VISION

L&T shall be a professionally-managed Indian

multinational, committed to total customer
satisfaction and enhancing shareholder value.

L&T-ites shall be an innovative, entrepreneurial

and empowered team constantly creating value
and attaining global benchmarks.

L&T shall foster a culture of caring, trust and

continuous learning while meeting expectations
of employees, stakeholders and society.
 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

CHAIRMAN AND
MANAGING DIRECTOR’S
STATEMENT
S. N. Subrahmanyan

Dear Shareholders
India stands tall as an oasis of opportunity amidst global turmoil and supply chain disruptions. The Government’s
continuous efforts towards strengthening the domestic economy through enhanced annual outlays for capital
spending, policy shifts towards improving the ease of doing business and creation of a world-class digital
infrastructure and payments platform have all contributed towards fuelling an annual GDP growth rate of minimum
7% for the last three years, and over 8% in the year under review. The motif of ‘Aatmanirbharta’ (self-reliance) pursued
through innovative schemes like the Production Linked Incentive (PLI) scheme to provide an impetus to manufacturing,
the Start-Up India scheme to create an ecosystem for entrepreneurship in digital and technology ventures and the
creation of the National Infrastructure Pipeline have set a strong foundation to propel the realisation of a Viksit Bharat
with a USD 35 trillion economy size by 2047.
During the year under review, your Company has benefitted from all the positive policy interventions and that is
evident from the Company’s stellar financial performance.

Group Businesses the 1.8 GWp Sudair Solar PV plant in 3. Services (IT, Engineering, Digital,
Saudi Arabia, a gas compression facility and Financial):
Your Company’s journey has been
in Algeria, contributed to blue hydrogen Your Company’s listed arms continue to
one of resilience, innovation, and
infrastructure in Rotterdam, Netherlands play pivotal roles, creating shareholder
unwavering commitment to excellence.
among various other projects. value:
The diverse business portfolio comprises
of: 2. Hi-Tech Manufacturing (Heavy LTIMindtree: India’s 6th largest IT player
1. EPC Projects (Construction & Engineering and Precision is a beacon of IT innovation, bridging
Energy): Engineering & Systems): physical and digital realms.
L&T’s expertise in executing large- Your Company’s Heavy Engineering L&T Technology Services (LTTS):
scale EPC projects is unparalleled. division remains a global leader, India’s leading Engineering and
Your Company’s indelible stamp of supplying bespoke industrial equipment. Technology Services company provides
excellence graces iconic bridges, L&T is at the forefront of adapting cutting-edge ER&D solutions globally.
hydrocarbon facilities, large solar fields, to Industry 4.0 techniques, ensuring
and infrastructure across India and efficiency and quality. L&T Finance (LTF): Empowers millions
beyond. of lives with diverse financial products in
The Precision Engineering & Systems the retail sector.
Notable recent achievements include
the Mumbai Trans Harbour Link business focusses on indigenous Your Company’s digital ventures,
(MTHL), Mumbai Coastal Road Phase design and has proudly contributed include L&T-SuFin (an integrated B2B
1, and Shree Ram Mandir Ayodhya. to India’s lunar programme through marketplace), L&T Cloudfiniti (end-
Internationally, your Company delivered Chandrayaan-3. to-end data center and cloud services),

01
 CMD’s
Statement

L&T Semiconductor Technologies international order wins in Hydrocarbon also concluded monetisation of a
(focussed on fabless chip design), and Infrastructure businesses. A large, commercial property. Going forward,
and L&T Edutech (bridging industry- growing and diversified Order Book of a combination of improved operations,
academia skills gaps), showcase your ¢ 4,75,809 crore as on March 31, 2024, capital restructuring, support from the
Company’s adaptability and foresight. with a growth of 20% over the previous State Government and Transit Oriented
year, provides clear revenue visibility in Development (TOD) monetisation will
4. Other Businesses:
the medium term. turn the Metro asset value accretive.
L&T Realty: Crafts integrated spaces,
residential complexes, and commercial Revenues clocked in at ¢ 2,21,113 In FY 2023-24, your Company
hubs. More than 50 million sq.ft. crore, while Profit After Tax reached outperformed the Nifty 50 growth
of properties are currently under ¢ 13,059 crore, registering a 21% index, achieving a stupendous growth
development. Your Company’s accolades and 25% growth respectively. of 77% compared to the index’s 29%.
such as ‘Best Realty Brand 2024’, ‘Iconic A combination of improved productivity
Developer for the year 2023-24’ affirm and reduced capital intensity, including It gives me immense pleasure to
its commitment to quality. return of capital to the shareholders inform you that the Board of Directors
during the year in the form of your of the Company has recommended
Construction and Mining Machinery: Company’s first Share Buyback a final dividend of ¢ 28/- per share
Your Company’s in-house Product programme, has resulted in improved for FY 2023-24, in addition to the
Development Centre drives cost- return ratios as well. special dividend of ¢ 6/- per share paid
effective solutions, with over 40,000 during the year, thus making the total
active machines in the market. Your Company continues to focus dividend ¢ 34/- per share.
on shareholder value creation by
Others: A global leader in tyre curing divesting non-core assets, capturing
machinery, your Company is the #1 cost efficiencies, and leveraging Tech-tonic Shifts
Off-the-Road tyre curing machinery technology for productivity gains.
manufacturer in the world. L&T’s valves A strategically diversified business Your Company had embarked on a
operate across 61 countries, which portfolio, geographical diversification, a journey to leverage technology for
is a sheer testament to the product healthy balance sheet and strong order making progress which is sustainable,
reliability. book are definite markers to long-term well ahead of its global peers. The
L&T’s legacy continues to shape value creation. journey which began long back with
industries worldwide. Together, your exploring how manual activities in the
In line with its stated strategy to grow
Company continues to build a stronger various businesses could get digitalised,
the core and exit from concessions, your
L&T—one that transcends boundaries ultimately paid rich dividends during
Company
and leaves a lasting mark on generations the COVID pandemic. As India’s leading
is pleased
to follow. infrastructure player, L&T was one of
to inform
the first to realise the importance of
Group Performance Review you that on
digitalisation and began its digital
April 10,
This year, your Company crossed acceleration journey as early as
2024, it has
a historic milestone: annual Group 2016. The proactive move to invest in
successfully concluded the divestment
Order Inflow digital technology and in Industrial
of its 51% stake in L&T Infrastructure
surpassed Internet of Things (IIoT) to automate
Development Projects Limited, a joint
¢ 3 lakh crore, the manufacturing processes paid off
venture having multiple toll road
and registered when remote working became the
concessions and a power transmission
an impressive norm during the pandemic-induced
line. For Hyderabad Metro, in addition
31% growth lockdowns. Thus, when it comes to
to receiving financial assistance
year-on-year. digital initiatives, your Company has
from the Government of Telangana
This was achieved on the back of major consistently been a trend-setter and has
during the year, your Company has
constantly led the path in adapting to
paradigm shifts.

The qualitative as well as quantitative

benefits of digitalisation are now
visible. Project execution has become
faster, safer, cleaner, more accurate,
less polluting, economical, and most
importantly, the use of technology has

02 Integrated Annual Report 2023-24

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

shaped a more sustainable growth path RFID for material tracking. CCTV-
for your Company. enabled image and video analytics
are constantly helping to track raw
Digital Governance - Today, your materials at project sites and assess
Company leverages a vast array of worker productivity and identify their
technologies across its various verticals, training needs.
including AI, ML, VR/AR, Cloud, Big
Data & Analytics, Drones, GPS, Hi-tech Manufacturing - Your
RFID & QR Codes, LiDAR, BIM, Company’s Precision Engineering &
IoT, 3D printing. Adoption of more Systems business has been integral to
frontier technologies like advanced the development of India’s aerospace
sensors, embedded software and industry right from the beginning
robotics is in progress. Your Company and has been a trusted partner
has digitally connected over 15,000 of ISRO for over five decades.
assets across its global projects and During the year under review, your
manufacturing bases to a central IoT Company played pivotal roles in
platform. This generates a wealth the successful soft-landing of
of data, which is being leveraged by Chandrayaan-3’s Vikram Lander near
advanced analytics to optimise asset the south pole of the Moon and in
utilisation and resource planning, the successful take-off of Aditya
L-1, India’s first solar mission. In both L&T-SuFin: Your Company has created
ensuring maximum efficiency.
missions, your Company manufactured a digital marketplace, L&T-SuFin, to
mission-critical launch segments, enable e-commerce for MSMEs involved
antennae, radars and tracking systems, in construction and industrial products,
and even had its team stationed at and also provides financial and logistical
ISRO’s Sriharikota launchpad for systems support. It has onboarded more than
integration. 42,000 sellers with a catalogue of more
than 5 lakh Stock Keeping Units (SKUs)
For both Projects and Manufacturing,
in 49 categories and has crossed a
the creation of digital twins has
Gross Merchandise Value (GMV) of over
Projects - Under project execution, accelerated the delivery process by
substantially crunching timelines for ¢ 2,700 crore since inception.
technologies like LiDAR and drone-
based photometry have substantially designing, modelling and testing, L&T EduTech: To bridge the skill gap,
improved the planning accuracy (as thereby enhancing quality and your Company has developed L&T
evident in projects like the creation of efficiency, and making the work EduTech in collaboration with education
a 4.6 km tunnel under Tungareshwar environment safer. institutes, corporations, channel
Wildlife Sanctuary as part of the Surya The Central Eye - With a 24x7 partners and government agencies.
Water Supply Project in Maharashtra monitoring system in place, real-time Aimed at higher education students
and for the aerial survey of a total of visibility of all the data on a one-stop and working professionals, this platform
1 lakh hectares of cultivable command dashboard allows the management to provides high-quality hybrid education
area under the Parwati Micro Lift take instant reviews of the progress of and facilitates skill upgradation in niche
Irrigation Project in Madhya Pradesh). core engineering and IT domains. More
work anywhere within the L&T universe
During the year under review, L&T than 4.2 lakh campus recruitments
and make timely and objective data-
Construction made news by completing have been carried out, and over
driven decisions.
in just 45 days, India’s first 3D 66,000 students and faculty members
concrete printed post office building Immersive experience in the form of have been trained, along with 16,000
in Bengaluru, Karnataka. While the simulated walk-throughs is also allowing working professionals on the platform,
technology has been approved by the L&T Realty to convert more potential as on March 2024.
Building Materials and Technology customers into actual ones.
Promotion Council (BMTPC), the Taking note of the evolving trends in
structural design of the post office has Keeping in mind the requirements
a digital world and its ramifications,
been validated by IIT Madras. Your of a digital future, your Company
your Company is also incubating and
Company built the Ayodhya Ram Temple has created platforms to promote
scaling up new-age businesses like
in Uttar Pradesh with utmost fidelity e-commerce solutions in two areas
data centers and semiconductor chip
to the intricate design, using advanced important for Viksit Bharat.
design.

03
 CMD’s
Statement

To sum up, with all the thought Its IT arm, LTIMindtree launched certified.
leadership that your Company has Canvas.ai, an enterprise-ready AI Through
demonstrated so far in delivering global platform guaranteeing a 40-50% their design,
solutions by leveraging technology, it reduction in app modernisation and construction
is essentially a technology company cloud migration efforts. By jumpstarting and
– shaped, driven, and powered by GenAI capabilities for customers, operations,
technology, with engineering at its Canvas.ai is poised to disrupt the Green
core. industry. Buildings help reduce carbon emissions,
energy and waste, and also conserve
Tech-celerating Sustainable Worldover, the importance of embracing
water. In FY 2023-24, your Company
Progress sustainable practices gained traction.
created Green Buildings infrastructure of
How countries and organisations gear
The year witnessed a dual disruption. up to make sustainability central to their 14.8 million sq.ft. (and cumulatively 42
Generative Artificial Intelligence growth models in order to confront million sq.ft. over last five years).
(GenAI) emerged as a game-changer, climate change is bound to have an
and the severity of climate change Clean Mobility - Your Company is
impact on global macroeconomics. an active participant in clean mobility
became undeniable. All of your
Company’s AI and GenAI initiatives Recognising the environmental through execution of mass transit
leverage the strength of good data. impact of its actions, your Company’s systems offering faster, affordable
From co-pilot enabling efficient note- commitment to responsible corporate and greener modes of transport. In
taking in meetings, to using GenAI governance extends beyond shareholder this cause, your Company completed
in tendering, generating technical value creation, prioritising the well-being electrification of more than 3,400 track
queries, identifying contractual risks, of the world and the communities it km in FY 2023-24.
and creating centralised alerts for every serves.
Clean Energy - Your Company is
project site globally, your Company has in the business of building Clean
By championing Technology, Green
been adapting to the GenAI wave in an
practices, and Corporate Social Energy projects supporting the global
innovative way.
Responsibility (CSR), your Company megatrend towards low/no carbon
Leveraging AI for Tomorrow – Your is well-positioned to navigate this energy generation. This includes
Company recognises the power of evolving landscape and contribute renewable energy plants, primarily solar
AI across the entire project lifecycle, to a sustainable future. and hydro, as well as nuclear power
from contract management to design plants.
to execution and operation and Going Green
The Renewables business group offers
maintenance. To fuel this innovation,
comprehensive EPC services globally
Your Company has launched a Building of climate-friendly infrastructure
for GW-scale Solar PV, Energy Storage,
collaborative platform. This initiative is likely to be the next big global
Microgrid, and Hybrid Renewable
connects aspiring data scientists trend, and that can open up massive
Projects. This expertise allows your
with domain experts and technology possibilities for your Company globally.
Company to handle diverse module
champions. Together, this team will Aligned to its sustainability vision
technologies, mounting structures, and
develop cutting-edge future-proof ‘For A Better World’, your Company
storage types, a capability offered by
solutions. has developed strong capability in
very few players.
executing projects for its customers
Digitised Recruitment – Technology
in Clean Energy, Clean Mobility, Solar Power - 5.8 GWp constructed
is also playing an important role in
Water and Sanitation, Green Infra globally, with an additional 12 GWp
onboarding of workers. Your Company
and other areas. Collectively termed as under
has created a digital skill inventory
‘Green Business’, such projects help in execution. In
tool named Worker Induction & Skill
lowering carbon emissions, improving FY 2023-24,
Assessment (WISA), where around
water availability, recycling and reuse, your Company
5 million workers have been
scaling up energy efficiency, reducing commissioned
categorised as per 300 plus skill sets of
air pollution, and enhancing resource 2.2 GWp of
the National Skill Development Council
conservation. solar capacity.
(NSDC). WISA helps managers track the
location of each worker, gauge their Green Buildings - Your Company is Hydel Power - 3.5 GW constructed,
daily productivity, and suggest training in the business of constructing green with 6.2 GW under execution (including
to upgrade their skills. buildings which are LEED/IGBC/GRIHA- storage).

04 Integrated Annual Report 2023-24

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

Nuclear Power - 6.2 GW constructed, globally renowned energy sector experts Your Company believes in the following
with 6.8 GW under execution. to provide expertise and strategic maxim – ‘We have inherited this earth
guidance on technology trends in green from our ancestors, we cannot afford
Your Company contributes to the
energy, analyse the evolving global to borrow it from our children too’. It
mitigation of carbon footprint through
policy framework in this space, evaluate is a collective responsibility to leave a
the production of equipment for
emerging business models, and advise habitable planet for future generations,
renewable diesel and bio-fuel and
on possible collaborations. and thus we must refrain from
through emission control technologies
irresponsible use of natural resources.
such as flue gas desulphurisation, which L&T Energy Green Tech, a wholly
Your Company is not only translating
removes sulphur dioxide (SO2) from the owned subsidiary of your Company,
this belief into action for itself, it is also
exhaust flue gases of fossil fuel-based has a strategic vision to develop Green
helping others to do the same.
power plants. Hydrogen and Green Ammonia plants
in India, catering to both domestic
Conscious Execution - Your Company Social Initiatives &
consumption and international markets.
strives to ensure that during project Community Service
For domestic operations, your Company
execution stage too, environmentally
has entered into a Joint Venture (JV) Your Company is a firm believer in
sustainable measures are undertaken,
agreement with Indian Oil Corporation fostering inclusive growth and in
which are in sync with local ecological
Ltd. and ReNew, a move aimed at building long term relationships with all
conditions.
spearheading India’s growing Green stakeholders based on mutual trust and
Taking care of Ecology - The actions Hydrogen sector. respect. Thus,
span from translocation of coral patches your Company
Your Company created a major
and development of marine biodiversity identifies itself
benchmark for ‘Make in India’ during
plan in Mumbai Costal Road Project to in spirit and
the year under review. It commissioned
preservation and planting of mangroves deed with the
its first indigenously manufactured
at Mumbai Ahmedabad High Speed Rail members of
1 MW Hydrogen Electrolyser
Package. the community wherever it operates.
(expandable to 2 MW) at its Green
Your Company has undertaken CSR
Selection of Materials - Your Hydrogen Plant. L&T Electrolysers plans
initiatives, which have benefitted more
Company promotes the use of low- to leverage its upcoming giga-scale
than 16 lakh people.
carbon materials such as fly ash and facility in Hazira to meet the growing
granular blast furnace slag to blend demand for green hydrogen, maximise During the year under review, your
with cement at its construction sites. product localisation through an Company has carried forward that
This results in concrete with lesser enhanced local supply chain, and serve tradition, and focussed on initiatives
embodied carbon, which is good for export markets as well. pertaining to health, education, skill
the environment and a great way for development and water & sanitation.
Towards the goal of becoming Carbon
safe disposal of fly ash. Share of fly
Neutral by 2040, your Company has
ash and granular blast furnace slag in
reduced energy intensity by 16% and
cementitious materials stood at 14% in
emission intensity by 12%, during
FY 2023-24.
the year under review. This was
achieved mainly by diesel consumption
optimisation through digitalisation,
switching from diesel-powered
equipment to grid electricity or low
carbon fuel. In addition, your Company
is working to increase renewable energy
sourcing. Options like on-site ground
mounted Solar and Renewable Open
Overall, the Green Business Access are being implemented across
contributed 50% to the revenue of manufacturing and office locations.
the Company on standalone basis in
These initiatives underscore your
FY 2023-24.
Company’s commitment to driving
Green Energy Business - During the sustainable development and
year under review, your Company has facilitating the global transition
constituted a Green Energy Council with towards clean energy solutions.

05
 CMD’s
Statement

Your Company planted 4 million firmly committed to protecting lives At the Group level, apart from the 62%
saplings globally. Your Company’s of every employee both on-site and in domestic share in the total Order Book,
Integrated Community Development office as every life matters. the Middle East is the other significant
Programme (ICDP), initiated 10 years source of orders, accounting for 35%,
With safety-first approach, the image
ago, has helped in building resilience while the rest of the world accounts for
and video analytics have enabled your
in rural communities, especially in the balance 3%.
Company to maintain a strict vigil
remote water-scarce locations of
to spot violations of safety protocols In revenue terms at the Group level,
Maharashtra, Tamil Nadu, and
and instant alerts are generated to apart from the share of 57% generated
Rajasthan, covering an area of
inform the concerned site managers. from India (mostly from EPC), USA
~43,091 hectares (the size of over
Use of robotics has helped in making and Europe jointly account for 17% of
57,000 soccer fields). Furthermore,
previously hazardous operations the revenues (generated mostly from
a total of 10,974 youth completed
accident-free. Use of VR, AR and Mixed technology businesses), the Middle East
various courses at the nine
Reality HoloLens has provided an edge accounts for 22% (generated from EPC),
Construction Skill Training Institutes
in training your Company’s manpower and the balance 4% is generated from
(CSTIs) and the five sub-centres.
to handle specialised equipment and the rest of the world.
Over the years, communities have seen
in also getting accustomed to working
tangible and durable benefits from your As part of its due diligence exercise,
in unfamiliar terrains and challenging
Company’s presence. Change cannot your Company carries out extensive
situations.
happen overnight, but with every step, analysis of sovereign and client financial
your Company gets closer to the social Your Company is also making innovative strength at the time of bidding for
goals it has set for itself. use of technology to improve safety projects. As per the MEED (Middle East
practices. Your Company has groomed Economic Digest) February 2024 report,
Governance & Ethics more than 500 safety champions L&T was the top contractor in terms
Your Company believes responsible who have benefitted from digital of projects awarded in Saudi Arabia
corporate governance is the foundation training on safety protocol and then in 2023.
for long-term success. Committed spread the lessons learnt among their
to the highest ethical standards in all peer and linguistic groups. People Power
business dealings, fostering transparency Your Company is what it is today
International Business
and accountability throughout the because of its people. Your
organisation, your Company’s robust In today’s VUCA (Volatility, Uncertainty,
Company’s eight decades of success
governance framework ensures Complexity and Ambiguity) world,
is attributable to the dedication,
compliance with regulations and global the key to mitigate geopolitical risk is
hard work and accomplishments of
best practices. through geographical diversification.
every member of Team L&T. Your
While India, the Middle East, Africa
Workplace Safety Company’s people policies revolve
and ASEAN are the active markets
around the core principles
Safety remains a paramount concern for for your Company’s EPC businesses,
of onboarding the
the leadership team. This commitment Hi-Tech Manufacturing is a healthy
right talent, providing
is reflected in your Company’s mix of local and international
them with a conducive
‘Mission Zero Harm’ principle and exposure. Financial Services, on the
work environment,
the ‘L.I.F.E.’ (Live Injury-Free Everyday) other hand, is largely domestic on
nurturing talent, i.e.
Framework. Leading by example to the retail side, whereas IT Services and
offering opportunities
ensure a safe working environment Technology Services are predominantly
for learning and self-
for all employees and stakeholders, international,
development, empowering
allocating significant resources and with Americas
them by encouraging
assigning clear responsibilities is a and Europe
collaboration and
top priority. Your Company takes full being the
innovation, recognising,
responsibility for this and has thoroughly primary
rewarding, and celebrating
investigated all incidents. Enhanced geographies.
achievements, facilitating career
supervision, more frequent safety This policy
transition and mobility, as well as
briefings, expert consultations for high- of aiming
promoting gender diversity. For the
risk projects, and stronger engagement for wider geographical dispersal aids
second consecutive year, your
with subcontractors are some of broad-basing your Company’s portfolio,
Company has been recognised as a
the initiatives that has been further continues to yield positive results, and
Great Place to Work (GPTW).
strengthened. Your Company remains de-risks exposure to a particular region.

06 Integrated Annual Report 2023-24

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

Your Company’s commitment to excel Customer Centricity My special thanks to all our shareholders
extends beyond traditional training Your Company’s relentless efforts for the trust you have reposed in us. You
methods. Your Company offers a to stay ahead of the competition by remain an invaluable pillar of strength,
multitude of online digital platforms investing in frontier technologies and and I look forward to your continued
with rich content on self-improvement delivering excellent governance are support in our journey towards
courses, accessible to all employees. ultimately aimed at enhanced customer achieving higher levels of excellence.
During the year under review, a delight through improved performance, For nearly eight decades, your
staggering 36 lakh learning hours were better solutions and completing Company has served as a cornerstone
clocked by nearly 42,000 employees on projects on time and within budget. of India’s infrastructure and industrial
these various platforms – both online The unwavering commitment to the development. The unwavering
and offline. customers remains your Company’s commitment to ‘Building India’ is deeply
Your Company’s transformation to a guiding force as it is well aware that embedded in the DNA of every L&T-ite.
technology powerhouse and creation there can be no better advertisement Your Company is not merely present
of a team of digital natives has been of one’s capabilities than a satisfied and in core sectors of the economy; it is
possible because of the employees’ delighted customer. consciously structured to anticipate and
willingness to embrace change, and the Conclusion swiftly respond to the nation’s evolving
emergence of numerous young digital needs.
Among the transformational shifts
champions deserves a special mention in
happening throughout the world, Your Company takes immense pride
this transformation.
your Company is well-positioned to in being the architect behind many of
Diversity, Equity & Inclusion ride the waves and reap the rewards. India’s most iconic landmarks and critical
Its proven expertise in building world- infrastructure projects. From grand
Your Company’s transformation into class infrastructure and EPC projects
a tech-driven conglomerate has a structures like the Statue of Unity to the
across multiple sectors, readiness to intricate engineering marvels powering
direct bearing on its Diversity, Equity participate in the energy transition
& Inclusion (DEI) quotient. There is India’s space missions, your Company
opportunities, proven capabilities in consistently strives to deliver projects
empirical evidence on how women Hi-Tech Manufacturing and Services, and
participation in both engineering and that not only serve a purpose but also
its emphasis on leveraging technology inspire national pride. Your Company’s
non-engineering roles has translated to deliver top-quality output, place
into improvements in efficiency across commitment extends beyond brick
your Company in a sweet spot to take and mortar, fostering innovation
operations. With several exclusive advantage of the opportunities as
career-assisting schemes for females and and technological advancements,
they unfold. Further, all the businesses continuously pushing boundaries to
installation of women-friendly facilities are aligned with the larger goals of
in the offices, your Company is on ensure India remains at the forefront of
transitioning into a cleaner, greener global progress.
course to achieve its Lakshya target of economy.
women employees comprising 10% of This dedication to excellence has earned
the total employee strength by 2026. I would like to thank our employees, our your Company the reputation as a
customers, supply chain partners, and Nation-builder, instrumental in shaping
During the year under review, the Government for their contributions,
your Company has hired 1,766 the landscape of a new, modern
directly and indirectly, to our growth. I and aspiring India. L&T BUILDS THE
female employees. Female also thank my fellow Board members for
employees comprised 8.1% of your THINGS THAT MAKES INDIA PROUD.
their invaluable support in guiding the
Company’s employee strength as on Company through volatile times when
March 31, 2024. there are multiple variables at play. Jai Hind!

07
CONTENTS
01 CORPORATE OVERVIEW
09 Company Information
11 Executive Committee (Ecom)
12 Group Business Structure
14 L&T Nationwide Network & Global Presence
16 10 year highlights

18 MANAGEMENT DISCUSSION & ANALYSIS

128 INTEGRATED REPORT

242 STATUTORY REPORTS

242 Business Responsibility & Sustainability Reporting (BRSR)
295 AGM Notice
318 Board Report

380 FINANCIAL STATEMENTS

381 Standalone Financial Statements
511 Consolidated Financial Statements
648 Information Regarding Subsidiary Companies

SHAREHOLDER’S SATISFACTION
661 SURVEY FORM - 2023-24

08 Integrated Annual Report 2023-24

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

COMPANY INFORMATION
MR. A. M. NAIK
Chairman Emeritus

BOARD OF DIRECTORS (AS ON MAY 8, 2024)

MR. S. N. SUBRAHMANYAN MR. ADIL ZAINULBHAI

Chairman & Managing Director Independent Director

MR. R. SHANKAR RAMAN MR. SANJEEV AGA

President, Whole-time Director & CFO Independent Director

MR. SUBRAMANIAN SARMA MR. NARAYANAN KUMAR

Whole-time Director & President (Energy) Independent Director

MR. S. V. DESAI MR. HEMANT BHARGAVA

Whole-time Director & Sr. Executive Vice Nominee of Life Insurance Corporation of India
President (Civil Infrastructure) (upto May 27, 2024)

MR. T. MADHAVA DAS MRS. PREETHA REDDY

Whole-time Director & Sr. Executive Vice Independent Director
President (Utilities)
MR. PRAMIT JHAVERI
MR. ANIL V PARAB Independent Director
Whole-time Director & Sr. Executive Vice
MR. RAJNISH KUMAR
President (Heavy Engineering & L&T Valves)
Independent Director

MR. JYOTI SAGAR

Independent Director

MR. AJAY TYAGI

Independent Director

MR. P R RAMESH
Independent Director

MR. SIDDHARTHA MOHANTY

Nominee of Life Insurance Corporation of India
(from May 28, 2024)

Company Secretary & Compliance Officer

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
79th Annual General Meeting through Video Conferencing or Other Audio-Visual Means on Thursday, July 4, 2024 at 3:00 p.m. IST

09
 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports Statements

EXECUTIVE COMMITTEE (ECOM)

S. N. Subrahmanyan
Chairman & Managing Director

R. Shankar Raman Subramanian Sarma S. V. Desai

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

T. Madhava Das Anil V. Parab M. V. Satish

Whole-time Director & Whole-time Director & Advisor to the Chairman & MD
Sr. Executive Vice President Sr. Executive Vice President (Buildings)
(Utilities) (Heavy Engineering and L&T Valves)

D. K. Sen J. D. Patil Shrikant Joshi

Advisor to the Chairman & MD Advisor to the Chairman & MD Advisor to the Chairman & MD
(Development Projects, Minerals & Metals, (Precision Engineering and Systems, (L&T Realty)
L&T Special Steels & Heavy Forgings, and L&T Semiconductor Technologies)
L&T-SuFin and L&T Aviation)

As on 08. 05. 2024

11
 Group
Business Structure
GROUP STRUCTURE
EPC Projects

GROUP
GROUP
GROUP
GROUPBUSINESS
GROUP STRUCTURE
STRUCTURE
GROUP
STRUCTURE
STRUCTURE
STRUCTURE STRUCTURE
Infrastructure
Projects
Energy
Projects
EPC Projects
Sthaladipti Saha Subramanian Sarma C
GROUP STRUCTURE
Infrastructure
Buildings & Factories
Projects Energy
Energy
- Hydrocarbon
Projects
EPC Projects
EPC
EPC EPC Projects
Projects
EPC Projects
Projects
Sthaladipti Saha
S. V. Desai Subramanian
Satish Palekar
Sarma
Infrastructure
Infrastructure
Infrastructure
Infrastructure Energy Energy
Infrastructure EnergyEnergyEnergy
Buildings
Heavy
Projects Civil & Factories
Infrastructure
Projects Projects
Projects Energy
Projects
Projects Projects
- Projects
Hydrocarbon
Projects
Energy - Power Projects
EPC Projects
SthaladiptiSthaladipti
T.Saha
Madhava Sthaladipti
SthaladiptiSaha
S. V. Desai Saha
Das Saha Saha
Sthaladipti
Subramanian SarmaSubramanian
Subramanian
Satish
Derek
Subramanian SarmaSarma Sarma
Subramanian
Palekar
M. Shah
Sarma

GROUP STRUCTURE Infrastructure

&Power
BuildingsHeavy Transmission
Factories
Civil
Buildings Buildings
Buildings & Factories
&
& Factories
Buildings
Infrastructure
& Factories
Projects
Distribution
& Factories
Energy
Energy
Energy -- Green
- Hydrocarbon
Energy
Energy Mfg
Energy & - Hydrocarbon
-Energy
- Power Hydrocarbon
Hydrocarbon
Hydrocarbon
Projects Development

S. V. Desai E. V.
S. P.
T. Madhava S.
S.Desai
Sajit
Sthaladipti V. Desai
V. Desai
Saha
Das S. V.Satish
Desai Palekar
Satish
Satish
Derek M.
Subramanian Satish
Palekar
Shah
SarmaPalekar
Palekar
Satish Palekar

Power
Heavy CivilWater
Heavy Transmission
Heavy
Infrastructure
Heavy
&Civil
BuildingsCivil Civil & Civil Energy
Infrastructure
Infrastructure
Effluent Infrastructure
Heavy
Treatment
& Factories -Energy
Infrastructure
Power -- Green
Energy - Mfg
Energy &
-Energy
Power Power - Power
Energy
Energy Hydrocarbon
- Power
Distribution Development
EPC Projects
T. MadhavaT.Shrinath
Das
T.
E. V.
S.
MadhavaT. Rao
Madhava
P.DesaiMadhava
SajitDasDas Das
T. Madhava
DerekDas
M. Shah
Derek
Satish
Derek Derek
M. M.
Shah
Palekar
M. Shah ShahM. Shah
Derek
Infrastructure
Power Transmission
Power
Power &Power
TransmissionTransmission
Transmission
Power
& &Energy&- Green
Transmission Energy
&Energy
Energy &Energy
Mfg- Green -Energy
- Green
MfgGreen
& &-Mfg
Mfg & Mfg &
Green
Water
Heavy &Civil
Effluent
Transportation Treatment
Infrastructure
Infrastructure Energy - Power
Projects Distribution
DistributionDistribution
Distribution Distribution
Development Projects Development
Development
Development Development

E. P. Sajit
T.T. E. P.
Sthaladipti
Kumaresan
Shrinath
Madhava E.
E. Sajit
P.Rao
Saha
DasP. Sajit
Sajit E. P. Sajit Subramanian
Derek M. Shah
Sarma

Power Transmission && Effluent Energy

Water & Effluent
Water
Water Water
Treatment
& Effluent &Treatment
& Effluent
Transportation
Minerals
Buildings Effluent
Water Treatment
Treatment
&&Infrastructure
Metals
Factories Energy -- Green
Treatment Mfg &
Hydrocarbon
Distribution Development

Shrinath Rao
T. E.
Shrinath
S. V. Shrinath
Shrinath
Sajit
Kumaresan Rao Rao
RaoRaoShrinath
P.Desai Satish Palekar

Transportation
Water Transportation
Transportation
Transportation
Infrastructure
Minerals
Heavy &Civil
Effluent Metals Infrastructure
&Infrastructure
Transportation
Infrastructure
Treatment
Infrastructure Infrastructure
Energy - Power

T. Kumaresan
T.T. T.Rao
Kumaresan Kumaresan
T. Kumaresan
Shrinath
Madhava Das T. Kumaresan Derek M. Shah

Minerals Power
& Transmission
Minerals
Metals &Minerals
Minerals
Transportation Metals && Metals& Metals
& Metals
Minerals
Infrastructure Energy - Green Mfg &
Distribution Development

T. E. P. Sajit
Kumaresan

Minerals
Water & Metals
& Effluent Treatment

Shrinath Rao

Transportation Infrastructure

12 Integrated Annual Report 2023-24

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

S.
S. N.
N. Subrahmanyan
S. N. Subrahmanyan
Subrahmanyan
S. N.
Chairman
Chairman Chairman Subrahmanyan
& Managing&
& Managing
Director Director
Managing Director
S. N. Subrahmanyan
Chairman & Managing Director
S. N. Subrahmanyan
Chairman & Managing Director
S. N. Subrahmanyan IT
Chairman
Hi-Tech &Manufacturing
Managing Director
Hi-Tech Manufacturing
Hi-Tech Manufacturing IT && Technology
IT & Technology Services Services
Technology Services
Chairman
Hi-Tech&Manufacturing
Managing Director IT & Technology Services
Hi-Tech Manufacturing IT & Technology Services
Debashis Chatterjee
Anil V. Parab Debashis Chatterjee
Debashis Chatterjee
AnilHi-Tech Manufacturing
V. Parab Anil V. Parab IT & Technology Services
Debashis Chatterjee
Anil V. Parab
Hi-Tech
Heavy
Manufacturing
Heavy Engineering
Engineering and
IT & Technology
LTIMindtree
Debashis
Services
Chatterjee
Heavy EngineeringAnilEngineering
Heavy V. Parab LTIMindtree LTIMindtree
Anil V.Valves
L&TEngineering
Heavy Parab LTIMindtree
Debashis Chatterjee
Heavy
Anil Engineering
V. Parab LTIMindtree
Debashis Chatterjee
Amit Chadha
Arun Ramchandani Amit ChadhaAmit Chadha
Arun Ramchandani
Arun
HeavyRamchandani
Engineering LTIMindtree
Arun Ramchandani Amit Chadha
Precision
HeavyEngineering
Engineeringand LTIMindtree
L&T Technology Services
Precision Engineering
Precision
Arunand Engineering
Ramchandani and L&T TechnologyL&T Amit Chadha
Services
Technology Services
Systems
PrecisionSystems
Engineering and
Systems Arun Ramchandani L&T Technology
Amit Chadha Services
PrecisionSystems
Engineering and L&T Technology
Amit Chadha Services
Arun Ramchandani
Development
Precision Systems Projects
Engineering and Digital Services &
Development Development
Projects Projects L&TDigital
Digital Services Technology
& Services
Services &
Precision Systems
Engineering and E-Commerce
Digital Platforms
Services &
Development Projects E-Commerce Platforms
E-Commerce
L&T Technology Platforms
Services
Systems E-Commerce
Digital Platforms
L&TServices
Sufin &
Development Projects L&T Sufin L&T -Sufin
L&T-SuFin
K. V. B Reddy E-Commerce
Digital
L&T Platforms
Services
Sufin &
K. V. Development
B ReddyK. V. B Reddy Projects L&T EduTech
K. V. B Reddy L&T EduTech L&T
E-Commerce
Digital EduTech
Platforms
Services
Development Projects Sufin &
L&TEduTech
L&T
Hyderabad Metro L&T Cloudfiniti
E-Commerce Platforms
Hyderabad Metro K. V. B Reddy
Hyderabad Metro L&T Cloudfiniti L&TL&T
Cloudfiniti
Sufin
L&TCloudfiniti
L&T EduTech
Hyderabad Metro
K. V. B Reddy L&T Semiconductor
L&TEduTech
Sufin
L&T Semiconductor
L&TL&T
Semiconductor
Hyderabad
K. V. B Metro
Reddy L&T
L&T Cloudfiniti
Technologies
Semiconductor
S. K. Narang Technologies Technologies
L&TCloudfiniti
EduTech
S. K. Narang S. K. Narang L&T
L&TTechnologies
Semiconductor
Hyderabad Metro
S. K. Narang
Hyderabad Metro L&T
L&T Cloudfiniti
Technologies
Semiconductor
Financial Financial Services
Nabha Power
S. K. Limited
Narang
Nabha Power Limited
Nabha Power Limited Financial
Services Services
L&TTechnologies
Semiconductor
Nabha Power
S. K. Limited
Narang Financial Services
Technologies
Nabha Power
S. K. Limited
Narang Financial
SudiptaServices
Roy
Other
Other Businesses
Other Businesses
Businesses
Nabha Power Limited Sudipta Roy Sudipta Roy
Financial Services
Sudipta Roy
Other Businesses
Nabha Power Limited Financial Services
L&T Finance
Other Businesses L&T Finance Sudipta Roy
L&T Finance
Anupam Kumar L&T Finance
Anupam Kumar
Anupam Kumar Sudipta Roy
Other Businesses
Anupam Kumar L&T Finance
Sudipta Roy
Other Businesses
L&T
Anupam Realty
Kumar L&T Finance
L&T Realty L&T Realty
L&T Realty
Anupam Kumar L&T Finance
L&T
Anupam Realty
Kumar
Arvind Garg
Arvind Garg Arvind Garg
L&T Realty
Arvind Garg
Construction, Mining,
L&T Realty
Construction,Construction,
Mining,
Construction,
Arvind Mining, and
Mining,
Garg
and Industrial
Construction,
Industrial Machinery
Mining,
Machinery
and Industrial and
Machinery
Industrial Machinery
Arvind Garg
and Industrial Machinery
Construction, Mining,
Arvind
Rubber Garg
Processing
and Industrial Machinery
Construction, Mining,
Machinery
and Industrial Machinery
Construction, Mining,
Hydraulics
and Industrial Machinery

13
 Network

NATIONWIDE
NETWORK

14 Integrated Annual Report 2023-24

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

GLOBAL
NETWORK

Offices
Engineering & Construction Projects
Manufacturing/Fabrication Facilities

15
 10 Year
Highlights

10 Year
Highlights

STANDALONE FINANCIALS-
10 YEAR HIGHLIGHTS
Standalone Financials-10 Year Highlights
v crore
IndAS [12] IGAAP [12]

Description 2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15
[9] [10]

Statement of Profit and Loss

Gross revenue from operations [1] 126236 110501 101000 87255 82384 82287 74612 66301 63813 57558
PBDIT[1][2] 9685 9295 9055 8309 6838 7653 7701 6481 5829 6488
Profit after tax (excluding exceptional
items[3]) 8856 7849 7612 5966 5414 5466 4861 4560 4454 4699
Profit after tax (including exceptional
items[3]) 9304 7849 7879 11798 6679 7491 5387 5454 5000 5056

Balance Sheet
Net worth 64416 71528 67114 61738 52175 50048 49174 46013 42135 37085
Borrowings 22540 18151 20298 24474 25785 11990 10561 10558 13924 12936
Capital employed 86956 89679 87412 86212 77960 62038 59735 56571 56059 50021

Ratios and statistics

PBDIT as % of net revenue from
operations [1][4] 7.67 8.41 8.97 9.52 8.30 9.30 10.34 9.86 9.23 11.38
PAT as % of (net revenue from
operations[1])[5] 7.37 7.10 7.80 13.52 8.11 9.10 7.23 8.30 7.91 8.87
RONW % [6] 13.69 11.32 12.23 20.54 13.07 15.74 11.32 12.37 12.39 14.30
Gross Debt: Equity ratio 0.35:1 0.25:1 0.30:1 0.40:1 0.49:1 0.24:1 0.21:1 0.23:1 0.33:1 0.35:1
Basic earnings per equity share (¢) [7] 66.95 55.85 56.09 84.02 47.59 53.43 38.46 39.00 35.81 36.31
Book value per equity share (¢) [8] 468.59 508.92 477.67 439.55 371.65 356.79 350.90 328.79 301.57 265.85
Dividend per equity share (¢) [8][11] 34.00 24.00 22.00 36.00 18.00 18.00 16.00 14.00 12.17 10.83
No. of equity shareholders 15,64,085 14,25,064 14,92,124 13,71,535 12,51,569 10,21,275 8,99,902 9,23,628 10,28,541 8,53,824
No. of employees 59,344 55,202 50,267 49,107 45,467 45,205 42,924 41,466 43,354 44,081
[1] For Continuing Operations in 2020-21, 2019-20 and 2018-19.
[2] Profit before depreciation, interest and tax (PBDIT) is excluding 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 up to June 30, 2017)].
[5] Profit After Tax (PAT) as % of net revenue from operations =[(PAT including exceptional items)/(gross revenue from operations less excise duty up to
June 30, 2017)].
[6] RONW [(PAT including exceptional items)/(average net worth excluding revaluation reserve)].
[7] Basic earnings per equity share has been calculated including exceptional items and adjusted for all the years for issue of bonus shares.
[8] After considering adjustments for issue of bonus shares during the respective years.
[9] Figures from 2020-21 include the impact of the merger of L&T Hydrocarbon Engineering Limited with the Company.
[10] Figures from 2018-19 include the impact of the merger of L&T Shipbuilding Limited with the Company.
[11] Dividend for 2020-21 includes special dividend of ¢ 18.00 per share and final dividend of ¢ 18.00 per share. Dividend for 2023-24 includes special dividend of
¢ 6.00 per share and final dividend of ¢ 28.00 per share.
[12] Figures from 2015-16 are as per Ind AS and for 2014-15 are as per IGAAP and hence not directly comparable.

16 Integrated Annual Report 2023-24

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

Corporate Management Integrated Statutory Financial

Overview Discussion and Analysis Report Reports Statements

CONSOLIDATED FINANCIALS-
Consolidated Financials-10 Year Highlights
10 YEAR HIGHLIGHTS
v crore
Ind AS [11] IGAAP [11]
Particulars
2023-24 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15

Statement of Profit and Loss

Gross revenue from operations [1] 221113 183341 156521 135979 145452 135220 119862 110011 101975 92762
PBDIT [1][2] 23494 20753 18205 15624 16329 15330 13641 11130 10463 11258
Profit for the year [PAT] 15547 12531 10419 12921 10894 10217 8004 6486 4545 4966
Profit attributable to the Owners of
the Company (excluding exceptional
items [3]) 12966 10374 8572 6965 8894 8144 7151 5920 4154 4470
Profit attributable to the Owners of
the Company (including exceptional
items [3]) 13059 10471 8669 11583 9549 8905 7370 6041 4233 4765

Balance Sheet
Net worth attributable to the Owners
of the Company 86359 89326 82408 75869 66723 62375 54904 50217 44180 40909
Non-controlling interest 16190 14241 12966 12052 9521 6826 5201 3564 2893 4999
Borrowings 114040 118513 123468 132605 141007 125555 107524 93954 88135 90571
Capital employed 216589 222080 218842 220525 217251 194756 167629 147735 135208 136479

Ratios and statistics

PBDIT as % of net revenue from
operations [4][1] 10.63 11.32 11.63 11.49 11.23 11.34 11.40 10.18 10.35 12.24
PAT as % of (net revenue from
operations [1]) [5] 7.03 6.83 6.66 9.50 7.49 7.56 6.69 5.93 4.49 5.40
RONW % [6] 14.87 12.19 10.95 16.25 14.80 15.35 14.12 12.80 9.91 12.13
Gross Debt: Equity ratio 1.11:1 1.14:1 1.29:1 1.51:1 1.85:1 1.81:1 1.79:1 1.75:1 1.87:1 2.21:1
Basic earnings per equity share (¢) [7] 93.96 74.51 61.71 82.49 68.04 63.51 52.62 43.20 30.32 34.22
Book value per equity share (¢) [8] 628.22 635.55 586.52 540.16 475.27 444.67 391.78 358.83 316.20 293.29
Dividend per equity share (¢) [8] [9] [10] 34.00 24.00 22.00 36.00 18.00 18.00 16.00 14.00 12.17 10.83
[1] From Continuing Operations in 2020-21, 2019-20 and 2018-19
[2] Profit before depreciation, interest and tax [PBDIT] is excluding 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] PAT as % of net revenue from operations = [PAT/(gross revenue from operations less excise duty upto June 30, 2017)].
[6] RONW = [(Profit attributable to the Owners of the Company including exceptional items)/(average net worth excluding revaluation reserve)].
[7] Basic earnings per equity share has been calculated including 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 ¢ 18.00 per share and final dividend of ¢ 18.00 per share.
[10] Dividend for the year 2023-24 includes special dividend of ¢ 6.00 per share and final dividend of ¢ 28.00 per share.
[11] Figures for 2015-16 to 2023-24 are as per Ind AS and for 2014-15 are as per IGAAP and hence not directly comparable.

17
MANAGEMENT
DISCUSSION AND
ANALYSIS

18 Integrated Annual Report 2023-24

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

Economy
Indian Economy Global Economy
The Financial Year 2023-24 remained a mixed bag of The global economy has been in better shape
opportunities and challenges. On one hand, domestic than anticipated at the start of the year, having
activity exhibited resilience on the back of strong domestic demonstrated some signs of growth, as reflected
demand, whilst on the other, global geopolitical uncertainty in the various high-frequency indicators. However,
continued to impact inflation, interest rates, and the elevated debt levels and continuing geopolitical
supply chain. hostilities aggravate risks to global growth and
Amidst global headwinds, the Indian economy has inflation outlook in the medium-term.
displayed strength and has grown by 8.2% for FY 2023-24, The US economy has shown elasticity so far, but
mainly driven by sustained investment through an inflation being higher than expected has postponed
infrastructure-driven policy by the government. Better rate cuts by the Fed. The US Presidential election
capacity utilisation in the manufacturing sector, buoyancy in November is expected to contribute to the
in auto and real estate, healthy corporate balance sheets, economic volatility. Further, the UK and Europe
strong credit momentum, higher tax collections, and economies are still fragile. Also, concerns about the
acceptable levels of inflation are aptly aiding the growth real estate bubble in China could further dampen
prospects of the Indian economy. economic revitalisation.
India’s growth story momentum is likely to continue in The medium-term outlook has worsened for many
the next fiscal year with sustained strength in domestic developing economies amid slowing growth, sluggish
demand, easing of inflationary pressures, focussed fiscal global trade, and tighter financial conditions.
outlay by the government, and a strong manufacturing Additionally, the volatility in crude oil prices and the
revival. However, due to the general elections in India, ongoing shipping disruptions through the Red Sea
public CapEx could witness a temporary slowdown in the may further pose challenges to global supply chains
very near-term. and aid inflation.
While private industrial capital spending has been measured The Middle East region is also feeling the pressure on
in FY 2023-24, it is expected to pick up in the next fiscal account of the Israel conflict. An escalation or spread
year with the ongoing global supply chain diversification of the conflict beyond Gaza and Israel, as well as an
trends and investors’ response to the government’s intensification of the disruptions in the Red Sea, could
Production Linked Incentive (PLI) scheme to boost key have an economic impact on the region. Structural
targeted manufacturing industries. reforms remain critical to boosting growth in the
However, headwinds from geopolitical tensions, Middle East region by way of diversification into clean
volatility in international financial markets, geoeconomic energy and other industrial sectors besides oil.
fragmentation, continuing sea route trade disruptions, Despite all the turmoil, India is on track to become
and extreme weather events pose risks to the otherwise the third-largest economy by 2027, overtaking Japan
optimistic outlook. India, given its structural reforms, and Germany. It is also the fastest-growing large
strengthening physical and digital infrastructure, as well economy with the tailwinds of young demographics,
as upbeat business and consumer confidence, is in a improving institutional strength and strong
better position to overcome these multiple challenges governance.
and emerge stronger.

19
 Economy and
Business Strategy

Business Model and Strategy

Strategy Formulation
momentum in existing and emerging technology trends
Business strategy formulation aims to set long-term goals for IT services, reorganise the business offerings to serve
for the Group and identify areas to leverage its strengths, customers better, and drive profitability through operational
explore new business opportunities, and enhance its excellence, value engineering, and various digitalisation-led
existing capabilities and offerings. This is enabled through productivity improvement initiatives.
plans with three different time horizons, viz., a long-term
perspective plan (7-10 years), medium-term strategy (5 Lakshya 2026 has completed its third year in FY 2023-24
years), and short-term (annual) budget targets. Directions and is progressing towards achieving the targets set in
and Objectives determined in the Perspective Plan become the plan. With the aim of being future-ready, the Group
guideposts for medium-term and short-term plans. has recently incubated L&T Semiconductor Technologies,
which focusses on fabless chip design and the delivery of
‘Lakshya’, the Group’s 5-year strategic plan, is developed smart products globally. This is in addition to the scaling
through a collaborative process across the organisation. up of Green Hydrogen and its derivatives, Data Centers,
Lakshya 2026 seeks to achieve value-accretive growth in and E-commerce Platform businesses, viz. L&T EduTech
the existing business portfolio through a multi-pronged and L&T-SuFin. The Group also continues to pursue its
approach of targeting opportunities arising out of goal of unlocking value by exiting non-core businesses and
global trends, with a focus on ESG and Sustainability. staying asset-light.
The underlying emphasis of Lakshya 2026 is to ride the

Business Model
Value creation is enabled through a portfolio comprising:

EPC Projects
EPC Projects focus on the proven core competencies of conceptualising, designing, executing, and
commissioning large, complex projects in the areas of mobility infrastructure, power transmission and
distribution, water and irrigation infrastructure, buildings and factories, metals and mining, energy
generation & storage solutions, oil & gas, and energy transition.

Hi-Tech Manufacturing
Hi-Tech Manufacturing focusses on custom-designed and built equipment catering to process plants
for various sectors (including nuclear), precision engineering and systems for the defence & aerospace
sectors, electrolysers for hydrogen production, industrial and bulk material handling, construction
machinery and mining equipment, and industrial valves.

Services
The Services businesses cater to sectors of IT (through LTIMindtree), Engineering R&D (through
LTTS), financial services (through L&T Finance), real estate development (through L&T Realty), B2B
E-commerce (through L&T-SuFin), skilling and assessment (through L&T EduTech), data/cloud services
(through L&T-Cloudfiniti) and fabless chip design (through L&T Semiconductor Technologies).

In the past, the Group had made investments in concession projects such as Toll Roads, Airports, Ports, Hyderabad Metro, and
power generation (Nabha Power). However, in recent years, the focus has been on reducing its exposure to such public-private
partnerships (PPPs) through divestment. Further, the Group recently concluded its divestment of the 51% holding in L&T
Infrastructure Development Projects Limited, an intermediate Holdco for Roads and Transmission Line concession.

20 Integrated Annual Report 2023-24

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

The Group’s businesses and offerings are closely linked to global megatrends.

Urbanisation Boom Climate Change

High-rise Buildings (B&F) Renewables - Solar, Hydel

and Energy Storage (HCI, PT&D)
Multi-model Transportation Network (TI, HCI)
Green Buildings (B&F)
High-capacity Utility Networks
(PT&D, WET) Clean Fuels (HE, LTEH)

Safe and Smart Cities (LTTS) Green Hydrogen (LTEG)

Water Recycle and Reuse (WET)

Increasing population pressures in cities leading to various
challenges e.g., congestion and call for better solutions Climate change and resource scarcity driving need for solutions
to balance growing needs with the environment

Mobility Growth Societal Challenge

Mass Rapid Transit Systems (HCI, TI) Water and Sewage

Treatment Systems (WET)
World-class Airports (B&F, TI)
Housing (B&F, LTR)
Electric, Autonomous and Connected
Systems (LTTS) Energy Efficient Power Systems
and Microgrids (PT&D)
Expressways and Rail Networks (TI)
Financial Services (LTF)
Safe, fast, affordable and environment-friendly solutions
for movement of people and goods Universal coverage for basic amenities while keeping up
with growing demands of global population

Digital Transformation

Big Data, AI/ML, AR/VR, 5G, Cloud, Cyber Security (LTIM, LTTS)
Automation, Industry 4.0, Digital Engineering (LTIM, LTTS)
Chip design (LTSCT)
Data Storage and Computing (L&T-Cloudfiniti)
Platforms (L&T-SuFin, L&T EduTech)
Technology and services offerings to transform businesses across various domains

B&F Buildings & Factories LTR L&T Realty

HCI Heavy Civil Infrastructure LTSCT L&T Semiconductor Technologies
HE Heavy Engineering LTTS L&T Technology Services
LTEG L&T Energy - GreenTech PT&D Power Transmission & Distribution
LTEH L&T Energy - Hydrocarbon TI Transportation Infrastructure
LTF L&T Finance WET Water & Effluent Treatment
LTIM LTIMindtree

21
 Economy and
Business Strategy

Portfolio Strategy
The portfolio strategy aims to pursue growth by de-risking revenue streams, exploring new
adjacencies, and improving profitability with the aim of creating value for all stakeholders:

Complementing the mature businesses

with growth-stage businesses
While the Group relies on mature businesses for cash
generation and steady growth, the focus is also on seeding and
scaling up new businesses with high growth potential that are
tech-oriented and can deliver superior financial returns.

Geographically diversified businesses

India continues to remain the primary market for EPC Projects,
Hi-Tech Manufacturing, and Financial Services businesses. This is
complemented by a focus on select international geographies, i.e.,
the Middle East, Africa, and ASEAN. The Americas and Europe will
continue to be the primary geographies for the IT services businesses.

Balancing the cyclical nature of the EPC business

through a portfolio of Services businesses
To have a better revenue profile and improved profitability,
the Group intends to increase the share of the IT&TS Services
business while pursuing growth in the traditional EPC and
Hi-Tech Manufacturing businesses.

Supplementing the standalone

offerings with partnerships
For Hi-Tech Manufacturing and EPC Projects businesses, the Group has
partnered with several large global processes, technology licensors, and
EPC contractors to improve the scope of its business offerings. For the IT
and Technology Services businesses, the Group has strategic partnerships
with established global software product and technology companies.

IT Services business, with a focus on the Americas and Europe, is currently witnessing some sectorial headwinds. This,
however, has been balanced by robust growth in the EPC Projects and Hi-Tech Manufacturing portfolio, aided by Infra
CapEx-led focus in India and oil & gas investments in the Middle East, reflecting the resilience of the portfolio strategy.

22 Integrated Annual Report 2023-24

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

Strategic Thrust & Direction

The Group re-evaluated its Strategic Objectives in FY 2021-22 as part of the assessment done in the Lakshya 2026 exercise.
These objectives illustrate how the Group creates value for its stakeholders, fulfils social obligations, and meets sustainability
goals. These are:

Strategic Objectives
ROE Growth

SO-I Value-accretive growth of current businesses

SO-II Scaling-up digital and e-commerce businesses

SO-III Developing business offerings to ride the Energy Transition wave

SO-IV Divestment of non-core businesses

SO-V Enabling business sustainability through a high focus on ESG and stakeholder value creation

Strategic Objectives are supported through:

Strategic Enablers

SE-1 Operational Excellence for leadership in cost-competitiveness and world-class execution

Industry-leading capabilities in digital technologies and analytics for productivity,

SE-2
ESG effectiveness and strengthening revenue streams

Financial resources to enable growth of the businesses and strong financial health
SE-3
to facilitate access to capital markets, when required

SE-4 Talent and leadership pipeline to drive business continuity and growth

SE-5 Capability development through R&D, absorption of new technologies and partnerships

23
 Economy and
Business Strategy

Performance in FY 2023-24 against Strategic Objectives:

Objectives Performance Measures Performance

SO-I à Revenue Growth In FY 2023-24, the Group achieved revenues of ` 2,21,113 crore
Value-accretive growth à Composition of (21% growth y-o-y).
of current businesses Services in Total The Services businesses reported modest growth of 9% y-o-y with a
Revenues stable percentage share in revenues at 28% in FY 2023-24.

SO-II à Growth of digital & In FY 2023-24, L&T-Cloudfiniti (Business offering linked to data
Scaling up digital and e-commerce businesses centers and related services) saw its operations start at the Panvel
e-commerce businesses Data Center with ~1.4 MW capacity. The business is also in the
process of launching its Kancheepuram Data Center with 30
MW capacity in the near-term. Further, two new data centers
in Mahape, Navi Mumbai and Whitefield, Bangalore, are under
active consideration.
L&T Semiconductor Technologies was incorporated in FY 2023-24
with an initial focus on a fabless design approach.
L&T-SuFin and L&T EduTech have continued to grow
during FY 2023-24.

SO-III à Size of Green Business The Group increased the share of Green Business to ` 634 billion,
Developing business à New Business or which is 50% of standalone revenues in FY 2023-24 (as compared
offerings to ride the Business offerings to 37% in FY 2022-23).
Energy Transition wave developed The Group invested ~` 110 crore during FY 2023-24 in the Green
Business against the overall commitment of ~` 500 crore.
The Group has instituted a Green Hydrogen Council comprising
stalwarts from academia and business to provide guidance in
building a global green energy business. In parallel, it has also
joined The Hydrogen Council, a CEO-led coalition of 140+ MNCs
for advancing Hydrogen in the global energy transition and
energy mix.
The Group progressed towards electrolyser manufacturing by
making the first indigenously manufactured electrolyser.

SO-IV à Businesses Divestment The entire stake in L&T IDPL (a joint venture with investments in
Divestment of non-core road projects and a power transmission asset) was divested on
businesses April 10, 2024.
The Group continues to actively pursue divestments from other
non-core assets and is also exploring various alternatives to de-risk
the current exposure in Hyderabad Metro.

