk of EHS in business. All relevant stakeholders including construction engineers,
design and planning engineers, production in charges and EHS team members are involved in risk assessments and
the risk management process, Risk Assessments & Safe Work Method Statement are developed and approved prior
to starting any work activity. All identified risks and risk mitigation plans are required to be documented, approved
and communicated to all relevant parties involved in the activity.
c. Whether you have processes for workers to report work related hazards and to remove themselves from such risks.
Yes, the Company has processes for workers to report work related hazards and to remove themselves from such
risks.

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d. Do the employees/workers of the entity have access to non-occupational medical and healthcare services?
Yes, medical centres and first aid facilities are available for both employees and workers.
11. Details of safety related incidents, in the following format:

FY21-22 FY20-21
Safety Incident/Number Category
Current Financial Year Previous Financial Year
Lost Time Injury Frequency Rate (LTIFR) (per one Employees
million-person hours worked) 0.1 0.1
Workers
Total recordable work-related injuries Employees 10 8
Workers 122 75
No. of fatalities Employees 0 2
Workers 25 23
High consequence work-related injury or Employees 0 1
ill-health (excluding fatalities) Workers 3 0

12. Describe the measures taken by the entity to ensure a safe and healthy workplace.
As a part of the EHS Management system, a project specific EHS plan is prepared at the inception of every new project
that determines the broad parameters of EHS management. This EHS plan identifies the hazardous operations and
the risks arising from such hazards which are within the scope of the work. It even specifies the required integrated
preventive measures (Controls) to mitigate the same.
The Management provides strong demonstrable visible leadership and commitment towards EHS through personal
examples and actions. This is the first principle of L&T L.I.F.E (Live Injury Free Each Day) leadership commitment.
Management has participated in EHS meetings, conducted site Inspections and EHS Audits, to encourage and develop
a positive attitude towards EHS within L&T projects and operations. Management ensured that sufficient EHS resources
were available and allocated responsibilities for implementing the L&T LIFE framework. Roles & responsibilities, targets &
objectives, goals, training needs & required behaviours had been clearly defined, agreed & communicated throughout the
entire organisation & structure.
To support this further, there is a systematic risk management process in place to identify and control all the hazards in
projects/units which requires verification of conformity. The EHS management system has various procedures and EHS
norms. Therefore, a process has been established for carrying out Internal EHS audits. This process mandates to organise
internal audits for all active projects and it is verified by each IC head office audit team at least once in six months.
Certain projects were selected for frequent auditing, depending on their status, importance, and risk profile. This was in
addition to any external audits carried out by accredited auditors.
13. Number of Complaints on the following made by employees and workers:

FY 21-22 FY 20-21
Current Financial Year Previous Financial Year
Benefits Pending Pending
Filed during Filed during
resolution at Remarks resolution at Remarks
the year the year
the end of year the end of year

Working Conditions Data not available, to be tracked in FY23

Health & safety Data not available, to be tracked in FY23

Others NA 2 POSH 3 NA POSH

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14. Assessments for the year:

% of your plants and offices that were assessed (by entity or statutory authorities or
third parties)
Health and safety practices 100%
Working Conditions L&T has robust Internal audit process in line with ISO 45001:2018 requirement and it covers all
construction projects, offices and manufacturing units. At least one internal audit is conducted in
a financial year for all such operations/sites/ manufacturing units/offices.

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant
risks / concerns arising from assessments of health & safety practices and working conditions.
The Company’s EHS Council undertakes a review of all accidents and incidents, and formulate procedures based on
risk analysis of data gathered through respective IC. It makes use of advanced technology such as vison analytics/AI to
detect any health & safety hazards and gather data. This data is used for predictive analysis, measurement of incidents
and unsafe behaviours. This enables identification of the key areas of risk which in turn guides the projects to proactively
manage and focus resources to prevent any accidents or incidents. Such analysis is shared throughout the group IC
structure, to support L&T Mission ZERO HARM objective.
In view of this collective approach, efforts have been made in understanding the Company’s high- risk profile holistically
as well as in general. EHS risk management culture has been inculcated across the Company. Various steps have been
taken including:
• Implementation of HSE Surveillance Rating
• Developed HSE Training Modules on high-risk activities.
• Developed standardized template of HSE Lessons Learnt (EHS Alert) and these alerts are shared in the centralized
knowledge sharing platform which can be accessed by all employees.
• Enrolled Subject Matter Experts (SMEs) into the HSES Management Community of central knowledge sharing
module.
• Implementation of senior management audits based on standard checklist developed by the EHS Council.
The outcome of the efforts has been to capture the high-risk hazardous activities ubiquitous in various L&T’s Business
verticals. This helps to devise an action plan to enhance the competency among stakeholders in managing such activities
with higher degree of awareness and suitable training using technology such as AR/VR from competent external agencies
as well as subject matter experts. Each employee of the organisation strives to achieve EHS excellence in their respective
functions and align their actions and business decisions.
LEADERSHIP INDICATORS
1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (B)
Workers
The Company extends life insurance coverage for work related death of its employees and workers.
2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the
value chain partners.
Adherence to the applicable statutory provisions including payment and deduction of statutory dues is incorporated in
the contract agreement with the value chain partners. The Company makes sure that all the relevant clauses dealing with
statutory compliance are validated and honoured by both sides.

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3. Provide the number of employees / workers having suffered high consequence work- related injury / ill-health / fatalities
(as reported in Q11 of Essential Indicators above), who have been rehabilitated and placed in suitable employment or
whose family members have been placed in suitable employment:

No. of employees/workers that are

rehabilitated and placed in suitable
Total no. of affected employees/workers*
employment or whose family members have
Benefits
been placed in suitable Employment
FY21-22 FY20-21 FY21-22 FY20-21
(Current FY) (Previous FY) (Current FY) (Previous FY)
Employees 0 1 – 1
Workers 28 25 2 1

*All the deceased workers and employees resulting from work related injuries have received the insurance money.

4. Does the entity provide transition assistance programmes to facilitate continued employability and the management of
career endings resulting from retirement or termination of employment?
The Company provides transition assistance programmes to facilitate continued employability and the management of
career endings resulting from retirement.
5. Details on assessment of value chain partners (Supply chain partners):

% of value chain partners (by value of business done with such partners) that were assessed
Health and safety practices Varying from 40% to 65%
Working Conditions (The top 25 suppliers and large number of other suppliers are assessed through a detailed checklist of
more than 40 questions on EHS parameters. The top 25 suppliers account for 40% to 65% by value of
business done with such partners.)

6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from assessments
of health and safety practices and working conditions of value chain partners.
As per the internal EHS audit procedure and assessment carried out, all the observations and non-conformances are
properly recorded and notified for closeout. Once closeouts are done, they are recorded with details of closeouts. These
details can be retrieved from respective sites, manufacturing units and operations.
The Company, based on all EHS analysis data gathered, has developed several procedures aligned to Sub-contractor
procurement and management. The Health, Safety & Environment Management system has been reviewed and aligned
to be a part of and fully incorporated into the contract between sub-contractor and the Company. Its purpose is to set
forth the areas of EHS concerns and requirements routinely. This subcontractor system is intended to supplement any
contractual requirements, including EHS Management System manual, guidelines, Standard Operating Procedures, any
requirements of client, as well as sub-contractor’s own EHS Programme.
All the suppliers and contractors of the Company are evaluated on their safety infrastructure processes and strengths
before awarding a contract. The continued monitoring and measuring of suppliers and contractors ensure a
comprehensive safe environment. This is further enhanced with regular refresher training sessions and capacity-building
programmes. In addition, periodic site visits by the senior management and site audits improve the EHS performance.

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Principle 4: Businesses should respect the interests of and be responsive to all its stakeholders
Essential Indicators
1. Describe the processes for identifying key stakeholder groups of the entity.
L&T’s business is primarily EPC – engineering, procurement, construction, and high-tech manufacturing. Hence, in line
with its business models, the Company has identified the following as key stakeholder groups:

Stakeholder Group Basis of Identification

Suppliers/Contractors EPC and high-tech manufacturing have significant dependence on supply chain partners for

i) Sourcing of key raw materials e.g., cement, aggregates, steel and other materials for construction
projects, and high-grade metals, subcomponents and other inputs for manufacturing business.

ii) Outsourcing of business activities e.g., low-end civil works in construction projects and low-end
manufacturing

To maintain sustainable growth, these partners are key elements in meeting the delivery and cost objectives
for various contracts.
Government Government (central and state) orders make up ~40% of the Company’s current orderbook. Additionally,
orders from Government owned enterprises contribute to ~44% of the orderbook and therefore, they are
the largest clients for the businesses. In addition to providing the business, they also determine policies for
various areas as well as determine the future plans for various sectors.
Customers Private sector makes up ~16% of the orderbook and plays an important role in business plans of the
company. Many of them are long-term clients which offer repeat business over period of years and also act
as partners in developing new solutions or business offerings.
Employees and Construction is a labour-intensive activity, and L&T employs over 200,062 workers in addition to >50,000
Workforce of its own employees (including manufacturing). Hence, their skills development, health and well-being are
important for the Company’s ongoing and future operations.
Regulatory bodies Various business units of the Company operate in variety of sectors, each of which are governed by
specific regulatory bodies. In addition to this, there are bodies which oversee different steps in EPC and
manufacturing air pollution control. It becomes important to understand priorities of these agencies and
address their concerns, if any, to maintain compliance levels and establish benchmark performance levels.
Shareholders and Shareholders and investors make an important contribution to the growth of the company by providing
Investors financial resources for short term i.e., working capital and long term i.e., capital expenditure and
investments. They also play an important role through exercise of their voting rights with respect to
important plans of the Company.
Media Media acts as important channel of communication of Company’s performance, policies and plans. They also
help in reverse loop in highlighting concerns or issues related to the Company. In order to ensure that there
are no gaps in communication, engagement with media entities is a continuous process.
Communities L&T helps catalyse socio-economic development of communities around its premises and at various locations
across the country. Focus is on under-privileged and marginalized sections to enable them to bring them
on-par with others.

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2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group.

Whether
Purpose and scope of
identified as
Stakeholder Frequency of engagement including key
Vulnerable & Channels of Communication
Group engagement topics and concerns raised
Marginalized
during such engagement
Group (Yes/No)
Shareholders and No Press Releases, Info desk – an online As and when To understand their need
investors service, dedicated email ID for Investor required and expectation which are
Grievances, Quarterly Results, Annual material to the Company. Key
Reports, Integrated Reports, AGM topics are company’s financial
(Shareholders interaction), Quarterly performance, ESG performance
investor presentation, Investors meets, etc.
stock exchange filings and corporate
website.
Media No Press Releases, Quarterly Results, Annual As and when Performance reporting, good
Reports, Sustainability / Integrated required practices, show cases, awards
Reports, AGM (shareholders interaction), and achievements, initiatives
Access information and media etc are discussed and reported
interactions
Customers No Business interactions, client satisfaction Biannually Customer satisfaction and
surveys feedback. Project delivery,
timeline, challenges that are
faced during execution.
Government No Press Releases, Quarterly Results, Annual As and when Reporting requirement,
Reports, Sustainability / Integrated required statutory compliance, support
Reports, Stock Exchange filings, issue from authority and resolution
specific meetings, representations of issues.
Employees No • Employee satisfaction surveys, As and when Employees’ growth and
engagement surveys required benefits, their expectation,
• Circular and messages from volunteering, career growth,
corporate and line management professional development and
continuing education and skill
• Corporate social initiatives
training etc.
• Welfare initiatives for employee and
their families
• Online news bulletins to convey
topical developments
• A large bouquet of print and on-line
in-house magazines (some location-
specific, some business-specific), a
CSR Programme newsletter
• L&T Helpdesk, toll-free number
Suppliers/ No Regular supplier and dealer meets As and when Need and expectation,
contractors required schedule, supply chain issue,
need for awareness and other
training, their regulatory
compliance, EHS performance
etc.
Community Yes (Some of Direct engagement and through the As and when Their expectation and feedback
the Company’s Company’s CSR project implementation required on impact/success of CSR
CSR Project partners (NGO) project. Also review scale
Beneficiaries) up potentials and further
engagement scope.

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Leadership Indicators
1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social
topics or if consultation is delegated, how is feedback from such consultations provided to the Board.
The Company has set up various committees on economic and ESG governance and performance monitoring. These
committees are CSR & Sustainability Committee, ERM Committee, Stakeholder’s Relationship Committee, Investor
Cell, EHS Council, Green Campus Steercom etc. The CSR Committee is a committee constituted by the Board and is
chaired by an Independent Director. The Board Risk Management Committee is constituted by the Board and is chaired
by an Independent Director. The Stakeholders’ Relationship Committee is constituted by the Board and is chaired
by an Independent Director. The other Committees mentioned here are internally constituted committees. Quarterly
performance update and reviews were conducted by the respective committees on these topics and consolidated
performance report and outcome were presented to the Board in their quarterly meetings. Also, the Company has been
conducting stakeholder engagement exercise from time to time on ESG topics. This stakeholder engagement exercise
proceeds on a structural approach on frequency, delegation and reporting of outcome including stakeholders’ feedback
to the Board. As per their respective terms of reference, the various Committees (statutory as well as internal) meet
periodically to review the performance of the Company in various areas.
2. Whether stakeholder consultation is used to support the identification and management of environmental, and social
topics (Yes / No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were
incorporated into policies and activities of the entity.
Yes, outcome of the materiality assessment and stakeholder engagement exercise are taken forward to identify material
topic of concern on sustainability for the Company. Based on these material topics of significance to the Company,
further strategy development, policy setting, if required, objectives and goal setting with monitoring mechanism are
developed and implemented.
3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/ marginalized
stakeholder groups.
The engagement with vulnerable groups is through Integrated Community Development Project (ICDP) and health
initiatives. Some of the instances are given below:

Vulnerable group Concerns Action Taken Impact

Farmer community in Drought, Poverty, • Organised farmers community to form • Rise in ground water table
water stressed and Migration village development committees (VDC) and water made available to
Drought Prone Locations and Farmers Producer Organisation population of 96,812 and 191 Ha
(Men and Women) (FPO) land brought under cultivation in
nine ICDP locations
• Water made available with watershed
• Increase in household agricultural
and water conservation interventions
income
• Capacity buiding in sustainable • Reverse migration
agricultural practices
• Maintenance of water structures by the
VDC along with Panchayat
Rural Population Open defecation • Community awareness regarding • 4,000+ Toliets constructed and
not having access to leading to health making villages open defecation free made 67 villages ODF
sanitation facilities issues and social (ODF) • Women felt safe to use household
disgrace • Construction of toilets after ensuring toilet and saved social disgrace
water availability
• Village level monitoring committee
formed to ensure ODF status of the
village

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Vulnerable group Concerns Action Taken Impact

Disadvantaged rural Gender related issues • Women were part of needs assessment • 483 SHGs formed with
women – no decision making and their critical concerns were R 65.6 Lakh savings
power in household prioritised • Women are assuming community
and community • Village level women groups formed leadership positions -
related issues and organised in SHGs e.g. President of VDC
• Ensured equal representation of
women in VDCs and Communty level
Decision making
Underprivileged Unaffordable and • Affordable general health services 178,239 population accessing the
community from urban inaccessible health along with consultations in specialised services
and peri-urban areas services clinics provided through nine health
centres across India and mobIle health
vans

Principle 5: Businesses should respect and promote human rights

Essential Indicators
1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the
following format:

FY 21-22 FY 20-21
(Current Financial Year) (Previous Financial Year)
No. of No.
Category
employee/ employee/
Total (A) % (B / A) Total (C) % (D / C)
workers workers
covered (B) covered (D)
Employees
Permanent 45,615 7,178 16% 47,854 5,244 11%
Other than permanent 6,540 3,256 50% 3,158 1,327 42%
Total Employees 52,155 10,434 20% 51,012 6,571 13%
Workers
Permanent 3,307 2,070 63% 3,120 2,124 68%
Other than permanent 196,755 12,217 6% 232,075 11,451 5%
Total Workers 200,062 14,287 7% 235,195 13,575 6%

Training on various issues related to human rights are covered under new employee induction, EHS training, POSH, code of conduct etc.

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2. Details of minimum wages paid to employees and workers, in the following format:

FY 21-22 FY 20-21*
Current Financial Year Previous Financial Year
Category Equal to Minimum More than Minimum Equal to Minimum More than Minimum
Total (A) Wage Wage Total (D) Wage Wage
No. (B) % (B / A) No. (C) % (C / A) No. (E) % (E / D) No. (F) % (F / D)
Employees
Permanent 6,540 – – 6,540 100% – – – – –
Male 6,299 – – 6,299 100% – – – – –
Female 241 – – 241 100% – – – – –
Other than 6,540 – – 6,540 100% – – – – –
Permanent
Male 6,299 – – 6,299 100% – – – – –
Female 241 – – 241 100% – – – – –
Workers
Permanent 3,307 – – 3,307 100% – – – – –
Male 3,304 – – 3,304 100% – – – – –
Female 3 – – 3 100% – – – – –
Other than 196,755 195,220 99% 1,535 1% – – – – –
Permanent
Male 194,376 192,858 99% 1,518 1% – – – – –
Female 2,379 2,362 99% 17 1% – – – – –

*100% coverage of employees and workers towards payment of equal to/more than minimum wages; Breakup is not available FY21.

3. Details of remuneration/salary/wages, in the following format:

Male Female
Median remuneration/ Median remuneration/
Benefits salary/ wages of salary/ wages of
Number Number
respective category respective category
(In Rupees) (In Rupees)
Board of Directors (BoD) 8 6 Cr appx. – –
(Whole-time Directors)
Key Managerial Personnel 1 1.9 Cr appx. – –
Employees other than 48,544 9.2 Lakhs appx. 2,821 7.8 Lakhs appx.
BoD and KMP
Workers 1,957 9.1 Lakhs appx. 6 11.3 Lakhs appx.

Note –

a) CEO & CFO are Directors and included in Board of Directors.

b) Directors Salary includes Commission.

c) Salary Amount given above is the Median salary in the respective category.

4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or
contributed to by the business?
The Company does not have a single focal point for addressing the human rights issues. However, the HR head of the
respective IC is responsible for addressing the same.
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
All grievances are addressed as and when received by the respective Manufacturing Unit Heads/Project Managers/Business
Unit Heads through Admin/IR in coordination with HR. All the grievances received are duly investigated and appropriate
actions are taken to resolve the issue/complaint. Whenever required, disciplinary actions are initiated as deemed fit and
assistance from regulatory authority is sought.

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6. Number of Complaints on the following made by employees and workers:

FY 21-22 FY 20-21
Current Financial Year Previous Financial Year
Pending Pending
Benefits
Filed during resolution at Filed during resolution at
Remarks Remarks
the year the end of the year the end of
year year
Sexual Harassment 2 – – 3 – –
Discrimination at workplace – – – – – –
Child Labour – – – – – –
Forced Labour/ Involuntary Labour – – – – – –
Wages – – – – – –
Other human
Rights related issues – – – – – –

7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
The Company has a Whistle Blower Policy wherein the employees report, without fear of retaliation, any wrong
practices, unethical behaviour or noncompliance which may have a detrimental effect on the organisation, including
financial damage and impact on brand image. Also, the Code of Conduct of the Company requires employees to
behave responsibly in their action and conduct. Apart from that, the Company has Committees at every location for the
protection of women at workplace to ensure their rights, receive grievances, conduct investigation and to take actions.
8. Do human rights requirements form part of your business agreements and contracts?
Yes. The Company adheres to the UNGC (United Nation Global Compact) principles which include Human Rights clauses.
These clauses are part of the contracts with suppliers, partners, and NGOs, and are extended across the supply chain in
the form of Supplier/Vendor Code of Conduct.
9. Assessments for the year

% of your plants and offices that were assessed (by entity or statutory authorities or third
parties)
Child labour 100%
Forced/involuntary labour The Company undertook internal assessment through its EHS, HR and IR function.
Sexual harassment
Discrimination at workplace
Wages
Others – please specify

10. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 9 above.
No significant risks /concerns.
Leadership Indicators
1. Details of a business process being modified / introduced as a result of addressing human rights grievances/complaints.
No complaint received in FY22 for human rights violation. The Company revised its Supplier/Vendor Code of Conduct
including human rights compliance requirements for value chain partners.
2. Details of the scope and coverage of any Human rights due-diligence conducted.
The Company adheres to the UNGC (United Nation Global Compact) principles which include Human Rights clauses.
These clauses are part of the Company’s contracts in the form of Supplier/Vendor Code of Conduct (CoC) and is
extended across entire value chain. Fostering a culture of caring and trust are embedded in various corporate policies
like Environment, Health & Safety (EHS) Policy, Whistle-Blower policy, Protection of Women’s Rights at Workplace Policy

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and the CoC. The Company has laid down its CoC, which is applicable to Board members, senior management and
employees. The objective is to be committed and vigilant towards the ethical conduct of business processes and instil
a sense of ownership within the Company. All designated employees, including Board Members, adhere to the CoC
and provide an annual declaration of their compliance. The Code covers all aspects of functioning, including anti-trust
behaviour, information security, insider trading rules, professional engagements, use of Company assets and brand logo,
intellectual property, human rights etc. A separate CoC has been extended to vendors and service providers which covers
the need for compliance with environmental regulations, health and safety, labour practices, ethical behaviour, human
rights aspects, minimum wages, freedom of association, collective bargaining, prohibition of child labour and forced and
compulsory labour. The Company is committed to treating every employee with dignity and respect. The Company has
formulated a policy on ‘Protection of Women’s Rights at Workplace’ as per the provisions of the Sexual Harassment of
Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013 and Rules, 2013. The policy is applicable to all L&T
establishments located in India.
Further, the Company conducts regular audit and inspection through internal audit protocols by EHS and IR department
on EHS and human rights issues. The scope of audit covers all project sites, manufacturing units and offices including the
value chain partners (supply chain partners) that are active in the Company’s construction projects. Quarterly compliance
report is prepared by all business verticals and submitted to corporate compliance department for further review, record
and action plan. Additionally, the top 25 suppliers and large number of other suppliers are assessed through a detailed
checklist of more than 40 questions on EHS parameters.
3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of Persons
with Disabilities Act, 2016?
Most of the permanent facilities and office buildings are accessible to differently abled visitors, as per the requirements of
the Rights of Persons with Disabilities Act, 2016.
4. Details on assessment of value chain partners:

% of Value chain partners (by value of business done with such partners) that were assessed
Child labour Currently, this is not being assessed.
Forced/involuntary labour However, the Company’s Suppliers CoC addresses many of these aspects. All suppliers have to
necessarily sign the CoC for dealing with the Company and are expected to comply with its
Sexual harassment
requirements.
Discrimination at workplace
Wages
Others – please specify

5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 4 above.
Not applicable

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Principle 6: Businesses should respect and make efforts to protect and restore the environment
Essential Indicators
1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:

FY 21-22# FY 20-21#
Parameter
(Current Financial Year) (Previous Financial Year)
Total electricity consumption (A) 1,281,464 GJ 984,692 GJ
Total fuel consumption (B) 8,365,802 GJ 7,251,162 GJ
Energy consumption through other sources (C) – –
Total energy consumption (A+B+C) 9,647,266 GJ 8,235,854 GJ
Energy intensity per rupee of turnover (Total energy consumption/ turnover 9,693 GJ/Bn 9,564 GJ/Bn
in rupees)
Energy intensity (optional) – the relevant metric may be selected by the entity – –
#Scope excludes transit houses, guest houses, holiday homes and company owned residential facilities for both FY21-22 and FY20-21

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
Yes, the sustainability data assurance is carried out by DNV India.
2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and
Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have
been achieved. In case targets have not been achieved, provide the remedial action taken, if any.
The Company does not have any sites / facilities identified as designated consumers (DCs) under the Performance,
Achieve and Trade (PAT) Scheme of the Government of India.
3. Provide details of the following disclosures related to water, in the following format:

FY21-22# FY20-21#
Parameter
(Current Financial Year) (Previous Financial Year)
Water withdrawal by source (in kilolitres)
(i) Surface water 2,001,310 1,637,695
(ii) Groundwater 3,251,265 4,087,726
(iii) Third party water 1,369,437 980,433
(iv) Seawater / desalinated water – –
(v) Others 2,980,360 3,291,630
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) 9,602,372 9,997,484
Total volume of water consumption (in kilolitres) 9,410,093 9,677,094
Water intensity per rupee of turnover (Water consumed / turnover) 9,454 11,237
Water intensity (optional) – the relevant metric may be selected by the entity – –

#Scope excludes transit houses, guest houses, holiday homes and company owned residential facilities for both FY21-22 and FY20-21

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
Yes, the sustainability data assurance is carried out by DNV India.
4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation.
The Company has implemented a mechanism of Zero Liquid Discharge in 19 manufacturing units and office campuses out
of its 20 units where the Company reuses and recycles all the wastewater generated after treatment. All the wastewater

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is collected and treated in STP/ETPs and treated wastewater is completely recycled or reused as appropriate. The Company
is in the process of conducting comprehensive water audits of these facilities.
5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:

FY21-22 FY20-21
Parameter Unit
(Current Financial Year)* (Previous Financial Year)*
NOx Tonnes 0.9 1.0
SOx Tonnes 0.1 8.3
Particulate matter (PM) Tonnes 0.2 9.4
Persistent organic pollutants (POP) - – –
Volatile organic compounds (VOC) - – –
Hazardous air pollutants (HAP) - – –
Others – (ODS) Tonnes 0.6 2.6

*The data is partially reported for both the years

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
Yes, the assurance is carried out by DNV India.
6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity in the following format:

FY21-22*# FY20-21*#
Parameter Unit
(Current Financial Year) (Previous Financial Year)
Total Scope 1 emissions (Break-up of the GHG Metric tonnes of CO2
into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if Equivalent 615,035 533,423
available)
Total Scope 2 emissions (Break-up of the GHG Metric tonnes of CO2
into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if Equivalent 274,028 210,763
available)
Total Scope 1 and Scope 2 emissions per Metric tonnes of CO2 893 864
rupee of turnover Equivalent Per R Bn
#Scope excludes transit houses, guest houses, holiday homes and company owned residential facilities for both FY21-22 and FY20-21

*GHG emissions intensity have been derived as per the Scope of Reporting and as per ISO 14064-1 standard. The Company has also calculated
intensity (tCO2e/R Bn).

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
Yes- The assurance has been conducted by DNV India.
7. Does the entity have any project related to reducing Green House Gas emission? If yes, then provide details.
Yes, the Company undertakes projects and initiatives to reduce the Scope 1 and Scope 2 emissions and the Company has
set a target of reduction of energy intensity by 2.5% per annum for Scope-1 and 2% per annum for Scope-2 over 2021
as baseline. The Company has also declared its commitment to become carbon neutral by 2040 and water neutral by
2035. For more details, refer to chapter on Natural Capital in the Integrated Report section.

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8. Provide details related to waste management by the entity, in the following format:

FY21-22# FY20-21#
Parameter
(Current Financial Year) (Previous Financial Year)
Total Waste generated (in metric tonnes)
Plastic waste (A) 99 NA
E-waste (B) 9 17
Bio-medical waste (C) 0.1 NA
Construction and demolition waste (D) 2,439 1,328
Battery waste (E) 6 NA
Radioactive waste (F) 1.4 NA
Other Hazardous waste. Please specify, if any. (G) 2,447.5 2,215
Other Non-hazardous waste generated (H). Please specify, if any. (Break-up 46,457 44,484
by composition i.e. by materials relevant to the sector)
Total (A+B + C + D + E + F + G + H) 51,459 48,044
For each category of waste generated, total waste recovered
through recycling, re-using or other recovery operations (in metric
tonnes)
Category of waste
(i) Recycled 732.9 (Hazardous); 1,002.2 (Hazardous);
44,912 (Non-Hazardous) 36,548 (Non-Hazardous)
(ii) Re-used NA NA
(iii) Other recovery operations NA NA
Total 45,644.9 37,500.2
For each category of waste generated, total waste disposed by
nature of disposal method (in metric tonnes)
Category of waste
(i) Incineration 138.8 (Hazardous); 72.5 (Hazardous);
0 (Non-hazardous); 0 (Non-hazardous);
138.8 (TOTAL) 72.5 (TOTAL)
(ii) Landfilling 2,190 (Non-hazardous); 1,924 (Non-hazardous);
815.8 (Hazardous); 685.4 (Hazardous);
3,005.8 (TOTAL) 2,609.49 (TOTAL)
(iii) Other disposal operations NA NA
Total 3,144.6 2,681.9

Some of the waste data have been captured for the first time in FY22
#Scope excludes transit houses, guest houses, holiday homes and company owned residential facilities for both FY21-22 and FY20-21
NA: Data not available

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
Yes, the assurance has been conducted by DNV India.
9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your
company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to
manage such wastes.
L&T is certified under ISO 14001:2015 and the scope covers its entire operations including offices, headquarters,
construction projects and temporary facilities, manufacturing units and industrial facilities. Under the environmental
management system, the Company has guidelines for comprehensive waste management (which is under revision now)
for the identification, segregation, collection, recycling and final disposal. Wherever applicable the company follows
6R principles (Rethink, Reduce, Reuse, Recycle, Refuse and Repair) for waste management. Awareness sessions are
undertaken for the employees who have a role and responsibility towards waste management. Performance is monitored
and waste data is collected quarterly through the sustainability data management platform (SoFi).

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10. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries,
biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental
approvals / clearances are required, please specify details in the following format:

Whether the conditions of environmental

S. approval / clearance are being complied
Location of operations/offices Type of Operations
No. with? (Y/N) If no, the reasons thereof and
corrective action taken, if any.
1 Mumbai Coastal Road Project (package 1 and 4) Construction projects Yes
2 Mumbai Trans Harbour Link Project (Package 1 Construction projects Yes
and 3)
3 High Speed Rail Project (Package C4 and C6) Construction projects Yes
4 L&T Heavy Engineering, Ranoli Plant Industrial Facility Yes
5 Kattupalli Ship Building Facility Industrial Facility Yes
6 MFF Hazira Industrial Facility Yes
7 Proposed residential, I.T & Commercial building, Construction Yes
Saki Vihar Road, Powai East, Mumbai - 400 072.
8 Proposed Mixed use development of residential, Construction Yes
I.T, School & Commercial building Village Paspoli,
Saki Vihar Road, Powai West , Mumbai - 400 072.
9 DIAL Phase-3 A Expansion Project Construction Yes
10 Dwarka Expressway Project, Package 3 Construction Yes
11 TLT Factory - Pithampur Industrial Facility Yes
12 TLT Factory - Puducherry Industrial Facility Yes
13 TLT -TLTRS Kancheepuram Industrial Facility Yes
14 ISP PARWATI PHASE III & IV Construction Yes
15 L&T Defence Vizag facility Industrial Facility Yes
16 L&T Defence Coimbatore Facility Industrial Facility Yes
17 L&T Defence Talegaon Facility Industrial Facility Yes
18 A.M. Naik Heavy Engineering Complex Industrial Facility Yes

The above selected projects mentioned herein are the Company’s major construction projects and industrial facilities.

11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current
financial year:
The Company has not conducted any environmental impact assessments (EIA) of projects or industrial facility in FY22.
For the construction projects, it is under the scope of the proponents, and the Company ensures that all regulatory
permits and approvals are in place before starting of the construction work. For the ongoing construction projects, all the
applicable EIAs are carried out by the proponent before the construction project is awarded to the Company.

Whether conducted by Results communicated

Name and brief EIA Notification Relevant Web
Date independent external in public domain
details of project No. link
agency (Yes / No) (Yes / No)
None – – – – –

12. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water
(Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and
rules thereunder (Y/N).
All the Company projects and industrial facilities follow the applicable environmental law/ regulations/ guidelines in India,
such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment
Protection Act and rules thereunder. However, two cases of noncompliance have been raised by respective authority in its
construction vertical in Delhi NCR region which are presented here.

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If not, provide details of all such non-compliances, in the following format:

Any fines /
penalties /
Specify the law / regulation / action taken
S. Provide details of the Corrective action taken, if
guidelines which was not complied by regulatory
No. non- compliance any
with agencies such as
pollution control
boards or by courts
1 DPCC/NGT-AIR Pollution/ Dust generation leading to air Yes, a penalty of R 5 As instructed by DPCC (Delhi
CMC-IV/2021/1005 dated 02/07/2021 pollution at the Company’s Lakhs was imposed Pollution Control Board),
Pragati Maidan Construction by Delhi Pollution the following steps were
Project Control Committee implemented:
(DPCC) 1. Installed 4 Anti-Smog guns
around the project area.
2. Deployed dedicated water
sprinkling tankers to control
dust.
3. Covering of excavated
materials using Green cloth.

2 Air Pollution under the Provisions Dust generation leading to air Yes, a penalty 1. Regular water sprinkling
of Air Act, 1981 & Environmental pollution at Dwarka Expressway of R10 lakh was 2. Removal of dust on live
compensation. Project imposed by Regional roads
Office, Gurugram
3. Tree plantation
(N) Haryana State
Pollution Control 4. Use of anti-smog gun
Board 5. Covering of loose materials,
waste and loads during
transportation

Leadership Indicators
1. Provide break-up of the total energy consumed (in Joules or multiples) from renewable and non-renewable sources, in
the following format:

FY21-22# FY20-21#
Parameter
(Current Financial Year) GJ (Previous Financial Year) GJ
From renewable sources
Total electricity consumption (A) 127,129 97,044
Total fuel consumption (B) – –
Energy consumption through other sources (C) – –
Total energy consumed from renewable sources (A+B+C) 127,129 97,044
From non-renewable sources
Total electricity consumption (D) 1,154,335 887,648
Total fuel consumption (E) 8,365,802 7,251,162
Energy consumption through other sources (F) – –
Total energy consumed from non-renewable sources (D+E+F) 9,520,137 8,138,810
#Scope excludes transit houses, guest houses, holiday homes and company owned residential facilities for both FY21-22 and FY20-21

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
Yes, the assessment has been conducted by DNV India.

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2. Provide the following details related to water discharged:

No wastewater is discharged from any office or plant locations.

FY 21-22* FY 20-21*
Parameter
(Current Financial Year) (Previous Financial Year)
Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water
- No treatment – –
- With treatment – please specify level of Treatment – –
(ii) To Groundwater
- No treatment – –
- With treatment – please specify level of Treatment – –
(iii) To Seawater
- No treatment – –
- With treatment – please specify level of Treatment – –
(iv) Sent to third-parties
- No treatment – –
- With treatment – please specify level of treatment – –
(v) Others
- No treatment – –
- With treatment – please specify level of Treatment – –
Total water discharged (in kilolitres) – –

*Data for the above are not captured for both FY21-22 and FY20-21.

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
Yes, the assessment has been conducted by DNV, India.
3. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):
Currently mapping is in progress for the Company’s permanent facilities and offices. The data will be provided for FY23.
For each facility / plant located in areas of water stress, provide the following information:
(i) Name of the area
(ii) Nature of operations
(iii) Water withdrawal, consumption and discharge in the following format:

FY 21-22* FY 20-21*
Parameter
(Current Financial Year) (Previous Financial Year)
Water withdrawal by source (in kilolitres)
(i) Surface water – –
(ii) Groundwater – –
(iii) Third party water – –
(iv) Seawater / desalinated water – –
(v) Others – –
Total volume of water withdrawal (in kilolitres) – –
Total volume of water consumption (in kilolitres) – –
Water intensity per rupee of turnover (Water consumed / turnover) – –

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FY 21-22* FY 20-21*
Parameter
(Current Financial Year) (Previous Financial Year)
Water intensity (optional) – the relevant metric may be selected by the – –
Entity
Water discharge by destination and level of treatment (in
kilolitres)
(i) Into Surface water
- No treatment – –
- With treatment – please specify level of treatment – –
(ii) Into Groundwater
- No treatment – –
- With treatment – please specify level of treatment – –
(iii) Into Seawater
- No treatment – –
- With treatment – please specify level of treatment – –
(iv) Sent to third-parties
- No treatment – –
- With treatment – please specify level of treatment – –
(v) Others
- No treatment – –
- With treatment – please specify level of treatment – –
Total water discharged (in kilolitres) – –

*Currently, the Company does not have an assessment of operations that could be in water stressed area, same would be done by FY24
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency?
(Y/N) If yes, name of the external agency.
Yes, the assessment has been conducted by DNV, India.
4. Please provide details of total Scope 3 emissions & its intensity, in the following format:

Parameter Unit FY21-22# FY20-21#*

(Current Financial Year) (Previous Financial Year)
Total Scope 3 emissions (Break-up of Metric tonnes of CO2 4,976,909 –
the GHG into CO2, CH4, N2O, HFCs, equivalent
PFCs, SF6, NF3, if available)
Total Scope 3 emissions per rupee of Metric tonnes of CO2 5,000 –
turnover Equivalent/ Billion INR
Total Scope 3 emission intensity – – –
(optional) – the relevant metric may be
selected by the entity
#Excluding transit houses, guest houses, holiday homes and company owned residential facilities as part of the scope for both FY21-22 and
FY20-21

*In FY20-21 the data was not captured by the Company

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If
yes, name of the external agency.
Yes, the assessment has been conducted by DNV, India.

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5. With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide details
of significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention and remediation
activities.
All the projects and industrial facilities listed in Question 10 of the Essential Indicators above, are either operating near
coastal areas coming under CRZ Notification 2011 or forest and other sensitive zones as identified within the respective
EIA studies conducted earlier (not in FY22) where Environmental Clearance (EC)/approval and permits as applicable
are in place. The significant direct impact as identified in EIA study was on marine biodiversity for the Company’s
marine projects and pollution load to the nearby settlements, water bodies and forest. All the requisite environmental
management plans including marine biodiversity conservation plan are in place and implemented. All the regulatory
compliance reports are being submitted as mentioned in the EC/Approval terms and conditions. Further, all the applicable
Consent to Establish (CTE) and Consent to Operate (CTO) are in place for Batching Plants, Precast Yards, Fabrication Yard,
and Industrial Facilities as applicable.
6. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource
efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide details of the same as
well as outcome of such initiatives, as per the following format:

Sr. Details of the initiative (Web-link, if any,

Initiative undertaken Outcome of the initiative
No may be provided along-with summary)
1. Plastic Waste Management The waste collection & segregation (i) Waste Impact: 331.6 kg/Yr Plastic Waste
is conducted daily to minimize the recycled into Polyfuel / Granules
waste generated at the site, minimize (ii) 108 Staff and 194 Workmen participated
environmental impact, keep workplace, in the initiative, and they were also
aisles hazard free. With the help of a trained by the IC.
third-party manufacturer & supplier-PGS (iii) Emission Impact: 665 kgCO2e per
enterprises India LTD., Pune, WET IC sends annum emissions avoided (Per kg of
its plastic waste to be recycled into plastic plastic, about 6 kg of carbon dioxide
granules, polyfuel, etc. is emitted during production and
incineration)2
(iv) Water Impact: Water footprint is about
5.3 litres of water to produce typical
single-use water3.
2. LEED Platinum Certification for AM (i) Used percolation pits along the periphery (i) Emission Impact: 700 tCO2e/year
Naik Tower Storm Water Drain for Groundwater (ii) Water Impact:
recharge (a) Rainwater Tanks: 60 KL/year
(ii) Usage of organic waste for treating (b) Sewage Treatment Plant (STP):
kitchen & organic waste 96,000 KL/yr
(iii) Using AC condensate water for domestic (iii) Waste Impact: 135 tonnes/Year
reuse
(iv) Highly efficient HVAC equipment lifts
with Regen drive for energy savings
3. Alternate material for Backfilling Use of Crusher Dust (CRF-Crushed Rock (i) Savings through reduction in raw
and Temporary works in Fines) and TBM (Tunnel Boring Machine) material usage: R 1.31 Cr.
Underground Metro Station Excavated Muck instead of M-Sand in CLSM (ii) Emission Impact: 111 tCO2e
(Controlled Low strength Material) for (iii) Water Impact: 2525.6 KL
Backfilling and Temporary Works
(iv) Waste impact: 1.15 tonnes
(v) Saving through reduction of water
usage: R 0.08 Cr
(vi) Energy saving cost: R 0.15 Cr.
4. Extension of electrically powered L&T Modular fabrication is into fabrication of (i) Emission Impact: 4874 MT/year
gantry cranes modular structures for onshore and offshore (ii) Energy saving cost: 1.5 million USD
installation. Fabrication of such structures (iii) 30 % higher travel speed (No load)
involve extensive handling of individual
steel members with weight ranging from
200 Kilograms to a higher range of 8,000
kilogram.

2 Source: https://timeforchange.org/plastic-bags-and-plastic-bottles-co2-emissions-during-their-lifetime/
3 Source: https://foodprint.org/blog/plastic-water-bottle/

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Sr. Details of the initiative (Web-link, if any,

Initiative undertaken Outcome of the initiative
No may be provided along-with summary)
5. Promoting sustainable construction (i) Reduction in CO2 impact by using (i) Emission Impact: Supplementary Cement
supplementary cementitious materials in Materials: 119,946 tCO2e
concrete (ii) Water Impact: (a) Curing Compound:
(ii) Reduction in the water usage by 2,020.8 KL (b) Superplasticizers:
replacing conventional water curing with 44,479.2 KL
curing compound (iii) Savings through reduction in raw
material usage: R 160 crores
6. Food waste composting (i) Recycling food waste. (i) 1kg of food waste is equivalent to 2.5kg
(ii) Improving Hygiene in the workplace of CO2 emission, composting of 4
(iii) Reducing stagnation of food waste at tonnes of food waste results in avoiding
Drains. emissions around 10 tCO2e/year4
(ii) Impact on employee or society: 50
employees are trained & 135 people are
benefited from the fertilizer.

7. Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.
The Company has established emergency preparedness plans at each project site to deal with the emergency situations.
It also provides response procedures for preventing and mitigating the hazard & risk and environmental impacts arising
from emergency situations including the provision for first aid. In the event of any occurrence of an emergency, the same
shall be investigated and appropriate preventive measures would be initiated to avoid recurrence in future. Relevant
information and training related to emergency preparedness and response shall be provided to the interested parties. The
duties and responsibilities of all the workers are being communicated periodically.
8. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or
adaptation measures have been taken by the entity in this regard.
No significant adverse impact reported from any value chain partners. A separate Code of Conduct (CoC) has been
extended to vendors and service providers which covers the need for compliance with environmental regulations, health
and safety, labour practices, human rights aspects, minimum wages, freedom of association, collective bargaining,
prohibition of child labour and forced and compulsory labour, ethical behaviour, transparency in business processes and
environment conservation. All new vendors/ service providers need to sign the CoC as part of the initial empanelment
process. Timely internal environmental management system audit for ISO 14001:2015 and external audits are conducted
to evaluate compliance which also includes the Company’s value chain partners (supply chain partners) too.
9. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental
impacts.
All supply chain partners are required to sign a CoC which covers the need for compliance including environmental
regulations. In FY23, the Company intends to assess some supply chain partners for environmental impacts as pilot
projects.

4 Source: https://www.newfoodmagazine.com/article/153960/food-waste-climate/

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Principle 7: Businesses, when engaging in influencing public and regulatory policy, should do
so in a manner that is responsible and transparent
1. A. Number of affiliations with trade and industry chambers/ associations.
B. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body) the
entity is a member of/ affiliated to.

S. Reach of trade and industry chambers/

Name of the trade and industry chambers/ associations
No. associations (State/National)
1. Association of Business Communicators of India National
2. Associated Chambers of Commerce and Industry of India (ASSOCHAM) National
3. Bombay Chamber of Commerce & Industry (BCCI) State
4. Bureau of Indian Standards National
5. Construction Industry Development Council (CIDC) National
6 Confederation of Indian Industry (CII-CESD and CII – GBC) National
7 Federation of Indian Chambers of Commerce and Industry (FICCI) National
8 Indian Institute of Chemical Engineers (IIChE) National
9 National Safety Council National
10 National Fire Protection Institution National
11 Indian Electrical and Electronics Manufacturers’ Association (IEEMA) National
12 India Smart Grid Forum (ISGF) National
13 Central Board of Irrigation and Power (CBIP) National
14 India Lead Zinc Development Association (ILZDA) National
15 Society of Indian Defence Manufacturers (SIDM) National

2. Provide details of corrective action taken or underway on any issues related to anti- competitive conduct by the entity,
based on adverse orders from regulatory authorities:
During the year, there were no such cases.

Name of authority Brief of the case Corrective action taken

– – –
– – –

Leadership Indicators
1. Details of public policy positions advocated by the entity:
Given L&T’s expertise, the Company proactively engages with various stakeholders including industry chambers,
associations, governments and regulators and provides its inputs on various areas such as infrastructure development
and construction, renewable energy, space, health and safety, amongst others. Over the years, L&T executives have
played a key role in helping shape public policy and been invited to several committees and task forces. The Company is
committed to engage in the public policy advocacy process in a responsible and ethical manner.

Method restored for Whether information in Frequency of Web Link if

Sr. No. Public Policy Covered
such advocacy public Domain review by Board available
– – – – – –
– – – – – –
– – – – – –
– – – – – –
– – – – – –
– – – – – –

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Principle 8: Businesses should promote inclusive growth and equitable development

Essential Indicators
1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current
financial year.

Whether Results
SIA
Name and brief detail of the Date of conducted by communicated
Notification Web Link if available
project Notification independent in public
Number
external agency domain
A third-party social audit was NA NA Yes (Thinkthrough Yes https://investors.larsentoubro.com/
conducted, covering L&T’s Consulting, New Listing-Compliance.aspx
key CSR thematic areas of Delhi)
education, health, EHS, skill
development and water &
sanitation. Projects across
geographical locations were
evaluated on key parameters
of efficiency, effectiveness and
stakeholder participation.

NA: Data not available

2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your
entity, in the following format:
Not applicable. No rehabilitation and resettlement were undertaken by the entity during this reporting period.

Name of the project for No. of Projects % of PAFs Amount paid to PAFs in
Sr. No State District
which R&R is going Affected families covered by R&R the FY (in INR)
– – – – – – –
– – – – – – –

3. Describe the mechanisms to receive and redress grievances of the community.

At the Company’s construction sites, public complaints are collected through suggestion box and mail. The complaints
or grievances received from community is addressed by the site management involving the industrial and administration
department and also the clients, as applicable. Any issue which is unresolved or needs management intervention is
escalated to the respective business heads. Any community member can raise complaint on Company’s toll-free number
and email address provided at Company’s website which is monitored, addressed and proper record is maintained under
Whistle Blower Policy.
For CSR Projects
In the Community based CSR projects, L&T representative from CSR team facilitates the interaction between the
beneficiary groups, addresses concerns and resolves issues if any.
Process followed is as under:
(i) During monthly or quarterly review meetings community conflicts that impact the implementation or outcomes of
the project are discussed.
(ii) During the quarterly review visit by L&T representative, concerns and issues are discussed with the community-based
groups e.g. Farmer’s Association, Self Help Groups or Village Development Committees.
(iii) L&T along with other stakeholders analyse the conflicts, discuss the alternatives, pros and cons and identify the
probable strategies/solutions. Community-groups are encouraged to resolve the issues by negotiating with the
concerned persons or groups in the community.

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(iv) Community Groups are empowered by disseminating relevant knowledge, information, conducting skills training and
encouraging them to assume leadership in conflict management.
(v) If the community themselves are unable to resolve a certain conflict, L&T representatives intervene and facilitate
negotiations between different groups in the community and stakeholders.
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:

FY 21-22 FY 20-21
Current Financial Year Previous Financial Year
Directly sourced from MSMEs/small producers 4 % (R 2,559 Cr) R 2,149 Cr
Sourced directly from within the district and neighbouring districts 18.8%* Not Available
*This percentage value is based on the seven mega projects with project value over R 5,000 crore and the calculation is done for material sourced
directly within the district and neighbouring districts to the total project cost of these seven projects.

Leadership Indicators
1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments
(Reference: Question 1 of Essential Indicators above):

Details of negative social impact identified Corrective action taken

No negative social impact has been identified in social impact NA
assessment.

NA: Not available

2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as
identified by government bodies:

Sr. No. Aspirational District Amount spent (In INR)

1 Vishakhapatnam (AP) Skills training, Education, Environment and Covid relief 26,624,897
2 Begusarai (Bihar) Covid relief 990,000
3 Bastar (Chhattisgarh) Education 178,416
4 Hazaribag (Jharkhand) Education 773,000
5 Ranchi (Jharkhand) Education 443,000
6 Kalburgai (Karnataka) Covid Relief 7,640,050
7 Singrauli (MP) Covid Relief 330,000
8 Gadchiroli (Maharashtra) Covid Relief 7,136,211
9 Balangir (Odisha) Covid Relief 29,972
10 Nabarangpur (Odisha) Covid Relief 330,000
11 Naupara (Odisha) Covid Relief 300,000
12 Rayagada (Odisha) Covid Relief 335,000
13 Virudhunagar (Tamil Nadu) Covid Relief 2,323,775
14 Telangana (Adilabad) Covid Relief 7,590,784
TOTAL 55,025,105

3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising
marginalized /vulnerable groups?
L&T Limited is in construction and engineering business, and majority of the Company’s procurement is of industrial
origin and procured in bulk. The Company does not have a preferential procurement policy to purchase from
suppliers comprising marginalized /vulnerable groups.
(b) From which marginalized /vulnerable groups do you procure?
Not Applicable.

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(c) What percentage of total procurement (by value) does it constitute?

Not applicable. Although the Company engages some of the marginalised and vulnerable groups (Women self-help
group, local farmers, small businessman) for its canteen operation for food supplies, it is very negligible as compared
to the total procurement. The food supplies procured for three canteen operations (Talegaon, Knowledge Campus
Vadodara and AMN Hazira Campus) amounts to R 43.4 L for FY22.
4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the
current financial year), based on traditional knowledge:
Not applicable as the Company does not have any intellectual properties owned or acquired by the entity (in the current
financial year), based on traditional knowledge.

Intellectual Property based upon Owned/ Acquired (Yes/ Benefits of calculating

Sr. No. Benefit (Yes/No)
traditional knowledge No) benefit share
– – – – –
– – – – –

5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes
wherein usage of traditional knowledge is involved:
Name of authority Brief of the case Corrective action taken
– – –
– – –

6. Details of beneficiaries of CSR Projects:

No. of persons % of beneficiaries from

Sr.
CSR Project benefitted from CSR vulnerable and marginalized
No
Projects groups
1 Awareness Programmes and Engagement with Community 12,880
2 Maintenance of Public Green Spaces (Saki Vihar Median & Nashik Cannot be ascertained
Flyover garden)
3 Covid-19 Emergency Response (Ventilators) Cannot be ascertained
4 Covid-19 Emergency Response 9,200
5 Repair and Renovation of Day Care Center, for Children 1,000
6 STEM Programme In Mumbai For Schools 50
7 Support to Community Learning Centers Through Study Centers & 310
Balwadis
8 Support to Community Learning Centers for Urban Children from 504
100 % of the Projects serve the
Vulnerable Communities
beneficiaries who are from the
9 Early Childhood Intervention through Pre-School Readiness 504 under privileged, marginalised,
Programme vulnerable and backward
community of the society.
10 Mobile Toy Van Outreach 1,308
11 Early Childhood Intervention through Pre-School Readiness 861
Programme
12 Infrastructure Improvement of Schools and Anganwadi Centers, 3,571
Bhim
13 Community Development Activities 20,037
14 Integrated Community Development Programme, Devgaon 8,355
15 Integrated Community Development Programme, Nagzari 7,853
16 Integrated Community Development Programme, Gudiyatham 30,376
17 Community Sanitation and Awareness, Gudiyatham

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No. of persons % of beneficiaries from

Sr.
CSR Project benefitted from CSR vulnerable and marginalized
No
Projects groups
18 Women Health and Child Nutrition, Gudiyatham 75,000
19 STEM Education Project in Urban Schools 17,158
20 Integrated Community Development Programme, Sewantri 9,000
21 Enhancing Education And Infrastructure Support, Bhim 3,571
22 Covid Response – Provision of Oxygen Generating Plants 16,297
23 Support to Health & Dialysis Centers and Mobile Medical Units 178,239
24 Educate and Empower Children at Risk of Dropping out in Pathardi 410
25 Women Health and Child Nutrition Programme, Kumbhalgarh 3,402
26 Infrastructure Support and Education Enhancement Programme, 1,500
Kumbhalghar
27 Skill Training Academy, Madh 436
28 Community Health Centre, Thane 29,227
29 Maintenance of Public Green Spaces Cannot be ascertained
30 Educational Support to Vulnerable Children 44,239
31 Skills Development Training for Rural Youth, Serampore 1,430
32 Providing Educational Support to Tribal Communities 1,405
33 Autocad Training for Underprivileged Youth 1,268
34 Infrastructure Development Support at School 4,175
100 % of the Projects serve the
35 Support to Study Centers for Urban Children from Vulnerable 415 beneficiaries who are from the
Communities under privileged, marginalised,
36 Educational Support for Special Children 44 vulnerable and backward
community of the society.
37 Support to Evening School For Children from Vulnerable 590
Communities
38 Every Child a Scientist Project 95
39 School Infrastructure Development 322
40 School Infrastructure Development 4,456
41 Support for Special Education for Abandoned Children with 109
Intellectual Disability
42 Infrastructure Support for Blood Storage Cannot be ascertained
43 ‘Green Hands’ – Building Awareness for Greenery Development in Cannot be ascertained
Nearby Communities
44 Skill Upgradation Training for Women Construction Workers 73
45 Oxygen Concentrator Machines to Government Hospitals, Chennai 500
(Covid Relief)
46 E-Content Development for Skills Development Training Institutes Cannot be ascertained
for Rural Youth
47 Providing Skill Training to Youth on Data Entry 25
48 Support for Education to Vulnerable Children 115
49 Mobility Aids and Mainstreaming 136
50 Skill Development Programme 891

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No. of persons % of beneficiaries from

Sr.
CSR Project benefitted from CSR vulnerable and marginalized
No
Projects groups
51 Vocational Training for Women 420
52 Blood Donation Awareness & Camp, Kolkata 10,888
53 Providing Educational Kits 23,590
54 Rural Health Support 66
55 HIV Aids Awareness Prevention & Support System 60
56 ‘Aadhaar’- Skill Building for Community Women 2,015
57 Health & Hygiene Programme for Adolescent Health Awareness 83,028
58 Awareness and Engagement with Community 2,805
59 Support to Community Development Centre at Mora 3,800
60 Providing Educational Kits 6,518
61 Alternate Energy for Schools 9,127
62 Maintenance of Public Green Spaces Cannot be ascertained
63 Providing Digital Classrooms in Schools 7,739
64 Awareness Programme and Engagement with Community 105
65 Skills Development Training for Rural Youth, Jadcherla 812
66 Skills Development Training for Rural Youth, Ahmedabad 586
67 Awareness and Cancer Detection 1,284
68 Repairs to Infrastructure Facilities in School 9,925 100 % of the Projects serve the
beneficiaries who are from the
69 Skills Development Training for Rural Youth, Kanchipuram 571
under privileged, marginalised,
70 Skills Development Training for Rural Youth, Panvel 496 vulnerable and backward
71 Skills Development Training for Rural Youth, Pilkhuwa 760 community of the society.
72 Repairs to Infrastructure Facilities in School 80
73 Renovation of Community Center at Belpada Village 120
74 Skills Development Training for Rural Youth, Cuttack 998
75 Construction Skill Training Institute for Rural Youth, Attibelle 908
76 Infrastructure Development at Government Schools 14,714
77 Infrastructure Development (Solar Power System) in Community 3,000
78 Basic Infrastructure Upgradation in Government School 3,295
79 Skills Development Training for Rural Youth, Hyderabad 349
80 Infrastructure and Learning Enhancement Programme in 10,599
Government Schools
81 Maintenance of Public Green Spaces Cannot be ascertained
82 Multi Skill Training Center for Rural Youth 125
83 Water Conservation Initiatives for Community 8,000
84 Wash Facilities for Schools 2,247
85 Education Support for Special Children 178
86 Maintenance of Public Green Spaces 7,800
87 Awareness Programme and Engagement with Community 101

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No. of persons % of beneficiaries from

Sr.
CSR Project benefitted from CSR vulnerable and marginalized
No
Projects groups
88 Education Development Programme, Mumbai 3,197
89 Education Development Programme, Vadodara 5,076
90 Engineering Futures Programme – STEM intervention 1,595
91 Personality development and life skills Programme for children ‘Just 789
for Kicks’, Mumbai
92 School on Wheels’ Education support for children 260
93 Infrastructure support to school 200
94 Health & Nutrition at Child Care Centre 70
95 Primary health care programme 3,164
96 Early diagnostic career guidance for school children 5,561
97 Infrastructure support for PHC, Minjur Cannot be ascertained
98 Community development for water and sanitation Programme 10,442 100 % of the Projects serve the
99 Village Development Programme 4,510 beneficiaries who are from the
under privileged, marginalised,
100 Water Management Initiatives 24,007
vulnerable and backward
101 Wastewater Treatment, Alva village 577 community of the society.
102 Providing drinking water facilities 500
103 Plastic Recyclothon 202,560
104 Village Development Programme 889
105 Infrastructure support for skilling 100
106 Infrastructure for COVID relief Cannot be ascertained
107 Oxygen Augmentation – PSA O2 Unit Civil & electric work Cannot be ascertained
108 Health infrastructure support 300
109 Oxygen Augmentation – PSA Oxygen Generation Unit Cannot be ascertained
110 Covid-19 Vaccination 11,663
111 L&T Public Charitable Trust 143,638
Total 1,127,544

The Company’s projects are designed to serve the beneficiaries from the under privileged, marginalised, vulnerable and
backward communities of the society.

Principle 9: Businesses should engage with and provide value to their consumers in a
responsible manner
Essential Indicators
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
The Company does not have any specific consumer products except few heavy machines and machine parts for Industrial
and Defence use. The Company collects feedback forms from client/customer every six months as per the Company’s
established QMS documented information. Customers evaluate the performance and provide rating on the following
parameters:
• Designing / Detail Engineering
• Planning

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Integrated Annual Report 2021-22 Business Responsibility & Sustainability Reporting

• Construction Capability
• Project Quality
• Management
Customer complaints are received through email, transmittal letter communications and verbal communications directly
to project management teams. A complaint register is maintained for customers to record their complaints as per the
established QMS documented information. The customers can also lodge complaint through the toll-free number and
email address provided on the Company website.
2. Turnover of products and/ services as a percentage of turnover from all products/service that carry information about:

As a percentage to total turnover

Environmental and social parameters relevant to the product Not applicable as the Company does not have specific consumer
Safe and responsible usage product or product range except few heavy machines and
machine parts for industrial and Defence use.
Recycling and/or safe disposal

3. Number of consumer complaints in respect of the following:

FY21-22* FY20-21
(Current Financial Year) (Previous Financial Year)
Pending
Received Pending Remarks Received Remarks
resolution
during the resolution at during the
at end of
year end of year year
year
Data privacy – – – – –
–
Advertising – – – – –
Cyber-security – – – – –
Delivery of essential
Services – – – – – –
Restrictive Trade Practices – – – – – –
Unfair Trade Practices – – – – – –
Other – – – – – –

*The Company is putting a process to compile the above data for FY23

4. Details of instances of product recalls on account of safety issues:

The Company does not have any specific consumer products except few heavy machines and machine parts for industrial
and defence use. No product recalls (voluntary or forced) were made on grounds of safety in FY22.

Number Reason for call

Voluntary recalls – –
Forced recalls – –

5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? If available, provide a
web-link of the policy
Yes, the Company has a framework/ policy on cyber security and risks related to data privacy, available at
https://www.larsentoubro.com/corporate/privacy-policy/.
6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential
services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action taken
by regulatory authorities on safety of products / services.
None.

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Overview Discussion and Analysis Report Reports Statements

Leadership Indicators
1. Channels / platforms where information on products and services of the entity can be accessed (provide web link, if
available).
The Company’s business offerings can be found on the website: https://www.larsentoubro.com/corporate/our-businesses/
2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.
The Company does not operate in B2C model except for few heavy machines and machine parts for industrial and
defence use. For aforementioned products, regular interaction with the client/customers are conducted during the
execution phase of a project. The Company extends an opportunity to explain about its products, innovations, new
technology and techniques that are implemented to enhance product quality and work methodology.
3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.
During execution of construction projects and transport of heavy machinery, the clients and concerned departmental
authorities are informed through transmittal letters and their permissions are sought for road closure, traffic diversion and
isolation of essential services.
4. Does the entity display product information on the product over and above what is mandated as per local laws? (Yes/No/
Not Applicable) If yes, provide details in brief. Did your entity carry out any survey with regard to consumer satisfaction
relating to the major products / services of the entity, significant locations of operation of the entity or the entity as a
whole? (Yes/No)
Not applicable, as the Company operates in B2B model.
The average customer satisfaction score during FY22 was 89%.
5. Provide the following information relating to data breaches:
(a) Number of instances of data breaches along-with impact
There were no data breaches during the year.
(b) Percentage of data breaches involving personally identifiable information of customers -
NIL

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Integrated Annual Report 2021-22 Notice

LARSEN & TOUBRO LIMITED

Regd. Office : L&T House, Ballard Estate, Mumbai 400 001.
CIN : L99999MH1946PLC004768
Email: igrc@larsentoubro.com • Website: www.larsentoubro.com
Tel No: 022-67525656 • Fax No: 022-67525858

Notice
NOTICE IS HEREBY GIVEN THAT the Seventy Seventh and Disclosure Requirements) Regulations, 2015
Annual General Meeting of LARSEN & TOUBRO LIMITED (“Listing Regulations”), the applicable provisions
will be held through VIDEO CONFERENCING OR OTHER of the Companies Act, 2013 alongwith the
AUDIO-VISUAL MEANS on Thursday, August 04, 2022 Rules made thereunder and other applicable
at 03.30 P.M. IST to transact the following business:- laws including any amendments, modifications,
1) To consider and adopt the audited financial statements variations or re-enactments thereof, the Company’s
of the Company for the year ended March 31, 2022 Policy on Related Party Transactions and as per the
and the Reports of the Board of Directors and Auditors recommendation/approval of the Audit Committee
thereon and the audited consolidated financial and the Board of Directors of the Company, approval
statements of the Company and the report of the of the Members of the Company be and is hereby
auditors thereon for the year ended March 31, 2022; accorded for entering into and/or continuing to
enter into transaction(s) with Larsen Toubro Arabia
2) To declare a dividend on equity shares; LLC, L&T Modular Fabrication Yard LLC, Larsen
3) To appoint a Director in place of Mr. Subramanian & Toubro Electromech LLC, Larsen & Toubro
Sarma (DIN: 00554221), who retires by rotation and is Heavy Engineering LLC, Larsen & Toubro Kuwait
eligible for re-appointment; General Contracting Co WLL, subsidiaries of the
Company and Related Parties within the meaning
4) To appoint a Director in place of Mr. S. V. Desai
of Section 2(76) of the Companies Act, 2013 and
(DIN: 07648203), who retires by rotation and is eligible
Regulation 2(1)(zb) of the Listing Regulations for
for re-appointment;
providing Parent Company Guarantees or Corporate
5) To appoint a Director in place of Mr. T. Madhava Das Guarantees or Comfort Letters or Undertakings, on
(DIN: 08586766), who retires by rotation and is eligible behalf of the above subsidiaries, from this Meeting
for re-appointment; till the next Annual General Meeting of the Company
6) To consider and, if thought fit, to pass as an or for a period of fifteen months, whichever is earlier,
ORDINARY RESOLUTION the following: upto an amount not exceeding R 6,000 crore or
US$ 800 Mn, whichever is higher, on such terms
“RESOLVED THAT pursuant to Sections 196, 197,
and conditions as may be decided by the Board of
203 and other applicable provisions, if any, of the
Directors/Audit Committee of the Company as they
Companies Act, 2013 read with Schedule V of the said
may deem fit.
Act and the Rules made thereunder, approval be and
is hereby granted to the re-appointment of Mr. S.N. RESOLVED FURTHER THAT the Board of Directors of
Subrahmanyan (DIN: 02255382) as the Chief Executive the Company be and is hereby authorised to delegate
Officer and Managing Director of the Company with all or any of the powers conferred on it to any
effect from July 1, 2022 upto and including June 30, Committee of Directors and/or Managing/Whole-time
2027. Director(s) of the Company and to do all such acts and
take all such steps as may be considered necessary or
RESOLVED FURTHER THAT Mr. S.N. Subrahmanyan in
expedient to give effect to the aforesaid resolution.
his capacity as Chief Executive Officer and Managing
Director, be paid remuneration as may be fixed by RESOLVED FURTHER THAT all actions taken by the
the Board, from time to time, as prescribed under the Board in connection with any matter referred to or
Companies Act, 2013 and within the limits approved contemplated in this resolution, be and are hereby
by the Members as per the details given in the approved and confirmed in all respects.”
explanatory statement.” 8) To consider and, if thought fit, to pass as an
7) To consider and, if thought fit, to pass as an ORDINARY RESOLUTION the following:
ORDINARY RESOLUTION the following: “RESOLVED THAT pursuant to the provisions of
“RESOLVED THAT pursuant to the provisions of Regulation 23(4) of the SEBI (Listing Obligations
Regulation 23(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
(“Listing Regulations”), the applicable provisions

258
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

of the Companies Act, 2013 along with the Turbine Generators Private Limited, subsidiary of
Rules made thereunder and other applicable the Company and a Related Party within the meaning
laws including any amendments, modifications, of Section 2(76) of the Companies Act, 2013 and
variations or re-enactments thereof, the Company’s Regulation 2(1)(zb) of the Listing Regulations in
Policy on Related Party Transactions and as per the the nature of a) sale, purchase, lease or supply of
recommendation/approval of the Audit Committee goods or business assets or equipment; b) availing
and the Board of Directors of the Company, approval or rendering of services; c) transfer of any resources,
of the Members of the Company be and is hereby services or obligations to meet its business objectives/
accorded for entering into and/or continuing to requirements (“Related Party Transactions”) from this
enter into contract(s)/transaction(s) with L&T-MHI Meeting till the next Annual General Meeting of the
Power Boilers Private Limited, subsidiary of the Company or for a period of fifteen months, whichever
Company and a Related Party within the meaning is earlier, upto an amount not exceeding R 2,600
of Section 2(76) of the Companies Act, 2013 and crore on such terms and conditions as may be decided
Regulation 2(1)(zb) of the Listing Regulations in by the Board of Directors/Audit Committee of the
the nature of a) sale, purchase, lease or supply of Company as they may deem fit.
goods or business assets or equipment; b) availing
RESOLVED FURTHER THAT the Board of Directors of
or rendering of services; c) transfer of any resources,
the Company be and is hereby authorized to delegate
services or obligations to meet its business objectives/
all or any of the powers conferred on it to any
requirements (“Related Party Transactions”) from this
Committee of Directors and/or Managing/Whole-time
Meeting till the next Annual General Meeting of the
Director(s) of the Company and to do all such acts and
Company or for a period of fifteen months, whichever
take all such steps as may be considered necessary or
is earlier, upto an amount not exceeding R 6,500
expedient to give effect to the aforesaid resolution.
crore on such terms and conditions as may be decided
by the Board of Directors/Audit Committee of the RESOLVED FURTHER THAT all actions taken by the
Company as they may deem fit. Board of Directors/Audit Committee in connection
with any matter referred to or contemplated in this
RESOLVED FURTHER THAT the Board of Directors of
resolution, be and are hereby approved and confirmed
the Company be and is hereby authorized to delegate
in all respects.”
all or any of the powers conferred on it to any
Committee of Directors and/or Managing/Whole-time 10) To consider and, if thought fit, to pass as an
Director(s) of the Company and to do all such acts and ORDINARY RESOLUTION the following:
take all such steps as may be considered necessary or
“RESOLVED THAT pursuant to the provisions of
expedient to give effect to the aforesaid resolution.
Regulation 23(4) of the SEBI (Listing Obligations
RESOLVED FURTHER THAT all actions taken by the and Disclosure Requirements) Regulations, 2015
Board of Directors/Audit Committee in connection (“Listing Regulations”), the applicable provisions
with any matter referred to or contemplated in this of the Companies Act, 2013 along with the
resolution, be and are hereby approved and confirmed Rules made thereunder and other applicable
in all respects.” laws including any amendments, modifications,
variations or re-enactments thereof, the Company’s
9) To consider and, if thought fit, to pass as an
Policy on Related Party Transactions and as per the
ORDINARY RESOLUTION the following:
recommendation/approval of the Audit Committee
“RESOLVED THAT pursuant to the provisions of and the Board of Directors of the Company, approval
Regulation 23(4) of the SEBI (Listing Obligations of the Members of the Company be and is hereby
and Disclosure Requirements) Regulations, 2015 accorded for entering into and/or continuing to enter
(“Listing Regulations”), the applicable provisions into contract(s)/transaction(s) with L&T Special Steels
of the Companies Act, 2013 along with the and Heavy Forgings Private Limited, subsidiary of
Rules made thereunder and other applicable the Company and a Related Party within the meaning
laws including any amendments, modifications, of Section 2(76) of the Companies Act, 2013 and
variations or re-enactments thereof, the Company’s Regulation 2(1)(zb) of the Listing Regulations in
Policy on Related Party Transactions and as per the the nature of a) sale, purchase, lease or supply of
recommendation/approval of the Audit Committee goods or business assets or equipment; b) availing
and the Board of Directors of the Company, approval or rendering of services; c) transfer of any resources,
of the Members of the Company be and is hereby services or obligations to meet its business objectives/
accorded for entering into and/or continuing to enter requirements (“Related Party Transactions”) from this
into contract(s)/transaction(s) with L&T-MHI Power Meeting till the next Annual General Meeting of the

259
Integrated Annual Report 2021-22 Notice

Company or for a period of fifteen months, whichever Committee of Directors and/or Managing/Whole-time
is earlier, upto an amount not exceeding R 2,000 Director(s) of the Company and to do all such acts and
crore on such terms and conditions as may be decided take all such steps as may be considered necessary or
by the Board of Directors/Audit Committee of the expedient to give effect to the aforesaid resolution.
Company as they may deem fit.
RESOLVED FURTHER THAT all actions taken by the
RESOLVED FURTHER THAT the Board of Directors of Board of Directors/Audit Committee in connection
the Company be and is hereby authorized to delegate with any matter referred to or contemplated in this
all or any of the powers conferred on it to any resolution, be and are hereby approved and confirmed
Committee of Directors and/or Managing/Whole-time in all respects.”
Director(s) of the Company and to do all such acts and
12) To consider and, if thought fit, to pass as a SPECIAL
take all such steps as may be considered necessary or
RESOLUTION the following:
expedient to give effect to the aforesaid resolution.
“RESOLVED THAT in supersession of the resolution
RESOLVED FURTHER THAT all actions taken by the
no. 13 passed by the Members at the 76th Annual
Board of Directors/Audit Committee in connection
General Meeting of the Company held on August
with any matter referred to or contemplated in this
5, 2021 in this regard and in accordance with the
resolution, be and are hereby approved and confirmed
provisions of Sections 41, 42, 62 and other applicable
in all respects.”
provisions, if any, of the Companies Act, 2013
11) To consider and, if thought fit, to pass as an (including any statutory modifications or re-enactments
ORDINARY RESOLUTION the following: thereof for the time being in force) as amended from
time to time, Foreign Exchange Management Act,
“RESOLVED THAT pursuant to the provisions of
1999, Securities and Exchange Board of India (Issue
Regulation 23(4) of the SEBI (Listing Obligations
of Capital and Disclosure Requirements) Regulations,
and Disclosure Requirements) Regulations, 2015
2018 (‘SEBI Regulations’), Securities and Exchange
(“Listing Regulations”), the applicable provisions
Board of India (Listing Obligations and Disclosure
of the Companies Act, 2013 along with the
Requirements) Regulations, 2015, enabling provisions
Rules made thereunder and other applicable
in the Memorandum and Articles of Association
laws including any amendments, modifications,
of the Company as also provisions of any other
variations or re-enactments thereof, the Company’s
applicable laws, rules and regulations (including any
Policy on Related Party Transactions and as per the
amendments thereto or re-enactments thereof for the
recommendation/approval of the Audit Committee
time being in force) and subject to such approvals,
and the Board of Directors of the Company, approval
consents, permissions and sanctions of the Securities
of the Members of the Company be and is hereby
and Exchange Board of India (SEBI), Government of
accorded for entering into and/or continuing to enter
India (GOI), Reserve Bank of India (RBI) and all other
into contract(s)/transaction(s) with L&T Modular
appropriate and/or concerned authorities, or bodies
Fabrication Yard LLC, subsidiary of the Company and
and subject to such conditions and modifications, as
a Related Party within the meaning of Section 2(76)
may be prescribed by any of them in granting such
of the Companies Act, 2013 and Regulation 2(1)(zb)
approvals, consents, permissions and sanctions which
of the Listing Regulations in the nature of a) sale,
may be agreed to by the Board of Directors of the
purchase, lease or supply of goods or business assets
Company (‘Board’) (which term shall be deemed to
or equipment; b) availing or rendering of services;
include any Committee which the Board may have
c) transfer of any resources, services or obligations to
constituted or hereafter constitute for the time being,
meet its business objectives/requirements (“Related
exercising the powers conferred on the Board by this
Party Transactions”) from this Meeting till the next
resolution), the Board be and is hereby authorized
Annual General Meeting of the Company or for a
to offer, issue and allot in one or more tranches, to
period of fifteen months, whichever is earlier, upto an
Investors whether Indian or Foreign, including Foreign
amount not exceeding R 2,300 crore or US $ 300 Mn,
Institutions, Foreign Institutional Investors, Foreign
whichever is higher, on such terms and conditions
Portfolio Investors, Foreign Venture Capital Fund
as may be decided by the Board of Directors/Audit
Investors, Venture Capital Funds, Non-resident Indians,
Committee of the Company as they may deem fit.
Corporate Bodies, Mutual Funds, Banks, Insurance
RESOLVED FURTHER THAT the Board of Directors of Companies, Pension Funds, Individuals or otherwise,
the Company be and is hereby authorized to delegate whether shareholders of the Company or not, through
all or any of the powers conferred on it to any an issue of convertible bonds and/or equity shares

260
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Overview Discussion and Analysis Report Reports Statements

through depository receipts, including by way of RESOLVED FURTHER THAT the Equity Shares so
Qualified Institutions Placement (‘QIP’), to Qualified issued shall rank pari passu with the existing Equity
Institutional Buyers (‘QIB’) in terms of Chapter VI of Shares of the Company in all respects.
the SEBI Regulations, through one or more placements
RESOLVED FURTHER THAT the Equity Shares to be
of Equity Shares (hereinafter collectively referred to as
offered and allotted shall be in dematerialized form.
“Securities”), whether by way of private placement
or otherwise as the Board may determine, where RESOLVED FURTHER THAT for the purpose of
necessary in consultation with the Lead Managers, giving effect to any offer, issue or allotment of
Underwriters, Merchant Bankers, Guarantors, Financial Securities, the Board, be and is hereby authorised on
and/or Legal Advisors, Rating Agencies/Advisors, behalf of the Company to do all such acts, deeds,
Depositories, Custodians, Principal Paying/Transfer/ matters and things as it may, in absolute discretion,
Conversion agents, Listing agents, Registrars, Trustees, deem necessary or desirable for such purpose,
Auditors, Stabilizing agents and all other Agencies/ including without limitation, the determination of
Advisors so that the total amount raised through the terms thereof, for entering into arrangements
the issue of the Securities shall not exceed R 4,500 for managing, underwriting, marketing, listing and
Crore (Rupees Four Thousand Five Hundred Crore) or trading, to issue placement documents and to sign all
US $600 Mn (US Dollars Six Hundred Million), if the deeds, documents and writings and to pay any fees,
value is higher. commissions, remuneration, expenses relating thereto
and with power on behalf of the Company to settle
RESOLVED FURTHER THAT for the purpose of giving
all questions, difficulties or doubts that may arise in
effect to the above, the Board be and is hereby also
regard to such offer(s) or issue(s) or allotment(s) as it
authorised to determine the form, terms and timing of
may, in its absolute discretion, deem fit.
the issue(s), including the class of investors to whom
the Securities are to be allotted, number of Securities RESOLVED FURTHER THAT the Board be and is
to be allotted in each tranche, issue price, face hereby authorised to appoint Lead Manager(s) in
value, premium amount in issue/conversion/exercise/ offerings of Securities and to remunerate them by
redemption, rate of interest, redemption period, way of commission, brokerage, fees or the like and
listings on one or more Stock Exchanges in India or also to enter into and execute all such arrangements,
abroad, as the Board may in its absolute discretion agreements, memoranda, documents, etc. with Lead
deem fit and to make and accept any modifications Manager(s) and to seek listing of such Securities.
in the proposals as may be required by the authorities
RESOLVED FURTHER THAT the Company do apply
involved in such issue(s) in India and/or abroad, to do
for listing of the new Equity Shares as may be issued
all acts, deeds, matters and things and to settle any
with BSE Limited and National Stock Exchange of India
questions or difficulties that may arise in regard to the
Limited or any other Stock Exchange(s).
issue(s).
RESOLVED FURTHER THAT the Company do apply
RESOLVED FURTHER THAT in case of QIP issue it
to the National Securities Depository Limited and/
shall be completed within 12 months from the date of
or Central Depository Services (India) Limited for
passing of this resolution.
admission of the Securities.
RESOLVED FURTHER THAT in case of QIP issue the
RESOLVED FURTHER THAT the Board be and is
relevant date for determination of the floor price of
hereby authorised to create necessary charge on
the Equity Shares to be issued shall be -
such of the assets and properties (whether present or
i) in case of allotment of equity shares, the date of future) of the Company in respect of Securities and
meeting in which the Board decides to open the to approve, accept, finalize and execute facilities,
proposed issue sanctions, undertakings, agreements, promissory
notes, credit limits and any of the documents and
ii) in case of allotment of eligible convertible
papers in connection with the issue of Securities.
securities, either the date of the meeting in
which the Board decides to open the issue of RESOLVED FURTHER THAT the Board be and is
such convertible securities or the date on which hereby authorised to delegate all or any of the powers
the holders of such convertible securities become in such manner as they may deem fit.”
entitled to apply for the equity shares, as may be
determined by the Board.

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Integrated Annual Report 2021-22 Notice

13) To consider and ratify the remuneration payable to [c] No attendance slip/route map has been sent along
Cost Auditors and for that purpose to pass, as an with this Notice of the Meeting as the meeting is held
ORDINARY RESOLUTION the following: through VC/OAVM.

“RESOLVED THAT pursuant to Section 148 and [d] Members who are shareholders as on Thursday,
other applicable provisions, if any, of the Companies July 28, 2022 can join the AGM 30 minutes before
Act, 2013 and the Companies (Audit and Auditors) the commencement of the AGM i.e at 03.00 P.M
Rules, 2014, the Company hereby ratifies the and till the time of the conclusion of the Meeting by
remuneration of R 17 lakhs plus applicable taxes following the procedure mentioned in this Notice.
and out of pocket expenses at actuals for travelling [e] The attendance through VC/OAVM is restricted
and boarding/lodging for the Financial Year ending and hence members will be allowed on first come
March 31, 2023 to M/s R. Nanabhoy & Co., Cost first serve basis. However, attendance of Members
Accountants (Regn. No. 000010), who are appointed holding more than 2% of the shares of the Company,
as Cost Auditors to conduct the audit of cost records Institutional Investors as on Thursday, July 28, 2022
maintained by the Company for the Financial Year and Directors and Key Managerial Personnel, the
2022-23.” Chairpersons of the Audit Committee, Nomination
and Remuneration Committee, the Stakeholders
By Order of the Board of Directors
Relationship Committee and Auditors will not be
For LARSEN & TOUBRO LIMITED restricted on first come first serve basis.

SIVARAM NAIR A [f] Members attending the Meeting through VC/OAVM

COMPANY SECRETARY will be counted for the purposes of reckoning of
M.NO – F3939 Quorum under Section 103 of the Companies Act,
2013.
Mumbai, May 12, 2022
[g] In line with the MCA Circulars and SEBI Circular
[a] In view of the COVID-19 pandemic and the need No SEBI/HO/CFD/CMD2/CIR/P/2022/62 dated May
for ensuring social distancing, the Government of 13, 2022, this Notice along with the Integrated
India, Ministry of Corporate Affairs (“MCA”) allowed Annual Report for FY 2021-22 is being sent by
conducting Annual General Meeting through video electronic mode to those Members whose e-mail
conferencing (VC) or other audio-visual means (OAVM) addresses are registered with the Company/
without the physical presence of Members at a Depositories/Depositary Participants/KFintech,
common venue. Accordingly, MCA issued Circular No. unless any Member has requested for a physical
14/2020 dated April 08, 2020, Circular No. 17/2020 copy of the same. Members may note that the
dated April 13, 2020, Circular No. 20/2020 dated May Notice and Integrated Annual Report 2021-22
05, 2020, Circular No. 02/2021 dated January 13, will also be available on the Company’s website
2021, Circular No. 20/2021 dated December 8, 2021 at www.larsentoubro.com, websites of the Stock
and Circular No. 2/2022 dated May 5, 2022 (“MCA Exchanges i.e. BSE Limited and National Stock
Circulars”), prescribing the procedures and manner Exchange of India Limited at www.bseindia.com and
of conducting the Annual General Meeting through www.nseindia.com respectively and on the website
VC/OAVM. MCA Circular No. 2/2022 dated May 5, of NSDL at https://www.evoting.nsdl.com. The
2022 extended the time line for holding of Annual Company will also be publishing an advertisement in
General Meetings through VC/OAVM till December the newspaper containing the details about the AGM
31, 2022. In compliance with the applicable provisions i.e., the conduct of AGM through VC/OAVM, date and
of the Companies Act, 2013 and MCA Circulars, the time of AGM, availability of Notice of AGM on the
77th Annual General Meeting (AGM) of the Members Company’s website, manner of registering the email
will be held through VC/OAVM. Hence, Members can IDs of those shareholders who have not registered
attend and participate in the AGM through VC/OAVM their email addresses with the Company/KFintech,
only. manner of providing mandate for dividends and other
[b] Since this General Meeting is held through VC/OAVM matters as may be required.
the physical attendance of members is dispensed with [h] The information required to be provided under the
and no proxies would be accepted by the Company SEBI (Listing Obligations and Disclosure Requirements)
pursuant to the relevant MCA Circulars and SEBI Regulations, 2015 and the Secretarial Standards on
Circular dated May 13, 2022. Hence, no proxy form General Meetings, regarding the Directors who are
has been sent along with this Notice. proposed to be appointed/re-appointed and the
relative Explanatory Statement pursuant to Section 102

262
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

of the Companies Act, 2013, in respect of the business copy of the signed request letter providing the
under items 6 to 13 set out above are annexed hereto. email address, mobile number, self-attested PAN
copy and Client Master copy in case of electronic
[i] The record date for the purpose of payment of
folio and copy of share certificate in case of
dividend will be Friday, July 22, 2022.
physical folio.
[j] Members holding shares in physical form are requested 6. It is mandatory vide SEBI Circular No. SEBI/HO/
to furnish bank details, email address, change of MIRSD/MIRSD_RTAMB/P/CIR/2021/655 dated
address etc. to KFin Technologies Limited (“KFintech”), November 3, 2021 to update PAN, Address,
Selenium, Tower B, Plot 31-32, Gachibowli, Financial Email ID, Bank account details (KYC details)
District, Nanakramguda, Hyderabad 500 032, who are and Nomination details of shareholders, who
the Company’s Registrar and Share Transfer Agents have not updated the same with RTA in case
(RTA) so as to reach them latest by Friday, July 22, of physical shareholding and with Depository
2022, in order to take note of the same. In respect Participants (DPs) in case of Demat shareholding.
of members holding shares in electronic mode, the Henceforth, RTA will attend to all service requests
details as would be furnished by the Depositories as of the shareholders with respect to transmission,
at the close of the aforesaid date will be considered dividend, etc., only after updating the above
by the Company. Hence, members holding shares in details in the records. Non-updation of KYC
demat mode should update their records with their details in Folios, wherein any one of the
Depository Participants at the earliest. cited details/documents (i.e. PAN, Bank Details,
[k] Those Members who have not yet registered their Nomination) are not available on or after April
email address are requested to get their email 01, 2023, shall be frozen by the RTA as per above
addresses registered by following the procedure given SEBI Circular.
below: The shareholders whose folios are frozen shall be:
1. Those Members who have not registered their a) eligible to lodge grievance or avail
email address and mobile nos. including address service request from KFintech only after
and bank details may please contact and furnishing the complete documents/details as
validate/update their details with the Depository aforesaid.
Participant(s) in case of shares held in electronic
b) eligible for any payment including dividend,
form and with Registrar and Transfer Agents,
only through electronic mode, subject to
KFintech in case the shares are held in physical
verification and confirmation by KFintech.
form.
c) referred by KFintech/the Company to the
2. Members who have already registered their
administering authority under the Benami
email addresses are requested to get their
Transactions (Prohibitions) Act, 1988 and/
email addresses validated with their Depository
or Prevention of Money Laundering Act,
Participants/KFintech to enable servicing of
2002, if they continue to remain frozen as on
notices/documents/Annual Reports electronically
December 31, 2025.
to their email address.
KFintech shall reverse the frozen folios to normal
3. Members who have not registered their status upon:
email address can get their email address
and mobile number registered with KFintech, a) receipt of all the aforesaid documents/details
by clicking the link: https://ris.kfintech.com/ b) dematerialization of all the securities in such
clientservices/mobilereg/mobileemailreg.aspx. folios.
Members are requested to follow the process as
guided to capture the email address and mobile 7. Members may please note that SEBI vide its
number for sending the soft copy of the Notice. Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/
In case of any queries, shareholders may write to CIR/2022/8 dated January 25, 2022 has
einward.ris@KFintech.com. mandated the listed companies to issue
securities in dematerialized form only while
4. Members may also visit the website of the processing service requests viz. Issue of duplicate
Company at www.larsentoubro.com or the securities certificate; claim from unclaimed
website of NSDL at www.evoting.nsdl.com for suspense account; renewal/exchange of
downloading the Annual Report and Notice of the securities certificate; endorsement; sub-division/
AGM. split of securities certificate; consolidation
of securities certificates/folios; transmission
5. Members may send an e-mail request to
and transposition. Accordingly, members are
einward.ris@KFintech.com along with scanned

263
Integrated Annual Report 2021-22 Notice

requested to make service requests by submitting Members who have not encashed their dividend
a duly filled and signed Form ISR – 4, the warrants pertaining to the aforesaid years may
format of which is available on the Company’s approach the Company/KFintech, for obtaining
website at https://investors.larsentoubro.com/ payments thereof atleast 20 days before they are
DownloadableForms.aspx# and on the website of due for transfer to the said fund.
KFintech at https://ris.kfintech.com/clientservices/
isc/default.aspx#isc_download_hrd. It may be Final Dividend if approved by the Members at this
noted that any service request can be processed Meeting will be directly credited to the bank accounts
only after the folio is KYC Compliant. of the shareholders as on the Record Date i.e Friday,
July 22, 2022. In case of shareholders who have
8. SEBI vide its Notification dated January 24, 2022
not registered their bank details with the Company,
has mandated that all requests for transfer of
dividend warrants/demand drafts will be sent to them
securities including transmission and transposition
requests shall be processed only in dematerialized in due course of time.
form. In view of the same and to eliminate all
[m] Investor Grievance Redressal:
risks associated with physical shares and avail
various benefits of dematerialisation, Members The Company has designated an exclusive e-mail id
are advised to dematerialise the shares held by viz. IGRC@Larsentoubro.com to enable Investors to
them in physical form. Members can contact register their complaints, if any.
the Company or KFintech, for assistance in this
regard. [n] Adhering to the various requirements set out in the
Investor Education and Protection Fund Authority
[l] All matters included in this Notice are unavoidable (Accounting, Audit, Transfer and Refund) Rules,
and hence are proposed for seeking approval at this
2016, as amended, the Company has during the
AGM. All shareholders will be able to inspect all
Financial Year 2021-22 transferred to the IEPF
documents referred to in this Notice electronically
Authority all shares in respect of which dividend
without any fee from the date of circulation of this
has remained unpaid or unclaimed for seven
Notice up to the date of AGM. Members seeking
consecutive years or more as on the due date of
to inspect such documents can send an email to
LNTGOGREEN@larsentoubro.com. transfer. Details of shares transferred to IEPF Authority
are available on the website of the Company
The Register of Directors and Key Managerial and the same can be accessed through the link:
Personnel and their shareholding maintained under http://investors.larsentoubro.com/resources.aspx. The
Section 170 of the Companies Act, 2013, the Register said details have also been uploaded on the website
of Contracts or Arrangements in which the directors of the IEPF Authority and the same can be accessed
are interested and maintained under Section 189 of through the link: www.iepf.gov.in.
the Act, and the relevant documents referred to in this
Notice will be available electronically for inspection by [o] SEBI has decided that securities of listed companies
the Members during the AGM. can be transferred only in dematerialized form with
Pursuant to Section 124 of the Companies Act, 2013 effect from April 1, 2019. In view of the above and to
the unpaid dividends that are due for transfer to the avail various benefits of dematerialisation, Members
Investor Education and Protection Fund are as follows: are advised to dematerialize shares held by them in
physical form.
Dividend Date of For the year Due for
No. Declaration ended Transfer on [p] Dividend income is taxable in the hands of
shareholders and the Company is required to deduct
86 09.09.2015 31.03.2015 15.10.2022
tax at source from dividend paid to shareholders at the
87 26.08.2016 31.03.2016 02.10.2023 prescribed rates. For the prescribed rates for various
88 22.08.2017 31.03.2017 27.09.2024 categories, the shareholders are requested to refer
to the Income Tax Act, 1961. The shareholders are
89 23.08.2018 31.03.2018 28.09.2025 requested to update their PAN with the Company/
90 01.08.2019 31.03.2019 06.09.2026 KFintech (in case of shares held in physical mode) and
with the Depositories/Depository Participants (in case
91 18.03.2020 31.03.2020 24.04.2027
of shares held in demat mode).
92 13.08.2020 31.03.2020 18.09.2027
Resident shareholders:
93 28.10.2020 31.03.2021 02.12.2027
For Resident Shareholders, who have provided PAN,
94 05.08.2021 31.03.2021 09.09.2028
tax shall be deducted at source under Section 194 of

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the Income Tax Act, 1961 at 10% on the amount of (e) any person for, or on behalf of, the New Pension
dividend. System Trust referred to in section 10(44)
[sub-section 1E to section 197A]
Tax shall be deducted at source at 20% wherein–
(f) Category I or a Category II Alternative Investment
(a) shareholders do not have PAN/have not registered Fund (registered with SEBI as per section 115UB)
their valid PAN details (including linking Aadhaar as per Notification 51/2015
with PAN) in their account/with the Company/
KFintech under Section 206AA Non-resident shareholders:
For Foreign Portfolio Investor (FPI) category
(b) shareholders are classified as specified persons
Shareholders, taxes shall be deducted at source under
under Section 206AB
Section 196D of the Income Tax Act, 1961 at 20%
No tax shall be deducted on the dividend payable to a (plus applicable surcharge and cess).
resident individual if the total dividend to be received
For other Non-resident Shareholders, taxes are required
by the resident shareholders during Financial Year
to be deducted in accordance with the provisions of
2022-23 does not exceed R 5,000. In cases where the
Section 195 of the Income Tax Act, 1961, at the rates
shareholder provides Form 15G/Form 15H and meets
in force. As per the relevant provisions of the Income
all the required eligibility conditions, no tax will be
Tax Act, 1961, the tax shall be deducted at the rate
deducted at source.
of 20% (plus applicable surcharge and cess) on the
Apart from above cases, following categories of amount of dividend payable to them.
shareholders are exempt from tax deduction at source: FPI and the non-resident shareholder have the option
to be governed by the provisions of the Double Tax
(a) Life Insurance Corporation of India [clause (a) to
Avoidance Agreement (DTAA) between India and the
2nd proviso to section 194]
country of tax residence of the shareholder, if they are
(b) General Insurance Corporation of India/The more beneficial to them.
New India Assurance Company Ltd/United India
To avail the benefit of rate of deduction of tax at
Insurance Company Ltd/The Oriental Insurance
source under DTAA, such non-resident shareholders/
Company Ltd/National Insurance Company Ltd
FPIs will have to provide the following:
[clause (b) to 2nd proviso to section 194]
1. Self-attested copy of the PAN allotted by the
(c) any other insurer in respect of any shares owned Indian Income Tax authorities;
by it or in which it has full beneficial interest
[clause (c) to 2nd proviso to section 194] 2. Tax residency certificate from the jurisdictional
tax authorities confirming residential status for
(d) Dividend income credited/paid to a “business FY 2022-23;
trust”, as defined in clause (13A) of section 2,
3. Declaration by the non-resident in prescribed
by a special purpose vehicle referred to in the
Form 10F;
Explanation to clause (23FC) of section 10; [clause
(d) to 2nd proviso to section 194] 4. Self-declaration by the non-resident shareholder
as to:
The following payees are also not subject to TDS in
view of the provisions of Sections 196, 197A of the • Eligibility to claim tax treaty benefits based on
Income Tax Act, 1961 and CBDT Notification: the tax residential status of the shareholder,
including having regard to the Principal
(a) Government [section 196(i)] Purpose Test (if any), introduced in the
applicable tax treaty with India;
(b) Reserve Bank of India [section 196(ii)]
• No Permanent Establishment/fixed base in
(c) a Corporation established by or under a Central
India in accordance with the applicable tax
Act which is, under any law for the time being
treaty;
in force, exempt from income-tax on its income
[section 196(iii)] • Shareholder being the beneficial owner of the
dividend income to be received on the equity
(d) Mutual Fund [section 196(iv)] shares.

265
Integrated Annual Report 2021-22 Notice

In case of non-resident shareholder, having permanent e-Voting system. After successful login, you can
establishment in India, if they are classified as see the link of VC/OAVM placed under Join General
“specified person” as per the provision of Section Meeting menu against the Company name. You are
206AB of the Income Tax Act, 1961, tax will be requested to click on the VC/OAVM link placed under
deducted at rate higher of Join General Meeting menu.
(a) twice the rate as per the provisions of Act; or Please note that the members who do not have the
User ID and Password for e-Voting or have forgotten
(b) twice the rate in force; or
their User ID and Password may retrieve the same by
(c) 5%. following the instructions mentioned in this Notice.

General: Members can participate in AGM through smart

In order to enable us to determine the appropriate phone/laptop. However, for better experience and
tax rate at which tax has to be deducted at source smooth participation it is advisable to join the Meeting
under the respective provisions of the Income Tax using Google Chrome, through Laptops connected
Act, 1961, we request Resident shareholders and through broadband.
Non-Resident shareholders to upload the details and Further, Members will be required to use Internet with
documents referred to in this Notice in the format a good speed to avoid any disturbance during the
provided by us and as applicable to you on the link meeting.
https://ris.KFintech.com/form15/. No communication
on the tax determination/deduction shall be Please note that participants connecting from Mobile
entertained beyond 5.00 p.m on Thursday, July 21, Devices or Tablets or through Laptop via Mobile
2022. Hotspot may experience Audio/Video loss due to
fluctuation in their respective network. It is therefore
Deduction of tax at a rate lower than statutory recommended to use Stable Wi-Fi or LAN Connection
rate or no deduction of tax shall depend upon the to mitigate any kind of aforesaid glitches.
completeness of the documents and the satisfactory
review of the forms and the documents, submitted by Members seeking any information with regard to
Resident shareholders, to the Company/KFintech. the accounts or any matter to be placed at the
AGM, are requested to write to the Company on or
Please note that the Company is not obligated before Thursday, July 28, 2022 through email to
to apply the beneficial DTAA rates at the time of IGRC@larsentoubro.com. The same will be replied by
tax deduction/withholding on dividend amounts. the Company suitably. Please note that, members’
Application of beneficial DTAA rate shall depend queries/questions will be responded to only if the
upon the completeness and satisfactory review by the shareholder continues to hold the shares as on the
Company/KFintech, of the documents submitted by cut-off date i.e Thursday, July 28, 2022.
Non-Resident shareholder/FPI.
Members who would like to express their views or ask
Tax deducted by the Company is final and the questions during the AGM may register themselves
Company shall not refund/adjust the tax so deducted as a speaker by sending their request from their
subsequently. registered email address mentioning their name, DP
[q] Instruction for attending the meeting through VC: ID and Client ID/folio number, PAN, mobile number
to LNTGOGREEN@larsentoubro.com on or before
Convenience of different persons positioned in Monday, August 1, 2022. Those Members who have
different time zones has been kept in mind before registered themselves as a speaker and have received
scheduling the time for this Meeting. a confirmation from the Company will be allowed to
The Company has appointed National Securities express their views/ask questions during the AGM. The
Depository Limited (NSDL) to provide VC/OAVM for the Company reserves the right to restrict the number of
AGM and are the attendant enablers for conducting speakers depending on the availability of time for the
the e-AGM. AGM.

Members will be provided with a facility to attend Members who are not able to join this Meeting over
the AGM through VC/OAVM through the NSDL VC/OAVM will be able to view the live webcast of
e-Voting system. Members may access by following proceedings of AGM by logging on the e-voting
the steps mentioned in this Notice for Access to NSDL website of NSDL by following remote e-voting
instructions mentioned in this Notice.

266
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

[r] E-voting Thursday, July 28, 2022, are entitled to vote on

the Resolutions set forth in this Notice. Any person
The businesses as set out in this Notice may be
holding shares in physical form and non-individual
transacted through electronic voting system and the
shareholders, who acquire shares of the Company and
Company will provide a facility for voting by electronic
becomes a member of the Company after this notice
means. In compliance with the provisions of Section
is sent through e-mail and continues to hold shares
108 of the Act, read with Rule 20 of the Companies
as of the cut-off date i.e. Thursday, July 28, 2022,
(Management and Administration) Rules, 2014,
may obtain the login ID and password by sending a
Standard 2 of the Secretarial Standards on General
request to NSDL at evoting@nsdl.co.in or the Company
Meetings and Reg. 44 of the SEBI (Listing Obligations
at IGRC@larsentoubro.com. However, if you are
and Disclosure Requirements) Regulations, 2015, the
already registered with NSDL for remote e-voting, then
Company is pleased to offer the facility of voting
you can use your existing user ID and password for
through electronic means. The said facility of casting
casting your vote. If you forgot your password, you
the votes by the members using electronic means
can reset your password by using “Forgot User Details/
(remote e-voting) will be provided by NSDL.
Password” or “Physical User Reset Password” option
A person whose name is recorded in the Register available on www.evoting.nsdl.com or call on toll free
of Members or in the Register of Beneficial Owners no. 1800 1020 990 and 1800 22 44 30. In case of
maintained by the Depositories as on the cut-off date Individual Shareholders who have acquired shares of
of Thursday, July 28, 2022 shall be entitled to avail the Company and becomes a Member of the Company
the facility of remote e-voting or e-voting on the after sending of this Notice and holding shares as of
day of the Meeting. Persons who are not members the cut-off date i.e. Thursday, July 28, 2022 may
as on the cut-off date should treat this Notice for follow steps mentioned in this Notice of the AGM
information purposes only. under “Access to NSDL e-Voting system”.

The Notice will be displayed on the website of the Members are requested to follow the instructions
Company at www.larsentoubro.com and on the given in this Notice to cast their votes through
website of NSDL at https://www.evoting.nsdl.com. e-voting.

The members who have cast their vote through remote The detailed steps on the process and manner for
e-voting prior to the AGM may also attend the AGM remote e-voting/e-voting at the AGM and to access
through VC/OAVM but shall not be entitled to cast the VC/OAVM facility at the AGM are as follows:
their vote again.
I. Login method for remote e-Voting and
The remote e-voting period commences on Monday, joining virtual meeting for Individual
August 01, 2022 at 9.00 A.M and ends on shareholders holding securities in demat
Wednesday, August 03, 2022 at 05.00 P.M. During mode.
this period, members of the Company holding shares
Pursuant to SEBI Circular No. SEBI/HO/CFD/CMD/
either in physical or dematerialised form, as on the
CIR/P/2020/242 dated December 9, 2020 on
cut-off date of Thursday, July 28, 2022 may cast
“e-Voting facility provided by Listed Companies”,
their vote by remote e-voting. The remote e-voting
e-Voting process has been enabled to all the
module shall be disabled by NSDL for voting thereafter.
individual demat account holders, by way of single
Instructions for e-voting during the AGM: login credential, through their demat accounts/
The e-Voting window shall be activated upon websites of Depositories/Depository Participants
instructions of the Chairman during the AGM (DPs) in order to increase the efficiency of the
proceedings. voting process. Individual demat account holders
would be able to cast their vote without having to
Only those shareholders, who are present in the AGM register again with the e-Voting service provider
and have not casted their vote on the Resolutions (ESP) thereby not only facilitating seamless
through remote e-Voting and are otherwise not authentication but also ease and convenience of
barred from doing so, shall be eligible to vote through participating in e-Voting process.
e-Voting system available during the e-AGM.
Shareholders are advised to update their mobile
Member(s), whose names appear in the number and e-mail ID with their DPs in order to
Register of Members/Beneficial Owners as on access e-Voting facility.

267
Integrated Annual Report 2021-22 Notice

Type of Login Method Type of Login Method

shareholders shareholders
Individual A. NSDL IDeAS facility Individual 1. Existing users who have opted for Easi/
Shareholders If you are already registered, follow the Shareholders Easiest, can login through their user id and
holding below steps: holding password. Option will be made available
securities in 1. Visit the e-Services website of NSDL. Open securities in to reach e-Voting page without any further
demat mode web browser and type the following URL: demat mode authentication. The URL for users to login
https://eservices.nsdl.com/ either on a
with NSDL Personal Computer or on a mobile. with CDSL to Easi/Easiest is https://web.cdslindia.com/
2. Once the home page of e-Services is myeasi/home/login or www.cdslindia.com.
launched, click on the “Beneficial Click on New System Myeasi.
Owner” icon under “Login” which is 2. After successful login of Easi/Easiest the
available under “IDeAS” section. user will be also able to see the e-Voting
3. A new screen will open. You will have to Menu. The Menu will have links of ESP i.e.
enter your User ID and Password. After NSDL . Click on NSDL to cast your vote.
successful authentication, you will be able
to see e-Voting services under Value Added 3. If the user is not registered for Easi/
Services. Easiest, option to register is available
4. Click on “Access to e-Voting” under at https://web.cdslindia.com/myeasi/
e-Voting services and you will be able to Registration/EasiRegistration.
see e-Voting page.
4. Alternatively, the user can directly access
5. Click on company name or e-Voting
service provider i.e NSDL and you will e-Voting page by providing Demat
be re-directed to NSDL e-Voting website Account Number and PAN from a link in
for casting your vote during the remote www.cdslindia.com home page. The system
e-Voting period or joining virtual meeting will authenticate the user by sending
and e-Voting during the meeting. OTP on registered Mobile and e-mail as
If you are not registered, follow the recorded in the Demat Account. After
below steps:
successful authentication, user will be
1. Option to register is available at
provided links for the respective ESP i.e.
https://eservices.nsdl.com.
NSDL where the e-Voting is in progress.
2. Select “Register Online for IDeAS”
Portal or click at https://eservices.nsdl.com/ Individual 1. You can also login using the login
SecureWeb/IdeasDirectReg.jsp Shareholders credentials of your demat account through
3. Please follow steps given in points 1-5. (holding your DP registered with NSDL/CDSL for
B. e-Voting website of NSDL securities in e-Voting facility.
1. Open web browser and type the following demat mode) 2. Once logged-in, you will be able to see
URL: https://www.evoting.nsdl.com/ either logging e-Voting option. Once you click on e-Voting
on a personal computer or on a mobile through their
phone. option, you will be redirected to NSDL/
depository CDSL Depository site after successful
2. Once the home page of e-Voting system is
launched, click on the icon “Login” which participants authentication, wherein you can see
is available under ‘Shareholder/Member’ e-Voting feature.
section. 3. Click on company name or e-Voting service
3. A new screen will open. You will have to provider - NSDL and you will be redirected
enter your User ID (i.e. your sixteen digit
demat account number held with NSDL), to e-Voting website of NSDL for casting
Password/OTP and a Verification Code as your vote during the remote e-Voting
shown on the screen. period or joining virtual meeting and
4. After successful authentication, you will be e-Voting during the meeting.
redirected to NSDL website wherein you
can see e-Voting page. Click on company Important note: Members who are unable to
name or e-Voting service provider - NSDL retrieve User ID/Password are advised to use
and you will be redirected to e-Voting
website of NSDL for casting your vote Forgot User ID and Forgot Password option
during the remote e-Voting period or available at respective websites.
joining virtual meeting and e-Voting during
the meeting. Helpdesk for Individual Shareholders holding
5. Shareholders/Members can also download securities in demat mode for any technical
NSDL Mobile App “NSDL Speede” facility issues related to login through Depository i.e.
by scanning the QR code mentioned below
for seamless voting experience. NSDL and CDSL.

Login type Helpdesk details

Securities held with Please contact NSDL helpdesk
NSDL by sending a request at
evoting@nsdl.co.in or call at toll
free no.: 1800 1020 990 and
1800 22 44 30

268
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Login type Helpdesk details 5. Password details for shareholders other than
Securities held with Please contact CDSL helpdesk by individual shareholders are given below:
CDSL sending a request at helpdesk a) If you are already registered for e-Voting,
evoting@cdslindia.com or then you can use your existing password
contact at 022-23058738 or
to login and cast your vote.
022-23058542-43
b) If you are using NSDL e-Voting system
II. Login method for e-Voting and joining
for the first time, you will need to
virtual meeting for shareholders other than
retrieve the ‘initial password’ which was
Individual shareholders holding securities communicated to you by NSDL. Once
in demat mode and shareholders holding you retrieve your ‘initial password’, you
securities in physical mode. need to enter the ‘initial password’ and
1. Visit the e-Voting website of NSDL. Open the system will force you to change your
web browser and type the following URL: password.
https://www.evoting.nsdl.com/ either on a c) How to retrieve your ‘initial password’?
personal computer or on a mobile. i) If your e-mail ID is registered in
2. Once the home page of e-Voting system is your demat account or with the
launched, click on the icon “Login” which Company, your ‘initial password’
is available under “Shareholders/Member” is communicated to you on your
section. e-mail ID. Trace the e-mail sent to
you from NSDL in your mailbox
3. A new screen will open. You will have to from evoting@nsdl.com. Open the
enter your User ID, your Password/OTP and a e-mail and open the attachment
Verification Code as shown on the screen. i.e. a .pdf file. Open the .pdf file.
The password to open the .pdf file
Alternatively, if you are registered for
is your 8-digit client ID for NSDL
NSDL e-services i.e. IDeAS, you can login
account, last 8 digits of client ID for
at https://eservices.nsdl.com/ with your
CDSL account or folio number for
existing IDeAS login. Once you login to NSDL shares held in physical form. The
e-services after using your login credentials, .pdf file contains your ‘User ID’ and
click on e-Voting and you can proceed to cast your ‘initial password’.
your vote electronically.
ii) In case you have not registered
4. Your User ID details are given below: your e-mail address with the
Manner of holding Your User ID is: Company/Depository, please follow
shares i.e. Demat instructions mentioned below in this
(NSDL or CDSL) or Notice.
Physical
6. If you are unable to retrieve or have not
For Members who 8 Character DP ID followed received the ‘initial password’ or have
hold shares in demat by 8 Digit Client ID
forgotten your password:
account with NSDL For example, if your DP ID
is IN300*** and Client ID a) Click on “Forgot User Details/
is 12****** then your user Password?” (If you are holding
ID is IN300***12****** shares in your demat account with
For Members who 16 Digit Beneficiary ID NSDL or CDSL) option available on
hold shares in demat For example, if your www.evoting.nsdl.com.
account with CDSL Beneficiary ID is
12**************
b) Click on “Physical User Reset
then your user ID is Password?” (If you are holding shares
12************** in physical mode) option available on
For Members EVEN Number followed by www.evoting.nsdl.com.
holding shares in Folio Number registered c) If you are still unable to get the password
Physical Form with the Company.
by aforesaid two options, you can send a
For example, if EVEN is request at evoting@nsdl.co.in mentioning
123456 and folio number
your demat account number/folio
is 001*** then user ID is
123456001*** number, your PAN, your name and your
registered address.

269
Integrated Annual Report 2021-22 Notice

d) Members can also use the one-time and e-Voting user manual for Shareholders
password (OTP) based login for casting available at the download section of
the votes on the e-Voting system of https://www.evoting.nsdl.com or call on toll free
NSDL. no.: 1800 1020 990 and 1800 22 44 30 or send a
request at evoting@nsdl.co.in.
7. After entering your password, tick on Agree
to “Terms and Conditions” by selecting on 3. Members may send a request to
the check box. evoting@nsdl.co.in for procuring user id and
password for e-voting by providing demat account
8. Now, you will have to click on “Login”
number/Folio number, client master or copy
button.
of Consolidated Account statement, PAN (self
9. After you click on the “Login” button, home attested scanned copy), AADHAR (self-attested
page of e-Voting will open. scanned copy). If you are an Individual shareholder
holding securities in demat mode, you are
How to cast your vote electronically requested to refer to the login method explained
1. You will be able to see all the companies above.
“EVEN” in which you are holding shares and Members who need assistance before or during the
whose voting cycle and General Meeting is in AGM, can contact NSDL on evoting@nsdl.co.in /
active status. 1800 1020 990 and 1800 22 44 30 or contact Amit
2. Select “EVEN 120346” to cast your vote Vishal at amitv@nsdl.co.in or Pallavi Mhatre at
during the remote e-Voting period and pallavid@nsdl.co.in.
casting your vote during the General The Company has appointed Mr. S. N.
Meeting. For joining virtual meeting, you Ananthasubramanian, Practicing Company Secretary,
need to click on “VC/OAVM” link placed (Membership No. 4206, COP No. 1774) or failing him
under “Join General Meeting”. Mrs. Aparna Gadgil, Practicing Company Secretary,
3. Now you are ready for e-Voting as the Voting (Membership No. 14713, COP No. 8430), to act as
page opens. the Scrutinizer for conducting the voting and remote
e-voting process in a fair and transparent manner.
4. Cast your vote by selecting appropriate
options i.e. assent or dissent, verify/modify Institutional shareholders (i.e. other than individuals,
the number of shares for which you wish to HUF, NRI, etc.) are required to send scanned copy
cast your vote and click on “Submit” and also (PDF/JPG format) of the relevant Board Resolution/
“Confirm” when prompted. Authority letter etc., together with attested specimen
signature of the duly authorized signatory(ies) who
5. Upon confirmation, the message “Vote cast are authorized to vote, to the Scrutinizer through
successfully” will be displayed e-mail to scrutinizer@snaco.net, with a copy marked to
6. You can also take the printout of the votes evoting@nsdl.co.in.
cast by you by clicking on the print option on In case of any queries, please visit Help and Frequently
the confirmation page. Asked Questions (FAQs) section available at evoting
7. Once you confirm your vote on the website at https://evoting.nsdl.com.
resolution, you will not be allowed to modify Members will be able to attend the AGM through VC/
your vote. OAVM or view the live webcast of AGM provided by
General Guidelines for shareholders NSDL at https://www.evoting.nsdl.com following the
steps mentioned above for login to NSDL e-voting
1. It is strongly recommended not to share your
system.
password with any other person and take utmost
care to keep your password confidential. Login After successful login, you can see VC/OAVM link
to the e-Voting website will be disabled upon placed under “Join Meeting” menu against company
five unsuccessful attempts to key in the correct name. You are requested to click on VC/OAVM link
password. In such an event, you will need to go placed under “Join Meeting” menu.
through the “Forgot User Details/Password?” or
Based on the report received from the Scrutinizer,
“Physical User Reset Password?” option available
the Company will submit within 2 working days to
on https://www.evoting.nsdl.com to reset the
the Stock Exchanges details of the voting results
password.
as required under Reg. 44(3) of the SEBI (Listing
2. In case of any queries relating to e-Voting Obligations and Disclosure Requirements) Regulations,
you may refer to the FAQs for Shareholders 2015.

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Corporate Management Integrated Statutory Financial
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A Member can opt for only one mode of voting i.e. Under his leadership, he has transformed L&T into a
either through remote e-voting or at the Meeting. If a Company that executes a wide range of projects at speed
Member has cast his vote by remote e-voting then he and scale.
will not be eligible to vote at the Meeting.
Apart from completing several challenging infrastructure
The Scrutinizer will submit his report to the Chairman projects across verticals over the years, he has played a
after completion of the scrutiny. The result of the crucial role in securing and managing EPC contracts for
voting on the Resolutions at the Meeting shall be the construction of four major international airports in
announced by the Chairman or any other person India at Bengaluru, Hyderabad, Delhi and Mumbai. Among
authorized by him immediately after the results are his list of accomplishments are the mandates to build
declared. the tallest statue in the world – the Statue of Unity - and
the development of dedicated freight corridors that will
Facility to cast vote through e-voting will be made
realign the dynamics of freight movement in the country.
available on the Video Conferencing screen and will
The construction division is among the top 30 global
be activated once the same is announced by the
contractors and by far the largest construction organisation
Chairman during the Meeting.
in the country.
The results declared along with the Scrutinizer’s report,
Largely responsible for establishing L&T Construction
will be hosted on the website of the Company at
as a significant EPC player in the Middle East,
www.larsentoubro.com and on the website of NSDL
Mr. Subrahmanyan has spearheaded and won several large
at https://evoting.nsdl.com and will be displayed on
projects in Oman, Qatar, Abu Dhabi and Saudi Arabia. The
the Notice Board of the Company at its Registered
Riyadh Metro project is one of the largest international
Office as well as Corporate Office immediately
orders bagged by L&T thus far; while the Doha Metro, the
after the declaration of the result by the Chairman
AL-Wakrah Road Project both in Qatar and the Abu Dhabi
or any person authorised by him in writing and
Airport airside works have been won in the face of stiff
communicated to the Stock Exchanges.
international competition. He has also led the spread into
EXPLANATORY STATEMENT Africa and L&T Construction is making its presence felt
As required by Section 102 of the Companies Act, 2013, especially in North and East Africa.
the following Explanatory Statement sets out material He holds positions of pre-eminence on various industry
facts relating to the business under items 6 to 13 of the bodies, construction institutions and councils. In February
accompanying Notice dated May 12, 2022. 2021, he was appointed Chairman of the National Safety
Item No. 6 Council (NSC) for three years by the Union Ministry of
Labour & Employment. In this role Mr. Subrahmanyan
Shareholders had approved the appointment of Mr. S.N. would guide the NSC, which has a major part to play to
Subrahmanyan (DIN: 02255382) as Chief Executive Officer ensure safety in workplaces under the new Occupational
and Managing Director of the Company for a period of Safety, Health and Working Conditions Code, 2020 (OSH
five years, with effect from July 1, 2017 upto and including Code, 2020).
June 30, 2022.
Recognising L&T’s leadership in climate and infrastructure
On the recommendation of the Nomination & finance, he has been appointed one of nine founding
Remuneration Committee, the Board of Directors of members of Climate Finance Leadership Initiative (CFLI)
the Company at its Meeting held on May 12, 2022, India to bring global scale and influence to the initiative.
re-appointed Mr. S. N. Subrahmanyan (DIN: 02255382),
as Chief Executive Officer and Managing Director of the Mr. Subrahmanyan is the Non-Executive Vice Chairman of
Company with effect from July 1, 2022, upto and including Larsen & Toubro Infotech Limited, L&T Technology Services
June 30, 2027, subject to the approval of the members in Limited and Mindtree Limited and the Non-Executive
the Annual General Meeting. Chairman of L&T Metro Rail (Hyderabad) Limited and L&T
Finance Holdings Limited.
Mr. S. N. Subrahmanyan, 62, is a civil engineer with post
graduate qualification in business management. He joined At the Annual General Meeting of the Company held on
L&T in 1984 starting off as project planning engineer August 26, 2016, the shareholders had fixed the maximum
and was soon handpicked for senior responsibilities. He limits within which the Board was delegated authority to
is responsible for leading the Company’s considerable decide the remuneration of the Chief Executive Officer
business interests to new growth levels, riding on the and Managing Director of the Company. Pursuant to this,
enormous benefits of digitalisation, big data, and predictive the Board has fixed the remuneration payable to Mr. S. N.
analysis that he drives internally with exceptional zeal. He Subrahmanyan during his tenure as Chief Executive Officer
places a premium on innovation, project management and and Managing Director.
talent development, particularly in leadership roles.

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Integrated Annual Report 2021-22 Notice

The Company has entered into an Agreement with Item No. 7 to 11:
Mr. S.N. Subrahmanyan re-appointing him as a Chief As per the provisions of Section 188 of the Companies
Executive Officer and Managing Director for a period of Act, 2013 (“Act”), transactions with related parties which
five years from July 1, 2022 upto and including June 30, are at arm’s length and in the ordinary course of business,
2027. During the period of this agreement and so long are exempted from the obligation of obtaining prior
as the Chief Executive Officer and Managing Director approval of shareholders. However, as per the provisions
performs his services as per the terms and conditions of Regulation 23(4) of the Securities and Exchange Board
provided by this agreement, he shall be entitled to the of India (Listing Obligations and Disclosure Requirements)
following: Regulations, 2015 (“SEBI Listing Regulations”), such
Salary : R 27,00,000 (Rupees Twenty Seven Lakh only) transactions, if material, require the approval of
per month in the scale of R 27,00,000 - R 3,00,000 – shareholders through a resolution, notwithstanding the
R 42,00,000 with the annual increment due on April 1 fact that the same are on an arm’s length basis and in the
every year. ordinary course of business.
Commission : The commission will be paid as per the With effect from April 1, 2022, Regulation 23 of SEBI
parameters fixed by the Nomination and Remuneration Listing Regulations, mandates prior approval of the
Committee and the Board of Directors within the overall Shareholders through ordinary resolution for all ‘material’
limits approved by the Shareholders of the Company. Related Party Transactions. For this purpose, a Related
Party Transaction will be considered ‘material’ if the
Perquisites : R 20 lakh per annum excluding free furnished
transaction(s) to be entered into individually or taken
accommodation or house rent in lieu thereof. The above
together with previous transactions during a financial year
perquisites will exclude value of Stock Option benefits, if
exceeds R 1,000 Crore or 10% of the annual consolidated
any, computed as per Income Tax Act/Rules, tax on which
turnover of the Company as per the last audited financial
will be borne by the Company.
statements of the Company, whichever is lower.
Others : Company’s contribution to retirement funds,
official use of car/driver and communication facilities for The Company has various subsidiaries which are formed
Company’s business, as per rules of the Company. in accordance with the requirement of local laws for
the purpose of bidding and execution of Engineering,
Disclosures as required under Secretarial Standard 2 on Procurement and Construction (EPC) contracts. Contracts
General Meetings are provided as an Annexure to this entered into by these international subsidiaries usually
Notice. have a clause which requires issuance of Parent Company
The agreement entered into by the Company with Mr. S. N. Guarantees (PCGs) for execution of these projects. The
Subrahmanyan, in respect of his re-appointment as Chief value of these PCGs is equivalent to the full value of the
Executive Officer and Managing Director, contains terms contract. Such PCGs are to be issued upfront and are to
and conditions of his appointment including remuneration. be valid till the completion of all obligations under the
contract.
Accordingly, the Resolution at Item No. 6 is proposed
for approval of the members for re-appointment of Considering the above, the Company is required to provide
Mr. S. N. Subrahmanyan, as the Chief Executive Officer and Parent Company Guarantees or Corporate Guarantees
Managing Director as contemplated by Part III of Schedule or Letters of Comfort or Undertakings, on behalf of its
V of the Companies Act, 2013 and other applicable subsidiary companies, to achieve business objectives
provisions, if any. including meeting client requirements under the terms of
Pursuant to Article 136(C) of the Articles of Association of the contract, consortium or other agreements.
the Company, Mr. S.N. Subrahmanyan in his capacity as Considering the increasing localization requirements
Chief Executive Officer and Managing Director will not be in the Middle East, it had become imperative for the
liable to retire by rotation. Company to bid for projects through its local subsidiaries.
The agreement entered into with Mr. S. N. Subrahmanyan Larsen Toubro Arabia LLC, L&T Modular Fabrication
will be open for inspection by members in the manner Yard LLC, Larsen & Toubro Electromech LLC, Larsen
as specified in this Notice up to the date of the Annual & Toubro Heavy Engineering LLC, Larsen & Toubro
General Meeting. Kuwait General Contracting Co WLL (“international
subsidiaries”) were incorporated as subsidiaries in the
The Board recommends approval of the re-appointment Middle East. The value of the Parent Company Guarantees
and remuneration of Mr. S. N. Subrahmanyan, as Chief or Corporate Guarantees or Letters of Comfort or
Executive Officer and Managing Director of the Company. Undertakings proposed to be issued to customers on
Except Mr. S.N. Subrahmanyan, being the appointee, none behalf of the international subsidiaries is R 6,000 crore
of the Directors and Key Managerial Personnel of the or US $ 800 Mn, whichever is higher. The Company had
Company and their relatives are concerned or interested, in in the past provided similar Parent Company Guarantees
the Resolution set out at Item No. 6. or Corporate Guarantees or Letters of Comfort or

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Undertakings in favour of these international subsidiaries. related parties is estimated on the basis of the Company’s
However, post the amendment in the definition of material current transactions with them and the future business
related party transactions, the aforesaid proposal now prospects.
requires prior approval of the shareholders.
The proposed transactions, being operational and critical
Given the nature and scope of the business, the Company in nature, play a significant role in the Company’s business.
works closely with its related parties (including subsidiaries) Therefore, in order to secure continuity of operations, the
to achieve its business objectives and enters into various Company is proposing to seek approval of shareholders for
operational transactions with its related parties, from time the potential quantum of transactions with the aforesaid
to time, in the ordinary course of business and on arm’s related parties.
length. Amongst the transactions that Company enters
The Company has in place a balanced and structured policy
into with its related parties, the estimated value of the
and process for approval of Related Party Transactions.
contract(s)/arrangement(s)/transaction(s) with L&T-MHI
The Policy provides the details required to be provided to
Power Boilers Private Limited, L&T-MHI Power Turbine
the Audit Committee for the purpose of review of such
Generators Private Limited, L&T Special Steels and
transactions and grant their approval for the proposed
Heavy Forgings Private Limited and L&T Modular
transactions. A justification for each and every related party
Fabrication Yard LLC, subsidiaries of the Company
transaction is provided to the Audit Committee which
(“Related Parties”), are likely to exceed the threshold of
enables them to arrive at the right decisions. Additionally,
material Related Party Transactions.
an update on the actual related party transactions entered
The Company has been undertaking transactions of similar during every quarter is provided to the Audit Committee.
nature in the past in the ordinary course of business and
The Audit Committee of the Company comprises of
on arm’s length after obtaining requisite approvals of the
only Independent Directors as Members which helps
Audit Committee of the Company. The maximum annual
in providing an objective judgement to all transactions
value of the proposed transactions with the aforesaid
proposed for approval.
Details w.r.t Material Related Party Transactions:
Particulars Resolution No. 7 Resolution No. 8 Resolution No. 9 Resolution No. 10 Resolution No. 11
Name of the Related Larsen Toubro Arabia LLC, L&T-MHI Power Boilers L&T-MHI Power L&T Special Steels L&T Modular
Parties L&T Modular Fabrication Private Limited (LMB) Turbine Generators and Heavy Forgings Fabrication Yard LLC
Yard LLC, Larsen & Toubro Private Limited (LMTG) Private Limited (MFY)
Electromech LLC, Larsen & (LTSSHF)
Toubro Heavy Engineering
LLC, Larsen & Toubro Kuwait
General Contracting Co WLL
(“international subsidiaries”)
Nature of Subsidiary Company(ies)
Relationship
Nature, duration, Providing Parent Company a) Sale, purchase, lease or supply of goods, business assets or equipment;
tenure, material Guarantees or Corporate b) Availing or rendering of services;
terms, monetary Guarantees or Letters of
value and particulars Comfort or Undertakings c) Transfer or exchange of any resources, services or obligations to meet its business objectives/
of the contract or on behalf of International requirements
arrangement subsidiaries from this AGM The approval will be valid from this AGM till the next Annual General Meeting or for a period of
till the next Annual General fifteen months, whichever is earlier, in accordance with the terms and conditions of the contract/
Meeting or for a period of agreement for the below mentioned amounts:
fifteen months, whichever
is earlier, and for an amount Name of the Company LMB LMTG LTSSHF MFY*
not exceeding R 6,000 crore Amount (R Crore) 6,500 2,600 2,000 2,300
or US $ 800 Mn, whichever * US $ 300 million whichever is higher
is higher, in accordance with
the terms and conditions of
the contract/agreement to
be executed by international
subsidiaries with their
customers.
Transaction related Not Applicable
to providing loan(s)/
advance(s) or
securities for loan
taken by a related
party

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Integrated Annual Report 2021-22 Notice

Particulars Resolution No. 7 Resolution No. 8 Resolution No. 9 Resolution No. 10 Resolution No. 11
Details of the Not Applicable
source of funds in
connection with the
proposed transaction
If any financial Not Applicable as no indebtness shall be incurred by the Company
indebtness is
incurred to make
or give such loans/
advances/securities
for loan and Nature
of Indebtness/Cost of
Funds/Tenure
Applicable terms, The Parent Company Not Applicable
including covenants, Guarantee or Corporate
tenure, interest rate, Guarantee will be provided at
repayment schedule, an arm’s length basis and a fee
whether secured will be charged.
(nature of security) The charges would be upto
or unsecured 0.50% per annum which is
benchmarked with the existing
bank guarantee charges.
Purpose for which Not Applicable
funds will be utilised
Any advance paid NIL
or received for the
transaction
Percentage of the 3.83% 4.15% 1.66% 1.28% 1.47%
Company’s annual
consolidated
turnover for the
immediately
preceding financial
year (i.e FY 22) that
is represented by
the value of the
proposed transaction
Details about As the proposal relates to The Power business of the Company is into The Heavy The Company is in the
valuation, arm’s providing Parent Company construction and commissioning of power Engineering business business of bidding for
length and ordinary Guarantees or Corporate plants. Boilers/Turbines are a critical component manufactures and various EPC contracts
course of business Guarantees or Letter of of the power plant and hence procurement supplies custom in India as well as
Comforts or Undertakings of boilers/turbines is in the ordinary course of designed equipment overseas. Most of the
on behalf of international business for the Company. & critical piping to EPC projects involve
subsidiaries the question of LMB/LMTG is a joint venture between the process industries use of customized
valuation does not arise. Company and Mitsubishi Heavy Industries such as fertilizer, fabricated structures
The charges would be upto (MHI) and is part of the technical collaboration chemical, refinery, as per the contract
0.50% per annum which is in construction and commissioning of power petrochemical and specifications. As far
benchmarked with the existing plants. oil & gas, as well as as Indian projects
bank guarantee charges to sectors such as are concerned, the
While bidding for a project, the technical thermal & nuclear Company has its own
qualifications of MHI adds to the pre- power and aerospace. fabrication facility(ies)
qualifications of the Company. The Company in India. In case of
is charged a price comparable with what LMB/ The Defence overseas projects, the
LMTG charges to its other customers. Hence the Engineering business Company generally
transaction is at arm’s length. provides indigenous,
design-to-delivery uses such facilities
The Company also avails infrastructure and solutions across the outside India to save
business support services with respect to boilers defence spectrum – on logistics costs.
and turbine generators from LMB and LMTG from surveillance to Thus, availing
respectively. strike capabilities, and fabrication services
These entities operate from common mobility platforms is an activity in the
campus(es) across the country and expenses essential to enhance normal course of
related to the same are apportioned by the their effectiveness. business.
Company to LMB and LMTG.

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Particulars Resolution No. 7 Resolution No. 8 Resolution No. 9 Resolution No. 10 Resolution No. 11
Both these businesses The Company obtains
require customized quotations from
forging. various parties for its
Hence procurement fabrication activities
of forgings is in and based on the price,
the ordinary course quality, timelines,
of business of the etc., the contract gets
Company. finalized.

The businesses MFY also quotes for

procure forgings from such contracts and gets
LTSSHF as well as selected only if the
external vendors and quote is competitive.
hence arm’s length The Company also
is decided based on sells material such as
comparable quotes. steel plates, pipes, etc
Factors such as to MFY at competitive
timeliness and quality prices.
are also considered
before deciding on
the procurement.
The Company
also sells scrap
materials as well as
avails engineering
services for its Heavy
Engineering and
Defence Engineering
businesses.
This entity operates
from a common
campus in Hazira
and expenses related
to the same are
apportioned by the
Company to LTSSHF.
Rationale/Benefit of This will enable international The Power business of the Company bids for The Heavy The Energy &
the transaction and subsidiaries to bid and execute execution of a power plant project after taking Engineering & Hydrocarbon business
why this transaction contracts in foreign countries into consideration various costs involved. Defence Engineering of the Company
is in the interest of Procurement of boilers/turbines is an integral business of the bids for various EPC
the Company part of the installation of a power plant. Company bids for contracts.
various projects Customized fabrication
While bidding for the project, the Company (including defence
states that the boilers/turbine generators activities are an
contracts of the essential part of
and other infrastructure support service will Government)
be procured from LMB and LMTG which are execution of such
pre-qualified as per the contractual conditions. Some of these contracts.
contracts require Such activities are
procurement of normally done through
forgings. MFY which has the
LTSSHF is a pre- technical expertise,
qualified supplier for facilities and execution
most of the clients. capabilities.
Any other All international subsidiary The Company is expected to bid for various projects during FY 2023.
information relevant companies have local partners. The above related party contract(s)/arrangement(s) will materialize only if the Company succeeds
or important for the However, 100% beneficial in the bids being participated.
shareholders to take interest in the international
an informed decision subsidiaries is held by the Since it is not possible to predict the exact amount of the contract(s), enabling approval of
Company. shareholders is being sought.

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Integrated Annual Report 2021-22 Notice

Any subsequent material modification in the proposed issue, conversion of Securities shall rank in all respects pari
transactions, as defined by the Audit Committee as a part passu with the existing equity shares of the Company.
of Company’s Policy on Related Party Transactions, shall be
The Company may also opt for issue of securities through
placed before the shareholders for approval, in terms of
Qualified Institutions Placement (QIP). A QIP of the shares
Regulation 23(4) of the SEBI Listing Regulations.
of the Company would be less time consuming and more
SEBI vide its Circular dated April 8, 2022 has clarified that a economical than other modes of raising capital.
related party transaction approved by the shareholders shall
Accordingly, the Company may issue securities by way
be valid from one AGM till the next AGM of the Company
of a QIP in terms of Chapter VI of the Securities and
or for a period of fifteen months, whichever is earlier.
Exchange Board of India (Issue of Capital and Disclosure
The Board recommends the Resolution set out at Item Nos. Requirements) Regulations, 2018 (‘SEBI Regulations’).
7 to 11 for approval of the Shareholders. These securities will be allotted only to Qualified
Institutional Buyers (QIBs) as per the SEBI Regulations and
None of the Directors and Key Managerial Personnel (KMP)
there will be no issue to retail individual investors and
of the Company and their respective relatives are, in any
existing retail shareholders. The resolution proposed is an
way, concerned or interested, in the Resolution set out at
enabling resolution and the exact price, proportion and
Item Nos. 7 to 11.
timing of the issue of the securities will be decided by the
The members may note that as per the provisions of the Board based on an analysis of the specific requirements
SEBI Listing Regulations, all related parties (whether such after necessary consultations. Therefore, the proposal
related party is a party to the above-mentioned transaction seeks to confer upon the Board the absolute discretion to
or not), shall not vote to approve the Resolutions set out at determine the terms of issue in consultation with the Lead
Item Nos. 7 to 11. Managers to the Issue.
Item No. 12 As per Chapter VI of the SEBI Regulations, an issue of
The Company requires adequate capital to meet the securities on QIP basis shall be made at a price not less
needs of growing business. While it is expected that the than the average of the weekly high and low of the closing
internal generation of funds would partially finance the prices of the related shares quoted on the stock exchange
need for capital, debt raising would be another source of during the two weeks preceding the “relevant date.” The
funds and hence it is thought prudent for the Company Board may, at its absolute discretion, issue equity shares
to have enabling approvals to raise a part of the funding at a discount of not more than five percent or such other
requirements for the said purposes as well as for such other discount as may be permitted under applicable regulations
corporate purposes as may be permitted under applicable to the ‘floor price’ as determined in terms of the SEBI
laws through the issue of appropriate securities as defined Regulations, subject to Section 53 of the Companies Act,
in the resolution, in Indian or International markets. 2013.