SO-V à Metrics linked to ESG For details, refer to the following in the Integrated Report section:
Enabling business performance are based à Natural Capital
on materiality. e.g.
sustainability through
- Carbon Footprint
à Social and Relationship Capital
a high focus on ESG
and stakeholder value - Resource à Human Capital
creation consumption
- LTIFR
- Training hours

24 Integrated Annual Report 2023-24

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

Risk Management Framework Legal and contractual risks are also thoroughly reviewed
at the pre-bid stage to ensure that these stay within the
Risk Management includes identification, measurement, Company’s overall risk appetite.
and mitigation of risks. This includes judgements on Supply Chain Risks - These risks have risen due to the
the probability as well as severity of risk events. The volatile geopolitical environment, especially in the Middle
Company has a 3-pronged approach to Risk Management East. These are being closely monitored. While they are
– Operational, Tactical, and Strategic. These risks, at the not likely to have a significant impact on operations in the
level of individual projects as well as the portfolio level, short-term, the long-term persistence of these challenges
are managed by robust processes, including statutorily may result in adverse outcomes. Despite this, commodity-
mandated and various other internal processes. The Risk related inflation has remained subdued, with the overall
Management framework involves Business Heads and Risk environment for commodity prices remaining manageable.
Teams at various businesses working in close coordination
with the Company-level teams. In addition to project- Cyber Security - The Company has a Cyber Security
level risks, risks arising from Corporate Functions such Assurance Framework encompassing Processes & Standards
as IT (including Cyber Security) and HR are also mapped and Technology. These risks are monitored/managed
and mitigated appropriately. The overall aim of the Risk at the level of individual businesses/domains as well as
Management function is to improve project outcomes, and by various Committees, including the Company’s Risk
thereby, aid financial performance. Management Committee.
The Chief Risk Officer closely monitors the overall Climate Change - Climate change increases the impact
Risk Management Process, which includes Project Pre- and likelihood of some physical risks, which could lead
Bid, Execution, and Close-out Risk Reviews. Further, to execution disruption and losses. These risks manifest
significant risks are presented to the Company’s Risk both as acute physical risks, e.g., extreme weather
Management Committee (twice a year) as well as the conditions, heavy precipitation, etc., as well as chronic
Apex Risk Management Committee, which lays down the physical risks, e.g., higher ambient temperatures, increase
essential guardrails such as Country Risk exposures, etc. in sea levels, etc. While business operations typically face
The outcomes/learnings of Risk Reviews are captured in a higher impact of such risks, now even assets and the
the ERM system, which helps track project-related and built environment are increasingly facing such threats. The
portfolio-related risks. Efforts are being made to use AI on Company’s major business segments, i.e., EPC projects and
the system to produce actionable insights. Hi-Tech Manufacturing, are exposed to such physical risks
from climate change, requiring risk mitigation strategies.
Efforts are being undertaken to absorb risk-related Some of the major challenges are:
learnings from an individual business and spread across
the Company using forums such as ‘Annual Risk Awards’ i. Increasing frequency and intensity of extreme
and regular meetings of Business Level Risk Heads. These weather events or natural calamities pose significant
initiatives help in the dissemination of learnings across threats to safety as well as the availability and
the Company, with respect to Specific Risks, Clients, utilisation of resources
Geographies, etc. Apart from internal learnings, efforts ii. Extremely high daytime temperatures pose a danger to
are also made to absorb best practices from outside the the health and safety of the workforce, which, in turn,
Company by participating in industry bodies/forums, etc. impacts productivity

Operational Risks iii. Heavy precipitation or flooding poses a significant risk

to project schedules
In the Projects business, normal risks like right-of-way,
resource availability, utilities shifting, etc., are typically iv. Actual weather patterns at project sites/manufacturing
encountered. These are managed by proper planning facilities may be significantly different from historical or
at the pre-bid stage and continuous monitoring at the predicted meteorological data and can impact business
execution stage. Risks arising from the financial position performance
of clients, JV partners, suppliers, etc., are also analysed v. Changing weather patterns have the potential to cause
and appropriately mitigated. Risk Registers are maintained disruptions in logistics and transportation of materials
and updated regularly. Further, all ongoing projects are
vi. In addition to loss of productivity and threat to safety,
also suitably insured.
climate events pose an additional burden in terms of
Risks from large, complex projects are mitigated by higher contingencies and insurance costs
having guardrails at the pre-bid review stage as well as by
vii. Resource scarcity, e.g., availability of water due to
measures such as having experienced project managers,
changing rainfall patterns
good client relationship management, and suitable
mitigation of counterparty and payment risks. However, if To mitigate the impact of such risks, the Company
there are issues in the execution of large/marquee orders, proactively assesses the likelihood and impact of such
risks to reputation need to be guarded against. risks. For EPC projects, this assessment is done both

25
 Risk Management
Framework

at the bidding stage and during the execution stage. Risks from Energy Transition - The current megatrend
Manufacturing facilities also undertake such assessments of Energy Transition is fundamentally reshaping several
on a periodic basis. The Company has adopted and industries across the globe. This affects the businesses at
implemented Environment Management Systems the operational level by increasing ‘green specifications’
based on ISO 14001 and Occupational Health & Safety in tenders, building codes, etc. It has also facilitated
Management Systems based on ISO 45001. This helps not opportunities such as Green EPC in the Middle East,
only in meeting regulatory compliance, but also improves domestic Pump Hydro Storage Projects (PSP), new business
operational performance by identifying and addressing areas such as Green Hydrogen/Electrolyser manufacturing,
business operations risks. and more Transmission & Distribution opportunities due
Monsoon preparedness plans, cover plans for the to evacuation requirements/grid reconfiguration for
protection of equipment (covering, tying down, or other renewables. However, risks could arise from the potential
suitable arrangements), backup for power/fuel, human failure of any of these new initiatives.
safety, and plans for restoring normal operations, e.g., The Company also sees significant business opportunities
dewatering arrangements are a standard requirement now from energy transition linked to the decarbonisation of
for all projects. For dealing with periods of extremely high the energy sector. These are in areas of renewable energy
temperature, measures are taken to reschedule the work- (solar, hydel), clean energy (nuclear, natural gas), renewable
rest cycle, additional measures are taken for shelters and fuels (green diesel), green hydrogen, battery energy
hydration of the workforce, and awareness sessions and storage, offshore wind, etc.
advisories are organised to apprise the workforce of risks, Talent Risks - The large volume of projects underway
reporting issues, and preventive measures to be taken. in India, as well as in key markets like Saudi Arabia, has
increased the demand for key skill sets. As such, talent
Tactical and Strategic Risks risks are likely to persist, given the focus on CapEx by
For the Projects Business, the risks arising from high debt both the Central and State Governments of India, as well
levels in various emerging markets (Asia/Africa) have to as Saudi Arabia’s ongoing plan to diversify its economy
be addressed while bidding for/executing projects in these away from oil.
regions. This is done using an appropriate approval matrix
for Country Risk and focussing on multilaterally funded Overall, the Company strives to maintain its robust
projects to mitigate sovereign risk. Risk Management Process, which is far ahead of the
statutory stipulation. Despite this, tail risks (potential large
Both Manufacturing and Projects businesses have faced impact from a very low probability event) can manifest
additional risks due to the ongoing geopolitical tensions themselves and will need to be appropriately managed
and a shifting Sanctions regime. Appropriate measures, when they arise.
such as end-to-end Sanction checks, are in place to
manage these risks. Apart from Sanctions, every country’s Financial Risks
foreign policy can also impact business to some extent. This Financial risk management is governed by the Risk
year, post-election outcomes (in India and overseas) are Management Framework and Policy approved by the
additional risks to be mitigated when required. Company’s Audit Committee under the guidance of
Technology/Business Model Risks - Changes in the Board. Financial risks in each business portfolio are
technologies/business models can affect the performance collated, measured, and managed by the Corporate
of clients and thus impact the type of projects that Finance Department.
the Company executes. As such, the Company closely The global economy proved to be resilient in 2023 despite
monitors these changes with respect to its clients. Trends high inflation, significantly tight monetary policy, supply
in Business Model changes for the EPC business (e.g. the chain disruptions, volatile commodity prices, and a
trends towards localisation, reduced site work/greater fragile Chinese economy. However, 2024 is likely to have
modularisation, and digitalisation) are also tracked. comparatively slower growth due to the lagged impacts of
Concentration Risks - The increase in the order book monetary policy tightening. Political and geopolitical risks
share of the Middle East has increased the concentration will be more pronounced in 2024, with an election-packed
risk. This risk is monitored regularly at various levels and events calendar. More than 60 countries, representing half
suitably mitigated by measures such as rigorous Sovereign the world’s population, will go to the polls in 2024. For
Analysis and Client Financial Strength reviews. G10, the main event is likely to be the US election. Inflation
Business Continuity Plan (BCP) - The Company has dynamics will look quite similar across developed and
a process by which BCPs for various risk scenarios are emerging economies, as most countries are experiencing
prepared and tested. BCPs are reviewed at several levels gradual disinflation driven by the dissipating effects of
and updated suitably, keeping in mind project/portfolio supply-side shocks combined with tightening financial
level changes in the Order Book. conditions. Disinflation in goods is proving to be faster than

26 Integrated Annual Report 2023-24

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

in services, but as it continues normalising, it is expected There is a broad consensus on economic stability over the
that the Fed & ECB would start their easing cycles by the short- to medium-term post-general election results, which
middle of 2024. is positive for the continuation of the reform agenda and
With oil prices expected to be in a range of USD 80-90 per the structural outlook for the Indian economy. One can
barrel, the Middle Eastern countries are likely to continue also expect fiscal consolidation to pick up pace, with the
their investments in the energy transition journey. The centre’s fiscal deficit likely to narrow to 5.1% of GDP in FY
Company had a record order inflow from the Middle 2024-25 and finally to 4.5% of GDP in FY 2025-26, as per
East in FY 2023-24 in the hydrocarbon and renewable the medium-term macro framework.
segments, and the positive momentum may continue in India's foreign exchange reserves stood at an all-time high
FY 2024-25 as well. of USD 646 billion as of March 29, 2024. The relative
The Indian economy has exhibited remarkable resilience. stability of the INR reflects India’s sound macroeconomic
Output has expanded at a faster pace compared to major fundamentals, financial stability and improvements in the
economies in 2023, and the outlook remains positive in external position. The slowing trajectory of inflation and
the medium-term. The country is on track to emerge as the improving CAD position would also allow the RBI to ease
third largest economy in the world within this decade after rates, maybe towards the end of the financial year.
overtaking the United Kingdom to become the fifth-largest Foreign Exchange and Commodity Price Risks
in the world on a nominal GDP (USD) basis last year. An The Company’s businesses are exposed to fluctuations in
expanding growth pie is expected to lift per capita GDP, foreign exchange rates and commodity prices. Additionally,
which trails most emerging market peers at this juncture. it has exposures to foreign currency-denominated
Going by the Government’s CapEx emphasis in the Interim financial assets and liabilities. Net foreign exchange risk
Budget of FY 2024-25, we expect public spending to on revenues, costs, assets, and liabilities are managed
remain strong and consequently, drive growth. Private through a combination of forwards and options wherein the
CapEx could pick up incrementally in FY 2024-25 post- counterparties are regulated banking entities. The financial
general elections, with improvement in capacity utilisation. risks involving commodity prices are managed through a
However, private consumption is likely to remain modest combination of price variation clauses embedded in customer
as the lagged impact of past rate hikes filters through the contracts, hedges in financial markets, and price pass-
real economy. NPAs in the banking system have reduced through arrangements. In the case of contracts with price
sharply. Hence, banks are well-positioned to fund the next variation clauses, the Company may run a Basis Risk between
CapEx cycle. Real GDP growth is likely to average around the actual price of the commodity and the reference indices.
7.0-7.5 % in FY 2024-25.
The disclosure of commodity exposures as required under
Unlike advanced countries, India does not face a big risk clause 9(n) of Part C, Schedule V of the SEBI (Listing
from wage-price inflation, which is supported by the recent Obligations and Disclosure Requirements) Regulations,
trend of moderation in core inflation (currently at 3.5% 2015, in the format specified vide Chapter VI-E of SEBI
vs. 6%+ in 2022). Headline CPI inflation is expected to Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/2023/120
moderate to 4.7% in the calendar year 2024. dated July 11, 2023 is given below:

Exposure in Exposure in % of such exposure hedged through commodity

INR towards Quantity terms derivatives
Sr
Commodity Name the particular towards the Domestic market International market
No
commodity particular Total
(` crore) commodity (Tn) OTC Exchange OTC Exchange
1 Aluminium - Buy 2,314.98 1,10,094 - - 73.33 - 73.33
2 Aluminium - Sell (23.30) (1,406) - - 75.11 - 75.11
3 Zinc - Buy 69.11 3,400 - - 100.00 - 100.00
4 Copper - Buy 2,774.60 38,952 - - 62.59 - 62.59
5 Copper - Sell (283.80) (5,654) - - 100.00 - 100.00
6 Lead - Buy 78.11 5,000 - - 100.00 - 100.00
7 Coking coal - Buy 71.04 30,030 - - 9.99 - 9.99
8 Iron ore - Buy 53.55 57,290 - - 58.65 - 58.65
9 Steel - Buy 19,410.19 53,67,394 - - - - -
10 Cement - Buy 5,502.16 85,61,148 - - - - -
11 Nickel - Buy 292.67 1,458 - - 88.38 - 88.38
12 Thermal Coal - Buy 8.43 6,440 - - - - -
Total exposure 30,267.73

27
 Risk Management
Framework

Liquidity and Interest Rate Risks Internal Controls and Safeguards

The Company constantly monitors the liquidity levels
and economic & capital market conditions and maintains Corporate governance is the foundation for the Company to
access to sources of liquidity with competitive cost achieve predictable growth and desired outcomes, and robust
structure through a combination of approved banking internal controls are one of the important pillars of corporate
lines, trade finance and capital markets. The Company governance. The Company has adopted the globally accepted
judiciously deploys its surplus funds in short-term framework issued by the Committee of Sponsoring Organisations
investments, which is in line with its Treasury Policy. The (COSO) of the Treadway Commission for Internal Controls. This
Company dynamically manages interest rate risks through framework assists in the alignment of controls with the dynamics
a mix of fund-raising, investment products, and derivatives of recent challenges and changes in risk profiles arising due
across maturity profiles and currencies within the robust to varying internal and external factors. The Company ensures
Risk Management Framework. integrity in conducting its business, safeguarding its assets,
timely preparation of reliable financial information, accuracy &
Financial Resources and Capital completeness in maintaining accounting records, and prevention
& detection of frauds & errors through a set of detailed policies
Allocation and procedures.
The capital allocation philosophy of the Company is geared
The Board of Directors and Management at all levels exhibit the
to support business initiatives for the profitable growth of
right tone through their actions, behaviour, and directives. The
the Company, while retaining adequate liquidity to support
‘Code of Conduct’, which serves as a beacon for employees,
any sudden short-term requirements of the Group. After
defines the Company culture and values, and emphasises
facing uncertainties in past periods due to the pandemic
the importance of integrity and ethical values. Besides, the
and geopolitics, which resulted in liquidity and supply
suppliers also have to conform to a separate ‘Code of Conduct’
chain disruptions, the Company has built appropriate cash
to ensure that they align with the Company’s commitment
buffers to meet both opportunities and challenges.
to seek sustainable growth by integrating Environment,
In the financial year, the Company supported the capital Social and Governance (ESG) principles with its businesses.
expenditure required to execute projects awarded in the ‘Whistle-blower/Vigil Mechanism’ policies are available to
Projects and Manufacturing business segment. Going both employees and business partners to enable them to raise
forward, the Company will continue to support the growth genuine concerns about any actual or suspected ethical/legal
of new businesses, including green energy, data centers, violations, misconduct or fraud, with adequate safeguards
and semiconductors. against victimisation, fear of punishment or unfair treatment.
In line with its stated strategy to monetise non-core The Company has well-documented policies, procedures,
assets, the Company concluded the divestment of its and authorisation guidelines commensurate with the level of
roads concessions and transmission line business (L&T responsibility, besides standard operating procedures specific
IDPL), which resulted in the release of capital to the tune to respective businesses. This ensures the propriety of the
of ~�1300 crore. transactions, besides authorisation at an appropriate level
Given the recovery in the business environment and of Management. The Corporate Manuals on Accounting
financial markets and with reduced working capital & Internal Controls prescribes the Accounting and Internal
requirements in the Company’s businesses and a healthier Controls Policies. Internal Financial Controls (IFC) at the entity
economic scenario in FY 2023-24, the Company rewarded and process level are aligned with the requirements of the
its shareholders by executing its first-ever equity share Companies Act 2013. The Internal Controls teams at the
buyback that consumed approximately � 12,300 crore, corporate and business levels assist the Management in setting
including taxes. Further, this transaction has a positive up appropriate internal controls and establishing and upgrading
impact on the Group return ratios as well. the system/procedures. Business teams ensure adherence to the
documented policies, procedures, authorisation guidelines and
In FY 2024-25, the Company proposes to raise long-term IFC framework.
debt to refinance about ~� 5,000 crore of maturing debt
and to partly fund its proposed capital expenditure. The effectiveness of Internal Controls is tested by the Statutory
Auditor as well as by the Company’s Corporate Audit Services
Low gearing levels (Gross Debt to Equity ratio at 0.35x) (CAS) Department. CAS develops an audit plan for the
at the parent entity level and a healthy cash buffer equips Company, which covers core business operations and corporate
the Company with enough flexibility to deal with normal & support functions. The Audit Committee of the Board reviews
business uncertainties. the annual internal audit plan. Significant audit observations
The Company has seen a significant volume of large- from the independent internal audits are presented quarterly to
value contracts in the Middle East, especially from Saudi the Audit Committee of the Board, along with the status of the
Arabia, which requires large banking facilities, primarily Management actions and the progress of the implementation
non-fund based. The Company is confident of tying up the of recommended remedial measures. The Company also
required banking facilities during the year to address the periodically engages independent professional firms to carry
upcoming requirements. out reviews of the effectiveness of control in businesses and
support functions.

28 Integrated Annual Report 2023-24

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

OVERALL FINANCIAL As at March 31, 2024, the L&T Group comprised 86

subsidiaries, 5 associate companies, 26 joint ventures, and
REVIEW 2023-24 33 jointly held operations. Out of the total 150 entities,
36 companies belong to the listed subsidiaries, and 20
I. L&T CONSOLIDATED are associated with Development Projects. The rest of the
Against the backdrop of domestic economic resurgence entities in the Group are mostly strategic extensions of
amidst global volatility, the Group has recorded a the traditional businesses, viz. EPC Contracts and Hi-Tech
healthy performance across its businesses, spread across Manufacturing, to enable access to new geographies,
diverse sectors and geographies. The Company has technology, and nuanced business segments.
continued its focus towards the goal of maximising
shareholder value by utilising technology towards Order Inflow and Order Book
improving productivity and efficiency, timely &
profitable execution of its record order book, containing Order Inflow
working capital along with better funds management, 31.4%
� crore
and divesting assets identified for sale. � crore

During the year, the Company successfully completed its 360000

first-ever buyback of equity shares in alignment with the 302812 13109
300000 4%, (5
long-term Lakshya 2026 plan to enhance shareholder
value. Additionally, as part of the strategy to exit 240000 230528
44473
non-core businesses, on April 10, 2024, the Company 163112 54%
15%, (18%)
completed the divestment of its entire shareholding 180000 38% 86523
in L&T Infrastructure Development Projects Limited, a 14278
joint venture primarily engaged in the development 120000 5%, (7%
and operation of toll roads and a power transmission 62% 144005 139700 46%
60000
asset. Further, the Company also sold its entire stake in
L&T Infrastructure Engineering Limited (LTIEL) to STUP 0
Consultants Private Limited, a subsidiary of Assystem SA 2022-23 2023-24
of France, to remain focussed on its core offerings. Domestic International Total Or
During the year, the Company successfully [F
commissioned its first indigenously manufactured
Order Inflow
electrolyser at the Green Hydrogen Plant at A. M.
Order Inflow Composition
Naik Heavy �Engineering
crore Complex in 31.4%Hazira, Gujarat.
� crore
This pioneering accomplishment signifies L&T 5620 8956
360000
Electrolysers Limited's foray into domestic electrolyser 2%, (2%) 3%, (4%) Infrastructure Projects
13109
manufacturing,
300000
underscoring the Company's steadfast
302812
4%, (5%) Energy Projects
dedication to propelling sustainable energy solutions. Hi-Tech Manufacturing
The Company
240000also launched its first Data Center Pilot
230528
44473 IT & Technology
163112 54% Services
project at Panvel, Mumbai, with a capacity of ~1.4 MW. 15%, (18%)
180000 38% 86523 Financial Services
The Group has also forayed into fabless semiconductor 14278 Development Projects
chip design during the year by incorporating L&T
120000 5%, (7%) Others
62% 144005
Semiconductor Technologies Limited (LTST), a wholly-
139700 46%
142589
60000
owned subsidiary. A fabless semiconductor company 73788
47%, (51%)
specialises in the
0 design and creation of semiconductor 24%, (13%)
chips without owning or 2022-23
operating semiconductor 2023-24

manufacturing facilities. Domestic International Total Order Inflow: ₹ 3,02,812 crore during the year 2023-24
[Figures in brackets relate to previous year]
The financial services business of the Group, during
the year, also concluded the merger of L&T Finance
L&T Group achieved order inflows of � 3,02,812 crore
Holdings Ltd. and its wholly owned subsidiaries, viz. L&T
during FY 2023-24, registering a growth of 31.4% over
Finance Ltd., L&T Infra Credit Ltd. and L&T Mutual Fund
the previous year. Growth was largely driven by the strong
Trustee Ltd., resulting in the creation of a single lending
investment momentum in the Middle East region, further
entity – L&T Finance Holdings. Further, the name of L&T
complemented by the Government of India’s CapEx push.
Finance Holdings Ltd. has been changed to L&T Finance
The buoyancy in Middle East orders led to an increase in
Ltd. This merger leads to the creation of a simplified
the share of international order inflow to 54% from 38%
'Single Lending Entity' and will create internal synergies,
in the previous year.
superior governance, and newer avenues for growth.

29
 Overall Financial
Review

The year witnessed the booking of some noteworthy orders As at March 31, 2024, the order book is at a record
in the Urban Transit space, including another package for level of � 4,75,809 crore, thereby providing a multi-
Mumbai-Ahmedabad High-Speed Rail in the Heavy Civil year revenue visibility for the Group. The infrastructure
business, a few orders in the residential vertical of Buildings segment continues to dominate with a share of 65% of the
& Factories business, multiple renewable energy projects consolidated order book.
from the Middle East under the Power Transmission & The order book registered a growth of 19.8% on a y-o-y
Distribution business, Electrification Work package for basis, mainly with the receipt of some high-value orders
Mumbai-Ahmedabad High-Speed Rail, and a road project during the year. Around 77% of the total order book
in Mumbai in Transportation Infrastructure, a couple of comprises orders received from Indian Central and State
orders in ferrous metal space, a major order from Ministry Governments (including local authorities) and State-owned
of Defence in the Precision Engineering & Systems business, Enterprises (both domestic and international). The private
a mega order in the Offshore vertical, and few ultra-mega sector has marginally declined and has a share of 23% of
orders in the Onshore vertical of the Hydrocarbon business. the total order book as on March 2024, as against 25% as
With higher ordering in the Energy segment primarily on March 2023. Of the domestic order book, 29% of the
due to CapEx acceleration in the Middle East region, the orders are funded by multilateral agencies.
contribution of the Infrastructure segment in the overall The share of the international order book increased
order inflow has decreased to 47% from 51% in the from 28% to 38% on account of the intake of higher
previous year, while continuing to remain the largest international orders during the year.
segment in the Company’s business portfolio.
Order Book Consolidated Revenue from Operations
Order Book Composition
� crore 19.8% � crore
Revenue from Operations
31975 13981
500000 475809 7%, (7%) 3%, (3%) 20.6%
� crore
Infrastructure
397033 Projects
400000 180861 38% 240000
221113
28% 111779
Energy Projects
300000 118189 200000 183341
25%, (18%)
Hi-Tech
95086 43%
200000 Manufacturing
160000
72% 285254 294948 62% 38% 68787
100000 Others
120000 311665
65%, (72%)
0
As at 31-03-2023 As at 31-03-2024 80000
126027 57%
Domestic International Total Order Book: ₹62% 114554
4,75,809 crore as at March 31, 2024
40000 in brackets relate to previous year]
[Figures

0
2022-23 2023-24
Order Book Composition Domestic International
� crore

31975 13981 L&T Group recorded revenue of � 2,21,113 crore during

7%, (7%) 3%, (3%) FY 2023-24, registering a growth of 20.6%. The growth
Infrastructure
Projects was mainly achieved with the pick-up of execution
38%
momentum in project and manufacturing businesses. The
Energy Projects
118189 composition of international revenue at the group level is at
25%, (18%)
Hi-Tech 43% in FY 2023-24 compared to 38% in the previous year.
Manufacturing
62%
Others
311665
65%, (72%)

2024
Total Order Book: ₹ 4,75,809 crore as at March 31, 2024
[Figures in brackets relate to previous year]

30 Integrated Annual Report 2023-24

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

� crore Segment-wise Revenue

120000

100000

80000

60000

40000

20000

0
Infrastructure Energy Hi-Tech IT & Technology Financial Development
Projects Projects Manufacturing Services Services Projects Others

FY 2022-23 87823 24956 7161 41789 12575 5029 6271

FY 2023-24 114008 29571 8765 44916 13109 5628 8493

During the year, all the segments registered growth over the previous year, with the Infrastructure segment leading the pack.

Operating Expenses and PBDIT Staff expenses for FY 2023-24 at � 41,171 crore
increased by 10.6% over the previous year, reflecting a
combination of manpower ramp-up and salary revisions.
Although, as a percentage of revenue, it decreased by
� crore Operating Expenses and PBDIT
~170 bps during FY 2023-24, consequent upon higher
250000 revenue. The Group continues to focus on productivity
improvements, digitalisation, and manpower optimisation
23494 across its businesses.
200000
10419
20753 Sales and administration expenses at � 10,419 crore
41171
150000
8758 increased by 19.0% over the previous year. This represents
37214 4.7% of revenue, which is almost in line with the
previous year.
100000
The Group’s operating profit at � 23,494 crore for FY
146029 2023-24 registered a growth of 13.2% y-o-y, largely due to
116615
50000
higher business volumes. The EBITDA margin for the year,
however, declined by 70 bps and is at 10.6%.
0
2022-23 2023-24 The impact of additional execution costs incurred in the
Infrastructure segment and higher provisions on contract
Mfg., Construction & Staff Expenses
Operating Expenses assets and customer receivables impacted the Company’s
Sales, Administration & Operating Profit (PBDIT) overall margin. At the same time, cost savings in projects of
Other Expenses
the Energy segment, higher NIM in Financial Services, and
sale of commercial property along with improved ridership
Manufacturing, Construction and Operating (MCO)
in Hyderabad Metro, partially mitigated the impact.
expenses for FY 2023-24 at � 1,46,029 crore increased
by 25.2% over the previous year. These expenses mainly Depreciation and Amortisation Charge
comprise the cost of construction materials, raw materials
Depreciation and amortisation charges for FY 2023-24
and components, sub-contracting expenses, and interest
increased to � 3,682 crore from � 3,502 crore in the
costs in the Financial Services business. This represents
previous year, registering an increase of 5.1%, mainly
66.0% of revenue as compared to 63.6% in the previous
reflective of higher CapEx spending in recent years.
year, mainly on account of cost overruns encountered in a
few projects and changes in job mix.

31
 Overall Financial
Review

Profit Before Interest and Tax

Segment-wise composition of PBIT for FY 2023-24 is represented below:

� crore Segment-wise PBIT

9000
8000
7000
6000
5000
4000
3000
2000
1000
0

Infrastructure Energy Hi-Tech IT & Technology Financial Development

Services Services Projects Others
Projects Projects Manufacturing
FY 2022-23 5140 2067 995 7215 2259 392 1103
FY 2023-24 5721 2701 1140 7659 3028 1015 1508

The segment-wise PBIT registered improvement over the previous year across all businesses. The PBIT of Development Projects
is higher during the year primarily due to a non-recurring gain on the sale of commercial property in Hyderabad Metro.

Other Income of the Financial Services, partially offset by a one-time

This mainly consists of interest, dividend, and gains charge on remeasurement of the wholesale loan assets of
from treasury operations. Other income at � 4,158 crore the Financial Services segment at fair value.
improved by 42.0% over � 2,929 crore for the previous
year, reflective of gain on sale/fair valuation of investments Consolidated Profit after Tax and EPS
and efficient treasury operations. Consolidated Profit after Tax (PAT) at � 13,059 crore for
FY 2023-24 increased by 24.7% over the previous year at
Finance Cost � 10,471 crore. The increase is mainly due to growth in
The interest expenses for FY 2023-24 at � 3,546 crore revenues and improved treasury operations.
were higher by 10.6% over � 3,207 crore for the previous Consolidated Basic Earnings per Share (EPS) for FY 2023-24
year. The increasing average borrowing at a group level at � 93.96 improved over the previous year at � 74.51.
was partly offset by the reduction in the borrowing in
Hyderabad Metro. The interest cost for FY 2023-24 was Return on Consolidated Net Worth
higher by 30 bps as compared to the previous year. The Consolidated Net Worth, as on March 31, 2024, at
� 86,359 crore, reflects a net decrease of � 2,967 crore,
Tax Expense
as compared to the position as on March 31, 2023. The
Income Tax charge for FY 2023-24 was higher at � 4,947 Return on Net Worth (RONW) for FY 2023-24 was higher at
crore by 10.3% compared to � 4,484 crore in the previous 14.9%, compared to 12.2% in the previous year, mainly on
year on higher taxable income. account of higher profits and share buyback.
Exceptional Items Liquidity & Gearing
Exceptional items during the year mainly comprise gain on Cash flow from Operations (including change in loans
the divestment of stake in L&T Transportation Infrastructure and advances towards financing activities) for FY 2023-24
Limited, a subsidiary of L&T IDPL and reversal of impairment decreased to � 18,266 crore as compared to � 22,777 crore
of investment in L&T IDPL. The previous year mainly in the previous year, mainly due to build-up of customer
included a gain on divestment of the Mutual Fund business outstanding and higher contract assets from an increase

32 Integrated Annual Report 2023-24

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

in business volumes. During the year, additional funds Power, partly offset by a higher level of borrowing at the
were generated mainly from the divestment of commercial Parent level. At a group level, the gross debt-to-equity ratio
property in Hyderabad Metro, treasury and dividend income decreased to 1.11:1 as at March 31, 2024, from 1.14:1 as
and investment sales. at March 31, 2023. However, the net debt-to-equity ratio
Funds were utilised mainly for repayment of borrowings of marginally increased to 0.64:1 as at March 31, 2024, from
� 4,513 crore, capital expenditure of � 4,210 crore, and 0.62:1 as at March 31, 2023.
payment of dividend of � 4,217 crore. Further, funds were Details of significant changes in key financial ratios along
utilised for the buyback of equity shares � 12,280 crore with explanation:
(including tax and expenses on buyback) and net interest
In compliance with the requirement of SEBI (Listing
payment of � 3,605 crore (attributable to the level of
Obligations and Disclosure Requirements) Regulations,
Borrowing) during FY 2023-24.
2015, the key financial ratios of the Group have been
Consequently, there was a net decrease of � 4,984 crore in provided hereunder along with the explanation only for
the cash balances as of March 31, 2024, compared to the the significant changes, i.e., change of 25% or more as
beginning of the financial year. compared to the previous financial year:

Consolidated Fund Flow Statement � crore Sr. No Particulars FY 2022-23 FY 2023-24 % Growth
Particulars FY 2022-23 FY 2023-24 (i) Gross Debt 1.14 1.11 2.8%
Equity Ratio
Operating Activities 22,777 18,266
(ii) PBDIT as 11.3% 10.6% -6.1%
Net Divestment 2,670 1,000
% of net
Treasury and Dividend 1,767 2,634 revenue
Income
(iii) Net Working 16.1% 12.0% 25.9%
Sale/(Purchase) of (8955) 2739 Capital % of
investments Sales*
(Excluding
ESOP Proceeds (Net) 10 10
Financial
Decrease/(Increase) in cash (2893) 4,984 Services &
balance Corporate)

Source of Funds 15,376 29,633 (iv) Interest 5.45 5.79 6.2%

Coverage
Capital expenditure (Net) 3,793 4,210 ratio
Repayment of borrowings 4,832 4,513 (excludes
Financial
Dividend Paid 3,091 4,217 Services
Interest Paid 3,047 3,605 and Finance
Lease
Payment to minority interest 613 808 Activity)
(net)
* The significant change in the Net Working Capital % of
Buyback of equity shares Sales for FY 2023-24 has been due to better collections and
(Incl. tax and expenses on - 12,280 efficient working capital management.
buyback)

Utilisation of Funds 15,376 29,633 II. L&T STANDALONE

L&T’s standalone financials reflect the performance
The total Group borrowings as at March 31, 2024, was of Infrastructure Projects, Energy Projects, Hi-Tech
lower at � 1,14,040 crore compared to � 1,18,513 crore Manufacturing, and Others. The Others segment comprises
as at March 31, 2023. The major decrease is in borrowings Realty, Smart World & Communication, Construction
of the Financial Services, Hyderabad Metro and Nabha & Mining Machinery, Rubber Processing Machinery,
E-commerce/digital platforms, and Data Centers.

33
 Overall Financial
Review

Brief Summary of Performance at Standalone Level: There was a net increase of � 133 crore in the cash
balances as at March 31, 2024, compared to the beginning
� crore of the year.
Particulars FY 2022-23 FY 2023-24 % Growth
Fund Flow Statement � crore
Order Inflow 1,49,984 1,71,663 14%
Particulars FY 2022-23 FY 2023-24
Share of 20% 35% Operating activities 7,264 8,294
International
Order Inflow Borrowings/(Repayment of (2,027) 4,232
Borrowings)
Revenue 1,10,501 1,26,236 14%
Sale/(Purchase) of Other (2,904) 4,645
Share of 17% 21% investments
International
Revenue Treasury and dividend 3,035 4,690
income
Order Book 3,30,555 3,71,381 12%
ESOP Proceeds 10 10
Share of 15% 23%
International Sources of Funds 5,378 21,871
Order Book
Capital expenditure (Net) 2,236 2,822
PBDIT 9,295 9,685 4%
Net investment/(Divestment) (352) 151
PAT 7,849 9,304 19%
Dividend paid 3,091 4,217
Net Worth 71,528 64,416 (10)%
Interest paid 2,333 2,268
RONW (%) 11.3% 13.7%
Buyback of shares (Including
- 12,280
EPS (in Rs.) 55.85 66.95 buyback expenses and tax)

Increase/(Decrease) in (1,930) 133

Liquidity & Gearing
cash balance
Business operations generated cash flows of � 8,294
crore during the year, compared to � 7,264 crore in the Utilisation of Funds 5,378 21,871
previous year. The increase is attributable to improved
working capital management. During the year, additional Total borrowings as at March 31, 2024, increased to
funds were borrowed to support an increase in business � 22,540 crore, compared to � 18,151 crore in the previous
volumes. The proceeds from cash generated through the year. The loan portfolio of the Company comprises a mix
sale of investments � 4,645 crore, treasury income of of Rupee and suitably hedged foreign currency loans. The
� 2,041 crore, and dividend income from S&A companies gross debt-to-equity ratio increased to 0.35:1 as at March
at � 2,649 crore have been utilised towards Share Buyback 31, 2024, from 0.25:1 as at March 31, 2023. The net debt
(including expenses and tax) of � 12,280 crore, CapEx ratio as at March 31, 2024, is 0.02:1 after netting off cash
payment of � 2,822 crore, a dividend payment of � 4,217 and cash equivalents.
crore, and interest payment of � 2,268 crore.

34 Integrated Annual Report 2023-24

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

INFRASTRUCTURE
PROJECTS SEGMENT

Artist’s Impression

AIIMS Rewari, Haryana

The Infrastructure Projects Segment comprises the receipt of some residential as well as IT park orders. The
engineering and construction of: Transportation Infrastructure business registered growth
a) Buildings & Factories with the receipt of a prestigious order for electrification
work in the High-Speed Rail project as well as for a few
b) Transportation Infrastructure
road projects. The Heavy Civil Infrastructure business
c) Heavy Civil Infrastructure registered growth on receipt of a few high-value orders for
d) Power Transmission & Distribution Urban Transportation. Power Transmission & Distribution
e) Water & Effluent Treatment business benefitted from the receipt of multiple orders for
f) Minerals & Metals renewable energy projects. Water & Effluent Treatment
business and Minerals & Metals business registered de-
Financial performance of the segment growth over the previous year due to deferment/delay in
finalisation of orders.
Order Inflow Revenue from Operations and OPM%
The share of international orders for the Infrastructure
� crore
� crore
21.7% segment increased to 38% from 22% in the previous year,
29.8%
150000
180000 with the share of the Middle East in overall international
1785
order inflow for the segment remaining at 93% in line with
150000 142589 120000 114008
the previous year.
117119 87823 33845 30%
120000 54641 38% 90000
22% 26184 Order Inflow 22% 19194
Revenue from Operations and OPM%
90000
60000 � crore
� crore
7.0% 29.8%
60000 21.7% 80163 70%
150000
18000078% 90935 87948 62% 30000 1785
78% 68629
30000
150000 142589 120000 6.2% 114008
0 0
120000 2022-23117119 2023-2454641 2022-23 87823 2023-24 33845 30%
38% 90000
22%Domestic
26184 International 22%
Domestic 19194
International OPM%
90000
60000
7.0% 80163 70%
The Infrastructure
60000 segment secured orders worth
78% 90935 87948
� 1,42,589 crore
30000
in FY 2023-24, higher by 21.7% over 62% 30000 78% 68629
the previous year, with the receipt of multiple orders 6.2%
0
across various
0 sub-segments. During the current year, the
2022-23 2023-24
2022-23 2023-24
Buildings & Factories business registered growth with the
Domestic International Domestic International OPM%

35
 Infrastructure
Projects Segment

Hyderabad International Airport, Hyderabad, Telangana

The Infrastructure segment registered revenue of innovative formwork systems. The business’ commitment to
� 1,14,008 crore for FY 2023-24 – a growth of 29.8% over innovation is further amplified by the mechanised project
the previous year. The growth was mainly driven by the execution, a robust network of seasoned consultants and
ramp-up of execution across multiple project sites. Revenue reliable vendors, and a meticulously digitised project control
from international operations constituted 30% of the total framework. Its talented workforce, adept at navigating
compared to 22% in the previous year. complex challenges, contributes significantly to the
The segment’s operating margin for FY 2023-24 declined realisation of iconic structures both in India and overseas.
to 6.2% from 7.0% in the previous year. The decline is The business is organised into the following Strategic
largely reflective of time and cost overruns in multiple Business Groups (SBGs):
jobs coupled with increased provision on contract assets
and customer receivables. Public Spaces, Airports & Factories SBG:
The funds employed by the segment at � 24,048 crore as This SBG consists of the following three businesses:
on March 31, 2024, registered a decline of 2.2% vis-à-vis à The Public Space business undertakes design & execution
March 31, 2023, mainly on account of improved working of iconic projects like statues, museums, stadia, metro
capital management. stations/depots, convention centres, malls, integrated
multi-modal developments, etc., right from concept to
Buildings & Factories commissioning on an engineering, procurement and
construction (EPC) basis
Overview à The Airports business specialises in designing and
constructing airport terminal buildings, along with their
The Buildings & Factories (B&F) business stands at the
associated service structures. The business also provides
forefront of building urban infrastructure, offering end-
integrated airport system solutions, including baggage-
to-end design-and-build turnkey solutions that seamlessly
handling systems, passenger-flow monitoring, passenger
traverse the entire project lifecycle, from concept to
boarding bridges, visual docking guidance systems, and
commissioning. Its expertise extends across sectors such as
other essential facilities
airports, hospitals, stadia, retail establishments, educational
campuses, IT parks, office towers, data centers, high-rise à The Factories business offers comprehensive EPC solutions
structures, industrial warehouses, test tracks, and other with single-point accountability, catering to the needs of
light factory structures. sectors like automobile plants & test tracks, semiconductor
electronics & solar PV manufacturing, glass & paint
Driving the success of the business are dedicated manufacturing, vaccine manufacturing, warehouses, and
engineering design centres, various competency cells, and FMCG products

36 Integrated Annual Report 2023-24

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

Phoenix H10, Hyderabad, Telangana

Health, Residential & Commercial Buildings SBG: Airports

à The Health business provides world-class healthcare The Airport sector is experiencing a dynamic business
infrastructure development, right from concept to landscape with several key trends. First, passenger traffic
commissioning in EPC mode, including medical and has crossed pre-COVID levels, signalling a positive trajectory
paramedical services as well as medical equipment for airport infrastructure development. Second, there is a
à The Residential business is a prime EPC solutions provider growing demand for air travel in tier II and tier III cities as
of elite, affordable, and mass-housing projects. The well, thereby presenting multiple lucrative opportunities
business has expertise in executing high-rise towers and for greenfield airports and expansion/modernisation of
developing mass-dwelling units existing airports.
à The IT Office Spaces & Data Centers business specialises Factories
in end-to-end services, from conceptualisation to
commissioning, for establishing innovative data centers. The factory construction business is experiencing sustained
It also provides turnkey Design & Build solutions for growth driven by orders from private players in response to
Information Technology and office spaces. The business the Government’s impetus to manufacturing through the
also strategically embraces innovative construction Production Linked Incentive (PLI) Scheme.
technologies, including prefabricated prefinished Health
volumetric construction (PPVC), modular construction,
and 3D printing In the hospital infrastructure industry, private investments
are proceeding cautiously, leading to delayed expansions.
Business Environment Notably, many Indian Institutes of Technology (IITs) are
establishing postgraduate medical research institutes
Public Spaces along with super speciality Hospitals. Additionally, the
The Private customer segment has demonstrated robust Government’s plan to set up infectious disease hospital
growth across multiple sectors, including MUD (Mixed Use blocks in all districts has expanded the scope of new
Development), Hotels, and Malls. However, in large-size hospital projects. These developments signal a dynamic
state-sponsored projects, the Government has strategically landscape with potential for growth and innovation in
opted to split high-volume tenders for better price healthcare infrastructure.
discovery. Also, some marquee public projects were delayed
because of lower initial estimates that were not adequately
aligned with the proposed scope of work.

37
 Infrastructure
Projects Segment

India International Convention Centre, Dwarka, New Delhi

Residential Major Achievements

Real estate has seen exponential growth in the previous
Major Orders Won:
year, with residential property sales scaling new highs
amidst rising customer confidence, stable interest rates, à Construction of two residential towers for Oberoi Realty in
and improved affordability. The surge in demand was Thane
witnessed in the upper middle class and luxury segments. à Commercial and residential development for Prestige
New launches and sales in the top 7 cities have registered a Group in Mumbai and Bengaluru
growth of 25% and 31%, respectively, on a y-o-y basis. à Mass Housing development for CIDCO at Navade,
Navi Mumbai
IT OS and Data Center
With the cessation of the Work-from-Home (WFH) culture
à Commercial development for Raheja Group in Hyderabad
over time, the business is seeing growth from many real à Commercial building at four locations in Bangladesh
estate developers wanting to develop premium office à Commercial tower for TAISEI Corporation at BKC (Bandra
spaces. The B&F Fast segment is witnessing significant Kurla Complex), Mumbai
interest in 3D concrete printing technology. Noteworthy à Airport at Bhogapuram, near Visakhapatnam, for GMR
is that the business is executing the world’s largest 3D Airports Infrastructure Limited
concrete printed facility in Chandigarh and also received
an order for constructing villas in Bengaluru using the
à AIIMS hospital and allied infrastructure at Rewari, Haryana
technology. The Data Center business is also gaining à AIIMS hospital and allied infrastructure at Madurai,
traction, not only in India but also in the GCC region. Tamil Nadu
à Al NAMAA General Hospital at Oman
International
à MAHSR C3 High-Speed Railway Stations & Depot
The business has strategically expanded its presence in
the Middle East, capitalising on the economic upswing
à Paint Polymer Manufacturing Plant in Gujarat for
Asian Paints
in Oman. Furthermore, selective opportunities are being
pursued in Saudi Arabia. à Paint Manufacturing Plant in Kharagpur for Birla Paints

Key Projects Commissioned:

à Food Processing Plant in Ahmedabad for JR Simplot India
à Paint Manufacturing Plants for Birla Paints at Panipat,
Ludhiana and Cheyyar, Tamil Nadu

38 Integrated Annual Report 2023-24

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

Flacq Teaching Hospital, Mauritius

à Assam Cancer Care Foundation, Guwahati & Silchar, Assam Bengaluru spans 1000 sq. feet and was built within an
à AIIMS Guntur, Andhra Pradesh impressive 45 days. The project encompasses the entire
spectrum of construction, including structures, MEP
à Delhi International Airport T1 Expansion and Hyderabad
(mechanical, electrical, and plumbing), and finishes.
International Airport Expansion from GMR Airports
Infrastructure Limited Outlook
à India International Convention & Expo Centre (IICC) Public Spaces: Central Government initiatives such as the
Dwarka, IIT Hyderabad Ph2 and IIT Bhilai projects Target Olympic Podium Scheme (TOPS) and the improved
à Statue Of Oneness in Omkareshwar, Madhya Pradesh scenario in the hospitality industry, contribute to existing
à Kalinga Stadium in Bhubaneshwar, Odisha traction in the Public Spaces business. The business is also
actively tracking the expansions of global retailers like
Other Key Achievements: IKEA. Further, prospects from the Central Government in
The business successfully designed and built the Central Vista projects, Mixed-Use Development, and other
Shri Ram Janmabhoomi Temple and was instrumental in the sports redevelopment projects signal a healthy outlook
timely consecration ceremony of Ram Mandir in Ayodhya, for this business.
Uttar Pradesh. Airports: Supportive Government policies such as UDAN
The construction industry has taken significant strides (Ude Desh ka Aam Nagrik) and the Air Cargo Policy are
towards sustainability. Spearheading this transformation, driving investments in various airport projects. While the
CIDCO Kharkopar, CIDCO Bamandongri, and the CIDCO business envisages an uptick in investments from the
Precast yard at Bamandongri have teamed with the Central Government, large airports/expansions from private
Maharashtra Electricity Board to operate entirely on Airport Operators could be deferred. The business is also
renewable energy sources. These initiatives, in addition looking at opportunities in this sector in the GCC region.
to reducing carbon footprint, also set a precedent for Factories: Backed by schemes like the ‘National Policy
other construction projects to follow suit. Furthermore, on Electronics 2019’, the Electronics and Semiconductor
the Prestige Serenity Project at Bengaluru recently industry is expected to grow significantly in FY 2024-
implemented a Power Purchase Agreement – a first in the 25. Major players are looking to set up manufacturing
construction industry for the use of renewable energy for facilities for batteries and semiconductor chips. With
site operations. These milestones underscore the business’ major automobile players actively expanding their existing
commitment to environmental stewardship. production and venturing into Green Energy vehicles, this
B&F is pioneering 3D concrete printing in India by business is seeing healthy prospects in the medium-term.
constructing the country’s first post office building using
this cutting-edge technology. The Halasuru Post Office in

39
 Infrastructure
Projects Segment

Meerut Aligarh Ghaziabad Road Project, Uttar Pradesh

Health: Mega healthcare projects are on the rise with With healthy investment opportunities across public and
the Government accelerating healthcare infrastructure private space anticipated in the medium-term across
development across India. The Central Government’s geographies, the business is well-placed to benefit from the
initiative to establish one medical college in each district improved momentum.
(with a population of 10 lakh people +) has led to
competition among state governments and private players Transportation Infrastructure
to develop medical infrastructure. The Government’s
focus is on improving the bed-to-population ratio in order Overview
to align with WHO norms. Further, many large hospital
redevelopment projects are shaping up across the country. L&T’s Transportation Infrastructure business is one of the
leading contractors in India, offering turnkey Design &
Residential: In the Indian residential building sector, Build/EPC solutions with single-point responsibility for
post-COVID, there has been a consistent year-on-year all kinds of transportation infrastructure such as Roads,
increase in project launches and property sales across the Runways, Bridges, Elevated Corridors, Railways, City Infra,
top 7 cities. Simultaneously, the average inventory has Urban Transit, and Airports. The business is divided into
reached an all-time low of 15 months by the end of the two Strategic Business Groups (SBGs), namely, Railways
previous year. This, coupled with improved affordability, Business Group (RBG) and Roads, Bridges & Formations
stable interest rates, and wealth effect, are contributors to (RBF) Business Group.
medium-term growth.
The Railways Business Group (RBG) is subdivided into
IT OS and Data Center Business: The IT OS and Data Mainline Business Unit (MLBU) and Metro Business Unit
Center Business is well-positioned to capitalise on the (MTBU). MLBU addresses EPC construction works in the
growing demand for Data Center construction in India and domains of civil & trackwork, electrification and system
abroad, leveraging its experience, expertise, and strategic integration, including signalling & telecommunication for all
partnerships to tap into this lucrative market segment while Mainline Railway Projects, Dedicated Freight Corridors, Rail
continuing to serve its clients in the commercial and retail Links for Port, Mining and Power Plant facilities, etc. MTBU
segments as well. carries out EPC construction works involving ballastless
International Opportunities: Projects within the GCC trackwork, electrification, and system integration for all
countries present substantial prospects in the international Mass Rapid Transit System Projects and Regional Rapid
markets as well. Notably, Saudi Arabia offers promising Transit Systems in India and abroad.
opportunities in sectors like airports, data centers, and The Roads, Bridges & Formations (RBF) Business Group
stadia. Further, in Oman, the business is focussed on provides EPC Design & Build Construction services. RBF
projects in the hospitality industry, encompassing both comprises a Roads & Runways (R&R) Business Unit,
hotels and hospitals.

40 Integrated Annual Report 2023-24

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

Eastern Dedicated Freight Corridor (Contract Package 303), Uttar Pradesh

a Bridges Business Unit, and a Formations & Structure The Finance Minister, in the interim budget speech of
Business unit (F&S) with projects currently spanning across FY 2024-25, announced the Government’s focus on
India, the UAE, and Mauritius. The R&R business is involved implementing three major railway economic corridors
in the roads sector, viz. associated structures, cross- – Energy, Port Connectivity, and High Traffic Density.
drainage, toll plaza, wayside amenities, etc.; in the airport The budget allocation in the interim budget FY 2024-
sector, viz. construction of complete airside infrastructure 25 saw the largest ever capital expenditure allocation of
(runways, taxiways, aprons, airfield ground lighting, fuel � 2.52 lakh crore in various areas like rolling stock, track
hydrant systems for international airports, both greenfield augmentation works, electrification, passenger amenities,
& brownfield); and to decongest urban areas, it provides High-Speed Rail, and the Dedicated Freight Corridors.
design and construction solutions for elevated corridors. With an emphasis on the introduction of High-Speed and
The Bridges Business deals with the construction of bridges, Semi High-Speed Corridors, Regional Rapid Transport
both in India and overseas, using ingenious and cutting- Systems, Suburban Rail Systems, first & last mile
edge bridge construction techniques like incremental connectivity projects, modernisation of railway stations,
launching, segmental construction, full span, cable stay, implementation of Automatic Train Protection System
precast & pre-stressed concrete, as well as steel & concrete ‘KAVACH’, manufacturing of Vande Bharat trainsets,
composite construction. The F&S business provides and Electric Locomotives, the sector has been abuzz
construction services for all types of railway civil work in with activities, thereby opening up various opportunities
dedicated freight corridors, high-speed rail, and urban for the business.
railway network projects.
The business has Engineering Design Centres located in Roads, Bridges & Formations
Mumbai, Faridabad, and Chennai. It also has a Competency The total budgetary outlay for infrastructure-related
Development Centre at Kancheepuram and a Workmen ministries increased from around � 3.7 lakh crore in
Training Centre at Ahmedabad. FY 2022-23 to � 5 lakh crore in FY 2023-24, offering
investment prospects for the private sector across the
Business Environment various transport sub-segments. The Government has also
set ambitious targets for the transport sector, including the
Railways Business Group
development of a two lakh-km national highway network
The Railway sector has been on a high growth trajectory and expanding airports to 220 by 2025.
for the past few years. The pace of investment has been
at an all-time high with adequate financial support The aviation sector has seen increased activity in the past
from the Government. ten years. The number of airports has doubled to 149
during this period.

41
 Infrastructure
Projects Segment

Dwarka Expressway, Haryana

The Government is also focussing on developing Key Projects Completed:

new elevated corridor/flyover projects across major The business has completed/commissioned the
cities, with the primary aim of decongesting urban following projects:
roads and highways.
à Bar Bilara Jodhpur Road Project in Rajasthan was
Major Achievements inaugurated in May 2023
à Mukkola Junction to Kerala/Tamil Nadu Border Road
Major Orders Won: Project was completed and received PCOD (Provisional
à Mumbai-Ahmedabad High-Speed Rail – Traction Power Commercial Operations Date) in June 2023
Supply Package (EW1) from National High-Speed Rail
Corporation Limited (NHSRCL)
à RRTS – Priority stretch (Sahibabad to Duhai – 34 TKM) in
Uttar Pradesh was inaugurated in October 2023
à Jakarta Mass Rapid Transit (MRT) Project (Phase 2A)
à Dhaka Metro (Phase 2 – Agragaon to Motijheel – 18 TKM)
(Contract Package CP205) for MRT Jakarta through L&T’s
was inaugurated in November 2023
long-term Japanese partner, Sojitz Corporation
à Palasbari to Sualkuchi Cable-Stayed Bridge across the
à Commercial Operation commenced in the entire section of
283 TKM in the WDFC CP 303 Project (Khurja to Pilkhani
river Brahmaputra in Assam, from Public Works Roads
in Uttar Pradesh – 283 TKM) in November 2023
Department (PWRD), Assam
à Dahisar Bhayandar Bridge in Mumbai, from Municipal
à The complete stretch of the 902 TKM section in EDFC
CP-204, New Bhaupur to Mugalsarai in Uttar Pradesh, was
Corporation of Greater Mumbai (MCGM)
commissioned in December 2023
à Versova Dahisar Bridge in Mumbai, from Municipal
à EDFC CP-105, Dadri to Khurja in Uttar Pradesh, was
Corporation of Greater Mumbai (MCGM)
inaugurated in January 2024
à Bhogapuram Airport in the state of Andhra Pradesh, from
à The Indergarh to Mej River Expressway Project in Rajasthan
GMR Visakhapatnam International Airport Limited (GVIAL)
was inaugurated in February 2024
à Bengaluru Suburban Rail project (Package C4) in
à CTP 14, a portion of the Dedicated Freight Corridor
Bengaluru, Karnataka, from Rail Infrastructure
project, was inaugurated in March 2024
Development Company (Karnataka) Limited (K-RIDE)
à Dwarka Package 3 (Delhi-Haryana Border to Gurugram
(Haryana)) was inaugurated in March 2024
à Dwarka Package 4 (NH248 BB ROB to NH-8 SPR
Intersection (Haryana)) was inaugurated in March 2024

42 Integrated Annual Report 2023-24

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

Western Dedicated Freight Corridor (Civil & Track Package 14), Haryana-Uttar Pradesh

à Delhi International Airport (Phase 3A) was inaugurated in years, there has been a thrust for the development of
March 2024 Semi-HSR Corridor projects, for which Track and Systems
à Meerut Aligarh Ghaziabad Road Project in Uttar Pradesh, packages worth � 25,000 crore are expected to be finalised
completed in March 2024 in the next five years.
à Kanpur & Agra Metro Track package 12 TKM from Further, as part of the development of the Regional Rapid
Fatehabad to Jama Masjid was inaugurated for public Transit System (RRTS), civil packages and system tenders in
operation in March 2024 the next round are expected under the four RRTS corridors
being implemented by the National Capital Region
à A portion of EDFC projects CP 304 & CP 305 – 558 TKM
Transport Corporation (NCRTC).
(World Bank funded) was commissioned in March 2024
à Signalling & Telecom STP-17 (JICA funded) – 488 TKM There is continued thrust on building new and expanding
between New Makarpura to New Gholvad in Gujarat was Metro/MRT Systems to facilitate ease of movement and
completed and in commercial operation since March 2024 reduce carbon footprint. Systems orders are expected to be
finalised across four Metros in the upcoming two years. The
Outlook business outlook for the next five years includes 12 new
projects (450 Km) in the Track and Systems domain.
Railways Business Group
As envisaged under the National Infrastructure Pipeline, Roads, Bridges & Formations
Railway investments revolve around improving track The Government of India has identified roads and highways
capacity and freight efficiency, augmenting the speed of as the ‘go to sector’ for spurring infrastructure investment
trains, enhancing safety, and ensuring better connectivity. in India. It is believed that investments in infrastructure
yield a direct multiplier of over 2.5x on the economy and
Indian Railways (IR) has been actively focussing on network
the roads sector in India has presented itself as a priority
expansion in the past few years. In the Interim Union
recipient of these investments. Over the last decade, there
Budget for FY 2024-25, the railways sector has received
has been more than a 50% increase in the total length of
the highest ever CapEx allocation of � 2.6 trillion, with
highways in the country. The Government’s budget support
many projects aimed at capacity augmentation and traffic
for road infrastructure has also rapidly increased, leading to
decongestion in the IR network.
a budget of approximately USD 31.5 billion for FY 2023-24.
The Government is targeting Rail Line Construction of 20
The Ministry of Road Transport and Highways has requested
km/day in FY 2024-25 to add 45,000 Km of rail route in
a budgetary allocation of � 3.25 lakh crore for FY 2024-25,
the next 8 years, with an estimated cost of � 12 lakh crore,
marking a 25% y-o-y increase.
thereby increasing railways share in overall passenger/
freight movement from 25% to 50% by 2030. In recent

43
 Infrastructure
Projects Segment

Mumbai Coastal Road (Package 1 & 4), Maharashtra

The National Highways Authority of India spent a record Heavy Civil Infrastructure
� 2,07,000 crore in the construction of national highways
in 2023-24, the highest ever capital expenditure so far,
and a jump of 20% compared to � 1,73,000 crore spent in
Overview
2022-23 and � 1,72,000 crore in 2021-22. The Heavy Civil Infrastructure business is a market leader in
EPC projects in the core civil infrastructure segments that
The largest portion of the capital expenditure – equivalent are crucial for the country’s sustainable economic growth
to 24.5% or � 2.7 Tn (USD 33.2 Bn) – has been allocated and development.
to the Ministry of Road Transport and Highways (MoRTH)
in the Interim Budget of FY 2024-25. The Government The business has a strong domestic presence to undertake
increased its allocation to the MoRTH by 2.8% in the FY projects of mega scale and complexity, with an ability to
2024-25 Budget. Higher budgetary allocations will help provide both EPC and turnkey solutions to suit customer
the ministry develop more highways and expressways amid requirements. The domestic market contributes more than
difficulties such as rising interest rates and increasing land 95% of the total revenue of the business.
acquisition costs. Further, the business derives a competitive edge due to
A fair risk sharing between Government and private its dedicated in-house design and technical capabilities,
sectors, as well as an improved dispute resolution competency cells, fabrication facilities, specialised training
mechanism, will encourage public-private participation in centres, and strong resource base consisting of a huge fleet
infrastructure projects. of Plant & Machinery, skilled workforce and a talented pool
of employees.
International Front The business segments include:
While the business continues to focus on neighbouring
a) Urban Transit Infrastructure consisting of Metros, Semi
countries like Bangladesh, it is also strongly examining entry
& High-Speed Rail, Urban tunnels
into ASEAN, the Middle East, and North & East African
countries, where L&T has a strong presence and footprint. b) Nuclear
c) Hydel & Tunnels
Most importantly, the business is targeting only those
d) Ports & Harbours
projects that are funded through secured sources like the
Government of India – Lines of Credit or through Bilateral/ e) Defence Infrastructure
Multilateral funding agencies such as JICA, EBRD, ADB, etc. Urban Transit: As a frontrunner in augmenting urban
transit infrastructure in India, this segment is currently
involved in the construction of various metro rail packages,
both elevated and underground, in Mumbai, Bengaluru,
Chennai, Kolkata, Patna, New Delhi, and in Riyadh, KSA.

44 Integrated Annual Report 2023-24

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

Kudankulam Nuclear Power Plant, Tamil Nadu

The segment is also executing multiple mega packages Ports & Harbours: This sub-segment has extensive
in India’s first High-Speed Rail Corridor, connecting expertise in constructing greenfield ports, shipyard
Mumbai to Ahmedabad. It has deployed the latest high- structures, and seawater intake systems along the
end construction techniques for the construction of country’s coastline. It specialises in offering comprehensive
Full Span Launching Girders, which is a first-of-its-kind construction solutions for various marine infrastructure
being implemented in India. With a view to promoting elements that include breakwaters, berths, jetties, wharfs,
the ‘Aatmanirbhar Bharat’ initiative, in-house fabricated dry docks, and shore protection structures. Currently, the
equipment like Straddle Carrier, Launching Girders, and business has a presence in Tamil Nadu, Kerala, Andhra
Girder Transporter are being used in the construction of this Pradesh, and Maharashtra.
prestigious project. Defence Infrastructure: L&T has established a pre-
The business also undertakes Semi High-Speed Rail eminent position in shoring up the country’s defences.
construction and has successfully completed a portion of The Defence Segment offers single-point EPC solutions,
the Delhi-Meerut RRTS project during the year. from concept to commissioning, for various defence
Hydel & Tunnels: The Hydel sub-segment offers establishment infrastructure facilities in India.
comprehensive turnkey construction solutions for L&T GeoStructure Private Limited, a wholly-owned
hydroelectric dam projects, barrages, pumped storage subsidiary, is a pioneer in the ground engineering space
plants, and complex irrigation projects. Presently, the and is engaged in foundation and ground improvement-
business is executing projects in Madhya Pradesh, Assam, related projects. It has a strong, professional, and
Arunachal Pradesh, Uttarakhand, and Jammu & Kashmir. specialised team with knowledge of design, equipment,
In the Tunnels segment, the business is executing and methods to execute and supervise sophisticated
two major rail tunnel packages connecting Rishikesh- foundation works. The business has expertise in deep
Karnaprayag, Uttarakhand. piling and diaphragm walls, multi-cellular intake wells
for river-linking, marine terminals with berths, jetties,
Nuclear: The Nuclear sub-segment undertakes civil and deep cut-off walls.
construction works for nuclear power plants. It has
expertise in the construction of Pressurised Heavy Water Business Environment
Reactors (PHWRs) and Light Water Reactors (LWRs) The Government is keen on developing core infrastructure
in addition to Natural Draft Cooling Towers (NDCTs). that is crucial for economic advancement, as evidenced
Currently, the business is engaged in the construction of by the enhanced budgetary allocation in the Union
nuclear power plants and associated facilities in Tamil Nadu, Budget. The capital expenditure outlay for the FY 2024-
Maharashtra, and Rajasthan. 25 has increased by 11.1% to � 11.1 trillion, equivalent
to 3.4% of GDP.

45
 Infrastructure
Projects Segment

Mumbai-Ahmedabad High-Speed Rail Project

Urban Transit a nuclear power reactor every year. The nuclear power
India’s metro network is expanding at an unprecedented capacity is expected to increase from 7,480 MW to 22,480
pace, with construction work currently in progress covering MW by 2032. Even though large-scale plants remain
about 990 km across various cities. With the focus on the main focus for the country, the Government is also
sustainable development, continual expansion of our exploring options for Small Modular Reactors (SMRs), with
cities, and the realisation of greater first-mile and last-mile effectiveness and feasibility studies and collaboration with
connectivity, India’s metro systems have the necessary other countries.
prioritisation from the Government. With over 12 corridors
Ports & Harbours
proposed in the National Rail Plan, High-Speed Rail projects
are also being prioritised. Newer technology of hyperloop, SagarMala, a flagship programme of the Ministry of
more sustainable high-speed transportation, is also being Ports, Shipping and Waterways, aims to promote port-led
considered in the country, with an MoU being signed development of the country. According to the Ministry,
between India and Switzerland. With the aim of alleviating as many as 800 projects have been identified as a part
city traffic congestion and improving connectivity between of the programme, including Port Modernisation & New
cities, many tunnel projects are also being prioritised Port Development and Port Connectivity Enhancement,
by the Government. which will result in increased capacity and world-class
infrastructure at Indian ports. With Indian regulation
Hydel encouraging private sector involvement in the sector, the
India’s commitment at COP26 held at Glasgow in 2021 was Ministry has identified around 80 Public Private Partnership
for the creation of 500 GW non-fossil power generating (PPP) Projects, valued at � 42,300 crore, set to unfold
capacity by 2030 and the Government is taking steps by FY 2024-25.
to increase investment towards offshore wind, pumped
Defence
storage, hydel power, nuclear power, etc. Pumped
Storage Plant (PSP) projects are considered as one of The Government is focussing on building new capacities
the first priorities amongst all energy storage systems to and upgrading existing defence infrastructure with an
facilitate the achievement of this goal. The Government’s increased budget allocation to the Ministry of Defence. This
prioritisation of mega hydel projects in Northeastern states will lead to the creation of opportunities in various Defence
and J&K also signals a promising business landscape. Infrastructure projects.

Nuclear International
As part of the country’s efforts to achieve a cleaner The business is exploring opportunities in the Middle East
energy transition, Nuclear Power Corporation of India and SAARC countries with prospects visible in the Urban
Limited (NPCIL) is currently on a mission to commission Transit, Ports, and Harbours businesses.

46 Integrated Annual Report 2023-24

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

Mumbai Coastal Road (Package 1 & 4), Maharashtra

Major Achievements Other Key Achievements:

Major Orders Won:
à Successful completion of 100 km of superstructure
erection in Mumbai-Ahmedabad High-Speed Rail (MAHSR)
à Mumbai-Ahmedabad High-Speed Rail (MAHSR) C3 C4 project with cumulative concrete pouring of 50 lakh
project – Construction of 135.45 km stretch of the cubic metre
prestigious Mumbai-Ahmedabad High-Speed Rail Project,
including construction of viaducts, stations, major river à India’s first 30 m U-Girder span in metro construction
placed successfully in Chennai Metro Rail
bridges, depots, tunnels, earth structures, stations, and
Ltd. (CMRL RT-01)
other auxiliary works
à Orange Gate Tunnel – Design and construction of an à Record tunnelling of 37.4 m in a single day and an average
of 450 m/month per TBM of 9.1 m dia. in RVNL Package 4
Underground Road Tunnel Project between Orange Gate,
Eastern Free Way to Marine Drive Coastal Road at Mumbai à Head Race Tunnel breakthrough three months ahead of
schedule at 120 MW Lower Kopili HEP in Assam
à Kolkata Metro – Design and Construction of an
Underground Metro Project connecting the Joka –
Outlook
Esplanade Metro Corridor in the city of Kolkata
According to CRISIL, India is expected to spend nearly
à Patna Subway Tunnel – Construction of a 1.5 km
� 143 lakh crore on infrastructure in the next seven fiscals
pedestrian tunnel connecting Patna Museum and
through 2030, more than twice the ~ � 67 lakh crore spent
Bihar Museum, between Bailey Road and Chajju Bagh
in the previous seven fiscal 2017 to 2023, with a primary
in Patna, Bihar
focus on Urban Transit, Renewable Energy, and Ports.
Key Projects Completed: The upcoming phase of infrastructure development is set
to witness an increase in the average project size and a
à Mumbai Trans Harbour Link (MTHL 1) – India’s longest
notable increase in mega-scale projects. The Government
sea bridge (connects South Mumbai with Navi Mumbai),
is also striving to encourage private and foreign investment
spanning nearly 22 km, was inaugurated in January 2024
through various initiatives such as a liberalised FDI policy,
à Mumbai Coastal Road Project Phase 1 (MCRP) – This fiscal incentives, and measures such as PM Gati Shakti and
ambitious project was inaugurated in March 2024 the National Single Window System (NSWS) to improve
à Delhi Meerut RRTS Lot 1 – A leap in India’s urban transit ease of doing business.
infrastructure. The project was inaugurated in March 2024
With India’s aim to achieve Net Zero by 2070, the country
has to focus on green construction technologies in future
infrastructure projects. Faced with rapid urbanisation,
the Government is considering the implementation of

47
 Infrastructure
Projects Segment

90 MW Floating Solar Project, Omkareshwar, Madhya Pradesh

Mass Transit Systems such as Metro/Metro Lite/Metro Storage, Microgrid, and Hybrid Renewable Projects.
Neo/Personal Rapid Transit System in Tier 1 and Tier 2 There are very few players with such strong experience
cities as an initiative, part of the green mobility drive to and expertise in handling different module technologies,
reduce the country’s carbon footprint in the fight against module mounting structures, and storage types.
climate change. With a strong push towards green energy The business group has accumulated in-depth engineering
initiatives, including favourable policies and incentives, the and construction know-how to execute a vast range of
business has unprecedented opportunities in the Hydro, renewable projects, be it hybrid, floating or linear, with
Nuclear, and Pumped Storage Sectors and an opportunity best-suited technologies for terrain type and tracking. The
to contribute meaningfully to India’s sustainable round-the-clock renewable energy required by emerging
energy transition. load centres such as Data Centers and Green Hydrogen
plants can be effectively provided by the business, with its
Power Transmission & wide-ranging capabilities in Solar PV Plants, Battery Energy
Distribution Storage Systems, Energy Management Systems/SCADA,
Wind Balance of Plant, and grid elements.
Overview The container integration facility at Kancheepuram
L&T’s Power Transmission & Distribution business vertical augments the capabilities of the business with an annual
is a major EPC player, providing technology-focussed, capacity to integrate ~ 400MWh of battery energy storage
end-to-end solutions for enabling access to clean, reliable system with associated intelligent management and control
electricity. It offers integrated EPC services and related systems. In addition to India, the Renewables SBG has
digital solutions, starting from the establishment of Solar a major presence in Saudi Arabia and the United Arab
PV plants to smart & efficient transmission and distribution Emirates.
networks to last-mile electrification. It serves Renewable The Transmission & Distribution (Domestic) business
Energy Developers, Utilities, Industrial, and Infrastructure group caters to various T&D utilities and developers,
customers in 30 countries across the SAARC, ASEAN, the along with the bulk power supply consumers like
Middle East, Africa, North America, and CIS regions. metros, airports etc.
The business is broadly organised into four major groups, The Substation business unit provides turnkey solutions
viz., Renewables SBG, Transmission & Distribution for Extra High Voltage (EHV) air-insulated/gas-insulated
(Domestic) SBG, International Transmission & Distribution substations up to 1200kV, Flexible AC Transmission Systems
Business Units, and the Digital Energy Solutions business. (FACTS) devices such as Static Synchronous Compensator
The Renewables business group is a single-stop EPC (STATCOMs) and Static VAR Compensator (SVCs), Digital
service provider globally for GW-scale Solar PV, Energy Substation related solutions, and EHV cable systems.

48 Integrated Annual Report 2023-24

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

500kV Pulah Indah Olek Lempit Transmission Line, Malaysia

The Transmission Line business unit provides complete The Africa business unit has executed several landmark
EPC solutions for overhead transmission lines. It is well projects in Algeria, Egypt, Morocco, Kenya, Ethiopia,
integrated with the digitally driven, sustainability-focussed Tanzania, Uganda, Botswana, Mozambique, and Malawi. It
tower manufacturing units, which have a combined has made further inroads into Western & Northern Africa
capacity to produce more than 1 lakh tonnes of tower with ongoing projects in Guinea, Cameroon, and Tunisia.
components per annum. The Kancheepuram manufacturing With the regional offices strategically located in Nairobi and
facility also houses the world-renowned Tower Testing and Casablanca to serve the vast continent, the business has
Research Station, which provides its design and testing earned a coveted position with a sizeable market share in
services to clientele from 33 countries. the addressable segment.
The Power Distribution business unit has been at the In the ASEAN region, L&T is an established international
forefront of distributing electricity in an efficient manner T&D player, holding a portfolio of prestigious projects
to all, by providing a range of EPC services related to spread across Malaysia, Thailand, Myanmar, and the
urban/rural electrification, augmenting, reforming, and Philippines. The offices in Kuala Lumpur, Bangkok,
strengthening of high voltage and low voltage distribution and Jakarta serve as the touchpoints for the electricity
networks, power quality improvement works, and advanced companies in the region.
distribution management solutions. The Digital Energy Solutions arm of L&T’s Power T&D
The International T&D business units provide the entire business provides electricity-related consulting and digital
spectrum of power T&D-related services in the Middle East, solutions globally through its ‘Spark’ platform, and a
Africa, and ASEAN regions. multitude of software products and solutions. Its cutting-
Over the past three decades, the Middle East business unit edge offerings include hybrid energy management systems,
has earned a strong reputation among the utilities and oil energy storage controllers, substation data platforms,
companies in Saudi Arabia, UAE, Oman, Qatar, Kuwait, power system cyber security needs, etc. Driven by powerful
and Bahrain, having executed several marquee projects. It algorithms and simulations, the solutions offered by this
enjoys an enviable track record and garners a significant unit enable customers across India, the Middle East, and
share of T&D projects awarded every year. the USA to build resilient future-ready systems.

Larsen & Toubro Saudi Arabia LLC (LTSA), a wholly- The Power Transmission & Distribution business vertical
owned subsidiary, provides engineering, construction, aims to provide a green technology path to clean energy
and contracting services in the sphere of transmission & transition in India and abroad while providing customers
distribution in Saudi Arabia. and prosumers with the highest standards of reliability,
availability, and efficiency of power transmission and
distribution networks.

49
 Infrastructure
Projects Segment

400kV Ottapidaram, Tamil Nadu

Business Environment à 75MW Floating Solar order in India

A vibrant renewable energy market in the Middle East à 765kV Transmission Lines related to the integration of
provides ample opportunities coinciding with a plethora Renewable Energy Zone in Karnataka
of Power Transmission & Distribution related projects. à 400kV Transmission Line orders in Jharkhand and
This makes up for the relatively subdued environment in Chhattisgarh
India and Africa. Further, these opportunities come with à Receiving and Auxiliary Substations with SCADA for
significantly higher package sizes, thereby aiding effective Chennai Metro Corridors 3 & 5
resource utilisation and facilitating volume growth. Due to
ongoing disturbances in the Red Sea, the supply chain was à Distribution Infrastructure improvement projects in
Rajasthan and Gujarat
impacted to an extent. However, the execution of projects
has largely continued unhindered. à Upgradation of SCADA (Supervisory Control and Data
Acquisition) at Transmission Asset Managing Centres for
The domestic Renewable Energy space is characterised
monitoring and control of 275 EHV Substations in India
by self-EPC execution by developers, land acquisition
requirements, and e-reverse auctions. Selected à A 400kV Substation and 3 Nos. 132kV Substation
opportunities were pursued with specific customers in niche packages in UAE
areas, such as Floating Solar Plants. à 400kV Transmission Line packages in UAE and Kuwait
As the domestic power distribution space was fraught à 8 Nos. 132kV Substations in Kuwait
with aggressive customer estimates and a fragmented à Substation packages from the ongoing network expansion
contractor base, the addressable opportunities were phase in Qatar
relatively lesser, for which the business was very particular.
The recent revival of the order finalisation of transmission
à 525kV HVDC Transmission Line package in Saudi Arabia

line packages for renewable energy evacuation provided a à 380kV Substations and Overhead Line packages in
welcome relief. Saudi Arabia
à 275kV Substation and Underground Cable laying order in
Major Achievements Malaysia

Major Orders Won: à Certain Advanced Grid Services and Energy

Consulting Services in the USA for the Digital Energy
à 2.8GWp Solar PV Plant EPC orders in the Middle East
Solutions business
à An integrated order involving Renewable Generation,
Power, and Water Utilities for an ultra-luxury tourism
destination in Saudi Arabia

50 Integrated Annual Report 2023-24

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

400kV JNHPP Chalinze Transmission Line, Tanzania

Projects completed and commissioned: Outlook

à 1.8GWp Sudair Solar Plant in KSA Renewable electricity has emerged as the preferred source
à 15 Substations and 1409 CKM of overhead transmission of energy in varied applications and industries. Significant
lines in the Middle East investments for enhancing renewable energy capacity are
à 5 Substations and 420 CKM of transmission lines in Africa witnessed in both developed and emerging economies.
Novel solutions involving a spectrum of renewable
à 138 CKM of 500kV transmission lines in the ASEAN
technologies, including wind and energy storage, are
region, including the Tallest Transmission Tower in Malaysia
being integrated for solar generation. This proliferation of
that entered the ‘Malaysia Book of Records’
renewable energy goes hand in hand with the multi-fold
à 50 GIS bays in Thailand expansion of transmission grid infrastructure.
à 220kV Transmission Line and two Substations in Nepal at The GCC countries have set ambitious renewable energy
high altitudes addition plans for 2030, which are backed by action on
à 400kV Substations & Transmission Lines in Tamil Nadu and the ground. Besides diversification of fuel mix, renewable
Uttar Pradesh energy for Green Hydrogen is another major driver. Our
à 220kV Substation & Transmission Line in West Bengal reputation and relationships with the major developers in
the region are expected to fuel the growth of the business
à Improved Distribution Infrastructure by adding 1531 Ring
in the adjacent regions as well.
Main Units and 1450+KM of cable conversion in Uttar
Pradesh, West Bengal, Haryana, and Jammu In specific countries of Africa and ASEAN, the business will
à 35MW Solar Plant with 57MWh Battery Energy Storage leverage its proven track record, established relationships
System in Gujarat with various stakeholders, and ability to access the project
finance market in order to pursue select opportunities
Significant Initiatives arising from Just Transition initiatives, grid interconnection
requirements, and renewable proliferation.
à Initiated a global strategic partnership with Dell
Technologies for synergistic use of high-end computing In India, a significant increase in the capacity of solar
power with software solutions for energy utilities module manufacturing in the past year will improve
à Memorandum of Understanding (MOU) signed with input costs and delivery timelines, given the compulsory
IIT Indore for Advanced Research & Development in requirement to meet Approved List of Models and
renewable energy integration and control technologies Manufacturers (ALMM) stipulations. Further, the tendering
of the on-the-ground and floating solar plants by the
à Innovation in anchoring & mooring methods for floating
Central and State Public Sector Enterprises will be the
solar projects
mainstay in the coming years.

51
 Infrastructure
Projects Segment

Water Treatment Plant at Nashik, Maharashtra

765kV Transmission Line and Substation opportunities, India and at various international geographies. The business
mainly for the purpose of renewable energy evacuation, is recognised for its successful implementation of large-
will continue to provide stable order inflow in the medium- scale projects nationally and globally, delivering clean
term, besides HVDC corridors and Metro Rail projects. From water, sanitation facilities, and efficient treatment processes
select DISCOMs, distribution modernisation opportunities for the community. These efforts not only enhance public
such as Loss Reduction Works and Supervisory Control health and quality of life but also promote economic
and Data Acquisition (SCADA)/Advanced Distribution growth and sustainable development.
Management System (ADMS) packages are expected to The business has a unique Water Technology Centre (WTC)
gain momentum. in Kancheepuram, near Chennai, which has state-of-the-art
The ability to provide a range of advanced physical and laboratories to develop solutions for the ongoing/emerging
digital solutions, including Dynamic Reactive Power challenges in the Water sector.
Compensation, Hybrid Energy Management Systems, and L&T’s Water & Effluent Treatment business is structured into
EV Charging Infrastructure at scale, gives the business an three verticals:
edge over competitors.
(i) Water & Wastewater
The influx of orders coupled with ramped-up execution and
efficient working capital cycle provide a strong ground for (ii) Irrigation, Industrial, and Infrastructure
improved return ratios in the business. (iii) Water International
The Water & Wastewater business vertical provides
Water & Effluent Treatment water solutions to the municipal water sector. In the
potable water arena, it undertakes projects that encompass
Overview sourcing, treatment, transmission, storage, and distribution
L&T’s Water & Effluent Treatment (WET) business is a for the entire value chain, from intake to households. In
technology-driven EPC business dedicated to delivering the municipal wastewater segment, projects involve the
comprehensive solutions in the water space, through best- collection and conveyance of sewage, pumping stations,
in-class project management, technological capabilities, and wastewater treatment, including the treatment of
and treatment process know-how. The business caters to sludge to the highest standards and generation of power.
varied customer segments for municipal water (potable The Irrigation, Industrial, and Infrastructure business
& waste), irrigation, industrial water, desalination, and vertical caters to the needs of the irrigation and industrial
smart water infrastructure by implementing treatment sector by providing a wide variety of water solutions,
plants, storage & pipeline networks for water supply & including mega & micro irrigation, treatment of industrial
wastewater, irrigation, and industrial applications across effluent, plant water systems, and water infrastructure

52 Integrated Annual Report 2023-24

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

Varanasi Sewage Treatment Plant, Uttar Pradesh

for smart cities. Desalination projects are also undertaken Major Achievements
by this vertical.
Major Orders Won:
The Water International business vertical focusses on
providing complete water solutions in the markets of à Ballia Water Supply Project, Uttar Pradesh
the Middle East, East Africa, and SAARC (South Asian à Firozabad Water Supply Project, Uttar Pradesh
Association for Regional Cooperation) countries. à AMAALA Utilities Water Package, KSA

Business Environment à Chittorgarh Package I Water Supply Project, Rajasthan

With the Government’s focus on water infrastructure

à Mega Lift Irrigation Project Cluster XXII & XXV in various
Districts, Odisha
development, the business foresees significant
market opportunities in the Urban Water & Water à Southwest Guwahati Water Supply Project, Assam
Management, Wastewater, Industrial & Desalination, à Effluent Treatment Plant for Talcher TPP Stage III,
and Irrigation sectors. NTPC, Odisha
The business faces industry-specific challenges, including Major Projects Commissioned:
intense competition from established players and
More than 10 million people benefitted from the
new entrants, workforce shortages, commodity price
commissioning of 32 projects during FY 2023-24. Some of
fluctuation, and cost escalations. Despite these challenges,
the major projects commissioned during the year are:
the business remains resilient and actively addresses these
headwinds through improved productivity and timely à Ranchi Smart City, Jharkhand
project implementation with exceptional quality and safety à Gangadhar Meher Lift Irrigation Project, Odisha
standards, thereby meeting stakeholder expectations. à Shivhar Water Supply Scheme, Uttar Pradesh
In the Middle East region, the water demand is expected à Diggian Sewage Treatment Plant, Chandigarh
to grow significantly as huge spending is envisaged in
the areas of desalination and treatment of wastewater &
à Coimbatore Sewage Treatment Plant, Tamil Nadu
industrial effluents. The conscious pursuit of value-accretive à Chhatarpur Water Supply Scheme, Madhya Pradesh
opportunities in the Middle East is a risk mitigation to a à Jawai Water Supply Project, Rajasthan
high-growth but commoditised domestic market. à Sauni L3P8, Gujarat
à 30 MLD Common Effluent Treatment Plant, Gujarat
à Zanzibar Water Supply Project, Tanzania

53
 Infrastructure
Projects Segment

Gangadhar Meher Lift Irrigation Scheme, Bargarh, Odisha

Significant Initiatives seamless collaboration across departments, enhance

visibility into all aspects of project management, and
Multiple strategic initiatives were implemented during the
mitigate risks proactively
financial year with an enhanced focus on digitalisation,
mechanisation, and technology to make the business
more future-ready in its quest to stay ahead in the
Outlook
competitive market. The business is predominantly a B2G company with many
state government departments as its clientele. The growth
à With a focus on operational excellence, the business
of the business is highly dependent on the policies of the
implemented precast/hybrid construction methods (Intake,
central and state governments. In the Interim Government
Pumphouses, Elevated Storage Reservoirs, and House
Budget for FY 2024-25, the Central Government has once
Service Connections) across various projects to address the
again emphasised its vision of making India ‘Viksit Bharat’
shortages in skilled manpower
by 2047, thereby underscoring the importance of the
à Predictive analytics incorporated in tendering based various welfare schemes for its citizens, which, in turn,
on historical data to estimate optimised tender Bills is expected to further drive opportunities in the Water,
of Quantity (BOQ) with accuracy & speed, which has Wastewater, and Irrigation sectors. Additionally, the Jal
substantially reduced manual efforts and improved Jeevan mission (Har Ghar Jal) that aims to provide piped
tendering efficiency water to every rural household will continue to provide
à Aerial survey using drones, extensive usage of ArcGIS opportunities in the arena of potable water infrastructure
software for auto-zoning of villages & volumetric and ancillary services.
calculations for large areas, Gap Information Monitoring On the International Business front, the Middle East
App (GIMS), and House Service Connection app are some (especially the Kingdom of Saudi Arabia) presents new
other key initiatives undertaken on the engineering & business horizons with ongoing mega-development
execution front projects. The business will collaborate with strategic
à The Incident Potential Rate (IPR) dashboard helps monitor partners to leverage opportunities that are aligned with
project execution and facilitates risk evaluation in real- regional priorities and economic growth initiatives.
time. This AI/NLP-enabled platform has fast-tracked
Domestic competition remains fierce with a low entry
management intervention that facilitated quick decision-
barrier and emergence of new entrants, due to which
making, resource planning, and mobilisation, culminating
innovation and technological advancements become critical
in a better EHS environment at the projects
for sustained business growth.
à The business has piloted the ‘Integrated Project
Amidst these opportunities, challenges like commodity
Management System (IPMS)’ in a few projects to foster
price volatility and increased cost pressures persist

54 Integrated Annual Report 2023-24

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

Alumina Refinery Expansion Project at Vedanta Lanjigarh, Odisha

across the industry. The business will focus on strategic Business Environment
planning and improved risk management practices
to counter these challenges. Domestic Business
Currently, India is the second-largest crude steel
Minerals and Metals producer in the world. Domestic steel consumption has
witnessed consistent robust growth, driven by sectors like
infrastructure, automotive, construction, and consumer
Overview goods. In FY 2023-24, the cumulative production of
L&T’s Minerals & Metals (M&M) business offers complete crude steel was above 140 MT, registering a growth
EPC solutions for the Minerals & Metals sector across of 11% on y-o-y basis.
targeted geographies. The business undertakes end-to-
end engineering, procurement, manufacturing, supply, Similarly, India’s annual steel consumption was ~130
construction, erection, and commissioning of projects, MT for FY 2023-24, recording a growth of 8% over the
covering the complete spectrum from mineral processing to previous year. The Government’s impetus on infrastructure
finished metals. development and the ‘Make in India’ initiative have
played a significant role in boosting metal consumption.
The business also offers comprehensive product solutions Improved volumes coupled with better realisations have
with an array of customised Mineral Crushing Equipment helped the metal industry to substantially de-leverage its
and Plants for varied applications, surface miners, material balance sheets and have paved the way for a fresh CapEx
handling, high-speed railway construction equipment, investment cycle.
steel plant machinery, and other custom-made critical
equipment & complex assemblies catering to core industrial The discovery of lithium deposits for the first time in the
sectors including mining, steel, ports, fertilisers, cement, country is likely to fuel industry growth. Further, with the
chemical plants, etc. Central Government approving the lithium mining auction
proposal, private companies will be able to participate in
The complete range of product solutions is backed by such tenders. The same is expected to enhance business
five decades of knowledge & experience, in-house design prospects in the non-ferrous segment as well.
capabilities, and state-of-the-art manufacturing facilities,
providing after-sales product support and value-added With all these positives, major metal manufacturers are in
& cost-effective services to ensure higher uptime. The the process of CapEx expansion, which should augur well
manufacturing centres are in Kansbahal, Odisha and for the business.
Kancheepuram, Tamil Nadu.

55
 Infrastructure
Projects Segment

Bucket Wheel Stacker reclaimer for JSW Dolvi, Maharashtra

International Business and has successfully secured repeat orders for Surface
Minerals & Metals has found renewed focus in the Middle Miners from African markets, and expects the momentum
East as countries keep funnelling investments to new to continue in the medium-term.
mineral exploration & conversion to metal as part of their The business has some unique solutions in mining and
long-term strategy. Driven by the need to diversify beyond stockyard equipment, which will be pursued across the
oil, investments in mega-to-giga infrastructure projects/ African continent and other international markets as well.
factories are on the anvil as the GCC region is embarking
The demand for core products (like Crushing Systems,
on an actionable road map to exploit its other mineral
Surface Miners, Material Handling Equipment, High-Speed
resources, led by the Kingdom of Saudi Arabia.
Rail Equipment, and Port Cranes) is primarily driven by
The Middle East is emerging as a major transit centre for movement in the following industrial sectors:
setting up low-carbon emission Iron & Steel hubs and is
Cement Sector: The cement segment in India is expected
attracting investments by offering low gas prices, lower
to grow at a CAGR of 5%-6% over the medium-term,
power tariffs, and flexible policies.
with large investments in greenfield and brownfield
New opportunities are expected in aluminium, gold, projects. Major cement players in the country are
phosphate, copper, and new-age minerals as sponsors undertaking ambitious expansion plans to capitalise on
evaluate the likely approach to embark on setting up new this growth potential.
plants, as well as expanding existing facilities to cater to
It is estimated that the Indian cement industry is likely
increasing demand.
to add ~30 MT capacity in FY 2024-25, majorly due
In Africa, investments in Minerals & Metals continue to be to the growth in housing, industrial, commercial and
a mainstay, since many of the countries are rich in a wide infrastructure projects.
variety of valuable minerals/resources. However, challenges
Mining & Steel Sector: The spurt in capacity
around the speed and scale of implementation limit the
augmentation of steel plants and continued augmentation
entry of the business to offer complete services.
of capacities in coal and iron ore to cater to the growing
Product Business steel and power demand have increased the business
potential for Surface Miners and Skid Mounted Coal
The outlook for the Product business is positive, with
Crushers. New investments in coal-based thermal power
the user industry poised for growth, driven by the
plants have also led to an increase in the business potential
Government’s focus on the development of infrastructure
for equipment ranges covering crushers, stacker reclaimers,
and housing construction activities. The business has been
plough feeders, etc.
actively pursuing prospects in select international markets

56 Integrated Annual Report 2023-24

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

Freight Handling Facilities for Etihad Rail, UAE

The current year also witnessed increased order inflow for Major Achievements
Surface Miners, Apron Feeders, Stacker Reclaimers, Wagon
Tipplers, Paddle Feeders, and Coal-Crushing Equipment Major Orders Won:
from the above sectors. The momentum is expected to With increased demand and growth in industrial sectors
continue in the coming years, with promising growth plans domestically, the following are a few highlights &
for the mining and steel players. prestigious orders received:
Construction Sector: Growth in infrastructure projects à New 5 MTPA Blast Furnace at Dolvi, Maharashtra,
drives growth in Aggregate Crushing solutions. Enhanced for JSW Steel
budget allocation for roads and highway projects in à 5 MTPA Steel Melt Shop augmentation at Dolvi,
FY 2024-25 will further ensure tremendous growth Maharashtra, for JSW Steel
opportunities for Aggregate Crushing solutions.
à Upgradation of Blast Furnace ‘G’ at Tata Steel, Jamshedpur
Port Sector: The port segment in India is expected to
experience significant growth due to various Government
à 160 KTPA Zinc Roaster 6 Package at HZL Debari, Rajasthan

initiatives aimed at promoting port-led development, like à A large order from ArcelorMittal Nippon Steel India (AM/
NS) for ten Stacker cum Reclaimers
the SagarMala initiative and Maritime India Vision 2030.
Steady growth of 7% y-o-y basis is evaluated in container à Order from Mahanadi Coalfields Limited (MCL) for six
traffic expected till 2030, with Government and private Surface Miners
players investing in the expansion of container terminals. à Highest-ever orders for twenty Stacker Reclaimers in a year
The business has signed a license agreement with à Limestone crushing plant orders from Adani Cement
Konecranes, Finland, to manufacture and supply à An order for a Crushing Plant from Dalmia Cement
technologically advanced cranes for Indian ports and
shipyards. The business has started the supplies of the
à First 300T Goliath Gantry Crane from Hindustan
Shipyard Limited
first order of ELLs (Electric Level Luffing Cranes) for
Cochin Shipyard Limited in the current year. With good Key Projects Commissioned:
prospects in the pipeline from all major players in Ports
and Shipyards, FY 2024-25 holds good potential for locally
à Inaugurated CHP Dudhichua Phase-III in Madhya Pradesh,
10 MTPA CHP for Bhubaneswari Coal Mining Limited in
manufactured equipment. Odisha, 7.5 MTPA CHP for North Urimari Birsa Coal Mine
in Jharkhand, and 15 MTPA Lajkura Projects in Odisha
à Alumina Refinery Expansion Project at Lanjigarh, Odisha,
has been commissioned
à 1st Slab Caster for Tata Steel at Kalinganagar, Odisha

57
 Infrastructure
Projects Segment

General Cargo Berth II for Kamarajar Port, Chennai, Tamil Nadu

à Aluminium refinery expansion for Hindalco at Tikri, Odisha Outlook

à Achieved a historic milestone of the 1000th Apron Feeder The developed countries in Europe, the USA, and Japan are
supplied to Shree Cement relocating their steel production capacity to Asian countries
à Largest capacity 1100TPH Aggregate Crushing export due to economic and environmental concerns. India, with
order supplied to JSW-Fujairah in UAE huge iron ore reserves, will be the major beneficiary of this
à Three Sets of High-Speed Rail equipment supplied in a diversification strategy, coupled with increased domestic
record time of 9 months production and consumption needs due to its rapid
economic expansion.
à Three Drum Coolers supplied to Hindustan Zinc Limited as
a successful import substitute on a repeat basis Auctioning and privatisation of mines drive more
investments in mineral beneficiation & pelletisation of iron
à Mansourah-Massarah Gold Project in the Kingdom of
ore, which provides value-added and environment-friendly
Saudi Arabia
products to Iron & Steel plants both in India and facilitates
à Freight Handling Package for Etihad Rail in UAE exports. Iron & Steel capacity expansions by all major Indian
companies are on track, buoyed by domestic consumption
Significant Initiatives: demand and elevated margins.
à Implemented Wrench Software, a central system which
Aluminium and Zinc in the non-ferrous sector are
enables live project management
witnessing capacity expansions in all the existing plans by
à Developed in-house Steel Structural Software System for the major players like Hindalco, Vedanta, and HZL.
managing 2 lakh metric tonnes of Structural Fabrication &
Erection per annum The Minerals and Metals sector in the Middle East is
emerging as a major investment destination due to low
à Smart Health Station [An IOMT (Internet of Medical
energy costs and investment-friendly policies and financing
Things)-based Health Station] to enhance health
options, which coincides with their vision of expansion to
monitoring of employees, including workmen
non-oil areas. Expansion in freight handling and related
à Steel frame Plastic Shutter panels to replace plywood & infrastructure across the countries in the Middle East
hardwood to improve productivity and quality besides is also witnessing increased investments, mainly in the
being environmentally friendly UAE and Oman.

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ENERGY
PROJECTS
SEGMENT

Modularised Reformer for a Blue Hydrogen project in Rotterdam, Netherlands

The Energy Projects Segment comprises:

Revenue from Operations and OPM%
a) Hydrocarbon Business Order Inflow
� crore � crore 18.5%
b) Power Business >100% 1785
35000
90000
c) Green Energy Business 29571
75000 73788 28000 24956
Financial performance of the segment
60000 17159 58%
21000 39% 9691
Revenue from Operations and OPM%
45000 Order Inflow 64321 87% 10.0%
� crore 30750 � crore 14000 18.5%
30000 1785 15265
61%
>100% 35000
90000 61% 18676 7000 12412 42%
15000 29571
75000 39% 12074 73788 28000 9.1%
9467 13% 0 24956
0
2022-23 2023-24 2022-23 2023-24
60000 17159 58%
21000 39% 9691
Domestic International Domestic International OPM%
45000 10.0%
64321 87% 14000
30750
30000 The Energy
61%
segment’s
15265
revenue at � 29,571 crore for the
61% 18676 year
7000 grew by 18.5% y-o-y due to a pick-up
12412 in42%
the execution
15000
momentum, 9.1%mainly in the Hydrocarbon business. The
39% 12074 9467 13%
0 0
Power business registered a decline due to a tapering order
2022-23 2023-24 2022-23 2023-24
book. The share of international revenue in FY 2023-24 at
Domestic International the segment level wasInternational
Domestic higher at 58% compared
OPM% to 39%
in the previous year on the execution of large international
The Energy segment achieved order inflows of � 73,788 projects in the Hydrocarbon business.
crore in FY 2023-24, registering a substantial growth of The segment’s operating margin increased to 10.0%
more than 100% over the previous year on robust ordering from 9.1%, mainly due to cost savings and favourable
momentum from the Middle East region, leading to an award of claims.
increase in the share of international orders from 61% in
the previous year to 87% in FY 2023-24. The receipt of Funds employed by the segment as on March 31, 2024, at
multiple ultra-mega international orders in the Hydrocarbon � 5,792 crore, increased by 34.7% over the corresponding
business aided the order inflow. number as on March 31, 2023, mainly due to an increase in
contract assets in some large value projects.

59
 Energy Projects
Segment

Oil Production Deck Module for Saudi waters

Hydrocarbon Business The business caters to clients across the hydrocarbon value
chain through the following business verticals and units:
Overview Offshore
The Company’s Hydrocarbon business provides integrated The Offshore business offers lump sum turnkey EPCIC
‘design and build’ turnkey solutions for the hydrocarbon (Engineering, Procurement, Construction, Installation,
industry across multiple geographies. The business executes and Commissioning) solutions for wellhead platforms,
projects encompassing all functions, such as engineering, riser platforms, process platforms, accommodation
procurement, fabrication, construction, installation, project platforms, subsea pipelines, brownfield developments,
management, and asset life management services. decommissioning projects, deepwater structures, manifolds,
Backed by cutting-edge innovation, the business has as well as transportation and installation services to the
integrated capabilities across the value chain, supported global offshore oil & gas industry.
by in-house Front-End Engineering Design (FEED), The Offshore business has its dedicated comprehensive
project management, procurement, modular fabrication in-house engineering capabilities offering ‘Fit for Purpose’
facilities, Onshore and Offshore construction, installation, engineering solutions, which cover the complete project
and commissioning. life cycle, from concept to commissioning. As a one-stop
Modular fabrication facilities of the business are located solution EPCIC player, it also has in-house fabrication
primarily in India and the Middle East; at Hazira (near facilities which focus on quality and timely dispatches. Own
Surat), Kattupalli (near Chennai), and Sohar in Oman to marine assets comprise a self-propelled heavy-lift-cum-
serve the respective adjacent markets. pipe-lay vessel – LTS 3000 – held through a joint venture
and a wholly-owned pipe-lay barge – LTB 300 – that helps
In India, the Engineering, Procurement, and Project
expedite offshore installations, besides ensuring on-time
Management centres are located in Mumbai and Vadodara.
completion of projects.
Overseas, the business presence is predominantly in the
Middle East—spanning Kuwait, Algeria, Qatar, and the As a contractor of choice for both domestic & international
UAE—with a regional centre of excellence for Engineering markets, the Offshore project management team
and Project Management situated in the Kingdom of Saudi delivers complex offshore projects in a time-bound
Arabia. The business has set up a Piping shop and a Heavy manner with the utmost quality standards in a safe and
Wall Pressure Vessel Manufacturing shop at Jubail Industrial incident-free environment.
Zone to support the KSA In-Kingdom Total Value Add
(IKTVA) services.

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Dual Feed Cracker Block Unit (DFCU) for HRRL, Barmer, Rajasthan

Onshore EPC Onshore Petrochemicals and Fertilisers

This business provides end-to-end EPCC (Engineering, Recently, a separate SBU has been carved out from
Procurement, Construction, and Commissioning) solutions the Onshore vertical to significantly focus on emerging
for the oil & gas industry, offering turnkey solutions across opportunities due to significant developments in the
the hydrocarbon value chain covering refining, oil & gas downstream petrochemical and fertiliser sectors, such as
processing, petrochemicals, fertilisers, cryogenic storage, Liquid to Chemicals, Blue Ammonia, and Urea projects.
LNG, pipelines, and terminals, including storage tanks and
underground cavern storage systems for LPG. Modular Fabrication
It also offers innovative construction solutions, such The Modular Fabrication business specialises in supplying
as automated welding (double-sided tandem SAW for plants & modular systems built as solutions for the
horizontal joints and Semi-Auto FCAW for vertical joints), Offshore, Onshore Oil & Gas, and Offshore Wind Farm
NDT (Non-Destructive Testing), and Automated UT industries, with the capability to deliver modules
(Ultrasonic Testing) for LNG Tank construction yielding high up to 6,600 MT.
quality and productivity, enhancement of high deposition Its dedicated engineering & project management expertise
submerged arc welding process for duplex stainless-steel is extensive and draws strength from the EPC businesses
material in pipelines, new line of gas regulators for reduced for both Offshore and Onshore projects. Offshore solutions
gas wastage, and automatic pipe fabrication shop with encompass structures and modules for Oil & Gas and Wind
cutting edge technologies. Farm projects, including Deepwater Subsea structures,
The business has a track record of concurrent execution Oil & Gas manifolds, Jack-up rigs, and Mobile Offshore
of multiple ultra-mega & mega projects successfully, both Production Units (MOPU). Onshore offerings cover Process
in domestic and international markets, with different & Piperack modules, skids, structures, Static Equipment/
technology process licensors. The world-class in-house Pressure Vessels and Columns, Modular Specialty
Engineering Centres offer design and engineering services Furnaces, and Prefabricated Control Rooms/Substation
for onshore hydrocarbon plants, pipeline projects, and Buildings (E-houses).
onshore oil & gas field development projects with a World-class modular fabrication facilities are strategically
complete spectrum of FEED, process, detailed engineering, located at Hazira (India’s West coast), Kattupalli (India’s
project management services, procurement assistance, and East coast), Sohar (Oman), and Jubail (KSA). The combined
related services. annual capacity for fabrication is estimated at about 60
The business will continue to provide engineering and million manhours or 2,00,000 MT (depending on the
related services to the hydrocarbon industry in the domestic product mix). The Heavy Wall Pressure Vessel manufacturing
and international markets. facility, along with an operational pipe fabrication shop
in KSA, primarily caters to the local requirement of

61
 Energy Projects
Segment

Residue Upgradation Facility (RUF) for HPCL, Vizag, Andhra Pradesh

offshore and onshore projects while developing skills in Asset Management

the Kingdom of Saudi Arabia to support the country’s The Asset Management business delivers differentiated and
localisation programme. value-added services across a wide spectrum of solutions to
Modular Engineering capability also includes tailored ‘Print Hydrocarbon and allied Process Industries.
to Build’ solutions for technology companies, particularly These comprehensive Asset Management Solutions cover
in renewables and decarbonisation. The business is operation, maintenance, performance enhancement,
delivering modules globally, covering significant regions and health assessment of critical assets. This business
such as North America, Europe, Africa, the Middle East, complements the organisation’s EPC Project offerings for
Asia, and Australia. mutually beneficial engagement with clients over the entire
lifecycle of assets.
Advanced Value Engineering & Technology
Services (AdVENT) The comprehensive Operations & Maintenance Outsourcing
Leveraging expertise in high-end engineering and execution model covers Consulting and Asset Integrity. It can also
of large-scale, technologically complex EPC projects over include Asset Performance Improvement & specialised
several decades, and collaborating with well-organised R&D services based on the needs of customers.
centres and renowned institutions, the AdVENT business Offshore Wind
unit delivers customer-centric solutions for various elements
of the value chain of the hydrocarbon industry. The vision of accelerating sustainable energy solutions
is the driving force behind the Offshore Wind Business,
AdVENT’s technical capabilities and agility enable it to which offers one-stop EPCI (Engineering, Procurement,
offer associated tailored value engineering solutions. Construction, and Installation) solutions for HVAC/
Its offerings to clients encompass full-spectrum HVDC substations, and Wind Turbine foundations in both
engineering–from concept to commissioning. It also fixed and floating structures across the globe—from Far
provides EPC Project Solutions, Integrated Modular East, to Europe, and the USA. The business has strong
Solutions, Refinery Technology Solutions, and Sustainable multidisciplinary teams, partnerships with key industry
Waste-to-Energy Solutions. stakeholders, and a robust network of suppliers backed
AdVENT also focusses on technology-backed chemical by state-of-the-art fabrication facilities in Oman and India
industries, which are now ramping up investments in the operating on the principle of ‘Think Global Act Local’.
chemical sector and reducing dependence on imports. The business is also partnering with electrical technology
These chemicals are the building blocks of high-value companies and collaborating with floating foundation
industrial end products. technology providers and other key stakeholders to offer a
comprehensive solution.

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

Jubail Industrial Gas Network, KSA

Business Environment demand for clean energy, supportive governmental policies,

technological breakthroughs, and an expanding global
India’s energy demand is poised to increase significantly,
market. The growth is being fuelled by advancements
fuelled by strategic investments and initiatives such as the
in technology, improvement in infrastructure, and
USD 67 billion plan in the next 5-6 years to bolster the
viability of projects.
domestic gas sector. Furthermore, the impending transition
towards green energy is evident through initiatives like the International competition for EPC primarily emanates
Green Hydrogen Standard, backed by substantial incentives from Korean and European EPC companies. The business
and agreements for green hydrogen production in states has diversified its exposure to more regions like Australia
like Maharashtra, Rajasthan, and Odisha. and Europe, leveraging technological solutions, and
enhancing productivity to mitigate risks while maintaining
Integrated outsourcing of Operations & Maintenance gains
competitiveness as it takes on new competitors. The
momentum, with Vedanta Limited-Cairn and ONGC leading
business remains proactive in deploying measures to ensure
the change.
cost leadership and focus on improved productivity.
GCC-based oil companies are investing heavily in gas
Digital transformation in optimising operations, enhancing
compared to oil. Geopolitical events have affected
efficiency, improving safety, and increasing innovation is an
businesses both positively and negatively. Oil & Gas prices
ongoing effort with the adoption of Artificial intelligence
have remained significantly buoyant, enabling the oil
(AI) and Machine Learning (ML).
companies in the Middle East to maintain their investment
appetites. However, challenges continue to persist with
regard to supply chain disruptions resulting from the
Major Achievements
ongoing conflicts in the Red Sea and Russia/Ukraine. Major Orders Won:
India’s expertise in speciality chemicals and the potential à EPCI order for new offshore structures, secured from a
extension of PLI schemes to the chemical and petrochemical prestigious client in the Middle East
sectors indicate promising growth prospects. Additionally, à Contract from a prestigious client in the Middle East for
investments in coal gasification projects, viability gap engineering, procurement, and construction of large Gas
funding for such projects, and the tripling of the Ammonia Compression Plants consisting of Gas Inlet Facilities, Gas
market by 2050 underscore significant opportunities Compression Systems, Produced Water Handling, Propane
in the sector. Refrigeration Systems, Condensate Transfer, and Utilities
Globally, the Offshore Wind market is poised to play a for Gas Compression Facilities in new onshore facilities and
pivotal role in helping nations transition to Net Zero and its integration with existing Gas Compression Plants
decarbonise life. This sector is witnessing exponential à Saipem & Clough JV (SCJV), Australia, has awarded
growth, propelled by a confluence of factors viz. escalating a contract for the fabrication and supply of process

63
 Energy Projects
Segment

Central Processing Facilities for Sonatrach project, Algeria

and piperack modules for a 2.3 MMTPA urea plant for isolation valve (MLIV) stations running parallel to the
Perdaman Chemicals and Fertilisers Pty Ltd existing pipeline corridor
à Order from a prestigious client in the Middle East for
Projects completed
EPC for an ultra-mega Gas Processing Plant consisting
of Inlet Separation Facilities, Booster Compression à Mechanical completion and gas-in achieved for Re-route
System, Amine Gas Recovery Unit, Dehydration Unit, Gas and Condensate Pipeline Midyan Duba Project
Mercury Removal Unit, NGL Recovery Unit, and Sales à Successful completion of Performance Guarantee Test
Gas Compression System in new onshore facilities and Run (PGTR) for all three sites of the South-West Gas Fields
its integration with existing Gas Processing Plants Development (SWGFD) Project, Algeria
à EPCI contract for a new large offshore platform and à Commissioning of New Strategic Gas Export Pipeline
brownfield integration work with existing facilities from a (NSGEP) for KOC, Kuwait
prestigious client in the Middle East à Commissioning of Replacement of Hydraulic ESD Systems
à Contract from Indian Oil Adani Ventures Limited, project for a client in the Middle East
including engineering, procurement, construction, and à Mechanical completion of Replacement of 11 BERRI
commissioning of offsite tankages, bullets, and other Pipelines project for a client in the Middle East
associated facilities on a lumpsum Turnkey basis
à Delivery of Linde Rotterdam HMU (Hydrogen
à Order from Oil & Natural Gas Corporation (ONGC) for Manufacturing Unit) Project
the MHN TCPP PGC BGC Project (MTPBP) off India’s
West Coast for engineering, procurement, construction,
à Construction of Fuel (Hydrogen) and Utility facilities
(Nitrogen/Oxygen) completed at Jubail, KSA for
installation, and commissioning of new Process Gas Air Products
Compressor (PGC) modules at ONGC’s Mumbai High &
Tapti offshore locations, along with the upgrade of existing Significant Initiatives
facilities to enhance production
à EPC contract for an Enclosed Ground-Flare System and Productivity Enhancement
demolition of existing facilities, reducing flame and smoke The business is implementing strategies geared towards
visibility to the nearby ongoing large-scale residential streamlining processes, eliminating redundancies, and
developments from prestigious clients in the Middle East empowering its workforce to maximise productivity.
à Gas Pipeline project from a prestigious client in the Value Engineering
Middle East comprising engineering, procurement,
and construction of two new 56” Pipelines along with Embracing value engineering practices is paramount
associated scraper receivers and launchers and main line to reducing quantities, leading to a competitive

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LNG Storage Tanks for Adani Dhamra LNG Terminal, Odisha

business strategy. Good value engineering entails Middle East underscore a promising market trajectory for
standardisation, templatisation, rework avoidance, surplus the business in the medium-term.
management, and resource optimisation to drive efficiency The Indian government’s focus on the ‘National Coal
and minimise costs. Gasification Mission’ aims to curtail dependence on imports
Digitalisation and Automation by utilising coal to create value-added products, further
supported by an incentive allocation of � 8,500 crore.
Recognising the pivotal role of technology, the business Additionally, initiatives aimed at increasing the share of
is making substantial investments in digitalisation and Gas in India’s energy mix to 15% by 2030, coupled with
automation initiatives. These encompass 4D visualisation, the development of a robust National Gas Grid, present
critical path integration, construction ability simulation, avenues for growth and diversification.
material handling studies, interactive VR simulations, AI/ML-
based video analytics, predictive analytics, and increased For the Offshore industry, the Indian government’s recent
yard automation to enhance operational efficiency focus on enhancing energy security has unlocked 99% of
and accuracy. Generative AI will be used over time to previously restricted areas within India’s Exclusive Economic
enhance productivity. Zone (EEZ) for oil exploration and production (E&P).
Previously, 42% of the EEZ was off-limits, but now only 1%
Smart Procurement remains restricted, presenting significant opportunities.
The business is adopting smarter procurement practices ONGC continues to press ahead with its deepwater
to optimise resource utilisation and enhance cost- exploration and production plans, buoyed by sustained
effectiveness. This involves the implementation of high oil prices. It intends to develop more than 25 offshore
e-procurement platforms, data-driven decision-making facilities and lay more than 1000 Km of subsea pipelines
processes, vendor consolidation, spend analysis, and in the next three years with investments of USD 7.3 billion
fostering strategic supplier partnerships to drive value and spread across both the West and East coasts.
efficiency across the procurement chain.
There is a considerable demand for Value-Added Services
Outlook like Consulting, Shutdown and Turn-around Management,
Performance Improvement, Asset Integrity Services, etc.
The opportunity landscape of India’s refining capacity
currently stands at approximately 250 MMTPA, with With a strategic focus on asset monetisation and value
ongoing additions of 40 MMTPA capacity, coupled with maximisation, coupled with increased capital expenditure
value-added petrochemical units. Anticipated investments in upstream projects, the Middle East region is poised
in Refinery-Petrochemical integration and the pursuit of for growth, especially in the downstream processing of
achieving targeted Net Zero emissions in India and the crude to chemicals.

65
 Energy Projects
Segment

New Strategic Gas Export Pipeline for Kuwait Oil Company, Kuwait

The business expects Saudi Aramco to continue its countries like Korea and Taiwan. Offshore Wind is also
investment spending in the medium-term. Due to supply- gaining momentum in India with the announcement
side capacity constraints, which were affecting the of 30 GW capacity by 2030. Government initiatives for
completion schedule of various projects, Saudi Aramco the allocation of offshore wind blocks are setting the
has temporarily paused investment in the increment ecosystem in motion.
programme. Once a few of the ongoing programmes With dynamic market conditions, the business remains
achieve significant progress, the increment CapEx steadfast in its commitment to a customer-centric
programme should be revived. Overall, as per the guidance approach, prioritising innovation, driving sustainable
released by Aramco, even in this revised scenario, there is growth, and fostering competitiveness to achieve the
an increase of up to 20% CapEx growth to USD 58 billion mission of ‘Execution Par Excellence.’
expected for 2024, with 60% of this investment in the
Upstream sector. Financial performance of the business
Qatar Energy intends to boost its LNG production capacity
from the current 77 MTPA to 126 MTPA by 2026 and plans Order Inflow
� crore
to contribute 40% of global LNG demand by 2029. It is
>100%
continuing with expansion under its USD 12 billion North 90000
Field Production Sustainability programme. 80000
70901
OPEC expects an increase in oil demand over the next 70000
two years, which will be met by crude supply from 60000
non-OPEC+ producers. 50000
40000 64140 90%
Commitment to offshore wind energy with the formation 29080
30000
of Offshore Wind Business, the business is participating
20000 64% 18608
in global tenders for key developers. In Global Offshore
Wind Capacity, the European market has renewed 10000
36% 10472 6761 10%
urgency to replace fossil fuels with renewables. There is 0
2022-23 2023-24
a strong demand for renewable energy in the US as well
Domestic International
(Inflation Reduction Act).
Globally, new wind power installations are projected to The Hydrocarbon business achieved order inflows of
exceed 100 GW in 2026, with an additional 680 GW of � 70,901 crore in FY 2023-24, registering a growth of
new capacity expected to be added in the next five years. more than 100% over the previous year with the receipt
Additionally, there are business opportunities in Far East of two ultra-mega orders from Saudi Arabia and a mega

66 Integrated Annual Report 2023-24

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

Flue Gas Desulphurisation (FGD) system at India’s first ultra-supercritical thermal power plant, Khargone, Madhya Pradesh

order from the domestic client. The share of international Power Business
orders also improved from 64% in the previous year to
90% in March 2024 with the receipt of ultra-mega orders
in Saudi Arabia.
Overview
L&T is one of the leading EPC players offering turnkey
solutions for both Coal and Gas-based power plants. These
Revenue from Operations and OPM%
solutions encompass every aspect of design, engineering,
� crore 27.1% manufacturing, construction, and project management.
1785 In addition to undertaking turnkey projects, it also offers
35000 equipment and other services for power plants.
30000 26526 The business has developed its own capabilities in
25000 executing large and complex power projects. These include
20868 17143 65%
20000 engineering, state-of-the-art manufacturing facilities, a
9292
45% 10.3%
15000 competent manpower pool, and decades of experience
9.9%
10000 earned in executing large & complex projects within and
5000 55% 11576 9383 35% outside India. The business has a proven track record of
0 delivering complete power plant solutions with scale and
2022-23 2023-24 sophistication to meet India’s growing energy needs.
Domestic International OPM% The business also executes combined cycle and
cogeneration power projects based on LNG, Natural Gas
The Hydrocarbon business recorded revenue of � 26,526 and/or liquid fuel on a turnkey basis. It has an excellent
crore for the year, registering a growth of 27.1% y-o-y, track record in implementing projects for utilities,
due to a pick-up in execution momentum, mainly in the refineries, and Independent Power Producers (IPPs) in India
Offshore vertical of the business. The share of international and overseas. With extensive experience of over three
revenue in FY 2023-24 was higher at 65% of the total decades in executing EPC contracts for Combined Cycle
revenue as compared to 45% in the previous year, with a Power Plants (CCPP) and Cogen plants, the business has
higher opening international order book. numerous references, deploying gas turbines sourced from
The operating margin of the business increased to 10.3% major leading Original Equipment Manufacturers with Gas
from 9.9%, mainly due to cost savings arising out of Turbine (GT) sizes ranging from 30 MW up to the most
improved execution in a few international and domestic advanced GTs to date.
jobs, further aided by the reversal of provisions on the The business has built on its core competencies and
receipt of a favourable arbitration award in a legacy project. capabilities and has emerged as a major player in emission

67
 Energy Projects
Segment

2x660 MW Shree Singaji Thermal Power Plant (Stage-II), Madhya Pradesh

control technologies such as Flue-gas Desulphurisation L&T Howden Private Limited, a joint venture with
(FGD) in the Indian thermal power plant industry. It now Howden Holdings B.V, is in the business of regenerative air
has a sizeable presence in the FGD business. preheaters and variable pitch axial fans (equipment, after-
The business has an integrated manufacturing facility at market spares and services) for power plants.
Hazira, Gujarat. It is one of the world’s most advanced L&T-Sargent & Lundy Limited, a joint venture with
facilities, having a manufacturing capacity of 5,000 MW Sargent & Lundy LLC, USA, is engaged in the business of
per annum. providing design, engineering, and project management
The facility manufactures ultra-supercritical/supercritical services for power projects.
boilers, turbines & generators, pulverisers, axial fans and
air preheaters, components of FGD, and electrostatic
Business Environment
precipitators. The business has project management offices The thermal power sector is witnessing a revival after
in Vadodara and various other locations. around three years amidst the continuing transition of
India’s power generation mix. With increasing economic
The business has the following Joint Venture (JV) companies activity, high GDP growth, industrial expansion, and power
within its fold: demand growing to record levels, many utilities are feeling
L&T-MHI Power Boilers Private Limited, a joint venture the need to fast-track the brownfield expansion of their
with Mitsubishi Heavy Industries (MHI), Japan, the world’s existing coal-based thermal power projects.
leading power equipment maker, for the engineering, In FY 2023-24, EPC coal-based power projects with a
designing, manufacturing, erection, and commissioning of cumulative capacity of around 7 GW were awarded.
ultra-supercritical/supercritical boilers up to a single unit of Currently, around 10 GW of projects are in various phases
1,000 MW. of tendering. This establishes that for sustained energy
L&T-MHI Power Turbine Generators Private Limited, a security, thermal power generation is going to co-exist with
joint venture with Mitsubishi Heavy Industries (MHI), Japan renewable energy for a longer period than envisaged – till
and Mitsubishi Electric Corp. (MELCO), for the manufacture India achieves its Net Zero Target by 2070.
of Steam Turbine Generator (STG) equipment of capacity The gas-based power generation sector in India remains
ranging from 660 MW to 1,000 MW. The Company is muted due to high fuel costs despite an improvement
engaged in the engineering, design, manufacture, erection, in the supply and distribution network for natural gas.
and commissioning of ultra-supercritical/supercritical Approximately 24 GW of installed/commissioned gas-
turbines and generators. based power plants in India are idling due to high costs

68 Integrated Annual Report 2023-24

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

Boiler manufacturing facility at Hazira, Gujarat

of generation. The Government of India has no plans to Significant Initiatives

increase gas-based power generation.
In line with the energy transition and sustainability
However, to meet the anticipated surge in power requirements, the business formed a Technology Task Force
demand during the upcoming summers, the government (TTF) to identify, incubate, and implement new technology
has mandated the activation of the existing gas-based opportunities to make the organisation resilient. TTF has
power plants across the country and has issued directives finalised a few focus areas like Carbon Capture Technology,
to make these plants fully operational to meet the Small Modular Reactors, Flexibilisation in Coal based
surge in power demand. power plants, Coal Gasification, Integrated Gasification
Combine Cycle (IGCC), and Biofuel/Ammonia/Methanol
Major Achievements firing in Supercritical Power Boilers, etc. The business is
Some of the major achievements by the business during the also expanding into adjacencies like providing Life Cycle
year include: Solutions (Spares and Services) to customers, which will
cater to other OEM machines as well.
à Flue Gas Desulphurisation System for a 2 x 500 MW
Central Utility Project inaugurated in West Bengal To improve profitability and on-time execution of
à FGD orders received from State Utilities for a 2 x 300 MW projects, the business introduced various Operational
+ 2 x 500 MW Power project in West Bengal and a 1 x Excellence initiatives. To improve productivity and
800 MW Power project in Gujarat reduce profit leakages, various digital and analytical
levers such as Artificial Intelligence (including Machine
à Completion of facilities for three FGD units of Central
Learning), IoT-isation, Immersive Technologies like
Utility Projects in Chhattisgarh, Madhya Pradesh,
Virtual Reality, BIM, Drones, Process Automation, and
and Odisha
Business Intelligence & Analytics have been imbibed
à Reliability Test Run completed for three FGD units of into the day-to-day operations. The focus on achieving
Central Utility Projects in Chhattisgarh, Madhya Pradesh, QEHS (Quality, Environment, Health & Safety) excellence
and Uttar Pradesh remains of prime importance. It has also accelerated
à Final Acceptance Certificate received for an International the usage of digital levers to increase the efficiency and
Combined Cycle Project in Bangladesh productivity of operations.
à Auxiliary Boiler Light Up achieved for a 2 x 660 MW Power
Project in Uttar Pradesh

69
 Energy Projects
Segment

Turbine manufacturing facility at Hazira, Gujarat

Outlook The Power business recorded an order inflow of � 2,870

crore for the year ending March 31, 2024, registering a
India is continuing to see a surge in energy demand and
growth of 71.8% as compared to the previous year, largely
an increase in the Plant Load Factor (PLF) of thermal power
aided by the receipt of a few FGD orders.
plants to maintain the country’s energy security amid rising
demand. As per estimates fromInflow
Order the Ministry of Power, the
Revenue from Operations and OPM%
capacity
� crore
additions in thermal power will continue up to � crore
71.8% power projects are
2032. More than 49 GW of coal-based (25.6%)
4000 to be awarded in the next 3-4 years. 6000
expected
3500 5000 4090
Focus on execution and improvement in profitability
2870 of
3000 3044
operations continue to remain critical for the 165
continuity
6% 4000
2500business. 1670 10% 399
of the 16
3000 1%
2000
Financial 68
performance of the business 8.7%
1500 4% 2705 94% 2000 90% 3691
1000
96%
Order Inflow
1602 1000
Revenue from Operations and 3028
OPM%99%
� 500
crore � crore 6.5%
71.8% (25.6%)
40000 60000
2022-23 2023-24 2022-23 2023-24
3500 5000 4090
Domestic 2870
International Domestic International OPM%
3000 3044
165 6% 4000 10% 399
2500 1670
The Power business revenue at � 3,044 crore 16declined
3000 1%
2000
68
25.6% on a y-o-y basis, with tapering of execution of jobs
in the portfolio and 8.7%
1500 4% 2705 94% 2000 90% 3691a declining order book.
1000 The operating margin improved to 8.7% from 30286.5%,
99%
96% 1602 1000
500 mainly due to the6.5%
cost savings in certain international gas-
0 based
0 projects.
2022-23 2023-24 2022-23 2023-24
Domestic International Domestic International OPM%

70 Integrated Annual Report 2023-24

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

Green Hydrogen Plant at L&T’s A. M. Naik Heavy Engineering Complex in Hazira, Gujarat

Green Manufacturing & LTEGL aims to undertake complex and mega projects in the
hydrogen value stream of renewable power, hydrogen, and
Development derivatives (Ammonia, Methanol, DME, etc.) generation,
storage, and transportation infrastructure. LTEGL would
Overview undertake extensive research and development (R&D)
L&T’s Green Energy business affirms the Greener activities through its Technology & Innovation centres
Planet vision by aligning with the initiatives of global and assess the best global technologies, acquire strategic
decarbonisation and the National Green Hydrogen Mission interests, licensing in technologies aligned with green and
(NGHM). It focusses on a green energy portfolio to meet new energy opportunities.
the domestic and global future energy needs while L&T Electrolysers Limited (LTEL), a subsidiary of LTEGL, is
achieving the global climate goals. the manufacturing arm for modular & mass manufacturing
To achieve this vision, L&T Energy Green Tech Limited of smart, efficient, and reliable electrolysers. Electrolysers
(LTEGL), a wholly-owned subsidiary of Larsen & Toubro are hi-tech equipment that use electricity, water, and
Limited, focussing on Green and New Energy transition electrolytes to produce green hydrogen. The units consist
business segments, has been created. The Green Energy of transformers, rectifiers, electrolyser stacks, electrolyser
business shall focus on the entire Green Energy value processing units (EPUs) for gas separation, and purification
stream, including Green Molecules and their derivatives & distillation units (PDUs) for making fuel cell grade
(Hydrogen, Ammonia, Methanol, etc.). hydrogen with 99.999% purity.
The business is centred on three principal business The company will use pressurised, alkaline technology
segments, viz. Manufacturing, EPC, & Development. The under licensing arrangements with its European partner,
Green Manufacturing unit at Hazira (Gujarat) would focus M/s McPhy. The technology does not use noble materials
on end-to-end manufacturing of electrolysers as an OEM and is competitive with a compact modular footprint.
supplier, with value stacking and advanced technologies. These devices have a fast start-up from hot standby to full
The EPC arm would cater to domestic and global projects in load and demonstrate a quick response to intermittent
the Green H2, Derivatives, and Carbon Capture Solutions. renewable energy supply.
The Development division would focus on Integrated GH4India Pvt Ltd, a JV between L&T, ReNew Power, and
Development of Green H2 & Derivatives projects. The IOCL, is formed to develop the nascent green hydrogen
business has incorporated three companies that cater to sector in India. GH4India will focus on developing Green
these three lines of business. Hydrogen & derivatives projects to supply Green Hydrogen
L&T Energy Green Tech Limited (LTEGL) will provide at an industrial scale in a time-bound manner under various
single-point integrated solutions in the hydrogen economy. ownership and operatorship models.

71
 Energy Projects
Segment

Electrolyser manufacturing plant at L&T’s A. M. Naik Heavy Engineering Complex in Hazira, Gujarat

Business Environment in promoting low-emission hydrogen production, backed

by significant government funding initiatives like the US
The Green Hydrogen and New Energy sectors are
Inflation Reduction Act (IRA), Hydrogen Production Tax
experiencing a remarkable surge globally, driven by the
Credit, the EU Important Projects of Common European
urgent need to combat climate change and transition
Interest, and the UK Low Carbon Hydrogen Business Model.
towards a low-carbon economy. Governments worldwide
The European Union Emissions Trading System – EU ETS is
are recognising the importance of investing in renewable
a cornerstone of the EU’s policy to combat climate change
energy technologies, including Green Hydrogen, to achieve
and its key tool for reducing greenhouse gas emissions
their climate targets outlined in the Paris Agreement.
cost-effectively.
Competitive renewable energy sources, aided by
The National Green Hydrogen Mission (NGHM) of India
advancements in electrolysis technology, low-cost
has come up with incentives to accelerate Green Hydrogen
financing, and government incentives, are accelerating
adoption in India through the Strategic Initiative for
the pace of achieving parity between green energy and
Green Hydrogen Transition (SIGHT). Over � 19,500 crore
conventional alternatives. This has led to a proliferation of
is earmarked towards the adoption of Green Hydrogen.
projects and investments across various regions, ranging
These incentives are mainly directed towards Electrolyser
from Europe and the USA to Asia-Pacific and beyond.
Manufacturers and Green Hydrogen Producers.
Over forty nations have hydrogen strategies, with early
adopters revising their plans for higher ambitions. Low- Major Achievements
emission hydrogen is seen as vital for decarbonising hard- à LTEL engineered, developed, and commissioned the first
to-abate sectors, highlighted by the energy crisis sparked Indigenous Electrolyser in its newly set up factory at A. M.
by the global geopolitical situation. Additionally, major Naik Heavy Engineering Complex at Hazira, Gujarat
economies are integrating hydrogen technologies into their
new industrial strategies.
à LTEL is awarded a PLI benefit of � 444 crore for
manufacturing electrolysers with an allotted capacity
Countries such as India with abundant renewable of 300 MW and also a grant of � 120 crore as a fiscal
energy resources, have a competitive advantage in incentive under the Gujarat Electronics’ Policy
green hydrogen production, potentially reshaping global
energy trade dynamics.
à LTEGL has bagged its first Front End Engineering &
Design orders from global players making a foray into the
In the global electrolyser market, China, after a slow Green EPC space
beginning till 2022, added 30% to the global electrolyser
capacity addition in 2023. North America and Europe lead

72 Integrated Annual Report 2023-24

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

à LTEGL and GH4India have received pre-qualifications for international collaborations. Moreover, the development
developing Green Hydrogen & Derivative assets from of hydrogen derivatives such as ammonia, methanol, and
domestic and overseas off-takers synthetic fuels further expands the potential applications
à LTEL has established an Electrochemical Testing Facility at of Green Hydrogen, offering scalable solutions for energy
A. M. Naik Heavy Engineering Complex at Hazira, Gujarat storage, transportation, and industrial processes.
Despite challenges such as cost competitiveness and scaling
Significant Initiatives up production, the global momentum towards a hydrogen
à The R&D Lab is being enhanced, and the New Energy economy is palpable, signalling a transformative shift
Technology Lab is being set up to develop various green & towards sustainable energy systems amidst the pursuit of
sustainable technologies economic growth.
à LTEL has taken definitive steps towards indigenisation by In India, the Green Hydrogen and New Energy Sectors
developing a local supplier ecosystem for electrolysers are poised for significant growth and innovation. As the
à LTEL is establishing a Giga factory with manufacturing country aggressively pursues its renewable energy targets,
automation and Industry 4.0 solutions ensuring the demand for clean and sustainable energy solutions is
productivity, safety, efficiency, and traceability escalating rapidly. Besides, the Government’s commitment
à The Green Energy business is initiating world-class to reducing carbon emissions is evident from various
quality systems per ISO and implementing L&T’s Business announcements around favourable policies and incentives.
Excellence Models at its manufacturing facility NGHM creates a conducive environment for the expansion
of green hydrogen and new energy businesses.
à Set up an advisory ‘L&T Green Energy Council’ (GEC), a
global think-tank comprising eminent thought leaders In addition, India’s vast renewable energy potential,
and experts from various facets of Green Energy, towards particularly in solar and wind power, presents abundant
identification of technology trends, analyse global policy opportunities for Green Hydrogen production through
developments, evaluate emerging business models, and electrolysis. The integration of Green Hydrogen into various
explore collaborations sectors such as industry (especially cement, steel, refineries,
fertilisers, etc.), transportation, and power generation offers
Outlook promising prospects for market penetration and revenue
The global outlook on green hydrogen and its derivatives generation. Additionally, collaborations with government
business seems encouraging and reflects a growing agencies, private enterprises, and research institutions
recognition of its potential to decarbonise industries and will play a crucial role in driving innovation and scaling up
power systems. Most countries that have set ambitious production capacities.
targets towards carbon neutrality are exploiting the However, challenges around financing and regulatory
production of Green Hydrogen from renewable energy complexities need to be addressed to unlock the full
sources. Therefore, Green Hydrogen emerges as a key potential of the Green Hydrogen and New Energy
solution to reduce carbon emissions across various markets in India.
sectors, including transportation, manufacturing, and
Overall, with the right strategies and investments, the
energy generation. Investments in Green Hydrogen
outlook for this sector is highly optimistic, promising a
infrastructure and technology are increasing, mainly driven
substantial contribution to India’s energy transition and
by Government incentives, private sector initiatives, and
sustainable development goals.

73
 Hi-Tech
Manufacturing Segment

HI-TECH
MANUFACTURING
SEGMENT

TA Crystallizer and PTA Crystallizer for Mega PX-PTA

project at IOCL Paradip Refinery, Odisha

The Hi-Tech Manufacturing Segment comprises: business. The share of international orders decreased to
a) Heavy Engineering Business 16% in the current year from 17% in FY 2022-23.

b) Precision Engineering & Systems Business

Order Inflow Revenue from Operations and OPM%
The Defence
� croreEngineering business has been renamed as
� crore
(9.4%) 22.4%
L&T Precision Engineering & Systems business with effect 12000
21000
from April 01, 2024. This is in line with the vision to
pursue 18000
opportunities in15762
emerging deep-tech sectors like 8765
9000
Precision Manufacturing
15000 17%
and Electronic systems14278
2724
in Defence, 7161 2531 29%
Aerospace,
12000 and other industries. 2296 16%
6000 22% 1552
Financial
9000performance of the segment 18.0%
11982 84% 6234 71%
6000 3000
83% 13038
3000 Order Inflow Revenue
78% from
5609Operations and OPM%
� crore 16.3%
�crore 0
0 (9.4%) 22.4%
21000 2022-23 2023-24 12000 2022-23 2023-24

18000 Domestic International Domestic International OPM%

15762 9000 8765
15000 14278
17% 2724 7161
The Hi-Tech Manufacturing segment achieved
2531 revenue of
29%
2296 16%
12000 � 8,765 crore1552
22% for the year, registering a growth of 22.4%
6000
9000 y-o-y due to a18.0%
pick-up in execution momentum. The share
11982 84% of international revenue in FY 2023-246234 was at 71%
29% of the
6000 3000
83% 13038 total revenue of the segment as compared to 22% in the
3000 78% 5609
previous year, on account of higher opening
16.3% international
0 0
order book.
2022-23 2023-24 2022-23 2023-24
Domestic International
The segment’s operatingInternational
Domestic
margin declinedOPM%
to 16.3% from
18.0%, mainly due to cost overruns in a few jobs and the
change in job mix.
The Hi-Tech Manufacturing segment achieved order inflows
of � 14,278 crore during FY 2023-24, registering a decline Funds employed by the segment as on March 31, 2024,
of 9.4% over the previous year, mainly on account of at � 1,353 crore declined over the corresponding figure
deferment of orders in Precision Engineering & Systems on March 31, 2023, by 49.0%, mainly due to higher

74 Integrated Annual Report 2023-24

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

OxO Reactor for BASF Guandong Integrated Project, China

customer advances on receipt of large orders in the Equipment, LNG/Gas Processing Pressure Vessels and
Precision Engineering & Systems business. The Heavy Heavy Columns
Engineering business also contributed through improved à The Heat Transfer Equipment (HTE) PBU specialises in
customer collections. Molten Salt Reactor System, Ammonia & Urea Exchangers,
High-Pressure Screw Plug Heat Exchangers, Methanol
Heavy Engineering Business Converters, Propylene (PO) Reactors, Vinyl Acetate
Monomer (VAM) Reactors and Fired-Tube Waste Heat
Overview Boiler packages
L&T Heavy Engineering business is a global leader in the à The Process Plant Internals (PPI) PBU specialises in
manufacturing of Engineered-to-Order Hi-Tech Reactors proprietary internals for Reactors and Ammonia Converter
and high-pressure & temperature Heat Exchangers for Baskets, Chemical Vapor Deposition (CVD) reactors for
Refinery, Petrochemicals, Fertiliser, Oil & Gas, and Nuclear polysilicon plants, which are manufactured using materials
Power plants. like Stainless Steel, Duplex/Super Duplex Stainless Steel,
Inconel, Monel, Hastelloy, Titanium, Zirconium, etc.
The A. M. Naik Heavy Engineering complex at Hazira is a
globally benchmarked state-of-the-art, fully integrated, à The Modification, Revamp & Upgrade (MRU) PBU
and digitally-enabled manufacturing complex. Its offers value-added end-to-end solutions for FCC (Fluid
capability spectrum spans across in-house Engineering Catalytic Cracking) revamps, Crude Distillation Unit/
& Technology centres, besides having a highly talented Vacuum Distillation Unit revamps, Multi-Shutdown Facility
team committed to a safe and sustainable work culture. revamps, Urea Reactor Life extension, Coke Drum repairs,
The business is globally recognised for its impeccable Heat Exchanger revamp, Urea energy-saving projects,
track record of timely and quality deliveries while debottlenecking/capacity enhancement of Oil & Gas units,
creating new international benchmarks. The business has and emergency repairs for the process plant industry
implemented extensive digital Industry 4.0 technology in its à The Nuclear PBU specialises in key equipment for
manufacturing & operations. steam supply systems in nuclear power plants. It
The business is organised into the following Product manufactures key components of the nuclear island
Business Units (PBUs): like Steam Generators, End Shields, Pressurisers,
Safety Heat Exchangers, Reactor Header Assemblies,
à The Reactor & Pressure Vessels (RPV) PBU specialises Calandria, End Fittings, etc.
in the fabrication of Hydro-Processing Reactors, Tubular
Reactors, Gasifiers, Ammonia Converters, Urea Reactors, à The Special Fabrication Unit (SFU) fabricates critical
Coke Drums, Fluid Catalytic Cracking (FCC) Reactor – Titanium Piping Spools, complex internals for Gasification
Regenerator system, Oxidation Reactor, Titanium Cladded Plants, Loop Reactors, Primary Quench Exchangers (PQE),
and filter vessels for the petrochemicals sector

75
 Hi-Tech
Manufacturing Segment

Ammonia Converter and Basket for OCI Beaumont, USA

à The business also has one of the world’s largest Forge Volatility in the cost of input materials and high energy
Shops. L&T Special Steels and Heavy Forgings Private prices are having an impact on the margins of the Forging
Limited (LTSSHF) is a joint venture with the Nuclear business, which are being neutralised partly by stepping
Power Corporation of India Limited (NPCIL). It is one of a up energy conservation. Global forging companies are
kind in Southeast Asia with all the operations for making able to compete better in prices due to relatively lower
heavy forgings under one roof energy costs.