The fund raising may be through a mix of equity/equity- As the pricing of the offer cannot be decided except at a
linked instruments, as may be appropriate. Members’ later stage, it is not possible to state the price of shares to
approval is sought for the issue of equity shares, securities be issued.
linked to or convertible into equity shares or depository However, the same would be in accordance with the
receipts of the Company. SEBI (Listing Obligations and provisions of the SEBI Regulations, the Companies Act,
Disclosure Requirements) Regulations, 2015 also provides 2013, or any other guidelines/regulations/consents as may
that the Company shall, in the first instance, offer all be applicable or required.
Securities for subscription pro-rata to the Shareholders
unless the Shareholders in a general meeting decide In case of issue of convertible bonds and/or equity shares
otherwise. Members’ approval is sought for issuing any through depository receipts, the price will be determined
such instrument as the Company may deem appropriate on the basis of the then current market price and other
to parties other than the existing shareholders. Whilst no relevant guidelines.
specific instrument has been identified at this stage, in the The “relevant date” for the above purpose, shall be -
event the Company issues any equity linked instrument,
the issue will be structured in a manner such that the i) in case of allotment of equity shares, the date of
additional share capital that may be issued would not be the meeting in which the Board decides to open the
more than 5% of the paid-up capital of the Company (as proposed issue
at the date when the Board recommended passing of the ii) in case of allotment of eligible convertible securities,
Special Resolution). The equity shares, if any, allotted on either the date of the meeting in which the Board
decides to open the issue of such convertible securities

276
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

or the date on which the holders of such convertible Accountants (Regn. No. 000010), as the Cost Auditors of
securities become entitled to apply for the equity the Company to conduct audit of cost records maintained
shares, as may be determined by the Board. by the Company for the Financial Year 2022-23, at a
remuneration of R 17 lakhs plus applicable taxes and out
The Stock Exchange for the same purpose is BSE Limited/
of pocket expenses at actuals for travelling and boarding/
National Stock Exchange of India Limited.
lodging.
The Shareholders through a resolution passed at their
M/s. R. Nanabhoy & Co., Cost Accountants, have furnished
meeting held on August 5, 2021, had approved issue of
certificates regarding their eligibility for appointment as
Securities for an aggregate sum up to US$ 600 Million
Cost Auditors of the Company. In accordance with the
(or its rupee equivalent) or R 4,500 Crore, if higher. The
provisions of Section 148 of the Act read with the Rules,
Company has not raised any funds under the said approval.
the remuneration payable to the cost auditor has to be
However, Shareholders’ resolution for QIP issuance is valid
ratified by the shareholders of the Company.
for a period of 12 months from the date of passing of the
resolution. Accordingly, consent of the shareholders is sought for the
aforesaid purpose.
The Directors recommend this Resolution for approval of
the Shareholders. The Directors recommend this resolution for approval of
the shareholders.
None of the Directors and Key Managerial Personnel of the
Company and their relatives are concerned or interested, in None of the Directors and Key Managerial Personnel of the
the resolution set out at Item No. 12. Company and their relatives are concerned or interested, in
the resolution set out at Item No. 13.
Item No. 13:
In accordance with the provisions of Section 148 of the By Order of the Board of Directors
Companies Act, 2013 (“the Act”) and the Companies For LARSEN & TOUBRO LIMITED
(Audit and Auditors) Rules, 2014 (“the Rules”) the
Company is required to appoint a cost auditor to audit SIVARAM NAIR A
the cost records of the Company, for products and COMPANY SECRETARY
services, specified under Rules issued in pursuance M.No – F3939
to the above section. On the recommendation of the
Mumbai, May 12, 2022
Audit Committee, the Board of Directors had approved
the appointment of M/s. R. Nanabhoy & Co, Cost

277
Integrated Annual Report 2021-22 Notice

(ANNEXURE TO NOTICE DATED MAY 12, 2022)

DETAILS OF DIRECTORS SEEKING APPOINTMENT/RE-APPOINTMENT AT THE FORTHCOMING
ANNUAL GENERAL MEETING
[Pursuant to Regulation 36(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and
Secretarial Standard 2 on General Meetings]

Name of the
Mr. Subramanian Sarma Mr. Sudhindra Vasantrao Desai Mr. T. Madhava Das Mr. S.N. Subrahmanyan
Director

Date of Birth February 4, 1958 July 5, 1960 January 25, 1963 March 16, 1960

Date of August 19, 2015 July 11, 2020 July 11, 2020 July 1, 2011
Appointment
on the Board

Qualifications Master’s Degree in Masters in Civil Engineering from B.E from NIT Calicut, Post B.Sc, Engg. (Civil) & MBA
Chemical Engineering IIT Graduate in Management Finance
from IIT Bombay from Xavier Institute,
Bhubaneshwar

Expertise Expertise in managing Vast Experience in Heavy Civil and Expertise in managing Vast Experience in Design
large business portfolios in Infrastructure Space and nurturing business and Build (D&B) contracts,
energy sector. portfolios of global PPP Projects, Engineering
utility projects especially and Construction Industry
in power transmission
and distribution and
renewables

Directorships 1. L&T Valves Limited 1. L&T Arunachal Hydropower Indian Electricals and 1. Larsen & Toubro Infotech
held in Limited Electronics Manufacturers Limited
2. L&T Power Limited
other public Association
2. L&T Himachal Hydropower 2. L&T Technology Services
companies
Limited Limited
including
private 3. L&T Infrastructure Engineering 3. L&T Metro Rail
companies Limited (Hyderabad) Limited
which are 4. International Seaport 4. L&T Realty Developers
subsidiaries Dredging Private Limited Limited
of public
companies 5. Mindtree Limited
(excluding 6. Mindtree Foundation
foreign
companies) 7. L&T Finance Holdings
Limited

Memberships/ Member Member NA Member

Chairmanships Risk Management Corporate Social Responsibility Nomination and
of committees Committee Committee Remuneration Committee
across all
Larsen & Toubro Limited L&T Infrastructure Engineering Mindtree Limited
companies
Limited

Number of 8 of 8 8 of 8 8 of 8 8 of 8
Meetings
attended during
the year

Shareholding of NA NA NA NA
Non-Executive
Directors

Relationships None None None None

between
directors
inter-se

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Information at a glance:
Sr. No Particulars Details
1 Day, Date and Time of AGM Thursday, August 4, 2022, 3.30 P.M
2 Mode Video Conference (VC) and Other Audio Visual Means(OAVM)
3 Participation through VC/OAVM Members can login from 03.00 P.M. (IST) on the date of the AGM at
https://www.evoting.nsdl.com.
4 Helpline Number for VC/OAVM 1800 1020 990/1800 22 44 30
participation
5 Submission of Questions/Queries Members seeking any information with regard to the accounts or any matter to be
before AGM placed at the AGM, are requested to write to the Company on or before Thursday,
July 28, 2022 through email on IGRC@larsentoubro.com. The same will be replied by
the Company suitably. Please note that members’ queries/questions will be responded
to only if the shareholder continues to hold the shares as on the cut-off date i.e
Thursday, July 28, 2022.
6 Speaker Registration before AGM Members may register themselves as a speaker by sending their request from their
registered email address mentioning their name, DP ID and Client ID/folio number,
PAN, mobile number to LNTGOGREEN@larsentoubro.com on or before Monday,
August 1, 2022.
7 Recorded Transcript Will be made available post AGM at www.larsentoubro.com
8 Dividend for FY 2022 recommended by R 22 per equity share of the face value of R 2 each
the Board
9 Record Date Friday, July 22, 2022
10 Dividend Payment Date On or before Monday, August 08, 2022
11 Cut-off date for e-voting Thursday, July 28, 2022
12 Remote e-voting start time and date Monday, August 1, 2022, 09.00 A.M
13 Remote e-voting end time and date Wednesday, August 3, 2022, 05.00 P.M
14 Remote e-voting website of KFintech Shares held in Demat mode with NSDL:
1. Shareholders registered for NSDL IDeAS facility: https://eservices.nsdl.com/

2. Others: https://evoting.nsdl.com

Shares held in Demat mode with CDSL:

1. Shareholders who have opted for Easi facility of CDSL:
https://web.cdslindia.com/myeasi/home/login

2. Others: www.cdslindia.com

Logging in through Depositary Participants:

Members can also login using the login credentials of their demat account through
your DP registered with NSDL/CDSL for e-voting facility.
15 Name, address and contact details of Registrar and Transfer Agent
e-voting service provider and registrar KFin Technologies Limited (“KFintech”),
and transfer agent Selenium, Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda,
Hyderabad 500 032
Tel No: 1800-425-8998/1800-345-4001
Email: einward.ris@KFintech.com

E-voting Service Provider

National Securities Depositories Limited (NSDL)
Trade World, A Wing, 4th Floor, Kamala Mills Compound,
Lower Parel, Mumbai – 400013
Tel No: 18001020 990/1800 22 44 30
16 Email Registration and Contact Demat Shareholders:
Updation Process Contact respective Depository Participant
Physical Shareholders:
KFintech Website: https://ris.kfintech.com/clientservices/mobilereg/mobileemailreg.aspx

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Integrated Annual Report 2021-22 Board Report

Board Report
Dear Members,

The Directors have pleasure in presenting their 77th Annual Report and Audited Financial Statements for the year ended
31st March 2022.
FINANCIAL RESULTS:
v crore
Particulars 2021-22 2020-21
Profit before depreciation, exceptional items and tax 10913.91 9288.06
Less: Depreciation, amortization, impairment and obsolescence 1172.50 1150.68
Profit before exceptional items and tax 9741.41 8137.38
Add: Exceptional Items 290.06 (2818.65)
Profit before tax 10031.47 5318.73
Less: Provision for tax 2152.02 2171.42
Profit for the period from continuing operations 7879.45 3147.31
Profit before tax from discontinued operations – 11199.23
Less: Tax expense of discontinued operations – 2548.75
Net profit after tax from discontinued operations – 8650.48
Net profit after tax from continuing operations and discontinued operations 7879.45 11797.79
Add: Balance brought forward from the previous year 25722.05 16957.17
Add: Change on account of business combination – 838.62
Less: Dividend paid for the previous year 2528.38 1123.23
Less: Interim dividend paid during the year – 2527.66
Add: Gain on remeasurement of the net defined benefits plans 58.02 39.36
Less: Capital redemption reserve – 260.00
Balance to be carried forward 31131.14 25722.05

PERFORMANCE OF THE COMPANY: by the Board of Directors of the Company which is in

The total income for the financial year under review was line with regulation 43A of the SEBI (Listing Obligations
R 1,04,613.06 crore as against R 90,615.77 crore for the and Disclosure Requirements) Regulations, 2015.
previous financial year, registering an increase of 15.45%. The Policy is uploaded on the Company’s website at
The profit before tax from continuing operations including https://www.larsentoubro.com/corporate/about-lt-group/
exceptional items was R 10,031.47 crore for the financial corporate-policies/.
year under review as against R 5,318.73 crore for the CAPITAL AND FINANCE:
previous financial year. The profit after tax from continuing
During the year under review, the Company allotted
operations including exceptional items was R 7,879.45
473,826 equity shares of R 2/- each upon exercise of stock
crore for the financial year under review as against
options by eligible employees under the Employee Stock
R 3,147.31 crore for the previous financial year, registering
Option Schemes.
an increase of 150.36%.
The Company’s Authorized Capital increased from R 5,025
AMOUNT TO BE CARRIED TO GENERAL RESERVE:
crore to R 8,037 crore pursuant to amalgamation of L&T
The Company has not transferred any amount to general Hydrocarbon Engineering Limited with the Company vide
reserve during the current financial year. order dated 28th January 2022 passed by Hon’ble National
DIVIDEND: Company Law Tribunal, Mumbai bench.
The Directors recommend payment of dividend of R 22/- During the year, the Company repaid Non-convertible
(1,100%) per equity share of R 2/- each on the share capital Debentures (NCDs) of R 450 crore and short-term External
amounting to R 3,091.06 crore. Commercial Borrowings (ECB) of USD 100 million as per
the repayment schedule.
The Dividend payment is based upon the parameters
mentioned in the Dividend Distribution Policy approved

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

The Company has exercised the first call on the partly paid CAPITAL EXPENDITURE:
up Debentures issued in the FY 2021 and raised R 450 As at 31st March 2022, the gross value of property, plant
crore (R 2.5 lakh each on 18,000 debentures) during FY and equipment, investment property and other intangible
2022. The funds raised through issuance of NCDs have assets including leased assets, were at R 16,837.38 crore
been utilized for repayment of existing maturing NCDs. and the net value of property, plant and equipment,
The Company has issued Commercial Papers amounting to investment property and other intangible assets, including
R 5,800 crore during FY 2022. As on date, the outstanding leased assets, were at R 9,695.93 crore. Capital Expenditure
amount of Commercial Papers is R 2,000 crore. during the year amounted to R 1,410.29 crore.

The Company has not defaulted on payment of any dues DEPOSITS:

to the financial lenders. During the year under review, the Company has not
accepted deposits from the public falling within the ambit
The Company’s borrowing programmes have received
of section 73 of the Companies Act, 2013 and the rules
the highest credit ratings from CRISIL, ICRA and India
framed thereunder, and the requisite returns have been
Ratings. The details of the same are given on page 313 in
filed. The Company does not have any unclaimed deposits
Annexure ‘B’ – Report on Corporate Governance forming
as of date.
part of this Board Report and is also available on the
website of the Company. SUBSIDIARY / ASSOCIATE / JOINT VENTURE
COMPANIES:
SALE OF DIGITAL BUSINESS (L&T NxT):
During the year under review, the Company acquired
During FY 2022, the Company sold its digital
6,82,25,347 equity shares of L&T Finance Holdings Limited
transformation business, incubated and operated as
(LTFHL) and presently holds 163,92,29,920 equity shares
L&T NxT, to Mindtree Limited, a listed subsidiary of the
representing 66.26% of the total share capital of LTFHL.
Company, for a consideration of R 198 crore.
L&T Uttaranchal Hydropower Limited (L&T UHPL) ceased
SCHEME OF ARRANGEMENT BETWEEN THE COMPANY
to be a subsidiary of the Company pursuant to the sale of
AND L&T HYDROCARBON ENGINEERING LIMITED:
entire stake by the Company and L&T Power Development
The Board of Directors of the Company had approved a Limited (a wholly owned subsidiary) to ReNew Power
Scheme for Amalgamation of L&T Hydrocarbon Engineering Services Private Limited (ReNew) for a total consideration
Limited (LTHE), a wholly owned subsidiary, with the of R 1,003 crore. The Company held 142,68,50,000
Company. The rationale for the Scheme was to create cost preference shares in L&T UHPL which were entirely sold to
effectiveness by integrating the Hydrocarbon business of ReNew.
LTHE and Engineering, Projects and Construction (EPC)
power business of the Company. Kesun Iron and Steel Company Private Limited has applied
to the Ministry of Corporate Affairs for strike off under
The Scheme of Arrangement (the “Scheme”) was approved the provisions of Companies Act, 2013 on 15th December
by the Hon’ble National Company Law Tribunal, Mumbai 2021. The approval is awaited.
Bench and became effective from 7th February 2022. The
Appointed date for the Scheme is 1st April 2021. Pursuant to an order passed by the National Company Law
Tribunal, Mumbai bench, the equity share capital of L&T
Subsequently all the subsidiaries of LTHE have become Seawoods Limited, a wholly owned subsidiary, was reduced
direct subsidiaries of the Company. to the extent of 30,00,00,000 equity shares aggregating to
AMALGAMATION OF MINDTREE LIMITED WITH R 300 crore by way of return of surplus cash on 7th April
LARSEN & TOUBRO INFOTECH LIMITED: 2022.
Subsequent to the year under review, the Board of A statement containing the salient features of the
Directors of Mindtree Limited (MT) and Larsen & Toubro financial statement of subsidiary / associate / joint
Infotech Limited (LTI), listed subsidiaries of the Company, venture companies and their contribution to the overall
have approved a Scheme of Amalgamation of MT with LTI. performance of the Company is provided on pages 611 to
The said scheme is subject to approval of the Shareholders 622 of this Annual Report.
and creditors of these subsidiaries and the approval of
applicable regulators and the Hon’ble National Company The Company has formulated a policy on identification of
Law Tribunals having jurisdiction over these subsidiary material subsidiaries in line with Regulation 16(c) of the
companies. SEBI (Listing Obligations and Disclosure Requirements)

281
Integrated Annual Report 2021-22 Board Report

Regulations, 2015 and the same is placed on the of the Postal Ballot will be declared on or before 18th May
Company’s website at https://www.larsentoubro.com/ 2022.
corporate/about-lt-group/corporate-policies/. The Company
The Company is seeking an enabling approval for certain
does not have any material subsidiaries as on the date of
material related party transactions at the ensuing Annual
this report.
General Meeting (AGM). Shareholders are requested
PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE, to refer to the AGM notice at pages 258 to 279 of this
GUARANTEES GIVEN OR SECURITY PROVIDED BY THE Annual Report, for details of the proposed related party
COMPANY: transactions.
The Company has disclosed the full particulars of the
MATERIAL CHANGES AND COMMITMENTS AFFECTING
loans given, investments made or guarantees given or THE FINANCIAL POSITION OF THE COMPANY,
security provided as required under section 186 of the BETWEEN THE END OF THE FINANCIAL YEAR AND THE
Companies Act, 2013, Regulation 34(3) and Schedule V of DATE OF THE REPORT:
the SEBI (Listing Obligations and Disclosure Requirements)
Other than stated elsewhere in this report, there are no
Regulations, 2015 in Notes 57 and 58 forming part of the
material changes and commitments affecting the financial
financial statements.
position of the Company between the end of the financial
PARTICULARS OF CONTRACTS OR ARRANGEMENTS year and the date of this report.
WITH RELATED PARTIES:
CONSERVATION OF ENERGY, TECHNOLOGY
Pursuant to the amendments to the SEBI (Listing ABSORPTION, FOREIGN EXCHANGE EARNINGS AND
Obligations and Disclosure Requirements) Regulations, OUTGO:
2015, the Company has revised its existing Related Party Information as required to be given under section
Transactions Policy to align it with the requirements of the 134(3)(m) of the Companies Act, 2013 read with Rule 8(3)
said Regulations. of the Companies (Accounts) Rules, 2014 is provided in
The Audit Committee and the Board of Directors have Annexure ‘A’ forming part of this Board Report.
reviewed and approved the amended Related Party RISK MANAGEMENT:
Transactions Policy and the same has been uploaded on
The Board Risk Management Committee comprises
the Company’s website https://www.larsentoubro.com/
Mr. Adil Zainulbhai, Mr. Sanjeev Aga and Mr. Subramanian
corporate/about-lt-group/corporate-policies/.
Sarma, Directors of the Company. Mr. Adil Zainulbhai is the
The Company has a process in place to periodically review Chairman of the Committee.
and monitor Related Party Transactions.
The Charter of the Committee is to assist the Board
During the year under review, all related party transactions in fulfilling its oversight responsibilities of reviewing
were in the ordinary course of business and at arm’s length. the existing Risk Management Policy, Framework, Risk
The Audit Committee has approved the related party Management Structure and Risk Management Systems.
transactions for the FY 2022 and the estimated related
The Committee periodically reviews the risk status to
party transactions for FY 2023.
ensure that executive management mitigates the risks by
There were no related party transactions that have conflict means of a properly designed framework.
with the interest of the Company.
For further details on risk management, please refer to
The Company proposes to enter into a material related page 306 of this Annual Report.
party transaction with L&T Finance Limited for providing
DETAILS OF DIRECTORS AND KEY MANAGERIAL
a line of credit of R 2,000 crore for a period of 5 years
PERSONNEL APPOINTED/ RESIGNED:
from FY 2023 till FY 2027. The transaction is not a
Mr. Subodh Bhargava ceased to be an Independent
material related party transaction as per the provisions of
Director of the Company with effect from March 29, 2022
the Companies Act, 2013. However, the said transaction
on account of completion of his tenure. The Board places
exceeds the materiality threshold of R 1,000 crore as
on record its appreciation towards valuable contribution
provided under Regulation 23(1) of the SEBI (Listing
made by him during his tenure as Director of the Company.
Obligations and Disclosure Requirements) Regulations,
2015. The Company has sought an enabling approval from Pursuant to the recommendation of the Nomination and
the Shareholders by means of a Postal Ballot. The results Remuneration Committee (NRC), the Board at its Meeting

282
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

held on March 24, 2022 has approved the appointment Regulations, 2015. The details relating to the same are
of Mr. Pramit Jhaveri as an Independent Director for a given in Annexure ‘B’ - Report on Corporate Governance
period of five years with effect from April 1, 2022 till forming part of this Board Report. Members are requested
March 31, 2027, subject to the approval of shareholders to refer to pages 298 to 300 of this Annual Report.
through special resolution. The approval has been sought
STAKEHOLDERS RELATIONSHIP COMMITTEE:
by means of a Postal Ballot and the results will be declared
on or before 18th May 2022. The NRC considered the The Company has in place a Stakeholders Relationship
appointment of Mr. Jhaveri as an Independent Director Committee in terms of the requirements of the Companies
after evaluating the skills, knowledge and experience Act, 2013 read with the rules made thereunder and
required on the Board as per the approved skill matrix. Regulation 20 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015. The details
The Board pursuant to the recommendation of the NRC
relating to the same are given in Annexure ‘B’ - Report on
and report of his performance evaluation, re-appointed
Corporate Governance forming part of this Board Report.
Mr. S.N Subrahmanyan as Chief Executive Officer and
Members are requested to refer to page 304 of this Annual
Managing Director of the Company for a period of five
Report.
years from July 1, 2022 upto and including June 30, 2027.
His appointment shall be subject to the approval of the COMPANY POLICY ON DIRECTORS’ APPOINTMENT
shareholders. AND REMUNERATION:

Mr. Subramanian Sarma, Mr. S. V. Desai and The Company has in place a Nomination and Remuneration
Mr. T. Madhava Das, retire by rotation at the ensuing Committee in accordance with the requirements of the
Annual General Meeting (AGM) and being eligible, offer Companies Act, 2013 read with the rules made thereunder
themselves for re-appointment. and Regulation 19 of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015. The details
The notice convening the AGM includes the proposal for relating to the same are given in Annexure ‘B’ - Report on
re-appointment of Directors. Corporate Governance forming part of this Board Report.
The terms and conditions of appointment of the Members are requested to refer to pages 300 to 303 of
Independent Directors are in compliance with the provisions this Annual Report.
of the Companies Act, 2013 and are placed on the website
The Committee has formulated a policy on Directors’
of the Company http://investors.larsentoubro.com/Listing-
appointment and remuneration including recommendation
Compliance.aspx.
of remuneration of the key managerial personnel
The Company has also disclosed on its website and senior management personnel, and the criteria
http://investors.larsentoubro.com/Listing-Compliance.aspx for determining qualifications, positive attributes and
details of the familiarization programs to educate the independence of a Director. Nomination and Remuneration
Independent Directors regarding their roles, rights and Policy is provided as Annexure ‘F’ forming part of this
responsibilities in the Company and the nature of the Board Report and also disclosed on the Company’s website
industry in which the Company operates, the business at https://www.larsentoubro.com/corporate/about-lt-group/
model of the Company, etc. corporate-policies/. The Committee has also formulated a
separate policy on Board Diversity.
NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS:
This information is given in Annexure ‘B’ - Report on DECLARATION OF INDEPENDENCE:
Corporate Governance forming part of this Report. The Company has received Declarations of Independence
Members are requested to refer to pages 293 and 294 of as stipulated under section 149(7) of the Companies Act,
this Annual Report. 2013 and Regulation 25(8) of SEBI (Listing Obligations
AUDIT COMMITTEE: and Disclosure Requirements) Regulations, 2015
from Independent Directors confirming that he/she is
The Company has in place an Audit Committee in terms
not disqualified from being appointed/re-appointed/
of the requirements of the Companies Act, 2013 read
continue as an Independent Director as per the criteria
with the rules made thereunder and Regulation 18 of the
laid down in section 149(6) of the Companies Act, 2013
SEBI (Listing Obligations and Disclosure Requirements)

283
Integrated Annual Report 2021-22 Board Report

and Regulation 16(1)(b) of SEBI (Listing Obligations The information in respect of employees of the Company
and Disclosure Requirements) Regulations, 2015. The pursuant to Rule 5(2) and 5(3) of the Companies
same are also displayed on the website of the Company (Appointment and Remuneration of Managerial Personnel)
http://investors.larsentoubro.com/Listing-Compliance.aspx. Rules, 2014, as amended from time to time, is provided
The Independent Directors have complied with the Code in Annexure ‘G’ forming part of this report. In terms of
for Independent Directors prescribed in Schedule IV to the section 136(1) of the Companies Act, 2013 and the rules
Companies Act, 2013. made thereunder, the Report and Accounts are being sent
to the Shareholders excluding the aforesaid Annexure. Any
The Independent Directors of the Company have registered
Shareholder interested in obtaining a copy of the same may
themselves with the data bank maintained by Indian
write to the Company Secretary at the Registered Office
Institute of Corporate Affairs (IICA). In terms of section
of the Company. None of the employees listed in the said
150 of the Companies Act, 2013 read with Rule 6(4)
Annexure is related to any Director of the Company.
of the Companies (Appointment and Qualification of
Directors) Rules, 2014, all Independent Directors, except DIRECTORS’ RESPONSIBILITY STATEMENT:
Mr. Pramit Jhaveri, are exempted from undertaking the
The Board of Directors of the Company confirms:
online proficiency self-assessment test conducted by IICA.
Mr. Pramit Jhaveri shall complete the online proficiency a) In the preparation of Annual Accounts, the applicable
self-assessment test within the prescribed timelines. accounting standards have been followed along with
proper explanation relating to material departures;
PERFORMANCE EVALUATION:
b) The Directors have selected such accounting policies
The Nomination and Remuneration Committee and the
and applied them consistently and made judgements
Board have laid down the manner in which formal annual
and estimates that are reasonable and prudent so as to
evaluation of the performance of the Board, Committees,
give a true and fair view of the state of affairs of the
Individual Directors, CEO & MD and the Chairman has to Company at the end of the financial year and of the
be made. All Directors responded through a structured profit of the Company for that period;
questionnaire giving feedback about the performance of
the Board, its Committees, Individual Directors, CEO & MD c) The Directors have taken proper and sufficient care
and the Chairman. for the maintenance of adequate accounting records
in accordance with the provisions of the Companies
For the year under review, the questionnaire was updated Act, 2013 for safeguarding the assets of the Company
suitably based on the comments and suggestions received and for preventing and detecting fraud and other
from Independent Directors. As in the previous years, an irregularities;
external consultant was engaged to receive the responses
d) The Directors have prepared the Annual Accounts on a
of the Directors and consolidate/ analyze the responses.
going concern basis;
The same external consultant’s IT platform was used from
initiation and till conclusion of the entire board evaluation e) The Directors have laid down an adequate system
process. This ensured that the process was transparent and of Internal Financial Controls to be followed by the
independent of involvement of the Management or the Company and such Internal Financial Controls are
Company’s IT system. This has enabled unbiased feedback. adequate and operating efficiently;

The Board Performance Evaluation inputs, including f) The Directors have devised proper systems to ensure
areas of improvement for the Directors, Board processes compliance with the provisions of all applicable laws
and related issues for enhanced Board effectiveness and that such systems were adequate and were
were discussed in the meetings of the Nomination and operating effectively.
Remuneration Committee and the Board of Directors held ADEQUACY OF INTERNAL FINANCIAL CONTROLS:
on May 12, 2022.
The Company has designed and implemented a process
DISCLOSURE OF REMUNERATION: driven framework for Internal Financial Controls (“IFC”)
The details of remuneration as required to be disclosed within the meaning of the explanation to section 134(5)(e)
under the Companies Act, 2013 and the rules made of the Companies Act, 2013. For the year ended 31st
thereunder, are given in Annexure ‘D’ forming part of this March 2022, the Board is of the opinion that the Company
Board report. has sound IFC commensurate with the nature and size
of its business operations and operating effectively and

284
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

no material weakness exists. The Company has a process co-ordination with the RTA to locate the shareholders who
in place to continuously monitor the same and identify have not claimed their dues.
gaps, if any, and implement new and/or improved controls
Despite these efforts, an amount of R 9,12,62,638 which
wherever the effect of such gaps would have a material
was due and payable and remained unclaimed and unpaid
effect on the Company’s operations.
for a period of seven years, was transferred to Investor
DEPOSITORY SYSTEM: Education and Protection Fund (IEPF) as provided in section
As the members are aware, the Company’s shares are 125 of the Companies Act, 2013 and the rules made
compulsorily tradable in electronic form. As on 31st March thereunder.
2022, 98.89% of the Company’s total paid up capital Cumulatively, the amount transferred to the said fund was
representing 138,93,93,268 shares are in dematerialized R 46,79,35,382 as on 31st March 2022.
form.
In accordance with the provisions of the section 124(6) of
Pursuant to amendments in SEBI (Listing Obligations and the Companies Act, 2013 and Rule 6(3)(a) of the Investor
Disclosure Requirements) Regulations, 2015, with effect Education and Protection Fund Authority (Accounting,
from January 24, 2022, requests for effecting transfer of Audit, Transfer and Refund) Rules, 2016 (‘IEPF Rules’), the
securities in physical form, shall not be processed by the Company has transferred 3,17,463 equity shares of R 2
Company and all requests for transmission, transposition, each (0.02% of total number of shares) held by 1,530
issue of duplicate share certificate, claim from unclaimed shareholders (0.10% of total shareholders) to IEPF. The said
suspense account, renewal/exchange of securities shares correspond to the dividend which had remained
certificate, endorsement, sub-division/split of securities unclaimed for a period of seven consecutive years from
certificate and consolidation of securities certificates/folios the financial year 2013-14. Subsequent to the transfer, the
need to be processed only in dematerialized form. In such concerned shareholders can claim the said shares along
cases the Company will issue a letter of confirmation, with the dividend(s) by making an application to IEPF
which needs to be submitted to Depository Participant(s) Authority in accordance with the procedure available on
to get credit of the securities in dematerialized form. www.iepf.gov.in and on submission of such documents as
Shareholders desirous of availing these services are prescribed under the IEPF Rules.
requested to refer to the detailed procedure for availing
these services provided on the website of the Company at The Company sends specific advance communication to
https://investors.larsentoubro.com/shareholder-services.aspx. the concerned shareholders at their address registered with
the Company and also publishes notice in newspapers
In view of the numerous advantages offered by the providing the details of the shares due for transfer to
Depository system as well as to avoid frauds, members enable them to take appropriate action. All corporate
holding shares in physical form are advised to avail of the benefits accruing on such shares viz. bonus shares, etc.
facility of dematerialization from either of the Depositories. including dividend except rights shares shall be credited to
In adherence to SEBI’s circular to enhance the due-diligence IEPF.
for dematerialization of the physical shares, the Company CORPORATE SOCIAL RESPONSIBILITY:
has provided the static database of the shareholders
The Corporate Social Responsibility (CSR) Committee
holding shares in physical form to the depositories which
comprises of Mr. M. M. Chitale, Mr. R. Shankar Raman and
would augment the integrity of its existing systems and
Mr. D. K. Sen as the Members. Mr. Chitale is the Chairman
enable the depositories to validate any dematerialization
of the Committee.
request.
The CSR policy framework and Annual Action Plan
TRANSFER TO INVESTOR EDUCATION AND
for FY 2023 is available on the Company’s website at
PROTECTION FUND:
https://investors.larsentoubro.com/corporate-governance.
The Company has been regularly sending communications aspx.
to members whose dividends are unclaimed requesting
them to provide/update bank details with Registrar and A brief note regarding the Company’s initiatives with
Transfer Agents (RTA)/Company, so that dividends paid respect to CSR is given in Annexure ‘B’ - Report on
by the Company are credited to the investor’s account Corporate Governance forming part of this Board Report.
on time. Efforts are also made by the Company in Please refer to pages 304 to 306 of this Annual Report.

285
Integrated Annual Report 2021-22 Board Report

The disclosures required to be given under section 135 of sexual harassment and upholding the dignity of
of the Companies Act, 2013 read with Rule 8(1) of the employees. Specific programs have been created on
Companies (Corporate Social Responsibility Policy) Rules, the digital platform to sensitize employees to uphold
2014 are given in Annexure ‘C’ forming part of this Board the dignity of their colleagues and prevention of sexual
Report. harassment. During FY 2022, about 11,100 employees
have undergone training through the programs/ workshops
The Chief Financial Officer of the Company has certified
including the awareness sessions held on digital platform.
that CSR funds so disbursed for the projects have been
utilized for the purposes and in the manner as approved by There were 2 complaints received during the FY 2022. Both
the Board. the complaints were redressed as per the provisions of the
Sexual Harassment of Women at Workplace (Prevention,
COMPLIANCE WITH SECRETARIAL STANDARDS ON
BOARD AND GENERAL MEETINGS: Prohibition and Redressal) Act, 2013 and Rules, 2013.

The Company has complied with Secretarial Standards OTHER DISCLOSURES:

issued by the Institute of Company Secretaries of India on zz ESOP Disclosures: There has been no change in the
Board Meetings and General Meetings. Employee Stock Option Schemes (ESOP schemes)
during the current financial year.
PROTECTION OF WOMEN AT WORKPLACE:
The disclosure relating to ESOPs required to be
The Company believes that every employee should have
made under the provisions of the Companies
the opportunity to work in an environment free from any
Act, 2013 and the rules made thereunder and
conduct which can be considered as Sexual Harassment.
the Securities and Exchange Board of India
The Company is committed to treating every employee (Share Based Employee Benefit and Sweat
with dignity and respect. The Company has formulated a Equity) Regulations, 2021 (“SBEB Regulations”)
policy on ‘Protection of Women’s Rights at Workplace’ as is provided on the website of the Company
https://investors.larsentoubro.com/Listing-Compliance.aspx.
per the provisions of the Sexual Harassment of Women
at Workplace (Prevention, Prohibition and Redressal) Act, A certificate obtained from the Secretarial Auditors,
2013 and Rules, 2013. The policy is applicable to all L&T confirming that the ESOP Schemes of the Company
establishments located in India. The policy has been widely are in compliance with the SBEB Regulations and that
disseminated. The Company has constituted Internal the Company has complied with the provisions of the
Complaints Committees to ensure implementation and Companies Act, 2013 and the SBEB Regulations is also
compliance with the provisions of the aforesaid Act and the provided in Annexure ‘B’ forming part of this Report.
Rules. zz Corporate Governance: Pursuant to Regulation
34 of the SEBI (Listing Obligations and Disclosure
This Policy encompasses the following objectives:
Requirements) Regulations, 2015, a Report on
zz To define Sexual Harassment; Corporate Governance and a certificate obtained from
the Statutory Auditors confirming compliance with
zz To lay down the guidelines for reporting acts of Sexual
Corporate Governance requirements provided in the
Harassment at the workplace; and
aforesaid Regulations, are provided in Annexure ‘B’
zz To provide the procedure for the resolution and forming part of this Report.
redressal of complaints of Sexual Harassment.
zz Business Responsibility and Sustainability
A detailed procedure for making a Complaint, initiating an Reporting: As per Regulation 34 of the SEBI (Listing
enquiry, redressal process and preparation of report within Obligations and Disclosure Requirements) Regulations,
a stipulated timeline is laid out in the Policy document. 2015, a separate section on Business Responsibility
The Policy also covers Disciplinary Action for Sexual and Sustainability Reporting forms a part of this
Annual Report (refer pages 210 to 257).
Harassment. The Policy is uploaded on the Company’s
website at https://www.larsentoubro.com/corporate/about- zz Integrated Reporting: The Company is complying
lt-group/corporate-policies/ . with the applicable requirements of the Integrated
Reporting Framework. The Integrated Report tracks
Training programs and workshops for employees are the sustainability performance of the organization and
organised throughout the year. The orientation programs its interconnectedness with the financial performance,
for new recruits include awareness sessions on prevention

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showcasing how the Company is adding value to its or tribunals impacting the going concern status and the
stakeholders. The Integrated Report forms a part of Company’s operations in future.
this Annual report.
CONSOLIDATED FINANCIAL STATEMENTS:
zz Annual Return: The Annual Return of the Company
Your Directors are pleased to attach the Consolidated
for the FY 2022 is available on our website
Financial Statements pursuant to section 129(3) of
https://investors.larsentoubro.com/Listing-Compliance.aspx.
the Companies Act, 2013 and Regulation 34 of the
zz Statutory Compliance: The Company complies with SEBI (Listing Obligations and Disclosure Requirements)
all applicable laws and regulations, pays applicable Regulations, 2015, prepared in accordance with the
taxes on time, ensures statutory CSR spend and provisions of the Companies Act and the Indian Accounting
initiates sustainable activities. Standards (Ind AS).
zz MSME: The Company has registered itself on Trade AUDIT REPORT:
Receivables Discounting System platform (TReDS)
through the service providers Receivables Exchange The Auditors’ report to the Shareholders does not contain
of India Limited. The Company complies with the any qualification, observation or adverse comment.
requirement of submitting a half yearly return to the SECRETARIAL AUDIT REPORT:
Ministry of Corporate Affairs within the prescribed
timelines. The Secretarial Audit Report issued by M/s. S. N.
Ananthasubramanian & Co., Company Secretaries is
zz IBC: There is no Corporate Insolvency Resolution attached as Annexure ‘E’ forming part of this Board
Process initiated under the Insolvency and Bankruptcy Report. The Secretarial Audit Report does not contain any
Code, 2016 (IBC).
qualification, reservation or adverse remark.
zz Reporting of fraud: The Auditors of the Company
AUDITORS:
have not reported any instances of fraud committed
against the Company by its officers or employees as M/s. Deloitte Haskins & Sells LLP were re-appointed as
specified under section 143(12) of the Companies Act, Statutory Auditors for a period of 5 continuous years
2013. from the conclusion of 75th Annual General Meeting till
the conclusion of 80th Annual General Meeting of the
zz Remuneration received by Whole-time Director
Company.
from subsidiary company: Mr. D. K. Sen, Whole-
time Director of the Company is also the Managing The Auditors have confirmed that they have subjected
Director of L&T Infrastructure Development Projects themselves to the peer review process of Institute of
Limited (L&T IDPL), a subsidiary of the Company. Chartered Accountants of India (ICAI) and hold valid
During FY 2022, part of the remuneration paid to certificate issued by the Peer Review Board of ICAI.
Mr. Sen was charged to L&T IDPL. Accordingly, the
Company has recovered an amount of R 1,81,18,283 The Audit Committee reviews the independence and
from L&T IDPL for remuneration paid to Mr. Sen. objectivity of the Auditors and the effectiveness of the
VIGIL MECHANISM: Audit process.

The Company has a Whistle-blower Policy in place The Auditors attend the Annual General Meeting of the
since 2004. The Policy has been modified to meet the Company. Also see page 308 forming part of Annexure ‘B’
requirements of Vigil Mechanism under the Companies of this Board Report.
Act, 2013. The Whistle Blower Policy is available on COST AUDITORS:
the Company’s website https://www.larsentoubro.com/
The provisions of section 148(1) of the Companies Act,
corporate/about-lt-group/corporate-policies/.
2013 are applicable to the Company and accordingly
Also see pages 307 and 308 forming part of Annexure ‘B’ the Company has maintained cost accounts and records
of this Board Report. in respect of the applicable products for the year ended
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS March 31, 2022.
PASSED BY THE REGULATORS OR COURTS OR Pursuant to the provisions of section 148 of the Companies
TRIBUNALS: Act, 2013 and as per the Companies (Cost Records and
During the year under review, there were no material Audit) Rules, 2014 and amendments thereof, the Board,
and significant orders passed by the regulators or courts on the recommendation of the Audit Committee, at

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its meeting held on 12th May 2022, has approved the Banks, Central and State Government authorities,
appointment of M/s R. Nanabhoy & Co., Cost Accountants, Regulatory Authorities, Stock Exchanges and all other
as the Cost Auditors for the Company for the financial year stakeholders for their continued co-operation and support
ending 31st March 2023 at a remuneration of R 17 lakhs to the Company. Your Directors also wish to record their
plus taxes and out of pocket expenses. appreciation for the continued co-operation and support
received from the Joint Venture Partners/Associates.
A proposal for ratification of remuneration of the Cost
Auditor for FY 2023 is placed before the Shareholders. For and on behalf of the Board
The Report of the Cost Auditors for the financial year
ended 31st March 2022 is under finalization and shall A.M. NAIK
be filed with the Ministry of Corporate Affairs within the Group Chairman
(DIN: 00001514)
prescribed period.
Date : 12th May 2022
ACKNOWLEDGEMENT:
Place : Mumbai
The Directors take this opportunity to thank the Customers,
Supply Chain Partners, Employees, Financial Institutions,

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Annexure ‘A’ to the Board Report

Information as required to be given under (ii) Steps taken by the Company for utilizing
section 134(3)(m) read with rule 8(3) of the Companies alternate sources of energy:
(Accounts) Rules, 2014. zz Usage of Green Hydrogen as an alternative to
[A] CONSERVATION OF ENERGY: natural gas in refineries and fertilizers.
(i) Steps taken or impact on conservation of energy: zz Usage of PNG, cleaner energy source, at DIAL
zz Retrofitting diesel compressor to electrical based project to power the Hot Mix Plants.
compressor. zz Solar Power Plant have been installed for
zz Usage of LED fixtures in place of CFL and FTL generation of 1747 KW solar electricity that is
Fixtures and Installation of daytime timers. utilized to power batching plants and project
camps.
zz Installation of Variable Voltage Frequency Drive
(VVFDs) in gantry cranes functional motors to zz Alternate usage of M-sand instead of Natural
reduce power consumption. Sand at all project sites has helped in conserving
the natural resources.
zz Usage of Inverter based welding machines instead
of generator-based welding machines. zz Alternate curing solution has been implemented
for all the vertical structures for conserving water.
zz Improved efficiency through implementation of
Flux-cored Arc Welding-Gas Shielded (FCAW-GS) zz Installed carbon offsetting program through
for automation and saving energy. production of solar and wind power which
compensated for non-renewable energy
zz Replacing existing Split AC units with inverter
consumption and in-turn reduction in carbon
based energy efficient units.
footprint.
zz Replacing existing Pumps (Water, Sewage and
(iii) Capital investment on energy conservation
HVAC) with energy efficient pumps.
equipments:
zz Power generation through Solar Roof top PV zz Usage of Thyristor controlled welding machines
installation and utilization of solar lights for for fabrication and energy saved 176,010 kwh.
lighting around compound wall in factories.
zz Existing metal halide lamps in high mast replaced
zz Utilization of Chiller for Heating Ventilation with 300W LED fittings.
and Air Conditioning (HVAC) System – Campus
Facility Management Division (FMD) initiated and zz Replaced existing submersible pumps with
controlled the chiller running hours for HVAC hydropnuematic pumps.
during holidays and extended working hours. zz Installed VFD panel in place of ELGi compressor.
zz Digital tools used to track, trace and improve the zz Replaced HVAC pump with efficient monoblock
working of systems and to achieve the Company’s pump.
ESG goals of Carbon and Water Neutrality.
zz Installed express feeder uninterrupted power
zz Adoption of Integrated Vehicle Management supply at AIT plant.
System has led to fuel saving.
The measures taken have resulted in savings in cost of
zz Installation of transparent sheets and turbo vents
production, power consumption and processing time at all
in Light Fabrication Shop in place of overhead
locations.
lights and exhaust fans to provide sufficient
illumination and ventilation. [B] TECHNOLOGY ABSORPTION:

zz Installation of programmable timer for Air (i) Efforts made towards technology absorption:
Handling Unit (AHU) at dust free chamber. zz Online barcode reading system installed to
automatically select recipes for GT Lube Spraying.
zz Usage of light pipes, transparent sheets and
noorikool daylighting systems in shop floors for zz Establishment of in-house expertise in areas such
effective utilization of natural light for ventilation. as Cathodic Protection (CP) system design and
implementation.

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zz Adoption of advanced pneumatic valves which zz Designed P&M IoT and Workmen Management
can control flow and pressure for lube spraying system to improve the productivity and minimise
operation to automatically control spray width, idleness.
flow and atomization.
zz Introduced Robotic Process Automation (RPA)
zz Partnered with IIT-B to jointly pursue research to automate the repeated and long lead time in
and development work in the Green Hydrogen Design, IT, Finance and Subcontract processes.
value chain and development of next generation zz Implemented Infor Operating Services (IOS) in
technologies. Enterprise Resource Planning.
zz Memorandum of Understanding entered with a zz Deployed digital library module with elastic search
Technology partner for electrolyser manufacturing. for capturing technical and commercial details of
zz Development of 2nd Generation PCR HTCP and various equipment.
3rd Generation PCR HTCP with Hollow Squeeze zz Developed skid loading optimization for
Cylinder and Ribbed construction. monitoring the progress of Hull Fabrication and
zz Developed 56” MTCP with rope loader, parallel Hull Block Turn over time.
unloader and front bead lift arm developed for zz Developed calibration module, chatbot based
Petlas. helpdesk portal, Information Right Management
zz Introduction of Higher striping force BCM for (IRM) solution.
65.5” MTCP CEAT. zz Deployed portable VR facility at the desktop level
for carrying out regular review of 3D models at
zz Development of OTR Cured tyre Handling system
working level.
with Trimming and Inspection Machine.
zz Deployed pull off adhesive tester, proactive
zz Implemented Antivibration pad in power press
inspection module and stud wielding application.
machine to reduce the vibration and noise thereby
reducing noise pollution. zz Developed and implemented special purpose
machine for shell T-frame twin head SAW and
zz Developed SMS alert (Digital initiative) for web flange twin head Gas Metal Arc Welding.
monitoring the pressure at fire hydrant system.
zz Developed and implemented automated load
zz Adopted HCL wet scrubber arrangement for fresh testing system for Sarvatra bridge.
acid storage tank to remove acid fumes in the
atmosphere. zz Designed and developed universal 3D base plate
and modular clamping arrangement.
zz Introduction of LiDAR based Pre-bid engineering,
survey and integration with BIM, laying of Bentley zz Developed Satellite Launch Vehicle ToT absorption.
Rail Track and development of Open Rail Designer zz Development of metal additive, advanced
have improved efficiency. composites and other Aerospace manufacturing
technologies.
zz Adoption of concrete mix design with GGBS
(Ground Granulated Blast-furnace Slag) and Flyash zz Development of Unmanned Surface Vessel
upto the maximum limit and thereby reducing the for ISR, ASW and MCM operations, close-in
cement consumption in order to reduce further weapon system, fire control radar for air defence
carbon emission. application.
zz Indigenously designed the FSLM equipment of zz Development of multi-hierarchy command and
1100MT Capacity. control systems for integrated engagement across
forces.
zz Designed ConPro for enabling end-to-end tracking
of concrete supply chain across project sites by (ii) Benefits derived like product improvement,
using QR codes. cost reduction, product development or import
zz Designed RebarPro that provides end-to-end substitution:
tracking of rebar from store to site after zz Optimum selection, verification and
fabrication which enables minimum wastage, characterization of materials for critical
saves time and accelerates process efficiency. applications.

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zz Implemented suitable preservation/corrosion zz Cost saving by eliminating use of welded

protection techniques to achieve successful longer attachments and non-value added activities like
life and adequate performance. grinding, touchup, etc.
zz Establishment of in-house capability for (iii) Information regarding technology imported
specialized engineering analysis, such as modeling during the last 3 years:
and process simulation, Computational Fluid
Status of absorption
Dynamics (CFD), transient thermal analysis, S. Technology Year of
and reasons for non-
Radiation and dispersion analysis and advanced No. Imported Import
absorption, if any
stress analysis by Finite Element Method (FEM) for
a) Verse Equipment 2019-20 Fully absorbed
achieving self-sufficiency.
b) Electrical Storage 2019-20 Fully absorbed
zz Advanced troubleshooting of critical process
System
plant equipment through analysis of degradation
mechanisms such as, Methanol Stress Corrosion c) Direct Current (DC) 2019-20 Fully absorbed
Cracking, Hydrogen Embrittlement, Chloride Traction System
Stress Corrosion Cracking, Sulphuric Acid Design
Corrosion and Microbial Corrosion attack.
d) Power over Ethernet 2020-21 Fully absorbed
zz Robotic Process Automation has helped increase (PoE) based devices
manpower productivity and reduction in man
e) Full Span 2021-22 Fully absorbed
hours spent across various business activities.
Construction
zz Digital library module has helped reduce lead time Methodology
during Request for Proposal/bid submission.
f) Straddle carrier 2021-22 Fully absorbed
zz Information Right Management solution has
helped secure documents and provide data centric (iv) Expenditure incurred on Research and Development:
security across various stages of document life v crore
cycle.
2021-22
zz Stud wielding application has helped achieve Capital 4.26
higher productivity for block alignment and
erection joints, electrical earthing points, cable Recurring 83.73
trays and foundation bolts. It has also helped Total 87.99
reduce overall wielding time and reduce heat Total R&D expenditure as a percentage of total 0.08%
input to avoid damage to internal structures and turnover
equipment.
[C] FOREIGN EXCHANGE EARNINGS AND OUTGO:
zz Deployment of pull off adhesive tester has
helped setup in-house quality check to establish v crore
soundness of paint coating system without 2021-22
depending on any external agency.
Foreign Exchange earned 11,721.13
zz Deployment of portable VR facility has helped
minimize design errors and enhancing the Foreign Exchange saved / deemed exports 85.47
ergonomics of design.
Total 11,806.60
zz Quick clamping of assemblies led to clamping
time reduction. Foreign Exchange used 10,383.99

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Integrated Annual Report 2021-22 Annexure to the Board Report

Annexure ‘B’ to the Board Report

A. CORPORATE GOVERNANCE
Corporate Governance is a set of principles, processes and systems which govern a company. The elements of Corporate
Governance are independence, transparency, accountability, responsibility, compliance, ethics, values and trust.
Corporate Governance enables an organization to perform efficiently and ethically, generate long term wealth and create
value for all its stakeholders.
The Company believes that sound Corporate Governance is critical for enhancing and retaining stakeholder trust and
always seeks to ensure that its performance goals are met accordingly. The Company has established systems and
procedures to ensure that its Board of Directors is well informed and well equipped to fulfill its overall responsibilities and
to provide management with the strategic direction needed to create long term shareholders value. The Company had
adopted many ethical and transparent governance practices even before they were mandated by law. The Company has
always worked towards building trust with shareholders, employees, customers, suppliers and other stakeholders based
on the principles of good Corporate Governance.
B. COMPANY’S CORPORATE GOVERNANCE PHILOSOPHY
The Company’s essential character revolves around values based on transparency, integrity, professionalism and
accountability. At the highest level, the Company continuously endeavors to improve upon these aspects on an ongoing
basis and adopts innovative approaches for leveraging resources, converting opportunities into achievements through
proper empowerment and motivation, fostering a healthy growth and development of human resources to take the
Company forward.
C. THE GOVERNANCE STRUCTURE
The Company has four tiers of Corporate Governance structure, viz.:
(i) Strategic Supervision – by the Board of Directors comprising the Executive, Non-Executive and Independent
Directors.
Executive Management – by the Executive Committee (ECom) comprising of the Chief Executive Officer and
(ii)
Managing Director, all Executive Directors and a few senior leaders.
Strategy and Operational Management – by the Independent Company Boards of each Independent
(iii)
Company (IC) (not legal entities) comprising of representatives from the Company’s Board, Senior Executives from the
IC and independent members.
(iv) Operational Management – by the Business Unit (BU) Heads.
The four-tier governance structure, besides ensuring greater management accountability and credibility, facilitates
increased autonomy to the businesses, performance discipline and development of business leaders, leading to increased
public confidence.
D. ROLES OF VARIOUS CONSTITUENTS OF CORPORATE GOVERNANCE IN THE COMPANY
a. Board of Directors (the Board):
The Directors of the Company are in a fiduciary position, empowered to oversee the management functions with a
view to ensuring its effectiveness and enhancement of shareholder value. The Board also provides strategic direction,
reviews and approves management’s business objectives, plans and oversees risk management.
b. The Group Chairman (GC):
The GC is the Chairman of the Board. His primary role is to provide leadership to the Board and guidance and
mentorship to the CEO & MD and Executive Directors for realizing the approved strategic plan and business
objectives. He presides over the Board and the Shareholders’ meetings.
c. Executive Committee (ECom):
The ECom provides a companywide operations review and plays a key role in strengthening linkages between the ICs
and the Company’s Board, as well as in rapidly realizing inter-IC synergies. In addition, the ECom deliberates upon
strategic and tactical issues that cut across ICs and Corporate. The agenda includes:
zz Review of major order prospects (Standalone/ Group) / “Integrated offerings”

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zz Review of consolidated financials including working capital, cash flow, capital structure, etc.
zz Review of Monthly / Quarterly / Yearly financial performance
zz Review of Revenue, Capital & Manpower Budget and performance thereagainst
zz Review and discuss strategic issues which impact the entire organization, viz.,
i. International business expansion
ii. IC synergies
iii. HR Update/ Talent Management / Service contract extensions for senior management personnel / Leadership
development and succession planning
iv. Digitalization and Analytics initiatives
zz Approval of common policies
zz Strategic plans and business portfolio reviews
zz Sharing of best practices, etc.
d. The Chief Executive Officer and Managing Director (CEO & MD):
The CEO & MD is fully accountable to the Board for the Company’s business development, operational excellence,
business results, leadership development and other related responsibilities.
e. Executive Directors (ED) / Senior Management Personnel:
The Executive Directors, as members of the Board, along with the Senior Management Personnel in the Executive
Committee, contribute to the strategic management of the Company’s businesses within Board approved direction
and framework. They assume overall responsibility for strategic management of business and corporate functions
including its governance processes and top management effectiveness.
f. Non-Executive Directors (NED) / Independent Directors:
The Non-Executive Directors / Independent Directors play a critical role in enhancing balance to the Board processes
with their independent judgment on issues of strategy, performance, resources, standards of conduct, safety, etc.,
besides providing the Board with valuable inputs.
g. Independent Company Board (IC Board):
As a part of Lakshya 2016, the Company had decided to have Hybrid Holdco Structure. Accordingly, a number
of ‘Independent Companies’ (ICs) were created, each with their own quasi-board comprising 2 to 3 Independent
Members akin to Independent Directors. During the process of evolving Lakshya 2026, the structure was reviewed
and it was decided to continue with the IC structure.
E. BOARD OF DIRECTORS
a. Composition of the Board:
The Company’s policy is to have an appropriate mix of Executive, Non-Executive and Independent Directors. As
on 31st March 2022, the Board comprised the Group Chairman, the Chief Executive Officer & Managing Director,
7 Executive Directors, 1 Non-Executive Director (representing a financial institution) and 7 Independent Directors,
including one Independent Woman Director. The composition of the Board, as on 31st March 2022, is in conformity
with the provisions of the Companies Act, 2013 and Regulation 17 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (‘SEBI LODR Regulations’).
b. Meetings of the Board:
The Meetings of the Board are generally held at the Registered Office of the Company at L&T House, Ballard Estate,
Mumbai 400 001 and whenever necessary, in locations, where the Company operates. However, in view of the
COVID 19 pandemic and the restrictions on movement imposed by the government authorities, during the initial
part of FY 2022, Board Meetings were held through video conferencing. The Meetings of the Board have been held
at regular intervals with a time gap of not more than 120 days between two consecutive Meetings. During the year
under review, 8 meetings were held on 14th May 2021, 26th July 2021, 7th September 2021, 27th October 2021,
28th January 2022, 22nd March 2022, 23rd March 2022 and 24th March 2022.

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The Independent Directors met on 8th May 2021, 22nd May 2021 and 20th March 2022 to discuss, inter alia,
the performance evaluation of the Board as a whole and assess the quality, quantity and timeliness of flow of
information between the management and the Board of Directors that is necessary for the Board to effectively and
reasonably perform their duties.
The Company Secretary prepares the agenda and the explanatory notes, in consultation with the Group Chairman /
Chief Executive Officer & Managing Director and circulates the same in advance to the Directors. Every Director
is free to suggest inclusion of items on the agenda. The Board meets at least once every quarter, inter alia, to
review the quarterly results. Additional meetings are held, whenever necessary. The meetings were conducted
physically/through video conference during the year. Presentations are made on business operations to the Board by
Independent Companies / Business Units. Senior management personnel are invited to provide additional inputs for
the items being discussed by the Board of Directors as and when necessary. The respective Chairperson of the Board
Committees apprise the Board Members of the important issues and discussions in the Committee Meetings. Minutes
of Committee meetings are also circulated to the Board.
The Minutes of the proceedings of the Meetings of the Board of Directors are noted and the draft minutes are
circulated amongst the Members of the Board for their perusal. Comments, if any, received from the Directors are
also incorporated in the Minutes, in consultation with the Chairman. The Minutes are approved and entered in the
Minutes book within 30 days of the Board meeting. Thereafter, the Minutes are signed and dated by the Chairman
of the Board at the next meeting.
The following is the composition of the Board of Directors as on 31st March 2022. Their attendance at the Board
Meetings during the year and at the last Annual General Meeting is as under:

No. of Board No. of Board

Attendance at last
Name of Director Category Meetings held Meetings
AGM
during the year attended
Mr. A. M. Naik GC 8 5 Yes
Mr. S. N. Subrahmanyan CEO & MD 8 7 Yes
Mr. R. Shankar Raman ED 8 8 Yes
Mr. D. K. Sen ED 8 8 Yes
Mr. M. V. Satish ED 8 8 Yes
Mr. J. D. Patil ED 8 8 Yes
Mr. Subramanian Sarma ED 8 8 Yes
Mr. S. V. Desai ED 8 8 Yes
Mr. T. Madhava Das ED 8 8 Yes
Mr. M. M. Chitale ID 8 7 Yes
Mr. M. Damodaran ID 8 8 Yes
Mr. Vikram Singh Mehta ID 8 8 Yes
Mr. Adil Zainulbhai ID 8 8 Yes
Mr. Sanjeev Aga ID 8 8 Yes
Mr. Narayanan Kumar ID 8 8 Yes
Mr. Hemant Bhargava (Note 1) NED 8 8 Yes
Mrs. Preetha Reddy ID 8 8 Yes
Meetings held during the year are expressed as number of meetings eligible to attend.
Note 1: Representing equity interest of Life Insurance Corporation of India.
GC – Group Chairman CEO & MD – Chief Executive Officer & Managing Director
ED – Executive Director NED – Non-Executive Director
ID – Independent Director

1. None of the above Directors are related inter-se.

2. None of the Directors hold the office of Director in more than the permissible number of companies under the
Companies Act, 2013 or Regulation 17A of the SEBI LODR Regulations.

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As on 31st March 2022, the number of other directorships and the number of positions held as Member/Chairperson
of Committees of the Board of Directors along with the names of the listed entities (whose equity shares are listed)
wherein the Director holds directorships are as follows:

No. of other No. of Names of other Listed

No. of Committee
Name of Director company Committee entities where he holds Category of Directorship
Chairmanship
Directorships Membership Directorship
Mr. A. M. Naik 5 0 0 Larsen & Toubro Infotech Non-Executive Chairman
Limited
L&T Technology Services Non-Executive Chairman
Limited
Mindtree Limited Non-Executive Chairman
Mr. S. N. Subrahmanyan 6 0 0 Larsen & Toubro Infotech Non- Executive
Limited Vice- Chairman
L&T Technology Services Non- Executive
Limited Vice- Chairman
Mindtree Limited Non- Executive
Vice-Chairman
L&T Finance Holdings Limited Non-Executive Chairman
Mr. R. Shankar Raman 8 6 0 Larsen & Toubro Infotech Non-Executive Director
Limited
L&T Finance Holdings Limited Non-Executive Director
Mindtree Limited Non- Executive Director
Mr. D. K. Sen 7 0 0 Nil
Mr. M. V. Satish 1 0 0 Nil
Mr. J. D. Patil 1 1 0 Nil
Mr. Subramanian Sarma 2 0 0 Nil
Mr. S. V. Desai 3 0 0 Nil
Mr. T. Madhava Das 0 0 0 Nil
Mr. M. M. Chitale 5 4 2 Atul Limited Independent Director
Macrotech Developers Independent Director
Limited
Bhageria Industries Limited Independent Director
Mr. M. Damodaran 6 3 2 Interglobe Aviation Limited Chairman and
Independent Director
Hero Motocorp Limited Independent Director
Biocon Limited Independent Director
Mr. Vikram Singh Mehta 6 5 1 Colgate-Palmolive (India) Independent Director
Limited
HT Media Limited Independent Director
Apollo Tyres Limited Independent Director
Mahindra & Mahindra Independent Director
Limited
Jubilant Foodworks Limited Independent Director
Mr. Adil Zainulbhai 7 3 5 Reliance Industries Limited Independent Director
Network18 Media & Chairman and
Investment Limited Independent Director
Cipla Limited Independent Director
TV18 Broadcast Limited Chairman and
Independent Director
Mr. Sanjeev Aga 4 3 2 Larsen & Toubro Infotech Independent Director
Limited
UFO Moviez India Limited Chairman and
Independent Director
Pidilite Industries Limited Independent Director
Mahindra Holidays & Resorts Independent Director
India Limited

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No. of other No. of Names of other Listed

No. of Committee
Name of Director company Committee entities where he holds Category of Directorship
Chairmanship
Directorships Membership Directorship
Mr. Narayanan Kumar 7 3 4 L&T Technology Services Independent Director
Limited
Mphasis Limited Independent Director
Take Solutions Limited Chairman and
Independent Director
Entertainment Network Independent Director
(India) Limited
Indus Towers Limited Independent Director
Mr. Hemant Bhargava 3 3 0 The Tata Power Company Nominee Director
Limited
UGRO Capital Limited Independent Director
ITC Limited Independent Director
Mrs. Preetha Reddy 9 2 0 Apollo Hospitals Enterprise Whole-time Director
Limited

zz Other Company Directorships includes directorships in all public limited companies and excludes private limited
companies, foreign companies and Section 8 companies.
zz The details of positions held as Member/Chairperson of Committees are disclosed as per Regulation 26 of the
SEBI LODR Regulations which includes only Stakeholders’ Relationship Committee and Audit Committee.
c. Information to the Board:
The Board of Directors are provided information relating to the Company, which inter alia includes -
zz Annual revenue budgets and capital expenditure plans
zz Quarterly results and results of operations of ICs and business segments
zz Financing plans of the Company
zz Minutes of meetings of Board of Directors, Audit Committee, Nomination and Remuneration Committee,
Stakeholders Relationship Committee, Board Risk Management Committee and Corporate Social Responsibility
Committee
zz Details of any joint venture, acquisitions of companies or collaboration agreement or sale of investments,
subsidiaries, assets and quarterly report on fatal or serious accidents or dangerous occurrences
zz Any materially relevant default, if any, in financial obligations to and by the Company or substantial
non-payment for goods sold or services rendered, if any
zz Any issue, which involves possible public or product liability claims of substantial nature, including any Judgment
or Order, if any, which may have strictures on the conduct of the Company
zz Developments in respect of human resources/industrial relations
zz Compliance or Non-compliance of any regulatory, statutory nature or listing requirements and investor service
such as non-payment of dividend, delay in share transfer, etc., if any
d. Post-meeting internal communication system:
The important decisions taken at the Board / Committee meetings are communicated to the concerned
departments / ICs promptly. An Action Taken Report is regularly presented to the Board.

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e. Board Skill Matrix:

The matrix setting out the skills/expertise/competence of the Board of Directors, as identified by the Board of
Directors in the context of the Company’s businesses, is given below:

Experience /
Sr. No Comments
Expertise / Attribute
1 Leadership Ability to envision the future and prescribe a strategic goal for the Company, help the Company to identify possible
road maps, inspire and motivate the strategy, approach, processes and other such key deliverables and mentor the
leadership team to channelize its energy/efforts in appropriate direction. Be a thought leader for the Company and be
a role model in good governance and ethical conduct of business, while encouraging the organization to maximize
shareholder value. Should have had hands on experience of leading an entity at the highest level of management
practices.
2 Industry knowledge Should possess domain knowledge in businesses in which the Company participates viz. Infrastructure, Power, Heavy
and experience Engineering, Defence Engineering, Hydrocarbon, Financial Services, Information Technology and Technology Services.
Must have the ability to leverage the developments in the areas of engineering and technology and other areas as
appropriate for betterment of Company’s business.
3 Experience and Should possess ability to develop professional relationship with the Policy makers and Regulators for contributing to the
Exposure in policy shaping of Government policies in the areas of Company business.
shaping and industry
advocacy
4 Governance Commitment, belief and experience in setting Corporate Governance practices to support the Company’s robust legal
including legal compliance systems and governance policies/practices.
compliance
5 Expertise/Experience Ability to understand financial policies, accounting statements and disclosure practices and contribute to the financial/
in Finance and risk management policies/ practices of the Company across its business lines and geography of operations.
Accounts / Audit /
Risk Management
areas
6 Global Experience / Ability to have access and understand business models of global corporations, relate to the developments with respect
International to leading global corporations and assist the Company to adapt to the local environment, understand the geo political
Exposure dynamics and its relations to the Company’s strategies and business prospects and have a network of contacts in global
corporations and industry worldwide.

The mapping of the Skill Matrix for FY 2022 for all Directors is as follows:

Skill Attribute
Expertise/
Experience and Experience in
Global
Industry Exposure in Governance Finance and
Sr. Experience /
Name of the Director Leadership knowledge and policy shaping including legal Accounts/
No International
experience and industry compliance Audit /Risk
Exposure
advocacy Management
areas
1. Mr. A. M. Naik √ √ √ √ √ √
2. Mr. S. N. Subrahmanyan √ √ √ √ √ √
3. Mr. R. Shankar Raman √ √ √ √ √ X
4. Mr. D. K. Sen √ √ X √ X √
5. Mr. M. V. Satish √ √ X √ X √
6. Mr. J. D. Patil √ √ √ √ X X
7. Mr. Subramanian Sarma √ √ √ X X √
8. Mr. S. V. Desai √ √ X √ X √
9. Mr. T. Madhava Das √ √ X √ X √
10. Mr. M. M. Chitale √ X √ √ √ X
11. Mr. Subodh Bhargava* √ X √ √ X √
12. Mr. M. Damodaran √ X √ √ √ X

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Integrated Annual Report 2021-22 Annexure to the Board Report

Skill Attribute
Expertise/
Experience and Experience in
Global
Industry Exposure in Governance Finance and
Sr. Experience /
Name of the Director Leadership knowledge and policy shaping including legal Accounts/
No International
experience and industry compliance Audit /Risk
Exposure
advocacy Management
areas
13. Mr. Vikram Singh Mehta √ √ √ X X √
14. Mr. Adil Zainulbhai √ X √ √ X √
15. Mr. Sanjeev Aga √ X √ √ √ X
16. Mr. Narayanan Kumar √ √ √ X √ X
17. Mr. Hemant Bhargava √ X √ √ √ X
18. Mrs. Preetha Reddy √ X √ √ X √
* ceased to be a director w.e.f. 29th March 2022.

Note: Absence of any skill does not necessarily mean that the Director does not possess that skill.
F. BOARD COMMITTEES zz Approval of payment to statutory
The Board currently has 5 Committees: 1) Audit auditors for any other services rendered
Committee, 2) Nomination and Remuneration by the statutory auditors.
Committee, 3) Stakeholders’ Relationship Committee, zz Discussion with statutory auditors, before
4) Corporate Social Responsibility Committee and 5) the audit commences, about the nature
Board Risk Management Committee. The terms of and scope of audit as well as post-audit
reference of the Board Committees are in compliance discussion to ascertain any area of
with the provisions of the Companies Act, 2013, concern.
SEBI LODR Regulations and are also reviewed by the
Board from time to time. The Board is responsible for zz Reviewing, with the management, the
constituting, assigning and co-opting the members annual financial statements and the audit
of the Committees. The meetings of each Board report before submission to the Board for
Committee are convened by the Company Secretary approval, with particular reference to:
in consultation with the respective Committee 1. Matters required to be included
Chairperson. The role and composition of these in the Directors’ Responsibility
Committees including the number of meetings held Statement to be included in the
during the financial year and the related attendance Board’s report in terms of sub-
are provided in the subsequent paragraphs. section (5) of Section 134 of the
1) Audit Committee Companies Act, 2013
The Company constituted the Audit Committee in 2. Changes, if any, in accounting
1986, well before it was made mandatory by law. policies and practices and reasons
for the same
i) Terms of reference:
The role of the Audit Committee includes the 3. Major accounting entries involving
following: estimates based on the exercise of
judgment by management
zz Oversight of the Company’s financial
reporting process and the disclosure 4. Significant adjustments made in the
of its financial information to ensure financial statements arising out of
that the financial statement is correct, audit findings
sufficient and credible. 5. Compliance with listing and other
zz Recommending to the Board, the legal requirements relating to
appointment, re-appointment, terms financial statements
of appointment and, if required, the 6. Disclosure of any related party
replacement or removal of the statutory transactions
auditor and the fixation of audit fees.

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Overview Discussion and Analysis Report Reports Statements

7. Qualifications in the draft audit zz Approval of appointment of CFO (i.e.,

report. the whole-time Finance Director or
any other person heading the finance
zz Reviewing, with the management, the
function or discharging that function)
quarterly financial statements before
after assessing the qualifications,
submission to the Board for approval.
experience and background, etc. of the
zz Reviewing, with the management, candidate.
the statement of uses / application of
zz The recommendation for appointment,
funds raised through an issue (public
remuneration and terms of appointment
issue, rights issue, preferential issue,
of cost auditors of the Company.
etc.), the statement of funds utilized
for purposes other than those stated in zz Review and monitor the auditor’s
the offer document/prospectus/notice independence and performance, and
and the report submitted by the agency effectiveness of audit process.
monitoring the utilisation of proceeds
zz Review the management discussion and
of public or rights issue, and making
analysis of financial condition and results
appropriate recommendations to the
of operations.
Board to take up steps in this matter, if
any. zz Approval or any subsequent material
modification of transactions of the
zz Reviewing, with the management,
Company with related parties.
performance of statutory and internal
auditors, and adequacy of the internal zz Reviewing the utilization of loans and/ or
control systems. advances to/investment in the subsidiary
companies exceeding rupees 100 crore or
zz Reviewing the adequacy of internal audit
10% of the asset size of the subsidiary,
function, if any, including the structure
whichever is lower including existing
of the internal audit department, staffing
loans / advances / investments.
and seniority of the official heading the
department, reporting structure coverage zz Valuation of undertakings or assets of
and frequency of internal audit. the Company, wherever it is necessary.
zz Discussion with internal auditors about zz Evaluation of internal financial controls
any significant findings and follow up and risk management systems.
there on.
zz Monitoring the end use of funds raised
zz Reviewing the findings of any internal through public offers and related
investigations by the internal auditors matters.
into matters where there is suspected
zz Carrying out any other function as is
fraud or irregularity or a failure of
mentioned in the terms of reference of
internal control systems of a material
the Audit Committee.
nature and reporting the matter to the
Board. ii) Composition:
zz To look into the reasons for As on 31st March 2022, the Audit Committee
substantial defaults in the payment comprised four Independent Directors.
to the depositors, debenture holders, iii)
Meetings:
shareholders (in case of non-payment of
During the year ended 31st March 2022, 9
declared dividends) and creditors.
meetings of the Audit Committee were held
zz To review the functioning of the Whistle on 21st April 2021, 13th May 2021, 12th July
Blower mechanism. 2021, 24th July 2021, 26th August 2021,
26th October 2021, 23rd November 2021,
27th January 2022 and 1st March 2022.

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Integrated Annual Report 2021-22 Annexure to the Board Report

The attendance of Members at the Meetings a project-oriented Company, CAS emphasizes

was as follows: a risk-based focus areas in project audits.
It encourages its team members to obtain
No. of globally renowned CISA, CIA and CFE
No. of
meetings Certification, etc., which will add strength to
Name Status Meetings
held during the Department. Every year, CAS reviews the
Attended
the year Audit Universe which is an exhaustive list of
Mr. M. M. Chitale Chairman 9 9 businesses, functions, activities and locations
across the Company. The yearly plan, then
Mr. M. Damodaran Member 9 9
details out the scope and coverage of audits
Mr. Sanjeev Aga Member 9 9 proposed for the year and it is ensured that,
Mr. Vikram Singh Member – – on an average, all operations in the Audit
Mehta* Universe gets into an audit coverage, at least
once in 2 years. The CAS team has its offices
Meetings held during the year are expressed as number of at Mumbai and Chennai and all overseas
meetings eligible to attend.
audits are shared between these two teams.
* Inducted as a member of the Committee with effect from
24th March 2022 From time to time, the Company’s systems
of internal controls covering financial,
Majority of the members of the Audit
operational, compliance, IT applications,
Committee are financially literate and have
etc. are also reviewed by external experts.
accounting or related financial management
Presentations are made to the Audit
expertise.
Committee, on the findings of such reviews.
The Chief Executive Officer & Managing
The CAS team of the Company also covers
Director, Whole-time Director & Chief
the internal audit of all ICs and Subsidiary
Financial Officer and Head - Corporate
Companies. An in-depth audit is conducted
Audit Services are permanent invitees to
by the team and the major deviations are
the Meetings of the Audit Committee. The
highlighted and discussed with the concerned
Company Secretary is the Secretary to the
IC and / or subsidiary company Boards and
Committee.
significant observations are placed before
iv)
Internal Audit: the Audit Committee of the Company once
The Company has an internal corporate audit in every Quarter. Some subsidiaries have
team consisting of Chartered Accountants, engaged external firms for conducting
Certified Internal Auditors and Engineers internal audit.
from various disciplines. Over a period, the 2) Nomination and Remuneration Committee
Corporate Audit Services (“CAS”) department (NRC)
has acquired in-depth knowledge about the
The Nomination and Remuneration Committee
Company, its businesses, its systems and
was constituted in 1999 even before it was
procedures, the knowledge of which is now
mandated by law.
institutionalized. The Company’s Internal
Audit function is ISO 9001:2015 certified. The i) Terms of reference:
Head of CAS reports to the Audit Committee. zz Identify persons who are qualified to
The staff of CAS are rotated periodically to become Directors and who may be
have a holistic view of the entire operations appointed in senior management in
and share the findings and good practices. accordance with the criteria laid down by
The CAS team while drawing out their the Committee;
Audit Plan for the year, also plans for some zz Recommend to the Board appointment
theme-based audits (Revenue recognition, and removal of such persons;
HR, Treasury, Insurance etc.) which is
incorporated in the overall audit programme zz Formulate criteria for determining
and also performs certain joint audits with qualifications, positive attributes and
other corporate departments for specific independence of a Director;
functions. The Company being predominantly zz Devise a policy on Board diversity;

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

zz Formulation of criteria for evaluation wisdom, ability to read and understand

of Directors, Board and the Board financial statements, commitment to ethical
Committees; standards and values of the Company.
zz Carry out evaluation of the Board and While appointing/re-appointing any
Directors; Independent Director/Non-Executive Director
on the Board, the NRC considers the criteria
zz Recommend to the Board a policy,
as laid down in the Companies Act, 2013 and
relating to remuneration for the
the SEBI LODR Regulations.
Directors, Key Managerial Personnel
(KMP) and senior management; While evaluating the suitability of a Director
for re-appointment, besides the above
zz Administration of Employee Stock Option
criteria, the NRC considers Board evaluation
Scheme (ESOS).
results, attendance and participation in and
ii) Composition: contribution to the activities of the Board by
As at 31st March 2022, the Committee the Director.
comprised 2 Independent Directors and the The Independent Directors satisfy and fulfill
Group Chairman. the criteria of independence as provided
iii)
Meetings: under Section 149(6) of the Companies Act,
2013 and all the applicable provisions of the
During the year ended 31st March 2022,
SEBI LODR Regulations.
5 meetings of the Nomination and
Remuneration Committee were held on 14th Each Independent Director gives a certificate
May 2021, 26th July 2021, 27th October confirming that they meet the “independence
2021, 28th January 2022 and 22nd March criteria” as mentioned in Section 149(6) of
2022. the Companies Act, 2013 and SEBI LODR
Regulations.
The attendance of Members at the Meetings
was as follows: The Board has taken on record the
declaration and confirmation submitted by
No. of the Independent Directors and after assessing
meetings No. of the veracity of the same, the Board is of the
Name Status held Meetings opinion that the Independent Directors fulfill
during Attended the conditions specified in the SEBI LODR
the year Regulations and are independent of the
Mr. Adil Zainulbhai* Chairman 5 5 management.
Mr. Subodh Chairman 5 5
These certificates have been placed
Bhargava#
on the website of the Company
Mr. A. M. Naik Member 5 4
https://investors.larsentoubro.com/Listing-
Mr. Narayanan Member 5 5
Compliance.aspx
Kumar
Meetings held during the year are expressed as number of
v) Remuneration Policy:
meetings eligible to attend. The remuneration of the Board members
*Appointed as Chairman of the Committee with effect from 30th is based on the Company’s size and global
March 2022. presence, its economic and financial position,
#Ceased to be Member and Chairman of the Committee with industrial trends, compensation paid by the
effect from 29th March 2022. peer companies, etc. Compensation reflects
each Board member’s performance and
iv) Board Membership Criteria:
accountability. The level of compensation
While screening, selecting and recommending to Executive Directors is competitive and
to the Board new members, the Committee matches industry standards.
ensures that the Board is objective, there is
no conflict of interest, availability of diverse The Company pays remuneration to Executive
perspectives, business experience, legal, Directors by way of salary, perquisites and
financial and other expertise, integrity, retirement benefits (fixed components) and
leadership and managerial qualities, practical commission (variable component), based on

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Integrated Annual Report 2021-22 Annexure to the Board Report

recommendation of the NRC, approval of the participation, assessment of their

Board and the shareholders. The commission independence, etc. It also contains specific
payable is based on the overall performance criteria for evaluating the Chairman, CEO
of the Company, performance of the & MD and individual Directors. An external
business / function as well as qualitative consultant is engaged to receive the
factors. The commission is calculated with responses of the Directors and consolidate/
reference to net profits of the Company analyze the responses. This is done through a
in the financial year subject to overall software platform of the external consultant.
ceilings stipulated under Section 197 of the
The Chairman of the Company discusses
Companies Act, 2013.
the performance evaluation results with the
The Independent Directors / Non-Executive Chairman of the NRC and interacts with all
Directors are paid remuneration by way of the Non-Executive Directors and Independent
commission and sitting fees. The Company Directors. The NRC Chairman interacts with
paid sitting fees of R 1,00,000/- per meeting the Executive Directors.
of the Board and R 50,000/- for Audit
Members are also requested to refer to
Committee, Nomination and Remuneration
page 284 of the Board Report.
Committee and Board Risk Management
Committee meetings and R 35,000/- for vi) Training and Succession Planning:
Stakeholders Relationship Committee and The organisation has a robust process of
Corporate Social Responsibility Committee building its talent pipeline which helps to feed
meetings, during the year, to the Independent in succession planning. The process starts
Directors / Non-Executive Directors. The with the Development Centre (DC) where
commission is paid in accordance with the high performing employees get assessed on
provisions of section 197 of the Companies defined competencies at four different levels
Act, 2013. in the organisation. The process identifies
The commission to the Independent competency gaps which are developed with
Directors / Non-Executive Directors is specific Individual Development Plans (IDP’s)
distributed broadly on the basis of their and competency programs organised for
attendance, contribution at the Board, the these levels. This helps the organisation to
Committee meetings, Chairmanship of have a pool of leaders at every level who are
Committees and participation in IC meetings. “Competency Ready”. The DC process and
the subsequent development programs were
In the case of nominees of Financial conducted in virtual mode in FY 2022.
Institutions, the commission is paid to the
Financial Institutions. The organisation also provides managerial
inputs to high potential employees through
As required by the provisions of Regulation its famed 7-Steps leadership development
46 of the SEBI LODR Regulations, the criteria program which culminates with mentoring
for payment to Independent Directors / by the Group Chairman and the CEO & MD.
Non-Executive Directors is made available on The 7-Steps leadership program is done in
the investor page of our corporate website association with global premier B-Schools. In
https://investors.larsentoubro.com/Listing- FY 2022, the step 1 in association with IIM
Compliance.aspx Ahmedabad and step 3 in association with
Performance Evaluation Criteria for Michigan Ross were conducted using a virtual
Independent Directors: medium and suitable pedagogy associated
with it.
The performance evaluation questionnaire
covers qualitative/ subjective criteria with The organisation also conducts its Core
respect to the structure, culture, Board Development programs with tie-ups with
processes and selection, effectiveness reputed Indian B-Schools like Narsee Monjee,
of the Board and Committees, strategic NITIE, XLRI, IIM-Bangalore and Kolkata
decision making, functioning of the Board to provide inputs to its leaders and in the
and Committees, Committee composition, process build a strong pipeline at every level.
information availability, remuneration Multiple instances of these programs were
framework, succession planning, adequate conducted in FY 2022 in the virtual mode.

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

vii) Details of remuneration paid / payable to on exercise of these options is considered

Directors for the year ended 31st March as a part of the remuneration of these
2022: Directors.
(a)
Executive Directors: (b)
Non-Executive Directors:
The details of remuneration paid / The details of remuneration paid /
payable to the Executive Directors for payable to the Non-Executive Directors
FY 2022 is as follows: for FY 2022 is as follows:
v crore v crore
Perquisites Perquisites Sitting Sitting
Retirement Fees for Fees for
Names Salary other than related to Commission Total Names Commission Others+ Total
Benefits Board Committee
ESOP ESOP* Meeting Meeting
Mr. S. N. 2.78 0.63 29.93 6.53 21.40 61.27 Mr. A. M. Naik 0.05 0.02 3.25 3.00 6.32
Subrahmanyan
Mr. M. M. Chitale 0.07 0.06 0.54 – 0.67
Mr. R. Shankar 1.95 0.41 7.98 4.30 13.98 28.62
Raman Mr. Subodh 0.08 0.03 0.55 – 0.66
Bhargava*
Mr. D. K. Sen 1.47 0.28 – 2.46 7.62 11.83
Mr. M. Damodaran 0.08 0.05 0.52 – 0.65
Mr. M. V. Satish 1.47 0.37 – 2.30 7.05 11.19
Mr. Vikram Singh 0.11 – 0.44 – 0.55^
Mr. J. D. Patil 1.23 0.30 – 2.29 7.23 11.05
Mehta
Mr. Subramanian 1.83 0.26 6.03 3.65 11.70 23.47
Sarma Mr. Adil Zainulbhai 0.08 0.04 0.51 – 0.63
Mr. S. V. Desai 1.05 0.34 – 2.60 8.56 12.55 Mr. Sanjeev Aga 0.08 0.06 0.40 – 0.54
Mr. T. Madhava 1.05 0.30 – 2.55 8.40 12.30 Mr. Narayanan 0.08 0.04 0.35 – 0.47
Das Kumar
*Represents perquisite value related to ESOPs exercised Mr. Hemant 0.08 0.01 0.25 – 0.34
during the year in respect of stock options granted over the Bhargava#
past several years by the Company, Larsen & Toubro Infotech Mrs. Preetha Reddy 0.08 – 0.23 – 0.31
Limited and L&T Technology Services Limited and includes * Ceased to be an Independent Director with effect from
tax on ESOPs borne by the Company wherever applicable. 29th March 2022 on account of completion of his tenure.
zz Notice period for termination of + others include pension.
appointment of Chief Executive Officer & # Payable to the Institution he represents.
Managing Director and other Whole-time ^ Includes commission and sitting fees paid by L&T
Directors is six months on either side. Hydrocarbon Engineering Limited (LTHE). LTHE has merged
with the Company.
zz No severance pay is payable on Details of shares and convertible instruments
termination of appointment. of the Company held by the Non-Executive
zz Details of Options granted under Directors, as on 31st March 2022, are as
Employee Stock Option Schemes are follows:
provided on the website of the Company
Name No. of Shares
www.larsentoubro.com.
Mr. A. M. Naik 6,26,936
zz Mr. Subramanian Sarma has exercised
25,000 stock options of the Company, Mr. M. M. Chitale 3,568
vested during the year. The perquisite Mr. M. Damodaran 225
amount on exercise of these options is
Mr. Vikram Singh Mehta 1,327
considered as a part of his remuneration.
Mr. Adil Zainulbhai 150
zz Mr. S. N. Subrahmanyan has exercised
Mr. Sanjeev Aga 100
40,000 stock options each of Larsen
& Toubro Infotech Limited and L&T Mr. Narayanan Kumar 1,500
Technology Services Limited, vested Mr. Hemant Bhargava * 100
during the year. Mr. R. Shankar Raman
Mr. Hemant Bhargava 90
has exercised 20,000 stock options of
Larsen & Toubro Infotech Limited, vested Mrs. Preetha Reddy 180
during the year. The perquisite amount
* h
 eld jointly with the Institution he represents.

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Integrated Annual Report 2021-22 Annexure to the Board Report

3) Stakeholders’ Relationship Committee: iv) Number of Requests / Complaints:

i) Terms of reference: During the year, the Company has resolved
The terms of reference of the Stakeholders’ investor grievances expeditiously except for
Relationship Committee are as follows: the cases constrained by disputes or legal
impediments.
zz Resolving the grievances of the security
holders of the Company including During the year, the Company / its Registrar
complaints related to transfer/ received the following complaints from
transmission of shares, non-receipt of SEBI / Stock Exchanges and queries from
annual report, non-receipt of declared shareholders, which were resolved within the
dividends, issue of new/duplicate time frames laid down by SEBI.
certificates, general meetings etc. Opening
Particulars Received Resolved Pending*
Balance
zz Review of measures taken for effective
Complaints:
exercise of voting rights by shareholders.
SEBI / Stock 3 95 96 2
zz Review of adherence to the service Exchange
standards adopted by the Company in Shareholder Queries:
respect of various services being rendered Dividend 283 18,729 18,982 30
by the Registrar and Share Transfer Related
Agent. Transmission/ 87 4,369 4,294 162
Transfer
zz Review of the various measures and Demat / 7 529 531 5
initiatives taken by the Company for Remat
reducing the quantum of unclaimed * Investor complaints / queries shown outstanding as on 31st March
2022 have been subsequently resolved to the satisfaction of the
dividends and ensuring timely receipt investors. The Company repeatedly sends reminders to shareholders
of dividend warrants/annual reports/ regarding unclaimed shares and dividends. This results in an increase
in the number of queries received.
statutory notices by the shareholders of
the company. Pursuant to SEBI press release dated 3rd
December 2018 and 27th March 2019,
ii) Composition: except in case of transmission or transposition
As on 31st March 2022, the Stakeholders’ of securities, requests for effecting transfer of
Relationship Committee comprised 1 Non- securities subsequent to 1st April 2019, have
Executive Director, 1 Independent Director not been processed by the Company.
and 1 Executive Director. SEBI vide its circular dated 7th September
iii)
Meetings: 2020 had provided a cut-off date of 31st
March 2021 for re-lodgment of transfer
During the year ended 31st March 2022,
requests which were lodged prior to 31st
3 meetings of the Stakeholders’ Relationship
March 2019 but rejected/returned due to
Committee were held on 26th July 2021,
deficiency of paperwork. Accordingly, the
1st October 2021 and 28th January 2022.
Company has accepted such transfer requests
The attendance of Members at the Meetings till 31st March 2021 and the said requests
was as follows: were approved during the year.
No. of The Board has delegated the powers to
No. of
meetings approve transfer of shares to Share Transfer
Name Status Meetings
held during Committee comprising four Senior Executives.
Attended
the year This Committee held 3 meetings during the
Mr. Narayanan Kumar* Chairman 3 3 year and approved the transfer of shares
Mr. J. D. Patil Member 3 3 lodged with the Company.
Mr. Hemant Bhargava# Member 3 3 4) Corporate Social Responsibility Committee:
Meetings held during the year are expressed as number of i) Terms of reference:
meetings eligible to attend.
* appointed as Chairman of the Committee w.e.f. May 14, 2021. The Corporate Social Responsibility (“CSR”)
# appointed as a member of the Committee w.e.f. May 14, 2021. Committee has also been entrusted with the
Mr. Sivaram Nair A, Company Secretary is the task of reviewing the sustainability initiatives
Compliance Officer. of the Company.

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

The terms of reference of the Committee are iv) CSR Activities and Impact Assessment:
as follows: The Company, through its CSR Committee,
A.
Corporate Social Responsibility: is committed to improve the social
infrastructure / fabric of the Country. The
i. Formulate and recommend to
Company’s CSR programmes are well-
the Board a Corporate Social
entrenched, focusing on areas that align
Responsibility Policy and suggest any
with the global and national matrices of
changes thereto
development: water and sanitation, health,
ii. Provide guidance for the education and skill-building.
development of annual CSR Action
Plan The Company is leveraging its countrywide
presence to reduce disparities through
iii. Recommend the CSR annual budget interventions in water and sanitation,
to the Board for approval healthcare, education and skill building.
iv. Monitor the implementation of the Close interactions with the local community
CSR Action Plan of the Company members have enabled the Company to
from time to time; and identify and address their most pressing needs
and the social interventions for community
v. Identify and recommend to the
development have been specifically aligned.
Board the CSR projects that will
qualify to be ongoing projects The Company has launched programs
B. Sustainability: towards holistic development in the following
areas based on need assessment:
i. Formulate and recommend to the
Board a Sustainability Policy and zz Water and Sanitation: For the
suggest any changes thereto availability of safe drinking water and
proper sanitation facilities
ii. Provide guidance for the
development of the long-term zz Education: To improve access to
Sustainability Plan; and education (increased enrollment in pre‐
iii. Monitor the implementation of the school, children attending neighborhood
Sustainability Plan of the Company schools), improving quality of learning
from time to time (better school infrastructure, better
teaching‐learning process) and learning
ii) Composition: STEM (Science Technology Engineering
As on 31st March 2022, the CSR Committee and Math) subjects with fun and hands
comprised 1 Independent Director and on experiments
2 Executive Directors.
zz Health: Improvement in access to quality
iii)
Meetings: health care (expanding infrastructure
During the year ended 31st March 2022, of health centres, increased number of
3 meetings of the CSR Committee were held people availing quality health care)
on 27th April 2021, 27th September 2021 zz Skill development: Enhancing
and 10th March 2022. employability of youth (enhancing
The Members at the Committee are as training capacity, improved infrastructure
follows- of skill development centres).

No. of In view of the sustained impact of the

meetings No. of second wave of the COVID -19 pandemic
Name Status held Meetings on the health infrastructure, education
during Attended
the year
and livelihoods and the acute shortage of
oxygen across the country, the Company
Mr. M. M. Chitale Chairman 3 3
responded by supplementing the health care
Mr. R. Shankar Member 3 3
Raman system by providing oxygen concentrators,
Mr. D. K. Sen Member 3 3 ventilators and portable X-ray units besides
manufacturing PSA oxygen concentration
Meetings held during the year are expressed as number of
meetings eligible to attend.

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Integrated Annual Report 2021-22 Annexure to the Board Report

plants and providing them to hospitals across iii)

Meetings:
the Country. During the year ended 31st March 2022,
All CSR projects have defined goals and 2 meetings of the Board Risk Management
milestones which are tracked as per the Committee were held on 9th June 2021 and
periodicity defined for the project. The 3rd December 2021.
progress is compared with the baseline data The attendance of Members at the Meetings
that is gathered before the commencement was as follows-
of the project. This is carried out through
an onsite evaluation as well as the reports No. of
generated from the project. The indirect meetings No. of
impact that accrue are also factored and Name Status held Meetings
documented in the monthly reporting during the Attended
process. These are subsequently vetted / year
measured during the external Social Audit or Mr. Adil Zainulbhai Chairman 2 2
Impact Assessment. The Social Audit/ Impact Mr. Sanjeev Aga Member 2 2
Assessment report is discussed during the Mr. Subramanian Member 2 2
CSR Committee meetings and it forms a part Sarma
of Annexure C to this Board Report. Meetings held during the year are expressed as number of
meetings eligible to attend.
The detailed disclosures of CSR spending
Members are also requested to refer to
during the year has been given in Annexure
page 282 of the Board Report.
‘C’ forming part of this Board Report. Please
refer to pages 323 to 352 of this Annual G. OTHER INFORMATION
Report. a) Directors’ Familiarization Program:
5) Board Risk Management Committee: The Directors of the Company are updated
i) Terms of reference: on changes/developments in the domestic/
global markets and industry scenario through
The terms of reference of the Board Risk
presentations made at Board, Committee, IC
Management Committee are as follows:
meetings and interactions with senior company
zz Review of the existing Risk Management personnel. The Directors are also updated about
Policy, framework and processes, changes in statutes/legislations and economic
Risk Management Structure and Risk environment, and on matters significantly
Mitigation Systems. Broadly, the key affecting the Company, to enable them to take
risks will cover strategic risks of the well informed and timely decisions.
Group at the domestic and international
The internal newsletters of the Company, the
level including sectoral developments,
press releases, etc. are circulated to all the
risk related to market, financial,
Directors so that they are updated about the
geographical, political and reputational
operations of the Company.
issues, Environment, Social and
Governance (ESG) risks, etc. Presentations are made regularly to the
Board / NRC / Audit Committee (AC) (minutes
zz Evaluate risks related to cyber security.
of AC, NRC, SRC, RMC and CSR Committee are
The Company also has an Apex Risk circulated to the Board), where Directors get an
Management Committee, comprising opportunity to interact with senior managers.
Executive Directors, which reviews the Presentations, inter alia, cover business strategies,
operational risks including client quality, management structure, HR policy, management
manpower availability, logistic and other development and succession planning, quarterly
aspects which impact the Company and the and annual results, budgets, treasury policy,
Group. review of internal audit, risk management
framework, operations of subsidiaries and
ii) Composition:
associates, etc.
As on 31st March 2022, the Board Risk
Management Committee comprised 2 Independent Directors have the freedom to
Independent Directors and 1 Executive interact with the Company’s Management.
Director. Interactions happen during Board / Committee

306
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

meetings, when senior company personnel are are assured by the management of full protection
asked to make presentations about performance from any kind of harassment, retaliation,
of their Independent Company (IC) / Business Unit victimization, or unfair treatment.
to the Board.
Complaints under the Whistle Blower Policy
Some of the Independent Directors are members are received by the Corporate Audit Services of
of the IC Board. They share the learnings from the Company from various sources. The Chief
these meetings with the remaining Non-Executive Internal Auditor reviews the same and after
Directors / Independent Directors formally and screening the complaint, decides on the further
informally. Such interactions also happen when course of action which will include requesting
these Directors meet senior management in IC the complainant to provide further details,
meetings and informal gatherings. internal investigation by the CAS department,
investigation by external agencies, wherever
As part of the appointment letter issued to
necessary, opportunity to the defendant to
Independent Directors, the Company has stated
present his / her case, etc. Based on the findings
that it will facilitate attending seminars/programs/
of the investigation, the Corporate Audit Services
conferences designed to train Directors to
takes the approval of WBIC for the action
enhance their role as an Independent Director.
recommended by them to be taken.
This information is also available on the website of
The WBIC is appraised periodically on the
the Company http://investors.larsentoubro.com/
complaints received, current status, actions
Listing-Compliance.aspx.
contemplated and closure of the cases. The
b) Vigil Mechanism / Whistle Blower Policy: WBIC reviews the complaints and their progress.
The Company has a Whistle Blower Policy in Queries by the WBIC members are immediately
place since April 2004. The said policy was attended to by CAS and the implementation of
modified in line with the requirements of the the recommended action are undertaken by the
Vigil Mechanism under the Companies Act, 2013 respective HR/Accounts Departments.
and subsequently in 2018 to include reporting The policy provides for adequate safeguards
of instances of leakage of unpublished price against victimisation of persons who blow the
sensitive information as per SEBI (Prohibition of whistle and also provides for direct access to
Insider Trading) (Amendment) Regulations, 2018. the Chairperson of the Audit Committee. The
The Company has a Whistle Blower Investigation Audit Committee of the Company oversees the
Committee (WBIC) to manage complaints from implementation of the Whistle-Blower Policy.
“Identified” Whistle Blowers. In addition, WBIC
considers “Anonymous” complaints which in The Audit Committee is periodically briefed about
their judgement are serious in nature and require the various cases received, the status of the
investigation. The WBIC has five members viz. investigation, findings and action taken, if any and
Chief Financial Officer, Company Secretary, a comprehensive update is provided semi-annually
Head-Corporate HR, Chief Internal Auditor and which is presented and discussed at the Audit
a senior Finance and Accounts person from Committee Meeting.
business. The WBIC is responsible for end-to-end The Company has zero tolerance towards breach
management of the investigations, from the time of Code of Conduct and to this extent, the
of receipt of complaints to bringing them to a Company has built a robust framework around
logical conclusion, keeping in mind the interest of the Whistle Blower mechanism to actively address
the Company. Suitable actions are taken against all complaints received.
employees, wherever investigation confirms the
allegations. The Company also has a separate Whistle Blower
Policy for its vendors and channel partners. This
Employees are encouraged to report any acts of policy provides all stakeholders an opportunity
unacceptable behaviour inconsistent with the to report genuine concerns about unethical
Company’s Code of Conduct, having an adverse behaviour, improper practices, misconduct, any
effect on the Company’s financials / image and violation of legal or regulatory requirements,
instances of sharing of unpublished price sensitive actual or suspected fraud, without fear of
information. An employee can report any such punishment or unfair treatment. The details
conduct in oral or written form. Whistle-blowers of the same are available on the Company’s

307
Integrated Annual Report 2021-22 Annexure to the Board Report

website https://larsentoubro.com/corporate/ is available on the website of the Company

about-lt-group/corporate-policies/. www.larsentourbo.com. The declaration of the
Chief Executive Officer & Managing Director is
Also refer to page 287 of the Board Report.
given below:
c) Statutory Auditors:
In the case of appointment of new auditors, a To the Shareholders of Larsen & Toubro Limited
Committee, comprising of the Chairman of the Sub: Compliance with Code of Conduct
Audit Committee, the CFO and the Company
I hereby declare that all the Board Members and senior
Secretary, evaluates various audit firms based management personnel have affirmed compliance
on approved criteria as given herein below. The with the Code of Conduct as adopted by the Board of
audit firms shortlisted, are required to make a Directors and senior management personnel.
presentation to this Committee. The Committee
S. N. Subrahmanyan
considers factors such as compliance with the Chief Executive Officer & Managing Director
legal provisions, number / nature / size and
variation in client base, skill sets available in Date: 12th May 2022
Place: Mumbai
the firm both at partner level and staff level,
international experience, systems and processes
e) General Body Meetings:
followed by the firm, training and development
by the firm to its partners and staff, etc. The last three Annual General Meetings of the
during the process of evaluation. Based on Company were held as under:
merit and the factors mentioned above, the Financial
Committee finalizes the firm to be appointed and Date Venue Time
Year
recommends the same to the Audit Committee. 2020-2021 5th August Meeting 3:30 p.m.
The Audit Committee reviews the same before 2021 was held
recommending to the Board and shareholders for through Video
Conferencing/
approval.
Other Audio-
Deloitte Haskins & Sells LLP (“DHS LLP” or Visual Means
“Firm”) is registered with the Institute of 2019-2020 13th August Meeting 3:30 p.m.
2020 was held
Chartered Accountants of India (Registration
through Video
No. 117366W/W-100018). The Firm has around Conferencing/
2,500 professionals and staff. DHS LLP has offices Other Audio-
in Mumbai, Delhi, Kolkata, Chennai, Bangalore, Visual Means
Ahmedabad, Hyderabad, Coimbatore, Kochi, 2018-2019 1st August Birla Matushri 3:00 p.m.
Pune, Jamshedpur and Goa. The registered office 2019 Sabhagar
of the Firm is One International Center, Tower 3, The following Special Resolutions were passed by
32nd Floor, Senapati Bapat Marg, Elphinstone the members during the past 3 Annual General
Road (West), Mumbai - 400013, Maharashtra, Meetings:
India.
Annual General Meeting held on 5th August
For FY 2022, the total fees paid by the Company 2021:
and its subsidiaries, on a consolidated basis, to
Deloitte Haskins & Sells LLP, Statutory Auditor zz To re-appoint Mr. Sanjeev Aga as an
and all entities in the network firm/network entity Independent Director of the Company for a
of which the statutory auditors are a part thereof, five-year term upto 24th May 2026.
for all the services provided by them is R 11.13 zz To re-appoint Mr. Narayanan Kumar as an
crore. Independent Director of the Company for a
Also refer to page 287 of the Board Report. five-year term upto 26th May 2026.

d) Code of Conduct: zz To approve raising of capital through QIP’s

by issue of shares / convertible debentures /
The Company has laid down a Code of
securities upto an amount of USD 600 million
Conduct for all Board members and senior
or R 4,500 crore.
management personnel. The Code of Conduct

308
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Annual General Meeting held on 13th August The voting period for the said Postal Ballot
2020: commenced on 18th April 2022 at 9:00 a.m.
zz To re-appoint and continue the appointment IST and shall conclude on 17th May 2022 at
of Mr. A. M. Naik as Non-Executive Director 5:00 p.m. IST.
of the company who has attained the age of The Company had appointed Mr. S. N.
75 years. Ananthasubramanian, Practising Company
zz To approve raising of capital through QIP’s Secretary, (M. No: FCS 4206, COP No. 1774)
by issue of shares / convertible debentures / and failing him, Ms. Aparna Gadgil, Practising
securities upto an amount of USD 600 million Company Secretary (M. No: ACS 14713, COP No.
or R 4,500 crore. 8430), as Scrutinizer for conducting the Postal
Ballot in a fair and transparent manner.
Annual General Meeting held on 1st August
2019: The results of the Postal Ballot would be
announced on or before 18th May 2022.
zz To re-appoint Mr. M. M. Chitale as an
Independent Director of the Company for a g) Disclosures:
five-year term upto 31st March 2024. 1. During the year, there were no transactions
zz To re-appoint Mr. M. Damodaran as an of material nature with the Directors or the
Independent Director of the Company for a Management or relatives or the subsidiaries
five-year term upto 31st March 2024. that had potential conflict with the interests
of the Company.
zz To re-appoint Mr. Vikram Singh Mehta as an
Independent Director of the Company for a 2. Details of all related party transactions
five-year term upto 31st March 2024. form a part of the accounts as required
under IND AS 24 and the same are given in
zz To re-appoint Mr. Adil Zainulbhai as an Note No. 47 forming part of the financial
Independent Director of the Company for a statements.
five-year term upto 28th May 2024.
3. The Company has followed all relevant
zz To amend the object clause of the Accounting Standards notified by the
Memorandum of Association of the Companies (Indian Accounting Standards)
Company. Rules, 2015 while preparing the Financial
zz To approve raising of capital through QIP’s Statements.
by issue of shares / convertible debentures / 4. The Company makes presentations to
securities upto an amount of USD 600 million Institutional Investors and Equity Analysts
or R 4,000 crore. on the Company’s performance on a
Note : The resolution relating to raising of quarterly basis. These presentations
finances have been taken at each of the above are provided to the Stock Exchanges
AGMs since the validity of the resolution is one and also available on our website
year. https://investors.larsentoubro.com/Analyst-
Presentation-Archives.aspx
f) Resolution(s) passed through Postal Ballot:
No postal ballot was conducted during FY 2022. 5. There were no instances of non-compliance,
penalties, strictures imposed on the Company
The Company has sought the approval of by the Stock Exchanges on any matter related
shareholders through notice of the Postal Ballot to the capital markets, during the last three
dated 13th April 2022 for the following proposals: years.
1. Alteration of Object Clause of the 6. The policies for determining material
Memorandum of Association of the subsidiaries and related party transactions
Company. are available on the Company’s website
2. Approval of Related Party Transaction to https://www.larsentoubro.com/corporate/
be undertaken by the Company with L&T about-lt-group/corporate-policies/.
Finance Limited. 7. Details of risk management including
3. Appointment of Mr. Pramit Jhaveri (DIN: foreign exchange risk, commodity price risk
00186137) as an Independent Director w.e.f. and hedging activities form a part of the
1st April 2022.

309
Integrated Annual Report 2021-22 Annexure to the Board Report

Management Discussion & Analysis. Please Filing with Stock Information to Stock Exchanges is
refer to page 25 to 28 of this Annual Report. Exchanges now being also filed online on NEAPS
and Digital Portal for NSE, BSE Online
8. As required under the provisions of SEBI for BSE and RNS for London Stock
LODR Regulations, a certificate confirming Exchange.
that none of the Directors on the Board Annual Report and Annual Report is circulated to all the
have been debarred or disqualified by the Annual General members and all others like auditors,
Meeting equity analysts, etc. To enable a
Securities and Exchange Board of India or
larger participation of shareholders
Ministry of Corporate Affairs or any such for the Annual General Meeting
statutory authority, obtained from M/s S. (AGM), the Company has provided
N. Ananthasubramanian & Co., Company Webcast facility at its last three AGMs
Secretaries, is a part of the Corporate in co-ordination with NSDL/KFin
Technologies. This year, like previous
Governance report.
year, due to the continuing COVID-19
9. Details in relation to the Sexual Harassment of pandemic, the Company will be once
again conducting the AGM through
Women at Workplace (Prevention, Prohibition
Audio Visual Means, as permitted by
and Redressal) Act, 2013 form a part of the Ministry of Corporate Affairs and SEBI.
Board Report. Please refer to page 286 of this The Annual Report is e-mailed to all
Annual Report. members who have registered their
email ids with the Company and to
10. The Company has not provided any loans those shareholders who request for
or advances in the nature of loans to firms/ the same. The Annual Report would
companies in which Directors are interested. also be made available on the website
of the Company. The Chairman
h) Means of communication: suitably responds to the queries raised
by the shareholders during the AGM.
Financial Results Quarterly and Annual Results SEBI Complaints Investor complaints are processed
and other are published in prominent daily Redress System at SEBI in a centralized web-based
Communications newspapers viz. The Financial (SCORES) complaints redress system. The salient
Express, The Hindu Business Line features of this system are centralised
and Loksatta. The results are also database of all complaints, online
posted on the Company’s website: upload of Action Taken Reports (ATRs)
www.larsentoubro.com. by concerned companies and online
Advertisements relating to IEPF, viewing by investors of actions taken
E-Voting, AGM related compliances, on the complaints and their current
etc. are published in The Financial status. The Company submits ATR
Express and Loksatta. on timely basis with respect to the
complaints received from SCORES.
News Releases Official news releases that carry
material price sensitive information Management This forms a part of the Annual Report
are sent to stock exchanges as well as Discussion & which is mailed to the shareholders of
displayed on the Company’s website: Analysis the Company.
www.larsentoubro.com. Presentations made The schedule of analyst / institutional
Website The Company’s corporate website to Institutional investor meets and presentations
www.larsentoubro.com provides Investors and made to them on a quarterly basis
comprehensive information about Analysts are informed to the Stock Exchanges
its portfolio of businesses. Section and also displayed on the Company’s
on “Investors” serves to inform and website. The audio recordings and
service the Shareholders allowing transcripts of these meetings are also
them to access information at uploaded on the Company’s website
their convenience. The quarterly and link for the same is intimated to
shareholding pattern of the Company the Exchanges.
is available on the website of the
H. UNCLAIMED SHARES
Company as well as the stock
exchanges. The entire Annual Report The Company does not have any unclaimed shares
of the Company and subsidiaries are lying with it from any public issue. However certain
available in downloadable formats. shares resulting out of the bonus shares issued by
The entire Annual Report of the
Company would also be made the Company are unclaimed by the shareholders. As
available on the websites of the Stock required under Regulation 39(4) of the SEBI LODR
Exchanges. Regulations, the Company has already sent reminders
to the shareholders to claim these shares. These share

310
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

certificates are regularly released on requests received d) Listing of equity shares / shares underlying
from the eligible shareholders after due verification. GDRs on Stock Exchanges:
In accordance with the provisions of the Section 124(6) The shares of the Company are listed on BSE
of the Companies Act, 2013 and Rule 6(3)(a) of the Limited (BSE) and the National Stock Exchange of
Investor Education and Protection Fund Authority India Limited (NSE).
(Accounting, Audit, Transfer and Refund) Rules, GDRs are listed on Luxembourg Stock Exchange
2016 (‘IEPF Rules’), the Company has transferred to and admitted for trading on London Stock
IEPF equity shares on which dividend has remained Exchange.
unclaimed for a period of seven consecutive years from
the financial year 2013-14. The details are given in the e) Listing Fees to Stock Exchanges:
Board Report. Please refer to page 285 of this Annual The Company has paid the Listing Fees for the
Report. year 2022-23 to BSE and NSE in April 2022. The
fees to Luxembourg Stock Exchange has been
All corporate benefits on such shares viz. dividends,
paid in March 2022. The fees to London Stock
bonus shares, etc. shall be transferred in accordance
Exchange will be paid on receipt of the invoice.
with the provisions of IEPF Rules read with Section
124(6) of the Companies Act, 2013. The eligible f) Custodial Fees to Depositories:
shareholders are requested to note the same and make The fees to National Securities Depository Limited
an application to IEPF Authority in accordance with the (NSDL) and Central Depository Services (India)
procedure available on www.iepf.gov.in and submit Limited (CDSL) shall be paid on the receipt of their
such documents as prescribed under the IEPF Rules invoice.
to claim these shares. Mr. Sivaram Nair A has been
appointed as the Nodal officer of the Company. g) Stock Code / Symbol:
The Company’s equity shares / GDRs are listed on
I. GENERAL SHAREHOLDERS’ INFORMATION
the following Stock Exchanges and admitted for
a) Annual General Meeting: trading in London Stock Exchange:
The Annual General Meeting of the Company has
been convened on Thursday, 4th August 2022 at BSE Limited (BSE) : Scrip Code - 500510
3:30 p.m. through Video Conferencing (“VC”) / National Stock Exchange of : Scrip Code - LT
Other Audio Visual Means (“OAVM”) pursuant to India Limited (NSE)
the MCA Circular dated 5th May 2020. ISIN : INE018A01030
Reuters RIC : LART.BO
b) Financial calendar: Luxembourg Exchange Stock : 005428157
1. Annual Results of 12th May 2022 Code
2021-22 London Exchange Stock : LTOD
2. Mailing of Annual Second week of July 2022 Code
Reports
3. First Quarter Results During the last week of The Company’s shares constitute a part of BSE 30
July 2022 * Index of the BSE Limited as well as NIFTY Index of
4. Annual General 4th August 2022 the National Stock Exchange of India Limited.
Meeting
5. Payment of Dividend On or before 8th August
h) Stock market data for the year 2021-22:
2022 Month L&T BSE Price (v) BSE SENSEX
6. Second Quarter During last week of Month Month
results October 2022 * 2021 High Low High Low
Close Close
7. Third Quarter results During last week of April 1447.80 1306.40 1340.20 50375.77 47204.50 48782.36
January 2023 *
May 1499.80 1320.65 1465.55 52013.22 48028.07 51937.44
* Tentative
June 1582.65 1448.00 1501.25 53126.73 51450.58 52482.71
c) Record Date: July 1647.00 1475.85 1601.40 53290.81 51802.73 52586.84
August 1684.80 1563.30 1671.40 57625.26 52804.08 57552.39
The Record date to determine the members
September 1810.00 1657.20 1703.15 60412.32 57263.90 59126.36
entitled to the dividend for FY 2022 is Friday,
October 1884.90 1684.40 1766.80 62245.43 58551.14 59306.93
22nd July 2022.

311
Integrated Annual Report 2021-22 Annexure to the Board Report

Month L&T BSE Price (v) BSE SENSEX i) Registrar and Share Transfer Agents (RTA):

2021 High Low

Month
High Low
Month KFin Technologies Limited (previously known as
Close Close KFin Technologies Private Limited)
November 1982.95 1735.25 1763.90 61036.56 56382.93 57064.87 Unit: Larsen & Toubro Limited
December 1908.75 1763.00 1895.00 59203.37 55132.68 58253.82 Selenium Tower B, Plot number 31 & 32
2022 Financial District Gachibowli, Nanakramguda,
January 2078.20 1850.80 1908.85 61475.15 56409.63 58014.17 Hyderabad, Telangana - 500 032.
February 2006.80 1750.55 1816.90 59618.51 54383.20 56247.28
March 1826.35 1595.00 1767.45 58890.92 52260.82 58568.51 j) Share Transfer System:
Pursuant to SEBI notification dated 24th January
Stock Performance 2022, requests for effecting transfer of securities
2400 L&T BSE (v) BSE SENSEX 65000
2300 in physical form, shall not be processed by the
2200 62500 Company. The share related information is
2100
2000
60000 available online.
1900 57500

BSE SENSEX
L&T-BSE (V)

1800 Physical shares received for dematerialization are

1700 55000 processed and completed within a period of 21
1600
1500 52500 days from the date of receipt.
1400 50000
1300 As required under Regulation 40 of the SEBI
1200 47500
1100 LODR Regulations, a certificate on yearly basis
1000 45000 confirming due compliance of share transfer
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
21 21 21 21 21 21 21 21 21 22 22 22 formalities by the Company from Practicing
Daily Closing Price Company Secretary has been submitted to Stock
Exchanges within stipulated time.
Month L&T NSE Price (v) NIFTY k) Distribution of Shareholding as on 31st March
Month Month 2022:
2021 High Low High Low
Close Close
April 1447.85 1306.00 1340.45 15044.35 14151.40 14631.10 Shareholders Shareholding
No. of Shares
May 1499.65 1319.15 1467.70 15606.35 14416.25 15582.80 Number % Number %
June 1583.00 1447.25 1500.55 15915.65 15450.90 15721.50 upto 500 13,94,521 93.46 9,25,14,365 6.58
July 1647.15 1475.50 1601.45 15962.25 15513.45 15763.05 501 - 1000 47,983 3.22 3,51,38,388 2.50
August 1684.95 1562.75 1672.20 17153.50 15834.65 17132.20
1001 - 2000 26,708 1.79 3,72,87,482 2.65
September 1810.00 1655.20 1702.95 17947.65 17055.05 17618.15
2001 - 3000 8,960 0.60 2,19,02,931 1.56
October 1885.00 1684.05 1766.65 18604.45 17452.90 17671.65
November 1981.75 1735.15 1764.75 18210.15 16782.40 16983.20 3001 - 4000 3,881 0.26 1,34,46,251 0.96
December 1909.00 1762.05 1895.90 17639.50 16410.20 17354.05 4001 - 5000 2,480 0.17 1,11,76,202 0.80
2022 5001 - 10000 4,129 0.28 2,86,44,106 2.04
January 2078.55 1850.10 1909.20 18350.95 16836.80 17339.85
10001 and 3,462 0.23 116,49,19,398 82.91
February 2008.00 1751.00 1816.75 17794.60 16203.25 16793.90
above
March 1826.95 1595.00 1767.65 17559.80 15671.45 17464.75
TOTAL 14,92,124 100.00 140,50,29,123 100.00
Stock Performance l) Categories of Shareholders is as under:
2200 L&T NSE (v) NSE NIFTY 20000
2100 19100 31.03.2022 31.03.2021
2000
18200 Category
1900 No. of No. of
17300 % %
1800 Shares Shares
L&T-NSE (V)

NSE NIFTY

1700 16400
Financial Institutions 21,00,83,320 14.95 23,97,88,975 17.07
1600 15500
1500 Foreign Institutional 31,08,73,341 22.13 31,99,81,665 22.78
14600
1400 Investors
13700
1300 Shares underlying GDRs 1,81,96,992 1.30 2,02,61,741 1.44
1200 12800
11900 Mutual Funds 24,50,08,723 17.44 21,25,49,034 15.13
1100
1000 11000 Bodies Corporate & 8,14,83,173 5.80 7,85,44,719 5.59
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Qualified Institutional
21 21 21 21 21 21 21 21 21 22 22 22
Buyers
Daily Closing Price
Directors & Relatives 17,82,434 0.13 17,31,586 0.12

312
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

31.03.2022 31.03.2021 n) Outstanding GDRs / ADRs / Warrants or any

Category No. of No. of
Convertible Instruments, conversion date and
% % likely impact on equity:
Shares Shares
L&T Employees Trust 19,25,58,158 13.70 19,25,58,158 13.71 The outstanding GDRs are backed up by
Others 34,50,42,982 24.55 33,91,39,419 24.16 underlying equity shares which are part of the
TOTAL 140,50,29,123 100.00 140,45,55,297 100.00 existing paid-up capital.
Categories of Shareholders o) Listing of Debt Securities:
as on 31st March 2022 The redeemable Non-Convertible debentures
Financial issued by the Company are listed on the
Others Institutions Wholesale Debt Market (WDM) of National Stock
24.55% 14.95% Exchange of India Limited and / or BSE Limited.
Foreign p) Listing of Commercial Paper:
L&T Institutional
Employees Investors The Commercial Papers issued by the Company
Trust 22.13%
13.70%
are listed on BSE Limited.
Directors & Shares q) Debenture Trustees (for privately placed
Relatives underlying debentures):
0.13% Bodies Mutual
GDRs
Corporate Funds
1.30% IDBI Trusteeship Services Limited
& Qualified 17.44%
Institutional Ground Floor, Asian Building
Buyers 17, R. Kamani Marg, Ballard Estate
5.80% Mumbai – 400 001
m) Dematerialization of shares and Liquidity: r) Credit Rating:
The Company’s Shares are required to be The Company has obtained rating from CRISIL
compulsorily traded in the Stock Exchanges in Limited, ICRA Limited and India Ratings and
dematerialized form. Research Private Limited during FY 2022. There
has been no revision in credit ratings during
The number of shares held in dematerialized and
FY 2022. The ratings given by these agencies are
physical mode as on 31st March 2022 is as under:
as follows:
% of
total Rating
No. of shares Type of Instrument Rating
capital Agency
issued
CRISIL Non-Convertible ‘CRISIL AAA/Stable’
Held in dematerialized form in NSDL 131,35,23,560 93.49 Limited Debentures
Held in dematerialized form in CDSL 7,58,69,708 5.40 Bank Loan Facilities ‘CRISIL AAA/Stable’
Physical 1,56,35,855 1.11
Commercial Paper ‘CRISIL A1+’
Total 140,50,29,123 100.00
ICRA Non-Convertible ‘[ICRA] AAA (stable)’
Limited Debentures Programme
Shares held in Demat / Physical Form
as on 31st March 2022 Commercial Paper ‘[ICRA] A1+’
CDSL Physical India Non-Convertible ‘IND AAA/ Stable’
7,58,69,708 1,56,35,855 Ratings Debentures
5.40% 1.11% and
Research
NSDL Private
131,35,23,560 Limited
93.49%
s) Plant Locations:
The L&T Group’s facilities for design, engineering,
manufacture, modular fabrication and production
are based at multiple locations within India

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Integrated Annual Report 2021-22 Annexure to the Board Report

including, Bengaluru, Chennai, Coimbatore, permission of Compliance Officer is also required.

Faridabad, Hazira (Surat), Kattupalli (near Directors and designated employees who buy
Chennai), Kanchipuram, Mumbai, Pithampur, and sell shares of the Company are prohibited
Puducherry, Rajpura, Kansbahal (Rourkela), from executing contra-trades during the next
Talegaon, Vadodara and Visakhapatnam. L&T’s six months following the prior transactions.
international manufacturing footprint covers The Company has a policy for acting against
Oman, Saudi Arabia and USA. The L&T Group also Directors and employees who violate the SEBI PIT
has an extensive network of offices in India and Regulations / Code. Pursuant to the enactment
around the globe. See pages 14 and 15 of this of the SEBI (Prohibition of Insider Trading)
Annual Report. (Amendment) Regulations, 2018, the Company
has suitably modified the provisions of the Code
t) Address for correspondence:
which are effective from 1st April 2019.
Larsen & Toubro Limited,
L&T House, Ballard Estate, Mr. Sivaram Nair A, Company Secretary has been
Mumbai 400 001. designated as the Compliance Officer.
Tel. No. (022) 6752 5656, The Company has appointed Mr. P. Ramakrishnan,
Fax No. (022) 6752 5858 Vice President (Corporate Accounts & Investor
Shareholder correspondence may be directed Relations), as Chief Investor Relations Officer.
to the Company’s Registrar and Share Transfer The Company also formulated Code of Practices
Agent, whose address is given below: and Procedures for Fair Disclosure of unpublished
price sensitive information which is available on
1. KFin Technologies Limited Company’s Website https://www.larsentoubro.
Unit: Larsen & Toubro Limited com/corporate/about-lt-group/corporate-policies/.
Selenium Tower B,
Plot 31 & 32, Gachibowli, w) Stakeholder Engagement:
Financial District, Nanakramguda, The Company recognizes that its stakeholders
Hyderabad, Telengana - 500 032 form a vast and heterogeneous community. Our
Tel : (040) 6716 2222 customers, shareholders, employees, suppliers,
Toll free number: 1-800-3094-001 community, etc. have been guideposts of our
Fax: (040) 2342 0814 decision-making process. The Company engages
Email: einward.ris@kfintech.com with its identified stakeholders on an ongoing
Website: www.kfintech.com basis through business level engagements and
structured stakeholder engagement programs.
2. KFin Technologies Limited
The Company maintains its focus on delivering
Unit: Larsen & Toubro Limited
value to all its stakeholders, especially the
24-B, Raja Bahadur Mansion,
disadvantaged communities.
Ground Floor, Ambalal Doshi Marg,
Behind BSE Limited, The Company has a dedicated Corporate Brand
Fort, Mumbai – 400 023. Management and Communications department
Tel : (022) 6623 5454/ 5412/ 5427 which facilitates an on-going dialogue between
the Company and its stakeholders. The
u) Investor Grievances:
communication channels include:
The Company has designated an exclusive e-mail
id viz. IGRC@LARSENTOUBRO.COM to enable zz For external stakeholders - Stakeholder
investors to register their complaints, if any. engagement sessions, client satisfaction
surveys, shareholder satisfaction assessment,
v) Securities Dealing Code: dealer and stockists meet, analyst / investors
The objective of the Securities Dealing Code meet, periodic feedback mechanism, general
(‘Code’) is to prevent purchase and / or sale of meeting for shareholders, online service
shares of the Company by an Insider based on and dedicated e-mail service for grievances,
unpublished price sensitive information. Under corporate website and access to business
this Code, Designated Persons (Directors, Advisors, media to respond to queries, etc.
Officers and other concerned employees / persons)
zz For internal stakeholders – Employee
are prevented from dealing in the Company’s
satisfaction surveys, employee engagement
shares during the closure of Trading Window.
surveys for improvement in employee
To deal in securities beyond specified limit,

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engagement processes, circulars and for the Company and its Subsidiaries and
messages from management, corporate Associate Companies is ISO 9001:2015 certified.
social initiatives, welfare initiatives for
z) Audit as per SEBI requirements:
employees and their families, online news
bulletins for conveying topical developments, As stipulated by SEBI, a Qualified Practicing
large bouquet of print and online in-house Company Secretary carries out Reconciliation of
magazines, helpdesk facility, etc. Share Capital Audit to reconcile the total admitted
capital with National Securities Depository Limited
Each of the businesses have their internal (NSDL) and Central Depository Services (India)
mechanisms to address the grievances of its Limited (CDSL) with the total issued and listed
stakeholders. In addition, at the corporate level, capital. This audit is carried out every quarter
there are committees which can be approached and the report thereon is submitted to the Stock
if the stakeholders are not satisfied with the Exchanges. The Audit confirms that the total
functioning of such internal mechanisms. As Listed and Paid-up capital is in agreement with
part of the vigil mechanism, the Whistle Blower the aggregate of the total number of shares in
Policy provides access to the Chairperson of dematerialized form and in physical form.
the Audit Committee. The Whistle Blower
Policy for Vendors and Channel Partners is The Secretarial Department of the Company at
displayed on the website of the Company Mumbai is manned by competent and experienced
https://www.larsentoubro.com/corporate/ professionals. The Company has a system to
about-lt-group/corporate-policies/. review and audit its secretarial and other statutory
compliances by competent professionals, who are
x) Awareness Sessions / Workshops on employees of the Company. Appropriate actions
Governance practices: are taken to continuously improve the quality of
Employees across the Company as well as the compliance.
group are being sensitized about the various
aa) Secretarial Audit as per Companies Act, 2013:
policies and governance practices of the
Company. The Company has designed in-house Pursuant to the provisions of Section 204(1)
training workshops on Corporate Governance of the Companies Act, 2013, M/s. S. N.
with the help of an external faculty covering Ananthasubramanian & Co., Company Secretaries,
basics of Corporate Governance as well as internal conducts the secretarial audit of the compliance of
policies and compliances under Code of Conduct, applicable statutory provisions and the adherence
Whistle Blower Policy, Sexual Harassment of of good corporate practices by the Company.
Women at Workplace (Prevention, Prohibition and Pursuant to the SEBI circular no. CIR/CFD/
Redressal) Act, 2013, SEBI (Prohibition of Insider CMD1/27/2019 dated 8th February 2019,
Trading) Regulations, 2015, etc. the Company has obtained an annual
The Company has established a scalable, secretarial compliance report from M/s. S. N.
multi-featured and externally integrated digital Ananthasubramanian & Co., Company Secretaries
learning platform called ATLNext. It offers a and shall submit the same to the Stock Exchanges
gamut of online courses including competency within the prescribed timelines.
courses, behavioural courses, and business-specific bb) Statutory Compliance System:
technical courses. ATLNext also provides for a
The Company complies with applicable laws, rules
course on Governance where employees can learn
and regulations impacting Company’s business.
about Governance practices and give a self-
These comprise of Central Acts / Rules and
assessment test after completion of the course.
those of state governments where the Company
The Company has created a batch of trainers generally carries on business. The applicable
across businesses who in turn conduct training / laws are reviewed and updated by an External
awareness sessions within their business regularly. Consultant along with the Corporate Legal and
Legal departments of each Independent Company
y) ISO 9001:2015 Certification:
(IC).
The Company’s Secretarial Department which
provides secretarial services and investor services Each IC / Business head certifies compliance of
all applicable laws by the IC on a quarterly basis.

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Integrated Annual Report 2021-22 Annexure to the Board Report

Based on these confirmations, the Company Responsibility of the Company’s corporate team
Secretary gives a compliance certificate to the in the areas of statutory compliance (including
Board of Directors. corporate laws), Risk Management, Internal
Controls and Internal Audit, covers all unlisted
The Company has a process of verifying the
subsidiaries. The four listed subsidiaries have their
compliances through a random review of the
own teams to carry out these functions.
process / system / documentation of the location
of the IC / Corporate function / Group Company. The ICs have separate internal teams to
The review is placed before the Board of the oversee their legal and compliance functions.
respective IC / group company. Existing internal All Subsidiary Companies associated with the
controls are also reviewed. The audit process respective ICs are reviewed by their respective IC
includes planning the audit, discussion with Boards.
auditee before audit commencement to explain
The subsidiary companies also function
the scope and purpose of the audit, verifying
independently and have separate Boards which
the compliances based on the supporting
consists of representatives of the Company,
documentation, post audit meeting for explaining
who are senior executives of the Company,
the observations, etc.
representatives of Joint Venture partners,
cc) Group Governance Policy: representative of the Company’s Board as well
Vide its circular dated 10th May 2018, SEBI has as Independent Directors as required by law. As
introduced the concept of Group Governance per law, these companies, wherever required,
Unit. The circular expects listed companies to also have Audit Committee, Nomination and
monitor their governance through a Governance Remuneration Committee, CSR Committee,
Committee and establishment of a strong and Stakeholders’ Relationship Committee and Risk
effective group governance policy. Management Committee.

“Corporate Governance” in the Company and its Major unlisted subsidiaries have some Executive
subsidiaries broadly includes strategic supervision Directors of the Company on their Board. The
by the Board and its Committees, compliance of subsidiary companies’ performance is reviewed
Code of Conduct, Statutory Compliance including by the Company’s Board periodically (included
compliance of Companies Act / applicable SEBI in quarterly results presented to the Company’s
Regulations, avoiding conflict of interest, Risk Board). F&A heads of some of the subsidiary
Management, Internal Controls and Audit. companies functionally report to select senior
finance officers of the Company.
The Company has four listed subsidiaries within
the Group. Each of these entities have their own Thus, the overall functioning of these Subsidiary
Board and Board Committees in compliance companies is monitored by the Group directly or
with the Companies Act, 2013 and SEBI LODR through their respective IC’s.
Regulations. The oversight of their subsidiaries A voluntary Secretarial Audit is conducted for all
is as per Companies Act, 2013 and SEBI LODR subsidiary companies, including foreign companies
Regulations. The Board Report and its annexures and companies which are not covered under the
of these listed companies contains various purview of Companies Act, 2013. Thus, there is
disclosures dealing with subsidiary companies. a complete audit of the compliance of applicable
Most of these listed entities has one Executive statutory provisions and adherence to good
Director and one or more Independent Director(s) corporate practices.
of the Company on its Board. Any financial The Company’s Code of Conduct (Code) is
assistance to the above companies or purchase/ required to be adhered by all unlisted group
sale by the Company of their shares, is dealt with companies covering employees, directors,
by the Company’s Board. suppliers, contractors, etc. In addition to
These listed entities publish their Independent this, the subsidiaries also have their own vigil
Auditor’s certificate on Corporate Governance, mechanism, if they meet the thresholds given in
Secretarial Audit Report of Practising Company the Companies Act. The Audit Committee/Board
Secretary and CEO/CFO’s certificate for internal of these companies monitor this mechanism. The
controls for financial reporting. Vigil Mechanism Framework to report breach of

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

code is a structured process, which encourages Company’s Secretarial Department develops a

and facilitates all covered, to report without broad Governance policy for the Company and its
fear, wrongdoings or any unethical or improper group of subsidiaries.
practice which may adversely impact the image,
The Company’s Secretarial Department is involved
credibility and/or the financials of the company,
in all major corporate actions of subsidiaries
through an appropriate forum.
like IPO’s, raising of capital, restructuring, major
The Secretarial Department of the Company has financial assistance to subsidiaries etc.
qualified Company Secretaries (CS) with vast
Appropriate disclosures related to subsidiaries
experience in the field of compliance and law.
are made in Financial Statements / Directors’
It consists of fulltime professionals dedicated to
Report of the Company as well as its subsidiaries
performing corporate secretarial and subsidiary
as per Companies Act, 2013 / applicable SEBI
governance duties. Qualified CS in secretarial
Regulations and applicable Accounting Standards.
department monitor the compliance related to
All companies are subject to Statutory Audit and
subsidiaries under Companies Act / Rules. The
applicable Secretarial Audit.

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Integrated Annual Report 2021-22 Annexure to the Board Report

Independent Auditor’s Certificate on Corporate Governance

TO THE MEMBERS OF Governance issued by the Institute of the Chartered
LARSEN & TOUBRO LIMITED Accountants of India (the ”ICAI”), the Standards
on Auditing specified under Section 143(10) of the
INDEPENDENT AUDITOR’S CERTIFICATE ON Companies Act 2013, in so far as applicable for the
CORPORATE GOVERNANCE purpose of this certificate and as per the Guidance
1. This certificate is issued in accordance with the terms Note on Reports or Certificates for Special Purposes
of our engagement letter dated August 23, 2021. issued by the ICAI which requires that we comply with
the ethical requirements of the Code of Ethics issued
2. We, Deloitte Haskins & Sells LLP, Chartered
by the ICAI.
Accountants, the Statutory Auditors of Larsen &
Toubro Limited (the “Company”), have examined the 7. We have complied with the relevant applicable
compliance of conditions of Corporate Governance by requirements of the Standard on Quality
the Company, for the year ended on March 31, 2022, Control (SQC) 1, Quality Control for Firms that
as stipulated in regulations 17 to 27 and clauses (b) to Perform Audits and Reviews of Historical Financial
(i) of regulation 46(2) and para C and D of Schedule Information, and Other Assurance and Related Services
V of the SEBI (Listing Obligations and Disclosure Engagements.
Requirements) Regulations, 2015, as amended from Opinion
time to time (the “Listing Regulations”).
8. Based on our examination of the relevant records
Managements’ Responsibility and according to the information and explanations
3. The compliance of conditions of Corporate provided to us and the representations provided by
Governance is the responsibility of the Management. the Management, we certify that the Company has
This responsibility includes the design, implementation complied with the conditions of Corporate Governance
and maintenance of internal control and procedures as stipulated in regulations 17 to 27 and clauses (b) to
to ensure the compliance with the conditions of (i) of regulation 46(2) and para C and D of Schedule
the Corporate Governance stipulated in Listing V of the Listing Regulations during the year ended
Regulations. March 31, 2022.
Auditor’s Responsibility 9. We state that such compliance is neither an assurance
as to the future viability of the Company nor the
4. Our responsibility is limited to examining the
efficiency or effectiveness with which the Management
procedures and implementation thereof, adopted
has conducted the affairs of the Company.
by the Company for ensuring compliance with the
conditions of the Corporate Governance. It is neither
For DELOITTE HASKINS & SELLS LLP
an audit nor an expression of opinion on the financial
Chartered Accountants
statements of the Company.
(Firm’s Registration No. 117366W/W100018)
5. We have examined the books of account and other
relevant records and documents maintained by the
Company for the purposes of providing reasonable Sanjiv V. Pilgaonkar
assurance on the compliance with Corporate (Partner)
Governance requirements by the Company. (Membership No. 039826)
UDIN: 22039826AIVDOS1456
6. We have carried out an examination of the relevant
records of the Company in accordance with the Place: Mumbai
Guidance Note on Certification of Corporate Date: May 12, 2022

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Secretarial Auditor’s Certificate in respect of the Implementation of

Employee Stock Option Schemes of the Company
[Pursuant to Regulation 13 of the Securities Exchange Board of India (Share Based Employee Benefits and Sweat Equity)
Regulations, 2021]

To, Regulations, 2021 and the ICSI Auditing Standards,

The Members, issued by the Institute of Companies Secretaries of
Larsen & Toubro Limited India.
CIN: L99999MH1946PLC004768
Verification
L&T House, Ballard Estate,
Mumbai – 400001 6. We have verified the following:

Background (a) the Schemes;

1. This Certificate is issued in accordance with the terms (b) the Resolutions;
of our engagement dated 07th March, 2022.
(c) Note on Accounting Treatment followed by the
2. We, Secretarial Auditor of Larsen & Toubro Limited Company.
(“the Company”) pursuant to Regulation 13 of the
Certification
Securities Exchange Board of India (Share Based
Employee Benefits and Sweat Equity) Regulations, 7. Based on our verification of the records and
2021 (“the Regulations”) are required to certify that, documents maintained by the Company as aforesaid
for the Financial Year ended 31st March, 2022, the and according to the information, explanations and
Employees Stock Option Schemes, L&T Limited ESOP written representations provided to us, we certify
Scheme – 2003 and L&T Limited ESOP Scheme – 2006 that the Company has complied with the applicable
(collectively referred to as “the Schemes”) have been provisions of the Regulations and the Resolutions in
implemented in accordance with the Regulations and implementing the Schemes during the year ended
in accordance with the Special Resolutions passed 31st March 2022.
at the General Meeting held on 26th August, 1999 Restriction on use
& 22nd August, 2003 and 25th August, 2006,
8. This Certificate is addressed to and provided to the
respectively (the “Resolutions”)
Members of the Company solely for the purpose of
Management Responsibility compliances with Clause 13 of the Regulations. This
3. It is the responsibility of the Management of the Certificate should not be circulated, copied, used /
Company to implement the Schemes including referred to for any other purpose, without our prior
designing, maintaining records and devising proper written consent. Accordingly, we do not accept or
systems to ensure compliance with the provisions of all assume any liability or any duty of care of for any
applicable laws and regulations and to ensure that the other purpose or to any other party to whom it is
systems are adequate and operate effectively. shown or into whose hands it may come without our
prior consent in writing.
Auditor’s Responsibility
4. It is our responsibility to certify whether the Company For S. N. ANANTHASUBRAMANIAN & Co.
has complied with the applicable provisions of the Company Secretaries
Regulations and the Resolutions, during the year ICSI Unique Code: P1991MH040400
ended 31st March 2022, in implementing the Schemes Peer Review Cert. No.: 606/2019
on the basis of information compiled or collated by the
Management and the accounting and other relevant
S. N. Ananthasubramanian
supporting records and documents provided to us for
Partner
our examination.
FCS: 4206 | COP No.: 1774
5. We have conducted our examination and obtained the ICSI UDIN: F004206D000267898
explanations in accordance with Referencer on SEBI
Place: Thane
(Share Based Employee Benefits and Sweat Equity)
Date: 04th May, 2022

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Integrated Annual Report 2021-22 Annexure to the Board Report

Certificate of Non-Disqualification of Directors

[Pursuant to Regulation 34(3) and Schedule V Para C Clause (10) (i) of Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015]
To,
The Members of
Larsen & Toubro Limited
L & T House,
Ballard Estate,
Mumbai 400001.
We have examined the following documents:
i) Declaration of non-disqualification as required under Section 164 of Companies Act, 2013 (‘the Act’);
ii) Disclosure of concern or interests as required under Section 184 of the Act; (hereinafter referred to as ‘relevant
documents’)
as submitted by the Directors of Larsen & Toubro Limited (‘the Company’) bearing CIN: L99999MH1946PLC004768
and having its registered office at L&T House, Ballard Estate, Mumbai 400001, to the Board of Directors of the Company
(‘the Board’) for the Financial Year 2021-22 and Financial Year 2022-23 and relevant registers, records, forms and
returns maintained by the Company and as made available to us for the purpose of issuing this Certificate in accordance
with Regulation 34(3) read with Schedule V Para C Clause 10(i) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015. We have considered non-disqualification to include non-debarment by Regulatory / Statutory Authorities.
It is the responsibility of Directors to submit relevant documents with complete and accurate information in accordance with
the provisions of the Act.
Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion based on our verification.
Based on our examination as aforesaid and such other verifications carried out by us as deemed necessary and adequate
(including Directors Identification Number (DIN) status at the portal www.mca.gov.in), in our opinion and to the best of
our information and knowledge and according to the explanations provided by the Company, its officers and authorized
representatives, we hereby certify that during the Financial Year ended 31st March 2022, none of the Directors on
the Board of the Company, as listed hereunder have been debarred or disqualified from being appointed or continuing
as Directors of Companies by Securities and Exchange Board of India/ Ministry of Corporate Affairs or any such statutory
authority.