Business Environment Major Achievements

The current FY 2023-24 has continued to witness the On the International front, Business has won major
fallout of the prolonged Russia-Ukraine war, the Israel- orders like:
Hamas conflict, and the persistent U.S.-China tensions. à IEFCL (Indorama Eleme & Fertiliser Chemicals Ltd.) Train-3
These geopolitical events have led to overall economic Ammonia Plant, Nigeria – A first-ever complete package of
uncertainty and higher operational risks, like rising PEQs (Proprietary Equipment), CEQs (Critical Equipment),
freight costs and delayed deliveries. Despite these and Steam Drum
headwinds, the business has continued its progress across
most of the segments. à Fertiglobe - Harvest Ammonia Plant, UAE – Order for
Ammonia Converter & Basket
On the domestic front, the business has seen traction in
large-scale private projects like solar photovoltaic GIGA
à Perdaman Australia – Complete package of Urea
Equipment
factories & refinery revamps.
à PTT Glycol Company, Thailand – 1st direct order for 2 nos.
The Modification, Revamp and Upgrade (MRU) business, Scientific Design Ethylene Oxide Rx
identified as a Lakshya 2026 growth initiative, has taken
off well both in India and GCC countries. Clients are à PDH-PP (Propane Hydrogeneration - Polypropylene)
Plant, Turkey – 1st order Ceyhan Polypropylene,
increasingly opting for revamps and deferring greenfield
Uretim A.S, Turkey
investment projects. Euro-5 compliance norms in GCC,
fertiliser energy-saving projects in India and revamping of In the domestic sector, the business continues to dominate
ageing plants are key drivers for the MRU business. by winning a total of 10 Urea PEQs in a row in the
current financial year. CVD (Chemical Vapor Deposition)
In the nuclear power sector, fleet procurement for the
Reactor and Offgas Coolers are breakthrough orders
Indian Pressurised Heavy Water Reactor (IPHWR) is in
with large business potential for the Polysilicon Project of
progress, albeit at a slower pace.
RIL Giga factories.

76 Integrated Annual Report 2023-24

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

HDS Reactor for IOCL Panipat DHDT project, Haryana

The MRU business secured the largest order from Petro Significant Initiatives
Rabigh, KSA, for Ethane Cracker revamp and HOFCC (High
iRUDRA is an end-to-end digital transformation
Olefin Fluidised Catalytic Cracking Unit) debottlenecking.
programme focussed on enhancing product reliability, cost
This will unlock new opportunities with Aramco JV
competitiveness, and customer & employee experience.
companies in KSA. The MRU business has also secured a
Foundational solutions like plant connectivity, cybersecurity,
number of orders on a nomination basis in the domestic
and middleware, are its strong backbone.
market, including the largest domestic order from Nayara
Energy for Coke Drum replacement. Leveraging LTIMindtree’s iNXT platform for IIoT, 112
critical machines have been connected, enhancing
The business has also successfully and timely delivered the
quality, productivity, and support for the ‘Express Delivery
World’s Heaviest Ammonia Converter for OCI Beaumont,
Programme’.
USA; the World’s Heaviest Coke Drums for Pemex’s Salina
Cruz Refinery, Mexico; and SS Heaviest Removal Column The acceleration of automation initiatives, as mentioned
for Pluto Train 2 Project, Australia. Further, the business below, continued during the year, contributing to
also delivered Loop Rx of the IOCL P-25 project for the first significant improvement in productivity:
time & Titanium spools for Assam Bio-Refinery. à Automated Circumferential Seam Setup Station
The business was granted four patents for its innovative à Robotic External Welding Station
designs and processes. à Overlay UT Automation
The Nuclear business has surpassed its earlier benchmark à AI-Based UT & Visual Inspection
of 36 months to manufacture Steam Generators in 33
months. The business has also qualified to manufacture Outlook
the forgings for Framatome’s Pressuriser Design for In the domestic market, the Union Cabinet approved
the first time. a viability gap funding scheme for Coal Gasification
LTSSHF team has completed 16 out of the 24 sets of projects in January 2024 and multiple mega projects in the
forgings for Nuclear Steam Generators; 70% delivery of refinery and petrochemicals sector. The business expects
the critical forgings for a prestigious strategic programme; a continuation of large-scale private projects in solar
India’s biggest Pelton Runner Forging (~49 MT) for Idukki photovoltaic Giga Factories and petrochemical segments.
Hydro project in Kerala, and 1st set of Titanium Forgings for Climate change is expected to provide sustainable growth
the country’s strategic programme named ‘Samudrayaan – in view of the demand for renewable diesel and biodiesel
India’s Deep Ocean Mission’. plants (which are more eco-friendly) and enforcement of
clean fuel standards – Renewable Energy Directive (RED)
II, Renewable Fuel Standard (RFS), and Low Carbon Fuel

77
 Hi-Tech
Manufacturing Segment

Coke drums each weighing 450 MT for Numaligarh Refinery Limited, Assam

Standard (LCFS) in developed countries. Oil-to-Chemicals The digital as well as the various organisational excellence
projects drive growth in the petrochemicals sector initiatives of the business are expected to result in improved
(especially in Asia) and LNG sector (especially in the USA productivity and higher value creation on a medium to
and the Middle East). long-term basis.
The MRU business expects sustainable increased demand Financial performance of the business
and a stronger foothold in GCC for energy efficiency,
emission reduction, and crude-to-chemical projects.
COP28 has been a historic event for the nuclear energy Order Inflow � crore
� crore
sector. India plans to triple its nuclear power generation 7.7% 5000
5000
capacity to 22.5 GWe by 2031. NITI Aayog and the
Department of Atomic Energy (DAE) are exploring the 4000 3916 4000
3637
possibility of repurposing retiring thermal power plants
with small modular nuclear reactors. Anushakti Vidhyut 3000 3000
2247 57%
Nigam Limited (ASHVINI), a JV between NTPC and NPCIL, 48% 1758
will focus on fast-track construction of 6 X 700 MWe 2000 2000
Pressurised Heavy Water Reactor (PHWRs) as a part of the
1000 1669 43% 1000
Fleet Programme in support of climate change and towards 52% 1879
achieving Net Zero emissions target.
0 0
The business is targeting special projects like Laser 2022-23 2023-24
Interferometer Gravitational-Wave Observatory (LIGO) Domestic International
and Medical Isotope Reactors. A successful historical track
record in the Fusion Reactor project (ITER) has opened The Heavy Engineering business recorded an order inflow
new business opportunities for the ITER organisation. The of � 3,916 crore for the year ending March 31, 2024,
business is well poised to benefit from the momentum in higher by 7.7% as compared to the previous year, mainly
the nuclear sector. due to the receipt of a high-value international order in
The business remains positive in its outlook for order the Modification, Revamp & Upgradation (MRU) business.
prospects despite as many as 60+ countries, including many The share of international orders increased to 57% in the
in India and the European Union, going into elections, current year from 48% in the previous year.
which may lead to a lot of uncertainties in decision-making
on upcoming prospects.

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Naval vessel RFA Argus from Royal Fleet Auxiliary (RFA) UK, for repairs at L&T Shipbuilding’s Kattupalli Shipyard, Tamil Nadu

seventies, and mid-eighties, respectively, as a part of the

Revenue from Operations and OPM% Company’s focus on building a strong and self-reliant
� crore India by leveraging its precision and systems engineering
11.5%
5000 capabilities. This was well ahead of the opening up of these
sectors for private industry participation, beginning with
4078
4000 3658 Defence in 2001 and Space in 2020.
1985 49% During the preceding one and a half decades, L&T was
3000 1322
57% 36% associated with the Defence Research & Development
2000 Organisation (DRDO) while concurrently contributing
16.0%
17.7% towards the Indian Navy’s ‘A Builders Navy’ aspiration by
51%
43% 1000 64%
developing platform-specific equipment and systems across
2336 2093 classes of Naval platforms with in-country value addition.
0 As for the Space sector, the business continued to be a
2022-23 2023-24
trusted partner to ISRO across every segment of Space
Domestic International OPM% activities across Boosters and wide-ranging hardware for
Space Launch Vehicles and Satellites, test facilities, material
The Heavy Engineering business’s revenue of � 4,078 crore independence, Satcom infrastructure, and Deep Space
grew by 11.5% on a y-o-y basis, with higher execution of Communication Network.
orders in the MRU business. The share of revenue from Since the constitution of a separate business vertical in
international operations has increased to 49% compared to 2017, the business has grown from strength to strength
36% in FY 2022-23. and earned recognition in the aerospace and defence
The operating margin of the business improved from segments, as L&T Defence. Reflecting the Company’s vision
16.0% to 17.7% due to execution cost savings and a to pursue opportunities in emerging deep tech sectors like
better job mix. precision manufacturing, advanced electronics systems, AI,
additive manufacturing, autonomous platforms, and digital
Precision Engineering and technologies, including Industry 4.0 in Defence & other
industries, the business has been renamed as L&T Precision
Systems Business Engineering & Systems with effect from April 01, 2024.
Having built a portfolio of products, systems, platforms,
Overview and solutions, and correspondingly a basket of
L&T entered the various strategic sectors, such as nuclear technologies, the business provides concept-to-design-
power, aerospace, and defence, in the sixties, early to-delivery customised solutions across chosen strategic

79
 Hi-Tech
Manufacturing Segment

Close-In Weapon System (CIWS)

segments with a focus on indigenous design and emphasis Systems at Powai, Talegaon, Hazira, and Coimbatore, as
on creating Indian Intellectual Property (IP). well as Design & Engineering Centres for Underwater
The business is structured to provide direction to various Platforms and Warships at Powai and Chennai.
segments of operations, as under: Since its inception, the business has built a portfolio of
à Marine Platforms, Equipment, and Systems wide-ranging, indigenously designed and developed
products, systems, solutions, platforms, and technologies.
à Land Platforms, Equipment, and Systems
The business has indigenously conceptualised, engineered,
à Aerospace Systems built, and supplied over 250 systems and products,
The business is headquartered in Powai, Mumbai and its with more than 50 of them having been delivered in
operations extend across India. It also includes R&D centres, serial production mode. The business model is uniquely
Product Design & Engineering Centres, and the following differentiated through its focus on in-house technology and
dedicated production centres: product development, innovation for serial production, and
mature and equated partnerships with domestic as well as
à A. M. Naik Heavy Engineering Complex at Hazira (near
global majors, both in the government and private sectors.
Surat) for manufacturing, integration, and testing of
Besides the supplies, the business offerings also include
armoured & allied land platforms and hulls, as well as
providing support during installation, commissioning, field
pressure-proof structures for underwater platforms
evaluation trials, through-life support, and obsolescence
à The shipyard at Kattupalli (near Chennai) caters to new management. These capabilities enable the business to
builds and repair of marine platforms maintain its market leadership position amongst the private
à Strategic Systems Complex for weapon launch systems, sector defence industry and be future-ready, given the
sensors, engineering equipment and control systems at Government’s push for higher indigenisation and autonomy
Talegaon (near Pune) through the ‘Aatmanirbhar Bharat Abhiyan’.
à Precision Manufacturing & Systems Complex (PMSC) for L&T’s participation in the defence sector stems from its
aerospace systems manufacturing, equipped with Centres ethos of being a builder of the Indian nation. Various
of Excellence for Advanced Composites and Additive sustainability and risk assessors of defence-related
Manufacturing at Coimbatore businesses do recognise the right of countries to defend
à Strategic Electronics Centre at Bengaluru themselves and the need to develop & produce defence-
related products to fulfil security, peacekeeping, and
These work centres are complemented by R&D Centres at
humanitarian needs. This is well-acknowledged in the
Powai and Bengaluru, and Product Design, Development
current era of multiple regional conflicts where nations
& Engineering Centres for Armoured Platforms & Weapon
have increased their spending on defence to be able to be
Systems, Sensors, Engineering Equipment and Aerospace
equipped for self-defence and ensure national security.

80 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
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Offshore Patrol Vessel

It is noteworthy that the business’ sole customer & à Electronics Products and Systems: This segment will
regulator, the Indian Government, is committed to non- design, develop, and realise critical hardware and
proliferation under the ‘Weapons of Mass Destruction application software that would have wide applications
and their Delivery Systems (Prohibition of Unlawful across industries
Activities) Act, 2005’. India is also a signatory to the
Missile Technology Control Regime (MTCR), a multilateral Business Environment
export control regime, and a party to the Wassenaar With the Government of India initiating substantive policy
Arrangement – a voluntary export control regime that limits reforms in the past years and allocating higher budgets
the destabilising proliferation of sensitive technologies. for indigenous defence acquisition, the macro picture has
Further, India has voluntarily adopted a ‘No First Use’ improved for this sector. In FY 2023-24, Acceptance of
(NFU) Policy (PIB notification dated January 4, 2003) that is Necessity (AoNs), which would trigger capital acquisition
enshrined in the commitments of the Cabinet Committee worth ~ � 3.6 trillion, has been accorded, of which greater
on Security (CCS). India’s application to join the Nuclear than 80% of this acquisition will be from Indian industries.
Suppliers Group (NSG) in 2016 is also under discussion.
The defence supply chain ecosystem continues to witness
The Company recognises the need to act responsibly in
challenges on account of geopolitical dynamics. The
carrying out its business related to the defence sector,
prevailing wars and increased NATO spending have caused
implement internal controls and stay committed to
the overloading of global OEM capacities, mainly in the
respecting human rights.
European region. The volatile geopolitical situation has also
While maintaining its position as a leading player in provided a new perspective on the impact of emerging
the Indian Defence Sector, the business does not and disruptive technologies and their deployment in
manufacture any explosives or ammunition of any combat. However, in this segment, the company has
kind, including cluster munitions or antipersonnel developed a robust and resilient supply chain over the
landmines or nuclear weapons or components for years, with self-reliance as the primary focus and in-
such munitions. The business also does not customise house design capabilities. The business is also constantly
any delivery systems for such munitions. developing and diversifying its supply chain with an
Leveraging its prowess in technology development emphasis on indigenisation to assure autonomy to the
for about four decades, the business is incubating the Indian Armed Forces.
following new business segments in FY 2024-25: On the Aerospace front, the opening of the sector in 2020
à Precision Products: This segment will manufacture and the Indian Space Policy 2023 provide opportunities
precision products that are characterised by their to the private sector for participation in end-to-end space
adherence to high reliability and critical specifications

81
 Hi-Tech
Manufacturing Segment

L&T’s AMOGH - Autonomous Underwater Vehicle for surveillance

activities, from building launch vehicles and satellites to à Award of a supply order to develop and trial evaluate
downstream space data collection and dissemination. The Tactical Communication System to serve as a mobile
launch services segment is also emerging as a business communication backbone for the Indian Army under a
opportunity for the Indian Industry with the potential 70% Government Funded Make-I scheme
transfer of technology of ISRO’s Small Satellite Launch à Develop and realise Air Independent Propulsion (AIP)
Vehicle, which the company targets to operationalise energy modules for retro-fitment in the Indian Navy’s
on the back of industrialising the production of Polar Project P75 Kalvari class diesel-electric submarines
Satellite Launch Vehicle (PSLV) for which the Company
has teamed-up with Hindustan Aeronautics through a à Accord of Technical Evaluation Clearance for the bid
for Indian Navy’s Project P75-I for the acquisition of 6
consortium. The launch of the first industry-built PSLV is
diesel-electric submarines with AIP under the strategic
expected in calendar year 2024. Today, the business is
partnership model, in association with Navantia of Spain
involved in the assembly and integration of launch vehicles
for ISRO to build in-house capability to position and à Delivering mission-critical flight hardware for ISRO’s
eventually begin to offer ‘Launch on Demand’ services as a Chandrayaan-3, Aditya-L1 Mission, and Human
business model. Spaceflight Gaganyaan Programme
à New benchmarks were established by all work centres in
Major Achievements terms of accelerated realisation of systems and equipment
During the year, the business has achieved multiple (serial production category) by deploying Industry 4.0
successes, uniquely reaffirming L&T’s positioning as techniques. Noteworthy ones include the supply of the
a ‘nation-builder’ through a series of Make-in-India first lot of Modular Bridging Systems in record time from
programmes. These include: bulk production clearance and the supply of Large Survey
Vessels to Garden Research Shipbuilders & Engineers Ltd.
à A breakthrough in securing a contract from MoD - IAF for
(GRSE) from Kattuppalli Shipyard
High Power Radars (HPR) that would provide long-range
threat detection capabilities for the Air Force à The Kattupalli Shipyard created history by signing a
Master Ship Repair Agreement with the US Navy and
à The signing of a previously negotiated contract for the
undertaking repairs of two US Military Sealift Command.
supply of indigenously developed Close-in Weapon
Systems (CIWS) to the Indian Air Force, which provides It also enhanced the longstanding collaboration
the last layer of air defence to vital assets and vital points between the UK and India in the maritime domain by
across the country undertaking and supporting the maintenance of two Royal
Fleet Auxiliary ships
à Unveiling India’s first light tank developed indigenously
with DRDO at its Armoured System Complex in an à Conduct extensive development and validation trials of
unprecedented time frame of 18 months Autonomous Underwater Systems

82 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Courtesy ISRO

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

à Successful development and validation trials of medium- Outlook

and high-speed unmanned aerial targets. This effort was
The capital acquisition budget for Defence witnessed a
also awarded the Society of Indian Defence Manufacturers
moderate increase of ~5% y-o-y in the interim budget for
(SIDM) Championship Award 2023 for import substitution
FY 2024-25, resulting in an overall budget of � 1.72 trillion,
à Award of Green Channel Certificates for multiple land mainly for aircraft & aero engines, army vehicles, and naval
and marine systems and platforms by Quality Assurance fleet. The same is expected to be reset with the historical
agencies of the Indian MoD, based on the demonstrated long-term average growth of 11-12% in the regular budget
levels of quality along with mature processes of quality expected in July 2024. The budget for the FY 2024-25 has
assurance during the execution of major orders also proposed setting up a � 1 trillion corpus fund in line
with the country’s aspiration to develop capabilities in the
Significant Initiatives deep tech sector.
R&D and innovation have been the backbone of the
The indigenous defence production crossed � 1 trillion
Precision Engineering and Systems business since its
in FY 2022-23. Additionally, the Government has set an
inception, and the business continues to invest in R&D to
ambitious target of � 3 trillion of domestic production
develop technologies and products. Various R&D initiatives
with � 50,000 crore defence exports by FY 2028-29,
in the development of high-precision sensors, directed
coupled with over 150 programmes having been identified
energy beam combiners, unmanned and autonomous
for acquisition under the ‘Make’ route of DAP 2020,
system technologies, and the deployment of AI-based
which focusses on indigenous design, development and
solutions have been undertaken during the year.
manufacturing, is all expected to gather steam over the
The business has established its proficiency by next five years for the procurement of systems/platforms for
leveraging Industry 4.0 practices across its operations. domestic use with the government also facilitating exports
Focussed digital initiatives have accelerated productivity of these products.
and business excellence.
The business is well poised to leverage the Government’s
While providing a safe working environment for men and thrust on ‘Aatmanirbharta’ to gain strategic autonomy
materials, the business continues to focus on the triple through domestic production and win new opportunities
bottom line, viz. Social, Environmental and Financial, in shipbuilding, artillery equipment, combat engineering
as well as green initiatives. It has achieved a significant equipment, and long-range communication equipment in
y-o-y reduction in water and energy consumption at its India as well as select regional markets.
campuses, in line with L&T’s sustainability focus and carbon
The Indian space sector is fast emerging as a sunshine
& water neutrality targets.
sector and promises to see tremendous growth in the
coming times. The business has been a trusted industry

83
 Hi-Tech
Manufacturing Segment

Launch Tracking C&S Band Radar

Order Inflow
partner to ISRO and has contributed to the indigenous
capability of the Indian space sector for
(14.7%)
over five Revenue from Operations and OPM%
� crore
� crore
decades. The reforms announced in the space sector
15000 33.9%
will enable private sector companies – like L&T, to take 6000
12125 and integration of launch
on the complete manufacture
12000
vehicles as well as8% 966 bus manufacturing and
satellite 10341 5000 4692
49 0% 546
provide 9000
associated services. 4000 3504
12%
7% 230
Financial 3000
6000performance of the business
4146
10292 100% 2000 93% 20.0% 88%
92% Order
11159 Inflow
15.9%
3000
1000 3274
� crore (14.7%) Revenue from Operations and OPM%
� crore
0 0
15000 2022-23 2023-24 2022-23 33.9% 2023-24
6000
12125 Domestic International Domestic International OPM%
12000 8% 966 5000 4692
10341
49 0% 546
9000 Benefitting from
4000 a higher opening order book,12%
3504 the Precision
3000
7%
Engineering & Systems
230 business earned revenue of � 4,692
4146
6000 crore during FY 2023-24, higher by 33.9% compared
10292 100% 2000
to the 93% 20.0%
previous year. The share of international88%
revenues
92% 11159
3000 15.9%
increased to 12%
1000 3274 from 7% in the previous year with the
ramp-up in the execution of export orders.
0 0
2022-23 2023-24 The operating2022-23
margin declined to 15.9% 2023-24
from 20.0% in
Domestic International the previous year, largely reflecting the stage
Domestic International OPM%of execution
and job mix.
The Precision Engineering & Systems business recorded
an order inflow of � 10,341 crore, registering a decline
of 14.7% y-o-y, mainly due to the deferment of a few
orders and due to a higher base. During the year, the
business secured a large value order from the Ministry
of Defence. No major international orders were received
during the year.

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IT & TECHNOLOGY
SERVICES SEGMENT

LTIMindtree campus, Bengaluru, Karnataka

The IT & Technology Services Segment comprises: The segment recorded revenue of � 44,916 crore for
a) LTIMindtree Limited and its Subsidiaries the year ended March 31, 2024, registering a growth
of 7.5% over the previous year, largely reflecting the
b) L&T Technology Services Limited and its Subsidiaries overall challenging macro environment in the sector.
c) E-commerce/Digital Platforms and Data Centers International revenue continues to be at 91% of the total
revenue of the segment.
The Group has forayed into fabless semiconductor
chip design during FY 2023-24 by incorporating L&T The segment’s operating margin, at 20.4%, is in line with
Semiconductor Technologies Limited (LTST), a wholly- the previous year.
owned subsidiary. A fabless semiconductor company The funds employed by the segment as on March 31, 2024,
specialises in the design and creation of semiconductor at � 33,034 crore, increased by 12.4% compared to March
chips without owning or operating semiconductor 31, 2023, largely due to higher Cash & Cash equivalents on
manufacturing facilities. the Balance Sheet.
Financial performance of the segment
LTIMindtree
Revenue from Operations and OPM%
Overview
7.5%
� crore
LTIMindtree (LTIM) is a global technology consulting
and digital solutions company that enables enterprises
56000
across industries to reimagine business models, accelerate
48000 44916 innovation, and maximise growth by harnessing digital
40000 41789
technologies. As a digital transformation partner to more
32000 than 700 clients, LTIMindtree brings extensive domain and
91% 37846
24000 40828 91% technology expertise to help drive superior competitive
20000 differentiation, customer experiences, and business
16000 20.4% 20.4% outcomes in a converging world. Powered by nearly 81,000
talented professionals across more than 30 countries,
8000
9% 3943 4088 9% the Company helps in solving the most complex business
0
2022-23 2023-24 challenges and delivering transformation at scale.
Domestic International OPM%

85
 IT & Technology
Services Segment

LTIMindtree’s state-of-the-art campus at Mahape, Navi Mumbai, Maharashtra

The business has a strong presence in each of the following generation technology solutions and products catering to
business verticals: the industry’s needs.

Banking and Financial Services (BFS) Communications, Media, and Entertainment

LTIM’s strong domain and technology capabilities, focussed LTIM works with the world’s leading broadcasters, studios,
sub-industry offerings, and a strong partner ecosystem OTT/streaming, publishers, information services, education,
across banking, financial services as well as enterprise music, gaming, AdTech, telcos, and multiple-system
partners enable true end-to-end transformation, helping operators. LTIM is enabling them with product innovation
BFS clients modernise their core, reimagine their go-to- to drive new revenue streams, modernise content supply
market models, achieve their sustainability goals, enable chains, and personalise viewer/audience experiences.
cyber-resilience, transform using AI, data and insights, and
better engage with their end consumers. Manufacturing and Resources
LTIM is geared to address customers’ priorities across
Insurance the manufacturing value chain – across the front office
LTIM has been at the forefront of transforming leading (sales, marketing, commerce, commercial) & back office
Property & Casualty (P&C) insurers, life and annuity (procurement, manufacturing & supply chain). The
insurers, insurance brokers, employee benefits, and Resources sub-vertical enables the domain-led digital
reinsurers, helping them lower costs, scale operations, transformation of manufacturing, mining, metals, building
personalise products, and thereby shape the future of materials, utilities, oil & gas, oilfield, and renewable energy
insurance, faster. Using deep expertise with leading- giants with technology solutions and services that help
edge technologies, including gen AI, ML, drones, digital them achieve their goals of safety, reliability, efficiency,
twins, IoT, cloud, and advanced data analytics, LTIM has profitability, sustainability, and value chain transformation.
partnered with customers to develop unique solutions to
some of the most complex industry issues, such as claim/ Energy
fraud management, digital transformation, underwriting LTIM delivers a comprehensive set of next-generation
profitability, and distribution effectiveness. solutions that are designed for the complete energy value
chain across upstream, midstream, and downstream oilfield
Hi-Tech & Services services, as well as renewables segments. LTIM also helps
LTIM powers innovation to leading Hi-Tech and Services monitor, track, account for, and report carbon footprint
enterprises across various sub-segments: semiconductors, and assists in trading carbon credits through holistic
software and platforms, hardware and OEMs, and emissions management, decarbonisation of operations, and
professional services. LTIM combines domain, customer expansion into renewables.
experience, and digital engineering prowess to deliver next-

86 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

LTIMindtree Headquarters, Powai, Mumbai, Maharashtra

Utilities sales, provides actionable insights to enhance customer

LTIM has experience in helping electric, gas and water experience and loyalty as well as to improve employee
utility firms reinvent themselves by delivering solutions productivity, modernises legacy infrastructure and
and methodologies required to connect the physical and applications by leveraging Hyperscale Clouds, and helps
digital worlds through end-to-end IT/OT capabilities. LTIM’s accelerate Sustainability initiatives.
vision is aimed at addressing transformational challenges
Healthcare
such as Distributed Energy Resources, Grid Modernisation,
Production Asset Management, Transmission & Distribution LTIM has delivered transformative consulting services and
Network Ops., expansion of EV Infrastructure, Customer technology solutions to global healthcare giants across
Experience, and last but not least, Decarbonisation. the payer, provider, healthcare product manufacturer,
pharmacy, health insurance, and benefits manager
Retail and Consumer Packaged Goods (CPG) landscape. The Company brings a unique healthcare
LTIM delivers hyper-personalised experiences at scale to the platform operation approach to help clients adopt new
world’s largest CPG and brands. The Company also helps processes and technologies quickly and easily.
CPG and retail clients to navigate increased competition
Life Sciences
and margin pressures from online retailers, ever-changing
consumer behaviour, rising costs, supply chain disruptions, LTIM is driving collaboration in the life sciences industry,
and ESG issues. With deep industry expertise, the making healthcare more affordable and accessible while
Company’s 6,500+ global associates lead by designing new accelerating personalised medicine and patient-centric
‘Phygital’ experiences, modernising legacy applications and treatment journeys. The Company’s digital and technology-
infrastructure leveraging the cloud, helping automate, and enabled solutions focus on faster drug discovery, lower
reducing the time from data to decision. R&D costs, diverse & comprehensive trials, adaptive
manufacturing, a transparent supply chain, and meeting
Travel, Transport, and Hospitality regulatory stipulations.
LTIM is propelling its clients from ‘post-pandemic recovery’
Public Services
to ‘fast-track growth’ with innovative technology solutions,
which have been successfully implemented by some of LTIM’s Public Services sub-vertical enables federal, state,
the world’s largest and fastest-growing airline, hotel, car local, provincial, municipal, defence, and government
rental, travel technology, travel management, logistics and healthcare organisations to unlock the true potential of
real estate companies, to accelerate revenue growth and technology and digital, helping them to transform their
optimise costs. The Company develops modern mobile service delivery to meet citizens’ evolving needs.
and web applications, enables digital marketing and

87
 IT & Technology
Services Segment

LTIMindtree’s state-of-the-art Delivery Center in Johannesburg, South Africa

LTIM has offerings across the following service lines: strategies, co-innovation, co-selling and global demand
à Interactive generation activities. It implemented multiple co-branding
and co-marketing initiatives and signed up exclusive partner
à Data and Analytics programmes with its key strategic partners. This helped the
à Enterprise AI Company to augment its GTM strategy and co-investments
à Cloud and Digital Infrastructure across key priority areas.
à Cybersecurity
à Digital Engineering Business Environment
à iNXT Despite the macroeconomic challenges throughout the
à Platform Operations year, the technology/IT Services industry demonstrated
resilience as large-scale cost optimisation and automation
à iNXT Geospatial Engineering deals helped maintain demand for enterprise software and
à Enterprise Cloud Applications IT services.
à Salesforce
In the midst of significant business caution towards
à SAP investments and delayed decision-making, India’s
à Oracle technology industry revenue (including hardware) is still
à Consulting Services expected to hit USD 254 billion.
à Hyper Automation The Nasscom Annual Enterprise & Tech Services CXO
à Quality Engineering Services – Testing Survey 2024 indicated an expectation of stronger growth
momentum for the calendar year 2024, with the under-
Alliances & Partnerships stressed sectors of BFSI, Telecom, Media & Entertainment
The Business has built a strong ecosystem of partners and Hi-tech leading the digital spending. Generative
that enables it to drive significant value for its clients in AI remains a key priority for over 95% of the surveyed
an ever-changing technology landscape. The Company’s organisations over the next 6-12 months. Technology
partner ecosystem comprises global tech majors in Cloud, providers are also optimistic about growth expectations for
Data & AI, Interactive, Digital Engineering, Low code and FY 2024-25, with 79% expecting higher growth compared
Integration, Enterprise Applications, Quality Engineering, to last year. Hiring growth is also expected to improve,
Automation, Infrastructure and Security domains serving with 80% of the providers planning a higher level of hiring
across multiple industry groups. compared to FY 2023-24.
In the current year, LTIM has been able to deepen
relationships with its partners and create combined value
through the execution of joint Go-to-Market (GTM)

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LTIMindtree, Kalinga Campus, Bhubaneswar, Odisha

Key Deal Wins Significant Initiatives

à A global leader in the design, engineering, and delivery of At the forefront of Research & Development (R&D) efforts,
customised facilities for high-tech industries has selected the Company has curated a platform called LTIM Crystal
LTIM as their preferred strategic partner for their Digital that scouts ‘Beyond-the-Horizon’ technologies and
Transformation journey over the next five years empowers us with future-driven growth strategies and
à A US-based premier oil and gas producer selected LTIM as opportunities for research and incubation consideration.
their strategic partner for end-to-end technology services Using the above approach, LTIM has evangelised emerging
à A diversified multinational mass media corporation technologies like Generative AI, Explainable AI, Zero Trust
has chosen LTIM as its preferred ServiceNow Architecture, Platforms at Scale, and Quantum technologies
transformation partner to establish capabilities and their offerings.
à A global financial services technology company has chosen As a part of incubating new technologies and
LTIM for its Product Development initiatives demonstrating delivery success, LTIM is doing first-of-
à A utility company in the Middle East continues to a-kind (FOAK) engagements that set up the capability
strengthen its relationship with LTIM by signing another for industrialisation. Additionally, the Company has
3-year agreement where the Company will support their a Technology Architecture Office with Unit Chief
transformation journey by identifying areas of expansion Technology Officers (CTOs) and Cluster CTOs, driven
and optimising the technology landscape by the Global Technology Office (GTO), leading to
forward-looking innovation and solution excellence in
à One of the largest semiconductor manufacturers in the
delivery with industries.
world has chosen LTIM as their key digital transformation
partner to modernise its SAP application landscape, enrich
user experience, streamline business processes, and deliver
Outlook
contemporary digital operations across both SAP S/4HANA In this environment of restrained client spending, the
and SAP Cloud Solutions Company continues to expand its value proposition to
become a partner of choice for the clients. By focussing
à One of the largest property & casualty insurance
on cross-selling to existing accounts and prioritising Focus
companies in the United States has chosen LTIM as a
100 clients, the Company is observing multiple deal
strategic partner for a multi-year application development
conversations and wins.
and maintenance deal
With the completion of the merger integration, the
à A prestigious regulatory body has chosen LTIM for its Next-
Company is strategically placed to take advantage of
Generation Data Warehouse implementation
the market recovery and further improve its position
in the industry leaders’ quadrant. A strong order

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L&T Technology Services - Module X Design Centre, Mysuru, Karnataka

inflow and healthy deal pipeline have set the stage for services throughout the product and process development
medium-term growth. lifecycle. LTTS leverages its deep multi-domain expertise
As the Company continues to negotiate the dynamic across software and digital engineering, embedded
terrain of shifting market priorities, rapid technological systems, engineering analytics, and plant engineering to
advancements, and evolving customer expectations, it create transformative value propositions for clients globally.
remains confident of its ability to align clients’ operational Headquartered in India, LTTS has over 23,800 employees
strategies with their technological ambitions and help them spread across 22 global design centres, 28 global sales
reach a future without limit. offices, and 104 innovation labs as of March 31, 2024. The
The positive outcomes of LTIM’s positioning as an Company’s global footprint covers 20+ countries across
organisation with scale-expanded capabilities and stronger all key geographies, catering to a global clientele of 69
partnerships continue to reflect in the order inflow and Fortune 500 companies and 57 of the top ER&D firms.
pipeline. Through the year, the Company has pivoted its LTTS offers its services to customers across five
portfolio to align with the current spending areas and is key segments. The Company delivers specialised
positioned well to capture the discretionary spend wave Transportation Engineering services to global OEMs and
when it returns. Tier 1s, helping accelerate market entry, foster cutting-
LTIM is stepping into the new financial year with renewed edge innovation, and drive sustained business excellence.
vigour and a stronger foundation to drive revenue For Industrial Products, LTTS capitalises on its extensive
synergies. As it reflects on its achievements and looks multi-domain expertise across software, hardware, and
toward the future, the Company is confident that the mechanical engineering to cater to an expanding global
insights gained and strategies implemented will enable it customer base. The Company’s Telecom & Hi-Tech
to execute better going forward. Finally, the Company is offerings include services across Telecom, Consumer
excited to see what the future holds and is committed to Electronics, Semiconductors, Independent Software Vendors
making the most of every opportunity that comes its way. (ISVs), and Media & Entertainment (M&E). Leveraging its
comprehensive chip-to-cloud capabilities – from design
and engineering to project management – LTTS helps drive
L&T TECHNOLOGY SERVICES delivery, maintenance, and sustenance of bespoke solutions
for a global Plant Engineering clientele. Leveraging over
Overview three decades of Medical Device industry presence in
L&T Technology Services Limited (LTTS) is a leading global combination with cross-vertical engineering expertise,
Engineering Research and Development (ER&D) services LTTS also works closely with the Top 10 global healthcare
provider. LTTS specialises in delivering a comprehensive providers and device manufacturers.
range of consultancy, design, development, and testing

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Wire Harness Center – Peoria, USA

LTTS continues to be at the forefront of cutting-edge from 2023 to 2030 and drive the next frontiers of growth.
innovation, partnering with leading technology majors and Stickier ER&D spending, led by continued investments
hyperscalers to enable next-gen solutions and offerings in future products and a sustained rise in demand for
across emerging domains, including AI, Software Defined digital engineering and offshoring services, is expected
Everything (SDx), and Cyber Security. These collaborations to drive the growth of the Indian ER&D sector as well.
focus on streamlining new product development, While current Nasscom estimates indicate the US to
enhancing remote asset management, enabling robust be the largest ER&D spender at about USD 550 billion,
sustenance paradigms, and advancing virtual product trends suggest a sustained rise of markets across the EU
design as well as prototyping. and Asia-Pacific regions.
With its cutting-edge technology capabilities, multi- Further, estimates from Zinnov corroborate this trend and
geography presence, and customer-first approach, LTTS predict a 2X rise in Digital Engineering spending by 2026,
continues to reaffirm its leadership of the growing ER&D at over USD 1.6 trillion.
services segment.
As the dynamics of the global ER&D landscape evolve,
At the start of the fiscal year, LTTS successfully closed LTTS will continue to reassess its key drivers, including
the acquisition of the Smart World and Communication the availability of talent, new partnerships and alliances,
Business Unit from its parent L&T. The new capabilities and revitalised compliance with laws and regulations.
unlocked from the merger, including industry-leading This would help ensure continued business success in a
expertise in Sustainable Smart Spaces, NexGen Comms, dynamic ecosystem.
and Cyber Security, have already registered considerable
traction amongst LTTS’ global customer base. The success Driven by its key differentiators around multi-vertical
was evident in the recent marquee USD 100 million deal domain expertise, value-maximising customer-centric
win for the delivery of cutting-edge cyber security services. innovations across major industry segments, and a robust
network of alliances across emerging technologies,
Business Environment including AI and SDx, LTTS continues to be well-poised to
The rise in the intensity of Engineering Research and navigate the evolving landscape.
Development (ER&D) across sectors is driving new growth
opportunities. Nasscom estimates that total global ER&D
Major Achievements
spending could well exceed USD 3 trillion by 2030. With During the year, LTTS had multiple major deal wins across
the Automotive, Software, and Healthcare & Medical all its verticals. Large deal bookings were led by a marquee
Devices sectors set to account for about half of this USD 100 million win, a USD 50 million, and USD 40 million
spending, high growth areas like Telecom, Semiconductors, engagement, and more than twenty USD 10 million
and Software will continue to register double-digit CAGR projects (including several in the range of over USD 15

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Engineering in action at LTTS, Mysuru​, Karnataka

million and USD 20 million). By continuing to cater to diverse industries and maintaining
a steady growth trajectory, LTTS solidified its competitive
Competitive Positioning edge in FY 2023-24, showcasing resilience, innovation, and
During the fiscal year, LTTS demonstrated a robust a customer-at-the-core mindset in navigating the challenges
competitive positioning within the global dynamics of the and opportunities of the evolving market landscape.
engineering and technology services sector. The Company’s
financial performance and strategic initiatives underscored Significant Initiatives
its resilience, a scenario that was further reflected across LTTS has continued to invest considerable time and effort in
the ratings by leading analysts and industry bodies and a strategic initiatives that will propel its technology footprint,
growing patents portfolio. engineering infrastructure, and human resources, with the
à LTTS was rated as a Leader in Manufacturing Smart objective of providing a differentiated experience to its
Industry Services 2023 RadarView by Avasant and was customers. These include:
positioned as Leaders in Everest Group’s ACES Automotive à Expanding presence with delivery centres across India,
Engineering Services PEAK Matrix® Assessment including Vadodara, Chennai, and Bengaluru (new campus
2023 – Electric inaugurated with a capacity to host 4,000 engineers)
à ISG rated LTTS as Leaders in Manufacturing Industry à Becoming a Palo Alto Networks Managed Security Services
Services and Solutions 2023 - Digital Factory/ Partner (MSSP) for delivering a suite of security services to
Manufacturing Solutions, North America and Agile Product end customers across industrial verticals
Development and Design Services à Strategic partnership with Bharat Sanchar Nigam Limited
à Zinnov rated LTTS in the leadership zone across 14 (BSNL) to drive and enable global enterprises in their
Engineering domains as leaders in Overall 2023 ER&D private 5G network deployments
Services and in the leadership zone across Automotive, à Collaboration with NVIDIA to unveil Gen AI and advanced
Aerospace, Electrification, Industrial, Telecom, Software-Defined Architecture for Medical Devices
Semiconductors, and Telehealth
à Partnership with Google Cloud to harness the power of
As of March 31, 2024, LTTS boasted an impressive its Gen AI technologies and tools for the development of
patent portfolio comprising 1,296 patents, reflecting the DevX, LTTS’ Developer Experience Platform
Company’s focus and commitment towards innovation
and collaborative development. The scenario was
à Alliance with Amazon Web Services (AWS) to help global
automotive manufacturers accelerate the transition
complemented by a growing alliance ecosystem with towards SDV, leveraging Gen AI
leading technology majors and hyperscalers, especially in
emerging areas like AI and Gen AI.

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LTTS office, Airoli, Navi Mumbai, Maharashtra

à Collaboration with the Nasscom Gen AI Foundry to The forward momentum is further strengthened by the
stimulate the growth of Gen AI startups growing collaboration of the LTTS Global Engineering
Academy (GEA) with leading centres of Learning and R&D,
Outlook thereby driving depth and sustainability in its approach
During the year, LTTS has continued to strengthen its towards enabling a deep, reliable, and resilient talent
position as the nation’s largest pure-play ER&D services paradigm. Its commitment to growth is further illustrated
provider. Having crossed the USD 1 billion mark annual by an industry-leading portfolio of over 1300 patents
run rate in the previous year, the Company has now set its across sectors and the focussed reskilling and upskilling
sights on the next milestone of USD 1.5 billion. of over 3000 engineers in AI and allied technologies
during the year.
The Company’s journey ahead is being enabled by a
focussed realignment with new opportunities around LTTS remains a committed enabler of deep transformative
AI, SDx, and Cyber Security. The emerging paradigm is journeys for our global customer base through engineering
supported by subsuming new capabilities from the Smart new frontiers of business success and sustainable excellence
World and Communication acquisition, which closed across domains.
successfully at the start of the fiscal year. By leveraging the
new synergies, LTTS has registered several multi-million deal Digital Platforms and Data
wins across segments, with a marquee USD 100 million
engagement reaffirming the positive impact of the decision
Centers
on the Company’s digital-focussed growth trajectory. This business mainly includes new-age businesses incubated
The Company expects that this trend of scaling new by the Company namely L&T EduTech, L&T-SuFin and Data
capabilities across markets will continue to strengthen over Centers. These ventures are a part of L&T’s plan to leverage
the coming years. digital technologies in some of its core domains in order to
As emerging technologies reshape the world, LTTS believes future-proof them and tap future growth opportunities.
that the future will be defined by a twin-track approach
to growth. This involves leveraging new partnerships and L&T EduTech
alliances while focussing on up-skilling and cross-skilling
our talent pool to unlock new growth avenues. The L&T EduTech is an EdTech initiative of the Company,
Company is also working closely with leading global hyper providing high-quality hybrid education for higher
scalers, including AWS, Google Cloud, Intel, Microsoft education students and working professionals. The
Azure, and NVIDIA, to develop new-age and future-proof Company partners with colleges, universities, corporations,
technology solutions and offerings. channel partners, and government agencies to facilitate
skills in niche core engineering and IT domains.

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L&T Edutech, building value for learners, academia and industry

L&T EduTech has developed a robust Learning Management product packages, including .Net, Java, Data Analytics,
System, Assessment Engine, Recruitment Automation, and Cybersecurity, and more. Along with industry-relevant
Skill Exchange platform with a wide bouquet of learning courses, this vertical also focusses on assessments. Further,
& assessment solutions with its learning programmes, the robust auto-proctored assessment platform helps
assessments & certifications, virtual & hands-on labs, organisations in their recruitment process for fresh talent
industry capstone projects, instructor-led training, and and workforce development. It measures workplace
industry immersion. competency in multiple stages of a learner’s life.
L&T EduTech also provides a discussion forum, the National
Engineers Ensemble Forum for Knowledge Sharing, and the
Major Achievements
Microlearning Platform (supported by the All India Council à Successfully onboarded over 40,000 students and faculty
for Technical Education [AICTE]), with free courses for its members in FY 2023-24, along with 9,600 working
learners. The forum optimises students’ educational efforts professionals, onto our platforms
and further enhances their continuous learning journey. à Conducted over 5,90,000 assessments, reflecting the
efficacy and scalability of our educational offerings
The two major verticals of L&T EduTech are as follows:
College Connect: This vertical aims to narrow the gap
à Secured major accounts, both domestically and
internationally, including prominent institutions such as
between academic learning and practical industrial Manipal Group, University of Petroleum and Engineering
experience. It offers courses in core engineering, Studies, Oman Education and Training Investments,
information technology, arts, and science with industry- Wolters Kluwer and work scope enhancements from
specific application-oriented knowledge. Aligning to the Chitkara University
National Education Policy (NEP) 2020, College Connect
offers multidisciplinary programmes which can be à Formed strategic partnerships with 17 institutions for
integrated into the college curriculum to replace/add on integrated programmes, with over 20 more in the pipeline
to the credits required for degree programmes. Further, à Witnessed rapid traction in enrollments in our
this business vertical organises career guidance sessions, Employability Skilling Programme
conducts regular faculty development programmes, and à Secured significant orders through government channels,
offers industry immersion programmes to deliver superior with Naan Mudhalvan (Tamil Nadu Skill Development
learning experiences to both teachers and students. Corporation) and Additional Skills Acquisition Programme
Enterprise: This vertical offers upskilling and reskilling (Kerala), with further prospects being created in UP and
opportunities for corporate employees with several Gujarat as well

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

à Successfully facilitated the physical delivery of education to building & construction materials, electrical & electronics
15K+ students through the Naan Mudhalvan initiative equipment, machinery tools & mechanical equipment,
à Launched channel business initiatives with CADD Center packaging, printing & office supplies, etc.
(Chennai) and IITM Pravartak Technologies Foundation In 2023, B2B e-commerce GMV (Gross Merchandise Value)
(Chennai). Similarly, the pilot course launched in Coursera was USD 15 billion in India and is expected to reach USD
has yielded positive feedback from global learners 55 billion by 2027. Similarly, the total transaction value
à Initiated export order business for Enterprise business, with in the Digital Payments segment in India is projected to
the first signup achieved with Vulcan Green Steel in Oman reach USD 150-200 billion in the next 3-4 years from the
current USD 65 billion. L&T is playing a pioneering role by
à Integrated Gen AI into our assessment engine,
foraying into digital B2B e-commerce through this platform
enhancing the effectiveness and efficiency of our
educational assessments with the objective of bringing about scale and speed in
supply chains, procurement processes, trade financing, and
Over the past few years, India has emerged as the world’s logistics, thereby helping the Indian MSME sector, which is
second-largest EdTech market. The dearth of industry- expected to benefit through this transformation.
based education and the acute need for a skill upgrade
among students and professionals in India will result in Major features offered by L&T-SuFin include:
more industry-led curricula and cross-functional credits. à Discovery of Industrial Products and Sellers through an
Additionally, digitalisation has made it easier for people efficient digital process
to learn at their own pace, anytime and anywhere. Such
factors provide a positive outlook for the scalability of L&T
à Getting competitive prices through the Request
for Quotation (RFQ) mechanism and online
EduTech in the medium-term. transaction fulfilment

L&T-SuFin à Financing support from partner banks and NBFCs

à Logistical support, including free transit insurance
L&T-SuFin is a B2B digital marketplace platform which was
The business has catalogued 5 lakh+ Stock Keeping
launched in March 2022 for buyers and sellers dealing
Units (SKUs) in 49 categories. Further, the business has
in industrial and construction goods to connect in an
onboarded 42,000+ sellers on the platform and has
efficient & transparent manner. The platform enables sellers
crossed a Gross Merchandise Value (GMV) of � 2,700 crore
to expand their sales reach and buyers to find the right
since inception.
products at an optimal cost and quality. The platform offers
a wide product range in industrial supplies & consumables,

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Hyperscale Data Center, Kancheepuram, Tamil Nadu

The business has taken several new initiatives to catalyse Data Center & Cloud Services
growth and scale up further, such as:
à Launched the SuFin App for buyers, leading to greater
Business
ease of usage & convenience
Overview
à Original Equipment Manufacturers (OEMs)-led supply
chain strategy for inducting reliable sellers with a good L&T’s Data Center is a new business unit of L&T that will
track record in business and ensuring the quality of goods offer Colocation Services (space, power, CCTV monitoring,
etc.), to MSME and other enterprises. In addition, it shall
à Formulated a central RFQ team to aid the buyers
also offer Cloud Services in Infrastructure as a Service -
à Enabled WhatsApp-based RFQs to improve the response IaaS (viz. application integration services) and Platform
rate by Sellers as a Service - PaaS (viz. operating systems and database
à Providing finance to the Buyer and/or Seller for doing management) models. The necessary ecosystems are in
transactions on the platform through Partner Banks or place to offer an integrated offering to customers, including
NBFCs. This has helped the MSMEs on the platform Network and Monitoring services through the NOC.
in getting liquidity to overcome the working capital Specialised Colocation for AI/ML/GPU-based workloads
gap and has increased their loyalty to the platform for enterprises based on diverse cooling technologies will
for repeat transactions also be offered. The business, branded L&T-Cloudfiniti, has
been launched to provide these services. The Company has
à Initiated steps to achieve ISO 27001 Compliance
committed investments to set up modern state-of-the-art
In FY 2024-25, the business plans to scale up its GMV and Data Centers at multiple locations in India, starting with
revenue with a focus on subscription, market partnership, Mumbai and Chennai regions.
higher margin product offerings, and expanding
financing solutions. Business Environment
India is witnessing a rapid adoption of digital technologies
in the overall Governance and Business environment,
thereby necessitating the need for a larger number of
data centers. The country is experiencing exponential
growth in Internet traffic fuelled by 5G, digital commerce,
digital entertainment, and the use of social media. India

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has over a billion mobile phones and more than 800 Strategic Business Plan
million internet subscribers. This is further fuelled by the
The Panvel Data Center of 2 MW is currently operational.
demand for AI/ML, which requires high computational
The first Hyperscale Data Center at Sriperumbudur,
capability, such as GPUs.
Chennai, will be built in stages with a total capacity of 30
Today, India is one of the fastest-growing data center MW. Further investments in new Data Centers at Mahape,
markets globally, with about 130+ data centers and Navi Mumbai and Bengaluru, Karnataka, of 20 MW each,
capacity of ~1000 MW by the end of FY 2023-24. Further, will be made over time. With these, a total of 72 MW of
new data centers with 1200+ MW capacity are expected to DC capacity is being built. Various specialised Colocation
come up by the end of 2026. services for enterprises are also being explored as an
With the aim to achieve USD 1 trillion Digital Economy by offering through these Data Centers by adopting resilient
2025-26, the Government of India and the various state hybrid Data Center designs catering to medium to high-
governments have come out with many schemes to support density compute workloads.
the ecosystem of the Telecommunication and Information
Technology industries, thereby creating a conducive Outlook
environment for data center business growth in India. The data center industry continues to grow at a fast
pace due to technological advancements and market
There are a few concerns, like the lack of a unified single
trends. Growing demand for computing and storage
window clearance across the country, rising input costs,
from enterprise customers, enhanced cloud adoption,
unavailability of redundant infra such as network and
rising rack densities (power consumption in KW), and
power connectivity from utility providers, and scarcity of
competitive pricing dynamics present several challenges
skilled manpower resources. Challenges also exist across
and opportunities as well. The emergence of use cases
states for sourcing renewables through Third-Party Open
based on Generative AI and its applications across various
Access (TPOA) as, besides inadequate surplus capacity, it
business processes requires the setting up of next-gen Data
also comes with certain added charges from the States,
Centers with resilient high compute workloads, enhanced
while third-party group captives (TPGC) require substantial
power usage effectiveness, and blending renewable
investments in SPV format with developers.
power in consumption. Such factors augur well for L&T to
position itself as a reliable Data Center Service Provider with
Competitive Positioning
sustainable practices embedded across the entire life cycle
The Company is in a position to offer a complete range of of Data Centers from build to steady-state operations.
IT, ITES, and Managed Services to its customers, including
the hosting environment/colocation services.
Further, L&T will leverage the expertise of its group
companies, such as LTTS and LTIM, in providing value-
added services. The Company has the capability to create
the complete value chain of Build, Operate, and Manage
Data Centers with initial offerings in the form of providing
Colocation and Managed services to customers.

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FINANCIAL
SERVICES
SEGMENT

Rural business finance

Overview RETAIL FINANCE

L&T Finance Limited (‘LTF’) (earlier known as L&T Finance à Rural Business Finance
Holdings Ltd (LTFH)) is a leading diversified Retail NBFC Rural Group Loans & Micro Finance (part of the product
headquartered in Mumbai. A � 80,000 crore+ strong profile of Rural Business Finance) offers sustainable
pan-India Retail franchise built over the past 15 years, the financing to women in rural India through the Joint
Company is amongst a select cohort of NBFCs classified as Liability Group mechanism. The Rural Group Loans &
Upper Layer (NBFC-UL) under the scale-based regulations Micro Finance business delivered a healthy growth of
of RBI. The business offers financing across the rural and 32% y-o-y, achieving a book size of � 24,716 crore
urban ecosystem through Rural Business Finance, Farmer while disbursing � 21,495 crore during the year,
Finance, Urban Finance (which includes Two-Wheeler reinforcing our position as a leading financier in this
Finance, Personal Loans, Home Loans and Loan Against segment. Through this business, LTF added 15.4 lakh
Property), and SME Finance. Over the years, LTF has created new customers during the year, empowering them to
a ‘Right to Win’ and emerged as a leading player in Rural build sustainable livelihoods. LTF’s 14K+ strong feet on
Group Loans and Micro Finance, Farm Equipment Finance, the street through a wide network of 1,700+ meeting
and Two-Wheeler Finance. centres (branches) across 14 states help deliver doorstep
LTF is accorded the highest rating of ‘AAA’ by four credit banking services to these women entrepreneurs, thus
rating agencies, viz. CRISIL, ICRA, CARE, and India Ratings fostering the formalisation of credit and financial
and has also received leadership scores and ratings from inclusion in rural India. Over the past 15 years, the
global and national Environmental, Social, and Governance business has financed over 1.4 crore women.
(ESG) agencies. Business momentum in the industry was also positive,
LTF’s Retail franchise and reach: with the industry size crossing � 4 lakh crore, supported
by tailwinds from a favourable macro environment and
Retail Book � 80,037 crore stable rural demand.
Geo Footprint Rural: 1,800+ branches servicing Going forward, the business will continue to leverage its
~2,00,000 villages | Urban: ~150 deep rural network, digital customer value proposition
branches servicing 100+ Cities/Towns and strong data-driven analytics to grow this business
Customer 2.3 crore+ vertical further while maintaining superior asset quality
Database vis-à-vis the industry.

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Farmer finance

à Farmer Finance with disbursements of � 8,586 crore, reflecting its

LTF, through its Farmer Finance vertical, is one of the strong position and market share in the two-wheeler
dominant farm equipment/tractor financiers in the financing space. The strength of the business lies in
country, having financed close to one lakh tractors in its tie-ups with leading OEMs, its 10,500+ strong
FY 2023-24. Even in a year when the domestic tractor sourcing network across 109 locations in urban areas,
industry remained subdued, LTF leveraged its strong coupled with our superior customer value proposition.
dealer and OEM network coupled with a best-in-class The digital proposition backed by algorithm-driven
digital & data-driven platform to grow the book by centralised underwriting enables the company to deliver
8% to � 13,892 crore with disbursements of � 6,848 industry-leading TAT.
crore in FY 2023-24. The business increased its focus LTF expects to continue growing this business through
on customer retention by leveraging its 11 lakh+ farmer both horizontal and vertical deepening of its distribution
database, resulting in a growth in ‘upsell’ disbursements. network. LTF is strategically shifting its focus towards
With its deep granular network and a 19-year legacy in increasing its share of prime consumers and also gaining
the tractor financing business, going forward, LTF aims market share in the financing of electric Two-Wheelers.
to leverage its strengths in order to gain market share in
this business while also targeting the farmer ecosystem
à Home Loans and Loan Against Property (LAP)
through launching new products addressing financing LTF’s Home Loans and LAP financing business gained
requirements at each stage of the Agri Value chain. momentum during the year with � 7,545 crore in
disbursements. Supported by a growth in the mortgage
URBAN FINANCE market, its book grew 38% to � 18,443 crore, with
Home Loans and LAP at � 14,550 crore and � 3,893
à Two-Wheeler Finance crore, respectively. The target customer segment is
The two-wheeler industry made a strong comeback in salaried individuals as well as self-employed non-
FY 2023-24, recording an impressive growth rate of professionals in major cities in India.
9% in two-wheeler sales, buoyed by a sustained revival In FY 2023-24, LTF did significant work towards
in demand in both urban and rural markets. LTF, an redesigning the digital journeys with an aim to provide
urban and semi-urban player, leveraged the tailwinds best-in-class customer experience. This will strengthen
of this increased demand through higher finance its customer value proposition coupled with expanding
penetration and grew the Two-Wheeler Finance book its product offerings and deepening its channel
to � 11,205 crore, a growth of 25% y-o-y. LTF financed partnerships, which will enable the portfolio to deliver
around 9 lakh units of two-wheelers during the year strong growth in the future.

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SME finance

à Personal Loans WHOLESALE FINANCE

This business was started three years ago with the aim The Wholesale Finance portfolio comprises Real Estate
of leveraging its strong Two-Wheeler customer database. Finance and Infrastructure Finance. In line with the Lakshya
Over the years, LTF built a book size of � 6,440 crore 2026 strategy of Retailisation, LTF was able to accomplish
as of FY 2023-24 and disbursed � 4,285 crore with a an accelerated reduction of its Wholesale Finance portfolio.
share of repeat customers at 51%. The average ticket The book now stands at � 5,528 crore, which includes the
size for our Personal Loans portfolio is ~� 1.5 lakh. Our Real Estate book of � 2,337 crore and the Infrastructure
D2C PLANET app (rated 4.4 on Playstore and 4.3 on Finance book of � 3,191 crore as of FY 2023-24, a steep
App Store) acts as an important customer acquisition reduction of 87% over the past two years. LTF expects this
channel, providing digital geo-agnostic Do-It-Yourself book to come down further over the near to medium-term.
(DIY) journeys to enhance customer experience.
During FY 2023-24, LTF calibrated its growth in the
Business Environment
portfolio to focus on revamping the digital journeys to Notwithstanding the uncertain global economic growth
provide best-in-class customer offerings. Going forward, paradigm, the Indian economy continued its growth
LTF will further scale this business through ‘cross sell’ to momentum in FY 2023-24 through:
its existing customers and large strategic partnerships to (a) Macro-financial stability
enhance customer acquisition while further sharpening
(b) Strong twin balance sheets of banks and corporates
our credit underwriting.
(c) Front-loading of public CapEx
à SME Finance
Despite the growth momentum, RBI targeted persistent
The SME sector continued its robust growth momentum high food inflation by remaining firm and maintaining
in FY 2023-24. This augured well for LTF’s SME Finance the policy repo rate at 6.50% through FY 2023-24.
business (pilot launched in FY 2021-22), which grew to Additionally, the average liquidity in the banking system
� 3,905 crore with a customer base of 20,000+. During was deep in the deficit zone between September 2023
FY 2023-24, the Company disbursed � 3,657 crore. and the end of March 2024, partly due to a sharp cut in
LTF added new locations during the year, taking the government spending and partly due to a slower pace of
total geo presence to 109. LTF also has strong channel banks’ deposit growth vis-à-vis credit growth.
partnerships, which it will leverage to grow this business
However, the NBFC sector remained resilient due to
while strengthening its digital journeys and product
substantial capital buffers, improving asset quality and
offerings going forward.

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Overview Discussion and Analysis Report Reports Statements

Housing finance

robust earnings. NBFC-ULs recorded healthy growth in forward, the aim is to make the achieved Lakshya goals
H1-FY 2023-24, and their GNPA ratio gradually improved sustainable through the convergence of Lakshya goals at
while their capital position remained robust. During H1- the LTF consolidated level.
FY 2023-24, NBFC loan growth (y-o-y) was highest for à LTF becomes a Single Lending Entity Structure
housing (58.9%), followed by MSME (57.4%), agriculture
(52.0%), and microloans (50.7%). This reflects the NBFC Simplification of corporate structure has been at the
sector’s thrust on ‘financial inclusion’. According to RBI, core of LTF’s strategy since 2016. In FY 2023-24, LTF
the increase in risk weights (on personal & NBFC loans) in completed the merger of L&T Finance Holdings Ltd.
November 2023 is pre-emptive in nature and in the interest and its wholly owned lending subsidiaries, L&T Finance
of macro-financial sustainability. Ltd. and L&T Infra Credit Ltd., resulting in the creation
of a single lending entity – L&T Finance Holdings Ltd.
Major Achievements Furthermore, the name L&T Finance Holdings Ltd. has
been changed to L&T Finance Ltd.
à Achieved Lakshya 2026 goals Two Years in Advance
In May 2022, LTF had, in line with parent L&T’s Lakshya
à PLANET App crosses 91 Lakh Downloads
strategy, outlined the following Lakshya 2026 goals: In FY 2023-24, the PLANET app (rated 4.4 in Playstore
& 4.3 in Appstore) crossed 91 lakh downloads, thereby
a) Retailisation >80%
achieving an important milestone within two years of
b) Retail Growth >25% CAGR its launch. Of this, over 11 lakh customers are rural.
c) Retail Asset Quality with Gross Stage 3 <3% and Net Through PLANET, LTF has sourced � 5,700+ crore and
Stage 3 <1% collected � 1,100+ crore. 75% of servicing is handled
by PLANET, thereby providing a seamless servicing
d) Retail RoA 2.8% - 3% experience to its customers.
In FY 2023-24, LTF achieved all its Lakshya 2026 goals à Digital Finance Delivery in Rural India
two years in advance, thereby transitioning to become a
100% of disbursements in Rural businesses are made
Retail NBFC.
through digital channels. The increased focus on
Thus, as of March 31, 2024, it stands at a Retail enhancing collections through digital channels in Rural
portfolio mix (i.e. Retailisation) of 94% with Retail book businesses has resulted in 25% of the Rural collections
size crossing a milestone of � 80,000 crore. Going being made digitally in Q4 FY 2023-24 compared to
14% in Q1 FY 2023-24.

101
 Financial
Services Segment

Personal finance

à Combining Growth with Sustainability combination of scorecards comprising credit bureau,

ƒ LTF as a business is aligned with Sustainability goals, account aggregator framework, and alternate
with ~50% of the loan book financing sustainable data signals.
livelihoods and 67% of the LTF workforce employed à Implementing Futuristic Digital Architecture
from Rural areas. LTF is re-architecting its tech stack to build a solid,
ƒ On the ESG front, LTF has, through the ‘Environment’ future-ready digital backbone across the domains
goals, shifted to green power, covering 39% of of customer experience, process engineering, IT
green usage in its operations, achieved ‘Social’ infrastructure, and information security. This will
goals through increase in the number of women enable LTF to provide innovative financial solutions,
Micro Loan borrowers to 64.20 lakh+ in FY 2023-24 seamless customer journeys, a faster go-to-market
and created One Single Lending Entity through the for new products, and faster collaboration with
‘Governance’ goals. partner ecosystems.

Significant Initiatives à Heightened Brand Visibility

Having achieved Lakshya 2026 goals at the Retail level, With an aim to establish the L&T Finance brand, the
going forward, the focus would be on reaching 2.8%-3% Company launched several branding campaigns across
RoA by FY 2025-26 at a Consolidated level and building a rural and urban areas through various initiatives,
sustainable & predictable Retail franchise. Towards this, LTF viz. print media, outdoor media including billboards,
defined five pillars as below: airport advertising, rural wall branding, digital media
by sponsoring global sporting events, participation in
à Enhancing Customer Acquisition leading industry forums & fests, etc. LTF also launched its
LTF leverages the strengths of its presence, distribution sonic identity during the year to increase its brand recall
franchise, digital delivery & TAT to grow its fulcrum & capture customer mindshare.
businesses of Rural Group Loans & Micro Finance, à Capability Building
Farmer Finance and Two-Wheeler Finance. This has led
to a sustainable customer base of over 2.3 crore sourced LTF strengthened leadership in critical functions by
through the rural and urban funnels. appointing seasoned industry professionals for the
position of Chief Digital Officer. Further, the Company
à Sharpening Credit Underwriting created two new positions and recruited a Chief AI
LTF endeavours to create a next-gen integrated & Data Officer and Chief Marketing Officer. LTF has
underwriting platform leveraging multi-axes strengthened its internal talent pool through the
underwriting through best-in-class technology with a

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Overview Discussion and Analysis Report Reports Statements

Two-wheeler loans

recruitment of a second line of leadership comprising LTF has also invested in improved digital analytics as well
national sales heads in growth businesses of Rural Group as new-age credit underwriting in order to ensure that
Loans & Micro Finance, Farm Equipment Finance, Two- multiple variables/parameters are considered to arrive at the
Wheeler Finance, and Personal Loans. optimal credit decision.
During the year, LTF received a sanction of USD Further, the company uses advanced dashboards, which
125 million each from multi-lateral institutions provide real-time identification of trends and breaches,
– the Asian Development Bank (ADB) and Japan empowering it to manage risks proactively and take
International Co-operation Agency (JICA) for social and immediate action to mitigate any potential threat. By
sustainable financing. analysing behavioural patterns, alternative data sources,
geopolitical data, and macroeconomic factors, LTF can
Risk Management Framework make informed decisions and prevent customers from
LTF has a robust framework in place to effectively being delinquent in the future. Steps in this regard have
manage risks. The Risk Management Committee, which been taken to build a new-age underwriting architecture,
is constituted by the Board, is responsible for overseeing stringent adherence to the prudent risk norms, and
the Risk Management Framework. The Framework covers diligently follow the institutionalised processes. All
the Company’s risk appetite statement, risk limits, risk these measures have led to improved asset quality amid
dashboards, and early warning signals. volatile times.
With the changing business landscape and the emergence Market/Liquidity Risk
of new risks such as digital and data privacy risks,
Adoption of a prudent approach helps protect the
reputational risks, and climate-related risks, LTF is building
Company from market and liquidity risk. LTF maintains a
newer risk frameworks to pre-empt and manage such new
positive liquidity gap on a cumulative basis in all the time
and emerging risks.
buckets up to 1 year. A Contingency Funding Plan (CFP) has
Credit Risk also been implemented by regular monitoring to respond
to severe disruptions that might affect the ability to fund
Credit risk constitutes the most significant risk for
some or all activities in a timely manner and at a reasonable
the company. To demonstrate strength in credit risk
cost. A governance structure is defined within the CFP
management, a new age underwriting architecture has
to invoke Crisis Management measures in case the need
been put in place which focusses on the creation of
arises. LTF ensures a positive interest rate sensitivity gap
a robust and resilient portfolio. The customer-centric
over a one-year horizon. This acts as a mitigant against
underwriting engine of LTF is equipped to effectively
interest rate risk in the Balance Sheet.
identify different customer segments and tailor the risk
assessment and underwriting processes to each segment.

103
 Financial
Services Segment

Tree Plantation drive under Project Prakruti, Tumkur, Karnataka

IT Security Risk As per India Ratings, the growth rate in AUM of NBFCs
LTF has set up an Information Security Management to moderate in FY 2024-25 compared to FY 2023-24.
System (ISMS) for effective management & operations. The Following the increase in risk weights by the RBI, the cost
company is also certified as ISO 27001 compliant. of funds for NBFCs from banks has increased, and it is
likely to remain elevated in FY 2024-25. The incremental
The Company’s Digital Platform has a 3-Tier Security funding requirement for the NBFC sector is expected to be
Architecture with inbuilt disaster recovery along with � 4.5 trillion in FY 2024-25, and the volume of public NCDs
multiple-layer security, protecting IT networks, websites & might go up in FY 2024-25.
applications, databases, and end-user laptops/desktops for
data leakage, Denial-of-Service attacks, and ransomware Financial performance of the segment
and malware. Further, access control and system health and
availability monitoring are undertaken 24X7. Revenue from Operations
� crore � crore
The Company’s security team conducts Vulnerability 4.2%
Assessments on all critical applications, system and network 16000 100000
devices, and mobile applications to proactively find any 13109
12575 80000
security bugs, misconfiguration, or missing critical security 12000
patches that can be exploited. LTF also engages with
60000
third parties to conduct vulnerability assessments and
8000
penetration testing to ensure security against cyberattacks. 40000

Outlook 4000
20000
As per CRISIL Ratings, India’s GDP growth is likely
to moderate to 6.8% in FY 2024-25. It sees greater 0 0
2022-23 2023-24
transmission of policy rate hikes, impact of regulatory
actions on unsecured lending, reduced fiscal impulse
to growth, and uneven economic growth for key trade
partners as likely factors which may weigh in on the The segment’s revenue improved by a modest 4.2%
GDP growth for FY 2024-25. On the other hand, a y-o-y at � 13,109 crore for FY 2023-24 due to the sell-
gradual pick-up in private CapEx and the government’s down of the wholesale loan book while scaling-up retail
continued support towards infrastructure will be some of disbursements. The core strategy for the Financial Services
the positive factors.

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

‘Digital Sakhi’ - Flagship CSR project to promote women entrepreneurship

business in the Lakshya 2026 strategic plan revolves around segments due to the overall improvement in economic
its transformation into a full-scale retail-oriented, digitally- activity. The Loan Book stood at � 85,565 crore as of March
enabled business. Several initiatives have been completed 31, 2024, registering a growth of 6% over the previous
to exit the wholesale exposure, resulting in 94% of its loan year, consequent to higher retail disbursements. The Net
book being retail credit as of March 31, 2024. Interest Margin (NIM), including fee income, improved from
8.7% to 10.7%, mainly due to the increase in the share of
Loan Book and NIM + Fees% the retail portfolio coupled with higher fee income, partly
� crore
offset by a marginal increase in the borrowing rates.
100000
85565 The Gross Non-Performing Asset (GNPA) ratio improved to
80893
80000 3.15% as on March 31, 2024, from 4.74% as on March
10.7
31, 2023. The net NPA ratio has improved to 0.79% as on
60000 March 31, 2024, against 1.51% as on March 31, 2023.

40000
8.7
20000

0
2022-23 2023-24
Loan Book NIM + Fees%

Disbursements of loans and advances at � 56,293 crore

for the year registered a growth of 20% on a y-o-y basis,
reflecting higher credit demand in the various retail

105
 Development
Projects Segment

DEVELOPMENT
PROJECTS
SEGMENT

Hyderabad Metro extends ~70 km across three lines,

easing commuting woes, Telangana

The Development Projects Segment comprises: The segment recorded revenue of � 5,628 crore for the
a) The Hyderabad Metro Rail project, executed year ended March 31, 2024, higher by 11.9% over the
through a wholly-owned subsidiary, L&T Metro Rail previous year. The growth in revenue is mainly due to
(Hyderabad) Limited increased Metro ridership in Hyderabad coupled with the
monetisation of commercial property during the year.
b) The Thermal Power Plant project, executed through
Nabha Power Limited, a subsidiary of L&T Power The segment reported an operating profit of � 1,333
Development Limited crore for FY 2023-24, higher than the � 715 crore
reported in FY 2022-23. The increase is mainly on
The Company, on April 10, 2024, concluded the sale of account of the monetisation of commercial property in
its entire stake in L&T Infrastructure Development Projects Hyderabad Metro SPV.
Limited (L&T IDPL), a joint venture primarily engaged in
the development and operation of toll roads and power The funds employed by the segment as on March 31,
transmission assets, to Epic Concesiones Private Limited, 2024, at � 19,192 crore, was lower by 2.8% compared to
an investee company of Edelweiss Infrastructure Yield March 31, 2023, mainly due to the annual amortisation of
Plus Strategy, managed by Edelweiss Alternative Asset intangible assets and sale of commercial property.
Advisors Limited.
L&T METRO RAIL (HYDERABAD)
Financial performance of the segment
LIMITED
Revenue from Operations and EBITDA
Overview
� crore 11.9%
L&T Metro Rail (Hyderabad) Limited (L&TMRHL) is a special
7000 purpose vehicle (SPV) created to undertake the business
6000 5628
5029 of constructing, operating and maintaining a Metro Rail
5000 System, including Transit Oriented Development (TOD)
1333
4000
in Hyderabad on Design, Build, Finance, Operate and
3000
Transfer (DBFOT) basis under a Concession Agreement
2000 715
signed between the SPV and the Government of Telangana.
1000
0
The remaining period in the concession is approximately
2022-23 2023-24 48 years, with further extensions available as per the
Revenue EBIDTA conditions set out in the Concession Agreement signed
with the Government of Telangana.

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

Hyderabad Metro Rail Project – the world’s largest PPP project in the Metro Sector, Telangana

The Hyderabad Metro Rail system consists of three elevated The average daily ridership in FY 2023-24 was 4,42,000 as
corridors from Miyapur to L.B. Nagar, Jubilee Bus Station against 3,61,000 in FY 2022-23, with all-time peak traffic
to Mahatma Gandhi Bus Station, and Nagole to Raidurg, of 5,47,000 achieved in one of the days. This increase in
covering a network of 69.2 km. The metro rail system was average ridership at Hyderabad Metro is the best among all
commissioned in phases, with the final stretch being put Indian Metro Rail Projects post-COVID.
into commercial operation in February 2020. With a view to enhancing the vibrancy of L&TMRHL’s
The Concession Agreement also includes real estate commercial spaces in the post-COVID scenario, the business
development rights of 18.5 million sq. ft. in the form has improved ambience and aesthetics at all four malls, viz.
of Transit Oriented Development (TOD), of which 3.625 wall panelling, public seating, horticulture, convenient entry
million sq. ft. has been monetised to a third-party investor. & exit areas, toilets, etc.
In addition, L&TMRHL has developed and operationalised
1.20 million sq. ft. of leasable area across four retail malls. Major Achievements
The occupancy in these malls is more than 80% at the end QR ticketing (Digital & Paper), introduced first by L&TMRHL,
of FY 2023-24. L&TMRHL is targeting the maximisation of has made travel contactless, easy, and hassle-free for
upfront revenues from its TOD rights by monetising these commuters. Further, L&TMRHL was India’s first metro rail
rights to third-party investors. A new business model of to roll out WhatsApp E-Ticketing System. Most of the
upfronting revenues from TOD is being worked upon with Metro tickets are now issued in a paperless format, thereby
all the stakeholders involved. reducing paper consumption.

Business Environment The repositioning of two malls – Erramanzil Mall as

a premium mall and HITEC City Mall as an electronic
Hyderabad Metro is the safest, cleanest, fastest, and most and entertainment destination – has attracted
reliable urban transport system in the city of Hyderabad. important retail brands.
Additional benefits like reserved seats for senior citizens
and ladies, WhatsApp complaint services, and various Advertisement space on the project assets offers good
promotional schemes are introduced regularly to incentivise revenue potential by launching various innovative products
commuters to shift their transport preferences to Metro rail. and services, including digital advertisements.
In addition to reduced noise pollution, the project is also Non-fare revenue generation through cross-selling of
facilitating a reduction in carbon footprint, being a non- products to commuters is being actively pursued. Telecom
fossil fuel mode of transport. (i.e., Optical fibre & towers) requirements are a major
contribution to revenue in this segment.

107
 Development
Projects Segment

Next Galleria Punjagutta, Hyderabad, Telangana

The business has also created 3.5 lakh sq. ft. of retail/ The business is exploring additional non-fare revenue
commercial spaces across all its 57 stations for earning opportunities through various measures such as consultancy
rental incomes from these areas. Station retail occupancy services to other metros, leasing out Optical Fiber networks,
levels have crossed 60%, a significant jump from the below letting out spaces for erecting mobile towers and setting up
20% levels during the COVID-19-affected years. EV charging stations (55 charging points already available),
With a view to increasing the use of green energy, the Royalty earnings from QR Ticketing and OTS partners, etc.
business has replaced 11% of its grid power requirements L&TMRHL strongly believes in safety and has put
for Metro operations with captive solar power of 9.0 mechanisms in place to achieve this objective. The
MWp. Solar panels have been installed on the rooftops Automatic Train Protection (ATP) system, the station
of Metro stations and in the depot areas. Another 3 equipment viz., the Computer-Based Interlocking
MWp of Solar capacity is expected to be commissioned (CBI) and wayside ATP are arranged to ensure safe
by December 2024. Further, the SPV has also created 155 and uninterrupted train operations. Further, Passenger
rainwater harvesting pits at various stations & depots, Emergency Stop Plungers are provided on each platform
in which approximately 58 million litres of water are and in station control rooms (SCR) to stop a train
harvested per year. immediately in case of emergency.

Significant Initiatives Outlook

As a next-level upgrade of its ticketing system, L&TMRHL The sustained focus on bringing employees back to work,
is working towards introducing the Open-Loop Ticketing as well as an increase in workforce at most corporates, is
System (OTS) in FY 2024-25. This will aid digital payments expected to support increased ridership in FY 2024-25.
by commuters. Implementation of OTS is expected to make Metro travel
Robust and affordable last-mile connectivity for commuters effortless and thereby enhance the passenger experience.
clearly helps in enhancing ridership on the Metro system. The use of Business Intelligence tools for the analysis of
In this regard, L&TMRHL has added exclusive shuttle business & passenger data is expected to drive improved
services to and from metro stations to corporate offices. decision-making and optimisation of operations.
Also, it has enhanced its partnership with Telangana State Further, attracting the desired brands for the remaining
Road Transport Corporation (TSRTC) for feeder services. space in the malls, in line with the updated positioning,
The focus also remains on enhancing parking areas remains a focus area for FY 2024-25. After the
across the Metro network and enhancing the commuter successful monetisation of the Raidurg TOD undertaking,
experience by way of facilities such as escalators, elevators, other monetisation transactions are being proposed.
feeder bays, etc.

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

2x700 MW Supercritical Thermal Power Plant, Rajpura, Punjab

The transaction documents for these deals have been under an allocation from the State Government. The plant
submitted for approval by the Government. is operated by an in-house team of experienced operations
The Hyderabad Metro Rail is recognised as an environment- and maintenance professionals.
friendly, safe, fast, and reliable mode of transport, The power plant has been running successfully for over ten
incorporating the best industry practices. With the years with an availability of over 85%. The plant has been
proposed Phase-2 expansion of Hyderabad Metro by the most reliable source of power for the State of Punjab
the Government of Telangana in the medium-term, the and has supported its requirements with uninterrupted
reach of the metro rail system will increase across the city supply during peak season. NPL also happens to be the
and significantly enhance the average ridership in the lowest cost coal-based power producer within Punjab with
medium to long-term. the best operational efficiency.

Nabha Power Limited (NPL) Business Environment

The electricity demand in Punjab remained stagnant during
Overview the year, largely on account of unprecedented rains in
the state in Q1, during which the demand had dropped
NPL owns and operates a 2 X 700 MW supercritical
substantially. The average demand growth in Punjab has
thermal power plant at Rajpura, Punjab. The entire
remained sluggish at ~1% in FY 2023-24 (~8040 MW- FY
power generated from this plant is sold to Punjab
2023-24 vs ~7978 MW- FY 2022-23).
State Power Corporation Limited (PSPCL) under a
25-year Power Purchase Agreement (PPA), which is Despite multiple challenges, NPL made every possible
effective till the year 2039. effort to secure coal from various CIL subsidiaries while
minimising the reliance on costly imported coal, thereby
The plant sources its fuel from the subsidiaries of Coal
ensuring adequate coal supply, further resulting in
India Limited (CIL) under a 20-year Fuel Supply Agreement
uninterrupted power supply at an affordable cost to the
(FSA). The FSAs are for a total annual contracted quantity
State of Punjab during the year.
of 52.4 Lakh MT. The Company has secured approvals
to arrange coal from alternate sources to make up for
any shortfall in the supply of coal. The Bhakra-Nangal
distributary is a perennial source of water for the plant

109
 Development
Projects Segment

Nabha Power Plant - Control Room, Rajpura, Punjab

Major Achievements Thermal Power Plants (TPPs) Rules, 2023, on mandatory

co-firing of crop residue pellets with coal in TPPs in the
à Annual PAF: 94%, highest ever in the NPL history and
National Capital Region (NCR) and adjoining areas, with
~99% during the critical paddy season
environmental compensation provision for non-compliance
à Annual PLF: 84% vs all India thermal average: 69% applicable from FY 2024-25 onwards.
à Further, the highest ever monthly PLF of 97.6% was
Recently, the Ministry of Power (MoP) has notified the Late
achieved in August 2023
Payment Surcharge Amendment Rules 2024, under which
à NPL railway siding connected with the Dedicated Freight Generators will have to mandatorily offer un-requisitioned
Corridor Corporation of India (DFCCIL) network surplus power in exchange. This has been done to ensure
that any unused surplus power is fed into the grid to meet
Outlook shortages, especially during the high demand periods.
In FY 2024-25, the average power demand in Punjab is
NPL expects to commission Flue-Gas Desulphurisation
expected to rise to ~8800 MW (Peak 16,000 MW), and
(FGD) for both units during FY 2024-25, thereby complying
as a result, NPL is expected to operate at a high PLF of
with the new environmental norms ahead of the revised
~86% and remain at the top of the merit order among the
mandated deadline.
thermal power producers within the state.
Major focus areas for NPL during the coming year would
On the fuel side, coal supply may continue to pose
be Health, Safety and Environment (HSE) compliance,
challenges. Anticipating the high demand, the Ministry
maximising plant availability, improving operational
of Power (MoP) extended the mandatory 6% blending of
efficiency, commissioning of FGD, securing adequate
imported coal till June 2024 for all thermal power plants.
and the right coal, resolution of pending litigations, and
The Ministry of Environment, Forest and Climate Change digitalisation initiatives for higher productivity.
(MoEF&CC) has notified the Agro Residue Utilisation by

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Overview Discussion and Analysis Report Reports Statements

‘OTHERS’
SEGMENT

Artist’s Impression

The Gateway, Sewri, Mumbai, Maharashtra

The ‘Others’ Segment comprises: an improvement in the Valves business revenues given the
a) Realty Business higher demand and in the Smart World & Communication
business due to better execution. Lower consumer
b) Industrial Machinery, Products & Others comprising spending in the global automotive industry impacted the
Construction & Mining Equipment, Rubber Processing revenue of the Rubber Processing Machinery business.
Machinery, and Industrial Valves
The operating margin for FY 2023-24 improved to 21.2%
c) Smart World & Communication (Residual portion) from 19.8% for the previous year, mainly due to higher
L&T completed the divestment of the carved-out portion of revenue in the Realty business.
Smart World & Communication business to L&T Technology The funds employed by the segment as on March 31, 2024,
Services Limited (LTTS) on April 01, 2023. at � 7,975 crore, have increased by 1.7% over the previous
year, largely in line with the previous year.
Financial performance of the segment

� crore Revenue from Operations and OPM% Realty Business

12000 35.4%
Overview
10000 L&T Realty is positioned amongst the top real estate
8493
8000 709 developers in India, with a development potential of 70
6271 21.2% million sq. ft. across the residential, commercial, and retail
6000 554 segments in Mumbai, Navi Mumbai, Bengaluru, NCR, and
4000 19.8%
4336 Chennai. The business model includes the development of
own land, partnership with land/development right owners,
2000 4106 and the sale & leasing of commercial spaces.
1611 3448
0
2022-23 2023-24 Residential Segment
Realty Industrial Machinery & Others 1. The Gateway, Mumbai
SWC OPM%
The Gateway, Sewri, Mumbai, is a premium residential
project launched during the year. It is the epitome of
Revenue for the segment registered a growth of 35.4%, luxury, standing tall amidst the grandiose skyline of
from � 6,271 crore in FY 2022-23 to � 8,493 crore in FY South Mumbai. The residence offers uninterrupted
2023-24. The growth was largely in the Realty business views of the Arabian Sea as well as the world-renowned
due to the higher handover of flats. Additionally, there was Sewri mudflats.

111
 Others
Segment

Artist’s Impression

Elixir Reserve, Powai, Mumbai, Maharashtra

2. Island Cove, Mumbai 5. Crescent Bay, Mumbai

A residential project, Island Cove, Mahim, launched With the Arabian Sea as the backdrop, Crescent Bay is
during the year, is positioned as a gateway to the City a six-tower residential complex at Parel with the perfect
of Dreams, adorned with a timeless charm. In the midst setting for an exclusive lifestyle. The highlight of this
of the bustles of the Mahim suburb, Island Cove will project is a sky deck and other lifestyle amenities on
be an aspirational destination for home buyers with level 21. The project is completed and occupied by
the design of a sanctuary - an intersection of luxury, 1300+ families.
comfort, and connectivity.
6. Seawoods Residences, Navi Mumbai
3. Emerald Isle, Mumbai Part of India’s first Transit-Oriented Mixed-Use
Nestled in the sprawling serenity of Powai, L&T Development, the Seawoods Development is spread
Realty Emerald Isle is an oasis of luxury, offering its across over 40 acres. Seawoods Residences offers
residents spacious and elegant homes spread over 90 unmatched connectivity and is surrounded by
acres and being developed in phases. It is a planning breathtaking views. The project has garnered sufficient
masterpiece – built on three levels of parking to afford interest from consumers. Nearly 75% of Phase I and II
a traffic-free podium and a host of amenities amidst were handed over in the current financial year. Phase
its central greens. III launch has brought in new customers to the large
resident community and cemented L&T’s name in the
4. Elixir Reserve, Mumbai Navi Mumbai region.
This is a premium residential project in Powai that
is enveloped in a picturesque setting. This project is 7. Rejuve 360, Mumbai
replete with state-of-the-art amenities, including an Designed on the wellness thought, this residential
ICSE school, commercial offices, and retail spaces complex is focussed on the theme - rejuvenation of
within close proximity. The project is nestled amidst mind, body, and soul. Conveniently located in Mulund
lush greenery, a serene lake, and a picturesque hillock, West, the project has sustained its position among
positioned as a fusion of man’s quest for the highest premium developments in this micro-market.
luxury and nature’s bounty.

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Artist’s Impression

L&T’s Innovation Campus, Powai, Mumbai, Maharashtra

8. 77 Crossroads, Mumbai 2. Commercial Towers at Powai, Mumbai

It is a gated community situated in Ghatkopar and has Designed to provide superior workspaces, it is part of
functional residences with unmatched comforts and a larger integrated development promoting the ‘Walk
conveniences. The location provides easy access to every to Work’ concept. It is one of the coveted corporate
corner of the city. addresses in Powai, Mumbai with proximity to excellent
social infrastructure. Much of this development has
9. Raintree Boulevard, Bengaluru already been completed, and some of it has been
Conceptualised on the live-work-play theme, Raintree divested as well.
Boulevard is a 65-acre mixed-use development project
located in the high-growth micro-market of Hebbal, 3. Technology Park, Bengaluru
Bengaluru. Situated just 20 minutes away from the Located in the rapidly growing micro market of Hebbal,
airport, the project offers fine living and best-in-class the project has the scope of development of 3.4 million
amenities. Further, L&T Tech Park and a large format sq. ft. of commercial office spaces. Tech Park-1 (Phase 1)
mall are within walking distance from the project. office space, having an area of 1.2 million sq. ft., is
completed. The offices with unmatched connectivity
10. Avinya Enclave, Chennai and well-designed spaces are set to become the most
Launched during the year, this project is spread over favoured address for many technology companies.
a 40-acre mixed-use development in Manapakkam,
Chennai, and is located opposite the main L&T campus. 4. L&T Innovation Campus, Chennai
From exceptional amenities on the premises to the The 6.5 million sq. ft. L&T Innovation Campus, a mixed-
best retail outlets, commercial hubs, and top social use development sprawled over 40-acre located at
infrastructure in proximity, the residences are crafted to Manapakkam, Chennai (IT Hub). Phase 1 comprises two
grant a timeless living experience in every sense. towers, ‘Ananda I’ and ‘Ananda II’, with a built-up area
of 1.7 million sq. ft., which was recently launched in
Commercial Segment March 2024. It brings together a world-class innovation
business/IT hub and an eclectic mix of leisure and
1. Seawoods Grand Central, Navi Mumbai
lifestyle amenities, with a lush central parkland at
The Seawoods Grand Central offers 2.6 million sq. ft. its core. The development offers the convenience of
of Grade A development with a unique combination Walk to Work.
of commercial and retail business spaces. It is one of
the most successful transit-oriented developments
in the country.

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Segment

Seawoods Grand Central, Navi Mumbai, Maharashtra

5. Other Commercial Developments Under this platform, L&T will build and develop office
Other commercial developments of L&T Realty spaces, while CLINT will market the office spaces. CLINT
include those in Faridabad, which is the only LEED will gradually acquire the ownership of these properties in a
gold-rated building in the entire Faridabad region, phased manner from FY 2024-25 onwards.
serving several multinational marquee clients. The
other is in Mahape, Navi Mumbai, which, besides Business Environment
being LEED gold-certified, offers a range of premium The business environment continues to remain robust as
amenities. Another development is the upcoming residential sales surged across the top 7 cities by 30%+ in
state-of-the-art office space in Whitefield – the 2023 despite the rise in both interest rates and housing
entertainment hub of Bengaluru. prices. Affluent housing (Premium and Luxury properties
priced above `4 crore) has grown 75% in 2023 over the
New Growth Opportunities previous year. The shift was also witnessed towards Tier
2 cities, which was not only spurred by aspirational living
Residential but also due to infrastructure upgradation and seamless
L&T Realty and Housing Development Finance Corporation’s connectivity, indicating fundamental swings that will
(HDFC) real estate arm, HDFC Capital Advisors, will navigate the sector towards new horizons.
be entering into an agreement to set up a residential
Industry reports indicate that a total of 59.6 million sq.
development and investment platform. The joint platform
ft. was transacted across the leading eight markets in the
shall be structured as an Alternative Investment Fund (AIF)
country, constituting a 15% y-o-y growth in the year 2023.
and will invest in mid-market residential projects. Both L&T
Further, the office market witnessed 42.9 million sq. ft. of
Realty and HDFC Capital Advisors will make sponsorship
new office space additions in 2023.
investments into this platform, and L&T Realty will be
responsible for the execution of the projects. Office leasing volumes were marginally lower than the
all-time high of 60.6 million sq. ft. achieved in 2019.
Commercial Bengaluru was the leader in the leasing market with a
L&T Realty and the Singapore-listed CapitaLand India Trust volume of 12 million sq. ft.+ in 2023, followed by Chennai
Management Pvt. Ltd., trustee-manager of CapitaLand and NCR as the top three markets. Similarly, Chennai
India Trust (CLINT), have entered into a non-binding also recorded strong growth during the year. Further, the
agreement for a commercial platform to develop ~6 million vacancy levels decreased by 94 basis points over last year to
sq. ft. of prime office spaces across Bengaluru, Chennai, 16% in 2023.
and Mumbai.

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Raintree Boulevard, Bengaluru, Karnataka

Back-to-office policies of corporates and demand for Despite price hikes, affordability is improving across
Global Capability Centres (GCC) are expected to keep markets as income growth outstrips price changes. A fear
the momentum intact. This year’s improved investor and of increased rates in future is tempting home buyers to
developer sentiments have made the commercial and retail lock in the price today. Further, changing demographics,
real estate categories more vibrant. The increasing number viz. rapid urbanisation, family nuclearisation, rising income
of Real Estate Investment Trusts (REITs) is an encouraging levels, and renewed need for home ownership, are
sign, further facilitating faster recycling of capital in an expected to drive growth in residential real estate.
otherwise capital-intensive sector. Homebuyers’ preferences for bigger homes, large-gated
communities, better amenities, and attractive pricing will
Major Achievements sustain the demand for premium housing.
à Launched three new residential projects: The Gateway
(Sewri), Island Cove (Mahim), and Avinya Enclave (Chennai The reintroduction of back-to-office and redundancy of
Innovation Campus) remote working have positively affected the residential real
estate industry widely. Also, many corporates and offices
à Inauguration of Phase 1 comprising two towers, ‘Ananda
that adopted the remote working model earlier will now be
I’ and ‘Ananda II’ in Chennai Innovation Campus
required to expand their employee accommodation base,
à Hand over of Residential spaces: leading to a surge in property demand.
ƒ Around 0.88 million sq. ft. in Seawoods, Navi Mumbai India’s commercial real estate is set for strong growth,
ƒ Approx 0.55 million sq. ft. in Raintree Boulevard, driven by robust macroeconomic fundamentals, domestic
Bengaluru consumption resilience, and cost-effective business
à Leasing and Sale of Commercial Office spaces: operations that attract corporate offices. The emerging
markets viz. Data Centers, Industrial Parks, and Flex Spaces
ƒ Leased Tech Park 1 at Bengaluru with an area of 1.13
(a hybrid of industrial and office spaces) are gaining
million sq. ft.
traction and are likely to witness rapid growth.
ƒ In Seawoods, a commercial tower with an area of 1.02
million sq. ft. sold in March 2024 Environment, Sustainability, and Governance are the key
variables for achieving success in the Indian real estate
Outlook industry. Transparency and stakeholder interaction are
becoming increasingly important. Such growing awareness
Strong sales momentum witnessed in FY 2023-24 is likely
places developers like L&T Realty in a strong position.
to be sustained during FY 2024-25 as well. Residential
inventories are low, and mortgages have remained flat.
Going forward, interest rate cuts will further add tailwinds
to the momentum.

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Segment

GD 705 Motor Grader

Construction Equipment LTCEL, located in Doddaballapura, near Bengaluru,

Karnataka, manufactures vibratory compactors, wheel
& Others loaders, hydraulic excavators, asphalt paver finishers,
pneumatic tyred rollers, skid steer loaders, hydraulic power
Overview packs, cylinders, pumps, motors, and other components.
The Construction Equipment & Others (CE&O) business The RPM business, located in Kancheepuram near Chennai,
includes the manufacture and marketing of construction is engaged in building rubber processing machines and
and mining equipment and equipment for the tyre tyre automation systems for the global tyre industry and
manufacturing industry, broadly segregated into has supplied equipment to various tyre majors in over
Construction & Mining Machinery (CMM) and Rubber 46 countries across the globe. The division also supports
Processing Machinery (RPM). CMM further comprises the certain customers in the tyre industry with ‘build to print’
Construction & Mining Equipment business unit (CMB) products and customised machinery as well.
within L&T and L&T Construction Equipment Limited
The Product Development Centre (PDC), based in
(LTCEL), a wholly owned subsidiary of L&T.
Coimbatore, with its highly skilled design team, renders
The CMM division is engaged in the business of distribution engineering and product development support for CMM
and after-sales support for hydraulic excavators and dump and RPM businesses.
trucks manufactured by Komatsu India Private Limited
(KIPL) and other mining and construction equipment Business Environment
manufactured by Komatsu worldwide. It also handles
the distribution and after-sales support for a range of Construction & Mining Machinery Business (CMM)
construction equipment, including wheel loaders, vibratory The investment in the construction and mining sectors is
compactors, and hydraulic excavators manufactured one of the key demand drivers of the CMM business.
by LTCEL. In addition, the business handles distribution In FY 2023-24, the Government’s continued thrust on
and after-sales support for other mining equipment, infrastructure building was evident from higher budgetary
viz., surface miners, sand plants, crushing solutions, and allocations for highway construction. However, due to
apron feeders manufactured by L&T’s Minerals & Metals factors such as state elections, erratic monsoons, and
business in Odisha. floods in parts of Northeast India, the road construction
industry witnessed subdued activity during the year.

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PC 2000 Hydraulic Excavator and HD 785 Dump Truck

In the mining sector, coal and iron ore production The Indian automobile industry has an enormous demand
registered a growth of 11% and 7% respectively over the potential, supported by a large consumer base. Further,
previous year. In the cement sector, the installed capacity India is on track to become the largest EV market by 2030,
increased from 590 MT to 620 MT, with overall production with a total investment opportunity of more than USD 200
moving higher to 435 MT in FY 2023-24. billion over the next ten years.
The market demand for wheel loaders and vibratory Government measures such as imposing anti-dumping
compactors grew by 3% and 33% respectively whereas and countervailing duties, as well as promoting domestic
the demand for premium excavators dropped by 3% manufacturing, have substantially reduced tyre imports
in FY 2023-24. from Southeast Asia and China. On the flip side, the
The business team created awareness amongst its increasing cost of raw materials is impacting profit
customers and helped them evaluate equipment with margin, while dependence on imports for certain raw
regard to benefits of overall life cycle costs. This aided materials continues.
in warding off stiff competition from cheaper mining As per the ATMA (Automotive Tyre Manufacturer’s
equipment manufacturers, especially in the dump truck, Association) report, the domestic tyre industry has made
tipper, and wheel loader segments. investments of over � 35,000 crore in the last three years,
aided by improved efficiency via debottlenecking and fresh
Rubber Processing Machinery Business (RPM) capacity creation.
The demand for tyre-making machinery is directly co-
related to the growth momentum in the automobile, Major Achievements
agriculture, and mining sectors.
Construction & Mining Machinery Business (CMM)
The global automotive industry has been weighed down à Received the largest order from the Aditya Birla Group in
by slow consumer spending, high interest rates, and the cement space for the supply of equipment along with
supply chain disruption. Technological shifts, changes in a parts maintenance contract for ten years
consumer behaviour, and disruptions in the global supply
chain have prompted many automobile manufacturers à Supplied 7000th PC 130 excavator and 11000th PC 210
excavator from Komatsu India Private Ltd (KIPL)
to use innovation and technology to meet these
emerging challenges. à Reached the milestone of completing 25 years of
partnering with KIPL

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 Others
Segment

Off The Road Mechanical Tire Curing Press Truck Bus Hydraulic Tyre Curing Press

à Supply of 1000th apron feeder during the year Significant Initiatives

à The largest limestone crusher, 2000 TPH, was
Construction & Mining Machinery Business (CMM)
commissioned at JK Cement, Panna
à Received the Best Service Partner of the Year award from
à Launch of new variants of Komatsu excavators PC81
and PC136
Tata Steel
à Introduction of a long-term Machine Care Programme
Rubber Processing Machinery Business (RPM) (MCP) of 5 years/12,500 hours for various Komatsu
à Developed and exported the biggest Off The Road excavator models
(OTR) Hydro Mechanical Tyre Curing Press (HMTCP) to à Launch of new Komatsu 3-ton excavator PC35MR 3T and
Continental Tyres, Portugal entry into mini excavator segment
à Developed and supplied tyre Building Machines to à Collaborated with Komatsu India to increase localisation
Yokohama, India content to a minimum of 50% in their 60T dump trucks
à Successfully commissioned the first-ever Hydraulic Tyre à Introduction of equipment performance system in mining
Curing Press for Bridgestone, USA equipment to help customers monitor their entire fleet
performance on a daily basis
Product Development Centre (PDC)
à The PDC, along with LTCEL, designed and developed Rubber Processing Machinery Business (RPM)
a solar-powered mobile cart (solar E-cart), which is à Formation of Manufacturing Engineering & Systems (MES)
environmentally friendly uses an alternate power source to achieve uniform processes/practices on the shop floor
à PDC, along with LTCEL, designed and developed and enhance safe working conditions
Cam Injection Car for the Mumbai–Ahmedabad à Model Vendor concept, which ensures the process
High-Speed Rail project improvements through structured training programmes on
à Developed and rolled out prototype of wheel loader, planning, procurement, quality, inventory, tooling, safety,
vibratory compactor, excavator, pneumatic tyre roller, etc., is being extended to vendors
and skid steer loader as required under the new CEV-V
emission norms

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Single Stage Tyre Building Machine

Outlook New raw materials and design technologies will enable

tyre makers to increase revenue despite challenging market
Construction & Mining Machinery Business (CMM) conditions. According to Smithers’ ‘The Future of Global
With the Government’s continued thrust on investments Tyres to 2028’, the tyre market is expected to record a
in infrastructure, the construction activity is expected to CAGR growth of 5.2% over the next five years to reach
pick up pace during the coming year and the construction USD 337 billion in 2028.
equipment market is expected to grow by 6%. The For India, ICRA has forecasted a CAGR growth of 6-9%
development of roads, railways, ports, metro rail projects, across automotive segments over the medium to long-
airports, irrigation infrastructure, etc., is expected to term. Supporting underlying factors such as rising per
drive demand in the cement and metal sectors, which, capita income, moderate interest rates, favourable policy
in turn, will create sustained demand for excavators, environment, and improving infrastructure are factors
dump trucks, dozers, and other road construction and expected to aid demand.
mining equipment. The business plans to strengthen its
position in the premium segment by increasing its focus The business has a great advantage as compared to the
on large contractors, large irrigation projects, and coal OB European competitors due to its wide product range
(overburden) removal contractors. across all segments and also being a market leader in
machinery for the Off-The-Road, Agriculture, and Mining
In the Parts and Services segment, the business plans sectors. In addition, the wide acceptance of new-
to capture a higher market share by providing long- generation Hydraulic Curing Presses by the global tyre
term service contracts to its customers. Further, various majors has further strengthened the business position
sales promotion activities are being organised to with a continued focus on maintenance contracts, value-
improve the sale of parts. added programming services, and upgradation kits as
per customer requirements.
Rubber Processing Machinery Business (RPM)
The global tyre demand is likely to be robust, and tyre
companies are poised for investments in selected segments.

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Segment

Special Projects Cell at L&T Valves Kancheepuram, Tamil Nadu

L&T Valves Limited Business Environment

Investments continued in the oil and gas sector in the
Overview International and Indian markets, which led to higher
L&T Valves (LTVL), a wholly-owned subsidiary of L&T, demand for valves. This demand growth was mainly driven
is a leader in flow control solutions with a global by rising global energy consumption and geopolitical
customer base. The business leverages sixty-plus years of tensions, leading to higher spending in oil & gas exploration
manufacturing excellence to serve key sectors such as oil & and production activities. The shift towards cleaner energy
gas, defence, nuclear & aerospace, power, petrochemicals, sources like Liquefied Natural Gas (LNG) created additional
chemicals, water, and pharmaceuticals across the globe. demand for valves used in its transportation, storage, and
LTVL manufactures a wide range of products such as regasification. The rapidly evolving Green Hydrogen market
Gate, Globe, Check, Ball, Butterfly, Double Block Bleed aids the demand for specialised valves.
Valves, and automation solutions. The portfolio includes During the financial year, the business witnessed challenges
products monogrammed API600, API594, API6D, API609 in terms of the Red Sea shipping crisis, which has disrupted
& API603, valves with CE, ATEX, and Safety integrity level global trade and supply chains. Stringent environmental
(SIL) certifications, as well as IoT-ready digital solutions. and safety regulations also posed challenges for the
With a large installed base across countries, L&T Valves manufacturers in meeting compliance standards.
also runs a global aftermarket business to support its
The market for industrial valves is characterised by
customers in valve repair and rectification services,
significant fragmentation. With an increased focus by
onsite training, project management consulting, and
customers on faster deliveries and lower costs, the market
maintenance contracts.
environment is highly competitive. However, given the
The business has a global manufacturing presence with geographical spread of its demand base, channel and
a state-of-the-art facility in Kancheepuram (Tamil Nadu, product expansion strategies, the company has established
India) and two facilities set up in the USA and Saudi Arabia a good reputation amongst its peers.
through its wholly-owned subsidiaries. In addition, the
business has its own internal engineering department and a
research and development centre staffed with a technically
empowered team. LTVL’s products demonstrate safety,
reliability, and quality for diverse industries.

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Overview Discussion and Analysis Report Reports Statements

Large-size Triple-offset Butterfly Valve supplied to a One of the 40 large-size valves installed at a major lift
greenfield refinery project irrigation system

Outlook Green Hydrogen generation emerges as a viable alternative

to reduce emissions where significant investments are
The business is closely monitoring key demand indicators
currently being made. The Green Hydrogen revolution
such as crude oil prices, capacity additions across industries,
presents exciting opportunities for the valve industry.
client leverage and liquidity, project CapEx spending,
GDP trends, and environmental regulations in the In the Indian market, the business outlook is positive for
relevant geographies. petrochemicals, water treatment, speciality chemicals,
iron & steel plants, and power sectors, in which major
The global valve industry in oil & gas and petrochemicals
investments are expected.
faces a dynamic future shaped by a mix of challenges.
These include the introduction of the Inflation Reduction Within the given business environment, the targeted
Act (IRA) by the US government, ‘Panchamrit’ by the Indian market share gains through a diverse portfolio of products
government to increase the non-fossil fuel capacity, and and industries, initiatives focussing on geographical
targets undertaken by various other countries towards expansion, supply chain resilience, digitisation, operational
Net Zero emission, impact investments in exploration and excellence, and a strengthened aftermarket team.
production, and oil prices, leading to demand volatility These would help the business build a strong order
for valves. The oil & gas sector is responding to these book whilst delivering higher customer satisfaction in
regulations by way of enhanced investments in LNG and the years to come.
Carbon Capture and Storage (CCS). While renewable
energy is key, it might not be able to completely replace
fossil fuels in every sector in the medium-term.

121
 Information
Technology

INFORMATION
TECHNOLOGY
Empowering Growth Through Technology ensuring that the Company is not only aligned with
industry standards but also driving innovation. 50+
Innovation Digital solutions in multiple domains are implemented
At L&T, the Information Technology (IT) function has across the Company and deliver positive outcomes.
made strategic investments in information technology
and infrastructural improvements throughout the year, 4. Compliance and Governance:
reflecting the Company's dedication to operational To augment the Company's compliance posture, a
excellence and preparedness for the future. In FY 2023- comprehensive Compliance Portal was launched,
24, the IT function played a critical role in supporting which in addition to serving as a central repository for
the organisation's strategic goals. The focus was on the regulatory documents, also acts as a hub for tracking
following key areas: and streamlining compliance management in the vast
regulatory landscape. A portal has been developed
1. Modernisation & Efficiency and Enabling User
to automate the internal disclosure process, ensuring
Productivity: timely and accurate public dissemination of information
Systems were rolled out to empower employees to ensure compliance with the comprehensive disclosure
with the tools they need to be more productive and requirements under the SEBI (Listing Obligations and
collaborative, leading to streamlined operations and Disclosure Requirements) Regulations, 2015.
improved benefits for internal stakeholders. The
Company has just launched an advanced Integrated 5. Enhanced Cyber Vigilance:
Logistics Management System, which offers a unified The Company implemented multiple solutions to
view of the logistics landscape across the entire L&T enhance cyber security and created online training
group. This unique approach fosters transparency programmes to increase user awareness since it is the
and paves the way for improved decision-making employees who are the first layer of defence against
capabilities. Multiple business processes have been cyber-attacks. The journey towards creating a cyber-
enhanced to take a leap forward by incorporating safe organisation where businesses can operate with
Robotics Process Automation (RPA), effectively confidence is progressing well.
automating the Company's backend financial
operations, consequently resulting in reduced manual Outlook and Investments
intervention, increased processing speed, and At L&T, IT is poised to continue its trajectory of growth and
minimising errors. innovation, with a sharp focus on the following areas:
2. Embracing Cutting-Edge Technology for Busi- à Periodic enhancements to its own Generative AI
ness Benefits: Platform over time, besides advancing its capabilities
to keep up with the enhanced demands of artificial
Marking a first step towards embracing generative AI,
intelligence in business
the L&T IT team has successfully worked on building
a native Enterprise GPT Platform. This platform has à With Environmental, Social, and Governance (ESG)
been working towards revolutionising the way our considerations becoming central to business strategy, a
business units interact with vast amounts of data and central ESG Platform will be developed that will align with
has unlocked new potential in knowledge generation stakeholders' expectations and forthcoming regulations
besides facilitating decision-making processes. These endeavours of the Company in the domains of AI,
logistics, compliance, and security are emblematic of digital
3. Marching on Digital Enablement Journey: innovation and strategic foresight. The Company will
The digital landscape continues to evolve at an continue to reinforce its industry-leading position across
accelerated pace, marked by rapid advancements in businesses, besides ensuring that the IT function remains at
technologies and a shifting regulatory environment. the vanguard of technological advancements and continues
The Information Technology (IT) team at the Company to deliver exceptional value to all its stakeholders.
has remained vigilant and responsive to these changes,

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Overview Discussion and Analysis Report Reports Statements

HUMAN
RESOURCES
L&T’s commitment to fostering a culture of innovation, This programme consists of three independent modules,
inclusion, and talent development shines through its each focussing on key aspects of project planning, cost
comprehensive array of initiatives. The Company takes management, monitoring, and the practical application of
pride in having a multi-generational workforce drawn from tools such as Primavera/MSP. Since launch, we have had
diverse ethnic and cultural backgrounds, who contribute 4057 learners undergo different modules under the EPPC
to a vibrant and dynamic work environment. By fostering programme as of March 31, 2024.
a fair, performance-driven, and collaborative culture, L&T's innovative Any Time Learning (ATL) platform, now
the Company ensures that every employee feels valued renamed ATLVarsity, revolutionises the way employees
and empowered to contribute their best. By nurturing engage with professional development. With on-the-go
a pipeline of talent that reflects this diversity and is learning as its USP, the platform boasts a wealth of easily
equipped with the necessary skills and competencies, accessible resources in the form of videos, e-books, and
the Company has positioned itself to meet the evolving journals. Partnerships with vendors like Percipio, Coursera,
needs of its businesses. and Harvard Manage Mentor enable the Company to
Learning & Development Initiatives present a wide array of certification courses, addressing the
diverse upskilling needs of its workforce.
The unveiling of ‘The People Leadership Excellence
Framework’ in FY 2023-24 marks a significant milestone The AI/ML technology-based coaching programme at
in the Company’s journey towards reinforcing a culture ATLVarsity provides a cutting-edge learning experience. To
of performance and excellence. This strategic framework, address role-specific needs, niche academies with blended
built upon thorough diagnostics and extensive data learning have been created. Notable among these are the
collection, reflects the commitment to promoting growth Academy of Digital Transformation, the Academy of ESG,
and enhancing efficiency through effective leadership. By the Academy of Quality Excellence, the Academy of Safety,
identifying five key dimensions of People Leadership— and the newly introduced Academy of GenAI. In FY 2023-
Personal Excellence, Relationship Excellence, Performance 24, ATLVarsity witnessed an impressive milestone, with
Excellence, Developmental Excellence, and Leadership 5.2 lakh training hours logged by 38,500 L&T employees
Excellence—the Company has created a blueprint for utilising digital learning modes.
cultivating leadership capabilities at all levels of the
L&T Business Excellence Model
organisation. These dimensions encompass essential
aspects such as promoting individual growth, fostering During FY 2023-24, the Company launched the L&T
positive relationships, driving performance, nurturing Business Excellence Model (LTBEM). The development of
talent development, and embodying exemplary leadership LTBEM draws inspiration and adoption of the globally
qualities. The Company continues to implement various recognised framework, the EFQM (European Foundation
initiatives to create a better employee experience, people for Quality Management), to suit the Company’s
leadership development, diversity, equity and inclusion unique organisational context. The launch of the
(DEI), and an alternate talent model. LTBEM heralds a new era of organisational excellence,
underlining the Company’s commitment to continuous
The Seven-Step Leadership Pipeline Programme is improvement and innovation.
designed to cultivate leadership qualities at every stage
of an individual's career journey within the organisation. With 89 active Certified Assessors, the objective is to
Emerging leaders are mentored by senior leaders, thereby strengthen the management systems, practices, and
ensuring the continuity of leadership thought processes capabilities to enhance the competitiveness of ICs/
and value systems. The ‘ASCENT Series’ and ‘People Businesses to become world-class in their own sectors.
Leadership Programmes’ delve deeper, offering competency
Project NEEV
development tailored to the complex challenges of
leadership roles. In a push to cultivate a high-performing work environment,
the Company implemented Project NEEV (Nurture,
Launched in FY 2023-24, the Essentials of Project Planning Educate, and Empower to Create Value), which focusses
& Control (EPPC 2.0) Programme is specifically designed to on equipping leaders and managers with the skills to drive
elevate the project execution capabilities of our engineers, goal-setting and provide continuous feedback. Through
aligning with our theme: ‘Year of Project Controls’. workshops and training programmes, 500 leaders honed

123
 Human
Resources

their performance management techniques, resulting in The introduction of the Allyship Awards provided a
an impressive 95% on-time employee goal completion platform for 1,600+ women employees to recognise their
rate this year. Furthermore, the ‘People Leadership - Art Allies at work.
& Science of Leading People in Organisation’ programme
empowered 75 managers to become internal catalysts Employee Engagement
and share their insights and techniques with their teams. L&T Radio serves as a valuable tool for keeping employees
Additionally, the ‘Let's Talk’ e-campaign promoted open connected and informed, with over 90 podcasts providing
communication through one-on-one conversations a platform for communication, updates, and knowledge
between managers and team members, with the ‘Any sharing. Initiatives like Appreciation Week further contribute
Time Conversation’ and ‘Continuous Feedback’ modules to a culture of recognition and gratitude, with 8,000
strengthening the continuous dialogue culture. messages exchanged on the Hi5 Wall Page across 6 locations,
fostering a sense of appreciation and camaraderie among
Diversity, Equity, and Inclusion (DEI) Initiatives employees. Annual health check-ups and financial planning
and New Policies for Women address physical and financial aspects of well-being. Fun and
One key initiative established to promote the DEI frolic through regular contests add a competitive element to
culture was the establishment of a community of 36 the workplace.
DEI Champions tasked with driving DEI efforts across The HR conclave this year, based on the theme ‘HR
the organisation. These champions play a crucial role in Transformation - Navigating the Future,’ provided powerful
fostering awareness, understanding, and action around insights from both external & internal speakers.
DEI-related issues within their respective business units.
The launch of the DEI Academy on the digital learning Young Professional Talent Acquisition
platform provides access to training modules & certification The Company remains committed to nurturing talent
opportunities. Today, there are over 100 employees through its Young Professional Talent Acquisition. In FY
certified as DEI allies. In addition, the first-ever virtual DEI 2023-24, we stayed anchored to our core philosophy of
Showcase has been an active enabler in spreading the DEI ‘Growing our own Timber,’ by attracting, recruiting, and
initiatives to more than 17,000 employees. onboarding over 2600 young engineering professionals
By handpicking 495 women employees to undergo the in the GET (Graduate Engineer Trainee) and PGET (Post-
WINSPIRE series of Leadership Development Programmes Graduate Engineer Trainee) categories across various Business
over the last 2.5 years, the Company has demonstrated Verticals, of which 30% have been women. In addition, we
its dedication to nurturing talent and promoting gender have also onboarded more than 1600 young professionals
equality. The effectiveness of these programmes, coupled comprising MBA Graduates, Chartered Accountants, Cost
with strategic hiring efforts, has resulted in a record Gender Accountants, Diploma Engineers, and other trainees.
Diversity rate of 8.1% in the FY 2023-24. The remarkable At L&T, we nurture candidate engagement through our
142% rise in participation rates in the WINSPIRE series programme GRACE (Get Ready for an Awesome Career
of programmes in FY 2023-24 underscores the growing in Engineering), which encompasses pre-joining initiatives
interest and engagement among women employees in such as radio podcasts, gamified content on our business
leadership development opportunities. achievements, with leader boards, quizzes, webinars, micro-
L&T's initiatives to support working mothers and create an learning platforms, and competitions. These efforts not
enabling work environment demonstrate a commitment only prepare candidates for their careers at L&T but also
to fostering work-life balance and inclusivity within the foster a sense of community and excitement among our
organisation. By introducing maternity leave policies for future employees.
adoption and surrogacy, as well as providing additional
leave for mothers of twins, the Company acknowledges Employer Branding & Accolades
the diverse circumstances and needs of its employees Our impressive social media followership on LinkedIn,
during the transition to parenthood. The option for reaching 4 million in FY 2023-24, highlights our strong
women to work from home or adopt a hybrid roster post- presence and influence in the digital sphere.
pregnancy for up to six months reflects an understanding Besides our continued efforts in employer branding on social
of the importance of flexibility in accommodating the media, we have reinforced our position as an employer
evolving needs of working mothers. The flexibility in of choice by participating in various industry forums and
work arrangements, travel allowances, creche facility awards. This year's accomplishments include re-certification
and allowance, further enhance the support system for by ‘Great Place to Work®’, recognition as the Company
women employees. with Great Managers Award for the third consecutive time,
The DEI Awards Ceremony was organised for the first CII HR Excellence Award, Golden Peacock Awards 2023,
time to recognise the efforts of businesses to support ET HR Awards 2023, and prestigious international awards
and promote a diverse and inclusive work culture. such as Brandon Hall HCM Excellence Awards and Gold
Stevie Best Employer 2023.

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AWARDS AND ACCOLADES

CII National Award for ‘Excellence in Water

‘Great Place to Work®’ Certified
Management’ in the ‘Beyond the Fence’ category

During the year, multiple projects across multiple businesses Transportation Infrastructure
received awards for Environment, Health and Safety from
RoSPA (The Royal Society for the Prevention of Accidents),
à Mumbai-Ahmedabad High-Speed Rail (Package C6) -
MAHSR C6 received the International HSE Award-2023
the British Safety Council, the National Safety Council of from the World Safety Forum - UK
India (NSCI), and many other reputed organisations.
à Mumbai-Ahmedabad High-Speed Rail (Package C6) -
L&T’s businesses have also won many awards and MAHSR C6 received the Green Feather Award from Green
accolades. Some noteworthy awards and accolades are Maple Foundation
mentioned below:
à Meerut Aligarh Ghaziabad Road Project received the
Global Sustainability Award 2023 from the Environment
Corporate and Energy Foundation, India
à Ranked 3rd, for the second year in a row, in the global ‘Top
200 Environmental Firms’ 2023 list by Engineering News- Heavy Civil Infrastructure
Record (ENR), New York – L&T was the only Indian firm to
feature in this list
à Two projects were recognised at the Excellence in Bridge
Engineering Awards: The Durgam Cheruvu Bridge
à Received the CII National Award for ‘Excellence in Water was declared winner for the ‘Innovation in Bridge
Management’ in 2023 in the ‘Beyond the Fence’ category Engineering’ category, and the Mandovi River bridge
for integrated community development CSR programme was declared runner-up for ‘Best Special Bridge (Cable
à Certified ‘Great Place to Work®’ in FY 2023-24 supported)’ category
à Received Gold in ‘Best Advance Leadership Development à The business was bestowed with the Gold Prize of the 1st
for Women’ and Bronze in ‘Best Advance in Creating FICCI Awards for Excellence in Plant Maintenance Systems
Learning Strategy’ from the Brandon Hall Group – the only company in the construction sector to be
à Received the ‘ATD BEST Award 2024’ in awarded this recognition
Talent Development à The business was honoured with the prestigious CII AI
à Recognised in Forbes’ list of ‘World’s Best Employers 2023’ Award 2023, recognising Outstanding Achievement in the
‘Best Use of AI Technology/Products/Solution’ category in
à Featured as one of ‘India’s Leading Listed ESG Entities
EHS management
2024’ in Dun & Bradstreet’s ‘ESG Champions of
India 2024’
à Ranked No. 1 in the ‘Capital Goods Sector’ and No. 17
in the ‘Top 50 Most Sustainable Companies’ in India by
Business World

125
 Awards &
Accolades

10th edition of Global EPC Company of the

EPC Company of the Year at FIPI Awards 2023
Year by EPC World

Hydrocarbon Construction Equipment

à 10th edition of Global EPC Company of the Year à Won Gold Award from IRIM in the India Green
by EPC World Manufacturing Challenges - 2023 Assessment and won
à EPC Company of the Year at FIPI Awards 2023 Diamond Trophy for Sustainable Business Growth enabled
through Green Manufacturing
à ‘21st Annual National Greentech Safety Award
2023’ under the category ‘Safety Excellence’ à Received special recognition in Diversity, Equity and
Inclusion (DEI) Awards (Induct Category) for the ‘All-
Power Women Panel shop’ for manufacturing Electrical Panels
à Boiler Manufacturing received NSCI Suraksha in-house on March 8, 2024
Puraskar for NUPPL 3x660 MW Ghatampur TPP
Hyderabad Metro
à Boiler Manufacturing received Gold in the
à UITP (International Association of Public Transportation)
construction sector at the 10th FICCI Awards for
– Special Recognition in Elevating Multimodal Transit
Excellence in Safety Systems
Experience in Hyderabad for 2023

Ranked No. 1 in the ‘Capital Goods Sector’ and No.

17 in the ‘Top 50 Most Sustainable Companies’ in
India by Business World

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LTIMindtree team with the Golden Peacock Award for

SAP Ace Award
Sustainability in 2023

Nabha Power LTIMindtree

à Twin awards from The Council of Enviro Excellence: à Won ‘Golden Peacock Award for Sustainability’ in 2023
ƒ Winner of the ‘Best Performing Unit’ under the à Received Top Honors for ‘Sustainable Reporting Practices’
category IPP Coal above 500 MW at the ICAI Sustainability Reporting Awards 2023 –
ƒ Winner of ‘National Environment Excellence Awards honoured ‘Silver’ award in Sustainability Reporting under
2023’ for excellence in utilisation of fly ash the Sustainability Reporting Leadership (Service Sector)
category and special recognition for Gender Equality
à Multiple Awards from CII:
ƒ Best Innovation in Energy Efficiency Award by CII for
à Awarded the ‘Best Supply Chain Solution in APAC’ at
Triple A Asset Awards under the Supply Chain Solutions
‘Energy Saving by Innovation and Process Optimisation
E-Commerce - Media - Technology category
for CW & ACW System’
ƒ 1st runner-up in Best Energy Efficient Case Study for the
à Recognised as the ‘Fastest Growing Indian IT brand in
2023’ by Brand Finance
‘RAPH Basket Replacement’ project
à Received the ‘Certificate of Merit’ for achievements
in Energy Conservation in the TPP Sector for the year
2023 during the ‘National Energy Conservation Awards’
organised by the Bureau of Energy Efficiency (BEE),
Ministry of Power (MoP), Government of India

Received Top Honors for ‘Sustainable Reporting Practices’

at the ICAI Sustainability Reporting Awards 2023

127
INTEGRATED
REPORT

Sustainability
Vision

For a
Better
World!
L&T shall pursue
eco-friendly growth,
promoting a culture
of sustainability and
innovation, and thereby
contribute towards a
better world.

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About the Report NATURAL

CAPITAL
The Company has been making
concerted efforts towards Pg. 152
achieving resource efficiency,
decarbonising its businesses MANUFACTURED
and sharpened its focus on CAPITAL
improving performance across Pg. 174
Environmental, Social and
Governance (ESG) parameters. HUMAN
This Integrated Report includes
CAPITAL
the financial and non-financial
performance of L&T Limited Pg. 180
(Standalone entity) and is
aligned to the principles INTELLECTUAL
developed by the International CAPITAL
Integrated Reporting Council. Pg. 198
The Report expands the target
audience from the primary SOCIAL AND
provider of financial capital to RELATIONSHIP CAPITAL
include employees, customers,
Pg. 210
suppliers, local communities,
regulators, and policy-makers.
FINANCIAL
CAPITAL
Pg. 238

Other Chapters
Value Creation Process 130
Value Creation Model 132
Stakeholder Engagement 134
Understanding Materiality 138
Sustainability Governance 148
Sustainability Highlights FY 2023-24 150

129
 Value Creation
Process

VALUE CREATION PROCESS

STRATEGY
VISION AND VALUES

Value-accretive growth of
SO-I
current businesses
Strategic Objectives

Scaling up digital and

SO-II
e-commerce businesses

Developing business offerings to

SO-III
ride the Energy Transition wave

Divestment of
SO-IV
non-core businesses

Enabling business sustainability

SO-V through a high focus on ESG
and Stakeholder Value Creation

SE-1 Operational Excellence

Industry leading capabilities in

Strategic Enablers

SE-2
digital and advanced technologies

Financial resources and

SE-3
strong financial health

SE-4 Talent and Leadership pipeline

Capability enhancement through

SE-5
innovation, R&D and partnerships

MATERIAL TOPICS
STAKEHOLDER ENGAGEMENT
GOVERNANCE: POLICIES, PROCESSES, RISK MANAGEMENT

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VALUE
VALUE CREATION VALUE CREATED

Business Models Creating Value for

EPC Projects
NATURAL Productive Assets
CAPITAL for Clients
Customers

MANUFACTURED Dividends
CAPITAL and Buyback
Shareholders

HUMAN Employee Benefits

CAPITAL and Capability
Employees Development

INTELLECTUAL
CAPITAL Business for
Suppliers Suppliers

Hi-Tech
Manufacturing
SOCIAL AND
RELATIONSHIP The six Capitals are utilised Payment to
CAPITAL through business processes Government Exchequer
and models to create assets
and products linked to
infrastructure, energy, oil &
FINANCIAL gas, metals, process plants and
CAPITAL other sectors, and create value Community Assets
for the stakeholders. Communities and Livelihoods

131
 Value Creation
Model

VALUE CREATION MODEL

Input Business Processes and
Water Consumption: 12.9 Mn kL L&T BUSINESS
Energy from Non-renewable Sources: 10.3 Mn GJ EXCELLENCE MODEL
Energy from Renewable Sources: 0.19 Mn GJ

VALUE ENGINEERING
Natural Spend on Environment1 : `369 Mn
Capital Material Consumed (Mn tonnes):
- Cement: 4.4
- Sand: 7.4
Residential Spaces
- Ferrous: 2.3

Mass Transit and Railways

Manufactured Active Project Sites: 716

Capital Manufacturing Facilities: 18

LEAN OPERATIONS
Data Centers

Employees: 59,344
Workmen: 3,48,094
Human Hydro Power Plants
Women covered in Leadership
Capital
Journey Programmes: 495

R&D Spend (cumulative of 3 years): `3,905 Mn

Intellectual Patents Filed: 13
INTEGRATED ENGINEERING

R&D Engineers and Scientists: 321 Water Treatment Plants

Capital
Active Collaborations and Partnerships2 : 21

Social & CSR Spend: `1.5 Bn

Relationship CSR Partners: 61 Oil & Gas Facilities
Capital Memberships of Industry Chambers: 75

Order Book: `3,713.8 Bn

Financial Net Current Assets: `254.6 Bn
Capital Process Plant Equipment
Net Fixed Assets: `124.6 Bn

1
Spend on environmental management: 2
Partnerships with universities, educational 4
Mobility Infra created includes Roads
pollution control, environmental and research institutes, start-ups. (809 lane km), Electrification (3,432 track
monitoring, waste management, 3
Also includes Green Building km), Track construction (710 track km)
wastewater treatment cost, etc. (14.8 Mn sq. ft.). and Mass Transit-viaducts (86 km).
5
Also includes Irrigation Capacity (0.87
lakh ha) and Water Pipelines (61,130 km).

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Offerings Output
SPEED & SCALE SDG Linkage
GHG Emissions: 0.99 Mn tCO2e
GHG Emission Intensity: 7.8 tCO2e/`Cr
Eco-Friendly and Recycled Material Used (tonnes):
DIGITALISATION

- Steel: 2,526
- Zinc: 71
- Crushed Sand: 4 Mn
Commercial Spaces

Building Infra Created3 : 20.2 Mn sq. ft.

Mobility Infra Created4 : 5,037
Bridges & Tunnels: 35 km
Airports Power Infra Created:
- Transmission Lines: 3,010 ckm
- Solar Power Capacity: 2,192 MWp
Water & Sanitation Infra Created5 :
- Water Storage Capacity: 228 Mn ltr
- Treatment Capacity: 2,239 MLD
INNOVATION

Solar Power Plants

Factory Output6 : 3,75,452 tonnes
Green Business (Revenue): `63,426 Cr

Revenue per Employee: `21.5 Mn

Attrition Rate: 10%
Nuclear Power Plants
Average Training Days per Employee: 7.9
Accident-free Man Hours: 1,262 Mn

Patents Granted: 19
Value Engineering Projects7: 296
Refining and Petchem Plants Revenue from Emerging Businesses8 :
`1,27,018 Mn
GLOBAL SOURCING

CSR Beneficiaries: 1.6 Mn

Contribution to Exchequer: `89.7 Bn
Ferrous and Non-ferrous Plants Complaints Received9 : 653
Complaints Resolved9 : 597

Turnover: `1,262.4 Bn
PBIT: `132.7 Bn
Launch Vehicles Dividend Payout: `46.9 Bn
Return on Net Worth: 13.7%
6
Total production for businesses: Buildings 7
Initiatives for improving processes, 8
Revenue in FY 2023-24 from businesses
& Factories, Power Transmission & products and services to reduce cost, started in the preceding three financial
Distribution, Minerals & Metals, Heavy improve project delivery and increase years.
Engineering, Precision Engineering & customer satisfaction. 9
Across all stakeholders, for breakup refer
Systems, L&T Energy-Hydrocarbon. to Section A in Business Responsibility
and Sustainability Reporting (BRSR).

133
 Stakeholder
Engagement

STAKEHOLDER ENGAGEMENT
L&T’s businesses are primarily EPC projects (Engineering, Procurement, Construction) and Hi-Tech Manufacturing.
Aligned with the activities of the businesses, the Company has identified the following key stakeholders and
channels of communication:

Employees
Government and Workforce
Governments (sovereign, sub-national, local) and Human Capital is key to project management
related entities (public sector enterprises) are the largest and execution for the Company. Around 59,000
clients of the Company, comprising ~78% of the total employees and 3,50,000 workers across the
Order Book. They are the key determinants of policies Company’s project sites, offices, manufacturing
(sectoral as well as cross-cutting), long and short-term plants, and different locations are contributing
plans for various sectors, and the country at large. towards sustained growth and performance. Hence,
The Government is the most crucial driver in policy the management, development, and well-being of
development, which ultimately impacts the ease of the workforce are vital for the Company to continue
doing business and shapes the business environment. its value creation journey.