Director
Sr.
Name of Director Identification Date of Appointment Date of Cessation
No.
Number (DIN)
01 Mr. Anilkumar Manibhai Naik 00001514 23-11-1989 –
02 Mr. Mukund Manohar Chitale 00101004 06-07-2004 –
03 Mr. Subodh Kumar Bhargava 00035672 03-07-2007 29-03-2022
04 Mr. Sekharipuram Narayanan Subrahmanyan 02255382 01-07-2011 –
05 Mr. Ramamurthi Shankar Raman 00019798 01-10-2011 –
06 Mr. Meleveetil Damodaran 02106990 22-10-2012 –
07 Mr. Vikram Singh Mehta 00041197 22-10-2012 –
08 Mr. Adil Siraj Zainulbhai 06646490 30-05-2014 –
09 Mrs. Sunita Sharma 02949529 01-04-2015 03-05-2021
10 Mr. Subramanian Sarma 00554221 19-08-2015 –
11 Mr. Dip Kishore Sen 03554707 01-10-2015 –
12 Mr. Maddur Venkata Rao Satish 06393156 29-01-2016 –
13 Mr. Sanjeev Aga 00022065 25-05-2016 –

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Corporate Management Integrated Statutory Financial
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Director
Sr.
Name of Director Identification Date of Appointment Date of Cessation
No.
Number (DIN)
14 Mr. Narayanan Kumar 00007848 27-05-2016 –
15 Mr. Jayant Damodar Patil 01252184 01-07-2017 –
16 Mr. Hemant Bhargava 01922717 28-05-2018 –
17 Mr. Sudhindra Vasantrao Desai 07648203 11-07-2020 –
18 Mr. Tharayil Madhava Das 08586766 11-07-2020 –
19 Mrs. Preetha Reddy 00001871 01-03-2021 –
20 Mr. Pramit Jhaveri 00186137 01-04-2022 –

This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with
which the management has conducted the affairs of the Company.
This Certificate has been issued at the request of the Company to make disclosure in its Corporate Governance Report for the
Financial Year ended 31st March, 2022.

For S. N. ANANTHASUBRAMANIAN & Co.

Company Secretaries
ICSI Unique Code P1991MH040400
Peer Review Cert. No. 606/2019

S. N. Ananthasubramanian
Partner
FCS: 4206 | COP No. : 1774
ICSI UDIN: F004206D000266677
Date : 4th May, 2022
Place : Thane

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Integrated Annual Report 2021-22 Annexure to the Board Report

To the Board of Directors of Larsen & Toubro Limited

Dear Sirs,
Sub: CEO / CFO Certificate
[Issued in accordance with provisions of Regulation 17(8) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015]
We have reviewed the consolidated financial statements, read with the consolidated cash flow statement of Larsen & Toubro
Limited for the year ended March 31, 2022 and that to the best of our knowledge and belief, we state that;
(a) (i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that
may be misleading;
(ii) these statements present a true and fair view of the Company’s affairs and are in compliance with current accounting
standards, applicable laws and regulations.
(b) There are no transactions entered into by the Company during the period which are fraudulent, illegal or in violation of
the Company’s code of conduct.
(c) We accept responsibility for establishing and maintaining internal controls for financial reporting. We have evaluated
the effectiveness of internal control systems of the Company pertaining to financial reporting and have disclosed to the
Auditors and the Audit Committee, deficiencies, if any, in the design or operation of such internal controls of which we
are aware and steps taken or proposed to be taken for rectifying these deficiencies.
(d) We have indicated to the Auditors and the Audit Committee:
(i) that there were no significant changes in internal controls over financial reporting during the year; and
(ii) that there were no significant changes in accounting policies made during the year; and
(iii) that there were no instances of significant fraud of which we have become aware.

Yours sincerely,

_____________________ _______________________
R. Shankar Raman S. N. Subrahmanyan
Whole-time Director and Chief Executive Officer and
Chief Financial Officer Managing Director
DIN: 00019798 DIN: 02255382
Date: May 12, 2022

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Annexure ‘C’ to the Board Report

ANNUAL REPORT ON CSR ACTIVITIES FOR FINANCIAL YEAR ENDED 31ST MARCH 2022
1. Brief outline on CSR Policy of the Company
The CSR projects of the Company are focused on communities that are disadvantaged, vulnerable and marginalized.
The Company strives to contribute positively to improve their standard of living, through its interventions in water &
sanitation, heath, education and skill development.

The Company’s CSR Policy framework details the mechanisms for undertaking various programmes in accordance with
Section 135 of the Companies Act, 2013 (the Act) for the benefit of the community.

The impact of COVID-19 pandemic continued to ravage communities impacting livelihoods, education and health and
called for innovative approaches to address the ground realities.

Significant efforts were deployed towards Covid-19 relief besides continuing commitment to existing projects. During the
second wave of Covid-19, the focus of relief efforts was to address the acute oxygen shortage faced within the Country
through timely supply of PSA oxygen plants, besides strengthening the health infrastructure. Educational activities,
including implementation of STEM (Science, Technology, Engineering and Mathematics) programmes in schools.

The Company’s primary focus is on ‘Building India’s Social Infrastructure’ as part of its CSR programme which include,
amongst others, the following areas, viz.

zz ater and Sanitation – Includes but not limited to watershed development, access to potable water, promoting
W
rain water harvesting, soil and moisture conservation, enhancing ground water levels by facilitating setting up
of community-based institutions such as village development committees, self-help groups, farmer groups and
community management of water resources for improving conditions related to sanitation, health, education and
livelihoods of communities through an integrated approach.
zz Education - Includes but not limited to education infrastructure support to educational Institutions, educational
programs and nurturing talent at various levels. Promoting learning enhancement amongst children, both in schools
and in communities through interventions in pre-school education, innovative teaching methodology and training
teachers in formal schools, providing interesting “teaching learning material”, with special focus on Science,
Technology Engineering and Maths (STEM) subjects.
This is achieved through support to Balwadis and Anganwadis strengthening the in-school interventions and
providing after school study classes in the community. Ongoing community-based education programs are
significantly impacted by Covid-19 induced lockdown. Efforts are being taken to remain digitally connected to the
children, despite challenges.
zz Health - Due to unprecedented challenges faced by the healthcare sector posed by the spread of Covid -19, focus
and outlay on health was substantially increased. However, regular health activities including but not limited to
community health centres, mobile medical vans, dialysis centres, general and specialized health camps and outreach
programs, support to HIV/AIDS, Tuberculosis control programs continued in a restricted manner.
zz Skill Development - Includes but not limited to vocational training such as skill building, computer training,
women empowerment, support to ITI’s, support to specially-abled (infrastructure support and vocational training),
Construction Skills Training Centres and providing employability skills to women and youth.
Governance, Technology and Innovation would be the Key enabling factors across all these initiatives.

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Integrated Annual Report 2021-22 Annexure to the Board Report

2. Composition of CSR Committee.

The CSR Committee of the Board comprises of
Sl. Designation /Nature of Number of meetings of CSR Number of meetings of CSR
Name of Director
No. Directorship Committee held during the year Committee attended during the year
1 Mr. M. M. Chitale Chairman (Independent Director) 3 3
2 Mr. R. Shankar Raman Member (Whole-time Director) 3 3
3 Mr. D. K. Sen Member (Whole-time Director) 3 3

Mr. Sivaram Nair A acts as the Secretary of the Committee.

3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the
board are disclosed on the website of the company.
The Composition of CSR committee, CSR Policy Framework and CSR Projects approved by the
Board are available in the Governance section on the website of the Company. Please see the link
https://investors.larsentoubro.com/corporate-governance.aspx.

4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of
the Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report).
Impact assessment for projects concluded in FY 2019-20 was completed. The Independent auditor’s report is provided on
the Company’s website at https://investors.larsentoubro.com/Listing-Compliance.aspx

5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate
Social responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any
Sl. Amount available for set-off from preceding Amount required to be setoff for the financial year,
Financial Year
No. financial years (in R) if any (in R)
1 2019-20 53.23 crore* Nil
2 2020-21 4.51 crore 4.51 crore
TOTAL 57.74 crore 4.51 crore

*The Company’s contribution to PM CARES Fund during FY 2019-20 of R 53.23 crore has not been considered as available for set-off against the
Company’s CSR obligations for FY 2020-21 and FY 2021-22 considering the clarification provided by MCA vide its circular dated 20th May 2021.

6. Average net profit of the company as per section 135(5).

The average net profit of the Company for the last three financial years is R 6,702.59 crore

7. (a) Two percent of average net profit of the company of last three financial years as per section 135(5)
R 134.05 crore

(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years.
Nil

(c) Amount required to be set off for the financial year, if any
R 4.51 crore

(d) Total CSR obligation for the financial year (7a+7b-7c).

The Company was required to spend an amount of R 129.54 crore as CSR expenditure during FY 2022.

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Overview Discussion and Analysis Report Reports Statements

8. (a) CSR amount spent or unspent for the financial year:

Total Amount Spent for the Financial Year.
Against the mandated spend of R 134.05 crore, the Company spent R 135.68 crore towards various activities for the
benefit of the community and availed set off for an excess amount of R 4.51 crore spent by the Company in FY 2021.
Accordingly, the excess spend for FY 2022 is R 6.14 crore.
Amount Unspent
Nil

(b) Details of CSR amount spent against ongoing projects for the financial year:
Amount Mode of
Amount Implementation –
Item from Location of the Amount transferred to
Local spent Through Implementing
the list of project allocated Unspent CSR Mode of
Sl. area Project in the Agency
Name of the Project activities in for the Account for the Implementation -
No. (Yes / duration current
Schedule VII project project as per Direct (Yes/No) CSR
No) State District F.Y. Name
to the Act (in R) Section 135(6) Registration
(in R)
(in R) number
1. NOT APPLICABLE
TOTAL

(c) Details of CSR amount spent against other than ongoing projects for the financial year:
(1) (2) (3) (4) (5) (6) (7) (8)
Item from Mode of implementation –
Local Location of the project Amount
the list of Mode of Through implementing agency.
Sl. area spent for the
Name of the Project activities in implementation -
No. (Yes/ project (in CSR
schedule VII Direct (Yes/No)
No) State District R crore) Name registration number
to the Act
As per Exhibit - A 129.04

(d) Amount spent in Administrative Overheads

R 6.42 crore

(e) Amount spent on Impact Assessment, if applicable

R 0.21 crore

(f) Total amount spent for the Financial Year (8b+8c+8d+8e)

R 135.68 crore

(g) Excess amount for set off, if any

Sl. No. Particulars Amount
(i) Two percent of average net profit of the company as per section 135(5) R 134.05 crore
(ii) Total amount spent for the Financial Year R 140.19 crore*
(iii) Excess amount spent for the financial year [(ii)-(i)] R 6.14 crore
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if NA
any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] R 6.14 crore

* includes excess amount of R 4.51 crore spent in FY 2021 and set-off in the current financial year.

9. (a) Details of Unspent CSR amount for the preceding three financial years
NA

(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
NA

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Integrated Annual Report 2021-22 Annexure to the Board Report

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or
acquired through CSR spent in the financial year (asset-wise details).
Capital Purchase FY 2022 1 2 3
(a) Date of creation or acquisition of the capital asset(s)
(b) Amount of CSR spent for creation or acquisition of capital asset (in R)
(c) Details of the entity or public authority or beneficiary under whose name As per Exhibit - B
such capital asset is registered, their address etc.
(d) Provide details of the capital asset(s) created or acquired (including complete
address and location of the capital asset).
11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section
135(5).
NA

S. N. Subrahmanyan M. M. Chitale
Chief Executive Officer & Chairman - CSR Committee
Managing Director DIN: 00101004
DIN: 02255382

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Overview Discussion and Analysis Report Reports Statements

EXHIBIT - A
Item from Mode of Implementation -
Local Location of the project. Amount spent Mode of
the list of Through Implementing Agency
Sl. area in the current Implementa
Name of the Project. activities in
No. (Yes/ financial Year tion - Direct CSR
Schedule VII to
No). State District (in R) (Yes/No). Name (NGO) Registration
the Act.
number
1 Designing and ii Yes Maharashtra Mumbai 6,940,086 Yes
Implementation of
Projects
2 Awareness Programmes ii Yes Maharashtra Mumbai 618,164 Yes
and Engagement with
Community
3 Maintenance of Public iv Yes Maharashtra Mumbai 5,861,612 Yes
Green Spaces
4 Covid-19 Emergency i No Andaman, Tamil Andaman, Tirunelveli, Madurai, 56,710,370 Yes
Response Nadu, Madhya Coimbatore, Thoothukudi,
Pradesh, Karnataka, Oddanchattram, Virudhunagar, Sagar,
Rajasthan, Gujarat, Khandwa, Tikamgarh, Dharwad,
Himachal Pradesh Bangalore, Rajsamand, Ahmedabad,
and Delhi Shimla and Delhi
5 Covid-19 Emergency i No Maharashtra Mumbai 1,519,749 No Save The CSR00000158
Response Children India
6 Covid-19 Emergency i No Delhi Delhi 8,862,252 No Vidya CSR00004043
Response Foundation
7 Repair and Renovation ii Yes Maharashtra Mumbai 2,000,000 No Lokmanya Seva CSR00007632
of Day Care Center for Sangh
Children
8 STEM Program In Mumbai ii Yes Maharashtra Mumbai 534,728 No St. Joseph's CSR00002656
For Schools Technical
School
9 Support to Community ii Yes Maharashtra Mumbai 7,664,772 No Save The CSR00000158
Learning Centers Through Children India
Study Centers and
Balwadis
10 Support to Community ii Yes Maharashtra Mumbai 3,222,057 No Angel Xpress CSR00000120
Learning Centers for Foundation
Urban Children from
Vulnerable Communities
11 Early Childhood ii Yes Maharashtra Mumbai 2,261,983 No Pratham CSR00000751
Intervention through Mumbai
Pre-School Readiness Education
Program Initiative
12 Mobile Toy Van Outreach ii Yes Maharashtra Mumbai 1,315,110 No Children Toy CSR00001187
Foundation
13 Early Childhood ii Yes Maharashtra Mumbai 1,694,880 No Pratham CSR00000258
Intervention through Education
Pre-School Readiness Foundation
Program
14 Providing Support i Yes Tamil Nadu Chennai and Kanchipuram 7,500,000 No Cancer Institute CSR00007235
to Cancer Institute (Wia)
(Wia) for civil work for
Installation of Radiation
Equipment and Care of
Underprivileged Patients
15 Infrastructure ii No Rajasthan Rajsamand 23,249,776 No Arpan Seva CSR00000826
Improvement of Schools Sansthan
and Anganwadi Centers,
Bhim

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Item from Mode of Implementation -

Local Location of the project. Amount spent Mode of
the list of Through Implementing Agency
Sl. area in the current Implementa
Name of the Project. activities in
No. (Yes/ financial Year tion - Direct CSR
Schedule VII to
No). State District (in R) (Yes/No). Name (NGO) Registration
the Act.
number
16 Community Development ii Yes Tamil Nadu, Gujarat, Chennai, Vadodara, Sundargarh, 12,421,781 No Prayas Trust CSR00003840
Activities Orissa, Maharashtra, Mumbai, Nagpur, Faridabad,
Haryana, Karnataka, Bangalore, Chandigarh, Bhopal and
Madhya Pradesh, Kolkata
Tamil Nadu and West
Bengal
17 Integrated Community x No Maharashtra Aurangabad 22,858,745 No Watershed CSR00000518
Development Programme, Organization
Devgaon Trust
18 Integrated Community x No Maharashtra Jalna 12,450,135 No Watershed CSR00000518
Development Programme, Organization
Nagzari Trust
19 Integrated Community x No Tamil Nadu Vellore 9,243,976 No Dhan CSR00000273
Development Programme, (Development
Gudiyatham Of Humane
Action)
Foundation
20 Community Sanitation and ii No Tamil Nadu Vellore 3,776,832 No Dhan CSR00000273
Awareness, Gudiyatham (Development
Of Humane
Action)
Foundation
21 Women Health and Child i No Tamil Nadu Vellore 4,796,115 No Dhan CSR00000273
Nutrition, Gudiyatham (Development
Of Humane
Action)
Foundation
22 STEM Education Project in ii Yes Tamil Nadu, Haryana Chennai, Faridabad, Vadodara and 14,081,101 No American India CSR00001977
Urban Schools and Gujarat Hazira Foundation
23 Integrated Community x No Rajasthan Rajsamand 21,690,544 No Seva Mandir CSR00000288
Development Programme,
Sewantri
24 Enhancing Education And ii No Rajasthan Rajsamand 5,337,834 No Bal Raksha CSR00000065
Infrastructure Support, Bharat
Bhim
25 Construction of Skill ii Yes Gujarat Bondeli 20,217,900 Yes
Development Center
26 Covid Response - i No Andra Pradesh, Vadodara, Navsari, Ahmedabad, 238,212,459 Yes
Provision of Oxygen Delhi, Gujarat, Surat, Delhi, Gorakhpur, Lucknow,
Generating Plants Haryana, Himachal Unnao, Malleshwaram, Hubbali,
Pradesh, Karnataka, Belagavi, Gulbarga, Coimbatore,
Madhya Pradesh, Erode, Kanchipuram, Kudamkulam,
Maharashtra, Orissa, Chengelpet, Ajmer, Sundergarh,
Rajasthan, Tamil Ankapalle , North 24 Parganas,
Nadu, Telangana, Faridabad, Adilabad, Sehore, Hamirpur
Uttar Pradesh and and Gadchiroli
West Bengal
27 Support to Health and i Yes Maharashtra, Andhra Raigad, Pune, Kattupalli, Coimbatore, 110,899,099 No L&T Public CSR00004501
Dialysis Centers and Pradesh, Tamil Nadu Chennai, Surat and Vadodara Charitable Trust
Mobile Medical Units and Gujarat
28 Educate and Empower ii No Maharashtra Pathardi 2,138,614 No Light Of Life CSR00000156
Children at Risk of Trust
Dropping out in Pathardi

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Item from Mode of Implementation -

Local Location of the project. Amount spent Mode of
the list of Through Implementing Agency
Sl. area in the current Implementa
Name of the Project. activities in
No. (Yes/ financial Year tion - Direct CSR
Schedule VII to
No). State District (in R) (Yes/No). Name (NGO) Registration
the Act.
number
29 Women Health and Child i No Rajasthan Rajsamand 9,181,235 No Seva Mandir CSR00000288
Nutrition Programme,
Kumbhalgarh
30 Infrastructure Support and ii No Rajasthan Rajsamand 17,821,455 No Seva Mandir CSR00000288
Education Enhancement
Programme, Kumbhalghar
31 Skill Training Academy, ii Yes Maharashtra Mumbai 16,584,073 Yes
Madh
32 Infrastructure Support for ii Yes Maharashtra Mumbai 97,409 No L&T Community CSR00015237
Community Development Welfare
Association
33 Community Health Centre, i Yes Maharashtra Thane 43,299,550 Yes
Thane
34 Maintenance of Public iv Yes Gujarat Vadodara 3,517,900 Yes
Green Spaces
35 Educational Support to ii Yes Haryana Faridabad 3,748,800 Yes
Vulnerable Children
36 Education Support to ii Yes Gujarat Vadodara 1,169,485 No Swami CSR00008492
Vulnerable Children Vivekanand
School
37 Education Support to ii Yes Gujarat Vadodara 2,130,385 No Roosevelt CSR00020728
Vulnerable Children School
38 Education Support to ii Yes Gujarat Vadodara 572,280 No Sai Angel CSR00000322
Vulnerable Children
39 Education Support to ii Yes Gujarat Vadodara 127,680 Yes
Vulnerable Children
40 Skills Development ii Yes West Bengal Hooghly 45,000,000 Yes
Training for Rural Youth,
Serampore
41 Providing Educational ii Yes Orissa Sundargarh 28,000,000 Yes
Support to Tribal
Communities
42 Autocad Training for ii Yes West Bengal Hooghly 2,200,000 Yes
Underprivileged Youth
43 Infrastructure ii Yes West Bengal Hooghly 1,000,000 Yes
Development Support at
School
44 Support to Study Centers ii Yes Tamil Nadu Chennai 3,000,000 No Bhumi CSR00001059
for Urban Children from
Vulnerable Communities
45 Educational Support for ii Yes Tamil Nadu Chennai 4,599,834 No Vidyasagar Trust CSR00003082
Special Children
46 Support to Evening ii Yes New Delhi New Delhi 6,099,560 No Seth Vidyalaya CSR00002655
School For Children from Trust (Prayatn)
Vulnerable Communities
47 Every Child a Scientist ii Yes Tamil Nadu Chennai 1,909,397 No MSSRF- MS CSR00000470
Project Swaminathan
Research
Foundation
48 School Infrastructure ii Yes Tamil Nadu Chennai 2,254,409 Yes
Development
49 School Infrastructure ii Yes Tamil Nadu Chennai 2,700,000 No United Way Of CSR00000572
Development Chennai

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Integrated Annual Report 2021-22 Annexure to the Board Report

Item from Mode of Implementation -

Local Location of the project. Amount spent Mode of
the list of Through Implementing Agency
Sl. area in the current Implementa
Name of the Project. activities in
No. (Yes/ financial Year tion - Direct CSR
Schedule VII to
No). State District (in R) (Yes/No). Name (NGO) Registration
the Act.
number
50 Support for Special ii Yes Tamil Nadu Chennai 1,020,000 No Sri Arunodayam CSR00001030
Education for Abandoned Charitable Trust
Children with Intellectual
Disability
51 Infrastructure Support for i Yes Tamil Nadu Chennai 774,080 No Indian Red CSR00004593
Blood Storage Cross Society
52 Awareness Programme ii Yes Tamil Nadu Chennai 389,503 Yes
and Engagement with
Community
53 ‘Green Hands’ – Building iv Yes Tamil Nadu Chennai 282,059 Yes
Awareness For Greenery
Development in Nearby
Communities
54 Skill Upgradation Training ii Yes Gujarat Ahmedabad 357,007 Yes SEWA Trust CSR00002616
for Women Construction
Workers
55 Oxygen Concentrator i Yes Tamil Nadu Chennai 2,500,000 No United Way Of CSR00000572
Machines to Government Chennai
Hospitals, Chennai (Covid
Relief)
56 E-Content Development ii Yes Tamil Nadu Chennai 22,485,548 Yes
for Skills Development
Training Institutes for
Rural Youth
57 E-Content Development ii Yes Tamil Nadu Chennai 9,507,042 Yes
for Skills Development
Training Institutes for
Rural Youth
58 E-Content Development ii Yes Tamil Nadu Chennai 1,046,093 Yes
for Skills Development
Training Institutes for
Rural Youth
59 Providing Skill Training to ii Yes New Delhi New Delhi 174,999 No NIIT Foundation CSR00000621
Youth on Data Entry
60 Blood Donation Camp i Yes Orissa Bhubaneswar 160,529 Yes
61 Support for Education to ii Yes New Delhi New Delhi 947,636 No Adharshila CSR00008054
Vulnerable Children
62 Mobility Aids and i Yes Maharashtra Pune 1,200,000 No Bharat Vikash CSR00004408
Mainstreaming Parishad
63 Skill Development ii Yes West Bengal Kolkata 1,001,032 No Anandan CSR00012653
Programme
64 Skill Development ii Yes West Bengal Kolkata 353,600 No Disha CSR00000237
Programme Foundation
65 Vocational Training for ii Yes West Bengal Kolkata 1,642,993 No Cathedral Relief CSR00011146
Women Services
66 Blood Donation i Yes West Bengal Kolkata 484,992 No Association of CSR00014736
Awareness and Camp, Voluntary Blood
Kolkata Donor
67 Providing Educational Kits ii Yes Gujarat Surat 9,450,970 Yes
68 Rural Health Support i Yes Gujarat Surat 800,000 Yes
69 HIV Aids Awareness i Yes Gujarat Surat 697,002 No Gujarat State CSR00011799
Prevention and Support Network of
People Living
With HIV+
(Gsnp+)

330
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Item from Mode of Implementation -

Local Location of the project. Amount spent Mode of
the list of Through Implementing Agency
Sl. area in the current Implementa
Name of the Project. activities in
No. (Yes/ financial Year tion - Direct CSR
Schedule VII to
No). State District (in R) (Yes/No). Name (NGO) Registration
the Act.
number
70 HIV Aids Awareness i Yes Gujarat Surat 876,998 Yes
Prevention and Support
System
71 ‘Aadhaar’- Skill Building ii Yes Gujarat Surat 448,778 No Laxi Care CSR00011414
for Community Women Foundation
72 Skill Building for ii Yes Gujarat Surat 1,216,373 Yes
Community Women
73 Health and Hygiene i Yes Gujarat Surat 603,747 Yes
Programme for Adolescent
Health Awareness
74 Awareness and ii Yes Gujarat Surat 177,576 Yes
Engagement with
Community
75 Support to Community ii Yes Gujarat Surat 804,884 Yes
Development Centre
at Mora
76 Providing Educational Kits ii Yes Gujarat Surat 2,505,976 Yes
77 Alternate Energy for iv Yes Gujarat Surat 7,500,000 Yes
Schools
78 Maintenance of Public iv Yes Gujarat Surat 2,614,559 Yes
Green Spaces
79 Providing Digital ii Yes Gujarat Surat 15,189,479 Yes
Classrooms in Schools
80 Awareness Programme ii Yes Gujarat Vadodara 55,198 Yes
and Engagement with
Community
81 Skills Development ii Yes Telangana Mahbubnagar 33,662,731 Yes
Training for Rural Youth,
Jadcherla
82 Skills Development ii Yes Gujarat Ahmedabad 32,400,000 Yes
Training for Rural Youth,
Ahmedabad
83 Awareness and Cancer i Yes Kerala Kannur 974,989 No Malabar Cancer CSR00025434
Detection Care Society
84 Repairs to Infrastructure ii Yes Uttar Pradesh Saharanpur, Chandauli, Janupur and 1,216,000 Yes
Facilities in School GB Nagar
85 Repairs to Infrastructure ii Yes West Bengal Kolkata 1,000,000 Yes
Facilities in School
86 Repairs to Infrastructure ii Yes Haryana Gurgaon and Nuh 239,250 Yes
Facilities in School
87 Skills Development ii Yes Tamil Nadu Kanchipuram 34,189,274 Yes
Training for Rural Youth,
Kanchipuram
88 Skills Development ii Yes Maharashtra Raigad 42,612,437 Yes
Training for Rural Youth,
Panvel
89 Skills Development ii Yes Uttar Pradesh Hapur 37,999,053 Yes
Training for Rural Youth,
Pilkhuwa
90 Repairs to Infrastructure ii Yes Maharashtra Raigad 1,069,670 Yes
Facilities in School
91 Renovation of Community x Yes Maharashtra Raigad 1,002,113 Yes
Center at Belpada Village

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Item from Mode of Implementation -

Local Location of the project. Amount spent Mode of
the list of Through Implementing Agency
Sl. area in the current Implementa
Name of the Project. activities in
No. (Yes/ financial Year tion - Direct CSR
Schedule VII to
No). State District (in R) (Yes/No). Name (NGO) Registration
the Act.
number
92 Skills Development ii Yes Orissa Cuttack 32,720,312 Yes
Training for Rural Youth,
Cuttack
93 Construction Skill Training ii Yes Karnataka Bangalore 40,063,796 Yes
Institute for Rural Youth,
Attibelle
94 Infrastructure ii Yes Orissa Nabarangupr 2,811,411 Yes
Development and Wash
Facilities and Awareness
at Government Schools
95 Infrastructure ii Yes West Bengal Medinipur 979,637 Yes
Development at
Government Schools
96 Infrastructure ii Yes Jharkhand Hazaribagh 773,000 Yes
Development at
Government Schools
97 Infrastructure ii Yes Rajasthan Tonk 2,122,760 Yes
Development (Wash
Facilities and Solar Power
System) at Government
Schools
98 Infrastructure ii Yes Madhya Pradesh Singrauli 497,000 Yes
Development (Solar Power
System, Wash Facilities
and Awareness) at
Government Schools
99 Infrastructure ii Yes Haryana Faridabad 300,000 Yes
Development (Wash
Facilities and Awareness)
at Government Schools
100 Infrastructure ii Yes Chhattisgarh Bastar 178,416 Yes
Development (Solar Power
System) at Government
Schools
101 Infrastructure ii Yes Maharashtra Satara 452,950 Yes
Development (Solar Power
System) at Government
Schools
102 Infrastructure ii Yes New Delhi New Delhi 269,800 Yes
Development (Solar Power
System) in Community
103 Infrastructure ii Yes Bihar Patna 879,997 Yes
Development at
Government Schools
104 Infrastructure ii Yes Karnataka Belagavi 345,572 Yes
Development (Wash
Facilities and Awareness)
at Government Schools
105 Infrastructure ii Yes Orissa Sonepur 275,941 Yes
Development at
Government Schools
106 Infrastructure ii Yes Telangana Medchal-Malkajgiri 147,500 Yes
Development at
Government Schools

332
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Item from Mode of Implementation -

Local Location of the project. Amount spent Mode of
the list of Through Implementing Agency
Sl. area in the current Implementa
Name of the Project. activities in
No. (Yes/ financial Year tion - Direct CSR
Schedule VII to
No). State District (in R) (Yes/No). Name (NGO) Registration
the Act.
number
107 Infrastructure ii Yes Madhya Pradesh Shivpuri 763,694 Yes
Development at
Government Schools
108 Infrastructure ii Yes Rajasthan Jhunjhunu 206,500 Yes
Development at
Government Schools
109 Infrastructure ii Yes Tamil Nadu Tiruvarur 276,000 Yes
Development at
Government Schools
110 Basic Infrastructure ii Yes Tamil Nadu Namakkal 3,500,000 Yes
Upgradation in
Government School
111 Basic Infrastructure ii Yes Maharashtra Pune 2,500,000 Yes
Upgradation in
Government School
112 Skills Development ii Yes Telangana Ranga Reddy 9,800,330 Yes
Training for Rural Youth,
Hyderabad
113 Infrastructure and ii Yes Tamil Nadu Coimbatore 6,952,188 Yes
Learning Enhancement
Programme in Government
Schools
114 Maintenance of Public iv Yes Maharashtra Pune 396,602 Yes
Green Spaces
115 Multi Skill Training Center ii Yes Andhra Pradesh Visakhapatnam 9,684,550 No TATA Strive CSR00002739
for Rural Youth
116 Water Conservation i Yes Tamil Nadu Coimbatore 2,482,043 No Community CSR00001346
Initiatives for Community Organisation
for Oppressed
and Depressed
Upliftment
117 Wash Facilities for Schools ii Yes Tamil Nadu Coimbatore 4,476,454 Yes
118 Education Support for ii Yes Andhra Pradesh Visakhapatnam 1,055,401 No The Ability CSR00007686
Special Children People
119 Maintenance of Public iv Yes Andhra Pradesh Visakhapatnam 264,974 Yes
Green Spaces
120 Awareness Programme ii Yes Tamil Nadu Coimbatore 45,770 Yes
and Engagement with
Community
121 Education Development ii Yes Maharashtra Mumbai 4,000,000 No Pratham CSR00000751
Programme Mumbai
Education
Initiatives
122 Education Development ii Yes Gujarat Vadodara 3,500,000 No Pratham CSR00000258
Programme, Vadodara Education
Foundation
123 STEM education project in ii Yes Gujarat Vadodara 1,466,890 No American India CSR00001977
urban schools Foundation
124 Personality development ii Yes Maharashtra and Mumbai and Chennai 4,500,000 No Pragatee CSR00002852
and life skills programme Tamil Nadu Foundation
for children 'Just for
Kicks', Mumbai
125 School on Wheels ii Yes Gujarat Vadodara 500,000 No VYOM CSR00000742
Education support for
children

333
Integrated Annual Report 2021-22 Annexure to the Board Report

Item from Mode of Implementation -

Local Location of the project. Amount spent Mode of
the list of Through Implementing Agency
Sl. area in the current Implementa
Name of the Project. activities in
No. (Yes/ financial Year tion - Direct CSR
Schedule VII to
No). State District (in R) (Yes/No). Name (NGO) Registration
the Act.
number
126 Infrastructure support to ii Yes Tamil Nadu Tiruvallur 395,992 Yes
school
127 Health and Nutrition at i Yes Maharashtra Thane 2,000,000 No Children of the CSR00003131
Child Care Centre World India
Trust
128 Primary health care i Yes Maharashtra Mumbai 1,500,000 No Swasth CSR00007444
programme Foundation
129 Early dignostic career i Yes Maharashtra Mumbai 2,000,000 No Prafulta CSR00007755
guidance for school
children
130 Infrastructure support for i Yes Tamil Nadu Tiruvallur 1,940,309 Yes
PHC, Minjur
131 Community development x Yes Maharashtra Palghar 6,000,000 No Aga Khan CSR00001277
for water and sanitation Agnecy For
Program Habitat India
132 Village Development x Yes Gujarat Vadodara 3,576,000 No VYOM CSR00000742
Program
133 Water Management x Yes Rajasthan Barmer 4,324,530 No Arpan Seva CSR00000826
Initiatives Sansthan
134 Wastewater Treatment, iv Yes Gujarat Vadodara 4,530,000 Yes
Alva village
135 Providing drinking water i Yes Tamil Nadu Tiruvallur 1,086,721 Yes
facilities
136 Plastic Recyclothon iv Yes Maharashtra Mumbai 2,000,000 No Project Mumbai CSR00015484
137 Village Development ii Yes Gujarat Vadodara 3,000,000 No Ahmedabad CSR00000709
Programme Women's Action
Group - AWAG
138 Infrastructure support for ii Yes Tamil Nadu Tiruvallur 509,999 Yes
skilling
139 Infrastructure for COVID i Yes Punjab, Bihar and Bathinda, Begusarai and Surat 5,626,319 Yes
relief Gujarat
140 Oxygen Augmentation - i Yes Tamil Nadu Tiruvallur 549,779 Yes
PSA Oxygen Unit Civil and
electric work
141 Health infrastructure i Yes Tamil Nadu and Tiruvallur and Surat 3,581,298 Yes
support Gujarat
142 Oxygen Augmentation - i Yes Gujarat, Rajasthan Surat, Barmer and Tiruvallur 30,948,356 Yes
PSA Oxygen Generation and Tamil Nadu
Unit
143 Covid-19 Vaccination i Yes Maharashtra Mumbai 1,000,000 No Project Mumbai CSR00015484
Total 1,290,487,087

334
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

EXHIBIT - B
Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

1 15th May 238,212,459 1. SSG Hospital, Vadodara, Gujarat - 390001 Oxygen Generating 1. SSG Hospital, Vadodara, Gujarat
2021 to 27th Plants - 390001
September 2021 2. MG General Hospital, Navsari, Gujarat 2. MG General Hospital, Navsari, Gujarat
- 396445 - 396445
3. 1200 Bed Civil Hospital, Asarwa, 3. 1200 Bed Civil Hospital, Asarwa,
Ahmedabad, Gujarat - 380016 Ahmedabad, Gujarat - 380016
4. Maharishi Valmiki Hospital, Puth Khurd 4. Maharishi Valmiki Hospital, Puth Khurd
Village, New Delhi, Delhi - 110039 Village, New Delhi, Delhi - 110039
5. Guru Gorak Nath Hospital, Gorakhpur, 5. Guru Gorak Nath Hospital, Gorakhpur,
Uttar Pradesh - 273015 Uttar Pradesh - 273015
6. Acharya Shree Bhikshu Hospital, Moti 6. Acharya Shree Bhikshu Hospital, Moti
Nagar, New Delhi, Delhi - 110015 Nagar, New Delhi, Delhi - 110015
7. KC General Hospital, Bengaluru, 7. KC General Hospital, Bengaluru,
Karnataka - 560003 Karnataka - 560003
8. ESI Hospital, Singanallur, Coimbatore 8. ESI Hospital, Singanallur, Coimbatore
- 641015 - 641015
9. Nirali Hospital, Navsari, Gujarat - 396463 9. Nirali Hospital, Navsari, Gujarat - 396463
10. Karnataka Institute of Medical Sciences, 10. Karnataka Institute of Medical Sciences,
KIMS Hospital, KIMS Campus, PB Road, KIMS Hospital, KIMS Campus, PB Road,
Vidya Nagar, Hubli, Karnataka - 580022 Vidya Nagar, Hubli, Karnataka - 580022
11. BIMS Hospital, Belagavi, Karnataka 11. BIMS Hospital, Belagavi, Karnataka
- 590001 - 590001
12. Gulbarga Institute of Medical Science, 12. Gulbarga Institute of Medical Science,
Veeresh Nagar Cross, Sedam Road, Behind Veeresh Nagar Cross, Sedam Road,
MRMC, Kuvempu Nagar, Gulbarga, Behind MRMC, Kuvempu Nagar,
Karnataka - 585101 Gulbarga, Karnataka - 585101

13. Mahatma Gandhi Health Centre, 13. Mahatma Gandhi Health Centre,
Lucknow, Uttar Pradesh - 226028 Lucknow, Uttar Pradesh - 226028

14. Government Medical College and 14. Government Medical College and
Hospital, Kundunkulam, Radhapuram, Hospital, Kundunkulam, Radhapuram,
Tirunelveli, Tamil Nadu - 627106 Tirunelveli, Tamil Nadu - 627106

15. Chengalpattu Medical College, VOC 15. Chengalpattu Medical College, VOC
Nagar, Chengalpattu, Tamil Nadu Nagar, Chengalpattu, Tamil Nadu
- 603001 - 603001

16. Railway Hospital, Ajmer, Rajasthan 16. Railway Hospital, Ajmer, Rajasthan
- 305001 - 305001

17. DCHC Government Hospital, Sundargarh, 17. DCHC Government Hospital,

Odisha - 770001 Sundargarh, Odisha - 770001

18. 100 Bed Hospital, Maurawan, Uttar 18. 100 Bed Hospital, Maurawan, Uttar
Pradesh - 209821 Pradesh - 209821

335
Integrated Annual Report 2021-22 Annexure to the Board Report

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

19. LG Hospital, Maninagar, Ahmedabad, 19. LG Hospital, Maninagar, Ahmedabad,

Gujarat - 380008 Gujarat - 380008
20. Government Hospital, Anakapalle, Andhra 20. Government Hospital , Anakapalle,
Pradesh - 531001 Andhra Pradesh - 531001
21. State General Hospital Habra, Habra, 21. State General Hospital Habra, Habra,
West Bengal - 743263 West Bengal - 743263
22. IRT Perundurai, Government Erode 22. IRT Perundurai, Government Erode
Medical College, Kunnathur Road, Medical College, Kunnathur Road,
Perundurai, Tamil Nadu - 638053 Perundurai, Tamil Nadu - 638053
23. Atal Bihari Government Hospital, Haryana 23. Atal Bihari Government Hospital,
- 121004 Haryana - 121004
24. RIMS, Adilabad, Telangana - 504001 24. RIMS, Adilabad, Telangana - 504001
25. COVID Hospital, Budhni, Madhya 25. COVID Hospital, Budhni, Madhya
Pradesh - 466445 Pradesh - 466445
26. BMO Civil Hospital Hamirpur, Tauni Devi, 26. BMO Civil Hospital Hamirpur, Tauni
Himachal Pradesh - 177023 Devi, Himachal Pradesh - 177023
27. Government Head Quarters Hospital, 27. Government Head Quarters Hospital,
Railway Road, Kanchipuram, Railway Road, Kanchipuram,
Tamil Nadu - 607001 Tamil Nadu - 607001
28. Women’s Hospital, Gadchiroli, 28. Women’s Hospital, Gadchiroli,
Maharashtra - 442605 Maharashtra - 442605
2 27th October 441,260 L&T Community Welfare Association - L & T 1. Epson L805 Printer, 1. L&T Andheri Health Center, Gundavali,
2021 to House, N M Marg, Ballard Estate, Mumbai, Double Piston Andheri East, Mumbai,
28th March 2022 Maharashtra - 400001 Compressor with Maharashtra - 400093
accessories and
microwave oven solo.
2. Haier Smart Television 2. MSTC, Plot No. D-11, B - Block, Auto
(43 Inch), HP Printer Nagar, Visakhapatnam, Andhra
329DW, Argon Pradesh - 530012
Cylinders, Oxygen
Cylinders, DA
Cylinders, Power
Hacksaw (Model:
Ashu), Double
Ended Pedestral
Grinder, Pipe Bending
Machine and
Differential Chain
Block
3 22nd May 2021 949,760 1. Government Medical College Hospital, Oxygen Concentrator(s) 1. Government Medical College Hospital,
Tirunelveli, Tamil Nadu - 627011 (5 LPM) Tirunelveli, Tamil Nadu - 627011
2. Government Rajaji Hospital, Madurai, 2. Government Rajaji Hospital, Madurai,
Tamil Nadu - 625020 Tamil Nadu - 625020
3. Government Hospital (Covid Care Center), 3. Government Hospital (Covid Care
Banda Belai, Sagar, Madhya Center), Banda Belai, Sagar, Madhya
Pradesh - 470335 Pradesh - 470335
4. Primary Health Centre, Arisipalayam, 4. Primary Health Centre, Arisipalayam,
Madukkarai Block, Coimbatore, Madukkarai Block, Coimbatore, Tamil
Tamil Nadu - 641032 Nadu - 641032

336
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

4 31st May 2021 15,480,950 1. Government Medical College Hospital, Oxygen Concentrator(s) 1. Government Medical College Hospital,
Ramamoorthy Road, Annanagar, (10 LPM) Ramamoorthy Road, Annanagar,
Virudhunagar, Tamil Nadu - 626001 Virudhunagar Tamil Nadu - 626001
2. Government Thoothukudi Medical 2. Government Thoothukudi Medical
College Hospital, Thoothukudi, Tamil College Hospital, Thoothukudi, Tamil
Nadu - 628008 Nadu - 628008
3. Samudayik Swasthya Kendra, 3. Samudayik Swasthya Kendra,
Khargapur, Tikamgarh, Madhya Khargapur, Tikamgarh, Madhya
Pradesh - 472115 Pradesh - 472115
4. Samudayik Swasthya Kendra, Palera, 4. Samudayik Swasthya Kendra, Palera,
Tikamgarh, Madhya Pradesh - 472221 Tikamgarh, Madhya Pradesh - 472221
5. Chitaguppi Hospital, Lamington Road, 5. Chitaguppi Hospital, Lamington Road,
Hubli, Karnataka - 580020 Hubli, Karnataka - 580020
6. Karnataka Power Transmission 6. Karnataka Power Transmission
Corporation Limited, Hoodi, Bengaluru, Corporation Limited, Hoodi, Bengaluru,
Karnataka - 560048 Karnataka - 560048
7. Chitaguppi Hospital, Lamington Road, 7. Chitaguppi Hospital, Lamington Road,
Hubli, Karnataka - 580020 Hubli, Karnataka - 580020
8. Samudayik Swasthya Kendra, Bhim, 8. Samudayik Swasthya Kendra, Bhim,
Rajasthan - 305921 Rajasthan - 305921
9. Superintendant of Police, Tenkasi, Tamil 9. Superintendant of Police, Tenkasi, Tamil
Nadu - 627811 Nadu - 627811
10. Ahmedabad Municipal Corporation, 10. Ahmedabad Municipal Corporation,
Central Medical Store, Ahmedabad, Central Medical Store, Ahmedabad,
Gujarat - 380022 Gujarat - 380022
11. Andaman and Nicobar Administration, 11. Andaman and Nicobar Administration,
Secretariat, Port Blair -744101 Secretariat, Port Blair -744101
12. Government Taluk Hospital, 12. Government Taluk Hospital,
Oddanchatram, Tamil Nadu - 624619 Oddanchatram, Tamil Nadu - 624619

5 14th May 2021 9,660,000 1. District Government Hospital Dharwad, ICU Ventilator(s) 1. District Government Hospital Dharwad,
Killa, Dharwad, Karnataka - 580008 Killa, Dharwad, Karnataka - 580008
2. GIMS Hospital, Gulbarga, 2. GIMS Hospital, Gulbarga,
Karnataka - 585105 Karnataka - 585105
3. Military Hospital, Jutogh, Shimla, 3. Military Hospital, Jutogh, Shimla,
Himachal Pradesh - 171008 Himachal Pradesh - 171008
4. Government Rajaji Hospital, Medical 4. Government Rajaji Hospital, Medical
College Bus Stop, Madurai, College Bus Stop, Madurai,
Tamil Nadu - 625020 Tamil Nadu - 625020
5. Government Medical College Hospital, 5. Government Medical College Hospital,
Ramamoorthy Road, Annanagar, Ramamoorthy Road, Annanagar,
Virudhunagar, Tamil Nadu – 626001 Virudhunagar, Tamil Nadu - 626001
6. Thoothukudi Medical College Hospital, 6. Thoothukudi Medical College Hospital,
Behind Rajaji Park, Thoothukudi, Tamil Behind Rajaji Park, Thoothukudi, Tamil
Nadu - 628003 Nadu - 628003
7. Government Medical College Hospital, 7. Government Medical College Hospital,
Tirunelveli, Tamil Nadu - 627011 Tirunelveli, Tamil Nadu - 627011

337
Integrated Annual Report 2021-22 Annexure to the Board Report

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

6 14th May 2021 1,428,000 1. Government Rajaji Hospital, Medical Mobile X-Ray Units 1. Government Rajaji Hospital, Medical
to 15th May College Bus Stop, Madurai, Tamil Nadu College Bus Stop, Madurai,
2021 - 625020 Tamil Nadu - 625020
2. Government Medical College Hospital, 2. Government Medical College Hospital,
Ramamoorthy Road, Annanagar, Ramamoorthy Road, Annanagar,
Virudhunagar, Tamil Nadu - 626001 Virudhunagar, Tamil Nadu - 626001
3. Thoothukudi Medical College Hospital, 3. Thoothukudi Medical College Hospital,
Behind Rajaji Park, Thoothukudi, Tamil Behind Rajaji Park, Thoothukudi, Tamil
Nadu - 628003 Nadu - 628003
4. Government Medical College Hospital, 4. Government Medical College Hospital,
Tirunelveli, Tamil Nadu - 627011 Tirunelveli, Tamil Nadu - 627011

7 29th May 2021 15,733,899 1. (a) Samudayik Swasthya Kendra, Khalwa 1. Force Traveller T1 1. (a) Samudayik Swasthya Kendra,
District, Khandwa, Madhya Pradesh - Ambulance (Type B) Khalwa District, Khandwa, Madhya
450117 Pradesh - 450117
(b) Samudayik Swasthya Kendra, Harsud (b) Samudayik Swasthya Kendra,
District, Khandwa, Madhya Pradesh Harsud District, Khandwa, Madhya
- 450116 Pradesh - 450116

2. Forest Department, Satpura Bhawan, 2. Force Trax Crusier 2. Forest Department, Satpura Bhawan,
Arera Hills, Bhopal, Madhya Pradesh Ambulance (AC) Arera Hills, Bhopal, Madhya Pradesh
- 462004 (Type B) - 462004
3. Vidya Foundation, B-16, Panchsheel 3. Force Trax Cruiser 3. Vidya Foundation, B-16, Panchsheel
Enclave, New Delhi - 110017 Ambulance Enclave, New Delhi - 110017

8 1st November 2,700,000 1. Head Teacher, Government Higher Rain water harvesting 1. Government Higher Secondary School,
2021 Secondary School, Alapakkam, structures Alapakkam, Chennai - 600116
Chennai - 600116
2. Villivakkam Panchayat Union Middle 2. Villivakkam Panchayat Union Middle
School, Poothapedu, Chennai - 600089 School, Poothapedu, Chennai - 600089
3. Government Girls Higher Secondary 3. Government Girls Higher Secondary
School, Chinna Porur, Chennai - 600116 School, Chinna Porur, Chennai
- 600116
4. Government Higher Secondary School, 4. Government Higher Secondary School,
Mettukuppam, Chennai - 600097 Mettukuppam, Chennai - 600097

9 1st July 2021 774,080 Chairman, Indian Red Cross Society, Tamil Deep freezer equipment Indian Red Cross Society, Tamil Nadu
Nadu State Branch, Red Cross Building, 32, State Branch, Red Cross Building, 32,
Montieth Road, Egmore, Chennai, Tamil Montieth Road, Egmore, Chennai, Tamil
Nadu - 600008 Nadu - 600008

10 1st May 2021 2,500,000 Commissioner, Greater Chennai Corporation, Oxygen Concentrator Greater Chennai Corporation, Rippon
Rippon Bulding, Chennai, Tamil Nadu Bulding, Chennai, Tamil Nadu - 600003
- 600003

11 17th January 162,000 The Headmistress, Rajyadharpur Girls High Water purifier, ceiling Rajyadharpur Girls High School, Village
2022 School, Village Rajyadharpur, Serampore, fans and almirah Rajyadharpur, Serampore, Hooghly, West
Hooghly, West Bengal - 712201 Bengal - 712201

12 14th December 433,000 The Principal, Serampore Girls' College, 13 Smart class room set up Serampore Girls' College, 13 T. C.
2021 T. C. Goswami Street, Serampore, Hooghly, Goswami Street, Serampore, Hooghly,
West Bengal - 712201 West Bengal - 712201

13 17th January 115,000 Teacher In-charge, Bora Girls' Primary School, Computers and printer Bora Girls' Primary School, Village Bora,
2022 Village Bora, Hoogly, West Bengal - 712306 Hoogly, West Bengal - 712306

338
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

14 17th February 6,490,645 1. L. D. High School, Patelnagar, Plot No. 9, Solar Power Generation 1. L. D. High School, Patelnagar, Plot No.
2022 to 19th Station Road, Raj Nagar, Sachin, Surat, Systems 9, Station Road, Raj Nagar, Sachin,
March 2022 Gujarat - 394230 Surat, Gujarat - 394230
2. Sanskar Bharti Vidhyalaya Bhadol, Bhadol, 2. Sanskar Bharti Vidhyalaya Bhadol,
Olpad, Surat, Gujarat - 394540 Bhadol, Olpad, Surat, Gujarat - 394540
3. Navjivan Vidhyalaya, Karanj, Olpad, Surat, 3. Navjivan Vidhyalaya, Karanj, Olpad,
Gujarat - 394530 Surat, Gujarat - 394530
4. Gyandeep Vidhyalaya, Abhwa, Surat, 4. Gyandeep Vidhyalaya, Abhwa, Surat,
Gujarat - 395007 Gujarat - 395007
5. Mor High School, Mor, Olpad, Surat, 5. Mor High School, Mor, Olpad, Surat,
Gujarat - 394530 Gujarat - 394530
6. J. R. Patel Takarama High School, 6. J. R. Patel Takarama High School,
Takarama, Olpad, Surat, Takarama, Olpad, Surat,
Gujarat - 394540 Gujarat - 394540
7. Sharda Vidyalaya Ichhapore, Near 2nd 7. Sharda Vidyalaya Ichhapore, Near 2nd
Bus Stop, Hazira Road, Ichhapore, Surat, Bus Stop, Hazira Road, Ichhapore,
Gujarat - 394510 Surat, Gujarat - 394510
8. Arts and Commerce College, Olpad, 8. Arts and Commerce College,
Hathisa, Block No. 233, Olpad, Hathisa, Block No. 233, Near
Near Government ITI, Surat, Government ITI, Surat,
Gujarat - 394540 Gujarat - 394540
9. Aashram Shala Ajarai, Ajarai, Gandevi, 9. Aashram Shala Ajarai, Ajarai, Gandevi,
Navsari, Gujarat - 396360 Navsari, Gujarat - 396360
10. Aashram Shala Tejlav, Tejlav, Chikhli, 10. Aashram Shala Tejlav, Tejlav, Chikhli,
Navsari, Gujarat - 396521 Navsari, Gujarat - 396521
11. Aashram Shala Kalai, Kalai, Umergam, 11. Aashram Shala Kalai, Kalai, Umergam,
Valsad, Gujarat - 396105 Valsad, Gujarat - 396105
12. Aashram Shala Karambela, Karambela , 12. Aashram Shala Karambela, Karambela ,
Umergam, Valsad, Gujarat - 396105 Umergam, Valsad, Gujarat - 396105
13. Aashram Shala Sonvada, Fakira Faliya via 13. Aashram Shala Sonvada, Fakira Faliya
Dungri, Sonvada, Valsad, via Dungri, Sonvada, Valsad,
Gujarat - 396375 Gujarat - 396375

15 29th June 2021 10,000,000 1. Ambetha Primary School, Ambhetha, Interactive Flat Panel (IFP) 1. Ambetha Primary School, Ambhetha,
to 14th February Olpad, Surat, Gujarat - 395005 Digital System Olpad, Surat, Gujarat - 395005
2022 2. Mayur Dhwaj Vidhaylaya, Mora Village, 2. Mayur Dhwaj Vidhaylaya, Mora Village,
Near Gram Panchayat, Choryashi, Surat, Near Gram Panchayat, Choryashi,
Gujarat - 394510 Surat, Gujarat - 394510
3. Mora Primary School, Mora Village, 3. Mora Primary School, Mora Village,
Near Gram Panchayat, Choryashi, Surat, Near Gram Panchayat, Choryashi,
Gujarat - 394510 Surat, Gujarat - 394510
4. Damka Primary School, Damka, 4. Damka Primary School, Damka, Hazira
Hazira Road, Choryashi, Surat, Road, Choryashi, Surat,
Gujarat - 394517 Gujarat - 394517
5. Kudiyana Primary School, Kudiyana 5. Kudiyana Primary School, Kudiyana
Village, Olpad, Surat, Gujarat - 394540 Village, Olpad, Surat, Gujarat - 394540
6. Mor Tunda Primary School, Mor Tunda 6. Mor Tunda Primary School, Mor Tunda
Village, Olpad, Surat, Gujarat - 394530 Village, Olpad, Surat, Gujarat - 394530

339
Integrated Annual Report 2021-22 Annexure to the Board Report

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

7. Dhansher Primary School, Dhanser, Olpad, 7. Dhansher Primary School, Dhanser,

Surat, Gujarat - 395005 Olpad, Surat, Gujarat - 395005
8. Tena ni Rang Primary School, Tena ni 8. Tena ni Rang Primary School, Tena ni
Rang, Olpad, Surat, Gujarat - 395005 Rang, Olpad, Surat, Gujarat - 395005
9. Navchetan Vidhyalay, Junagam, Suvali, 9. Navchetan Vidhyalay, Junagam, Suvali,
Choryasi, Surat, Gujarat - 394510 Choryasi, Surat, Gujarat - 394510
10. Sharda Vidhyalaya, Irchhapor, 10. Sharda Vidhyalaya, Irchhapor,
Second Bus Stop, Choryasi, Surat, Second Bus Stop, Choryasi, Surat,
Gujarat - 394510 Gujarat - 394510
11. Sarvodaya Vidhyalaya, Segvachama, 11. Sarvodaya Vidhyalaya, Segvachama,
Olpad, Surat, Gujarat - 395009 Olpad, Surat, Gujarat - 395009
12. Dandi Road, Lavachha, Olpad, Surat, 12. Dandi Road, Lavachha, Olpad, Surat,
Gujarat - 394540 Gujarat - 394540
13. MRC High School, Dihen, Olpad, Surat, 13. MRC High School, Dihen, Olpad, Surat,
Gujarat - 395005 Gujarat - 395005

14. MSV, Olpad, Karanj Road, Surat, Gujarat 14. MSV, Olpad, Karanj Road, Surat,
- 394540 Gujarat - 394540
15. L. D. High School, Patelnagar, Plot No. 9, 15. L. D. High School, Patelnagar, Plot No.
Station Road, Raj Nagar, Sachin, Surat, 9, Station Road, Raj Nagar, Sachin,
Gujarat - 394230 Surat, Gujarat - 394230
16. Vaghecha Ashram Shala, Vaghecha, Near 16. Vaghecha Ashram Shala, Vaghecha,
Shiv Mandir, Vaghecha Kadod, Bardoli, Near Shiv Mandir, Vaghecha Kadod,
Surat, Gujarat - 394355 Bardoli, Surat, Gujarat - 394355
17. Timba Aashramshala, Timba, 17. Timba Aashramshala, Timba,
Chhaprabhatha Road, Tadwadi, Surat, Chhaprabhatha Road, Tadwadi, Surat,
Gujarat - 394520 Gujarat - 394520
18. Puni Aashramshala, Puni, Palsana, Surat, 18. Puni Aashramshala, Puni, Palsana,
Gujarat - 394352 Surat, Gujarat - 394352
19. Amalsadi Aashram Shala, Amalsadi, 19. Amalsadi Aashram Shala, Amalsadi,
Palsana, Surat, Gujarat - 394350 Palsana, Surat, Gujarat - 394350
20. Gandhighar, Kaccholi, Amalsad, Gandevi, 20. Gandhighar, Kaccholi, Amalsad,
Navsari, Gujarat - 396370 Gandevi, Navsari, Gujarat - 396370
21. Lok Bharti School, Opposite Terapanth 21. Lok Bharti School, Opposite Terapanth
Bhavan, Inside Ashok Pan Street, City light Bhavan, Inside Ashok Pan Street, City
Road, Surat, Gujarat - 395007 light Road, Surat, Gujarat - 395007
22. Government Girls School, Pali, Nana, 22. Government Girls School, Pali, Nana,
Rajasthan Rajasthan
23. L. D. Engineering College, 120, Circular 23. L. D. Engineering College, 120, Circular
Road, University Area, Ahmedabad, Road, University Area, Ahmedabad,
Gujarat - 380015 Gujarat - 380015

340
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

16 26th August 4,059,746 1. MSV, Olpad, Karanj Road, Olpad, Surat, Education Software 1. MSV, Olpad, Karanj Road, Olpad, Surat,
2021 to 7th Gujarat - 394540 - Mynet School by Gujarat - 394540
March 2022 2. Z.M. Patel High school, Lavaccha Village, Mediapro 2. Z.M. Patel High school, Lavaccha
Dandi Road, Olpad, Surat, Village, Dandi Road, Olpad, Surat,
Gujarat - 394540 Gujarat - 394540
3. Vaghecha Ashram Shala, Vaghecha, Near 3. Vaghecha Ashram Shala, Vaghecha,
Shiv Mandir, Vaghecha Kadod, Bardoli, Near Shiv Mandir, Vaghecha Kadod,
Surat, Gujarat - 394355 Bardoli, Surat, Gujarat - 394355
4. Sharda Vidyalaya Ichhapore, Near 2nd 4. Sharda Vidyalaya Ichhapore, Near 2nd
Bus Stop, Hazira Road, Ichhapore, Surat, Bus Stop, Hazira Road, Ichhapore,
Gujarat - 394510 Surat, Gujarat - 394510
5. Dhansher Primary School, Dhanser, Olpad, 5. Dhansher Primary School, Dhanser,
Surat, Gujarat - 395005 Olpad, Surat, Gujarat - 395005
6. Tena ni Rang Primary School, Tena ni 6. Tena ni Rang Primary School, Tena ni
Rang, Olpad, Surat, Gujarat - 395005 Rang, Olpad, Surat, Gujarat - 395005
7. Bhandut Primary School, Bhandut, Olpad, 7. Bhandut Primary School, Bhandut,
Surat, Gujarat - 395005 Olpad, Surat, Gujarat - 395005
8. Lavachha Primary School, Lavaccha 8. Lavachha Primary School, Lavaccha
Village, Dandi Road, Olpad, Surat, Village, Dandi Road, Olpad, Surat,
Gujarat - 394540 Gujarat - 394540
9. Asnaad High School, Asnaad, Olpad, 9. Asnaad High School, Asnaad, Olpad,
Surat, Gujarat - 394540 Surat, Gujarat - 394540
10. Sanskar Bharti Vidhyalaya, Village - 10. Sanskar Bharti Vidhyalaya, Village -
Bhadol, Olpad, Surat, Gujarat - 394530 Bhadol, Olpad, Surat, Gujarat - 394530
11. MRC High School, Dihen, Olpad, Surat, 11. MRC High School, Dihen, Olpad, Surat,
Gujarat - 395005 Gujarat - 395005
12. Barbodhan Primary School, Barbodhan, 12. Barbodhan Primary School, Barbodhan,
Olpad, Surat, Gujarat - 395005 Olpad, Surat, Gujarat - 395005
13. Sondha Meetha Aashramshala, 13. Sondha Meetha Aashramshala,
Sonda Meetha, Olpad, Surat, Sonda Meetha, Olpad, Surat,
Gujarat - 394540 Gujarat - 394540
14. Jawahar Vidhyalyay, Saniya Kande, 14. Jawahar Vidhyalyay, Saniya Kande,
Choryashi, Surat, Gujarat - 394210 Choryashi, Surat, Gujarat - 394210
15. Shree Dayalji Kasanji Bhatarkar 15. Shree Dayalji Kasanji Bhatarkar
Vidhyasankul, Shivani Park, Althan, Surat, Vidhyasankul, Shivani Park, Althan,
Gujarat - 395017 Surat, Gujarat - 395017
16. L. D. High School, Patelnagar, Plot No. 9, 16. L. D. High School, Patelnagar, Plot No.
Station Road, Raj Nagar, Sachin, Surat, 9, Station Road, Raj Nagar, Sachin,
Gujarat - 394230 Surat, Gujarat - 394230
17. Nav Chetan Vidhyalaya, Junagam, 17. Nav Chetan Vidhyalaya, Junagam,
Hazira Road, Choryashi, Surat, Hazira Road, Choryashi, Surat,
Gujarat - 394510 Gujarat - 394510
18. R N Naik High School, Udhna, 18. R N Naik High School, Udhna, 214,
214, Ranchod Nagar, Opposite City Ranchod Nagar, Opposite City
Shopping Centre, Udhna, Surat, Shopping Centre, Udhna, Surat,
Gujarat - 934210 Gujarat - 934210
19. Shree J R Patel Takarma Vibhag 19. Shree J R Patel Takarma Vibhag
Madhyamik Shala, Takaram, Olpad, Surat, Madhyamik Shala, Takaram, Olpad,
Gujarat - 394540 Surat, Gujarat - 394540
20. Shree Shidhh Shomeswar Vidhyalay, 20. Shree Shidhh Shomeswar Vidhyalay,
Saras, Olpad, Surat, Gujarat - 394540 Saras, Olpad, Surat, Gujarat - 394540

341
Integrated Annual Report 2021-22 Annexure to the Board Report

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

21. Shree A.V.T Saraswati Vidhyalaya, 21. Shree A.V.T Saraswati Vidhyalaya,
Vadadla, Aerthan Village, Palsana, Surat, Vadadla, Aerthan Village, Palsana,
Gujarat - 394317 Surat, Gujarat - 394317
22. Suvali Primary School, Suvali, Choryashi, 22. Suvali Primary School, Suvali,
Surat, Gujarat - 394517 Choryashi, Surat, Gujarat - 394517
23. Talad High School, Olpad, Surat, 23. Talad High School, Olpad, Surat,
Gujarat - 394540 Gujarat - 394540
24. Kudiyana Primary School, Kudiyana 24. Kudiyana Primary School, Kudiyana
Village, Kudiyana, Olpad, Surat, Village, Kudiyana, Olpad, Surat,
Gujarat - 394540 Gujarat - 394540
25. Mayur Dhwaj Vidhaylaya, Mora Village, 25. Mayur Dhwaj Vidhaylaya, Mora Village,
Near Gram Panchayat, Choryashi, Surat, Near Gram Panchayat, Choryashi,
Gujarat - 394510 Surat, Gujarat - 394510
26. Lok Bharti School, Opposite Terapanth 26. Lok Bharti School, Opposite Terapanth
Bhavan, Inside Ashok Pan Street, City light Bhavan, Inside Ashok Pan Street, City
Road, Surat, Gujarat - 395007 light Road, Surat, Gujarat - 395007
27. Pariya High School, Pardi, Udwada, 27. Pariya High School, Pardi, Udwada,
Valsad, Gujarat - 396180 Valsad, Gujarat - 396180
28. Gandhighar, Kaccholi, Amalsad, Gandevi, 28. Gandhighar, Kaccholi, Amalsad,
Navsari, Gujarat- 396370 Gandevi, Navsari, Gujarat- 396370
29. Asharam Shala, Village - Bilvan, 29. Asharam Shala, Village - Bilvan,
Umarpada, Mandvi, Surat, Umarpada, Mandvi, Surat,
Gujarat - 394445 Gujarat - 394445
30. Asharam Shala, Village - Sathvav, Mandvi, 30. Asharam Shala, Village - Sathvav,
Surat, Gujarat - 394160 Mandvi, Surat, Gujarat - 394160

31. Asharam Shala, Village - Makanjar, 31. Asharam Shala, Village - Makanjar,
Mandvi, Surat, Gujarat - 394160 Mandvi, Surat, Gujarat - 394160
32. Asharam Shala, Village - Limdha, Mandvi, 32. Asharam Shala, Village - Limdha,
Surat, Gujarat - 394440 Mandvi, Surat, Gujarat - 394440
33. Mor High School, Village - Mor, Olpad, 33. Mor High School, Village - Mor, Olpad,
Surat, Gujarat - 394530 Surat, Gujarat - 394530
34. Junagam Primary School, Junagam, 34. Junagam Primary School, Junagam,
Hazira Road, Choryashi, Surat, Hazira Road, Choryashi, Surat,
Gujarat - 394510 Gujarat - 394510
35. Bhatgam Primary School, Bhatgam,Olpad, 35. Bhatgam Primary School, Bhatgam,
Surat, Gujarat - 394540 Olpad, Surat, Gujarat - 394540
36. Mandroi Primary School, Mandroi, Olpad, 36. Mandroi Primary School, Mandroi,
Surat, Gujarat - 394540 Olpad, Surat, Gujarat - 394540
37. Karamla Primary School, Karamla, Olpad, 37. Karamla Primary School, Karamla,
Surat, Gujarat - 394130 Olpad, Surat, Gujarat - 394130
38. The Varad Sarvjanik High School, 38. The Varad Sarvjanik High School,
Rayam, Bardoli, Surat, Rayam, Bardoli, Surat,
Gujarat - 394355 Gujarat - 394355
39. PKD Vidhyalaya, Atar, Valsad, 39. PKD Vidhyalaya, Atar, Valsad,
Gujarat - 396020 Gujarat - 396020
40. Godadhara High School, Godadhra, Surat, 40. Godadhara High School, Godadhra,
Gujarat - 395012 Surat, Gujarat - 395012
41. Kharvasa Asharam Shala, Kharvasa, 41. Kharvasa Asharam Shala, Kharvasa,
Choryashi, Surat, Gujarat - 394355 Choryashi, Surat, Gujarat - 394355

342
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

42. Ambetha Primary School, Ambhetha, 42. Ambetha Primary School, Ambhetha,
Olpad, Surat, Gujarat - 395005 Olpad, Surat, Gujarat - 395005
43. Mora Primary School, Mora Village, 43. Mora Primary School, Mora Village,
Near Gram Panchayat, Choryashi, Surat, Near Gram Panchayat, Choryashi,
Gujarat - 394510 Surat, Gujarat - 394510
44. Damka Primary School, Damka, 44. Damka Primary School, Damka,
Hazira Road, Choryashi, Surat, Hazira Road, Choryashi, Surat,
Gujarat - 394517 Gujarat - 394517
45. Mor Tunda Primary School, Mor Tunda 45. Mor Tunda Primary School, Mor Tunda
Village, Olpad, Surat, Gujarat - 394530 Village, Olpad, Surat, Gujarat - 394530
46. Sarvodaya Vidhyalaya, Segvachama, 46. Sarvodaya Vidhyalaya, Segvachama,
Olpad, Surat, Gujarat - 395009 Olpad, Surat, Gujarat - 395009
47. Timba Aashramshala, Timba, 47. Timba Aashramshala, Timba,
Chhaprabhatha Road, Tadwadi, Surat, Chhaprabhatha Road, Tadwadi, Surat,
Gujarat - 394520 Gujarat - 394520
48. Puni Aashramshala, Puni, Palsana, Surat, 48. Puni Aashramshala, Puni, Palsana ,
Gujarat - 394352 Surat, Gujarat - 394352
49. Amalsadi Aashram Shala, Amalsadi, 49. Amalsadi Aashram Shala, Amalsadi,
Palsana, Surat, Gujarat - 394350 Palsana, Surat, Gujarat - 394350

17 25th January 862,812 1. Rasul Chandkha Pathan, Sajed Babukha Farm Pond 1. Nagzari, Ambad Block, Jalna,
2022 to 11th Pathan, Saber Babukha Pathan, Maharashtra - 431204
March 2022 Subhankha Mahebubkha Pathan,
Moshinali Muktar Pathan, Taher Subhan
Pathan, Abu Bakar Makbul Pathan, Fakir
Imam Shaikh, Altaf Ayyubkha Pathan,
Ramdas Janappa Jadhav, Shahenshaha
Mohamad Sharif Shaikh, Abdul Wahed
Nuruddin Shaikh, Daniyal Sudnyan Nirmal,
Javed Subhan Pathan, Nisar Nijam Pathan
and Khalil Yasin Pathan.
(Residents of Nagzari, Ambad Block, Jalna,
Maharashtra - 431204)

2. Jagannath Kondiba Gund, Tukaram Asruji 2. Chambharwadi, Ambad Block, Jalna,

Dukre, Gafur Shaikh Biban and Shaikh Maharashtra - 431204
Matin Gafur Shaikh.
(Residents of Chambharwadi, Ambad
Block, Jalna, Maharashtra - 431204)

3. Kishor Shivaji Doifode, Raju Bhaurav 3. Village - Antarwali Khandi, Paithan,

Channe, Bhagwan Bhaurao Channe, Aurangabad, Maharashtra - 431107
Pralhad Baburao Shirase, Bhagubai
Pandurang Auti, Sanjivani Bapurav
Pokharkar, Subhash Jadhav, Kishor
Sarjerav Dighule, Sanjay Keshavrav Jadhav,
Dwarakabai Baburav Parande, Bhaurav
Kakasaheb Hande, Ankush Murlidhar
Doifode, Laxman Ravsaheb Hande and
Vaijinath Namdev Doifode.
(Residents of Village - Antarwali Khandi,
Paithan, Aurangabad, Maharashtra
- 431107)

343
Integrated Annual Report 2021-22 Annexure to the Board Report

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

4. Mirabai Ramesh Chavan, Tarabai Gorakh 4. Village - Dabhrul, Paithan, Aurangabad,

Chavan, Gautam Sandu Vahule, Shriram Maharashtra - 431107
Hari Chavan and Gorakh Hari Chavan
(Residents of Village - Dabhrul, Paithan,
Aurangabad, Maharashtra - 431107)

5. Rohidas Balu Rathod, Village - Devgaon 5. Village - Devgaon Tanda, Paithan,

Tanda, Paithan, Aurangabad, Maharashtra Aurangabad, Maharashtra - 431107
– 431107

18 23rd February 1,358,273 Grampanchayat, Devgaon, Paithan, Check Dam Grampanchayat, Devgaon, Paithan,
2022 to 16th Aurangabad, Maharashtra - 431107 Aurangabad, Maharashtra - 431107
March 2022

19 21st April 2021 7,538,914 Larsen & Toubro Public Charitable Trust, 1. Air cooler, Digital 1. L&T Health & Dialysis Centre, First
to 15th March Landmark A, 1st Floor, Suren Road, Opposite Radiography and Floor,TAM House, Tower B, Near
2022 PVR Cinemas, Near Western Express Highway Endo Mate TC2, Chhani Jakatnaka, Nava Yard Road,
(WEH) Metro Station, Andheri East, Mumbai, Heart Start Onsite Vadodara, Gujarat – 390002
Maharashtra - 400093 2. ECG Machine 2. L&T Coimbatore Health Centre,
No.1/160 B, Eachanari - Chettipalayam
Road, Seerapalayam Pudur,
Coimbatore, Tamil Nadu - 641021

3. Laboratory Software, 3. L&T ART Centre, 1st Floor, Koldongri

American Power Municipal Dispensary, Opposite
Conversion, Desktops Garware, Sahar Road, Andheri East,
Mumbai, Maharashtra - 400069
4. Phaco handpiece 4. Nirali | A M Naik Charitable Health-Care
slim, Hospital Bed, Facility, Saki Vihar Road, Opposite
Geyser, VATECH Tunga Village Bus Stop, Powai,
VR Sensor, Oxygen Mumbai, Maharashtra - 400072
gas pipeline,
Operating table,
Auto Keratometer,
Fundas Cameras, civil
work of dismantling,
cutting and removing
of existing door, Brio
Combination therapy
unit and therapy
Cart, Physiotherapy
Equipment, Ventilator
and Autoclave

5. Force Traveller 5. Samparc Malvali Centre, Near

Malvali Railway Station, Maval, Pune,
Maharashtra - 410405
6. Fumigation machine, 6. L&T Health and Dialysis Centre, Smith
laptop, finger print Park Apartment, Near Yogiraj Complex,
scanner, LED TV, Adajan Road, Surat, Gujarat – 395009
wireless router,
chairs, sonography
machine and water
tank

344
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

20 30th October 10,475,189 1. Government U.P. School, Dangariguda, Toilet blocks 1. Government U.P. School, Dangariguda,
2021 to 19th Koksara, Kalahandi, Odisha - 766017 Koksara, Kalahandi, Odisha - 766017
January 2022 2. M. L. High School, Attabira, Lakhnapur, 2. M. L. High School, Attabira, Lakhnapur,
Jharsuguda, Odisha - 768027 Jharsuguda, Odisha - 768027
3. Shree Jagannath High School, Sagada, 3. Shree Jagannath High School, Sagada,
Boudh, Odisha – 762016 Boudh, Odisha – 762016
4. Bidyabhar Satrujit Bidyapitha, Sagar, 4. Bidyabhar Satrujit Bidyapitha, Sagar,
Cuttack, Odisha - 754037 Cuttack, Odisha - 754037
5. Head Master, Darlimunda High School, 5. Darlimunda High School, At PO
At PO Darlimunda, Nuapada, Odisha Darlimunda, Nuapada, Odisha - 766105
- 766105
6. Daijmahul Primary School, Karamdihi, 6. Daijmahul Primary School, Karamdihi,
Sundargarh, Odisha - 770002 Sundargarh, Odisha - 770002
7. Head Teacher, Mangalchak Primary 7. Mangalchak Primary School,
School, PO - Terapekhia, Nandigram, PO - Terapekhia, Nandigram, Purba
Purba Medinipur, West Bengal - 721656 Medinipur, West Bengal - 721656
8. Khodhambari Union B.P.H.S School, 8. Khodhambari Union B.P.H.S School,
Khodhambari, Nandigram Block - 2, Khodhambari, Nandigram Block - 2,
PS - Nandigram, Purba Medinipur, West PS - Nandigram, Purba Medinipur, West
Bengal - 721650 Bengal - 721650
9. Amritnagar High School, Amritnagar, 9. Amritnagar High School, Amritnagar,
Hazaribagh, Jharkhand - 825301 Hazaribagh, Jharkhand - 825301
10. Government Upper Primary School, 10. Government Upper Primary School,
Village- Gandhigram-1, Deoli, Tonk, Village- Gandhigram-1, Deoli, Tonk,
Rajasthan - 304804 Rajasthan - 304804
11. Principal, Government Kasturba Ghandhi 11. Government Kasturba Ghandhi Girls
Girls Residential School, Chhoti Sarwa, Residential School, Chhoti Sarwa,
Kushalgarh pkg-1, Rajasthan - 327602 Kushalgarh pkg-1, Rajasthan - 327602
12. Principal, Government Higher Secondary 12. Government Higher Secondary School,
School, Dungra Bada, Sajjangarh pkg-2, Dungra Bada, Sajjangarh pkg-2,
Rajasthan - 327604 Rajasthan - 327604
13. Principal, Government Secondary 13. Government Secondary School, Potaliya
School, Potaliya Bada, Kushalgarh pkg-3, Bada, Kushalgarh pkg-3,
Rajasthan - 327801 Rajasthan -327801
14. Rajkiya Madhyamik Vidyalaya, Krishna 14. Rajkiya Madhyamik Vidyalaya, Krishna
Nagar (Village Kishanpura), RIICO Road, Nagar (Village Kishanpura), RIICO Road,
Bharatpur, Rajasthan - 321001 Bharatpur, Rajasthan - 321001
15. Government M. S. Hatkapura School, 15. Government M. S. Hatkapura School,
Ashoknagar, Rajghat, Ashoknagar, Rajghat,
Madhya Pradesh - 473446 Madhya Pradesh - 473446

16. Government Girls Senior Secondary 16. Government Girls Senior Secondary
School, NIT 3, Faridabad, School, NIT 3, Faridabad,
Haryana - 121001 Haryana - 121001
17. Government Urdu Higher Primary School, 17. Government Urdu Higher Primary
Veerabhadra Nagar, Belagavi, School, Veerabhadra Nagar, Belagavi,
Karnataka - 500016. Karnataka - 500016.
18. Upper Primary School, Aret Ki Bhagal, 18. Upper Primary School, Aret Ki Bhagal,
Gawar Panchayat, Kelwara Zone, Gawar Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313325 Rajasthan - 313325

345
Integrated Annual Report 2021-22 Annexure to the Board Report

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

19. Government Primary School, Beed Ki 19. Government Primary School, Beed Ki
Bhagal, Gawar Panchayat, Kelwara Bhagal, Gawar Panchayat, Kelwara
Zone, Kumbhalgarh Block, Rajsamand, Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313333 Rajasthan - 313333
20. Upper Primary School, Dasana Ki Bhagal, 20. Upper Primary School, Dasana Ki
Majhera Panchayat, Kelwara Zone, Bhagal, Majhera Panchayat, Kelwara
Kumbhalgarh Block, Rajsamand, Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313321 Rajasthan - 313321
21. Upper Primary School, Hatai Ki Bhagal, 21. Upper Primary School, Hatai Ki Bhagal,
Gawar Panchayat, Kelwara Zone, Gawar Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313325 Rajasthan - 313325
22. Government Primary School, Pavatiya, 22. Government Primary School, Pavatiya,
Thaladhari Panchayat, Kelwara Zone, Thaladhari Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313325 Rajasthan - 313325
23. Upper Primary School, Rati Talai, 23. Upper Primary School, Rati Talai,
Antaliya Panchayat, Antaliya Zone, Antaliya Panchayat, Antaliya Zone,
Kumbhalgarh Block, Rajsamand, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313334 Rajasthan - 313334
24. Government Primary School, Rod Ka 24. Government Primary School, Rod Ka
Guda, Sukhar Panchayat, Antaliya Zone, Guda, Sukhar Panchayat, Antaliya
Kumbhalgarh Block, Rajsamand, Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313333 Rajasthan - 313333

21 4th August 2021 36,409 Head Teacher, Narayanpur Primary School, Desktop Narayanpur Primary School, PO - Ganja
PO - Ganja Narayanpur, Purba Medinipur, Narayanpur, Purba Medinipur, West Bengal
West Bengal - 721648 - 721648

22 21st September 2,347,840 1. Benabad Junior High School, Benabad, Benches and desks 1. Benabad Junior High School, Benabad,
2021 to 24th Mejhia, Bankura, West Bengal - 722143 Mejhia, Bankura, West Bengal - 722143
March 2022 2. Pairasole Primary School, Pairasole, 2. Pairasole Primary School, Pairasole,
Mejhia, Bankura, West Bengal - 722143 Mejhia, Bankura, West Bengal - 722143
3. Benabad Primary School, Benabad, 3. Benabad Primary School, Benabad,
Mejhia, Bankura, West Bengal - 722143 Mejhia, Bankura, West Bengal - 722143
4. Natshala Primary School, Benabad, 4. Natshala Primary School, Benabad,
Bankura, West Bengal - 722143 Bankura, West Bengal - 722143
5. Maraya Primary School, Amarkanan, 5. Maraya Primary School, Amarkanan,
Bankura, West Bengal - 722133 Bankura, West Bengal - 722133

6. Mukundapur Thakamoni High School, 6. Mukundapur Thakamoni High School,

Durlavpur, Mejhia, Bankura, Durlavpur, Mejhia, Bankura,
West Bengal -722133 West Bengal -722133
7. Office of the Head master, Government 7. Government Sr. Primary School,
Sr. Primary School, Nokhadaiya, Kolayat, Nokhadaiya, Kolayat, Bikaner,
Bikaner, Rajasthan - 334001 Rajasthan - 334001
8. Government Nodal Upper Primary School, 8. Government Nodal Upper Primary
Bishipada, Block - Ulunda, Subaranapur, School, Bishipada, Block - Ulunda,
Odisha - 767062 Subaranapur, Odisha - 767062
9. Government N.U.P. School, Dhanghara, 9. Government N.U.P. School, Dhanghara,
Tusura, Balangir, Odisha - 767030 Tusura, Balangir, Odisha - 767030

346
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

10. Zilla Parishad High School, Neredmet, 10. Zilla Parishad High School, Neredmet,
Malkajgiri Madal, Medchal, Malkajgiri Madal, Medchal,
Hyderabad - 500056 Hyderabad - 500056
11. Government Madhyamik School, 11. Government Madhyamik School,
Satanwada, Shivpuri, Madhya Pradesh Satanwada, Shivpuri, Madhya Pradesh
12. Government High School, Satanwada, 12. Government High School, Satanwada,
Shivpuri, Madhya Pradesh Shivpuri, Madhya Pradesh
13. Principal, Government Primary School, 13. Government Primary School,
Malagaon, Satwas, Dewas, Madhya Malagaon, Satwas, Dewas, Madhya
Pradesh Pradesh
14. Principal of Government Sr. Secondary 14. Government Sr. Secondary School
School Hamiri, Kalan, Jhunjhunu, Hamiri, Kalan, Jhunjhunu,
Rajasthan - 333001 Rajasthan - 333001
15. Government UP School, Kansbahal, 15. Government UP School, Kansbahal,
Sundargarh, Odisha Sundargarh, Odisha
16. Government Primary School, 16. Government Primary School,
Bhagatpara, PO - Kansbahal, Bhagatpara, PO - Kansbahal,
Sundargarh, Odisha Sundargarh, Odisha
17. Government Primary School, 17. Government Primary School,
Ranibandhtola, PO - Sagjore, Ranibandhtola, PO - Sagjore,
Sundargarh, Odisha Sundargarh, Odisha
18. Government Primary School, 18. Government Primary School,
Gowalapara, PO - Kansbahal, Gowalapara, PO - Kansbahal,
Sundargarh, Odisha Sundargarh, Odisha
19. Mission Primary School, Kalodihi, 19. Mission Primary School, Kalodihi,
Sundargarh, Odisha Sundargarh, Odisha
20. Government Upper Primary School, Kila 20. Government Upper Primary School,
Kumbhalgarh, Gawar Panchayat, Kelwara Kila Kumbhalgarh, Gawar Panchayat,
Zone, Kumbhalgarh Block, Rajsamand, Kelwara Zone, Kumbhalgarh Block,
Rajasthan - 313333 Rajsamand, Rajasthan - 313333
21. The Secretary, Mahesh Shri Ramakrishna 21. Mahesh Shri Ramakrishna Ashram, 40
Ashram, 40 Ramakrishna Road, PO Rishra, Ramakrishna Road, PO Rishra, Hooghly,
Hooghly, West Bengal - 712248 West Bengal - 712248

23 16th September 1,149,486 1. Principal, Meera Girls College, Meera Solar lights 1. Meera Girls College, Meera Marg,
2021 Marg, Opposite Hotel Meera, Madhuban, Opposite Hotel Meera, Madhuban,
Udaipur, Rajasthan - 313001 Udaipur, Rajasthan 313001
2. Surpunch of Village Patelpara, Near 2. Village Patelpara, Near Bacheli,
Bacheli, Dantewada District, Dantewada District,
Chhattisgarh - 494553 Chhattisgarh - 494553
3. Government Ashram School, Rati Kasa, 3. Government Ashram School, Rati Kasa,
Surya Nagar, Vikramgarh, Palghar, Surya Nagar, Vikramgarh, Palghar,
Maharashtra - 401609 Maharashtra - 401609
4. Government of NCT of Delhi, Plot No 7, 4. Government of NCT of Delhi, Plot No
Kh No. 240, B - Block, Inder Enclave, 7, Kh No. 240, B - Block, Inder Enclave,
Near Nitari Pulia, Kirari Suleman Nagar, Near Nitari Pulia, Kirari Suleman Nagar,
Delhi - 110086 Delhi - 110086
5. Bhikusa High school, Sinnar, Nasik, 5. Bhikusa High school, Sinnar, Nasik,
Maharashtra - 422103 Maharashtra - 422103

347
Integrated Annual Report 2021-22 Annexure to the Board Report

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

24 11th November 167,000 Purva Madyamik Vidyalay, Bolthakaram, Solar panel with battery Purva Madyamik Vidyalay, Bolthakaram,
2021 Amarwar, Duddhi, Sonbhadra, Uttar Pradesh Amarwar, Duddhi, Sonbhadra, Uttar
Pradesh

25 20th January 879,997 District Education Officer, Patna, Koiritola, Toilet blocks and desks Government Middle School, Harnichak,
2022 Rajendra Nagar, Near Moinul Haq Stadium Beur, Anishabad, Patna, Bihar - 800002
Patna, Bihar - 800004

26 7th March 2022 200,000 1. Krushi Tantra Vidyalaya, Vare, Karjat, Borewell and water tank 1. Krushi Tantra Vidyalaya, Vare, Karjat,
Maharashtra Maharashtra
2. Chasole High School, Chasole, Murbad, 2. Chasole High School, Chasole, Murbad,
Thane, Maharashtra Thane, Maharashtra

27 7th March 2022 60,000 Zilha Parishad School, Ajnup, Shahapur, Water tank Zilha Parishad School, Ajnup, Shahapur,
Thane, Maharashtra Thane, Maharashtra

28 7th March 2022 604,000 Swami Vivekanand Adivasi Madhyamik Construction of shed Swami Vivekanand Adivasi Madhyamik
Ashram School, Chindhyachi Wadi, Post Ashram School, Chindhyachi Wadi, Post
Vashala, Shahapur, Thane, Maharashtra Vashala, Shahapur, Thane, Maharashtra

29 29th November 35,620 1. Government Primary School, Mandiakudar 1. Almirah 1. Government Primary School,
2021 to 12th Sundargarh, Odisha 2. Table and chairs Mandiakudar, Sundargarh, Odisha
March 2022 2. (a) Government UP School, Badnuagaon, 2. (a) Government UP School,
Sundargarh, Odisha Badnuagaon, Sundargarh, Odisha

(b) Government Primary School, (b) Government Primary School,

Kadambahal, PO - Kansbahal, Kadambahal, PO - Kansbahal,
Sundargarh, Odisha Sundargarh, Odisha

30 10th March 2022 2,952,381 1. Upper Primary School, Dasana Ki Bhagal, 1. Resource room 1. Upper Primary School, Dasana Ki
Majhera Panchayat, Kelwara Zone, with furniture and Bhagal, Majhera Panchayat, Kelwara
Kumbhalgarh Block, Rajsamand, projector screens Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313321 Rajasthan - 313321
2. (a) Government Primary School, Rodh 2. Resource room with 2. (a) Government Primary School,
Ka Guda, Sukhar Panchayat, Antaliya furniture Rodh Ka Guda, Sukhar Panchayat,
Zone, Kumbhalgarh Block, Rajsamand, Antaliya Zone, Kumbhalgarh Block,
Rajasthan - 313333 Rajsamand, Rajasthan - 313333

(b) Government Primary School, (b) Government Primary School,

Shobhawato Ki Bhagal, Gram Shobhawato Ki Bhagal, Gram
Panchayat Antaliya, Kumbhalgarh Panchayat Antaliya, Kumbhalgarh
Block, Rajsamand, Rajasthan - 313334 Block, Rajsamand,
Rajasthan - 313334

31 10th March 2022 3,886,504 1. Upper Primary School, Aret Ki Bhagal, Tube well, water storage 1. Upper Primary School, Aret Ki Bhagal,
Gawar Panchayat, Kelwara Zone, tank and solar pumping Gawar Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand, system Kumbhalgarh Block, Rajsamand,
Rajasthan - 313325 Rajasthan - 313325
2. Government Primary School, Beed Ki 2. Government Primary School, Beed Ki
Bhagal, Gawar Panchayat, Kelwara Bhagal, Gawar Panchayat, Kelwara
Zone, Kumbhalgarh Block, Rajsamand, Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313333 Rajasthan - 313333
3. Upper Primary School, Aret Ki Bhagal, 3. Upper Primary School, Aret Ki Bhagal,
Majhera Panchayat, Kelwara Zone, Majhera Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313325 Rajasthan - 313325

348
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

4. Upper Primary School, Dasana Ki Bhagal, 4. Upper Primary School, Dasana Ki

Majhera Panchayat, Kelwara Zone, Bhagal, Majhera Panchayat, Kelwara
Kumbhalgarh Block, Rajsamand, Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313321 Rajasthan - 313321
5. Government Primary School, Pavatiya, 5. Government Primary School, Pavatiya,
Thaladhari Panchayat, Kelwara Zone, Thaladhari Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313325 Rajasthan - 313325
6. Government Primary School, Shobhawato 6. Government Primary School,
Ki Bhagal, Gram Panchayat Antaliya, Shobhawato Ki Bhagal, Gram
Kumbhalgarh Block, Rajsamand, Panchayat Antaliya, Kumbhalgarh
Rajasthan - 313334 Block, Rajsamand, Rajasthan - 313334

32 3rd March 2022 407,060 1. Government Primary School, Rodh Ka Furniture 1. Government Primary School, Rodh
Guda, Sukhar Panchayat, Antaliya Zone, Ka Guda, Sukhar Panchayat, Antaliya
Kumbhalgarh Block, Rajsamand, Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313333 Rajasthan - 313333
2. Upper Primary School, Dasana Ki Bhagal, 2. Upper Primary School, Dasana Ki
Majhera Panchayat, Kelwara Zone, Bhagal, Majhera Panchayat, Kelwara
Kumbhalgarh Block, Rajsamand, Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313321 Rajasthan - 313321
3. Government Primary School, Pavatiya, 3. Government Primary School, Pavatiya,
Thaladhari Panchayat, Kelwara Zone, Thaladhari Panchayat, Kelwara Zone,
Kumbhalgarh Block, Rajsamand, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313325 Rajasthan - 313325
4. Government Primary School, Shobhawato 4. Government Primary School,
Ki Bhagal, Gram Panchayat Antaliya, Shobhawato Ki Bhagal, Gram
Kumbhalgarh Block, Rajsamand, Panchayat Antaliya, Kumbhalgarh
Rajasthan - 313334 Block, Rajsamand, Rajasthan - 313334

33 25th January 1,673,673 1. Health Sub Centre, Antaliya, Antaliya 1. Borewell 1. Health Sub Centre, Antaliya, Antaliya
2022 Zone, Kumbhalgarh Block, Rajsamand, Zone, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313334 Rajasthan - 313334
2. (a) Health Sub Centre, Antaliya, Antaliya 2. Motor pump 2. (a) Health Sub Centre, Antaliya,
Zone, Kumbhalgarh Block, Rajsamand, operated through Antaliya Zone, Kumbhalgarh Block,
Rajasthan - 313334 Solar charger Rajsamand, Rajasthan - 313334

(b) Upper Primary School, Aret Ki Bhagal, (b) Upper Primary School, Aret
Gawar Panchayat, Kelwara Zone, Ki Bhagal, Gawar Panchayat,
Kumbhalgarh Block, Rajsamand, Kelwara Zone, Kumbhalgarh Block,
Rajasthan - 313325 Rajsamand, Rajasthan - 313325
3. (a) Upper Primary School, Rati Talai, 3. Alternate electricity 3. (a) Upper Primary School, Rati Talai,
Antaliya Panchayat, Antaliya Zone, through solar charger Antaliya Panchayat, Antaliya Zone,
Kumbhalgarh Block, Rajsamand, Kumbhalgarh Block, Rajsamand,
Rajasthan - 313334 Rajasthan - 313334
(b) Anganwadi, Nichli Bhagal, Antaliya (b) Anganwadi, Nichli Bhagal, Antaliya
Panchayat and Zone, Kumbhalgarh Panchayat and Zone, Kumbhalgarh
Block, Rajsamand, Block, Rajsamand,
Rajasthan - 313321 Rajasthan - 313321

349
Integrated Annual Report 2021-22 Annexure to the Board Report

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

34 30th September 735,153 Project Officer, ICDS, Aanganwadi Jalpa, 1. Construction of 1. Aanganwadi Jalpa, Kookra, Bhim,
2021 Post - Kookra, Bhim, Rajsamand, Rajasthan stage, drinking water Rajsamand, Rajasthan - 305921
- 305921 tank platform, ramp
and stairs
2. Construction of 2. (a) Aanganwadi Rajarel, Kookra, Bhim,
boundary wall and Rajsamand, Rajasthan - 305921
drinking water tank (b) Aanganwadi Kookra, Kookra, Bhim,
platform Rajsamand, Rajasthan - 305921

35 30th September 1,567,576 Principal, Senior Secondary School Kookra, Construction of class Senior Secondary School Kookra, Kookra,
2021 Kookra, Bhim, Rajsamand, Rajasthan room, drinking water Bhim, Rajsamand, Rajasthan - 305921
- 305921 tank platform, fencing
wire of boundary wall,
verandah and ramp

36 30th September 1,195,585 Head Master, Upper Primary School (Girls), Construction of drinking Upper Primary School (Girls), Kookra, Bhim,
2021 Kookra, Bhim, Rajsamand, Rajasthan water tank platform, Rajsamand, Rajasthan - 305921
- 305921 classroom and ramp

37 30th September 204,591 Head Master, Primary School, Japla, Kookra, Construction of stage, Primary School, Japla, Kookra, Bhim,
2021 Bhim, Rajsamand, Rajasthan - 305921 drinking water tank Rajsamand, Rajasthan - 305921
platform and verandah

38 30th September 380,924 1. Head Master, Primary School, Jassuj Construction of drinking 1. Primary School, Jassuj Ka Kheda,
2021 Ka Kheda, Kookra, Bhim, Rajsamand, water tank platform, Kookra, Bhim, Rajsamand,
Rajasthan - 305921 stairs, ramp and platform Rajasthan - 305921
2. Head Master, Primary School, Godarel, 2. Primary School, Godarel, Kookra,
Kookra, Bhim, Rajsamand, Bhim, Rajsamand, Rajasthan - 305921
Rajasthan - 305921

39 30th September 1,358,448 Head Master, Primary School, Dungo Ka Construction of stage, Primary School, Dungo Ka Wala,
2021 Wala, Kookra, Bhim, Rajsamand, Rajasthan classroom and stairs Kookra,Bhim, Rajsamand,
- 305921 Rajasthan - 305921

40 28th February 452,365 Project Officer, ICDS, Aanganwadi - Nichla Construction of drinking 1. Aanganwadi - Nichla Lasadiya, Kookra,
2022 Lasadiya, Kookra, Bhim, Rajsamand, water tank platform and Bhim, Rajsamand, Rajasthan - 305921
Rajasthan - 305921 boundary wall 2. Aanganwadi - Rawat Ka Kheda,
Kookra, Bhim, Rajsamand,
Rajasthan - 305921

41 28th February 1,226,982 Head Master, Government Primary School - Construction of drinking Government Primary School - Kashya,
2022 Kashya, Kookra, Bhim, Rajsamand, water tank platform, Kookra, Bhim, Rajsamand,
Rajasthan - 305921 boundary wall, plaster Rajasthan - 305921
work and ramp

42 28th February 1,577,111 Head Master, Government Upper Primary Construction of class Government Upper Primary School,
2022 School, Kathon Ka Talab, Kookra, Bhim, room, drinking water Kathon Ka Talab, Kookra, Bhim,
Rajsamand, Rajasthan - 305921 tank platform, boundary Rajsamand, Rajasthan - 305921
wall, stage and ramp

350
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

43 28th February 1,630,749 Head Master, Government Primary School, Construction of Government Primary School, Mohariya,
2022 Mohariya, Kookra, Bhim, Rajsamand, classroom, boundary Kookra, Bhim, Rajsamand,
Rajasthan - 305921 wall, fencing wire, ramp, Rajasthan - 305921
stairs, pathway and
protection wall

44 28th February 947,399 Head Master, Government Primary School, Construction of drinking Government Primary School, Nichla
2022 Nichla Karkala, Kookra, Bhim, Rajsamand, water tank platform, Karkala, Kookra, Bhim, Rajsamand,
Rajasthan - 305921 boundary wall, stage and Rajasthan - 305921
classroom

45 28th February 1,371,305 Head Master, Government Primary School, Construction of class Government Primary School, Pathwari
2022 Pathwari Ka Baadiya, Kookra, Bhim, room, drinking water Ka Baadiya, Kookra, Bhim, Rajsamand,
Rajsamand, Rajasthan - 305921 tank platform, boundary Rajasthan - 305921
wall, fencing wire, ramp
and drain

46 28th February 1,333,269 Head Master, Government Primary School, Construction of class Government Primary School, Rawat
2022 Rawat Ka Kheda, Kookra, Bhim, Rajsamand, room, drinking water Ka Kheda, Kookra, Bhim, Rajsamand,
Rajasthan - 305921 tank platform, boundary Rajasthan - 305921
wall and ramp

47 28th February 196,163 Head Master, Government Upper Primary Construction of drinking Government Upper Primary School,
2022 School, Barla Choura, Kookra, Bhim, water tank platform, Barla Choura, Kookra, Bhim, Rajsamand,
Rajsamand, Rajasthan - 305921 ramp and boundary wall Rajasthan - 305921

48 28th February 324,319 Head Master, Government Upper Primary Construction of drinking Government Upper Primary School,
2022 School, Upperla Karkala, Kookra, Bhim, water tank platform, Upperla Karkala, Kookra, Bhim, Rajsamand,
Rajsamand, Rajasthan - 305921 ramp and verandah Rajasthan - 305921

49 28th February 1,395,026 Principal, Government Senior Secondry Construction of class Government Senior Secondry School
2022 School Lasadiya, Kookra, Bhim, Rajsamand, room, drinking water Lasadiya, Kookra, Bhim, Rajsamand,
Rajasthan - 305921 tank platform, boundary Rajasthan - 305921
wall, fencing wire,
verandah and ramp

50 30th June 2021 557,880 1. Mr. Govindharaj S/o Krishnaaiya, Small pond 1. No.21/1, Mel Settikuppam,
to 30th August No.21/1, Mel Settikuppam, Sarakuppam, Sarakuppam, Settikuppam,
2021 Settikuppam, Gudiyatham, Gudiyatham,
Tamil Nadu - 635803 Tamil Nadu - 635803
2. Mr. Karunakaran S/o Masilamani No. 78, 2. No. 78, Kowsiya Nagar, Ulli Village,
Kowsiya Nagar, Ulli Village, Mettukollai, Mettukollai, Gudiyatham,
Gudiyatham, Tamil Nadu - 635813 Tamil Nadu - 635813
3. Ms. Prema W/o Loganathan, No. 3/34, 3. No. 3/34, Rajakuppam,
Rajakuppam, Dasrimandripatti, Paravakkal Dasrimandripatti, Paravakkal
Gudiyatham, Tamil Nadu - 635803 Gudiyatham, Tamil Nadu - 635803
4. Ms. Lavanya W/o Dheenabandu, No. 4. No. 41/14, Periya Rajakuppam,
41/14, Periya Rajakuppam, Rajakuppam Rajakuppam (PO), Paravakkal,
(PO), Paravakkal, Gudiyatham, Tamil Gudiyatham, Tamil Nadu - 635803
Nadu - 635803

351
Integrated Annual Report 2021-22 Annexure to the Board Report

Sr Date of Amount of Details of the entity or public authority Details of the capital asset(s) created or acquired (including
No. creation or CSR spent for or beneficiary under whose name such complete address and location of the capital asset)
acquisition creation or capital asset is registered, their address
of the capital acquisition of etc.
asset(s) capital asset
(in R) Asset Name Address

5. Mr. Sundaramoorthy S/o Govindhan 5. Rajamandripatti, Dasmandripatti,

Rajakuppam, Rajamandripatti, Paravakkal, Gudiyatham,
Dasmandripatti, Paravakkal, Gudiyatham, Tamil Nadu - 635803
Tamil Nadu - 635803
6. Mr. Dakshanamoorthy S/o Munisamy, No. 6. No. 2/66, Pananthoppu Colony,
2/66, Pananthoppu Colony, Rajakuppam Rajakuppam (PO), Paravakkal,
(PO), Paravakkal, Gudiyatham, Tamil Gudiyatham, Tamil Nadu - 635803
Nadu - 635803
7. Mr. Govindhasamy S/o Veerasamy, 7. No. 1/135, Rajakuppam (PO), Periya
No. 1/135, Rajakuppam (PO), Periya Paravakkal, Paravakkal, Gudiyatham,
Paravakkal, Paravakkal, Gudiyatham, Tamil Nadu - 635803
Tamil Nadu - 635803
8. Mr. Harish S/o Govindharaj No. 21/1, Mel 8. No. 21/1, Mel Theru, Mel Settikuppam,
Theru, Mel Settikuppam, Gudiyatham, Gudiyatham, Tamil Nadu - 635803
Tamil Nadu - 635803
9. Ms. Dharani S/o Krishnaaiya, No. 29/15A, 9. No. 29/15A, B N Palayam, Settikuppam,
B N Palayam, Settikuppam, Gudiyatham, Gudiyatham, Tamil Nadu - 635803
Tamil Nadu - 635803
10. Ms. Savitha W/o Sivakumar, No. 66/21, 10. No. 66/21, Pananthoppu Colony,
Pananthoppu Colony, Rajakuppam (PO), Rajakuppam (PO), Paravakkal,
Paravakkal, Gudiyatham, Gudiyatham, Tamil Nadu - 635803
Tamil Nadu - 635803
11. Mr. Dhanasekaran S/o Kesavan Mel 11. Pogalur, Gudiyatham, Tamil Nadu -
Alangkuppam, Pogalur, Gudiyatham, 635813
Tamil Nadu - 635813
12. Mr. Purushothanam S/o Kannaaiya, No. 12. No. 86, Rajakuppam, Rajamandripatti,
86, Rajakuppam, Rajamandripatti, Periya Periya Paravakkal, Gudiyatham,
Paravakkal, Gudiyatham, Tamil Nadu - 635803
Tamil Nadu - 635803

51 29th November 21,200 Dhan Foundation, 1A Vaidyanathapuram CANON MF 241 LASER Dhan Foundation, 1A Vaidyanathapuram
2021 East, Kennet Cross Road, Madurai, Tamil PRINTER East, Kennet Cross Road, Madurai, Tamil
Nadu - 625016 Nadu - 625016

352
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Annexure ‘D’ to the Board Report

A. Ratio of the remuneration of each Director to the median remuneration of the employees of the Company for
FY 2022 and the percentage increase in remuneration of each Director and Company Secretary during FY 2022:
v crore
Ratio (times) of Percentage
Total
Name of the Director/KMP Designation remuneration of director to increase in
Remuneration
the median remuneration * Remuneration
Mr. A. M. Naik Group Chairman 6.32 69.11 1.85%
Mr. S. N. Subrahmanyan Chief Executive Officer & 61.27 670.02 115.00%
Managing Director
Mr. R. Shankar Raman Whole-time Director & Chief 28.62 313.00 116.38%
Financial Officer
Mr. D. K. Sen Whole-time Director & 11.83 129.40 137.77%
Sr. Executive Vice President
(Development Projects)
Mr. M. V. Satish Whole-time Director & 11.19 122.34 108.32%
Sr. Executive Vice President
(Buildings)
Mr. J. D. Patil Whole-time Director & 11.05 120.81 106.13%
Sr. Executive Vice President
(Defence & Smart Technologies)
Mr. Subramanian Sarma Whole-time Director & 23.47 256.68 105.99% @
Sr. Executive Vice President
(Energy)
Mr. S. V. Desai Whole-time Director & 12.55 137.19 261.47% @
Sr. Executive Vice President (Civil
Infrastructure)
Mr. T. Madhava Das Whole-time Director & 12.30 134.55 236.34% @
Sr. Executive Vice President
(Utilities)
Mr. M. M. Chitale Independent Director 0.67 7.32 (7.27%)
Mr. Subodh Bhargava # Independent Director 0.66 7.25 –
Mr. M. Damodaran Independent Director 0.65 7.07 0.78%
Mr. Vikram Singh Mehta Independent Director 0.55 6.06 43.28% $
Mr. Adil Zainulbhai Independent Director 0.63 6.88 0.80%
Mr. Sanjeev Aga Independent Director 0.54 5.86 (3.51%)
Mr. Narayanan Kumar Independent Director 0.47 5.13 (1.98%)
Mr. Hemant Bhargava ^ Nominee of Life Insurance 0.34 3.76 10.10%
Corporation of India
Mrs. Preetha Reddy Independent Director 0.31 3.41 300.00% @
Mr. Sivaram Nair A Company Secretary 1.98 21.63 19.39%
* Ratio of remuneration of Director to the median remuneration is calculated on pro-rata basis for those Directors who served for only part of
FY 2022.
# Ceased to be an Independent Director with effect from 29th March 2022 on completion of his term.
^ Part of the remuneration has been paid to the financial institution he represents
@ Impact of full year remuneration of new director/KMP appointed during FY 2020-21
$ Current year remuneration includes the commission and sitting fees paid by L&T Hydrocarbon Engineering Limited.

353
Integrated Annual Report 2021-22 Annexure to the Board Report

B. Percentage increase in the median remuneration thereof and point out if there are any exceptional
of all employees in FY 2022: circumstances for increase in managerial
The median remuneration of employees of the remuneration
Company during the financial year was R 9.14 lakh. In The average percentage increase in the salaries of
the financial year, there was an increase of 6.67% in employees excluding key managerial personnel for
the median remuneration of employees. the year 2021-22 was 17.42% whereas there is
an increase in the key managerial remuneration by
C. Number of permanent employees on the rolls of
66.01%. The increase in managerial remuneration is
the Company as on 31st March 2022:
due to higher eligible profits, base adjustment and
There were 49,921 permanent employees on the rolls full year impact of remuneration to new Whole-time
of Company as on 31st March 2022. Directors who joined in the year 2020-21.
D. Average percentile increase made in the salaries E. Affirmation that the remuneration is as per the
of the employees other than the managerial remuneration policy of the company:
personnel in the last financial year and its
It is hereby affirmed that the remuneration paid is
comparison with the percentile increase in
as per the Remuneration Policy for Directors, Key
the managerial remuneration and justification
Managerial Personnel and other Employees.

354
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Annexure ‘E’ to the Board Report

Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2022
[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014]

To, a. The Securities and Exchange Board of India

The Members, (Substantial Acquisition of Shares and Takeovers)
Larsen & Toubro Limited Regulations, 2011;
CIN: L99999MH1946PLC004768
L&T House, Ballard Estate, b. The Securities and Exchange Board of India
Mumbai – 400001 (Prohibition of Insider Trading) Regulations, 2015;
We have conducted the Secretarial Audit of the compliance c. The Securities and Exchange Board of India
of applicable statutory provisions and the adherence to (Issue of Capital and Disclosure Requirements)
good corporate practices by Larsen & Toubro Limited
Regulations, 2018 - Not Applicable as there
(hereinafter called ‘the Company’). Secretarial Audit was
was no reportable event during the financial
conducted in a manner that provided us a reasonable
basis for evaluating the corporate conducts / statutory year under review;
compliances and expressing our opinion thereon. d. The Securities and Exchange Board of India (Share
Based on our verification of the Company’s books, papers, Based Employee Benefits) Regulations, 2014 (up
minute books, forms and returns filed and other records to 12th August, 2021) and The Securities and
maintained by the Company and also the information Exchange Board of India (Share Based Employee
provided by the Company, its officers, agents and Benefits and Sweat Equity) Regulations, 2021
authorized representatives during the conduct of secretarial
(with effect from 13th August, 2021);
audit, we hereby report that in our opinion, the Company
has, during the audit period covering the financial year e. The Securities and Exchange Board of India (Issue
ended on 31st March 2022, complied with the statutory and Listing of Debt Securities) Regulations, 2008
provisions listed hereunder and also that the Company (up to 15th August, 2021);
has proper Board-processes and compliance-mechanism
in place to the extent, in the manner and subject to the f. The Securities and Exchange Board of India
reporting made hereinafter. (Registrars to an Issue and Share Transfer Agents)
We have examined the books, papers, minute books, forms Regulations, 1993 regarding the Companies Act
and returns filed and other records maintained by the and dealing with client - Not Applicable as the
Company for the financial year ended on 31st March, 2022 Company is not registered as Registrar to
according to the provisions of: Issue and Share Transfer Agent during the
i. The Companies Act, 2013 (the Act) and the rules made financial year under review;
thereunder; g. The Securities and Exchange Board of India
ii. The Securities Contracts (Regulation) Act, 1956 (Delisting of Equity Shares) Regulations, 2009
(‘SCRA’) and the rules made thereunder; (up to 9th June, 2021) and The Securities and
Exchange Board of India (Delisting of Equity
iii. The Depositories Act, 1996 and the Regulations and Shares) Regulations, 2021 (with effect from 10th
Bye-laws framed thereunder; June, 2021) - Not Applicable as the Company
iv. Foreign Exchange Management Act, 1999 and the has not delisted/ proposed to delist its equity
rules and regulations made thereunder to the extent of shares from any Stock Exchange during the
Foreign Direct Investment, Overseas Direct Investment financial year under review;
and External Commercial Borrowings; h. The Securities and Exchange Board of India
v. The following Regulations and Guidelines prescribed (Buyback of Securities) Regulations, 2018 - Not
under the Securities and Exchange Board of India Act, Applicable as there was no reportable event
1992 (‘SEBI Act’): during the financial year under review;

355
Integrated Annual Report 2021-22 Annexure to the Board Report

i. The Securities and Exchange Board of India on the Company’s affairs in pursuance of the above
(Issue and Listing of Non-Convertible Securities) referred laws, rules, regulations, guidelines, standards etc:
Regulations, 2021 (with effect from 16th August, zz Non-Convertible Debentures amounting to R 450
2021); Crore (Rupees Four Hundred and Fifty Crore only) were
j. The Securities and Exchange Board of India duly redeemed on their respective due dates.
(Listing Obligations and Disclosure Requirements), zz The Company at its Board Meeting held on July 26,
Regulations, 2015; 2021, had considered and approved a Scheme of
vi. The Company has informed that there are no laws Arrangement for amalgamation of L&T Hydrocarbon
which are specifically applicable to the Company. Engineering Limited (“LTHE”) (a Wholly-owned
Subsidiary of the Company) with the Company. (“the
We have also examined compliance with the applicable Scheme”). The said Scheme was approved vide order
provisions of the following: of the National Company Law Tribunal, Mumbai bench
(i) Secretarial Standards with regard to Meetings of Board dated 28th January 2022.
of Directors (SS-1) and General Meetings (SS-2) issued
zz In supersession of the Special Resolution passed at
by The Institute of Company Secretaries of India;
the 75th Annual General Meeting (AGM) held on
(ii) Listing Agreements entered into by the Company with 13th August, 2020, members at the 76th AGM held
BSE Limited and National Stock Exchange of India on 05th August 2021, passed a Special Resolution
Limited. authorising the Board of Directors to raise funds
During the period under review the Company has complied through issuance of convertible bonds and/or equity
with the provisions of the Act, Rules, Regulations, shares through depository receipts, including by way
Guidelines, Standards, etc. of Qualified Institutions Placement, in one or more
tranches upto an amount not exceeding R 4500 Crore
We further report that:-
or US $600 Million, whichever is higher.
zz The Board of Directors of the Company is duly
constituted with proper balance of Executive Directors, zz Raised R 450 crore (Rupees Four Hundred and Fifty
Non-Executive Directors including Independent Crore only), by way of receipt of call money pursuant
Directors and Women Directors. The changes in the to First Balance Payment notice of R 2,50,000 each on
composition of the Board of Directors which took the 18,000 Non - Convertible Debentures of R 10 Lac
place during the period under review were carried out each on 12th April 2021.
in compliance with the provisions of the Act; zz The Board of Directors at its meeting held on 24th
zz Adequate notice is given to all Directors of the March 2022, approved long term borrowings upto
schedule of the Board and Committee Meetings and R 10,000 crore (Rupees Ten Thousand Crore), including
Agenda & detailed notes on agenda were sent at refinancing, through external commercial borrowings,
least seven days in advance and there exists a system term loans, non-convertible debentures or any other
for seeking and obtaining further information and instrument as may be appropriate.
clarifications on the agenda items before the meeting This Report is to be read with our letter of even date which
for meaningful participation at the meeting; is annexed as Annexure A and forms an integral part of this
report.
zz All decisions of Board and Committee meetings were
carried unanimously.
For S. N. ANANTHASUBRAMANIAN & Co.
We further report that based on review of compliance
Company Secretaries
mechanism established by the Company and on the basis
ICSI Unique Code: P1991MH040400
of the Compliance Certificate(s) issued by the Company
Peer Review Cert. No.: 606/2019
Secretary and taken on record by the Board of Directors
at their meeting(s), we are of the opinion that there are
adequate systems and processes in place in the Company S. N. Ananthasubramanian
which is commensurate with the size and operations of Partner
the Company to monitor and ensure compliance with FCS: 4206 | COP No.: 1774
applicable laws, rules, regulations and guidelines. ICSI UDIN: F004206D000266600
We further report that during the audit period the
following events have occurred which had a major bearing Date : 04th May, 2022
Place : Thane

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Overview Discussion and Analysis Report Reports Statements

Annexure-‘A’

To, documents or Records, in relation to Secretarial

The Members, Audit, maintained by the Company, are free from
Larsen & Toubro Limited misstatement.
CIN: L99999MH1946PLC004768
L& T House, Ballard Estate, 6 Wherever required, we have obtained the
Mumbai – 400001. Management’s representation about the compliance of
laws, rules and regulations and happening of events,
Our Secretarial Audit Report for the Financial Year ended
31st March, 2022, of even date is to be read along with etc.
this letter. Disclaimer
Management’s Responsibility 7 The Secretarial Audit Report is neither an assurance
1 It is the responsibility of the management of the as to the future viability of the Company nor of the
Company to maintain secretarial records, devise proper efficacy or effectiveness with which the management
systems to ensure compliance with the provisions of all has conducted the affairs of the Company.
applicable laws and regulations and to ensure that the
8 We have not verified the correctness and
systems are adequate and operate effectively.
appropriateness of financial records and books of
Auditor’s Responsibility accounts of the Company.
2 Our responsibility is to express an opinion on these
secretarial records, standards and procedures For S. N. ANANTHASUBRAMANIAN & Co.
followed by the Company with respect to secretarial Company Secretaries
compliances. ICSI Unique Code: P1991MH040400
Peer Review Cert. No.: 606/2019
3 We have conducted the Audit as per the applicable
Auditing Standards issued by the Institute of Company
Secretaries of India. S. N. Ananthasubramanian
Partner
4 We believe that audit evidence and information FCS: 4206 | COP No.: 1774
obtained from the Company’s management is ICSI UDIN: F004206D000266600
adequate and appropriate for us to provide a basis for
our opinion. Date : 04th May, 2022
Place : Thane
5 Wherever required, we have obtained reasonable
assurance whether the statements prepared,

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Annexure ‘F’ to the Board Report

Nomination and remuneration policy 2.3. Directors mean Directors of the Company.
(As per Companies Act, 2013) 2.4. Executive Directors means the Executive Chairman
The Board of Directors of Larsen & Toubro Limited if any, Chief Executive Officer and Managing Director,
(“the Company”) had constituted the “Nomination and Deputy Managing Director, if any and Whole-time
Remuneration Committee” which is in compliance with Directors.
the requirements of the Companies Act, 2013 (“Act”) 2.5. Key Managerial Personnel (KMP) means
and SEBI (Listing Obligations and Disclosure Requirements)
zz Chief Executive Officer or the Managing Director
Regulations, 2015 (“LODR”).
or the Manager;
1. OBJECTIVE: zz Whole-time Directors;
The Nomination and Remuneration Committee and this
zz Chief Financial Officer;
Policy shall be in compliance with Section 178 of the Act
read along with the applicable rules thereto and Regulation zz Company Secretary;
19 of LODR. The Key Objectives of the Committee would zz Senior Management Personnel designated as such
be: by the Board; and
zz To identify persons who are qualified to become zz Such other officer as may be prescribed.
Directors and who may be appointed in senior
management in accordance with the criteria laid 2.6. Senior Management Personnel means all members
down, recommend to the Board their appointment of management one level below the Executive
and removal and shall specify the manner for effective Directors including the Chief Financial Officer and
evaluation of performance of Board, its Committees Company Secretary. Presently, persons in Sr. Vice
and individual Directors to be carried out by the Board President grade and F&A heads of Independent
or the Nomination & Remuneration Committee or Companies reporting to Whole-time Directors will be
by an Independent External Agency and review its covered as Senior Management Personnel.
implementation and compliance; 3. ROLE OF COMMITTEE:
zz To formulate the criteria for determining qualifications, 3.1. Matters to be dealt with, perused and
positive attributes and independence of a Director recommended to the Board by the Nomination
and recommend to the Board a policy, relating to and Remuneration Committee
the remuneration for the Directors, Key Managerial
Personnel and other employees; The Committee shall:

zz To ensure that level and composition of remuneration zz Formulate the criteria for determining
is reasonable and sufficient to attract, retain and qualifications, positive attributes and
motivate Directors of the quality required to run the independence of a Director.
Company successfully; zz Identify persons who are qualified to become
zz Relationship of remuneration to performance is clear Director and persons who may be appointed in
and meets appropriate performance benchmarks; Key Managerial and Senior Management positions
in accordance with the criteria laid down in this
zz Remuneration to Directors, Key Managerial Personnel
policy.
and senior management involves a balance between
fixed and incentive pay reflecting short and long-term zz Recommend to the Board, appointment and
performance objectives appropriate to the working of removal of Director, KMP and Senior Management
the Company and its goals; Personnel.
zz Devising a policy on Board diversity; 3.2. Policy for appointment and removal of Director,
KMP and Senior Management
2. DEFINITIONS:
2.1. Act means the Companies Act, 2013 or Companies 3.2.1. Appointment criteria and qualifications
Act, 1956 as may be applicable and Rules framed a) The Committee shall identify and ascertain the
thereunder, as amended from time to time. integrity, qualification, expertise and experience
2.2. Board means Board of Directors of the Company.

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of the person for appointment as Director and - At the time of appointment of Independent
recommend to the Board his/her appointment. Director it should be ensured that number of
Boards on which such Independent Director
Appointment and Remuneration of KMP or Senior
serves is restricted to seven listed companies
Management Personnel is in accordance with
as an Independent Director and three listed
the HR Policy of the Company. The Company’s
companies as an Independent Director in
policy is committed to acquire, develop and retain
case such person is serving as a Whole-time
a pool of high calibre talent, establish systems
Director of a listed company or such other
and practises for maintaining transparency,
number as may be prescribed under the Act.
fairness and equity and provides for payment
of competitive pay packages matching industry c) Maximum Number of Directorships:
standards. - A person shall not be appointed as a
b) A person should possess adequate qualification, Director in case he is a Director in more than
expertise and experience for the position he / she eight listed companies after April 1, 2019
is considered for appointment. The Committee and seven listed companies after April 1,
has discretion to decide whether qualification, 2020. For the purpose of this clause listed
expertise and experience possessed by a person is companies would mean only those companies
sufficient / satisfactory for the concerned position. whose equity shares are listed.

c) The Company shall not appoint or continue the 3.2.3. Evaluation

employment of any person as Director who has The Committee shall by itself or through the Board or
attained the retirement age fixed by the Board or an independent external agency carry out evaluation
as approved by the Shareholders pursuant to the of performance of the Board/Committee(s), Individual
requirement of the Act/LODR. Directors and Chairman at regular interval (yearly) and
review implementation and compliance.
3.2.2. Term / Tenure
a) Executive Directors: The Company may disclose in the Annual Report:
The Company shall appoint or re-appoint any a. Observation of the Board Evaluation for the year
person as its Executive Director for a term not under review
exceeding five years at a time. No re-appointment
b. Previous years observations and actions taken
shall be made earlier than one year before the
expiry of term. c. Proposed actions based on current year’s
observations
b) Independent Directors:
- An Independent Director shall hold office for 3.2.4. Removal
a term up to five consecutive years on the Due to reasons for any disqualification mentioned
Board of the Company and will be eligible in the Act or under any other applicable Act, rules
for re-appointment on passing of a special and regulations thereunder, the Committee may
resolution by the Company and disclosure of recommend, to the Board with reasons recorded
such appointment in the Board’s report. The in writing, removal of a Director, KMP or Senior
rationale for such re-appointment shall also Management Personnel subject to the provisions and
be provided in the Notice to Shareholders compliance of the said Act, rules and regulations.
proposing such re-appointment.
3.2.5. Retirement
- No Independent Director shall hold office for The Director, KMP and Senior Management Personnel
more than two consecutive terms, but such shall retire as per the applicable provisions of the Act
Independent Director shall be eligible for or the prevailing policy of the Company, as applicable.
appointment after expiry of three years of The Board/Committee will have the discretion to retain
ceasing to become an Independent Director. the Director, KMP, Senior Management Personnel in
Provided that an Independent Director shall the same position/ remuneration or otherwise even
not, during the said period of three years, after attaining the retirement age, for the benefit of
be appointed in or be associated with the the Company.
Company in any other capacity, either directly
or indirectly.

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3.3. Policy relating to the Remuneration of Executive Committee and approved by the shareholders and
Director, KMP and Senior Management Personnel Central Government, wherever required.
3.3.1. General: b) Minimum Remuneration:
a) The remuneration / compensation / commission If, in any financial year, the Company has no
etc. to the Executive Directors will be determined profits or its profits are inadequate, the Company
by the Committee and recommended to the Board shall pay remuneration to its Executive Directors
for approval. The remuneration / compensation / in accordance with the provisions of Schedule
commission etc. shall be subject to the approval V of the Act and if it is not able to comply with
of the shareholders of the Company and Central such provisions, with the previous approval of the
Government, wherever required. Central Government.
b) The remuneration and commission to be paid to c) Provisions for excess remuneration:
the Executive Directors shall be in accordance with
If any Chairman/Managing Director/Whole-time
the percentage / limits / conditions laid down in
Directors draws or receives, directly or indirectly by
the Articles of Association of the Company and as
way of remuneration any such sums in excess of
per the provisions of the Act.
the limits prescribed under the Act or without the
c) Increments to the existing remuneration/ prior sanction of the Central Government, where
compensation structure may be recommended required, he / she shall refund such sums to the
by the Committee to the Board which should be Company and until such sum is refunded, hold it
within the limits approved by the Shareholders in in trust for the Company. The Company shall not
the case of Executive Directors. waive recovery of such sum refundable to it unless
permitted by the Central Government.
d) Where any insurance is taken by the Company
on behalf of its Executive Directors, Chief d) Stock Options in Subsidiary Companies:
Executive Officer, Chief Financial Officer, the Executive Directors may be granted stock options
Company Secretary and any other employees in subsidiary companies as per their Schemes
for indemnifying them against any liability, the and after taking necessary approvals. Perquisites
premium paid on such insurance shall not be may be added to the remuneration of concerned
treated as part of the remuneration payable to Directors and considered in the limits applicable to
any such personnel. Provided that if such person the Company.
is proved to be guilty, the premium paid on
such insurance shall be treated as part of the 3.3.3. Remuneration to Non- Executive / Independent
remuneration. Director:
a) Remuneration / Commission:
e) Remuneration of other KMP or Senior
Management Personnel, in any form, shall be as The remuneration / commission shall be fixed as
per the policy of the Company based on the grade per the limits and conditions mentioned in the
structure in the Company. Articles of Association of the Company and the
Act.
3.3.2. Remuneration to Executive Directors/KMP and
Senior Management Personnel: b) Sitting Fees:
a) Fixed pay: The Non- Executive / Independent Director may
receive remuneration by way of fees for attending
The Executive Directors/ KMP and Senior
meetings of Board or Committee thereof. Provided
Management Personnel shall be eligible for
that the amount of such fees shall not exceed
a monthly remuneration as may be approved
R One Lac per meeting of the Board or Committee
by the Board on the recommendation of the
or such amount as may be prescribed by the
Committee or policy of the Company. In case of
Central Government from time to time.
remuneration to Directors, the breakup of the
pay scale and quantum of perquisites including, c) Commission:
employer’s contribution to P.F, pension scheme, Commission may be paid within the monetary
medical expenses, club fees etc. shall be decided limit approved by shareholders, subject to
and approved by the Board/ the Person authorized the limit not exceeding 1% of the profits of
by the Board on the recommendation of the

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Overview Discussion and Analysis Report Reports Statements

the Company computed as per the applicable 7. COMMITTEE MEMBERS’ INTERESTS

provisions of the Act. The Board of Directors will 7.1 A member of the Committee is not entitled to be
fix the Commission payable to Directors on the present/participate in discussion when his or her own
basis of number of Board/Committee meetings remuneration is discussed at a meeting or when his or
attended during the year and Chairmanships of her performance is being evaluated.
Committees.
7.2 The Committee may invite such executives, as it
d) Stock Options: considers appropriate, to be present at the meetings of
An Independent Director shall not be entitled the Committee.
to any stock option of the Company. Non-
8. SECRETARY
Executive Directors are eligible for Stock options
in accordance with Schemes formulated by the The Company Secretary of the Company shall act as
Company. Nominee Directors are not entitled to Secretary of the Committee.
stock options as per their respective nomination 9. VOTING
letters received by the Company.
Matters arising for determination at Committee
4. MEMBERSHIP meetings shall be decided by a majority of votes of
4.1 The Committee shall consist of a minimum 3 non- Members present and voting and any such decision
executive Directors, half of them being independent. shall for all purposes be deemed a decision of the
Committee.
4.2 Minimum two (2) members or one-third of the
members whichever is greater including atleast one 10. NOMINATION DUTIES
Independent Director shall constitute a quorum for the The duties of the Committee in relation to nomination
Committee meeting. matters include:
4.3 Membership of the Committee shall be disclosed in 10.1 Ensuring that on appointment to the Board,
the Annual Report. Non-Executive Directors receive a formal letter of
appointment in accordance with the Guidelines
4.4 Term of the Committee shall be continued unless
provided under the Act;
terminated by the Board of Directors.
10.2 Determining the appropriate size, diversity and
5. CHAIRPERSON
composition of the Board;
5.1 Chairperson of the Committee shall be an Independent
Director. 10.3 Setting a formal and transparent procedure for
selecting new Directors for appointment to the Board;
5.2 Chairperson of the Company may be appointed
as a member of the Committee but shall not be a 10.4 Developing a succession plan for the Board and Senior
Chairman of the Committee. Management and regularly reviewing the plan;

5.3 In the absence of the Chairperson, the members of the 10.5 Evaluating the performance of the Board members
Committee present at the meeting shall choose one and Senior Management in the context of the
amongst them to act as Chairperson. Company’s performance from business and compliance
perspective;
5.4 Chairman of the Nomination and Remuneration
Committee meeting could be present at the Annual 10.6 Making recommendations to the Board concerning
General Meeting or may nominate some other any matters relating to the continuation in office of
member to answer the shareholders’ queries. any Director at any time including the suspension or
termination of service of an Executive Director as an
6. FREQUENCY OF MEETINGS employee of the Company subject to the provision of
The meeting of the Committee shall be held atleast the law and their service contract;
once in a year and at such regular intervals as may be
10.7 Delegating any of its powers to one or more of its
required.
members or the Secretary of the Committee;

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Integrated Annual Report 2021-22 Annexure to the Board Report

10.8 Recommend any necessary changes to the Board; and 11.4 To consider any other matters as may be requested by
the Board.
10.9 Considering any other matters, as may be requested by
the Board. 11.5 Professional indemnity and liability insurance for
Directors and senior management.
11. REMUNERATION DUTIES
The duties of the Committee in relation to remuneration 12. M
 INUTES OF NOMINATION AND REMUNERATION
matters include: COMMITTEE MEETING
Proceedings of all meetings must be minuted and signed
11.1 To consider and determine the Remuneration Policy,
by the Chairman of the Committee at the subsequent
based on the performance and also bearing in mind
meeting. Minutes of the Committee meetings will be
that the remuneration is reasonable and sufficient to
tabled at the subsequent Board and Committee meeting.
attract, retain and motivate members of the Board
and such other factors as the Committee shall deem 13. REVIEW & AMENDMENT:
appropriate all elements of the remuneration of the The Policy shall be reviewed as and when required
members of the Board. to ensure that it meets the objectives of the relevant
11.2 To ensure the remuneration maintains a balance legislation and remains effective. The Executive Committee
between fixed and incentive pay reflecting short and has the right to change/amend the policy as may be
long term performance objectives appropriate to the expedient taking into account the law for the time being in
working of the Company. force.

11.3 To delegate any of its powers to one or more of its

members or the Secretary of the Committee.

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DELOITTE HASKINS & SELLS LLP

Chartered Accountants
One International Center Tower 3,
32nd Floor, Senapati Bapat Marg
Elphinstone Road (West)
Mumbai – 400 013
Maharashtra, India

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF LARSEN & TOUBRO LIMITED
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Larsen & Toubro Limited (the “Company”), which comprise the
Balance Sheet as at March 31, 2022, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of
Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other
explanatory information, which includes 31 joint operations accounted on proportionate basis.
In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports
of the other auditors on separate financial statements of the joint operations referred to in the Other Matters section below, the aforesaid
standalone financial statements give the information required by the Companies Act, 2013 (the “Act”) in the manner so required and give
a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”), and other accounting principles generally accepted in India, of the state
of affairs of the Company as at March 31, 2022, and its profit, total comprehensive income, its cash flows and the changes in equity for the
year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (“SA”s) specified under
section 143(10) of the Companies Act, 2013 (the “Act”). Our responsibilities under those Standards are further described in the Auditor’s
Responsibility for the Audit of the Standalone Financial Statements section of our report.
We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”)
together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act
and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI’s
Code of Ethics. We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their
reports referred to in the Other Matters section below, is sufficient and appropriate to provide a basis for our audit opinion on the standalone
financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial
statements of the current financial year. These matters were addressed in the context of our audit of the standalone financial statements as
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters
described below to be the key audit matters to be communicated in our report.