à Press releases à Employee satisfaction and engagement surveys

à Quarterly results à Circulars and messages from corporate and line

management
à Integrated Annual Report
à Stock Exchange filings
à Welfare initiatives for employees and their families
and Employee Assistance Programme (EAP)
à Issue-specific meetings
à News bulletins to convey topical developments,
à Representations print and online in-house magazines, and
newsletters
à As and when required
à Project Review Meetings à HEERA
à Various engagement platforms and events: Hi5,
à Address concerns related to project execution L&T Radio, Art Beats and so on
à Regulatory compliances and reporting
requirements à As and when required
à Seek support to enable on-time completion and
delivery according to agreed parameters à Support the growth, learning, development and
well-being of employees
à Working with the Government to develop/provide
inputs for policies and legislations à Transparent and timely communication of
organisational updates
à Advocating for relevant policy issues at the central
and state level à Feedback on Company’s policies and actions, and
address concerns linked to them

Legend
Channels of Frequency of Purpose and scope of engagement, including key
communication Engagement topics and concerns raised during such engagement

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Customers Supply Chain Partners

Other key customers are private sector clients, which Businesses have a high dependence on supply chain
comprise ~22% of the total Order Book. While partners for sourcing key input materials (commodities,
the Company actively seeks new clients, it also enjoys fabricated items, sub-components, and other raw
a long-term relationship with many of them. These materials), logistics and services. At L&T, the supply
lead to repeat business and also create the conditions chain is vast and complex, registered partners across and
encouraging development of new solutions outside the country. These supply chain partners are
and technologies. assessed on a regular basis to enable performance-based
tiering and aid in vendor development. The Company
à Website, L&T Infodesk, toll-free number believes that supply chain partners play a crucial role in
responsible sourcing, upholding quality and standards,
à Meetings and interactions
adhering to human rights standards, and maintaining
à Client satisfaction surveys and feedback ethical business practices.
à Grievance redressal

à As and when required, satisfaction surveys

carried out biannually à Regular vendor and supplier meet
à Grievance redressal mechanism
à Transparent and timely communication to provide
à Contract related meetings
updates on the status of contracts/supplies
à Address issues related to the delivery of
à As and when required for large suppliers,
agreed contracts fortnightly for MSMEs
à Partnerships for innovation
à Payment, vendor management platform related
queries, deliveries, and technical discussions
à MSME: Exchange of information, vendor
deliverables and payment issues, and partner
portal-related queries
à Awareness sessions for supply chain partners and
assessment of top 200 partners on ESG parameters

Legend
Channels of Frequency of Purpose and scope of engagement, including key
communication Engagement topics and concerns raised during such engagement

135
 Stakeholder
Engagement

Shareholders Communities and

and Investors NGO Partners
Shareholders and investors enable the Company’s L&T strives to promote socio-economic development in
growth by providing the requisite financial the communities around its operations and other
resources as well as guiding the Company through underserved regions. The approach involves need
their approval/disapproval of the Company’s plans assessment, development, and execution and handover
(through voting, voicing concerns, feedback). of projects to the local community in most cases.
The Company actively engages with them to The Company prioritises supporting the vulnerable,
communicate its plans, design the way forward, as underprivileged and marginalised sections of society to
well as address their concerns. empower them and improve their standard of living.

à Website à Direct engagement and/or through NGO partners

à Press releases implementing CSR projects

à Dedicated email ID and toll-free number à Grievance redressal

à Quarterly results à Need Assessments

à Integrated Annual Report à Community visits

(Integrated Report, BRSR, Financial disclosure) à Meetings with community representatives
à Annual General Meeting (Shareholders’ à Impact Assessment Studies
Interaction)
à Investor presentation à Quarterly meet with NGO Partners

à Investor meets à Facilitate in providing infrastructure, health, and

à Stock Exchange filings education services and skill-building opportunities
based on need assessment
à As and when required, quarterly investor meets à Improving the quality of life of underprivileged
and vulnerable communities
à Showcase sustained value creation through
Company’s performance
à Seek feedback on Company’s plans and strategy
à Address concerns (if any) with respect to Company’s
policies and actions

Legend
Channels of Frequency of Purpose and scope of engagement, including key
communication Engagement topics and concerns raised during such engagement

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Regulatory Bodies Media

Various businesses fall under the purview of specific Media is one of the important channels of
regulatory bodies, not only sectoral but also in some communication for the Company’s reputation capital
common areas, e.g., environment and labour. It is (a sum of other people’s perception), share price
pertinent to understand the priorities and concerns performance, brand and pricing power, plans, and
of these agencies to enable the Company to ensure policies. It helps engage with a larger audience and
compliance with mandated levels. provides a critical link in the feedback loop on issues
related to the Company and the Brand. This stakeholder
group also plays an instrumental role in providing
à Briefings and direct meetings insights into the Company, business, and industry
à Quarterly results performance. Additionally, the Company engages with
à Integrated Annual Report the media to share management’s perspectives and
encourage healthy discussions on various topics.
à Through industry associations and business chambers
à Multi-stakeholder forums
à Website
à As and when required à Press releases

à Issue specific à Quarterly results

à Compliance with laws and regulation à Integrated Annual Report

(Integrated Report, BRSR, Financial disclosure)
à Inputs on new policies and regulations
à Annual General Meeting
à Media interactions

à Event-based

à Wider dissemination of plans, achievements

and initiatives
à Create awareness of the Company’s businesses,
offerings and initiatives
à Enhance brand value
à Engaging with media to increase awareness of
sustainability issues and promote business practices

Legend
Channels of Frequency of Purpose and scope of engagement, including key
communication Engagement topics and concerns raised during such engagement

137
 Material
Topics

UNDERSTANDING MATERIALITY
The Company is committed of the key focus areas. The Company Company, in terms of importance,
to proactively identifying and has been constantly working forms the basis of a materiality
responding to the concerns of on improving and delivering assessment. It considers both the
stakeholders and its business to on ESG dimensions, identified impact of the Company’s activities
create long-term value for all. through the findings of the on ESG dimensions and the way in
Materiality is one of the inputs materiality assessment conducted which these dimensions can impact
to the Company’s sustainability in FY 2022. The sensitivity of a the Company.
strategy, which enables prioritising topic to stakeholders and to the

Methodology

Reporting Peer Internal External

Frameworks Benchmarking Stakeholders’ views Stakeholders’ views
GRI, <IR> Framework, Indian and Surveys administered; inputs/ Surveys administered; concerns/
SASB Material topics, international feedback received from senior feedback received through
UN SDGs, BRSR, CDP companies management during the year periodic interactions
GRI: Global Reporting Initiative, SASB: Sustainability Accounting Standards Board, CDP: Carbon Disclosure Project

Assessment Process

Identify Stakeholder Stakeholder Finalisation and

Shortlist
Potential Identification Engagement, Prioritisation of
Potential
Material and Survey and Material Topics
Topics
Topics Prioritisation Feedback and Matrix

Key Internal Stakeholders Key External Stakeholders

Senior Government and Customers/

Management Regulatory Bodies Clients

Investors and Supply Chain

Employees
Shareholders Partners

Workers/ Community and

Media
Representatives NGO Partners

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Thirty-two potential material topics that directly or indirectly impacted the business were
identified initially. Out of these, 14 material topics, which are more pertinent for short-term,
medium-term, and long-term value creation from both internal and external stakeholders'
perspectives, were finalised. During the year, these material topics, their relevance, and their
progress are monitored and reviewed at various levels across the Company. The material topics
are as follows (not ranked):

Environment Social Economic Governance

Climate Employee and Workforce Customer Experience Business

Action Engagement, Well-Being, and Satisfaction Ethics
Health, and Safety

Water, Waste, and Human Rights and Quality of Products and Brand
Hazardous Materials Labour Conditions Project Delivery Management
Management

Skilled Data Security, Privacy,

Manpower and Cyber Security

Talent Management –
Attraction, Retention,
and Development

Diversity, Inclusion, and

Equal Opportunity

Social Engagement
and Impact

Sustainable Supply Chain

139
 Material
Topics

Overview of the Material Topics

The material topics, if addressed and strengthened, can become opportunities, and if not, can pose a risk. For
certain material topics, the focus is more on the potential risk and the approach taken by the Company to
ensure that the risk does not materialise.

Climate Action Water, Waste, and Hazardous

Legend Physical and transition risks
Materials Management
related to Climate Change have Encompasses increased resource
Material topic
identified the potential to cause challenges efficiency, recycling and reuse
for the Company. Concerns are of material and waste, and
Description and rationale
primarily related to GHG emissions minimising resource consumption
for identifying risk/ wherever feasible.
opportunity reduction, decarbonising energy
use, water sourcing security,
In case of risk, approach natural materials sourcing, Waste generated from business
to adapt or mitigate ambient operating conditions, and operations, if not managed
extreme weather events. properly, can negatively
impact the environment as
Natural On the other side, initiatives being well as communities around
Capital the work locations. The risk is
undertaken to address emission
reduction and water use efficiency higher in the case of hazardous
Manufactured
Capital may have a direct impact on cost materials and wastes.
and improve overall productivity.
Human However, in the past few years,
Capital the approach has been shifting as
Climate risk management is
waste is being looked at from the
Intellectual integrated into the Company’s
Capital perspective of generating value
Enterprise Risk Management. The
instead of burden.
Company has set ambitious targets
Social and
Relationship Capital for Carbon and Water Neutrality
and devised a strategy to achieve Water consumption reduction is
Financial them. Other areas are also being a key focus area for the Company
Capital addressed through specific to achieve Water Neutrality status,
initiatives. and various initiatives linked to it
are being operationalised. Waste
Financial Implications Refer to ‘Natural Capital’ for more management is an integral part
details. of the EHS Management System.
Positive The Company adheres to the laws
and regulations in the areas of
Negative operation.
Both
Refer to ‘Natural Capital’ for more
details.

Risk or Opportunity
SO-III SO-IV SO-I SO-V
Risk

Opportunity

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Employee and Workforce Engagement,

Well-being, Health, and Safety Legend
Human Resources is a critical capital for the Company. Ensuring
Material topic
their health, safety, and well-being is key to optimal productivity identified
and sustained growth of the Company.
Description and rationale
The nature of operations often exposes the workforce to for identifying risk/
opportunity
occupational risks and hazards which impact health, safety, and
productivity. In case of risk, approach
to adapt or mitigate
Along with physical well-being, mental well-being has also
emerged as a health-related risk that can impact productivity.
Natural
Capital
Implementation of health and safety management systems
adhering to known standards, e.g., ISO 45001:2018 (Health Manufactured
and Safety Management Standard), is a key focus area. This is Capital
enabled through SOPs, right processes, procedures, and digital
Human
applications. The Company focusses on improving preventive
Capital
measures related to better risk management.
Intellectual
The Company encourages its workforce to prioritise stress Capital
management techniques such as mindfulness, exercise, and
Social and
seeking support when needed. Counselling, coaching, and
Relationship Capital
sensitisation workshops are also being organised for employees
to enable them to handle challenging situations. Financial
Capital
Furthermore, keeping in mind the importance of maintaining
a healthy work-life balance and enhancing the employee
experience, a mandatory leave of 10 days in a year has been Financial Implications
introduced to ensure employees have dedicated time to
rejuvenate and recharge. Positive

Refer to ‘Human Capital’ for more details. Negative

Both

Risk or Opportunity
SO-V
Risk

Opportunity

141
 Material
Topics

Human Rights and Skilled Manpower

Legend Labour Conditions
EPC Projects segment of the
Material topic Human and labour rights mean Company highly relies on
identified protecting, respecting, upholding, and contract workmen due to
promoting the basic rights and freedom temporary shifting and the
Description and rationale of the workforce. distributed nature of the
for identifying risk/
business. Achieving contract
opportunity
Owing to the nature of operations completion as per agreed
In case of risk, approach and the large number of contractual timelines and ensuring high-
to adapt or mitigate workmen, human rights violations pose a quality work require skilled
risk despite complying with all applicable workmen. Skillsets in focus
regulations and putting systems in place are bar bending, formwork,
Natural
Capital to avoid such violations. Non-adherence electrical work, tiling,
to labour regulations and any kind of masonry, welding, carpentry,
Manufactured violation, even in the supply chain, and solar electrical work,
Capital might lead to a loss of reputation and among others.
increased compliance costs.
Human
With increasing competition
Capital
for skilled manpower
The Company aims to proactively address
Intellectual and industry-wide labour
Capital
and manage such risks by strengthening
shortage, getting the right
policies, systems, procedures, and
skill set is a challenge. At
Social and grievance mechanisms. Human Rights
the same time, retention
Relationship Capital Due Diligence of own locations is also
may be relatively easy
conducted to understand the risks and
Financial for permanent workmen.
gaps in the existing processes. The key
Capital However, for contract
manufacturing facilities are SA8000
workmen, the high
certified. The Company's operations
churn is a risk.
adhere to local and national regulations.
Financial Implications
As part of awareness sessions, the The Company tries to
Positive
supply chain partners are also being overcome the hurdles
Negative sensitised to human rights-related risks through onsite training to
and violations to ensure adherence upskill workers based on the
Both across the supply chain. During the project sites’ requirements,
year, the grievance redressal mechanism a database to capture and
for the contractual workmen has been track skilled workmen, and
Risk or Opportunity strengthened. continuous engagement
with the contracting
Risk Refer to 'Human Capital' for more details. agencies to ensure the right
manpower is available at
Opportunity the site.

SO-V SO-V

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Talent Management – Attraction, Diversity, Inclusion, and

Retention, and Development Equal Opportunity Legend
Talent drives the success of the A diverse workplace means Material topic
Company, and ensuring the a wider range of ideas, identified
right talent within the Company perspectives, and experiences,
requires attracting, developing, which, therefore, leads to Description and rationale
for identifying risk/
and retaining the talent. Key better innovation and effective
opportunity
aspects with respect to talent problem-solving – ultimately
management are hiring right, improving productivity and In case of risk, approach
reducing attrition, improving performance. Diversity is to adapt or mitigate
productivity, developing industry- complemented by inclusivity,
specific capabilities/skills, and which means that each one
Natural
enhancing leadership pipeline. feels that they are heard and
Capital
that they matter, thus instilling
With Human Capital at the core a sense of belongingness and Manufactured
of the business, the inability trust. This includes not only Capital
to attract, manage, develop, hiring without any prejudice
Human
and retain talent may adversely or discrimination, but also Capital
impact the business. Historically, inculcating the right set of
the sector has a reputation for attitudes and behaviours Intellectual
lacking workforce diversity and within the employees through Capital
the right talent. awareness and training and
Social and
building a culture of trust and Relationship Capital
The Company has customised commitment.
Financial
learning and development
Capital
programmes that cater to
various skill requirements and
organisation levels. The Company
Financial Implications
also leverages various digital
applications for training delivery, Positive
capturing feedback, and driving
engagement with the employees. Negative

Refer to ‘Human Capital’ for more Both

details.

Risk or Opportunity

Risk

Opportunity

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

143
 Material
Topics

Social Engagement Customer Experience Quality of Products

Legend and Impact and Satisfaction and Project Delivery

Material topic Social engagement In an increasingly For the Company’s

identified for the Company competitive businesses in
means initiatives environment, EPC Projects
Description and rationale that focus on social delivering great and Hi-Tech
for identifying risk/
welfare, community customer experience Manufacturing,
opportunity
development, and and satisfaction is high-quality
In case of risk, approach environmental essential, not only projects executed,
to adapt or mitigate sustainability, as well for project success products
as creating an impact but also for securing manufactured, and
on society at large. long-term growth and on-time delivery
Natural
relationships. Hence, are critical, not
Capital
Effective social it is important for the only for meeting
Manufactured engagement and Company to strengthen the contractual
Capital initiatives not only and maintain its commitments
bolster the brand customer-centric but also for
Human
but also create approach by focussing creating customer
Capital
goodwill among on timely execution, delight through
Intellectual the stakeholders. first-time-right quality, differentiation
Capital CSR can act as a and adherence to all from competitors.
differentiator, as applicable norms across
Social and
Relationship Capital
well as a means all business segments.
of attracting and
Financial retaining talent by Optimal customer
Capital instilling a sense experience has a
of purpose and significant material
pride among the impact on the brand,
Financial Implications employees at the reputation, and
workplace. financial performance
Positive of the Company.
Negative

Both

Risk or Opportunity

Risk

Opportunity

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

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

Business Ethics
Legend
Ethics and integrity are the key values that have enabled the Company
to acquire trust and build a strong brand. These values are important to Material topic
ensure that the organisation conducts business in an ethical and transparent identified
manner. Upholding L&T’s core values requires crafting, implementing, and
strengthening the policies and procedures. Description and rationale
for identifying risk/
opportunity
The Company has strong and robust policies, processes, and SOPs in place.
However, driving compliance can be a challenge due to the nature and In case of risk, approach
wide expanse of the businesses, large workforce, and frequent changes to to adapt or mitigate
regulatory requirements.

Natural
Clear rules, policies, and procedures have been enforced across the Capital
Company. For example, the Code of Conduct defines the behaviour
expected from all the employees and stakeholders and lays down the Manufactured
policies and systems for effective implementation. The Company has Capital
mandatory courses to help employees understand the norms required
Human
to work in a safe, compliant, and ethical manner. Capital

The Company has formulated a Whistle Blowing Policy and mechanism Intellectual
Capital
and constituted the Whistle Blowing Investigation Committee. The
objective is to establish a vigil mechanism for employees to report
Social and
concerns about unethical behaviour, actual or suspected fraud or Relationship Capital
violation of the Company’s Code of Conduct or ethics policy. The
Audit Committee is responsible for reviewing the functioning of the Financial
Capital
Whistle Blower mechanism. From time to time, the Company’s systems
of internal controls, covering financial, operational, compliance, IT
applications, etc., are also reviewed by external experts.
Financial Implications
The governance is led by the Board and supported by the Board
Positive
Committees. Policies, Code of Conduct, and Management Systems have
been developed and deployed across all businesses and functions to Negative
ensure adherence and implementation. These are also reviewed on
a periodic basis and updated as required. Details available at https:// Both
investors.larsentoubro.com/corporate-governance.aspx

Please refer to Annexure’ B’ – Report on Corporate Governance for further details.

Risk or Opportunity

Risk

Opportunity

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

145
 Material
Topics

Brand Management Data Security, Privacy, and

Legend Cyber Security
The Company’s brand
Material topic management is important to build Protecting the Company’s own
identified equity, loyalty, and confidence workforce as well as customer
among the stakeholders. This data is a highly sensitive and
Description and rationale enables customer engagement critical area to ensure reliable and
for identifying risk/ incident-free business operations.
opportunity
and business growth, helps
attract talent, instils respect in
In case of risk, approach shareholders and investors, and While the focus of the Company
to adapt or mitigate builds a positive image of the continues to be on digitisation,
Company. there are concerns around cyber
security with the use of new
Natural technologies, software, and cloud
Capital
services, and makes the Company
Manufactured susceptible to attacks and leaks.
Capital Any such incident can jeopardise
the credibility of the Company and
Human may impact reputation and lead to
Capital
financial damage.
Intellectual
Capital
The Company has developed
a multi-year cyber security
Social and
Relationship Capital and resiliency roadmap and
invested in state-of-the-art
Financial security platforms. Policies and
Capital
practices have been put in place
to meet the requirements of
ISO/IEC 27001:2022. The Company
Financial Implications has one of the most advanced
Security Operations Centres to
Positive
monitor developments 24X7
Negative and respond effectively to any
cyber incidents.
Both

Risk or Opportunity

Risk

Opportunity

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

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Overview Discussion and Analysis Report Reports Statements

Sustainable Supply Chain

Legend
A sustainable supply chain includes responsible behaviour of the
supply chain partners in accordance with the highest standards of Material topic
ethics and integrity, respect for the law, human and labour rights, identified
and environmental protection.
Description and rationale
A sustainable supply chain not only reduces environmental and for identifying risk/
opportunity
adverse social impact but also builds resilience, supports business
continuity, and increases competitiveness. In case of risk, approach
to adapt or mitigate
However, the risk of HSE incidents, human rights violations, and
unethical business practices may lead to disruption in business
activities and reputation loss as well. Other events, such as natural Natural
Capital
disasters, extreme weather, and geopolitical incidents, can also
adversely impact the deliverables and timely project execution. Manufactured
Capital
The supplier base of the Company has grown substantially over the
Human
years across the globe. To ensure adherence and compliance, the Capital
Company has put in place a set of policies, processes, and a Code of
Conduct for the supply chain partners. Signing the Code of Conduct Intellectual
Capital
is a mandatory requirement in the onboarding process of any
supply chain partner. Also, the Company has initiated an assessment
Social and
of suppliers on ESG parameters to understand their performance. Relationship Capital
Additionally, the Company is organising awareness sessions to
apprise them of requirements and new developments in ESG and Financial
expectations of the Company. Capital

Refer to ‘Social and Relationship Capital’ for more details.

Financial Implications

Positive

Negative

Both

Risk or Opportunity

Risk

Opportunity

SO-I SO-V

147
 Sustainability
Governance

SUSTAINABILITY GOVERNANCE
Strategy Policy
As part of the Lakshya 2026 plan, the The policies of the Company changes, global standards, and
Company re-evaluated shareholder demonstrate commitment towards stakeholder concerns. At the
value creation, defined social sustainability, and guide in framing business level, SOPs, guidelines, and
obligations, and framed sustainability as well as implementing long-term procedures translate these policies
goals. The outcome of this strategy and action plans. The into standard processes and action
assessment was the re-articulation of key focus areas are articulated in plans, e.g., waste management,
its Strategic Objectives (SOs), which the Sustainability Policy, which is health and safety, and risk
drive value creation over a long-term complemented by other policies such management, among others.
horizon. The sustainability agenda as Corporate Social Responsibility,
is guided by the CSR & Sustainability EHS, Anti-Bribery and Anti- The working of the policies is
Committee and driven by Executive Corruption, Green Supply Chain, evaluated by third-party agencies
Committee members across Human Resources, and Code of on various standards such as
the businesses. Conduct. These policies strengthen ISO 9001:2015, ISO 14001:2018,
integrated thinking by aligning ESG ISO 45001:2018, and SA8000. During
The scope and membership of the with business goals and support the process, these agencies also
Committee have been detailed in value creation through the six check policy elements, procedures,
Annexure ‘B’ to the Board Report of capitals, viz. Natural, Manufactured, action plans, review processes,
this Report. Intellectual, Human, Social and monitoring and reporting. In
Relationship, and Financial. Most addition to the above, relevant
of these policies are reviewed third-party certifications and
and updated based on evolving assessments are also conducted
and emerging trends, regulatory across business units periodically.

Sustainability Framework

#LnTCares #WeAreLnT #BuildingTheNation

Restore and Rejuvenate Social Towards Future-Ready and
the Environment Value Creation Resilient Business

à Carbon Neutrality à Workforce Safety à Board Structure, Diversity,

and Remuneration
à Water Neutrality à Training and Development
à Biodiversity à Diversity and Inclusion à Governance Mechanism

à Material Recycling and Reuse à Human Rights à Ethical Behaviour

à Waste Management à Community Welfare à Stakeholder Engagement

à Green Supply Chain à Supply Chain à Risk Management

à Green Business

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Overview Discussion and Analysis Report Reports Statements

Implementation
With the evolving landscape and of the inputs to the Company’s Sustainability Function and Business
regulatory requirements, the Sustainability Strategy, which Unit Heads, and Heads of various
Company has put the necessary enables prioritising key focus areas. Corporate Functions supported by
tools, systems, processes, and The material issues and related ESG Corporate Sustainability. Various
resources in place to incorporate ESG KPIs are reviewed through various Councils, Committees and Task
in business strategy and operations. stakeholder engagement processes, Forces designated with specific
The Company also conducts and by senior leadership. responsibilities have also been
materiality assessment, which is constituted for operationalising
a process to capture stakeholder The overall responsibility for sustainability across the Company.
concerns on ESG and its importance ensuring the implementation
to the Company. Materiality is one resides with the Corporate

Sustainability Governance Structure

Key functions Key Councils and

CSR & Sustainability Committee Task Forces
Corporate
Secretarial, EHS Council,
Corporate Sustainability

Human Material Council,

Executive Committee Resources, Green Campus
CSR, Supply Task Force
Chain
Management,
Business Level Responsibility
Industrial
Corporate Centre/EHS/Business Heads
Relations,
Admin, Finance
Unit/Project Level Responsibility
Sustainability Coordinators across businesses

Policies and Processes

Sustainability Data Assurance

In July 2023, the Securities and Social, and Governance (ESG). in the preparation of the disclosures,
Exchange Board of India (SEBI) SEBI has also mandated that the testing of data, records and relevant
introduced mandatory disclosure top 150 listed entities undergo documentation, analysis and review
under ‘BRSR Core’ for certain listed reasonable assurance by a third of key data management systems,
companies in India. The Business party. BRSR Core parameters processes, and procedures relating
Responsibility and Sustainability comprise environmental, social, and to collation, aggregation, validation
Report (BRSR) format was initially financial KPIs. Reasonable assurance and reporting of the sustainability
introduced in May 2021, which involves understanding systems information.
included reporting of more than and controls in place for capturing For details, please refer to the Assurance
100 KPIs across Environmental, sustainability performance data used Statement in BRSR.

149
 Sustainability
Highlights

SUSTAINABILITY HIGHLIGHTS
OF FY 2023-24
The Company conducts materiality assessment (refer to Materiality Assessment section) to identify and
prioritise the key material topics pertaining to ESG, based on the relative importance of these topics to the
stakeholders and in the context of L&T’s business imperatives. The assessment identified 14 important material
topics, and detailed performance is stated in the respective chapters on the six capitals.

To report sustainability highlights at an overall level, at least one KPI has been selected for each material topic
based on the importance attached by investors, rating agencies and regulators and these are given below.

ENVIRONMENT

Energy
83.1 GJ/`Cr
Energy
-16 %*
9.2 %
Electricity
+20 %*

consumption intensity from renewables

Emissions 7.8 tCO e/`Cr 2

GHG emission intensity
-12 %*
~4 Mn
Saplings planted
+200 %*

Water
102 kL/`Cr
Water consumption
intensity

Materials
32 % +31 %*
Recycled and eco-friendly
material used

Green
Business
50 % +54 %*
Revenue from
Green Business

* Improvement over FY 2022-23

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Overview Discussion and Analysis Report Reports Statements

SOCIAL

Health and Safety 6.9 Mn

Safety training man hours
0.07
LTIFR

Human Rights 2
Key facilities SA8000 certified
100 %
Own facilities and offices assessed

Workforce Skilling and

Talent Management
24,000+
Employees covered
90,000+
Workers covered

Diversity and
Inclusion
8.1%
Diversity ratio
99
Women in senior management

Social Impact 1.6Mn

CSR beneficiaries

GOVERNANCE

Governance &
Ethics
100%
New joinees trained on CoC
Brand Management
& ESG Ratings

Customer
Centricity
9
Customer Satisfaction Score out of 10
Ranked 3rd in ‘Top 200
Environmental Firms’ in 2023

Data Privacy &

Cyber Security
Zero
Cases of data breaches
Rated ‘B-’ for Climate
Change 2023

Sustainable
32%
Sustainable sourcing
100%
of top 200 supply chain
Supply Chain
by value partners assessed on ESG

151
 Natural
Capital

NATURAL
CAPITAL

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Overview Discussion and Analysis Report Reports Statements

The impact of climate change Strategy Linkage1

has exacerbated over the years,
as evident in recent heat waves, SO-I SO-III SO-V
forest fires, and extreme rainfall
events across the world.
The Company has been taking SE-1 SE-2 SE-3
steps consistently towards
decarbonisation, resource
efficiency, biodiversity protection, SDGs Impacted
sustainable supply chain.

Key Highlights of FY 2023-24

1,55,046 GJ
Renewable Electricity consumption

16 %
Energy Consumption Intensity Reduction
Material Topics
Climate Business
Action Ethics

12 % Water, Waste and Brand

Emission Intensity Reduction Hazardous Material Management
Management

32 %
Recycled and Eco-Friendly Material
Sustainable
Supply Chain
used of Total Material

~4 Mn
Saplings Planted

1
For details, refer to ‘Business Model and Strategy’ section.

Note: For KPIs related to intensity, the denominator considered is

standalone revenue in ` crore.

153
 Natural
Capital

Net Zero Strategy

The Company has committed to achieve Carbon Neutrality by 2040 and Water Neutrality by 2035. The road map to
help achieve these targets is based on the FY 2020-21 baseline of emissions and water consumption and business
growth assumptions. This road map has been divided into short-term, medium-term, and long-term and aligns with the
Company’s 5-year strategy plan.

Carbon Neutrality Based on the current projections, The Company’s strategy for
GHG emissions are expected to peak achieving carbon neutrality is based
The Company’s carbon footprint around FY 2025-26 and decline on two levers:
(Scope 1+2) is primarily due to thereafter. The slower pace of
diesel and electricity consumption. increase in the short term would be
Diesel has a high share in the overall Improving Energy Efficiency
primarily driven by the improvement
energy mix (>75%), while electricity in energy efficiency and the
comprises ~16% of the energy mix. reduction in fossil fuel consumption
Diesel is significantly consumed in intensity. For the long term, a shift
powering construction machinery to renewable electricity and fuels Decarbonising Energy
used for EPC projects and partially would be the primary driver in Consumption
for electricity generation. Further, reducing GHG emissions. Technically,
plants, equipment, offices, and it may not be feasible to reduce
campuses consume electricity. As emissions to zero, and therefore,
the Company keeps expanding offsets incurred from plantations will
and growing, energy consumption be considered for achieving carbon
and related emissions are neutrality. The Company targets to
also expected to rise. plant 1.5 – 2 Mn saplings each year
to create the stock, which will enable
carbon sequestration.

Net Zero Path

à Optimise utilisation of equipment
à Control losses
à Higher energy efficient machines
à Electric Plant and Machinery

à Higher energy efficiency equipment

and appliances
à Optimise energy use

à Switch to low carbon fuel

à Renewable electricity

à Carbon sequestration
from tree plantation

FY40 BAU Energy Efficiency Decarbonising Offset

Emissions (~35%) Energy Use (~10%)
Based on FY 2020-21 baseline (~55%)
Bars indicate approximate % range for emission reduction from different levers

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Overview Discussion and Analysis Report Reports Statements

Green Campus Task Force

The Company’s target for Carbon Neutrality has site locations. While there are many options available
cascaded to all businesses. While each business has for sourcing renewable electricity, there are significant
identified and undertaken a set of initiatives for the challenges in getting renewable power through the
short-term, there were challenges in achieving the grid at project site locations due to issues related to
targets. The Company has formed two task forces in local regulations as well as concerns of renewable
FY 2023-24 to counter these roadblocks. These task energy service providers. The options identified for
forces have been formed as cross-functional teams increasing renewable electricity sourcing are PPAs,
with representation from various business units on site solar through third-party, group captive open
and are aimed at proposing solutions that could be access, green open access, and green tariff.
implemented across all the locations of the Company.
The other task force is implementing options for
One of the task forces has been working on identifying reducing diesel consumption. Based on the analysis of
initiatives to increase renewable electricity sourcing. current initiatives, scaling up and replication of these
Through the task force actions, the Company has been initiatives across different businesses was undertaken.
able to sign a Hybrid Power Purchase Agreement (PPA) Further, these initiatives were prioritised based on the
for renewable power and has been able to source impact and feasibility of implementation.
renewable power through open access for a few project

Key initiatives identified for reducing diesel consumption:

Switching from Diesel consumption Diesel budgeting Switching from diesel- Use of
Diesel Generator optimisation through and control, powered equipment to renewable fuel,
(DG) set digitisation, sensors, including low carbon fuel, e.g., CNG e.g., biodiesel
to grid electricity and other actions reducing losses and electricity powered
equipment

Water Neutrality
The Company’s water footprint is driven by industrial In addition to the above, various business units are
consumption, primarily due to the use of water in civil work implementing initiatives relevant to their context. For
for EPC projects. The consumption pattern is determined by EPC projects, some businesses are focussing on sourcing
the type of structures or works and technical requirements treated wastewater from municipal corporations. In a
of the project. Further, numerous standards and codes few cases, the quality obtained is at par with freshwater
prescribe the water quality required in such works. The and has been utilised even in concrete mixes. In
Company is focussing on reducing water consumption addition to chemicals, one of the businesses has also
intensity, emphasising the following: experimented with innovative solutions, e.g., steam
curing for concrete.
Improving water use efficiency through reducing
losses in the equipment and processes and adopting While the Company is focussing on reducing water
methods e.g., curing compounds and plasticisers consumption intensity, the Company’s CSR programmes
for concrete curing works and admixtures for also significantly contribute to positive impact through
concrete production water conservation and groundwater recharge. The
Company has partnered with an independent third
party to assess CSR initiatives for water recharge and
Increasing wastewater recycling and use for non-
their impact on achieving Water Neutrality status at the
potable purposes, e.g., toilet flushing, gardening, dust
Company level.
suppression, landscaping

Increasing water harvesting

155
 Natural
Capital

Lakshya 2026 Targets on Natural Capital

The Company has set interim targets for carbon, water neutrality and other areas, which are a part of the current
Lakshya 2026 strategy plan. These are:

25 %
Emissions Intensity Reduction

50 %
Renewable (% of Electricity Consumption)

11 %
Energy Intensity Reduction

Emission and energy intensity reduction target w.r.t baseline FY 2020-21

Energy Intensity Reduction Path Emission Intensity Reduction Path

8.7 8.9 8.9

97.5 98.8 8.3
95.4 92.4

83.1 7.8
76.6
6.4

2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26

Target Energy Intensity (GJ / � Cr) Target Emission Intensity (tCO2e / � Cr)
Current /Projected Energy Intensity (GJ / � Cr) Current /Projected Emission Intensity (tCO2e / � Cr)

156 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Energy
In FY 2023-24, the Company’s total energy consumption was 10.5 Mn GJ, comprising direct energy consumption of
8.8 Mn GJ and indirect energy consumption of 1.7 Mn GJ. Total energy intensity has decreased by 15.9% compared to
FY 2022-23 and 13% compared to FY 2020-21 (baseline).

Renewable Energy
The Company has utilised 43.1 Mn kWh of renewable Energy (electricity) from renewable energy sources was
electricity, which consists of 9.2% of its total electricity 0.16 Mn GJ in FY 2023-24, which has increased around 20%
consumption (468 Mn kWh) in FY 2023-24. compared to FY 2022-23. The total electricity consumption
has increased from 1.3 Mn GJ in FY 2022-23 to 1.7 Mn GJ
Source Quantity Sourced in FY 2023-24. Compared to FY 2022-23, renewable as
(Mn kWh) a percentage of electricity has decreased slightly due to
lower sourcing through PPA. The unavailability of adequate
Solar (Captive and PPA) 10.3
land for installing solar modules, challenges in obtaining
Wind (Captive and PPA) 20.1 green open access for temporary connections, developers’
preference for long-term PPAs were the main hurdles faced
Others (Hybrid PPA and open access) 12.7 at project site location.

Direct Energy Intensity Indirect Energy Intensity Total Energy Intensity

(GJ / ` Cr) (GJ / ` Cr) (GJ / ` Cr)
86.4

13.2

13.3
84.2

98.8
97.4
12.4

83.1
69.7

2021-22 2022-23 2023-24 2021-22 2022-23 2023-24 2021-22 2022-23 2023-24

Total energy intensity decreased by 15.9% in FY 2023-24 Additionally, closure or tapering down of certain
compared to FY 2022-23, primarily due to a reduction projects, e.g., Mumbai Trans Harbour Link (MTHL),
in direct energy intensity by 19.3%. Many project Mumbai Coastal Road Project (MCRP) Package 01, Delhi
sites, e.g., Rail Vikas Nigam Limited (RVNL) Package International Airport Ltd. (DIAL) Runway, and Dwarka
02 and 04 and Chennai Metro Rail Ltd. (CMRL) ECV02, Expressway, and reduction in on site civil construction
have switched to grid electricity from DG. New activities in a few projects, e.g., Mumbai Ahmedabad
project sites have begun with electricity connections High-Speed Rail (MAHSR) C4 Package and Chennai
from the initial stage. Metro Rail Ltd. (CMRL) project, contributed to lower
diesel consumption compared to FY 2022-23.

PPA: Power Purchase Agreement

157
 Natural
Capital

GHG Emissions
Emissions attributed to the Company’s operations arise primarily from the use of fuel, electricity, and material in its
operations and processes. As part of its Net Zero strategy, the Company is working on reducing its GHG footprint across
the three scopes.

Scope 1 Scope 2 Scope 3

Emissions from consumption of Emissions from consumption of Emissions from purchased
fuels such as petrol, high-speed grid electricity, sourced from goods, upstream transportation
diesel, furnace oil, natural gas, DISCOMs, in various plants, and distribution, employee
LPG, CNG, and acetylene in various machinery, manufacturing commuting, and business travel.
construction machinery, diesel facilities, and offices.
generators, and furnaces.

6,35,646 tCO2e 3,49,682 tCO2e 70,73,536 tCO2e

Scope 3 emissions has been estimated based on the GHG Protocol. More than 95% of Scope 3 emissions comes from
purchase of goods and within that category, 90% is contributed by consumption of steel and cement used at project sites.

Scope 1 Emission Intensity2 Scope 2 Emission Intensity2 Scope 1+2 Emission Intensity2
(tCO2e / ` Cr) (tCO2e / ` Cr) (tCO2e / ` Cr)
6.4

2.7

2.8

8.9

8.9
6.2

2.5

7.8
5.0

2021-22 2022-23 2023-24 2021-22 2022-23 2023-24 2021-22 2022-23 2023-24

Emissions (Scope 1+2) intensity has decreased by 12.2% in FY 2023-24 compared to FY 2022-23 mainly due to a reduction
in direct energy consumption intensity.

Emissions avoided in FY 2023-24 due to reduction in emissions intensity

of the Company.
~1,37,000 tCO2e

2
Emission factor for diesel has been revised to 2.68 from 2.73 tCO2e/kL, aligned to latest emission factors in IPCC AR5. Emission factor for
grid electricity revised from 0.00081 to 0.000823 tCO2e/kWh based on the latest report of CEA, the central authority for power sector in
India; https://cea.nic.in/wp-content/uploads/baseline/2024/01/User_Guide__Version_19.0.pdf

158 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Emissions Reduction Initiatives

The Company is implementing various initiatives across the project sites and manufacturing facilities to reduce
emissions. Some initiatives and the benefits derived are:

Fossil Fuel Consumption Switching from Diesel Increasing Renewable

Reduction through Generators to Grid Electricity Electricity Sourcing
Operational Improvements for Power
Increasing the Company’s
Construction machinery used Various construction project renewable share of electricity
at project sites is typically sites are powered by DG sets is one of the areas of focus. In
powered by diesel. As part of due to remote locations and addition to the installation of
cost optimisation initiatives, hurdles in obtaining grid rooftop solar and third-party
project teams constantly look connections. The Company PPAs, a few project sites were
for means to maximise the has taken initiatives across successfully able to source
utilisation of such machinery various project sites to obtain renewable electricity through
as well as optimise the grid electricity connections and Green Tariffs offered by the
deployment. These initiatives reduce reliance on DG set. Distribution Company (DISCOM)
are enabled using sensor-based during the year. This has
technologies and digital tools. enabled these sites to transition
to 100% renewable electricity,
and similar efforts are being
explored and scaled up as much
as possible.

Emissions avoided in FY 2023-24: Emissions avoided in FY 2023-24: Emissions avoided in FY 2023-24:

22,207 tCO2e 12,952 tCO2e 1,675 tCO2e

For other initiatives on energy conservation and renewable energy, please refer to Annexure ‘A’ to the Board Report.

Stack Emissions SOx, NOx and PM Emissions (mg/m3)

The principal source of air
emissions is chimney stacks at FY 2022-23 FY 2023-24
the manufacturing facilities. The Location
Company ensures that these SOX NOX PM SOX NOX PM
emissions stay within permissible
Hazira 18 26 15 24 19 45
limits and has been taking
initiatives to reduce them. The
Pithampur 22 21 61 16 14 26
table shows stack emissions across
different manufacturing facilities Kancheepuram 11 44 38 10 46 37
of the Company.

159
 Natural
Capital

Adopting Cleaner Fuels

Hot Mix Plants (HMPs) are required for flexible pavement construction and typically
use furnace oil or High Speed Diesel (HSD) as fuel in the burners. Project teams at
the DIAL expansion project and Meerut Aligarh Road project explored options to
decarbonise the energy consumed in HMPs and identified a solution to replace
traditional burners with duel fuel burners which were powered with Compressed
Natural Gas. CNG is a comparatively cleaner fuel than furnace oil or HSD and
thereby, the teams were able to reduce the emissions from HMP operations.

Emissions avoided in FY 2023-24: 1,017 tCO2e

Replacing LPG with CBG

The Company’s Pithampur factory (capacity ~1 lakh TPA)

produces galvanised steel components for a range of
power transmission line towers. The factory is equipped
with the latest CNC lines for the fabrication of towers and
microprocessor-based temperature-controlled systems for
the galvanisation of tower members. Galvanising operations
were powered by LPG, which itself is a relatively clean fuel
compared to diesel. To further lower the carbon footprint, the
team initiated replacing LPG with Compressed Biogas (CBG)
and redesigned the production facility, along with the control
systems. CBG was sourced from Indore Municipal Corporation,
which has one of India’s largest Bio-CNG plants. This plant
generates CBG from the processing of municipal solid waste
and agri waste and has almost zero carbon emissions due to
feedstock being waste products.

Emissions avoided in FY 2023-24: 2,490 tCO2e.

Piloting Biofuels

Under Carbon Neutrality initiatives, the Company has also

started exploring options to replace fossil fuels with biofuels
and identified an agency for sourcing renewable diesel.
The key differentiator for this supplier is the use of agri and
agro-industrial waste as feedstock compared to vegetable
oils or animal fats typically used for generating biodiesel.
The Company has successfully conducted pilot studies with
up to 30% blending of this renewable diesel with traditional
diesel and has started implementation at some project sites.
This initiative would be gradually scaled up, both in terms of
coverage across sites and increased blending.

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Water
EPC projects and Hi-Tech Manufacturing do not have water intensive processes compared to other industries. Water
consumption for the Company is primarily driven by water required in civil works in EPC projects. The Company has
identified various initiatives to reduce water consumption and increase wastewater recycling at project sites and
manufacturing facilities. The manufacturing facilities and even a few projects are Zero Liquid Discharge locations,
mostly recycling and reusing the wastewater generated for various purpose. For example, gardening, toilet flushing,
and ancillary activities in construction sites, such as dust suppression, equipment washing, and other areas.

Water Consumption (Mn kL) Water Consumption Intensity (kL/` Cr)

111.4
12.9

101.5

102.0
11.1

11.0

2021-22 2022-23 2023-24 2021-22 2022-23 2023-24

The Company has made improvement in FY 2023-24 for capturing data related to water withdrawal, consumption,
and discharge. However, the Company has more than 700 project sites in operation, and which are by definition
temporary and with open boundaries. Water is taken from multiple sources, as per site conditions and discharged
through multiple points. These issues create significant challenge in putting direct measurement systems and therefore,
indirect estimation has to be made which presents difficulty in completeness and traceability of the data as required for
reasonable assurance standards. To improve data collection and reporting, the Company is redesigning the Standard
Operating Procedures (SOPs) which will based on reasonable assurance requirements, and this will be rolled out to all
the sites/locations. Additionally, the Company is finalising the digital solutions which would enable direct measurement
without manual intervention.

Improving Rainwater Harvesting

In Mumbai Ahmedabad High-Speed Rail (MAHSR)

project, one of the sections has implemented a
rainwater harvesting system with a conservation
capacity of ~6500 kL, conceptualised at the
design stage itself. Water conserved is stored in a
storage tank for use in site activities and provided
to the community for irrigation and other uses.
Additionally, the energy spent in sourcing water is
also avoided.

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Using Steam Curing to Reduce Water Consumption

Underground metro rail and main line rail tunnel projects

require tunnel rings to provide stability and strength to
the structure. Traditionally, the tunnel ring segments
are pre-casted using a water curing process. However,
the cycle time and water requirement are high in this
process. The steam curing method was implemented
at two projects - Chennai Metro Rail Ltd (CMRL) TU02
and Rail Vikas Nigam Limited (RVNL) 04 Project. This
involved a special setup to apply high temperature steam
to freshly casted segments in a controlled environment.
This method accelerates the curing process, leading to
faster strength development and reduced curing time and
water consumption compared to the traditional method.
Segment curing time was reduced by 50%, enabling faster
tunnel construction and water requirement for the curing
process was reduced by ~60%.

Recharging Groundwater

In some underground metro projects, dewatering is

required to enable proper working conditions. Typically,
the water extracted in the dewatering process is sent to a
stormwater drain. In the Chennai Metro Rail Ltd (CMRL)
TU02 Project, the project team came up with a design to
process the water from the dewatering process and then
recharge groundwater through borewells. This enabled not
only safe discharge of the water but also helped replenish
groundwater. Approximately 21 kL per day of dewatered
quantity was sent to recharge wells. In FY 2023-24, the site
was able to recharge ~3,520 kL of water.

Recycling Wastewater

Talegaon facility is an important manufacturing unit for

the Company. The business team has been implementing
initiatives over the years to improve the environment
performance of the unit. In FY 2023-24, the unit
implemented measures to reduce water consumption.
Key measures taken were: digital meters installation
to monitor consumption on a per-building basis, MBR
technology-based STP (Sewage Treatment Plant) installed
to replace the old STP, pipelines to segregate touch
and non-touch water from the storage tank, and use of
treated water for flushing, topping up cooling towers, and
gardening purposes. As a result of the initiatives taken, the
facility has been able to reduce freshwater consumption
per capita by ~70%.

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Awards and Accolades

Green Leaf Award in Energy Efficiency category for MAHSHR C4 Project

CII National Award for Environmental Best Practices

CII DX Award for Best Practice in Digital Transformation - Equipment monitoring

National Environment Award - Industrial Construction Sector at Global Safety Summit

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 Natural
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Waste and Circular Economy

Waste management is a material topic and a key focus area for the Company due to the volume and type of material
used in EPC projects and manufacturing. The strategy to manage waste is aligned with the principles of Circular
Economy and focusses on the 3Rs, i.e., Reduce, Reuse, and Recycle. Waste management is integrated into the EHS
management system with comprehensive guidelines and procedures to ensure proper waste management. Measures
include waste identification, segregation, collection, recycling, and disposal. The Company has tied up with registered
waste processors and waste handling agencies and ensures that all regulatory compliances are met.

Waste Management Measures

à Hazardous waste is stored and transported as per the statutory requirements

• Hazardous waste, such as used oil, oil-soaked cotton waste, used chemical/paint/oil containers, batteries, paint
residues, ETP sludge; Electronic waste (e-waste); and Biomedical Waste, are disposed of through Government-
approved recyclers/re-refiners/re-processors and according to the statutory requirements

• There is no import, export, transport, or treatment of any hazardous waste covered under the Basel Convention

à Non-hazardous waste is either reused, recycled, or disposed according to the relevant procedures

Hazardous waste (tonnes) Non-hazardous waste (‘000 tonnes)

> 50%
7,474

446.6

Waste Recycled/Reused of

2.4 lakh tonnes

322.6

Construction and Demolition

4,239

waste generated
2,331

49.6

2021-22 2022-23 2023-24 2021-22 2022-23 2023-24

The significant increase in waste generation is due to enhancement in waste data capturing/reporting across different businesses and
on account of higher material consumption linked to significantly higher execution.

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Recycling and Reusing the Waste

Concrete waste is generated in project site. In the Kudankulam different sizes. This was reused in
civil works related to infrastructure Nuclear Power Project, the project making solid blocks and aggregates
projects. Typically, this is disposed team established a crusher plant to for use in construction and
through authorised agencies or process this concrete waste. Concrete infrastructure works in workmen
sent to landfills. The concrete waste of ~160 tonnes was crushed colony at the site.
waste also consumes space at the and processed into aggregates of

Approach road using steel slag Paver Blocks from concrete waste Benches and chairs for labour colony from
wooden waste

Support structure Reuse of Concrete Waste - structure pedestal, building floor, canteen benches
using steel scrap

Extended Producers Responsibility (EPR)

In 2022, the Ministry of Environment, Forest, and Climate Change (MoEFCC) made amendments to EPR Rules related
to plastic waste, e-waste, and battery waste. As a result, the coverage of the Rules was extended to importers, who
could generate plastic waste from packaging of imported materials; e-waste, which could be generated from imported
electronic or electrical items; and battery waste, which could be generated from imported batteries or equipment
containing batteries. The Company has obtained registration as an importer under the EPR Rules for all three waste
categories. To comply with EPR Rules and improve the waste management systems, the Company has created processes
and undertaken awareness sessions for the concerned departments.

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Material Management
Steel, cement, aggregates, and sand are major materials used in the operation. The Company is striving to increase the
use of sustainable and eco-friendly materials as well as the recycling of materials within its production facilities. At the
Company’s transmission tower production facility, sustained efforts are being made to recycle steel and zinc that are
consumed in the operations. However, design standards and customer specifications are limiting factors in increasing
the use of non-virgin or waste materials, e.g., fly ash and GGBS. The Company actively promotes and tries to maximise
the use of such materials for various applications across construction projects.

Fly ash (Mn tonnes) GGBS (Mn tonnes) Manufactured Sand (Mn tonnes)

0.5

4.0
0.3
0.3

3.1
0.2

0.3
0.2

1.3
2021-22 2022-23 2023-24 2021-22 2022-23 2023-24 2021-22 2022-23 2023-24

% of Manufactured Sand used in Share of Fly ash and GGBS in % of Eco-Friendly and Recycled
place of sand cementitious materials materials of total bulk materials

32%
54%

14%
45%

12%

24%
10%

18%
29%

2021-22 2022-23 2023-24 2021-22 2022-23 2023-24 2021-22 2022-23 2023-24

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Presence in Eco-Sensitive Areas

The Company has operations in a few eco-sensitive
areas (such as national parks, coastal regulation
zones) that are subject to the nature of the business.
The Company complies with all applicable rules and
regulations for such locations and ensures that ‘Do No
Harm’ approach is followed during the operations.
Further, the Company has taken additional steps to
mitigate the impact on the environment. A list of
projects in these eco-sensitive locations is provided
in Essential Indicator No. 11, and prevention and
remediation measures taken are indicated in
Leadership Indicator No. 3 in Principle 6 of the BRSR.

Green Buildings of the Company

The Company has been at the forefront of promoting
and creating Green Buildings both for itself as well
as its clients. In FY 2023-24, L&T Data Center-1 in
Kancheepuram, received Indian Green Building Council
(IGBC) Platinum rating while one of the buildings in
Chennai campus received IGBC Net Zero rating for
design. Leadership Development Academy (LDA),
Lonavala, was re-certified as IGBC Platinum in FY 2021-22,
and A. M. Naik Tower, Mumbai, was certified as
Leadership in Energy and Environmental Design (LEED)
Platinum in FY 2020-21. There are 12 other buildings
across various locations certified at different periods.

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 Natural
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Biodiversity

Tree Plantation
L&T planted ~4 million saplings in FY 2023-24, with over 99% planted by Water & Effluent Treatment (WET) business.
Over the years (2008-2024), L&T has planted around 13 million saplings. During 15-17 August 2023, a massive plantation
drive 'Project GreenHands' was undertaken with more than 2.5 million saplings planted across 559 project sites.

Boudh and Kandhamal project, Odisha

Chennai HQ

Lower Sutkel project, Odisha

Ad Dakhiliyah project, Oman

Indore water project, Indore

24x7 water project, Pune

Water Technology Centre, Kancheepuram Bargarh project, Odisha

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Blue Carbon Initiatives to maintain coastal environmental integrity and

compensatory eco-restoration in a time-phased
Mangroves are salt-tolerant plants growing in mangrove plantation programme over 150 hectares
the coastal zone in the tidal areas and estuaries at Katpor village in Hansot block of Bharuch district.
of rivers. Mangroves play a very significant role in The plantation activities were completed in 2014-15
maintaining the coastal environment, reducing the with community participation. The plantation is
impact of wave action and erosion in the coastal maintained by the village-level community-based
areas, preventing salinity and seawater ingress into organisation in association with Gujarat Ecology
the inland agricultural areas, and protecting the Commission (GEC) through gap-filling activities
coastline from the impact of cyclones. Apart from and protecting the plantation through social
these ecological functions, mangroves play a very fencing. To improve the biodiversity of the area,
significant economic role in the lives of the coastal and particularly, Bharuch coast, new species like
village communities. The villagers are dependent on Rhlzophora mucronata and Ceriops tagai were also
mangroves for fodder, fuelwood, and fishing. planted on an experimental basis. The Company
is working towards planting mangroves in other
L&T’s A. M. Naik Heavy Engineering Complex is locations along coastal area.
located near the coastal region of Hazira (Surat),
Gujarat. The Company has undertaken initiatives

Before Plantation

Current state

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 Natural
Capital

Strategy for Climate Change Mitigation and Adaptation

As the effects of climate change intensify, establishing a pre-emptive strategy to respond to the risks and opportunities
has become a significant factor for a company’s long-term competitiveness and business growth. Based on the
international framework1, climate change risks can be classified into transition and physical risk. Transition risk
represents the risk that may arise during the transition to a low-carbon economy – categorised into risks resulting from
law and policy, technology, market, and reputation. Physical risk represents the risk arising from physical impacts such
as flooding and rising temperatures – categorised into acute and chronic risk. On one hand, managing climate change-
related risks is crucial for the Company, and on the other, it also provides opportunities for growth for current and new
businesses. A brief overview of risks and opportunities is presented below:

Transition Risks

Regulatory

Risk Company’s Plans and Actions

Sustainability performance and disclosure requirements The Company tracks the changes in legal and
are increasing each year. The Company is operating in regulatory requirements and accordingly strengthens
more than 700 locations. This increases complexity in internal systems and processes. This includes the use
compliance with changing regulatory requirements, of technology and digital applications to assist in data
e.g., new KPIs introduced in BRSR Core and may lead to management and reporting.
higher operating costs.

Technology

Risk Company’s Plans and Actions

EPC projects are heavily dependent on construction The Company has initiated actions related to reducing
machinery, which are typically powered by fossil fuels, fossil fuel consumption, e.g., replacing diesel-powered
and in some cases, by electricity. Most technology equipment with electricity-powered ones. Additionally,
options available in the market are not viable for use at exploring options such as electric P&M to enable a
project sites. Replacing the existing assets or modifying smooth transition.
the current site setup may require a significant amount
of capital expenditure.

Market

Risk Company’s Plans and Actions

The Company has a presence in the value chain linked The Company assesses the outlook for the
to fossil fuels, e.g., thermal power and oil & gas. Also, businesses at risk and identifies opportunities for
any demand reduction is a business risk. Resources and reallocating resources. Options are being explored
investment devoted to these segments may pose risk for repurposing the investment already made.
of becoming irrelevant or impaired.

1
Frameworks e.g., Task Force on Climate-Related Financial Disclosures (TCFD)

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Physical Risks

Acute

Risk Company’s Plans and Actions

Extremely high temperatures pose a danger to the The Company assesses the measures to handle such
health and safety of the workforce and could impact situations, and appropriate measures are taken to
productivity, and in turn, project schedules and reschedule working hours, provide proper breaks,
deliverables. ensure availability of drinking water, adopt additional
measures for the health and safety of the workforce,
and conduct awareness sessions.

The frequency and intensity of extreme precipitation As a part of risk management, the impact of such
events are increasing extensively. It poses a significant events is assessed, and mitigative actions are taken.
risk to the operations of the Company as well as Monsoon preparedness plans are a standard condition
damage to the assets. nowadays for all project sites and cover not only the
protection of equipment and backup facilities but also
the plan for restoring normal operations.

Chronic

Risk Company’s Plans and Actions

Weather conditions experienced at work locations The Company’s work locations, particularly the
may be significantly different from historical or project site locations, track the current weather
predicted meteorological data. This may impact the pattern through information obtained from the
preparedness of the work location and could impact Meteorological Department. Deviations observed
the operating costs. against the original information are factored into the
project schedule, as well as additional actions to ensure
the safety of resources/assets.

Along with climate change, water stress has The Company is focussing on reducing groundwater
increasingly become a global risk. As a result, new withdrawal, particularly in water-stressed areas.
regulations related to water use and withdrawal are Initiatives are being taken to reduce water
being formulated and enforced. This may impose an consumption through use of curing compounds and
additional burden on operations to find alternate plasticisers for concrete curing works and admixtures
assured sources of water. for concrete production. Other initiatives are focussed
on improving wastewater recycling and the use of
treated wastewater from municipal corporations and
rainwater harvesting.

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 Natural
Capital

Mitigating Effect of Heatwaves

Extreme summer heat in India and Middle East, all employees and workmen. Special awareness
exacerbated by frequent heat waves, impacts sessions on heat stress are also held across projects
productivity as well as health and wellbeing of sites and manufacturing facilities. The Company
the workforce. The impact is more severe for is providing first-aid training, as well as arranging
project sites operating in open environment. The regular supplies of ORS, lemon water, glucose water
Company takes proactive measures to safeguard and buttermilk to workers. Additional shelters and
the workforce from adverse effects of the intense restrooms are provided across site locations and
heat through additional health measures, working air coolers are installed in workmen habitats. The
time adjustments and advisories/awareness sessions. working schedule is adjusted to prevent exposure
The Company holds frequent medical check-ups and to peak daytime temperatures and extended lunch
makes a doctor available fulltime for identifying the breaks, from noon to 3 PM and even 11 AM to 5 PM
symptoms of heat stress in the workforce. Health in extreme cases, are given to workmen engaged
advisories have been issued by the Corporate Medical in outdoor work.
team as well as respective business EHS teams to

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Climate Change Opportunities

Energy Source

Opportunity Company’s Plans and Actions

Several possibilities are emerging to source renewable The Company has initiated interventions to increase
energy, and in most cases, these lead to a reduction in the sourcing of renewable electricity. Also, initiated
the direct cost of operation. of biodiesel blending with diesel.

Resource Efficiency

Opportunity Company’s Plans and Actions

Reducing natural resource consumption in operations The Company actively pursues substituting
is one of the key pillars of sustainability for the traditional material, e.g., cement, with non-virgin
Company. Opportunities are available not only to or environment-friendly materials such as fly ash
reduce direct costs but also to provide such services and GGBS. Ferrous, non-ferrous and construction
for clients, which, in turn, enables them to chart their and demolition waste are being reused to the
journey in climate change mitigation. maximum extent.

Products and Services

Opportunity Company’s Plans and Actions

Demand for ‘green’ and ‘sustainable’ products The Company offers a bouquet of solutions under
and services is increasing across the world. Also, ‘Green Business’, which enables clients to reduce
clients are diversifying to build sustainable their environmental footprint. These businesses
infrastructure assets. comprise clean energy, clean mobility, water and
sanitation, green infrastructure, and other areas.

Market

Opportunity Company’s Plans and Actions

One of the levers of energy transition is green The Company has incubated a business linked to
hydrogen, and many industries are exploring green hydrogen. This involves the manufacturing
opportunities to adopt this energy source. of electrolysers as well as the supply of green
hydrogen as a fuel.

173
 Manufactured
Capital

MANUFACTURED
CAPITAL

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Manufactured capital for L&T comprises Strategy Linkage1

businesses in EPC Projects and Hi-Tech
Manufacturing. The Company strives to SO-I SO-III SO-V
maintain its leadership position across
various industry segments through
SE-1 SE-2 SE-3 SE-4 SE-5
delivery excellence, technology-enabled
solutions, and innovation. This helps
support business growth and value
creation by the Company by enhancing SDGs Impacted
its offerings to the clients as well as
opportunities to improve on various
parameters, e.g., resource productivity
and equipment utilisation. Outlook for
various industry segments is positive
on the back of high public investments.
However, challenges continue to remain
due to macro factors as well as industry
specific issues. The Company aims to
Material Topics
maintain a strong Order Book position,
which provides a firm foundation to Customer Quality of
continue the growth momentum in the Experience and Products and
forthcoming years. Satisfaction Project Delivery

Water, Waste, and Skilled

Key Highlights of FY 2023-24 Hazardous Materials Manpower
Management

716
Active project sites
Sustainable
Supply Chain
Human Rights and
Labour Conditions

Data Security, Privacy, Brand

18
Manufacturing facilities
and Cyber Security Management

` 63,426 Cr
Green Business revenue

1
For details, refer to ‘Business Model and Strategy’ section.

175
 Manufactured
Capital

Hi-Tech Manufacturing
The Company has created manufacturing facilities that are globally recognised capabilities for producing engineered-
to-order equipment solutions for process plants, nuclear power plants, aerospace and other sectors.

A. M. Naik Heavy Engineering Modular Fabrication Facility, Shipbuilding Facility,

Complex, Hazira, Gujarat Kattupalli, Tamil Nadu Kattupalli, Tamil Nadu
World-class manufacturing complex Strategically located, state-of-the-art, Globally recognised shipbuilding
with cutting-edge technology all-weather waterfront Modular facility near the waterfront.
adopting Industry 4.0. Fabrication Facility.

There are other smaller manufacturing

units in Coimbatore, Tamil Nadu and
Mumbai, Maharashtra.

A detailed description of
the business capabilities,
achievements, and sector
Strategic Systems Complex, Manufacturing Units,
outlook is covered in the
Talegaon, Maharashtra Kancheepuram, Tamil Nadu
‘Management Discussion
A recognised facility for prototyping Manufacturing units related to and Analysis’ section of
and manufacturing precision businesses in areas of transmission this Report.
engineering and sensor systems. tower manufacturing and rubber
processing machinery are located
at Kancheepuram (~70 km from
Chennai). It has a Transmission Tower
Testing and Research Station as well,
which provides design and testing
services to clientele from 33 countries.

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EPC Projects
This segment comprises businesses that are recognised for their end-to-end design-to-deliver
capabilities to create assets linked to infrastructure, energy, and metals. These businesses have
established credentials in conceptualising, designing, executing, and commissioning large and
complex projects for various industries and segments.

Buildings & Factories Transportation Infrastructure Heavy Civil Infrastructure

The entire spectrum of solutions for Full spectrum of solutions for Complex projects related to high-
urban infrastructure, hospitals, IT highways, bridges, elevated speed rail, mass transit systems,
infrastructure and data centers, and corridors, runways, railways, nuclear power plants, hydroelectric
industrial plants. and mass transit systems. power plants, tunnels, ports, and
marine structures.

Power Transmission & Distribution Water & Effluent Treatment Minerals & Metals
Solutions for power transmission The entire spectrum of solutions for Solutions for iron and steel
lines, substations, cable networks, water treatment and distribution, plants, non-ferrous smelters and
solar PV plants, mini/microgrids, and wastewater treatment and collection, refineries, mineral beneficiation
digital solutions for power systems. desalination plants, irrigation, plants, speciality conveyors,
industrial effluent treatment, water and mining and bulk material
management, and smart water. handling equipment.

A detailed description of
L&T Energy – Hydrocarbon L&T Energy – Power
the business capabilities,
Large and complex projects related Large and complex projects related to achievements, and sector
to oil and gas extraction, upstream thermal power plants, nuclear steam outlook is covered in the
oil and gas processing, mid and and turbine islands and environment ‘Management Discussion and
downstream processing, pipelines, solutions for power plants. Analysis’ section of this Report.
storage tanks and terminals, and
coal/pet-coke gasification.

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 Manufactured
Capital

Green Business
Linked to two Strategic Objectives of conservation through recycling A third-party assessment was
the Company, i.e., SO-III (Developing or repurposing through its Green conducted in the previous year
business offerings to ride the Energy Business offerings. to understand the positive
Transition) and SO-V (Enabling impact of Green Business on the
business sustainability through a The Company has referred to the environment. It was estimated
high focus on ESG and Shareholder ‘FTSE Green Revenues Classification that the projects commissioned in
Value Creation), the Company offers System 2.0 (GRCS) 2, which is FY 2021-22 and FY 2022-23 would
a bouquet of solutions to create comprehensively aligned to the EU help avoid emissions annually to
sustainable and green assets for its Taxonomy, for mapping revenues the tune of 1 million tCO2e. The
customers. These solutions, termed from products and services that Company’s green commitment has
‘Green Business’, are centred around have a positive impact on the also been acknowledged globally
clean energy, clean mobility, water environment. by Engineering News-Record
and sanitation, green infrastructure, (ENR), which is one of the globally
and other areas linked to a greener The Green Business contributed recognised construction industry
future. The Company enables its `634 billion (50%) to the revenue of publications. L&T has been ranked
customers improve energy efficiency, the Company as compared to 37% in third in the Top 200 Environment
lower carbon emissions, enhance FY 2023. The Company had aimed to Firms Survey by ENR for the second
water use efficiency, increase increase its share of Green Business year in a row (2022, 2023).
wastewater recycling, reduce air to 40% of revenue as part of its
pollution, and enable resource Lakshya 2026 strategy plan.