Revenue recognition – accounting for construction contracts

Key audit matter There are significant accounting judgements in estimating revenue to be recognised on contracts with customers,
description including estimation of costs to complete. The Company recognizes revenue on the basis of stage of completion in
proportion of the contract costs incurred at balance sheet date, relative to the total estimated costs of the contract
at completion. The recognition of revenue is therefore dependent on estimates in relation to total estimated costs
of each such contract.
Significant judgements are involved in determining the expected losses, when such losses become probable based
on the expected total contract cost. Cost contingencies are included in these estimates to take into account specific
risks of uncertainties or disputed claims against the Company, arising within each contract. These contingencies
are reviewed by the Management on a regular basis throughout the life of the contract and adjusted where
appropriate. The revenue on contracts may also include variable consideration (variations and claims). Variable
consideration is recognised when the recovery of such consideration is highly probable.
Refer to Note No. [1](ii)(e) to the Standalone Financial Statements

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Integrated Annual Report 2021-22 Independent Auditors’ Report

Revenue recognition – accounting for construction contracts

Principal Audit Our audit procedures related to the (1) identification of distinct performance obligations, (2) evaluation of the
Procedures process for estimation of costs to complete (3) evaluation of implications of change orders on costs estimates of
costs to complete and revenue and (4) evaluation of any variable consideration included the following:
• We tested the effectiveness of controls relating to the (a) evaluation of performance obligations and
identification of those that are distinct; (b) estimation of costs to complete each of the performance
obligations including the contingencies in respect thereof, as work progresses and the impact thereon as
a consequence of change orders; (c) the impact of change orders on the transaction price of the related
contracts; and (d) evaluation of the impact of variable consideration on the transaction price.
• We selected a sample of contracts with customers and performed the following procedures:
a. Obtained and read contract documents for each selection, change orders, and other documents that
were part of the agreement.
b. Identified significant terms and deliverables in the contract to assess management’s conclusions
regarding the (i) identification of distinct performance obligations; (ii) changes to costs to complete
as work progresses and as a consequence of change orders; (iii) the impact of change orders on the
transaction price; and (iv) the evaluation of the adjustment to the transaction price on account of variable
consideration.
c. Compared costs incurred with Company’s estimates of costs incurred to date to identify significant
variations and evaluated whether those variations have been considered appropriately in estimating the
remaining costs to complete the contract.
d. Tested the estimate for consistency with the status of delivery of milestones and customer acceptance to
identify possible delays in achieving milestones, which require changes in estimated costs or efforts to
complete the remaining performance obligation.

Measurement of contract assets in respect of overdue milestones and receivables in respect of overdue invoices.
Key audit matter The Company, in its contract with customers, promises to transfer distinct services to its customers, which may
description be rendered in the form of engineering, procurement, and construction (“EPC”) services through design-build
contracts, and other forms of construction contracts. The recognition of revenue is based on contractual terms,
which could be based on agreed unit price or lump-sum revenue arrangements. At each reporting date, revenue
is accrued for costs incurred against work performed that may not have been invoiced. Identifying whether the
Company’s performance has resulted in a service that would be billable and collectable where the works carried out
have not been acknowledged by customers as of the reporting date, or in the case of certain Defence contracts,
where the evidence of work carried out and cost incurred are covered by confidentiality arrangements, involves a
significant amount of judgement. Assessing the recoverability of contract assets related to overdue milestones and
amounts overdue against invoices raised which have remained unsettled for a significantly long period after the
end of the contractual credit period also involves a significant amount of judgment. Refer to Note Nos. [1](ii)(e),
[1](ii)(m) to the Standalone Financial Statements
Principal Audit Our audit procedures related to the (1) evaluation of evidence supporting the execution of work; (2) evaluation
Procedures of recoverability of the overdue amounts including the impact on the expected credit loss allowance; and (3)
assessment of adjusting events after the reporting date i.e. March 31, 2022 and the date when the financial
statements are approved by the Company’s Board of Directors included the following:
• We tested the effectiveness of controls relating to the (a) gathering and evaluation of evidence supporting
the execution of work; (b) evaluation of recoverability of the overdue amounts including the impact on the
expected credit loss allowance; and (c) assessment of adjusting events after the reporting date i.e. March
31, 2022 and the date when the financial statements are approved by the Board of Directors and the impact
thereof on the carrying amount of the related contract assets. Measurement of contract assets in respect of
overdue milestones and receivables in respect of overdue invoices.
• We selected a sample of contracts assets with corresponding trade receivables that were overdue and
evaluated the basis for management’s conclusions regarding the (1) evidence supporting the execution of
work for which the contract assets were recognised; (2) reasons for the delays in recovery of invoices and the
basis on which recoverability of the contract assets was assessed; (3) impact on the allowance for expected
credit losses; and (4) adjusting events after the reporting date i.e. March 31, 2022 and the date when the
financial statements are approved by the Board of Directors and the impact thereof on the carrying amount of
the related contract assets.
• In respect of the sample contracts, we compared previous estimates relating to recoverability of contract assets
and compared it with actual collections during the year.

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Impairment of Investment in a Subsidiary

Key audit matter As at March 31, 2022, the Company held investment with a carrying amount of R 2,439.00 crore (excluding
description R 3,726.70 crore in inter corporate deposits and R 1,145.63 crore in debentures) in L&T Metro Rail (Hyderabad)
Limited, a wholly owned subsidiary. This investment is carried at cost less impairment in the Company’s standalone
financial statements. Consequent to accumulation of losses incurred by the subsidiary, the Company’s management
has tested this investment for impairment in accordance with Ind AS 36 by comparing its recoverable amount with
it carrying amount as at March 31, 2022. The recoverable amount of the investment in the subsidiary is assessed
based on future discounted cash flows of the subsidiary.
We considered this as a key audit matter due to significant judgement involved in estimating future cash flows of
the subsidiary and in determining the discount rate to be used. Changes in inputs and assumptions could impact
the results of the impairment assessment.
Refer to Note Nos. [1](ii)(m) to the Standalone Financial Statements.
Principal Audit Our audit procedures related to forecasts of future traffic, revenue, free cash flows generated, selection of the
Procedures method for estimating recoverable value and discount rate for the entity included the following:
• We tested the effectiveness of controls over forecasts of future traffic, revenue, free cash flows and selection
of the discount rate;
• We evaluated the reasons for variation between the management’s previous estimate of traffic, revenue and
cash flow forecasts and obtained our understanding of the manner in which revised forecasts were obtained;
• With the assistance of our fair value specialists who have specialised skill and knowledge, we evaluated
the reasonableness of the methodology and discount rate by testing the source information underlying the
determination of the discount rate and mathematical accuracy of the calculations; and
• We performed a sensitivity analysis on the discount rate to assess the extent of change in discount rate that
would be required for the investment to be impaired.
Information Other than the Financial Statements and Auditor’s Report Thereon (‘other information’)
The Boards of Directors of the Company is responsible for the preparation of other information. The other information comprise the
information included in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report, Business
Responsibility Report, Corporate Governance and Shareholder’s Information, but does not include the standalone financial statements and our
auditor’s report.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during
the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (the “Act”) with respect
to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance
including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Ind AS and other
accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the standalone financial statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Company’s Board of Directors is also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these standalone financial statements.

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As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has
adequate internal financial controls system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by the management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether
the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the Company and its joint operations to express an
opinion on the standalone financial statements. We are responsible for the direction, supervision and performance of the audit of the
financial statements of such entities included in the standalone financial statements of which we are the independent auditors. For
the other entities included in the standalone financial statements, which have been audited by the other auditors, such other auditors
remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our
audit opinion.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable
that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Other Matters
• We did not audit the financial information of 29 joint operations included in the standalone financial statements, whose financial
information reflects total assets of R 2,972.06 crore as at March 31, 2022, total revenues of R 3,217.48 crore, total net loss after tax (net)
of R 187.97 crore, total comprehensive loss (net) of R 187.97 crore and net cash inflows of R 97.18 crore for the year ended March 31,
2022, respectively, as considered in the standalone financial statements. The financial information of these joint operations has been
audited by the other auditors whose reports have been furnished to us by the Management of the Company, and our opinion in so far
as it relates to the amounts and disclosures included in respect of these joint operations, is based solely on the reports of such other
auditors and the procedures performed by us as stated under Auditor’s Responsibilities section above.
• We did not audit the financial information of 1 joint operation included in the standalone financial statements, whose financial
information reflects total assets of R 1,067.79 crore as at March 31, 2022, total revenues of R 352.96 crore, total net profit after tax (net)
of R 11.91 crore, total comprehensive profit (net) of R 11.91 crore and net cash inflows of R 5.10 crore for the year ended March 31,
2022, respectively, as considered in the standalone financial statements. The financial information of this joint operation has not been
audited by the auditor whose financial information has been furnished to us by the Management of the Company, and our opinion in
so far as it relates to the amounts and disclosures included in respect of this joint operation, is based solely on the financial information
certified by the management of the Company. According to the information and explanations given to us by the Management, the
financial information of this entity is not material to the Company.
Our opinion on the standalone financial statements and our report on Other Legal and Regulatory Requirements below is not modified in
respect of the these matters with respect to our reliance on the work done and the reports of the other auditors and the financial information
certified by the management.

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Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, based on our audit and based on the consideration of the reports of the other auditors on the
separate financial information of the joint operations referred to in Other Matters section above we report, to the extent applicable that:
a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were necessary
for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company and its joint operation company so far
as it appears from our examination of those books and the reports of the other auditors.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and
Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2022 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2022 from being appointed as a director in terms of Section 164(2)
of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating
effectiveness of such controls, refer to our separate Report in “Annexure A”. Our report expresses an unmodified opinion on the
adequacy and operating effectiveness of the Company’s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section 197(16)
of the Act, as amended. In our opinion and to the best of our information and according to the explanations given to us, the
remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to
us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable
losses, if any, on long-term contracts, including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by
the Company;
iv. a. The Management has represented that, to the best of it’s knowledge and belief, no funds (which are material either
individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium
or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign
entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b. The Management has represented, that, to the best of it’s knowledge and belief, no funds (which are material either
individually or in the aggregate) have been received by the Company from any person(s) or entity(ies), including foreign
entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall,
directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries; and
c. Based on the audit procedures that has been considered reasonable and appropriate in the circumstances, nothing
has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e)
contain any material mis-statement; and
v. The amount of dividend is in accordance with Section 123 of the Act.
a) The final dividend paid by the Company during the year in respect of the same declared for the previous year is in
accordance with Section 123 of the Companies Act 2013 to the extent it applies to payment of dividend.
b) As stated in note 17 to the financial statements, the Board of Directors of the Company have proposed final dividend
for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of
dividend declared is in accordance with section 123 of the Act to the extent it applies to declaration of dividend.
2. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central Government in terms of Section
143(11) of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm‘s Registration No.117366W/W-100018)

Sanjiv V. Pilgaonkar
Partner
(Membership No. 39826)
UDIN: 22039826AIVCQV7676

Place: Mumbai
Date: May 12, 2022

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ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1(f) under “Report on Other Legal and Regulatory Requirements” section of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (the “Act”)
We have audited the internal financial controls over financial reporting of Larsen and Toubro Limited (the “Company”) as of March 31, 2022
in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date which includes
internal financial controls over financial reporting of one of the Company’s 31 joint operations which is a company incorporated in India.

Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing and maintaining internal financial controls based on the internal control over
financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note
on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (“ICAI”). These
responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for
ensuring the orderly and efficient conduct of its business, including adherence to respective company’s policies, the safeguarding of its assets,
the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.

Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting of the Company and its joint
operations company incorporated in India, based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the
“Guidance Note”) issued by the ICAI and the Standards on Auditing (“SA”s) prescribed under Section 143(10) of the Companies Act, 2013
(the “Act”), to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls
over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained, and the audit evidence obtained by the other auditor of the joint operation which is
a company incorporated in India, in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to
provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection
of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.

Opinion
In our opinion, to the best of our information and according to the explanations given to us and based on the consideration of the reports
of the other auditor on internal financial controls system over financial reporting of the joint operation referred to in the Other Matters
paragraph below, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such
internal financial controls over financial reporting were operating effectively as at March 31, 2022, based on the criteria for internal financial
control over financial reporting established by the respective Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

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Overview Discussion and Analysis Report Reports Statements

Other Matters
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over
financial reporting insofar as it relates to one joint operation which is a company incorporated in India, is based on the corresponding report
of the other auditor of such company incorporated in India.

Our opinion is not modified in respect of this matter.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants
(Firm‘s Registration No.117366W/W-100018)

Sanjiv V. Pilgaonkar
Partner
(Membership No. 39826)
UDIN: 22039826AIVCQV7676

Place: Mumbai
Date: May 12, 2022

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Integrated Annual Report 2021-22 Independent Auditors’ Report

ANNEXURE “B” TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report to the Members of Larsen &
Toubro Limited of even date)

In terms of the information and explanations sought by us and given by the Company and the books of account and records examined by us
in the normal course of audit and to the best of our knowledge and belief, we state that:

(i) In respect of the Company’s property, plant and equipment and intangible assets:

(a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of property,
plant and equipment, capital work-in progress, investment properties and relevant details of right-of-use assets.

(B) The Company has maintained proper records showing full particulars of intangible assets.

(b) The Company has a program of physical verification of its property, plant and equipment and investment properties so to cover
all the items in a phased manner over a period of 3 years which, in our opinion, is reasonable having regard to the size of the
Company and the nature of its assets. Pursuant to the program, certain assets were due for verification during the year and were
physically verified by the Management during the year. No material discrepancies were noticed on such verification.

(c) With respect to immovable properties (other than properties where the Company is the lessee and the lease agreements are duly
executed in favour of the Company) disclosed in the financial statements as a part of property, plant and equipment, capital
work-in progress and investment property and based on the examination of the registered sale deed / transfer deed / conveyance
deed provided to us, we report that, the title deeds of such immovable properties are held in the name of the Company as at the
balance sheet date, except for the following:

R crore
Carrying Whether Reason for not
Gross Period held
value in the promoter, being held in name
carrying – indicate
Description of financial director of Company
value as at Held in name of range,
property statements or their
March 31, where Also indicate if in
as at March relative or
2022 appropriate dispute
31, 2022 employee
Land - Undivided Land 0.13 0.13 SVM Industries No 30 years
at 171, SP Mukherjee (Since 1992) Conveyance deed
Road, Kolkata, West is pending to be
Bengal (Area- 3925 executed.
sq ft) Appeal is pending
Building - 4 flats - 171, 0.15 0.12 SVM Industries No 29 years before the High
SP Mukherjee Road, (Since 1993) Court of Calcutta
Kolkata, West Bengal

Freehold Land – Hazira 1.01 1.01 1. Magan Kuber * No 10 years Land acquired from
West 2. Kashiben Patel (Since 2012) farmers through
3. Ishwar Prema Government
Acquisition Route.
The formalities are
pending from the
authorities side.
* Irrevocable Power of Attorney given to L&T by the owners, possession is with L&T

(d) The Company has not revalued any of its property, plant and equipment (including Right of Use assets) and intangible assets during
the year.

(e) No proceedings have been initiated or is pending against the company as at March 31, 2022 for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(ii) In respect of the Company’s inventories:

(a) The inventories except for goods in transit, were physically verified during the year by the Management at reasonable intervals. In
case of real estate inventory wherein, having regard to the nature of inventory, the physical verification by way of verification of title
deeds, site visits by the Management and certification to the extent of work completion by competent persons, are at reasonable

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Overview Discussion and Analysis Report Reports Statements

intervals. In our opinion, the coverage and procedure of such verification by the Management is appropriate having regard to the
size of the Company and the nature of its operations. In respect of goods in transit, the goods have been received subsequent
to the year end. No discrepancies of 10% or more in the aggregate for each class of inventories were noticed on such physical
verification of inventories when compared with books of account.

(b) The Company has been sanctioned working capital limits in excess of R 5 crores, in aggregate, at points of time during the year,
from banks or financial institutions on the basis of security of current assets. In our opinion, the quarterly returns filed by the
Company with such banks or financial institutions are in agreement with the unaudited books of account of the Company of the
respective quarters and no material discrepancies have been observed.

(iii) The Company has made investments in, provided guarantee and granted loans, secured or unsecured, to companies or any other parties
during the year, in respect of which:

(a) The Company has provided loans and stood guarantee during the year and details of which are given below:
R crore
Particulars Loans Guarantees Security
A. Aggregate amount granted / provided during the year:
- Subsidiaries 3,473.25 9,816.00 NIL
- Joint Venture NIL NIL NIL
- Associates NIL NIL NIL
- Others NIL NIL NIL
B. Balance Outstanding as at balance sheet date in respect of
above cases*
- Subsidiaries 5,255.52 12,616.00 NIL
- Joint Venture NIL NIL NIL
- Associates NIL NIL NIL
- Others NIL NIL NIL
*The amounts reported are at gross amounts (including interest accrued), without considering provisions made and includes investments
made in debt instruments issued by subsidiaries.

The Company has not provided any advances in the nature of loans to any other entity during the year.

(b) The investments made, guarantees provided and the terms and conditions of the grant of all the above-mentioned loans and
guarantees provided, during the year are, in our opinion, prima facie, not prejudicial to the Company’s interest.

(c) In respect of loans granted by the Company, the schedule of repayment of principal and payment of interest has been stipulated
and the repayments of principal amounts and receipts of interest are regular as per stipulation, except for the following:
R crore
Name of the entity Nature Amount Due Date Extent of Delay Remarks, if any
L&T Sapura Shipping Interest on Bridge Loan 1.71 December 31, 90 days Interest accrued for the
Private Limited for Working Capital 2021 quarter ended December
2021 remains unpaid
L&T Sapura Shipping Interest on Bridge Loan 1.79 March 31, 1 day Interest accrued for the
Private Limited for Working Capital 2022 quarter ended March 2022
remains unpaid
Refer to Note No. 63(b)(ii) to the Standalone Financial Statements.

(d) In respect of loans granted by the Company, there is no amount overdue for more than 90 days at the balance sheet date.

(e) During the year loans aggregating to R 193.14 crore fell due from certain parties have been renewed. The details of such loans that
fell due and were renewed during the year are stated below:
R crore
Aggregate amount of Percentage of the aggregate to the total
Name of the Party
existing loans renewed loans or advances granted during the year
Hi-Tech Rock Products and Aggregates Limited 24.66 0.71%
L&T Sapura Shipping Private Limited 168.48 4.85%
Refer to Note No. 63(b) to the Standalone Financial Statements.

(f) The Company has not granted any loans either repayable on demand or without specifying any terms or period of repayment
during the year. Hence, reporting under clause (iii)(f) is not applicable.

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(iv) The Company has complied with the provisions of Sections 185 and 186 of the Act, to the extent applicable, in respect of grant of loans,
making investments and providing guarantees and securities during the year, as applicable.

(v) The Company has not accepted any deposit or amounts which are deemed to be deposits. Hence, reporting under clause (v) of the Order
is not applicable.

(vi) The maintenance of cost records has been specified by the Central Government under section 148(1) of the Act. We have broadly
reviewed the cost records maintained during the year by the Company pursuant to the Companies (Cost Records and Audit) Rules,
2014, as amended and prescribed by the Central Government under sub-section (1) of Section 148 of the Act, and are of the opinion
that, prima facie, the prescribed cost records have been made and maintained by the company. We have, however, not made a detailed
examination of the cost records with a view to determine whether they are accurate or complete.

(vii) In respect of statutory dues:

(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees’ State
Insurance, Income-tax, Goods and Service Tax, Sales Tax, duty of Custom, duty of Excise, Value Added Tax and corresponding cess
and other material statutory dues applicable to it to the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident Fund, Employees’ State Insurance, Income-tax, Goods and
Service Tax, Sales Tax, duty of Custom, duty of Excise, Value Added Tax and corresponding cess and other material statutory dues in
arrears as at March 31, 2022 for a period of more than six months from the date they became payable.

(c) Details of statutory dues referred to in sub-clause (a) above which have not been deposited as on March 31, 2022 on account of
disputes are given below:
R crore
Forum where Dispute Period to which Amount Amount
Name of Statute Nature of Dues
is Pending amount relates Involved Unpaid
Goods and Services Disallowance of credits claimed in Tran-1 Assistant Commissioner 2017-18 and 0.95 0.95
Tax Act, 2017 2018-19
Disallowance of credits claimed in Tran-1 Assistant Joint 2017-18 16.25 14.86
 
Commissioner
  Disallowance of Input Tax Credit Commissioner (Appeals) 2018-19 85.86 80.49
The Central Excise Dispute regarding questions of law, Supreme Court 2011-12 to 0.09 –
Act, 1944, Service classification dispute, Rate disputes and 2015-16
Tax under Finance other matters
Act, 1994 and Dispute regarding questions of law, High Court 2005-06 to
Customs Act, 1962 classification dispute and other matters 2012-13, 2014-15 169.26 149.89
to 2017-18
 
Dispute regarding question of law, CESTAT 2003-04, 2005-06
  Disallowance of CENVAT credit, short to 2017-18 1,219.40 1,169.49
payment of service tax, Valuation
 
disputes, dispute regarding classification
  of services/goods, disallowances of excise
duty exemption, Non-Maintenance of
  Separate Books of Accounts, Export
rebate disallowance, and other matters.
Dispute of question of law, Disallowance Commissioner (Appeals) 2006-07, 2012-13
of CENVAT credit, short payment of to 2017-18 and 5.86 4.41
service tax, pending forms, service tax 2021-22
rate dispute, valuation dispute and other
matters.
Disallowance of CENVAT credit, short Deputy Commissioner 2014-15 to 0.15 0.15
payment of service tax, pending forms, 2017-18
service tax rate dispute, valuation dispute
and other matter
Differential Custom Duty DGFT 2016-17 1.05 0.79

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Overview Discussion and Analysis Report Reports Statements

R crore
Forum where Dispute Period to which Amount Amount
Name of Statute Nature of Dues
is Pending amount relates Involved Unpaid
The Central Sales Dispute of questions of law, Classification Supreme Court of India 2006-07 to
Tax Act, Entry tax, dispute, Tax levied on goods-in-transit, 2015-16 760.37 741.34
Local Sales Tax Act, labour charges & disallowance of input tax
Works Contract Tax credit on deemed export sales, Taxability
Act and Goods & of sub- contractor turnover, rate of tax
Services Tax Act for declared goods and non- submission
of forms
Disallowance of sales-in-transit, Taxability High Court 1986-87, 1987-88,
of subcontractor turnover, Disallowance 1993-94, 1994-95, 211.62 197.94
of labour charges, Dispute regarding 1999-00 to 2012-
questions of law, classification dispute, 13, 2015-16
local VAT and Works contract disputes
Non submission of Forms, classification Sales Tax/VAT Tribunal 1989-90, 1991-
disputes, inter-state sale turnover, Rate of 92,1993-94 to 827.48 658.38
tax of declared goods, Labour & service 2017-18
charges disallowed, Disallowance of
exemptions claimed for imports & Sales
in transit, Sale mismatch & levy of tax on
import of goods through Way bill, Road
permit issue and other
Non Submission of forms, subcontractor CAG 2010-11, 2015-16
turnover and interest related disputes and 11.28 9.91
CAG notice for interest on non-submission
of C, E1 & F Forms
Demand for pending Forms Special Objection 2012-13 to 2015-16 0.63 0.61
Hearing Authority
Sale in Transit disallowance & WCT TDS Rajasthan Tax Board 2006-07 to 2016-17 239.34 234.25
related disputes
Dispute regarding questions of law, Joint commissioner 1989-90, 1996-97
classification dispute, sales in transit, high Appeals/ Additional to 2017-18 1,378.42 1,210.09
sea sales, non-submission of C forms & E1 Commissioner Appeals/
forms, disallowance of ITC, valuation of Deputy Commissioner
goods and other matters Appeals/Assistant
Commissioner Appeals/
Commissioner Appeals
Dispute regarding questions of law, Assistant Commissioner/ 1996-97 to
classification dispute, sales in transit, high Deputy Commissioner/ 1999-00, 2001-02 1,748.62 1,666.47
sea sales, non-submission of C forms & E1 Additional to 2017-18
forms, disallowance of ITC, valuation of Commissioner/
goods and other matters Joint Commissioner/
Commissioner
Subcontractor Turnover, ITC disallowed Special commissioner 2008-09, 2010-11, 161.50 161.00
and Labor & Like Charges Disallowed 2012-13 to 2017-18

Non-Submission of forms, subcontractor Assessing Officer 1999-00 to

turnover related disputes and Arbitrary 2005-06, 2007-08, 17.91 14.73
enhancement of turnover 2009-10 to 2017-18
The Mumbai Property Tax for various development Supreme 2010-11 to 2021-22 136.12 70.84
Municipal works at Powai, Mumbai, Property Tax on Court of India
Corporation Act, open land ( Unutilised FSI ) and Property
1888  Tax on Land under construction
Income Tax Act, Demands arising out of Regular High court 1994-95 7.98 7.98
1961 Assessment/ Reassessment
Demands arising out of Regular Income Tax Appellate 2004-05, 2009-10, 718.39 254.69
Assessment/ Reassessment Tribunal (ITAT) 2011-12, 2012-13
Demands arising out of Regular CIT(A) 2011-12, 2014-15 2,428.08 2,245.21
Assessment/ Reassessment to 2018-19

373
Integrated Annual Report 2021-22 Independent Auditors’ Report

(viii) There were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax
assessments under the Income Tax Act, 1961 (43 of 1961) during the year.

(ix) In respect of borrowings:

(a) In our opinion, during the year, the Company has not defaulted in the repayment of loans or other borrowings or in the payment of
interest thereon to any lender during the year.

(b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.

(c) The Company has not taken any term loan during the year and there are no unutilized term loans at the beginning of the year and
hence, reporting under clause (ix)(c) of the Order is not applicable.

(d) On an overall examination of the financial statements of the Company, funds raised on short-term basis have, prima facie, not been
used during the year for long-term purposes by the Company.

(e) On an overall examination of the financial statements of the Company, the Company has not taken any funds from any entity or
person on account of or to meet the obligations of its subsidiaries or associates. or joint ventures.

(f) The Company has not raised loans during the year on the pledge of securities held in its subsidiaries or joint ventures or associate
companies.

(x) In respect of issue of securities:

(a) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) during the
year and hence reporting under clause (x)(a) of the Order is not applicable.

(b) During the year, the Company has not made any preferential allotment or private placement of shares or convertible debentures
(fully or partly or optionally) and hence, reporting under clause (x)(b) of the Order is not applicable to the Company.

(xi) In respect of fraud:

(a) No fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

(b) No report under sub-section (12) of section 143 of the Companies Act has been filed in Form ADT-4 as prescribed under rule 13 of
Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto the date of this report.

(c) We have taken into consideration, the whistle blower complaints received by the company during the year and upto the date of this
report and provided to us, when performing our audit.

(xii) The Company is not a Nidhi Company. Therefore, reporting under clause (xii) of the Order is not applicable.

(xiii) In our opinion, the Company is in compliance with Section 177 and 188 of the Act, where applicable, for all transactions with the
related parties undertaken during the year and the details of such related party transactions have been disclosed in the standalone
financial statements as required by the applicable accounting standards.

(xiv) In respect of internal audit:

(a) In our opinion the Company has an adequate internal audit system commensurate with the size and the nature of its business.

(b) We have considered, the internal audit reports for the year under audit, issued to the Company during the year and till date, in
determining the nature, timing and extent of our audit procedures.

(xv) In our opinion, during the year the Company has not entered any non-cash transactions with its Directors or persons connected to its
Directors and hence provisions of section 192 of the Act are not applicable.

(xvi) (a) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Hence, reporting under
clause (xvi)(a), (b) and (c) of the Order is not applicable.

(b) The Group has more than one Core Investment Company (CIC) as part of the group. There are two CIC forming part of the group.

(xvii) The Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.
(xviii) There has been no resignation of the statutory auditors of the Company during the year.

374
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

(xix) On the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other
information accompanying the financial statements and our knowledge of the Board of Directors and Management plans and based on
our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any
material uncertainty exists as on the date of the audit report indicating that Company is not capable of meeting its liabilities existing at
the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that
this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date
of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from
the balance sheet date, will get discharged by the Company as and when they fall due.

(xx) The Company has fully spent the required amount towards Corporate Social Responsibility (CSR) and there are no unspent CSR amount
for the year requiring a transfer to a Fund specified in Schedule VII to the Companies Act or special account in compliance with the
provision of sub-section (6) of section 135 of the said Act. Accordingly, reporting under clause (xx) of the Order is not applicable for the
year.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants
(Firm‘s Registration No.117366W/W-100018)

Sanjiv V. Pilgaonkar
Partner
(Membership No. 39826)
UDIN: 22039826AIVCQV7676

Place: Mumbai
Date: May 12, 2022

375
Integrated Annual Report 2021-22 Balance Sheet

Balance Sheet as at March 31, 2022

v crore
Note As at 31-3-2022 As at 31-3-2021
ASSETS:
Non-current assets
Property, plant and equipment 2 7908.37 8198.54
Capital work-in-progress 2 571.50 238.71
Investment property 3 589.64 408.36
Goodwill 47.29 47.29
Other Intangible assets 4 147.29 70.83
Intangible assets under development 4 11.26 48.01
Right-of-use assets 54(b) 420.59 440.07
Financial assets
Investments 5 27049.50 27180.62
Loans 6 4084.58 2853.52
Other financial assets 7 523.80 531.78
31657.88 30565.92
Deferred tax assets (net) 44(e) 1140.30 754.27
Other non-current assets 8 3990.30 3898.29
Sub-total - Non-current assets 46484.42 44670.29
Current assets
Inventories 9 3132.51 2877.57
Financials assets
Investments 10 18478.22 22232.95
Trade receivables 11 36347.35 33331.60
Cash and cash equivalents 12 5718.23 3524.95
Other bank balances 13 780.28 650.59
Loans 14 249.60 257.87
Other financial assets 15 2182.44 2513.99
63756.12 62511.95
Other current assets 16 55129.23 49855.81
Sub-total - Current assets 122017.86 115245.33
TOTAL ASSETS 168502.28 159915.62

376
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Balance Sheet as at March 31, 2022 (contd.)

v crore
Note As at 31-3-2022 As at 31-3-2021
EQUITY AND LIABILITIES:
Equity
Equity share capital 17 281.01 280.91
Other equity 18 66833.04 61456.91
Total equity 67114.05 61737.82
Liabilities
Non- current liabilities
Financial liabilities
Borrowings 19 12968.41 16646.73
Lease liability 53.98 76.24
Other financial liabilities 20 145.25 94.25
13167.64 16817.22
Provisions 21 645.27 655.90
Other non-current liabilities 22 7.84 –
Sub-total - Non-current liabilities 13820.75 17473.12
Current liabilities
Financial liabilities
Borrowings 23 2097.39 6827.90
Current maturities of long-term borrowings 24 5232.49 999.56
Lease liability 124.44 114.03
Trade payables: 25
Due to micro enterprises and small enterprises 473.67 448.30
Due to others 44911.67 40321.48
Other financial liabilities 26 3317.63 2451.53
56157.29 51162.80
Other current liabilities 27 28888.84 27474.76
Provisions 28 1861.48 1650.38
Current tax liabilities (net) 659.87 416.74
Sub-total - Current liabilities 87567.48 80704.68
TOTAL LIABILITIES 101388.23 98177.80
TOTAL EQUITY AND LIABILITIES 168502.28 159915.62
CONTINGENT LIABILITIES 29
COMMITMENTS (capital and others) 30
NOTES FORMING PART OF THE FINANCIAL STATEMENTS 1 to 65

In terms of our report attached

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants S. N. SUBRAHMANYAN
Firm’s Registration No.117366W/W-100018 Chief Executive Officer & Managing Director
by the hand of (DIN 02255382)

SANJIV V. PILGAONKAR
Partner R. SHANKAR RAMAN M. M. CHITALE
Membership No. 39826 Whole-time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 00101004)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939

Mumbai, May 12, 2022

377
Integrated Annual Report 2021-22 Statement of Profit and Loss

Statement of Profit and Loss for the year ended March 31, 2022
v crore
Note 2021-22 2020-21
Continuing operations
INCOME:
Revenue from operations 31 101000.41 87255.48
Other income[net] 32 3612.65 3360.29
Total Income 104613.06 90615.77
EXPENSES:
Manufacturing ,construction and operating expenses 33
Cost of raw materials components consumed 12590.86 12293.75
Construction materials consumed 31445.49 22869.85
Purchase of stock-in-trade 1070.62 1226.68
Stores, spares and tools consumed 2718.52 1701.07
Sub-contracting charges 25166.38 21993.33
Changes in inventories of finished goods, stock-in-trade and
work-in-progress (1944.37) 362.10
Other manufacturing, construction and operating expenses 10517.85 9183.68
81565.35 69630.46
Employee benefits expense 34 7396.88 6398.20
Sales, administration and other expenses 35 2982.68 2917.34
Finance costs 36 1754.24 2381.71
Depreciation,amortisation,impairment and obsolescence 37 1172.50 1150.68
Total Expenses 94871.65 82478.39
Profit before exceptional items and tax 9741.41 8137.38
Tax expenses
Current tax 44(a) 2405.17 1847.72
Deferred tax 44(a) (275.92) 323.70
2129.25 2171.42
Net profit after tax (before exceptional items) from continuing 7612.16 5965.96
operations
Exceptional items before tax 59 290.06 (2818.65)
Tax expense on exceptional items 22.77 –
Exceptional items (net of tax) 267.29 (2818.65)
Net profit after tax from continuing operations 7879.45 3147.31
Discontinued operations
Profit before tax from discontinued operations 39(a)(i) – 11199.23
Tax expense of discontinued operations 44(a) – 2548.75
Net profit after tax from discontinued operations – 8650.48
Net profit after tax from continuing operations & discontinued 7879.45 11797.79
operations
Other comprehensive income
A Items that will not be reclassified to Profit or Loss:
Gain/(loss) on remeasurement of the defined benefits plan 77.53 52.63
Income tax (expenses)/income on remeasurments of the defined benefits
plan (19.51) (13.27)
58.02 39.36
Carried forward - other comprehensive income 58.02 39.36

378
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Statement of Profit and Loss for the year ended March 31, 2022 (contd.)
v crore
Note 2021-22 2020-21
Brought forward - other comprehensive income 58.02 39.36
B Items that will be reclassified to Profit or Loss:
Debt instruments through other comprehensive income (177.90) 239.46
Income tax (expenses)/income on debt instruments through other
comprehensive income 40.70 (54.79)
(137.20) 184.67
Exchange differences in translating the financial statements of
foreign operations (26.59) 17.56
Income tax (expenses)/income on exchange differences in
translating the financial statements of foreign operations 6.69 (4.42)
(19.90) 13.14
Effective portion of gains/(losses) on hedging instruments in a
cash flow hedge 69.17 218.43
Income tax (expenses)/income on effective portion of
gains/(losses) on hedging instruments in a cash flow hedge (8.59) (69.74)
60.58 148.69
Cost of hedging reserve 3.06 11.80
Income tax (expenses)/income on cost of hedging reserve (0.77) (2.97)
2.29 8.83
Other comprehensive income for the year (net of tax) (36.21) 394.69
Total comprehensive income for the year 7843.24 12192.48
Earnings per share (EPS) of R 2 each from continuing operations:
Basic earnings per equity share (R) 49 56.09 22.41
Diluted earnings per equity share (R) 49 56.03 22.39
Earnings per share (EPS) of R 2 each from discontinued operations:
Basic earnings per equity share (R) 49 – 61.61
Diluted earnings per equity share (R) 49 – 61.54
Earnings per share (EPS) of R 2 each from continuing operations &
discontinued operations:
Basic earnings per equity share (R) 49 56.09 84.02
Diluted earnings per equity share (R) 49 56.03 83.93
Face value per equity share (R) 2.00 2.00
NOTES FORMING PART OF THE FINANCIAL STATEMENTS 1 to 65

In terms of our report attached

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants S. N. SUBRAHMANYAN
Firm’s Registration No.117366W/W-100018 Chief Executive Officer & Managing Director
by the hand of (DIN 02255382)

SANJIV V. PILGAONKAR
Partner R. SHANKAR RAMAN M. M. CHITALE
Membership No. 39826 Whole-time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 00101004)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939

Mumbai, May 12, 2022

379
Integrated Annual Report 2021-22 Statement of changes in Equity

Statement of Changes in Equity for the year ended March 31, 2022
A. Equity share capital
2021-22 2020-21
Particulars Number of Number of
v crore v crore
shares shares
Issued, subscribed and fully paid up equity share outstanding at the beginning of the year 1,40,45,55,297 280.91 1,40,38,92,022 280.78
Add: Shares issued on exercise of employee stock options during the year 4,73,826 0.10 6,63,275 0.13
Issued, subscribed and fully paid up equity shares outstanding at the end of the year 1,40,50,29,123 281.01 1,40,45,55,297 280.91

B. Other equity
v crore
Reserves and surplus Items of Other Comprehensive Income
Debt
Capital Capital Employee Debenture Foreign instruments Total other
Particulars Capital reserve on redemption Securities share General Retained currency Hedging through equity
reserve business reserve premium options redemption
reserve reserve earnings translation reserve other
combination (net) reserve comprehen-
sive income
Balance as at 1-4-2020 10.52 (25.77) – 8599.60 99.92 533.53 25669.50 16957.17 (4.14) (61.31) 115.55 51894.57
Change on account of business combination 0.32 – – – – 1.21 838.62 – 120.17 – 960.32
Restated balance at 1-4-2020 10.84 (25.77) – 8599.60 99.92 533.53 25670.71 17795.79 (4.14) 58.86 115.55 52,854.89
Profit for the year (a) – – – – – – – 11797.79 – – – 11797.79
Other comprehensive income (b) – – – – – – – 39.36 13.14 157.52 184.67 394.69
Total comprehensive income for the year (a+b) – – – – – – – 11837.15 13.14 157.52 184.67 12192.48
Issue of equity shares – – – 68.05 – – – – – – – 68.05
Transfer to non-financial assets/liabilities – – – – – – – – – (1.86) – (1.86)
Transfer from/(to) general reserve – – – – (6.54) (394.88) 401.42 – – – – –
Employee share options (net) – – – – (5.76) – – – – – – (5.76)
Transfer to capital redemption reserve – – 260.00 – – – – (260.00) – – – –
Special dividend – – – – – – – (2527.66) – – – (2527.66)
Dividend paid for previous year – – – – – – – (1123.23) – – – (1123.23)
Balance as at 31-3-2021 10.84 (25.77) 260.00 8667.65 87.62 138.65 26072.13 25722.05 9.00 214.52 300.22 61456.91

380
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Statement of Changes in Equity for the year ended March 31, 2022 (contd.)
v crore
Reserves and surplus Items of Other Comprehensive Income
Debt
Capital Capital Employee Debenture Foreign instruments Total other
Particulars Capital reserve on redemption Securities share General Retained currency Hedging through equity
reserve business reserve premium options redemption
reserve reserve earnings translation reserve other
combination (net) reserve comprehen-
sive income
Balance as at 1-4-2021 10.84 (25.77) 260.00 8667.65 87.62 138.65 26072.13 25722.05 9.00 214.52 300.22 61456.91
Profit for the year (c) – – – – – – – 7879.45 – – – 7879.45
Other comprehensive income (d) – – – – – – – 58.02 (19.90) 62.87 (137.20) (36.21)
Total comprehensive income for the year (c+d) – – – – – – – 7937.47 (19.90) 62.87 (137.20) 7843.24
Issue of equity shares – – – 51.09 – – – – – – – 51.09
Transfer to non-financial assets/liabilities – – – – – – – – – 1.12 – 1.12
Transfer from/(to) general reserve – – – – (7.30) – 7.30 – – – – –
Employee share options (net) – – – – 9.06 – – – – – – 9.06
Dividend paid for previous year – – – – – – (2528.38) – – – (2528.38)
Balance as at 31-3-2022 10.84 (25.77) 260.00 8718.74 89.38 138.65 26079.43 31131.14 (10.90) 278.51 163.02 66833.04

In terms of our report attached

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants S. N. SUBRAHMANYAN
Firm’s Registration No.117366W/W-100018 Chief Executive Officer & Managing Director
by the hand of (DIN 02255382)

SANJIV V. PILGAONKAR
Partner R. SHANKAR RAMAN M. M. CHITALE
Membership No. 39826 Whole-time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 00101004)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939

Mumbai, May 12, 2022

381
Integrated Annual Report 2021-22 Statement of Cash Flows

Statement of Cash Flows for the year ended March 31, 2022
v crore
2021-22 2020-21
A. Cash flow from operating activities:
Profit before tax (excluding exceptional items) from:
Continuing operations 9741.41 8137.38
Discontinued operations – 11199.23
Profit before tax including discontinued operations (excluding exceptional items) 9741.41 19336.61
Adjustments for:
Gain on transfer of discontinued operations – (11078.33)
Dividend received (1619.06) (1034.40)
Depreciation, amortisation, impairment and obsolescence (net) 1172.50 1150.68
Exchange difference on items grouped under financing/investing activities (122.69) (28.09)
Effect of exchange rate changes on cash and cash equivalents (18.95) 51.27
Finance cost 1754.24 2381.71
Interest income (1045.82) (948.73)
(Profit)/loss on sale of fixed assets (net) (14.78) (477.41)
(Profit)/loss on sale of investments (net) [including fair valuation] (506.09) (1076.69)
Impairment of non-current investment 0.29 277.71
Employee stock option-discount forming part of employee benefits expense 49.11 43.89
Non-cash items related to discontinued operations – 2.83
Operating profit before working capital changes 9390.16 8601.05
Adjustments for:
(Increase)/decrease in trade and other receivables (8128.79) 2519.02
(Increase)/decrease in inventories (219.84) 26.90
Increase/(decrease) in trade payables and customer advances 7253.98 364.98
Cash (used in)/generated from operations 8295.51 11511.95
Direct taxes refund/(paid) [net] (2296.72) (1951.11)
Net cash (used in)/from operating activities 5998.79 9560.84
B. Cash flow from investing activities:
Purchase of fixed assets (1410.29) (781.32)
Sale of fixed assets (including advance received) 60.45 631.80
Investment in subsidiaries, associates and joint venture companies (542.83) (2272.05)
Divestment of stake in subsidiary companies 785.02 –
Net proceeds from transfer of NxT business undertaking 107.58 –
Net proceeds/(payments) for transfer of discontinued operations (net of tax) (49.24) 10845.76
(Purchase)/sale of current investments (net) 4012.85 (13127.63)
Change in other bank balances and cash not availabe for immediate use 62.41 12.32
Long term deposits/loans (given) - subsidiaries, associates, joint venture companies and third parties (1677.12) (1743.04)
Long term deposits/loans repaid - subsidiaries, associates, joint venture companies and third parties 857.25 1698.96
Short term deposits/loans (given)/repaid (net) - subsidiaries, associates, joint venture companies and third
parties (147.85) 158.58
Interest received 848.71 822.08
Dividend received from subsidiaries and joint venture companies 1615.19 1016.03
Dividend received from other investments 3.74 15.34
Net cash (used in)/from investing activities 4525.87 (2723.17)

382
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Statement of Cash Flows for the year ended March 31, 2022 (contd.)
v crore
2021-22 2020-21
C. Cash flow from financing activities:
Proceeds from fresh issue of share capital (including share application money) [net] 10.97 15.85
Proceeds from non-current borrowings [refer Note 43] 450.00 9117.73
Repayment of non-current borrowings [refer Note 43] (18.00) (3396.88)
(Repayments of)/Proceeds from other borrowings (net) [refer Note 43] (4713.97) (6823.60)
Settlement of derivative contracts related to borrowings 143.82 66.73
Interest paid on lease liability (13.24) (14.36)
Principal repayment on lease liability [refer Note 43] (96.33) (117.04)
Dividends paid (2528.38) (3650.89)
Interest paid (including cash flows from interest rate swaps) (1595.23) (1895.69)
Net cash (used in)/from financing activities (8360.36) (6698.15)
Net (decrease)/increase in cash and cash equivalents (A + B + C) 2164.30 139.52
Cash and cash equivalents at beginning of the year [refer Note 14] 3524.95 3442.70
Effect of exchange rate changes on cash and cash equivalents 28.98 (57.27)
Cash and cash equivalents at end of the year [refer Note 14] 5718.23 3524.95

Notes:
1. Statement of Cash Flows has been prepared under the indirect method as set out in the Indian Accounting Standard (Ind AS) 7 “Statement of Cash
Flows” as specified in the Companies (Indian Accounting Standards) Rules, 2015.
2. Fixed assets include property, plant and equipment, investment property and intangible assets adjusted for movement of (a) capital work-in-progress
for property, plant and equipment and investment property and (b) Intangible assets under development during the year.
3. Previous year’s figures have been regrouped/reclassified wherever applicable.

In terms of our report attached

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants S. N. SUBRAHMANYAN
Firm’s Registration No.117366W/W-100018 Chief Executive Officer & Managing Director
by the hand of (DIN 02255382)

SANJIV V. PILGAONKAR
Partner R. SHANKAR RAMAN M. M. CHITALE
Membership No. 39826 Whole-time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 00101004)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939

Mumbai, May 12, 2022

383
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements

NOTE [1](i)
Company overview:
Larsen & Toubro Limited (“the Company”) is an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services. The
Company operates in over 50 countries worldwide. A strong, customer-focused approach and the constant quest for top-class quality have
enabled the Company to attain and sustain leadership in its major lines of business for over eight decades.

The Company is engaged in core, high impact sectors of the economy and its integrated capabilities span the entire spectrum of ‘design to
delivery’. Every aspect of Company’s businesses is characterised by professionalism and high standards of corporate governance. Sustainability
is embedded into its long-term strategy for growth.

The Company’s manufacturing footprint extends across eight countries in addition to India. The Company has several international offices and
a supply chain that extends around the globe.

NOTE [1](II)
Significant Accounting Policies
(a) Statement of compliance
The Company’s financial statements have been prepared in accordance with the provisions of the Companies Act, 2013 and the Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and amendments thereto issued
by Ministry of Corporate Affairs under section 133 of the Companies Act, 2013. In addition, the guidance notes/announcements issued
by the Institute of Chartered Accountants of India (ICAI) are also applied except where compliance with other statutory promulgations
require a different treatment. These financials statements have been approved for issue by the Board of Directors at its meeting held on
May 12, 2022.

(b) Basis of accounting

The Company maintains its accounts on accrual basis following historical cost convention, except for certain assets and liabilities that are
measured at fair value in accordance with Ind AS.

Fair value measurements are categorised as below based on the degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value measurement in its entirety:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at
measurement date;

• Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the assets or liabilities, either directly
or indirectly; and

• Level 3 inputs are unobservable inputs for the valuation of assets or liabilities.

Above levels of fair value hierarchy are applied consistently and generally, there are no transfers between the levels of the fair value
hierarchy unless the circumstances change warranting such transfer.

(c) Presentation of financial statements

The Balance Sheet, the Statement of Profit and Loss and the Statement of Changes in Equity are prepared and presented in the format
prescribed in the Schedule III to the Companies Act, 2013 (the Act). The Statement of Cash Flows has been prepared and presented
in accordance with Ind AS 7 “Statement of Cash Flows”. The disclosures with respect to items in the Balance Sheet and Statement of
Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the financial statements along
with the other notes required to be disclosed under the notified Accounting Standards and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 as amended.

Amounts in the financial statements are presented in Indian Rupee in crore [1 crore = 10 million] rounded off to two decimal places as
permitted by Schedule III to the Act. Per share data are presented in Indian Rupee to two decimals places.

(d) Operating cycle for current and non-current classification

Operating cycle for the business activities of the Company covers the duration of the specific project or contract or product line or
service including the defect liability period wherever applicable and extends up to the realisation of receivables (including retention
monies) within the agreed credit period normally applicable to the respective lines of business.

(e) Revenue recognition

Revenue from contracts with customers is recognised when a performance obligation is satisfied by transfer of promised goods or
services to a customer.

384
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
For performance obligation satisfied over time, the revenue recognition is done by measuring the progress towards complete satisfaction
of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost
attributable to the performance obligation.

The Company transfers control of a good or service over time and therefore satisfies a performance obligation and recognises revenue
over a period of time if one of the following criteria is met:

(a) the customer simultaneously consumes the benefit of the Company’s performance or

(b) the customer controls the asset as it is being created/enhanced by the Company’s performance or

(c) there is no alternative use of the asset and the Company has either explicit or implicit right of payment considering legal
precedents,

In all other cases, performance obligation is considered as satisfied at a point in time.

The revenue is recognised to the extent of transaction price allocated to the performance obligation satisfied. Transaction price is the
amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer
excluding amounts collected on behalf of a third party. The Company includes variable consideration as part of transaction price when
there is a basis to reasonably estimate the amount of the variable consideration and when it is probable that a significant reversal of
cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is resolved. Variable
consideration is estimated using the expected value method or most likely amount as appropriate in a given circumstance. Payment
terms agreed with a customer are as per business practice and the financing component, if significant, is separated from the transaction
price and accounted as interest income.

Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged-off in profit or loss
immediately in the period in which such costs are incurred. Incremental costs of obtaining a contract, if any, and costs incurred to fulfil
a contract are amortised over the period of execution of the contract in proportion to the progress measured in terms of a proportion of
actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

Significant judgments are used in:

a. Determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue recognition is
done by measuring the progress towards complete satisfaction of performance obligation.

b. Determining the expected losses, which are recognised in the period in which such losses become probable based on the expected
total contract cost as at the reporting date.

c. Determining the method to be applied to arrive at the variable consideration requiring an adjustment to the transaction price.

(i) Revenue from operations

Revenue includes adjustments made towards liquidated damages and variation wherever applicable. Escalation and other claims,
which are not ascertainable/acknowledged by customers are not taken into account.

A. Revenue from sale of manufactured and traded goods including contracts for supply/commissioning of complex plant and
equipment is recognised as follows:

Revenue is recognised when the control of the same is transferred to the customer and it is probable that the Company will
collect the consideration to which it is entitled for the exchanged goods. Revenue from commissioning of complex plant and
equipment is recognised either ‘over time’ or ‘in time’ based on an assessment of the transfer of control as per the terms of
the contract.

B. Revenue from construction/project related activity is recognised as follows:

• Cost plus contracts: Revenue from cost plus contracts is recognised over time and is determined with reference to the
extent performance obligations have been satisfied. The amount of transaction price allocated to the performance
obligations satisfied represents the recoverable costs incurred during the period plus the margin as agreed with the
customer.

• Fixed price contracts: Contract revenue is recognised over time to the extent of performance obligation satisfied and
control is transferred to the customer. Contract revenue is recognised at allocable transaction price which represents
the cost of work performed on the contract plus proportionate margin, using the percentage of completion method.
Percentage of completion is the proportion of cost of work performed to-date, to the total estimated contract costs.

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Notes forming part of the Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
For contracts where the aggregate of contract cost incurred to date plus recognised profits (or minus recognised losses as the
case may be) exceeds the progress billing, the surplus is shown as contract asset and termed as “Due from customers”. For
contracts where progress billing exceeds the aggregate of contract costs incurred to-date plus recognised profits (or minus
recognised losses, as the case may be), the surplus is shown as contract liability and termed as “Due to customers”. Amounts
received before the related work is performed are disclosed in the Balance Sheet as contract liability and termed as “Advances
from customer”. The amounts billed on customer for work performed and are unconditionally due for payment i.e. only
passage of time is required before payment falls due, are disclosed in the Balance Sheet as trade receivables. The amount of
retention money held by the customers pending completion of performance milestone is disclosed as part of contract asset
and is reclassified as trade receivables when it becomes due for payment.

Impairment loss (termed as provision for foreseeable losses in the financial statements) is recognised in profit or loss to the
extent the carrying amount of the contract asset exceeds the remaining amount of consideration that the Company expects
to receive towards remaining performance obligations (after deducting the costs that relate directly to fulfill such remaining
performance obligations). The Company recognises impairment loss (termed as provision for expected credit loss on contract
assets in the financial statements) on account of credit risk in respect of a contract asset using expected credit loss model on
similar basis as applicable to trade receivables.

C. Revenue from property development activities is recognised when performance obligation is satisfied, customer obtains control
of the property transferred and a reasonable expectation of collection of the sale consideration from the customer exists.

D. Revenue from rendering of services is recognised over time as the customer receives the benefit of the Company’s performance
and the Company has an enforceable right to payment for services transferred.

Unbilled revenue represents value of services performed in accordance with the contract terms but not billed.

E. Revenue from contracts for rendering of engineering design services and other services which are directly related to the
construction of an asset is recognised on the same basis as stated in (B) supra.

F. Commission income is recognised as the terms of the contract are fulfilled.

G. Course fees/subscription income is recognised over time as per the course/subscription duration and agreed terms.

H. Other operational revenue represents income earned from the activities incidental to the business and is recognised when the
performance obligation is satisfied and right to receive the income is established as per the terms of the contract.

(ii) Other income

A . Interest income on investments and loans is accrued on a time basis by reference to the principal outstanding and the
effective interest rate including interest on investments classified as fair value through profit or loss or fair value through other
comprehensive income. Interest receivable on customer dues is recognised as income in the Statement of Profit and Loss on
accrual basis provided there is no uncertainty of realisation.

B. Dividend income is accounted in the period in which the right to receive the same is established.

C. Government grants, which are revenue in nature and are towards compensation for the qualifying costs incurred by the
Company, are recognised as other income/reduced from underlying expenses in profit or loss in the period in which such
costs are incurred. Government grants related to an asset are reduced from the cost of an asset until the asset is ready to use
and the grant post that is presented as deferred income. Subsequently the grant is recognised as income in profit or loss on
a systematic basis over the expected useful life of the related asset. Government grant receivable in the form of duty credit
scrips is recognised as other income in the Statement of Profit and Loss in the period in which the application is made to the
government authorities and to the extent there is no uncertainty towards its receipt.

D. Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably.

(f) Exceptional items

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the
performance of the Company is treated as an exceptional item and disclosed as such in the financial statements.

(g) Property, plant and equipment (PPE)

PPE is recognised when it is probable that future economic benefits associated with the item will flow to the Company and the cost of
the item can be measured reliably. PPE is stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation and
cumulative impairment, if any. All directly attributable costs related to the acquisition of PPE and, borrowing costs in case of qualifying
assets are capitalised in accordance with the Company’s accounting policy.

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
Own manufactured PPE is capitalised at cost including an appropriate share of overheads. Administrative and other general overhead
expenses that are specifically attributable to construction or acquisition of PPE or bringing the PPE to working condition are allocated and
capitalised as a part of the cost of the PPE.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Company and the cost can be measured reliably.

PPE not ready for the intended use on the date of the Balance Sheet are disclosed as “capital work-in-progress”. (Also refer to the
policies on leases, borrowing costs, impairment of assets and foreign currency transactions infra).

Depreciation is recognised using straight-line method so as to write off the cost of the assets (other than freehold land and capital
work-in-progress) less their residual values over their useful lives specified in Schedule II to the Act, or in the case of assets where the
useful life was determined by technical evaluation, over the useful life so determined.

Depreciation charge for impaired assets is adjusted in future periods in such a manner that the revised carrying amount of the asset is
allocated over its remaining useful life.

Depreciation method is reviewed at each financial year end to reflect the expected pattern of consumption of the future economic
benefits embodied in the asset. The estimated useful life and residual values are also reviewed at each financial year end and the effect
of any change in the estimates of useful life/residual value is accounted on prospective basis.

Where cost of a part of the asset (“asset component”) is significant to total cost of the asset and useful life of that part is different from
the useful life of the remaining asset, useful life of that significant part is determined separately and such asset component is depreciated
over its separate useful life.

Depreciation on additions to/deductions from, owned assets is calculated pro rata to the period of use.

PPE is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on
derecognition is recognised in the Statement of Profit and Loss in the same period.

(h) Investment property

Properties, including those under construction, held to earn rentals and/or capital appreciation are classified as investment property and
are measured and reported at cost, including transaction costs and borrowing cost capitalised for qualifying assets, in accordance with
the Company’s accounting policy. Policies with respect to depreciation, useful life and derecognition are followed on the same basis as
stated for PPE supra.
(i) Intangible assets
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to the
Company and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/duty credits availed, if
any, less accumulated amortisation and cumulative impairment. All directly attributable costs and other administrative and other general
overhead expenses that are specifically attributable to acquisition of intangible assets are allocated and capitalised as a part of the cost
of the intangible assets. Research and development expenditure on new products:
(i) Expenditure on research is expensed under respective heads of account in the period in which it is incurred.

(ii) Development expenditure on new products is capitalised as intangible asset, if all of the following can be demonstrated:

A. the technical feasibility of completing the intangible asset so that it will be available for use or sale;

B. the Company has intention to complete the intangible asset and use or sell it;

C. the Company has ability to use or sell the intangible asset;

D. the manner in which the probable future economic benefits will be generated including the existence of a market for output
of the intangible asset or intangible asset itself or if it is to be used internally, the usefulness of intangible assets;

E. the availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset; and

F. the Company has ability to reliably measure the expenditure attributable to the intangible asset during its development.
Development expenditure that does not meet the above criteria is expensed in the period in which it is incurred.

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Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
Intangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as “intangible assets under
development”.

Intangible assets are amortised on straight-line basis over the estimated useful life. The method of amortisation and useful life are
reviewed at the end of each financial year with the effect of any changes in the estimate being accounted for on a prospective
basis.

Amortisation on impaired assets is provided by adjusting the amortisation charge in the remaining periods so as to allocate the
asset’s revised carrying amount over its remaining useful life.

(j) Impairment of assets

As at the end of each financial year, the carrying amounts of PPE, investment property, intangible assets and investments in subsidiary,
associate and joint venture companies are reviewed to determine whether there is any indication that those assets have suffered an
impairment loss. If such indication exists, PPE, investment property and intangible assets are tested for impairment so as to determine the
impairment loss, if any. Intangible assets with indefinite life are tested for impairment each year.

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is determined:

(i) in the case of an individual asset, at the higher of the fair value less costs to sell and the value-in-use; and

(ii) in the case of a cash generating unit (the smallest identifiable group of assets that generates independent cash flows), at the higher
of the cash generating unit’s fair value less costs to sell and the value-in-use.

The amount of value-in-use is determined as the present value of estimated future cash flows from the continuing use of an asset,
which may vary based on the future performance of the Company and from its disposal at the end of its useful life. For this purpose, the
discount rate (pre-tax) is determined based on the weighted average cost of capital of the company suitably adjusted for risks specified
to the estimated cash flows of the asset.

If recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, such deficit is recognised
immediately in the Statement of Profit and Loss as impairment loss and the carrying amount of the asset (or cash generating unit) is
reduced to its recoverable amount.

When an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit) is increased to the revised
estimate of its recoverable amount, such that the increased carrying amount does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset (or cash generating unit) in prior years. A reversal of an impairment
loss is recognised immediately in the Statement of Profit and Loss.

(k) Employee Benefits

(i) Short-term employee benefits:

Employee benefits such as salaries, wages, short-term compensated absences, bonus, ex-gratia and performance-linked rewards
falling due wholly within twelve months of rendering the service are classified as short-term employee benefits and are expensed in
the period in which the employee renders the service.

(ii) Post-employment benefits:

A. Defined contribution plans: The Company’s superannuation scheme, state governed provident fund scheme, employee state
insurance scheme and employee pension scheme are defined contribution plans. The contribution paid/payable under the
schemes is recognised during the period in which the employee renders the service.

B. Defined benefit plans: The employees’ gratuity fund schemes and employee provident fund schemes managed by board of
trustees established by the Company, the post-retirement medical care plan and the company pension plan represent defined
benefit plans. The present value of the obligation under defined benefit plans is determined based on actuarial valuation using
the Projected Unit Credit Method.

The obligation towards defined benefit plans is measured at the present value of the estimated future cash flows using a discount
rate based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of
the defined benefit obligations at the Balance Sheet date.

Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest
on the net defined benefit liability or asset) and any change in the effect of asset ceiling (if applicable) is recognised in other
comprehensive income and is reflected in retained earnings and the same is not eligible to be reclassified to profit or loss.

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
Defined benefit costs comprising current service cost, past service cost and gains or losses on settlements are recognised in the
Statement of Profit and Loss as employee benefits expense. Interest cost implicit in defined benefit employee cost is recognised in
the Statement of Profit and Loss under finance costs. Gains or losses on settlement of any defined benefit plan are recognised when
the settlement occurs. Past service cost is recognised as expense at the earlier of the plan amendment or curtailment and when the
Company recognises related restructuring costs or termination benefits.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans to
recognise the obligation on a net basis.

(iii) Long-term employee benefits:

The obligation recognised in respect of long-term benefits such as compensated absences, long service award etc. is measured at
present value of estimated future cash flows expected to be made by the Company and is recognised in a similar manner as in the
case of defined benefit plans vide (ii)(B) supra.
Long-term employee benefit costs comprising current service cost and gains or losses on curtailments and settlements,
re-measurements including actuarial gains and losses are recognised in the Statement of Profit and Loss as employee benefits
expense. Interest cost implicit in long-term employee benefit costs is recognised in the Statement of Profit and Loss under finance
costs.

(iv) Termination benefits:

Termination benefits such as compensation under employee separation schemes are recognised as expense when the Company’s
offer of the termination benefit can no longer be withdrawn or when the Company recognises the related restructuring costs
whichever is earlier.

(l) Leases
Assets taken on lease are accounted as right-of-use assets and the corresponding lease liability is recognised at the lease commencement
date.

Initially the right-of-use asset is measured at cost which comprises the initial amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the
underlying asset or to restore the underlying asset or the site on which it is located, as reduced by any lease incentives received.

The lease liability is initially measured at the present value of the lease payments, discounted using the Company’s incremental borrowing
rate. It is remeasured when there is a change in future lease payments arising from a change in an index or a rate, or a change in the
estimate of the guaranteed residual value, or a change in the assessment of purchase, extension or termination option. When the lease
liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in
profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The right-of-use asset is measured by applying cost model i.e. right-of-use asset at cost less accumulated depreciation and cumulative
impairment, if any. The right-of-use asset is depreciated using the straight-line method from the commencement date to the end of the
lease term or useful life of the underlying asset whichever is earlier. Carrying amount of lease liability is increased by interest on lease
liability and reduced by lease payments made.

Lease payments associated with following leases are recognised as expense on straight-line basis:

(i) Low value leases; and

(ii) Leases which are short-term.

Assets given on lease are classified either as operating lease or as finance lease. A lease is classified as a finance lease if it transfers
substantially all the risks and rewards incidental to ownership of an underlying asset. Asset held under finance lease is initially recognised
in balance sheet and presented as a receivable at an amount equal to the net investment in the lease. Finance income is recognised over
the lease term, based on a pattern reflecting a constant periodic rate of return on Company’s net investment in the lease. A lease which
is not classified as a finance lease is an operating lease.

The Company recognises lease payments in case of assets given on operating leases as income on a straight-line basis. The Company
presents underlying assets subject to operating lease in its balance sheet under the respective class of asset.

(Also refer to policy on depreciation, supra)

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Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
(m) Financial instruments
Financial assets and/or financial liabilities are recognised when the Company becomes party to a contract embodying the related financial
instruments. All financial assets, financial liabilities and financial guarantee contracts are initially measured at transaction values and
where such values are different from fair value, at fair value. Transaction costs that are attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or
deducted from as the case may be, the fair value of such financial assets or liabilities, on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised in profit or loss.

In case of funding to subsidiary companies in the form of interest free or concession loans and preference shares, the excess of the
actual amount of the funding over initially measured fair value is accounted as an equity investment.

A financial asset and a financial liability is offset and presented on net basis in the balance sheet when there is a current legally
enforceable right to set-off the recognised amounts and it is intended to either settle on net basis or to realise the asset and settle the
liability simultaneously.

(i) Financial assets:

A. All recognised financial assets are subsequently measured in their entirety either at amortised cost or at fair value as follows:

1. Investments in debt instruments that are designated as fair value through profit or loss (FVTPL) - at fair value. Debt
instruments at FVTPL is a residual category for debt instruments, if any, and all changes are recognised in profit or loss.

2. Investments in debt instruments that meet the following conditions are subsequently measured at amortised cost (unless
the same designated as fair value through profit or loss):

• The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows;
and

• The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.

3. Investment in debt instruments that meet the following conditions are subsequently measured at fair value through other
comprehensive income [FVTOCI] (unless the same are designated as fair value through profit or loss)

• The asset is held within a business model whose objective is achieved both by collecting contractual cash flows and
selling financial assets; and

• The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.

4. Investment in equity instruments issued by subsidiary, associate and joint venture companies are measured at cost less
impairment.

5. Investment in preference shares of the subsidiary companies are treated as equity instruments if the same are convertible
into equity shares or are redeemable out of the proceeds of equity instruments issued for the purpose of redemption of
such investments. Investment in preference shares not meeting the aforesaid conditions are classified as debt instruments
at FVTPL.

6. Investments in equity instruments issued by other than subsidiaries are classified as at FVTPL, unless the related
instruments are not held for trading and the Company irrevocably elects on initial recognition to present subsequent
changes in fair value in other comprehensive income.

7. Trade receivables, security deposits, cash and cash equivalents, employee and other advances – at amortised cost.

B. For financial assets that are measured at FVTOCI, income by way of interest and dividend, provision for impairment and
exchange difference, if any, (on debt instrument) are recognised in profit or loss and changes in fair value (other than on
account of above income or expense) are recognised in other comprehensive income and accumulated in other equity. On
disposal of debt instruments at FVTOCI, the cumulative gain or loss previously accumulated in other equity is reclassified
to profit or loss. In case of equity instruments at FVTOCI, such cumulative gain or loss is not reclassified to profit or loss on
disposal of investments.

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
C. A financial asset is primarily derecognised when:

1. the right to receive cash flows from the asset has expired, or

2. the Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a pass-through arrangement; and (a) the
Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred
nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount at the date of derecognition
and the consideration received is recognised in profit or loss.

D. Impairment of financial assets: Impairment loss on trade receivables is recognised using expected credit loss model, which
involves use of a provision matrix constructed on the basis of historical credit loss experience as permitted under Ind AS 109
and is adjusted for forward looking information. Impairment loss on investments is recognised when the carrying amount
exceeds its recoverable amount. For all other financial assets, expected credit losses are recognised based on the difference
between the contractual cashflows and all the expected cash flows, discounted at the original effective interest rate. ECLs are
measured at an amount equal to 12-month expected credit losses or at an amount equal to lifetime expected credit losses if
the credit risk on the financial asset has increased significantly since initial recognition.

(ii) Financial liabilities:

A. Financial liabilities, including derivatives and embedded derivatives, which are designated for measurement at FVTPL are
subsequently measured at fair value. Financial guarantee contracts are subsequently measured at the amount of impairment
loss allowance or the amount recognised at inception net of cumulative amortisation, whichever is higher. All other financial
liabilities including loans and borrowings are measured at amortised cost using Effective Interest Rate (EIR) method.

B. A financial liability is derecognised when the related obligation expires or is discharged or cancelled.

(iii) The Company designates certain hedging instruments, such as derivatives, embedded derivatives and in respect of foreign currency
risk, certain non-derivatives, as either fair value hedges, cash flow hedges or hedges of net investments in foreign operations.
Hedges of foreign exchange risk on firm commitments are accounted as cash flow hedges.

A. Fair value hedges: Changes in fair value of the designated portion of derivatives that qualify as fair value hedges are
recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are
attributable to the hedged risk.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no
longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the hedged item arising from the
hedged risk is amortised to profit or loss from that date.

B. Cash flow hedges: In case of transaction related hedges, the effective portion of changes in the fair value of derivatives that
are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated in equity as
‘hedging reserve’. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Amounts
previously recognised in other comprehensive income and accumulated in equity relating to the effective portion, are
reclassified to profit or loss in the periods when the hedged item affects profit or loss, in the same head as the hedged item.
The effective portion of the hedge is determined at the lower of the cumulative gain or loss on the hedging instrument from
inception of the hedge and the cumulative change in the fair value of the hedged item from the inception of the hedge and
the remaining gain or loss on the hedging instrument is treated as ineffective portion.

In case of time period related hedges, the premium element and the spot element of a forward contract is separated and only
the change in the value of the spot element of the forward contract is designated as the hedging instrument. Similarly, wherever
applicable, the foreign currency basis spread is separated from the financial instrument and is excluded from the designation of that
financial instrument as the hedging instrument in case of time period related hedges. The changes in the fair value of the premium
element of the forward contract or the foreign currency basis spread of the financial instrument is accumulated in a separate
component of equity as “cost of hedging reserve”. The changes in the fair value of such premium element or foreign currency
basis spread are reclassified to profit or loss as a reclassification adjustment on a straight-line basis over the period of the forward
contract or the financial instrument.

The cash flow hedges are allocated to the forecast transactions on gross exposure basis. Where the hedged forecast transaction
results in the recognition of a non-financial asset, such gains/losses are transferred from hedge reserve (but not as reclassification
adjustment) and included in the initial measurement cost of the non-financial asset.

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Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no longer
qualifies for hedge accounting. Any gain or loss recognised in other comprehensive income and accumulated in equity at that
time remains in equity and is recognised when the forecast transaction is ultimately recognised in profit or loss. When a forecast
transaction is no longer expected to occur, the gain or loss accumulated in equity is recognised in profit or loss.

(iv) Compound financial instruments issued by the Company which can be converted into fixed number of equity shares at the option
of the holders irrespective of changes in the fair value of the instrument are accounted by recognising the liability and the equity
components separately. The liability component is initially recognised at the fair value of a comparable liability that does not have
an equity conversion option. The equity component is initially recognised at the difference between the fair value of the compound
financial instrument as a whole and the fair value of the liability component. The directly attributable transaction costs are allocated
to the liability and the equity components in proportion to their initial carrying amounts. Subsequent to initial recognition, the
liability component of the compound financial instrument is measured at amortised cost using the effective interest method. The
equity component of a compound financial instrument is not remeasured subsequently.

(n) Inventories
Inventories are valued after providing for obsolescence, as under:

(i) Raw materials, components, construction materials, stores, spares and loose tools at lower of weighted average cost or net
realisable value. However, these items are considered to be realisable at cost if the finished products in which they will be used, are
expected to be sold at or above cost.

(ii) Manufacturing work-in-progress at lower of weighted average cost including related overheads or net realisable value. In some
cases, manufacturing work-in-progress are valued at lower of specifically identifiable cost or net realisable value. In the case of
qualifying assets, cost also includes applicable borrowing costs vide policy relating to borrowing costs.

(iii) Finished goods and stock-in-trade (in respect of goods acquired for trading) at lower of weighted average cost or net realisable
value. Cost includes costs of purchases, costs of conversion and other costs incurred in bringing the inventories to their present
location. Taxes which are subsequently recoverable from taxation authorities are not included in the cost.

(iv) Completed property/work-in-progress (including land) in respect of property development activity at lower of specifically identifiable
cost or net realisable value.

Assessment of net realisable value is made at each reporting period end and when the circumstances that previously caused inventories
to be written-down below cost no longer exist or when there is clear evidence of an increase in net realisable value because of changed
economic circumstances, the write-down, if any, in the past period is reversed to the extent of the original amount written-down so that
the resultant carrying amount is the lower of the cost and the revised net realisable value.

(o) Cash and bank balances

Cash and bank balances include fixed deposits, margin money deposits, earmarked balances with banks and other bank balances which
have restrictions on repatriation. Short-term and liquid investments being subject to more than insignificant risk of change in value, are not
included as part of cash and cash equivalents.

(p) Securities premium

(i) Securities premium includes:

A. The difference between the face value of the equity shares and the consideration received in respect of shares issued.

B. The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Stock Options
Scheme.

(ii) The issue expenses of securities which qualify as equity instruments are written off against securities premium.

(q) Borrowing Costs

Borrowing costs include finance costs calculated using the effective interest method, finance charges in respect of assets acquired on
lease and exchange differences arising on foreign currency borrowings to the extent they are regarded as an adjustment to finance costs.
In cases where hedging instruments are acquired for protection against exchange rate risk related to borrowings and are accounted
as hedging a time-period related hedge item, the borrowing costs also include the amortisation of premium element of the forward
contract and foreign currency basis spread as applicable, over the period of the hedging instrument.

Borrowing costs net of any investment income from the temporary investment of related borrowings that are attributable to the
acquisition, construction or production of a qualifying asset are capitalised/inventorised as part of cost of such asset till such time the

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready
for its intended use or sale. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

(r) Share-based payment arrangements

The stock options granted to employees in terms of the Company’s Stock Options Schemes, are measured at the fair value of the options
at the grant date. The fair value of the options is treated as discount and accounted as employee compensation cost over the vesting
period on a straight-line basis. The amount recognised as expense in each year is arrived at based on the number of grants expected to
vest. If a grant lapses after the vesting period, the cumulative discount recognised as expense in respect of such grant is transferred to
the general reserve within equity.

The fair value of the stock options granted to employees of the Company by the Company’s subsidiaries is accounted as employee
compensation cost over the vesting period and where such fair value is not recovered by the subsidiaries, the same is treated as dividend
declared by them. The share-based payment equivalent to the fair value as on the date of grant of employee stock options granted to
key managerial personnel is disclosed as a related party transaction in the year of grant.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

(s) Foreign currencies

(i) The functional currency and presentation currency of the Company is Indian Rupee.

(ii) Transactions in currencies other than the Company’s functional currency are recorded on initial recognition using the exchange
rate at the transaction date. At each Balance Sheet date, foreign currency monetary items are reported at the closing spot rate.
Non-monetary items that are measured in terms of historical cost in foreign currency are not translated. Exchange differences that
arise on settlement of monetary items or on reporting of monetary items at each Balance Sheet date at the closing spot rate are
recognised in the Statement of Profit and Loss in the period in which they arise except for:

A. exchange differences on foreign currency borrowings relating to assets under construction for future productive use, are
included in the cost of those assets when such exchange differences are regarded as an adjustment to finance costs on those
foreign currency borrowings; and

B. exchange differences on transactions entered into to hedge certain foreign currency risks.

(iii) exchange rate as of the date on which the non-monetary asset or non-monetary liability is recognised on payment or receipt of
advance consideration is used for initial recognition of related asset, expense or income.

(iv) Financial statements of foreign operations whose functional currency is different than Indian Rupees are translated into Indian
Rupees as follows:

A. assets and liabilities for each Balance Sheet presented are translated at the closing rate at the date of that Balance Sheet;

B. income and expenses for each income statement are translated at average exchange rate for the reporting period; and

C. all resulting exchange differences are recognised in other comprehensive income and accumulated in equity as foreign currency
translation reserve for subsequent reclassification to profit or loss on disposal of such foreign operations.

(t) Accounting and reporting of information for Operating Segments

Operating segments are those components of the business whose operating results are regularly reviewed by the chief operating decision
making body in the Company to make decisions for performance assessment and resource allocation.

The reporting of segment information is the same as provided to the management for the purpose of the performance assessment and
resource allocation to the segments.

Segment accounting policies are in line with the accounting policies of the Company. In addition, the following specific accounting
policies have been followed for segment reporting:

i) Segment revenue includes sales and other operational revenue directly identifiable with/allocable to the segment including inter
segment revenue.

ii) Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result.

iii) Most of the common costs are allocated to segments mainly on the basis of the respective segment revenue estimated at the
beginning of the reporting period.

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Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
iv) Income which relates to the Company as a whole and not allocable to segments is included in “unallocable corporate income/
(expenditure)(net)”.

v) Segment result represents profit before interest and tax and includes margins on inter-segment capital jobs, which are reduced in
arriving at the profit before tax of the Company.

vi) Segment result includes the finance costs incurred on interest bearing advances with corresponding credit included in “unallocable
corporate income/(expenditure)(net).

vii) Segment results have not been adjusted for any exceptional item.

viii) Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable corporate assets and
liabilities represent the assets and liabilities that relate to the Company as a whole.

ix) Segment non-cash expenses forming part of segment expenses includes the fair value of the employee stock options which is
accounted as employee compensation cost [Note 1(ii)(r) supra] and is allocated to the segment.

x) Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price which are
either determined to yield a desired margin or agreed on a negotiated basis.

(u) Taxes on income

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act,1961 and using estimates and judgments based on the expected outcome of assessments/appeals and
the relevant rulings in the areas of allowances and disallowances.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Company’s financial
statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates as per laws enacted
or substantively enacted as on the Balance Sheet date.

Deferred tax liabilities are generally recognised for all taxable temporary differences including the temporary differences associated with
investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of
the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are generally recognised for all taxable temporary differences to the extent that is probable that taxable profits will be
available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at
the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to
allow all or part of the asset to be recovered.

Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity, is recorded along with
the tax as applicable.

(v) Interests in joint operations

The Company as a joint operator recognises in relation to its interest in a joint operation, its share in the assets/liabilities held/ incurred
jointly with the other parties of the joint arrangement. Revenue is recognised for its share of revenue from the sale of output by the joint
operation. Expenses are recognised for its share of expenses incurred jointly with other parties as part of the joint arrangement.

Interests in joint operations are included in the segments to which they relate.

(w) Provisions, contingent liabilities and contingent assets

Provisions are recognised only when:

(i) the Company has a present obligation (legal or constructive) as a result of a past event; and

(ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(iii) a reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money
is material, the carrying amount of the provision is the present value of those cash flows. Reimbursement expected in respect of
expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
Contingent liability is disclosed in case of:

(i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the
obligation; and

(ii) a present obligation arising from past events, when no reliable estimate is possible.

Contingent assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under
such contract, the present obligation under the contract is recognised and measured as a provision.

(x) Commitments
Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:

(i) estimated amount of contracts remaining to be executed on capital account and not provided for;

(ii) uncalled liability on shares and other investments partly paid;

(iii) funding related commitment to subsidiary, associate and joint venture companies; and

(iv) other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management.

Other commitments related to sales/procurements made in the normal course of business are not disclosed to avoid excessive details.

(y) Discontinued operations and non-current assets held for sale

Discontinued operation is a component of the Company that has been disposed of or classified as held for sale and represents a major
line of business.

Non-current assets and disposal groups are classified as held for sale if their carrying amount is intended to be recovered principally
through a sale (rather than through continuing use) when the asset (or disposal group) is available for immediate sale in its present
condition subject only to terms that are usual and customary for sale of such asset (or disposal group) and the sale is highly probable and
is expected to qualify for recognition as a completed sale within one year from the date of classification.

Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying amount and fair value less costs
to sell.

(z) Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from
operating activities is reported using indirect method, adjusting the profit before tax excluding exceptional items for the effects of:

(i) changes during the period in inventories and operating receivables and payables, transactions of a non-cash nature;

(ii) non-cash items such as depreciation, provisions, unrealised foreign currency gains and losses; and

(iii) all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for
general use as at the date of Balance Sheet.

(aa) Key sources of estimation

The preparation of financial statements in conformity with Ind AS requires that the management of the Company makes estimates and
assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and
the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions
made by management are explained under respective policies. Revisions to accounting estimates include useful lives of property, plant
and equipment & intangible assets, allowance for expected credit loss, future obligations in respect of retirement benefit plans, expected
cost of completion of contracts, provision for rectification costs, fair value/recoverable amount measurement, etc. Difference, if any,
between the actual results and estimates is recognised in the period in which the results are known.

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Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
(ab) Business Combination
Common control business combination is accounted using the pooling of interest method where the Company is transferee. Assets
and liabilities of the combining entities are reflected at their carrying amounts and no new asset or liability is recognised. Identity of
reserves of the transferor company is preserved by reflecting them in the same form in the Company’s financial statements in which
they appeared in the financial statements of the transferor company. The excess between the amount of consideration paid over the
share capital of the transferor company is recognised as a negative amount and the same is disclosed as capital reserve on business
combination.

The financial information in the financial statements in respect of prior periods is restated from the beginning of the preceding period in
the financial statements if the business combination date is prior to that date. However, if business combination date is after that date,
the financial information in the financial statements is restated from the date of business combination.

The gain/loss net of tax on transfer of business within common control entities is recognised in the statement of profit and loss account
by the transferor entity.

(ac) Recent Pronouncement:

On March 23, 2022, Ministry of Corporate Affairs amended Ind AS 16 (specifying accounting of net sale proceeds generated while
preparing the asset for its intended use), Ind AS 37 (specifying the composition of the cost of fulfilling the contract), Ind AS 103
(specifying the criteria for applying acquisition method for recognising assets and liabilities) and Ind AS 109 (specifying which fees to be
included to apply 10 per cent test). These amendments are effective from April 1, 2022 and will not have material impact on Company’s
financial statements.

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [2]
Property, Plant and Equipment & Capital work‐in‐progress
v crore
Cost/Valuation Depreciation Impairment Book value
Trf (to)/
Trf (to)/
Class of assets from Foreign Foreign
As at As at Up to For the from Up to As at Up to As at As at
Additions investment currency Deductions currency Deductions
1-4-2021 31-3-2022 31-3-2021 year investment 31-3-2022 31-3-2022 31-3-2021 31-3-2022 31-3-2021
property/ fluctuation fluctuation
property
inventories
Land
Freehold 729.54 11.69 (183.75) – – 557.48 – – – – – – – – 557.48 729.54
Leasehold 144.01 – – – – 144.01 9.56 1.60 – – – 11.16 – – 132.85 134.46
Sub total -Land 873.55 11.69 (183.75) – – 701.49 9.56 1.60 – – – 11.16 – – 690.33 864.00
Buildings 3195.89 58.97 (5.18) 0.53 7.37 3242.84 548.03 108.61 (1.60) 0.53 1.79 653.78 87.35 87.35 2501.71 2560.51
Plant & equipment
Owned 7099.43 786.20 (2.29) 3.19 164.25 7722.28 3728.64 689.40 (0.35) 3.16 125.26 4295.59 15.02 15.02 3411.67 3355.77
Leased out 162.72 – – – – 162.72 157.23 3.45 – – – 160.68 – – 2.04 5.49
Sub total- Plant &
equipment 7262.15 786.20 (2.29) 3.19 164.25 7885.00 3885.87 692.85 (0.35) 3.16 125.26 4456.27 15.02 15.02 3413.71 3361.26
Computers 503.11 59.88 – 0.08 21.28 541.79 365.90 71.10 – 0.08 19.51 417.57 – – 124.22 137.21
Office equipment 272.63 22.40 (0.05) 0.29 5.72 289.55 181.52 33.85 (0.03) 0.30 5.38 210.26 0.01 0.01 79.28 91.10
Furniture & fixtures 154.50 9.19 (2.18) 0.04 8.47 153.08 95.44 16.43 (1.89) 0.03 6.83 103.18 0.24 0.24 49.66 58.83
Vehicles 265.02 26.00 – 0.33 33.70 257.65 151.23 28.42 – 0.31 23.11 156.85 – – 100.80 113.79
Other assets
Ships 264.00 0.24 – – – 264.24 50.34 20.68 – – – 71.02 – – 193.22 213.66
Dredged Channel 679.69 – – – – 679.69 233.90 31.92 – – – 265.82 413.87 445.78
Breakwater Structures 226.00 – – – – 226.00 31.44 5.01 – – – 36.45 – 189.55 194.57
Aircraft 195.22 – – – – 195.22 37.38 10.48 – – – 47.86 147.36 157.84
Leasehold Improvements – 4.75 – – – 4.75 – 0.09 – – – 0.09 – – 4.66 –
Sub total - Other assets 1364.91 4.99 – – – 1369.90 353.06 68.18 – – – 421.24 – – 948.66 1011.85
Total 13891.76 979.32 (193.45) 4.46 240.79 14441.30 5590.61 1021.04 (3.87) 4.41 181.88 6430.31 102.62 102.62 7908.37 8198.54

Previous year 12622.30 1709.34 (53.37) (6.79) 379.72 13891.76 4881.33 962.27 (10.55) (15.80) 226.64 5590.61 104.60 102.62
Add: Capital work-in-progress [refer Note 2(k)] 571.50 238.71
8479.87 8437.25

a) Cost of buildings includes ownership accommodations:

(i) A. in various co-operative societies, shop-owners’ associations and non-trading corporations: R 68.21 crore, including 2610
shares of R 50 each, 75 shares of R 100 each. (previous year: in various co-operative societies, shop-owners’ associations and
non-trading corporations: R 68.26 crore, including 2615 shares of R 50 each, 75 shares of R 100 each).

B. in various apartments: R 8.82 crore. (previous year: R 8.82 crore).

C. in various co-operative societies: R 0.36 crore (previous year: R 0.36 crore) for which share certificates are yet to be issued.

D. in proposed co-operative societies R 30.59 crore. (previous year: R 30.59 crore).

(ii) ownership accommodations of R 11.75 crore representing undivided share in properties at various locations. (previous year:
R 11.75 crore).

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Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [2]
Property, Plant and Equipment & Capital work-in-progress (contd.)
b) Additions during the year and capital work-in-progress of buildings include R 8.83 crore (previous year: R 27.75 Crore) being borrowing
cost capitalised in accordance with Accounting Standard (Ind AS) 23 “Borrowing Costs”.

c) The rate used to determine the amount of borrowing costs eligible for capitalisation is 6.23% (previous year: 5.71%).

d) Owned assets given on operating lease have been presented separately under respective class of assets as “Leased out” pursuant to Ind
AS 116 “Leases”.

e) Cost as at April 1, 2021 of individual assets has been reclassified wherever necessary.

f) Out of its leasehold land at Hazira, the Company has given certain portion of land for the use to its joint venture company and the lease
deed is under execution.

g) Depreciation is provided based on useful life supported by the technical evaluation considering business specific usage, the consumption
pattern of the assets and the past performance of similar assets.

a. Estimated useful life of the following assets is in line with useful life prescribed in schedule II of the Companies Act, 2013:

Sr. No Asset Class Minimum useful life (in years) Maximum useful life (in years)
1. Buildings 3 60
2. Plant & equipment 8 15
3. Computer 3 6
4. Office equipment 4 5
5. Furniture & fixture 10 10
6. Vehicles 8 10
7. Ships 14 14

b. Estimated useful life of following assets is different than useful life as prescribed in schedule II of the Companies Act, 2013.
Useful life as per Useful life
Sr. No Category of Assets Sub-category of Assets
Schedule II (in years) adopted (in years)
1. Aircrafts – 20 18
2. Vehicles Motor Cars 8 7
A Assets used in Heavy Engineering Business:
Useful life as per
Sr. Useful life adopted (in
Category of Assets Sub-category of Assets Schedule II (in
No years)
years)
1. Plant & equipment Boring/Rolling/Drilling/Milling machines 15 10-30
Modular furnace 15 5-15
Other furnaces 15 5-30
Horizontal autoclaves 15 10-30
Load bearing structures 15 50
Flushing facility 15 3
Cranes 15 10-30
2. Roads Carpeted roads-other than RCC 5 5-15

398
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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [2]
Property, Plant and Equipment & Capital work-in-progress (contd.)
B Assets used in Shipbuilding Business:

Revised Useful life

Useful life as per adopted based on
Asset category Sub-category of Assets
Schedule II (in years) technical evaluation
(in years)
(i) Breakwater Structures Breakwater & Rock Bund 30
[1]
50
(ii) Dredged Channel Ship lift structures, Control system, 30 [1]
20
Chiller units, Condition monitoring
system, Ship position system, Ship
transfer system, other ship lift related
structures
Land berth and piled platforms 30
[1]
40
Tower cranes 15 25
(iii) Plant & equipment Rails 15 20
Diesel Generator 15 12
Air-Conditioner & refrigeration 15 12
equipment
(iv) Buildings Production shops 30 50
Internal roads 5 15
(v) Vehicles Motor Cars 8 7

[1] Represents licence period as per agreement executed with the Tamil Nadu Maritime Board, renewable on expiry.
C Assets used in Defence Engineering Business:

Sr. Useful life as per Useful life adopted

Category of Assets Sub-category of Assets
No Schedule II (in years) (in years)
1. Buildings Factory Buildings 30 5 - 50
Non-Factory Buildings 3 – 60 2-60
2. Plant & equipment General 8 – 15 1 – 30
Canteen equipment 8 1–8
Photographic equipment 15 5-8
Laboratory equipment 10 1-8
Electrical installation 10 1-21
Air conditioning and
refrigeration equipment 12 1-12
3. Computer 3–6 1–8
4. Office equipment 4–5 1 – 15
5. Furniture & fixture 10 1 – 20
6. Vehicles Motor cars 8 7

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Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [2]
Property, Plant and Equipment & Capital work-in-progress (contd.)
D Assets used in Construction business:
Sr. Useful life as per Useful life adopted
Category of Assets Sub-category of Assets
No Schedule II (in years) (in years)
1. Office equipment Assets deployed at project site 5 3
2. Air conditioning and
refrigeration equipment Assets deployed at project site 15 3
3. Canteen equipment Assets deployed at project site 15 3
4. Laboratory equipment Assets deployed at project site 10 3
5. Photographic equipment Assets deployed at project site 15 3
In addition to above any assets purchased for project site with acquisition value less than R 50,000 for above 5 categories of
Asset, full cost is depreciated in the same financial year.

E Assets used in Hydrocarbon business

Useful Life as per Useful life adopted
Category Sub Class
Schedule II (in years) (in years)
Buildings Office building 60 5-60
Housing colony 50 5-60
Ships 20 15-25
Software Specialised software Depending on life of
6
Software
Plant & equipment General 12 8-30
Tunneling and transmission Line
Equipments 10 8-30
Cranes < 100 Tons 15 8-30
Heavy Lift Equipment
Concreting Equipment 15 8-30
Road Making Equipment 15 8-30
Crushing Equipment 15 8-30
Piling Equipment 15 8-30
Pipeline Equipment 15 8-30
Welding Equipment 15 8-30
Others 15 8-30
Plant & Machinery 15 8-30
Earth-moving Equipment 15 8-30
Computers Laptop/Deskop 3 3-6
Servers & Storage & Network
Switches & Routers 6 3-6
Office Equipments Fax/Printers/Scanner (MFD), Desktop
Inkjet/LaserJet Printers, Switchers
Audio Video & Projectors 4 4-30
Other Office Equipments 5 4-30
Water Cooler 5 4-30
Assets deployed at project sites 5 4-30
Air-condition and Refrigeration Assets deployed at Office
Assets deployed at project sites 12 4-30
Canteen Equipments Assets deployed at Office
Assets deployed at project sites 8 4-30
Photographic Equipments Assets deployed at Office
Assets deployed at project sites 15 4-30
Laboratory Equipments Assets deployed at Office
Assets deployed at project sites 8 4-30

400
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [2]
Property, Plant and Equipment & Capital work-in-progress (contd.)
Useful Life as per Useful life adopted
Category Sub Class
Schedule II (in years) (in years)
Electrical Installations HT/LT Electric Sub-station 22 4-30
Furniture and Fixtures Assets deployed at Office 10 2-10
Vehicles Buses & Trucks 8 5-10
Cars 7 5-10
Jeeps 7 5-10
Motorcycles 10 5-10
1) Assets with Acquisition value less than R 5,000/- is depreciated in the same financial year.
2) P&M and Office equipment at project sites costing below R 50,000/- is depreciated in the same financial year.
j) Carrying value of Property, plant and equipment hypothecated as collateral for certain borrowings and / or commitments as at March 31,
2022 - R 1479.32 crore (as at March 31, 2021: R 1476.49 crore)
k) Ageing of Capital work-in-progress
v crore

As at 31-3-2022 As at 31-3-2021
Particulars Less than More than Less than More than
1-2 years 2-3 years Total 1-2 years 2-3 years Total
1 year 3 years 1 year 3 years
Projects in progress 472.53 91.94 7.04 – 571.50 204.48 33.45 0.77 – 238.71
Projects temporarily suspended – – – – – – – – – –
Total capital work-in-progress 472.53 91.94 7.04 – 571.50 204.48 33.45 0.77 – 238.71
As on the date of balance sheet, there are no capital work-in-progress projects whose completon is overdue or has exceeded the cost,
based on approved plan.

l) Title deeds of Immovable Properties not held in name of the Company

Gross Whether title

Carrying value
carrying deed holder
in the financial Property Reason for not
Description of value as at Title deeds held in is a promoter,
statements as at held since being held in name
property March 31, name of director or
March 31, 2022 which date of Company
2022 their relative or
(R crore)
(R crore) employee
Land - Undivided 0.13 0.13 SVM Industries No 30 years Conveyance deed
Land at 171, SP (Since 1992) is pending to be
Mukherjee Road, executed. Appeal
Kolkata, West is pending before
Bengal (Area- the High Court of
3925 sq ft) Calcutta.
Building - 4 0.15 0.12 SVM Industries No 29 years Conveyance deed
flats - 171, SP (Since 1993) is pending to be
Mukherjee Road, executed. Appeal
Kolkata, West is pending before
Bengal the High Court of
Calcutta.
Freehold Land- 1.01 1.01 1. Magan Kuber * No 10 years Land acquired from
Hazira West 2. Kashiben Patel (Since 2012) farmers through
Government
3. Ishwar Prema
Acquisition Route.
The formalities are
pending from the
authorities side.

* Irrevocable Power of Attorney given to L&T by the owner, possession is with L&T.

401
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [3]
Investment Property
v crore
Cost Depreciation Book Value
Transferred Transferred
Class of assets As at from As at As at from As at As at As at
Additions Deductions Additions Deductions
1-4-2021 PPE/(to) 31-3-2022 31-3-2021 PPE/(to) 31-3-2022 31-3-2022 31-3-2021
inventories inventories
Land 47.68 – 146.37 – 194.05 – – – – – 194.05 47.68
Buildings 429.23 51.21 0.41 – 480.85 68.55 16.49 0.23 – 85.27 395.58 360.68
Total 476.92 51.21 146.78 – 674.91 68.55 16.49 0.23 – 85.27 589.64 408.36

Previous year 509.49 – 49.55 82.12 476.92 55.37 17.48 7.57 11.87 68.55
Add: Capital work-in-progress – –
589.64 408.36

(a) Depreciation is provided based on useful life supported by the technical evaluation considering business specific usage, the consumption
pattern of the assets and the past performance of similar assets:

Sr. No Class of assets Minimum useful life (in years) Maximum useful life (in years)
1. Buildings 3 60

(b) Disclosure pursuant to Ind AS 40 “Investment Property”

(i) Amount recognised in the Statement of Profit and Loss for investment property:
v crore

Sr. No. Particulars 2021-22 2020-21

1 Rental income derived from investment property 103.31 124.40
2 Direct operating expenses pertaining from investment property that generated rental
income 49.14 58.21
3 Direct operating expenses pertaining from investment property that did not generate
rental income – 4.24

(ii) Details with respect to fair valuation of Investment property:

v crore

Particulars 2021-22 2020-21

Fair valuation by:
(i) independent registered valuers [1]
1225.00 56.75
(ii) independent unregistered valuers [1]
70.12 1159.66
(iii) internal architectural department 1110.35 865.66
Total fair value 2405.47 2082.07

[1] Independent valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules,2017

Note: Above valuation is based on government rates, market research, market trend and comparable values as considered appropriate.

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [4]
Other intangible assets & Intangible assets under development
v crore
Cost Amortisation Book Value
Class of assets As at As at Up to Up to As at As at
Additions Deductions For the year Deductions
1-4-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2022 31-3-2021
Specialised Software 255.54 11.81 0.10 267.25 210.31 12.90 0.09 223.12 44.12 45.23
Technical knowhow 99.85 – – 99.85 74.25 7.20 – 81.45 18.40 25.60
New Product Design and Development 6.26 – – 6.26 6.26 – – 6.26 0.00 (0.00)
Platforms and Courses – 88.39 – 88.39 – 3.62 – 3.62 84.77 –
Total 361.65 100.20 0.10 461.75 290.83 23.72 0.09 314.46 147.29 70.83

Previous year 355.29 12.23 5.87 361.65 254.94 40.58 4.69 290.83
Add: Intangible assets under development [refer Note 4(c)] 11.26 48.01
158.55 118.84

(a) Additions during the year

v crore

FY 2021-22 FY 2020-21
Class of assets Internal Acquired Internal Acquired
Total Total
Development - External Development - External
Specialised software 2.11 9.70 11.81 – 8.28 8.28
Technical knowhow – – – – 2.78 2.78
New product design and
development – – – – 1.17 1.17
Platforms and courses 88.39 – 88.39 – – –
Total 90.50 9.70 100.20 – 12.23 12.23

(b) Depreciation is provided based on useful life supported by the technical evaluation considering business specific usage, the consumption
pattern of the assets and the past performance of similar assets:

Sr. No Class of assets Minimum useful life (in years) Maximum useful life (in years)
1. Specialised software 1 10
2. Technical knowhow 1 10
3. New product design and
development 1 6
4. Platforms and courses 5 5

(c) Ageing of intangible assets under development

v crore

As at 31-3-2022 As at 31-3-2021
Particulars Less than More than Less than More than
1-2 years 2-3 years Total 1-2 years 2-3 years Total
1 year 3 years 1 year 3 years
Projects in progress 11.14 0.12 – – 11.26 48.01 – – – 48.01
Projects temporarily suspended – – – – – – – – – –
Total capital work-in-progress 11.14 0.12 – – 11.26 48.01 – – – 48.01

As on the date of balance sheet, there are no capital work-in-progress projects whose completion is overdue or has exceeded the cost,
based on approved plan.

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Notes forming part of the Financial Statements (contd.)

NOTE [5]
Non-current Assets: Financial Assets - Investments
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Investment in equity instruments
(a) Subsidiary companies 25328.58 25465.89
(b) Associate companies 4.42 4.42
(c) Joint venture companies 1642.10 1640.09
(d) Other companies 74.40 70.22
27049.50 27180.62
Details of Non-current Assets: Financial Assets - Investments
Number of units
Particulars Face value As at As at As at
per unit 31-3-2022 31-3-2022 31-3-2021
v v crore v crore
(A) Investments in fully paid equity instruments
(a) Subsidiary companies:
(i) Investments in fully paid equity instruments:
L&T Valves Limited 100 18,00,000 161.23 161.23
Bhilai Power Supply Company Limited 10 49,950 0.05 0.05
Hi-Tech Rock Products & Aggregates Limited 10 50,000 0.05 0.05
Kesun Iron & Steel Company Private Limited [Net of provision R 95,000 (previous
year: R 95,000] 10 9,500 – –
L&T Aviation Services Private Limited 10 4,56,00,000 45.60 45.60
L&T Capital Company Limited 10 50,000 0.05 0.05
L&T Cassidian Limited [Net of provision R 0.05 crore] [previous year provision: R 0.05
crore] 10 50,000 – –
L&T Finance Holdings Limited (quoted) 10 1,63,92,29,920 5918.65 5375.82
L&T Metro Rail (Hyderabad) Limited 10 2,43,89,99,999 2439.00 2439.00
L&T Hydrocarbon Saudi Company LLC (Formerly Larsen & Toubro ATCO Saudi LLC)
[R 130.39 (previous year: R 130.39)] SAR 1000 1,000 – –
L&T Power Development Limited [Net of provision R 668.00 crore (previous year:
R 829.00 crore)] 10 3,11,27,00,000 2444.70 2283.70
L&T Power Limited 10 51,157 0.05 0.05
L&T Electromech LLC [R 171.7 (previous year: R 171.7)] OMR 1 2,10,000 – –
L&T Realty Developers Limited 10 16,71,60,700 107.72 107.72
L&T Heavy Engineering LLC [R 183.89 (previous year: R 183.89)] OMR 1 39,65,500 – –
L&T Seawoods Limited[1] 10 1,65,45,50,000 1654.55 1654.55
Mindtree Limited (quoted) 10 10,05,27,734 9567.93 9567.93
L&T Modular Fabrication Yard LLC [R 171.7 (previous year: R 171.7)] OMR 1 20,19,230 – –
L&T Innovation Campus (Chennai) Limited ( formerly known as L&T Electricals and
Automation Limited) 10 74,38,796 40.36 40.36
L&T Kuwait Construction General Contracting Company WLL [R 66.04 (previous year:
R 66.04)] KWD 1000 980 – –
L&T Technology Services Limited (quoted) 2 7,79,86,899 805.25 805.25
Larsen & Toubro Infotech Limited (quoted) 1 12,97,84,034 108.05 108.05
Larsen & Toubro Arabia LLC SAR 1000 7,500 11.08 11.08
L&T Geostructure Private Limited 10 2,47,50,000 318.50 318.50
L&T Hydrocarbon International FZE AED 1000 150 – 0.29
Larsen & Toubro LLC USD 1 50,000 0.23 0.23
L&T Construction Equipment Limited 10 19,91,42,091 22.27 22.27
Larsen & Toubro (Saudi Arabia) LLC SAR 1000 625 1.05 1.05
L&T Infrastructure Engineering Limited 10 36,00,000 21.85 21.85
L&T Global Holdings Limited USD 100 80,000 53.16 53.16
– 23721.38 23017.84

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [5]
Details of Non-current Assets: Financial Assets - Investments (contd.)
Number of units
Particulars Face value As at As at As at
per unit 31-3-2022 31-3-2022 31-3-2021
v v crore v crore
(ii) Preference share considered equity as per terms:
L&T Seawoods Limited -10% Non-cumulative, optionally convertible redeemable
preference shares, March 30, 2027. 2 82,60,00,000 826.00 826.00
L&T Seawoods Limited -10% Non-cumulative, optionally convertible redeemable
preference shares, May 12, 2027 2 4,80,00,000 48.00 48.00
L&T Seawoods Limited -10% Non-cumulative, optionally convertible redeemable
preference shares, July 14, 2027 2 4,22,50,000 42.25 42.25
L&T Seawoods Limited -10% Non-cumulative, optionally convertible redeemable
preference shares, September 3, 2027 2 4,20,00,000 42.00 42.00
L&T Uttaranchal Hydropower Limited - 10% Non-cumulative, optionally convertible
redeemable preference shares, July 17, 2029 [previous year net of provision:
R 586.00 crore] 2 – – 840.85
L&T Realty Developers Limited - 12% Non-cumulative and optionally convertible
redeemable at par preference shares, May 26, 2025. 10 64,83,00,000 648.30 648.30
1606.55 2447.40
(iii) Other equity investments:
L&T Aviation Services Private Limited 0.65 0.65
0.65 0.65
Total - (a) = (i)+(ii)+(iii) 25328.58 25465.89
(b) Associate companies:
Gujarat Leather Industries Limited [Net of provision R 0.56 crore (previous year: R 0.56
crore)] 10 7,35,000 – –
Magtorq Private Limited 100 9,000 4.42 4.42
4.42 4.42
(c) Joint Venture companies:
(i) Investments in fully paid equity instruments:
Ahmedabad-Maliya Tollway Limited [R 1000 (previous year: R 1000 )] 10 100 – –
L&T Chennai-TADA Tollway Limited [R 1000 (previous year: R 1000)] 10 100 – –
L&T Howden Private Limited 10 1,50,30,000 15.03 15.03
L&T Chiyoda Limited 10 45,00,000 4.50 4.50
L&T Hydrocarbon Caspian LLC AZM 10 9,250 0.36 0.36
L&T Sapura Shipping Private Limited 10 9,53,11,850 95.31 95.31
L&T Sapura Offshore Private Limited 10 6,000 0.01 0.01
L&T Infrastructure Development Projects Limited [Net of provision R 1723 crore
(previous year: R 1723 crore)] 10 32,10,59,096 1021.48 1021.48
L&T - MHI Power Boilers Private Limited 10 11,93,91,000 119.39 119.39
L&T - MHI Power Turbine Generators Private Limited 10 36,24,06,000 362.41 362.41
L&T Rajkot-Vadinar Tollway Limited [R 1000 (previous year: R 1000)] 10 100 – –
L&T Samakhiali Gandhidham Tollway Limited 10 13,000 0.01 0.01
L&T Special Steels and Heavy Forgings Private Limited [Net of provision R 419.28
crore (previous year: R 419.28 crore)] 10 41,92,84,000 – –
L&T Transportation Infrastructure Limited 10 1,08,64,000 10.86 10.86
L&T-Sargent & Lundy Limited 10 27,82,736 0.82 0.82
PNG Tollway Limited [R 1000 (previous year: R 1000)] 10 100 – –
Raykal Aluminium Company Private Limited 10 37,750 0.04 0.04
L&T MBDA Missile Systems Limited 10 5,10,000 0.51 0.51
L&T Halol-Shamlaji Tollway Limited [(previous year: R 1000)] [2] 10 100 – –
1630.73 1630.73
(ii) Other equity investments:
L&T - MHI Power Boilers Private Limited 2.24 2.24
L&T - MHI Power Turbine Generators Private Limited 9.13 7.12
11.37 9.36

405
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [5]
Details of Non-current Assets: Financial Assets - Investments (contd.)
Number of units
Particulars Face value As at As at As at
per unit 31-3-2022 31-3-2022 31-3-2021
v v crore v crore
(iii) Preference shares-(equity portion):
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative, non-
convertible redeemable at par preference shares, December 8, 2024 [Net of provision
R 78.33 crore (previous year: R 78.33 crore)] 10 15,54,00,000 – –
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative, non-
convertible redeemable at par preference shares, December 8, 2025 [Net of provision
R 97.91 crore (previous year: R 97.91 crore)] 10 17,76,00,000 – –
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative, non-
convertible redeemable at par preference shares, December 8, 2026 [Net of provision
R 84.41 crore (previous year: R 84.41 crore)] 10 14,20,80,000 – –
– –
Total - (c) = (i)+(ii)+(iii) 1642.10 1640.09
(d) Other companies:
International Seaport Dredging Limited [Net of provision R 15.90 crore (previous year:
R 15.90 crore)] 10000 15,899 – –
BBT Elevated Road Private Limited 10 1,00,000 0.10 0.10
Utmal Multi purpose Service Co-operative Society Limited (B Class) [R 30,000 (previous
year: R 30,000)] 100 300 – –
Tidel Park Limited [refer Note 53(f)] 10 40,00,000 69.32 63.23
VP Global Fibre and Yarns Private Limited [R 22,900 (previous year: R 22,900)] 100 229 – –
New Vision Wind Power Private Limited [R 27,000 (previous year: R 27,000)] 10 2,700 – –
The New India Assurance Company Limited 10 4,45,803 4.98 6.88
L&T Halol-Shamlaji Tollway Limited [Net of provision R 1000] [2] 10 100 – –
74.40 70.22
Total - (A) =(a)+(b)+(c)+(d) 27049.50 27180.62
(B) Investment in preference shares of Joint Venture companies:
(Fair value debt portion):
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative, non-convertible
redeemable at par preference shares, December 8, 2024 [Net of provision R 77.77 crore
(previous year: R 77.77 crore)] 10 15,54,00,000 – –
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative, non-convertible
redeemable at par preference shares, December 8, 2025 [Net of provision R 79.12 crore
(previous year: R 79.12 crore)] 10 17,76,00,000 – –
L&T Special Steels & Heavy Forgings Private Limited - 6% Cumulative, non-convertible
redeemable at par preference shares, December 8, 2026 [Net of provision R 56.28 crore
(previous year: R 56.28 crore)] 10 14,20,80,000 – –
Total - (B) – –
Total Non current Investment =(A)+(B) 27049.50 27180.62

Details of quoted/unquoted investments: v crore

Particulars As at 31-3-2022 As at 31-3-2021
(a) Aggregate amount of quoted investments and market value thereof;
Book Value 16417.71 15874.88
Market Value 176195.93 109342.27
(b) Aggregate amount of unquoted investments;
Book Value 10631.79 11305.74
(c) Aggregate amount of Impairment in value of investments 3300.57 4047.57
[1]
L&T Seawoods Limited, a wholly owned subsidiary has received the approval from The National Company Law Tribunal, Mumbai Bench, for the
reduction of its paid-up equity share capital from R 1654.55 crore (1,65,45,50,000 shares of R 10 each) to R 1354.55 crore (1,35,45,50,000 shares
of R 10 each). As the approval is received on April 4, 2022, the cancellation of 30,00,00,000 equity shares of R 10 each by returning cash of R 300
crore to the Company is effected in financial year 2022-23.
[2]
Ceased to be a joint venture w.e.f. October 21, 2021

406
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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [6]
Non-current Assets: Financials Assets - Loans
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Unsecured loan and advances to related parties:
Subsidiary companies, considered good 3923.29 2853.13
Subsidiary companies, considered doubtful 283.48 277.70
Less: Allowance for expected credit loss 283.48 277.70
– –
Joint venture companies, considered good 1891.60 1730.38
Less: Allowance for expected credit loss 1730.38 1730.38
161.22 –
Unsecured other loans,considered good 0.07 0.39
4084.58 2853.52

Note [7]
Non current Assets: Financial Assets - Others
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Unsecured security deposits, considered good: 179.87 161.45
Less: Allowance for expected credit loss 39.86 37.79
140.01 123.66
Fixed deposits with banks (maturity more than 12 months) 0.36 2.89
Cash and bank balances not available for immediate use [refer Note 7(a)] 94.29 283.85
Forward contract receivables 129.74 100.06
Embedded derivative receivables 2.39 1.75
Premium receivable on financial guarantee contracts 77.73 6.12
Other receivables 79.28 13.45
523.80 531.78

Note 7(a)
Particulars of cash and bank balances not available for immediate use
v crore
Sr. As at As at
Particulars
No. 31-3-2022 31-3-2021
1 Amount received (including interest accrued thereon) from customers of property development business –
to be handed over to housing society on its formation. 27.71 27.02
2 Contingency deposit (including interest accrued thereon) received from customers of property
development business towards their sales tax liability - to be refunded / adjusted depending on the
outcome of the legal case. 16.09 27.78
3 Other bank balances (including interest accrued thereon) not available for immediate use being security
offered for bids submitted, loans availed, acquisition etc. 601.04 616.43
Total 644.84 671.23
Less: Amount reflected under current assets [refer Note 13] 550.55 387.38
Amount reflected under other financial assets - non-current [refer Note 7] 94.29 283.85

407
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [8]
Other non-current assets
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Capital advances:
Secured 0.92 0.61
Unsecured 107.37 31.02
Advance recoverable other than in cash 1802.28 1807.49
Current tax receivable (net) 2079.73 2059.17
3990.30 3898.29

Note [9]
Current Assets: Inventories
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Raw materials [includes goods-in-transit R 27.64 crore (previous year: R 3.86 crore)] 403.90 396.97
Components [includes goods-in-transit R 7.80 crore (previous year: R 1.48 crore)] 188.99 102.97
Construction materials [includes goods-in-transit R 116.74 crore (previous year: R 39.17 crore)] 150.83 59.78
Manufacturing work-in-progress 272.15 212.23
Finished goods 16.65 3.57
Stock-in-trade [includes goods-in-transit R 32.73 crore (previous year: R 44.34 crore)] 319.61 361.31
Stores and spares [includes goods-in-transit R 1.76 crore (previous year: R 4.60 crore)] 148.10 156.27
Loose tools 5.79 2.71
Property development related work-in-progress 1620.82 1567.90
Property development project - completed property 5.67 13.86
3132.51 2877.57

Note : During the year R 28.06 crore (previous year: R 5.19 crore) was recognised as expense towards write-down of inventories (net).

Note [10]
Current Assets: Financial Assets - investments
v crore
Particulars As at 31-3-2022 As at 31-3-2021
(A) Government and trust securities 2146.25 869.51
(B) Debentures and bonds
(i) Subsidiary companies 2228.72 2659.72
(ii) Joint venture companies 698.81 884.37
(iii) Other debentures & bonds 5024.60 5731.81
7952.13 9275.90
(C) Mutual funds 5961.14 11787.56
(D) Collateral borrowing and lending obligation (CBLO) 1499.57 299.98
(E) Commercial paper 919.13 –
18478.22 22232.95

408
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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [10] (contd.)
Details of current investments in Subsidiary companies and Joint venture companies
Number of
units
Particulars Face
As at As at As at
value per
31-3-2022 31-3-2022 31-3-2021
unit
v v crore v crore
Debentures and Bonds (quoted):
(i) Subsidiary companies:
9.10% L&T Finance Limited NCD April 13, 2022 1000 200,000 20.12 21.06
9.00% L&T Finance Limited NCD April 15, 2024 1000 153,800 17.70 18.15
8.92% L&T Finance Limited NCD October 6, 2021 1000000 – – 5.34
7.75% L&T Finance Limited NCD July 10, 2025 1000000 1,450 160.25 162.02
8.93% L&T Finance Limited NCD August 8, 2022 1000000 250 25.78 26.84
8.25% L&T Finance Limited NCD June 24, 2023 1000000 250 26.26 27.03
8.50% L&T Finance Limited Sr.C NCD March 17, 2023 1000000 – – 80.66
7.95% L&T Finance Limited NCD July 28, 2025 1000000 1,300 144.59 145.30
7.90% L&T Finance Limited NCD July 13, 2024 1000000 – – 223.28
7.30% L&T Finance Limited NCD September 8, 2023 1000000 – – 541.76
8.50% L&T Finance Limited NCD January 17, 2023 1000000 – – 75.07
8.50% L&T Finance Limited NCD February 17, 2023 1000000 – – 16.11
8.55% L&T Finance Limited NCD November 29, 2022 1000000 – – 108.92
7.15% L&T Finance Limited NCD September 16, 2024 1000000 1,000 106.42 107.25
6.75% L&T Finance Limited NCD November 3, 2024 1000000 2,000 204.36 205.27
7.85% L&T Finance Limited NCD July 9, 2025 1000000 900 99.81 100.36
6.55% L&T Finance Limited NCD November 3, 2028 1000000 2,750 277.79 304.15
9.81% L&T Metro Rail (Hyderabad) Limited June 18, 2035 1000000 1,780 216.79 91.51
9.81% L&T Metro Rail (Hyderabad) Limited November 2, 2035 1000000 2,490 305.96 61.57
9.85% L&T Metro Rail (Hyderabad) Limited January 28, 2036 1000000 1,570 189.60 30.27
6.68% L&T Metro Rail (Hyderabad) Limited SR C April 30, 2027 1000000 4,220 433.29 –
9.50% L&T Metro Rail (Hyderabad) Limited SR-F NCD November 26, 2030 1000000 – – 183.50
9.55% L&T Metro Rail (Hyderabad) Limited SR-F NCD September 28, 2030 1000000 – – 124.30
Total- (i) 2228.72 2659.72
(ii) Joint Venture companies:
8.50% Kudgi Transmission Limited SR-D NCD April 25, 2021 1000000 – – 15.16
8.50% Kudgi Transmission Limited SR-E NCD April 25, 2022 1000000 120 12.98 13.48
8.80% Kudgi Transmission Limited April 25, 2023 1000000 150 16.80 –
8.80% Kudgi Transmission Limited April 25, 2024 1000000 170 19.47 –
8.80% Kudgi Transmission Limited April 25, 2025 1000000 180 20.89 –
8.80% Kudgi Transmission Limited April 25, 2026 1000000 200 23.47 –
8.80% Kudgi Transmission Limited April 25, 2027 1000000 210 24.81 –
9.14% Kudgi Transmission Limited SR-K NCD April 25, 2028 1000000 230 27.86 28.39
9.14% Kudgi Transmission Limited SR-L NCD April 25, 2029 1000000 240 29.26 29.74
9.14% Kudgi Transmission Limited SR-M NCD April 25, 2030 1000000 270 33.06 33.61
9.14% Kudgi Transmission Limited SR-N NCD April 25, 2031 1000000 280 34.38 34.73
9.14% Kudgi Transmission Limited SR-O NCD April 25, 2032 1000000 290 35.63 35.21
9.50% Kudgi Transmission Limited SR-P NCD April 25, 2033 1000000 310 38.99 38.72
9.50% Kudgi Transmission Limited SR-Q NCD April 25, 2034 1000000 330 41.44 41.42
9.50% Kudgi Transmission Limited SR-R NCD April 25, 2035 1000000 360 45.08 45.12
9.50% Kudgi Transmission Limited SR-S NCD April 25, 2036 1000000 390 48.63 48.74
9.50% Kudgi Transmission Limited SR-T NCD April 25, 2037 1000000 410 50.89 51.33
9.50% Kudgi Transmission Limited SR-U NCD April 25, 2038 1000000 350 43.63 43.90
9.50% Kudgi Transmission Limited SR-V NCD April 25, 2039 1000000 960 120.14 120.67
9.50% Kudgi Transmission Limited SR-W NCD April 25, 2040 1000000 250 31.40 31.50
8.60% L&T Infrastructure Development Project Limited NCD December 26, 2026 1000000 – – 272.65
Total- (ii) 698.81 884.37

409
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [10] (contd.)
Details of quoted/unquoted investments:
v crore
Particulars As at 31-3-2022 As at 31-3-2021
(a) Aggregate amount of quoted current investments and market value thereof;
Book Value 10098.38 10145.41
Market Value 10098.38 10145.41
(b) Aggregate amount of unquoted current investments;
Book Value (Accounted based on NAV) 5961.14 11787.56
Book Value 2418.70 299.98

Note [11]
Current Assets: Financial Assets - Trade receivables
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Secured, considered good 4.86 –
Less: Allowance for expected credit loss – –
4.86 –
Unsecured,considered good 38884.29 35452.34
Less: Allowance for expected credit loss 2618.76 2247.47
36265.53 33204.87
Credit Impaired 939.94 885.80
Less: Allowance for expected credit loss 862.98 759.07
76.96 126.73
36347.35 33331.60

[a] Current assets: Financial assets - Trade receivables ageing

v crore
As at 31-3-2022
Outstanding for the following periods from the due date of payment
Particulars
Not due Less than 6 months - More than Total
1-2 years 2-3 years
6 months 1 year 3 years
Undisputed:
- Considered good 23905.65 8135.95 1758.83 1545.72 916.40 1487.72 37750.27
- Increase in credit risk – – – – – – –
- Credit impaired 6.09 17.29 72.92 145.90 72.12 442.90 757.22
Disputed:
- Considered good 34.04 – 25.35 85.08 12.26 982.15 1138.88
- Increase in credit risk – – – – – – –
- Credit impaired – – – – 45.18 137.54 182.72
Gross trade receivables 23945.78 8153.24 1857.10 1776.70 1045.96 3050.31 39829.09
Less: Allowance for expected credit loss 3481.74
Total 36347.35

410
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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [11]
[a] Current assets: Financial assets - Trade receivables ageing (contd.)
v crore
As at 31-3-2021
Outstanding for the following periods from the due date of payment
Particulars
Not due Less than 6 months - More than Total
1-2 years 2-3 years
6 months 1 year 3 years
Undisputed:
- Considered good 21294.87 7017.45 2560.33 1621.96 654.99 1075.14 34224.74
- Increase in credit risk – – – – – – –
- Credit impaired 11.06 118.81 52.63 29.27 82.66 400.70 695.13
Disputed:
- Considered good 94.82 19.01 32.11 57.44 107.46 916.76 1227.60
- Increase in credit risk – – – – – – –
- Credit impaired – – 8.74 35.19 – 146.74 190.67
Gross trade receivables 21400.75 7155.27 2653.81 1743.86 845.11 2539.34 36338.14
Less: Allowance for expected credit loss 3006.54
Total 33331.60

Note [12]
Current Assets: Financials Assets - Cash and cash equivalents
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Balance with banks 3831.27 2973.74
Cheques and draft on hand 278.04 343.37
Cash on hand 3.67 3.70
Fixed deposits with banks (maturity less than 3 months) 1605.25 204.14
5718.23 3524.95

Note [13]
Current Assets: Financials Assets - Other bank balances
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Fixed deposits with banks 77.23 109.39
Earmarked balances with banks-unclaimed dividend 129.35 127.78
Earmarked balances with banks-Section4(2)(1)(D) of RERA [1] – 3.46
Margin money deposits with banks 23.15 22.58
Cash and bank balances not available for immediate use [refer Note 7(a)] 550.55 387.38
780.28 650.59
[1]
Real Estate (Regulation and Development) Act, 2016

411
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [14]
Current Assets: Financials Assets - Loans
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Unsecured loan and advances to related parties:
Subsidiary companies, considered good 82.79 95.08
Subsidiary companies, considered doubtful 5.45 –
Less: Allowance for expected credit loss 5.45 –
– –
Associate/Joint venture companies, considered good 166.71 162.53
Other unsecured loans, considered good 0.10 0.26
249.60 257.87

Note [15]
Current Assets: Financial Assets - Others
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Unsecured security deposits, considered good 340.11 356.11
Less: Allowance for expected credit loss 0.45 0.57
339.66 355.54
Advances to related parties:
Subsidiary companies 634.80 699.97
Less: Allowance for expected credit loss 6.03 –
628.77 699.97
Associate companies 4.83 0.30
Joint venture companies 115.68 53.18
Less: Allowance for expected credit loss 6.04 5.08
109.64 48.10
Advances recoverable in cash 611.58 744.87
Premium receivable on financial guarantee contracts 36.65 9.41
Forward contract receivable 402.82 604.74
Embedded derivative receivable 48.49 51.06
Doubtful advances:
Deferred credit sale of ships 27.11 27.11
Other loans and advances 232.49 295.78
259.60 322.89
Less: Allowance for expected credit loss 259.60 322.89
– –
2182.44 2513.99

412
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [16]
Other current assets
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Contract Assets [refer Note 41(d)]
Due from customers (construction and project related activity) 33429.11 30631.64
Retention money including unbilled revenue 15354.22 13761.41
48783.33 44393.05
Advance recoverable other than in cash 6319.19 5399.27
Government grants receivable 26.71 63.49
Other loans and advances 1.60 11.72
Less: Allowance for expected credit loss 1.60 11.72
– –
55129.23 49855.81

Note [17]
Equity share capital
(a) Share capital authorised, issued, subscribed and paid up:

As at 31-3-2022 As at 31-3-2021
Particulars Number of Number of
v crore v crore
shares shares
Authorised: [1]
Equity shares of R 2 each 40,18,50,00,000 8037.00 25,12,50,00,000 5025.00

Issued, subscribed and fully paid up:

Equity shares of R 2 each 1,40,50,29,123 281.01 1,40,45,55,297 280.91

[1]
Pursuant to the approval of the Scheme of Arrangement of merger of L&T Hydrocarbon Engineering Limited with the Company, the
authorised share capital of L&T Hydrocarbon Engineering Limited is added to the authorised share capital of the Company, w.e.f Appointed Date
i.e. April 1, 2021.

(b) Reconciliation of the number of equity shares and share capital:

2021-22 2020-21
Particulars Number of Number of
v crore v crore
shares shares
Issued, subscribed and fully paid up equity share outstanding at the beginning of
the year 1,40,45,55,297 280.91 1,40,38,92,022 280.78
Add: Shares issued on exercise of employee stock options during the
year 4,73,826 0.10 6,63,275 0.13
Issued, subscribed and fully paid up equity shares outstanding at the
end of the year 1,40,50,29,123 281.01 1,40,45,55,297 280.91

413
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [17]
Equity share capital (contd.)
(c) Terms/rights attached to equity shares:
The Company has only one class of share capital, i.e., equity shares having face value of R 2 per share. Each holder of equity share is
entitled to one vote per share.

(d) Shareholder holding more than 5% of equity shares as at the end of the year:

As at 31-3-2022 As at 31-3-2021
Name of the shareholders Number of Shareholding Number of Shareholding
shares % shares %
L&T Employees Trust 19,25,58,158 13.70 19,25,58,158 13.71
Life Insurance Corporation of India 16,69,42,875 11.88 19,24,67,386 13.70

(e) Shares reserved for issue under options outstanding on un-issued share capital:

As at 31-3-2022 As at 31-3-2021
Number of Number of
Particulars R crore R crore
equity shares equity shares
(at face (at face
to be issued to be issued
value) value)
as fully paid as fully paid
Employee stock options granted and outstanding [1] 17,18,419 0.34[2] 17,81,564 0.36[2]
[1]
Note 17 (h) infra for terms of employee stock option schemes.
[2]
The equity shares will be issued at a premium of R 38.30 crore (previous year: R 42.74 crore).

(f) The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five years ended March
31, 2022 are 46,67,64,755 (period of five years ended March 31, 2021: 46,67,64,755 shares).

(g) The aggregate number of equity shares issued pursuant to contract, without payment being received in cash in immediately preceding
last five years ended on March 31, 2022 – Nil (period of five years ended March 31, 2021: Nil).

(h) Stock option schemes

i. Terms:
A. The grant of options to the employees under the stock option schemes is on the basis of their performance and other eligibility
criteria. The options are vested equally over a period of 4 years [5 years in the case of series 2006(A)], subject to the discretion
of the management and fulfillment of certain conditions.

B. Options can be exercised anytime within a period of 7 years from the date of grant and would be settled by way of issue of
equity shares. Management has discretion to modify the exercise period.
ii. The details of the grants under the aforesaid schemes are summarised below:

Sr. 2003(B) 2006(A)

Series reference
No. 2021-22 2020-21 2021-22 2020-21
1 Grant price - (R) 7.80 7.80 267.10 267.10
2 Grant dates 23-5-2003 onwards 1-7-2007 onwards
3 Vesting commences on 23-5-2004 onwards 1-7-2008 onwards
4 Options granted and outstanding at the beginning of the year 1,73,150 1,45,935 16,08,414 23,75,454
5 Options lapsed 7,130 4,875 1,32,958 1,75,675
6 Options granted 1,78,839 1,04,000 3,71,930 -
7 Options exercised 64,900 71,910 4,08,926 5,91,365
8 Options granted and outstanding at the end of the year, of which 2,79,959 1,73,150 14,38,460 16,08,414
Options vested 10,450 23,575 3,89,610 4,84,082
Options yet to vest 2,69,509 1,49,575 10,48,850 11,24,332
9 Weighted average remaining contractual life of options (in years) 5.67 5.74 4.29 4.23

414
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [17]
Equity share capital (contd.)
iii. The number and weighted average exercise price of stock options are as follows:
2021-22 2020-21
Weighted Weighted
Particulars No. of stock average No. of stock average
options exercise price options exercise price
(R) (R)
(A) Options granted and outstanding at the beginning of the year 17,81,564 241.90 25,21,389 252.09
(B) Options granted 5,50,769 182.90 1,04,000 7.80
(C) Options allotted 4,73,826 231.58 6,63,275 238.99
(D) Options lapsed 1,40,088 253.90 1,80,550 260.10
(E) Options granted and outstanding at the end of the year 17,18,419 224.86 17,81,564 241.90
(F) Options exercisable at the end of the year out of (E) supra 4,00,060 260.33 5,07,657 255.06
iv. Weighted average share price at the date of exercise for stock options exercised during the year is R 1635.25 (previous year:
R 1001.47) per share.
v. A. In respect of stock options granted pursuant to the Company’s stock options schemes, the fair value of the options is treated
as discount and accounted as employee compensation over the vesting period.
B. Expense on Employee Stock Option Schemes debited to the Statement of Profit and Loss during 2021-22 is R 49.11 crore
(previous year: R 45.63 crore) net of recoveries of R Nil (previous year: R 0.40 crore) from its group companies towards the
stock options granted to deputed employees, pursuant to the employee stock option schemes (Note 34). The entire amount
pertains to equity-settled employee share-based payment plans. [expense related to held for sale business R Nil (previous year:
R 2.14 crore)]
vi. During the year, the Company has recovered R 2.15 crore (previous year: R 1.25 crore) from its subsidiary companies towards the
stock options granted to their employees, pursuant to the employee stock option schemes.
vii. Weighted average fair values of options granted during the year is R 1113.62 (previous year: R 834.24) per option.
viii. The fair value has been calculated using the Black-Scholes Option Pricing Model and the significant assumptions and inputs to
estimate the fair value of options granted during the year are as follows:
Sr.
Particulars 2021-22 2020-21
No.
(i) Weighted average risk-free interest rate 5.41 % 4.81 %
(ii) Weighted average expected life of options 3.77 years 2.85 years
(iii) Weighted average expected volatility 31.02% 35.39%
(iv) Weighted average expected dividends over the life of the option R 67.82 per option R 51.22 per option
(v) Weighted average share price R 1311.86 per option R 884.83 per option
(vi) Weighted average exercise price R 182.90 per option R 7.80 per option
(vii) Method used to determine expected volatility Expected volatility is based on the historical volatility
of the Company’s share price applicable to the total
expected life of each option.
ix. The balance in share options (net) account as at March 31, 2022 is R 89.36 crore (previous year: R 87.62 crore), including R 31.70
crore (previous year: R 38.78 crore) for which the options have been vested to employees as at March 31, 2022.

(i) Capital Management:

The Company continues its policy of a conservative capital structure which has ensured that it retains the highest credit rating even
amidst an adverse economic environment. Low gearing levels also enable the Company to navigate business stresses on one hand and
raise growth capital on the other. This policy also provides flexibility of fund-raising options for future, which is especially important in
times of global economic volatility. The gross debt equity ratio is 0.30:1 as at March 31, 2022 (as at March 31, 2021 0.40:1).

During the year ended March 31, 2022, the Company paid the final dividend of R 18 per equity share for the year ended March 31,
2021 amounting to R 2528.38 crore.

The Board of directors, at their meeting held on May 12, 2022 recommended the final dividend of R 22 per equity share for the year
ended March 31, 2022, subject to approval from shareholders. On approval, the total dividend outgo is expected to be R 3091.06 crore
based on number of shares outstanding as at March 31, 2022.

415
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [18]
Other equity
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Capital reserve [1]
10.84 10.84
Capital reserve on business combination [2]
(25.77) (25.77)
Capital redemption reserve [3]
260.00 260.00
Securities premium 8718.74 8667.65
Employee share options (net)
Employee share options outstanding 130.62 124.48
Deferred employee compensation expense (41.24) (36.86)
89.38 87.62
Debenture redemption reserve [4]
138.65 138.65
General reserve [5]
26079.43 26072.13
Retained earnings 31131.14 25722.05
Foreign currency translation reserve (10.90) 9.00
Hedging reserve
Cash flow hedging reserve 283.23 221.53
Cost of hedging reserve (4.72) (7.01)
278.51 214.52
Debt instruments through other comprehensive income 163.02 300.22
66833.04 61456.91

[1]
Capital reserve: It represents the gains of capital nature which mainly include the excess of value of net assets acquired over
consideration paid by the company for business amalgamation transactions in earlier years.
[2]
Capital reserve on business combination: It arises on transfer of business between entities under common control. It represents the
difference, between the amount recorded as share capital issued plus any additional consideration in the form of cash or other assets
and the amount of share capital of the transferor [refer Note 1(ii)(ab)].
[3]
Capital redemption reserve: Created on redemption of preference shares out of profits in accordance with of Section 55(2)(c) the
Companies Act,2013.
[4]
Debenture redemption reserve (DRR): The Ministry of Corporate Affairs vide notification dated August 16, 2019, amended
the Companies (Share capital and Debenture) Rules, 2014 by which the Company is no longer required to create DRR towards the
debentures issued. Earlier to this amendment, the Company was required to maintain a DRR of 25% of the value of debentures issued,
either by a public issue or on a private placement basis and the amounts credited to the DRR was not to be utilised by the Company
except to redeem debentures. The above amount represents the DRR created out of profits of the Company prior to the said notification.
[5]
General reserve: The Company created a General Reserve in earlier years pursuant to the provisions of the Companies Act,1956
where in certain percentage of profits were required to be transferred to General Reserve before declaring dividends. As per Companies
Act 2013, the requirements to transfer profits to General Reserve is not mandatory. General Reserve is a free reserve available to the
Company.

416
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [19]
Non-current liabilities: Financial Liabilities- Borrowings

v crore
As at 31-3-2022 As at 31-3-2021
Particulars
Secured Unsecured Total Secured Unsecured Total
Redeemable non-convertible fixed rate debentures [refer
Note 19(a)(i)&(ii)] 1328.89 9526.94 10855.83 1328.48 13263.90 14592.38
Redeemable non-convertible inflation linked debentures
[refer Note 19(a)(iii)] – 129.94 129.94 – 126.15 126.15
Term loan from banks [refer Note 19(b)] – 1982.64 1982.64 – 1928.20 1928.20
1328.89 11639.52 12968.41 1328.48 15318.25 16646.73

19(a) (i) Secured redeemable non-convertible fixed rate debentures (privately placed):

Face Interest
As at As at
Sr. value per Date of for the Terms of repayment for debentures outstanding as at
31-3-2022 31-3-2021
No. debenture allotment year 31-3-2022
R crore R crore
(R) 2021-22
1 10,00,000 October 25, 301.92 301.84 9.10% p.a. Redeemable at face value at the end of 15 years from the date of
2012 payable allotment or on exercise of call option.
annually The Company has call option to redeem debentures at the end of
10th year from the date of allotment.
2 10,00,000 October 25, 269.77 269.69 9.10% p.a. Redeemable at face value at the end of 14 years from the date of
2012 payable allotment or on exercise of call option.
annually The Company has call option to redeem debentures at the end of
10th year from the date of allotment.
3 10,00,000 October 25, 269.81 269.73 9.10% p.a. Redeemable at face value at the end of 13 years from the date of
2012 payable allotment or on exercise of call option.
annually The Company has call option to redeem debentures at the end of
10th year from the date of allotment.
4 10,00,000 October 25, 269.88 269.79 9.10% p.a. Redeemable at face value at the end of 12 years from the date of
2012 payable allotment or on exercise of call option.
annually The Company has call option to redeem debentures at the end of
10th year from the date of allotment.
5 10,00,000 October 25, 269.94 269.86 9.10% p.a. Redeemable at face value at the end of 11 years from the date of
2012 payable allotment or on exercise of call option.
annually The Company has call option to redeem debentures at the end of
10th year from the date of allotment.
Total 1381.32 1380.91
Less: 52.43 52.43 Current maturity of long term borrowings [refer Note 24]
1328.89 1328.48 Borrowings non-current [refer Note 19]

Security:
13,310 fully paid redeemable non-convertible debentures having face value of 10,00,000/- each issued on private placement basis
are secured by :

(i) First pari-passu charge over certain assets of the Company with security asset cover of 1.25 times; and

(ii) Charge on the designated account under the Debenture Trust Deed.