Clean Energy Clean Mobility

à Renewable Energy à Mass Transit Systems
(Solar, Hydro) (Metro Rail, Light Rail Transit)
9%
à Nuclear à High-speed Rail,
Semi-High-speed Rail
Green Infrastructure 17% 31% à Conventional Railway
à Green Buildings

Others Water & Sanitation

à Efficient Power Transmission 18% à Water Supply
and Distribution Systems à Irrigation
25%
à Process Equipment for à Treatment Plants (Water,
Biodiesel/Clean Fuels Wastewater, Effluent)
à Surface Miners/Sand Plants, à Network (Wastewater)
etc. (Except for Coal)

2
Globally accepted FTSE Green Revenues Classification System is a taxonomy used to define and measure industrial transition to a Green
Economy. It captures environmental products and services covering 10 green sectors, 64 subsectors and 133 micro sectors; https://www.lseg.
com/en/ftse-russell/green-revenues-data-model

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The Company’s Green Business offerings fall under two common strategies to handle climate change.

Strategy Offerings
Climate Change Mitigation - Renewable Energy Plants, Nuclear Energy Plants,
Reduce the impact of current processes/systems on Mass Transit Systems, Railway Networks, and Others
the environment (Process Equipment for Clean Fuels)

Climate Change Adaptation - Water and Sanitation Infrastructure, Green Buildings,

Building resilience to manage the and others (Smart City Systems, Sand Plants)
consequence of changes

Infrastructure/assets created under mitigation also help in adaptation through second-order effects.

Snapshot of Company’s Green Business

Hydro Power Plant Mass Transit System

Water Treatment Plant

Railways Solar Power Plant

Nuclear Power Plant

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 Human
Capital

HUMAN
CAPITAL

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From driving innovation to delivering Strategy Linkage1

exceptional customer experience, the
workforce of L&T plays a pivotal role in SO-I SO-II SO-III SO-IV SO-V
shaping the trajectory of the Company.
L&T has a multi-generational workforce
drawn from diverse ethnic and cultural SE-2 SE-4
backgrounds and brings a rich mix
of educational and professional
experience. The Company fosters a SDGs Impacted
fair, inclusive, performance-driven, and
collaborative work culture. L&T aspires
to create a pipeline of talent that can
deliver for diverse businesses while
conforming to L&T’s values and ethos.
The Human Resources function plays a Material Topics
key role in developing, reinforcing, and
Employee and Skilled
transforming the organisation. Workforce Engagement, Manpower
Well-being, Health
and Safety
Key Highlights of FY 2023-24
Talent Management - Diversity, Inclusion
59,344
Total employee strength
Attraction, Retention
and Development
and Equal
Opportunity

Human Rights and Business

6.9 Mn
Safety training man hours
Labour Conditions Ethics

Brand
Management

33 Years
Median age of employees

0.07
Lost Time Injury Frequency Rate (LTIFR)

1
For details, refer to ‘Business Model and Strategy’ section.

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 Human
Capital

HR Strategy
L&T continues to implement various strategic and developmental initiatives to promote growth and enhance
efficiency at the organisational level. The approach is at two broad levels - Lakshya Strategic Plan (medium-term)
and Annual Plan (short-term). HR Strategy is a derivative of the Lakshya 2026 business strategy plan. Lakshya 2026
Corporate HR Steering Committee, comprising senior leaders across functions, identified five strategic themes to be a
future-ready organisation.

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The annual action items initiated in alignment with the five strategic themes identified are as follows:

Strategic Themes and Key initiatives in FY 2023-24

Project NEEV

Talent Council
Employee
Experience Employee-centric policies and schemes

Launch of People Leadership Excellence Framework

Roll out multiple training programmes anchored around five dimensions of the People
Leadership Excellence Framework
People Leadership
270-degree feedback for people managers
at Core (along with
Talent Mobility)
People Leadership Development Programme

HR competency framework aligned to be future ready; mapped across HR roles, and a role-
proficiency matrix designed to set capability expectations and support development of team
members in HR

Organisation Structure - Developed a structured process and guidebook to facilitate

Agile Leadership
discussions on organisation redesign, ensuring agility and responsiveness to evolving needs

Diversity Ratio 8.1%

Implementation of a progressive maternity leave policy

Introduction of enhanced facilities for women employees in terms of flexibility, travel

Diversity, Equity, allowances, and childcare
and Inclusion
Institutionalised first-of-its-kind DEI Awards Ceremony and Allyship Awards

Various choices of consideration with respect to the Alternate Talent Models way of working
– gig workers/part-time/freelance being studied

By exploring these alternatives, organisations can better adapt to the evolving workforce
Alternate Talent
landscape with the consideration of regulatory guidelines and compliances
Model

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Accelerating HR Digitalisation
L&T’s HR Digitalisation journey MS Teams, aiding in conducting The launch of ATLVarsity has
began in 2019 with the quick engagement surveys brought a plethora of L&T’s
incorporation of an advanced across the organisation. HEERA learning and development
ERP system in the form of Success provides a window for employee offerings under one platform.
Factors. The Company extended queries and resolutions with a As a step towards democratising
the platform in 2023 with further resolution effectiveness of 99%. learning opportunities, this
enhancements by introducing The Company implemented an multi-faceted learning platform
Performance Management, Career online compensation management offers a variety of rich learning
Development, and Succession platform in 2023. This platform is resources (behavioural, technical,
Planning modules. Subsequently, implemented across all businesses, and functional) in collaboration
the Company launched the 270- thereby bringing efficiency with globally renowned course
degree feedback module as well. to traditional compensation providers like Skillsoft, Coursera,
management methodology. The EBSCO, and so on.
The Company has a robust Talent Company is also in the preliminary
Acquisition module integrated stage of launching a new Learning
into the ERP system. HEERA, an Management System and a
Al-enabled bot, is integrated with Workforce Analytics module.

Talent Strategy
30%
The Strategic Leadership Talent GETs and PGETs hired were
Acquisition function regularly women over the last two years
augments its leadership hiring
GET: Graduate Engineering Trainee
strategies to identify, select, PGET: Post Graduate Engineering Trainee
and onboard high-calibre talent
across various businesses in line These accomplishments not only
with strategic plans. The team reflect our relentless pursuit of
continues to support the expanding excellence but also the Company’s
portfolio of businesses such as commitment towards enhancing
Semiconductor, Green Energy, gender diversity. Additionally, more
SuFin, Data Center, and Corporate, than 1,600 young professionals have
enabling functions across the globe, been onboarded, comprising MBA
in addition to meeting the needs of Graduates, Chartered Accountants,
leadership talent in our businesses. Cost Accountants, Diploma
Engineers, and other trainees.
Young Talent Professional
Acquisition is a commitment of Beyond recruitment, the focus
the Company to nurture talent. In is on crafting a distinctive
FY 2023-24, the Company continued employer brand through strategic
to stay anchored to the core sponsorship programmes at various
philosophy of ‘Growing our own engineering institutes, social media
timber,’ by attracting, recruiting, engagement, and other branding
and onboarding over 2,600 young initiatives. L&T continues to be the
engineering professionals across employer of choice among budding
various business verticals within Engineering professionals.
L&T Group as GETs and PGETs.

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At L&T, the candidates are nourished through the Young Professional Talent Acquisition holds strategic
engagement programme GRACE (Get Ready for an significance for the organisation as it pertains to
Awesome Career in Engineering), which encompasses the onboarding of new talent and their subsequent
pre-joining initiatives such as radio podcasts and development into future leadership positions. It also
gamified content on business achievements through contributes to maintaining a youthful workforce and
leader boards, quizzes, webinars, micro-learning shaping a well-balanced manpower structure.
platforms, and competitions.

Building a Powerful Employer Brand: FY 2023-24 Highlights

The Company’s branding strategies are deeply rooted forums and awards. This year’s accomplishments include
in the organisation’s Employee Value Proposition (EVP). achieving the ‘Great Place to Work 2023’ certification
The content across various channels, such as LinkedIn (second time in a row), recognised as India’s Best
and YouTube, is aligned with EVP and has successfully Employer among Nation Builders 2023 by Great Place
increased brand awareness and fostered deeper to Work India, recognised as a Company with Great
engagement with our audience. Managers Award for the third time consecutively, CII
HR Excellence Award, Golden Peacock Awards 2023,
Besides the continued efforts on social media, the ET HR Awards 2023, and the prestigious awards at the
position of the Company has been reinforced as an international scale such as Brandon Hall HCM Excellence
employer of choice by participating in various industry Awards and Gold Stevie Best Employer 2023.

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Talent Development

Talent Identification and Succession Planning

The Company is not only responding objective selection process using career stage. The emerging leaders
to the trends but also laying the a bouquet of tools. The process who move up to the Seven Step
groundwork towards a resilient and helps identify the strengths and Leadership Pipeline Development
adaptive future. Talent identification developmental needs of employees Programme are mentored by senior
and evaluation happen through in terms of required competencies. leaders, ensuring robustness in
L&T’s Performance Management In FY 2023-24, the Company had the continuity of the leadership
System FAIR (Framework for Linking 900+ talent assessed through thought process and value system.
Appraisals with Incentives and Development Centres and utilised ‘The ASCENT Series’ and ‘People
Rewards). It ensures recognition the Individual Development Plan Leadership Programmes’ delve
of talent and meritocracy. FAIR module to facilitate their respective deeper, offering competency
is integrated with the Career developmental journey. development tailored to the complex
Development and Succession challenges of leadership roles.
Planning Module to facilitate the Leadership Development is Significantly, L&T places a high value
succession planning process. the cornerstone of L&T’s L&D on diversity and inclusiveness, with
framework. Through the Leadership programmes like ‘Women Leadership
The Leadership Development Development Academy, L&T charts (DEI)’ reflecting a dedication
Centres, pivotal to the Company’s a clear path for potential leaders to fostering female leadership
core philosophy of grooming internal with its Seven Step Leadership within its ranks.
talent, ensure the right leadership Pipeline Programme, designed to
talent is identified through an nurture leadership qualities at every

Launch of L&T Business Excellence Model

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Employee Profile: Age and Gender New Joinees profile: Age and Gender
59,344

Grand Total Grand Total

54,885

Male Male
60,000 Female Female

14,968
13,510
50,000

34,557
15,000

32,994
40,000 12,000

19,609

7,761
6,909
16,891
30,000

6,643

6,579
9,000

20,000 6,000
5,178
5,000
4,459

2,718
1,563

1,458

1,182
10,000 3,000
178

298

266
288
10
0 0
Grand Total >50 yrs 30-50 yrs <30 yrs Grand Total >50 yrs 30-50 yrs <30 yrs

Compensation Philosophy
L&T’s Compensation Philosophy is governed by a 3P model based on fairness, meritocracy, and compliance to attract,
retain, motivate, and reward employees.

Pay for Position Pay for Performance Pay for Potential

à Internal and external à Considers employees’ à Considers capabilities and

market benchmarking to performance measured experience in setting an
ensure parity through achievement of Key equitable and competitive
à Developing an equitable Responsibility Areas (KRAs) pay level
grading structure, and performance thrust à Potential of an
pay equity, and areas of the organisation/ employee measured in
career development business entities Development Centres (DC)
using tools under L&T
Competency Framework

*Note – total employees comprise permanent and non-permanent employees and permanent workers (as reported in BRSR)

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Corporate Learning and Development

At the heart of L&T’s Human Resources strategy is Learning and Development (L&D), dedicated to continuously
enhancing employee capabilities through strategic learning interventions. These initiatives are designed to align
with the Company’s business needs and adapt to the dynamic business environment. Embracing innovations, various
digital instruments, AR/VR simulations, and web-based platforms have been employed. The corporate L&D group
works in tandem with internal business HR divisions across different platforms, nurturing continuous conversation
on people development. The Company also engages with external industry circles for benchmarking, insight
gathering, and networking.

Leadership Development People Leadership

L&T’s Leadership Development initiatives are In FY 2023-24, L&T unveiled the People Leadership
designed to bolster the organisation by equipping its Excellence Framework, a testament to its reinforced
talent and leadership pipeline for future growth. The culture of performance. Through rigorous diagnostics,
Seven Step Leadership Pipeline Programme enhances task force formation, and extensive data collection
leadership skills in high-potential employees across via FGDs and surveys, L&T identified five key
management levels through selective, advanced dimensions of People Leadership: Personal Excellence,
training by top-tier faculty from Harvard University, Relationship Excellence, Performance Excellence,
London Business School, INSEAD Singapore, Developmental Excellence, and Leadership Excellence.
University of Michigan, and IIM Ahmedabad. This strategic framework serves as a pivotal blueprint
In parallel, ASCENT, a series of competency for spearheading initiatives that drive L&T towards
development programmes delivered by esteemed Leadership Excellence. Building on its People Leadership
faculty from prominent B-Schools in India, empower Excellence Framework, L&T initiated several training
L&T’s high achievers to reach their utmost potential. programmes targeting employees at various levels. The
programmes launched under the People Leadership
Framework were Managing Gen Z, Managing Upwards,
Leading with Emotional Intelligence, and Nurturing
High-Performance Work Culture.

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Summary of Corporate L&D Offerings

Category Programmes

Leadership Step 1 Step 2 Step 3 Step 4

Pipeline Management Leadership Global Leadership Transforming
Development Education Development Development L&T into a Global
- Seven Step Programme Programme Programme Corporation
Programme Programme
Step 5 Step 6 Step 7
Global CEOs International Mentoring
Programme Executive
Education
Programmes

Competency
ASCENT Series Think, Act, Engage Clusters
Development
(Across Management Tiers) (Across Management Tiers)
Programmes

Project Level 1 Level 1+ Level 2 Level 3 Level 4

Management Programme International Advanced Project International Project
Leadership Excellence for Excellence Executive Master Leadership Project Portfolio
Development Programmes in Project in Business Programme Leadership Leadership
(Pragati) Delivery (Specialisation Programme Programme
in Project
Management)

WINSPIRE
(Women Rise Propel
Leadership)

Young Talent Post Graduate Newbie to Harvard Manage DDI

Development Executive Knowbie (N2K) Mentor (mini (Leadership
Management MBA programme) Education
Programme programme)

Management
Management Development Programmes (in association with institutions
Development
such as XLRI, NMIMS, IIM-B, IIM-C, and more)
General Programmes
Management
Development Accreditation Accreditation Programme in Executive Diploma in Human
Corporate Law Resource Management

Technology Development
Technical Orientation and Multi-Engineering Skill-Building Modules
Programmes

Self Inspired Coursera Percipio RaPL - Quiz- EBSCO - Digital

Self Paced Courses, based Learning Library
e-books,
(SISP) Learning audiobooks

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Learning Infrastructure and Initiatives

Academies for Specialised Skill

Development
There are dedicated academies for business-specific skill
development requirements like the Tunnel Academy for
road construction, the Railways Academy for railway
business, the Power Training Institute for power business,
and Building Information Management (BIM) Academy
for buildings and factories business. The goal is to enable
focus on specific core business areas to be developed.

L&T Institute of Project Management

Recognising the critical role of project management in
the Company’s growth, L&T established its Institute of
Project Management (IPM) in 2008 at Vadodara. The
institute addresses the need for adept project managers
to lead large, complex projects in competitive and
intricate markets. L&T IPM stimulates and leverages
its young intellectual capital by offering a portfolio
of learning opportunities such as PRAGATI - Project
Leadership Development Programme for developing
megaproject leaders, Specific Competency Development
Modules (SCDMs), and Master Classes (MCs) in the core
areas of project management such as planning, cost
management, contracts, and risks, and business-specific
programmes to address the unique project management
challenges pertaining to specific businesses. In FY
2023-24, IPM increased its coverage by 90% to
over 3,800 employees.

Launched during FY 2023-24, the Essentials of

Project Planning and Control (EPPC 2.0) Programme
is specifically designed to elevate the project
execution capabilities of our engineers, aligning
with the designation of FY 2023-24 as the ‘Year of
Project Controls’. This programme consists of three
independent modules, each focusing on key aspects of
project planning, cost management, monitoring, and
the practical application of tools such as Primavera/
MS Project. This initiative not only promises to
enhance our project delivery efficiency but also foster
a culture of continuous learning and development
among our engineers. Since its launch, 4,057 learners
have undergone different modules under the EPPC
programme as of March 31, 2024. CTEA Madh, Mumbai

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Corporate Technology and Engineering

Academy (CTEA), Madh and Mysore
In the fast-paced industries L&T operates in, specialised Employee development initiatives such as Coffee
centres like CTEA Madh and CTEA Mysore focus Sessions on ‘Advancement in Surveying and Mapping
on equipping professionals with specific technical Pile Foundation’, Learning Premier League, Technology
competencies. ‘Technical Development Programmes’ Day, and ‘CADFEST’ for designers received a broad
and ‘Engineering Academies,’ which are instrumental reach across various businesses. CTEA empowers and
in upskilling employees in the latest technologies and transforms PGETs, GETs, and First Line Supervisors
methodologies, play a key role in the development of (FLS) through immersive hands-on experiences in
specific technical skills. specialised labs.

CTEA Mysore launched 15 niche technology During FY 2023-24, CTEA trained 1,080 (PGET/GET/DET)
programmes delivered by top experts covering and 685 FLS, improving their confidence and
contemporary topics. Some of these topics include employability through comprehensive training in
Power System Analysis, Steel Connection Design and domain knowledge and hands-on lab experiences
Detailing, Segmental Construction, BIM Revit API with across various disciplines. 3,400 engineers were upskilled
Python, Technical Competency for Women, Bearing in a wide range of engineering, software, and other
Vibration and Analysis, ChatGPT, and more. professional competencies for both construction and
non-construction businesses.

CTEA Mysore

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ATLVarsity
L&T’s innovative Any Time Learning (ATL) platform, now The Skill Benchmarking
renamed ATLVarsity, revolutionises the way employees tool effectively identifies
engage with professional development. With on-the-go learners’ skill deficiencies,
learning as its USP, the platform boasts a wealth of offering precise course
resources in the form of videos, e-books, and journals. recommendations and
Partnerships with vendors like Percipio, Coursera, and resources. This tool simplifies
Harvard Manage Mentor enable L&T to present a the course selection process
wide array of certification courses that align with the for learners, enabling them to enhance their skills
Company’s competency framework, addressing the in congruence with their job roles efficiently.
diverse upskilling needs of its workforce.

AI/ML technology-based coaching programme at

ATLVarsity has enhanced the experience of inculcating
communication skills. Leveraging GenAI’s virtual
coaches, the programme offers a cutting-edge learning
experience. In FY 2023-24, the creation of niche
5.2 lakh
Training hours clocked by
academies offering blended learning, addresses role-
specific needs. Notable among these are the Academy
of Digital Transformation, Academy of ESG, Academy of
38,500
Quality Excellence, Academy of Safety, and the newly Employees during FY 2023-24
introduced Academy of GenAI.

Learning hours clocked under major categories of programmes* conducted by L&D

Training Person-days

7.89
Average Person Days
Technical Programmes
21.6% 22.4%
Project Management

7.5%
Functional Programmes
36,14,615
Leadership & Competency Number of Hours of Learning
14.3%
Development
3.0%
10.8% Continuing Education

41,919
20.0%
Digital Learning
Number of Unique Learners

*Does not cover safety training hours, which is reported in Principle 3 of BRSR.

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Enhancing Employee Experience

Several new initiatives were rolled out during FY 2023-24 and can be broadly bucketed into Enhanced Communication,
Addressing Fairness, Talent Management, Capability Building, Employee Engagement, and DEI.

Project NEEV Engagement Activities

The Company launched Project NEEV (Nurture, More than 90 podcasts were released through
Educate, Empower to Create Value), focussing L&T Radio. ‘Appreciation Week’ celebrations were
on goal setting and continuous feedback to conducted across six major locations, resulting in 8,000
instil a culture of high performance. Workshops appreciative messages on the Hi5 Wall Page.
on effective performance management and
Promotional campaigns held toward employee
feedback involving 500 leaders and managers in
wellness at various locations emphasising on Annual
12 leadership workshops and 8 Train-the-Trainers
Health Check-Up and Financial Tax Planning.
sessions were organised, achieving a 95% on-time
completion of goal setting for employees this year. Additionally, the Company introduced various
contests leveraging digital tools such as ArtBeats
Train-the-Trainer programmes like ‘People
and QuizWiz, witnessing overwhelming response
Leadership - Art and Science of Leading People in
across the Company.
Organisation’ for People Managers were rolled
out. 75 Trained Managers are now poised as
catalysts to disseminate insights and techniques
across the ICs.
The ‘Let’s Talk’ e-Campaign was rolled out,
emphasising one-on-one conversation between
managers and team members. ‘Any Time
Conversation’ and ‘Continuous Feedback’ modules
have been introduced, and various sensitisation
programmes are being held at business level.

Talent Council
Recognising the importance of having a robust L&T’s Business Excellence Model (LTBEM) and
leadership pipeline, a Talent Council was formed, Human Resources Excellence Model (HREM)
initiating talent reviews for Tier-1 to Tier-4 employees.
A user-friendly Talent Review software module has Development of LTBEM draws inspiration and
been launched, enabling the Council members, guided adoption of the globally recognised framework,
by business heads, to discuss and plan actions. European Foundation for Quality Management
(EFQM), to suit the Company’s unique
organisational context. With 89 active certified
assessors, the objective is to strengthen the
Annual HR Awards (AHA)
management systems, practices, and capabilities
An initiative aimed to recognise practices/initiatives to enhance the competitiveness of businesses to
wherein HR adds maximum value to business and become world-class in their own sectors.
concentrates on various ways HR can continuously
The HREM model has been conceived out of a
raise the bar by improving processes and experiences.
need felt by Corporate HR to establish high-calibre
professional standards purely for HR function. The
HR Conclave model will hold tremendous significance in the
coming days as sustaining excellence in business
A two-day HR Conclave, based on the theme, ‘HR is positively correlated to excellence in managing
Transformation – Navigating the Future,’ was Human Resources. We have developed 71 active
organised, packed with insightful speaker sessions and HREM assessors as of March 31, 2024.
panel discussions by the industry stalwarts from the
business and HR fraternity.

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Diversity Equity and Inclusion (DEI)

Today, L&T has operations in over 50 countries, with employees of various nationalities, and 36 domiciles across states
and UTs within India. Fostering diversity and inclusion in the workplace remains a key priority for the organisation, with
a focus on hiring diverse talent and creating an equitable environment. Actions have been implemented across all four
pillars of the DEI Charter – Induct, Engage, Develop, and Enable.

Induct Develop Engage Enable

Improving the input Leadership Pipeline Stay, Say and Strive Supporting ecosystem

A focussed approach Creating a strong Fostering an inclusive Creating an ecosystem

to induct the diverse women talent pipeline culture and broadening of enabling policies
workforce at all levels for leadership roles perspectives and practices

Various campaigns around Pride month and Persons With Disabilities (PWD)
Differently abled
were carried out throughout the year to increase awareness of diverse
groups beyond gender. Guest speakers were invited to generate awareness
about LGBTQIA+, Neurodiversity, PWD, etc. A well-knit community of 36 DEI
Champions was built to drive DEI efforts across businesses. ‘DEI Academy’ was
45
Employees
launched on ATLVarsity, to increase awareness and sensitisation. More than 100

28
employees were certified as DEI Allies under this Academy.

Furthermore, this year, various initiatives have been launched to support

Workmen
working mothers and create an enabling work environment. Maternity leave
for adoption and surrogacy and three extra months of maternity leave for the
mother of twins have been introduced. Post-pregnancy, a woman can opt to
work from home or adopt a hybrid roster for up to six months. New facilities
for women employees in terms of flexibility, travel allowances, creche facilities,
495
Women underwent Leadership
and creche allowance have been introduced. Journey Programmes in
last 2.5 years, showcasing
The DEI Awards Ceremony was organised for the first time to recognise the
efforts of businesses to support and promote a diverse and inclusive work
culture. The introduction of the Allyship Awards provided a platform for
1,600+ women employees to recognise their Allies at work. 142 %
Rise in participation rates

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Commitment Towards Human Rights

L&T is committed to respecting, In FY 2023-24, internal due diligence This year, we have strengthened
protecting, and upholding the was conducted by the Company the mechanisms into more
human rights of the workforce and across the manufacturing plants structured and formal processes
across our value chain. The Code and offices to understand potential across the Company, especially for
of Conduct is a comprehensive human rights risks related to the contractual workforce. With
document guiding its employees to child labour, forced labour, sexual more than 3,50,000 workers, they
conduct businesses in conformity harassment, wages, discrimination, are critical as well as vulnerable
with professional standards of health and safety, working stakeholders for the business. Over
personal integrity, honesty and conditions, etc. and practices to 500 Grievance Redressal Officers
ethical conduct, one of the core mitigate/avoid violations for the (GRO) have been appointed across
principles being ‘Respect for Human contractual workforce. This is project sites to ensure grievance
Rights’. The Company is committed based on various international registering, resolving, meeting
to put in place, strengthen and standards such as ILO, UNGC, and timelines, managing escalations,
improve systems and processes the law of the land. Additionally, closing cases, generating reports,
wherever necessary, undertake due the key manufacturing facilities and facilitating regular reviews and
diligence or conduct risk assessment, of the Company are certified by audits in a systematic way. Grievance
monitor, provide remedy and SA8000, globally recognised social may cover issues related to health
take corrective actions to ensure certification standard on human and and safety, working conditions,
protection of human rights. The labour rights. wages, living conditions, and so
Company adheres to the regulatory on. A toll-free number has been
requirements as applicable in the L&T is committed to ensuring a initiated for recording grievances of
country or countries of operation cordial work environment for the workers operational 24x7 over
and respects the international its workforce to foster trust and and above the oral and/or written
frameworks such as United collaboration. One of the good complaints which were already being
Nations Global Compact (UNGC), practices is to have a robust recorded. This provides a fair and
International Labour Organization Grievance Redressal Mechanism transparent process for resolving
(ILO) and any other global standard. in place to resolve grievances in a complaints and ensuring equal and
systematic, timely and fair manner. fair treatment.

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Commitment towards Health, Safety, and Well-Being

Health, safety, and well-being of the workforce is one The EHS Council monitors, measures and reviews EHS
of the key focus areas of the Company, which is not performance and compliance with procedures. For further
just limited to our employees but also the contractual details on health and safety performance, practices, and
workers. HR and medical teams are continuously management systems, please refer to BRSR Principle 3,
undertaking initiatives to promote health and wellness. i.e., Businesses should respect and promote the well-being
From fitness programmes and ergonomic assessments to of all employees, including those in their value chains.
mental health support services, the Company is dedicated
to fostering a workplace culture that prioritises holistic
well-being. At L&T, the Company believes that preventive
care is the key to maintaining optimal health. The
employees are encouraged to undertake health checkups
organised by the Company. There are frequent health
checkups and medical camps to ensure the physical well-
being of the workers.

The Company is committed to Mission Zero Harm and

working on various strategies to continuously enhance
the health and safety standards within the organisation
as well as that of contractors, workers, and suppliers
working on behalf of the Company at project sites or
premises. This includes using continuous sensitisation,
toolbox talks, providing protective gear, and special
training in the safe handling of equipment and material.
The Company adheres to international standards and
guidelines such as ISO 45001:2018.

Promoting Mental Health and Well-Being in the Workplace

Mental well-being has emerged as a crucial determinant Medical Health Services function at L&T looks after
at the workplace, directly impacting morale, productivity, preventive, occupational, curative, and rehabilitative
and other related physical ailments. In recent years, health needs of its employees and their family members.
mental health and well-being have become increasingly The aim is to contribute towards medical health and
recognised as important factors for overall employee welfare through various initiatives and activities. The
wellness and productivity in the workplace. The objective is to plan preventive measures and invest in
Company encourages its workforce to prioritise stress health and wellness programmes to promote a healthy
management techniques such as mindfulness, exercise, lifestyle for the employees and their families. L&T believes
and seeking support when needed. Counselling, that healthy employees constitute a healthy workforce
coaching, and sensitisation workshops are also being that adheres to WHO guidelines.
organised for employees to equip themselves to handle
challenging situations.

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Given below is a snapshot of the initiatives during the year.

1
Mental Health Awareness Sessions: Regular workshops and training sessions on mental health awareness, stress
management, and self-care techniques are conducted to educate employees on how to maintain good mental health
and well-being.

41 7,324
Webinars on Total Participants
Mental Health

2
In-house and External Counselling Services: Mental health counselling services, both in-house and external services, are
provided to the employees with confidential access to resources and support for personal and work-related challenges.

12,537 1,007 363 1,275

Total Registrations for Total Wellness Self assessments
External Services Counselling Cases Coaching by employees

3
Bereavement Counselling Services: These services are provided to the families of deceased employees. This includes
home visits, counselling, follow-up for the due settlement, guiding the family further for educational reimbursement
schemes for children, and vocational training support for spouses.

4
Support Group for Differently-abled children of employees: Continuous mental health support is provided to employees
with differently-abled children through financial reimbursement of treatment and counselling.

5
Group Maitree: The group has been created to support and contribute to the personal development of employees in
the work environment. It helps to spread awareness about mental health services.

World Mental Health Day is celebrated every

year on 10th October with the objective of raising
awareness of mental health and mobilising
efforts to support it. In October, various articles,
assessments, infographics, and podcasts were shared
with pan-India employees. The podcast included a
brief about counselling, myths and facts about the
process, confidentiality, the role of L&T, and existing
services. The effectiveness of these programmes has
resulted in increased awareness and understanding
of mental health among employees.

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 Intellectual
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INTELLECTUAL
CAPITAL

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The Company’s focus areas for Strategy Linkage1

innovation are related to reducing
material consumption, increasing the use SO-I SO-III SO-IV SO-V
of non-virgin and eco-friendly materials,
enhancing resource (manpower,
SE-1 SE-2 SE-5
machine) productivity, reducing
delivery timelines, strengthening
climate resilience of structures, and
improving product design/features. SDGs Impacted
These innovation efforts are driven by
R&D, engineering and design function,
competency cells, and execution teams
across the various businesses.

Key Highlights of FY 2023-24 Material Topics

Quality of Products and
` 3,905 Mn
Total R&D spend
Project Delivery

(cumulative over last 3 years) Talent Management – Attraction,

Retention, and Development

Data Security, Privacy,

321
R&D Engineers/Scientists
and Cyber Security

Brand
Management

` 1,27,018 Mn
Revenue from new and
Business
Ethics
emerging businesses

1
For details, refer to ‘Business Model and Strategy’ section.

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 Intellectual
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R&D Initiatives at L&T Construction Research and Testing Centre

L&T Construction Research and Testing Centre (LTCRTC) is a Department of Scientific and Industrial Research (DSIR)
recognised and National Accreditation Board for Testing and Calibration Laboratories (NABL) accredited facility.
It is the only such facility for the construction sector in India housed within a private company. It is authorised to
conduct quality tests on all types of materials used in the construction sector as well as undertake research on new
materials and mix compositions.

Special Cement Asphalt Mortar Mix Asphalt Mix with Steel Cement-Treated Base and Sub-Base
Slag Aggregates with Soil Aggregate Blend
Cement Asphalt Mortar (CAM) is
an interlayer injected in the spaces Utilisation of industrial by-products or Cement-treated base/subbase
between the track slab and the waste materials in road construction layers in a pavement (road)
concrete roadbed in ballastless is an emerging trend globally. This are traditionally designed with
tracks. It is particularly used for can significantly reduce the burden natural aggregates stabilised with
high-speed and semi-high-speed on natural resources as well as conventional stabilisers such as
rail networks. CAM is used as a improve waste utilisation. One such cement, lime, lime/fly ash blend, or
stress relief and damping material material is steel slag, which differs chemical stabilisers to produce a mix
in these rail systems and comprises from blast furnace slag. LTCRTC of requisite strength. Replacement of
cement matrix, asphalt emulsion, has also undertaken studies to natural aggregates with good quality
fine aggregates, and a variety of improve mix design using steel slag, natural soil could be an eco-friendly
admixtures. LTCRTC, in partnership and these have shown that dense alternative to the conventional
with M/S Nichireki from Japan, has bituminous macadam with up to method. Preliminary laboratory
developed a special CAM mix for 50% coarse steel slag aggregates trials at LTCRTC have shown that
use in track works in the Mumbai is more durable and less prone soil aggregate in the ratio of 30:70
Ahmedabad High-Speed Rail project. to fatigue, rutting, and moisture- with cement dosage of 6% and
The mix has been designed to meet related damages. The use of steel some special chemical additives can
stringent Japanese standards for slag aggregates can also reduce the produce mixes satisfying the strength
high-speed rail projects. cost of construction by 20-30%. requirements specified in the Indian
Roads Congress2. The ratio can be
increased to 70:30 with cement of
only 2.5% for sub-base mixes. This
specially designed mix has been used
in the construction of a trial stretch
of the Ghaziabad-Aligarh Expressway
in 2023, and performance has been
found to be satisfactory to date.

2
Indian Roads Congress is the Apex Body of Road Sector Engineers and Professionals set up in 1927 by the Government of India. It
provides a national forum for sharing of knowledge and experience dealing with construction and maintenance of roads, bridges,
tunnels and road transportation.

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Sustainable Soil Stabilising Material Recycled Aggregates Textile Reinforced Concrete

for Soft Soil
India is estimated to generate Reinforced concrete has a high carbon
Certain locations have soft soil and around 150 million tons of footprint due to the embodied
soil stabilisation is required to enable Construction and Demolition (C&D) carbon of the material used. Various
construction in such locations. waste annually, but only ~1% of materials are being experimented
Stabilising clayey soils helps improve it is recycled. There is a significant across the world. For e.g., fly ash
their engineering properties, e.g., opportunity to enhance the use is a common strategy to reduce
compressive strength and load- of C&D waste in construction. carbon footprint, substituting the
bearing, and typically, the materials LTCRTC has conducted extensive traditional material used in concrete
with non-virgin or industrial by-
used are lime and Portland cement. studies on aggregates generated by
products. Textile Reinforced Concrete
LTCRTC has experimented with the processing C&D waste in different
(TRC) uses technical textiles in place
use of waste materials that could grades of concrete and found them
of steel for reinforcement, which
replace conventional stabilising to be effective in comparison to
reduces the embodied carbon (of
materials. Also, it formulated a mix conventional concrete in terms of
reinforcement material) from 2.55
of lime with Ground Granulated mechanical, durability, and shrinkage tCo2e/kg to ~2.2 kgCO2e/kg. This
Blast furnace Slag (GGBS). The properties. LTCRTC has also carried facilitates the fabrication of thin
sustainable stabilising mix was out technical evaluation of recycled structural elements with improved
found to reduce the plasticity of the material for use in processes such as strength and durability. LTCRTC has
clay, reduce swelling pressure, and backfill, mechanical modification, developed an optimised fine-grained
eventually increase the strength. and partial replacement of Granular concrete mix incorporating glass fibre
The mix designed reduces lime Sub Base (GSB) layer. Testing has also textile as reinforcement and has made
requirement from 10% to 2% to be been done on a concrete mix to be a prototype of a precast structure
used for stabilising mix and has been used for the roof screed and grade with TRC enclosure panels. TRC will
proposed to be considered for future slab required for a building project. be useful in applications where
requirements at the site level. structural flexibility and corrosion
resistance are required, such as
sacrificial formwork for metro piers,
wall or enclosure panels, and foldable
portable structures. The tested TRC
mix design has been proposed for
implementation in a lift irrigation
project in Odisha.

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Digital Transformation of EPC Projects

Digitalisation remains a key thrust area for L&T to transform the way EPC Projects are delivered. L&T started with
sensorisation, digitisation, and integration initiatives and is now moving towards the deployment of AI, ML, and other
high-end technologies to improve project delivery, reduce cost, and achieve a high level of quality and safety.

Bidding and Engineering and Material Safety

Pre-Construction Design Management
AI For Contracts Desk Design Suite PWCC HSE-Mitr
NLP-based module for key Automated tool to Digital application for real- Behavioural Safety
clause identification, risk generate uniform time tracking of precast tracking application for
quantification, document design documents with segment casting and workforce to report safe/
and datasheet extraction high precision erection unsafe behaviour and
unsafe conditions
360˚ Risk Perspective ProdoSpec Digital Weighbridges
Digitalised system to Online catalogue to select Weighbridges integrated AI Vision Analytics
capture risk perspectives the right product based with ERP with no manual AI-enabled platform to
from all departments on technical specifications intervention for data monitor the unsafe act
and parameters recording/process flow 24/7 by utilising CCTV
Dhruv video analytics
GPS-based app for Constructability MatNxT
simplified survey along Simulation Enhanced application for ViewEHS
with BOQ for the project VR-based constructability material tracking/common Mobile app to access
simulation aids in better material solution SOPs and forms
detailing and reviews for submission
by clients TAG and verification
QR code based system to
PROMPT track the structural steel HSE ProACT
Project monitoring from steel service centres Unified application
and progress tracker to the erection to capture and
application integrating report HSE KPI across
various team schedules ConPro different projects
and central MIS Application for tracking
the entire concrete supply VR-Based Safety
chain, including integration Induction/Training
of batching plants and VR-based immersive
transit mixers video for safety training
during induction or
refresher courses

New initiative started in FY 2023-24

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Procurement Project Management Quality

mCode ProWPack eALPSNxt TORQ

Unified Material The solution enables Application for Quality tool to raise NC
Codification System for construction-driven project construction management Observation, RFI inspection,
parametric comparisons, management by defining of Civil, Structural, Quality Audit, and
benchmarking, data construction areas into and Piping disciplines, Laboratory Management
mining, and analytics for manageable work packages managing engineering
various material categories inputs, detailed planning, Conquer - Quality
to drive procurement VR Immersive material allocation, quality Application for
cost optimisation Walkthrough inspection, and status comprehensive quality
VR-based tool for review of monitoring checks and customer and
NLP-based Logistics engineering 3D model for executive feedback
Analytics efficient constructability PRONTO
NLP-based module for and maintainability review A centralised digital system P-FAB
logistics, offering spending to support client invoicing Application for ensuring
trends and insights on KPIs Wrench and subcontractor billing quality compliance in every
to enable data-backed Centralised platform activities, enabling resource stage of pipe fabrication
decision-making with automated live optimisation and prompt
S-Curves and progress delivery of services Pre-Stress Insights
Post Order dashboards; enables Special application for
Management System document management Generative AI (GenAI)
monitoring quality
Collaborative supply chain and communication control in Projects
parameters in pre-stressing
platform for enhancing across all stakeholders GPT 4.0 deployed on of precast segment
the visibility and tracking knowledge management
of critical milestones from IPBS systems to enable
PO to delivery at the site Application to track, easy search and
manage, and monitor information retrieval
project invoicing based
on billing milestones Help Lighting
and schedules, providing AR-enabled remote
invoice generation based assistance application,
on defined criteria and including video
tracking plan, actual, and collaboration services that
forecast status on project enable experts to work
invoicing virtually side-by-side with
site personnel

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Digital Transformation of Manufacturing

The Company’s manufacturing facilities have also leveraged various digital technologies to create Industry
4.0-enabled units. Additionally, these initiatives have helped transform various processes involved in the
delivery of engineered-to-order products and achieve benchmark delivery performance and safety levels.

Engineering Equipment Productivity and Utilisation

RPA with AutoCAD Advanced Analytics IoT Stations Vertical Load out
Advanced analytics use Smart IoT stations for of Jackets
Automation of as-built
drawing generation cases like rolling feasibility various equipment in heavy Jackets for water depth
consisting of the latest and distortion prediction engineering business >14m and <34m are to
2D drawing, BoM, be loaded out vertically.
Drawing Generation One-Man Multiple Stations However, fabrication
weld details, and
from 3D Model One man operating will be done horizontally
drawing changes
Automatic generation multiple smart welding and upended, reducing
PLM CAD Integration of cable layouts (2D stations leveraging wireless fabrication time
drawings) from the 3D technology; developed as by 10-20%
Integration of PLM
model helps reduce part of the Autonomous
platform with native Digital Twin
manual effort in drawing Welding Project
CAD software to
generation by 60-70% Enables simulation of the
improve design and PDM entire process of platform
engineering efficiency
Navisworks to Excel Predictive Maintenance manufacturing; aids
and handle change
Automation of report module, which helps in conducting scenario
management better
generation from 3D model identify early failure, reduce analysis to select the
reviews in Navisworks spare consumption, and optimal production plan
AR for Ship Construction
improve Overall Equipment on the shop floor
AR-based solution Effectiveness (OEE)
for designing and
validation of ship IoT for Utilities
components digitally IoT implemented for
critical utilities like
IDMS water, fire, HVAC, and
Automation of delivering Electrical substations;
the appropriate drawing enables monitoring and
and documents to predictive maintenance
business partners, with IP
protection and revision Hybrid Welding
control, comprises RPA Improving welding
Bots meshed with ERP productivity through the
and PLM simultaneous use of arc
welding and laser welding

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Project Management Quality

Vendor Load Assignment Advanced Shipment Supplier QMS
Application for tracking Notice (ASN) The platform extends
the current load and the Enables suppliers features of internal QMS in
average cycle time taken to provide advance ERP over a secured internet-
for different vendors, information of their hosted system, ensures the
enables better planning dispatches to L&T supplier quality compliances
and vendor analysis along with supporting with internal QMS
documents, reduces
iRUDRA inspection time, and Automation of NDT
Solution to integrate facilitates faster material Methods
various independent allocation for project use Special applications
systems from design to developed for time of flight,
estimation, procurement, diffraction and phased array
fabrication, quality ultrasonic testing; reduces
assurance, enabling robust inspection cycle time for
analytics and offering non-destructive testing (NDT)
valuable insights methods by 50%

Capacity
Planning Analytics
Application for capacity
management and resource
levelling by analysing real-
time data; offers insights
on resource allocation and
loading and aids decision-
making for in-house
utilisation or outsourcing

IEMQS 4.0
Improves office efficiency
by automating repetitive
work and provides a
single source of truth for
project data

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Other Digital Initiatives

BIM Automation RebarPro

through Revit End-to-end tracking
Tools developed to of rebar from store to
automate design and site after fabrication,
BIM workflow enabling wastage
minimisation, saving
Draftwin time, and accelerating
Automated generation of process efficiency
drawings after completion
of design, primarily for ML for Legal Documents
columns and beams; ML-based solution to
helped reduce drafting extract important clauses
manhours by 60% and attributes from
legal documents
Bar Bending Schedule
(BBS) tool ICAM
Ensures Bar Bending Internal control audit
Schedule preparation module for scheduling
in a standard format; audits and recording audit
also enables optimised findings against technical
usage of offcut and commercial points
reinforcement bars, with
the support of Real Cut 1D GST Auto Reconciliation
Optimisation Software RPA bot, along with
ERP customisation,
Form Fit provides automated GST
A solution to track reconciliation capabilities
formwork panel and to avoid indirect
its repetitions taxation losses

ETAP Drishti
Digital application to track Enterprise Level
the history and degree Knowledge Management
of use of all enabling System to provide
structures across project situational guidance;
sites by using QR codes capture, store, and extract
required information
for efficient knowledge
transfer across the
organisation

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Value Engineering Initiatives

BIM Model-Based RC Wall with Computational Fluid Increasing Slab Casting

Site Execution Aluminium Formwork Dynamics (CFD) for Airflow Productivity
Direct planning and RC wall with high and Ventilation Design Concrete Distribution
progress monitoring repeatability formwork Computational Fluid System customisation to
on BIM models by site instead of typical Dynamics tools used to efficiently dispense concrete
execution teams brick wall, reduces analyse and optimise and minimise concreting
construction time as well design to reduce cooling time, Flying Bucket with
Toe-Pin for D-wall as improves work quality requirements in buildings fish-mouthed opening,
An economical method and Concrete Spreader
of diaphragm wall Long Span Beam with Modular Design of operation with three gates
construction in places with Special Design Mud Mat were adopted to reduce the
rock at shallow depths Tapered composite beam The modular design used casting time
with web openings for mud mat to enable
Large Diameter Piles and without stiffeners, fabrication at the yard SBR with TPAD Technology
Increasing pile diameter reduces fabrication and instead of onsite fabrication Temperature-Phased
to range 900-1800 mm, erection time reduced construction time Anaerobic Digestion
economical design for by 20-30% technology was adopted
high lateral loads and MEP Cradle for Sequential Batch
gives better quality Modular MEP design, Digital MTO Reactors in wastewater
control and productivity which is prefabricated Integrated Make-to-Order treatment plants, reducing
at the factory, reduces module to track across dependency on external
In-house Designing for construction time, eight stages covering automation vendors
Health Infrastructure and improves the engineering, PMT, SCM,
quality of work vendor, logistics, site PSC Slab for Underpass
Development of in-house
capability to handle receipt, and inspection A pre-stressed concrete slab
designing and planning GIS Analysis of was designed to eliminate
of health-related Stormwater Runoff Concrete Mass in-situ construction of Light
infrastructure e.g., medical Analysis of stormwater Slab for RRTS Vehicle Underpass single
colleges; benefits from runoff flow direction and In-house design of Design box structures, reducing
better productivity, runoff area using GIS to report and 3D Finite construction time and
schedule compression and examine flow patterns element model of the material requirements
quality control and catchment areas concrete mass slab for RRTS
project; enhances design Improvised VG40
Heat Reflective Coating Containerised Fire agility, reduces reliance on Grade Bitumen
on RC Walls Pump Room external consultants, and Collaborated with a
Cost and space effective Special design for optimises the cost specialist vendor to
solution to help reduce containerised fire pump formulate VG40 super
cooling requirements room and skid-mounted Auto Generation of Plan bitumen with high viscosity
of buildings fire pumps and Profile Sheets (4000-4800 poise), resulting
Generation of plan in increased resilience
and profile sheets from modulus, and hence,
AutoCAD drawings directly, increased load-bearing
reducing manhours ability of pavement
and errors

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Advanced Analysis Tools for the Valve Placement Design Change Flexible Moulds for Precast Drains
Design of Airside Structures Relocation of the pneumatic closure Specially designed mould to
Midas Civil Plane Load Application valve in slop pump discharge accommodate different sizes of drain
was used to analyse the load lines from the main deck to the elements by providing flexibility
dispersion and optimise the cellar deck on the access platform, to vary width and depth; helped
design of box and pipe culverts, reducing the cost of the design reduce the number of moulds
reducing manual effort and required for precast
improving design optimisation Precast Design of Substation
Hybrid Operating Room Design
Buildings and Electrical Rooms
Precast Pier Cap A hybrid operating room is an
Unique precast design and
advanced design that combines a
Offsite fabrication of pier cap construction of utility buildings for
traditional operating room with an
instead of in-situ casting; reduces high volume (~50,000 sq.mtr.) work,
image-guided interventional suite,
construction time and minimises enabled through an innovative
e.g., MRI, CT; enables advanced
traffic disruptions precast structural system and
surgical procedures to be done along
advanced joints with no shear
with tracking progress as required in
Redesigned Jacket walls for lateral load resisting
special cases, e.g., neuro-surgery
The jacket design was revised to a system; helped reduce construction
single member, thereby reducing time by 25%
multiple joints due to the small
section length in the earlier design

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Net Zero Buildings

The building sector in India continues to grow
at a rapid pace, and the energy requirement
has significantly contributed to the country’s
energy consumption as well as GHG emissions.
While green buildings have demonstrated
resource savings of up to 30-40% compared to
conventional ones, achieving the next level of
resource efficiency requires the construction
of Net Zero buildings. A new building on the
Company’s campus in Chennai has already been
registered as ‘IGBC Net Zero Energy Platinum’
with more buildings in progress for certification.

Solar-Powered Operator Cabins

Girder transporter is specialised equipment used
in the Mumbai Ahmedabad High Speed Rail
(MAHSR) project to transport girders from the
bridge gantry at the casting yard to the launching
location and powered by a diesel genset. The
equipment had two operator cabins without any
air conditioning in the cabins. Package C4 project
team modified the cabin to install solar power
ACs. This enabled operators to work in a healthy
environment and avoid emissions.

Attached Growth
Bio-Reactor Technology
Building sewage treatment capacity to meet the
demand of a thriving, urbanised country requires
significant investments. Typical sewage treatment
technologies have long processing times and large
land requirements. The Company’s Water and Effluent
Treatment business, in collaboration with Anna
University Chennai, has developed and patented
the ‘Attached Growth Bio-Reactor’. This design
requires less space, reduces sludge quantities, and
lowers power requirements for the sludge treatment.
Recently, the technology has been used to upgrade
100 KLD STP located in Thiagarajar Arts College,
Madurai and operating successfully till date.

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SOCIAL AND
RELATIONSHIP
CAPITAL

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At L&T, building long-term relationships Strategy Linkage1

based on mutual trust, respect and
benefits for business growth and SO-III SO-IV SE-2
profitability is a way of life. The Company
has created meaningful social and
relationship capital while pursuing
SDGs Impacted
progress, meeting customers’ needs and
demands, working with suppliers, and
driving inclusive growth for communities.

Key Highlights of FY 2023-24

1.6 Mn
CSR beneficiaries
Material Topics
9
Customer Satisfaction Score
Social Engagement Customer
and Impact Experience and
Satisfaction

Sustainable Diversity,
Supply Chain Inclusion & Equal
Opportunity

Human Rights and Business

Labour Conditions Ethics

Brand
Management

1
For details, refer to ‘Business Model and Strategy’ section.

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 Social and Relationship
Capital

The Company’s social and relationship capital comprises intangible assets from its network of stakeholders, such
as employees, customers, supply chain partners, and the community. This capital is nurtured through transparent
communication and ethical practices, and continuous engagement, collaboration, and innovation. Instilling
sustainability and resilience in the value chain is one of the core elements to meet the expectations of the stakeholders.
The Company strives to impact the larger community across the country through its CSR interventions. The Company
believes in engaging with the customers and clients in a fair, transparent, and ethical manner while meeting their
diverse and changing needs and expectations. The Company is handholding and sensitising its supply chain partners to
build a sustainable and resilient supply chain.

Building India’s Social Infrastructure

L&T’s commitment to social responsibility is demonstrated implementation is through partnerships with NGOs,
through its CSR programme, focussing on inclusive government agencies, and through the Company’s
growth in areas like water, sanitation, health, education, own onsite teams. As a responsible corporate citizen,
and skill development. Working under the guidance the Company contributes towards inclusive growth by
of the CSR & Sustainability Committee, the project empowering communities and accelerating development.

Beneficiaries across Thrust Areas

4,98,303 3,51,870 7,50,168 44,347

Water and Sanitation Education Health Skill Building

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Drivers of CSR Interventions

Corporate CSR Team CSR Coordinator and Teams at L&T Health Centres
Campuses, Area Offices, and Sites
The Corporate CSR Team Trained medical professionals
is dedicated to maximising L&T’s CSR teams at campuses, at L&T’s multi-specialty health
social impact by developing, area offices, and sites conduct centres serve underprivileged
implementing, and overseeing assessments, identify local communities, offering accessible
CSR programmes aligned with projects and NGO partners, and and affordable healthcare. By
Board-approved guidelines and implement and monitor CSR addressing health disparities,
frameworks, collaborating with initiatives. This localised support L&T enhances the well-being of
NGOs as necessary. ensures that L&T achieves its CSR those in need.
goals and effectively addresses
community-specific needs.

Prayas Trust Volunteers L&T Public Charitable Trust (LTPCT)

Comprises female spouses L&T’s employee volunteering A non-profit entity in L&T
of employees, and female programme, L&T-eering, engages ecosystem that implements CSR
employees. The main objective employees in community activities, especially in health,
is to serve underprivileged development activities. aligned with the Company’s CSR
communities around L&T facilities. framework.

Integrated Community Development Programme

Integrated Community Development Programme (ICDP) targets water scarce regions in selected stressed areas
through structured approaches. This includes need assessment, community mobilisation, infrastructure construction,
sanitation, and sustainable agriculture promotion. It empowers residents to responsibly use resources, ensuring
continuity, sustainability, and at the end of the project, proper handover of assets to community institutions to ensure
project sustainability. The project was launched in 2014-15 in Rajasthan, Maharashtra and Tamil Nadu in 5 locations.
It benefitted 10,737 households and treated over 15,465 hectares of land. The expansion in 2022-23 reached 12,545
additional households and treated over 20,746 hectares area. In 2023-24, 3,405 households were added and over 6,880
hectares area was treated. Since inception, this initiative has reached out to 26,687 households and treated over 43,091
hectares of land.

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 Social and Relationship
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Infrastructure for Water Conservation

Water and sanitation interventions under ICDP were planned by identifying priorities – drinking water, sanitation
and agriculture – and making it a community-led process. Structures like check dams, anicuts, contour trenches,
farm bunds, and farm ponds were constructed for soil and water conservation and rainwater harvesting, with
community participation.

Revitalising Nagzari: L&T’s ICDP turns the tide on drought

From 2019 to 2024, the ICDP

implemented soil and water
conservation measures, resulting
in a 7.3-meter increase in average
well water level by 2023-24.
This encouraged farmers to
explore horticulture and improve
agricultural prospects.

Water and Soil conservation

Flowing Forward: Clearing Noyyal River Waterways at Pachapalayam
In Coimbatore’s Pachapalayam cluster, part of the Noyyal River catchment area, the total river streamline length is
around 27 km. Initially desilted but obstructed by wild vegetation, channels underwent step-by-step excavation as
part of the ICDP’s water and soil conservation efforts.

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Additionally, water harvesting trenches, absorption pits, and check dams were constructed in Pachapalayam,
Bogampatti, and Panapatti villages to facilitate groundwater recharge and collect excess run-off, aiming to harvest
62,390 cubic metres of water in the project area.

Water harvesting structures to enhance soil moisture content

Climate-Resilient Agricultural Practices

Promoting climate-resilient agricultural practices is a focus area of ICDP, aiming to boost crop production sustainably.
This includes diversifying crops, adopting dryland horticulture, and using efficient irrigation methods like drip
and sprinkler systems.

Drip of Success: From Drought to Harvest

In Devgaon, Mr. Sarjerao, 49, and his family rely on
agriculture, cultivating cotton, sorghum, and millet
on 2 acres of land. Facing water scarcity, Sarjerao
adopted drip irrigation through ICDP, thus boosting
cotton yields to 7-8 quintals per acre. Encouraged
by this success, 54 farmers in Nagzari and Devgaon
adopted drip and sprinkler irrigation.

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 Social and Relationship
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Crop Demonstration
In the project area, 338 crop demonstration plots were
established under the ‘Seeing is Believing’ principle,
focussing on Kharif and Rabi crops like soybean, wheat,
and gram, which led 694 farmers to adopt systematic
crop intensification practices, supported by demo kits
for integrated pest, fertiliser, and disease management.

Harvesting Change: Mr. Devendiran’s Sustainable

Farming Shift at Pachapalayam, Coimbatore
In Ponnakani hamlet, Mr. Devendiran encountered
water scarcity in Bogampatti village, Pachapalayam
ICDP location, due to excessive extraction of
groundwater and failed monsoons with only one
functional borewell out of three. Under one of the
project interventions, his plot was selected for a
crop demonstration. He adopted a new package
of practices consisting of planting tomato saplings,
biofertilisers, nutrients, and pest traps.

The promotion of organic formulation, fostering beneficial microorganisms for enhanced crop growth, has led to 950
farmers from Devgaon and Nagzari preparing and utilising organic formulations.

Multi-Layer Farming
123 farmers in Devgaon and Nagzari are set to enjoy year-round fresh produce from their fields, conserving soil and
optimising environmental factors, thereby leveraging multi-layer farming benefits. Among them, 30 are demo projects,
and additionally, 37 women from Nagzari and 26 women from Devgaon have independently developed multi-layer
farming setups.

Latabai’s Journey: From Drought to Perennial Harvest

Drought has been persistent since 2012 in
Chambharwadi village, Marathwada. Mrs. Latabai
Otade, a 40-year-old resident, was reliant on
growing cotton, tur dal, and vegetables using
harmful chemicals on her four-acre plot. She shifted
gradually from chemical-intensive farming to multi-
layered orchard farming through the Integrated
Community Development Programme (ICDP). Latabai
adopted organic methods, cultivating a variety of
vegetables and trees without chemical inputs. This
shift led to significant savings on market expenses
and yielded surplus produce, enhancing her income
within the village.

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Livestock Development
In the project area, cattle rearing is a significant agri-
allied activity, but low productivity in the dairy business
is often due to a shortage of quality feed and fodder.
Farmers rely on seasonal crops like maize, sorghum, and
millet during off-seasons, leading them to sell low-
producing cows at the start of summer to avoid losses.
Fodder demonstrations were introduced to address
this, providing nutrient-rich feed for better milk yield.
Fodder crop seeds were distributed to 54 farmers,
encouraging them to cultivate fodder on their land and
make cattle rearing more profitable.

Milking Success: Mr. Subbaiyan’s Fodder Revolution

and Cattle Transformation - From Pasture to Prosperity
Mr. Subbaiyan, an elderly farmer from Periyakuyili
hamlet, primarily earns from his three dairy cattle
and two calves, previously managing a modest
monthly income of `19,020. His reliance on dry
fodder limited his earnings, but participation in the
Fodder Demonstration project—utilising fodder seeds,
biofertiliser, cattle feed, and mineral lick—boosted
milk production and cattle health, leading to an
increase in his net monthly income to `22,000, while
reducing costs on feed.

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Women’s Empowerment: A cornerstone of

Community Development and Sustainability
In Alamgaon, Nagzari, a group of ten women
from a local ‘Farmer Group’ invested `10,000
each to initiate a transformative journey towards
empowerment. Previously engaged in low-profit
farming or as labourers, these women, with
project support, transitioned to organic farming.
They built a Farmer Producer Organisation (FPO)
shop including milk and soyabean collection,
thus boosting their income significantly. Their
FPO expanded to include over 350 members from
nine villages, assisting 30 farmers in purchasing
cows to increase milk production. Thanks to these
efforts, their annual income grew from `22 lakh
in 2022-23 to `40 lakh in 2023-24, with members
acknowledging the crucial role played by the project
in their success.

Sanitation
The Company implemented community-led total sanitation initiatives across Nagzari and Devgaon in
Maharashtra and Sevantri in Rajasthan in 2023-24, constructing 570 household toilets using volunteer labour and
forming monitoring committees to create and maintain open defecation-free villages.

Towards Dignity: Story of Shahubai

At 75, Mrs. Shahubai from Sadesavangi village
faced hardships from drought and health issues,
compounded by having no toilet. Through
L&T’s ICDP sanitation project, a toilet was
constructed, significantly improving her family’s
health and dignity by promoting regular usage
and highlighting the crucial need for proper
sanitation.

The villages in the ICDP locations have witnessed significant changes through various activities, including water
availability, sanitation, and sustainable agricultural and livestock-rearing practices.

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Depth of water from land surface (metre) Target

22
18
20

14

15
12
13

10

11
11
10
9
8

8
8
6
6

5
5

5
4
FY 2019-20

FY 2020-21

FY 2021-22

FY 2022-23

FY 2023-24

FY 2019-20

FY 2020-21

FY 2021-22

FY 2022-23

FY 2023-24

FY 2019-20

FY 2020-21

FY 2021-22

FY 2022-23

FY 2023-24
Baseline

Baseline

Baseline
SEWANTRI DEVGAON NAGZARI

Increase in irrigated area (hectare)

1,001
950
903

950
950
944
914

1,076
654
638

638
612
583

485
435

461
445
549

600 606
420
FY 2019-20

FY 2020-21

FY 2021-22

FY 2022-23

FY 2023-24

FY 2019-20

FY 2020-21

FY 2021-22

FY 2022-23

FY 2023-24

FY 2019-20

FY 2020-21

FY 2021-22

FY 2022-23

FY 2023-24
Baseline

Baseline

Baseline

SEWANTRI DEVGAON NAGZARI

Improving Quality Education and Health

Services in ICDP locations
This year, Water and Sanitation Interventions
have impacted Water sufficiency in the ICDP project areas and the resultant
increase in agricultural income led to increased aspirations

4,98,303 lives among the local population seeking a better future for their
children. Thus, L&T extended its support to work on other
social needs, such as health, education, and livelihoods in
the ICDP locations, which were initiated in 2019-20.

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Saajhi Shiksha
Saajhi Shiksha has been implemented in two Gram
Panchayats, Kookra and Lasadiya of Bhim block in
Rajsamand district in Rajasthan, where ICDP was
implemented between 2014 and 2019. After water
sufficiency and ‘Open Defecation Free Villages’
status were achieved, an education initiative ‘Saajhi
Shiksha’ was introduced in 2022 in these two
locations. Saajhi Shiksha focusses on the capacity
building of caregivers (parents and guardians) and
mother mentors to promote school readiness of
young children and ensure children aged 3-6 years
acquire foundation literacy and numeracy skills. The
strategies include providing early learning kits with
play items and learning materials to the parents and
training them regularly on how to use this material
with their children. Active mothers have been
identified and engaged as mentor mothers for the
use of Early Learning Material (ELM) and the revival
of defunct Monitoring and Support Committees for
monitoring of Anganwadi services.

The interventions resulted in 97% of parents engaging

children in various learning activities at home and
improvement in children’s overall performance in
numeracy, literacy, and language by 30%.

Community-led Early Education: Empowering Parents

for Children’s Success
Recognising the pivotal role of parents and
communities as the primary support system for
children, the intervention embarked on an endeavour
to involve parents actively in early education. The
project team understood that parents had busy
lives, so they planned their meetings at times and
locations convenient to the parents, sometimes even
at construction sites. During these sessions, parents
learned how to use early education materials to teach
their children at home.
Notably, during one of the sessions, all participating
women pledged to not only bring children from
their community to the Anganwadi centre but also
ensure their safe return home daily. The dedication
of some parents was commendable who took up the
responsibility for mobilising other parents and co-
organising the training sessions.

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Integrated Development by Enhancing Nutrition for Mothers and Children at Sewantri

L&T has been working since 2015 in 10 villages of Kumbhalgarh block through an Integrated Community Development
Programme (ICDP) in restoring the land and water resource regime, enhancing farm-based livelihoods and introducing
Water Sanitation and Hygiene (WASH) facilities and practices along with community institution development. Once the
water interventions and provision of sanitation facilities were sufficient and sustainable, the focus shifted to enhancing
the nutrition of mothers and children at Sewantri, a block consecutive to Kumbhalgarh.

A Healthy Beginning
At the onset of the programme, women, including
pregnant and lactating mothers, their families and
communities were sensitised on the importance
of maternal health, early childcare, and nutrition.
‘Balsakhi’, a cadre of trained women health
workers, reached out to 806 women through
mothers’ meetings and home visits, including
pregnant, lactating women and mothers of young
children. There was a significant emphasis on
regular dialogue with stakeholders such as family
members, supervisors from the health department,
staff from Anganwadi centres, and representatives
of Panchayati Raj Institution (PRI) to ensure quality
service delivery, fostering a sense of ownership
and collective responsibility towards improving
healthcare services in the communities. This
resulted in appropriate care at home, a balanced
diet, and ultimately, safe childbirth.

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Coverage under ICDP in Three Locations - Devgaon, Nagzari, and Sevantri

Households covered under ICDP 5,345

Area of Land under the Project Area (hectares) 10,074
People Covered 25,208
FY 2022-23 FY 2023-24
Water Availability
Water Harvested (lakh litres) 19,887 51,727
Increase in Water Table Level (metres - average) 9.24 12.88
Percentage of Households with Drinking Water 95% 98%
Agriculture
No. of Crop Demonstrations 95 338
Additional Area protected from Direct Run-Off (hectares) 2,620 2,620
Increase in the Area under Cultivation/Irrigation 60% 56%
Fallow Land converted to Agricultural Land (hectares) 202 218
Area under Horticulture (hectares) 619 521^
Health and Nutrition
No. of Kitchen Gardens 240 180
No. of Children in Balwadis supported 237* 195*^
Livestock Livelihood
No. of Veterinary Camps 40 14*^
Pastureland Area under Protection (hectares) 24* 22*
Institution Building
Village Development Committees 31 66
No. of Active SHGs 235 237
SHG Savings Fund created for Inter-Loaning (lakh) `125 `126
No. of Farmer Groups formed 26# 8#^
Capacity Building
No. of Farmers attended Farm-Field Training 2,104 1,643

* In ICDP Sevantri Location

#
In ICDP Devgaon and Nagzari Location
^ Interventions till September 2023

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Education
The Company’s education initiatives are focussed on promoting social advancement and inclusive development in the
education system. This is achieved by providing infrastructure in under-resourced schools, establishing community
learning centres, enhancing teachers’ capacity, and promoting community monitoring systems. This year, L&T’s
Education interventions were implemented in 679 schools across India.

STEM (Science, Technology, Engineering, Mathematics) Education Project ‘Engineering Futures’, particularly aims to
reduce the urban-rural gap in education. It aims to introduce Science and Mathematics to underprivileged students in
Government and under-resourced schools, piquing their interest in STEM fields. This initiative is crucial for fostering a
more equitable distribution of educational opportunities and empowering students from marginalised backgrounds to
pursue careers in science, technology, engineering, and mathematics.