417
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [19]
Non-current liabilities: Financial Liabilities- Borrowings (contd.)
19(a) (ii) Unsecured redeemable non-convertible fixed rate debentures (privately placed):

Face Interest
As at As at
Sr. value per for the Terms of repayment for debentures outstanding as at
Date of allotment 31-3-2022 31-3-2021
No. debenture year 31-3-2022
R crore R crore
(R) 2021-22
1 10,00,000 April 10,2012 273.63 273.49 9.75% p.a. Redeemable at face value at the end of 10th year from the
payable date of allotment.
annually
2 10,00,000 April 18, 2019 1612.53 1612.04 7.87% p.a. Redeemable at face value at the end of 3rd year from the
payable date of allotment.
annually
7 10,00,000 May 22, 2019 2137.88 2137.13 8.02% p.a. Redeemable at face value at the end of 3rd year from the
payable date of allotment.
annually
9 10,00,000 January 24, 2020 1062.71 1062.47 6.72% p.a. Redeemable at face value at the end of 3rd year from the
payable date of allotment.
annually
10. 10,00,000 April 20,2020 1332.93 1330.66 7.20% p.a. Redeemable at face value at the end of 3rd year from the
payable date of allotment.
annually
11. 10,00,000 May 6,2020 1540.43 1538.23 7.25% p.a. Redeemable at face value at the end of 4th year from the
payable date of allotment.
annually
12. 10,00,000 April 28,2020 2665.30 2661.09 7.70% p.a. Redeemable at face value at the end of 5th year from the
payable date of allotment.
annually
13. 10,00,000 April 23,2020 – 477.91 6.60% p.a.
payable
annually
14. 10,00,000 April 23,2020 479.58 479.55 7.00% p.a. Redeemable at face value at the end of 2nd year from the
payable date of allotment.
annually
15. 10,00,000 April 23,2020 2614.13 2611.51 7.25% p.a. Redeemable at face value at the end of 3rd year from the
payable date of allotment.
annually
16. 2,50,000 April 23,2020 483.77 483.78 8.00% p.a. Redeemable at face value at the end of 10th year from the
payable date of allotment.
annually
17. 2,50,000 April 23,2021 483.83 – 8.00% p.a. Redeemable at face value at the end of 9th year from the
payable date of allotment.
annually
Total 14686.72 14667.86
Less: 5159.78 926.05 Current maturity of long-term borrowings [refer Note 24]
Less: – 477.91 Short Term Unsecured Debentures [refer Note 23]
9526.94 13263.90 Borrowings –noncurrent [refer Note 19]

418
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [19]
Non-current liabilities: Financial Liabilities- Borrowings (contd.)
19(a) (iii) Unsecured redeemable non-convertible inflation linked debentures:

Face As at As at
Date of Interest for the Terms of repayment for debentures
value per 31-3-2022 31-3-2021
allotment year 2021-22 outstanding as on 31.3.2022
debenture (R) R crore R crore

10,00,000 May 23,2013 131.67 [1]

127.75 [1]
1.65% p.a. Redeemable at the end of 10th year from the
payable on date of allotment. Redemption value calculated
Inflation Adjusted as [{Average Ref WPI (on Maturity Date) / Average
Principal as on the Ref WPI (on Issue Date)} x Face Value] with Floor
date of coupon Rate as 3 % and Cap Rate as 12%. WPI here
payment refers to Wholesale Price Index

Less: 1.73 1.60 Current Liabilities: Financial Liabilities-Current maturities of Long term
borrowings [refer Note 24]

129.94 126.15 Non-Current liabilities: Financial Liabilities – Borrowings [refer Note 19]
[1]
The principal amount has been calculated as [{Average Ref WPI as at reporting period/Average Ref WPI (as at 23/5/2013)} x Face Value]

19(b) Details of term Loans (Unsecured):

As at As at
Sr. Terms of repayment of term loan outstanding as at
31-3-2022 31-3-2021 Rate of Interest for the year 2021-22
No. 31-3-2022
R crore R crore
1 1128.86 1087.56 USD LIBOR + Spread [1]
Repayable on April 14, 2025
2 541.93 521.60 USD LIBOR + Spread [1]
Repayable on October 8, 2023
3 133.46 128.46 USD LIBOR + Spread [1]
Repayable on April 8, 2023
4 133.46 128.46 USD LIBOR + Spread [1]
Repayable on April 8, 2024
5 41.22 52.99 9.00% p.a. payable monthly Repayable on October 19, 2023
6 22.26 28.61 8.40% p.a. payable monthly Repayable on May 7, 2023
7 – 730.86
Total 2001.19 2678.54
Less: 18.55 19.48 Current maturity of long-term borrowings [refer Note 24]
Less: – 730.86 Short Term Unsecured Loan [refer Note 23]
1982.64 1928.20 Borrowings noncurrent [refer Note 19]
[1]
Represents unsecured term loans obtained in foreign currency.

19(c) Annual disclosure as Large Corporate pursuant to SEBI circular dated November 26, 2018.
Annexure A :

Sr. No. Particulars Details

1 Name of the Company Larsen & Toubro Limited
2 CIN L9999MH1946PLC004768
3 Outstanding borrowings of the Company as at R 15244 Crore [1]

31st March 2022

4 Highest Credit Rating during the previous • CRISIL AAA (Stable) by CRISIL Limited
financial year along with name of the Credit • ICRA AAA (Stable) by ICRA Limited
Rating Agency • IND AAA(Stable) by India Ratings and Research Private Limited
5 Name of Stock Exchange in which the fine shall National Stock Exchange of India Limited
be paid, in case of shortfall in the required
borrowing under the framework

[1]
Figure pertains to long-term borrowings with original maturity of more of than one year (excludes External Commercial Borrowings and
inter-corporate borrowings between the Company and its subsidiaries)

419
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [19]
Non-current liabilities: Financial Liabilities- Borrowings (contd.)
Annexure B

1. Name of the Company: Larsen & Toubro Limited

2. CIN: L99999MH1946PLC004768

3. Report filed for FY (T): 2021-22

4. Details of the borrowings:

Sl. No. Particulars Details

1 2-year block period [(T), (T+1)] FY 2021-22 & FY 2022-23
2 Incremental borrowings done in 2021-22 (T) (a) R 450.00 crore [1]

3 Mandatory borrowing to be done through debt securities in 2021-22 (T) [(b) R 112.50 crore
= (25% of a)]
4 Actual borrowing done through debt securities in 2021-22 (T) (c) R 450.00 crore
5 Shortfall in the borrowing through debt securities, if any, for 2021-22 (T-1) Nil
carried forward to FY(T) (d)
6 Quantum of (d), which has been met from (c) (e) Nil
7 Shortfall, if any, in the mandatory borrowing through debt securities for Nil
2021-22 (T) {after adjusting for any shortfall in borrowing for 2020-21 (T-1)
which was carried forward to 2021-22 (T)}


[1]
Figure pertains to long-term borrowings with original maturity of more of than one year (excludes External Commercial Borrowings and
inter-corporate borrowings between the Company and its subsidiaries)

5. Details of penalty to be paid, if any, in respect to previous block (all figures in R crore):

Sl. No. Particulars Details

1 2-years block period [(T-1), (T)] FY 2020-21 & FY 2021-22
2 Amount of fine to be paid for the block, if applicable Fine = 0.2% of {(d)-(e)} Nil

Note [20]
Non-current liabilities: Other financial liabilities
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Forward contract payables 15.37 32.84
Embedded derivative payables 13.17 13.84
Financial guarantee contracts 78.76 6.23
Due to others (Mainly includes liabilities towards capital goods) 37.95 41.34
145.25 94.25

Note [21]
Non-current liabilities: Provisions
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Employee pension scheme 345.63 348.86
Post-retirement medical benefits plan 299.64 307.04
645.27 655.90

420
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [22]
Other non- current liabilities
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Other Payables (Deferred income on day one fair valuation of financial instrument) 7.84 –
7.84 –

Note [23]
Current liabilities: Financial Liabilities - Borrowings

v crore
As at 31-3-2022 As at 31-3-2021
Particulars
Secured Unsecured Total Secured Unsecured Total
Loans repayable on demand from banks – 46.00 46.00 – 22.74 22.74
Short-term loan and advances from banks – 1773.67 1773.67 – 3494.54 3494.54
Short-term debentures [refer Note 19(a)(ii)] – – – – 477.91 477.91
Commercial paper – – – – 2737.40 2737.40
Loans from related parties:
Subsidiary companies – 83.98 83.98 – 4.40 4.40
Joint venture companies – 193.74 193.74 – 90.91 90.91
– 2097.39 2097.39 – 6827.90 6827.90

23(a) Loans guaranteed by directors Nil (previous year: Nil)

23(b) The Company has fund based and non-fund based facilities (viz. bank guarantees, letter of credits and derivatives) from banks. These
facilities are secured by hypothecation of inventories and trade receivables. Amount of inventories and trade receivables that are pledged
as collateral: R 6932 crore as at March 31, 2022 (March 31, 2021: R 10182 crore)

23(c) The Company has been sanctioned working capital limits in excess of 5 crores, in aggregate, at points of time during the year, from
banks or financial institutions on the basis of security of current assets. The quarterly returns filed by the Company with such banks or
financial institutions are in agreement with the Books of Account of the Company of the respective quarters.

421
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [24]
Current liabilities: Financial liabilities - Current maturities of long-term borrowings

v crore
Particulars As at 31-3-2022 As at 31-3-2021
Secured:
Redeemable non-convertible fixed rate debentures [refer Note 19(a)(i)] 52.43 52.43
Unsecured:
Redeemable non-convertible fixed rate debentures [refer Note 19(a)(ii)] 5159.78 926.05
Term loans from banks [refer Note 19(b)] 18.55 19.48
Redeemable non-convertible floating rate debentures [refer Note 19(a)(iii)] 1.73 1.60
5232.49 999.56

24(a) Loans guaraneed by directors R Nil (previous year: R Nil)

Note [25]
Current liabilities: Financial liabilities - Other trade Payables

v crore
Particulars As at 31-3-2022 As at 31-3-2021
Acceptances 162.80 343.99
Due to related parties:
Subsidiary companies 745.40 1002.92
Associate companies 7.67 14.01
Joint venture companies 1771.17 1761.12
2524.24 2778.05
Due to others 42224.63 37199.44
44911.67 40321.48

25(a) Current liabilities: Financial liabilities - Trade payables ageing

v crore
As at 31-3-2022
Outstanding for the following periods from the
Particulars Unbilled due date of payment
Not due Total
Dues Less than 1 More than
1-2 years 2-3 years
year 3 years
Undisputed:
Micro and small enterprises 36.27 417.20 18.32 0.51 0.45 0.92 473.67
Others 17859.55 20245.47 4911.97 736.38 271.35 876.99 44901.71
Disputed:
Micro and small enterprises – – – – – – –
Others – 8.44 – – 0.19 1.33 9.96
Total 17895.82 20671.11 4930.29 736.89 271.99 879.24 45385.34

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Note [25]
[a] Current liabilities: Financial liabilities - Trade payables ageing (contd.)
v crore
As at 31-3-2021
Outstanding for the following periods from the
Particulars Unbilled due date of payment
Not due Total
Dues Less than 1 More than
1-2 years 2-3 years
year 3 years
Undisputed:
Micro and small enterprises 49.08 368.78 27.88 1.04 0.55 0.83 448.16
Others 17514.68 15129.19 5806.58 423.90 525.38 901.29 40301.02
Disputed:
Micro and small enterprises – – – – – 0.14 0.14
Others – 16.76 1.04 – – 2.66 20.46
Total 17563.76 15514.73 5835.50 424.94 525.93 904.92 40769.78

Note [26]
Current liabilities - Other financial liabilities
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Unclaimed dividend 129.35 127.78
Forward contract payable 346.90 319.51
Embedded derivative payable 84.29 55.38
Financial guarantee contracts 37.44 9.74
Due to others [1] [2]
2719.65 1939.12
3317.63 2451.53
[1]
Due to others include due to directors R 89.75 crore (previous year: R 36.96 crore)
[2]
Mainly includes liability towards employee benefits & capital goods

Note [27]
Other current liabilities
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Contract liabilities [refer Note 41(d)]
Due to customers (Construction related activity) 11307.00 11143.41
Advances from customers 15264.06 14036.37
26571.06 25179.78
Other payables [1]
2317.78 2294.98
28888.84 27474.76

[1]
mainly includes liabilities towards joint ventures, statutory dues & employee benefits.

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Note [28]
Current liabilities - provisions
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Provision for employee benefits:
Gratuity 97.67 83.08
Compensated absences 615.38 605.21
Employee pension scheme 25.93 29.09
Post-retirement medical benefits plan 13.38 13.30
752.36 730.68
Other Provisions [refer Note 50] 1109.12 919.70
1861.48 1650.38

Note [29]
Contingent liabilities
v crore
Particulars As at 31-3-2022 As at 31-3-2021
(a) Claims against the Company not acknowledged as debts 3105.76 2989.58
(b) Sales tax/GST liability that may arise in respect of matters in appeal 263.21 292.64
(c) Excise duty/service tax/customs duty liability that may arise including those in respect of
matters in appeal/challenged by the Company in Writ 341.37 179.47
(d) Income tax liability that may arise in respect of which the Company is in appeal 2546.93 359.38
(e) Corporate and bank guarantees for debt given on behalf of subsidiary companies/joint
venture companies 12871.12 5534.67
(f) Corporate and bank guarantees for performance given on behalf of subsidiary companies/
joint venture companies 29856.81 13899.75
(g) Contingent liabilities, incurred in relation to interests in joint operations 6520.74 7042.11
(h) Share in contingent liabilities of joint operations for which the Company is contingently liable 57.01 61.95
(i) Contingent liabilities in respect of liabilities of other joint operators of joint operations 4405.09 4875.31
(j) Indemnities for performance given on behalf of third parties 324.60 479.43
Notes:
1. The Company does not expect any reimbursements in respect of the above contingent liabilities except in respect of matters at (j)
2. It is not practicable to estimate the timing of cash outflows, if any, in respect of matters at (a) to (d) above pending resolution of the
arbitration/appellate proceedings. Further, the liability mentioned in (a) to (d) above includes interest except in cases where the Company
has determined that the possibility of such levy is remote.
3. In respect of matters at (e), the cash outflows, if any, could generally occur up to five, being the period over which the validity of the
guarantees extends except in a few cases where the cash outflows, if any, could occur any time during the subsistence of the borrowing
to which the guarantees relate.
4. In respect of matters at (f), the cash outflows, if any, could generally occur up to nine, being the period over which the validity of the
guarantees extends.
5. In respect of matters at (g) to (i), the cash outflows, if any, could generally occur up to completion of projects undertaken by the
respective joint operations.
6. In respect of matters at (j), the cash outflows, if any, is fully reimbursable by the third parties under an agreement entered in to with
them

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Note [30]
Commitments
v crore
Particulars As at 31-3-2022 As at 31-3-2021
(a) Estimated amount of contracts remaining to be executed on capital account (net of
advances) on:
(i) Property, plant & equipment 1892.06 1658.27
(ii) Intangible assets 3.44 –
1895.50 1658.27
(b) Funding committed by way of equity/loans to subsidiary companies 477.57 14.00

Note [31]
Revenue from operations
v crore
Particulars 2021-22 2020-21
Sales and service:
Construction and project related activity 95458.20 81906.37
Manufacturing and trading activity 2857.52 2645.51
Property development activity 537.81 62.25
Engineering and service fees 158.86 188.68
Servicing 1233.93 1031.75
Commission 137.48 116.57
100383.80 85951.13
Other operational income:
Profit/(loss) on sale of investment properties – 426.21
Technical fees 4.75 7.16
Lease rentals 65.51 74.20
Income from services to Group companies 89.58 73.02
Premium earned (net) on related forward exchange contracts 46.59 50.50
Miscellaneous income 410.18 673.26
616.61 1304.35
101000.41 87255.48

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Note [32]
Other income
v crore
Particulars 2021-22 2020-21
Interest income:
Subsidiary and associate companies 275.42 216.97
Others 780.09 733.74
1055.51 950.71
Dividend income:
Subsidiary companies 1458.49 844.68
Joint venture companies 156.83 174.38
Others 3.74 15.34
1619.06 1034.40
Net gain/(loss) on fair valuation of investments (9.04) 70.42
Net gain/(loss) on sale of investments 515.13 1006.28
506.09 1076.70
Net gain/loss on derivatives at fair value through profit or loss 70.88 (52.11)
Net gain/(loss) on sale of property, plant and equipment 14.78 51.19
Lease rentals 95.83 88.75
Miscellaneous income (net of expenses) 250.50 210.65
3612.65 3360.29

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Note [33]
Manufacturing, construction and operating expenses
v crore
Particulars 2021-22 2020-21
Cost of raw materials, components consumed:
Raw materials and components 12755.52 12383.54
Less: Scrap sales 164.66 89.79
12590.86 12293.75
Construction materials consumed 31445.49 22869.85
Purchase of stock-in-trade 1070.62 1226.68
Stores, spares and tools consumed 2718.52 1701.07
Sub-contracting charges 25166.38 21993.33
Changes in inventories of finished goods,work-in-progress and stock-in-trade and
property development :
Closing stock:
Finished goods 16.65 3.57
Stock-in-trade 324.10 360.03
Work-in-progress 7425.48 5458.26
7766.23 5821.86
Less: Opening stock:

Finished goods 3.57 18.12

Stock-in-trade 360.03 308.36

Work-in-progress 5458.26 5857.48
5821.86 6183.96
(1944.37) 362.10
Other manufacturing ,construction and operating expenses:
Power and fuel 2054.12 1369.62
Royalty and technical know-how fees 4.38 57.50
Packing and forwarding 567.90 497.88
Rent hire charges 2623.82 2129.71
Engineering, professional, technical and consultancy fees 1612.56 1554.15
Insurance 450.92 435.34
Rates and taxes 681.13 583.66
Travelling and conveyance 779.91 712.89
Repairs to plant and equipment 112.14 63.76
Repairs to buildings 24.33 21.28
General repairs and maintenance 566.64 546.17
Bank guarantee charges 315.32 310.08
Provision/(reversal) for foreseeable losses on construction contracts (38.61) 37.16
Other provisions 164.64 136.79
Miscellaneous expenses 598.65 727.69
10517.85 9183.68
81565.35 69630.46

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Note [34]
Employee benefits expense
v crore
Particulars 2021-22 2020-21
Salaries,wages and bonus 6626.74 5736.54
Contribution to and provision for :
Provident fund and pension fund 165.40 154.01
Superannuation/employee pension schemes 29.83 11.41
Gratuity funds 85.93 75.51
281.16 240.93
Expenses on employees stock option schemes 49.11 43.89
Employee medical and other insurance premium expenses 96.94 99.81
Staff welfare expenses 607.85 539.80
Recoveries on account of deputation (264.92) (262.77)
7396.88 6398.20

Note [35]
Sales, administration and other expenses
v crore
Particulars 2021-22 2020-21
Power and fuel 58.75 49.64
Packing and forwarding 52.36 43.26
Professional fees 425.99 343.15
Audit fees 7.78 6.91
Insurance 58.42 60.80
Rent & hire charges 114.52 101.68
Rates and taxes 62.29 (1.17)
Travelling and conveyance 188.12 145.33
Repairs to buildings 16.49 21.39
General repairs and maintenance 236.19 207.13
Directors’ fees 1.07 1.13
Telephone, postage and telegrams 108.09 100.06
Advertising and publicity 53.19 29.59
Stationery and printing 37.33 36.03
Commission:
Distributors and agents 22.30 16.95
Others 1.92 2.20
24.22 19.15
Bank charges 77.98 77.43
Miscellaneous expenses 410.58 404.33
Bad debts and advances written off(net of written back) 179.15 389.83
Less: Allowance for expected credit loss written back 156.66 375.97
22.49 13.86
Corporate social responsibility 131.67 157.49
Allowance for expected credit loss (net) 1056.35 703.96
Exchange (gain)/loss (net) (142.09) 36.68
Provision with respect to loans given to subsidiary companies 0.90 277.70
Other provisions 45.46 175.11
Recoveries from subsidiary and associates (65.47) (93.30)
2982.68 2917.34

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NOTE [35] (a)
Aggregation of expenses disclosed vide Note 33 -Manufacturing ,construction and operating expenses ,Note 34 -Employee benefits expense
and Note 35 - Sales, administration and other expenses.
v crore

Sr. 2021-22 2020-21

Nature of expenses
No. Note 33 Note 34 Note 35 Total Note 33 Note 34 Note 35 Total
1 Power and fuel 2054.12 – 58.75 2112.87 1369.62 – 49.64 1419.26
2 Packing and forwarding 567.90 – 52.36 620.26 497.88 – 43.26 541.14
3 Insurance 450.92 96.94 58.42 606.28 435.34 99.81 60.80 595.95
4 Rent hire charges 2623.82 – 114.52 2738.34 2129.71 – 101.68 2231.39
5 Rates and taxes 681.13 – 62.29 743.42 583.66 – -1.17 582.49
6 Travelling and conveyance 779.91 – 188.12 968.03 712.89 – 145.33 858.22
7 Repairs to buildings 24.33 – 16.49 40.82 21.28 – 21.39 42.67
8 General repairs and maintenance 566.64 – 236.19 802.83 546.17 – 207.13 753.30
9 Miscellaneous expenses 598.65 – 410.58 1009.23 727.69 – 404.33 1132.02
Note [36]
Finance costs
v crore
Particulars 2021-22 2020-21
Interest expenses 1689.77 2376.98
Other borrowing costs – 0.10
Exchange loss 64.47 4.63
1754.24 2381.71
Note [37]
Depreciation, amortisation, impairment and obsolescence
v crore
Particulars 2021-22 2020-21
Depreciation on:
Property, plant and equipment 1021.04 962.27
Right of use assets 104.00 122.80
Investment property 16.49 17.48
1141.53 1102.55
Amortisation of intangible assets 23.72 40.58
Impairment of property, plant and equipment – 0.10
Obsolescence on property, plant and equipment 7.25 7.45
1172.50 1150.68

Note [38]
Disclosure pursuant to Ind AS 103 “Business Combinations”:
L&T Hydrocarbon Engineering Limited (LTHE), a wholly owned subsidiary, is merged with the Company under a Scheme of Arrangement
approved by National Company Law Tribunal, Mumbai on January 28, 2022. The merger is effective from the appointed date April 1, 2021.
LTHE has a registered office in Mumbai, India and is engaged in the business of EPC solutions for the global Oil & Gas industry from front-end
design through detailed engineering, modular fabrication, procurement, project management, construction, installation, and commissioning.

No fresh shares are issued to effect the merger as LTHE is a wholly owned subsidiary of the Company. Further the merger is accounted in
accordance with the Scheme of Arrangement and accounting standards using pooling of interest method, involving the following:

i. The assets and liabilities of LTHE are reflected at their carrying amounts. No adjustment is made to reflect the fair values, or recognise
any new asset or liability.

ii. The balance of the Retained earnings appearing in the financial statements of the LTHE is aggregated with the corresponding balance
appearing in the financial statements of the Company.

iii. Restating the financials of the Company from April 1, 2020.

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Note [39]
Disclosure pursuant to Ind AS 105 “Non-current assets held for sale and discontinued operations”:

During the year 2020-21, the Company completed the divestment of Electrical & Automation (E&A) business which was classified as
discontinued operation.

(a) The operating profit from E&A business upto the date of divestment and the gain on divestment have been shown below:

v crore
Particulars 2020-21
(i) Revenue from operations 1262.74
(ii) Total expense 1141.83
(iii) Profit before tax (i)-(ii) 120.91
(iv) Tax expense 27.21
(v) Profit after tax (iii)-(iv) 93.70
(vi) Gain on transfer of E&A business before tax 11078.32
(vii) Tax on above (including related deferred tax reversal) 2521.54
(viii) Gain on transfer E&A business (net of tax) (vi)-(vii) 8556.78
(ix) Other Comprehensive Income (2.63)
(b) Major classes of assets and liabilities of E&A business transferred:
v crore
Particulars As at
August 31, 2020
Group(s) of assets classified as held for sale:
Property, plant and equipment 655.04
Capital work-in-progress 11.22
Intangible assets 174.97
Intangible assets under development 130.46
Loans 2.03
Inventories 641.50
Trade receivables 701.11
Other assets 231.69
Total 2548.02
Liabilities related to group(s) of assets classified as held for sale:
Trade payables 591.74
Provisions 91.32
Other liabilities 347.67
Total 1030.73
Carrying amount of net assets sold 1517.29
(c) Summarised Statement of Cash Flows of discontinued operations:
v crore
Particulars 2020-21
Cash flow from operating activities (2.48)
Cash flow from investing activities [1]
(60.37)
Cash flow from financing activities –
Activities related to borrowings and investments of surplus funds were managed at Corporate and accordingly formed part of
unallocable corporate assets/liabilities (refer Note 40). There were no borrowings or investments specifically allocable to E&A business.

[1]
represents additions & deletions to property, plant and equipment and intangible assets adjusted for movement of (a) capital work-in-progress
for property, plant and equipment and (b) Intangible assets under development during the year.

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NOTE [40]
Disclosure pursuant to Ind AS 108 “Operating Segment”

(a) Information about reportable segments:

v crore
For the year ended 31-3-2022 For the year ended 31-3-2021
Particulars Inter- Inter-
External Total External Total
segment segment
Revenue
Infrastructure 69157.59 427.74 69585.33 58079.21 284.94 58364.15
Hydrocarbon 17351.47 12.03 17363.50 16004.75 6.62 16011.37
Power 4418.84 29.35 4448.19 3176.56 16.08 3192.64
Heavy Engineering 2723.94 314.52 3038.46 2711.42 306.81 3018.23
Defence Engineering 3218.00 8.40 3226.40 3409.99 0.13 3410.12
Electrical & Automation (discontinued operations) – – – 1217.93 44.81 1262.74
Others 4130.57 23.46 4154.03 3873.55 65.80 3939.35
Sub-total 101000.41 815.50 101815.91 88473.41 725.19 89198.60
Revenue of discontinued operations – – – (1217.93) (44.81) (1262.74)
Inter-segment revenue (815.50) (815.50) (680.38) (680.38)
Total 101000.41 – 101000.41 87255.48 – 87255.48
Segment result [Profit /(loss) before interest and tax]
Infrastructure 4956.38 4274.41
Hydrocarbon 1551.38 1267.68
Power 139.38 111.08
Heavy Engineering 470.11 489.02
Defence Engineering 533.48 616.98
Electrical & Automation (discontinued operations) – 120.91
Others 552.46 708.32
Total 8203.19 7588.40
Result of discontinued operations – (120.91)
Inter-segment margins on capital jobs – (11.11)
Unallocable corporate income net of expenditure 3292.46 3062.71
Finance cost (1754.24) (2381.71)
Exceptional items[Note 59] 290.06 (2818.65)
Profit before tax 10031.47 5318.73
Current tax (2427.94) (1847.72)
Deferred tax 275.92 (323.70)
Net profit after tax from continuing operations 7879.45 3147.31
Profit before tax from discontinued operations – 11199.23
Tax expense of discontinued operations – (2548.75)
Net profit after tax from discontinued operations – 8650.48
Net profit after tax from continuing operations &
discontinued operations 7879.45 11797.79
v crore
Segment Assets Segment Liabilities
Particulars As at As at As at As at
31-3-2022 31-3-2021 31-3-2022 31-3-2021
Infrastructure 78516.42 71165.97 56504.01 48169.76
Hydrocarbon 11618.71 9212.21 9195.80 10654.59
Power 5840.27 5518.52 4757.17 4672.13
Heavy Engineering 2894.59 3165.49 1314.82 1430.07
Defence Engineering 4806.78 5843.61 3732.45 3766.94
Electrical & Automation (discontinued operations) – – – –
Others 7225.62 6616.69 3989.02 3819.33
Total 110902.39 101522.49 79493.27 72512.82
Unallocable corporate assets/liabilities 58610.12 59386.55 22905.19 26658.40
Inter- segment assets/liabilities (1010.23) (993.42) (1010.23) (993.42)
Total assets/liabilities 168502.28 159915.62 101388.23 98177.80

431
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Notes forming part of the Financial Statements (contd.)

NOTE [40]
Disclosure pursuant to Ind AS 108 “Operating Segment” (contd.)
v crore
Depreciation,
amortisation, Other non-cash Finance cost Interest income
impairment & Additions to
expenses included in included in segment included in segment
obsolescence non-current assets
included in segment segment expense expense expense
Particulars expenses
For the For the For the For the For the For the For the For the For the For the
year year year year year year year year year year
ended ended ended ended ended ended ended ended ended ended
31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021
Infrastructure 697.03 667.67 36.31 33.53 194.80 276.08 4.58 6.02 1863.02 1111.21
Hydrocarbon 112.82 127.03 2.56 3.58 – – – – 491.36 61.32
Power 32.33 35.58 0.91 0.48 – – – – 53.30 55.88
Heavy Engineering 46.41 47.21 1.18 0.82 – – – – 42.17 36.32
Defence Engineering 116.76 136.69 1.83 1.14 – – – – 84.26 56.83
Electrical & Automation
[Discontinued operations] – 0.69 – 2.14 – – – – – 66.58
Others 41.82 41.88 2.18 2.39 – – – – 740.76 600.10
Total 1047.17 1056.75 44.97 44.08 194.80 276.08 4.58 6.02 3274.87 1988.24
Unallocated corporate 125.33 95.46 4.14 1.95 (194.80) (276.08) (4.58) (6.02) 2023.26 1809.22
Inter-segment – (0.84) – – – – – – (264.01) (1020.78)
Total 1172.50 1151.37 49.11 46.03 – – – – 5034.12 2776.68
Note : There is no impairment in non-financial assets of the segments. Unallocable corporate expenses include impairment loss of Nil for
the year ended March 31,2022 (previous year: R 0.10 crore)

(b) Geographical information

v crore
Revenue by location of project

Particulars For the For the

year ended year ended
31-3-2022 31-3-2021
India(i) 80901.40 66015.45
Foreign countries:
United Arab Emirates 2258.32 1753.59
Saudi Arabia 3632.35 4712.36
Qatar 2112.02 1620.11
Kuwait 1658.85 2919.31
Other countries 10437.47 11452.59
Total foreign countries (ii) 20099.01 22457.96
Total (i+ii) 101000.41 88473.41
Less: Discontinued operations – 1217.93
Total 101000.41 87255.48

Non-current assets
Particulars As at As at
31-3-2022 31-3-2021
India (i) 13455.49 12999.29
Foreign countries (ii) 230.75 350.81
Total (i+ii) 13686.24 13350.10

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NOTE [40]
Disclosure pursuant to Ind AS 108 “Operating Segment” (contd.)
(c) Revenue contributed by any single customer in any of the operating segments, whether reportable or otherwise, does not exceed ten
percent of the Company’s total revenue.

(d) The Company’s reportable segments are organised based on the nature of products and services offered by these segments.

(e) Basis of identifying operating segments, reportable segments, segment profit and definition of each reportable segment:
(i) Basis of identifying Operating segments:
Operating segments are identified as those components of the Company (a) that engage in business activities to earn revenues
and incur expenses (including transactions with any of the Company’s other components; (b) whose operating results are regularly
reviewed by the Company’s executive management to make decisions about resource allocation and performance assessment; and
(c) for which discrete financial information is available.

The Company has six reportable segments as described under “segment composition” below. The nature of products and services
offered by these businesses are different and are managed separately given the different sets of technology and competency
requirements.

ii) Reportable segments

An operating segment is classified as reportable segment if reported revenue (including inter-segment revenue) or absolute amount
of result or assets exceed 10% or more of the combined total of all the operating segments.

iii) Segment profit

Performance of a segment is measured based on segment profit (before interest and tax), as included in the internal management
reports that are reviewed by the corporate executive management.

iv) Segment composition

• Infrastructure segment comprises engineering and construction of (a) building and factories, (b) transportation
infrastructure, (c) heavy civil infrastructure, (d) power transmission & distribution, (e) water & effluent treatment systems and
(f) minerals & metals.

• Hydrocarbon segment comprises EPC solutions for the global Oil & Gas industry from front-end design through detailed
engineering, modular fabrication, procurement, project management, construction, installation, and commissioning.

• Power segment comprises turnkey solutions for Coal-based and Gas-based thermal power plants including power generation
equipment with associated systems and/or balance-of-plant packages.

• Heavy Engineering segment comprises manufacture and supply of custom designed, engineered critical equipment &
systems to core sector industries like Fertiliser, Refinery, Petrochemical, Chemical, Oil & Gas and Thermal & Nuclear Power.

• Defence Engineering segment comprises (a) design, development, serial production and through life-support of equipment,
systems and platforms for Defence and Aerospace sectors and (b) design, construction, and repair/refit of defence vessels.

• Electrical & Automation segment (upto the date of transfer and disclosed as discontinued operation) comprises
manufacture and sale of low and medium voltage switchgear components, custom-built low and medium voltage
switchboards, electronic energy meters/protection (relays) systems and control & automation products.

• Others segment includes realty, smart world & communication projects (including military communications), marketing and
servicing of construction & mining machinery and parts thereof and manufacture, sale of rubber processing machinery and
digital platforms - (i) SuFin for B2B e-commerce & (ii) EduTech, for higher education and professional skilling.

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Note [41]
Disclosure pursuant to Ind AS 115 “Revenue from Contracts with Customers”

(a) Disaggregation of revenue into Operating Segments and Geographical areas

i. For the year ended March 31, 2022:

v crore
Revenue as per Ind AS 115 Total as per Statement
Other
Segment of Profit and Loss/
Domestic Foreign Total Revenue
Segment reporting
Infrastructure 55784.32 13177.66 68961.98 195.61 69157.59
Hydrocarbon 12320.82 4971.55 17292.37 59.10 17351.47
Power 4150.46 264.56 4415.02 3.82 4418.84
Heavy Engineering 1597.04 1084.26 2681.30 42.64 2723.94
Defence Engineering 2796.35 418.70 3215.05 2.95 3218.00
Others 3995.67 130.60 4126.27 4.30 4130.57
Total 80644.66 20047.33 100691.99 308.42 101000.41

ii. For the year ended March 31, 2021:

v crore
Revenue as per Ind AS 115 Total as per Statement
Other
Segment of Profit and Loss/
Domestic Foreign Total Revenue
Segment reporting
Infrastructure 45137.26 12579.42 57716.68 362.53 58079.21
Hydrocarbon 8863.43 7125.84 15989.27 15.48 16004.75
Power 3003.68 148.25 3151.93 24.63 3176.56
Heavy Engineering 1176.67 1491.86 2668.53 42.89 2711.42
Defence Engineering 2579.36 823.24 3402.60 7.39 3409.99
Electrical & Automation (discontinued
operations) 1050.25 158.23 1208.48 9.45 1217.93
Others 3328.74 108.95 3437.69 435.86 3873.55
Total 65139.39 22435.79 87575.18 898.23 88473.41
Less: E lectrical & Automation 1050.25 158.23 1208.48 9.45 1217.93
(discontinued operations)
Revenue for continuing operations 64089.14 22277.56 86366.70 888.78 87255.48

(b) Out of the total revenue recognised under Ind AS 115 during the year, R 95882.14 crore (previous year: R 82646.59 crore) is recognised
over a period of time and R 4809.85 crore (previous year: R 4928.59 crore) is recognised at a point in time.

(c) Movement in Expected Credit Loss during the year:

v crore
Provision on Trade
Provision on Contract Assets
Particulars Receivables
2021-22 2020-21 2021-22 2020-21
Balance as at April 1 3006.54 2871.49 1142.75 983.03
Changes in loss allowance for expected credit loss:
Provision/(reversal) of allowance for expected credit loss 411.24 297.07 379.24 141.77
Additional provision (net) towards credit impaired receivables 185.62 205.58 77.25 17.95
Written off as bad debts (121.66) (367.60) – –
Balance as at March 31 3481.74 3006.54 1599.24 1142.75

434
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [41]
Disclosure pursuant to Ind AS 115 “Revenue from Contracts with Customers” (contd.)
(d) Contract balances:

i. Movement in contract balances during the year.

v crore
2021-22 2020-21
Particulars Contract Contract Net contract Contract Contract Net contract
Assets Liabilities balances Assets Liabilities balances
Opening balance as at April 01 44393.05 25179.78 19213.27 48198.00 25675.33 22522.67
Closing balance as at March 31 48783.33 26571.06 22212.27 44393.05 25179.78 19213.27
Net increase/(decrease) 4390.28 1391.28 2999.00 (3804.95) (495.55) (3309.40)
i. During the current year, increase in net contract balances is primarily due to higher revenue recognition as compared to progress
bills raised.
During the previous year, decrease in net contract balances is primarily due to higher progress bills raised as compared to revenue
recognition.
ii. Revenue recognised from opening balance of contract liabilities amounts to R 5589.58 crore (previous year: R 5896.41 crore)
iii. Revenue recognised from the performance obligation satisfied (or partially satisfied) upto previous year (arising out of contract
modifications) amounts to R 10.19 crore (previous year: R 26.40 crore)
(e) Cost to obtain the contract:
i. Amortisation in Statement of Profit and Loss: Nil (previous year: Nil)
ii. Recognised as contract assets at March 31, 2022: Nil (previous year: Nil)
(f) Reconciliation of contracted price with revenue during the year:
v crore
Particulars 2021-22 2020-21
Opening contracted price of orders as at start of the year[1] 701910.49 675424.00
Add:
Fresh orders/change orders received (net) 104359.55 131925.57
Increase due to additional consideration recognised as per contractual terms/(decrease) due to scope
reduction (net) 2620.01 (20881.89)
Increase/(decrease) due to exchange rate movements (net) 585.84 (1203.27)
Less:
Orders completed during the year 55660.22 80749.97
On account of business transfer – 2603.95
Closing contracted price of orders as at the end of the year[1] 753815.67 701910.49
Total Revenue recognised during the year : 100691.99 87575.18
a. Revenue out of orders completed during the year 6731.81 6262.44
b. Revenue out of orders under execution at the end of the year (I) 93960.18 81312.74
Revenue recognised upto previous year (from orders pending completion at the end of the year) (II) 344714.14 312712.25
Increase/(decrease) due to exchange rate movements (III) (434.38) (323.95)
Balance revenue to be recognised in future viz. Order book (IV) 315575.73 308209.45
Closing contracted price of orders as at the end of the year[1] (I+II+III+IV) 753815.67 701910.49
[1]
including full value of partially executed contracts.

(g) Outstanding performance and Time for its expected conversion into Revenue:
v crore
Time for expected conversion to Revenue
Outstanding
Total Beyond 5
performance Upto 1 Year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years
years
As at March 31, 2022 315575.73 130487.43 96242.11 56898.50 18900.06 4689.65 8357.98
As at March 31, 2021 308209.45 114926.17 102087.76 61709.27 16998.38 5676.86 6811.01

435
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [42]
Disclosure pursuant to Ind AS 1 “Presentation of financial statements”:

a. Current assets expected to be recovered within twelve months and after twelve months from the reporting date:
v crore
As at 31-3-2022 As at 31-3-2021
Within After Within After
Particulars Note
twelve twelve Total twelve twelve Total
months months months months
Inventories 9 1726.46 1406.05 3132.51 2207.29 670.28 2877.57
Trade receivables 11 34436.45 1910.90 36347.35 32303.21 1028.40 33331.60
Loans 14 249.60 – 249.60 257.87 – 257.87
Other financial assets 15 2115.35 67.09 2182.44 2512.75 1.23 2513.99
Other current assets 16 46426.90 8702.33 55129.23 41965.41 7890.40 49855.81
b. Current liabilities expected to be settled within twelve months and after twelve months from the reporting date:
v crore
As at 31-3-2022 As at 31-3-2021
Within After Within After
Particulars Note
twelve twelve Total twelve twelve Total
months months months months
Trade payables:
Due to micro enterprises and small 378.96 94.72 473.67 328.25 120.05 448.30
enterprises
Due to others 25 42,800.99 2110.68 44911.67 38008.99 2312.49 40321.48
Lease Liability 70.15 54.29 124.44 75.37 38.66 114.03
Other financial liabilities 26 3295.44 22.19 3317.63 2429.01 22.52 2451.53
Other current liabilities 27 24356.50 4532.34 28888.84 22808.98 4665.78 27474.76
Provisions 28 1480.32 381.16 1861.48 1224.10 426.28 1650.38
Note [43]
Disclosure with regard to changes in liabilities arising from financing activities as required by Ind AS 7 “Statement of Cash Flows”:
v crore
Current
Non-current Current maturities
Sr
Particulars borrowings borrowings of long term Lease liability Total
No.
(Note 19) (Note 23) borrowings
(Note 24)
1 Balance as at April 01, 2020 7990.00 13795.12 3555.48 208.14 25548.74
2 Additions to lease liability – – – 109.15 109.15
3 Changes from financing cash flows 9117.73 (6823.60) (3396.88) (117.04) (1219.79)
4 Changes on lease termination/lease
concessions – – – (9.98) (9.98)
5 The effect of changes in foreign exchange
rates (63.20) (125.57) (1.29) – (190.06)
6 Interest accrued 601.76 (18.05) (157.31) – 426.40
7 Other changes (transfer within categories) (999.56) – 999.56 – –
8 Balance as at March 31, 2021 16646.73 6827.90 999.56 190.27 24664.46
9 Additions to lease liability – – – 86.30 86.30
10 Changes from financing cash flows 450.00 (4713.97) (18.00) (96.33) (4378.30)
11 Changes on lease termination/lease
concessions – – – (1.82) (1.82)
12 The effect of changes in foreign exchange
rates 39.94 20.05 – – 59.99
13 Interest accrued 1064.23 (36.59) (981.56) – 46.08
14 Other changes (transfer within categories) (5232.49) – 5232.49 – –
15 Balance as at March 31, 2022 12968.41 2097.39 5232.49 178.42 20476.71

436
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [43]
Disclosure with regard to changes in liabilities arising from financing activities as required by Ind AS 7 “Statement of Cash Flows”: (contd.)
Amounts reported in Statement of Cash Flows under financing activities:
v crore
Particulars 2021-22 2020-21
Proceeds from non-current borrowings 450.00 9117.73
Repayment of non-current borrowings (18.00) (3396.88)
(Repayments)/proceeds from other borrowings (net) (4713.97) (6823.60)
Repayment of lease liability (96.33) (117.04)
Total changes from financing cash flows (refer to Sr.No 3 & 10 supra) (4378.30) (1219.79)

Note [44]
Disclosure pursuant to Ind AS 12 “Income Taxes”:

(a) Major components of tax expense/(income):

v crore
Sr.
Particulars 2021-22 2020-21
No.
1. Profit or Loss section
(i) Current Income tax :
Current income tax expense 2424.86 3943.32
Tax expense of earlier years 3.08 5.73
(ii) Deferred tax:
Tax expense on origination and reversal of temporary differences (275.92) 771.12
Income tax expense reported in Profit or Loss [(i)+(ii)] 2152.02 4720.17
Income tax expense is attributable to:
Profit from continuing operations (including exceptional items) 2152.02 2171.42
Profit from discontinued operation – 2548.75
2152.02 4720.17
2. Other comprehensive income (OCI) Section:
(i) Items not to be reclassified to Profit or Loss in subsequent periods:
Current tax expense/(income):
On remeasurement of defined benefit plans 19.51 13.27
19.51 13.27
(ii) Items to be reclassified to Profit or Loss in subsequent periods:
(A) Current tax expense/(income):
On gain/(loss) on cash flow hedges other than mark to market 71.85 (2.45)
71.85 (2.45)
(B) Deferred tax:
On mark to market gain/(loss) on cash flow hedges (63.26) 72.19
Net gain/(loss) on cost of hedge reserve 0.77 2.97
Net gain/(loss) on fair value of debt securities (40.70) 54.79
On foreign currency translation of joint operations (6.69) 4.42
(109.88) 134.37
Income tax expense reported in the OCI section [(i)+(ii)] (18.52) 145.19

437
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

[Note 44]
Disclosure pursuant to Ind AS 12 “Income Taxes”: (contd.)
(b) Reconciliation of tax expense and the accounting profit multiplied by domestic tax rate applicable in India:
v crore
Sr.
Particulars 2021-22 2020-21
No.
(1) Profit before tax from:
Continuing Operations (including exceptional items) 10031.47 5318.73
Discontinued Operations – 11199.23
10031.47 16517.96
(2) Corporate tax rate as per Income Tax Act, 1961 25.17% 25.17%
(3) Tax on Accounting profit (3)=(1)*(2) 2524.72 4157.24
(4) (i) Tax on expenses not tax deductible:
(A) Corporate social responsibility 33.14 39.08
(B) Tax on employee perquisites borne by the company 3.04 2.52
(ii) Tax effect on impairment recognised on which deferred tax asset is not recognised – 795.33
(iii) Effect of current tax related to earlier years 3.08 5.73
(iv) Effect of lower tax rate on long term capital gains (12.96) (266.65)
(v) Tax effect of losses in joint operation of current year on which no deferred tax benefit is
recognised 3.48 6.95
(vi) Effect of deduction with respect to dividend income (407.49) (260.34)
(vii) Reversal of deferred tax on brought forward losses on utlisation as set off against gains – 103.51
(viii) Tax effect on various other items 5.01 136.80
Total effect of tax adjustments [(i) to (viii)] (372.70) 562.93
(5) Tax expense recognised during the year (5)=(3)+(4) 2152.02 4720.17
(6) Effective tax Rate (6)=(5)/(1) 21.45% 28.58%
(c) (i) Unused tax losses for which no deferred tax asset (DTA) is recognised in Balance Sheet:

As at 31-3-2022 As at 31-3-2021
Particulars Base Amount Deferred Tax Base Amount Deferred Tax
Expiry date Expiry date
(v crore) (v crore) (v crore) (v crore)
Capital loss 682.79 156.22 FY 2029-30 – –
(ii) Unrecognised deductible temporary differences for which no deferred tax asset (DTA) is recognised in Balance Sheet:
v crore

Sr. As at 31-3-2022 As at 31-3-2021

Particulars
No. Base Amount Deferred Tax Base Amount Deferred Tax
1. Deductible temporary differences towards provision for diminution
in value of investments on which DTA not created 5380.05 1278.86 6127.05 1449.77
2. Temporary differences arising out of revaluation of tax base of
assets (on account of indexation benefit) 7965.30 1822.46 7026.37 1607.63
Total 13345.35 3101.32 13153.42 3057.40

438
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

[Note 44]
Disclosure pursuant to Ind AS 12 “Income Taxes”: (contd.)
(d) Components of deferred tax (assets) and liabilities recognised in the Balance Sheet and Statement of Profit and Loss
v crore
Balance Sheet Statement of Profit and Loss
Sr.
Particulars As at As at
No. 2021-22 2020-21
31-3-2022 31-3-2021
1. Disputed statutory liability claimed on payment basis u/s 43B of the
Income Tax Act, 1961 194.34 175.19 19.15 41.91
2. Items disallowed u/s 43B of Income Tax Act, 1961 (321.23) (270.63) (50.61) 58.82
3. Provision for doubtful debt and advances (1325.05) (1105.37) (219.67) (41.67)
4. Difference in book depreciation and income tax depreciation 282.30 327.06 (44.76) (140.20)
5. Gain/(loss) on derivative transactions 7.88 70.59 – –
6. Deferred tax on capital losses – – – 787.94
7. Other temporary differences 21.46 48.89 19.97 64.32
Deferred tax expense/(income) (275.92) 771.12
Net deferred tax (assets)/liabilities (1140.30) (754.27)

(e) Reconciliation of deferred tax (assets)/liabilities

v crore
Sr.
Particulars 2021-22 2020-21
No.
1. Balance as at April 1 (754.27) (1660.12)
2. Tax (income)/expense during the period recognised in:
(i) Statement of Profit and Loss in Profit or Loss section (275.92) 771.12
(ii) Statement of Profit and Loss under OCI section (109.88) 134.37
(iii) Hedge reserve (other than through OCI) (0.23) 0.36
3 Balance as at March 31 (1140.30) (754.27)

439
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [45]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 19 “Employee Benefits”

i Defined contribution plans: [Note [1](k)(ii)(A)]: Amount of R 100.65 crore (previous year: R 94.32 crore out of which R 5.88 crore pertains
to discontinued operations) is recognised as an expense.

ii Defined benefit plans:[Note [1](k)(ii)(B)]:

a) The amount recognised in Balance Sheet are as follows:

v crore
Post-retirement Trust-managed
Gratuity Plan Company pension plan
medical benefit plan provident fund plan
Particulars
As at As at As at As at As at As at As at As at
31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021
A) Present value of defined benefit obligation
- Wholly funded 677.74 628.00 – – – – 3618.59 3417.58
- Wholly unfunded 97.67 83.08 313.02 320.34 371.56 377.95 – –
775.41 711.08 313.02 320.34 371.56 377.95 3618.59 3417.58
Less: Fair value of plan assets 659.28 626.66 – – – – 3887.73 3727.53
Amount to be recognised as liability/(asset) 116.13 84.42 313.02 320.34 371.56 377.95 (269.14) (309.95)
B) Amounts reflected in the Balance Sheet
Liabilities 116.13 84.42 313.02 320.34 371.56 377.95 28.46 26.62
Assets – – – – – – – –
Net liability/(asset) 116.13 84.42 313.02 320.34 371.56 377.95 28.46 26.62
Net liability/(asset) - current 116.13 84.42 13.38 13.30 25.93 25.36 28.46 [1]
26.62 [1]

Net liability/(asset) - Non current – – 299.64 307.04 345.63 352.59 – –

[1] Employer’s and employee’s contribution due towards Provident Fund

b) The amounts recognised in Statement of Profit and Loss are as follows:

v crore
Post-retirement Company pension Trust-managed
Gratuity plan
Particulars medical benefit plan plan provident fund plan
2021-22 2020-21 2021-22 2020-21 2021-22 2020-21 2021-22 2020-21
1 Current service cost 85.93 77.71 13.54 13.25 2.98 4.03 88.70 82.90
2 Interest cost 37.77 38.63 20.23 20.03 23.52 23.62 268.79 268.87
3 Interest income on plan assets (39.40) (35.71) – – – – (268.79) (268.87)
4 Actuarial losses/(gains) - others (0.69) (5.00) (27.95) (4.72) (18.32) 5.25 – –
5 Actuarial losses/(gains) - difference between
actual return on plan assets and interest income (30.57) (48.16) – – – – 66.50 (111.85)
6 Past service cost – – – – 10.22 – – –
7 Actuarial gain/(loss) not recognised in books – – – – – – (66.50) 111.85
8 Amount capitalised out of the above/recovered
from S&A – (0.01) – (0.02) – – – –
Total (1 to 8) 53.04 27.47 5.82 28.54 18.40 32.90 88.70 82.90
i Amount included in "Employee benefits
expense" 85.92 75.50 13.54 12.79 13.20 4.03 88.70 79.79
ii Amount included as part of "Finance cost" (1.62) 2.93 20.23 20.03 23.52 23.62 – –
iii Amount included as part of "Other
comprehensive income” (31.26) (53.16) (27.95) (4.72) (18.32) 5.25 – –
iv Amount included in "Profit from discontinued
operations" – 2.20 – 0.44 – – – 3.11
Total (i+ii+iii+iv) 53.04 27.47 5.82 28.54 18.40 32.90 88.70 82.90
Actual return on plan assets 69.96 83.87 – – – – 202.29 380.73

440
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [45]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 19 “Employee Benefits” (contd.)
c) The changes in the present value of defined benefit obligation representing reconciliation of opening and closing balances thereof
are as follows:
v crore
Post-retirement Company pension Trust-managed
Gratuity plan
medical benefit plan plan provident fund plan
Particulars
As at As at As at As at As at As at As at As at
31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021
Opening balance of the present value of defined
benefit obligation 711.09 766.78 320.34 316.16 377.95 369.13 3417.58 3178.15
Add: Current service cost 85.93 77.71 13.54 13.25 2.98 4.03 88.70 82.90
Add: Interest cost 37.77 38.63 20.22 20.03 23.52 23.62 268.79 268.87
Add: Contribution by plan participants
i) Employee – – – – – – 225.24 246.99
ii) Transfer-in/(out) – (4.83) – – – – 84.25 70.58
Add/(less): Actuarial losses/(gains) arising from
changes in:
i) demographic assumptions (0.28) (0.95) 6.86 3.69 – 6.00 – –
ii) financial assumptions (31.81) 8.36 (29.54) 8.16 (16.71) – – –
iii) experience adjustments 31.39 (12.49) (5.27) (16.56) (1.62) (0.75) – –
Less: Benefits paid (60.53) (158.93) (13.13) (24.39) (24.78) (24.08) (465.97) (429.91)
Add: Past service cost – – – – 10.22 – – –
Add: Business transfer – (0.70) – – – – – –
Add/(less): Translation adjustments 1.86 (2.50) – – – – (0.00) (0.00)
Closing balance of the present value of defined
benefit obligation 775.42 711.09 313.02 320.34 371.56 377.95 3618.59 3417.58

d) Changes in the fair value of plan assets representing reconciliation of the opening and closing balances thereof are as follows:

v crore
Trust-managed
Gratuity plan
provident fund plan
Particulars
As at As at As at As at
31-3-2022 31-3-2021 31-3-2022 31-3-2021
Opening balance of the fair value of the plan assets 626.66 554.11 3727.53 3362.79
Add: Interest income on plan assets [1]
39.40 35.71 268.79 268.87
Add/(Less): Actuarial gains/(losses)
Difference between actual return on plan assets and interest income 30.57 48.16 (66.50) 111.85
Add: Contribution by the employer 1.01 111.41 81.52 83.53
Add/(less): Transfer in/(out) – (0.82) 84.25 70.59
Add: Contribution by plan participants – – 258.11 259.81
Less: Benefits paid (38.36) (121.91) (465.97) (429.90)
Closing balance of the plan assets 659.28 626.66 3887.73 3727.54
[1] Basis used to determine interest income on plan assets:

The Trust formed by the Company manages the investments of provident funds and gratuity fund. Interest income on plan assets
is determined by multiplying the fair value of the plan assets by the discount rate determined at the start of the annual reporting
period.

The Company expects to fund R 17.71 crore (previous year: R 0.92 crore) towards its gratuity plan and R 100.49 crore (previous year:
R 81.06 crore) towards its trust-managed provident fund plan during the year 2021-22.

441
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [45]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 19 “Employee Benefits” (contd.)
e) The fair value of major categories of plan assets are as follows:
v crore
Gratuity plan
Particulars As at 31-3-2022 As at 31-3-2021
Quoted Unquoted Total Quoted Unquoted Total
Cash and cash equivalents – 2.90 2.90 – 48.70 48.70
Equity instruments 26.35 – 26.35 19.98 – 19.98
Debt instruments - Corporate bonds 215.05 – 215.05 261.80 0.31 262.10
Debt instruments - Central government bonds 169.90 – 169.90 186.78 – 186.78
Debt instruments - State government bonds 145.80 – 145.80 106.67 – 106.67
Debt instruments - PSU bonds 19.85 – 19.85 23.53 – 23.53
Mutual funds – Equity 24.10 45.83 69.93 23.21 23.41 46.63
Mutual funds – Debt – – – – 3.17 3.17
Mutual funds – Others – 3.90 3.90 – 2.90 2.90
Insurer managed funds – – – – – –
Fixed deposits – 3.37 3.37 – 3.44 3.44
Special deposit schemes – 1.48 1.48 – 1.48 1.48
Other (payables)/receivables – 0.76 0.75 – (78.72) (78.72)
Closing balance of the plan assets 601.05 58.24 659.28 621.97 4.69 626.66

v crore
Trust-managed provident fund plan
Particulars As at 31-3-2022 As at 31-3-2021
Quoted Unquoted Total Quoted Unquoted Total
Cash and cash equivalents – 18.59 18.59 – 34.82 34.82
Equity instruments 146.46 – 146.46 70.41 – 70.41
Debt instruments - Corporate bonds 1,187.32 – 1,187.32 1,081.76 23.77 1,105.53
Debt instruments - Central government bonds 696.10 – 696.10 828.84 – 828.84
Debt instruments - State government bonds 1,054.53 – 1,054.53 833.74 – 833.74
Debt instruments - PSU bonds 395.46 – 395.46 455.15 – 455.15
Mutual funds – Equity 52.66 150.76 203.42 77.96 99.62 177.58
Mutual funds – Debt – – – – 17.61 17.61
Mutual funds – Others – 30.19 30.19 – 2.78 2.78
Fixed deposits – – – – 1.02 1.02
Special deposit schemes – 155.49 155.49 – 200.03 200.03
Other (payables)/receivables 0.17 (0.00) 0.17 0.01 (0.01) (0.00)
Closing balance of the plan assets 3532.70 355.03 3887.73 3347.88 379.64 3727.52
f) The average duration of the defined benefit plan obligations at the end of the reporting period is as follows:

Plans As at 31-3-2022 As at 31-3-2021

1) Gratuity plan 7.38 7.69
2) Post-retirement medical benefit plan 14.16 14.53
3) Company pension plan 7.52 8.01

442
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [45]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 19 “Employee Benefits” (contd.)
g) Principal actuarial assumptions at the Balance Sheet date (expressed as weighted averages):

Plans As at 31-3-2022 As at 31-3-2021

i) Discount rate:
a) Gratuity plan 7.05% 6.47%
b) Company pension plan 7.05% 6.47%
c) Post-retirement medical benefit plan 7.05% 6.47%
ii) Annual increase in healthcare costs (refer note vii infra) 5.00% 5.00%
iii) Salary Growth rate:
a) Gratuity plan 6.00% 6.00%
b) Company pension plan 9.00% 9.00%
iv) Attrition Rate:

a) For gratuity plan the attrition rate varies from 1% to 10% (previous year: 1% to 11%) for various age groups.

b) For Company pension plan, the attrition rate varies from 0% to 2% (previous year: 0% to 2%) for various age groups.

c) For post-retirement medical benefit plan, the attrition rate varies from 1% to 11% (previous year: 1% to 11%) for various
age groups.

v) The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and
other relevant factors, such as supply and demand in the employment market.

vi) The interest payment obligation of trust-managed provident fund is assumed to be adequately covered by the interest
income on long-term investments of the fund. Any shortfall in the interest income over the interest obligation is recognised
immediately in the Statement of Profit and Loss.

vii) The obligation of the Company under the post-retirement medical benefit plan is limited to the overall ceiling limits. At
present, healthcare cost, as indicated in the principal actuarial assumption given supra, has been assumed to increase at
5.00% p.a.

viii) (A) One percentage point change in actuarial assumptions would have the following effects on the defined benefit obligation
of gratuity plan:
v crore
Effect of 1% increase Effect of 1% decrease
Particulars
2021-22 2020-21 2021-22 2020-21
Impact of change in salary growth rate 53.61 52.08 (47.59) (46.18)
Impact of change in discount rate (46.78) (45.55) 53.61 52.39
(B) A one percentage point change in actuarial assumptions would have the following effects on the defined benefit
obligation of Company pension plan:
v crore
Effect of 1% increase Effect of 1% decrease
Particulars
2021-22 2020-21 2021-22 2020-21
Impact of change in discount rate (26.45) (28.02) 30.37 32.31
(C) A one percentage point change in actuarial assumptions would have the following effects on the defined benefit
obligation of post-retirement medical benefit plan:
v crore
Effect of 1% increase Effect of 1% decrease
Particulars
2021-22 2020-21 2021-22 2020-21
Impact of change in healthcare cost 22.66 22.49 (18.59) (18.39)
Impact of change in discount rate (40.25) (41.29) 50.83 52.57

443
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Notes forming part of the Financial Statements (contd.)

Note [45]
Disclosure pursuant to Indian Accounting Standard (Ind AS) 19 “Employee Benefits” (contd.)
h) Characteristics of defined benefit plans and associated risks:
1 Gratuity plan:
The Company operates gratuity plan through a trust wherein every employee is entitled to the benefit equivalent to fifteen
days last salary drawn for each completed year of service. The same is payable on termination of service or retirement
whichever is earlier. The benefit vests after five years of continuous service. The Company’s scheme is more favorable as
compared to the obligation under Payment of Gratuity Act, 1972.
The defined benefit plan for gratuity of the Company is administered by separate gratuity funds that are legally separate
from the Company. The trustees nominated by the Company are responsible for the administration of the plan. There are no
minimum funding requirements of these plans. The funding of these plans are based on gratuity fund’s actuarial measurement
framework set out in the funding policies of the plan. These actuarial measurements are similar compared to the assumptions
set out in (g) supra. Employees do not contribute to any of these plans.
Unfunded gratuity represents a small part of gratuity plan which is not material. Further, the unfunded portion includes
amounts payable in respect of the Company’s foreign operations which result in gratuity payable to employees engaged as per
local laws of country of operation.
2 Post-retirement medical care plan:
The Post-retirement medical benefit plan provides for reimbursement of health care costs to certain categories of employees
post their retirement. The reimbursement is subject to an overall ceiling sanctioned based on cadre of the employee at the
time of retirement. The plan is unfunded. Employees do not contribute to the plan.
3 Company’s pension plan:
In addition to contribution to state-managed pension plan (EPS scheme), the Company operates a post retirement pension
scheme, which is discretionary in nature for certain cadres of employees. The quantum of pension depends on the cadre of the
employee at the time of retirement. The plan is unfunded. Employees do not contribute to the plan.
4 Trust managed provident fund plan:
The Company manages provident fund plan through a provident fund trust for its employees which is permitted under the
Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. The plan mandates contribution by employer at a fixed
percentage of employee’s salary. Employees also contribute to the plan at a fixed percentage of their salary as a minimum
contribution and additional sums at their discretion. The plan guarantees interest at the rate notified by Employees’ Provident
Fund Organisation. The contribution by employer and employee together with interest are payable at the time of separation
from service or retirement whichever is earlier. The benefit under this plan vests immediately on rendering of service.
The interest payment obligation of trust-managed provident fund is assumed to be adequately covered by the interest
income on long term investments of the fund. Any shortfall in the interest income over the interest obligation is recognized
immediately in the Statement of Profit and Loss as actuarial loss. Any loss/gain arising out of the investment risk and actuarial
risk associated with the plan is also recognized as expense or income in the period in which such loss/gain occurs.
All the above defined benefit plans expose the Company to general actuarial risks such as interest rate risk and market
(investment) risk.
i) The Company will assess the impact of Code on Wages, 2019 and the Code on Social Security, 2020 and give effect in the financial
statements when the date of implementation of these codes and the Rules/Schemes thereunder are notified.

Note [46]
Disclosure pursuant to Ind AS 20 “Accounting for Government Grants and Disclosure of Government Assistance”:

(i) The Company’s exports qualify for various export benefits offered in the form of duty credit scrips under foreign trade policy framed by
Department General of Foreign Trade India (DGFT). Income accounted towards such export incentives and duty drawback amounts to
R 93.53 crore (previous year: R 242.54 crore).

(ii) The Company’s defence manufacturing facility is eligible for certain incentives under Gujarat Aerospace and Defence Policy, 2016.
Income accounted towards such incentives amounts to R 13.05 crore (previous year: Nil).

444
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures”

(a) List of related parties over which control exist and status of transactions entered during the year:
Transaction entered
Sr
Name of the Subsidiary Company Nature of relationship during the year
No.
(Yes/No)
1 L&T Construction Equipment Limited Wholly Owned Subsidiary [WOS] Yes
2 Bhilai Power Supply Company Limited Subsidiary Yes
3 Kesun Iron and Steel Company Private Limited [1] Subsidiary No
4 L&T Power Limited Subsidiary Yes
5 L&T Aviation Services Private Limited WOS Yes
6 L&T Capital Company Limited WOS Yes
7 L&T Infra Contractors Private Limited [2] WOS of L&T Capital Company Limited No
8 Larsen & Toubro International FZE WOS of L&T Global Holdings Limited Yes
9 L&T Global Holdings Limited WOS Yes
10 Larsen & Toubro Heavy Engineering LLC Subsidiary Yes
11 L&T Modular Fabrication Yard LLC Subsidiary Yes
12 PT Larsen & Toubro Hydrocarbon Engineering Indonesia Subsidiary No
13 Larsen & Toubro Kuwait Construction General Contracting WOS Yes
Company WLL
14 Larsen Toubro Arabia LLC Subsidiary Yes
15 L&T Hydrocarbon Saudi Company WOS Yes
16 Larsen & Toubro Electromech LLC Subsidiary Yes
17 L&T Hydrocarbon International FZE [3] WOS No
18 L&T Geostructure Private Limited Subsidiary Yes
19 L&T Geo – L&T JV for Maharatangarh project WOS of L&T Geostructure Private Limited No
20 L&T Geo – L&T UJV CMRL CS WOS of L&T Geostructure Private Limited No
21 L&T Infrastructure Engineering Limited WOS Yes
22 Larsen & Toubro (Oman) LLC Subsidiary of Larsen & Toubro International FZE Yes
23 Larsen & Toubro Qatar LLC [4] WOS of Larsen & Toubro International FZE No
24 Larsen & Toubro Saudi Arabia LLC Subsidiary Yes
25 Larsen & Toubro T&D SA (Proprietary) Limited Subsidiary of Larsen & Toubro International FZE No
26 Larsen & Toubro (East Asia) SDN. BHD. WOS of Larsen & Toubro International FZE Yes
27 Hi-Tech Rock Products and Aggregates Limited WOS Yes
28 L&T Realty Developers Limited WOS Yes
29 L&T Innovation Campus (Chennai) Limited [5] WOS Yes
30 L&T Seawoods Limited WOS Yes
31 L&T Asian Realty Project LLP WOS of L&T Seawoods Limited Yes
32 L&T Parel Project Private Limited [6] WOS of L&T Seawoods Limited Yes
33 Chennai Vision Developers Private Limited WOS of L&T Realty Developers Limited Yes
34 L&T Vision Ventures Limited [7] Subsidiary of L&T Realty Developers Limited Yes
35 L&T Westend Project LLP Subsidiary of L&T Realty Developers Limited No
36 LTR SSM Private Limited [8] Subsidiary of L&T Realty Developers Limited No
37 L&T Valves Limited WOS Yes
38 L&T Valves Arabia Manufacturing LLC WOS of L&T Valves Limited No
39 L&T Valves USA LLC WOS of L&T Valves Limited No
40 L&T Finance Holdings Limited Subsidiary Yes
41 L&T Finance Limited WOS of L&T Finance Holdings Limited Yes
42 L&T Investment Management Limited WOS of L&T Finance Holdings Limited Yes
43 L&T Mutual Fund Trustee Limited WOS of L&T Finance Holdings Limited Yes
44 L&T Infra Credit Limited [9] WOS of L&T Finance Limited Yes
45 L&T Infra Investment Partners Advisory Private Limited WOS of L&T Finance Limited Yes
46 L&T Infra Investment Partners Trustee Private Limited WOS of L&T Finance Limited Yes

445
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
Transaction entered
Sr
Name of the Subsidiary Company Nature of relationship during the year
No.
(Yes/No)
47 L&T Financial Consultants Limited WOS of L&T Finance Holdings Limited Yes
48 Mudit Cement Private Limited WOS of L&T Financial Consultants Limited Yes
49 L&T Infra Investment Partners Subsidiary of L&T Finance Limited No
50 Larsen & Toubro Infotech Limited Subsidiary Yes
51 Syncordis Software Services India Private Limited [10] WOS of Larsen & Toubro Infotech Limited No
52 Larsen & Toubro LLC Subsidiary No
53 Larsen & Toubro Infotech GmbH WOS of Larsen & Toubro Infotech Limited No
54 Larsen & Toubro Infotech Canada Limited WOS of Larsen & Toubro Infotech Limited No
55 Larsen & Toubro Infotech LLC WOS of Larsen & Toubro Infotech Limited No
56 L&T Infotech Financial Services Technologies Inc. WOS of Larsen & Toubro Infotech Limited No
57 Larsen and Toubro Infotech South Africa (Proprietary) Limited Subsidiary of Larsen & Toubro Infotech Limited No
58 L&T Information Technology Services (Shanghai) Co., Ltd. WOS of Larsen & Toubro Infotech Limited No
59 L&T Information Technology Spain SL WOS of Larsen & Toubro Infotech Limited No
60 L&T Infotech S. DE R.L. DE C.V. WOS of Larsen & Toubro Infotech Limited No
61 Larsen & Toubro Infotech Norge AS WOS of Larsen & Toubro Infotech Limited No
62 Syncordis S.A. WOS of Larsen & Toubro Infotech GmbH No
63 Syncordis France SARL WOS of Syncordis S.A. No
64 Syncordis Limited WOS of Syncordis S.A. No
65 Syncordis PSF S.A. WOS of Syncordis S.A. No
66 Nielsen+Partners Germany WOS of Larsen & Toubro Infotech GmbH No
67 Nielsen+Partners Switzerland WOS of Nielsen+Partner Germany No
68 Nielsen+Partners Singapore WOS of Nielsen+Partner Germany No
69 Nielsen+Partners Thailand WOS of Nielsen+Partner Germany No
70 Nielsen+Partners Australia WOS of Nielsen+Partner Germany No
71 Ruletronics Limited WOS of Larsen & Toubro Infotech GmbH No
72 Ruletronics Systems Inc. WOS of Larsen & Toubro Infotech GmbH No
73 Ruletronics Systems Private Limited [10] WOS of Larsen & Toubro Infotech Limited No
74 Lymbyc Solutions Inc. WOS of Lymbyc Solutions Private Limited No
75 Lymbyc Solutions Private Limited WOS of Larsen & Toubro Infotech Limited No
76 Powerup Cloud Technologies Private Limited WOS of Larsen & Toubro Infotech Limited No
77 Larsen & Toubro Infotech UK Limited [11] WOS of Larsen & Toubro Infotech Limited Yes
78 LTI Middle East FZ-LLC [12] WOS of Larsen & Toubro Infotech Limited No
79 L&T Technology Services Limited Subsidiary Yes
80 L&T Thales Technology Services Private Limited Subsidiary of L&T Technology Services Limited Yes
81 Esencia Technologies India Private Limited WOS of L&T Technology Services Limited Yes
82 L&T Technology Services LLC WOS of L&T Technology Services Limited Yes
83 Esencia Technologies Inc. [13] WOS of L&T Technology Services LLC No
84 Graphene Semiconductor Services Private Limited WOS of L&T Technology Services Limited Yes
85 Graphene Solutions PTE Ltd. WOS of L&T Technology Services Limited No
86 Graphene Solutions SDN. BHD. WOS of L&T Technology Services Limited No
87 Graphene Solutions Taiwan Limited WOS of L&T Technology Services Limited No
88 Seastar Labs Private Limited WOS of L&T Technology Services Limited Yes
89 L&T Technology Services (Shanghai) Co. Ltd WOS of L&T Technology Services Limited No
90 L&T Technology Services (Canada) Ltd WOS of L&T Technology Services LLC No
91 Orchestra Technology, Inc. [14] WOS of L&T Technology Services LLC No
92 Mindtree Limited Subsidiary Yes
93 Mindtree Software (Shanghai) Co. Limited WOS of Mindtree Limited No
94 Bluefin Solutions SDN. BHD. WOS of Mindtree Limited No

446
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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
Transaction entered
Sr
Name of the Subsidiary Company Nature of relationship during the year
No.
(Yes/No)
95 L&T Power Development Limited WOS Yes
96 L&T Uttaranchal Hydropower Limited [15] WOS of L&T Power Development Limited Yes
97 L&T Arunachal Hydropower Limited WOS of L&T Power Development Limited Yes
98 L&T Himachal Hydropower Limited WOS of L&T Power Development Limited Yes
99 Nabha Power Limited WOS of L&T Power Development Limited Yes
100 L&T Metro Rail (Hyderabad) Limited [16] Subsidiary Yes
101 Thalest Limited [17] WOS of Larsen & Toubro International FZE No
102 Cuelogic Technologies Private Limited [18] Subsidiary of Larsen & Toubro Infotech Limited No
103 Cuelogic Technologies Inc. [18] Subsidiary of Cuelogic Technologies Private Limited No
104 L&T Cassidian Limited [19] WOS No
105 Larsen & Toubro Hydrocarbon International Limited LLC [20] Subsidiary No
106 L&T Overseas Projects Nigeria Limited [21] WOS of Larsen & Toubro International FZE No
107 L&T Capital Markets Limited [22] WOS of L&T Finance Holdings Limited Yes
108 L&T Capital Market (Middle East) Ltd [23] WOS of L&T Finance Holdings Limited No
109 Nielsen+Partners Luxembourg [24] WOS of Nielsen+Partners Germany No
110 Sahibganj Ganges Bridge‐Company Private Limited [25] WOS of L&T Capital Company Limited No
111 Servowatch Systems Limited [26] WOS of Thalest Limited Yes
112 L&T Electricals & Automation Saudi Arabia Company LLC [27] WOS of Tamco Switchgear (Malaysia) SDN. BHD Yes
113 Tamco Switchgear (Malaysia) SDN. BHD. [27] WOS of Larsen & Toubro International FZE Yes
114 Henikwon Corporation SDN. BHD. [27] WOS of Tamco Switchgear (Malaysia) SDN. BHD Yes
115 Tamco Electrical Industries Australia Pty Limited [27] WOS of Larsen & Toubro International FZE No
116 PT. Tamco Indonesia [27] WOS of Larsen & Toubro International FZE Yes
117 L&T Electrical & Automation FZE [27] WOS of Larsen & Toubro International FZE Yes
118 Kana Controls General Trading & Contracting Company W.L.L. [27] WOS of L&T Electrical & Automation FZE Yes
[1]
In process of being struck off from the register of companies
[2]
Struck off from the register of companies w.e.f. December 28, 2021
[3]
Liquidated on August 17, 2021
[4]
In process of liquidation
[5]
Formerly know as L&T Electricals and Automation Limited
[6]
Formerly known as L&T Parel Project LLP
[7]
Divested on June 3, 2021
[8]
In process of being struck off from the register of companies.
[9]
Formerly known as L&T Infra Debt Fund Limited
[10]
Merged with Larsen & Toubro Infotech Limited w.e.f. April 1, 2021
[11]
Incorporated on August 17, 2020
[12]
Incorporated on November 25, 2020
[13]
Merged with L&T Technology Services LLC w.e.f. October 1, 2021
[14]
The Company through its subsidiary has acquired stake on October 2, 2020
[15]
Divested on August 30, 2021
[16]
One equity share (the Golden Share) is held by the Government of Telangana in pursuance of the Shareholders’ Agreement
[17]
Dissolved on September 7, 2021
[18]
The company through its subsidiary has acquired stake on July 7, 2021
[19]
Dissolved w.e.f. January 28, 2021
[20]
Liquidated on May 16, 2020
[21]
Dissolved w.e.f. January 21, 2021
[22]
Divested on April 24, 2020
[23]
Liquidated w.e.f. from December 17, 2020
[24]
Merged with Syncordis PSF S.A. w.e.f. December 21, 2020
[25]
Dissolved w.e.f. March 30, 2021
[26]
Divested on December 1, 2020
[27]
Divested on August 31, 2020

447
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
(b) (i) Name of associates and joint ventures with whom transactions were carried out during the year:

Sr. No Associate Companies

1 Magtorq Private Limited
2 Magtorq Engineering Solutions Private Limited
(ii) Names of joint ventures with whom transactions were carried out during the year:
Sr. No Joint Venture Companies Sr. No Joint Venture Companies
1 L&T-Sargent & Lundy Limited 2 L&T-Chiyoda Limited
3 L&T - MHI Power Boilers Private Limited [1] 4 L&T - MHI Power Turbine Generators Private Limited [1]
5 Raykal Aluminium Company Private Limited 6 L&T Special Steels and Heavy Forgings Private Limited
7 L&T Howden Private Limited 8 L&T Sapura Shipping Private Limited
9 L&T Sapura Offshore Private Limited 10 L&T Infrastructure Development Projects Limited
11 Panipat Elevated Corridor Limited 12 Vadodara Bharuch Tollway Limited
13 L&T Interstate Road Corridor Limited 14 L&T Transportation Infrastructure Limited
15 L&T Halol-Shamlaji Tollway Limited [2] 16 Ahmedabad-Maliya Tollway Limited
17 L&T Samakhiali Gandhidham Tollway Limited 18 L&T Deccan Tollways Limited
19 Kudgi Transmission Limited 20 L&T Sambalpur-Rourkela Tollway Limited
21 L&T Rajkot-Vadinar Tollway Limited 22 L&T MBDA Missile Systems Limited
[1] Renamed
[2] The company ceased to be a joint venture w.e.f. October 21, 2021

(iii) Name of post-employment benefit plans with whom transactions were carried out during the year

Sr. No Provident Fund Trust

1 Larsen & Toubro Officers & Supervisory Staff Provident Fund
2 Larsen & Toubro Limited Provident Fund of 1952
3 Larsen & Toubro Limited Provident Fund
4 L&T Kansbahal Officers & Supervisory Provident Fund
5 L&T Kansbahal Staff & Workmen Provident Fund

Sr. No Gratuity Trust

1 Larsen & Toubro Officers & Supervisors Gratuity Fund
2 Larsen & Toubro Gratuity Fund
3 L&T Shipbuilding Limited Employees Group Gratuity Assurance Scheme
4 L&T Hydrocarbon Engineering Limited Group Gratuity Scheme

Sr. No Superannuation Trust

1 Larsen & Toubro Limited Senior Officers’ Superannuation Scheme
(iv) Name of key management Personnel and their relatives with whom transactions were carried out during the year:
(i) Executive Director

Sr. No Sr. No
1 Mr. S. N. Subrahmanyan (Chief Executive Officer & 2 Mr. R. Shankar Raman (Whole‐time Director & Chief
Managing Director) Financial Officer)
3 Mr. Shailendra Roy (Whole‐time Director) [1] 4 Mr. Subramanian Sarma (Whole-time Director) [2]
5 Mr. D. K. Sen (Whole‐time Director) 6 Mr. M. V. Satish (Whole‐time Director)
7 Mr. J. D. Patil (Whole-time Director) 8 Mr. S.V. Desai (Whole-time Director) [3]

9 Mr. T. Madhava Das (Whole-time Director) [3]

448
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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
(i) Non-executive/Independent Directors

Sr. No Sr. No
1 Mr. A.M. Naik (Group Chairman) 2 Mr. M. M. Chitale
3 Mr. Subodh Bhargava [4]
4 Mr. M. Damodaran
5 Mr. Vikram Singh Mehta 6 Mr. Adil Zainulbhai
7 Ms. Sunita Sharma [5]
8 Mr. Thomas Mathew T [6]

9 Mr. Ajay Shankar [7]

10 Ms. Naina Lal Kidwai [8]

11 Mr. Sanjeev Aga 12 Mr. Narayanan Kumar

13 Mr. Hemant Bhargava 14 Ms. Preeta Reddy [9]

15 Mr. Pramit Jhaveri [10]

[1]
Ceased w.e.f. July 7, 2020 on account of superannuation [2]
Appointed as Whole-time Director w.e.f. August 19, 2020
(Non-executive Director till August 18, 2020)
[3]
Appointed w.e.f. July 11, 2020 [4]
Ceased w.e.f. March 29, 2022 on account of completion of
term
[5]
Ceased w.e.f. May 3, 2021 on account of withdrawal of [6]
Ceased w.e.f. April 2, 2020 on account of completion of term
nomination by Life Insurance Corporation of India
[7]
Ceased w.e.f. May 29, 2020 on account of completion of term [8]
Ceased w.e.f. February 28, 2021 on account of completion of
term
[9]
Appointed w.e.f. March 1, 2021 [10]
Appointed w.e.f. April 1, 2022

(c) Disclosure of related party transactions:

v crore
2021-22 2020-21
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
i. Purchase of goods & services (including commission paid)
Subsidiaries, including: 1796.68 1690.05
Larsen & Toubro Electromech LLC 603.71 211.42
L&T Geostructure Private Limited 436.27 246.17
L&T Modular Fabrication Yard LLC 294.30 680.46
Joint ventures, including: 1531.41 1303.43
L&T - MHI Power Boilers Private Limited 697.31 694.76
L&T- Chiyoda Limited 227.63 147.76
L&T - MHI Power Turbine Generators Private Limited 341.21 248.52
Associates, including: 28.34 17.44
Magtorq Private Limited 27.31 17.44
Total 3356.43 3010.92

449
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
v crore
2021-22 2020-21
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
ii.(a) Sale of goods/contract revenue & services
Subsidiaries, including: 1134.35 780.69
Larsen & Toubro Infotech Limited 484.76
L&T Realty Developers Limited 202.45
Nabha Power Limited 171.07
Larsen & Toubro (East Asia) SDN. BHD. 128.55
Larsen & Toubro Saudi Arabia LLC 208.61
Nabha Power Limited 82.46
L&T Metro Rail (Hyderabad) Limited 96.27
Joint ventures, including: 69.01 52.62
L&T - MHI Power Boilers Private Limited 47.48 40.53
L&T- Chiyoda Limited 6.17
L&T Special Steels and Heavy Forgings Private Limited 12.73 5.49
Total 1203.36 833.31
ii. (b) Reversal of sale of goods/contract revenue & services
Subsidiaries, including: – 15.73
L&T Parel Project Private Limited 14.54
Total – 15.73
iii. Purchase/lease of property, plant and equipment
Subsidiaries, including: 134.13 2.73
Larsen & Toubro Infotech Limited 12.29
Mindtree Limited 15.99
L&T Construction Equipment Limited 104.84
Larsen & Toubro (Oman) LLC 2.06
L&T Technology Services Limited 0.38
Joint venture: 0.05 –
L&T-Sargent & Lundy Limited 0.05
Total 134.18 2.73
iv. Sale of property, plant and equipment
Subsidiaries: 0.05 6.55
L&T Geostructure Private Limited 0.02 3.74
L&T Hydrocarbon Saudi Company 2.81
L&T Valves Limited 0.03
Key management personnel: – 0.61
Mr. Shailendra Roy 0.61
Total 0.05 7.16
v. Investments including subscription to equity and preference shares
(equity portion)
Subsidiaries, including: – 2272.05
L&T Finance Holdings Limited 1907.65
Hi-Tech Rock Products and Aggregates Limited 300.00
Joint venture: 2.02 –
L&T - MHI Power Turbine Generators Private Limited 2.02 –
Total 2.02 2272.05

450
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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
v crore
2021-22 2020-21
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
vi. Subscription debentures/bonds net of redemption
Subsidiary: – 2338.47
L&T Finance Limited 2338.47
Total – 2338.47
vii. Sale/redemption of stake in business undertaking
Subsidiary: 198.00 –
Mindtree Limited 198.00
Total 198.00 –
viii. Net inter corporate deposits and loans given/(repaid by)
Subsidiaries, including: 819.70 (266.10)
L&T Metro Rail (Hyderabad) Limited 1057.00 1019.20
Larsen Toubro Arabia LLC (350.96)
L&T Hydrocarbon Saudi Company (209.75) (184.32)
L&T Modular Fabrication Yard LLC (85.39)
L&T Geostructure Private Limited 29.50
Hi-Tech Rock Products and Aggregates Limited (267.59)
Nabha Power Limited 122.95 (353.18)
L&T Realty Developers Limited (158.75)
Joint ventures: 148.03 151.59
L&T Sapura Shipping Private Limited 148.03
L&T Special Steels and Heavy Forgings Private Limited 151.59
Total 967.73 (114.51)
ix. Net inter corporate borrowing taken from/(repaid to)
Subsidiaries, including: 79.57 (535.21)
Nabha Power Limited 83.97
L&T Seawoods Limited (517.33)
Joint venture: 100.75 32.00
L&T MBDA Missile Systems Limited 100.75 32.00
Total 180.32 (503.21)
x. Charges paid for miscellaneous services
Subsidiaries, including: 164.53 152.15
Larsen & Toubro Infotech Limited 112.19 111.58
L&T Aviation Services Private Limited 21.09 17.95
Mindtree Limited 21.38
L&T Technology Services Limited
Joint ventures, including: 17.74 29.90
L&T- Chiyoda Limited 12.06 25.17
L&T Sargent & Lundy Limited 4.45 3.61
Total 182.27 182.05

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Notes forming part of the Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
v crore
2021-22 2020-21
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
xi. Rent paid, including lease rentals under leasing/hire purchase
arrangements
Subsidiaries, including: 5.96 2.91
L&T Hydrocarbon Saudi Company 5.80 1.84
L&T Electrical & Automation FZE 0.36
Larsen Toubro Arabia LLC 0.38
Joint ventures: 0.23 0.01
L&T - MHI Power Turbine Generators Private Limited 0.06 0.01
L&T - MHI Power Boilers Private Limited 0.11
L&T Special Steels and Heavy Forgings Private Limited 0.06
Associate: 0.08 –
Magtorq Private Limited 0.08
Total 6.27 2.92
xii. Rent received, overheads recovered and miscellaneous income
Subsidiaries, including: 355.42 328.33
Larsen & Toubro Infotech Limited 105.81 92.08
L&T Technology Services Limited 52.15 53.69
L&T Geostructure Private Limited 67.85 68.01
L&T Finance Limited 46.77
Joint ventures, including: 107.65 101.34
L&T - MHI Power Boilers Private Limited 41.32 31.86
L&T - Sargent & Lundy Limited 10.87 11.57
L&T - Chiyoda Limited 23.97 25.39
Total 463.07 429.67
xiii.(a) Charges incurred for deputation of employees from related parties
Subsidiaries, including: 18.66 8.27
L&T Technology Services Limited 18.65
L&T Electrical and Automation FZE 3.58
L&T Modular Fabrication Yard LLC 0.89
Kana Controls General Trading and Contracting Company WLL 1.57
Total 18.66 8.27
xiii.(b) Charges recovered for deputation of employees to related parties
Subsidiaries, including: 70.15 64.70
L&T Parel Project Private Limited 7.77 7.12
L&T Asian Realty Project LLP 11.50 6.79
L&T Realty Developers Limited 10.69 11.47
L&T Geostructure Private Limited 17.34 13.16
L&T Seawoods Limited 11.05 7.32
Joint ventures, including: 5.34 7.64
L&T Sapura Shipping Private Limited 3.85 2.94
L&T Infrastructure Development Projects Limited 0.73 1.14
L&T Special Steels and Heavy Forgings Private Limited 0.76
L&T- Chiyoda Limited 2.83
Total 75.49 72.34

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NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
v crore
2021-22 2020-21
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
xiv. Dividend received
Subsidiaries, including: 1458.49 844.68
Larsen & Toubro Infotech Limited 649.00 396.34
L&T Technology Services Limited 269.11 164.01
Larsen & Toubro Electromech LLC 95.60
L&T Realty Developers Limited 199.87
Mindtree Limited 276.45 175.92
Joint ventures, including: 156.83 174.38
L&T - MHI Power Boilers Private Limited 119.39 119.39
L&T- Chiyoda Limited 40.50
Total 1615.32 1019.06
xv. Commission received, including those under agency arrangements
Subsidiary: 8.17 7.77
L&T Construction Equipment Limited 8.17 7.77
Total 8.17 7.77
xvi. Guarantee charges recovered from
Subsidiaries, including: 49.59 21.40
Nabha Power Limited 13.40 12.86
L&T Hydrocarbon Saudi Company 17.84
L&T Metro Rail (Hyderabad) Limited 7.91
Larsen & Toubro Saudi Arabia LLC 2.48
Larsen Toubro Arabia LLC 6.77 2.87
Joint venture: 0.64 0.47
L&T - MHI Power Turbine Generators Private Limited 0.64 0.47
Total 50.23 21.87
xvii. Interest paid to
Subsidiaries, including: 43.36 31.41
L&T Seawoods Limited 11.50 13.47
Nabha Power Limited 8.68 11.78
L&T Power Development Limited 5.58
L&T Realty Developers Limited 15.57 4.79
Joint ventures: 9.10 13.64
L&T MBDA Missile Systems Limited 6.81 2.81
L&T - MHI Power Turbine Generators Private Limited 2.29 10.83
Total 52.46 45.05
xviii. Interest received from
Subsidiaries, including: 468.10 294.35
L&T Metro Rail (Hyderabad) Limited 317.56 132.95
L&T Finance Limited 128.45 113.69
Joint ventures, including: 65.12 206.60
L&T Sapura Shipping Private Limited 9.76
L&T Special Steels and Heavy Forgings Private Limited 134.52
Kudgi Transmission Limited 45.52 45.93
L&T Infrastructure Development Projects Limited 9.84 21.44
Total 533.22 500.95

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Notes forming part of the Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
v crore
2021-22 2020-21
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
xix. Amount recognised/(reversed) in Profit or Loss as provision towards bad
and doubtful debts (including expected credit loss on account of delay)
Subsidiaries, including: 57.46 5.05
Larsen Toubro Arabia LLC 27.95
L&T Hydrocarbon Saudi Company 11.03
L&T Metro Rail (Hyderabad) Limited 11.24 6.12
L&T Seawoods Limited 0.67
Larsen & Toubro Heavy Engineering LLC (0.80)
Joint ventures, including: (0.31) 0.31
L&T Special Steels and Heavy Forgings Private Limited (0.09)
L&T - MHI Power Turbine Generators Private Limited 0.11
Raykal Aluminium Company Private Limited 0.85
L&T Sapura Offshore Private Limited 0.18
L&T - MHI Power Boilers Private Limited (1.46) 0.39
Total 57.15 5.36
xx. Amount recognised in Profit or Loss on account of impairment loss on
investment and inter corporate deposit
Subsidiaries: 0.90 1692.71
Larsen & Toubro Heavy Engineering LLC 0.90
L&T Power Development Limited 829.00
L&T Uttaranchal Hydropower Limited 586.00
Joint venture: – 1467.38
L&T Special Steels and Heavy Forgings Private Limited 1467.38
Total 0.90 3160.09
xxi. Amount recognised in Profit and Loss on account of provision towards
constructive obligation
Joint venture: – 14.84
L&T Special Steels and Heavy Forgings Private Limited 14.84
Total – 14.84
xxii. Guarantee given on behalf of
Subsidiaries, including: 30778.64 2192.99
Larsen Toubro Arabia LLC 8486.70
L&T Hydrocarbon Saudi Company 12227.39
L&T Metro Rail (Hyderabad) Limited 8616.00
Mindtree Limited 518.44
L&T Hydrocarbon Saudi Company 274.55
Nabha Power Limited 1400.00
Total 30778.64 2192.99
xxiii. Contribution to post-employment benefit plans
(a) Towards employer’s contribution to provident fund trusts, including: 71.88 110.85
Larsen & Toubro Officers & Supervisory Staff Provident Fund 62.47 100.44
Total 71.88 110.85

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NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
v crore
2021-22 2020-21
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
(b) Towards employer’s contribution to gratuity fund trusts, including: 0.92 114.32
L&T Hydrocarbon Engineering Limited Group Gratuity Scheme 0.92 86.47
Larsen & Toubro Gratuity Fund 16.54
Total 0.92 114.32
(c) Towards employer’s contribution to superannuation trust: 7.51 6.81
Larsen & Toubro Limited Senior Officers’ Superannuation Scheme 7.51 6.81
Total 7.51 6.81
“Major parties” denote entities accounting for 10% or more of the aggregate for that category of transaction during respective year.

xxiv. Compensation paid to key management personnel:

v crore
2021-22 2020-21
Short-term Post- Short-term Post-
Key Management Personnel Other Long Share based
employee employment Total employee employment Total
benefits term benefit payment
benefits benefits benefits
Executive Directors:
(a) Mr. S.N.Subrahmanyan 24.46 6.53 30.99 11.26 2.97 – – 14.23
(b) Mr. R. Shankar Raman 16.12 4.30 20.42 7.50 1.98 – – 9.48
(c) Mr. Shailendra Roy – – – 4.83 7.64
[1]
10.20
[2]
– 22.67
(d) Mr. Subramanian Sarma (Executive Director 13.71 3.65 17.36 4.48 1.02 – 8.39 13.89
w.e.f. August 19, 2020)
(e) Mr. D. K. Sen 9.27 2.46 11.73 3.93 1.01 – – 4.94
(f) Mr. M. V. Satish 8.75 2.30 11.05 4.24 1.08 – – 5.32
(g) Mr. J.D. Patil 8.64 2.29 10.93 4.23 1.09 – – 5.32
(h) Mr. S.V. Desai 9.91 2.60 12.51 2.83 0.64 – – 3.47
(i) Mr. T. Madhava Das 9.72 2.55 12.27 2.94 0.72 – – 3.66
Non-executive/Independent Directors:
(a) Mr. A.M. Naik 3.32 3.00 [3]
6.32 3.21 3.00
[3]
– – 6.21
(b) Mr. Subramanian Sarma (Non-executive – – – 3.10 1.26 – 4.36
Director till August 18, 2020)
(c) Other Non-executive/Independent Directors 4.81 – 4.81 5.25 – – – 5.25
Total 108.71 29.68 138.39 57.80 22.41 10.20 8.39 98.80
[1] Post retirement benefits include gratuity R 6.60 crore
[2] Represents encashment of past service accumulated leave
[3] Represents pension

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NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
(d) Amount due to/from related parties:
v crore
As at 31-3-2022 As at 31-3-2021
Sr. Amounts Amounts
Category of balance/relationship/parties
No. Amount for major Amount for major
parties parties
i. Accounts receivable
Subsidiaries, including: 1323.21 800.87
L&T Metro Rail (Hyderabad) Limited 736.30 610.48
L&T Geostructure LLP 220.33
Joint ventures , including: 91.83 133.80
L&T - MHI Power Boilers Private Limited 57.43 75.49
L&T - MHI Power Turbine Generators Private Limited 13.36
L&T Deccan Tollways Limited 50.00
Total 1415.04 934.67
ii. Accounts payables, including other payables
Subsidiaries, including: 751.20 1004.71
L&T Modular Fabrication Yard LLC 117.90 306.04
Larsen Toubro Arabia LLC 84.76
L&T Geostructure Private Limited 150.22 222.17
Larsen & Toubro Saudi Arabia LLC 86.06
Larsen and Toubro (Oman) LLC
Joint ventures, including: 1775.55 1772.77
L&T - MHI Power Boilers Private Limited 756.64 863.49
L&T - MHI Power Turbine Generators Private Limited 796.53 576.54
L&T Infrastructure Development Projects Limited 177.35
Associates, including: 7.67 13.97
Magtorq Private Limited 6.82 5.18
L&T Camp Facilities LLC 8.79
Total 2534.42 2791.45
iii. Investment in debt securities [including preference shares (debt
portion)]
Subsidiaries: 2228.72 2659.72
L&T Metro Rail (Hyderabad) Limited 1145.67 491.14
L&T Finance Limited 1083.05 2168.58
Joint ventures: 911.98 1097.54
L&T Special Steels and Heavy Forgings Private Limited 213.17 213.17
Kudgi Transmission Limited (Secured) 698.81 611.72
L&T Infrastructure Development Private Limited 272.65
Total 3140.70 3757.26
iv Impairment loss on investment in debt securities
Joint venture: 213.17 213.17
L&T Special Steels and Heavy Forgings Private Limited 213.17 213.17
Total 213.17 213.17

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NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
v crore
As at 31-3-2022 As at 31-3-2021
Sr. Amounts Amounts
Category of balance/relationship/parties
No. Amount for major Amount for major
parties parties
v. Loans & advances recoverable
Subsidiaries, including: 4980.20 3928.87
L&T Metro Rail (Hyderabad) Limited 3735.72 2481.56
Joint ventures, including: 2312.75 2162.92
L&T Special Steels and Heavy Forgings Private Limited 1781.18 1746.17
L&T Sapura Shipping Private Limited 328.43
Associates: 4.23 5.00
Magtorq Private Limited 4.23 5.00
Total 7297.18 6096.79
vi. Impairment loss on loans & advances recoverable
Subsidiaries, including: 294.96 277.70
L&T Hydrocarbon Saudi Company 173.93 167.70
Larsen & Toubro Heavy Engineering LLC 75.20 71.62
Larsen Toubro Arabia LLC 39.81 38.38
Joint ventures, including: 1736.43 1735.46
L&T Special Steels and Heavy Forgings Private Limited 1730.38 1730.38
Total 2031.39 1735.46
vii. Provision towards constructive obligation
Joint venture: 14.84 14.84
L&T Special Steels and Heavy Forgings Private Limited 14.84 14.84
Total 14.84 14.84
viii. Unsecured loans (including lease finance)
Subsidiaries: 83.98 4.40
L&T Capital Company Limited 4.40
Nabha Power Limited 83.98
Joint venture: 193.74 90.91
L&T MBDA Missile Systems Limited 193.74 90.91
Total 277.72 95.31
ix. Advances received in the capacity of supplier of goods/services classified
as “Advances from customers” in the Balance Sheet
Subsidiaries, including: 122.05 113.56
Nabha Power Limited 29.84 47.51
L&T Realty Developers Limited 24.84 56.64
Larsen & Toubro Infotech Limited 33.88
L&T Technology Services Limited 32.15
Joint venture: 17.34 20.46
L&T - MHI Power Boilers Private Limited 17.34 20.46
Total 139.39 134.02

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Notes forming part of the Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
v crore
As at 31-3-2022 As at 31-3-2021
Sr. Amounts Amounts
Category of balance/relationship/parties
No. Amount for major Amount for major
parties parties
x. Due to directors [1]:
Key management personnel, including: 89.75 36.96
Mr. S. N. Subrahmanyan 21.40 8.40
Mr. R. Shankar Raman 13.98 5.49
Mr. Shailendra N Roy 0.92
Mr. D. K. Sen 7.62 2.40
Mr. M. V. Satish 7.05 2.66
Mr. J.D. Patil 7.23 2.91
Mr. Subramanian Sarma 11.70 5.31
Mr. S.V.Desai 8.56 2.29
Mr. T. Madhava Das 8.40 2.43
Total 89.75 36.96
xi. Post employment benefit plan
(a) Due to provident fund trusts, including: 40.70 31.47
Larsen & Toubro Officers & Supervisory Staff Provident Fund 37.71 28.65
Total 40.70 31.47
(b) Due to gratuity trusts: 17.71 0.94
Larsen & Toubro Officers & Supervisors Gratuity Fund 15.47
Larsen & Toubro Gratuity Fund 2.24
L&T Hydrocarbon Engineering Limited Group Gratuity Scheme 0.94
Total 17.71 0.94
(c) Due to superannuation trust: 12.89 4.48
Larsen & Toubro Limited Senior Officers’ Superannuation Scheme 12.89 4.48
Total 12.89 4.48
xii.(a) Capital commitment given
Subsidiaries, including: 5.45 140.36
L&T Construction Equipment Limited 0.88 136.98
Larsen & Toubro Infotech Limited 0.83
Mindtree Limited 3.51
Joint ventures: 0.11 –
L&T - Sargent & Lundy Limited 0.08
L&T - MHI Power Turbine Generators Private Limited 0.01
L&T Special Steels and Heavy Forgings Private Limited 0.02
Total 5.56 140.36
xii.(b) Revenue commitment given
Subsidiaries, including: 2127.79 1815.42
L&T Geostructure LLP 1192.92 121.19
L&T Modular Fabrication Yard LLC 359.19
Larsen & Toubro (Oman) LLC 149.53 187.64
Larsen & Toubro Electromech LLC 25.46 742.44
Joint ventures , including: 1421.52 2551.02
L&T - MHI Power Boilers Private Limited 820.89 1643.73
L&T - MHI Power Turbine Generators Private Limited 305.67 387.72
L&T - Chiyoda Limited 327.86
Associates, including: 52.26 35.45
Magtorq Private Limited 51.54 35.08
Total 3601.57 4401.89
[1]
Includes commission due to non-executive directors R 3.81 cr crore (previous year: R 4.15 crore).

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NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
v crore
As at 31-3-2022 As at 31-3-2021
Sr. Amounts Amounts
Category of balance/relationship/parties
No. Amount for major Amount for major
parties parties
xiii. Commitment to Fund [2]
Subsidiary: 477.57 14.00
Nabha Power Limited 477.57
L&T Uttaranchal Hydropower Limited 14.00
Total 477.57 14.00
xiv. Revenue commitment received
Subsidiaries, including: 1486.57 2143.92
L&T Metro Rail (Hyderabad) Limited 398.04 457.82
Larsen & Toubro Infotech Limited 213.60 677.92
Nabha Power Limited 317.52 488.57
L&T Realty Developers Limited 352.88 221.70
Larsen & Toubro (East Asia) SDN. BHD. 180.20
Joint ventures , including: 125.16 187.73
L&T - MHI Power Boilers Private Limited 107.24 158.78
L&T MBDA Missile Systems Limited 17.53 20.00
Total 1611.73 2331.65
xv. Guarantee given on behalf of
Subsidiaries, including: 42427.70 19070.57
L&T Hydrocarbon Saudi Company 19573.00 7128.36
Larsen Toubro Arabia LLC 8652.89 4115.57
Nabha Power Limited 4216.00 4716.00
L&T Metro Rail (Hyderabad) Limited 8616.00
Joint ventures , including: 300.23 363.85
L&T - MHI Power Turbine Generators Private Limited 255.12 312.67
Total 42727.93 19434.42
xvi. Provision for doubtful debts related to the amount of outstanding
balances
Subsidiaries, including: 70.71 19.29
Nabha Power Limited 2.04
L&T Metro Rail (Hyderabad) Limited 25.75 14.51
L&T Seawoods Limited 2.00
Larsen Toubro Arabia LLC 27.95
L&T Hydrocarbon Saudi Company 11.03
Joint ventures, including: 22.02 23.30
L&T - MHI Power Boilers Private Limited 21.82 23.28
Total 92.73 42.59
“Major parties” denote entities account for 10% or more of the aggregate for that category of transaction during respective year.

[2]
T he Company has provided a revolving line of credit facility of R 1800 crore to L&T Finance Limited as a stand-by liquidity support arrangement
(the “Facility”), renewable on a yearly basis. This Facility is in addition to the working capital lines that L&T Finance Limited has with its
consortium of lending banks. The Facility shall be exercised by L&T Finance Limited only after exhausting all external bank funding lines. The
utilisation against the Facility is NIL as at 31st March 2022.

Note:
1. All the related party contracts / arrangements have been entered on arms’ length basis.
2. The amount of outstanding balances as shown above are unsecured and will be settled/recovered in cash.
3. The interest rate charged on loans given to related parties are as per market rates.

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Notes forming part of the Financial Statements (contd.)

Note [48]
Disclosure pursuant to Ind AS 27 “Separate Financial Statements”

Investment in following subsidiaries, associates and joint ventures is accounted at cost.

Subsidiaries:

As at 31-3-2022 As at 31-3-2021
Principal Proportion Proportion Proportion Proportion Proportion Proportion
Sr. Name of the subsidiary place of of direct of effective of effective of direct of effective of effective
No. business ownership ownership voting power ownership ownership voting power
(%) Interest (%) held (%) (%) Interest (%) held (%)
Indian subsidiaries
1 Bhilai Power Supply Company Limited India 99.90 99.90 99.90 99.90 99.90 99.90
2 L&T Innovation Campus Limited [1]
India 100.00 100.00 100.00 100.00 100.00 100.00
3 Hi-Tech Rock Products & Aggregates Limited India 100.00 100.00 100.00 100.00 100.00 100.00
4 L&T Seawoods Limited India 100.00 100.00 100.00 100.00 100.00 100.00
5 Kesun Iron & Steel Company Private Limited [2] India 95.00 95.00 95.00 95.00 95.00 95.00
6 L&T Geostructure Private Limited [3] India 99.00 100.00 100.00 99.00 100.00 100.00
7 L&T Valves Limited India 100.00 100.00 100.00 100.00 100.00 100.00
8 L&T Power Limited India 99.99 99.99 99.99 99.99 99.99 99.99
9 L&T Aviation Services Private Limited India 100.00 100.00 100.00 100.00 100.00 100.00
10 Larsen & Toubro Infotech Limited India 74.05 74.05 74.05 74.27 74.27 74.27
11 L&T Finance Holdings Limited India 66.26 66.26 66.26 63.62 63.62 63.62
12 L&T Capital Company Limited India 100.00 100.00 100.00 100.00 100.00 100.00
13 L&T Power Development Limited India 100.00 100.00 100.00 100.00 100.00 100.00
14 L&T Metro Rail (Hyderabad) Limited [4] India 100.00 100.00 100.00 100.00 100.00 100.00
15 L&T Technology Services Limited India 73.90 73.90 73.90 74.24 74.24 74.24
16 L&T Construction Equipment Limited [5]
India 100.00 100.00 100.00 100.00 100.00 100.00
17 L&T Infrastructure Engineering Limited India 100.00 100.00 100.00 100.00 100.00 100.00
18 L&T Realty Developers Limited [6] India 100.00 100.00 100.00 100.00 100.00 100.00
19 Mindtree Limited India 60.99 60.99 60.99 61.03 61.03 61.03
[1]
Formerly known as L&T Electricals and Automation Limited.
[2]
In process of being struck off from the register of companies.
[3]
Became subsidiary on November 25, 2020.
[4]
One equity share (the Golden Share) is held by the Government of Telangana in pursuance of the Shareholders’ Agreement.
[5]
Formerly known as L&T Construction Machinery Limited.
[6]
Formerly known as L&T Construction Equipment Limited.

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NOTE [48]
Disclosure pursuant to Ind AS 27 “Separate Financial Statements” (contd.)
Foreign Subsidiaries :

As at 31-3-2022 As at 31-3-2021
Principal Proportion Proportion Proportion Proportion Proportion Proportion
Sr. Name of the subsidiary place of of direct of effective of effective of direct of effective of effective
No. business ownership ownership voting power ownership ownership voting power
(%) Interest (%) held (%) (%) Interest (%) held (%)
1 Larsen & Toubro LLC USA 95.24 98.76 98.76 95.24 98.77 98.77
2 Larsen & Toubro (Saudi Arabia) LLC Kindgom of
Saudi Arabia 4.35 100.00 100.00 4.35 100.00 100.00
3 L&T Global Holdings Limited UAE 100.00 100.00 100.00 100.00 100.00 100.00
4 Larsen & Toubro Arabia LLC Kindgom of
Saudi Arabia 75.00 75.00 100.00 75.00 75.00 100.00
5 L&T Hydrocarbon Saudi Company LLC Kindgom of
Saudi Arabia 100.00 100.00 100.00 100.00 100.00 100.00
6 L&T Modular Fabrication Yard LLC Sultanate of
Oman 70.00 70.00 100.00 70.00 70.00 100.00
7 L&T Electromech LLC Sultanate of
Oman 70.00 70.00 100.00 70.00 70.00 100.00
8 L&T Hydrocarbon International FZE [1] UAE – – – 100.00 100.00 100.00
9 L&T Kuwait Construction General Contracting
Company WLL Kuwait 49.00 49.00 100.00 49.00 49.00 100.00
10 L&T Heavy Engineering LLC Sultanate of
Oman 70.00 70.00 100.00 70.00 70.00 100.00
[1]
Liquidated on August 17, 2021

Associate Companies :

As at 31-3-2022 As at 31-3-2021
Principal Proportion Proportion Proportion Proportion Proportion Proportion
Sr. Name of associate place of of direct of effective of effective of direct of effective of effective
No. business ownership ownership voting power ownership ownership voting power
(%) Interest (%) held (%) (%) Interest (%) held (%)
1 Gujarat Leather Industries Limited [1] India 50.00 50.00 50.00 50.00 50.00 50.00
2 Magtorq Private Limited India 42.85 42.85 42.85 42.85 42.85 42.85
[1]
Under liquidation

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Notes forming part of the Financial Statements (contd.)

NOTE [48]
Disclosure pursuant to Ind AS 27 “Separate Financial Statements” (contd.)
Joint Ventures :

As at 31-3-2022 As at 31-3-2021
Principal Proportion Proportion Proportion Proportion
Sr. Name of the joint venture place of of direct of effective of direct of effective
No. business ownership ownership ownership ownership
(%) Interest (%) (%) Interest (%)
1 L&T Chennai–Tada Tollway Limited India [1]
51.00 [1]
51.00
2 L&T Rajkot-Vadinar Tollway Limited India [1]
51.00 [1]
51.00
3 L&T Samakhiali Gandhidham Tollway Limited India 0.02 51.01 0.02 51.01
4 L&T Infrastructure Development Projects Limited India 51.00 51.00 51.00 51.00
5 L&T Transportation Infrastructure Limited India 26.24 63.86 26.24 63.86
6 Ahmedabad - Maliya Tollway Limited India [1]
51.00 [1]
51.00
7 L&T Halol-Shamlaji Tollway Limited [2] India [1]
24.98 [1]
24.98
8 L&T Howden Private Limited India 50.10 50.10 50.10 50.10
9 L&T-MHI Power Boilers Private Limited India 51.00 51.00 51.00 51.00
10 L&T-MHI Power Turbine Generators Private Limited India 51.00 51.00 51.00 51.00
11 Raykal Aluminium Company Private Limited India 75.50 75.50 75.50 75.50
12 L&T Special Steels and Heavy Forgings Private Limited India 74.00 74.00 74.00 74.00
13 PNG Tollway Limited India [1]
37.74 [1]
37.74
14 L&T MBDA Missile Systems Limited India 51.00 51.00 51.00 51.00
15 L&T Hydrocarbon Caspian LLC Baku, 50.00 50.00 50.00 50.00
Azerbaijan
16 L&T Sapura Shipping Private Limited India 60.00 60.00 60.00 60.00
17 L&T Sapura Offshore Private Limited India 60.00 60.00 60.00 60.00
18 L&T Chiyoda Limited India 50.00 50.00 50.00 50.00
19 L&T-Sargent & Lundy Limited India 50.00 50.00 50.00 50.00
[1]
Proportion of direct ownership is less than 0.01%.
[2]
The company ceased to be a joint venture w.e.f. October 21, 2021

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Note [49]
Basic and diluted Earnings per Share [EPS] computed in accordance with Ind AS 33 “Earnings per Share”:
Particulars 2021-22 2020-21
Basic earnings per share
Profit after tax from continuing operations as per accounts (R crore) A 7879.45 3147.31
Profit after tax from discontinued operations as per accounts (R crore) B – 8650.48
Profit after tax from continuing and discontinued operations as per accounts (R crore) C=A+B 7879.45 11797.79
Weighted average number of equity shares outstanding D 1,40,47,47,700 1,40,41,46,937
Basic EPS from continuing operations(R) A/D 56.09 22.41
Basic EPS from discontinued operations(R) B/D – 61.61
Basic EPS from continuing discontinued operations(R) C/D 56.09 84.02
Diluted earnings per share
Profit after tax from continuing operations as per accounts (R crore) A 7879.45 3147.31
Profit after tax from discontinued operations as per accounts (R crore) B – 8650.48
Profit after tax from continuing and discontinued operations as per accounts (R crore) C=A+B 7879.45 11797.79
Weighted average number of equity shares outstanding D 1,40,47,47,700 1,40,41,46,937
Add: Weighted average number of potential equity shares on account of employee E
stock options 15,40,580 14,20,264
Weighted average number of equity shares outstanding for diluted EPS F=D+E 1,40,62,88,280 1,40,55,67,202
Diluted EPS from continuing operations(R) A/F 56.03 22.39
Diluted EPS from discontinued operations(R) B/F – 61.54
Diluted EPS from continuing discontinued operations(R) C/F 56.03 83.93
Face value per share (R) 2 2
Note [50]
Disclosures pursuant to Ind AS 37 “Provisions, Contingent Liabilities and Contingent Assets”
a) Movement in provisions:
v crore
Class of provisions
Contractual
Expected tax
Sr. Litigation rectification
Particulars Product liability in
No. related cost - Others Total
warranties respect of
obligations construction
indirect taxes
contracts
1 Balance as at April 1, 2021 5.97 338.81 73.45 446.57 54.90 919.70
2 Additional provision during the year 15.21 36.43 0.67 370.20 422.51
3 Provision used during the year (2.64) (11.74) (49.43) (63.81)
4 Provision reversed during the year (1.37) (4.75) (0.08) (163.08) (169.28)
5 Balance as at March 31, 2022 (5=1+2+3+4) 17.17 358.75 74.04 604.26 54.90 1109.12
b) Nature of provisions:
i. Product warranties: The Company gives warranties on certain products and services, undertaking to repair or replace the items
that fail to perform satisfactorily during the warranty period. Provision made as at March 31, 2022 represents the amount of the
expected cost of meeting such obligations of rectification/replacement. The timing of the outflows is expected to be within a period
of 1 to 3 years from the date of Balance Sheet.
ii. Expected tax liability in respect of indirect taxes represents mainly the differential sales tax liability on account of non-collection of
declaration forms.
iii. Provision for litigation related obligations represents liabilities that are expected to materialise in respect of matters in appeal.
iv. Contractual rectification cost represents the estimated cost the Company is likely to incur during defect liability period as per the
contract obligations in respect of completed construction contracts accounted under Ind AS 115 “Revenue from Contracts with
customers”.
v. Other provisions mainly includes onerous contracts.
c) Disclosure in respect of contingent liabilities is given as part of Note 29 to the Balance Sheet.

463
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [51]
The expenditure on research and development activities is as follows:
v crore
Sr.
Particulars 2021-22 2020-21
No.
(i) Recognised as expense in the Statement of Profit and Loss 83.73 122.33
(ii) Capital Expenditure on:
(a) tangible assets 3.74 1.24
(b) intangible assets being expenditure on new product development – 9.39
(c) other intangible assets 0.52 0.58
Of the above, expenditure on research and development activities of discontinued operations is as follows:
v crore
Sr.
Particulars 2021-22 2020-21
No.
(i) Recognised as expense in the Statement of Profit and Loss – 30.87
(ii) Capital Expenditure on:
(a) tangible assets – 0.49
(b) intangible assets being expenditure on new product development – 9.39
NOTE [52]
Disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: Market risk management

(a) Foreign exchange rate and interest rate risk:

The Company regularly reviews its foreign currency and interest rate related exposures – both hedged and open exposures. The
Company primarily follows cash flow hedge accounting for Highly Probable Forecasted Exposures (HPFE), hence, the movement in mark
to market (MTM) of the hedge contracts undertaken for such exposures is likely to be offset by contra movements in the underlying
exposures values. However, till the point of time that the HPFE becomes an on-balance sheet exposure, the changes in MTM of the
hedge contracts will impact the Balance Sheet of the Company. Further, given the effective horizons of the Company’s risk management
activities which coincide with the durations of the projects under execution, which could extend across 3-4 years and given the business
uncertainties associated with the timing and estimation of the project exposures, the recognition of the gains and losses related to these
instruments may not always coincide with the timing of gains and losses related to the underlying economic exposures and, therefore,
may affect the Company’s financial condition and operating results. The Company monitors the potential risk arising out of the market
factors like exchange rates, interest rates, price of traded investment products etc. on a regular basis. For on-balance Sheet exposures,
the Company monitors the risks on net unhedged exposures.

(i) Foreign exchange rate risk:

The Company has both receivable and payable exposures in foreign currency. Accordingly, changes in exchange rates may affect
the Company’s revenues, cost and profitability. There is a risk that the Company may also have to adjust the pricing due to
competitive pressures when there has been significant volatility in foreign currency exchange rates.

The Company may enter into foreign currency forward and option contracts with financial institutions to protect against foreign
exchange risks associated with certain existing assets and liabilities, certain firmly committed transactions, forecasted future cash
flows and net investments in foreign subsidiaries. In addition, the Company has entered, and may enter in future, into non-
designated foreign currency contracts to partially offset the foreign currency exchange gains and losses on its foreign-denominated
debt issuances. The Company’s practice is to hedge a portion of its material net foreign exchange exposures with tenors in line with
the project/business life cycle. The Company may also choose not to hedge certain foreign exchange exposures.

464
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [52]
Disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: Market risk management (contd.)
The net exposure to foreign currency risk (based on notional amount) in respect of recognised financial assets, recognised financial
liabilities and derivatives for major categories is as follows:
v crore
As at 31-3-2022
US Dollars
Particulars including Kuwaiti Algerian
EURO Japanese Yen
pegged Dinars Dinar
currencies
Net exposure to foreign currency risk in respect of recognised
financial assets/(recognised financial liabilities) (2949.42) (166.91) (221.42) 103.40 (358.10)
Derivatives including embedded derivatives for hedging
receivable/(payable) exposure with respect to non-financial
assets/(liabilities) 86.57 (56.08) – – –
Derivatives including embedded derivatives for hedging
receivable/ (payable) exposure with respect to firm
commitments and highly probable transactions 7710.74 (2308.25) 473.12 696.42 –
Receivable/(payable) exposure with respect to forward
contracts and embedded derivatives not designated as cash
flow hedge 3294.27 32.10 (23.99) (38.45) –

v crore
As at 31-3-2021
US Dollars
Particulars including Kuwaiti Algerian
EURO Japanese Yen
pegged Dinars Dinar
currencies
Net exposure to foreign currency risk in respect of recognised
financial assets/(recognised financial liabilities) (1216.76) 55.90 (554.10) (37.84) (97.62)
Derivatives including embedded derivatives for hedging
receivable/(payable) exposure with respect to non-financial
assets/(liabilities) 291.65 65.82 – – –
Derivatives including embedded derivatives for hedging
receivable/ (payable) exposure with respect to firm
commitments and highly probable transactions 6324.70 (4931.25) 1031.00 404.79 –
Receivable/(payable) exposure with respect to forward
contracts and embedded derivatives not designated as cash
flow hedge 2337.79 164.57 (14.43) (21.02) –
To provide a meaningful assessment of the foreign currency risk associated with the Company’s foreign currency derivative positions
against off-balance sheet exposures and unhedged portion of on-balance sheet financial assets and liabilities, the Company uses
a multi-currency correlated value-at-risk (“VAR”) model. The VAR model uses a Monte Carlo simulation to generate thousands of
random market price paths for foreign currencies against Indian rupee taking into account the correlations between them. The
VAR is the expected loss in value of the exposures due to overnight movement in spot exchange rates, at 95% confidence interval.
The VAR model is not intended to represent actual losses but is used as a risk estimation tool. The model assumes normal market
conditions and is a historical best fit model. Because the Company uses foreign currency instruments for hedging purposes, the
loss in fair value incurred on those instruments are generally offset by increases in the fair value of the underlying exposures for
on-balance sheet exposures. The overnight VAR for the Company at 95% confidence level is R 69.70 crore as at March 31, 2022
and R 61.09 crore as at March 31, 2021.

Actual future gains and losses associated with the Company’s investment portfolio and derivative positions may differ materially
from the sensitivity analysis performed as at March 31, 2022 due to the inherent limitations associated with predicting the timing
and amount of changes in foreign currency exchanges rates and the Company’s actual exposures and position.

(ii) Interest rate risk:

The Company’s exposure to changes in interest rates relates primarily to the Company’s outstanding floating rate debt. While
most of the Company’s outstanding debt in local currency is on fixed rate basis and hence not subject to interest rate risk, a major
portion of foreign currency debt is linked to international interest rate benchmarks like LIBOR. The Company also hedges a portion
of these risks by way of derivatives instruments like Interest rate swaps and currency swaps.

465
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

NOTE [52]
Disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: Market risk management (contd.)
The Company has insignificant portion of the loan book which has a flowing rate linked to one month USD LIBOR.

With the transition of LIBOR into another benchmark (SOFR), there will be a spread adjustment that will have to be applied to these
loans. The loans are expected to be either refinanced and linked to a new benchmark or simply transitioned to the new benchmark
before LIBOR ceases to be published.

The Company’s Treasury team constantly tracks the developments related to this proposed transition and has also had interactions
with the counterparty lenders to prepare for the transition.

In the cases mentioned above, the lenders and the Company are likely to agree on a neutral spread adjustment which does not
impact the counterparties financially.

The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows:
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Floating rate borrowings 3524.53 5287.49
A hypothetical 50 basis point shift in respective currency LIBORs and other benchmarks, holding all other variables constant, on the
unhedged loans would result in a corresponding increase/decrease in interest cost for the Company on a yearly basis as follows:
v crore
Impact on Profit and Loss after tax Impact on Equity
Particulars
2021-22 2020-21 As at 31-3-2022 As at 31-3-2021
Indian Rupee
Interest rates -increase by 0.5% in INR interest rate (0.48) (1.01) (0.48) (1.01)
Interest rates -decrease by 0.5% in INR interest rate 0.48 1.01 0.48 1.01
US Dollar
Interest rates -increase by 0.5% in USD interest rate (12.70) (18.78) (12.70) (18.78)
Interest rates -decrease by 0.5% in USD interest rate 12.70 18.78 12.70 18.78

(b) Liquidity Risk Management:

The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through
adequate committed credit lines. Given the need to fund diverse businesses, the Company maintains flexibility by need based drawing
from committed credit lines. Management regularly monitors the position of cash and cash equivalents. The maturity profiles of financial
assets and financial liabilities including debt financing plans and liquidity ratios are considered while reviewing the liquidity position.

The Company’s investment policy and strategy are focused on preservation of capital and supporting the Company’s liquidity
requirements. The Company uses a combination of internal and external management to execute its investment strategy and achieve its
investment objectives. The Company typically invests in money market funds, large debt funds, Government of India securities, equity
funds and other highly-rated securities under a exposure limit framework. The investment policy focuses on minimising the potential risk
of principal loss. To provide a meaningful assessment of the price risk associated with the Company’s investment portfolio, the Company
performed a sensitivity analysis to determine the impact of change in prices of the securities on the value of the investment portfolio
assuming a 0.5% movement in the fair market value of debt funds and debt securities and a 5% movement in the NAV of the equity
funds as below:
v crore
Increase/(decrease) in investment value
Particulars
As at 31-3-2022 As at 31-3-2021
Debt funds and debt securities – increase by 0.50% in fair market value 59.32 76.39
Debt funds and debt securities – decrease by 0.50% in fair market value (59.32) (76.39)
Equity funds– increase by 5% in NAV 4.52 2.19
Equity funds– decrease by 5% in NAV (4.52) (2.19)

466
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [52]
Disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: Market risk management (contd.)
(c) Credit Risk Management:
The Company’s customer profile include public sector enterprises, state owned companies and large private corporates. Accordingly,
the Company’s customer credit risk is low. The Company’s average project execution cycle is around 24 to 36 months. General payment
terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 90 days and certain retention
money to be released at the end of the project. In some cases, retentions are substituted with bank/corporate guarantees. The Company
has a detailed review mechanism of overdue customer receivables at various levels within the organisation to ensure proper attention
and focus for realisation.

(i) The Company is making provisions on trade receivables based on Expected Credit Loss (ECL) model. The reconciliation of ECL is as
follows:
v crore
Particulars 2021-22 2020-21
Balance as at April 1 3006.54 2871.49
Changes in loss allowance for ECL:
Provision/(reversal) of allowance for ECL 411.24 297.07
Additional provision (net) towards credit impaired receivables 185.62 205.58
Write off as bad debts (121.66) (367.60)
Balance as at March 31 [refer Note 11] 3481.74 3006.54
(ii) Trade receivable written off during the year but still enforceable for recovery amounts to Nil (previous year: Nil)

(d) Commodity price risk management:

The Company bids for and executes EPC projects on turnkey basis. EPC projects entail procurement of various equipment and materials
which may have direct or indirect linkages to commodity prices like steel (both long and flat steel), copper, aluminum, zinc, lead, nickel,
cement etc. Accordingly, the Company is exposed to the price risk on these commodities. To mitigate the risk of commodity prices, the
company relies on contractual provisions like pass through of prices, price variation provisions etc., and further uses hedging instruments
where available (refer Note 53 (h)(ii)). There is certain residual risk carried by the company that cannot be hedged against.

The table given in the Risk Management section of Management Discussion and Analysis lists out the commodity exposure for the year
(only for projects that been awarded and are under execution).

467
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

NOTE [53]
Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”:

(a) Category-wise classification for applicable financial assets:

v crore
Sr. As at As at
Particulars Note
No. 31-3-2022 31-3-2021
I. Measured at fair value through Profit or Loss (FVTPL):
(i) Investment in equity instruments 5 74.40 70.22
(ii) Investment in mutual funds 10 5961.14 11787.56
(iii) Investment in bonds 10 1277.67 982.97
(iv) Derivative instruments not designated as cash flow hedges 7,15 67.91 99.47
(v) Embedded derivatives not designated as cash flow hedges 7,15 24.48 33.68
Sub-total (I) 7405.60 12973.90
II. Measured at amortised cost:
(i) Loans 6,14 4334.18 3111.39
(ii) Investment in CBLO and Commercial Paper 10 2418.70 299.98
(iii) Trade receivables 11 36347.35 33331.60
(iv) Advances recoverable in cash 15 611.58 744.87
(v) Cash and cash equivalents and bank balances 7,12,13 6593.16 4462.28
(vi) Other receivables 1416.57 1256.55
Sub-total (II) 51721.54 43206.67
III. Measured at fair value through Other Comprehensive Income (FVTOCI):
(i) Investment in government securities, bonds and debentures 10 8820.71 9162.44
(ii) Derivative financial instruments designated as cash flow hedges 7,15 464.65 605.33
(iii) Embedded Derivatives designated as cash flow hedges 7,15 26.40 19.13
Sub-total (III) 9311.76 9786.90
Total (I+II+III) 68438.90 65967.47
(b) Category-wise classification for applicable financial liabilities:
v crore
Sr. As at As at
Particulars Note
No. 31-3-2022 31-3-2021
I. Measured at fair value through Profit or Loss (FVTPL):
(i) Derivative instruments not designated as cash flow hedges 20,26 36.03 15.81
(ii) Embedded derivatives not designated as cash flow hedges 20,26 26.86 11.73
Sub-total (I) 62.90 27.54
II. Measured at amortised cost:
(i) Borrowings 19,23,24 20298.29 24474.19
(ii) Trade payables
Due to micro enterprises and small enterprises 473.67 448.30
Due to others 25 44911.67 40321.48
(iii) Others 3065.36 2298.50
Sub-total (II) 68748.99 67542.47
III. Derivative instruments (including embedded derivatives) through other
comprehensive income:
(i) Derivative instruments designated as cash flow hedges 20,26 326.24 336.54
(ii) Embedded derivatives designated as cash flow hedges 20,26 70.60 57.49
Sub-total (III) 396.84 394.04
IV. Financial guarantee contracts 20,26 116.20 15.97
Total (I+II+III+IV) 69324.93 67980.02

468
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [53]
Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: (contd.)
(c) Items of income, expense, gains or losses related to financial instruments:
v crore
Sr.
Particulars 2021-22 2020-21
No.
I Net gains/(losses) on financial assets, financial liabilities measured at fair value through Profit or
Loss and amortised cost
A (i) Financial assets or financial liabilities mandatorily measured at fair value through Profit or Loss:
1. Gains/(losses) on fair valuation or sale of Investments 434.94 960.68
2. Gains/(losses) on fair valuation/settlement of derivative:
a. On forward contracts not designated as cash flow hedges 190.76 (134.42)
b. On embedded derivative contracts not designated as cash flow hedges (44.32) (147.16)
c. On futures not designated as cash flow hedges 70.88 (52.11)
Sub-total (A) 652.26 626.99
B Financial assets measured at amortised cost:
(i) Exchange gains/(losses) on revaluation or settlement of items denominated in foreign
currency (trade receivables, loans given etc.) 166.59 (271.45)
(ii) Allowance/(reversal) for expected credit loss during the year (411.24) (297.07)
(iii) Provision for impairment loss (other than expected credit loss) [net] (199.54) (1989.86)
(iv) Gains/(losses) on derecognition:
1. Bad debts (written off)/written back (net) (22.49) (13.86)
2. Gains/(losses) on transfer of financial assets (on non-recourse basis) (28.73) (58.42)
Sub-total (B) (495.43) (2630.66)
C Financial liabilities measured at amortised cost:
(i) Exchange gains/(losses) on revaluation or settlement of items denominated in foreign
currency (trade payables, borrowing availed etc.) (121.95) 255.31
(ii) Unclaimed credit balances written back 106.04 226.54
Sub-total (C) (15.91) 481.85
Total [I] = (A+B+C) 140.92 (1521.82)
II Net gains/(losses) on financial assets and financial liabilities measured at fair value through other
comprehensive income:
A Gains/(loses) recognised in other comprehensive income:
(i) Financial assets measured at fair value through other comprehensive income:
1. Gains/(losses) on fair valuation or sale of government securities, bonds, debentures etc. (106.75) 355.48
(ii) Derivative measured at fair value through other comprehensive income :
1. Gains/(losses) on fair valuation or settlement of forward contracts designated as cash
flow hedges 93.06 736.93
2. Gains/(losses) on fair valuation or settlement of embedded derivative contracts
designated as cash flow hedges (38.33) 32.92
Sub-total (A) (52.02) 1125.33
Less:
B Gains/(losses) reclassified to Profit or Loss from other comprehensive income:
(i) Financial assets measured at fair value through other comprehensive income :
1. On government securities, bonds, debentures etc. upon sale 71.15 116.02
(ii) Derivative measured at fair value through other comprehensive income:
1. On forward contracts upon hedged future cash flows affecting the Profit or Loss or
related asset or liability 41.95 408.39
2. On embedded derivative contracts upon hedged future cash flows affecting the Profit
or Loss or related asset or liability (4.78) 3.72
Sub-total (B) 108.32 528.13
Net gains/(losses) recognised in other comprehensive income [II]= (A)-(B) (160.34) 597.20

469
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

NOTE [53]
Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: (contd.)
v crore
Sr.
Particulars 2021-22 2020-21
No.
III Other income/(expenses):
A Dividend income:
Dividend income from investments measured at FVTPL 3.74 15.34
Sub-total (A) 3.74 15.34
B Interest income:
(a) Financial assets measured at amortised cost 344.42 363.89
(b) Financial assets measured at fair value through other comprehensive income 658.65 640.35
(c) Financial assets measured at fair value through Profit or Loss 42.27 24.51
Sub-total (B) 1045.34 1028.75
C Interest expense:
(a) Derivative instruments (including embedded derivatives) that are measured at fair value
through other comprehensive income (reclassified to Profit or Loss during the period) (76.02) (137.51)
(b) Financial liabilities that are measured at amortised cost (1432.22) (1870.02)
(c) Financial liabilities that are measured at fair value through Profit or Loss – (0.17)
Sub-total (C) (1508.24) (2007.70)
Total [III] = (A+B+C) (459.14) (963.61)
(d) Fair value of financial assets and financial liabilities measured at amortised cost:
(i) Financial assets measured at amortised cost:
The carrying amounts of trade receivables, loans, advances, investments in CBLO and Commercial Paper and cash and other bank
balances are considered to be the same as their fair values due to their short-term nature. The carrying amounts of long-term loans
given with floating rate of interest are considered to be close to the fair value.

(ii) Financial liabilities measured at amortised cost:

v crore
As at 31-3-2022 As at 31-3-2021
Fair value
Particulars Carrying Carrying
Fair value Fair value hierarchy
amount amount
Redeemable non-convertible fixed rate debentures 16068.04 16561.90 15570.86 16410.60 L2[1]
Term loan from banks 63.47 65.44 81.60 88.28 L2[1]
Total 16131.51 16627.33 15652.47 16498.88
Note: The carrying amounts of trade and other payables are considered to be the same as their fair values due to their short-term nature.
The carrying amounts of current borrowings at fixed rate and other borrowings at floating rate of interest are considered to be close to
the fair value.

[1]
Valuation technique L2: Future cash flows discounted using market rates.

470
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [53]
Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: (contd.)
(e) Fair value hierarchy of financial assets and liabilities measured at fair value:
v crore
As at 31-3-2022 As at 31-3-2021
Particulars Note
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial assets:
Financial assets at FVTPL:
(i) Equity shares (other than those held in subsidiary,
joint ventures and associate companies) 5 4.98 – 69.42 74.40 6.88 – 63.34 70.22
(ii) Mutual fund units 10 5961.14 – – 5961.14 11787.56 – – 11787.56
(iii) Bonds 10 1277.67 – – 1277.67 982.97 – – 982.97
(iv) Derivative instruments not designated as cash
flow hedges 7,15 – 67.91 – 67.91 – 99.47 – 99.47
(v) Embedded derivative Instruments not designated
as cash flow hedges 7,15 – 24.48 – 24.48 – 33.68 – 33.68
Financial assets at FVTOCI:
(i) Debt instruments viz. government securities,
bonds and debentures 10 8820.71 – – 8820.71 9162.44 – – 9162.44
(ii) Derivative financial instruments designated as
cash flow hedges 7,15 – 464.64 – 464.64 – 605.32 – 605.32
(iii) Embedded derivative instruments designated as
cash flow hedges 7,15 – 26.40 – 26.40 – 19.13 – 19.13
Total 16064.50 583.43 69.42 16717.35 21939.85 757.60 63.34 22760.79
Financial Liabilities:
(i) Designated at FVTPL:
(a) Derivative instruments not designated as
cash flow hedges 20,26 – 36.03 – 36.03 – 15.81 – 15.81
(b) Embedded derivative instruments not
designated as cash flow hedges 20,26 – 26.86 – 26.86 – 11.73 – 11.73
(ii) Designated at FVTOCI:
(a) Derivative financial instruments designated
as cash flow hedges 20,26 – 326.22 – 326.22 – 336.55 – 336.55
(b) Embedded derivative financial instruments
designated as cash flow hedges 20,26 – 70.60 – 70.60 – 57.49 – 57.49
Total – 459.71 – 459.71 – 421.58 – 421.58
Valuation technique and key inputs used to determine fair value -
1. Level-1 : Mutual Fund, bonds, debentures and government securities- Quoted price in the active market
2. Level-2 : Derivative instrument – Mark to market on forward covers and embedded derivative instruments is based on forward
exchange rates at the end of reporting period and discounted using G-sec rate plus applicable spread.

(f) Movement of items measured using unobservable inputs (Level 3):

v crore
Particulars Equity Investment in Tidel Park Limited
Balance as at April 01, 2020 68.30
Gains/(losses) recognised in Profit or Loss during 2020-21 (5.07)
Balance as at March 31, 2021 63.23
Gains/(losses) recognised in Profit or Loss during 2021-22 6.09
Balance as at March 31, 2022 69.32

471
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

NOTE [53]
Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: (contd.)
Significant unobservable inputs used in level 3 fair value measurements and sensitivity of the fair value measurement to changes in
unobservable inputs:
Fair value as at
31-3-2022 31-3-2021 Significant unobservable
Particulars Sensitivity
inputs
v crore
Equity 69.32 63.23 31-3-2022 and 31-3-2021: 31-3-2022 and 31-3-2021 :
Investment 1. Net realisation per month 1% change in net realisation would result in +/- R 0.28 crore (post tax- R 0.21
R 31.827 per sqft. crore)
2. Capitalisation rate 11.50% 25 bps change in capitalisation rate would result in +/- R 0.60 crore (post
tax- R 0.45 crore)
(g) Maturity profile of Financial Liabilities (undiscounted values):
v crore
Note As at 31-3-2022 As at 31-3-2021

Particulars Within After Within After

twelve twelve Total twelve twelve Total
months months months months
A. Non-derivative liabilities:
Borrowings 19,23,24 8222.87 14412.85 22635.72 7950.14 20705.48 28655.62
Trade payables:
Due to micro enterprises and small enterprises 378.96 94.71 473.67 328.25 120.05 448.30
Due to others 25 42801.00 2110.67 44911.67 38008.97 2312.51 40321.48
Other financial liabilities 20,26 2883.18 119.97 3003.15 2054.45 69.76 2124.21
Lease liabilities 71.35 109.68 181.03 80.30 119.47 199.77
Total 54357.36 16847.88 71205.24 48422.11 23327.27 71749.38
B. Derivative liabilities:
Forward contracts 20,26 350.26 16.50 366.76 327.00 35.74 362.74
Embedded derivatives 20,26 85.26 13.17 98.43 69.74 - 69.74
Total 435.52 29.67 465.19 396.74 35.74 432.48
(h) Details of outstanding hedge instruments for which hedge accounting is followed:
(i) Outstanding currency exchange rate hedge instruments
Forward covers taken to hedge exchange rate risk and accounted as cash flow hedge:
As at 31-3-2022 As at 31-3-2021
Within After Within After
Nominal Average Nominal Average
Particulars twelve twelve twelve twelve
amount rate amount rate
months months months months
(v crore) (v) (v crore) (v)
(v crore) (v crore) (v crore) (v crore)
(a) Receivable hedges
US Dollar 13278.46 79.32 10671.01 2607.45 13197.80 78.35 8999.77 4198.03
Qatari Riyal 1739.15 21.06 1734.08 5.07 1207.41 20.72 958.09 249.32
Japanese yen 1502.65 0.69 1401.82 100.83 2537.18 0.73 2426.78 110.40
Arab Emirates dirham 1024.89 21.26 950.49 74.40 926.09 21.26 779.74 146.35
EURO 941.06 94.15 683.69 257.37 1460.38 99.84 1195.09 265.29
Kuwaiti Dinar 808.30 261.19 795.36 12.93 831.62 255.45 645.10 186.52
Omani Riyal 365.55 202.36 265.40 100.15 785.49 193.34 599.11 186.38
British Pound 191.87 105.14 191.87 – 214.70 100.49 214.70 –
Malaysian Ringgit 38.98 18.28 38.98 – 91.85 19.40 91.85 –
Thai Baht 2.77 2.31 2.77 – – – – –

472
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [53]
Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: (contd.)
As at 31-3-2022 As at 31-3-2021
Within After Within After
Nominal Average Nominal Average
Particulars twelve twelve twelve twelve
amount rate amount rate
months months months months
(v crore) (v) (v crore) (v)
(v crore) (v crore) (v crore) (v crore)
(b) Payable hedges
US Dollar 9524.14 76.83 9424.11 100.03 10927.51 74.49 10615.91 311.60
EURO 3556.94 87.56 3515.38 41.56 6409.40 87.40 6129.57 279.83
Japanese Yen 897.43 0.67 897.43 – 1325.46 0.72 1325.46 –
Chinese Yuan 500.30 12.04 500.30 – 85.99 11.23 85.98 0.01
Swiss Franc 273.64 77.29 272.74 0.90 293.53 80.10 123.77 169.76
Qatari Riyal 149.96 20.82 149.96 – 29.59 20.69 29.59 –
British Pound 127.11 105.93 127.11 – 26.41 101.30 26.41 –
Kuwaiti Dinar 32.43 253.45 32.43 – 242.90 242.90 242.90 –
Arab Emirates Dirham 42.35 20.71 42.35 – 46.35 20.28 46.35 –
Canadian Dollar 3.63 60.69 3.63 – 3.51 58.77 3.51 –
Omani Riyal – – – – 9.46 189.04 9.46 –
(ii) Outstanding commodity price hedge instruments
A. Commodity forward contract:
As at 31-3-2022 As at 31-3-2021
Within After Within After
Nominal Average Nominal Average
Particulars twelve twelve twelve twelve
amount rate amount rate
months months months months
(v crore) (v) (v crore) (v)
(v crore) (v crore) (v crore) (v crore)
Copper(Tn)[1] (556.94) 743183.52 (556.94) – (126.17) 588420.44 (126.17) –
Aluminium(Tn)[1] (99.81) 227305.24 (99.81) – (12.46) 151246.64 11.03 (23.49)
Iron Ore(Tn) 25.25 12174.31 25.25 – 33.68 7447.47 33.68 –
Nickel(Tn) 71.39 1346959.25 71.39 – 143.04 1030545.11 143.04 –
Lead(Tn) 8.13 169465.07 8.13 – 47.04 142207.55 47.04 –
[1] Negative nominal amount represents net sell position.
B. Commodity options contract:

As at 31-3-2022 As at 31-3-2021
Within After Within After
Nominal Average Nominal Average
Particulars twelve twelve twelve twelve
amount rate amount rate
months months months months
(v crore) (v) (v crore) (v)
(v crore) (v crore) (v crore) (v crore)
Aluminium 11.30 [1]
11.30 – – – – –
[1] The options contracts include a combination of calls and puts with different maturities and strike prices.

473
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

NOTE [53]
Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: (contd.)
(i) Carrying amounts of hedge instruments for which hedge accounting is followed:
Cash flow hedge:
v crore
As at 31-3-2022 As at 31-3-2021
Particulars Currency Commodity Currency Commodity
exposure price exposure exposure price exposure
Forward contracts
Current:
Asset - Other financial assets 304.03 67.59 375.12 154.01
Liability - Other financial liabilities 339.94 29.18 286.79 61.40
Non-current:
Asset - Other financial assets 119.42 – 95.32 –
Liability - Other financial liabilities 27.71 – 42.83 3.02
(j) Breakup of hedging reserve & cost of hedging reserve balance:
v crore
As at 31-3-2022 As at 31-3-2021

Particulars Cash flow Cost of Cash flow Cost of

hedging hedging hedging hedging
reserve reserve reserve reserve
Balance towards continuing hedges (38.96) (4.76) 30.93 (4.34)
Balance for which hedge accounting discontinued 322.19 0.04 190.60 (2.67)

(k) Reclassification of hedging reserve & cost of hedging reserve to Profit or Loss
v crore
Hedging reserve/Cost of
Particulars hedging reserve
2021-22 2020-21
Future cash flows are no longer expected to occur:
Sales, administration and other expenses 23.42 31.57
Hedged expected future cash flows affecting Profit or Loss:
Progress billing 20.40 260.25
Revenue from operation 41.78 45.46
Manufacturing ,construction and operating expenses 44.26 92.77
Finance costs (76.02) (137.51)
Sales, administration and other expenses (72.30) 242.30

474
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

NOTE [53]
Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: (contd.)
(l) Movement of hedging reserve & cost of hedging reserve
v crore
2021-22 2020-21
Hedging reserve
Gross Tax Net of Tax Gross Tax Net of Tax
Opening balance 314.42 (92.89) 221.53 (64.58) 17.75 (46.83)
Impact of business combination 162.43 (40.88) 121.55
Changes in the spot element of the forward contracts
which is designated as hedging instrument for time
period related hedges 59.16 (7.23) 51.93 202.71 (59.74) 142.97
Changes in fair value of forward contracts designated
as hedging instruments 111.77 (13.66) 98.11 675.33 (188.34) 486.99
Changes in fair value of swaps (33.99) 4.15 (29.84) 30.19 (8.90) 21.29
Amount reclassified to Profit or Loss (46.42) 5.67 (40.75) (424.79) 119.60 (305.19)
Amount included in non-financial asset/liability 0.15 (0.02) 0.13 (6.62) 1.95 (4.67)
Amount included in Progress Billing in balance sheet (20.40) 2.52 (17.88) (260.25) 65.67 (194.58)
Closing balance 384.69 (101.46) 283.23 314.42 (92.89) 221.53

v crore
2021-22 2020-21
Cost of hedging reserve
Gross Tax Net of Tax Gross Tax Net of Tax
Opening balance (9.36) 2.35 (7.01) (19.34) 4.86 (14.48)
Impact of business combination – – – (1.83) 0.46 (1.37)
Changes in the forward element of the forward
contracts where changes in spot element of forward
contract is designated as hedging instrument for time
period related hedges (82.21) 20.69 (61.52) (138.38) 34.83 (103.55)
Amount reclassified to Profit or Loss 85.27 (21.46) 63.81 150.19 (37.80) 112.39
Closing balance (6.30) 1.58 (4.72) (9.36) 2.35 (7.01)

Note [54]
Disclosure pursuant to IndAS 116 “Leases”
(a) Where the Company is a lessor:
Operating leases: The Company has given buildings and plant & equipment under operating lease. The lease income received during the
year is R 161.35 crore (previous year: R 162.96 crore). Leases are renewed only on mutual consent and at a prevalent market price and
sub-lease is generally restricted.

Annual undiscounted lease payments receivable is as under:

v crore

Particulars Upto 1 year 1 – 2 years 2-3 years 3-4 years 4-5years Beyond 5 years Total
As at 31-3-2022 7.27 7.23 5.65 4.56 3.29 – 27.99
As at 31-3-2021 6.69 0.28 0.28 0.28 0.16 – 7.68

(b) Where the Company is a lessee:

The Company has taken various assets on lease such as, plant & equipment, buildings, office premises, vehicles and computer
equipment. Generally, leases are renewed only on mutual consent and at a prevalent market price and sub-lease is restricted.

475
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [54]
Disclosure pursuant to IndAS 116 “Leases” (contd.)
Details with respect to right-of-use assets:
v crore
Depreciation for the year Additions during the year Carrying amount
Class of asset
2021-22 2020-21 2021-22 2020-21 2021-22 2020-21
Land 4.23 4.07 1.88 0.91 262.64 265.03
Buildings 62.96 46.61 56.38 101.60 123.70 131.95
Plant & equipment 36.13 71.78 28.04 5.78 33.27 41.43
Vehicles 0.09 0.09 – – 0.06 0.15
Computer 0.59 0.24 – 1.76 0.93 1.52
Total 104.00 122.80 86.30 110.05 420.59 440.07

i. Interest expense on lease liabilities amounts to R 13.24 crore (previous year: R 14.36 crore).
ii. The expense relating to payments not included in the measurement of lease liability and recognised as expense in the Statement of
Profit and Loss during the year are as follows:
l Low value leases - R 35.41 crore (previous year: R 7.66 crore)
l Short-term leases - R 2589.36 crore (previous year: R 2143.46 crore) and
iii. Total cash out flow for leases amounts to R 2558.41 crore during the year (previous year: R 2119.36 crore) including cash outflow of
short-term and low value leases.

NOTE [55]
The Company has amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006, [MSMED Act] as at
March 31, 2022. The disclosure pursuant to the said Act is as under:
v crore
Particulars 2021-22 2020-21
Principal amount due to suppliers under MSMED Act, 2006 18.42 87.78
Interest accrued, due to suppliers under MSMED Act on the above amount, and unpaid 1.03 0.05
Payment made to suppliers (other than interest) beyond the appointed day during the year 318.82 193.36
Interest paid to suppliers under MSMED Act (Section 16) 2.89 0.55
Interest due and payable towards suppliers under MSMED Act for payments already made 11.46 1.09
Interest accrued and remaining unpaid at the end of the year to suppliers under MSMED Act 14.43 14.01
Amount of further interest remaining due and payable even in the succeeding years 0.28 9.73

NOTE [56]
There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2022.

476
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [57]
Particulars in respect of loans and advances in the nature of loans to related parties as required by the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015:
v crore
Balance as at Maximum outstanding during
Sr.
Name of the company As at As at
No. 2021-2022 2020-2021
31-03-2022 31-03-2021
Loans and advances in the nature of loans given to subsidiaries:
(i) L&T Realty Developers Limited [1]
– – – 176.67
(ii) L&T Special Steels & Heavy Forgings Private Limited [2]
1730.38 1730.38 1730.38 1730.38
(iii) L&T Geostructure Private Limited 26.00 29.60 29.60 29.60
(iv) Nabha Power Limited 145.43 22.48 404.15 1584.45
(v) L&T Metro Rail (Hyderabad) Limited 3726.70 2450.49 4004.49 2450.49
(vi) Hi-Tech Rock Products & Aggregates Limited 24.66 34.10 34.10 326.64
(vii) Larsen & Toubro Arabia LLC [3]
83.50 130.84 130.84 487.99
(viii) L&T Sapura Shipping Private Limited 327.93 162.53 327.93 163.73
(ix) L&T Hydrocarbon Saudi Company [4]
213.23 403.66 403.66 601.48
(x) L&T Modular Fabrication Yard LLC 0.28 83.12 83.12 86.71
(xi) L&T Heavy Engineering LLC [5]
75.20 71.62 75.20 144.49
Total 6353.32 5118.82
[1]
Formerly known as L&T Construction Equipment Limited
[2]
Excluding impairment of R 1730.38 crore (previous year: R 1730.38 crore)
[3]
Excluding impairment of R 39.81 crore (previous year: R 38.38 crore)
[4]
Excluding impairment of R 173.93 crore (previous year: R 167.70 crore)
[5]
Excluding impairment of R 75.20 crore (previous year: R 71.62 crore)
[6]
Above figures include interest accrued
[7]
L oans to employees (including directors) under various schemes of the company (such as housing loan, furniture loan, education loan, etc.) have
been considered to be outside the purview of disclosure requirements.
[8]
Subsidiary classification is in accordance with the Companies Act, 2013

477
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

NOTE [58]
Disclosure pursuant to section 186 of The Companies Act 2013:
v crore
Sr. Nature of the transaction (loans given/investment Purpose for which the loan/guarantee/security is
2021-22 2020-21
No. made/guarantee given/security provided) proposed to be utilised by the recipient
(A) Loan and Advances
Subsidiary Companies:
(a) L&T Special Steels & Heavy Forgings Private Working capital and project funding 1730.38 1730.38
Limited [1]
(b) Nabha Power Limited Project funding 145.43 22.48
(c) L&T Metro Rail (Hyderabad) Limited Working capital and project funding 3726.70 2450.49
(d) Hi-Tech Rock Products & Aggregates Limited Investment in subsidiaries 24.66 34.10
(e) L&T Geostructure Private Limited Project funding 26.00 29.60
(f) Larsen & Toubro Arabia LLC [2] 83.50 130.84
(g) L&T Sapura Shipping Private Limited 327.93 162.53
(h) L&T Hydrocarbon Saudi Company [3] Working capital 213.23 403.66
(i) L&T Modular Fabrication Yard LLC 0.28 83.12
(j) L&T Heavy Engineering LLC [4] 75.20 71.62
Total 6353.32 5118.82
(B) Guarantees
Subsidiary Companies:
(a) L&T - MHI Power Turbine Generators Private
Limited 255.12 312.67
Corporate guarantee given for subsidiary’s Debt
(b) Nabha Power Limited 4000.00 4500.00
(c) L&T Metro Rail (Hyderabad) Limited 8616.00 250.00
(d) Larsen & Toubro Arabia LLC 8652.89 4115.57
(e) L&T Technology Services Limited 610.58 611.53
(f) Larsen & Toubro (Saudi Arabia) LLC Corporate guarantee for subsidiary’s project performance 253.41 1262.12
(g) Mindtree Limited 505.32 514.50
(h) L&T Hydrocarbon Saudi Company LLC 19573.00 7128.36
(i) L&T- MHI Power Boilers Private Limited Guarantees issued by bank out of the Company’s
sanctioned limits to customer of L&T- MHI Power Boilers
Private Limited for project performance 29.21 29.23
(j) L&T Metro Rail (Hyderabad) Ltd Guarantee issued by bank out of the Company’s
sanctioned limits On behalf of LTMRHL towards DSRA
((Debt Service Reserve Account) to SBI Cap Trustee – 472.00
(k) Nabha Power Limited Guarantees issued by bank out of the Company’s
sanctioned limits on behalf of Nabha for project
performance to PSPCL 216.00 216.00
(l) L&T Special Steel & Heavy Forgings Pvt Ltd Guarantees issued by bank out of the Company’s
sanctioned limits on behalf of L&T Special Steel for
project performance to NPCIL 15.89 21.95
(m) L&T Seawoods Ltd Corporate guarantee given to Maharashtra Pollution
Control Board for CTO/CTE compliances 0.50 0.50
42727.92 19434.43
(C) Investments in fully paid equity instruments and Current
[Note 5 and Note 10]
Investments
[1]
Excluding impairment of R 1730.38 crore (previous year: R 1730.38 crore)
[2]
Excluding impairment of R 39.81 crore (previous year: R 38.38 crore)
[3]
Excluding impairment of R 173.93 crore (previous year: R 167.70 crore)
[4]
Excluding impairment of R 75.20 crore (previous year: R 71.62 crore)

478
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [59]
Exceptional items (net of tax) for 2021-22 includes the following:

(i) Gain of R 138.69 crore on transfer of NxT digital business to Mindtree Limited, a subsidiary, with effect from July 1, 2021.

(ii) Gain of R 128.60 crore on divestment of stake in L&T Uttaranchal Hydro Power Limited, a subsidiary on August 30, 2021.

Exceptional items (net of tax) for 2020-21 included the following:

(i) Impairment towards funded exposure of R 1467.38 crore offset by interest income of R 78.58 crore and provision towards constructive
obligation to fund future losses R 14.85 crore in the heavy forgings joint venture.

(ii) Impairment of investments in the power development business R 1415.00 crore.

The impairment was recognised considering the existing business operations and the outlook for the future performance. The present value of
estimated future cash flows of the business (value-in-use) was considered as a recoverable amount (discount rates used 11.90% to 12.75%).
For power development business, in addition to value-in-use, part of the recoverable value was based on the fair value determined based on
benchmark multiple method.

NOTE [60]
Disclosure related to Corporate Social Responsibility (CSR):

v crore
Sr. No. Particulars 2021-22 2020-21
(i) Required to be spent 134.05 154.87
(ii) Excess spend of previous year utilised 4.51
[2]
–
(iii)= (i)-(ii) Spend obligation 129.54 154.87
(iv) Actual spent 135.68 159.94
Of which amount recognised in:
(a) Balance sheet 5.63
[1]
1.62
[2]

(b) Statement of Profit and Loss 130.05 158.32

(v) Excess spend shown as asset in previous year charged to Statement of Profit and Loss on its
utilisation 1.62 –
(iv b)+(v) Total amount shown in Statement of Profit and Loss 131.67 158.32 [3]
i. Refer Annexure C to the Board Report for the nature of CSR activities of the Company.

ii. Amount spent on CSR during the year 2021-22 includes contribution to PM CARES Fund NIL (previous year: R 3.24 crore).
[1]
T otal amount spent in excess of mandatory requirement for FY 21-22 and available for set off in succeeding financial years is R 6.14 crore
(including the amount for which no asset is created).
[2]
T otal amount spent in excess of mandatory requirement for FY 20-21 was R 5.07 crore. The amount available for set off in succeeding
financial years was R 4.51 crore (including the amount for which no asset was created).
[3]
Includes CSR expense of discontinued operations R 0.83 crore.

479
Integrated Annual Report 2021-22 Notes forming part of the Financial Statements

Notes forming part of the Financial Statements (contd.)

Note [61]
Auditors’ remuneration (excluding GST):
v crore
Sr. No. Particulars 2021-22 2020-21
a. Paid as Auditor
(i) Statutory audit fees 2.75 2.45
(ii) Limited review of standalone and consolidated financial statements on a quarterly basis 2.49 2.10
b. For Taxation matters 0.76 0.74
c. For Company law matters 0.50 –
d. For Other services including certification work 1.16 1.43
e. For reimbursement of expenses 0.12 0.19

Note [62]
Contribution to political parties during the year 2021-22 is Nil (previous year: Nil).

Note [63]
(a) Balance outstanding with struck off companies:
v crore

Relationship with Balance Balance

Nature of
S. No. Name of the Struck off Company the struck off outstanding outstanding
Transaction
company as at 31-3-2022 as at 31-3-2021
1 Walls Infra Solution Private Limited Accounts Payables NA – [1] – [1]
2 Avn Green Technologies Private Limited Accounts Payables NA – [1] – [1]
3 Alert Infraprojects Private Limited Accounts Payables NA 0.01 0.01
4 I S Earth Movers Private Limited Accounts Payables NA – [1] – [1]
5 Victor Properties private Limited Shares held by
struck off company NA – [1] – [1]
6 Kothari Intergroup Limited Shares held by
struck off company NA – [1] – [1]

[1]
Less than R 1 Lakhs.

(b) Notes with respect to remarks in CARO Report:

(i) The Company renewed the loan of R 24.66 crore to Hi-Tech Rock Product & Aggregates Limited, a subsidiary, as its business was
affected majorly due to an inverted duty structure. The subsidiary company has initiated measures to become more cost competitive
including redressal of the inverted duty structure through various forums.

(ii) The Company renewed the loan of R 168.48 crore to L&T Sapura Shipping Private Limited, a joint venture, as the vessel owned by
it was under major repairs since its accident in March 2020 and the joint venture company was unable to generate revenue. The
vessel is expected to be re-commissioned in 2022-23. The payment of interest of R 3.50 crore on the Company’s bridge loan, for
repairs of the vessel, to the joint venture company, is overdue and would be settled out of insurance claim proceeds.

480
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Financial Statements (contd.)

Note [64]
Following are the analytical ratios for the year ended March 31, 2022 and March 31, 2021
Ratio Numerator Denominator As at As at Variance % Reason of Variance [If
31-3-2022 31-3-2021 change is more than 25%]
Current Ratio (times) Current assets Current liabilities 1.39 1.43 (2.4)
Debt Equity Ratio Total debt Shareholder’s equity
(times) 0.30 0.40 (23.7)
Debt Service Earnings available for debt Debt service [2] Previous period included
Coverage Ratio service [1] higher repayment of NCDs on
(times) 6.49 1.82 257.3 maturity
Return on Equity Profit for the year after tax Average Previous period included gain
Ratio (%) shareholders equity 12.2% 20.5% (40.5) on E&A business transfer.
Inventory Turnover Cost of goods sold Average inventory
Ratio NA [7] NA [7] NA
Trade Receivables Revenue from operations Average gross trade
Turnover Ratio receivables 2.65 2.46 7.7
Trade Payables Purchases [3] Average trade
Turnover Ratio payables 1.89 1.73 9.6
Net Capital Turnover Revenue from operations Average working
Ratio capital 2.93 3.52 (16.8)
Net Profit Ratio (%) Profit for the year after tax Revenue from Previous period included gain
operations 7.80% 13.52% (42.3) on E&A business transfer.
Return on Capital Profit after tax + Finance Capital employed[4] Previous period included gain
Employed (%) Cost (net off tax shield on on E&A business transfer.
Finance Cost) 10.32% 15.94% (35.3)
Return on Treasury income [5] Average
Investment (%) investment [6] 6.72% 8.56% (21.4)
[1]
Profit before interest, tax and exceptional items from continuing operations
[2]
Interest expense + Principal repayments made during the period for long term borrowings+ Cash flow on settlement of derivatives contracts related
to borrowings
[3]
Includes Manufacturing ,construction and operating expenses
[4]
Average Equity and average loan funds ( including interest bearing advances)
[5]
Includes profit/loss on sale and fair valuation of current investments, dividend on current investment and interest income
[6]
Includes current investment, inter corporate deposits and fixed deposits
[7]
Not material considering the size and the nature of operations of the Company

Note [65]
(a) For better understanding of the Company’s performance, line items have been added to show Profit after tax from continuing operations
separately from exceptional items. This is in line with guidance available in Schedule III to the Act.

(b) Figures for the previous year have been regrouped/reclassified to conform to the figures of the current year.

481
Consolidated Financial Statements
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

DELOITTE HASKINS & SELLS LLP

Chartered Accountants
One International Center Tower 3,
32nd Floor, Senapati Bapat Marg
Elphinstone Road (West)
Mumbai – 400 013
Maharashtra, India

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF
LARSEN & TOUBRO LIMITED
Report on the Audit of the Consolidated Financial Statements
Opinion
We have audited the accompanying Consolidated Financial Statements of Larsen & Toubro Limited (the “Parent”) and its subsidiaries, (the
Parent and its subsidiaries together referred to as the “Group”) which includes 35 joint operations of the Group accounted on proportionate
basis and the Group’s share of profit in its associates and joint ventures, which comprise the Consolidated Balance Sheet as at March 31,
2022, and the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the Consolidated Statement of Cash
Flows and the Consolidated Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and
other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of reports
of the other auditors on separate financial information of the joint operations, subsidiaries, associates and joint ventures referred to in the
Other Matters section below, the aforesaid consolidated financial statements give the information required by the Companies Act, 2013 (the
“Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended (“Ind AS”), and other accounting principles
generally accepted in India, of the consolidated state of affairs of the Group as at March 31, 2022, and their consolidated profit, their
consolidated total comprehensive income, their consolidated cash flows and their consolidated changes in equity for the year ended on that
date.

Basis for Opinion

We conducted our audit of the consolidated financial statements in accordance with the Standards on Auditing specified under section 143
(10) of the Act (“SA”s). Our responsibilities under those Standards are further described in the Auditor’s Responsibility for the Audit of the
Consolidated Financial Statements section of our report.
We are independent of the Group, its associates and joint ventures in accordance with the Code of Ethics issued by the Institute of Chartered
Accountants of India (“ICAI”) together with the ethical requirements that are relevant to our audit of the consolidated financial statements
under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence obtained by us and the audit evidence obtained by the
other auditors in terms of their reports referred to in the Other Matters section below, is sufficient and appropriate to provide a basis for our
audit opinion on the consolidated financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial
statements of the current financial year. These matters were addressed in the context of our audit of the consolidated financial statements as
a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters
described below to be the key audit matters to be communicated in our report.

Revenue recognition – accounting for construction contracts

Key audit matter There are significant accounting judgements in estimating revenue to be recognised on contracts with customers,
description including estimation of costs to complete. The Group recognizes revenue on the basis of stage of completion in
proportion of the contract costs incurred at balance sheet date, relative to the total estimated costs of the contract
at completion. The recognition of revenue is therefore dependent on estimates in relation to total estimated costs
of each such contract.
Significant judgements are involved in determining the expected losses, when such losses become probable based
on the expected total contract cost. Cost contingencies are included in these estimates to take into account specific
risks of uncertainties or disputed claims against the Group, arising within each contract. These contingencies
are reviewed by the Management on a regular basis throughout the life of the contract and adjusted where
appropriate. The revenue on contracts may also include variable consideration (variations and claims). Variable
consideration is recognised when the recovery of such consideration is highly probable.
Refer to Note No. [1](II)(i) to the Consolidated Financial Statements

483
Integrated Annual Report 2021-22 Auditors’ Report on Consolidated Financial Statements

Revenue recognition – accounting for construction contracts

Principal Audit Our audit procedures related to the (1) identification of distinct performance obligations, (2) evaluation of the
Procedures process for estimation of costs to complete (3) evaluation of implications of change orders on costs estimates of
costs to complete and revenue and (4) evaluation of any variable consideration included the following:
• We tested the effectiveness of controls relating to the (a) evaluation of performance obligations and
identification of those that are distinct; (b) estimation of costs to complete each of the performance
obligations including the contingencies in respect thereof, as work progresses and the impact thereon as
a consequence of change orders; (c) the impact of change orders on the transaction price of the related
contracts; and (d) evaluation of the impact of variable consideration on the transaction price.

• We selected a sample of contracts with customers and performed the following procedures:

a. Obtained and read contract documents for each selection, change orders, and other documents that
were part of the agreement;

b. Identified significant terms and deliverables in the contract to assess management’s conclusions
regarding the (i) identification of distinct performance obligations; (ii) changes to costs to complete
as work progresses and as a consequence of change orders; (iii) the impact of change orders on the
transaction price; and (iv) the evaluation of the adjustment to the transaction price on account of variable
consideration;

c. Compared costs incurred with Group’s estimates of costs incurred to date to identify significant variations
and evaluated whether those variations have been considered appropriately in estimating the remaining
costs to complete the contract; and

d. Tested the estimate for consistency with the status of delivery of milestones and customer acceptance to
identify possible delays in achieving milestones, which require changes in estimated costs or efforts to
complete the remaining performance obligation.
Measurement of contract assets in respect of overdue milestones and receivables in respect of overdue invoices.
Key audit matter The Group, in its contract with customers, promises to transfer distinct services to its customers, which may
description be rendered in the form of engineering, procurement, and construction (“EPC”) services through design-build
contracts, and other forms of construction contracts. The recognition of revenue is based on contractual terms,
which could be based on agreed unit price or lump-sum revenue arrangements. At each reporting date, revenue
is accrued for costs incurred against work performed that may not have been invoiced. Identifying whether the
Group’s performance has resulted in a service that would be billable and collectable where the works carried out
have not been acknowledged by customers as of the reporting date, or in the case of certain Defence contracts,
where the evidence of work carried out and cost incurred are covered by confidentiality arrangements, involves a
significant amount of judgement. Assessing the recoverability of contract assets related to overdue milestones and
amounts overdue against invoices raised which have remained unsettled for a significantly long period after the end
of the contractual credit period also involves a significant amount of judgment.
Refer to Note No. [1](II)(i), [1](II)(r) to the Consolidated Financial Statements.
Principal Audit Our audit procedures related to the (1) evaluation of evidence supporting the execution of work; (2) evaluation
Procedures of recoverability of the overdue amounts including the impact on the expected credit loss allowance; and (3)
assessment of adjusting events after the reporting date i.e. March 31, 2022 and the date when the financial
statements are approved by the Parent’s Board of Directors included the following:
• We tested the effectiveness of controls relating to the (a) gathering and evaluation of evidence supporting
the execution of work; (b) evaluation of recoverability of the overdue amounts including the impact on the
expected credit loss allowance; and (c) assessment of adjusting events after the reporting date i.e. March
31, 2022 and the date when the financial statements are approved by the Board of Directors and the impact
thereof on the carrying amount of the related contract assets. Measurement of contract assets in respect of
overdue milestones and receivables in respect of overdue invoices.

• We selected a sample of contracts assets with corresponding trade receivables that were overdue and
evaluated the basis for management’s conclusions regarding the (1) evidence supporting the execution of
work for which the contract assets were recognised; (2) reasons for the delays in recovery of invoices and the
basis on which recoverability of the contract assets was assessed; (3) impact on the allowance for expected
credit losses; and (4) adjusting events after the reporting date i.e. March 31, 2022 and the date when the
financial statements are approved by the Board of Directors and the impact thereof on the carrying amount of
the related contract assets.

• In respect of the sample contracts, we compared previous estimates relating to recoverability of contract assets
and compared it with actual collections during the year.

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Impairment on Assets – Metro Rail Cash Generating Unit

Key audit matter As per the requirements of Ind AS 36, the Group assesses at the end of every reporting period, whether there is any
description indication that cash generating unit (CGU) may be impaired. If any such indication exists, the Group estimates the
recoverable amount of the CGU. The determination of recoverable amount being value-in-use involves significant
estimates, assumptions and judgements of the long-term financial projections.
The Group is carrying Intangible asset, Property Plant & Equipment and Investment property relating to Metro
Rail CGU (comprising of Hyderabad Metro operations). During the year, as the indication exists, the Group has
reassessed its impairment assessment with respect to the above CGU. Impairment of assets is a key audit matter
considering the significance of the carrying value, estimations and the significant judgement involved in impairment
assessment.
Refer to Note 1(II)(o) to the Consolidated Financial Statements
Principal Audit Our audit procedures related to forecasts of future traffic, revenue, free cash flows generated, selection of the
Procedures method for estimating recoverable value and discount rate for the entity included the following:
• We tested the effectiveness of controls over forecasts of future traffic, revenue, free cash flows and selection
of the discount rate;

• We evaluated the reasons for variation between the management’s previous estimate of traffic, revenue and
cash flow forecasts and obtained our understanding of the manner in which revised forecasts were obtained;

• With the assistance of our fair value specialists who have specialised skill and knowledge, we evaluated
the reasonableness of the methodology and discount rate by testing the source information underlying the
determination of the discount rate and mathematical accuracy of the calculations; and

• We performed a sensitivity analysis on the discount rate to assess the extent of change in discount rate that
would be required for the CGU to be impaired.

Accuracy of recognition, measurement, presentation and disclosures of revenue and other related balances in view of the
principles laid down under Ind AS 115 “Revenue from Contracts with Customers” in respect of component Larsen & Toubro
Infotech Limited
Key audit matter The application of the revenue accounting standard (Ind AS 115) involves significant judgements/material estimates
description relating to identification of distinct performance obligations, determination of transaction price of the identified
performance obligations, the appropriateness of the basis used to measure revenue recognised over a period.
Additionally, the standard requires disclosures, which involve collation of information in respect of disaggregated
revenue, and periods over which the remaining performance obligations will be satisfied subsequent to the Balance
Sheet date.
The Group has also assessed (i) the possibility of constraints to render services which may require revision of
estimations of costs to complete the contract because of additional efforts, (ii) onerous obligations, (iii) penalties
relating to breaches of service level agreements and (iv) termination or deferment of contracts by customers.
Refer to Note No. [1](II)(i) to the Consolidated Financial Statements.
Principal Audit The component’s auditors (being other firms of chartered accountants) have performed the following audit
Procedures procedures:
• Evaluated the design and operating effectiveness of internal controls relating to the application of revenue
accounting standard specifically, those relating to identification of the distinct performance obligations and
determination of transaction price. Procedures performed included enquiry and observation, reperformance
and inspection of evidence in respect of operation of these controls.

• Tested the relevant information technology systems’ access and change management controls relating to
contracts and related information used in recording and disclosing revenue in accordance with the revenue
accounting standard.

• Selected a sample of continuing and new contracts and performed the following procedures:

a. Read, analysed and identified the distinct performance obligations in these contracts;

b. Compared such performance obligations with those identified and recorded by the Company;

c. Reviewed contracts terms to determine the transaction price including any variable consideration to
determine the appropriate transaction price for computing revenue and to test the basis of estimation of
the variable consideration;

d. Samples in respect of revenue recorded for time and material contracts were tested through a review
of approved time sheets including customer acceptances, subsequent invoicing and historical trend of
collections and disputes;

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Accuracy of recognition, measurement, presentation and disclosures of revenue and other related balances in view of the
principles laid down under Ind AS 115 “Revenue from Contracts with Customers” in respect of component Larsen & Toubro
Infotech Limited
e. In respect of samples relating to fixed price contracts, progress towards satisfaction of performance
obligation used to compute recorded revenue was verified with actual and estimated efforts from the
time recording and contracting systems. We also tested the access and change management controls
relating to these systems;

f. Performed analytical procedures for reasonableness of revenue disclosed by type and service offerings;
and

g. Reviewed the collation of information and the logic of the report generated from the management
system used to prepare the disclosure relating to the periods over which the remaining performance
obligations will be satisfied after the Balance Sheet date.
Revenue recognition in respect of component L&T Technology Services Limited
Key audit matter The Group is in the business of providing technology and engineering services to third parties.
description The Group is having two models for the purpose of recognition of revenue from contracts for services rendered,
which are time and material contracts and fixed price contracts.
Refer to Note [1](II)(i) to the Consolidated Financial Statements.
Principal Audit The component’s auditors (being other firms of chartered accountants) have performed the following audit
Procedures procedures:
• Ensured that revenue recognition method applied was appropriate based on the terms of the agreement with
the customer; obtained an understanding of the processes and tested relevant controls, which impact the
revenue recognition;
• For time and material-based contracts:
a. Obtained appropriate evidence based on the circumstances to conclude whether the hours charged on
projects were appropriate;
b. Obtained appropriate evidence based on the circumstances to conclude whether the rate charged per
man hours on projects were appropriate; and
c. Verified the revenue based on the hours charged on the projects and approved per hour rate.
• Considered the appropriateness of disclosures in relation to revenue recognition.
• For fixed price contracts:
a. Agreed the total project revenue estimate with customer contracts agreements including amendments as
appropriate;
b. Assessed the reliability of management’s estimates by comparing actual results of delivered projects to
previous estimates;
c. Evaluated management’s estimates and assumptions in recognition of the revenue;
d. Verified the revenue based on the stage of completion of the projects; and
e. Obtained appropriate evidence based on the circumstances to conclude whether the proportion of
completion of projects was appropriate.

Measurement of loan assets for financial services segment

Key audit matter Significant judgement is used in classifying these loan assets and applying appropriate measurement principles. The
description allowance for expected credit losses (“ECL”) and fair valuation on such loan assets are critical estimates involving
significant level of management judgement.
As part of risk assessment, component auditors’ have determined that the allowance for ECL and fair valuation
on loan assets has a high degree of estimation uncertainty, with a potential range of reasonable outcomes for the
financial statements.
The key areas where the component auditors’ have identified greater levels of management judgement and
therefore increased levels of audit focus in the Company’s estimation of ECLs are:
a. Each borrower is classified into Stage 1 to 3 based on the objective criteria of Day Past Due (DPD) status as of
the reporting date and other loss indicators, as applicable. Such classification by borrower is done across all
facilities provided to the borrower, i.e. maximum of the DPDs among the facilities [“Max DPD”].
b. Inherently, judgment is involved in the use models to estimate ECL which includes determining Exposures at
Default (“EAD”), Probabilities of Default (“PD”) and Loss Given Default (“LGD”). The PD and the LGD are
the key drivers of estimation complexity and as a result are considered the most significant judgments in the
Company’s modelling approach.

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Measurement of loan assets for financial services segment

c. In addition to the output of the ECL models, macroeconomic overlays and adjustments are recognised by the
Company in order to align historic LGD estimates with the current collection and recovery practices.
Refer to Note [1](II)(r)(i)(D) to the Consolidated Financial Statements.
Principal Audit The component’s auditors (being other firms of chartered accountants) have performed the following audit
Procedures procedures:
• Examined the policies approved by the Board of Directors of the Company that articulate the Company’s
business model for managing its financial assets to achieve its business objectives.
• Verified the methodology adopted for computation of ECL and fair valuation for assessing and measuring
lending exposures.
• Confirmed that adjustments to the output of the ECL model is consistent with the documented rationale and
basis for such adjustments which has been approved by the Audit Committee of the Board of Directors.
• Audit procedures relating to the allowance for ECL and fair valuation included the following, among others:
a. Performed end-to-end process walkthroughs to identify the controls used in the impairment loss
allowance processes. Tested the design and effectiveness of relevant internal controls, including the
general IT controls relevant to the impairment loss allowance process, as detailed below:
• completeness and accuracy of the Exposure at Default (“EAD”) and the classification thereof into
stages consistent with the definitions applied in accordance with the policy approved by the Board
of Directors;
• appropriateness of information used in the estimation of the Probability of Default (“PD”) and Loss
given Default (“LGD”) for the different stages depending on the nature of the portfolio.
• reconciled the total loans considered for ECL assessment with the books of accounts to ensure the
completeness;
b. Performed the following substantive procedures on sample of loan assets:
• tested appropriateness of staging of borrowers based on DPD and other loss indicators, as
applicable;
• tested the factual accuracy of information such as ratings and period of default and other related
information used in estimating the PD;
• evaluated the reasonableness of applicable assumptions, including LGD;
• evaluated the methodology used to determine macroeconomic overlays and adjustments to the
output of the ECL model;
• evaluated the methodology used for computation of the fair value of loans; and
• assessed the disclosures made in relation to the ECL allowance and fair valuation to confirm
compliance with Ind AS provisions.

Impairment of Toll Collection Rights of certain operating projects who have incurred continuous losses and/or are undergoing
restructuring due to continuous losses for a period more than 5 years.
Key audit matter Toll collection rights obtained in consideration for rendering construction services, represent the right to collect
description toll revenue during the concession period in respect of Build-Operate-Transfer (“BOT”) and Design-Build-Operate-
Transfer (“DBOT”) projects. Toll collection rights are capitalised as intangible assets upon completion of the project
at the cumulative construction costs plus the present value of obligation towards negative grants and additional
concession fee payable to National Highways Authority of India (“NHAI”)/State Authorities, if any.
The Group has carried out detailed evaluations considering various factors and concluded that the carrying value of
the toll collection rights are good and recoverable.
Due to the multitude of factors and assumptions involved in determining the forecasted revenues/cash flows
and discount rate in the projection period, Significant judgments are required to estimate the recoverable values.
Any adverse changes to these assumptions could result into reduction in the fair value determined resulting in a
potential impairment to be recognised
Refer to Note No. [1](II)(o) to the Consolidated Financial Statements
Principal Audit The component’s auditors (being other firms of chartered accountants) have performed the following audit
Procedures procedures:
• Evaluated the design and implementation of the relevant controls and the operating effectiveness of such
internal controls which inter-alia includes the completeness and accuracy of the input data considered,
reasonableness of assumptions considered in determining the future projections and the assumptions
considered in preparing the impairment calculations.

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Impairment of Toll Collection Rights of certain operating projects who have incurred continuous losses and/or are undergoing
restructuring due to continuous losses for a period more than 5 years.
• Obtained the investment valuations (prepared by Management or as carried out by Management’s external
valuation specialist) pertaining to such subsidiaries and performed the following procedures;
a. Conducted discussions with component personnel to identify factors, if any, that should be taken into
account in the analysis;
b. Compared the actual revenues and cash flows generated by the subsidiaries during the year as to the
projections and estimates considered in the previous year; and
c. Evaluated the appropriateness of key assumptions considered, including discount rate, growth rate, etc.
considering the historical accuracy of the Company’s estimates in the prior periods, consultations with
internal specialists and comparison of the assumptions with public data wherever available.
Information Other than the Financial Statements and Auditor’s Report Thereon
The Parent Company’s Board of Directors is responsible for the other information. The other information comprises the information included
in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report, Business Responsibility Report, Corporate
Governance and Shareholder’s Information, but does not include the consolidated financial statements, standalone financial statements and
our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information, compare with the
financial statements of the joint operations, subsidiaries, joint ventures and associates audited by the other auditors, to the extent it relates
to these entities and, in doing so, place reliance on the work of the other auditors and consider whether the other information is materially
inconsistent with the consolidated financial statements or our knowledge obtained during the course of our audit or otherwise appears to be
materially misstated. Other information so far as it relates to the joint operations, subsidiaries, joint ventures and associates, is traced from
their financial statements audited by the other auditors.
If based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Management’s Responsibility for the Consolidated Financial Statements
The Parent Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation
of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial
performance including other comprehensive income, consolidated cash flows and consolidated changes in equity of the Group including its
associates and joint ventures in accordance with Ind AS and other accounting principles generally accepted in India.
The respective Boards of Directors of the companies included in the Group and of its associates and joint ventures are responsible for
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and its
associates and its joint ventures and for preventing and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance
of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements
by the Directors of the Parent Company, as aforesaid.
In preparing the consolidated financial statements, the respective Boards of Directors of the companies included in the Group and of its
associates and joint ventures are responsible for assessing the ability of the respective entities to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless the respective Boards of Directors either
intends to liquidate their respective entities or to cease operations, or has no realistic alternative but to do so.
The respective Boards of Directors of the companies included in the Group and of its associates and joint ventures are also responsible for
overseeing the financial reporting process of the Group and of its associates and joint ventures.
Auditor’s Responsibility for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material
misstatement, whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level
of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We
also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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• Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Parent Company
has adequate internal financial controls system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by the management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group
and its associates and joint ventures to continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group and its associates and joint ventures to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether
the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group
and its associates and joint ventures to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the audit of the financial statements of such entities or business activities included in the consolidated
financial statements of which we are the independent auditors. For the other entities included in the consolidated financial statements,
which have been audited by the other auditors, such other auditors remain responsible for the direction, supervision and performance of
the audits carried out by them. We remain solely responsible for our audit opinion.
Materiality is the magnitude of misstatements in the consolidated financial statements that, individually or in aggregate, makes it probable
that the economic decisions of a reasonably knowledgeable user of the consolidated financial statements may be influenced. We consider
quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in the consolidated financial statements.
We communicate with those charged with governance of the Parent Company and such other entities included in the consolidated financial
statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Other Matters
• We did not audit the financial information of 33 joint operations included in the standalone financial statements of the entities included
in the Group, whose financial information reflects total assets of R 3,130.29 crore as at March 31, 2022, total revenues of R 3,381.64
crore, total net loss after tax of R 193.76 crore, total comprehensive loss (net) of R 193.76 crore and net cash inflows amounting to
R 101.55 crore for the year ended March 31, 2022, as considered in the respective standalone financial statements of the entities
included in the Group. The financial information of these joint operations has been audited by the other auditors whose reports have
been furnished to us by the Parent’s Management, and our opinion in so far as it relates to the amounts and disclosures included in
respect of these joint operations and our report in terms of subsection (3) of Section 143 of the Act, in so far as it relates to the aforesaid
joint operations, is based solely on the report of such other auditors.
• We did not audit the financial information of 61 subsidiaries, whose financial information reflects total assets of R 1,85,352.10 crore
as at March 31, 2022, total revenues of R 49,781.36 crore, total net profit after tax of R 3,735.63 crore, total comprehensive income
(net) of R 3,931.93 crore and net cash outflows amounting to R 2,035.19 crore for the year ended March 31, 2022, as considered in
the consolidated financial statements. The consolidated financial statements also include the Group’s share of total net profit after
tax of R 116.20 crore for the year ended March 31, 2022 and total comprehensive income (net) of R 186.18 crore for the year ended
March 31, 2022, as considered in the consolidated financial statements, in respect of 2 associates and 12 joint ventures, whose
financial information has not been audited by us. This financial information has been audited by other auditors whose reports have
been furnished to us by the Parent’s Management and our opinion on the consolidated financial statements, in so far as it relates to the
amounts and disclosures included in respect of these subsidiaries, joint ventures and associates, and our report in terms of subsection (3)
of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries, joint ventures and associates is based solely on the reports
of the other auditors.
• We did not audit the financial information of 1 joint operation included in the standalone financial statements of the entities included in
the Group, whose financial information reflects total assets of R 1,067.79 crore as at March 31, 2022, total revenues of R 352.96 crore,
total net profit after tax (net) of R 11.91 crore, total comprehensive profit (net) of R 11.91 crore and net cash inflows of R 5.10 crore for
the year ended March 31, 2022, as considered in the respective standalone financial statements of the entities included in the Group.
This financial information of this joint operations have not been audited by the auditor whose financial information has been furnished

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to us by the Parent’s Management, and our opinion in so far as it relates to the amounts and disclosures included in respect of this
joint operation, is based solely on the financial information. According to the information and explanations given to us by the Parent’s
Management, the financial information of this entity are not material to the Group.
• We did not audit the financial information of 38 subsidiaries, whose financial information reflects total assets of R 1,480.21 crore as at
March 31, 2022, total revenues of R 987.76 crore, total net loss after tax of R 60.62 crore, total comprehensive loss (net) of R 56.43 crore
and net cash outflows amounting to R 56.34 crore for the year March 31, 2022, as considered in the consolidated financial statements.
The consolidated financial statements also include the Group’s share of total net loss after tax of R 1.41 crore and total comprehensive
loss (net) of R 1.46 crore for the year ended March 31, 2022, as considered in the consolidated financial statements, in respect of 3
associates and 2 joint ventures, whose financial information has not been audited by their respective auditors. This financial information
is unaudited and has been furnished to us by the Parent’s Management and our opinion on the consolidated financial statements, in so
far as it relates to the amounts and disclosures included in respect of these subsidiaries, joint ventures and associates, is based solely on
such unaudited financial information. In our opinion and according to the information and explanations given to us by the Management,
these financial information are not material to the Group.
Our opinion on the consolidated financial statements above and our report on Other Legal and Regulatory Requirements below, is not
modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the financial
information certified by the Management.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit and on the consideration of the reports of the other auditors on the
separate financial information of the joint operations, subsidiaries, associates and joint ventures referred to in the Other Matters section
above we report, to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit of the aforesaid consolidated financial statements.
b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial
statements have been kept so far as it appears from our examination of those books and the reports of the other auditors.
c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including Other Comprehensive Income, the
Consolidated Statement of Cash Flows and the Consolidated Statement of Changes in Equity dealt with by this Report are in
agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements.
d) In our opinion, the aforesaid consolidated financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors of the Parent Company as on March 31, 2022 taken
on record by the Board of Directors of the Company and the reports of the statutory auditors of its joint operation companies,
subsidiary companies, associate companies and joint venture companies incorporated in India, none of the directors of the Group
companies, its associate companies and joint venture companies incorporated in India is disqualified as on March 31, 2022 from
being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such
controls, refer to our separate Report in “Annexure A” which is based on the auditors’ reports of the Parent company, subsidiary
companies, associate companies and joint venture companies incorporated in India. Our report expresses an unmodified opinion on
the adequacy and operating effectiveness of internal financial controls over financial reporting of those companies.
g) With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of section 197(16) of
the Act, as amended,
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the
Parent Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The consolidated financial statements disclose the impact of pending litigations on the consolidated financial position of the
Group, its associates and joint ventures;
ii. Provision has been made in the consolidated financial statements, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by
the Parent Company and its subsidiary companies, associate companies and joint venture companies incorporated in India;
iv. a. The respective Managements of the Company and its subsidiaries which are companies incorporated in India whose
financial statements have been audited under the Act have represented to us and the other auditors of such subsidiaries
respectively that, to the best of their knowledge and belief, no funds (which are material either individually or in the
aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company or any of such subsidiaries to or in any other person(s) or entity(ies), including foreign
entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall,
directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the

490
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Overview Discussion and Analysis Report Reports Statements

Company or any of such subsidiaries (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of
the Ultimate Beneficiaries;
b. The respective Managements of the Company and its subsidiaries which are companies incorporated in India whose
financial statements have been audited under the Act have represented to us and the other auditors of such subsidiaries
respectively that, to the best of their knowledge and belief, no funds (which are material either individually or in the
aggregate) have been received by the Company or any of such subsidiaries from any person(s) or entity(ies), including
foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company
or any of such subsidiaries shall, directly or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries; and
c. Based on the audit procedures that has been considered reasonable and appropriate in the circumstances performed by
us and those performed by the auditors of the subsidiaries which are companies incorporated in India whose financial
statements have been audited under the Act, nothing has come to our or other auditor’s notice that has caused us or
the other auditors to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) contain any material
mis- statement.
v. The amount of dividend is in accordance with Section 123 of the Act.
a. The final dividend paid by the Parent Company during the year in respect of the same declared for the previous year is in
accordance with section 123 of the Companies Act 2013 to the extent it applies to payment of dividend.
b. As stated in Note No. 20 to the Consolidated Financial Statements, the Board of Directors of the Parent Company have
proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General
Meeting. The amount of dividend declared is in accordance with section 123 of the Act to the extent it applies to
declaration of dividend.
2. With respect to the matters specified in clause (xxi) of paragraph (3) and paragraph 4 of the Companies (Auditor’s Report) Order,
2020 (“CARO”/ “the Order”) issued by the Central Government in terms of Section 143(11) of the Act, according to the information
and explanations given to us, and based on the CARO reports issued by us and the auditors of respective companies included in the
consolidated financial statements to which reporting under CARO is applicable, as provided to us by the Management of the Parent, we
report that in respect of those companies where audits have been completed under section 143 of the Act, there are no qualifications or
adverse remarks by the respective auditors in the CARO reports of the said companies included in the consolidated financial statements
except for the following:

Name of the company CIN Nature of relationship Clause number of the CARO report
which is qualified or adverse*
Larsen and Toubro Limited L99999MH1946PLC004768 Parent Clause – iii (c) & iii (e)
L&T Seawoods Limited U45203MH2008PLC180029 Subsidiary Clause - iii (c) and iii (d)
L&T Sapura Shipping Private U61100TN2010PTC077217 Joint Venture Clause - ix (a)
Limited
L&T Chennai Tada Tollway U45309TN2008PLC066938 Joint Venture Clause – ix (a)
Limited
L&T Special Steels and Heavy U27109MH2009PTC193699 Joint Venture Clause – xix
Forgings Private Limited
*Refer to Note No. 63(a) to the Consolidated Financial Statements

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)

Sanjiv V. Pilgaonkar
(Partner)
(Membership No. 39826)
UDIN: 22039826AIVCZB5750

Place: Mumbai
Date: May 12, 2022

491
Integrated Annual Report 2021-22 Auditors’ Report on Consolidated Financial Statements

ANNEXURE “A” TO THE INDEPENDENT AUDITORS REPORT

(Referred to in paragraph “(f)” under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (the “Act”)
In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended March 31, 2022, we
have audited the internal financial controls over financial reporting of LARSEN & TOUBRO LIMITED (hereinafter referred to as “Parent”) and its
subsidiary companies which includes one of the Group’s 35 joint operations which is a company incorporated in India, its associate companies
and joint ventures, which are companies incorporated in India, as of that date.

Management’s Responsibility for Internal Financial Controls

The respective Boards of Directors of the Parent, its subsidiary companies, its joint operation, its associate companies and joint ventures,
which are companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on the internal
control over financial reporting criteria established by the respective companies considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants
of India (“ICAI”). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective company’s policies,
the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records,
and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditor’s Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Parent, its subsidiary companies, its
joint operation, its associate companies and its joint ventures, which are companies incorporated in India, based on our audit. We conducted
our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”)
issued ICAI and the Standards on Auditing (“SA”), prescribed under Section 143(10) of the Companies Act, 2013 (the “Act”), to the extent
applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting
was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained and the audit evidence obtained by other auditors of the subsidiary companies, joint
operation, associate companies and joint ventures, which are companies incorporated in India, in terms of their reports referred to in the
Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system
over financial reporting of the Parent, its subsidiary companies, its joint operation, its associate companies and its joint ventures, which are
companies incorporated in India.

Meaning of Internal Financial Controls Over Financial Reporting

A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A Company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with
authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection
of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.

Opinion
In our opinion to the best of our information and according to the explanations given to us and based on the consideration of the reports
of the other auditors referred to in the Other Matters paragraph below, the Parent, its subsidiary companies, its joint operation, its associate
companies and joint ventures, which are companies incorporated in India, have, in all material respects, an adequate internal financial controls
system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2022,
based on the criteria for internal financial controls over financial reporting established by the respective companies considering the essential
components of internal control stated in the Guidance Note.

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Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Other Matters
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over
financial reporting in so far as it relates to 34 subsidiary companies, 1 joint operation company and 11 joint ventures, which are companies
incorporated in India, is based solely on the corresponding reports of the auditors of such companies incorporated in India.

Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over
financial reporting in so far as it relates to 1 associate company, which are companies incorporated in India, whose financial information is
unaudited and whose efficacy of internal financial controls over financial reporting is based solely on the Management’s certification provided
to us and our opinion on the adequacy and operating effectiveness of the internal financial controls over financial reporting of the Group is
not affected as the financial information of such entities is not material to the Group.

Our opinion is not modified in respect of the above matters with respect to our reliance on the work done by and the reports of such other
auditors and the financial information certified by the Management.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)

Sanjiv V. Pilgaonkar
(Partner)
(Membership No. 39826)
UDIN: 22039826AIVCZB5750

Place: Mumbai
Date: May 12, 2022

493
Integrated Annual Report 2021-22 Consolidated Balance Sheet

Consolidated Balance Sheet as at March 31, 2022

v crore
Note As at 31-3-2022 As at 31-3-2021
ASSETS:
Non-current assets
Property, plant and equipment 2 10578.87 11386.29
Capital work-in-progress 2 1170.32 388.37
Investment property 3 3962.98 3646.78
Goodwill 4 7476.98 8066.96
Other intangible assets 5 18729.37 19197.76
Intangible assets under development 5 79.23 112.02
Right-of-use assets 61(b)(iii) 1988.62 2021.53
Financial assets
Investments in joint ventures and associates 43(e) 2729.35 2670.26
Other investments 6 7081.51 5945.14
Loans towards financing activities 7 46736.84 52631.67
Other loans 8 252.99 173.24
Other financial assets 9 2162.97 1420.19
58963.66 62840.50
Deferred tax assets (net) 51(d) 2840.10 2697.00
Other non-current assets 10 6077.62 5949.67
Sub-total - Non-current assets 111867.75 116306.88
Current assets
Inventories 11 5943.32 5820.54
Financial assets
Investments 12 29792.51 31011.23
Trade receivables 13 46138.92 42229.78
Cash and cash equivalents 14 13770.24 13373.52
Other bank balances 15 5182.93 2867.98
Loans towards financing activities 16 42269.20 41379.03
Other loans 17 280.34 235.35
Other financial assets 18 3840.04 3251.68
141274.18 134348.57
Other current assets 19 60132.89 54791.48
Sub-total - Current assets 207350.39 194960.59
Group(s) of assets classified as held for sale 45(e) 830.78 6.24
TOTAL ASSETS 320048.92 311273.71

494
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Consolidated Balance Sheet as at March 31, 2022 (contd.)

v crore
Note As at 31-3-2022 As at 31-3-2021
EQUITY AND LIABILITIES:
Equity
Equity share capital 20 281.01 280.91
Other equity 21 82126.65 75587.62
Equity attributable to owners of the Company 82407.66 75868.53
Non-controlling interests 12966.07 12051.53
TOTAL EQUITY 95373.73 87920.06
Liabilities
Non-current liabilities
Financial liabilities
Borrowings 22 61618.31 82120.04
Lease liability 1633.31 1617.72
Other financial liabilities 23 111.67 186.74
63363.29 83924.50
Provisions 24 817.77 773.78
Deferred tax liabilities (net) 51(d) 1039.33 1178.66
Other non-current liabilities 25 21.27 68.70
Sub-total - Non-current liabilities 65241.66 85945.64
Current liabilities
Financial liabilities
Borrowings 26 30476.96 27765.83
Current maturities of long-term borrowings 27 31372.96 22719.39
Lease liability 406.54 406.10
Trade payables:
Due to micro enterprises and small enterprises 575.91 488.99
Due to others 28 50568.33 45256.24
Other financial liabilities 29 6643.32 5328.93
120044.02 101965.48
Other current liabilities 30 34644.10 31269.63
Provisions 31 3355.86 2998.68
Current tax liabilities (net) 1309.82 1171.02
Sub-total - Current liabilities 159353.80 137404.81
Liabilities associated with group(s) of assets classified as held for sale 45(e) 79.73 3.20
TOTAL LIABILITIES 224675.19 223353.65
TOTAL EQUITY AND LIABILITIES 320048.92 311273.71
CONTINGENT LIABILITIES 32
COMMITMENTS (capital and others) 33
NOTES FORMING PART OF THE FINANCIAL STATEMENTS 1 to 65
In terms of our report attached
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants S. N. SUBRAHMANYAN
Firm’s Registration No.117366W/W-100018 Chief Executive Officer & Managing Director
by the hand of (DIN 02255382)

SANJIV V. PILGAONKAR
Partner R. SHANKAR RAMAN M. M. CHITALE
Membership No. 39826 Whole-time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 00101004)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939

Mumbai, May 12, 2022

495
Integrated Annual Report 2021-22 Consolidated Statement of Profit and Loss

Consolidated Statement of Profit and Loss for the year ended March 31, 2022
v crore
Note 2021-22 2020-21
Continuing operations
INCOME:
Revenue from operations 34 156521.23 135979.03
Other income (net) 35 2267.08 3429.35
Total Income 158788.31 139408.38
EXPENSES:
Manufacturing, construction and operating expenses: 36
Cost of raw materials, components consumed 17100.84 15562.05
Construction materials consumed 33506.21 24558.23
Purchase of stock-in-trade 1069.50 1213.58
Stores, spares and tools consumed 3091.07 2032.89
Sub-contracting charges 24772.33 22316.18
Changes in inventories of finished goods, work-in-progress,
stock-in-trade and property development (2076.60) 343.37
Other manufacturing, construction and operating expenses 16322.62 12983.56
Finance cost of financial services business and finance lease activity 5952.54 7691.04
99738.51 86700.90
Employee benefits expense 37 29733.53 24750.54
Sales, administration and other expenses 38 8831.89 8903.49
Finance costs 39 3125.70 3913.44
Depreciation, amortisation, impairment and obsolescence 2947.95 2904.21
Total Expenses 144377.58 127172.58
Profit before exceptional items and tax 14410.73 12235.80
Tax expense: 51(a)
Current tax 4512.09 3923.39
Deferred tax (295.48) 87.43
4216.61 4010.82
Net profit after tax (before exceptional items) from continuing operations 10194.12 8224.98
Exceptional items before tax 119.70 (3693.78)
Tax expense on exceptional items: 51(a)
Current tax 22.77 48.44
Deferred tax – (186.20)
22.77 (137.76)
Exceptional items (net of tax) 48 96.93 (3556.02)
Net profit after tax from continuing operations 10291.05 4668.96
Share in profit/(loss) after tax of joint ventures/associates (net) 43(f) 128.19 14.40
Profit for the year from continuing operations 10419.24 4683.36
Discontinued operations
Profit before tax from discontinued operations 45(a) – 10790.50
Tax expense of discontinued operations 51(a) – 2552.58
Net profit after tax from discontinued operations – 8237.92
Net profit after tax from continuing operations & discontinued operations 10419.24 12921.28
Other comprehensive income
A Items that will not be reclassified to profit or loss:
Equity instruments through Other comprehensive income – 55.05
Income tax (expenses)/income on equity instruments through Other
comprehensive income – –
– 55.05
Gain/(loss) on remeasurements of the net defined benefit plans 105.88 57.40
Income tax (expenses)/income on remeasurements of the net defined
benefit plans (25.53) (13.69)
80.35 43.71
Share in Other comprehensive income of joint ventures/associates (net) 56.18 (51.76)
B Items that will be reclassified to profit or loss:
Debt instruments through Other comprehensive income (79.51) 123.69
Income tax (expenses)/income on debt instruments through Other
comprehensive income 23.02 (31.14)
(56.49) 92.55
Carried forward - Other comprehensive income 80.04 139.55

496
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Consolidated Statement of Profit and Loss for the year ended March 31, 2022 (contd.)
v crore
Note 2021-22 2020-21
Brought forward - Other comprehensive income 80.04 139.55
Exchange differences in translating the financial statements of foreign
operations 25.58 99.70
Income tax (expenses)/income on exchange differences in translating
the financial statements of foreign operations 6.69 (4.42)
32.27 95.28
Effective portion of gains/(losses) on hedging instruments in a cash
flow hedge 426.78 1717.14
Income tax (expenses)/income on effective portion of gains/(losses) on
hedging instruments in a cash flow hedge (116.50) (479.18)
310.28 1237.96
Cost of hedging reserve 3.06 11.12
Income tax (expenses)/income on cost of hedging reserve (0.77) (2.98)
2.29 8.14
Share in Other comprehensive income of joint ventures/associates (net) 13.47 (26.56)
Other comprehensive income for the year (net of tax) 438.35 1454.37
Total comprehensive income for the year 10857.59 14375.65
Profit for the year attributable to:
Owners of the Company 8669.33 11582.93
Non-controlling interests 1749.91 1338.35
10419.24 12921.28
Other comprehensive income for the year attributable to:
Owners of the Company 329.38 1129.49
Non-controlling interests 108.97 324.88
438.35 1454.37
Total comprehensive income for the year attributable to:
Owners of the Company 8998.71 12712.42
Non-controlling interests 1858.88 1663.23
10857.59 14375.65
Earnings per share (EPS) of R 2 each from continuing operations:
Basic earnings per equity share (R) 55 61.71 23.82
Diluted earnings per equity share (R) 55 61.65 23.80
Earnings per share (EPS) of R 2 each from discontinued operations:
Basic earnings per equity share (R) 55 – 58.67
Diluted earnings per equity share (R) 55 – 58.61
Earnings per share (EPS) of R 2 each from continuing operations &
discontinued operations:
Basic earnings per equity share (R) 55 61.71 82.49
Diluted earnings per equity share (R) 55 61.65 82.41
Face value per equity share (R) 2.00 2.00
NOTES FORMING PART OF THE FINANCIAL STATEMENTS 1 to 65

In terms of our report attached

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants S. N. SUBRAHMANYAN
Firm’s Registration No.117366W/W-100018 Chief Executive Officer & Managing Director
by the hand of (DIN 02255382)

SANJIV V. PILGAONKAR
Partner R. SHANKAR RAMAN M. M. CHITALE
Membership No. 39826 Whole-time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 00101004)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939

Mumbai, May 12, 2022

497
Integrated Annual Report 2021-22 Consolidated Statement of changes in Equity

Consolidated Statement of Changes in Equity for the year ended March 31, 2022
A. Equity share capital
2021-22 2020-21
Particulars Number of v crore Number of v crore
shares shares
Issued, subscribed and fully paid up equity shares outstanding at the beginning of the year 1,40,45,55,297 280.91 1,40,38,92,022 280.78
Add: Shares issued on exercise of employee stock options during the year 4,73,826 0.10 6,63,275 0.13
Issued, subscribed and fully paid up equity shares outstanding at the end of the year 1,40,50,29,123 281.01 1,40,45,55,297 280.91

B. Other equity
v crore
Reserves and surplus Items of Other comprehensive income
Debt Equity
Foreign instruments instruments Total other Non-
Particulars Capital Securities Employee
Capital redemption share Statutory Retained currency Hedging through through equity controlling
interests
Total
reserve reserve premium options reserves earnings translation reserve Other Other
(net) reserve comprehen- comprehen-
sive income sive income
Balance as at 31-3-2020 282.44 42.00 8599.60 401.49 4157.55 52731.64 582.56 (436.92) 65.33 16.75 66442.44 9520.83 75963.27
Profit for the year (a) – – – – – 11582.93 – – – – 11582.93 1338.35 12921.28
Other comprehensive income for the year (b) – – – – – 43.32 82.89 923.89 97.07 (17.68) 1129.49 324.88 1454.37
Total comprehensive income for the year (a+b) – – – – – 11626.25 82.89 923.89 97.07 (17.68) 12712.42 1663.23 14375.65
Issue of equity shares – – 68.05 – – – – – – – 68.05 – 68.05
Transfer to non-financial assets/liabilities – – – – – – – (1.87) – – (1.87) – (1.87)
Transfer from/(to) retained earnings – 260.00 – (8.63) (474.28) 222.21 – – – 0.70 – – –
Employee share options (net) – – – (9.26) – – – – – – (9.26) 76.85 67.59
Dividend paid (including special dividend) – – – – – (3650.89) – – – – (3650.89) (303.03) (3953.92)
Net gain/loss on transactions with non-controlling
interests – – – – – 6.93 – – – – 6.93 (6.93) –
Increase in non-controlling interests due to dilution/
divestment/acquisition/right issue – – – – – 19.80 – – – – 19.80 1100.58 1120.38
Balance as at 31-3-2021 282.44 302.00 8667.65 383.60 3683.27 60955.94 665.45 485.10 162.40 (0.23) 75587.62 12051.53 87639.15

498
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Consolidated Statement of Changes in Equity for the year ended March 31, 2022 (contd.)
v crore
Reserves and surplus Items of Other comprehensive income
Debt Equity
Foreign instruments instruments Non-
Particulars Capital Securities Employee
Capital redemption share Statutory Retained currency Hedging through through Total other controlling Total
Other Other equity interests
reserve reserve premium options reserves earnings translation reserve compre- compre-
(net) reserve hensive hensive
income income
Balance as at 31-3-2021 282.44 302.00 8667.65 383.60 3683.27 60955.94 665.45 485.10 162.40 (0.23) 75587.62 12051.53 87639.15
Profit for the year (c) – – – – – 8669.33 – – – – 8669.33 1749.91 10419.24
Other comprehensive income for the year (d) – – – – – 74.87 30.55 232.31 (64.20) 55.85 329.38 108.97 438.35
Total comprehensive income for the year (c+d) – – – – – 8744.20 30.55 232.31 (64.20) 55.85 8998.71 1858.88 10857.59
Issue of equity shares – – 51.09 – – – – – – – 51.09 – 51.09
Transfer to non-financial assets/liabilities – – – – – – – 1.12 – – 1.12 – 1.12
Transfer from/(to) retained earnings – 33.10 – (12.70) 27.20 (47.60) – – – – – – –
Employee share options (net) – – – 0.75 – – – – – – 0.75 90.35 91.10
Dividend paid – – – – – (2528.46) – – – – (2528.46) (494.99) (3023.45)
Net gain/(loss) on transactions with non-controlling
interests – – – – – 3.77 – – – – 3.77 (3.77) –
Decrease in non-controlling interest due to dilution/
divestment/acquisition – – – – – 12.05 – – – – 12.05 (535.93) (523.88)
Balance as at 31-3-2022 282.44 335.10 8718.74 371.65 3710.47 67139.90 696.00 718.53 98.20 55.62 82126.65 12966.07 95092.72

In terms of our report attached

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants S. N. SUBRAHMANYAN
Firm’s Registration No.117366W/W-100018 Chief Executive Officer & Managing Director
by the hand of (DIN 02255382)

SANJIV V. PILGAONKAR
Partner R. SHANKAR RAMAN M. M. CHITALE
Membership No. 39826 Whole-time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 00101004)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939

Mumbai, May 12, 2022

499
Integrated Annual Report 2021-22 Consolidated Statement of Cash Flows

Consolidated Statement of Cash Flows for the year ended March 31, 2022
v crore
2021-22 2020-21
A. Cash flow from operating activities:
Profit before tax (excluding exceptional items) from:
Continuing operations 14410.73 12235.80
Discontinued operations – 10790.50
Profit before tax including discontinued operations (excluding exceptional items) 14410.73 23026.30
Adjustments for:
Dividend received (4.12) (28.47)
Depreciation, amortisation, impairment and obsolescence 2947.95 2904.21
Exchange difference on items grouped under financing/investing activities (108.09) (75.47)
Effect of exchange rate changes on cash and cash equivalents (41.25) 74.98
Unrealised (gain)/loss on finance leases – (14.55)
Finance costs 3125.70 3913.44
Interest income (1053.65) (1375.68)
(Profit)/loss on sale of fixed assets (net) (17.60) (528.81)
(Profit)/loss on sale/fair valuation of investments (net) (440.14) (1118.77)
(Gain)/loss on disposal of discontinued operations – (10707.92)
Employee stock option-discount 135.31 137.67
Non-cash items related to discontinued operations – 3.13
(Gain)/loss on disposal of subsidiary (1.65) –
Impairment of investment in debt instruments 12.00 151.26
Impairment recognised on non-current assets held for sale – 0.23
(Gain)/loss on de-recognition of lease liability/right-of-use assets (6.11) (15.78)
Interest expenses/(income) related to discontinued operations – 1.16
Operating profit before working capital changes 18959.08 16346.93
Adjustments for:
(Increase)/decrease in trade and other receivables (9833.40) 3011.51
(Increase)/decrease in inventories (74.33) 348.90
Increase/(decrease) in trade payables and customer advances 9659.71 2219.78
Cash generated from operations before financing activities 18711.06 21927.12
(Increase)/decrease in loans and advances towards financing activities 5004.65 4617.71
Cash generated from operations 23715.71 26544.83
Direct taxes refund/(paid) [net] (4552.13) (3471.01)
Net cash (used in)/from operating activities 19163.58 23073.82
B. Cash flow from investing activities:
Purchase of fixed assets (3110.63) (1807.70)
Sale of fixed assets 70.75 885.36
Purchase of non-current investments (2156.24) (1873.24)
Sale of non-current investments 1026.06 240.19
(Purchase)/sale of current investments (net) 1437.04 (16841.55)
Change in other bank balance and cash not available for immediate use (2729.33) 688.10
Deposits/loans given to associates, joint ventures and third parties (148.03) (151.59)
Interest received 968.55 1273.47
Dividend received from joint ventures 156.83 174.38
Dividend received from other investments 4.12 28.47
Consideration received on disposal of subsidiaries 1005.73 295.78
Net proceeds/(payments) for transfer of discontinued operations (net of tax) (59.52) 11530.82
Consideration paid on acquisition of subsidiaries (87.85) (121.77)
Cash and cash equivalents acquired pursuant to acquisition of subsidiaries 9.91 7.07
Cash and cash equivalents of subsidiaries discharged pursuant to (divestment)/classification to held for sale (55.07) 13.69
Net cash (used in)/from investing activities (3667.68) (5658.52)

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Consolidated Statement of Cash Flows for the year ended March 31, 2022 (contd.)
v crore
2021-22 2020-21
C. Cash flow from financing activities:
Proceeds from issue of share capital (including share application money) [net] 10.97 15.85
Proceeds from non-current borrowings [Note 50] 24654.13 36258.60
Repayment of non-current borrowings [Note 50] (35806.44) (38839.86)
Proceeds from/(repayment of) other borrowings (net) [Note 50] 2739.13 (6151.20)
Payment (to)/from non-controlling interest (net) (1019.59) 796.02
Settlement of derivative contracts related to borrowings 143.82 66.73
Dividends paid (2528.38) (3650.89)
Repayment of lease liability [Note 50] (407.20) (381.64)
Interest paid on lease liability (155.59) (203.57)
Interest paid (including cash flows on account of interest rate swaps) (2812.33) (3184.42)
Net cash (used in)/from financing activities (15181.48) (15274.38)
Net (decrease)/increase in cash and cash equivalents (A + B + C) 314.42 2140.92
Cash and cash equivalents at beginning of the year [Note 14] 13373.52 11324.57
Effect of exchange rate changes on cash and cash equivalents 82.30 (90.11)
Cash and cash equivalents for discontinued operations (classified as held for sale) – (1.86)
Cash and cash equivalents at end of the year [Note 14] 13770.24 13373.52

Notes:
1. Statement of Cash Flows has been prepared under the indirect method as set out in the Indian Accounting Standard (Ind AS) 7 “Statement of Cash
Flows” as specified in the Companies (Indian Accounting Standards) Rules, 2015.
2. Fixed assets include property, plant and equipment, investment property and intangible assets adjusted for movement of (a) capital work-in-progress
for property, plant and equipment and investment property and (b) Intangible assets under development during the year.
3. Previous year’s figures have been regrouped/reclassified wherever applicable.

In terms of our report attached

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants S. N. SUBRAHMANYAN
Firm’s Registration No.117366W/W-100018 Chief Executive Officer & Managing Director
by the hand of (DIN 02255382)

SANJIV V. PILGAONKAR
Partner R. SHANKAR RAMAN M. M. CHITALE
Membership No. 39826 Whole-time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 00101004)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939

Mumbai, May 12, 2022

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Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements

NOTE [1](i)
Company Overview
The Consolidated Financial Statements comprise financial statements of “Larsen & Toubro Limited” (“L&T”, the “Parent Company”) and its
subsidiaries (collectively referred to as “the Group”) for the year ended March 31, 2022.

The principal activities of the Group, its Joint Ventures and associates consist of providing Engineering and Construction solutions in key
sectors such as Infrastructure, Hydrocarbon, Power, Process Industries and Defence Engineering, Information Technology and Financial
Services. Further details of the business operations of the Group are mentioned in Note [46] Segment Information.

NOTE [1](II)
Significant Accounting Policies
(a) Statement of compliance
The Group’s financial statements have been prepared in accordance with the provisions of the Companies Act, 2013 and the Indian
Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and amendments thereto issued
by the Ministry of Corporate Affairs under section 133 of the Companies Act, 2013. In addition, the guidance notes/announcements
issued by the Institute of Chartered Accountants of India (ICAI) are also applied except where compliance with other statutory
promulgations require a different treatment. These financials statements have been approved for issue by the Board of Directors at its
meeting held on May 12, 2022.

(b) Basis of accounting

The Group maintains its accounts on accrual basis following historical cost convention, except for certain assets and liabilities that are
measured at fair value in accordance with Ind AS.

Fair value measurements are categorised as below based on the degree to which the inputs to the fair value measurements are
observable and the significance of the inputs to the fair value measurement in its entirety:

(i) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at
measurement date;

(ii) Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the assets or liabilities, either directly
or indirectly; and

(iii) Level 3 inputs are unobservable inputs for the valuation of assets or liabilities.

Above levels of fair value hierarchy are applied consistently and generally, there are no transfers between the levels of the fair value
hierarchy unless the circumstances change warranting such transfer.

(c) Presentation of financial statements

The Balance Sheet, the Statement of Profit and Loss and the Statement of Changes in Equity are prepared and presented in the format
prescribed in the Schedule III to the Companies Act, 2013 (the Act). The Statement of Cash Flows has been prepared and presented
in accordance with Ind AS 7 “Statement of Cash Flows”. The disclosures with respect to items in the Balance Sheet and Statement of
Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the financial statements along
with the other notes required to be disclosed under the notified Accounting Standards and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 as amended.

Amounts in the financial statements are presented in Indian Rupees in crore [1 crore = 10 million] rounded off to two decimal places as
permitted by Schedule III to the Act. Per share data are presented in Indian Rupees to two decimal places.

(d) Basis of consolidation

(i) The consolidated financial statements incorporate the financial statements of the Parent Company and its subsidiaries. For this
purpose, an entity which is, directly or indirectly, controlled by the Parent Company is treated as subsidiary. The Parent Company
together with its subsidiaries constitute the Group. Control exists when the Parent Company, directly or indirectly, has power over
the investee, is exposed to variable returns from its involvement with the investee and has the ability to use its power to affect its
returns.

(ii) Consolidation of a subsidiary begins when the Parent Company, directly or indirectly, obtains control over the subsidiary and ceases
when the Parent Company, directly or indirectly, loses control of the subsidiary. Income and expenses of a subsidiary acquired are
included in the Consolidated Statement of Profit and Loss from the date the Parent Company, directly or indirectly, gains control
until the date when the Parent Company, directly or indirectly, ceases to control the subsidiary.

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Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
(iii) The consolidated financial statements of the Group combine financial statements of the Parent Company and its subsidiaries
line-by-line by adding together the like items of assets, liabilities, income and expenses. All intra-group assets, liabilities, income,
expenses and unrealised profits/losses on intra-group transactions are eliminated on consolidation. The accounting policies of
subsidiaries are harmonised to ensure the consistency with the policies adopted by the Parent Company. The consolidated financial
statements are presented to the extent possible, in the same manner as Parent Company’s standalone financial statements.

Profit or loss and other comprehensive income are attributed to the owners of the Parent Company and to the non-controlling
interests, shown separately in the financial statements.

(iv) Non-controlling interests represent that part of the total comprehensive income and net assets of subsidiaries attributable to the
interest which is not owned, directly or indirectly, by the Parent Company.

(v) The gains/losses in respect of part divestment/dilution of stake in subsidiary companies not resulting in ceding of control, are
recognised directly in other equity attributable to the owners of the Parent Company in the Consolidated Financial Statements of
the Group.

(vi) The gains/losses in respect of divestment of stake resulting in ceding of control in subsidiary companies are recognised in the
Statement of Profit and Loss. The investment representing the interest retained in a former subsidiary, if any, is initially recognised
at its fair value with the corresponding effect recognised in the Statement of Profit and Loss as on the date the control is ceded.
Such retained interest is subsequently accounted as investment in an associate or a joint venture or as a financial asset.

(e) Investments in joint ventures and associates

When the Group has with other entities joint control of the arrangement and rights to the net assets of the joint arrangement, it
recognises its interest as joint ventures. Joint control exists when the decisions about the relevant activities (i.e. activities that significantly
affects the investee’s returns) require unanimous consent of the parties sharing the control. When the Group has significant influence
over the other entity, it recognises such interest as investment in associates. Significant influence is the power to participate in the
financial and operating policy decisions of the entity but is not control or joint control over the entity.

The results, assets and liabilities of joint ventures and associates are incorporated in the consolidated financial statements using equity
method of accounting after making necessary adjustments to achieve uniformity in application of accounting policies, wherever required.

An investment in joint venture or associate is initially recognised at cost and adjusted thereafter to recognise the Group’s share of profit
or loss and other comprehensive income of the joint venture or associate. Gain or loss in respect of changes in Other Equity of joint
ventures or associates resulting from divestment or dilution of stake in the joint ventures and associates is recognised in the Statement
of Profit and Loss. On acquisition of investment in a joint venture or associate, any excess of cost of investment over the fair value of the
assets and liabilities of the joint venture and associate, is recognised as goodwill and is included in the carrying value of the investment
in the joint venture and associate. The excess of fair value of assets and liabilities over the investment is recognised directly in equity as
capital reserve.

The unrealised profits/losses on transactions with joint ventures and associates are eliminated by reducing the carrying amount of
investment.

The carrying amount of investment in joint ventures and associates is reduced to recognise impairment, if any, when there is evidence of
impairment.

When the Group’s share of losses of a joint venture or an associate exceeds the Group’s interest in that joint venture or the associate
(which includes any long-term interests that, in substance, form part of the Group’s net investment in the joint venture or the associate),
the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has
incurred legal or constructive obligations or made payments on behalf of the joint venture or the associate.

(f) Interests in joint operations

When the Group has joint control of the arrangement based on contractually determined right to the assets and obligations for liabilities,
it recognises such interests as joint operations. Joint control exists when the decisions about the relevant activities (i.e. activities that
significantly affects the investee’s returns) require unanimous consent of the parties sharing the control. In respect of its interests in joint
operations, the Group recognises its share in assets, liabilities, income and expenses line-by-line in the standalone financial statements
of the entity which is party to such joint arrangement, thereby forms part of the consolidated financial statements. Interests in joint
operations are included in the segments to which they relate.

(g) Business combination/Goodwill on consolidation

The Group accounts for business combinations under acquisition method of accounting. Acquisition-related costs are recognised in the
Statement of Profit and Loss as incurred. The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the condition for
recognition are recognised at their fair values at the acquisition date.

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Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
Goodwill arising on consolidation of acquisitions represents the excess of (a) consideration paid for acquiring control and (b) acquisition
date fair value of previously held ownership interest, if any, in a subsidiary over the Group’s share in the fair value of the net assets
(including identifiable intangibles) of the subsidiary as on the date of acquisition of control. Where the fair value of the identifiable assets
and liabilities exceed the cost of acquisition, the excess is recognised as Capital Reserve.

Goodwill on consolidation is allocated to cash generating units or group of cash generating units that are expected to benefit from the
acquisition.

Goodwill arising on consolidation is tested for impairment annually and not amortised. In the event of cessation of operations of a
subsidiary, the unimpaired goodwill is written off fully.

Business combinations arising from transfers of interests in entities that are under common control are accounted using pooling of
interest method. The difference between consideration given and the aggregate historical carrying amounts of assets and liabilities of the
acquired entity are recorded in shareholders’ equity.

(h) Operating cycle for current and non-current classification

Operating cycle for the business activities of the Group covers the duration of the specific project or contract or product line or service
including the defect liability period wherever applicable and extends up to the realisation of receivables (including retention monies)
within the agreed credit period normally applicable to the respective lines of business.

(i) Revenue recognition

Revenue from contracts with customers is recognised when a performance obligation is satisfied by transfer of promised goods or
services to a customer.

For performance obligation satisfied over time, the revenue recognition is done by measuring the progress towards complete satisfaction
of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to date, to the total estimated cost
attributable to the performance obligation.

The Group transfers control of a good or service over time and therefore satisfies a performance obligation and recognises revenue over
a period of time if one of the following criteria is met:

(a) the customer simultaneously consumes the benefit of the company’s performance or

(b) the customer controls the asset as it is being created/enhanced by the company’s performance or

(c) there is no alternative use of the asset and the company has either explicit or implicit right of payment considering legal precedents.

In all other cases, performance obligation is considered as satisfied at a point in time.

The revenue is recognised to the extent of transaction price allocated to the performance obligation satisfied. Transaction price is the
amount of consideration to which the Group expects it to be entitled in exchange for transferring goods or services to a customer
excluding amounts collected on behalf of a third party. The Group includes variable consideration as part of transaction price when
there is a basis to reasonably estimate the amount of the variable consideration and when it is probable that a significant reversal of
cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is resolved.

Variable consideration is estimated using the expected value method or most likely amount as appropriate in a given circumstance.
Payment terms agreed with a customer are as per business practice and the financing component, if significant, is separated from the
transaction price and accounted as interest income.

Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged off in profit & loss
immediately in the period in which such costs are incurred. Incremental costs of obtaining a contract, if any, and costs incurred to fulfill
a contract are amortised over the period of execution of the contract in proportion to the progress measured in terms of a proportion of
actual cost incurred to date, to the total estimated cost attributable to the performance obligation.

Significant judgments are used in:

a. Determining the revenue to be recognised in case of performance obligation satisfied over a period of time. Revenue recognition is
done by measuring the progress towards complete satisfaction of performance obligation.

b. Determining the expected losses, which are recognised in the period in which such losses become probable based on the expected
total contract cost as at the reporting date.

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
c. Determining the method to be applied to arrive at the variable consideration requiring an adjustment to the transaction price.

Revenue includes adjustments made towards liquidated damages and variation wherever applicable. Escalation and other claims, which
are not ascertainable/acknowledged by customers are not taken into account.

A. Revenue from sale of manufactured and traded goods including contracts for supply/commissioning of complex plant and
equipment is recognised as follows:

Revenue is recognised when the control of the same is transferred to the customer and it is probable that the Group will collect
the consideration to which it is entitled for the exchanged goods. Revenue from commissioning of complex plant and equipment is
recognised either ‘over time’ or ‘in time’ based on assessment of the transfer of control as per the terms of the contract.

B. Revenue from construction/project related activity is recognised as follows:

• Cost plus contracts: Revenue from cost plus contracts is recognised over time and is determined with reference to the extent
performance obligations have been satisfied. The amount of transaction price allocated to the performance obligations
satisfied represents the recoverable costs incurred during the period plus the margin as agreed with the customer.

• Fixed price contracts: Contract revenue is recognised over time to the extent of performance obligation satisfied and control
is transferred to the customer. Contract revenue is recognised at allocable transaction price which represents the cost of work
performed on the contract plus proportionate margin, using the percentage of completion method. Percentage of completion
is the proportion of cost of work performed to date, to the total estimated contract costs.

For contracts where the aggregate of contract cost incurred to date plus recognised profits (or minus recognised losses as the case
may be) exceeds the progress billing, the surplus is shown as contract asset and termed as “Due from customers”. For contracts
where progress billing exceeds the aggregate of contract costs incurred to date plus recognised profits (or minus recognised losses,
as the case may be), the surplus is shown as contract liability and termed as “Due to customers”. Amounts received before the
related work is performed are disclosed in the Balance Sheet as contract liability and termed as “Advances from customer”. The
amounts billed on customer for work performed and are unconditionally due for payment i.e. only passage of time is required
before payment falls due, are disclosed in the Balance Sheet as trade receivables. The amount of retention money held by the
customers pending completion of performance milestone is disclosed as part of contract asset and is reclassified as trade receivables
when it becomes due for payment.

Impairment loss (termed as provision for foreseeable losses in the financial statements) is recognised in profit or loss to the extent
the carrying amount of the contract asset exceeds the remaining amount of consideration that the company expects to receive
towards remaining performance obligations (after deducting the costs that relate directly to fulfill such remaining performance
obligations). The Group recognises impairment loss (termed as provision for expected credit loss on contract assets in the financial
statements) on account of credit risk in respect of a contract asset using expected credit loss model on similar basis as applicable to
trade receivables.

C. Revenue from construction/project contracts executed under joint operations [in terms of Ind AS 111 “Joint Arrangements”], is
recognised on the same basis as adopted in respect of contracts independently executed by the Group.

D. Revenue from property development activities is recognised when performance obligation is satisfied, customer obtains control of
the property transferred and a reasonable expectation of collection of the sale consideration from the customer exists.

E. In the case of the developmental project business and the realty business, revenue includes profit on sale of investment properties
or sale of stake in the subsidiary and/or joint venture companies as the sale/divestments are inherent in the business model.

F. Rendering of services

Revenue from rendering of services is recognised over time as the customer receives the benefit of the company’s performance and
the company has an enforceable right to payment for services transferred.

Unbilled revenue represents value of services performed in accordance with the contract terms but not billed.

In respect of information technology business and technology services business, revenue from contracts awarded on time and
material basis is recognised over a period of time when relevant services are rendered and related costs are incurred. Revenue from
fixed price contracts is recognised over a period of time using the proportionate completion method.

Revenue from contracts for rendering of engineering design services and other services which are directly related to the
construction of an asset is recognised on the same basis as stated in (i) B Supra.

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Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
G. In respect of financial services business and finance lease activity, income from interest-bearing loans/lease is recognised on accrual
basis over the life of the loans/lease based on the effective yield. Income from bill discounting, advisory and syndication services and
other financing activities is accounted on accrual basis.

H. Revenue on account of construction services rendered in connection with Build-Operate-Transfer (BOT) projects undertaken by
the Group is recognised during the period of construction using percentage of completion method. After the completion of
construction period, revenue from fare/toll charges from users of facilities is accounted when they are collected.

I. Commission income is recognised when the terms of the contract are fulfilled.

J. Course fees/subscription income is recognised over time as per the course/subscription duration and agreed terms.

K. Income from investment management fees is recognised in accordance with the contractual terms and the SEBI regulations based
on average Assets Under Management (AUM) of mutual fund schemes over the period of the agreement in terms of which services
are performed. Portfolio management fees are recognised in accordance with the related contracts entered into with the clients
over the period of the agreement. Trusteeship fees are accounted on accrual basis.

L. Revenue from charter hire is recognised as per the terms of the time charter agreement.

M. Revenue from operation and maintenance services of power plant receivable under the Power Purchase Agreement is recognised on
accrual basis.

N. Other operational revenue represents income earned from the activities incidental to the business and is recognised when the
performance obligation is satisfied and the right to receive the income is established as per the terms of the contract.

(j) Other income

A. Interest income on investments and loans is accrued on a time basis by reference to the principal outstanding and the
effective interest rate including interest on investments classified as fair value through profit or loss or fair value through other
comprehensive income. Interest receivable on customer dues is recognised as income in the Statement of Profit and Loss on accrual
basis provided there is no uncertainty of realisation.

B. Dividend income is accounted in the period in which the right to receive the same is established.

C. Government grants, which are revenue in nature and are towards compensation for the qualifying costs incurred by the Group,
are recognised as other income/reduced from underlying expenses in profit or loss in the period in which such costs are incurred.
Government grants related to an asset are reduced from the cost of an asset until the asset is ready to use and the grant post that
is presented as deferred income. Subsequently the grant is recognised as income in profit or loss on a systematic basis over the
expected useful life of the related asset. Government grant receivable in the form of duty credit scrips is recognised as other income
in the Statement of Profit and Loss in the period in which the application is made to the government authorities and to the extent
there is no uncertainty towards its receipt.

D. Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic
benefits will flow to the Group and the amount of income can be measured reliably.

(k) Exceptional items

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the
performance of the Group is treated as an exceptional item and the same is disclosed in Statement of Profit and Loss and in the notes
forming part of the financial statements.

(l) Property, Plant and Equipment (PPE)

PPE is recognised when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the
item can be measured reliably. PPE is stated at original cost net of tax/duty credits availed, if any, less accumulated depreciation and
cumulative impairment, if any.

All directly attributable costs related to the acquisition of PPE and borrowing costs in case of qualifying assets are capitalised in
accordance with the Group’s accounting policy.

Own manufactured PPE is capitalised at cost including an appropriate share of overheads. Administrative and other general overhead
expenses that are specifically attributable to construction or acquisition of PPE or bringing the PPE to working condition are allocated and
capitalised as a part of the cost of the PPE.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the entity and the cost can be measured reliably.

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Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
PPE not ready for the intended use on the date of the Balance Sheet are disclosed as “capital work-in-progress”. (Also refer to the
policies on leases, borrowing costs, impairment of assets and foreign currency transactions Infra).

Depreciation is recognised using straight-line method so as to write off the cost of the assets (other than freehold land and capital
work-in-progress) less their residual values over their useful life specified in Schedule II to the Act, or in case of assets where the useful
life was determined by technical evaluation, over the useful life so determined. Depreciation method is reviewed at each financial year
end to reflect the expected pattern of consumption of the future economic benefits embodied in the asset. The estimated useful life and
residual values are also reviewed at each financial year end with the effect of any change in the estimates of useful life/residual value is
accounted on prospective basis.

Depreciation charge for impaired assets is adjusted in future periods in such a manner that the revised carrying amount of the asset is
allocated over its remaining useful life.

Where cost of a part of the asset (“asset component”) is significant to total cost of the asset and useful life of that part is different from
the useful life of the remaining asset, useful life of that significant part is determined separately and such asset component is depreciated
over its separate useful life.

Depreciation on additions to owned assets is calculated pro rata from the date it is ready for use.

PPE is derecognised upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on
derecognition is recognised in the Statement of Profit and Loss in the same period.

(m) Investment property

Properties (including those under construction) held to earn rentals and/or capital appreciation are classified as investment property and
are measured and reported at cost, including transaction costs and borrowing cost capitalised for qualifying assets, in accordance with
the Group’s accounting policy. Policies with respect to depreciation, useful life and derecognition are on the same basis as stated in PPE
supra.
(n) Intangible assets
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to the
enterprise and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/duty credits availed, if
any, including borrowing costs capitalised for qualifying assets and reduced by accumulated amortisation and cumulative impairment. All
directly attributable costs and other administrative and other general overhead expenses that are specifically attributable to acquisition of
intangible assets are allocated and capitalised as a part of the cost of the intangible assets.

Research and development expenditure on new products:

(i) Expenditure on research is expensed under respective heads of account in the period in which it is incurred

(ii) Development expenditure on new products is capitalised as intangible asset, if all of the following can be demonstrated:

A. the technical feasibility of completing the intangible asset so that it will be available for use or sale;
B. the Group has intention to complete the intangible asset and use or sell it;

C. the Group has ability to use or sell the intangible asset;

D. the manner in which the probable future economic benefits will be generated including the existence of a market for output
of the intangible asset or intangible asset itself or if it is to be used internally, the usefulness of intangible assets;

E. the availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset; and

F. the Group has ability to reliably measure the expenditure attributable to the intangible asset during its development.

Development expenditure that does not meet the above criteria is expensed in the period in which it is incurred.

Fare collection rights obtained in consideration for rendering construction services represent the right to collect fare during the
concession period in respect of Build-Operate-Transfer (BOT) projects undertaken by the Group. Fare collection rights are capitalised
as intangible asset upon completion of the project at the cumulative construction costs including related margins.

Intangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as “intangible assets under
development”.

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Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
Intangible assets are amortised on straight-line basis over the estimated useful life. The method of amortisation and useful life are
reviewed at the end of each accounting year with the effect of any changes in the estimate being accounted for on a prospective
basis. The estimated useful life for major categories of the intangible assets are as follows:

(i) Specialised software: over a period of three to ten years;

(ii) Technical know-how: over a period of three to seven years;

(iii) New product design and development: over a period of five years;

(iv) Customer contracts and relationship: over a period of the contract which generally is over three to ten years;

(v) Trade name: over a period of three months to five years;

(vi) Rights under licensing agreement: over a period of six years;

(vii) Intangible assets with indefinite useful life that are acquired separately are carried at cost less accumulated impairment losses;

(viii) Fare collection rights are amortised using the straight-line method over the period of concession; and

(ix) Amortisation on impaired assets is provided by adjusting the amortisation charge in the remaining periods so as to allocate the
asset’s revised carrying amount over its remaining useful life.

(o) Impairment of assets

As at the end of each accounting year, the carrying amounts of PPE, investment property and intangible assets are reviewed to determine
whether there is any indication that those assets have suffered an impairment loss. If such indication exists, the PPE, investment property
and intangible assets are tested for impairment so as to determine the impairment loss, if any. Goodwill and the intangible assets with
indefinite useful life are tested for impairment each year.

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is determined:

(i) in the case of an individual asset, at the higher of fair value less costs to sell and the value-in-use; and

(ii) in the case of a cash generating unit (the smallest identifiable group of assets that generates independent cash flows), at the higher
of the cash generating unit’s fair values less costs to sell and the value-in-use.

(The amount of value-in-use is determined as the present value of estimated future cash flows from the continuing use of an asset,
which may vary based on the future performance of the entity and from its disposal at the end of its useful life. For this purpose, the
discount rate (pre-tax) is determined based on the weighted average cost of capital of the company suitably adjusted for risks specified
to the estimated cash flows of the asset).

If recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, such deficit is recognised
immediately in the Statement of Profit and Loss as impairment loss and the carrying amount of the asset (or cash generating unit) is
reduced to its recoverable amount. For this purpose, the impairment loss recognised in respect of a cash generating unit is allocated first
to reduce the carrying amount of any goodwill allocated to such cash generating unit and then to reduce the carrying amount of the
other assets of the cash generating unit on a pro-rata basis.

When an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit), except for allocated
goodwill, is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the
carrying amount that would have been determined had no impairment loss is recognised for the asset (or cash generating unit) in prior
years. A reversal of an impairment loss (other than impairment loss allocated to goodwill) is recognised immediately in the Statement of
Profit and Loss.

(p) Employee benefits

(i) Short-term employee benefits:
Employee benefits such as salaries, wages, short term compensated absences, bonus, ex-gratia, and performance-linked rewards
falling due wholly within twelve months of rendering the service are classified as short term employee benefits and are expensed in
the period in which the employee renders the service.

(ii) Post-employment benefits:

A. Defined contribution plans: The Group’s superannuation scheme, state governed provident fund scheme, employee state
insurance scheme, social security contributions and employee pension scheme are defined contribution plans. The contribution
paid/payable under the schemes is recognised during the period in which the employee renders the service.

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
B. Defined benefit plans: The employees’ gratuity fund schemes and employee provident fund schemes managed by board of
trustees established by the company, the post-retirement medical care plan and the Parent Company pension plan represent
defined benefit plans. The present value of the obligation under defined benefit plans is determined based on actuarial
valuation using the Projected Unit Credit Method.

The obligation towards defined benefit plans is measured at the present value of the estimated future cash flows using a discount
rate based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of
the defined benefit obligations at the Balance Sheet date.

Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest
on the net defined benefit liability or asset) and any change in the effect of asset ceiling (if applicable) is recognised in other
comprehensive income and is reflected in retained earnings and the same is not eligible to be reclassified to profit or loss.

Defined benefit costs comprising current service cost, past service cost and gains or losses on settlements are recognised in the
Statement of Profit and Loss as employee benefits expense. Interest cost implicit in defined benefit employee cost is recognised in
the Statement of Profit and Loss under finance cost. Gains or losses on settlement of any defined benefit plan are recognised when
the settlement occurs. Past service cost is recognised as expense at the earlier of the plan amendment or curtailment and when the
Group recognises related restructuring costs or termination benefits.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans to
recognise the obligation on a net basis.

(iii) Long term employee benefits:

The obligation recognised in respect of long term benefits such as compensated absences, long service award etc. is measured at
present value of estimated future cash flows expected to be made by the Group and is recognised in a similar manner as in the case
of defined benefit plans vide (ii) B Supra.

Long term employee benefit costs comprising current service cost and gains or losses on curtailments and settlements,
re-measurements including actuarial gains and losses are recognised in the Statement of Profit and Loss as employee benefits
expenses. Interest cost implicit in long term employee benefit costs is recognised in the Statement of Profit and Loss under finance
cost.

(iv) Termination benefits:

Termination benefits such as compensation under employee separation schemes are recognised as expense when the company’s
offer of the termination benefit can no longer be withdrawn or when the Group recognises the related restructuring costs,
whichever is earlier.

(q) Leases
Assets taken on lease are accounted as right-of-use assets and the corresponding lease liability is recognised at the lease commencement
date.

Initially the right-of-use asset is measured at cost which comprises the initial amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the
underlying asset or to restore the underlying asset or the site on which it is located, as reduced by any lease incentives received.

The lease liability is initially measured at the present value of the lease payments, discounted using the Group’s incremental borrowing
rate. It is remeasured when there is a change in future lease payments arising from a change in an index or a rate, or a change in the
estimate of the guaranteed residual value, or a change in the assessment of purchase, extension or termination option. When the lease
liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in
profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The right-of-use asset is measured by applying cost model i.e. right-of-use asset at cost less accumulated depreciation and impairment
losses. The right-of-use asset is depreciated using the straight-line method from the commencement date to the end of the lease term
or useful life of the underlying asset whichever is earlier. Carrying amount of lease liability is increased by interest on lease liability and
reduced by lease payments made.

Lease payments associated with following leases are recognised as expense on straight-line basis:

(i) Low value leases; and

(ii) Leases which are short term.

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Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
Assets given on lease are classified either as operating lease or as finance lease. A lease is classified as a finance lease if it transfers
substantially all the risks and rewards incidental to ownership of an underlying asset. Asset held under finance lease is initially recognised
in balance sheet and presented as a receivable at an amount equal to the net investment in the lease. Finance income is recognised over
the lease term, based on a pattern reflecting a constant periodic rate of return on Groups’ net investment in the lease. A lease which is
not classified as a finance lease is an operating lease.

The Group recognises lease payments in case of assets given on operating leases as income on a straight-line basis. The Group presents
underlying assets subject to operating lease in its balance sheet under the respective class of asset.

(Also refer to policy on depreciation, supra)

(r) Financial instruments
Financial assets and/or financial liabilities are recognised when the Group becomes party to a contract embodying the related financial
instruments. All financial assets, financial liabilities and financial guarantee contracts are initially measured at transaction values and
where such values are different from fair value, at fair value. Transaction costs that are attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or
deducted from, as the case may be, the fair value of such financial assets or liabilities on initial recognition. Transaction costs directly
attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised in profit or loss.

A financial asset and a financial liability is offset and presented on net basis in the balance sheet when there is a current legally
enforceable right to set-off the recognised amounts and it is intended to either settle on net basis or to realise the asset and settle the
liability simultaneously.

(i) Financial assets

A. All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, as follows:

1. Investments in debt instruments that are designated as fair value through profit or loss (FVTPL) - at fair value

2. Other investments in debt instruments – at amortised cost (unless the same are designated as fair value through profit or
loss), subject to following conditions:

• The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows;
and

• The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.

3. Debt instruments that meet the following conditions are subsequently measured at fair value through other
comprehensive income [FVTOCI] (unless the same are designated as fair value through profit or loss)

• The asset is held within a business model whose objective is achieved both by collecting contractual cash flows and
selling financial assets; and

• The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal
and interest on the principal amount outstanding.

4. Debt instruments at FVTPL is a residual category for debt instruments, if any, and all changes are recognised in profit or
loss.

5. Investments in equity instruments are classified as FVTPL, unless the related instruments are not held for trading and the
Group irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income.

6. Trade receivables, security deposits, cash and cash equivalents, employee and other advances – at amortised cost.

7. The Group has elected to measure the investments in associates and joint ventures held through unit trusts at FVTPL.

B. For financial assets that are measured at FVTOCI, income by way of interest and dividend, provision for impairment and
exchange difference, if any, (on debt instrument) are recognised in profit or loss and changes in fair value (other than on
account of above income or expense) are recognised in other comprehensive income and accumulated in other equity. On
disposal of debt instruments at FVTOCI, the cumulative gain or loss previously accumulated in other equity is reclassified
to profit or loss. In case of equity instruments at FVTOCI, such cumulative gain or loss is not reclassified to profit or loss on
disposal of investments.

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
C. A financial asset is primarily derecognised when:

1. the right to receive cash flows from the asset has expired, or

2. the group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a pass-through arrangement; and a) the group
has transferred substantially all the risks and rewards of the asset, or b) the group has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount at the date of derecognition
and the consideration received is recognised in profit or loss.

D. Impairment of financial assets: The Group recognises impairment loss on trade receivables using expected credit loss model
which involves use of a provision matrix constructed on the basis of historical credit loss experience as permitted under Ind AS
109 and is adjusted for forward looking information.

For all other financial assets, expected credit losses are recognised based on the difference between the contractual cashflows
and all the expected cash flows, discounted at the original effective interest rate. ECLs are measured at an amount equal to
12-month expected credit losses or at an amount equal to lifetime expected credit losses if the credit risk on the financial asset
has increased significantly since initial recognition.

In respect of financial services business, the Group applies a separate model of the expected credit loss for recognising
impairment loss on financial assets measured at amortised cost, debt instruments at FVTOCI, lease receivables, trade
receivables and other contractual rights to receive cash or other financial asset and financial guarantees not designated as at
FVTPL as follows:

• Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the
weights. Credit loss is the difference between all contractual cash flows that are due to the Group in accordance with
the contract and all the cash flows that the Group expects to receive (i.e. all cash shortfalls), discounted at the original
effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial
assets). The Group estimates cash flows by considering all contractual terms of the financial instrument (for e.g.
prepayment, extension, call and similar options) through the expected life of that financial instrument.

• The loss allowance for a financial instrument is measured at an amount equal to the lifetime expected credit losses if the
credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk on a financial
instrument has not increased significantly since initial recognition, the loss allowance for that financial instrument is
measured at an amount equal to 12-month expected credit losses. 12-month expected credit losses are portion of the
lifetime expected credit losses and represent the lifetime cash shortfalls that will result if default occurs within the 12
months weighted by the probability of default after the reporting date and thus, are not cash shortfalls that are predicted
over the next 12 months.

• When making the assessment of whether there has been a significant increase in credit risk since initial recognition, the
change in the risk of a default occurring over the expected life of the financial instrument is used instead of the change in
the amount of expected credit losses. To make that assessment, the risk of a default occurring on the financial instrument
as at the reporting date is compared with the risk of a default occurring on the financial instrument as at the date of
initial recognition using reasonable and supportable information, that is available without undue cost or effort.

(ii) Financial liabilities

A. Financial liabilities, including derivatives and embedded derivatives, which are designated for measurement at FVTPL are
subsequently measured at fair value. Financial guarantee contracts are subsequently measured at the amount of impairment
loss allowance or the amount recognised at inception net of cumulative amortisation, whichever is higher. All other financial
liabilities including loans and borrowings, trade and other payables are initially recognised at fair value and subsequently
measured at amortised cost using Effective Interest Rate (EIR) method.

B. A financial liability is derecognised when the related obligation expires or is discharged or cancelled.

(iii) The Group designates certain hedging instruments such as derivatives, embedded derivatives and in respect of foreign currency risk,
certain non-derivatives as either fair value hedges, cash flow hedges, or hedges of net investments in foreign operations. Hedges of
foreign exchange risk on firm commitments are accounted as cash flow hedges.

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Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
A. Fair value hedges: Changes in fair value of the designated portion of derivatives that qualify as fair value hedges are
recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are
attributable to the hedged risk. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated,
or exercised, or when it no longer qualifies for hedge accounting. The fair value adjustment to the carrying amount of the
hedged item arising from the hedged risk is amortised to profit or loss from that date.

B. Cash flow hedges: In case of transaction related hedges, the effective portion of changes in the fair value of derivatives that
are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated in equity as
‘hedging reserve’. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss. Amounts
previously recognised in other comprehensive income and accumulated in equity relating to the effective portion are
reclassified to profit or loss in the periods when the hedged item affects profit or loss, in the same head as the hedged item.
The effective portion of the hedge is determined at the lower of the cumulative gain or loss on the hedging instrument from
inception of the hedge and the cumulative change in the fair value of the hedged item from the inception of the hedge and
the remaining gain or loss on the hedging instrument is treated as ineffective portion.

In case of time period related hedges, the premium element and the spot element of a forward contract is separated and
only the change in the value of the spot element of the forward contract is designated as the hedging instrument. Similarly,
wherever applicable, the foreign currency basis spread is separated from the financial instrument and is excluded from the
designation of that financial instrument as the hedging instrument in case of time period related hedges. The changes in the
fair value of the premium element of the forward contract or the foreign currency basis spread of the financial instrument is
accumulated in a separate component of equity as ‘cost of hedging reserve’. The changes in the fair value of such premium
element or foreign currency basis spread are reclassified to profit or loss as a reclassification adjustment on a straight-line basis
over the period of the forward contract or the financial instrument.

The cash flow hedges are allocated to the forecast transactions on gross exposure basis. Where the hedged forecast
transaction results in the recognition of a non-financial asset, such gains/losses are transferred from hedge reserve (but not as
reclassification adjustment) and included in the initial measurement cost of the non-financial asset.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or when it no
longer qualifies for hedge accounting. Any gain or loss recognised in other comprehensive income and accumulated in equity
at that time remains in equity and is recognised in profit or loss when the forecast transaction is ultimately recognised in profit
or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognised in
profit or loss.

(iv) Compound financial instruments issued by the Group which can be converted into fixed number of equity shares at the option
of the holders irrespective of changes in the fair value of the instrument are accounted by recognising the liability and the
equity components separately. The liability component is initially recognised at the fair value of a comparable liability that
does not have an equity conversion option. The equity component is initially recognised at the difference between the fair
value of the compound financial instrument as a whole and the fair value of the liability component. The directly attributable
transaction costs are allocated to the liability and the equity components in proportion to their initial carrying amounts.

Subsequent to initial recognition, the liability component of the compound financial instrument is measured at amortised
cost using the effective interest method. The equity component of a compound financial instrument is not remeasured
subsequently.

(s) Inventories
Inventories are valued after providing for obsolescence, as under:

(i) Raw materials, components, construction materials, stores, spares and loose tools at lower of weighted average cost or net
realizable value. However, these items are considered to be realisable at cost if the finished products in which they will be used, are
expected to be sold at or above cost.

(ii) Manufacturing work-in-progress at lower of weighted average cost including related overheads or net realisable value. In some
cases, manufacturing work-in-progress are valued at lower of specifically identifiable cost or net realisable value. In the case of
qualifying assets, cost also includes applicable borrowing costs vide policy relating to borrowing costs.

(iii) Finished goods and stock-in-trade (in respect of goods acquired for trading) at lower of weighted average cost or net realisable
value. Cost includes costs of purchases, costs of conversion and other costs incurred in bringing the inventories to their present
location. Taxes which are subsequently recoverable from taxation authorities are not included in the cost.

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
(iv) Completed property/work-in-progress (including land) in respect of property development activity at lower of specifically identifiable
cost or net realisable value.

Assessment of net realisable value is made at each reporting period end and when the circumstances that previously caused inventories
to be written-down below cost no longer exist or when there is clear evidence of an increase in net realisable value because of changed
economic circumstances, the write-down, if any, in the past period is reversed to the extent of the original amount written-down so that
the resultant carrying amount is the lower of the cost and the revised net realisable value.

(t) Cash and bank balances

Cash and bank balances include fixed deposits, margin money deposits, earmarked balances with banks and other bank balances which
have restrictions on repatriation. Short term and liquid investments being subject to more than insignificant risk of change in value, are
not included as part of cash and bank balances.

(u) Securities premium

(i) Securities premium includes:

A. The difference between the face value of the equity shares and the consideration received in respect of shares issued.

B. The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Stock Options
Scheme.

(ii) The issue expenses of securities which qualify as equity instruments are written off against securities premium.

(v) Borrowing Costs

Borrowing costs include finance costs calculated using the effective interest method, finance charges in respect of assets acquired on
lease and exchange differences arising on foreign currency borrowings, to the extent they are regarded as an adjustment to finance
costs. In cases where hedging instruments are acquired for protection against exchange rate risk related to borrowings and are
accounted as hedging a time-period related hedge item, the borrowing costs also include the amortisation of premium element of the
forward contract and foreign currency basis spread as applicable, over the period of the hedging instrument.

Borrowing costs net of any investment income from the temporary investment of related borrowings that are attributable to the
acquisition, construction or production of a qualifying asset are capitalised/inventoried as part of cost of such asset till such time the
asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready
for its intended use or sale. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

(w) Share-based payment arrangements

The stock options granted to employees in terms of the Group’s Stock Options Schemes, are measured at the fair value of the options
at the grant date. The fair value of the options is treated as discount and accounted as employee compensation cost over the vesting
period on a straight-line basis. The amount recognised as expense in each year is arrived at based on the number of grants expected to
vest. If a grant lapses after the vesting period, the cumulative discount recognised as expense in respect of such grant is transferred to
the retained earnings. The share-based payment equivalent to the fair value as on the date of grant of employee stock options granted
to key managerial personnel is disclosed as a related party transaction in the year of grant.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

(x) Foreign currencies

(i) The functional currency and presentation currency of the Group is Indian Rupee. Functional currency of the Group and foreign
operations has been determined based on the primary economic environment in which the Group and its foreign operations
operate considering the currency in which funds are generated, spent and retained.

(ii) Transactions in currencies other than the Group’s functional currency are recorded on initial recognition using the exchange
rate at the transaction date. At each Balance Sheet date, foreign currency monetary items are reported at the closing spot rate.
Non-monetary items that are measured in terms of historical cost in foreign currency are not translated. Exchange differences that
arise on settlement of monetary items or on reporting of monetary items at each Balance Sheet date at the closing spot rate are
recognised in the Statement of Profit and Loss in the period in which they arise except for:

A. exchange differences on foreign currency borrowings relating to assets under construction for future productive use, are
included in the cost of those assets when such exchange differences are regarded as an adjustment to finance costs on those
foreign currency borrowings;

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Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
B. exchange differences on transactions entered into to hedge certain foreign currency risks; and

C. exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither
planned nor likely to occur or included in the net investment in foreign operation, and are recognised initially in other
comprehensive income and reclassified from equity to profit or loss on repayment of the monetary items.

(iii) Exchange rate as of the date on which the non-monetary asset or non-monetary liability is recognised on payment or receipt of
advance consideration is used for initial recognition of related asset, expense or income.

(iv) Financial statements of foreign operations whose functional currency is different than Indian Rupee are translated into Indian Rupee
as follows:

A. assets and liabilities are translated at the closing rate at the date of that Balance Sheet;

B. income and expenses are translated at average exchange rate for the reporting period; and

C. all resulting exchange differences are recognised in other comprehensive income and accumulated in equity as foreign
currency translation reserve for subsequent reclassification to profit or loss on disposal of such foreign operations. The portion
of foreign currency translation reserve attributed to non-controlling interests is reflected as part of non-controlling interests.

(y) Accounting and reporting of information for Operating Segments

Operating segments are those components of the business whose operating results are regularly reviewed by the chief operating decision
making body in the Group to make decisions for performance assessment and resource allocation. The reporting of segment information
is the same as provided to the management for the purpose of the performance assessment and resource allocation to the segments.

Segment accounting policies are in line with the accounting policies of the Group. In addition, the following specific accounting policies
have been followed for segment reporting:

(i) Segment revenue includes sales and other operational revenue directly identifiable with/allocable to the segment including (a) inter-
segment revenue and (b) profit on sale of stake in the subsidiary and/or joint venture companies under developmental projects
segment and realty business grouped under “Others” segment.

(ii) Expenses that are directly identifiable with/allocable to segments are considered for determining the segment result. In respect of (a)
financial services segment and (b) Developmental Projects segment relating to power generation asset given on finance lease, the
finance costs on borrowings are accounted as segment expenses.

(iii) Most of the common costs are allocated to segments mainly on the basis of the respective segment revenue estimated at the
beginning of the reporting period.

(iv) Income which relates to the Group as a whole and not allocable to segments is included in “unallocable corporate income/
(expenditure) [net]”.

(v) Segment result represents profit before interest and tax and includes margins on inter-segment capital jobs, which are reduced
in arriving at the profit before tax of the Group. It also includes the finance costs incurred on interest bearing advances with
corresponding credit included in “unallocable corporate income/(expenditure) [net]”. Segment results are not adjusted for any
exceptional item.

(vi) Segment assets and liabilities include those directly identifiable with the respective segments. In respect of (a) financial services
segment, and (b) Developmental Projects segment relating to power generation asset given on finance lease, segment liabilities
include borrowings as the finance costs on the borrowings are accounted as segment expenses. Investment in joint ventures and
associates identified with a particular segment are reported as part of the segment assets of those respective segments.

Unallocable corporate assets and liabilities represent the assets and liabilities that relate to the Group as a whole.

(vii) Segment non-cash expenses forming part of segment expenses includes the fair value of the employee stock options which is
accounted as employee compensation cost [Note 1(w) Supra] and is allocated to the segment.

(viii) Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price which are
either determined to yield a desired margin or agreed on a negotiated basis.

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
(z) Taxes on income
Tax on income for the current period is determined on the basis of taxable income (or on the basis of book profits wherever minimum
alternate tax is applicable) and tax credits computed in accordance with the provisions of the applicable tax laws, and using estimates
and judgments based on the expected outcome of assessments/appeals and the relevant rulings in the areas of allowances and
disallowances.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Group’s financial
statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates and laws enacted or
substantively enacted as on the Balance Sheet date.

Deferred tax liabilities are generally recognised for all taxable temporary differences including the temporary differences associated with
investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the
temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets relating to unabsorbed depreciation/business losses/losses under the head “capital gains”/other temporary
differences are recognised and carried forward to the extent of available taxable temporary differences or where there is convincing
other evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised. The carrying
amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets in respect of unutilised tax credits which mainly relate to minimum alternate tax are recognised, to the extent it is
probable that such unutilised tax credits will get realised, in the period in which such determination is made.

Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity or in case of business
combination, is recorded along with the tax as applicable.

(aa) Provisions, contingent liabilities and contingent assets

Provisions are recognised only when:

(i) the Group has a present obligation (legal or constructive) as a result of a past event; and

(ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(iii) a reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money
is material, the carrying amount of the provision is the present value of those cash flows. Reimbursement expected in respect of
expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in case of:

(i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the
obligation; and

(ii) a present obligation arising from past events, when no reliable estimate is possible.

Contingent assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under
such contract, the present obligation under the contract is recognised and measured as a provision.

(ab) Commitments
Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:

a) estimated amount of contracts remaining to be executed on capital account and not provided for;

b) uncalled liability on shares and other investments partly paid;

c) funding related commitment to associate and joint venture companies; and

d) other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management.

Other commitments related to sales/procurements made in the normal course of business are not disclosed to avoid excessive details.

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Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](ii)
Significant Accounting Policies (contd.)
(ac) Discontinued Operations and non-current assets held for sale
Discontinued operation is a component of the Group that has been disposed of or classified as held for sale and represents a major line
of business.

Non-current assets and disposal groups are classified as held for sale if their carrying amount is intended to be recovered principally
through a sale (rather than through continuing use) when the asset (or disposal group) is available for immediate sale in its present
condition subject only to terms that are usual and customary for sale of such asset (or disposal group) and the sale is highly probable and
is expected to qualify for recognition as a completed sale within one year from the date of classification.

Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying amount and fair value less costs
to sell.

(ad) Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from
operating activities is reported using indirect method adjusting the profit before tax excluding exceptional items for the effects of:

i. changes during the period in inventories and operating receivables and payables, transactions of a non-cash nature;

ii. non-cash items such as depreciation, provisions, unrealised foreign currency gains and losses; and

iii. all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for
general use as at the date of Balance Sheet.

(ae) Key sources of estimation

The preparation of financial statements in conformity with Ind AS requires that the management of the Group makes estimates and
assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and
the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions
made by the management are explained under respective policies. Revisions to accounting estimates include useful life of property, plant
and equipment & intangible assets, allowance for expected credit loss, future obligations in respect of retirement benefit plans, expected
cost of completion of contracts, provision for rectification costs, fair value/recoverable amount measurement etc. Difference, if any,
between the actual results and estimates is recognised in the period in which the results are known.

NOTE [1](III)
Based on assessment of the impact of COVID-19 pandemic on the business/economic conditions, the Group expects to recover the carrying
value of its assets. The Group will continue to evaluate the pandemic-related uncertainty and update its assessment.

Note [1](IV)
Recent Pronouncement
On March 23, 2022, Ministry of Corporate Affairs amended Ind AS 16 (specifying accounting of net sale proceeds generated while preparing
the asset for its intended use), Ind AS 37 (specifying the composition of the cost of fulfilling the contract), Ind AS 103 (specifying the
criteria for applying acquisition method for recognising assets and liabilities) and Ind AS 109 (specifying which fees to be included to apply
10 per cent test). These amendments are effective from April 1, 2022 and will not have material impact on Group’s Consolidated Financial
Statements.

516
 Notes forming part of the Consolidated Financial Statements (contd.)
Overview
Corporate

NOTE [2]
Property, Plant and Equipment and Capital work-in-progress
v crore
Cost Depreciation Impairment Book value
Transfer Transfer
(to) / from (to) / from
Foreign Classified Foreign Classified
Management

Class of assets As at Business inventories As at Up to Business For the inventories Up to Up to Up to As at As at

Additions currency as held for currency as held for
1-4-2021 combination and Deductions 31-3-2022 31-3-2021 combination year and Deductions 31-3-2022 31-3-2021 31-3-2022 31-3-2022 31-3-2021
fluctuation sale fluctuation sale
Investment Investment
Property Property
Discussion and Analysis

Land
Freehold 1032.94 – 11.69 (183.75) – – 4.24 856.64 – – – – – – – – – 856.64 1032.94
Leasehold 146.65 – – – – – – 146.65 11.29 – 1.61 – – – – 12.90 – – 133.75 135.36
Sub total 1179.59 – 11.69 (183.75) – – 4.24 1003.29 11.29 – 1.61 – – – – 12.90 – – 990.39 1168.30
Buildings 4435.40 – 136.33 (5.18) 8.17 – 107.67 4467.05 878.56 – 157.53 (5.31) 2.51 – 30.80 1002.49 230.28 206.34 3258.22 3326.56
Report

Plant & equipment

Integrated

Owned 9736.79 – 983.69 (0.50) 17.49 – 1777.34 8960.13 4382.96 – 802.93 (0.35) 13.80 – 207.04 4992.30 743.41 29.55 3938.28 4610.42
Leased out 297.03 – – 26.56 – – – 323.59 189.09 – 15.85 – – – 204.94 – – 118.65 107.94
Sub total 10033.82 – 983.69 26.06 17.49 – 1777.34 9283.72 4572.05 – 818.78 (0.35) 13.80 – 207.04 5197.24 743.41 29.55 4056.93 4718.36
Computers
Owned 1613.85 2.07 502.03 – 2.42 1.12 53.14 2066.11 1117.30 1.49 272.35 – 1.56 0.87 51.06 1340.77 – – 725.34 496.55
Reports

Leased out 6.27 – – – – – – 6.27 6.27 – – – – – – 6.27 – – – –

Statutory

Sub total 1620.12 2.07 502.03 – 2.42 1.12 53.14 2072.38 1123.57 1.49 272.35 1.56 0.87 51.06 1347.04 – – 725.34 496.55
Office equipment
Owned 589.72 0.54 52.22 (0.05) 1.62 0.35 13.38 630.32 422.63 0.51 70.53 (0.03) 1.33 0.26 12.87 481.84 0.01 0.01 148.47 167.08
Leased out 0.02 – – – – – – 0.02 – – – – – – – – – – 0.02 0.02
Sub total 589.74 0.54 52.22 (0.05) 1.62 0.35 13.38 630.34 422.63 0.51 70.53 (0.03) 1.33 0.26 12.87 481.84 0.01 0.01 148.49 167.10
Financial

Furniture & fixtures

Statements

Owned 465.72 – 40.18 (2.18) 2.43 0.06 25.03 481.06 289.25 – 49.93 (1.89) 1.73 0.02 20.26 318.74 0.24 0.24 162.08 176.23
Leased out 14.36 – – – – – – 14.36 7.08 – 0.12 – – – – 7.20 – – 7.16 7.28
Sub total 480.08 – 40.18 (2.18) 2.43 0.06 25.03 495.42 296.33 – 50.05 (1.89) 1.73 0.02 20.26 325.94 0.24 0.24 169.24 183.51
Vehicles
Owned 411.44 – 44.30 – 3.21 – 54.31 404.64 250.34 – 42.16 – 2.91 – 38.57 256.84 – – 147.80 161.10
Leased out 1.68 – – – – – 1.01 0.67 1.00 – 0.17 – – – 0.68 0.49 – – 0.18 0.68
Sub total 413.12 – 44.30 – 3.21 – 55.32 405.31 251.34 – 42.33 – 2.91 – 39.25 257.33 – – 147.98 161.78
Other assets
Aircraft 244.45 – – – – – – 244.45 57.83 – 13.87 – – – – 71.70 – – 172.75 186.62
Ships 264.01 – 0.25 – – – – 264.26 50.34 – 20.68 – – – – 71.02 – – 193.24 213.67
Shiplift, marine structures
and related assets 683.07 – – – – – – 683.07 237.25 – 31.92 – – – – 269.17 – – 413.90 445.82
Breakwater structures 233.43 – – – – – – 233.43 39.36 – 5.01 – – – – 44.37 – – 189.06 194.07
Leasehold Improvements 406.27 0.28 42.02 – 0.41 0.35 29.58 419.05 282.32 0.08 40.28 – 0.20 0.32 16.84 305.72 – – 113.33 123.95
Sub total 1831.23 0.28 42.27 – 0.41 0.35 29.58 1844.26 667.10 0.08 111.76 – 0.20 0.32 16.84 761.98 – – 1082.28 1164.13
Total 20583.10 2.89 1812.71 (165.10) 35.75 1.88 2065.70 20201.77 8222.87 2.08 1524.94 (7.58) 24.04 1.47 378.12 9386.76 973.94 236.14 10578.87 11386.29
Previous year 17516.36 – 3666.95 (4.17) (30.99) – 565.05 20583.10 7174.60 – 1408.03 (4.41) (21.09) – 334.26 8222.87 973.94
Add: Capital work-in-progress [Note 2(f)] 1170.32 388.37
11749.19 11774.66

Notes:
(a) Carrying value of property, plant and equipment pledged as collateral for liabilities and/or commitments as at March 31, 2022 is R 1568.27 crore (previous year: R 1609.66
crore).
(b) Depreciation for the year includes impact of foreign currency fluctuation R 1.04 crore (previous year: R (0.88) crore) and depreciation capitalised R 0.23 crore (previous year:
R 1.10 crore)

517
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [2] (contd.)
(c) The cumulative impairment is as below:
Particulars v crore
As at 1-4-2021 973.94
Add: Impairment during the year 0.31
Add: Foreign currency fluctuation 4.22
Less: Reversal of impairment on sale of assets (742.33)
As at 31-3-2022 236.14
(d) Owned assets given on operating lease have been presented separately under respective class of assets as “Leased out” pursuant to
Ind AS 116 “Leases”.
(e) Range of useful life of property, plant and equipment is as below:
Sr. Minimum useful life Maximum useful life
Class of assets
no. (in years) (in years)
1 Leasehold land 15 99
2 Buildings 3 61
3 Plant & equipment 3 35
4 Computers 2 7
5 Office equipment 3 15
6 Furniture & fixtures 3 10
7 Vehicles 3 10
8 Aircraft 18 18
9 Ships 5 14
10 Shiplift, marine structures and related assets and Breakwater structures 20 50
(f) Ageing of Capital work-in-progress v crore
As at 31-3-2022 As at 31-3-2021
Particulars Less than More than Less than More than
1-2 years 2-3 years Total 1-2 years 2-3 years Total
1 year 3 years 1 year 3 years
Projects in progress 983.95 102.02 47.30 37.05 1170.32 271.83 79.59 36.95 – 388.37
Projects temporarily suspended – – – – – – – – – –
Total capital work-in-progress 983.95 102.02 47.30 37.05 1170.32 271.83 79.59 36.95 – 388.37
As on the date of balance sheet, there is no capital work-in-progress project(s) whose completion is overdue or has exceeded the cost,
based on the approved plan.

NOTE [3]
Investment property v crore
Cost Depreciation Impairment Book value
Transfer Transfer
Class of assets (to)/from (to)/from
As at As at Up to For the As at Up to As at As at As at
Additions property Deductions property Deductions
1-4-2021 31-3-2022 31-3-2021 period 31-3-2022 31-3-2021 31-3-2022 31-3-2022 31-3-2021
plant and plant and
equipment equipment
Land 967.47 27.16 146.37 – 1141.00 28.65 15.74 – – 44.39 – – 1096.61 938.82
Buildings 1617.53 250.00 0.41 – 1867.94 104.75 34.02 4.26 – 143.03 5.18 5.18 1719.73 1507.60
Total 2585.00 277.16 146.78 – 3008.94 133.40 49.76 4.26 – 187.42 5.18 5.18 2816.34 2446.42
Previous year 2155.03 470.63 125.44 166.10 2585.00 88.39 41.33 17.20 13.52 133.40 5.18
Add: Capital work-in-progress [Note 3(f)] 1146.64 1200.36
3962.98 3646.78
Notes:
(a) Carrying value of investment property pledged as collateral for liabilities and/or commitments and having restriction on title as at
March 31, 2022: Nil (previous year: R 0.16 crore).
(b) Useful life of building included in investment property: 3 to 60 years.

518
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [3] (contd.)
(c) Amounts recognised in the Statement of Profit and Loss in respect of investment property:
v crore

Sr. No. Particulars 2021-22 2020-21

1 Rental income derived from investment property 73.65 70.06
2 Direct operating expenses incurred on investment property that generated rental income 8.14 9.91
3 Direct operating expenses incurred on investment property that did not generate rental
income – 0.64
(d) Fair value of investment property as at March 31, 2022: R 6679.74 crore (previous year: R 5918.31 crore).
(e) The fair values of investment property have been determined by internal architectural department or independent valuer, as appropriate.
Fair value of property that are evaluated by registered independent valuers as defined under rule 2 of Companies (Registered Valuers and
Valuation) Rules, 2017, amounted to R 2746.81 crore (previous year: R 1616.64 crore). Valuation is based on government rates, market
research, market trend and comparable values as considered appropriate.
(f) Ageing of Capital work-in-progress
v crore

As at 31-3-2022 As at 31-3-2021
Particulars Less than More than Less than More than
1-2 years 2-3 years Total 1-2 years 2-3 years Total
1 year 3 years 1 year 3 years
Projects in progress 188.47 92.97 165.81 699.39 1146.64 161.39 261.04 194.89 583.04 1200.36
Projects temporarily suspended – – – – – – – – – –
Total capital work-in-progress 188.47 92.97 165.81 699.39 1146.64 161.39 261.04 194.89 583.04 1200.36

As on the date of balance sheet, there is no capital work-in-progress project(s) whose completion is overdue or has exceeded the cost,
based on the approved plan.

NOTE [4]
Goodwill
v crore

Cost Impairment Book value

Class of assets Foreign Classified

As at Business As at As at As at As at
Additions currency as held for Deductions
1-4-2021 combination 31-3-2022 31-3-2022 31-3-2022 31-3-2021
fluctuation sale
Goodwill on consolidation 8116.88 37.40 – 0.50 627.88 – 7526.90 49.92 7476.98 8066.96
Previous year 8059.50 40.83 2.49 14.06 – – 8116.88 49.92 8066.96

Note :
(a) Impairment recognised in the Statement of Profit and Loss during the year is Nil (previous year: R 1.82 crore).

519
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [5]
Other intangible assets and intangible assets under development
v crore

Cost Amortisation Book value

Class of assets Foreign Classified Foreign Classified

As at Business As at Up to Business For the Up to As at As at
Additions currency as held for Deductions currency as held for Deductions
1-4-2021 combination 31-3-2022 31-3-2021 combination year 31-3-2022 31-3-2022 31-3-2021
fluctuation sale fluctuation sale
Fare collection rights 16527.71 – 131.65 – – – 16659.36 439.18 – 276.61 – – – 715.79 15943.57 16088.53
Specialised software 1632.68 0.32 205.66 18.31 11.21 109.00 1736.76 1331.97 0.31 163.24 17.31 9.00 108.76 1395.07 341.69 300.71
Technical know-how 114.29 – 6.37 – – – 120.66 88.62 – 8.03 – – – 96.65 24.01 25.67
Trade names 311.66 – – 0.17 – 6.24 305.59 118.75 – 59.40 0.17 – 6.24 172.08 133.51 192.91
New product design
and development 9.31 – 0.13 – – 0.46 8.98 7.95 – 0.48 – – 0.31 8.12 0.86 1.36
Customer contracts
and relationship 3350.50 17.67 – 8.36 – – 3376.53 882.86 1.16 376.80 7.45 – – 1268.27 2108.26 2467.64
Rights under
licensing agreement 124.29 – – 4.56 – – 128.85 3.35 – 21.11 0.49 – – 24.95 103.90 120.94
Platforms and
courses – – 76.91 – – – 76.91 – – 3.34 – – – 3.34 73.57 –
Total 22070.44 17.99 420.72 31.40 11.21 115.70 22413.64 2872.68 1.47 909.01 25.42 9.00 115.31 3684.27 18729.37 19197.76
Previous year 21563.56 52.18 458.40 46.49 – 50.19 22070.44 1966.58 – 906.53 42.98 – 43.41 2872.68
Add: Intangible assets under development [Note 5(c)] 79.23 112.02
18808.60 19309.78

(a) Amortisation for the year includes impact of foreign currency fluctuation R 0.05 crore (previous year: R 0.06 crore) and depreciation capitalised
R 0.37 crore (previous year: Nil)

(b) Details of addition in other intangible assets:

R crore
2021-22 2020-21
Class of assets Internal Acquired Internal Acquired
Total Total
development - external development - external
Fare collection Rights – 131.65 131.65 – 144.68 144.68
Specialised software 93.74 111.92 205.66 49.60 134.46 184.06
Technical know-how – 6.37 6.37 – 2.79 2.79
New product design and development 0.13 – 0.13 1.87 – 1.87
Customer contracts and relationship – – – 0.71 – 0.71
Rights under licensing agreement – – – – 124.29 124.29
Platforms and courses 76.91 – 76.91 – – –
Total 170.78 249.94 420.72 52.18 406.22 458.40

(c) Ageing of Intangible assets under development

v crore

As at 31-3-2022 As at 31-3-2021
Particulars Less than More than Less than More than
1-2 years 2-3 years Total 1-2 years 2-3 years Total
1 year 3 years 1 year 3 years
Projects in progress 72.12 7.11 – – 79.23 88.70 21.29 2.03 – 112.02
Projects temporarily suspended – – – – – – – – – –
Total capital work-in-progress 72.12 7.11 – – 79.23 88.70 21.29 2.03 – 112.02

As on the date of balance sheet, there is no Intangible assets under development whose completion is overdue or has exceeded the cost,
based on the approved plan.

520
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [5] (contd.)
Notes:
(1) Borrowing cost capitalised in accordance with Ind AS 23 “Borrowing Costs” is as follows:
v crore
Class of Assets 2021-22 2020-21
Capital work-in-progress
Property, plant and equipment - building 8.83 27.75
Investment property - building 12.63 13.11
Total 21.46 40.86

(2) The average borrowing cost used for capitalisation is 7.29% (previous year: 6.56%).

NOTE [6]
Non-current assets: Financial assets - Other investments
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Equity instruments 610.72 544.89
Preference shares 121.67 87.00
Government and trust securities 204.68 101.15
Debentures and bonds 1008.97 1004.47
Mutual funds – 31.39
Security receipts 4886.22 4114.88
Units of fund 31.20 61.36
Other investments 218.05 –
7081.51 5945.14

NOTE [7]
Non-current assets: Financial assets - Loans towards financing activities
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Considered good - secured 28804.01 37184.23
Less: Allowance for expected credit loss 202.45 343.45
28601.56 36840.78
Considered good - unsecured 14348.10 13342.63
Less: Allowance for expected credit loss 377.86 255.20
Less: Impairment 1942.08 1659.70
12028.16 11427.73
Having significant increase in credit risk 6098.04 3200.50
Less: Allowance for expected credit loss 733.03 178.74
5365.01 3021.76
Credit impaired 2176.05 5048.21
Less: Allowance for expected credit loss 1433.94 3706.81
742.11 1341.40
46736.84 52631.67

521
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [8]
Non-current assets: Financial assets - Other loans
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Loans and advances to related parties
Joint ventures and associates, considered good - unsecured 1306.65 1149.30
Less: Allowance for expected credit loss 1139.03 1139.03
167.62 10.27
Others loans
Considered good - unsecured 199.17 276.77
Less: Allowance for expected credit loss 113.80 113.80
85.37 162.97
252.99 173.24

NOTE [9]
Non-current assets: Financial assets - Others
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Security deposits
Considered good - unsecured 469.69 395.81
Less: Allowance for expected credit loss 40.00 37.90
429.69 357.91
Cash and bank balances not available for immediate use 94.34 283.91
Fixed deposits with banks (maturity more than 12 months) 832.02 228.07
Forward contract receivables 715.50 518.91
Embedded derivative receivables 2.39 1.75
Other receivables [1]
89.03 29.64
2162.97 1420.19

[1]
mainly includes lease receivables and recoverable from joint ventures and banks

NOTE [10]
Other non-current assets
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Capital advances:
Secured 0.92 0.61
Unsecured 144.85 79.84
145.77 80.45
Advance recoverable other than in cash 2624.20 2607.12
Current tax receivable (net) 3307.65 3262.10
6077.62 5949.67

522
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [11]
Current assets: Inventories
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Raw materials [include goods-in-transit R 82.31 crore (previous year: R 76.78 crore)] 701.61 849.22
Components [include goods-in-transit R 15.24 crore (previous year: R 9.58 crore)] 387.03 320.71
Construction materials [include goods-in-transit R 116.74 crore (previous year: R 39.17 crore)] 180.56 90.22
Manufacturing work-in-progress 313.01 261.37
Finished goods 93.35 86.01
Stock-in-trade (in respect of goods acquired for trading) [include goods-in-transit R 32.73 crore
(previous year: R 44.34 crore)] 319.61 361.31
Stores and spares [include goods-in-transit R 1.76 crore (previous year: R 4.60 crore)] 290.19 287.75
Loose tools [include goods-in-transit R 0.01 crore (previous year: R 0.01 crore)] 12.47 10.28
Property development projects (including land) 3645.49 3553.67
5943.32 5820.54

Note: During the year R 37.21 crore (previous year: R 8.15 crore) was recognised as expense towards write-down of inventories (net).

NOTE [12]
Current assets: Financial assets - Investments
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Equity shares 158.41 97.91
Preference shares – 0.68
Government and trust securities 3469.53 2336.16
Debentures and bonds 7891.72 7331.66
Mutual funds 12918.05 20143.53
Collateral borrowing and lending obligation (CBLO) 1499.57 299.98
Commercial paper 2495.29 –
Other investments 1359.94 801.31
29792.51 31011.23

NOTE [13]
Current assets: Financial assets - Trade receivables
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Considered good - secured 25.09 24.49
Considered good - unsecured 48992.12 44639.84
Less: Allowance for expected credit loss 2955.09 2561.28
46037.03 42078.56
Credit impaired 1014.22 971.05
Less: Allowance for expected credit loss 937.42 844.32
76.80 126.73
46138.92 42229.78

523
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [13][a]
Current assets: Financial assets - Trade receivables ageing
v crore
As at 31-3-2022
Outstanding for following periods from due date of payment
Particulars
Not due Less than 6 months - More than Total
1-2 years 2-3 years
6 months 1 year 3 years
Undisputed:
- Considered good 30396.09 10438.28 2457.96 1766.97 835.32 1557.88 47452.50
- Credit impaired 6.09 17.73 74.31 151.53 73.12 508.42 831.20
Disputed:
- Considered good 34.04 7.24 63.51 244.24 19.08 1196.60 1564.71
- Credit impaired – – – – 45.18 137.84 183.02
Gross trade receivables 30436.22 10463.25 2595.78 2162.74 972.70 3400.74 50031.43
Less: Allowance for expected credit loss 3892.51
46138.92

v crore
As at 31-3-2021
Outstanding for following periods from due date of payment
Particulars
Not due Less than 6 months - More than Total
1-2 years 2-3 years
6 months 1 year 3 years
Undisputed:
- Considered good 27666.69 8699.53 2964.19 1739.90 727.28 1246.06 43043.65
- Credit impaired 11.06 120.06 57.19 38.97 86.55 466.56 780.39
Disputed:
- Considered good 94.82 26.51 192.48 64.75 115.76 1126.36 1620.68
- Credit impaired – – 8.74 35.18 – 146.74 190.66
Gross trade receivables 27772.57 8846.10 3222.60 1878.80 929.59 2985.72 45635.38
Less: Allowance for expected credit loss 3405.60
42229.78

NOTE [14]
Current assets: Financial assets - Cash and cash equivalents
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Balance with banks 6673.01 5743.64
Cheques and drafts on hand 395.10 456.86
Cash on hand 12.46 11.84
Fixed deposits with banks (maturity less than 3 months) 6689.67 7161.18
13770.24 13373.52

524
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [15]
Current assets: Financial assets - Other bank balances
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Fixed deposits with banks 2462.20 616.49
Earmarked balances with banks - unclaimed dividend 135.97 136.43
Earmarked balances with banks - Section 4(2)(l)(D) of RERA [1]
74.04 6.69
Earmarked balances with banks - others 376.20 771.04
Margin money deposits with banks 1568.20 944.01
Cash and bank balances not available for immediate use 566.32 393.32
5182.93 2867.98
[1]
Real Estate (Regulation and Development) Act, 2016

NOTE [16]
Current Assets: Financial Assets - Loans towards financing activities
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Considered good - secured 26911.36 32721.18
Less: Allowance for expected credit loss 5.04 59.60
Less: Net fair value changes 114.66 316.34
26791.66 32345.24
Considered good - unsecured 9092.51 8534.40
Less: Allowance for expected credit loss 616.97 444.65
Less: Impairment 46.56 27.12
8428.98 8062.63
Having significant increase in credit risk 6556.86 1103.08
Less: Allowance for expected credit loss 257.23 87.69
Less: Net fair value changes 163.16 44.23
6136.47 971.16
Credit Impaired 1342.94 –
Less: Net fair value changes 430.85 –
912.09 –
42269.20 41379.03

NOTE [17]
Current assets: Financial assets - Other loans
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Loans and advances to related parties
Considered good - unsecured 171.29 167.09
Others loans
Considered good - unsecured 109.05 68.26
280.34 235.35

525
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [18]
Current assets: Financial assets - Others
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Security deposits
Considered good - unsecured 396.29 414.73
Less: Allowance for expected credit loss 0.52 0.57
395.77 414.16
Advances to related parties:
Associates 4.76 0.31
Joint ventures 109.64 48.10
114.40 48.41
Advances recoverable in cash 844.34 958.08
Forward contract receivables 1073.50 942.04
Unbilled Revenue 1363.54 837.93
Embedded derivative receivables 48.49 51.06
Doubtful advances:
Deferred credit sale of ships 27.11 27.11
Other loans and advances 725.89 789.13
753.00 816.24
Less: Allowance for expected credit loss 753.00 816.24
– –
3840.04 3251.68

NOTE [19]
Other current assets
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Contract assets [Note 47(d)(i)]
Due from customers (construction and project related activity) 35238.27 32448.31
Retention money including unbilled revenue 16805.40 15170.83
52043.67 47619.14
Advance recoverable other than in cash 8014.70 6878.77
Government grant receivable 26.98 102.21
Other loans and advances 1.60 11.72
Less: Allowance for expected credit loss 1.60 11.72
– –
Others 47.54 191.36
60132.89 54791.48

526
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [20]
Equity share capital
(a) Share capital authorised, issued, subscribed and paid up:

As at 31-3-2022 As at 31-3-2021
Particulars Number of Number of
v crore v crore
shares shares
Authorised: [1]
Equity shares of R 2 each 40,18,50,00,000 8037.00 25,12,50,00,000 5025.00

Issued, subscribed and fully paid up:

Equity shares of R 2 each 1,40,50,29,123 281.01 1,40,45,55,297 280.91

Pursuant to the approval of the Scheme of Arrangement of Merger of L&T Hydrocarbon Engineering Limited with the Parent Company,
[1]

the authorised share capital of L&T Hydrocarbon Engineering Limited is added to the authorised share capital of the Parent Company, w.e.f.
Appointed Date i.e. April 1, 2021.

(b) Reconciliation of the number of equity shares and share capital:

2021-22 2020-21
Particulars Number of Number of
v crore v crore
shares shares
Issued, subscribed and fully paid up equity share outstanding at the beginning of
the year 1,40,45,55,297 280.91 1,40,38,92,022 280.78
Add: Shares issued on exercise of employee stock options during the year 4,73,826 0.10 6,63,275 0.13
Issued, subscribed and fully paid up equity shares outstanding at the end of the
year 1,40,50,29,123 281.01 1,40,45,55,297 280.91

(c) Terms/rights attached to equity shares:

The Company has only one class of share capital, i.e., equity shares having face value of R 2 per share. Each holder of equity share is
entitled to one vote per share.

(d) Shareholder holding more than 5% of equity shares as at the end of the year:

As at 31-3-2022 As at 31-3-2021
Name of the shareholders Number of Shareholding Number of Shareholding
shares % shares %
L&T Employees Trust 19,25,58,158 13.70 19,25,58,158 13.71
Life Insurance Corporation of India 16,69,42,875 11.88 19,24,67,386 13.70

(e) Shares reserved for issue under options outstanding on un-issued share capital:

As at 31-3-2022 As at 31-3-2021
Number of Number of
Particulars R crore R crore
equity shares equity shares
(at face (at face
to be issued to be issued
value) value)
as fully paid as fully paid
Employee stock options granted and outstanding [1] 17,18,419 0.34[2] 17,81,564 0.36[2]
[1]
Note 20(h) infra for terms of employee stock option schemes

[2]
The equity shares will be issued at a premium of R 38.30 crore (previous year: R 42.74 crore)

(f) The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five years ended March
31, 2022 are 46,67,64,755 (period of five years ended March 31, 2021: 46,67,64,755 shares).

(g) The aggregate number of equity shares issued pursuant to contract, without payment being received in cash in immediately preceding
five years ended on March 31, 2022 – Nil (period of five years ended March 31, 2021: Nil).

527
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [20] (contd.)
(h) Stock option scheme of the Parent Company:

(A) Terms:

i. The grant of options to the employees under the stock option schemes is on the basis of their performance and other eligibility
criteria. The options are vested equally over a period of 4 years for series 2003(B) and 5 years in the case of series 2006(A),
subject to the discretion of the management and fulfillment of certain conditions.

ii. Options can be exercised anytime within a period of 7 years from the date of grant and would be settled by way of issue of
equity shares. Management has discretion to modify the exercise period.

(B) The details of the grants under the aforesaid scheme are summarised below:

Sr. 2003(B) 2006(A)

Series reference
No. 2021-22 2020-21 2021-22 2020-21
i. Grant price (R) 7.80 7.80 267.10 267.10
ii. Grant dates 23-5-2003 onwards 1-7-2007 onwards
Iii. Vesting commences on 23-5-2004 onwards 1-7-2008 onwards
iv. Options granted and outstanding at the beginning of the year 1,73,150 1,45,935 16,08,414 23,75,454
v. Options lapsed 7,130 4,875 1,32,958 1,75,675
vi. Options granted 1,78,839 1,04,000 3,71,930 –
vii. Options exercised 64,900 71,910 4,08,926 5,91,365
viii. Options granted and outstanding at the end of the year, of which 2,79,959 1,73,150 14,38,460 16,08,414
Options vested 10,450 23,575 3,89,610 4,84,082
Options yet to vest 2,69,509 1,49,575 10,48,850 11,24,332
ix. Weighted average remaining contractual life of options (in years) 5.67 5.74 4.29 4.23

(C) The number and weighted average exercise price of stock options are as follows:

2021-22 2020-21
Weighted Weighted
Particulars No. of stock average No. of stock average
options exercise price options exercise price
(R) (R)
(A) Options granted and outstanding at the beginning of the year 17,81,564 241.90 25,21,389 252.09
(B) Options granted 5,50,769 182.90 1,04,000 7.80
(C) Options allotted 4,73,826 231.58 6,63,275 238.99
(D) Options lapsed 1,40,088 253.90 1,80,550 260.10
(E) Options granted and outstanding at the end of the year 17,18,419 224.86 17,81,564 241.90
(F) Options exercisable at the end of the year out of (E) supra 4,00,060 260.33 5,07,657 255.06
(D) Weighted average share price at the date of exercise for stock options exercised during the year is R 1635.25 (previous year:
R 1001.47) per share.

(E) The fair value of the options granted under the stock option scheme is treated as discount and accounted as employee
compensation over the vesting period.

(F) Weighted average fair values of options granted during the year is R 1113.62 (previous year: R 834.24) per option.

528
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [20] (contd.)
(G) The fair value of the options granted during the year has been calculated using the Black-Scholes Option Pricing Model using the
following significant assumptions and inputs:

Sr.
Particulars 2021-22 2020-21
No.
(A) Weighted average risk-free interest rate 5.41% 4.81%
(B) Weighted average expected life of options 3.77 years 2.85 years
(C) Weighted average expected volatility 31.02% 35.39%
(D) Weighted average expected dividends over the life of the option R 67.82 per option R 51.22 per option
(E) Weighted average share price R 1311.86 per option R 884.83 per option
(F) Weighted average exercise price R 182.90 per option R 7.80 per option
(G) Method used to determine expected volatility Expected volatility is based on the historical volatility
of the Company’s share price applicable to the total
expected life of each option.
(i) During the year ended March 31, 2022, the Company paid the final dividend of R 18 per equity share for the year ended March 31,
2021.

(j) The Board of Directors, at their meeting held on May 12, 2022 recommended a final dividend of R 22 per equity share for the year
ended March 31, 2022, subject to approval of shareholders. On approval, the dividend outgo is expected to be R 3091.06 crore based on
number of shares outstanding as on March 31, 2022.

(k) Stock option scheme of subsidiary companies:

(i) Larsen & Toubro Infotech Limited
Employee Stock Ownership Scheme (ESOS Plan)
(A) The options are vested equally over a period of 5 years subject to the discretion of the management and fulfilment of certain
conditions. The options can be exercised anytime within a period of 7 years from the date of grant and would be settled by
way of issue of equity shares. Management has discretion to modify the exercise period.

(B) The details of the grant under the aforesaid scheme is summarised below:

Sr. ESOP scheme 2015

No. Particulars
2021-22 2020-21
i. Grant price R1 R1
ii. Grant dates 10-06-2016 onwards
iii. Vesting commences on 10-06-2017 onwards
iv. Options granted & outstanding at the beginning of the year 8,82,606 15,25,395
v. Options reinstated during the year – –
vi. Options granted during the year 45,285 83,650
vii. Options exercised during the year 5,19,548 6,23,839
viii. Options lapsed/cancelled during the year 82,428 1,02,600
ix. Options granted & outstanding at the end of the year 3,25,915 8,82,606
x. Options vested at the end of the year out of (ix) supra 1,43,122 1,22,208
xi. Options unvested at the end of the year out of (ix) supra 1,82,793 7,60,398
xii Weighted average remaining contractual life of options (in years) 3.5 3.3
(C) Weighted average share price at the date of exercise for stock options exercised during the year is R 4889.01 per share
(previous year: R 2691.00 per share).

(D) Weighted average fair value of options granted during the year is R 4667.46 per share (previous year: R 2348.93 per share).

529
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [20] (contd.)
(E) The fair value has been calculated using the Black-Scholes Option Pricing Model and significant assumptions and inputs to
estimate the fair value options granted during the year are as follows:

Sr. No. Particulars 2021-22 2020-21

(A) Weighted average risk-free interest rate 5.00% 4.62%
(B) Weighted average expected life of options 3 years 3 years
(C) Weighted average expected volatility 27.67% 25.17%
(D) Weighted average expected dividends over the life of option R 189.16 R 148.59
(E) Weighted average share price R 4668.46 R 2349.87
(F) Weighted average exercise price R1 R1
(G) Method used to determine expected volatility The expected volatility The expected volatility
has been calculated has been calculated
based on historic entirely based on
company share price. historic volatility of IT
Index.

(ii) L&T Technology Services Limited

(A) Employee stock option plan (ESOP)

(i) The options are vested equally over a period of 5 years subject to the discretion of the management and fulfillment of
certain conditions.

(ii) The exercise period for the options granted under the ESOP Scheme, 2016 would be seven years (84 months) from the
date of grant of options or six years (72 months) from the date of first vesting or three years (36 months) from the date
of retirement/death, whichever is earlier, subject to any change as may be approved by the Board. The exercise price may
be decided by the Board, in such manner, during such period, in one or more tranches and on such terms and conditions
as it may deem fit, provided that the exercise price per option shall not be less than the par value of the equity share
of the Company and shall not be more than the market price as defined in the SEBI (Share Based Employee Benefits)
Regulations, 2014 and shall be subject to compliance with accounting policies under the said regulation. The number of
shares to be allotted on exercise of options should not exceed the total number of unexercised vested options that may
be exercised by the employee. Details of grant under ESOP Scheme, 2016 is summarised below:

Sr. ESOP Scheme, 2016

No. Particulars
2021-22 2020-21
i. Grant price R2 R2
ii. Grant dates 28-07-2016 onwards
iii. Vesting commences on 28-07-2017 onwards
iv. Options granted and outstanding at the beginning of the year 7,32,469 13,22,434
v. Options lapsed during the year 30,400 76,200
vi. Options granted during the year – 20,500
vii. Options exercised during the year 4,86,344 5,34,265
viii. Options granted and outstanding at the end of the year 2,15,725 7,32,469
ix. Options vested at the end of the year out of (viii) supra 66,605 1,46,929
x. Options unvested at the end of the year out of (viii) supra 1,49,120 5,85,540
xi. Weighted average remaining contractual life of options (in years) 0.24 1.99

(B) Weighted average share price at the date of exercise for stock options exercised during the year is R 4770.17 per share
(previous year: R 1763.19 per share).

(C) In respect of stock options granted pursuant to the Company’s stock options schemes, the fair value of the options is treated
as discount and accounted as employee compensation over the vesting period.

530
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [20] (contd.)
(D) There are no new options granted during the year ended 31-3-2022. The fair value at grant date of options granted during
the previous year: R 1378.40 per option. The fair value of grant date is determined using the Black-Scholes Option Pricing
Model which takes into account the exercise price, term of option, share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk-free interest rate for the term of the option. The model inputs for
options granted during the year included:

Sr.
Particulars 2021-22 2020-21
No.
(A) Weighted average exercise price R 2.00
(B) Grant date 16-07-2020
(C) Expiry date 16-07-2027
No new ESOP grant
(D) Weighted average share price at grant date R 1441.70 per option
during the year
(E) Weighted average expected price volatility of Company’s share 30.42%
(F) Weighted average expected dividend yield over life of option 5.12%
(G) Weighted average risk-free interest rate 4.55%
(H) Method used to determine expected volatility The expected price volatility is based on the
historic volatility (based on the remaining life of
the options), adjusted for any expected changes
to future volatility based on publicly available
information.

(iii) L&T Finance Holdings Limited

The Company has formulated Employee Stock Option Schemes 2010 (Scheme 2010) and 2013 (Scheme 2013). The grant of options
to the employees under the stock option schemes is on the basis of their performance and other eligibility criteria. The options
allotted under the Scheme 2010 are vested over a period of four years in the ratio of 15%, 20%, 30% and 35% respectively from
the end of 12 months from the date of grant, subject to the discretion of the management and fulfillment of certain conditions.
The options granted under the Scheme 2013 are vested in a graded manner over a period of four years with 0%, 33%, 33% and
34% of grants vesting each year, commencing from the end of 24 months from the date of grant or w.e.f. July 10, 2019 vested in
a graded manner over a period of four years with 25%, 25%, 25% and 25% of grants vesting each year, commencing from the
end of 12 months from the date of grant.

(A) The details of the grants are summarised below:

Sr. Scheme 2010 Scheme 2013

No. Particulars
2021-22 2020-21 2021-22 2020-21
i. Grant price R 44.20 R 10.00 /Market Price
[1]

ii. Options granted and outstanding at the beginning of the year 19,28,500 29,20,500 3,98,32,101 4,51,95,840
iii. Options granted during the year – – 1,07,89,685 21,31,627
iv. Options lapsed/cancelled during the year 6,63,250 3,07,500 61,90,962 48,92,793
v. Options exercised and shares allotted during the year 3,17,000 6,84,000 42,72,784 26,02,573
vi. Options granted and outstanding at the end of the year
of which: 9,48,250 19,28,500 4,01,58,040 3,98,32,101
Options vested 7,19,000 5,37,000 2,16,22,255 1,81,71,874
Options yet to vest 2,29,250 13,91,500 1,85,35,785 2,16,60,227
vii. Weighted average remaining contractual life of options (in
years) 3.56 4.02 5.64 4.81
w.e.f. July 10, 2019
[1]

(B) The average fair values of options granted during the year is R 72.69 (previous year: R 33.15) per option.

531
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [20] (contd.)
(C) The fair value has been calculated using the Black-Scholes Option Pricing Model and the significant assumptions and inputs to
estimate the fair value of options granted during the year are as follows:
Sr. No. Particulars 2021-22 2020-21
(A) Weighted average risk-free interest rate 4.59% 2.70%
(B) Weighted average expected life of options 2.68 years 1.73 years
(C) Weighted average expected volatility 39.50% 25.26%
(D) Weighted average expected dividends R 2.60 per option R 1.68 per option
(E) Weighted average share price R 83.71 per option R 39.61 per option
(F) Weighted average exercise price R 10.00 per option R 5.82 per option
(G) Method used to determine expected volatility Expected volatility is based on the historical volatility of
the Company’s shares price applicable to the expected
life of each option.
(iv) Mindtree Limited
(A) Employee Restricted Stock Purchase Plan 2012 (ERSP 2012)
ERSP 2012 was instituted with effect from July 16, 2012 to issue equity shares of nominal value of R 10 each. Shares under
this program are granted to employees at an exercise price of not less than R 10 per equity share or such higher price
as determined by the Nomination and Remuneration Committee. Shares shall vest over such term as determined by the
Nomination and Remuneration Committee not exceeding ten years from the date of the grant. All shares will have a minimum
lock in period of one year from the date of allotment.
2021-22 2020-21
Weighted Weighted
Sr. No. of No. of
Particulars average average
No. stock stock
exercise price exercise price
options options
(R) (R)
i. Options granted and outstanding at the beginning of the
year 5,200 10.00 – –
ii. Options granted during the year 1,17,241 10.00 1,54,155 10.00
iii. Options exercised during the year 1,14,006 10.00 1,45,700 10.00
iv. Options lapsed/forfeited during the year – – 3,255 10.00
v. Options granted and outstanding at the end of the year 8,435 10.00 5,200 10.00
vi. Options vested at the end of the year out of (v) supra 8,435 10.00 5,200 10.00
(B) Other Stock based compensation arrangements
The Company has granted phantom stock options and letter of intent to issue shares under ERSP 2012 plan to certain
employees which is subject to certain vesting conditions. Details of the outstanding options/ units as at March 31, 2022 are
given below:
2021-22 2020-21
Sr. No. Particulars Employee Restricted Stock Option Plan
2012 [1]
(A) Outstanding units/shares as at the beginning of the year 1,92,166 2,40,450
(B) Number of units/shares granted under letter of intent during the year – 1,44,466
(C) Vested units/shares 1,17,241 1,54,155
(D) Lapsed units/shares – 5000
(E) Cancelled units/shares 9,702 33,595
(F) Outstanding units/shares as at the end of the year 65,223 1,92,166
(G) Contractual life 1-2 year 1-2 year
(H) Grant Date [2] – May 12, 2020,
June 18, 2020,
October 30, 2020,
February 8, 2021
(I) Grant Price per share/unit [2] R 10 per share R 10 per share
[1] Does not include direct allotment of shares
[2] Based on Letter of Intent

532
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [20] (contd.)
The weighted average fair value of each unit under the above mentioned ERSP 2012 plan, granted during the previous year
ended March 31, 2021 was R 873.36 using the Black-Scholes Option Pricing Model with the following assumptions:

Sr. No. Particulars 2021-22 2020-21

(A) Weighted average grant date share price – R 873.36
(B) Weighted average exercise price R 10.00 R 10.00
(C) Dividend yield % 0.42% 0.42%
(D) Expected life 1-2 year 1-2 year
(E) Risk-free interest rate 5.56% 4.31%
(F) Volatility 35.15% 48.33%

(C) Employee Stock Option Plan 2021 (ESOP 2021)

ESOP 2021 was instituted with effect from May 22, 2021 for the issue of upto 20,00,000 options (including the unutilized
options under ERSP 2012) to employees. The Nomination and Remuneration Committee (‘NRC’) administers the plan through
a trust established specifically for this purpose, called the Mindtree Employee Welfare Trust (‘ESOP Trust’).

The ESOP Trust shall subscribe to the equity shares of the Company using the proceeds from loans obtained from the
Company, other cash inflows from allotment of shares to employees under the ESOP Plan, to the extent of number of shares
as is necessary for transferring to the employees. The NRC shall determine the exercise price which will not be less than the
face value of the shares.

Options under this program are granted to employees at an exercise price periodically determined by the NRC. All stock
options have a four-year vesting term. The options vest and become fully exercisable at the rate of 25% each over a period of
4 years from the date of grant. Each option is entitled to 1 equity share of R 10 each. These options are exercisable within 6
years from the date of vesting.

Series A
2021-22
Sr. No. Particulars
Weighted average
No. of stock options
exercise price (R)
i. Options granted and outstanding at the beginning of the year – –
ii. Options granted during the year 3,28,128 10.00
iii. Options exercised during the year – –
iv. Options lapsed/forfeited during the year 16,160 10.00
v. Options granted and outstanding at the end of the year 3,11,968 10.00
vi. Options vested at the end of the year out of (v) supra – –

The weighted average remaining contractual life of the option is 1.88 years as at March 31, 2022 (as at March 31, 2021: NA)

The weighted average fair value of each option under the above mentioned Series A of ESOP 2021 plan was R 2965.70 using
the Black-Scholes model with the following assumptions:

Sr. No. Particulars 2021-22

i. Weighted average grant date share price R 2984.23
ii. Exercise price R 10.00
iii. Dividend yield % 0.10%
iv. Expected life 1-4 year
v. Risk-free interest rate 4.88%
vi. Volatility 34.68%

533
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [20] (contd.)
Series B
2021-22
Sr. No. Particulars
Weighted average
No. of stock options
exercise price (R)
i. Options granted and outstanding at the beginning of the year – –
ii. Options granted during the year 1,87,000 3,290.65
iii. Options exercised during the year – –
iv. Options Lapsed/forfeited during the year 17,000 2,683.80
v. Options granted and outstanding at the end of the year 1,70,000 3,290.65
vi. Options vested at the end of the year out of (v) supra – –

The weighted average remaining contractual life of the option is 1.99 years as at March 31, 2022 (as at March 31, 2021: NA)

The weighted average fair value of each option under the above mentioned Series B of ESOP 2021 plan was R 926.45 using
the Black-Scholes Option Pricing Model with the following assumptions:

Sr. No. Particulars 2021-22

i. Weighted average grant date share price R 3411.29
ii. Exercise price R 3290.65
iii. Dividend yield % 0.11%
iv. Expected life 1-4 year
v. Risk-free interest rate 4.94%
vi. Volatility 34.29%

(l) Capital Management

The Group continues its policy of a conservative capital structure. Low gearing levels also enable the Group to navigate business stress on
one hand and raise growth capital on the other. This policy also provides flexibility of fund-raising options for future, which is especially
important in times of global economic volatility. The gross debt equity ratio is 1.29:1 (as at 31-3-2021: 1.51:1).

534
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [21]
Other equity
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Capital reserve [Note 1(II)(g)]
Capital reserve 10.52 10.52
Capital reserve on consolidation 271.92 271.92
282.44 282.44
Capital redemption reserve [1]
335.10 302.00
Securities premium [Note 1(II)(u)] 8718.74 8667.65
Employee share options (net) [Note 1(II)(w)]
Employee share options outstanding 502.09 427.52
Deferred employee compensation expense (130.44) (43.92)
371.65 383.60
Statutory reserves
Debenture redemption reserve [2]
546.62 776.76
Reserve u/s 45-IC of the Reserve Bank India Act, 1934 2162.13 1956.05
Reserve u/s 29C of the National Housing Bank Act, 1987 11.09 11.09
Reserve u/s 36(1)(viii) of the Income-tax Act, 1961 962.27 911.01
Impairment reserve as per Reserve Bank of India [3] 28.36 28.36
3710.47 3683.27
Retained earnings 67139.90 60955.94
Foreign currency translation reserve [Note 1(II)(x)(iv)] 696.00 665.45
Hedging reserve [Note 1(II)(r)(iii)(B)]
Cash flow hedging reserve 723.25 492.11
Cost of hedging reserve (4.72) (7.01)
718.53 485.10
Debt instruments through Other comprehensive income [Note 1(II)(r)(i)(B)] 98.20 162.40
Equity instruments through Other comprehensive income [Note 1(II)(r)(i)(B)] 55.62 (0.23)
82126.65 75587.62
[1]
Capital redemption reserve: Created by the subsidiaries on redemption of preference shares out of profits in accordance with Section 55(2)(c) of the
Companies Act, 2013.
[2]
Debenture redemption reserve: Created on non-convertible debentures in accordance with the Companies (Share capital and Debenture) Rules, 2014
(as amended).
[3]
Impairment reserve as per Reserve Bank of India: Created pursuant to circular issued by Reserve Bank of India where impairment allowance as per Ind
AS 109 is lower than the provisioning required as per extant prudential norms.

535
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [22]
Non-current liabilities: Financial liabilities - Borrowings
v crore
As at 31-3-2022 As at 31-3-2021
Particulars
Secured Unsecured Total Secured Unsecured Total
Redeemable non-convertible fixed rate debentures 30945.62 14687.17 45632.79 29162.95 20021.22 49184.17
Redeemable non-convertible inflation linked debentures – 129.94 129.94 – 126.15 126.15
Preference shares – 215.65 215.65 – 1123.66 1123.66
Term loans from banks 13657.29 1982.64 15639.93 29334.73 2351.33 31686.06
44602.91 17015.40 61618.31 58497.68 23622.36 82120.04

Notes:
(a) Loans guaranteed by directors R Nil (previous year: R Nil)
(b) Non-convertible debentures and bank borrowings are secured by charge on the specified movable and immovable assets of the respective entities.

NOTE [23]
Non-current liabilities: Other financial liabilities
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Forward contract payables 27.46 59.78
Embedded derivative payables 13.17 13.84
Financial guarantee contracts 1.03 0.12
Due to others [1]
70.01 113.00
111.67 186.74
[1]
mainly includes security deposits and liabilities towards capital goods

NOTE [24]
Non-current liabilities: Provisions
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Employee pension scheme [Note 52(b)(i)] 345.63 348.86
Post-retirement medical benefits plan [Note 52(b)(i)] 333.93 338.42
Provision for other employee benefits 19.97 18.12
Other provisions [Note 56(a)] 118.24 68.38
817.77 773.78

NOTE [25]
Other non-current liabilities
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Other payables 21.27 68.70
21.27 68.70

536
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [26]
Current liabilities: Financial liabilities - Borrowings
v crore
As at 31-3-2022 As at 31-3-2021
Particulars
Secured Unsecured Total Secured Unsecured Total
Loans repayable on demand 8596.89 4091.27 12688.16 7098.45 3797.92 10896.37
Short-term loans and advances from banks 4137.00 2024.05 6161.05 1953.81 4215.93 6169.74
Short-term unsecured fixed rate debentures – – – – 477.90 477.90
Loans from related parties – 193.74 193.74 – 90.91 90.91
Commercial paper – 11434.01 11434.01 – 10130.91 10130.91
12733.89 17743.07 30476.96 9052.26 18713.57 27765.83

Note: The secured portion of loans payable on demand and bank borrowings are secured by charge on the specified movable and immovable assets of
the respective entities.

NOTE [27]
Current liabilities: Financial liabilities - Current maturities of long term borrowings
v crore
As at 31-3-2022 As at 31-3-2021
Particulars
Secured Unsecured Total Secured Unsecured Total
Redeemable non-convertible fixed rate debentures 13547.82 7707.33 21255.15 9659.27 3230.04 12889.31
Redeemable non-convertible floating rate debentures – 1.73 1.73 – 1.60 1.60
Preference shares – 170.09 170.09 – 319.26 319.26
Term loans from banks 9405.63 540.36 9945.99 9419.55 89.67 9509.22
22953.45 8419.51 31372.96 19078.82 3640.57 22719.39

Notes:
(a) Loans guaranteed by directors R Nil (previous year: R Nil)
(b) Non-convertible debentures and bank borrowings are secured by charge on the specified movable and immovable assets of the respective entities.

NOTE [28]
Current liabilities: Financial liabilities - Other trade payables
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Acceptances 164.52 382.35
Due to related parties:
Associates 7.94 14.54
Joint ventures 1772.57 1761.12
1780.51 1775.66
Due to others 48623.30 43098.23
50568.33 45256.24

537
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [28][a]
Current liabilities: Financial liabilities - Trade payables ageing
v crore
As at 31-3-2022
Outstanding for following periods from due date of payment
Particulars Unbilled
Not due Less than 1 More than Total
Dues 1-2 years 2-3 years
year 3 years
Undisputed:
Micro and small enterprises 36.26 516.10 21.32 0.73 0.57 0.93 575.91
Others 19674.94 22237.09 6387.20 953.50 342.79 962.86 50558.38
Disputed:
Micro and small enterprises – – – – – – –
Others – 8.43 – – 0.19 1.33 9.95
19711.20 22761.62 6408.52 954.23 343.55 965.12 51144.24

v crore
As at 31-3-2021
Outstanding for following periods from due date of payment
Particulars Unbilled
Not due Less than More than Total
Dues 1-2 years 2-3 years
1 year 3 years
Undisputed:
Micro and small enterprises 49.09 403.57 33.48 1.26 0.65 0.81 488.86
Others 18979.64 16856.48 7209.71 664.81 590.50 934.63 45235.77
Disputed:
Micro and small enterprises – – – – – 0.13 0.13
Others – 16.76 1.04 – – 2.67 20.47
19028.73 17276.81 7244.23 666.07 591.15 938.24 45745.23

NOTE [29]
Current liabilities: Other financial liabilities
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Unclaimed dividend 129.35 127.78
Unclaimed interest on debentures 367.31 244.66
Financial guarantee contracts 0.85 0.79
Forward contract payables 402.19 379.25
Embedded derivative payables 84.29 55.38
Due to others [1][2] 5659.33 4521.07
6643.32 5328.93
[1]
Due to others include due to directors: R 112.87 crore (previous year: R 43.19 crore)
[2]
Mainly includes security deposits and liability towards employee benefits and capital goods

NOTE [30]
Other current liabilities
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Contract liabilities [Note 47(d)(i)]
Due to customers (construction and project related activity) 12818.25 11943.66
Advances from customers 17963.32 15876.07
30781.57 27819.73
Other payables [1]
3862.53 3449.90
34644.10 31269.63
[1]
mainly includes statutory dues and liabilities towards joint ventures, volume discount and employee benefits

538
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [31]
Current liabilities: Provisions
v crore
Particulars As at 31-3-2022 As at 31-3-2021
Provision for employee benefits:
Gratuity [Note 52(b)(i)] 236.44 210.43
Compensated absences 1387.54 1372.56
Employee pension scheme [Note 52(b)(i)] 25.93 29.09
Post-retirement medical benefits plan [Note 52(b)(i)] 20.64 21.64
Others 0.86 0.84
1671.41 1634.56
Other provisions [Note 56(a)] 1684.45 1364.12
3355.86 2998.68

NOTE [32]
Contingent Liabilities
v crore

Particulars As at 31-3-2022 As at 31-3-2021

(a) Claims against the Group not acknowledged as debts 3239.98 3222.99
(b) Sales tax/GST liability that may arise in respect of matters in appeal 318.69 351.39
(c) Excise duty/service tax/custom duty/entry tax/stamp duty/municipal cess liability that may
arise, including those in respect of matters in appeal/challenged by the Group in Writ 1007.85 830.85
(d) Income tax liability that may arise in respect of which the Group is in appeal 2877.52 676.62
(e) Guarantees or letter of credit or letter of comfort given to third parties 529.17 340.16
(f) Corporate guarantees for debt given on behalf of joint ventures 255.12 312.67
(g) Bank guarantees given on behalf of joint venture 45.10 51.18
(h) Contingent liabilities in relation to interest in joint operations 6520.74 7042.11
(i) Share in contingent liabilities of joint operations for which the Group is contingently liable 57.01 61.95
(j) Contingent liabilities in respect of liabilities of other joint operators in respect of joint
operations 4405.09 4875.31
(k) Share of joint ventures’ contingent liabilities in respect of a legal claim lodged against the
entity 175.42 169.94
(l) Indemnities for performance given on behalf of third parties 324.60 479.43
Notes:
(i) The Group expects reimbursements of R 13.82 crore (previous year: R 14.24 crore) in respect of the above contingent liabilities except in
respect of matters at (l).
(ii) It is not practicable to estimate the timing of cash outflows, if any, in respect of matters at (a) to (d) above pending resolution of the
arbitration/appellate proceedings. Further, the liability mentioned in (a) to (d) above excludes interest and penalty in cases where the
Group has determined that the possibility of such levy is remote.
(iii) In respect of matters at (e), the cash flows, if any, could occur any time during the subsistence of the underlying agreement.
(iv) In respect of matters at (f), the cash outflows, if any, could generally occur up to four years, being the period over which the validity
of the guarantees extends except in a few cases where the cash outflows, if any, could occur any time during the subsistence of the
borrowing to which the guarantees relate.
(v) In respect of matters at (g), the cash outflows, if any, could generally occur up to two years, being the period over which the validity of
the guarantees extends.
(vi) In respect of matters at (h) to (j), the cash outflows, if any, could generally occur upto completion of projects undertaken by the
respective joint operations.
(vii) In respect of matters at (k), the cash outflows, if any, could generally occur any time up to settlement of claims or during subsistence of
the underlying agreements.
(viii) In respect of matters at (l), the cash outflows, if any, is fully reimbursable by the third parties under an agreement entered in to with
them.

539
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [33]
Commitments
v crore
Particulars As at 31-3-2022 As at 31-3-2021
(a) Estimated amount of contracts remaining to be executed on capital account (net of advances):
(i) Property, plant and equipment 2169.02 1774.32
(ii) Investment property 10.13 47.56
(iii) Intangible assets 28.88 151.14
(b) Other funding commitments:
(i) Undrawn/undisbursed commitments to other companies (in Financial Services segment) 1026.95 1010.35
(ii) Share of joint ventures’ capital commitments 10.80 14.78

NOTE [34]
Revenue from operations
v crore
Particulars 2021-22 2020-21
Sales & service:
Construction and project related activity 100604.09 86406.51
Manufacturing and trading activity 3882.61 3760.72
Engineering service fees 6561.80 5530.89
Software development products and services 25804.51 20088.56
Income from financing activity/annuity based projects 12630.81 14107.19
Property development activity 1264.35 606.14
Fare collection and related activity 201.39 84.00
Servicing fees 1345.32 1178.07
Commission 129.31 110.27
Charter hire income 2.29 3.56
Investment/portfolio management and trusteeship fees 359.09 311.34
Fees for operation and maintenance of power plant 2804.94 2267.90
Revenue from sale of power 81.95 21.60
155672.46 134476.75
Other operational income:
Lease rentals 87.38 81.96
Property maintenance recoveries 49.63 56.44
Profit on sale of a subsidiary classified under realty segment 1.65 –
Premium earned (net) on related forward exchange contracts 53.65 61.50
Profit on sale of investment property – 466.20
Technical fees 4.75 7.12
Miscellaneous income 651.71 829.06
848.77 1502.28
156521.23 135979.03

540
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [35]
Other income
v crore
Particulars 2021-22 2020-21
Interest income on: [Note 46(a)]
Loans and advances to joint ventures and associates 9.94 60.84
Investments 731.82 638.57
Others 321.59 678.25
1063.35 1377.66
Dividend income on:
Trade investments 3.74 14.24
Current investments 0.04 0.21
Others 0.34 14.02
4.12 28.47
Net gain/(loss) on fair valuation of investments (259.39) (97.86)
Net gain/(loss) on sale of investments 699.54 1216.63
Net gain/(loss) on derivatives at fair value through profit or loss 85.56 (42.46)
Net gain/(loss) on sale of PPE and Intangible assets 17.60 62.61
Lease rentals 20.14 19.35
Miscellaneous income (net of expenses) 636.16 864.95
2267.08 3429.35

NOTE [36]
Manufacturing, construction and operating expenses
v crore
Particulars 2021-22 2020-21
Cost of raw materials, components consumed:
Raw materials and components 17268.17 15651.20
Less: Scrap sales 167.33 89.15
17100.84 15562.05
Construction materials consumed 33506.21 24558.23
Purchase of stock-in-trade 1069.50 1213.58
Stores, spares and tools consumed 3091.07 2032.89
Sub-contracting charges 24772.33 22316.18
Changes in inventories of finished goods, stock-in-trade, work-in-progress and
property development:
Closing stock:
Finished goods 89.29 86.01
Stock-in-trade 324.10 360.03
Work-in-progress 7171.57 5252.57
Cost of built-up space and property development land:
Work-in-progress 3277.96 3169.07
Completed property 366.49 384.60
11229.41 9252.28
Carried forward 11229.41 79539.95 9252.28 65682.93

541
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [36]
Manufacturing, construction and operating expenses (contd.)

v crore
Particulars 2021-22 2020-21
Brought forward 11229.41 79539.95 9252.28 65682.93
Less: Opening stock:
Finished goods 86.01 98.56
Stock-in-trade 360.03 308.36
Work-in-progress 5252.57 5748.17
Cost of built-up space and property development land:
Work-in-progress 3069.60 3130.39
Completed property 384.60 72.37
9152.81 9357.85
(2076.60) 105.57
Inventorisation of investment property – 237.80
(2076.60) 343.37
Other manufacturing, construction and operating expenses:
Power and fuel 2141.26 1458.30
Royalty and technical know-how fees 4.38 57.50
Packing and forwarding 599.23 536.23
Rent and hire charges 3071.04 2265.80
Bank guarantee charges 317.17 310.09
Engineering, professional, technical and consultancy fees 2302.10 2008.62
Insurance 497.25 471.08
Rates and taxes 764.91 686.11
Travelling and conveyance 1013.78 828.06
Repairs to plant and equipment 142.84 69.78
Repairs to buildings 25.75 22.74
General repairs and maintenance 600.33 581.74
Provision/(reversal) for foreseeable losses on construction contracts (18.31) 23.66
Other provisions 177.96 116.85
Expenses on construction job in realty business 771.74 236.81
Software development expenses 3068.32 2199.44
Miscellaneous expenses 842.87 1110.75
16322.62 12983.56
Finance cost of financial services business and finance lease activity 5952.54 7691.04
99738.51 86700.90

542
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [37]
Employee benefits expense
v crore
Particulars 2021-22 2020-21
Salaries, wages and bonus 26887.75 22321.33
Contribution to and provision for:
Provident fund and pension fund 584.13 519.07
Superannuation/employee pension and social security schemes 521.12 430.15
Gratuity funds [Note 52(b)(ii)] 209.22 180.30
1314.47 1129.52
Expenses on employee stock option scheme 135.31 137.67
Employee medical and other insurance premium expenses 362.62 329.76
Staff welfare expenses 1208.14 1013.57
Recoveries on account of deputation charges (174.76) (181.31)
29733.53 24750.54

NOTE [38]
Sales, administration and other expenses
v crore
Particulars 2021-22 2020-21
Power and fuel 126.00 123.03
Packing and forwarding 91.27 74.66
Insurance 164.82 131.47
Rent and hire charges 237.47 211.70
Rates and taxes 260.09 292.25
Travelling and conveyance 445.84 317.25
Repairs to buildings 106.41 102.45
General repairs and maintenance 458.56 435.17
Professional fees 1213.03 912.39
Directors’ fees 5.92 7.97
Telephone, postage and telegrams 238.28 220.90
Advertising and publicity 169.88 101.32
Stationery and printing 50.84 49.10
Commission:
Distributors and agents 31.12 33.56
Others 7.02 8.47
38.14 42.03
Bank charges 156.74 145.10
Impairment on lease receivables 301.82 2.35
Corporate social responsibility expenses 232.39 225.20
Collection cost (Financial Services business) 435.70 302.74
Miscellaneous expenses 794.95 643.60
Bad debts and advances written off (net of written back) 4092.37 3039.99
Less: Allowances for expected credit loss written back 3733.86 2481.66
358.51 558.33
Impairment of debt instruments 12.00 151.26
Allowances for expected credit loss 3200.55 3400.09
Loss on fair valuation of loans towards financing activities (net) 347.37 158.76
Recoveries from joint ventures and associates (27.15) (39.48)
Exchange (gain)/loss [net] (666.00) (37.31)
Other provisions 78.46 371.16
8831.89 8903.49

543
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Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [39]
Finance costs
v crore
Particulars 2021-22 2020-21
Interest expenses 3055.42 3904.54
Other borrowing costs 5.81 4.27
Exchange (gain)/loss [net] 64.47 4.63
3125.70 3913.44

39(a) Aggregation of expenses disclosed vide Note 36 - Manufacturing, construction and operating expenses, Note 37 - Employee benefits
expense, Note 38 - Sales, administration and other expenses and Note 39 - Finance costs
R crore

Sr. 2021-22 2020-21

Nature of expenses
No. Note 36 Note 37 Note 38 Note 39 Total Note 36 Note 37 Note 38 Note 39 Total
1 Power and fuel 2141.26 – 126.00 – 2267.26 1458.30 – 123.03 – 1581.33
2 Packing and forwarding 599.23 – 91.27 – 690.50 536.23 – 74.66 – 610.89
3 Insurance 497.25 362.62 164.82 – 1024.69 471.08 329.80 131.47 – 932.35
4 Rent and hire charges 3071.04 – 237.47 – 3308.51 2265.80 – 211.70 – 2477.50
5 Rates and taxes 764.91 – 260.09 – 1025.00 686.11 – 292.25 – 978.36
6 Travelling and conveyance 1013.78 – 445.84 – 1459.62 828.06 – 317.25 – 1145.31
7 Repairs to plant and
equipment 142.84 – – – 142.84 69.78 – – – 69.78
8 Repairs to buildings 25.75 – 106.41 – 132.16 22.74 – 102.45 – 125.19
9 General repairs and
maintenance 600.33 – 458.56 – 1058.89 581.74 – 435.17 – 1016.91
10 Engineering, professional,
technical and consultancy
fees 2302.10 – 1213.03 – 3515.13 2008.62 – 912.39 – 2921.01
11 Finance costs 5952.54 – – 3125.70 9078.24 7691.04 – – 3913.44 11604.48
12 Miscellaneous expenses 842.87 – 794.95 – 1637.82 1110.75 – 643.60 – 1754.35

39(b) Depreciation, amortisation, impairment and obsolescence

v crore
Particulars 2021-22 2020-21
Depreciation on:
Property, plant and equipment 1523.67 1407.81
Right of use assets 456.01 457.87
Investment property 49.76 41.33
2029.44 1907.01
Amortisation of intangible assets 908.59 906.47
Impairment on:
Property, plant and equipment 0.30 76.28
Investment property – 5.18
Goodwill – 1.82
0.30 83.28
Obsolescence on property, plant and equipment 9.62 7.45
2947.95 2904.21

544
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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [40]
The list of subsidiaries, associates, joint ventures and joint operations included in the Consolidated Financial Statements are as under:

As at 31-3-2022 As at 31-3-2021
Sr. Principal place Proportion Proportion
Name of subsidiaries Proportion of Proportion of
No. of business of effective of effective
voting power voting power
ownership ownership
held (%) held (%)
interest (%) interest (%)
Indian subsidiaries
1 Hi-Tech Rock Products and Aggregates Limited India 100.00 100.00 100.00 100.00
2 L&T Geostructure Private Limited India 100.00 100.00 100.00 100.00
3 L&T Infrastructure Engineering Limited India 100.00 100.00 100.00 100.00
4 L&T Hydrocarbon Engineering Limited [a] India – – 100.00 100.00
5 Larsen & Toubro Infotech Limited India 74.05 74.05 74.27 74.27
6 Syncordis Software Services India Private Limited [b] India – – 74.27 74.27
7 Ruletronics Systems Private Limited [b] India – – 74.27 74.27
8 Lymbyc Solutions Private Limited India 74.05 74.05 74.27 74.27
9 Powerup Cloud Technologies Private Limited India 74.05 74.05 74.27 74.27
10 Cuelogic Technologies Private Limited [c] India 74.05 74.05 – –
11 L&T Technology Services Limited India 73.90 73.90 74.24 74.24
12 L&T Thales Technology Services Private Limited India 54.69 54.69 54.94 54.94
13 Graphene Semiconductor Services Private Limited India 73.90 73.90 74.24 74.24
14 Seastar Labs Private Limited India 73.90 73.90 74.24 74.24
15 Esencia Technologies India Private Limited India 73.90 73.90 74.24 74.24
16 Mindtree Limited India 60.99 60.99 61.03 61.03
17 L&T Finance Holdings Limited India 66.26 66.26 63.62 63.62
18 L&T Finance Limited India 66.26 66.26 63.62 63.62
19 L&T Infra Credit Limited (formerly known as L&T Infra
Debt Fund Limited) India 66.26 66.26 63.62 63.62
20 L&T Infra Investment Partners Advisory Private Limited India 66.26 66.26 63.62 63.62
21 L&T Infra Investment Partners Trustee Private Limited India 66.26 66.26 63.62 63.62
22 L&T Investment Management Limited India 66.26 66.26 63.62 63.62
23 L&T Mutual Fund Trustee Limited India 66.26 66.26 63.62 63.62
24 L&T Financial Consultants Limited India 66.26 66.26 63.62 63.62
25 Mudit Cement Private Limited India 66.26 66.26 63.62 63.62
26 L&T Infra Investment Partners India 36.38 36.38 34.94 34.94
27 L&T Metro Rail (Hyderabad) Limited [d] India 100.00 100.00 100.00 100.00
28 L&T Arunachal Hydropower Limited India 100.00 100.00 100.00 100.00
29 L&T Himachal Hydropower Limited India 100.00 100.00 100.00 100.00
30 L&T Power Development Limited India 100.00 100.00 100.00 100.00
31 L&T Uttaranchal Hydropower Limited [e] India – – 100.00 100.00
32 Nabha Power Limited India 100.00 100.00 100.00 100.00
33 Chennai Vision Developers Private Limited India 100.00 100.00 100.00 100.00
34 L&T Asian Realty Project LLP India 100.00 100.00 100.00 100.00
35 L&T Parel Project Private Limited (formerly known as L&T
Parel Project LLP) India 100.00 100.00 100.00 100.00
36 L&T Westend Project LLP India 100.00 100.00 100.00 100.00
37 LTR SSM Private Limited India 99.00 99.00 99.00 99.00
38 L&T Seawoods Limited India 100.00 100.00 100.00 100.00
39 L&T Vision Ventures Limited [f] India – – 68.00 68.00
40 L&T Innovation Campus (Chennai) Limited (formerly
known as L&T Electricals and Automation Limited) India 100.00 100.00 100.00 100.00
41 L&T Realty Developers Limited India 100.00 100.00 100.00 100.00

545
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [40] (contd.)

As at 31-3-2022 As at 31-3-2021
Sr. Principal place Proportion Proportion
Name of subsidiaries Proportion of Proportion of
No. of business of effective of effective
voting power voting power
ownership ownership
held (%) held (%)
interest (%) interest (%)
Indian subsidiaries
42 L&T Construction Equipment Limited India 100.00 100.00 100.00 100.00
43 L&T Valves Limited India 100.00 100.00 100.00 100.00
44 Bhilai Power Supply Company Limited India 99.90 99.90 99.90 99.90
45 L&T Power Limited India 99.99 99.99 99.99 99.99
46 Kesun Iron and Steel Company Private Limited [g] India 95.00 95.00 95.00 95.00
47 L&T Aviation Services Private Limited India 100.00 100.00 100.00 100.00
48 L&T Capital Company Limited India 100.00 100.00 100.00 100.00
49 L&T Infra Contractors Private Limited [h] India – – 100.00 100.00
[a]
The company is merged with Larsen & Toubro Limited w.e.f. April 1, 2021
[b]
The company is merged with Larsen & Toubro Infotech Limited w.e.f. April 1, 2021
[c]
The Group has acquired stake on July 7, 2021
[d]
One equity share (the Golden Share) is held by the Government of Telangana in pursuance of the Shareholders’ Agreement
[e]
The Group has sold its stake on August 30, 2021

[f]
The Group has sold its stake on June 3, 2021
[g]
The company is in process of being struck off from the register of companies
[h]
The company is struck off from the register of companies w.e.f. December 28, 2021

As at 31-3-2022 As at 31-3-2021
Proportion Proportion
Sr. Principal place of Proportion of Proportion of
Name of subsidiaries of effective of effective
No. business voting power voting power
ownership ownership
interest (%) held (%) held (%)
interest (%)
Foreign subsidiaries
1 Larsen & Toubro (Oman) LLC Sultanate of Oman 65.00 65.00 65.00 65.00
2 Larsen & Toubro Qatar LLC [a] Qatar 49.00 100.00 49.00 100.00
3 Larsen & Toubro Saudi Arabia LLC Kingdom of Saudi Arabia 100.00 100.00 100.00 100.00
4 Larsen & Toubro T&D SA (Proprietary) Limited South Africa 72.50 72.50 72.50 72.50
5 Larsen & Toubro Heavy Engineering LLC Sultanate of Oman 70.00 100.00 70.00 100.00
6 L&T Modular Fabrication Yard LLC Sultanate of Oman 70.00 100.00 70.00 100.00
7 Larsen Toubro Arabia LLC Kingdom of Saudi Arabia 75.00 100.00 75.00 100.00
8 L&T Hydrocarbon Saudi Company Kingdom of Saudi Arabia 100.00 100.00 100.00 100.00
9 Larsen & Toubro Kuwait Construction General
Contracting Company WLL Kuwait 49.00 100.00 49.00 100.00
10 PT Larsen & Toubro Hydrocarbon Engineering
Indonesia Indonesia 95.00 95.00 95.00 95.00
11 Larsen & Toubro Electromech LLC Sultanate of Oman 70.00 100.00 70.00 100.00
12 L&T Hydrocarbon International FZE [b] UAE – – 100.00 100.00
13 L&T Information Technology Services (Shanghai)
Co., Limited China 74.05 74.05 74.27 74.27
14 L&T Infotech Financial Services Technologies Inc. Canada 74.05 74.05 74.27 74.27
15 Larsen & Toubro Infotech Canada Limited Canada 74.05 74.05 74.27 74.27
16 Larsen & Toubro Infotech LLC USA 74.05 74.05 74.27 74.27
17 Larsen & Toubro Infotech South Africa
(Proprietary) Limited South Africa 51.52 51.52 51.68 51.68

546
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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [40] (contd.)
As at 31-3-2022 As at 31-3-2021
Proportion Proportion
Sr. Principal place of Proportion of Proportion of
Name of subsidiaries of effective of effective
No. business voting power voting power
ownership ownership
interest (%) held (%) held (%)
interest (%)
Foreign subsidiaries
18 Larsen & Toubro Infotech GmbH Germany 74.05 74.05 74.27 74.27
19 L&T Information Technology Spain SL Spain 74.05 74.05 74.27 74.27
20 Larsen & Toubro Infotech Norge AS Norway 74.05 74.05 74.27 74.27
21 Larsen & Toubro LLC USA 98.76 98.76 98.77 98.77
22 L&T Infotech S. DE R.L. DE C.V. Mexico 74.05 74.05 74.27 74.27
23 Syncordis S.A. Luxembourg 74.05 74.05 74.27 74.27
24 Syncordis France SARL France 74.05 74.05 74.27 74.27
25 Syncordis Limited UK 74.05 74.05 74.27 74.27
26 Syncordis PSF S.A. Luxembourg 74.05 74.05 74.27 74.27
27 Nielsen+Partner Unternehmensberater GmbH Germany 74.05 74.05 74.27 74.27
28 Nielsen+Partner Unternehmensberater AG Switzerland 74.05 74.05 74.27 74.27
29 Nielsen+Partner Pte Limited Singapore 74.05 74.05 74.27 74.27
30 Nielsen&Partner Company Limited Thailand 74.05 74.05 74.27 74.27
31 Nielsen&Partner Pty Limited Australia 74.05 74.05 74.27 74.27
32 Ruletronics Limited UK 74.05 74.05 74.27 74.27
33 Ruletronics Systems Inc. USA 74.05 74.05 74.27 74.27
34 Larsen & Toubro Infotech UK Limited UK 74.05 74.05 74.27 74.27
35 LTI Middle East FZ-LLC UAE 74.05 74.05 74.27 74.27
36 Lymbyc Solutions Inc. USA 74.05 74.05 74.27 74.27
37 Cuelogic Technologies Inc. [c] USA 74.05 74.05 - -
38 L&T Technology Services LLC USA 73.90 73.90 74.24 74.24
39 Graphene Solutions PTE Limited Singapore 73.90 73.90 74.24 74.24
40 Graphene Solutions SDN. BHD. Malaysia 73.90 73.90 74.24 74.24
41 Graphene Solutions Taiwan Limited Taiwan 73.90 73.90 74.24 74.24
42 Esencia Technologies Inc. [d] USA – – 74.24 74.24
43 L&T Technology Services (Shanghai) Co. Limited China 73.90 73.90 74.24 74.24
44 L&T Technology Services (Canada) Limited Canada 73.90 73.90 74.24 74.24
45 Orchestra Technology, Inc. USA 73.90 73.90 74.24 74.24
46 Mindtree Software (Shanghai) Co. Limited China 60.99 60.99 61.03 61.03
47 Bluefin Solutions Sdn. Bhd. Malaysia 60.99 60.99 61.03 61.03
48 Thalest Limited [e]
UK - - 100.00 100.00
49 Larsen & Toubro (East Asia) Sdn.Bhd. Malaysia 30.00 100.00 30.00 100.00
50 Larsen & Toubro International FZE UAE 100.00 100.00 100.00 100.00
51 L&T Global Holdings Limited UAE 100.00 100.00 100.00 100.00
52 L&T Valves Arabia Manufacturing LLC Kingdom of Saudi Arabia 100.00 100.00 100.00 100.00
53 L&T Valves USA LLC USA 100.00 100.00 100.00 100.00
[a]
The company is in process of liquidation
[b]
The company is liquidated on August 17, 2021
[c]
The Group has acquired stake on July 7, 2021
[d]
The company is merged with L&T Technology Services LLC w.e.f. October 1, 2021
[e]
The company is dissolved on September 7, 2021

547
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Notes forming part of the Consolidated Financial Statements (contd.)

Note [40] (contd.)
As at 31-3-2022 As at 31-3-2021
Proportion Proportion
Sr. Principal place Proportion of Proportion of
Name of associates of effective of effective
No. of business voting power voting power
ownership ownership
interest (%) held (%) held (%)
interest (%)
1 Larsen & Toubro Qatar & HBK Contracting Co. WLL Qatar 50.00 50.00 50.00 50.00
2 L&T Camp Facilities LLC UAE 49.00 49.00 49.00 49.00
3 Magtorq Private Limited India 42.85 42.85 42.85 42.85
4 Magtorq Engineering Solutions Private Limited India 39.28 39.28 39.28 39.28
5 Gujarat Leather Industries Limited [a] India 50.00 50.00 50.00 50.00
[a]
The company is under liquidation

As at 31-3-2022 As at 31-3-2021
Proportion Proportion
Sr. Principal place
Name of joint ventures of effective of effective
No. of business
ownership ownership
interest (%) interest (%)
1 L&T - MHI Power Boilers Private Limited India 51.00 51.00
2 L&T - MHI Power Turbine Generators Private Limited India 51.00 51.00
3 L&T Howden Private Limited India 50.10 50.10
4 L&T-Sargent & Lundy Limited India 50.00 50.00
5 L&T Special Steels and Heavy Forgings Private Limited India 74.00 74.00
6 L&T MBDA Missile Systems Limited India 51.00 51.00
7 L&T Sapura Offshore Private Limited India 60.00 60.00
8 L&T Sapura Shipping Private Limited India 60.00 60.00
9 L&T-Chiyoda Limited India 50.00 50.00
10 L&T Hydrocarbon Caspian LLC Azerbaijan 50.00 50.00
11 L&T Infrastructure Development Projects Limited India 51.00 51.00
12 L&T Chennai-Tada Tollway Limited India 51.00 51.00
13 L&T Rajkot-Vadinar Tollway Limited India 51.00 51.00
14 L&T Deccan Tollways Limited India 52.89 52.89
15 L&T Samakhiali Gandhidham Tollway Limited India 51.01 51.01
16 Kudgi Transmission Limited India 51.00 51.00
17 L&T Sambalpur-Rourkela Tollway limited India 51.00 51.00
18 Panipat Elevated Corridor Limited India 51.00 51.00
19 Vadodara Bharuch Tollway Limited India 51.00 51.00
20 L&T Transportation Infrastructure Limited India 63.86 63.86
21 L&T Interstate Road Corridor Limited India 51.00 51.00
22 Ahmedabad-Maliya Tollway Limited India 51.00 51.00
23 L&T Halol-Shamlaji Tollway Limited [a] India – 24.98
24 PNG Tollway Limited India 37.74 37.74
25 Watrak Infrastructure Private Limited [b] India 51.00 –
26 Raykal Aluminium Company Private Limited India 75.50 75.50
27 Indiran Engineering Projects and Systems Kish PJSC Iran 50.00 50.00
28 L&T Infrastructure Engineering Limited and LEA Associates South Asia Private Limited JV
LLP [c] Maldives 61.00 –
[a]
The company ceased to be a joint venture w.e.f. October 21, 2021
[b]
The company has been incorporated on November 18, 2021
[c]
The entity is formed on May 24, 2021

548
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [40] (contd.)

As at 31-3-2022 As at 31-3-2021
Proportion Proportion
Sr. Principal place
Name of joint operations (with specific ownership interest in the arrangement) of effective of effective
No. of business
ownership ownership
interest (%) interest (%)
1 Desbuild L&T Joint Venture India 49.00 49.00
2 Larsen and Toubro Limited-Shapoorji Pallonji & Co. Limited Joint Venture India 50.00 50.00
3 Al Balagh Trading & Contracting Co W.L.L- L&T Joint Venture Qatar 80.00 80.00
4 L&T-AM Tapovan Joint Venture India 65.00 65.00
5 HCC-L&T Purulia Joint Venture India 43.00 43.00
6 International Metro Civil Contractors Joint Venture India 26.00 26.00
7 Metro Tunneling Group India 26.00 26.00
8 L&T-Hochtief Seabird Joint Venture India 90.00 90.00
9 Metro Tunneling Chennai-L&T Shanghai Urban Construction (Group) Corporation Joint
Venture India 75.00 75.00
10 Metro Tunneling Delhi-L&T Shanghai Urban Construction (Group) Corporation Joint Venture India 60.00 60.00
11 L&T-Shanghai Urban Construction (Group) Corporation Joint Venture CC27 Delhi India 68.00 68.00
12 Aktor-Larsen & Toubro-Yapi Merkezi-STFA-Al Jaber Engineering Joint Venture Qatar 22.00 22.00
13 Civil Works Joint Venture Kingdom of Saudi
Arabia 29.00 29.00
14 L&T-Shanghai Urban Construction (Group) Corporation Joint Venture India 51.00 51.00
15 DAEWOO and L&T Joint Venture India 50.00 50.00
16 L&T-STEC JV Mumbai India 65.00 65.00
17 L&T-ISDPL (JV) India 100.00 100.00
18 L&T-IHI Consortium India 100.00 100.00
19 Larsen and Toubro Limited-Scomi Engineering BHD Consortium-Residual Joint Works Joint
Venture India 60.00 60.00
20 Larsen and Toubro Limited-Scomi Engineering BHD Consortium-O&M Joint Venture India 50.00 50.00
21 L&T- Inabensa Consortium India 100.00 100.00
22 L&T-Delma Mafraq Joint Venture UAE 100.00 100.00
23 L&T-AL-Sraiya LRDP 6 Joint Venture Qatar 75.00 75.00
24 Larsen & Toubro Limited & NCC Limited Joint Venture India 55.00 55.00
25 Besix - Larsen & Toubro Joint Venture UAE 50.00 50.00
26 Larsen & Toubro Limited - Passavant Energy & Environment JV India 50.00 50.00
27 LNT-Shriram EPC Tanzania UJV Tanzania 90.00 90.00
28 LTH Milcom Private Limited India 56.67 56.67
29 L&T - Tecton JV India 60.00 60.00
30 L&T - Powerchina JV UAE 55.00 55.00
31 L&T - PCIPL JV India 99.00 99.00
32 Bauer- L&T Geo Joint Venture India 50.00 50.00
33 Larsen Toubro Arabia LLC - Subsea Seven Saudi Company Limited (formerly known as EMAS Kingdom of Saudi
Saudi Arabia Limited) Arabia 50.00 50.00
34 L&T Infrastructure Engineering - LEA Associates South Asia JV India 61.00 61.00
35 L&T Infra Engineering JV United Consultancy Bhutan 75.81 75.81

Note [41]
The components of other equity shown in the Consolidated Balance Sheet include the Group’s share in the respective reserves of subsidiaries,
joint arrangements and associates. Retained earnings comprise Group’s share in general reserve and balance of Profit and Loss. Non-
controlling interest includes its share in the reserves.

549
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [42]
Disclosure pursuant to Ind AS 112 “Disclosure of interest in other entities”: Subsidiaries

(a) Change in the Group’s ownership interest in a subsidiary:

(i) On account of acquisition of part stake (from open market):

v crore
2021-22 2020-21

Name of group (Dr)/Cr to (Dr)/Cr to

(Dr)/Cr to (Dr)/Cr to
companies Acquisition Payment Non- Acquisition Payment Non-
Retained Retained
(%) made controlling (%) made controlling
earnings earnings
interest [1] interest [1]
L&T Finance
Holdings Limited 2.76% 542.83 (546.56) 3.73 – – – –
(ii) On account of dilution due to exercise of Employee Stock Options (without ceding control):
v crore
2021-22 2020-21

Name of group (Dr)/Cr to (Dr)/Cr to

(Dr)/Cr to (Dr)/Cr to
companies Dilution Proceeds Non- Dilution Proceeds Non-
Retained Retained
(%) received controlling (%) received controlling
earnings earnings
interest [1] interest [1]
L&T Finance
Holdings Limited 0.12% 14.36 41.52 (27.16) 0.10% 8.58 32.75 (24.17)
Larsen & Toubro
Infotech Limited 0.22% 0.05 27.37 (27.32) 0.27% 0.06 28.73 (28.67)
L&T Technology
Services Limited 0.34% 0.10 19.23 (19.13) 0.38% 0.11 18.09 (17.98)
Mindtree Limited 0.04% 0.11 7.15 (7.04) 0.05% 0.15 6.99 (6.84)
Total 14.62 95.27 (80.65) 8.90 86.56 (77.66)
[1] Represents proportionate share of the net assets of subsidiaries.

(b) The effect of divestment with ceding of control in subsidiaries during the year is as under:
v crore
Effect on consolidated Line item in Statement of
Sr. profit/(loss) before Profit & Loss in which the
Name of company
No. non-controlling interest gain/(loss) is recognised
2021-22 2020-21
1 L&T Uttaranchal Hydropower Limited 119.70 – Exceptional items before tax
2 L&T Vision Ventures Limited 1.62 – Revenue from operations
3 L&T Capital Markets Limited – 224.72 Exceptional items before tax
4 Subsidiaries in Electrical and Automation business
a. Henikwon Corporation SDN. BHD.
b. Kana Controls General Trading & Contracting Company
W.L.L.
c. L&T Electrical & Automation FZE
d. L&T Electricals & Automation Saudi Arabia Company Profit before tax from
– (370.41)
Limited LLC discontinued operations
e. PT. Tamco Indonesia
f. Tamco Electrical Industries Australia Pty Limited
g. Tamco Switchgear (Malaysia) SDN. BHD.
h. Servowatch Systems Limited
Total 121.32 (145.69)

550
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [42] (contd.)
(c) Disclosure of subsidiaries having material non-controlling interest:

(i) Summarised Statement of Profit and Loss

v crore
L&T Finance Holdings
L&T Finance Limited
Particulars Limited
2021-22 2020-21 2021-22 2020-21
Revenue 10859.26 12125.67 312.03 166.74
Profit/(loss) for the year 807.98 1.36 218.18 116.05
Other comprehensive income 62.02 43.19 2.42 0.11
Total comprehensive income 870.00 44.55 220.60 116.16
Effective % of non-controlling interest 33.74% 36.38% 33.74% 36.38%
Profit/(loss) allocated to non-controlling interest (including
consolidation adjustments) 303.19 226.45 (12.31) 6.94

v crore
Larsen & Toubro Infotech L&T Technology Services
Particulars Limited Limited
2021-22 2020-21 2021-22 2020-21
Revenue 14406.43 11563.54 5873.68 4971.60
Profit/(loss) for the year 2260.93 1787.39 918.55 673.13
Other comprehensive income 64.27 438.62 80.57 254.00
Total comprehensive income 2325.20 2226.01 999.12 927.13
Effective % of non-controlling interest 25.95% 25.73% 26.10% 25.76%
Profit/(loss) allocated to non-controlling interest (including
consolidation adjustments) 541.80 455.44 236.68 170.84
Dividend to non-controlling interest 225.14 135.58 93.59 55.84

v crore
Mindtree Limited
Particulars
2021-22 2020-21
Revenue 10525.29 7967.80
Profit/(loss) for the year 1652.80 1110.30
Other comprehensive income 97.61 329.82
Total comprehensive income 1750.41 1440.12
Effective % of non-controlling interest 39.01% 38.97%
Profit/(loss) allocated to non-controlling interest (including consolidation adjustments) 547.88 340.18
Dividend to non-controlling interest 176.57 112.12

551
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [42] (contd.)
(ii) Summarised Balance Sheet
v crore
L&T Finance Holdings
L&T Finance Limited
Limited
Particulars
As at As at As at As at
31-3-2022 31-3-2021 31-3-2022 31-3-2021
Current assets (a) 50913.19 49371.46 1328.59 2748.26
Current liabilities (b) 46082.61 37390.19 152.58 754.58
Net current assets (c)=(a)-(b) 4830.58 11981.27 1176.01 1993.68
Non-current assets (d) 45258.65 46845.00 9227.53 10091.42
Non-current liabilities (e) 33597.85 43204.83 – 1074.82
Net non-current assets (f)=(d)-(e) 11660.80 3640.17 9227.53 9016.60
Net assets (g)=(c)+(f) 16491.38 15621.44 10403.54 11010.28
Accumulated non-controlling interest 2517.52 2388.47 3724.73 3916.45

v crore
Larsen & Toubro Infotech L&T Technology Services
Limited Limited
Particulars
As at As at As at As at
31-3-2022 31-3-2021 31-3-2022 31-3-2021
Current assets (a) 8339.06 7574.04 4020.12 3313.92
Current liabilities (b) 2617.77 2321.66 1230.42 1010.68
Net current assets (c)=(a)-(b) 5721.29 5252.38 2789.70 2303.24
Non-current assets (d) 3364.24 2413.66 1688.19 1506.19
Non-current liabilities (e) 682.66 726.24 496.35 469.35
Net non-current assets (f)=(d)-(e) 2681.58 1687.42 1191.84 1036.84
Net assets (g)=(c)+(f) 8402.87 6939.80 3981.54 3340.08
Accumulated non-controlling interest 2140.89 1779.56 1051.78 869.76

v crore
Mindtree Limited
Particulars As at As at
31-3-2022 31-3-2021
Current assets (a) 6072.10 4573.20
Current liabilities (b) 2200.80 1592.20
Net current assets (c)=(a)-(b) 3871.30 2981.00
Non-current assets (d) 2084.70 1787.40
Non-current liabilities (e) 482.60 449.80
Net non-current assets (f)=(d)-(e) 1602.10 1337.60
Net assets (g)=(c)+(f) 5473.40 4318.60
Accumulated non-controlling interest 2609.82 2193.14

552
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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [42] (contd.)
(iii) Summarised Statement of cash flows
v crore
L&T Finance Holdings
L&T Finance Limited
Particulars Limited
2021-22 2020-21 2021-22 2020-21
Cash flows from operating activities 1928.55 4761.01 408.15 (170.40)
Cash flows from investing activities (1726.55) (2471.20) (0.77) 272.18
Cash flows from financing activities (281.00) (3235.28) (1664.28) 1295.74
Net increase/(decrease) in cash and cash equivalents (79.00) (945.47) (1256.90) 1397.52

v crore
Larsen & Toubro Infotech L&T Technology Services
Particulars Limited Limited
2021-22 2020-21 2021-22 2020-21
Cash flows from operating activities 1606.90 2179.46 899.30 1267.13
Cash flows from investing activities (668.70) (1638.19) (388.60) (964.62)
Cash flows from financing activities (1046.90) (512.82) (476.00) (353.80)
Net increase/(decrease) in cash and cash equivalents (108.70) 28.45 34.70 (51.29)

v crore
Mindtree Limited
Particulars
2021-22 2020-21
Cash flows from operating activities 1537.30 1995.30
Cash flows from investing activities (686.00) (1183.30)
Cash flows from financing activities (595.70) (422.50)
Net increase/(decrease) in cash and cash equivalents 255.60 389.50

553
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [43]
Disclosures pursuant to Ind AS 112 “Disclosure of interest in other entities”: Joint Ventures and Associates
(a) Summarised Balance Sheet of material joint ventures:
v crore
L&T - MHI Power Turbine L&T Infrastructure
L&T - MHI Power Boilers L&T Sapura Shipping
Generators Private Development Projects
Private Limited Private Limited
Particulars Limited Limited (consolidated)
As at As at As at As at As at As at As at As at
31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021
Current assets
Cash and bank balances 510.08 549.29 38.29 0.80 6.27 9.17 1231.79 1605.66
Other assets 2437.62 2631.37 215.81 142.68 1064.19 1302.59 1176.96 1082.99
Total current assets (A) 2947.70 3180.66 254.10 143.48 1070.46 1311.76 2408.75 2688.65
Total non-current assets
(including Goodwill) (B) 502.71 551.12 532.21 575.39 623.15 673.45 8806.46 10815.82
Current liabilities
Financial liabilities (excluding trade
payables) 230.50 403.26 443.43 271.13 419.12 643.98 1128.50 2031.78
Other liabilities (including trade
payables) 1474.69 1583.95 22.82 33.08 331.03 655.23 353.76 523.86
Total current liabilities (C) 1705.19 1987.21 466.25 304.21 750.15 1299.21 1482.26 2555.64
Non-current liabilities
Financial liabilities (excluding trade
payables) 10.08 15.69 – – 500.23 252.67 7100.33 8326.21
Other liabilities (including trade
payables) – – – – 58.06 73.23 496.23 574.11
Total non-current liabilities (D) 10.08 15.69 – – 558.29 325.90 7596.56 8900.32
Non-controlling interest (NCI) (E) – – – – – – 83.75 138.64
Net assets (A+B-C-D-E) 1735.14 1728.88 320.06 414.66 385.17 360.10 2052.64 1909.87
(b) Reconciliation of carrying amounts of material joint ventures:
v crore
L&T - MHI Power Turbine L&T Infrastructure
L&T - MHI Power Boilers L&T Sapura Shipping
Generators Private Development Projects
Private Limited Private Limited
Particulars Limited Limited (consolidated)
As at As at As at As at As at As at As at As at
31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021
Opening net assets 1728.88 1732.94 414.66 527.79 360.10 332.97 1909.87 2142.95
Profit/(loss) for the year (net of NCI) 241.02 253.08 (107.69) (96.68) 9.85 35.85 24.76 (130.07)
Dividend distributed during the year (234.10) (234.10) – – – – (8.53) –
Other comprehensive income (net of
NCI) (0.66) (23.04) 13.09 (16.45) 11.28 (8.72) 109.24 (102.92)
Equity component of other financial
instruments – – – – 3.95 – – –
Other adjustments – – – – – – 17.31 (0.09)
Closing net assets 1735.14 1728.88 320.06 414.66 385.18 360.10 2052.65 1909.87
Group’s share in % 51.00% 51.00% 60.00% 60.00% 51.00% 51.00% 51.00% 51.00%
Group’s share 884.92 881.72 192.04 248.80 196.44 183.65 1201.84 1128.81
Parent’s investment in group
companies – – – – – – 10.88 10.88
Other adjustments – – – – – – 34.63 19.85
Carrying amount 884.92 881.72 192.04 248.80 196.44 183.65 1247.35 1159.54

554
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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [43] (contd.)
(c) Summarised Statement of Profit and Loss of material joint ventures:
v crore
L&T - MHI Power Turbine L&T Infrastructure
L&T - MHI Power Boilers L&T Sapura Shipping
Generators Private Development Projects
Particulars Private Limited Private Limited
Limited Limited (consolidated)
2021-22 2020-21 2021-22 2020-21 2021-22 2020-21 2021-22 2020-21
Revenue 2310.60 1763.44 0.70 0.23 607.55 724.85 1711.68 1548.31
Interest income 24.92 42.76 0.25 0.13 2.29 10.83 38.29 54.53
Depreciation and amortisation (63.32) (67.17) (61.13) (61.04) (49.46) (52.64) (580.46) (491.09)
Finance cost (0.30) (1.92) (12.94) (7.93) (50.11) (36.68) (893.51) (842.38)
Tax expense (83.34) (89.15) (0.14) – – – (35.84) (34.91)
Profit/(loss) for the year (net of NCI) 241.02 253.08 (107.69) (96.68) 9.85 35.85 24.76 (130.07)
Other comprehensive income (net of NCI) (0.66) (23.04) 13.09 (16.45) 11.28 (8.72) 109.24 (102.92)
Total comprehensive income (net of NCI) 240.36 230.04 (94.60) (113.13) 21.13 27.13 134.00 (232.99)
(d) Financial information in respect of individually not material joint ventures/associates:
v crore
As at As at
Particulars
31-3-2022 31-3-2021
Aggregate carrying amount of investment in individually not material joint venture/associate 208.60 196.55
Aggregate amounts of the Group’s share of:
Profit/(loss) for the year 43.92 (34.38)
Other comprehensive income for the year 0.63 (14.09)
Total comprehensive income for the year 44.55 (48.47)
(e) Carrying amount of investments in joint ventures/associates:
v crore
As at As at
Particulars
31-3-2022 31-3-2021
Non-material associates 10.23 10.70
Non-material joint ventures 198.37 185.85
Sub-total 208.60 196.55
Material joint ventures 2520.75 2473.71
Total 2729.35 2670.26
(f) Share in profit/(loss) of joint ventures/associates (net):
v crore
Particulars 2021-22 2020-21
Non-material associates (0.60) (1.54)
Non-material joint ventures 44.52 (32.84)
Sub-total 43.92 (34.38)
Material joint ventures 84.27 48.78
Total 128.19 14.40

555
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [44]
Disclosures pursuant to Ind AS 103 “Business Combinations”:

Acquisition of Cuelogic Technologies Private Limited

(i) On July 7, 2021, the Group has acquired 100% stake in Cuelogic Technologies Private Limited (Cuelogic), a Pune based company,
operating in the IT & Technology Services. Cuelogic is a digital engineering company which builds and modernises digital products
leveraging cloud native metholodologies across web and mobile. Cuelogic will help bolster Group’s digital engineering practice.

(ii) Assets acquired and liabilities recognised on the date of acquisition are as follows:
v crore
Cuelogic
Assets
Non-current assets
Intangible assets 16.52
Property, plant and equipment 0.81
Other non-current assets 2.17 19.50

Current assets
Trade receivables 7.65
Cash and bank balances 9.91
Other current assets 1.55 19.11
Total assets 38.61
Liabilities
Non-current liabilities
Deferred tax liabilty 3.38
Current liabilities
Trade payables 2.21
Other current liabilities 6.56 8.77
Total liabilities 12.15
Net assets acquired 26.46
(iii) Calculation of Goodwill:
v crore
Cuelogic
Cash (A) 45.03
Deferred consideration (B) 5.97
Contingent consideration payable over three years (C) 12.86
Purchase consideration (D=A+B+C) 63.86
Less: Fair value of net assets acquired 26.46
Goodwill 37.40
(iv) Goodwill is attributable to future growth of business from this acquisition and assembled workforce. The goodwill is not deductible for
income tax purposes.

(v) The Group has recognised contingent consideration in accordance with the terms of the share purchase agreement. The maximum
contingent consideration of R 14.13 crore is payable to the promoters of Cuelogic upon achievement of the specified financial targets.
The fair value of the contingent consideration is determined by assigning probabilities to achievement of targets.

(vi) The entity has reported revenue of R 43.10 crore and profit of R 0.50 crore from the date of acquisition till March 31, 2022. Had the
entity been acquired from April 1, 2021, it would have reported revenue of R 57.50 crore and profit of R 1.00 crore during 2021-22.

(vii) The transaction costs of R 0.39 crore related to the acquisition have been expensed in the Statement of Profit and Loss for the year
ended March 31, 2022.

(viii) Trade receivables acquired have been substantially collected during the year.

556
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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [45]
Disclosure pursuant to Ind AS 105 “Non-current Assets Held for Sale and Discontinued Operations”:

(a) During the previous year 2020-21, the Group completed divestment of Electrical and Automation (E&A) business which was classified
as discontinued operation. The operating profit from E&A business upto the date of divestment and the gain on divestment have been
shown below.
v crore
Sr.
Particulars 2020-21
No.
(i) Revenue from operations 1605.67
(ii) Other income 5.38
(iii) Total income [(i)+(ii)] 1611.05
(iv) Total expenses 1528.47
(v) Profit/(loss) before tax [(iii)-(iv)] 82.58
(vi) Tax expenses 30.12
(vii) Profit/(loss) after tax [(v)-(vi)] 52.46
(viii) Non-controlling interest - discontinued operations –
(ix) Profit for the year attributable to owners of the Company [(vii)-(viii)] 52.46
(x) Gain on sale of Electrical and Automation business before tax 10707.92
(xi) Tax on above (including related deferred tax reversal) 2522.46
(xii) Gain on sale of E&A business (net of tax) [includes reclassification of exchange differences on foreign currency
translation R 138.50 crore] 8185.46
(xiii) Other comprehensive income 14.90
(xiv) Total comprehensive income [(ix)+(xii)+(xiii)] 8252.82

(b) Details of net assets of Electrical & Automation business divested:

v crore
As at
Particulars
August 31, 2020
Group(s) of assets classified as held for sale:
Property, plant and equipment 812.09
Capital work-in-progress 11.22
Goodwill 335.11
Other intangible assets 205.55
Intangible assets under development 130.46
Right-of-use assets 17.50
Other loans 3.35
Inventories 840.18
Trade receivables 1195.14
Cash and cash equivalents 151.74
Tax assets 1.63
Other assets 504.59
Total 4208.56
Liabilities associated with group(s) of assets classified as held for sale:
Borrowings 59.06
Trade payables 943.43
Provisions 169.44
Tax liabilities (net) 6.84
Other liabilities 574.71
Total 1753.48
Carrying amount of net assets sold 2455.08

557
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [45] (contd.)
(c) Summarised Statement of Cash Flows of discontinued operations:
v crore
Particulars 2020-21
Cash flows from operating activities 87.01
Cash flows from investing activities (57.17)
Cash flows from financing activities 6.98
Net increase/(decrease) in cash and cash equivalents 36.82

(d) The Group has following non-current assets/disposal group recognised as held for sale:

Asset/disposal group Reportable segment

As at 31-3-2022
Asset management business (L&T Investment Management Limited) Financial services
As at 31-3-2021
Current assets (L&T Vision Ventures Limited) Others

(e) The details of assets/disposal group classified as held for sale and liabilities associated thereto are as under:
v crore
As at As at
Particulars
31-3-2022 31-3-2021
Group(s) of assets classified as held for sale:
Property, plant and equipment 0.41 –
Goodwill 627.88 –
Other intangible assets 2.21 –
Right-of-use assets 1.40 –
Other loans 0.01 6.24
Investments 160.01 –
Trade receivables 18.98 –
Cash and cash equivalents 3.32 –
Tax assets 11.17 –
Other assets 5.39 –
Total 830.78 6.24
Liabilities associated with group(s) of assets classified as held for sale:
Borrowings – 3.19
Trade payables 4.17 –
Provisions 1.60 –
Other liabilities 73.96 0.01
Total 79.73 3.20

558
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [46]
Disclosure pursuant to Ind AS 108 “Operating Segment”:

(a) Information about reportable segments:

v crore
For the year ended 31-3-2022 For the year ended 31-3-2021
Particulars Inter- Inter-
External Total External Total
segment segment
Revenue
Infrastructure 72404.36 1155.73 73560.09 61431.32 530.32 61961.64
Hydrocarbon 19174.55 90.66 19265.21 16924.54 39.26 16963.80
Power 4418.00 30.19 4448.19 3174.15 18.49 3192.64
Heavy Engineering 2724.29 314.52 3038.81 2711.67 306.81 3018.48
Defence Engineering 3217.93 8.47 3226.40 3396.30 13.82 3410.12
Electrical & Automation (discontinued operations) – – – 1520.63 85.04 1605.67
IT & Technology Services 32255.77 218.05 32473.82 25463.36 155.40 25618.76
Financial Services 11971.10 – 11971.10 13403.55 – 13403.55
Developmental Projects 4367.52 – 4367.52 3621.43 – 3621.43
Others 5987.71 294.13 6281.84 5852.71 240.04 6092.75
Total 156521.23 2111.75 158632.98 137499.66 1389.18 138888.84
Revenue from discontinued operations – – – (1520.63) (85.04) (1605.67)
Inter-segment revenue – (2111.75) (2111.75) – (1304.14) (1304.14)
Total 156521.23 – 156521.23 135979.03 – 135979.03
Segment result [Profit/(loss) before interest and tax]
Infrastructure 5182.41 4521.54
Hydrocarbon 1500.64 1369.25
Power 139.49 111.22
Heavy Engineering 470.46 488.32
Defence Engineering 533.48 616.98
Electrical & Automation (discontinued operations) – 84.37
IT & Technology Services 6410.44 4823.20
Financial Services 1469.80 1285.78
Developmental Projects (230.59) (196.55)
Others 938.52 1122.96
Total 16414.65 14227.07
Result of discontinued operations – (84.37)
Inter-segment margins on capital jobs (65.32) (24.95)
Finance costs (3125.70) (3913.44)
Unallocated corporate income net of expenditure 1187.10 2031.49
Profit before exceptional items and tax 14410.73 12235.80
Tax expense:
Current tax (4512.09) (3923.39)
Deferred tax 295.48 (87.43)
Net profit after tax (before exceptional items) from
continuing operations 10194.12 8224.98
Exceptional items before tax 119.70 (3693.78)
Tax expense on exceptional items:
Current tax (22.77) (48.44)
Deferred tax – 186.20
Exceptional items (net of tax) 96.93 (3556.02)
Net profit after tax from continuing operations 10291.05 4668.96
Share in profit/(loss) after tax of joint ventures/associates
(net) 128.19 14.40
Profit for the year from continuing operations 10419.24 4683.36
Discontinued operations
Profit from discontinued operations – 10790.50
Tax expense of discontinued operations – (2552.58)
Net profit after tax from discontinued operations – 8237.92
Net profit after tax from continuing operations &
discontinued operations 10419.24 12921.28
Non-controlling interest for the year (1749.91) (1338.35)
Net profit after tax, non-controlling interests and share in
profit/(loss) of joint ventures/associates 8669.33 11582.93

559
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [46] (contd.)
(a) Information about reportable segments:
v crore
Segment Assets Segment Liabilities
Particulars As at As at As at As at
31-3-2022 31-3-2021 31-3-2022 31-3-2021
Infrastructure 85192.89 77112.89 60959.09 51943.12
Hydrocarbon 13799.14 10346.92 11632.20 11489.78
Power 7037.69 6694.17 4757.17 4672.13
Heavy Engineering 2899.17 3169.97 1314.82 1430.06
Defence Engineering 4847.75 5857.41 3732.45 3766.94
IT & Technology Services 34529.13 30340.20 8088.49 6898.22
Financial Services 105459.21 107342.41 86746.21 89968.72
Developmental Projects 27552.27 30091.85 7416.60 8689.24
Others 14375.84 13636.87 6301.54 5984.01
Segment total 295693.09 284592.69 190948.57 184842.22
Corporate unallocated assets/liabilities 27007.36 28690.99 36378.15 40521.40
Inter-segment assets/liabilities (2651.53) (2009.97) (2651.53) (2009.97)
Consolidated total assets/liabilities 320048.92 311273.71 224675.19 223353.65
v crore
Depreciation, amortisation,
Non-cash expenses other
impairment & obsolescence
than depreciation included
Particulars included in segment
in segment expense
expense
2021-22 2020-21 2021-22 2020-21
Infrastructure 737.86 705.46 36.31 33.53
Hydrocarbon 170.45 179.36 2.56 3.58
Power 32.33 35.58 0.91 0.48
Heavy Engineering 46.41 47.21 1.18 0.82
Defence Engineering 116.76 136.69 1.83 1.14
Electrical & Automation (discontinued operations) – 0.69 – 2.14
IT & Technology Services 1202.94 1162.65 59.66 39.27
Financial Services 104.29 86.41 26.43 54.51
Developmental Projects 330.44 390.97 – –
Others 101.95 104.26 2.29 2.39
Segment total 2843.43 2849.28 131.17 137.86
Unallocable 125.31 77.51 4.14 1.95
Relates to discontinued operations – (0.69) – (2.14)
Inter-segment (20.79) (21.89) – –
Consolidated total 2947.95 2904.21 135.31 137.67

Note: Impairment loss included in segment expense: Hydrocarbon segment: R 0.30 crore (previous year: Nil), Financial Services segment: Nil
(previous year: R 5.18 crore), Developmental Projects segment: Nil (previous year: R 76.17 crore) and Corporate Unallocable: Nil (previous year:
R 1.92 crore).

560
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [46] (contd.)
(a) Information about reportable segments:
v crore
Profit/(loss) of associates
and joint ventures
Interest income included in Finance costs included in
accounted applying equity
Particulars segment income segment expense
method not included in
segment result
2021-22 2020-21 2021-22 2020-21 2021-22 2020-21
Infrastructure 12.20 6.80 194.80 276.08 0.40 (1.73)
Hydrocarbon 0.63 3.24 – – (71.71) (50.03)
Power – – – – 151.41 173.29
Heavy Engineering – – – – – (86.68)
Defence Engineering – – – – 27.17 8.09
Electrical & Automation
(discontinued operations) – 0.63 – – – –
IT & Technology Services 131.24 33.05 – – – –
Financial Services 280.34 257.82 5741.54 7206.59 – –
Developmental Projects 31.54 394.47 361.36 627.12 20.93 (63.93)
Others 67.33 63.82 – – (0.01) (0.14)
Segment total 523.28 759.83 6297.70 8109.79 128.19 (21.13)
Unallocable 1055.17 948.85 (194.80) (276.08) – 35.53
Relates to discontinued operations – (0.63) – – – –
Inter-segment (515.10) (330.39) (150.36) (142.67) – –
Consolidated total 1063.35 1377.66 5952.54 7691.04 128.19 14.40

v crore
Investment in associates and
Additions to non-current joint ventures accounted
assets applying equity method
Particulars included in segment assets
As at As at
2021-22 2020-21
31-3-2022 31-3-2021
Infrastructure 1996.60 1177.39 4.88 4.23
Hydrocarbon 516.16 105.93 241.11 319.28
Power 53.30 55.88 1194.99 1173.34
Heavy Engineering 42.17 36.32 – –
Defence Engineering 84.26 56.83 40.97 13.80
Electrical & Automation (discontinued operations) – 68.81 – –
IT & Technology Services 1847.12 1024.00 – –
Financial Services 142.31 692.09 – –
Developmental Projects 656.13 324.35 1247.34 1159.54
Others 984.87 735.65 0.06 0.07
Segment total 6322.92 4277.25 2729.35 2670.26
Unallocable 2024.21 1809.22 – –
Inter-segment (239.32) (1207.12) – –
Consolidated total 8107.81 4879.35 2729.35 2670.26

561
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [46] (contd.)
(b) Geographical information

v crore
Revenue [1]
Particulars
2021-22 2020-21
India (i) 100738.60 86564.17
Foreign countries (ii):
United States of America 21914.49 17806.21
Kingdom of Saudi Arabia 7848.53 7641.83
Sultanate of Oman 2997.58 2333.69
United Arab Emirates 2813.65 1981.85
Bangladesh 2473.87 1456.73
Qatar 2140.05 1670.39
Algeria 1984.40 3019.13
Kuwait 1666.82 2930.32
United Kingdom 1565.20 995.39
Other countries 10378.04 11099.95
Total foreign countries (ii) 55782.63 50935.49
Total (i+ii) 156521.23 137499.66
Less: Discontinued operations – 1520.63
Total 156521.23 135979.03

[1]
Geography wise break up of revenue is based on location of project other than service industries where it is based on location of customer.

v crore
Non-current assets
Particulars As at As at
31-3-2022 31-3-2021
India 47882.84 48168.09
Foreign countries 2181.15 2601.29
Total 50063.99 50769.38

(c) Revenue contributed by any single customer in any of the operating segments, whether reportable or otherwise, does not exceed 10%
of the Group’s total revenue.

(d) The Group’s reportable segments are organised based on the nature of products and services offered by these segments.

(e) Segment reporting: basis of identifying operating segments, reportable segments and definition of each reportable segment:
(i) Basis of identifying operating segments:
Operating segments are identified as those components of the Group (a) that engage in business activities to earn revenues
and incur expenses (including transactions with any of the Group’s other components); (b) whose operating results are regularly
reviewed by the Group’s Corporate Executive Management to make decisions about resource allocation and performance
assessment; and (c) for which discrete financial information is available.

The Group has nine reportable segments [described under “segment composition”] which are the Group’s independent businesses.
The nature of products and services offered by these businesses are different and are managed separately given the different sets of
technology and competency requirements. In arriving at the reportable segment, the six operating segments have been aggregated
and reported as “infrastructure segment” as these operating segments have similar economic characteristics in terms of long term
average gross margins, nature of the products and services, type of customers, methods used to distribute the products and services
and the nature of regulatory environment applicable to them.

(ii) Reportable segments:

An operating segment is classified as reportable segment if reported revenue (including inter-segment revenue) or absolute amount
of result or assets exceed 10% or more of the combined total of all the operating segments.

562
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [46] (contd.)
(iii) Performance of a segment is measured based on segment profit (before interest and tax), as included in the internal management
reports that are reviewed by the Group’s Corporate Executive Management. The performance of financial services segment and
finance lease activities of power development segment are measured based on segment profit (before tax) after deducting the
interest expense.

(iv) Segment composition:

• Infrastructure segment comprises engineering and construction of (a) building and factories, (b) transportation
infrastructure, (c) heavy civil infrastructure, (d) power transmission & distribution, (e) water & effluent treatment and (f)
minerals & metals.

• Hydrocarbon segment comprises EPC solutions for the global Oil & Gas Industry from front-end design through detailed
engineering, modular fabrication, procurement, project management, construction, installation and commissioning.

• Power segment comprises turnkey solutions for Coal-based and Gas-based thermal power plants including power generation
equipment with associated systems and/or balance-of-plant packages.

• Heavy Engineering segment comprises manufacture and supply of custom designed, engineered critical equipment &
systems to core sector industries like Fertiliser, Refinery, Petrochemical, Chemical, Oil & Gas and Thermal & Nuclear Power.

• Defence Engineering segment comprises (a) design, development, serial production and through life-support of equipment,
systems and platforms for Defence and Aerospace sectors and (b) design, construction and repair/refit of defence vessels.

• Electrical & Automation segment (upto the date of divestment and disclosed as discontinued operation) comprises
(a) manufacture and sale of low and medium voltage switchgear components, custom-built low and medium voltage
switchboards, electronic energy meters/protection (relays) systems and control & automation products and (b) marine control &
automation systems.

• IT & Technology Services segment comprises information technology and integrated engineering services.

• Financial Services segment comprises rural finance, housing finance, infrastructure finance and asset management.

• Developmental Projects segment comprises (a) development, operation and maintenance of infrastructure projects, toll and
fare collection and (b) power generation & development (i) thermal power and (ii) hydel power (upto the date of divestment).

• Others segment includes realty, manufacture and sale of industrial valves, smart world & communication projects (including
military communications), manufacture, marketing and servicing of construction equipment and parts thereof, marketing
and servicing of mining machinery and parts thereof, manufacture and sale of rubber processing machinery and and digital
platforms – (i) SuFin for B2B e-commerce & (ii) EduTech for higher education and professional skilling. None of the businesses
reported as part of others segment meet any of the quantitative thresholds for determining reportable segments for the year
ended March 31, 2022.

563
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [47]
Disclosure pursuant to Ind AS 115 “Revenue from Contracts with Customers”:

(a) Disaggregation of revenue into operating segments and geographical areas:

v crore
2021-22
Revenue as per Ind AS 115 Total as per
Statement
Segment
Other revenue of Profit and
Domestic Foreign Total
Loss/Segment
report
Infrastructure 55530.37 16737.96 72268.33 136.03 72404.36
Hydrocarbon 12320.94 6789.80 19110.74 63.82 19174.56
Power 4150.44 264.56 4415.00 3.00 4418.00
Heavy Engineering 1597.04 1084.61 2681.65 42.64 2724.29
Defence Engineering 2796.28 418.70 3214.98 2.94 3217.92
IT & Technology Services 2278.72 29977.05 32255.77 – 32255.77
Financial Services 482.85 – 482.85 11488.25 11971.10
Developmental Projects 3282.83 – 3282.83 1084.69 4367.52
Others 5504.74 453.15 5957.89 29.82 5987.71
Total 87944.21 55725.83 143670.04 12851.19 156521.23
v crore
2020-21
Revenue as per Ind AS 115 Total as per
Statement
Segment
Other revenue of Profit and
Domestic Foreign Total
Loss/Segment
report
Infrastructure 45439.78 15689.25 61129.03 302.29 61431.32
Hydrocarbon 8923.18 7985.88 16909.06 15.48 16924.54
Power 3004.23 148.25 3152.48 21.67 3174.15
Heavy Engineering 1176.67 1492.11 2668.78 42.89 2711.67
Defence Engineering 2565.67 823.24 3388.91 7.39 3396.30
Electrical & Automation (discontinued
operations) 1048.59 462.59 1511.18 9.45 1520.63
IT & Technology Services 1806.84 23656.52 25463.36 – 25463.36
Financial Services 455.59 1.68 457.27 12946.28 13403.55
Developmental Projects 2564.96 – 2564.96 1056.47 3621.43
Others 4682.73 648.53 5331.26 521.45 5852.71
Total 71668.24 50908.05 122576.29 14923.37 137499.66
Less: R
 evenue from discontinued
operations 1048.59 462.59 1511.18 9.45 1520.63
Total 70619.65 50445.46 121065.11 14913.92 135979.03
(b) Break up of revenue (as per Ind AS 115) into over a period of time and at a point in time:

v crore
Over a period of time At a point in time
Year Continuing Discontinued Continuing Discontinued
Total Total
operations operations operations operations
2021-22 133075.90 – 133075.90 10594.14 – 10594.14
2020-21 112080.96 112.61 112193.57 8984.15 1398.57 10382.72

564
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [47] (contd.)
(c) Movement in expected credit loss (“ECL”) during the year:

v crore
Provision on trade Provision on
Particulars receivables contract assets
2021-22 2020-21 2021-22 2020-21
Provision as at April 1 3405.59 3181.21 1174.22 1012.05
Changes in allowance for ECL:
Provision/(reversal) of allowance for ECL 430.06 375.05 375.95 144.83
Additional provision (net) 200.08 279.07 69.28 17.95
Written off as bad debts (146.52) (425.58) – –
Translation adjustment 3.10 (4.24) 0.27 (0.61)
Addition on account of business combination 0.20 0.09 – –
Provision as at March 31 3892.51 3405.60 1619.72 1174.22

(d) Contract balances:

(i) Movement in contract balances during the year:

v crore
2021-22 2020-21

Particulars Contract Contract Net contract Contract Contract Net contract

assets liabilities balances assets liabilities balances
(A) (B) (A-B) (A) (B) (A-B)
Balance as at April 1 47619.14 27819.73 19799.41 51849.63 28019.45 23830.18
Balance as at March 31 52043.67 30781.57 21262.10 47619.14 27819.73 19799.41
Net increase/(decrease) 4424.53 2961.84 1462.69 (4230.49) (199.72) (4030.77)

Note:

During the current year, increase in net contract balances is primarily due to higher revenue recognition as compared to progress
bills raised.

During the previous year, decrease in net contract balances is primarily due to lower revenue recognition as compared to progress
bills raised.

(ii) Revenue recognised from opening balance of contract liabilities amounts to R 6520.65 crore (previous year: R 6529.93 crore).

(iii) Revenue recognised from the performance obligation satisfied (or partially satisfied) upto previous year (arising out of contract
modifications) amounts to R 183.85 crore (previous year: R 184.65 crore).

(e) Cost to obtain/fulfil the contract:

(i) Amortisation in Statement of Profit and Loss: R 68.94 crore (previous year: R 48.77 crore).

(ii) Recognised as contract assets as at March 31, 2022: R 88.46 crore (as at March 31, 2021: R 117.28 crore).

565
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [47] (contd.)
(f) Reconciliation of contracted price with revenue during the year:

v crore
Particulars 2021-22 2020-21
Opening contracted price of orders on hand as at April 1 [1] 757584.33 726478.59
Add:
Fresh orders/change orders received (net) 185311.91 172612.76
Increase due to additional consideration recognised as per contractual
terms/(decrease) due to scope reduction (net) 544.16 (19858.81)
Addition/(deletion) on account of business combination/divestment – (5195.92)
Increase/(decrease) due to exchange rate movements (net) and others 1641.45 (1971.03)
Less:
Orders completed during the year 95534.85 114481.26
Closing contracted price of orders on hand as at March 31 [1] 849547.00 757584.33
Total revenue recognised during the year 143670.04 122576.29
Less: Revenue out of orders completed during the year 33146.95 31443.00
Revenue out of orders under execution at the end of the year (i) 110523.09 91133.29
Revenue recognised upto previous year (from orders pending 364086.72 324114.92
completion at the end of the year) (ii)
Increase/(decrease) due to exchange rate movements (net) (iii) (3447.08) 585.64
Balance revenue to be recognised in future viz. Order book (iv) 378384.27 341750.48
Closing contracted price of orders on hand as at March 31 [1] (i+ii+iii+iv) 849547.00 757584.33
[1]
including full value of partially executed contracts

(g) Outstanding performance and time for its expected conversion into revenue:

v crore
Time for expected conversion in revenue
Outstanding performance Total Upto Beyond
1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years
1 Year 5 years
As at March 31, 2022 378384.27 158010.81 114741.81 67802.71 23743.85 5596.80 8488.29
As at March 31, 2021 341750.48 133445.56 111800.51 64675.40 18652.99 6020.31 7155.71
(h) The Group has undertaken a project for construction, operation and maintenance of the Metro Rail System on Design-Build-Finance-
Operate-Transfer (DBFOT) basis as per the concession agreement with the government authorities. The significant terms of the
arrangement are as under:

Period of the concession Initial period of 35 years and extendable by another 25 years at the option of the concessionaire
subject to fulfilment of certain conditions under concession agreement. Considered further extension
of initial concession period by 7 years in terms of Article 29 of Concession Agreement.
Remuneration Fare collection rights from the users of the Metro Rail System, license to use land provided by the
government for constructing depots and for transit oriented development and earn lease rental
income on such development and grant of viability gap fund.
Funding from grantor Viability Gap Funding of R 1458 crore.
Infrastructure return at the Being DBFOT project, the project assets have to be transferred at the end of concession period.
end of the concession period
Renewal and termination Further extension of 25 years will be granted at the option of the concessionaire upon satisfaction
options of Key Performance Indicators laid under the concession agreement. This option is to be exercised by
the concessionaire during the 33rd year of the initial concession period. Termination of the concession
agreement can either be due to (a) Force Majeure (b) Non Political event (c) Indirect political event
(d) Political event. On occurrence of any of the above events, the obligations, dispute resolution,
termination payments etc. are as detailed in the concession agreement.

566
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [47] (contd.)

Rights & Obligations Major obligations of the concessionaire are relating to:
(a) project agreements
(b) change in ownership
(c) issuance of Golden Share to the Government
(d) maintenance of aesthetic quality of the Rail System
(e) operation and maintenance of the rolling stock and equipment necessary and sufficient for
handling users equivalent to 110% of the average PHPDT etc.
Major obligations of the Government are:
(a) providing required constructible right of way for construction of rail system and land required for
construction of depots and transit oriented development
(b) providing reasonable support and assistance in procuring applicable permits required for
construction
(c) providing reasonable assistance in obtaining access to all necessary infrastructure facilities and
utilities
(d) obligations relating to competing facilities
(e) obligations relating to supply of electricity etc.
Classification of service Intangible assets have been recognised towards rights to charge the users of the utility.
arrangement
Construction revenue R 27.62 crore (previous year: R 80.04 crore) [included in Note 47(a) supra]
recognised

Note [48]
(a) Exceptional items (net of tax) for 2021-22 include:
(i) Gain on divestment of stake in a hydel power plant: R 143.63 crore.
(ii) Tax expense on transfer of NxT digital business from the Parent to Mindtree Limited, a subsidiary: R 46.70 crore.
(b) Exceptional items (net of tax) for 2020-21 include:
(i) Gain on divestment of wealth management business: R 176.28 crore.
(ii) Impairment of funded exposure in L&T Special Steels and Heavy Forgings Private Limited: R 1075.30 crore (net), comprising
impairment of R 1139.03 crore, applying value-in-use method and using discount rate of 11.90% and provision towards
constructive obligation to fund its future losses R 14.85 crore, reduced by interest income of R 78.58 crore from the joint venture.
(iii) Impairment of following assets in power development business on assessment of recoverable value and management’s long-term
plan for the business: R 2657.00 crore comprising:
• Property, plant and equipment including capital work-in-progress in a hydel power plant: R 1053.00 crore, applying value-in-
use method and using discount rate of 12.75%.
• Finance lease receivables in a thermal power project: R 1604.00 crore, applying fair value method based on benchmark
multiples (level 2 of the fair value hierarchy).

567
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [49]
Disclosure pursuant to Ind AS 1 ”Presentation of financial statements“:

(a) Current assets expected to be recovered within twelve months and after twelve months from the reporting date:
v crore
As at 31-3-2022 As at 31-3-2021
Sr. Within After Within After
Particulars Note
No. twelve twelve Total twelve twelve Total
months months months months
1 Inventories 11 3044.91 2898.41 5943.32 3606.22 2214.32 5820.54
2 Trade receivables 13 44154.26 1984.66 46138.92 41202.04 1027.74 42229.78
3 Other loans 17 280.34 – 280.34 235.35 – 235.35
4 Other financial assets 18 3834.23 5.81 3840.04 3250.33 1.35 3251.68
5 Other current assets 19 50884.49 9248.40 60132.89 46580.54 8210.94 54791.48
(b) Current liabilities expected to be settled within twelve months and after twelve months from the reporting date:
v crore
As at 31-3-2022 As at 31-3-2021
Sr. Within After Within After
Particulars Note
No. twelve twelve Total twelve twelve Total
months months months months
1 Lease liability 352.25 54.29 406.54 367.44 38.66 406.10
2 Trade payables:
Due to micro enterprises and small
enterprises 481.19 94.72 575.91 368.94 120.05 488.99
Due to others 28 48246.80 2321.53 50568.33 42903.66 2352.58 45256.24
3 Other financial liabilities 29 6621.12 22.20 6643.32 5307.03 21.90 5328.93
4 Other current liabilities 30 28755.17 5888.93 34644.10 25762.66 5506.97 31269.63
5 Provisions 31 2620.50 735.36 3355.86 2244.34 754.34 2998.68

568
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [50]
Disclosure with regard to changes in liabilities arising from financing activities as required by Ind AS 7 “Statement of Cash Flows”:

v crore

Current
maturities Non-
Non-current Current Current
Sr. of long current
Particulars borrowings borrowings lease Total
No. term lease
(Note 22) (Note 26) liability
borrowings liability
(Note 27)
i Balance as at 31-3-2020 82331.33 35021.02 23654.77 1741.60 424.95 143173.67
ii Additions to lease liability – – – 153.00 202.79 355.79
iii Changes from financing cash flows 13804.46 (6151.20) (16385.72) (188.28) (193.36) (9114.10)
iv Effect of changes in foreign exchange rates 37.85 (166.70) (31.87) (6.19) 0.62 (166.29)
v Interest accrued (net of interest paid) (267.27) (614.32) 1350.88 – – 469.29
vi Other changes (transfer within categories) (13786.33) (345.00) 14131.33 9.34 (9.34) –
vii De-recognition of lease liability – – – (91.75) (19.56) (111.31)
viii Liabilities classified as held for sale/realised on
disposal – 22.03 – – – 22.03
ix Balance as at 31-3-2021 (ix = i to viii) 82120.04 27765.83 22719.39 1617.72 406.10 134629.08
x Additions to lease liability – – – 332.86 111.83 444.69
xi Changes from financing cash flows (5278.53) 2739.13 (5873.78) (211.69) (195.51) (8820.38)
xii Effect of changes in foreign exchange rates 40.71 51.19 (0.58) 17.46 (4.50) 104.28
xiii Interest accrued (net of interest paid) 1007.20 (79.19) (1743.18) – – (815.17)
xiv Other changes (transfer within categories) (16271.11) – 16271.11 (101.57) 101.57 –
xv De-recognition of lease liability – – – (21.47) (12.95) (34.42)
xvi Balance as at 31-3-2022 (xvi = ix to xv) 61618.31 30476.96 31372.96 1633.31 406.54 125508.08

Amounts reported in Statement of Cash Flows under financing activities:

v crore

Sr. No. Particulars 2021-22 2020-21

a Proceeds from non-current borrowings 24654.13 36258.60
b Repayment of non-current borrowings (35806.44) (38839.86)
c Proceeds from/(repayment of) other borrowings (net) 2739.13 (6151.20)
d Repayment of lease liability (407.20) (381.64)
e Total changes from financing cash flows (e = a to d) (8820.38) (9114.10)

569
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [51]
Disclosure pursuant to Ind AS 12 “Income Taxes”:

(a) Major components of tax expense/(income):

v crore

Sr.
Particulars 2021-22 2020-21
No.
Consolidated Statement of Profit and Loss:
(a) Profit and Loss section:
(i) Current income tax:
Current income tax expense 4552.46 6124.21
Effect of previously unrecognised tax losses and tax offsets used during the current year (31.96) (164.99)
Tax expense of earlier years 14.36 117.77
4534.86 6076.99
(ii) Deferred tax:
Tax expense on origination and reversal of temporary differences (295.54) 350.21
Effect of previously unrecognised tax losses and tax offsets on which deferred tax benefit is
recognised 0.06 (1.56)
(295.48) 348.65
Income tax expense/(income) [(i)+(ii)] 4239.38 6425.64
Income tax expense attributable to:
Profit from continuing operations (including exceptional items) 4239.38 3873.06
Profit from discontinued operations – 2552.58
4239.38 6425.64
(b) Other comprehensive income section:
(i) Items not to be reclassified to profit or loss in subsequent periods:
(A) Current tax expense/(income):
On re-measurement of defined benefit plans 25.04 13.53
25.04 13.53
(B) Deferred tax expense/(income):
On re-measurement of defined benefit plans 0.49 0.16
0.49 0.16
(ii) Items to be reclassified to profit or loss in subsequent periods:
(A) Current tax expense/(income):
On gain/(loss) on cash flow hedges other than mark to market 71.85 (2.45)
71.85 (2.45)
(B) Deferred tax expense/(income):
Net gain/(loss) on cost of hedging reserve 0.77 2.98
On mark to market gain/(loss) on cash flow hedges 44.65 481.63
On gain/(loss) on fair value of debt securities (23.02) 31.14
On exchange differences in translating the financial statements of foreign operations (6.69) 4.42
15.71 520.17
Income tax expense/(income) [(i)+(ii)] 113.09 531.41

570
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [51] (contd.)
(b) Reconciliation of Income tax expense and accounting profit multiplied by domestic tax rate applicable in India:

v crore

Sr.
Particulars 2021-22 2020-21
No.
(a) Profit before tax from:
Continuing operations (including exceptional items) 14530.43 8542.02
Discontinued operations – 10790.50
14530.43 19332.52
(b) Corporate tax rate as per Income Tax Act, 1961 25.17% 25.17%
(c) Tax on accounting profit [(c)=(a)*(b)] 3657.02 4865.61
(d) (i) Tax on Corporate Social Responsibility expenses, not tax deductible 58.78 52.83
(ii) Tax effect on impairment/(reversal) and fair valuation losses recognised on which deferred
tax asset is not recognised (21.41) 875.18
(iii) Effect of previously unrecognised tax losses and unutilised tax credits used to reduce tax
expense (31.90) (166.56)
(iv) Tax effect of losses of current year on which no deferred tax benefit is recognised 582.49 488.34
(v) Effect of tax paid on foreign source income which is exempt from tax in India (158.70) (329.17)
(vi) Effect of current tax related to earlier years 14.36 117.77
(vii) Tax effect on various other items 138.75 521.64
Total effect of tax adjustments [(i) to (vii)] 582.37 1560.03
(e) Tax expense recognised during the year [(e)=(c)+(d)] 4239.39 6425.64
(f) Effective tax rate [(f)=(e)/(a)] 29.18% 33.24%
(c) (i) Unused tax losses for which no deferred tax asset is recognised in Balance Sheet:

As at 31-3-2022 As at 31-3-2021
Particulars
v crore Expiry year v crore Expiry year
Tax losses (Business loss and unabsorbed depreciation)
- Amount of losses having expiry 3619.73 FY 2022-23 to 2270.66 FY 2021-22 to
FY 2029-30 FY 2028-29
- Amount of losses having no expiry 5363.93 5206.14
Tax losses (Capital loss) 2482.70 FY 2022-23 to 1280.40 FY 2021-22 to
FY 2029-30 FY 2028-29
Total 11466.36 8757.20
(ii) Unrecognised deductible temporary differences for which no deferred tax asset is recognised in Balance Sheet:
v crore
Sr. As at As at
Particulars
No. 31-3-2022 31-3-2021
(a) Towards provision for diminution in value of investments 1599.73 2020.94
(b) Arising out of upward revaluation of tax base of assets (on account of indexation
benefit) 3467.76 2991.19
(c) Other items giving rise to temporary differences 2170.90 2597.66
Total 7238.39 7609.79

571
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [51] (contd.)
(d) Major components of deferred tax liabilities and deferred tax assets:
v crore
Charge/
Deferred tax Charge/(credit) Debit/(credit) to Deferred tax
(credit) to
liabilities/ Effect due to Classified as to Other hedge reserve Exchange liabilities/
Particulars Statement
(assets) as at acquisition held for sale comprehensive (other than difference (assets) as at
of Profit and
31-3-2021 income through OCI) 31-3-2022
Loss
Deferred tax liabilities:
- Difference between book base and tax base of
property, plant & equipment, investment property
and intangible assets 2384.61 (85.49) – 1.35 – – 0.21 2300.68
- Disputed statutory liabilities paid and claimed
as deduction for tax purposes but not debited to
Statement of Profit and Loss 175.19 19.15 – – – – – 194.34
- Net gain/(loss) on derivative transactions to be
offered for tax purposes in the year of transfer/
settlement 227.02 10.41 – – 45.42 (0.23) – 282.62
- Other items giving rise to temporary differences 1248.25 (192.54) – (6.83) 0.03 – (1.53) 1047.38
Deferred tax liabilities 4035.07 (248.47) – (5.48) 45.45 (0.23) (1.32) 3825.02
Offsetting of deferred tax liabilities with deferred
tax (assets) (2856.41) (2785.69)
Net deferred tax liabilities 1178.66 1039.33
Deferred tax (assets):
- Provision for doubtful debts, loans & advances
and contract assets (2523.45) 44.76 – – 0.02 – – (2478.67)
- Unpaid statutory liabilities (296.45) (57.43) – – – – – (353.88)
- Unabsorbed depreciation (1217.80) 3.56 – – – – – (1214.24)
- Carried forward tax losses (461.64) 7.49 – – – – – (454.15)
- Unutilised MAT credit (216.99) 31.23 – – – – – (185.76)
- Other items giving rise to temporary differences (837.08) (76.62) 3.38 1.23 (29.27) – (0.73) (939.10)
Deferred tax (assets) (5553.41) (47.01) 3.38 1.23 (29.25) – (0.73) (5625.79)
Offsetting of deferred tax (assets) with deferred tax
liabilities 2856.41 2785.69
Net deferred tax (assets) (2697.00) (2840.10)
Net deferred tax liability/(assets) (1518.34) (295.48) 3.38 (4.25) 16.20 (0.23) (2.05) (1800.77)

572
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [52]
Disclosure pursuant to Ind AS 19 “Employee Benefits” [Note 1(II)(p)]:

(a) Defined contribution plans: Amount of R 876.60 crore (previous year: R 804.43 crore) has been incurred. Out of above, R 876.60 crore
(previous year: R 790.91 crore) is included in “employee benefits expense” [Note 37] and Nil (previous year: R 7.24 crore) pertains to
discontinued operations in the Statement of Profit and Loss and Nil (previous year: R 6.28 crore) has been capitalised.

(b) Defined benefit plans:

(i) The amounts recognised in Balance Sheet are as follows:
v crore
Post-retirement Trust-managed
Gratuity plan Pension plan
medical benefit plan provident fund plan
Particulars
As at As at As at As at As at As at As at As at
31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021 31-3-2022 31-3-2021
A) Present value of defined benefit obligation
– Wholly funded 1191.84 1092.08 – – – – 5849.85 5238.92
– Wholly unfunded 236.44 210.43 354.57 360.06 371.56 377.95 – –
1428.28 1302.51 354.57 360.06 371.56 377.95 5849.85 5238.92
Less: Fair value of plan assets 1090.95 1026.31 – – – – 6301.93 5727.47
Add: Amount not recognised as an asset
[limit in para 64(b)] 0.39 1.06 – – – – 6.13 7.14
Amount to be recognised as liability or
(asset) 337.72 277.26 354.57 360.06 371.56 377.95 (445.95) (481.41)
B) Amounts reflected in the Balance Sheet
Liabilities 337.93 277.78 354.57 360.06 371.56 377.95 65.91 51.62
Assets (0.21) (0.52) – – – – – –
Net liability/(asset) 337.72 277.26 354.57 360.06 371.56 377.95 65.91 51.62
Net liability/(asset) - Current 337.72 277.26 20.64 21.64 25.93 29.09 65.91 51.62
Net liability/(asset) - Non-current – – 333.93 338.42 345.63 348.86 – –
(ii) The amounts recognised in Statement of Profit and Loss are as follows:

v crore
Post-retirement Trust-managed
Gratuity plan Pension plan
Particulars medical benefit plan provident fund plan
2021-22 2020-21 2021-22 2020-21 2021-22 2020-21 2021-22 2020-21
1 Current service cost 209.67 183.77 22.70 21.81 2.98 4.03 229.00 [3] 172.67 [3]
2 Interest cost 69.37 67.41 22.67 22.31 23.52 23.62 426.23 402.85
3 Interest income on plan assets (62.93) (54.36) – – – – (426.23) (402.85)
4 Re-measurement - Actuarial losses/
(gains) - Difference between actual return
on plan assets and interest income (34.31) (53.12) – – – – 36.84 (194.87)
5 Re-measurement - Actuarial losses/
(gains) - Others (16.13) 3.05 (37.12) (12.06) (18.32) 5.25 – –
6 Past service cost – – – – 10.22 – – –
7 Actuarial gain/(loss) not recognised in
books – – – – – – (36.84) 194.87
8 Adjustment for earlier years – 0.19 – – – – – –
9 Re-measurement - Effect of the limit in
para 64(b) – (0.59) – – – – – –
10 Translation adjustments (0.55) 0.29 – – – – – –
11 Amount capitalised out of the above – (0.32) – (0.02) – – – –
Total (1 to 11) 165.12 146.32 8.25 32.04 18.40 32.90 229.00 172.67

573
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [52] (contd.)

v crore
Post-retirement Trust-managed
Gratuity plan Pension plan
Particulars medical benefit plan provident fund plan
2021-22 2020-21 2021-22 2020-21 2021-22 2020-21 2021-22 2020-21
I. Amount included in “Employee benefits
expense” 209.22 180.30 22.70 21.34 13.20 4.03 229.00 169.56
II. Amount included as part of
“Manufacturing, construction and
operating expenses” 0.76 0.87 – – – – – –
III. Amount included as part of “finance
costs” 5.58 12.20 22.67 22.31 23.52 23.62 – –
IV. Amount included as part of “Other
comprehensive income” (50.44) (50.59) (37.12) (12.06) (18.32) 5.25 – –
V. Amount included in "profit from
discontinued operations" – 3.54 – 0.45 – – – 3.11
Total (I+II+III+IV+V) 165.12 146.32 8.25 32.04 18.40 32.90 229.00 172.67
Actual return on plan assets 97.24 107.48 – – – – 389.39 597.72
(iii) The changes in the present value of defined benefit obligation representing reconciliation of opening and closing balances thereof
are as follows:

v crore
Post-retirement Trust-managed
Gratuity plan Pension plan
Particulars medical benefit plan provident fund plan
2021-22 2020-21 2021-22 2020-21 2021-22 2020-21 2021-22 2020-21
Opening balance of the present value of
defined benefit obligation 1302.51 1285.39 360.06 340.27 377.95 369.12 5238.92 4675.02
Add: Current service cost 209.67 183.77 22.70 21.81 2.98 4.03 229.00 [3]
172.67 [3]
Add: Interest cost 69.37 67.41 22.67 22.31 23.52 23.62 426.23 402.85
Add: Contribution by plan participants
i) Employer – – – – – – – –
ii) Employee – – – – – – 576.95 483.25
iii) Transfer-in/(out) – – – – – – – –
Add/(less): Actuarial losses/(gains) arising
from changes in -
i) Demographic assumptions (1.69) (5.08) 4.44 2.44 – – – –
ii) Financial assumptions (50.25) 38.95 (32.23) 9.07 (16.71) 6.00 – –
iii) Experience adjustments 35.81 (31.41) (9.33) (23.58) (1.61) (0.75) – –
Less: Benefits paid [1] (145.29) (223.37) (13.74) (11.98) (24.79) (24.07) (769.57) (579.02)
Less: Unfunded liablity classified as held for
sale/divestment – (1.04) – (0.28) – – – –
Add: Past Service Cost – – – – 10.22 – – –
Add: Liabilities assumed on transfer of
employees 0.25 (5.22) – – – – 147.94 79.50
Add: Business combination/acquisition 1.62 – – – – – – –
Add: Adjustment for earlier years – (0.17) – – – – – 4.68
Add/(less): Translation adjustments 6.28 (6.72) – – – – 0.38 (0.03)
Closing balance of the present value of
defined benefit obligation 1428.28 1302.51 354.57 360.06 371.56 377.95 5849.85 5238.92
Excluding amount pertaining to discontinued operations.
[1]

574
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [52] (contd.)
(iv) Changes in the fair value of plan assets representing reconciliation of the opening and closing balances thereof are as follows:

v crore
Trust-managed
Gratuity plan
Particulars provident fund plan
2021-22 2020-21 2021-22 2020-21
Opening balance of the fair value of the plan assets 1026.31 851.04 5727.47 4960.42
Add: Interest income on plan assets [2] 62.93 54.36 426.23 402.85
Add/(less): Actuarial gains/(losses) - Difference between actual
return on plan assets and interest income 34.31 53.12 (36.84) 194.87
Add: Contribution by the employer 74.13 223.62 216.30 171.45
Add: Contribution by plan participants – – 590.76 437.87
Add: Assets assumed on transfer of employees 0.07 (0.84) 147.58 134.49
Less: Benefits paid (106.80) (154.99) (769.57) (579.02)
Add: Adjustment for earlier years – – – 4.54
Closing balance of the plan assets 1090.95 1026.31 6301.93 5727.47
Notes: The fair value of the plan assets under the trust managed provident fund plan has been determined at amounts based on their value

at the time of redemption, assuming a constant rate of return to maturity.

[2] Basis used to determine interest income on plan assets:

The Trust formed by the Parent Company and a few subsidiaries manage the investments of provident funds and gratuity fund. Interest
income on plan assets is determined by multiplying the fair value of the plan assets by the discount rate stated in (vii) below both
determined at the start of the annual reporting period.

The Group expects to fund R 122.46 crore (previous year: R 74.74 crore) towards its gratuity plan and R 196.05 crore (previous year:
R 180.66 crore) towards its trust-managed provident fund plan during the year 2022-23.

[3] Employer’s contribution to provident fund.

(v) The fair value of major categories of plan assets are as follows:

v crore
Gratuity plan
Particulars As at 31-3-2022 As at 31-3-2021
Quoted Unquoted Total Quoted Unquoted Total
Cash and cash equivalents – 6.28 6.28 – 50.84 50.84
Equity instruments 26.35 – 26.35 19.98 – 19.98
Debt instruments - Corporate bonds 215.05 – 215.05 263.69 0.31 264.00
Debt instruments - Central government bonds 173.34 – 173.34 191.62 – 191.62
Debt instruments - State government bonds 146.59 – 146.59 106.67 – 106.67
Debt instruments - Public sector unit bonds 21.40 – 21.40 23.54 – 23.54
Mutual funds - Equity 24.09 45.83 69.92 23.21 23.41 46.62
Mutual funds - Debt 1.90 – 1.90 1.69 3.17 4.86
Mutual funds - Others – 3.90 3.90 – 2.90 2.90
Special deposit scheme – 1.48 1.48 – 1.48 1.48
Fixed deposits – 3.37 3.37 – 3.44 3.44
Insurer managed fund – 410.99 410.99 – 381.78 381.78
Other (payables)/receivables 4.30 6.08 10.38 4.60 (76.02) (71.42)
Closing balance of the plan assets 613.02 477.93 1090.95 635.00 391.31 1026.31

575
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [52] (contd.)
v crore
Trust-managed provident fund plan
Particulars As at 31-3-2022 As at 31-3-2021
Quoted Unquoted Total Quoted Unquoted Total
Cash and cash equivalents – 29.71 29.71 – 50.17 50.17
Equity instruments 237.14 – 237.14 100.23 – 100.23
Debt instruments - Corporate bonds 1901.76 – 1901.76 1640.71 23.77 1664.48
Debt instruments - Central government bonds 1112.23 – 1112.23 1264.76 – 1264.76
Debt instruments - State government bonds 1740.15 – 1740.15 1313.54 – 1313.54
Debt instruments - Public sector unit bonds 648.19 – 648.19 709.73 – 709.73
Mutual funds - Equity 86.04 240.75 326.79 125.00 158.04 283.04
Mutual funds - Debt 0.72 0.01 0.73 0.72 17.61 18.33
Mutual funds - Others 12.24 30.19 42.43 – 5.98 5.98
Special deposit scheme – 233.25 233.25 – 271.56 271.56
Fixed deposits – 1.87 1.87 – 2.68 2.68
Others 1.02 26.66 27.68 24.15 18.82 42.97
Closing balance of the plan assets 5739.49 562.44 6301.93 5178.84 548.63 5727.47
(vi) The average duration (in number of years) of the defined benefit obligation at the end of the reporting period is as follows:

Plans As at 31-3-2022 As at 31-3-2021

1. Gratuity 6.66 6.97
2. Post-retirement medical benefit plan 14.50 14.92
3. Pension plan 7.52 8.01
(vii) Principal actuarial assumptions at the Balance Sheet date (expressed as weighted average):
Plans As at 31-3-2022 As at 31-3-2021
(A) Discount rate:
(a) Gratuity plan 6.82% 6.30%
(b) Pension plan 6.82% 6.30%
(c) Post-retirement medical benefit plan 6.82% 6.30%
(B) Annual increase in healthcare costs (see note below) 5.00% 5.00%
(C) Salary growth rate:
(a) Gratuity plan 6.20% 6.06%
(b) Pension plan 9.00% 9.00%
(D) Attrition rate for various age groups:

(a) For gratuity plan, the attrition rate varies from 1% to 40% (previous year: 1% to 31%).

(b) For pension plan, the attrition rate varies from 0% to 2% (previous year: 0% to 2%).

(c) For post-retirement medical benefit plan, the attrition rate varies from 1% to 40% (previous year: 1% to 23%).

(E) The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and
other relevant factors, such as supply and demand in the employment market.

(F) The interest payment obligation of trust-managed provident fund is expected to be adequately covered by the interest income
on long term investments of the fund. Any shortfall in the interest income over the interest obligation is recognised in the
Statement of Profit and Loss as actuarial losses.

(G) The obligation of the Group under the post-retirement medical benefit plan is limited to the overall ceiling limits. At present,
healthcare cost, as indicated in the principal actuarial assumption given above, has been assumed to increase at 5% p.a.

576
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [52] (contd.)
(H) A one percentage point change in actuarial assumptions would have the following effects on defined benefit obligation:

v crore
Effect of 1% increase Effect of 1% decrease
Particulars As at As at As at As at
31-3-2022 31-3-2021 31-3-2022 31-3-2021
Gratuity
Impact of change in salary growth rate 92.70 89.01 (83.36) (79.91)
Impact of change in discount rate (82.42) (79.22) 93.34 90.02
Post-retirement medical benefit plan
Impact of change in health care cost 27.04 27.96 (22.18) (22.84)
Impact of change in discount rate (46.48) (48.28) 58.96 61.81
Company pension plan
Impact of change in discount rate (26.45) (28.08) 30.37 32.39
(viii) Characteristics of defined benefit plans and associated risks:
(A)
Gratuity plan:
The Parent Company operates gratuity plan through a trust whereby every employee is entitled to the benefit equivalent to
fifteen days salary last drawn for each completed year of service. The same is payable to vested employees at retirement, death
while in employment or on termination of employment. The benefit vests after five years of continuous service. The Company’s
scheme is more favourable as compared to the obligation under The Payment of Gratuity Act, 1972.

The defined benefit plans for gratuity of the Parent Company and material domestic subsidiary companies are administered by
separate gratuity funds that are legally separate from the Parent Company and the material domestic subsidiary companies.
The trustees nominated by the Group are responsible for the administration of the plans. There are no minimum funding
requirements of these plans. The funding of these plans is based on gratuity fund’s actuarial measurement framework set
out in the funding policies of the plan. These actuarial measurements are similar compared to the assumptions set out in (vii)
supra. An insignificant portion of the gratuity plan of the Group attributable to subsidiary companies is administered by the
respective subsidiary companies and is funded through insurer managed funds. A part of the gratuity plan is unfunded and
managed within the Group. Further, the unfunded portion also includes amounts payable in respect of the Group’s foreign
operations which result in gratuity payable to employees engaged as per the local laws of country of operation. Employees do
not contribute to any of these plans.

(B) Post-retirement medical plan:

The post-retirement medical benefit plan provides for reimbursement of health care costs to certain categories of employees
post their retirement. The reimbursement is subject to an overall ceiling sanctioned based on cadre of the employee at the
time of retirement. The plan is unfunded. Employees do not contribute to the plan.

(C)
Pension plan:
In addition to contribution to State-managed pension plan (EPS scheme), the Group operates a post retirement pension
scheme, which is discretionary in nature for certain cadres of employees. The quantum of pension depends on the cadre of the
employee at the time of retirement. The plan is unfunded. Employees do not contribute to the plan.

(D) Trust-managed provident fund plan:

The Parent Company and a few subsidiaries manage provident fund plan through a provident fund trust for its employees
which is permitted under The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. The plan mandates
contribution by employer at a fixed percentage of employee’s salary. Employees also contribute to the plan at a fixed
percentage of their salary as a minimum contribution and additional sums at their discretion. The plan guarantees interest
at the rate notified by the provident fund authority. The contribution by employer and employee together with interest are
payable at the time of separation from service or retirement whichever is earlier. The benefit under this plan vests immediately
on rendering of service.
The interest payment obligation of trust-managed provident fund is expected to be adequately covered by the interest income
on long term investments of the fund. Any shortfall in the interest income over the interest obligation is recognised in the
Statement of Profit and Loss as actuarial loss. Any loss/gain arising out of the investment risk and actuarial risk associated with
the plan is also recognised as expense or income in the period in which such loss/gain occurs.
All the above defined benefit plans expose the Group to general actuarial risks such as interest rate risk and market
(investment) risk.

(ix) The Group will assess the impact of Code on Wages, 2019 and the Code on Social Security, 2020 and give effect in the financial
statements when the date of implementation of these codes and the Rules/Schemes thereunder are notified.

577
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Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [53]
Disclosure pursuant to Ind AS 20 “Accounting for Government Grants and Disclosure of Government Assistance”:
During the year, the Group has recognised the following Government Grants as income/reduction from underlying expenses:
v crore
Particulars 2021-22 2020-21
(i) Export incentives, duty drawback and other schemes 89.65 311.27
(ii) Benefits towards employee benefits expenses for COVID-19 pandemic 13.85 48.80
(iii) Tax credit for Research & Development in foreign jurisdiction(s) 5.67 5.10

Note [54]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures”:
(a) List of related parties:
(i) Name of associate entities with whom transactions were carried out during the year:
Associate Entities:
1 Magtorq Private Limited 2 Magtorq Engineering Solutions Private Limited
3 Larsen & Toubro Qatar & HBK Contracting Co. WLL 4 L&T Camp Facilities LLC

(ii) Name of joint venture entities with whom transactions were carried out during the year:
Joint Venture Entities:
1 L&T Infrastructure Development Projects Limited 2 L&T Interstate Road Corridor Limited
3 Ahmedabad ‐ Maliya Tollway Limited 4 L&T Halol‐Shamlaji Tollway Limited [1]
5 L&T Chennai-Tada Tollway Limited 6 Panipat Elevated Corridor Limited
7 L&T Rajkot‐Vadinar Tollway Limited 8 Vadodara Bharuch Tollway Limited
9 L&T Deccan Tollways Limited 10 L&T Samakhiali Gandhidham Tollway Limited
11 Kudgi Transmission Limited 12 L&T Sambalpur‐Rourkela Tollway limited
13 L&T Transportation Infrastructure Limited 14 L&T‐Chiyoda Limited
15 L&T - MHI Power Boilers Private Limited 16 L&T - MHI Power Turbine Generators Private Limited
17 L&T‐Sargent & Lundy Limited 18 L&T Howden Private Limited
19 L&T Sapura Shipping Private Limited 20 L&T Sapura Offshore Private Limited
21 L&T Special Steels and Heavy Forgings Private Limited 22 L&T MBDA Missile Systems Limited
23 Raykal Aluminium Company Private Limited 24 L&T Infrastructure Engineering Limited and LEA
Associates South Asia Private Limited JV LLP [2]
[1]
The company ceased to be a joint venture w.e.f. October 21, 2021       [2]
The entity is formed on May 24, 2021

(iii) Name of post-employment benefit plans with whom transactions were carried out during the year:
Provident Fund Trusts:
1 Larsen & Toubro Officers & Supervisory Staff Provident 2 Larsen & Toubro Limited Provident Fund of 1952
Fund
3 Larsen & Toubro Limited Provident Fund 4 L&T Kansbahal Officers & Supervisory Provident Fund
5 L&T Kansbahal Staff & Workmen Provident Fund 6 L&T Construction Equipment Employees Provident Fund
Trust
7 L&T Valves Employees Provident Fund
Gratuity Trusts:
1 Larsen & Toubro Officers & Supervisors Gratuity Fund 2 Larsen & Toubro Gratuity Fund
3 L&T Technology Services Limited Employee Group Gratuity 4 L&T Shipbuilding Limited Employees Group Gratuity
Scheme Assurance Scheme
5 Nabha Power Limited Employees’ Group Gratuity 6 L&T Hydrocarbon Engineering Limited Group Gratuity
Assurance Scheme Scheme
7 Mindtree Limited Employees Gratuity Fund Trust 8 L&T-Gulf Employees Group Gratuity Assurance Scheme
Superannuation Trust
1 Larsen & Toubro Limited Senior Officers’ Superannuation Scheme

578
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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [54] (contd.)
(iv) Name of Key Management Personnel (of the Parent Company) and their relatives with whom transactions were carried out during
the year:

(A) Executive Directors:

1 Mr. S. N. Subrahmanyan (Chief Executive Officer & 2 Mr. R. Shankar Raman (Whole‐time Director & Chief
Managing Director) Financial Officer)
3 Mr. Shailendra Roy (Whole‐time Director) [1] 4 Mr. Subramanian Sarma (Whole‐time Director) [2]
5 Mr. D. K. Sen (Whole‐time Director) 6 Mr. M. V. Satish (Whole‐time Director)
7 Mr. J. D. Patil (Whole-time Director) 8 Mr. S. V. Desai (Whole‐time Director) [3]
9 Mr. T. Madhava Das (Whole-time Director) [3]
(B) Non-executive/Independent Directors:
1 Mr. A. M. Naik (Group Chairman) 2 Mr. M. M. Chitale
3 Mr. Subodh Bhargava [4] 4 Mr. M. Damodaran
5 Mr. Vikram Singh Mehta 6 Mr. Adil Zainulbhai
7 Ms. Sunita Sharma [5] 8 Mr. Thomas Mathew T [6]
9 Mr. Ajay Shankar [7] 10 Ms. Naina Lal Kidwai [8]
11 Mr. Sanjeev Aga 12 Mr. Narayanan Kumar
13 Mr. Hemant Bhargava 14 Ms. Preetha Reddy [9]
15 Mr. Pramit Jhaveri [10]

[1]
Ceased w.e.f. July 7, 2020 on account of superannuation [2]
Appointed as Whole-time Director w.e.f. August 19, 2020
(Non-executive Director till August 18, 2020)
[3]
Appointed w.e.f. July 11, 2020 [4]
Ceased w.e.f. March 29, 2022 on account of completion of term
[5]
Ceased w.e.f. May 3, 2021 on account of withdrawal of [6]
Ceased w.e.f. April 2, 2020 on account of completion of term
nomination by Life Insurance Corporation of India
[7]
Ceased w.e.f. May 29, 2020 on account of completion of term [8]
Ceased w.e.f. February 28, 2021 on account of completion of term
[9]
Appointed w.e.f. March 1, 2021 [10]
Appointed w.e.f. April 1, 2022

(v) Entity with common Key Managerial Personnel with whom transactions were carried out during the year:
1 Mindtree Foundation

(b) Disclosure of related party transactions:

v crore
2021-22 2020-21
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
(i) Purchase of goods & services (including commission paid)
Joint ventures, including: 1564.42 1312.21
L&T - MHI Power Boilers Private Limited 705.70 698.19
L&T - MHI Power Turbine Generators Private Limited 352.83 253.06
L&T-Chiyoda Limited 227.63 147.76
Associates, including: 28.63 18.18
Magtorq Private Limited 27.60 18.18
Total 1593.05 1330.39
(ii) Sale of goods/contract revenue & services
Joint ventures, including: 74.28 58.96
L&T - MHI Power Boilers Private Limited 47.78 40.53
L&T Special Steels and Heavy Forgings Private Limited 12.73 5.49
L&T - MHI Power Turbine Generators Private Limited 8.63 0.05
L&T-Chiyoda Limited 2.69 7.74
Total 74.28 58.96

579
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [54] (contd.)
v crore
2021-22 2020-21
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
(iii) Purchase/lease of property, plant and equipment
Joint ventures: 0.05 26.38
L&T Infrastructure Development Projects Limited – 26.38
L&T-Sargent & Lundy Limited 0.05 –
Total 0.05 26.38
(iv) Sale of property, plant and equipment
Key management personnel: – 0.61
Mr. Shailendra Roy – 0.61
Total – 0.61
(v) Investments as other equity/equity
Joint ventures, including: 2.11 –
L&T - MHI Power Turbine Generators Private Limited 2.02 –
Total 2.11 –
(vi) Net inter-corporate deposits given/(repaid)
Joint ventures: 148.03 151.59
L&T Special Steels and Heavy Forgings Private Limited – 151.59
L&T Sapura Shipping Private Limited 148.03 –
Total 148.03 151.59
(vii) Net inter-corporate borrowing taken/(repaid)
Joint venture: 100.75 32.00
L&T MBDA Missile Systems Limited 100.75 32.00
Total 100.75 32.00
(viii) Charges paid for miscellaneous services
Joint ventures, including: 17.74 29.90
L&T-Sargent & Lundy Limited 4.45 3.61
L&T-Chiyoda Limited 12.06 25.17
Total 17.74 29.90
(ix) Rent paid, including lease rentals under leasing
arrangements
Joint ventures, including: 0.24 0.01
L&T - MHI Power Boilers Private Limited 0.11 –
L&T Special Steels and Heavy Forgings Private Limited 0.06 –
L&T - MHI Power Turbine Generators Private Limited 0.06 0.01
Associate: 0.08 –
Magtorq Private Limited 0.08 –
Total 0.32 0.01
(x) Rent received, overheads recovered and miscellaneous
income
Joint ventures, including: 107.66 101.34
L&T - MHI Power Boilers Private Limited 41.32 31.86
L&T-Sargent & Lundy Limited 10.87 11.57
L&T-Chiyoda Limited 23.97 25.39
Total 107.66 101.34

580
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [54] (contd.)
v crore
2021-22 2020-21
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
(xi) Charges recovered for deputation of employees to related parties
Joint ventures: 5.34 7.64
L&T Infrastructure Development Projects Limited 0.73 1.14
L&T Special Steels and Heavy Forgings Private Limited 0.76 0.73
L&T Sapura Shipping Private Limited 3.85 2.94
L&T-Chiyoda Limited – 2.83
Total 5.34 7.64
(xii) Dividend received
Joint ventures, including: 156.83 174.38
L&T - MHI Power Boilers Private Limited 119.39 119.39
L&T-Chiyoda Limited 14.85 40.50
Total 156.83 174.38
(xiii) Guarantee charges recovered from
Joint venture: 0.64 0.47
L&T - MHI Power Turbine Generators Private Limited 0.64 0.47
Total 0.64 0.47
(xiv) Interest paid to
Joint ventures: 9.10 13.64
L&T MBDA Missile Systems Limited 6.81 2.81
L&T - MHI Power Turbine Generators Private Limited 2.29 10.83
Total 9.10 13.64
(xv) Interest received from
Joint ventures: 65.12 206.60
L&T Special Steels and Heavy Forgings Private Limited – 134.52
L&T Infrastructure Development Projects Limited 9.84 21.44
Kudgi Transmission Limited 45.52 45.93
L&T Sapura Shipping Private Limited 9.76 4.71
Associate: 0.18 0.19
L&T Camp Facilities LLC 0.18 0.19
Total 65.30 206.79
(xvi) Allowance/(reversal) for expected credit loss
Joint ventures, including: (0.31) 0.31
L&T Special Steels and Heavy Forgings Private Limited – (0.09)
L&T - MHI Power Boilers Private Limited (1.46) 0.39
L&T - MHI Power Turbine Generators Private Limited 0.11 0.02
L&T Sapura Offshore Private Limited 0.18 –
Raykal Aluminium Company Private Limited 0.85 –
Total (0.31) 0.31
(xvii) Impairment on loans & advances
Joint venture: – 1139.03
L&T Special Steels and Heavy Forgings Private Limited – 1139.03
Total – 1139.03
(xviii) Provision towards constructive obligation
Joint venture: – 14.84
L&T Special Steels and Heavy Forgings Private Limited – 14.84
Total – 14.84

581
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [54] (contd.)
v crore
2021-22 2020-21
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
(xix) Donation given
Entity with common Key Management Personnel: 8.90 1.65
Mindtree Foundation 8.90 1.65
Total 8.90 1.65
(xx) Provision towards unspent CSR expenses
Entity with common Key Management Personnel: 7.70 –
Mindtree Foundation 7.70 –
Total 7.70 –
(xxi) Contribution to post employment benefit plan
(A) Towards Employer’s contribution to provident fund trusts, including: 210.90 199.05
Larsen & Toubro Officers & Supervisory Staff Provident Fund 199.44 186.25
Total 210.90 199.05
(B) Towards Employer’s contribution to gratuity fund trusts, including: 27.98 188.49
Larsen & Toubro Officers & Supervisors Gratuity Fund – 86.47
L&T Technology Services Limited Employee Group Gratuity Scheme 12.67 18.06
Mindtree Limited Employees Gratuity Fund Trust 14.27 56.12
Total 27.98 188.49
(C) Towards Employer’s contribution to superannuation trust: 7.51 6.81
Larsen & Toubro Limited Senior Officers’ Superannuation Scheme 7.51 6.81
Total 7.51 6.81
“Major parties” denote entities accounting for 10% or more of the aggregate for that category of transaction during respective year.

(xix) Compensation to Key Management Personnel (KMP):

v crore
2021-22 2020-21
Short term Post Short term Post
Key Management Personnel Other long Share based
employee employment Total employee employment Total
benefits term benefit payment
benefits benefits benefits
Executive Directors:
(a) Mr. S. N. Subrahmanyan 24.46 6.53 30.99 11.26 2.97 – – 14.23
(b) Mr. R. Shankar Raman 16.12 4.30 20.42 7.50 1.98 – – 9.48
(c) Mr. Shailendra Roy – – – 4.83 7.64 [1]
10.20 [2]
– 22.67
(d) Mr. Subramanian Sarma (Executive Director
w.e.f. August 19, 2020) 13.71 3.65 17.36 4.48 1.02 – 8.39 [3]
13.89
(e) Mr. D. K. Sen 9.27 2.46 11.73 3.93 1.01 – – 4.94
(f) Mr. M. V. Satish 8.75 2.30 11.05 4.24 1.08 – – 5.32
(g) Mr. J. D. Patil 8.64 2.29 10.93 4.23 1.09 – – 5.32
(h) Mr. S. V. Desai 9.91 2.60 12.51 2.83 0.64 – – 3.47
(i) Mr. T. Madhava Das 9.72 2.55 12.27 2.94 0.72 – – 3.66
Non-executive/Independent Directors:
(a) Mr. A. M. Naik (Group Chairman) 9.14 3.00
[4]
12.14 9.18 3.00
[4]
– – 12.18
(b) Mr. Subramanian Sarma (Non-executive
Director till August 18, 2020) – – – 3.10 1.26 [5]
– – 4.36
(c) Other Non-executive/Independent Directors 5.66 – 5.66 5.86 – – – 5.86
Total 115.38 29.68 145.06 64.38 22.41 10.20 8.39 105.38
[1] Post retirement benefits include gratuity R 6.60 crore
[2] Represents encashment of past service accumulated leave
[3] Represents fair value of employee stock options granted during 2020-21 to be vested over a period of time
[4] Represents pension
[5] Represents end of service benefit as per applicable local laws till August 18, 2020

582
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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [54] (contd.)
(c) Amount due to/from related parties (including commitments):
v crore
As at 31-3-2022 As at 31-3-2021
Sr. Amounts Amounts
Category of balance/relationship/major parties
No. Amount for major Amount for major
parties parties
(i) Accounts receivable
Joint ventures, including: 92.55 135.57
L&T - MHI Power Boilers Private Limited 57.76 75.49
L&T - MHI Power Turbine Generators Private Limited 13.39 1.18
L&T Deccan Tollways Limited – 50.00
Associate: 0.21 0.20
Larsen & Toubro Qatar & HBK Contracting Co. WLL 0.21 0.20
Total 92.76 135.77
(ii) Accounts payable including other payable
Joint ventures, including: 1777.11 1772.76
L&T - MHI Power Boilers Private Limited 757.16 863.49
L&T - MHI Power Turbine Generators Private Limited 796.53 576.54
L&T Infrastructure Development Projects Limited 63.19 177.35
Associates, including: 7.94 14.54
Magtorq Private Limited 7.09 5.75
L&T Camp Facilities LLC 0.60 8.79
Total 1785.05 1787.30
(iii) Investment in debt securities [including preference shares
(debt portion)]
Joint ventures: 911.98 1097.54
L&T Special Steels and Heavy Forgings Private Limited* 213.17 213.17
L&T Infrastructure Development Projects Limited – 272.65
Kudgi Transmission Limited# 698.81 611.72
Total 911.98 1097.54
* Before set-off of losses under equity accounting
#
Secured
(iv) Loans & advances recoverable
Joint ventures, including: 2314.01 2163.31
L&T Special Steels and Heavy Forgings Private Limited* 1781.18 1746.17
L&T Sapura Shipping Private Limited 328.43 162.61
Associates: 14.84 19.44
L&T Camp Facilities LLC 10.61 14.44
Magtorq Private Limited 4.23 5.00
Total 2328.85 2182.75
* Before set-off of losses under equity accounting and impairment
(v) Impairment/provision of loans & advances recoverable
Joint ventures, including: 1145.08 1144.11
L&T Special Steels and Heavy Forgings Private Limited 1139.03 1139.03
Total 1145.08 1144.11
(vi) Provision towards constructive obligation
Joint venture: 14.84 14.84
L&T Special Steels and Heavy Forgings Private Limited 14.84 14.84
Total 14.84 14.84
(vii) Unsecured loans taken
Joint ventures: 193.74 90.91
L&T MBDA Missile Systems Limited 193.74 90.91
Total 193.74 90.91

583
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [54] (contd.)
v crore
As at 31-3-2022 As at 31-3-2021
Sr. Amounts Amounts
Category of balance/relationship/major parties
No. Amount for major Amount for major
parties parties
(viii) Advances from customers
Joint venture: 17.34 20.46
L&T - MHI Power Boilers Private Limited 17.34 20.46
Total 17.34 20.46
(ix) Due to directors [a]: 93.81 41.04
Key Management Personnel, including:
Mr. A. M. Naik 3.35 3.60
Mr. S. N. Subrahmanyan 21.40 8.40
Mr. R. Shankar Raman 13.98 5.49
Mr. Shailendra Roy – 0.92
Mr. D. K. Sen 7.62 2.40
Mr. M. V. Satish 7.05 2.66
Mr. J. D. Patil 7.23 2.91
Mr. Subramanian Sarma 11.70 5.31
Mr. S. V. Desai 8.56 2.29
Mr. T. Madhava Das 8.40 2.43
Total 93.81 41.04
(x) Provision towards unspent CSR expenses
Entity with common Key Management Personnel: 7.70 –
Mindtree Foundation 7.70 –
Total 7.70 –
(xi) Post employment benefit plans
(A) Due to provident fund trusts, including: 78.10 56.45
Larsen & Toubro Officers & Supervisory Staff Provident Fund 74.44 52.92
Total 78.10 56.45
(B) Due to gratuity trusts, including: 48.81 19.77
Larsen & Toubro Officers & Supervisors Gratuity Fund 15.47 –
L&T Technology Services Limited Employee Group Gratuity Scheme 10.04 11.11
Mindtree Limited Employees Gratuity Fund Trust 20.71 7.60
Total 48.81 19.77
(C) Due to superannuation fund: 12.89 4.48
Larsen & Toubro Limited Senior Officers’ Superannuation Scheme 12.89 4.48
Total 12.89 4.48
(xii) Capital commitment given
Joint ventures: 0.11 –
L&T-Sargent & Lundy Limited 0.08 –
L&T Special Steels and Heavy Forgings Private Limited 0.02 –
L&T - MHI Power Turbine Generators Private Limited 0.01 –
Total 0.11 –
(xiii) Revenue commitment given
Joint ventures, including: 1424.92 2551.02
L&T - MHI Power Boilers Private Limited 820.89 1643.73
L&T - MHI Power Turbine Generators Private Limited 305.67 387.72
L&T-Chiyoda Limited 101.92 327.86
Associates, including: 52.26 35.45
Magtorq Private Limited 51.54 35.08
Total 1477.18 2586.47

[a]
includes commission due to other Non-executive directors R 4.52 crore (previous year: R 4.63 crore)

584
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [54] (contd.)
v crore
As at 31-3-2022 As at 31-3-2021
Sr. Amounts Amounts
Category of balance/relationship/major parties
No. Amount for major Amount for major
parties parties
(xiv) Revenue commitment received
Joint ventures, including: 125.16 187.73
L&T - MHI Power Boilers Private Limited 107.24 158.78
L&T MBDA Missile Systems Limited 17.53 20.00
Total 125.16 187.73
(xv) Provision for expected credit loss
Joint ventures, including: 22.02 23.30
L&T - MHI Power Boilers Private Limited 21.82 23.28
Total 22.02 23.30
(xvi) Guarantees given on behalf of
Joint ventures, including: 300.23 363.85
L&T - MHI Power Turbine Generators Private Limited 255.12 312.67
Total 300.23 363.85
“Major parties” denote entities accounting for 10% or more of the aggregate for that category of balance during respective year.
Note: 1. All the related party contracts/arrangements have been entered into on arm’s length basis.
2. The amount of outstanding balances as shown above are unsecured and will be settled/recovered in cash.
3. The interest rate charged on loans given to related parties are as per market rates.

Note [55]
Basic and Diluted Earnings per share [EPS] computed in accordance with Ind AS 33 ”Earnings per Share”

Particulars 2021-22 2020-21

Basic EPS
Profit after tax from continuing operations (R crore) A 8669.33 3345.01
Profit after tax from discontinued operations (R crore) B – 8237.92
Profit after tax from continuing operations & discontinued operations (R crore) C=A+B 8669.33 11582.93
Weighted average number of equity shares outstanding D 1,40,47,47,700 1,40,41,46,937
Basic EPS from continuing operations (R) A/D 61.71 23.82
Basic EPS from discontinued operations (R) B/D – 58.67
Basic EPS from continuing operations & discontinued operations (R) C/D 61.71 82.49
Diluted EPS
Profit after tax from continuing operations (R crore) A 8669.33 3345.01
Profit after tax from discontinued operations (R crore) B – 8237.92
Profit after tax from continuing operations & discontinued operations (R crore) C=A+B 8669.33 11582.93
Weighted average number of equity shares outstanding D 1,40,47,47,700 1,40,41,46,937
Add: Weighted average number of potential equity shares on account of employee
stock options E 15,40,580 14,20,264
Weighted average number of equity shares outstanding for diluted EPS F=D+E 1,40,62,88,280 1,40,55,67,201
Diluted EPS from continuing operations (R) A/F 61.65 23.80
Diluted EPS from discontinued operations (R) B/F – 58.61
Diluted EPS from continuing operations & discontinued operations (R) C/F 61.65 82.41
Face value per share (R) 2 2

585
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [56]
Disclosure pursuant to Ind AS 37 “Provisions, Contingent Liabilities and Contingent Assets”:
(a) Movement in provisions:
v crore
Class of provisions
Expected Contractual
Sr. tax liability Litigation- rectification
Particulars Product
No. in respect related cost- Others Total
warranties
of indirect obligations construction
taxes contracts
1 Balance as at 1-4-2021 13.19 338.80 471.79 536.29 72.43 1432.50
2 Additional provision during the year 22.06 36.42 107.00 434.69 19.51 619.68
3 Provision used during the year (2.64) (11.74) – (49.42) – (63.80)
4 Unused provision reversed during the year (4.79) (4.75) (0.08) (168.15) (8.34) (186.11)
5 Translation adjustments – – – 0.42 – 0.42
6 Balance as at 31-3-2022 (1 to 5) 27.82 358.73 578.71 753.83 83.60 1802.69
Breakup of provisions:
v crore
Particulars Note 24 Note 31 Total
Balance as at 1-4-2021 68.38 1364.12 1432.50
Balance as at 31-3-2022 118.24 1684.45 1802.69

(b) Nature of provisions:

(i) Product warranties: The Group gives warranties on certain products and services, undertaking to repair or replace the items that fail
to perform satisfactorily during the warranty period.

Provision made as at March 31, 2022 represents the amount of the expected cost of meeting such obligations of rectification/
replacement. The timing of the outflows is expected to be within a period of three years from the date of Balance Sheet.

(ii) Expected tax liability in respect of indirect taxes represents mainly the differential sales tax liability on account of non-collection of
declaration forms and liability for goods and service tax, customs duty and excise duty.

(iii) Provision for litigation-related obligations represents liabilities that are expected to materialise in respect of matters in appeal.

(iv) Contractual rectification cost represents the estimated cost the Group is likely to incur during defect liability period as per the
contract obligations and in respect of completed construction contracts accounted under Ind AS 115 “Revenue from contracts with
customers”.

(v) Other provisions mainly includes provision for onerous contracts.

(c) Disclosure in respect of contingent liabilities is given in Note 32.

586
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [57]
Research & Development

The expenditure on research and development activities is as follows:

v crore
Sr.
Particulars 2021-22 2020-21
No.
(i) Recognised as expense in the Statement of Profit and Loss 186.05 197.16
(ii) Capital expenditure on:
(a) Tangible assets 3.74 1.24
(b) Intangible assets being expenditure on new product development 0.13 9.80
(c) Other intangible assets 0.52 8.10

Of the above, expenditure on research and development activities of discontinued operations is as follows:
v crore
Sr.
Particulars 2021-22 2020-21
No.
(i) Recognised as expense in the Statement of Profit and Loss – 32.29
(ii) Capital Expenditure on:
(a) Tangible assets – 0.49
(b) Intangible assets being expenditure on new product development – 9.39
(c) Other intangible assets – 0.01

NOTE 58
Disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: Market risk management

(a) Foreign exchange rate and interest rate risk:

The Group regularly reviews its foreign currency and interest rate related exposures - both hedged and open exposures. The Group
primarily follows cash flow hedge accounting for Highly Probable Forecasted Exposures (HPFE), hence, the movement in mark to market
(MTM) of the hedge contracts undertaken for such exposures is likely to be offset by contra movements in the underlying exposures
values. However, till the point of time that the HPFE becomes an on-balance sheet exposure, the changes in MTM of the hedge contracts
will impact the Balance Sheet of the Group. Further, given the effective horizons of the Group’s risk management activities which
coincide with the duration of the projects under execution, which could extend across 3-4 years and given the business uncertainties
associated with the timing and estimation of the project exposures, the recognition of the gains and losses related to these instruments
may not always coincide with the timing of gains and losses related to the underlying economic exposures and, therefore, may affect the
Group’s financial condition and operating results. The Group monitors the potential risk arising out of the market factors like exchange
rates, interest rates, price of traded investment products etc. on a regular basis. For on-balance sheet exposures, the Group monitors the
risks on net unhedged exposures.
(i) Foreign exchange rate risk:

The Group has both receivable and payable exposure in foreign currency. Accordingly, changes in exchange rates, may adversely
affect the Group’s revenue, cost and profitability. There is a risk that the Group may also have to adjust the pricing due to
competitive pressures when there have been significant volatility in foreign currency exchange rates.

The Group may enter into foreign currency forward and option contracts with financial institutions to protect against foreign
exchange risks associated with certain existing assets and liabilities, certain firmly committed transactions, forecasted future cash
flows and net investments in foreign subsidiaries. In addition, the Group has entered, and may enter in the future, into non-
designated foreign currency contracts to partially offset the foreign currency exchange gains and losses on its foreign-denominated
debt issuances. The Group’s practice is to hedge a portion of its material net foreign exchange exposures with tenors in line with
the project/business life cycle. The Group may also choose not to hedge certain foreign exchange exposures.

587
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [58] (contd.)
The net exposure to foreign currency risk (based on notional amount) in respect of recognised financial assets, recognised financial
liabilities and derivatives for major currencies is as follows:
v crore
As at 31-3-2022 As at 31-3-2021
US Dollar US Dollar
Particulars including Algerian Canadian Japanese Kuwaiti including Algerian Canadian Japanese Kuwaiti
EURO EURO
pegged Dinar Dollar Yen Dinar pegged Dinar Dollar Yen Dinar
currencies currencies
Net exposure to foreign currency risk in respect
of recognised financial assets/(recognised
financial liabilities) (1100.21) 747.08 (358.10) 573.06 (184.60) 109.56 (1207.93) 400.90 (97.62) 232.84 (505.18) (52.56)
Derivatives including embedded derivatives for
hedging receivable/(payable) exposure with
respect to non-financial assets/(non-financial
liabilities) 332.11 (56.08) – – – – 357.96 65.82 – – – –
Derivatives including embedded derivatives for
hedging receivable/(payable) exposures with
respect to firm commitments and highly
probable forecast transactions 38860.98 (2817.23) – 13.46 473.12 696.42 29116.78 (4244.49) – 37.78 1031.00 404.79
Receivable/(payable) exposures with respect to
forward contracts and embedded derivatives
not designated as cash flow hedge 3294.27 32.10 – – (23.99) 38.45 2337.79 164.57 – – (14.43) 21.02
To provide a meaningful assessment of the foreign currency risk associated with the Group’s foreign currency derivative positions
against off-balance sheet exposures and unhedged portion of on-balance sheet financial assets and liabilities, the Group uses a
multi-currency correlated value-at-risk (“VAR”) model. The VAR model uses a Monte Carlo simulation to generate thousands of
random market price paths for foreign currencies against Indian Rupee taking into account the correlations between them. The
VAR is the expected loss in value of the exposures due to overnight movement in spot exchange rates, at 95% confidence interval.
The VAR model is not intended to represent actual losses but is used as a risk estimation tool. The model assumes normal market
conditions and is a historical best fit model. Because the Group uses foreign currency instruments for hedging purposes, the loss in
fair value incurred on those instruments are generally offset by increase in the fair value of the underlying exposures for on-balance
sheet exposures. The overnight VAR for the Group at 95% confidence level is R 201.00 crore as at March 31, 2022 and R 203.08
crore as at March 31, 2021.

Actual future gains and losses associated with the Group’s investment portfolio and derivative positions may differ materially from
the sensitivity analysis performed as at March 31, 2022 due to the inherent limitations associated with predicting the timing and
amount of changes in foreign currency exchange rates and the Group’s actual exposures and position.

(ii) Interest rate risk:

The Group’s exposure to changes in interest rates relates primarily to the Group’s outstanding floating rate debt and lending. The
Group’s outstanding debt in local currency is a combination of fixed rate and floating rate. For the portion of local currency debt
on fixed rate basis, there is no interest rate risk. For the portion of local currency debt on floating rate basis, there is a natural
hedge with receivables in respect of financial services business. There is a portion of debt that is linked to international interest rate
benchmarks like LIBOR. The Group also hedges a portion of these risks by way of derivative instruments like interest rate swaps and
currency swaps.

The Group has insignificant portion of the loan book which has a flowing rate linked to one month USD LIBOR.

With the transition of LIBOR into another benchmark (SOFR), there will be a spread adjustment that will have to be applied to these
loans. The loans are expected to be either refinanced and linked to a new benchmark or simply transitioned to the new benchmark
before LIBOR ceases to be published.

The Group’s Treasury team constantly tracks the developments related to this proposed transition and has also had interactions with
the counterparty lenders to prepare for the transition.

In the cases mentioned above, the lenders and the Group are likely to agree on a neutral spread adjustment which does not impact
the counterparties financially.

The exposure of the Group’s borrowing to interest rate changes is R 25848.75 crore (previous year: R 48077.49 crore).

588
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [58] (contd.)
A hypothetical 50 basis point shift in respective currency LIBOR and other benchmarks, holding all other variables constant, on the
unhedged loans would result in a corresponding increase/decrease in interest cost for the Group on a yearly basis as follows:
v crore
Increase/(decrease) in Profit after tax Increase/(decrease) in Equity
Particulars
2021-22 2020-21 As at 31-3-2022 As at 31-3-2021
INR loans (net of loans given)
Interest rates - increase by 0.50% in INR interest rate 42.41 13.71 42.41 13.71
Interest rates - decrease by 0.50% in INR interest rate (42.41) (13.71) (42.41) (13.71)
USD (including pegged currencies) loans
Interest rates - increase by 0.50% in USD interest rate (12.70) (19.80) (12.70) (19.80)
Interest rates - decrease by 0.50% in USD interest rate 12.70 19.80 12.70 19.80
(b) Liquidity risk management:
The Group manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an
adequate committed credit lines. Given the need to fund diverse businesses, the Group maintains flexibility by needbased drawing from
committed credit lines. Management regularly monitors the position of cash and cash equivalents. The maturity profiles of financial
assets/liabilities including debt financing plans and liquidity ratios are considered while reviewing the liquidity position.

The Group’s investment policy and strategy are focused on preservation of capital and supporting the Group’s liquidity requirements. The
Group uses a combination of internal and external tools to execute its investment strategy and achieve its investment objectives. The
Group typically invests in money market funds, large debt funds, Government of India securities, equity and equity marketable securities
and other highly rated securities under an exposure limit framework. The investment policy focusses on minimising the potential risk
of principal loss. To provide a meaningful assessment of the price risk associated with the Group’s investment portfolio, the Group
performed a sensitivity analysis to determine the impact of change in price of the securities on the value of the investment portfolio
assuming a 0.50% movement in the fair market value of debt funds and debt securities and a 5% movement in the NAV of the equity
and equity marketable securities as below:
v crore
Increase/(decrease) in investment value
Particulars
As at 31-3-2022 As at 31-3-2021
Debt funds and debt securities - increase by 0.50% in fair market value 102.95 119.74
Debt funds and debt securities - decrease by 0.50% in fair market value (102.95) (119.74)
Equity and equity marketable securities - increase by 5% in NAV 6.31 6.10
Equity and equity marketable securities - decrease by 5% in NAV (6.31) (6.10)
The investments in money market funds are for the purpose of liquidity management only and hence not subject to any material price
risk.

(c) Credit risk management:

(i) Financial services business:
Financial services business has a risk management framework that monitors and ensures that the business lines operate within
the defined risk appetite and risk tolerance levels defined by the management. Risk management function is closely involved in
management and control of credit risk, portfolio monitoring, market risks including liquidity risk and operational risks. The credit
risk function independently evaluates proposals based on well-established sector specific internal frameworks, in order to identify,
mitigate and allocate risks as well as to enable risk-based pricing of assets. Regulatory and process risks are identified, mitigated
and managed by a separate group. Risk management policies are made under the guidance of Risk Management Committee and
are approved by Board of Directors.

(ii) Other than financial services business:

The Group’s customer profile include public sector enterprises, state owned companies and large private corporates. Accordingly,
the Group’s customer credit risk is low. The Group’s average project execution cycle is around 24 to 36 months. General payment
terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 90 days and certain
retention money to be released at the end of the project. In some cases retentions are substituted with bank/corporate guarantees.
The Group has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper
attention and focus for realisation.

589
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [58] (contd.)
(iii) Reconciliation of loss allowance provision for financial services business - Loans:
v crore
Particulars Stage 1 Stage 2 Stage 3 Total
Loss allowance as at 1-4-2020 570.38 268.65 3785.93 4624.96
New assets originated or purchased 461.25 60.59 35.71 557.55
Amount written off – – (2230.13) (2230.13)
Transfers to Stage 1 43.35 (26.24) (17.11) –
Transfers to Stage 2 (30.17) 34.57 (4.40) –
Transfers to Stage 3 (27.72) (143.69) 171.41 –
Impact of changes in credit risk on account of stage movements (42.17) 331.10 1476.54 1765.47
Increase/(decrease) provision on existing financial assets including recovery (66.11) (179.38) 603.77 358.28
Loss allowance as at 31-3-2021 908.81 345.60 3821.72 5076.13
New assets originated or purchased 856.54 25.76 44.39 926.69
Amount written off – – (1797.23) (1797.23)
Transfers to Stage 1 22.80 (7.99) (14.81) –
Transfers to Stage 2 (117.67) 130.61 (12.94) –
Transfers to Stage 3 (34.35) (7.28) 41.63 –
Impact of changes in credit risk on account of stage movements (22.29) 225.08 961.18 1163.97
Increase/(decrease) provision on existing financial assets including recovery (522.81) 389.69 (1609.92) (1743.04)
Loss allowance as at 31-3-2022 1091.03 1101.47 1434.02 3626.52
(iv) Reconciliation of allowance for expected credit loss (“ECL”) on trade receivables (other than financial services business):
v crore
Particulars 2021-22 2020-21
Provision as at April 1 3405.60 3181.21
Changes in allowance for ECL:
Provision/(reversal) of allowance for ECL 430.06 375.05
Additional provision (net) 200.08 279.07
Written off as bad debts (146.52) (425.58)
Translation adjustment 3.09 (4.24)
Addition on account of business combination 0.20 0.09
Provision as at March 31 (Note 13) 3892.51 3405.60
(v) Amounts written off:
v crore
Particulars 2021-22 2020-21
Amount of financial assets written off during the period but still enforceable 1860.23 1972.77

(d) Commodity price risk management:

The Group bids for and executes EPC projects on turnkey basis. EPC projects entail procurement of various equipment and materials
which may have direct or indirect linkages to commodity prices like Steel (both long and flat steel), Copper, Aluminium, Zinc, Lead,
Nickel, Cement etc. Accordingly, the Group is exposed to the price risk on these commodities. To mitigate the risk of commodity
prices, the Group relies on contractual provisions like pass through of prices, price variation provisions, etc. and further uses hedging
instruments where available [Note 59(k)(ii)]. There is certain residual risk carried by the Group that cannot be hedged against.
The Group is also exposed to contingent risk on account of commodity price movements that may not be fully offset by contractual
provisions in the projects that it has bid for but which are not awarded yet. Commodity prices are volatile and have witnessed sharp
two-way movement during the financial year. This may impact margin on projects where the Group has submitted bids on a firm price
basis. However, for projects where the Group is eligible for an adjustment based on price variation clause, the actual impact will depend
on the exact project wins and the relative contractual provisions therein.

590
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [59]
Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”:

(a) Category-wise classification for applicable financial assets:

v crore
Sr. As at As at
Particulars Note
No. 31-3-2022 31-3-2021
I. Measured at Fair Value through Profit or Loss (FVTPL):
(a) Mandatorily measured:
(i) Investment in equity instruments 6,12 769.03 642.70
(ii) Investment in preference shares 6,12 121.00 87.01
(iii) Investment in mutual funds and units of fund 6,12 12949.25 20236.28
(iv) Investment in government securities, debentures and bonds 6,12 1899.90 1739.80
(v) Derivative instruments not designated as cash flow hedges 9,18 73.22 116.07
(vi) Embedded derivatives not designated as cash flow hedges 9,18 24.48 33.68
(vii) Investment in security receipts 6 4886.22 4114.88
(viii) Investment in commercial paper 6,12 1576.15 –
(ix) Other Investments 6,12 0.91 0.94
Sub-total (a) 22300.16 26971.36
(b) Designated:
(i) Loans 16 22753.78 22877.66
Sub-total (b) 22753.78 22877.66
Sub-total (I = a+b) 45053.94 49849.02
II. Measured at amortised cost:
(i) Loans 7,8,16,17 66785.59 71541.63
(ii) Investment in government securities, debentures, bonds and CBLO 6,12 2700.24 584.31
(iii) Investment in commercial paper 6,12 919.14 –
(iv) Other Investments 6,12 1577.08 800.37
(v) Trade receivables 13 46138.92 42229.78
(vi) Advances recoverable in cash 18 844.34 958.08
(vii) Unbilled Revenue 18 1363.54 837.93
(viii) Cash and bank balances 9,14,15 19879.53 16753.48
(ix) Other receivables 1028.89 850.12
Sub-total (II) 141237.27 134555.70
III. Measured at Fair Value through Other Comprehensive Income (FVTOCI):
(c) Mandatorily measured:
(i) Investment in government securities, debentures and bonds 6,12 9474.33 8749.31
(ii) Investment in preference shares 6,12 0.67 0.67
(iii) Derivative instruments designated as cash flow hedges 9,18 1715.78 1344.88
(iv) Embedded derivative designated as cash flow hedges 9,18 26.40 19.13
Sub-total (c) 11217.18 10113.99
(d) Designated:
(i) Investment in equity instruments 6,12 0.10 0.10
Sub-total (d) 0.10 0.10
Sub-total (III = c+d) 11217.28 10114.09
Total (I+II+III) 197508.49 194518.81

591
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [59] (contd.)
(b) Category-wise classification for applicable financial liabilities:
v crore
Sr. As at As at
Particulars Note
No. 31-3-2022 31-3-2021
I. Measured at Fair Value through Profit or Loss (FVTPL):
(i) Derivative instruments not designated as cash flow hedges 23,29 36.44 22.81
(ii) Embedded derivatives not designated as cash flow hedges 23,29 26.86 11.73
(iii) Others 143.41 150.24
Sub-total (I) 206.71 184.78
II. Measured at amortised cost:
(i) Borrowings 22,26,27 123468.23 132605.26
(ii) Trade payables:
  Due to micro enterprises and small enterprises 575.91 488.99
  Due to others 28 50568.33 45256.24
(iii) Lease liability 2039.85 2023.82
(iv) Others 6082.59 4856.27
Sub-total (II) 182734.91 185230.58
III. Derivative instruments (including embedded derivatives) through Other
Comprehensive Income:
(i) Derivative instruments designated as cash flow hedges 23,29 393.21 416.22
(ii) Embedded derivatives designated as cash flow hedges 23,29 70.60 57.49
Sub-total (III) 463.81 473.71
IV. Financial guarantee contracts 23,29 1.88 0.91
Total (I+II+III+IV) 183407.31 185889.98
(c) Items of income, expenses, gains or losses related to financial instruments:
v crore
Sr.
Particulars 2021-22 2020-21
No.
I. Net gains/(losses) on financial assets and financial liabilities measured at Fair Value through Profit
or Loss (FVTPL) and amortised cost:
A. Financial asset or financial liabilities measured at fair value through Profit or Loss:
1. Gains/(losses) on fair valuation or sale of investments 393.27 1002.28
2. Gains/(losses) on fair valuation or sale of loans (Financial Services) (347.37) (158.76)
3. Gains/(losses) on fair valuation/settlement of derivative:
(a) Gains/(losses) on fair valuation or settlement of forward contracts not designated as
cash flow hedges 256.76 (55.52)
(b) Gains/(losses) on fair valuation or settlement of embedded derivative contracts not
designated as cash flow hedges (44.32) (146.41)
(c) Gains/(losses) on fair valuation or settlement of futures not designated as cash flow
hedges 85.56 (42.46)
Sub-total (A) 343.90 599.13
B. Financial assets measured at amortised cost:
(i) Exchange difference gains/(losses) on revaluation or settlement of items denominated in
foreign currency (trade receivables, loans given etc.) 476.13 (314.22)
(ii) (Allowance)/reversal for expected credit loss during the year (2567.56) (2865.02)
(iii) Provision for impairment loss (other than ECL) [net] (499.77) (330.11)
(iv) Impairment loss recognised in Statement of Profit and Loss [as exceptional items (net of tax)] – (2743.03)
(v) Gains/(losses) on derecognition:
(a) Bad debts written off (net) (73.50) (321.07)
(b) Gains/(losses) on transfer of financial assets (including non-recourse basis) (314.07) (295.75)
Sub-total (B) (2978.77) (6869.20)

592
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [59] (contd.)
v crore
Sr.
Particulars 2021-22 2020-21
No.
C. Financial liabilities measured at amortised cost:
(i) Exchange difference gains/(losses) on revaluation or settlement of items denominated in
foreign currency (trade payables, borrowing availed etc.) (91.33) 284.50
(ii) Unclaimed credit balances written back 106.17 232.51
Sub-total (C) 14.84 517.01
Total (I = A+B+C) (2620.03) (5753.06)
II. Net gains/(losses) on financial assets and financial liabilities measured at fair value through Other
Comprehensive Income:
A. Gains recognised in Other Comprehensive Income:
(i) Financial assets measured at fair value through Other Comprehensive Income:
(a) Gains/(losses) on fair valuation or sale of government securities, bonds, debentures etc. (32.64) 239.70
(ii) Derivative measured at fair value through Other Comprehensive Income:
(b) Gains/(losses) on fair valuation or settlement of forward contracts designated as cash
flow hedges 732.32 1911.09
(c) Gains/(losses) on fair valuation or settlement of embedded derivative contracts
designated as cash flow hedges (38.33) 30.97
Sub-total (A) 661.35 2181.76
Less:
B. Gains reclassified to Profit and Loss from Other Comprehensive Income
(i) Financial assets measured at fair value through Other Comprehensive Income:
1. On government securities, bonds, debentures etc. upon sale 46.85 116.01
(ii) Derivative measured at fair value through Other Comprehensive Income:
2. On forward contracts upon hedged future cash flows affecting the Profit or Loss or
related assets or liabilities 404.51 405.36
3. On embedded derivative contracts upon hedged future cash flows affecting the Profit
or Loss or related assets or liabilities (4.78) 3.72
Sub-total (B) 446.58 525.09
Net gains recognised in Other Comprehensive Income (A-B) 214.77 1656.67
C. Impairment loss recognised in Statement of Profit and Loss (12.00) (151.26)
III. Interest and Other income/expense:
A. Dividend Income:
Dividend income from investments measured at FVTPL 4.26 28.47
Sub-total (A) 4.26 28.47
B. Interest Income:
(i) Financial assets measured at amortised cost 10199.48 12984.43
(ii) Financial assets measured at fair value through Other Comprehensive Income 690.55 615.14
(iii) Financial assets measured at fair value through Profit or Loss 2670.07 1820.54
Sub-total (B) 13560.10 15420.11
C. Interest expense:
(i) Financial liabilities measured at amortised cost (8728.85) (11067.75)
(ii) Derivative instruments (including embeded derivatives) that are measured at fair value
through Other Comprehensive Income (reclassified to Profit and Loss during the year) (76.02) (137.51)
(iii) Financial liabilities measured at fair value through Profit or Loss – (0.17)
Sub-total (C) (8804.87) (11205.43)
Total (III = A+B+C) 4759.49 4243.15

593
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [59] (contd.)
(d) Fair value of financial assets and financial liabilities measured at amortised cost:

v crore
As at 31-3-2022 As at 31-3-2021
Particulars Note Carrying Carrying
Fair value Fair value
amount amount
Financial assets:
Loans 7,8,16,17 46742.98 46742.98 52659.55 52659.55
Government securities, debentures and bonds 6,12 2700.24 2700.24 584.31 584.31
Total 49443.22 49443.22 53243.86 53243.86
Financial liabilities:
Borrowings 22,27 67337.14 69463.66 63597.99 67013.47
Total 67337.14 69463.66 63597.99 67013.47
Notes:
1. Carrying amount of loans are net of provision for expected credit losses.
2. The carrying amounts of trade and other receivables, cash and cash equivalents, trade and other payables are considered to be the same as
their fair values due to their short term nature. The carrying amounts of loans given and borrowings taken for short term or at floating rate
of interest are considered to be close to the fair value. Accordingly, these items have not been included in the above table.

(e) Disclosure pursuant to Ind AS 113 “Fair Value Measurement” - Fair value hierarchy of financial assets and financial liabilities measured at
amortised cost:
v crore
Valuation technique for
As at 31-3-2022 Level 1 Level 2 Level 3 Total
level 3 items
Financial assets:
Loans – 6254.58 40488.40 46742.98 Discounted cash flow
Government securities, debentures and bonds 2338.82 137.81 223.61 2700.24
Total 2338.82 6392.39 40712.01 49443.22
Financial liabilities:
Borrowings – 29417.01 40046.65 69463.66 Discounted cash flow
Total – 29417.01 40046.65 69463.66

v crore
Valuation technique for
As at 31-3-2021 Level 1 Level 2 Level 3 Total
level 3 items
Financial assets:
Loans – 6833.45 45826.10 52659.55 Discounted cash flow
Government securities, debentures and bonds 550.34 33.97 – 584.31
Total 550.34 6867.42 45826.10 53243.86
Financial liabilities:
Borrowings 582.62 21378.03 45052.82 67013.47 Discounted cash flow
Total 582.62 21378.03 45052.82 67013.47
Valuation technique Level 2: Future cash flows discounted using market rates.

594
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [59] (contd.)
(f) Fair value hierarchy of financial assets and financial liabilities at fair value:

v crore
As at 31-3-2022 As at 31-3-2021
Particulars Note
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial assets:
Financial assets at FVTPL:
(i) Equity shares 6,12 163.39 – 605.64 769.03 104.79 – 537.91 642.70
(ii) Preference shares 6,12 – – 121.00 121.00 – – 87.01 87.01
(iii) Mutual fund 6,12 12918.05 – – 12918.05 20174.92 – – 20174.92
(iv) Debt instruments viz. government securities,
bonds and debentures 6,12 1309.10 – 590.80 1899.90 1014.35 – 725.45 1739.80
(v) Derivative instruments not designated as cash
flow hedges 9,8 – 73.22 – 73.22 – 116.07 – 116.07
(vi) Embedded derivative instruments not
designated as cash flow hedges 9,18 – 24.48 – 24.48 – 33.68 – 33.68
(vii) Other investments 6,12 – 1576.15 4918.33 6494.48 – 0.94 4176.24 4177.18
(viii) Loans (Financial Services) 16 – – 22753.78 22753.78 – – 22877.66 22877.66
Financial assets at FVTOCI:
(i) Debt instruments viz. government securities,
bonds and debentures 6,12 6591.99 2882.05 0.29 9474.33 6503.01 2104.54 141.76 8749.31
(ii) Preference shares 6 – – 0.67 0.67 – – 0.67 0.67
(iii) Equity shares 6 – – 0.10 0.10 – – 0.10 0.10
(iv) Derivative financial instruments designated as
cash flow hedges 9,18 – 1715.78 – 1715.78 – 1344.88 – 1344.88
(v) Embedded derivative financial instruments
designated as cash flow hedges 9,18 – 26.40 – 26.40 – 19.13 – 19.13
Total 20982.53 6298.08 28990.61 56271.22 27797.07 3619.24 28546.80 59963.11
Financial liabilities:
Financial liabilities at FVTPL:
(a) Designated at FVTPL:
(i) Derivative instruments not designated as
cash flow hedges 23,29 – 36.44 – 36.44 – 22.81 – 22.81
(ii) Embedded derivative instruments not
designated as cash flow hedges 23,29 – 26.86 – 26.86 – 11.73 – 11.73
(iii) Others – – 143.41 143.41 – – 150.24 150.24
(b) Designated at FVTOCI:
(i) Derivative financial instruments designated
as cash flow hedges 23,29 – 393.21 – 393.21 – 416.22 – 416.22
(ii) Embedded derivative financial instruments
designated as cash flow hedges 23,29 – 70.60 – 70.60 – 57.49 – 57.49
Total – 527.11 143.41 670.52 – 508.25 150.24 658.49
Valuation technique and key inputs used to determine fair value:

A. Level 1: Mutual funds, bonds, debentures and government securities - Quoted price in the active market.

B. Level 2: (a) Derivative Instruments – Present value technique using forward exchange rates as at reporting period.

(b) Preference share and government securities, bonds and debentures – Future cash flows are discounted using G-sec
rates as at reporting date.

595
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [59] (contd.)
(g) Movement of items measured using unobservable inputs (Level 3):

v crore
Equity Preference Debt Other
Particulars Loans Total
shares shares instruments investments
Balance as at 31-3-2020 543.25 89.88 1153.39 24877.64 2605.09 29269.25
Addition during the year – 10.85 – 3721.30 1913.27 5645.42
Disposal during the year – (13.60) (9.29) (5562.49) (214.55) (5799.93)
Gains/(losses) recognised in Profit or Loss (5.24) 0.55 (125.61) (158.79) (127.57) (416.66)
Impairment recognised in Profit or Loss – – (151.28) – – (151.28)
Balance as at 31-3-2021 538.01 87.68 867.21 22877.66 4176.24 28546.80
Addition during the year 65.08 35.67 – 7315.57 1495.55 8911.87
Disposal during the year – (1.20) (627.35) (7091.37) (501.07) (8220.99)
Transferred to held for sale (3.43) – – – – (3.43)
Gains/(losses) recognised in Profit or Loss 6.08 (0.48) (74.06) (348.08) (252.39) (668.93)
Gains/(losses) recognised in Other
comprehensive income – – 30.52 – – 30.52
Impairment recognised in Profit or Loss – – 394.77 – – 394.77
Balance as at 31-3-2022 605.74 121.67 591.09 22753.78 4918.33 28990.61

(h) Sensitivity disclosure for level 3 fair value measurements:

Fair value as at
31-3-2022 31-3-2021 Significant unobservable
Particulars Sensitivity
inputs
v crore
536.43 474.78 Book value Increase/(decrease) of 5% in the book value would result in impact on profit or
loss by R 21.87 crore (previous year: R 19.57 crore)

Equity shares 69.31 63.23 31-3-2022 and 31-3-2021: Increase/(decrease) of 1% in net realisation would result in impact on profit or
1. Net realisation per month loss by R 0.21 crore (previous year: R 0.21 crore)
R 31.83 per sq. ft. Increase/(decrease) of 25 bps in capitalisation rate would result in impact on
2. Capitalisation rate 11.50% profit or loss by R 0.45 crore (previous year: R 0.45 crore)

45.52 10.85 Book value Increase/(decrease) of 5% in the book value would result in impact on profit or
loss by R 2.28 crore (previous year: R 0.54 crore)
Preference
shares
76.15 76.83 Expected yield Increase/(decrease) in the fair value by 5% would result in impact on profit or loss
by R 3.80 crore (previous year: R 3.82 crore)

Debt 591.09 867.21 Expected yield Increase/(decrease) in fair value by 0.25% would result in impact on profit or loss
instruments by R 1.22 crore (previous year: R 1.76 crore)

22753.78 22877.66 Expected yield Increase/(decrease) in fair value by 0.25% would result in impact on profit or loss
Loans
by R 42.57 crore (previous year: R 42.80 crore)

Other 4918.33 4176.24 Net Assets Value (NAV) Increase/(decrease) in the NAV by 5% would result in impact on profit or loss
Investments R 183.99 crore (previous year: R 156.25 crore)

596
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [59] (contd.)
(i) Movement of financial liabilities measured using unobservable inputs (Level 3):

v crore
Particulars Contingent consideration
Balance as at 31-3-2020 218.20
Addition during the year 18.48
Charge recognised in Statement of Profit and Loss (49.95)
Settled during the year (40.81)
Foreign exchange difference 4.32
Balance as at 31-3-2021 150.24
Addition during the year 18.70
Charge recognised in Statement of Profit and Loss 15.56
Settled during the year (43.30)
Foreign exchange difference 2.21
Balance as at 31-3-2022 143.41
Note:
A 1% change in the unobservable inputs used in fair valuation of Level 3 liabilities does not have a significant impact on the value.

(j) Maturity profile of financial liabilities based on undiscounted cash flows:

v crore
As at 31-3-2022 As at 31-3-2021

Particulars Note Within After Within After

twelve twelve Total twelve twelve Total
months months months months
A. Non-derivative liabilities:
Borrowings  22, 26 ,27 66227.77 71580.33 137808.10 54965.72 106704.95 161670.67
Trade payables:
Due to micro enterprises and small enterprises 481.19 94.72 575.91 368.94 120.05 488.99
Due to others 28 48246.80 2321.53 50568.33 42903.66 2352.58 45256.24
Other financial liabilities  23, 29 6152.71 73.27 6225.98 4871.37 135.19 5006.56
Lease Liability 535.44 2120.69 2656.13 501.67 2123.87 2625.54
Total 121643.91 76190.54 197834.45 103611.36 111436.64 215048.00
B. Derivative liabilities:
Forward contracts  23, 29 405.55 28.59 434.14 386.74 62.67 449.41
Embedded derivatives  23, 29 85.26 13.17 98.43 69.74 – 69.74
Total 490.81 41.76 532.57 456.48 62.67 519.15

597
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [59] (contd.)
(k) Details of outstanding hedge instruments for which hedge accounting is followed:
(i) Outstanding currency exchange rate hedge instruments:
(A) Forward covers taken to hedge exchange rate risk and accounted as cash flow hedge:
As at 31-3-2022 As at 31-3-2021
Within After Within After
Nominal Average Nominal Average
Particulars twelve twelve twelve twelve
amount rate amount rate
months months months months
(v crore) (v) (v crore) (v)
(v crore) (v crore) (v crore) (v crore)
(a) Receivable hedges:
US Dollar 48885.03 80.88 27681.16 21203.87 37310.77 79.03 20391.92 16918.85
EURO 1330.72 91.80 829.41 501.31 1715.73 90.63 1450.44 265.29
Malaysian Ringgit 38.98 18.28 38.98 – 91.85 19.40 91.85 –
Omani Riyal 365.55 202.36 265.40 100.15 785.49 193.34 599.11 186.38
Arab Emirates Dirham 1024.89 21.26 950.49 74.40 926.09 21.26 779.75 146.34
Canadian Dollar 13.46 59.84 13.46 – 37.78 57.24 37.78 –
British Pound 214.37 104.57 214.37 – 257.70 100.22 257.70 –
Japanese Yen 1502.65 0.69 1401.81 100.84 2537.18 0.73 2426.78 110.40
Kuwaiti Dinar 808.30 261.19 795.36 12.94 831.62 255.45 645.10 186.52
Qatari Riyal 1739.15 21.06 1734.08 5.07 1207.41 20.72 958.10 249.31
Australian Dollar 16.69 55.64 16.69 – 72.07 55.10 72.07 –
South African Rand – – – – 63.52 4.67 63.52 –
Danish Krone – – – – 38.91 11.94 38.91 –
Thai Baht 2.77 2.31 2.77 – – – – –
Swedish Krona 48.20 8.03 48.20 – 108.54 8.70 108.54 –
(b) Payable hedges:
US Dollar 12538.47 74.88 11573.90 964.57 14875.35 73.39 11322.88 3552.47
EURO 5026.27 87.39 4916.55 109.72 7293.72 87.63 7013.89 279.83
Qatari Riyals 149.96 20.82 149.96 – 29.59 20.69 29.59 –
Arab Emirates Dirham 42.35 20.71 42.35 – 46.35 20.28 46.35 –
British Pound 127.11 105.93 127.11 – 26.41 101.30 26.41 –
Japanese Yen 897.43 0.67 897.43 – 1325.68 0.72 1325.68 –
Kuwaiti Dinar 32.43 253.45 32.43 – 242.90 242.90 242.90 –
Omani Riyal – – – – 9.46 189.04 9.46 –
Swiss Franc 426.30 79.43 425.40 0.90 355.03 80.29 185.27 169.76
Chinese Yuan 500.30 12.04 500.30 – 85.99 11.23 85.99 –
Canadian Dollar 3.63 60.69 3.63 – 3.51 58.77 3.51 –
(B) Options taken to hedge exchange rate risk and accounted as cash flow hedge:
As at 31-3-2022 As at 31-3-2021
Within After Within After
Nominal Average Nominal Average
Particulars twelve twelve twelve twelve
amount rate amount rate
months months months months
(v crore) (v) (v crore) (v)
(v crore) (v crore) (v crore) (v crore)
(a) Receivable hedges:
US Dollar/Indian Rupees 962.41 82.68 46.90 915.51 1052.91 81.76 90.50 962.41
EURO/US Dollar 1213.94 $1.18 to 661.17 552.77 1093.04 $1.08 to 582.92 510.12
$1.27 $1.18
US Dollar/EURO 592.34 $ 1.16 379.50 212.84 618.03 $1.15 to 238.53 379.50
$1.18
(b) Payable hedges:
US Dollar/EURO 592.34 $ 1.16 379.50 212.84 618.03 $1.15 to 238.53 379.50
$1.18
EURO/US Dollar 264.83 $ 1.27 167.71 97.12 273.94 $1.08 106.23 167.71

598
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [59] (contd.)
(C) Forward covers taken to hedge exchange rate risk and accounted as fair value hedge:
As at 31-3-2022 As at 31-3-2021
Within After Within After
Particulars Nominal Average Nominal Average
twelve twelve twelve twelve
amount rate amount rate
months months months months
(v crore) (v) (v crore) (v)
(v crore) (v crore) (v crore) (v crore)
(a) Receivable hedges:
US Dollar 2262.85 76.32 2262.85 – 1444.18 73.26 1444.18 –
Canadian Dollar 4.55 60.69 4.55 – 3.48 58.01 3.48 –
British Pound 13.18 99.50 13.18 – 66.98 100.72 66.98 –
Australian Dollar 10.82 56.92 10.82 – 3.34 55.64 3.34 –
South African Rand – – – – 1.95 4.86 1.95 –
Danish Krone 6.17 11.37 6.17 – – – – –
Norwegian Krone 1.62 8.78 1.62 – – – – –
EURO 63.43 84.58 63.43 – 86.29 86.29 86.29 –
Arab Emirates Dirham 115.83 20.87 115.83 – 112.90 20.34 112.90 –
Swedish Krona – – – – 10.04 8.37 10.04 –
(ii) Outstanding commodity price hedge instruments:
(A) Commodity forward contract:
As at 31-3-2022 As at 31-3-2021
Within After Within After
Particulars Nominal Average Nominal Average
twelve twelve twelve twelve
amount rate amount rate
months months months months
(v crore) (v) (v crore) (v)
(v crore) (v crore) (v crore) (v crore)
Copper (Tn) [1] (489.40) 743343.39 (489.40) – (114.88) 587748.64 (114.88) –
Aluminium (Tn) [1] 229.82 228503.75 129.98 99.84 (11.71) 151245.62 11.78 (23.49)
Iron Ore (Tn) 25.25 12174.31 25.25 – 33.68 7447.47 33.68 –
Lead (Tn) 9.51 170723.79 9.51 – 48.19 142370.06 48.19 –
Nickel (Tn) 71.39 1346959.25 71.39 – 143.04 1030545.11 143.04 –
[1] Negative nominal amount represents sell position (net).
(B) Commodity option contract:
As at 31-3-2022 As at 31-3-2021
Within After Within After
Particulars Nominal Average Nominal Average
twelve twelve twelve twelve
amount rate amount rate
months months months months
(v crore) (v) (v crore) (v)
(v crore) (v crore) (v crore) (v crore)
Aluminium 11.30 [1]
11.30 – – – – –
The options contracts include a combination of calls and puts with different maturities and strike prices.
[1]

(l) Carrying amounts of hedge instruments for which hedge accounting is followed:
(A) Cash flow hedge:
v crore
As at 31-3-2022 As at 31-3-2021
Particulars Commodity Commodity
Currency Currency
price price
exposure exposure
exposure exposure
(i) Forward contracts
(a) Current:
Asset - Other financial assets 882.85 117.38 664.20 165.25
Liability - Other financial liabilities 383.79 29.18 329.79 61.35
(b) Non-current:
Asset - Other financial assets 627.16 – 451.91 –
Liability - Other financial liabilities 27.82 – 44.22 3.02
(ii) Option contracts
(a) Current:
Asset - Other financial assets 36.77 – 20.38 –
Liability - Other financial liabilities 11.04 – 9.78 –
(b) Non-current:
Asset - Other financial assets 78.02 – 62.26 –
Liability - Other financial liabilities 11.98 – 25.54 –

599
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [59] (contd.)
(B) Fair value hedge:
v crore
As at 31-3-2022 As at 31-3-2021
Commodity Commodity
Particulars Currency Currency
price price
exposure exposure
exposure exposure
Forward contracts
(a) Current:
Asset - Other financial assets 3.99 – 7.65 –
Liability - Other financial liabilities – – 3.06 –

(m) Breakup of cash flow hedging reserve and cost of hedging reserve:
v crore
As at 31-3-2022 As at 31-3-2021

Particulars Cash flow Cost of Cash flow Cost of

hedging hedging hedging hedging
reserve reserve reserve reserve
Balance towards continuing hedges 318.08 (4.76) 284.77 (4.34)
Balance for which hedge accounting discontinued 405.17 0.04 207.34 (2.67)
Total 723.25 (4.72) 492.11 (7.01)

(n) Reclassification of hedging reserve and cost of hedging reserve to Profit or Loss:
v crore
Particulars 2021-22 2020-21
(A) Future cash flows are no longer expected to occur:
(i) Sales, administration and other expenses 21.57 39.49
(B) Hedged expected future cash flows affecting Profit or loss:
(i) Progress billing 20.40 260.25
(ii) Revenue from operations 284.56 38.12
(iii) Manufacturing, construction and operating expenses 44.78 90.86
(iv) Finance costs (75.37) (137.54)
(v) Sales, administration and other expenses 47.30 242.30

600
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [59] (contd.)
(o) Movement of cash flow hedging reserve and cost of hedging reserve:
v crore
Cash flow hedging reserve 2021-22 2020-21
Opening balance 492.11 (421.77)
Changes in the spot element of the forward contracts which is designated as hedging instruments
for time period related hedges 1.77 222.30
Changes in fair value of forward contracts designated as hedging instruments 762.09 1837.49
Changes in intrinsic value of option contracts 7.24 (6.94)
Changes in fair value of swaps 4.90 28.16
Amount reclassified to Profit or Loss (408.11) (421.08)
Amount included in non-financial asset/liability 0.15 (6.62)
Amount included in progress billing in Balance Sheet (20.40) (260.25)
Taxes related to above (116.50) (479.18)
Closing balance 723.25 492.11

v crore
Cost of hedging reserve 2021-22 2020-21
Opening balance (7.01) (15.15)
Changes in the forward element of the forward contracts where changes in spot element of forward
contract is designated as hedging instruments for time period related hedges (82.21) (138.38)
Amount reclassified to Profit or Loss 85.27 149.50
Taxes related to above (0.77) (2.98)
Closing balance (4.72) (7.01)

NOTE [60]
Value of financial assets and inventories hypothecated as collateral for liabilities and/or commitments and/or contingent liabilities:

v crore
As at As at
Particulars
31-3-2022 31-3-2021
Current:
Inventories and trade receivables 11409.83 15290.95
Cash and cash equivalents 4623.16 345.59
Loans 39256.71 34777.90
Other assets 690.07 522.27
Total inventories and current financial assets hypothecated as collateral 55979.77 50936.71
Non-current:
Loans 39027.52 47357.97
Total non-current financial assets hypothecated as collateral 39027.52 47357.97

601
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [61]
Disclosure pursuant to Ind AS 116 “Leases”:

(a) Where the Group is a lessor:

(i) Finance leases:

A. Assets given under leases mainly include power plant where the Group has agreed to manufacture/construct an asset and
convey, in substance, a right to the beneficiary to use the asset over a major part of its economic life, for a pre-determined
consideration.

B. Finance lease income recognised in the Statement of Profit and Loss: R 1021.62 crore (previous year: R 1023.64 crore). Out
of above, R 971.23 crore (previous year: R 984.30 crore) is on the net investment in finance lease and R 50.39 crore (previous
year: R 39.34 crore) is income relating to variable lease payments not included in the measurement of the net investment in
finance leases.

C. Selling profit on finance lease recognised in the Statement of Profit and Loss: R 1.13 crore (previous year: R 14.55 crore).

D. Sub-lease income recognised on finance leases: R 0.10 crore (previous year: R 0.18 crore).

E. The gross investment in these leases and the present value of minimum lease payments receivable is as under:

v crore
Present value of minimum
Minimum lease payments
Sr. lease payments
Particulars
No. As at As at As at As at
31-3-2022 31-3-2021 31-3-2022 31-3-2021
1 Receivable not later than 1 year 1241.74 1151.43 343.45 207.15
2 Receivable later than 1 year and not later than 2 years 1518.23 1235.89 643.44 310.37
3 Receivable later than 2 years and not later than 3 years 1291.33 1517.28 478.98 642.15
4 Receivable later than 3 years and not later than 4 years 1017.80 1290.94 246.71 478.38
5 Receivable later than 4 years and not later than 5 years 1008.68 1017.77 265.92 246.40
6 Receivable later than 5 years 11440.94 12449.61 5578.63 5841.02
7 Unguaranteed residual value 990.36 990.36 990.36 990.36
8 Gross investment in leases (1+2+3+4+5+6+7) 18509.08 19653.28 8547.49 8715.83
9 Less: Unearned finance income 9961.59 10937.45
10 Present value of minimum lease payments receivable (8-9) 8547.49 8715.83
11 Less: Impairment [in Developmental Projects Segment
(Note 48)] / Expected credit loss on lease receivables 1989.06 1687.42 1989.06 1687.42
Net lease receivables (10-11) 6558.43 7028.41 6558.43 7028.41
F. Reconciliation of carrying amount of net investment in finance lease receivables:
v crore
Sr. No. Particulars 2021-22 2020-21
1 Opening balance 7028.41 8898.18
2 Finance income/sub-lease income recognised during the year 971.33 984.48
3 Addition to finance lease during the year 7.84 28.65
4 Lease rental received during the year (1147.51) (1195.48)
5 Impairment [in Developmental Projects Segment (Note 48)]/ Expected credit loss
recognised during the year (301.64) (1687.42)
6 Closing balance (1+2+3+4+5) 6558.43 7028.41
(ii) Operating leases:

A. The Group has given, on non-cancellable lease, certain assets such as buildings, plant & equipment, furniture & fixtures and
vehicles. Leases are renewed only on mutual consent and at a prevalent market price and sub-lease is generally restricted.

B. Operating lease income recognised in the Statement of Profit and Loss: R 107.52 crore (previous year: R 101.31 crore).

C. Sub-lease income recognised on operating leases: R 2.98 crore (previous year: R 3.94 crore).

602
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [61] (contd.)
D. Annual undiscounted lease payments receivable is as under:
v crore
As at As at
Sr. No. Particulars
31-3-2022 31-3-2021
1 Receivable not later than 1 year 52.46 70.29
2 Receivable later than 1 year and not later than 2 years 41.48 48.66
3 Receivable later than 2 years and not later than 3 years 17.61 22.82
4 Receivable later than 3 years and not later than 4 years 1.37 7.41
5 Receivable later than 4 years and not later than 5 years 0.50 0.37
6 Receivable later than 5 years 0.40 0.64
Total (1+2+3+4+5+6) 113.82 150.19
(b) Where the Group is a lessee:

(i) The Group has taken on lease various assets such as plant & equipment, buildings, furniture & fixtures, vehicles and computers.
Generally, leases are renewed only on mutual consent and at a prevalent market price.

(ii) The Group during the year has leased out surplus capacity in leased assets and has accounted an income of R 3.08 crore (previous
year: R 4.12 crore) on such sub-leases.

(iii) Details with respect to right-of-use assets:

v crore
Depreciation for the year Additions during the year Carrying amount
Class of asset
2021-22 2020-21 2021-22 2020-21 As at 31-3-2022 As at 31-3-2021
Land 19.70 19.03 3.80 5.64 343.82 368.80
Buildings 397.69 363.20 423.10 354.63 1606.87 1602.80
Plant & equipment 36.13 73.57 28.04 5.78 33.27 42.82
Furniture & fixtures 1.67 1.67 – – 3.48 5.14
Vehicles 0.21 0.16 – 0.34 0.25 0.45
Computers 0.59 0.24 – 1.76 0.93 1.52
Total 455.99 457.87 454.94 368.15 1988.62 2021.53
(iv) Interest expense on lease liabilities amounts to R 155.59 crore (previous year: R 203.57 crore) [including R Nil (previous year: R 0.28
crore) pertaining to discontinued operations].

(v) Amounts not included in the measurement of the lease liability and recognised as expense in the Statement of Profit and Loss
during the year are as follows:

A. Short term leases - R 3102.47 crore (previous year: R 2339.65 crore) [including R Nil (previous year: R 4.60 crore) pertaining to
discontinued operations];

B. Low value leases - R 68.62 crore (previous year: R 38.88 crore)

(vi) Total cash outflow for leases amounts to R 3557.66 crore (previous year: R 2792.92 crore) [including R Nil (previous year: R 5.89
crore) pertaining to discontinued operations] during the year including cash outflow of short term and low value leases.

(vii) The Group has entered into certain lease agreements, which had not commenced by the year end and as a result, a lease liability
and right-of-use asset has not been recognised as at year end. The aggregate future cash flows to which the Group is exposed in
respect of these contracts are:

Fixed payments of R 7.38 crore (previous year: R 8.39 crore) per year, for a lease term of 5.5 years (previous year: 10 years)

603
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [62]
Additional information pursuant to Schedule III to the Companies Act, 2013 as at and for the year ended 31-3-2022:
Net Assets, i.e., total assets minus Share in Other comprehensive Share in Total comprehensive
Share in profit or (loss)
total liabilities income income
As % of As % of
Name of the entity As % of As % of consolidated consolidated
Amount Amount Amount Amount
consolidated consolidated Other Total
(R crore) (R crore) (R crore) (R crore)
net assets profit or loss comprehensive comprehensive
income income
Parent company
Larsen and Toubro Limited 81.44% 67114.05 90.89% 7879.45 (11.00%) (36.21) 87.16% 7843.24
Indian Subsidiaries
Infrastructure:
Hi-Tech Rock Products and
Aggregates Limited (0.00%) (1.34) (0.02%) (1.33) – – (0.01%) (1.33)
L&T Geostructure Private Limited 0.35% 287.61 0.56% 48.36 (0.02%) (0.08) 0.54% 48.28
L&T Infrastructure Engineering
Limited 0.06% 47.53 0.02% 2.06 – – 0.02% 2.06
IT & Technology Services:
Larsen & Toubro Infotech Limited 10.20% 8402.87 26.08% 2260.93 19.51% 64.27 25.84% 2325.20
L&T Technology Services Limited 4.83% 3981.54 10.60% 918.55 24.46% 80.57 11.10% 999.12
Mindtree Limited (Consolidated) 6.64% 5473.94 19.07% 1652.90 29.63% 97.61 19.45% 1750.51
L&T Thales Technology Services
Private Limited 0.06% 51.50 0.16% 13.50 0.04% 0.14 0.15% 13.64
Graphene Semiconductor Services
Private Limited 0.01% 10.98 0.00% 0.14 – – 0.00% 0.14
Seastar Labs Private Limited 0.00% 0.06 (0.00%) (0.05) – – (0.00%) (0.05)
Esencia Technologies India Private
Limited 0.00% 0.59 (0.00%) (0.01) – – (0.00%) (0.01)
Lymbyc Solutions Private Limited 0.00% 0.52 (0.02%) (2.16) – – (0.02%) (2.16)
Powerup Cloud Technologies
Private Limited 0.01% 6.48 0.02% 1.97 (0.01%) (0.02) 0.03% 1.95
Cuelogic Technologies Private
Limited 0.02% 13.63 (0.00%) (0.13) – – (0.00%) (0.13)
Financial Services:
L&T Finance Holdings Limited 13.68% 11271.13 2.52% 218.18 0.73% 2.42 2.45% 220.60
L&T Infra Credit Limited (formerly
known as L&T Infra Debt Fund
Limited) 1.63% 1340.38 0.05% 4.11 0.20% 0.66 0.06% 4.77
L&T Infra Investment Partners
Advisory Private Limited 0.03% 21.52 0.04% 3.58 – – 0.04% 3.58
L&T Infra Investment Partners
Trustee Private Limited 0.00% 0.08 0.00% 0.01 – – 0.00% 0.01
L&T Investment Management
Limited 0.66% 541.57 1.75% 151.38 (0.30%) (1.00) 1.67% 150.38
L&T Mutual Fund Trustee Limited 0.00% 0.96 0.00% 0.04 – – 0.00% 0.04
L&T Financial Consultants Limited 0.30% 245.15 0.78% 67.67 0.01% 0.03 0.75% 67.70
Mudit Cement Private Limited 0.03% 22.28 (0.07%) (6.26) – – (0.07%) (6.26)
L&T Finance Limited 20.01% 16491.38 9.32% 807.99 18.83% 62.02 9.67% 870.01
L&T Infra Investment Partners 0.48% 398.81 (0.53%) (46.33) – – (0.51%) (46.33)
Developmental Projects:
L&T Metro Rail (Hyderabad)
Limited (2.03%) (1669.37) (20.14%) (1745.85) 0.15% 0.51 (19.40%) (1745.34)

604
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [62] (contd.)
Net Assets, i.e., total assets minus Share in Other comprehensive Share in Total comprehensive
Share in profit or (loss)
total liabilities income income
As % of As % of
Name of the entity As % of As % of consolidated consolidated
Amount Amount Amount Amount
consolidated consolidated Other Total
(R crore) (R crore) (R crore) (R crore)
net assets profit or loss comprehensive comprehensive
income income
Power Development:
L&T Arunachal Hydropower
Limited (0.00%) (0.15) 0.00% 0.08 – – 0.00% 0.08
L&T Himachal Hydropower Limited (0.00%) (0.59) 0.03% 2.43 – – 0.03% 2.43
L&T Power Development Limited 3.04% 2508.59 2.52% 218.93 – – 2.43% 218.93
L&T Uttaranchal Hydropower
Limited – – 0.45% 39.16 – – 0.44% 39.16
Nabha Power Limited 4.79% 3951.21 3.48% 301.82 (0.20%) (0.66) 3.35% 301.16
Realty:
Chennai Vision Developers Private
Limited (0.00%) (0.03) (0.00%) (0.01) – – (0.00%) (0.01)
L&T Asian Realty Project LLP (0.08%) (68.80) (0.27%) (23.38) – – (0.25%) (23.38)
L&T Parel Project Private Limited
(formerly known as L&T Parel
Project LLP) 0.25% 206.60 0.69% 59.82 (0.01%) (0.03) 0.66% 59.79
L&T Realty Developers Limited 1.13% 927.59 1.69% 146.42 (0.01%) (0.04) 1.63% 146.38
LTR SSM Private Limited – – – – – – – –
L&T Seawoods Limited 3.40% 2801.36 0.62% 53.36 0.01% 0.02 0.60% 53.38
L&T Vision Ventures Limited – – – – – – – –
L&T Innovation Campus (Chennai)
Limited (formerly known as
L&T Electricals and Automation
Limited) (0.00%) (2.32) (0.01%) (0.59) – – (0.01%) (0.59)
L&T Westend Project LLP – – – – – – – –
Valves, Construction Equipment:
L&T Construction Equipment
Limited 0.25% 204.38 0.13% 11.45 (0.03%) (0.10) 0.13% 11.35
L&T Valves Limited 0.59% 484.44 0.16% 14.10 (0.02%) (0.07) 0.16% 14.03
Others:
Bhilai Power Supply Company
Limited 0.00% 0.05 – – – – – –
L&T Power Limited 0.01% 5.84 0.00% 0.12 – – 0.00% 0.12
Kesun Iron and Steel Company
Private Limited – – – – – – – –
L&T Aviation Services Private
Limited 0.05% 37.13 0.02% 2.00 – – 0.02% 2.00
L&T Capital Company Limited 0.00% 3.70 – – – – – –
L&T Infra Contractors Private
Limited – – – – – – – –
Foreign Subsidiaries
Infrastructure:
Larsen & Toubro (Oman) LLC 0.52% 425.11 0.07% 6.11 2.81% 9.25 0.17% 15.36
Larsen & Toubro Qatar LLC (0.00%) (0.50) (0.00%) (0.24) (0.10%) (0.34) (0.01%) (0.58)
Larsen & Toubro Saudi Arabia LLC 0.55% 455.00 0.51% 44.38 19.67% 64.78 1.21% 109.16
Larsen & Toubro T&D SA
(Proprietary) Limited 0.00% 3.73 0.00% 0.13 0.06% 0.21 0.01% 0.34
Larsen & Toubro (East Asia) Sdn.
Bhd. 0.01% 4.61 0.00% 0.29 0.03% 0.10 0.00% 0.39

605
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [62] (contd.)
Net Assets, i.e., total assets minus Share in Other comprehensive Share in Total comprehensive
Share in profit or (loss)
total liabilities income income
As % of As % of
Name of the entity As % of As % of consolidated consolidated
Amount Amount Amount Amount
consolidated consolidated Other Total
(R crore) (R crore) (R crore) (R crore)
net assets profit or loss comprehensive comprehensive
income income
Hydrocarbon:
Larsen & Toubro Heavy
Engineering LLC (0.16%) (128.91) (0.10%) (8.69) (1.34%) (4.42) (0.15%) (13.11)
L&T Modular Fabrication Yard LLC 0.22% 179.07 (0.42%) (36.01) 2.11% 6.95 (0.31%) (29.06)
Larsen Toubro Arabia LLC (0.32%) (262.34) 0.43% 37.11 (3.10%) (10.22) 0.30% 26.89
L&T Hydrocarbon Saudi Company (0.79%) (653.33) 0.09% 7.64 (25.16%) (82.88) (0.84%) (75.24)
Larsen & Toubro Kuwait
Construction General Contracting
Company WLL 0.01% 8.92 0.01% 0.81 0.09% 0.28 0.01% 1.09
PT Larsen & Toubro Hydrocarbon
Engineering Indonesia – – – – – – – –
Larsen & Toubro Electromech LLC (0.09%) (72.11) (1.43%) (123.69) 1.31% 4.30 (1.33%) (119.39)
L&T Hydrocarbon International
FZE 0.00% 0.48 0.01% 0.48 – – 0.01% 0.48
IT & Technology Services:
L&T Information Technology
Services (Shanghai) Co., Limited (0.00%) (1.66) 0.03% 2.24 (0.06%) (0.20) 0.02% 2.04
L&T Infotech Financial Services
Technologies Inc. 0.38% 312.83 1.26% 108.97 (0.88%) (2.89) 1.18% 106.08
Larsen & Toubro Infotech Canada
Limited 0.06% 49.32 0.13% 11.54 0.53% 1.74 0.15% 13.28
Larsen & Toubro Infotech LLC 0.01% 6.63 0.00% 0.25 0.07% 0.24 0.01% 0.49
Larsen and Toubro Infotech South
Africa (Proprietary) Limited 0.02% 17.76 0.07% 5.72 0.27% 0.89 0.07% 6.61
Larsen & Toubro Infotech GmbH 0.45% 366.93 (0.18%) (15.97) 0.40% 1.32 (0.16%) (14.65)
L&T Information Technology
Spain SL 0.00% 0.47 0.00% 0.16 (0.00%) (0.01) 0.00% 0.15
Larsen & Toubro Infotech Norge
AS 0.01% 9.33 0.07% 5.67 0.04% 0.12 0.06% 5.79
Larsen & Toubro LLC 0.00% 2.95 0.00% 0.01 0.03% 0.10 0.00% 0.11
L&T Infotech S. DE R.L. DE C.V. 0.01% 4.22 0.03% 2.45 0.06% 0.19 0.03% 2.64
Syncordis S.A. 0.05% 42.13 0.11% 9.13 (0.24%) (0.78) 0.09% 8.35
Syncordis France SARL (0.01%) (7.48) (0.02%) (1.54) 0.05% 0.15 (0.02%) (1.39)
Syncordis Limited (0.04%) (24.91) (0.08%) (6.99) 0.12% 0.40 (0.07%) (6.59)
Syncordis PSF S.A. 0.01% 9.03 0.07% 6.23 (0.07%) (0.22) 0.07% 6.01
Nielsen+Partner
Unternehmensberater GmbH 0.01% 10.29 (0.02%) (1.48) (0.04%) (0.14) (0.02%) (1.62)
Nielsen+Partner
Unternehmensberater AG 0.00% 3.20 (0.01%) (0.50) 0.07% 0.22 (0.00%) (0.28)
Nielsen+Partner Pte Limited 0.03% 27.43 (0.09%) (7.95) 0.28% 0.92 (0.08%) (7.03)
Nielsen&Partner Company Limited (0.00%) (2.49) (0.01%) (0.80) 0.01% 0.04 (0.01%) (0.76)
Nielsen&Partner Pty Limited (0.01%) (5.07) (0.05%) (4.15) (0.04%) (0.14) (0.05%) (4.29)
Ruletronics Limited – – (0.00%) (0.28) (0.01%) (0.02) (0.00%) (0.30)
Ruletronics Systems Inc. 0.00% 0.99 0.00% 0.21 0.01% 0.03 0.00% 0.24
Lymbyc Solutions Inc. (0.00%) (0.39) – – – – – –
L&T Technology Services LLC 0.38% 309.07 0.50% 43.38 5.11% 16.86 0.67% 60.24
Graphene Solutions PTE Limited 0.00% 0.53 (0.00%) (0.13) 0.01% 0.02 (0.00%) (0.11)

606
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [62] (contd.)
Net Assets, i.e., total assets minus Share in Other comprehensive Share in Total comprehensive
Share in profit or (loss)
total liabilities income income
As % of As % of
Name of the entity As % of As % of consolidated consolidated
Amount Amount Amount Amount
consolidated consolidated Other Total
(R crore) (R crore) (R crore) (R crore)
net assets profit or loss comprehensive comprehensive
income income
Graphene Solutions SDN. BHD. 0.00% 0.13 (0.00%) (0.02) – – (0.00%) (0.02)
Graphene Solutions Taiwan
Limited 0.00% 0.23 (0.00%) (0.08) 0.00% 0.01 (0.00%) (0.07)
L&T Technology Services
(Shanghai) Co. Limited 0.00% 2.26 0.01% 1.02 0.03% 0.11 0.01% 1.13
Orchestra Technology, Inc. 0.02% 15.19 (0.08%) (6.77) 0.20% 0.65 (0.07%) (6.12)
Larsen & Toubro Infotech UK
Limited 0.02% 12.71 0.15% 12.79 (0.09%) (0.30) 0.14% 12.49
LTI Middle East FZ-LLC 0.02% 17.97 0.19% 16.25 0.10% 0.33 0.18% 16.58
L&T Technology Services (Canada)
Limited (0.00%) (0.88) (0.01%) (0.95) (0.01%) (0.02) (0.01%) (0.97)
Cuelogic Technologies Inc. 0.00% 0.97 0.01% 0.60 0.01% 0.02 0.01% 0.62
Valves, Construction Equipment:
L&T Valves Arabia Manufacturing
LLC (0.00%) (2.07) (0.04%) (3.33) (0.01%) (0.04) (0.04%) (3.37)
L&T Valves USA LLC 0.00% 2.18 0.01% 0.82 0.02% 0.06 0.01% 0.88
Electrical & Automation:
Thalest Limited – – – – – – – –
Others:
L&T International FZE 0.49% 403.05 0.49% 42.35 4.12% 13.58 0.62% 55.93
L&T Global Holdings Limited 0.73% 601.54 0.00% 0.09 6.46% 21.29 0.24% 21.38
Total Subsidiaries 60142.92 5322.22 348.79 5671.01
Non-controlling Interest in all
subsidiaries (15.73%) (12966.07) (20.20%) (1749.91) (33.08%) (108.97) (20.66%) (1858.88)
Associates
Indian Associates
Gujarat Leather Industries Limited – – – – – – – –
Magtorq Private Limited 0.01% 5.54 0.01% 0.77 – – 0.01% 0.77
Magtorq Engineering Solutions
Private Limited 0.00% 0.53 0.00% 0.04 – – 0.00% 0.04
Foreign Associates
Larsen & Toubro Qatar & HBK
Contracting Co. WLL (0.00%) (3.89) – – – – – –
L&T Camp Facilities LLC 0.00% 3.03 (0.02%) (1.40) (0.02%) (0.08) (0.02%) (1.48)
Total Associates 5.21 (0.59) (0.08) (0.67)
Indian Joint Ventures
Power:
L&T - MHI Power Boilers Private
Limited 1.07% 884.93 1.42% 122.94 (0.10%) (0.34) 1.36% 122.60
L&T - MHI Power Turbine
Generators Private Limited 0.24% 196.44 0.06% 5.02 1.75% 5.75 0.12% 10.77
L&T Howden Private Limited 0.09% 76.19 0.17% 14.10 – – 0.16% 14.10
L&T-Sargent & Lundy Limited 0.05% 37.44 0.12% 9.36 0.05% 0.18 0.11% 9.54

607
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [62] (contd.)
Net Assets, i.e., total assets minus Share in Other comprehensive Share in Total comprehensive
Share in profit or (loss)
total liabilities income income
As % of As % of
Name of the entity As % of As % of consolidated consolidated
Amount Amount Amount Amount
consolidated consolidated Other Total
(R crore) (R crore) (R crore) (R crore)
net assets profit or loss comprehensive comprehensive
income income
Heavy Engineering:
L&T Special Steels and Heavy
Forgings Private Limited [The
Group’s funded exposure (net of
impairment) is nil and hence no
further losses recognised] (2.18%) (1792.48) – – – – – –
Defence Engineering:
L&T MBDA Missile Systems
Limited 0.04% 33.68 0.30% 26.34 – – 0.29% 26.34
Hydrocarbon:
L&T Sapura Offshore Private
Limited 0.00% 0.30 0.00% 0.01 – – 0.00% 0.01
L&T Sapura Shipping Private
Limited 0.23% 192.04 (0.75%) (64.62) 2.39% 7.86 (0.63%) (56.76)
L&T-Chiyoda Limited 0.06% 48.18 (0.07%) (6.40) 0.15% 0.50 (0.07%) (5.90)
Developmental Projects:
L&T Infrastructure Development
Projects Limited (Consolidated) 0.98% 808.58 0.15% 12.62 16.91% 55.71 0.76% 68.33
Others:
Raykal Aluminium Company
Private Limited 0.00% 0.06 (0.00%) (0.01) – – (0.00%) (0.01)
Foreign Joint Ventures
Construction
L&T Infrastructure Engineering
Limited and LEA Associates South
Asia Private Limited JV LLP 0.00% 2.00 0.02% 1.80 – – 0.02% 1.80
Hydrocarbon:
Indiran Engineering Projects &
Systems Kish PJSC (0.00%) (0.04) (0.00%) (0.01) 0.01% 0.03 0.00% 0.02
L&T Hydrocarbon Caspian LLC – – – – – – – –
Total Joint Ventures 487.32 121.15 69.69 190.84
CFS adjustment and elimination (39.30%) (32375.77) (33.49%) (2902.99) 17.04% 56.16 (31.64%) (2846.83)
Total 82407.66 8669.33 329.38 8998.71

608
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [63]
(a) Notes with respect to remarks in CARO Report:

(i) The Parent Company renewed the loan of R 24.66 crore to Hi-Tech Rock Product & Aggregates Limited, a subsidiary, as its business
was affected majorly due to an inverted duty structure. The subsidiary company has initiated measures to become more cost
competitive including redressal of the inverted duty structure through various forums.

(ii) The Parent Company renewed the loan of R 168.48 crore to L&T Sapura Shipping Private Limited, a joint venture, as the vessel
owned by it was under major repairs since its accident in March 2020 and the joint venture company was unable to generate
revenue. The vessel is expected to be re-commissioned in 2022-23. The payment of interest of R 3.50 crore on the Parent
Company’s bridge loan, for repairs of the vessel, is overdue and would be settled out of insurance claim proceeds.

(iii) The payment of interest of R 35.83 crore on the loan given by L&T Seawoods Limited, a subsidiary, to Asian Realty Projects LLP,
another subsidiary, is overdue. The loan would be repaid from the proceeds of the sale of inventory i.e. residential flats. Due to the
sub-optimal bookings in the project, the borrower company could not service interest on the loan. The subsidiary companies have
taken reasonable steps for regularisation of the account.

(iv) L&T Chennai Tada Tollway Limited, a subsidiary and SPV of L&T Infrastructure Development Projects Limited, a joint venture, has not
repaid the loan of R 265.22 crore to banks as the company is yet to receive the dues on termination of the project as below:

(a) Under the Concession agreement, NHAI was to arrange land for conversion of 66 km of 4 lane-road to 6 lanes. The SPV could
construct 42 km and remaining 24 km could not be completed as NHAI could not make land available. Due to default by NHAI
on this condition, the SPV terminated the project in 2015 and claimed the termination dues as per the concession agreement.

(b) Pending settlement of the termination dues, SPV approached the Hon’ble Delhi High Court and obtained the directions for
NHAI to deposit toll collections from the project in the SPV’s escrow account till the arbitration award.

(c) The favourable arbitration award for determination and settlement of termination dues was received in 2019. NHAI, which
hitherto was depositing the toll collections in the escrow account, discontinued the same w.e.f. November 8, 2020 and also
appealed against the award with High Court of Delhi.

(d) With toll collections not available, the SPV could not service the interest payment. The lenders filed an application before the
Debt Recovery Tribunal (DRT), Chennai seeking direction to issue recovery certificate against the SPV. As per the DRT order
dated April 13, 2022, the SPV was asked to deposit R 70.00 crore in two instalments which are not due yet.

(e) The SPV has sought remedy to link the debt servicing with the receipt of termination dues from NHAI.

(v) L&T Special Steels and Heavy Forgings Private Limited (LTSSHF), a joint venture, owes a loan of R 1871.61 crore to L&T. The loan falls
due in 2022-23. LTSSHF has estimated a cash shortfall to fulfil the repayment obligation and is, in discussion with its promoters,
exploring options to restructure its balance sheet.

609
Integrated Annual Report 2021-22 Notes forming part of the Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

Note [63] (contd.)
(b) Balance outstanding with struck off companies:
v crore
Relationship with Balance Balance
Sr.
Name of struck off company Nature of transaction the struck off outstanding as at outstanding as at
No.
company March 31, 2022 March 31, 2021
1 Walls Infra Solution Private Limited Accounts Payable NA –
[1]
–
[1]

2 Avn Green Technologies Private Accounts Payable

Limited NA –
[1]
–
[1]

3 Alert Infraprojects Private Limited Accounts Payable NA 0.01 0.01

4 I S Earth Movers Private Limited Accounts Payable NA –
[1]
–
[1]

5 Victor Properties Private Limited Shares held by struck off

company NA –
[1]
–
[1]

6 Kothari Intergroup Limited Shares held by struck off

company NA –
[1]
–
[1]

7 Inmech Engineering Private Loan given to struck off

Limited company by subsidiary NA –
[1]
–
[1]

[1]
Less than R 1 Lakhs

NOTE [64]
There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2022.

Note [65]
a. For better understanding of the Group’s financial performance, line items have been added to show Profit after tax from continuing
operations separately from exceptional items. This is in line with guidance available in Schedule III to the Act.

b. Figures for the previous year have been regrouped/re–classified to conform to the figures of the current year.

610
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Statement containing salient features of the financial statements of

subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] v crore
Sr. No. 1 2 3 4 5 6
Hi-Tech Rock L&T
Sr. L&T
Products and Infrastructure Larsen & Toubro L&T Technology
No. Particulars Geostructure Mindtree Limited
Aggregates Engineering Infotech Limited Services Limited
Private Limited
Limited Limited
Financial year ending on 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation/ Date of
Acquisition 01-Jan-08* 25-Nov-20* 09-Dec-98* 23-Dec-96* 14-Jun-12* 02-Jul-19
1 Share capital (including share application
money pending allotment) 0.05 25.00 3.60 17.53 21.11 164.83
2 Other equity/Reserves and surplus (as
applicable) (1.39) 262.61 43.93 8385.34 3960.50 5308.60
3 Liabilities 92.54 1091.22 56.88 3300.43 1726.69 2683.37
4 Total equity and liabilities 91.20 1378.83 104.41 11703.30 5708.30 8156.80
5 Total assets 91.20 1378.83 104.41 11703.30 5708.30 8156.80
6 Investments 11.53 0.00 0.09 4142.80 1647.37 2552.30
7 Turnover 48.55 1211.52 84.72 14406.43 5873.68 10525.29
8 Profit before taxation (1.33) 70.39 3.06 3010.47 1250.84 2210.60
9 Provision for taxation – 22.03 1.01 749.54 332.29 557.80
10 Profit after taxation (1.33) 48.36 2.06 2260.93 918.55 1652.80
11 Interim dividend - equity – – – (437.88) (210.95) (164.81)
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – (389.35) (116.98) (271.42)
14 Proposed dividend - preference – – – – – –
15 % of share holding 100.00 100.00 100.00 74.05 73.90 60.99

Sr. No. 7 8 9 10 11 12
L&T Thales Graphene Esencia
Sr. Powerup Cloud
Technology Semiconductor Seastar Labs Technologies Lymbyc Solutions
No. Particulars Technologies
Services Private Services Private Private Limited India Private Private Limited
Private Limited
Limited Limited Limited
Financial year ending on 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation/ Date of
Acquisition 15-Feb-14 15-Oct-18 15-Oct-18 31-May-17 29-Aug-19 25-Oct-19
1 Share capital (including share application
money pending allotment) 2.06 1.43 0.05 0.01 1.15 0.02
2 Other equity/Reserves and surplus (as
applicable) 49.44 9.55 0.01 0.58 (0.63) 6.46
3 Liabilities 23.67 0.17 0.14 0.01 2.95 2.12
4 Total equity and liabilities 75.17 11.15 0.20 0.60 3.47 8.60
5 Total assets 75.17 11.15 0.20 0.60 3.47 8.60
6 Investments 27.51 10.66 – – 0.56 –
7 Turnover 91.91 – – – – 9.75
8 Profit before taxation 18.20 0.22 (0.05) (0.01) (1.79) 1.98
9 Provision for taxation 4.70 0.08 – – 0.37 0.00
10 Profit after taxation 13.50 0.14 (0.05) (0.01) (2.16) 1.97
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 54.69 73.90 73.90 73.90 74.05 74.05
Note: * Date of incorporation

611
Integrated Annual Report 2021-22 Salient Features of the Financial Statements of Subsidiaries/Associate Companies/Joint Ventures

Statement containing salient features of the financial statements of

subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.) v crore
Sr. No. 13 14 15 16 17 18
L&T Infra
L&T Infra
Sr. Cuelogic Investment L&T Investment
L&T Finance L&T Infra Credit Investment
No. Particulars Technologies Partners Management
Holdings Limited Limited Partners Trustee
Private Limited Advisory Private Limited
Private Limited
Limited
Financial year ending on 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation/ Date of
Acquisition 07-Jul-21 01-May-08* 19-Mar-13* 30-May-11* 12-Aug-11* 25-Apr-96*
1 Share capital (including share application
money pending allotment) 0.01 2474.04 490.18 5.00 0.10 251.82
2 Other equity/Reserves and surplus (as
applicable) 13.62 8797.09 850.20 16.52 (0.02) 289.75
3 Liabilities 15.43 152.89 7850.69 0.57 0.01 84.99
4 Total equity and liabilities 29.06 11424.02 9191.07 22.09 0.09 626.56
5 Total assets 29.06 11424.02 9191.07 22.09 0.09 626.56
6 Investments 0.01 9202.12 2508.07 20.66 0.00 547.85
7 Turnover 43.08 350.46 728.93 6.50 0.03 390.68
8 Profit before taxation (0.21) 254.43 11.00 4.78 0.01 203.33
9 Provision for taxation (0.08) 36.25 6.89 1.20 – 51.95
10 Profit after taxation (0.13) 218.18 4.11 3.58 0.01 151.38
11 Interim dividend - equity – – – – – (251.82)
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – (81.96) – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 74.05 66.26 66.26 66.26 66.26 66.26

Sr. No. 19 20 21 22 23 24
Sr. L&T Financial L&T Metro Rail L&T Arunachal
L&T Mutual Fund Mudit Cement L&T Finance
No. Particulars Consultants (Hyderabad) Hydropower
Trustee Limited Private Limited Limited
Limited Limited Limited
Financial year ending on 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation/ Date of
Acquisition 30-Apr-96* 16-Jun-11* 27-Dec-13 31-Dec-12* 24-Aug-10* 24-Jun-10*
1 Share capital (including share application
money pending allotment) 0.15 18.75 84.10 2684.17 2439.00 40.39
2 Other equity/Reserves and surplus (as
applicable) 0.81 226.40 (61.82) 13807.21 (4108.37) (40.54)
3 Liabilities 0.07 184.08 0.11 79680.45 19027.47 0.18
4 Total equity and liabilities 1.03 429.23 22.39 96171.83 17358.10 0.03
5 Total assets 1.03 429.23 22.39 96171.83 17358.10 0.03
6 Investments 0.67 26.88 – 9303.95 – –
7 Turnover 0.07 159.45 – 11057.58 456.87 –
8 Profit before taxation 0.04 113.06 (6.26) 1091.87 (1746.21) 0.08
9 Provision for taxation – 45.39 – 283.89 (0.36) –
10 Profit after taxation 0.04 67.67 (6.26) 807.98 (1745.85) 0.08
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 66.26 66.26 66.26 66.26 100.00 100.00
Note: * Date of incorporation

612
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Statement containing salient features of the financial statements of

subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.) v crore
Sr. No. 25 26 27 28 29 30
Sr. L&T Himachal L&T Power Chennai Vision L&T Realty
Nabha Power L&T Parel Project
No. Particulars Hydropower Development Developers Developers
Limited Private Limited
Limited Limited Private Limited Limited
Financial year ending on 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation/ Date of
Acquisition 22-Jun-10* 12-Sep-07* 09-Apr-07* 14-Aug-08* 25-01-22* 29-Jul-97
1 Share capital (including share application
money pending allotment) 200.55 3112.70 2397.60 0.01 0.01 815.46
2 Other equity/Reserves and surplus (as
applicable) (201.14) (604.11) 1553.60 (0.04) 206.59 112.13
3 Liabilities 0.64 3.82 6025.91 0.03 437.27 510.10
4 Total equity and liabilities 0.05 2512.41 9977.11 0.00 643.87 1437.69
5 Total assets 0.05 2512.41 9977.11 0.00 643.87 1437.69
6 Investments – 2508.58 – 0.00 4.16 344.75
7 Turnover – 2.25 4128.88 – 345.40 373.42
8 Profit before taxation 2.43 221.79 301.82 (0.01) 92.53 173.04
9 Provision for taxation 0.00 2.86 – – 32.72 26.66
10 Profit after taxation 2.43 218.93 301.82 (0.01) 59.82 146.38
11 Interim dividend - equity – – – – – (50.15)
12 Interim dividend - preference – – – – – (51.86)
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 100.00 100.00 100.00 100.00 100.00 100.00

Sr. No. 31 32 33 34 35 36
L&T Innovation
Sr. L&T Construction Bhilai Power
LTR SSM Private L&T Seawoods Campus L&T Valves
No. Particulars Equipment Supply Company
Limited Limited (Chennai) Limited
Limited Limited
Limited
Financial year ending on 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation/ Date of
Acquisition 24-Sep-18* 13-Mar-08* 12-Dec-07* 18-Dec-18* 23-Nov-61* 11-Jul-95*
1 Share capital (including share application
money pending allotment) 0.10 1846.20 7.44 199.14 18.00 0.05
2 Other equity/Reserves and surplus (as
applicable) (0.10) 955.14 (9.76) 5.24 466.44 –
3 Liabilities – 797.89 18.17 165.43 503.01 1.06
4 Total equity and liabilities – 3599.23 15.85 369.81 987.45 1.11
5 Total assets – 3599.23 15.85 369.81 987.45 1.11
6 Investments – 541.87 – – 8.43 –
7 Turnover – 48.14 – 402.41 971.97 –
8 Profit before taxation – 85.32 (0.12) 11.76 19.84 –
9 Provision for taxation – 31.98 0.48 0.31 5.73 –
10 Profit after taxation – 53.34 (0.59) 11.45 14.10 –
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 99.00 100.00 100.00 100.00 100.00 99.90

Note: * Date of incorporation

613
Integrated Annual Report 2021-22 Salient Features of the Financial Statements of Subsidiaries/Associate Companies/Joint Ventures

Statement containing salient features of the financial statements of

subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.) v crore
Sr. No. 37 38 39 40 41 42
L&T - MHI
Sr. Kesun Iron and L&T Aviation L&T Capital L&T - MHI Power
L&T Power Power Turbine
No. Particulars Steel Company Services Private Company Boilers Private
Limited Generators
Private Limited Limited Limited Limited
Private Limited
Financial year ending on 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation/ Date of
Acquisition 09-Mar-06* 16-Jan-09* 06-Nov-09* 06-Apr-00* 09-Oct-06* 27-Dec-06*
1 Share capital (including share application
money pending allotment) 0.05 0.01 45.60 0.05 234.10 710.60
2 Other equity/Reserves and surplus (as
applicable) 5.79 (0.01) (8.47) 3.65 1501.04 (325.42)
3 Liabilities 0.05 – 2.25 0.13 1715.27 1308.44
4 Total equity and liabilities 5.89 – 39.38 3.83 3450.41 1693.62
5 Total assets 5.89 – 39.38 3.83 3450.41 1693.62
6 Investments 6.11 – – 0.00 98.08 61.63
7 Turnover – – 20.08 – 2310.60 607.55
8 Profit before taxation 0.17 – 2.69 0.00 324.36 9.85
9 Provision for taxation 0.05 – 0.69 0.00 83.34 –
10 Profit after taxation 0.12 – 2.00 0.00 241.02 9.85
11 Interim dividend - equity – – – (1.50) (234.10) –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 99.99 95.00 100.00 100.00 51.00 51.00

Sr. No. 43 44 45 46 47 48
L&T Special
Sr. L&T MBDA L&T Sapura L&T Sapura
L&T Howden L&T-Sargent & Steels and Heavy
No. Particulars Missile Systems Offshore Private Shipping Private
Private Limited Lundy Limited Forgings Private
Limited Limited Limited
Limited
Financial year ending on 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22
Currency INR INR INR INR INR USD
Exchange rate on the last day of
financial year – – – – – 75.79
Date of incorporation/ Date of
Acquisition 17-Jun-10* 05-May-95* 01-Jul-09* 05-Apr-17* 02-Sep-10* 02-Sep-10*
1 Share capital (including share application
money pending allotment) 30.00 5.57 566.60 1.00 0.01 158.85
2 Other equity/Reserves and surplus (as
applicable) 122.07 69.30 (2988.87) 65.03 0.49 161.21
3 Liabilities 186.05 35.87 2924.05 265.22 6.01 466.25
4 Total equity and liabilities 338.12 110.74 501.78 331.25 6.51 786.31
5 Total assets 338.12 110.74 501.78 331.25 6.51 786.31
6 Investments – 65.92 – – – –
7 Turnover 293.77 102.08 263.11 147.03 – 0.70
8 Profit before taxation 37.79 21.42 (183.94) 54.39 0.00 (107.56)
9 Provision for taxation 9.64 2.70 – 2.74 (0.00) 0.13
10 Profit after taxation 28.14 18.71 (183.94) 51.65 0.01 (107.69)
11 Interim dividend - equity (6.75) (6.00) – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 50.10 50.00 74.00 51.00 60.00 60.00
Note: * Date of incorporation

614
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Statement containing salient features of the financial statements of

subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.) v crore
Sr. No. 49 50 51 52 53 54
Raykal L&T L&T
Sr. Vadodara L&T Interstate
Aluminium Infrastructure Panipat Elevated Transportation
No. Particulars Bharuch Tollway Road Corridor
Company Private Development Corridor Limited Infrastructure
Limited Limited
Limited Projects Limited Limited
Financial year ending on 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation/ Date of
Acquisition 23-Feb-99* 26-Feb-01* 21-Jul-05* 23-Dec-05* 02-Feb-06* 24-Sep-97*
1 Share capital (including share application
money pending allotment) 0.05 629.52 30.05 43.50 57.16 41.40
2 Other equity/Reserves and surplus (as
applicable) 0.03 2521.12 (373.50) 121.86 (10.03) 383.48
3 Liabilities 0.86 74.38 463.28 26.29 104.62 56.93
4 Total equity and liabilities 0.94 3225.02 119.83 191.65 151.75 481.81
5 Total assets 0.94 3225.02 119.83 191.65 151.75 481.81
6 Investments – 2384.68 2.12 2.01 65.53 88.22
7 Turnover – 115.63 36.60 406.73 25.71 58.60
8 Profit before taxation (0.01) (41.81) (40.80) 133.59 0.57 39.78
9 Provision for taxation – 1.21 – 23.42 0.09 10.87
10 Profit after taxation (0.01) (43.02) (40.80) 110.17 0.48 28.89
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 75.50 51.00 51.00 51.00 51.00 63.86

Sr. No. 55 56 57 58 59 60
Sr. Ahmedabad- L&T Samakhiali Kudgi L&T Sambalpur-
L&T Deccan PNG Tollway
No. Particulars Maliya Tollway Gandhidham Transmission Rourkela Tollway
Tollways Limited Limited
Limited Tollway Limited Limited Limited
Financial year ending on 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation/ Date of
Acquisition 09-Sep-08* 05-Feb-10* 20-Dec-11* 30-Aug-13 18-Oct-13* 16-Feb-09*
1 Share capital (including share application
money pending allotment) 149.00 80.54 285.34 192.60 290.03 169.10
2 Other equity/Reserves and surplus (as
applicable) (90.29) (561.27) (683.75) 376.62 (187.37) (168.22)
3 Liabilities 1230.30 2006.89 2285.15 1494.48 890.63 0.01
4 Total equity and liabilities 1289.01 1526.16 1886.74 2063.70 993.29 0.89
5 Total assets 1289.01 1526.16 1886.74 2063.70 993.29 0.89
6 Investments 70.52 – 73.01 152.34 48.44 0.34
7 Turnover 227.19 199.25 191.54 242.49 163.85 0.01
8 Profit before taxation (17.40) (127.53) (138.76) 95.06 (24.70) 167.21
9 Provision for taxation – – 0.03 – – –
10 Profit after taxation (17.40) (127.53) (138.79) 95.06 (24.70) 167.21
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 51.00 51.01 52.89 51.00 51.00 37.74

Note: * Date of incorporation

615
Integrated Annual Report 2021-22 Salient Features of the Financial Statements of Subsidiaries/Associate Companies/Joint Ventures

Statement containing salient features of the financial statements of

subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.) v crore
Sr. No. 61 62 63 64
Sr. L&T Rajkot- L&T Chennai- Watrak
LT IDPL INDVIT
No. Particulars Vadinar Tollway Tada Tollway Infrastructure
Services Limited
Limited Limited Private Limited
Financial year ending on 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22
Currency INR INR INR INR
Exchange rate on the last day of financial year – – – –
Date of incorporation/ Date of Acquisition 08-Sep-08* 24-Mar-08* 18-Nov-21 20-May-99*
1 Share capital (including share application
money pending allotment) 110.00 42.00 0.01 13.95
2 Other equity/Reserves and surplus (as
applicable) (169.54) (6.22) (0.01) 104.55
3 Liabilities 809.22 318.47 0.01 38.30
4 Total equity and liabilities 749.68 354.25 0.01 156.80
5 Total assets 749.68 354.25 0.01 156.80
6 Investments – – – 1.43
7 Turnover 112.53 0.00 – 26.45
8 Profit before taxation 110.90 (0.10) (0.01) 101.35
9 Provision for taxation – 0.21 – 25.38
10 Profit after taxation 110.90 (0.31) (0.01) 75.97
11 Interim dividend - equity – – – –
12 Interim dividend - preference – – – –
13 Proposed dividend - equity – – – –
14 Proposed dividend - preference – – – –
15 % of share holding 51.00 51.00 51.00 51.00

Sr. No. 65 66 67 68 69 70
Sr. Larsen & Larsen &
Larsen & Larsen & Larsen & Larsen &
No. Toubro T&D SA Toubro Heavy
Particulars Toubro (Oman) Toubro Qatar Toubro Saudi Toubro (East
(Proprietary) Engineering
LLC LLC Arabia LLC Asia) Sdn.Bhd.
Limited LLC
Financial year ending on 31-Dec-21 31-Dec-21 31-Dec-21 31-Mar-22 31-Mar-22 31-Dec-21
Currency OMR QAR SAR ZAR MYR OMR
Exchange rate on the last day of
financial year 193.08 20.41 19.80 5.23 18.03 193.08
Date of incorporation/ Date of
Acquisition 29-Jan-94* 31-Mar-04* 22-Jun-99* 06-Sep-10* 13-Jun-96* 07-Apr-08*
1 Share capital (including share
application money pending allotment) 28.13 0.41 28.46 3.92 0.86 109.38
2 Other equity/Reserves and surplus (as
applicable) 461.63 (1.67) 346.72 (0.19) 3.75 (160.20)
3 Liabilities 2129.47 1.40 1898.81 0.39 75.83 107.93
4 Total equity and liabilities 2619.23 0.14 2273.99 4.12 80.44 57.11
5 Total assets 2619.23 0.14 2273.99 4.12 80.44 57.11
6 Investments – – – – – –
7 Turnover 1426.96 (0.32) 2230.13 – 101.45 5.82
8 Profit before taxation 12.35 (0.32) 109.05 0.13 0.29 (11.64)
9 Provision for taxation 0.70 – 21.37 0.00 – –
10 Profit after taxation 11.66 (0.32) 87.67 0.13 0.29 (11.64)
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 65.00 49.00 100.00 72.50 30.00 70.00

Note: * Date of incorporation

616
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Statement containing salient features of the financial statements of

subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.) v crore
Sr. No. 71 72 73 74 75 76
Larsen & L&T
Toubro Kuwait Larsen & Information
Sr. L&T Modular L&T
Larsen Toubro Construction Toubro Technology
No. Particulars Fabrication Hydrocarbon
Arabia LLC General Electromech Services
Yard LLC Saudi Company
Contracting LLC (Shanghai) Co.,
Company WLL Ltd.
Financial year ending on 31-Dec-21 31-Dec-21 31-Dec-21 31-Dec-21 31-Dec-21 31-Dec-21
Currency OMR SAR SAR KWD OMR CNY
Exchange rate on the last day of
financial year 193.08 19.80 19.80 245.75 193.08 11.70
Date of incorporation/ Date of
Acquisition 05-Jul-06* 01-Jul-12* 08-Jul-07* 29-Nov-06* 01-Jan-05 28-Jun-13*
1 Share capital (including share
application money pending allotment) 55.70 19.80 1.98 49.15 5.79 1.26
2 Other equity/Reserves and surplus (as
applicable) 199.55 (286.52) (618.41) (40.28) 31.91 (3.85)
3 Liabilities 215.65 814.51 1668.96 17.41 275.40 11.45
4 Total equity and liabilities 470.90 547.79 1052.53 26.28 313.10 8.86
5 Total assets 470.90 547.79 1052.53 26.28 313.10 8.86
6 Investments – – – – – –
7 Turnover 480.81 463.93 618.54 18.29 720.26 32.19
8 Profit before taxation (36.75) 43.32 3.02 1.79 (14.98) (0.79)
9 Provision for taxation (6.36) 9.72 3.71 – – 1.44
10 Profit after taxation (30.39) 33.59 (0.69) 1.79 (14.98) (2.23)
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 70.00 75.00 100.00 49.00 70.00 74.05

Sr. No. 77 78 79 80 81 82
Larsen
L&T Infotech
Larsen & and Toubro L&T
Sr. Financial Larsen & Larsen &
Toubro Infotech Information
No. Particulars Services Toubro Toubro
Infotech South Africa Technology
Technologies Infotech LLC Infotech GmbH
Canada Limited (Proprietary) Spain SL
Inc.
Limited
Financial year ending on 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22
Currency CAD CAD USD ZAR EURO EURO
Exchange rate on the last day of
financial year 60.49 60.49 75.79 5.23 84.22 84.22
Date of incorporation/ Date of
Acquisition 01-Jan-11 25-Apr-00 21-Jul-09* 25-Jul-12 14-Jun-99* 01-Feb-16*
1 Share capital (including share
application money pending allotment) 151.23 0.00 – 0.21 1.05 0.42
2 Other equity/Reserves and surplus (as
applicable) 166.01 49.90 6.63 17.55 345.21 0.70
3 Liabilities 30.82 47.03 6.98 12.87 140.97 4.71
4 Total equity and liabilities 348.06 96.93 13.61 30.63 487.23 5.83
5 Total assets 348.06 96.93 13.61 30.63 487.23 5.83
6 Investments – – – – 426.70 –
7 Turnover 355.74 350.30 22.25 38.60 168.52 17.89
8 Profit before taxation 149.12 16.41 0.25 7.95 (32.32) 0.22
9 Provision for taxation 39.39 4.38 – 2.31 (0.28) –
10 Profit after taxation 109.73 12.03 0.25 5.64 (32.04) 0.22
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 74.05 74.05 74.05 51.52 74.05 74.05
Note: * Date of incorporation

617
Integrated Annual Report 2021-22 Salient Features of the Financial Statements of Subsidiaries/Associate Companies/Joint Ventures

Statement containing salient features of the financial statements of

subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.) v crore
Sr. No. 83 84 85 86 87 88
Larsen &
Sr.
Toubro Larsen & L&T Infotech S. Syncordis Syncordis
No. Particulars Syncordis S.A.
Infotech Norge Toubro LLC DE R.L. DE C.V. France SARL Limited
AS
Financial year ending on 31-Mar-22 31-Mar-22 31-Dec-21 31-Dec-21 31-Dec-21 31-Dec-21
Currency NOK USD MXN EURO EURO GBP
Exchange rate on the last day of
financial year 8.69 75.79 3.64 84.22 84.22 100.42
Date of incorporation/ Date of
Acquisition 20-Nov-18* 02-Jan-01* 01-Mar-17* 15-Dec-17 15-Dec-17 15-Dec-17
1 Share capital (including share
application money pending allotment) 0.03 0.40 0.00 0.47 0.13 0.01
2 Other equity/Reserves and surplus (as
applicable) 9.30 2.55 2.76 26.45 (8.10) (19.82)
3 Liabilities 32.01 0.06 12.02 112.01 19.92 –
4 Total equity and liabilities 41.34 3.01 14.78 138.93 11.95 (19.81)
5 Total assets 41.34 3.01 14.78 138.93 11.95 (19.81)
6 Investments – – – – – –
7 Turnover 118.18 1.40 50.32 173.82 31.55 44.73
8 Profit before taxation 5.90 0.02 2.82 9.90 3.85 (0.55)
9 Provision for taxation 1.30 0.01 0.90 0.14 0.26 0.05
10 Profit after taxation 4.60 0.01 1.92 9.76 3.59 (0.60)
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 74.05 98.76 74.05 74.05 74.05 74.05

Sr. No. 89 90 91 92 93 94
Sr. Nielsen+Partner Nielsen+Partner
Syncordis PSF Nielsen&Partner
No. Particulars Unternehmensberater Unternehmensberater Nielsen+Partner Nielsen&Partner
S.A. Company
GmbH AG Pte Ltd Pty Ltd
Limited
Financial year ending on 31-Dec-21 31-Jan-22 31-Dec-21 31-Dec-21 31-Dec-21 31-Dec-21
Currency EURO EURO CHF SGD THB AUD
Exchange rate on the last day of
financial year 84.22 3.67 81.46 55.10 2.24 54.04
Date of incorporation/ Date of
Acquisition 15-Dec-17 01-Feb-19 01-Feb-19 01-Feb-19 01-Feb-19 01-Feb-19
1 Share capital (including share
application money pending allotment) 3.37 0.08 0.81 0.55 0.22 0.00
2 Other equity/Reserves and surplus (as
applicable) 0.13 0.48 0.64 32.47 (2.61) (4.82)
3 Liabilities 15.18 0.27 7.47 21.54 4.04 11.32
4 Total equity and liabilities 18.68 0.83 8.92 54.56 1.65 6.50
5 Total assets 18.68 0.83 8.92 54.56 1.65 6.50
6 Investments – – – – – –
7 Turnover 30.39 0.92 26.03 66.27 2.16 7.01
8 Profit before taxation (0.14) (0.06) (1.14) 4.53 (0.78) (2.60)
9 Provision for taxation 0.05 0.00 0.00 0.66 – 0.80
10 Profit after taxation (0.19) (0.06) (1.14) 3.87 (0.78) (3.40)
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 74.05 74.05 74.05 74.05 74.05 74.05

Note: * Date of incorporation

618
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Statement containing salient features of the financial statements of

subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.) v crore
Sr. No. 95 96 97 98 99 100
Sr. Larsen &
Cuelogic
No. Ruletronics Ruletronics Toubro LTI Middle Lymbyc
Particulars Technologies
Limited Systems Inc. Infotech UK East FZ-LLC Solutions Inc.
Inc.
Limited
Financial year ending on 28-Feb-22 31-Dec-21 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22
Currency GBP USD GBP AED USD USD
Exchange rate on the last day of
financial year 100.70 74.34 99.46 20.64 75.79 75.79
Date of incorporation/ Date of
Acquisition 01-Feb-19 01-Feb-19 17-Aug-20* 25-Nov-20* 29-Aug-19 07-Jul-21
1 Share capital (including share
application money pending allotment) 0.00 – 0.01 3.84 0.70 0.01
2 Other equity/Reserves and surplus (as
applicable) (0.00) 1.03 13.74 18.26 (1.15) 0.92
3 Liabilities – 0.06 76.00 293.58 0.45 3.91
4 Total equity and liabilities – 1.09 89.75 315.68 – 4.84
5 Total assets – 1.09 89.75 315.68 – 4.84
6 Investments – – – – – –
7 Turnover 1.83 10.77 336.48 369.36 – 10.79
8 Profit before taxation (0.20) (0.58) 16.89 19.51 (0.00) 0.97
9 Provision for taxation – 0.02 3.32 – – 0.29
10 Profit after taxation (0.20) (0.59) 13.57 19.51 (0.00) 0.68
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 74.05 74.05 74.05 74.05 74.05 74.05

Sr. No. 101 102 103 104 105 106

L&T
Sr. L&T Graphene Graphene Graphene Technology Orchestra
No. Particulars Technology Solutions PTE Solutions SDN. Solutions Services Technology,
Services LLC Ltd. BHD. Taiwan Limited (Shanghai) Co. Inc.
Ltd
Financial year ending on 31-Mar-22 31-Mar-22 31-Mar-22 31-Dec-21 31-Dec-21 31-Mar-22
Currency USD SGD MYR TWD CNY USD
Exchange rate on the last day of
financial year 75.79 55.97 18.03 2.70 11.70 75.79
Date of incorporation/ Date of
Acquisition 26-Jun-14* 15-Oct-18 15-Oct-18 15-Oct-18 06-Aug-19* 02-Oct-20
1 Share capital (including share
application money pending allotment) 197.14 0.30 0.17 1.34 3.85 51.29
2 Other equity/Reserves and surplus (as
applicable) 112.57 0.23 (0.04) (1.09) (1.06) (36.10)
3 Liabilities 176.49 2.16 0.04 0.55 2.73 65.77
4 Total equity and liabilities 486.20 2.69 0.17 0.80 5.52 80.96
5 Total assets 486.20 2.69 0.17 0.80 5.52 80.96
6 Investments 101.61 – – – – –
7 Turnover 665.58 0.58 – – 3.07 167.66
8 Profit before taxation 66.19 (0.13) (0.02) (0.06) 1.23 (6.32)
9 Provision for taxation 22.74 – – – 0.01 0.02
10 Profit after taxation 43.46 (0.13) (0.02) (0.06) 1.22 (6.34)
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 73.90 73.90 73.90 73.90 73.90 73.90
Note: * Date of incorporation

619
Integrated Annual Report 2021-22 Salient Features of the Financial Statements of Subsidiaries/Associate Companies/Joint Ventures

Statement containing salient features of the financial statements of

subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.) v crore

Sr. No. 107 108 109 110

Sr. L&T L&T Valves Larsen &
No. Technology Arabia L&T Valves Toubro
Particulars
Services Manufacturing USA LLC International
(Canada) Ltd LLC FZE
Financial year ending on 31-Mar-22 31-Mar-22 31-Mar-22 31-Mar-22
Currency CAD SAR USD USD
Exchange rate on the last day of financial year 60.49 20.20 75.79 75.79
Date of incorporation/ Date of Acquisition 20-Aug-19* 30-May-19* 28-May-19* 25-Sep-01*
1 Share capital (including share application money pending allotment) 0.04 5.05 3.79 129.61
2 Other equity/Reserves and surplus (as applicable) (0.92) (7.12) (1.61) 273.43
3 Liabilities 7.91 11.68 21.17 708.79
4 Total equity and liabilities 7.03 9.61 23.35 1111.83
5 Total assets 7.03 9.61 23.35 1111.83
6 Investments – – – 84.41
7 Turnover 6.46 1.36 30.44 146.52
8 Profit before taxation (1.01) (4.17) 1.07 44.13
9 Provision for taxation – (0.83) 0.25 1.78
10 Profit after taxation (1.01) (3.33) 0.82 42.35
11 Interim dividend - equity – – – –
12 Interim dividend - preference – – – –
13 Proposed dividend - equity – – – –
14 Proposed dividend - preference – – – –
15 % of share holding 73.90 100.00 100.00 100.00

Sr. No. 111 112 113

Mindtree
Sr. L&T Global Bluefin
Software
No. Particulars Holdings Solutions Sdn
(Shanghai) Co.
Limited Bhd
Ltd
Financial year ending on 31-Mar-22 31-Mar-22 31-Mar-22
Currency USD CNY MYR
Exchange rate on the last day of financial year 75.79 11.96 18.03
Date of incorporation/ Date of Acquisition 24-Feb-16* 02-Jul-19 02-Jul-19
1 Share capital (including share application money pending allotment) 60.63 1.36 0.17
2 Other equity/Reserves and surplus (as applicable) 540.91 0.46 –
3 Liabilities 0.04 0.15 0.17
4 Total equity and liabilities 601.58 1.97 0.34
5 Total assets 601.58 1.97 0.34
6 Investments 600.82 – –
7 Turnover – 0.47 –
8 Profit before taxation 0.09 0.09 –
9 Provision for taxation – – –
10 Profit after taxation 0.09 0.09 –
11 Interim dividend - equity – – –
12 Interim dividend - preference – – –
13 Proposed dividend - equity – – –
14 Proposed dividend - preference – – –
15 % of share holding 100.00 60.99 60.99

Note: * Date of incorporation

620
Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

Statement containing salient features of the financial statements of

subsidiaries/associate companies/joint ventures
Part A: “Subsidiaries” [as per Section 2(87) of the Companies Act, 2013] (contd.)
Notes:
A) Names of subsidiaries which are yet to commence operations:
a) PT Larsen & Toubro Hydrocarbon Engineering Indonesia

b) L&T Hydrocarbon Caspian LLC

B) Names of subsidiaries which have been merged/sold/dissolved/struck-off.

(1) Merged:
a) Ruletronics Systems Private Limited (Merged with Larsen & Toubro Infotech Limited)

b) Syncordis Software Services India Private Limited (Merged with Larsen & Toubro Infotech Limited)

c) Esencia Technologies Inc. (Merged with L&T Technology Services LLC)

d) L&T Hydrocarbon Engineering Limited (Merged with Larsen & Toubro Limited)

(2) Sold:
a) L&T Vision Ventures Limited

b) L&T Uttaranchal Hydropower Limited

(3) Liquidated/Dissolved/struck-off/ceased:
a) Thalest Limited

b) L&T Hydrocarbon International FZE

c) L&T Infra Contractors Private Limited

d) L&T Halol-Shamlaji Tollway Limited

621
Integrated Annual Report 2021-22 Salient Features of the Financial Statements of Subsidiaries/Associate Companies/Joint Ventures

Statement containing salient features of the financial statements of

subsidiaries/associate companies/joint ventures
Part B: ”Associates/Joint ventures”
Sr. No. 1 2 3 4 5 6 7 8
International Larsen & Magtorq Indiran
Gujarat
Sr. Seaports Toubro Magtorq Engineering Engineering
L&T-Chiyoda L&T Camp Leather
No. Name of associates/joint ventures (Haldia) Qatar & HBK Private Solutions Projects and
Limited Facilities LLC Industries
Private Contracting Limited Private Systems Kish
Limited
Limited [1] Co. WLL Limited PJSC
1 Latest audited balance sheet date 31-Mar-22 31-Mar-21 31-Dec-21 31-Dec-21 31-Mar-22 31-Mar-22 Refer Note 2
2 Date on which the associate or joint venture
was associated or acquired 26-Oct-94 11-Feb-05 13-Sep-07 28-Jul-04 02-Aug-10 02-Aug-10 31-Oct-09 27-Jun-91
3 Shares of associate/joint ventures held by the
company at the year end
Number 45,00,000 98,30,000 2,450 100 9,000 22,000 875 7,35,000
Amount of investment in associates/joint
venture (R crore) 4.50 9.83 4.96 0.18 4.42 0.22 0.39 –
Total share capital (R crore) 9.00 44.06 10.12 0.41 0.21 0.24 0.78 –
Reserves closing 87.35 44.73 (3.75) (8.09) 12.72 1.10 (0.85) –
Total No of shares 90,00,000 4,40,58,020 5,000 200 21,003 24,000 1,750 Refer Note 3
Extent of holding % (Effective) 50.00% 14.25% 49.00% 50.00% 42.85% 39.28% 50.00% 50.00%
4 Description of how there is significant influence Refer Note 1
5 Reason why the associate/joint venture is not
consolidated Refer Note 3
6 Net worth attributable to shareholding as per
latest audited balance sheet (R crore) 48.18 12.65 3.12 (3.84) 5.54 0.53 (0.04) –
7 Profit/(Loss) for the year (R crore)
Considered in consolidation (12.79) 15.77 (3.34) – 1.80 0.10 (0.02) –
Not considered in consolidation – – – – – – –
[1]
The company is associate of a subsidiary company under Companies Act, 2013.
Notes:
1. Significant influence is demonstrated by holding 20% or more of the total voting power, or control of or participation in business decisions under an agreement of
the investee.
2. The Incorporated joint venture is not required to be audited as per regulatory laws in Iran. Hence the management certified accounts have been considered for
consolidation.
3. The associate company is under liquidation process and investment is fully provided in the accounts.

S. N. SUBRAHMANYAN
Chief Executive Officer & Managing Director
(DIN 02255382)

R. SHANKAR RAMAN M. M. CHITALE

Whole-time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 00101004)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939
Mumbai, May 12, 2022

622
 Fold here

LARSEN & TOUBRO LIMITED

CIN : L99999MH1946PLC004768
Regd. Office : L&T House, Ballard Estate, Mumbai 400 001.
Tel. No.: (022) 6752 5656, Fax No.: (022) 6752 5858
Email: IGRC@Larsentoubro.com, Website: www.larsentoubro.com

Dear Shareholder, Date: 11th July 2022

We are privileged to have you as our shareholder. It has been our constant endeavour to improve the services to our Investors
and in this pursuit, we are once again sending you this Feedback Form, which is a self addressed prepaid Inland letter. We

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request you to kindly spare some time and return the same to us duly completed. We look forward to your feedback/valuable
suggestions.
Thanking you,
Yours faithfully,
For Larsen & Toubro Limited
Sivaram Nair A
Company Secretary
M. No. F3939

SHAREHOLDER’S FEEDBACK FORM

Name and address of the shareholder

Phone No: (with STD code)

E-maii ID:

Folio No./DP ID & Client ID

Shareholders Satisfaction Survey Questionnaire

(please 3 the appropriate box)
A. Do you perceive the Company as creating shareholder value in the:
(i) Short Term Yes  No 
(ii) Long Term or Yes  No 
(iii) Both Yes  No 
B. Are you satisfied with the growth strategy of the Company?
Yes       No      Not aware 
Excellent Good Poor* Not
experienced
C. Please rate the contents and quality of Integrated Annual Report
D. Please rate the contents and quality of the website of the Company
E. Arrangements related to last year E-AGM
F. Quality and accuracy of response to your queries and complaints:
- by Company
- by Registrar
G. Timeliness of response form
- the Company
- the Registrar
H. Please rate the hospitality and efficiency of the persons attending to you when
you interact with
- Investors Relation Cell
- Office of Registrars
I. Overall quality of service provided by
- the Company
- the Registrar
* Kindly let us know your experience in space provided overleaf
J. Do you have any grievance which has not been redressed   Yes   No

Signature
 Fold here

BUSINESS REPLY LETTER

Postage No Postage
will be stamp
paid by necessary
addresssee if posted in
India

B. R. PERMIT No.: MBI GPO - 0049

Mumbai G.P.O.
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Mumbai - 400 001.

Larsen & Toubro Limited

Secretarial Department
L&T House, Ballard Estate,
Mumbai - 400 001.

Second Fold

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* In case your response to any question overleaf is “Poor”, kindly share your experience and let us know the reason/
instances to enable us to investigate the matter.

In case of any queries, kindly contact our Registrar:

KFin Technologies Limited
Unit: Larsen & Toubro Limited
Selenium Tower B, Plot number 31 & 32, Financial District Gachibowli, Nanakramguda, Hyderabad, Telangana - 500 032
Tel : (040) 6716 2222 • Toll free number: 1-800-3094-001 • Email: einward.ris@kfintech.com
AWARDS & RECOGNITION

Every year, L&T and its people receive a number of national and international awards that
acknowledge its varied accomplishments. Presented by the media, industry associations,
independent bodies and academia, they honour the Company’s contribution in various spheres
of business, technology, financial performance, growth and environmental protection.

For details of recent awards, please visit www.Larsentoubro.com