STEM ‘Engineering Futures’ Digitalisation of Schools Pre-School Interventions

Programme
Number of Schools/Centres Number of Schools/Centres

308 45
Number of Schools/Centres

243 Students Benefitted Students Benefitted

1,02,638 1,573
Students Benefitted

44,189

Learning Enhancement and Life Community Learning Centres Strengthening School

Skills in Schools Infrastructure
Number of Schools/Centres

80
Number of Schools/Centres Number of Schools/Centres

191 Students Benefitted

372
14,785
Students Benefitted Students Benefitted

35,879 1,35,703

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Pre-School Programme
L&T’s pre-school programme communities to be Balwadi teachers
in Mumbai’s underprivileged with the requisite knowledge, skill,
communities aims to create and attitude to function effectively.
a nurturing environment for
children’s holistic development. The intervention includes training
Through 10-month interventions for teachers, ongoing assessments
in 64 community centres known of learning levels, and personalised
as ‘Balwadis’, catering to 1,426 home visits, resulting in improved
children, the initiative focusses attendance and increased parental
on preparing children for primary engagement while ensuring
school enrolment. The programme joyful learning in a safe and
emphasises bolstering the emotional, conducive environment. This has
cognitive, language, and gross motor resulted in a remarkable 42%
skills of the children. The programme average enhancement in children’s
also empowers women from the cognitive, emotional, language, and
motor abilities.

Month-wise Average Score

60%

55%
57%
56%
50% 53%
51%
45% 40%
46%
40%

40%
35%

30%
Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24

The graph shows consistent growth in the month-wise average classroom learning score for children in 25
Community Balwadis at Powai in Mumbai, Maharashtra.

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Learning Enhancement through the School

Partnership Programme
According to the Annual Status of Education Report The programme emphasised shifting teachers’ focus
(ASER) 2023 and the National Achievement Survey 2017, from a teacher-led to a learner-led process to ensure
there is a considerable gap in the learning levels of qualitative teaching deliverables. The programme
students across different states and subjects, especially included the provision of interactional teaching and
in reading and numeracy skills. Addressing the issues of learning. It reached out to 1755 children during the
quality of education, teacher training, curriculum reforms, year. The programme also introduced the Reading
and infrastructure development is essential for improving Promotion Programme and the Home Lending Initiative,
learning outcomes and ensuring that all children have which has helped to improve the linguistic skills of
access to quality education. children. The mobile library further covered 654 children
from grades 1-10.
L&T started a School Partnership programme in five
schools in Powai, Mumbai, in FY 2023-24, with the aim Endline assessment conducted in March 2024 showed
of developing foundational literacy and numeracy skills significant improvement in children’s learning levels, as
of the children attending Municipal Primary schools. shown in the graph:

Children’s Learning Levels

90%

78%

77%
80%

70%

60%
49%
Percentage of Children

50% 49%
40%

30%
11%

20% 11%

10%

0%
Identifying Reading Basic
Alphabets Sentences Arithmetic
Functions

Baseline Endline

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Community Learning Centres

L&T’s Community Learning Centres provide remedial
learning support to primary school children (7 to 12
years) to reduce the gap between their current level
of learning and grade-level learning expectations in
Language and Mathematics. The Centres are run in
government schools or public places/parks outside of
school hours in partnership with the local Municipal
Corporations. Students at lower levels of learning than
their grade level are identified through a baseline
assessment and enrolled in small batches of 5-15 at
the remedial centre. Trained teachers or volunteers
at the centre help children explore language skills
and understand basic arithmetic operations and
concepts in Mathematics. This focussed 2 hours of
daily interaction with children in a fear-free, positive
learning environment has helped the children build
their foundations of learning, and they are better able
to cope with grade-level learning in their classrooms.

L&T runs 41 Community Learning Centres in Mumbai

and 10 Centres in Chennai, reaching out to 2,305
children in Mumbai and 728 children in Chennai.

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STEM Education Initiative ‘Engineering Futures’

STEM (Science, Technology, The project reaches out to 243 Mathematics teachers, and School
Engineering, Mathematics) Government schools, tapping the Management Committee (SMC)
Education Project was initiated in potential of 44,189 young minds members, apart from students
63 government schools in 2019 and in grades 6-8 to enable them to of grades 6-8 who receive
is currently implemented around learn Science and Mathematics learning inputs.
seven L&T campuses with the in a practical way. Whereas, 713
A recent endline assessment
objective of enhancing the quality government teachers trained in
showed encouraging results where
of STEM education by providing using techno pedagogy, digital
a considerable increase in students’
digital infrastructure, teachers media, and hands-on experiments
learning levels and understanding
training, hands-on models, and in regular Mathematics and
of concepts was observed, compared
activity-based learning pedagogy Science classes. 35% of students in
to the baseline. The graph shows
in Government schools. The intervention schools are making
a clear uptick in Science and
methodology is designed to increase STEM models on their own and
Mathematics scores for the students
the levels of fun and engagement in have created models of a room
who underwent the intervention
children in the classroom, creating heater, tubelight making, water
as a whole and specifically for the
an environment of curiosity and level indicator, integer fractional
students who were part of the
inquisitiveness towards scientific numbers, Math clock, DC circuit with
Super 30 Science clubs formed in
concepts. The project aims to light, buzz and bulb, and remote
their respective schools.
tap potential and scientific reading of face expressions. The
rigour among students in select key stakeholders of STEM Projects
Government schools in Gujarat and are State Education Departments,
Tamil Nadu. School Principals, Science and

Subject-wise average percentage by location

100%
74%

70%

80%
56%
50%

47%
44%
41%

60% 41%
35%

27%
22%

22%
40%

20%

0%
Super 30 Non-super 30 Super 30 Non-super 30
Average Science Score Average Mathematics Score

Chennai Gujarat Gujarat (L&T Energy-Hydrocarbon)

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First L&T National STEM Challenge - Celebrates Young Talent

L&T announced the National STEM Challenge held in Chennai, Coimbatore, Hazira, Vadodara, Talegaon,
February 2024 with the objective of funnelling STEM and Mumbai made it to the L&T National STEM Challenge.
talent in L&T-supported STEM projects by showcasing
students’ innovative ideas and creating opportunities The three winning schools received reward money for
to connect children to higher-level STEM learning. The upgrading their science labs. Additionally, all three
L&T National STEM Challenge unfolded through three winning teams received a DIY Robotics Kit for further
exciting levels, engaging students at different stages of exposure to STEM and an opportunity to visit L&T’s tech
the competition conducted in six cities across India to projects and interact with the leadership team.
promote STEM among school children. The challenge
marked the high point of fostering STEM education The top three winning ideas consisted of an ‘Agricultural
through L&T’s ‘Engineering Futures’ initiative. It Tricycle’ which covers the plantation cycle - ploughing,
showcased the incredible talent and innovativeness of sowing and watering. A ‘Modern Waste Segregation
young minds from across India. System’ - an app-based solution developed by the
students through Scratch Coding for segregating dry
Approximately 6,000 students of grades 6-8 and wet waste, also an ‘Alternative Magic Road’ where
participated in the intra and inter-school level the students developed a model to use alternate energy
competitions, out of which 24 teams (50 children) from for streetlights and providing alarm system to prevent
accidents at hairpin bends.

1st Prize winner Mr. Joshwa A. and Mr. Sivakarthikeyan N. with their science teacher Mrs. Thenmughil
Ramakrishnan from Government High School Gerugambakkam, Chennai

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Enhancing Infrastructure at Schools

L&T builds Government schools, provides furniture, sets up and equips laboratories and libraries, digitises the
classrooms, refurbishes classrooms and playgrounds, repairs buildings, and builds compound walls, toilet blocks and
drinking water stations in resource-poor public schools to ensure a conducive learning environment. Supplies like
uniforms, textbooks, notebooks, and sports kits are provided to underprivileged students in Government and unaided
low-income schools in rural and tribal villages.

HEALTH
L&T’s CSR initiative in health focusses on improving community health by delivering preventive, curative, and
promotive healthcare services to the underprivileged. Operating through Community Health Centres (CHCs) and
Mobile Health Units (MHUs) in urban and rural areas of Gujarat, Maharashtra, and Tamil Nadu, L&T reaches out to
marginalised population, enhancing access, infrastructure, and quality of care. Primary healthcare interventions
include three verticals: Community Health Centres, Specialty services (operative care, dialysis and Antiretroviral
Therapy [ART]), and Outreach Programmes.

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à Community Health Centres provide access to

maternal, child, and family welfare, pediatric and
general healthcare, and Dialysis & Antiretroviral
Therapy (ART)
à Mobile Health Units (MHUs) and health camps
for school children, women, and the elderly from
underprivileged communities, the aim of which
is to provide easy and better access to people in
remote villages
à Health promotional activities are carried out in
and around CHCs, communities, and institutions
that are far from CHC through medical camps or
health education and awareness talks for vulnerable
populations such as children, adolescents, differently
abled children, pregnant women, parents, and
senior citizens or specific cohorts with similar needs.
Health awareness for adolescents, blood donation
camps, and care and counselling for differently abled
children are also provided at some of the centres

L&T has also collaborated with government schemes

such as the Pradhan Mantri Jan Arogya Yojana and
Jan Aushadhi Yojana, which provide monetary aid
in the form of insurance and subsidised costs on
medicines that significantly impact out-of-pocket
expenses. The ART Centre at Koldongri, Andheri,
Mumbai has collaborated with the Mumbai District
AIDS Control Society (MDACS), National AIDS
Control Organisation (NACO), and Revised National
TB Control Programme (RNTCP) under the Ministry
of Health and Family Welfare, Govt. of India,
supplementing the government’s efforts to control
the spread of communicable diseases such as HIV/
AIDS and TB.

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Cancer Care Services

L&T focusses on promoting preventive education and
early diagnosis of cancer by implementing cancer-
related interventions that target both men and women.
The primary goal is to raise awareness that cancer is a
treatable disease and to encourage people to undergo
regular screening for early detection. This year, 60
specialised check-up camps for cancer were conducted
in Mumbai, Thane, and Palghar. 3,378 individuals,
comprising 1,128 men and 2,250 women, participated
in the camps.

L&T supports a shelter programme that provides

temporary residential facilities for caregivers and
children from across India undergoing cancer treatment
in Mumbai. 121 children and 244 caregivers were
provided shelter facilities, and 496 counselling and
motivational sessions were conducted with children
during the year.

7,50,168
Individuals were provided better access to
affordable health care and preventive and
promotive information

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From Adversity to Adherence: A

Teen’s Journey with TB and HIV
Arun (name changed), a 15-year-
old boy, relocated to Mumbai
from Uttar Pradesh with his
family following his mother’s
untimely passing. He was
diagnosed with Tuberculosis (TB)
and HIV, transmitted during his
birth from his mother. Despite
initial reluctance, compounded
by family misinformation about
HIV status, the boy eventually
embraced treatment, thanks
to the dedicated efforts of
community health workers and
counsellors at the ART Centre.
Through persistent education
and support, he now adheres
to his Antiretroviral Therapy
(ART), underscoring the role
of compassionate healthcare
in overcoming adversity and
promoting well-being for
people living with HIV.

Vision Restored: Angammal’s Journey from Darkness to Light

Mrs. Angammal, a 64-year-old woman, residing in Malumichampatti
village, Coimbatore, is under immense financial strain. During one of
her visits to Mobile Health Unit (MHU) camps for routine check-ups,
Angammal expressed concerns about her deteriorating vision to the
MHU doctor. Recognising the severity of her condition, she was referred
to the Vision Centre at L&T Health Centre, where she was diagnosed
with cataracts in both eyes and followed by free cataract surgery.
With her sight regained, Angammal now leads a fulfilling life, actively
contributing to her family’s well-being. Her story stands as a testament
to the transformative impact of accessible healthcare, providing hope
and opportunity to those in need.

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Skill Development
L&T’s CSR initiatives have long emphasised skill Nine CSTIs operational at:
development to foster inclusive growth. The Company Kancheepuram, Tamil Nadu; Panvel, Maharashtra;
provides vocational training and skill-building activities Pilkhuwa, Delhi; Jadcherla, Telangana; Cuttack, Odisha;
to equip unemployed youths with employable skills. Attibelle, Karnataka; Chacharwadi, Gujarat; Hyderabad,
Through its Construction Skills Training Institutes Telangana; and Serampore, West Bengal.
(CSTIs) and Skills Hubs located across India, L&T offers
free residential training in high-demand trades in the Two new Skills Hubs added at Siddipet in Telangana and
construction industry, such as formwork, carpentry, Mayurbhanj in Odisha.
masonry, and plumbing. With an emphasis on

10,974
technology and innovation, new technology-based skill-
training courses are introduced in solar PV technician
skills, OFC, and CCTV installation and maintenance. Youth completed various courses at these CSTIs
Digital training, digital study material, micro-learning
modules on mobile apps, augmented reality/virtual
reality training, safety training, quality standards
training, and soft skills training are all essential
components of the skill-training offerings. Additionally,
all courses undergo periodic online assessments.

State-of-the-Art Skill Training

Hub in Odisha
Marking the beginning of a new chapter in L&T’s CSR
Skilling initiatives, a state-of-the-art Skill Training Hub
was inaugurated by the Honourable President of India,
Smt. Droupadi Murmu, at her hometown Pahadpur,
Mayurbhanj in Odisha, in November 2023.

The objective of the Skills Hub is to equip the underprivileged

youth in the region with new-age construction skills like
use of AR/VR for safety, simulators (haptic technology) and
impart training on life skills and personality development,
thus empowering them to become self-reliant, as well as
exposing them to a canvas of opportunities far beyond
their immediate surroundings.
This facility, built by L&T across a land parcel of five
acres, is equipped with contemporary infrastructure,
featuring an administrative-cum-institute building, a
multipurpose hall, an e-learning hall, a digital training
room (equipped with AR/VR technology to enhance the
learning experience), separate hostels for boys and girls
(each accommodating 120 individuals), dining facilities,
practice yards for various trades, and a dedicated
workshop for learning pipe welding. The facility has a
capacity to train 800-1000 people annually.

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Powering Up: Abhishek Kumar Ojha’s Rise from

Unemployment to Supervision
Mr. Abhishek Kumar Ojha hails from Saran, Bihar.
His family’s primary source of income was from
farming, earning around `1.5 lakh annually. Before
his training, Abhishek was struggling to find stable
work in his hometown. He learned about CSTI
Pilkhuwa from his friend, who had successfully
completed training there and was earning well.
Motivated by his friend’s success, Abhishek enrolled
in the Electrician Training Programme at CSTI
Pilkhuwa and completed his two-month training.
Through CSTI’s placement assistance, he secured
a regular job at a construction site at Saharanpur,
and soon, he was promoted to Supervisor in the
Execution department. Currently, he earns a fixed
salary of `16,625, a significant improvement from
his previous unemployment status. Abhishek
believes that CSTI’s comprehensive training and
support have transformed his life and opened doors
to a brighter future.

From Farm to Fortune: Durgabati Das’ Electric Journey

Ms. Durgabati Das, hailing from a modest family background with
her father working as a farmer and her mother as a homemaker, had
financial constraints that led her to discontinue formal education.
However, her determination led her to pursue ITI in Electrical Trade
at Government ITI, Balasore. Seeking better opportunities, she
relocated to Vizag and joined L&T Multi Skill Training Centre (MSTC).
The training proved to be highly educative and practical, providing
a conducive learning environment. Durgabati acquired not only
technical skills but also gained confidence through soft skill training,
essential for facing life’s challenges.
During the four-month training, the stipend proved invaluable in
sustaining her stay in Vizag. It was this support that enabled her to
continue the training, especially considering her relocation from
another state. After completing the training, Durgabati secured a job
at Hyderabad, with an annual salary of `1.80 lakh. Her perseverance
and determination, clubbed with access to quality training and support
from programmes like MSTC, helped her succeed. MSTC thus continues
to transform the lives of many aspiring individuals, enabling them to
support themselves and their families.

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Linking CSR Interventions with Government Schemes and Programmes:

Swachh Bharat Abhiyan: National Health Mission:

à 4,216 household toilets constructed since 2017- à National AIDS Control Programme (NACP), L&T ART
18 using local skills and materials centre at Andheri
à 877 school toilets constructed since 2015-16 à National TB Control Programme (RNTCP) at L&T TB
à 37,914 children provided WASH awareness Centre at Andheri
since 2015-16 à National Family Planning Programme:
à Community-based monitoring committees Contraceptive services made available at L&T
ensured that these villages became open- Health Centres
defecation-free à Integrated Child Development Scheme:
Improving the quality of services at Anganwadi and
Swajal Yojana under Rural Development Ministry:
capacity building of Anganwadi workers
Watershed development programme under ICDP
à Mother and Child Health Programme:
National Rural Livelihood Mission (NRLM): ANC PNC care and immunisation services provided
SHG programme under ICDP at the health centres are linked to this programme
Pradhan Mantri Krishi Sinchayee Yojana: à Ayushman Bharat Yojana:
Drip irrigation in ICDP Linking patients visiting L&T health centres
Mahatma Gandhi National Rural Employment to this scheme
Guarantee Act (MGNREGA): à Pradhan Mantri Jan Arogya Yojana:
Farm bunding activity in ICDP Linking patients availing dialysis services at L&T
centre to this scheme
à Pradhan Mantri Bhartiya Janaushadhi Pariyojana:
National Skill Development Mission: Linking patients visiting L&T health centres to
this scheme
à L&T CSTI and Skill Trainers Academy (STA) at Madh
à Mahatma Jyotiba Phule Jan Arogya Yojana in
à Sarva Shiksha Abhiyan (SSA) – Community pre- Maharashtra:
school programmes and community learning centres Linking patients visiting L&T health centres with
preventing dropouts and ensuring enrolment this scheme
à STEM Initiative of National Science and Technology à Widow Pension Yojana:
Communication Council and the Department Linking HIV impacted widows at ART Centre
of Science and Technology, Government of
India – L&T’s STEM Education Programme –
à Adhar Poshan Yojana:
Provide nutritional support to HIV-affected patients
‘Engineering Futures’
at the ART centre

L&T-eering: Employee Volunteering Initiative

L&T prides itself on a strong culture of employee volunteering, encouraging its workforce to actively engage in
meaningful social causes. Our employees contribute their time, skills, and resources to various community development
projects, embodying our commitment to social responsibility. During FY 2023-24, 7,188 L&T volunteers gave their time
towards organising creativity camps, STEM-based workshops, educational excursions, and supporting disadvantaged
groups through craft and NGO melas, participating in Daan Utsav. Many of our programmes involve mentoring
and teaching underprivileged children, aiming to bridge educational gaps and empower the next generation with
knowledge and skills. Our healthcare initiatives see employees participating in medical camps, blood donation drives,
and health awareness campaigns, contributing to the well-being of local communities. Environmental sustainability
is another key focus, with employees participating in tree plantation drives, clean-up campaigns, and promoting
renewable energy usage.

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RELATIONSHIP CAPITAL
The Company has an unwavering focus on nurturing its relationships with clients, customers, supply
chain partners, investors, and shareholders for sustainable growth. The business model and strategy
have further cultivated long-term relationships with its clients, supply chain partners, and skilled
workforce, resulting in market share growth and enhanced brand value, alongside transforming the
sector through a proven track record. Brand value is about trust, reputation, value, and credibility for
the Company. It has stood the test of time. This has been facilitated by investing in and nurturing one
of the most crucial and intangible assets, viz., the Social and Relationship Capital of the Company.

Key External Stakeholders Details of Engagement

Government (as clients, regulators, The stakeholders provide insights that help the
policymakers), private sector clients/customers, Company to review and progressively refine the
supply chain partners, and shareholders. The strategies to create long-term value for all. The
basis of identification of these stakeholders ‘Stakeholder Engagement’ section also talks
has been elucidated in the ‘Stakeholder about the mode of engagement, frequency, and
Engagement’ chapter. topics covered in these engagements.

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Overview Discussion and Analysis Report Reports Statements

Stakeholders and ESG Grievance Redressal Mechanism

With a heightened focus and demand from the There is a wide range of stakeholders, each with
stakeholders on ESG, the roles, relationships, their own needs, expectations, and requirements.
and perspectives of the stakeholders have also The grievance redressal mechanism provides
evolved. The Company is also engaging with a platform for these stakeholders to voice
its stakeholders on ESG matters, the details of their concerns. An efficient grievance redressal
which are elaborated in Principle 4 of the BRSR mechanism is imperative to effective stakeholder
section of this Report. management. The mechanism related to
investors, shareholders, and supply chain partners
is explained in Section A of the BRSR section
of this Report. The mechanism for workers,
communities, and customers are explained in
Principles 3, 8, and 9, respectively, of the BRSR
section of this Report.

237
 Financial
Capital

FINANCIAL
CAPITAL

238 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Financial capital provides a strong Strategy Linkage1

foundation that facilitates risk mitigation
in unavoidable/unforeseen circumstances SO-I SO-II SO-III SO-IV SO-V
and macro-economic unpredictability.
With a record high Order Book, a strong
SE-1 SE-3
Balance Sheet, a well-diversified business
portfolio, and a proven track record of
successful execution, the Company is in a
position to navigate the current volatile SDGs Impacted
business landscape and maintain a healthy
equilibrium between risk and growth.
Further, the Company’s expansion into
various emerging sectors as well as growth
in the core business will contribute to the
attainment of Lakshya 2026 goals and
Material Topics
generate value for all the stakeholders.
Business
Ethics

Climate
Key Highlights of FY 2023-24
Action

14 %
Order inflow growth
Data Security, Privacy
and Cyber Security

Social Engagement
and Impact
14 %
Revenue growth

50 %
Dividend Payout Ratio
(incl. special dividend)

1
For details, refer to ‘Business Model and Strategy’ section.

239
 Financial
Capital

L&T’s standalone financials reflect the performance of the Infrastructure Projects segment, the Energy Projects
segment (comprising Hydrocarbon, Power and Green Energy), the Hi-Tech Manufacturing segment (comprising Heavy
Engineering and Precision Engineering & Systems), and the ‘Others’ segment (includes Realty, Construction & Mining
Machinery, Rubber Processing Machinery, Smart World & Communication [reflects residual portion], E-commerce/Digital
platforms and Data Centers).

Key Highlights of FY 2023-24

The Company successfully The sale of the carved-out L&T concluded the sale
completed the first-ever buyback of business of the Smart World of its stake in L&T IDPL
3,12,50,000 equity shares at a price and Communication (SWC) on April 10, 2024, to an
of `3,200 per equity share through business unit of the Company infrastructure fund, managed
the tender route, with a total to L&T Technology Services by Edelweiss Alternative
cash outflow of ~ `12,280 crore Limited (LTTS) was concluded Asset Advisors Limited
(including tax on buyback on April 01, 2023
and expenses), resulting in
extinguishment of 2.2% of the
equity share capital

Performance Summary for FY 2023-24

à Order Inflow achieved a healthy growth of 14% à The buoyancy in customer collections and advances
y-o-y basis, driven by the increased proportion of improved operational cash flows
international orders (at 35%), mainly due to higher à The Board of Directors has recommended a final
ordering activity witnessed in GCC countries dividend of `28 per equity share for the approval
à Revenue registered growth of 14%, reflecting of the shareholders. In addition, during the year,
improved execution momentum from the opening the Company paid a special dividend of `6 per
order book equity share

A. M. Naik Heavy Engineering Complex, Hazira, Gujarat

240 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Economic Value Generated and Distributed1 [in `Bn]

Value Generated Value Distributed

Total Income FY 2023-24 FY 2022-23

89.71 1.51 59.50 1.37

FY 2023-24 33.74
46.92

1,336.4
21.25
24.06

88.59 82.93

FY 2022-23

1,162.3 1,068.65 922.27

Manufacturing, Construction Employee Wages Interest

and Operating Expenses and Benefits

Dividend Payments to Community

Exchequer Investments (CSR)

Value generated - Value Data Description FY 2023-24 FY 2022-23

distributed = Value retained Economic Value Total Income 1,336.40 1,162.30
Generated
FY 2023-24 Manufacturing, Construction 1,068.65 922.27

16.97 and Operating Expenses

Employee Wages and Benefits 88.59 82.93
Payments to Providers
Economic Value of Capital
FY 2022-23 Distributed
Interest 24.06 21.25
41.24 Dividend
Payments to Exchequer
46.92
89.71
33.74
59.50
Community Investments (CSR) 1.51 1.37
Economic Value 16.97 41.24
Retained

1
Excluding exceptional items

241
 Business Responsibility &
Sustainability Reporting

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORTING

SECTION A: GENERAL DISCLOSURES

I. DETAILS OF THE LISTED ENTITY

1 Corporate Identity Number (CIN) of the L99999MH1946PLC004768
Listed Entity
2 Name of the Listed Entity Larsen & Toubro Limited
3 Year of incorporation 07-02-1946
4 Registered office address L&T House, Ballard Estate, Mumbai- 400001, Maharashtra
5 Corporate address L&T House, Ballard Estate, Mumbai- 400001, Maharashtra
6 E-mail [email protected]
7 Telephone +91 22 67525656
8 Website www.larsentoubro.com
9 Date of start of Financial Year Start Date End Date
Financial Year 01-04-2023 31-03-2024
Previous Year 01-04-2022 31-03-2023
Prior To Previous Year 01-04-2021 31-03-2022
10 Name of the Stock Exchange(s) where shares are listed
1. BSE Limited
2. National Stock Exchange of India Limited
11 Paid-up Capital ¢ 274.93 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
Name of contact person Dr. Pradeep Panigrahi, Head Corporate Sustainability
Contact Number of contact person +91 22 61238639
Email of Contact Person [email protected]
13 Reporting boundary - Are the The disclosure under this report is made on a standalone basis.
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).
14 Name of assurance provider Deloitte Haskins & Sells LLP
15 Type of assurance obtained Reasonable Assurance for Core KPIs

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Overview Discussion and Analysis Report Reports Statements

II. PRODUCTS/SERVICES
16. Details of business activities (accounting for 90% of the turnover):

Description of Main % of
S. No. Description of Business Activity
Activity turnover
1 Infrastructure Projects Engineering and Construction of (a) Building and Factories, (b) Transportation 75
Infrastructure, (c) Heavy Civil Infrastructure, (d) Power Transmission &
Distribution, (e) Water & Effluent Treatment and (f) Minerals and Metals
2 Energy Projects EPC/turnkey solutions in (a) Hydrocarbon business covering Oil and Gas 15
industry from front-end design through detailed engineering, modular
fabrication, procurement, project management, construction, installation
and commissioning, (b) Power business covering Coal-based and Gas-based
thermal power plants including power generation equipment with associated
systems and/or balance-of-plant packages and (c) EPC solutions in Green
Energy space
3 Hi-Tech Manufacturing Design, manufacture/construct, supply, revamp/retrofit of (a) Heavy 6
Engineering business covering custom designed, engineered critical equipment
and systems to the process plant, nuclear energy and green hydrogen sectors
and (b) Precision Engineering & Systems covering marine and land platforms
including related equipment & systems; aerospace products & systems;
precision and electronic products and systems for defence, security, space and
industrial sectors

17. 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
1 251 2513 25132/33/39 Manufacture of nuclear reactors, except isotope separators and 3
auxiliary plant for use with steam generators
2 282 2824 28246 Manufacture of parts and accessories for machinery/equipment 6
used by construction and mining industries
3 410 4100 41001 Construction of buildings carried out on own-account basis or 13
on a fee or contract basis
4 421 4210 42101 Construction and maintenance of motorways, streets, roads,
other vehicular and pedestrian ways, highways, bridges, tunnels
29
and subways
42102 Construction and maintenance of railways and rail-bridges
5 422 4220 42201 Construction and maintenance of power plants 2
42202 Construction/erection and maintenance of power, 14
telecommunication and transmission lines
42204 Construction and maintenance of water main and line
connection, water reservoirs including irrigation system (canal)
13
42205 Construction and repair of sewer systems including sewage
disposal plants and pumping stations
6 429 4290 42901 Construction and maintenance of industrial facilities such as 13
refineries, chemical plants, etc.

243
 Business Responsibility &
Sustainability Reporting

III. OPERATIONS
18. Number of locations where plants and/or operations/offices of the entity are situated:
Location Number of plants Number of offices Total
National 18 28 46
International 0 13 13

19. Markets served by the entity:

a. Number of locations
Location Number
National (No. of States) Pan India
International (No. of Countries) 64

b. What is the contribution of exports as a percentage of the total turnover of the entity?
21%
c. A brief on types of customers
The Company’s primary businesses are EPC projects in infrastructure and energy and hi-tech manufacturing of
equipment and process for industries. Government (sovereign, sub-national, local) and related entities (govt. owned/
controlled corporations) are the largest clients of the Company. Other clients are private companies, including
foreign companies, in various sectors and industries.
IV. EMPLOYEES
20. Details as at the end of Financial Year:
a. Employees and workers (including differently abled):
S. 1
Male Female
Particulars Total (A)
No No. (B) % (B/A) No. (C) % (C/A)
EMPLOYEES
1. Permanent (D) 52,224 48,019 91.9 4,205 8.1
2. Other than Permanent (E) 5,041 4,793 95.1 248 4.9
3. Total employees (D + E) 57,265 52,812 92.2 4,453 7.8
WORKERS
4. Permanent (F) 2,079 2,073 99.7 6 0.3
5. Other than Permanent (G) 3,48,094 3,45,287 99.2 2,807 0.8
6. Total workers (F + G) 3,50,173 3,47,360 99.2 2,813 0.8

1 Other than permanent employees comprise Fixed Term Employees (FTEs). ‘Permanent’ workers include only those workers who are
employed for full-time or part-time work for an indeterminate period with the Company. ‘Other than Permanent’ workers include workers
on third-party roll and contractual categories.

b. Differently abled employees and workers:

Male Female
S. No Particulars Total (A)
No. (B) % (B/A) No. (C) % (C/A)
DIFFERENTLY ABLED EMPLOYEES
1. Permanent (D) 45 42 93.3 3 6.7
2. Other than Permanent (E) 0 0 0 0 0
3. Total differently abled employees (D + E) 45 42 93.3 3 6.7
DIFFERENTLY ABLED WORKERS
4. Permanent (F) 15 15 100 0 0
5. Other than Permanent (G) 13 13 100 0 0
6. Total differently abled workers (F + G) 28 28 100 0 0

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Overview Discussion and Analysis Report Reports Statements

21. Participation/Inclusion/Representation of women

No. and percentage of Females

Particulars Total (A)
No. (B) % (B/A)
Board of Directors 2 17 1 5.9

Key Management Personnel 1 0 0

2 The Chairman & MD and CFO are included in the Board of Directors.

22. Turnover rate for permanent employees and workers

FY 2023-24 [values in %] FY 2022-23 [values in %] FY 2021-22 [values in %]

Particulars
Male Female Total Male Female Total Male Female Total
Permanent 11.5 14.0 11.7 11.8 20.1 12.5 14.3 20.6 14.7
Employees
Permanent 9.5 0 9.5 1.8 0 1.8 Not tracked
Workers

V. HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES (INCLUDING JOINT VENTURES)

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

Does the entity indicated at

Holding/
% of shares column (A), participate in
S. Subsidiary/
Name of the Company (A) held by the the Business Responsibility
No. Associate/Joint
listed entity initiatives of the listed
Venture
entity? (Yes/No)
1 Ahmedabad-Maliya Tollway Limited * Joint Venture 51.00 No
2 Avenue Techpark (Bangalore) Private Limited Subsidiary 100.00 No
3 Bangalore Fortune Techpark Private Limited Subsidiary 100.00 No
4 Bangalore Galaxy Techpark Private Limited Subsidiary 100.00 No
5 Bangalore Spectrum Techpark Private Limited Subsidiary 100.00 No
6 Bhilai Power Supply Company Limited Subsidiary 99.90 No
7 Bluefin Solutions Sdn. Bhd. @ Subsidiary 68.60 No
8 Business Park (Powai) Private Limited Subsidiary 100.00 No
9 Chennai Nova Techpark Private Limited Subsidiary 100.00 No
10 Chennai Vision Developers Private Limited Subsidiary 100.00 No
11 Corporate Park (Powai) Private Limited Subsidiary 100.00 No
12 Graphene Solutions Sdn. Bhd. Subsidiary 73.74 No
13 Graphene Solutions Taiwan Limited Subsidiary 73.74 No
14 Hydrocarbon Arabia Limited Company Joint Venture 60.00 No
15 Hi-Tech Rock Products & Aggregate Limited Subsidiary 100.00 No
16 Kudgi Transmission Limited * Joint Venture 51.00 No
17 L&T Aviation Services Private Limited Subsidiary 100.00 No
18 L&T Capital Company Limited Subsidiary 100.00 No
19 L&T Chennai Tada Tollways Limited * Joint Venture 51.00 No
20 L&T Community Welfare Association ^ Subsidiary 100.00 No
21 L&T Construction Equipment Limited Subsidiary 100.00 No
22 L&T Deccan Tollways Limited * Joint Venture 51.00 No
23 L&T Electrolysers Limited Subsidiary 100.00 No
24 L&T Energy Green Tech Limited (Formerly known as Subsidiary 100.00 No
L&T Power Limited)

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 Business Responsibility &
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Does the entity indicated at

Holding/
% of shares column (A), participate in
S. Subsidiary/
Name of the Company (A) held by the the Business Responsibility
No. Associate/Joint
listed entity initiatives of the listed
Venture
entity? (Yes/No)
25 L&T Energy Hydrocarbon Engineering Limited Subsidiary 100.00 No
(Formerly known as L&T-Chiyoda Limited)
26 L&T Finance Limited $ (Formerly known as L&T Subsidiary 65.86 No &

Finance Holdings Limited)

27 L&T Financial Consultants Limited Subsidiary 65.86 No
28 L&T Geostructure Private Limited Subsidiary 100.00 No
29 L&T Global Holdings Limited Subsidiary 100.00 No
30 L&T Himachal Hydropower Limited Subsidiary 100.00 No
31 L&T Howden Private Limited Joint Venture 50.10 No
32 L&T Hydrocarbon Saudi Company LLC (Formerly Subsidiary 100.00 No
known as Larsen & Toubro Atco Saudi LLC)
33 L&T Infra Investment Partners Advisory Private Subsidiary 65.86 No
Limited
34 L&T Infra Investment Partners Trustee Private Subsidiary 65.86 No
Limited
35 L&T Infrastructure Development Projects Limited * Joint Venture 51.00 No
36 L&T Interstate Road Corridor Limited * Joint Venture 51.00 No
37 L&T MBDA Missile Systems Limited Joint Venture 51.00 No
38 L&T Metro Rail (Hyderabad) Limited Subsidiary 99.99 No
39 L&T-MHI Power Boilers Private Limited Joint Venture 51.00 No
40 L&T-MHI Power Turbine Generators Private Limited Joint Venture 51.00 No
41 L&T Modular Fabrication Yard LLC Subsidiary 70.00 No
42 L&T Network Services Private Limited Subsidiary 100.00 No
43 L&T Offshore Private Limited # (Formerly known as Subsidiary 100.00 No
L&T Sapura Offshore Private Limited)
44 L&T Parel Project Private Limited Subsidiary 100.00 No
45 L&T Power Development Limited Subsidiary 100.00 No
46 L&T Rajkot-Vadinar Tollway Limited * Joint Venture 51.00 No
47 L&T Realty Developers Limited Subsidiary 100.00 No
48 L&T Samakhiali Gandhidham Tollway Limited * Joint Venture 51.00 No
49 L&T Sambalpur - Rourkela Tollway Limited * Joint Venture 51.00 No
50 L&T Sapura Shipping Private Limited Joint Venture 60.00 No
51 L&T-Sargent & Lundy Limited Joint Venture 50.01 No
52 L&T Seawoods Limited Subsidiary 100.00 No
53 L&T Semiconductor Technologies Limited Subsidiary 100.00 No
54 L&T Special Steels and Heavy Forgings Private Joint Venture 74.00 No
Limited
55 L&T Technology Services (Canada) Limited Subsidiary 73.74 No
56 L&T Technology Services Limited Subsidiary 73.74 No &

57 L&T Technology Services LLC Subsidiary 73.74 No

58 L&T Technology Services Poland Społka Z Subsidiary 73.74 No
Ograniczoną Odpowiedzialnością
59 L&T Technology Services Pte. Ltd. (Formerly known Subsidiary 73.74 No
as Graphene Solutions Pte. Ltd.)
60 L&T Technology Services (Shanghai) Co. Ltd. Subsidiary 73.74 No

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Overview Discussion and Analysis Report Reports Statements

Does the entity indicated at

Holding/
% of shares column (A), participate in
S. Subsidiary/
Name of the Company (A) held by the the Business Responsibility
No. Associate/Joint
listed entity initiatives of the listed
Venture
entity? (Yes/No)
61 L&T Thales Technology Services Private Limited Subsidiary 54.57 No
62 L&T Transportation Infrastructure Limited* Joint Venture 51.00 No
63 L&T Valves Arabia Manufacturing LLC Subsidiary 100.00 No
64 L&T Valves Limited Subsidiary 100.00 No
65 L&T Valves USA LLC Subsidiary 100.00 No
66 Larsen & Toubro (East Asia) Sdn. Bhd.+ Subsidiary 30.00 No
67 Larsen & Toubro Electromech LLC Subsidiary 70.00 No
68 Larsen & Toubro Heavy Engineering LLC Subsidiary 70.00 No
69 Larsen & Toubro International FZE Subsidiary 100.00 No
70 Larsen & Toubro Kuwait Construction General Subsidiary 49.00 No
Contracting Company (With Limited Liability)+
71 Larsen & Toubro Oman LLC Subsidiary 65.00 No
72 Larsen & Toubro Saudi Arabia LLC Subsidiary 100.00 No
73 Larsen & Toubro T&D SA (Pty) Limited Subsidiary 72.50 No
74 GH4India Private Limited Joint Venture 33.33 No
75 Larsen & Toubro Qatar LLC @+ Subsidiary 49.00 No
76 Larsen Toubro Arabia LLC Subsidiary 75.00 No
77 LH Residential Housing Private Limited Subsidiary 100.00 No
78 LH Uttarayan Premium Realty Private Limited Subsidiary 100.00 No
79 LTIMindtree Canada Limited (Formerly known as Subsidiary 68.60 No
Larsen & Toubro Infotech Canada Limited)
80 LTIMindtree Financial Services Technologies Inc. Subsidiary 68.60 No
(Formerly known as L&T Infotech Financial Services
Technologies Inc.)
81 LTIMindtree GmbH (Formerly known as Larsen & Subsidiary 68.60 No
Toubro Infotech GmbH)
82 LTIMindtree Information Technology Services Subsidiary 68.60 No
(Shanghai) Co. [Formerly known as L&T
Information Technology Services (Shanghai) Co.
Ltd.]
83 LTIMindtree Limited (Formerly known as Larsen & Subsidiary 68.60 No &

Toubro Infotech Limited)

84 LTIMindtree LLC (Formerly known as Larsen & Subsidiary 68.60 No
Toubro Infotech LLC)
85 LTIMindtree Middle East FZ-LLC (Formerly known Subsidiary 68.60 No
as LTI Middle East FZ-LLC)
86 LTIMindtree Norge AS (Formerly known as Larsen & Subsidiary 68.60 No
Toubro Infotech Norge AS)
87 LTIMindtree PSF S.A. (Formerly known as Syncordis Subsidiary 68.60 No
PSF S.A. )
88 LTIMindtree S.A. (Formerly known as Syncordis S.A. Subsidiary 68.60 No
Luxembourg )
89 LTIMindtree, Sociedad De Responsabilidad Limitada Subsidiary 68.60 No
De Capital Variable (Formerly known as L&T
Infotech S. De. Rl. De. Cv.)

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 Business Responsibility &
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Does the entity indicated at

Holding/
% of shares column (A), participate in
S. Subsidiary/
Name of the Company (A) held by the the Business Responsibility
No. Associate/Joint
listed entity initiatives of the listed
Venture
entity? (Yes/No)
90 LTIMindtree South Africa (Pty) Limited [Formerly Subsidiary 47.73 No
known as Larsen and Toubro Infotech South Africa
(Pty) Limited]
91 LTIMindtree Spain SL (Formerly known as L&T Subsidiary 68.60 No
Information Technology Spain SL)
92 LTIMindtree Switzerland AG (Formerly known as Subsidiary 68.60 No
Nielsen+Partner Unternehmensberater AG)
93 LTIMindtree (Thailand) Limited (Formerly known as Subsidiary 68.60 No
Nielsen & Partner Company Limited)
94 LTIMindtree UK Limited (Formerly known as Larsen Subsidiary 68.60 No
& Toubro Infotech UK Limited)
95 LTIMindtree USA Inc. (Formerly known as Lymbyc Subsidiary 68.60 No
Solutions Inc.)
96 LTH Milcom Private Limited Subsidiary 56.67 No
97 Millennium Techpark (Chennai) Private Limited Subsidiary 100.00 No
98 Nabha Power Limited Subsidiary 100.00 No
99 Nielsen & Partner Pty. Ltd. Subsidiary 68.60 No
100 Nielsen+Partner Pte. Ltd. Subsidiary 68.60 No
101 Nielsen+Partner Unternehmensberater GmbH Subsidiary 68.60 No
102 Panipat Elevated Corridor Limited * Joint Venture 51.00 No
103 PNG Tollway Limited * Joint Venture 37.74 No
104 Prime Techpark (Chennai) Private Limited Subsidiary 100.00 No
105 PT. Larsen & Toubro Subsidiary 100.00 No
106 Raykal Aluminium Company Private Limited Joint Venture 75.50 No
107 Rewin Infrastructure Limited * Joint Venture 51.00 No
108 Syncordis Limited, UK Subsidiary 68.60 No
109 Syncordis Sarl, France Subsidiary 68.60 No
110 Vadodara Bharuch Tollway Limited * Joint Venture 51.00 No
111 Watrak Infrastructure Private Limited * Joint Venture 51.00 No
112 Indiran Engineering Projects and Systems Kish (LLC) Joint Venture 50.00 No
113 Gujarat Leather Industries Limited @ Associate 50.00 No
114 Grameen Capital India Private Limited % Associate 17.12 No
115 International Seaports (Haldia) Private Limited % Associate 14.25 No
116 L&T Camp Facilities LLC Associate 49.00 No
117 Magtorq Private Limited Associate 42.85 No
118 Magtorq Engineering Solutions Private Limited Associate 39.28 No
119 Larsen & Toubro Qatar & HBK Contracting Co. WLL@ Associate 50.00 No
@ In process of Liquidation.
* Sold off w.e.f. April 10, 2024.
^ Subsidiary as per Companies Act, 2013.
$ L&T Finance Limited, L&T Infra Credit Limited and L&T Mutual Fund Trustee Limited was merged with L&T Finance Holdings Limited.

Thereafter, the name of L&T Finance Holdings Limited was changed to L&T Finance Limited w.e.f. March 28, 2024.
# Wholly owned subsidiary of the Company w.e.f. December 27, 2023.
% Associate of a subsidiary company under Companies Act, 2013.
+ Subsidiary by virtue of control over composition of Board of Directors.
& These subsidiaries have a separate BRSR.

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Overview Discussion and Analysis Report Reports Statements

VI. CSR DETAILS

24. CSR Details
Whether CSR is applicable as per Section 135 of Companies Act, 2013 Yes
Turnover (in ¢ Crore) 1,26,236
Net worth (in ¢ Crore) 64,416
VII. TRANSPARENCY AND DISCLOSURES COMPLIANCES
25. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on
Responsible Business Conduct:

Grievance Redressal FY 2023-24 FY 2022-23

Stakeholder Mechanism in Place Number of Number of
Number of Number of
group from (Yes/No) complaints complaints
complaints complaints
whom pending pending
if Yes, then provide filed Remarks filed Remarks
complaint is resolution resolution
web-link for grievance during the during the
received at close of at close of
redress policy year year
the year the year
Communities Yes 0 0 – 0 0 –
Investors Yes 0 0 – 0 0 –
(other than
shareholders)
Shareholders Yes 0 0 – 0 0 –
Employees and Yes 510 5 – 211 0 –
workers 3
Customers Yes 32 10 – 115 7 –
Value Chain Yes 59 18 – 252 95 –
Partners
Others Yes 52 23 Whistleblower 18 3 Whistleblower
complaints 4 complaints


3 Higher reported cases due to streamlining of complaints and grievances registration system viz HEERA, a bot based system incorporated in MS

teams. Includes complaints related to salary, benefits, policies, portals, mediclaim, leave, work facilities. Complaints related to sexual harassment
are addressed through the mechanism stated in the POSH Policy and respective Internal Complaints Committee.
4 Higher reported cases due to increased awareness amongst stakeholders.

Though the Company does not have a formal grievance redressal policy/ies, there are detailed procedures in place for
addressing the grievances across different stakeholders.
Details of the grievance redressal mechanism are elucidated below:
Investors and Shareholders: The Company has designated an exclusive e-mail id [email protected], to
enable investors and shareholders to register their grievances, if any. Other mechanisms to receive the grievances are
physical letters to the registered office address, e-mails to the Registrar and Transfer Agent (RTA), KFin Technologies
Ltd. (KFintech) on their designated email id [email protected], physical letters or telephone call or physical visit
to RTA, designated grievance redressal facilitation platform of SEBI – SCORES, from Stock Exchanges i.e. BSE & NSE
through their online portals, letters received from Registrar of Companies (ROC) and complaints received on Smart ODR
Portals of BSE and NSE. Each email received through IGRC ID is responded to wherever the details are readily available
with the Company. All grievances received by RTA are forwarded to the Company and the Company can view scanned
copies of these emails and replies in Karisma system (KFintech software portal). The Company regularly monitors Inward
Report which is available on Karisma Portal of KFintech to ensure that Service Level Agreement (SLA) timelines are
properly followed for closure of queries/complaints received. Complaints received through stock exchanges, regulators,
ROC are monitored and the responses are uploaded on the respective regulators’ portal. The Company regularly checks
the status of closure of these complaints. SLA for resolving all the queries as well as complaints is 30 days. On a quarterly
basis, the Company submits a report to Stock Exchanges providing details of complaints received and redressed.
These details also placed with the Stakeholders Relationship Committee and the Board on a quarterly basis, for their
information.

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 Business Responsibility &
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Supply Chain Partners: The grievances are primarily registered and redressed through a dedicated vendor management
platform called Partner portal for contractual and Whistleblowing Policy for other than contractual grievances. Partner
portal captures the contractual grievances such as administrative and statutory compliances, payment, invoicing,
contractual clauses, material and services schedule and delivery, quality non-conformances, global geo-political concerns
beyond the contract but affecting contract performance. Typically, in most cases, based on the priority, complexity
and severity of the grievance, the resolution time may range from 30-45 working days. In cases of major disputes, the
resolution time may be more than 45 days. The entire process entails continuous dialogue and feedback. For grievances
other than contractual, the Company has formulated Whistleblower Policy for Vendors & Channel Partners with a view
to provide a mechanism for vendors of the Company to express genuine concerns about unethical behaviour, improper
practice, any misconduct, any violation of legal or regulatory requirements, actual or suspected fraud, without fear
of punishment or unfair treatment. The Policy was also circulated to all registered vendors across the Company and is
available at https://www.larsentoubro.com/corporate/about-lt-group/corporate-policies/
The grievance redressal mechanism for employees and workers, community and customers are explained in Principle 3, 8
and 9 respectively.
26. 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
The Company conducts materiality assessment to identify and prioritize the key material topics pertaining to ESG and
understand the relative importance of these topics to the stakeholders and businesses. In FY 2021-22, the Company
engaged with a diverse set of internal and external stakeholders to update its materiality matrix. The material topics, if
addressed and strengthened can become a strength and if not, can pose a risk. For certain material topics, the focus is
more on the potential risk and the approach taken by the Company to ensure that the risk does not materialize. This is
outlined in the table in ‘Understanding Materiality’ section of Integrated Annual Report FY 2023-24.

SECTION B: MANAGEMENT AND PROCESS DISCLOSURE

Disclosure Questions Principles

Policy and management processes P1 P2 P3 P4 P5 P6 P7 P8 P9
1. a. Whether your entity’s policy/policies cover Yes, each principle and its core elements are covered by one or more policies of the Company.
each principle and its core elements of
the NGRBCs. (Yes/No)
b. Has the policy been approved by the Yes, the policies are approved by the Board/Board Committee/Executive Committee as applicable
Board? (Yes/No)
c. Web Link of the Policies, if available The policies are available at https://www.larsentoubro.com/corporate/about-lt-group/corporate-policies/
2. Whether the entity has translated the Most of the policies are implemented through procedures which are either incorporated in the policies or available
policy into procedures. (Yes / No) as separate documents/SOPs/processes.
3. Do the enlisted policies extend to your Yes, the Code of Conduct for the supply chain partners cover key aspects of the Company’s policies applicable to
value chain partners? (Yes/No) the value chain partners. Furthermore, some of the other Company policies such as Whistleblowing Policy for Vendor
and Channel partners as relevant are also extended to the supply chain partners.
4. Name of the national and international Some of the standards, certifications, codes adopted by the Company are as follows:
codes/certifications/labels/ standards (e.g. P1: SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Forest Stewardship Council, Fairtrade, P2: SA8000 (key manufacturing facilities), ISO 14001, ISO 45001
Rainforest Alliance, Trustea) standards P3: Factories Act, 1948, Building and Other Construction Workers (Regulation of Employment and Conditions of
(e.g. SA8000, OHSAS, ISO, BIS) adopted Service) Act, 1996, SA8000 (key manufacturing facilities), ISO 45001
by your entity and mapped to each P5: Factories Act, 1948, Building and Other Construction Workers (Regulation of Employment and Conditions of
principle. Service) Act, 1996, SA8000 (key manufacturing facilities)
P6: ISO 14001, ISO 50001
P8: CSR disclosures pursuant to Section 135 of the Companies Act, 2013
P9: ISO 27001: 2013

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Disclosure Questions Principles

Policy and management processes P1 P2 P3 P4 P5 P6 P7 P8 P9
5. Specific commitments, goals and targets (a) (f) (g) (g) (a)(b)(c)(d) (e)
set by the entity with defined timelines, if
any.
6. Performance of the entity against the (a) (f) (g) (g) (a)(b)(c)(d) (e)
specific commitments, goals, and targets
along-with reasons in case the same are
not met.

# Parameter/Metric Target FY 2025-26 Achieved FY 2023-24

(a) Green Business portfolio (% of revenue) 40% 50%
(b) Renewable energy (% electricity) 50% [baseline year FY 2020-21] 9.2%
(c) Emissions Intensity Reduction -25% [baseline year FY 2020-21] -10%
(d) Tree plantation 1.5 -2 million/yr ~4 million
(e) CSR beneficiaries 5 1.7 million 1.6 million
(f) Diversity ratio 10% 8.1%
(g) Mission Zero Harm LTIFR for FY24: 0.04 (Employees) |
0.07 (Workers)
 The target was to impact 1.6 million beneficiaries by FY 2025-26. Since, the Company already attained its FY 2025-26 target during FY 2023-24, the
5

target has been pushed further and the new target is to impact 1.7 million beneficiaries by FY 2025-26.

Renewable energy (% of total electricity) is significantly lower than the short-term target due to the challenges faced in
sourcing renewable energy by the Company. Issues faced for sourcing at project sites are unavailability of adequate area for
installing solar modules, difficulties in getting green open access for temporary connections, developers’ preference for long
term power purchase agreements (10-15 years) and varying regulations and charges across the states.
Governance, leadership and oversight
7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges,
targets and achievements.
L&T is progressing on various dimensions of ESG by strengthening policies and processes, improving systems, translating
plans into action towards achieving targets, continuous monitoring and review and building capacity of the workforce
through various channels.
The Company has committed to achieve Carbon Neutrality by 2040 and Water Neutrality by 2035, and in-line with long
term targets, the Company has taken interim targets up to FY 2025-26. The Company’s overall GHG emission intensity
reduced by 12.2% in FY 2023-24 (7.8 tCO2e/¢ Cr in FY 2023-24 compared to 8.9 tCO2e/¢ Cr of the previous FY 2022-23)
and this is in line with the reduction path up to FY 2025-26. Reduction in emission intensity was primarily driven by
decrease in energy intensity by 15.9% in FY 2023-24. Emissions reduction would have been higher, had it not been for
the challenges faced in increasing sourcing of renewable power, which stood at 9.2% (of electricity consumption) during
the year.
The Company’s strategy towards achieving Carbon Neutrality is based on two key pillars – reducing fossil fuel
consumption and increasing use of renewable energy in electricity consumption. With more than 700 sites, EPC projects
present significant challenges in implementing these strategies owing to their temporary operations (typically 3-4 years)
at any project site, open boundaries, and extensive spatial coverage, especially in the context of linear projects. The
business units of the Company have identified and are implementing several initiatives to progress towards the targets.
Furthermore, the Company has formed two high-level taskforces during the year to help increase renewable electricity
sourcing and reduce diesel consumption.
Biodiversity promotion is another vital area and the Company has set a target of 1.5-2 million saplings per annum.
During the year, the Company planted around 4 million saplings through large scale plantation drives across the country.
In recent past, the Company had planted 150 hectares of mangroves near the A. M. Naik Heavy Engineering Complex,
Hazira, Surat in Gujarat, which continue to protect coastal villages from incursion of salt water and facilitate storage of
blue carbon. The Company is exploring different options for tracking survival and growth of saplings.

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The Company is focusing on reducing water consumption intensity for achieving Water Neutrality. This is driven through
initiatives such as water use efficiency, recycling of wastewater, rainwater harvesting and use of treated wastewater from
municipal corporations. The Company also undertakes significant water conservation and ground water recharge through
projects under the Company’s CSR programmes across different locations of the country. The Company has initiated steps
for a third-party assessment to estimate the positive impact of these CSR initiatives.
Recognizing the importance of Circular Economy on the businesses and the environment, the Company is taking
numerous steps, including use of recycled or non-virgin material. In FY 2023-24, approximately 32% of input material
was eco-friendly and non-virgin material. L&T Construction Research and Testing Centre (LTCRTC) in Chennai, which is
recognized by the Department of Scientific and Industrial Research (DSIR) and accredited by the National Accreditation
Board for Testing and Calibration Laboratories (NABL), continues to experiment with new material for replacing traditional
material used in construction work. In FY 2023-24, Research & Testing Centre has achieved some encouraging results
with design of mixes with low embodied carbon materials e.g., glass fibre textiles and with use of industrial by-products
e.g., steel slag. (Further details are provided in Intellectual Capital section of the Integrated Annual Report FY 2023-24.)
During the year, the Company has taken substantial effort and actions to handhold and build awareness of the supply
chain partners on ESG. The Company has started assessing its supply chain partners on ESG parameters starting with 25
in FY 2022-23 and 200 in FY 2023-24. The assessment in the coming years will be more comprehensive and structured
for improving ESG orientation as well as performance of the suppliers.
The Company had set a target to achieve 40% of total revenue from Green Business by FY 2025-26 and has already
exceeded by achieving 50% in FY 2023-24. Green Business is centred around clean mobility, clean energy, water and
sanitation infrastructure and other related areas. The Company has been ranked third globally in ‘Top 200 Environmental
Firms’ list consecutively in 2022 and 2023 by Engineering News Record (ENR), a reputed publication for the construction
industry worldwide.
The Company is focussed on providing equal opportunity, ensuring diversity and inclusion, safe workplace and
wellbeing of its workforce. The Company has implemented multiple initiatives for safeguarding their health and safety.
Skill upgradation as well as developing capabilities of the workforce for the future is a continuous thrust area for the
Company. During the year, around 24,000 employees and 3,50,000 contract workmen have undergone training on
health and safety. Several new initiatives were rolled out during FY 2023-24 to instil a high-performance work culture.
For example, the Company launched Project NEEV (Nurture, Educate, Empower to create Value) to inculcate a culture of
effective performance and continuous feedback.
The gender diversity stands at 8.1% with a target to reach 10% by FY 2025-26. Over the last two years, the Company
has maintained hiring of 30% women Graduate Engineer Trainee (GET) and Post Graduate Engineer Trainee (PGET) and
is continuously ramping up the efforts towards diverse and inclusive workplace. Various campaigns were organized,
celebrating PRIDE month and people with different abilities, to increase awareness on diversity beyond gender. With the
intention of developing a pipeline of women leaders, 495 women employees were handpicked to participate in WINSPIRE
series of Leadership Development Programs during the last few years, with a 142% rise in participation rate.
Corporate Social Responsibility has been a primary focus of the Company, much before it became part of the legislation.
The overarching theme for our CSR programme is to develop India’s Social Infrastructure by focusing on water and
sanitation, education, health and skill building. In FY 2023-24, CSR initiatives impacted 1.6 million lives, with a target to
reach 1.7 million beneficiaries by FY 2025-26. The Company’s Integrated Community Development Programmes (ICDP)
initiated 10 years ago, helps in building resilience in rural communities, especially in remote water-scarce locations of
Maharashtra, Tamil Nadu and Rajasthan covering an area of ~43,091 hectares. The Company is scaling up and replicating
these models in other locations. In all ICDP locations, the water table has risen by an average of 8 meters from the
baseline benefitting nearly 25,000 households. Through these consistent efforts, the Company aims to improve quality
of life, reduce social inequalities, promote self-sufficiency, and empower individuals in vulnerable and marginalised
communities.
The Company is striving to ensure sustainable and inclusive growth. The Company believes in taking a balanced approach
for creating enduring long-term value for its multiple stakeholders – customers, suppliers, business partners, shareholders,
community, the society, and the planet. The Company is pursuing the path of purposeful progress with enthusiasm and
optimism.

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8. Details of the highest authority responsible for implementation and oversight of the Business Responsibility
policy(ies).
The Chairman & MD and the Board are the highest authority responsible for implementation and oversight of the
Business Responsibility policy(ies).
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 & Sustainability Committee is responsible for decision making on sustainability related issues. For
details of the composition, role and terms of reference, please refer to Annexure ‘B’ to the Board Report of the Integrated
Annual Report FY 2023-24.
10. Details of Review of NGRBCs by the Company:

Indicate whether review was undertaken by Director Frequency (Annually/ Half yearly/
Subject for Review / Committee of the Board / Any other Committee Quarterly/ Any other - please specify)
P1 P2 P3 P4 P5 P6 P7 P8 P9
Performance against Yes, the performance against policies is reviewed by the Board/Board Committees/Executive Committee on
above policies and follow periodic basis.
up action

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. Has the entity carried out independent assessment/ evaluation of the working of its policies by an external
agency? (Yes/No). If yes, provide name of the agency.

P1 P2 P3 P4 P5 P6 P7 P8 P9
The Company has over 350 global certifications across the businesses provided by third party audit agencies such as Deloitte Haskins
& Sells LLP, DNV India, TUV-Nord, LRQA. These agencies conduct audits across businesses on standards such as ISO / IEC 27001
(Information Security Management System-ISMS), ISO 14001 (Environment Management System), ISO 45001 (Occupational Health and
Safety Management System), ISO 9001 (Quality Management System), AS 9100 (Aerospace), SA8000 (Social Accountability Standard),
ISO 29001 (Quality Management System for Oil & Gas Industry), ISO 50001 (Energy Management System), American Society of
Mechanical Engineers (ASME), ISO 20000 (IT Service Management), HR Management-ISO 30400 Series, Innovation Management- ISO
50501, ISO 56000 Series, Project Management-ISO 10006, ISO 21500 Series, Risk Management-ISO 31000 Series, Governance-ISO
19600, ISO 37000 Series, Anti-Bribery Management-ISO 37001, ESG assurance – SSAE 3000. During these audits, components such as
policies, processes, procedures, records, monitoring and review process are checked and verified by the third party.

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 business (Yes/No)
The entity is not at a stage where it is in a position to formulate and
implement the policies on specified principles (Yes/No)
The entity does not have the financial or/human and technical resources Not applicable
available for the task (Yes/No)
It is planned to be done in the next financial year (Yes/No)
Any other reason (please specify)

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SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

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:

Total number of training and Topics / principles covered under the % age of persons covered by
Segment
awareness programmes held training and its impact the awareness programmes

Board of Directors 4 Business, strategy, risk, Induction, ESG, 91

visit to site/operative plants and update
of laws

Key Managerial 6 Business, strategy, risk, regulatory 100

Personnel discussions, ESG, visit to site/operative
plants and update of laws

Employees other 5,766 The Company conducts numerous 100

than BoD and KMPs online and offline training led by
internal or external faculty/expert
throughout the year on key topics such
as Safety, Code of Conduct, Prevention
of Sexual Harassment, cybersecurity,
diversity and inclusion, sustainability
for employees across the Company.
In addition, employees are provided
need-based training as per their job and
role requirement, covering aspects such
as behavioural competency, leadership
development, project management.

The Company is also focussed on skill

upgradation such as engineering/
designing software, artificial intelligence,
machine learning, Behaviour Based
Safety, data analysis and visualization,
IoT, IS Standards and Codes.

Workers 1,32,843 The contractual workforce undergoes 100

numerous trainings which includes
but not limited to, health and safety,
equipment operation, handling of tools
and material, behaviour based safety,
waste management, first aid, work at
heights.

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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 (Note: the entity shall make disclosures on the basis of materiality as
specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and as
disclosed on the entity’s website):
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
Settlement No cases reported during the year
Compounding fee

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

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.
No cases have been reported during FY 2023-24.
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 a policy on anti-bribery and anti-corruption (‘ABAC’ policy) available at
https://www.larsentoubro.com/corporate/about-lt-group/corporate-policies/. The Company is committed to complying
with all applicable laws and regulations which govern the Company’s operations across every location. It provides a
guiding framework and covers various aspects such as, but not limited to, expected standard of behaviour, having
appropriate controls, monitoring, reporting, training and awareness. This Policy is applicable to all employees working at
all levels and grades of the Company, including the Board Members and Senior Managerial Personnel (Senior officers),
employees, managers, executives, supervisors, workers and other equivalent grades of employees of the Company and
fixed term contract employees. This Policy has also been extended to any other person associated with the Company and
such person acting on behalf of the Company through the Code of Conduct for Suppliers (which includes Intermediaries
including Consultants/Agents/Business Partners/Vendors). Furthermore, the Company has already adopted a Code of
Conduct for Board of Directors and Senior Management, Code of Conduct for Supervisory, Executive and Officers,
Code of Conduct for Suppliers (which includes intermediaries including Consultants/Agents/ Business Partners/Vendors),
Whistle Blower Policy, Whistle-Blowers Policy for Vendor and Channel Partners’ and other detailed procedures to ensure
compliance and uphold the principles of ABAC policy. All forms of bribery and corruption are prohibited, and adequate
measures are in place to prevent such instances. The Company maintains a policy of ‘Zero Tolerance’ of any practice that
may be deemed to be corruption, either active or passive.
5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law
enforcement agency for the charges of bribery/ corruption:
FY 2023-24 FY 2022-23
Directors 0 0
KMPs 0 0
Employees 0 0
Workers 0 0

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

FY 2023-24 FY 2022-23
Number Remarks Number Remarks
Number of complaints received in relation to issues of Conflict of 0 – 0 –
Interest of the Directors
Number of complaints received in relation to issues of Conflict of 0 – 0 –
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.
No cases or complaints received in the above matters.
8. Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured) in the
following format:
FY 2023-24 FY 2022-23
Number of day of accounts payables 142 166

9. Open-ness of business
Provide details of concentration of purchases and sales with trading houses, dealers, and related parties
along-with loans and advances & investments, with related parties, in the following format:
Parameter Metrics FY 2023-24 FY 2022-23
Concentration of a. Purchases from trading houses as % of total purchases
Purchases 6 b. Number of trading houses where purchases are made from
Not estimated
c. Purchases from top 10 trading houses as % of total purchases from trading
houses
Concentration of a. Sales to dealers / distributors as % of total sales
Sales b. Number of dealers / distributors to whom sales are made
Not applicable
c. Sales to top 10 dealers / distributors as % of total sales to dealers /
distributors
Share of RPTs in a. Purchases (Purchases with related parties / Total Purchases) 3.26% 3.11%
b. Sales (Sales to related parties / Total Sales) 1.23% 1.14%
c. Loans & advances (Loans & advances given to related parties / Total loans & 16.68% 31.85%
advances)
d. Investments (Investments in related parties / Total Investments made) 67.58% 62.87%
6 Currently not estimated since purchases from trading houses are not tracked.

LEADERSHIP INDICATORS
1. Awareness programmes conducted for value chain partners on any of the Principles during the FY:
Total number % age of value chain partners
of awareness covered (by value of business
Sr.no Topics / principles covered under the training
programmes done with such partners) under
held the awareness programmes
1 3 Basics of Sustainability, regulatory landscape and BRSR, L&T’s policies ~410 participants representing
and Code of Conduct focusing on health and safety, human rights and various supply chain partners;
environment parameters, ESG maturity assessment conducted by the comprises ~37% of L&T’s purchase
Company and its results, sharing of good practices on ESG and work order by value

The Company undertakes several initiatives to create awareness amongst its supply chain partners, contractors and
sub-contractors on key issues related to the nine Principles of the National Guidelines for Responsible Business Conduct.
The awareness programmes conducted can be broadly classified into two segments i.e. Safety and Sustainability:
a) Safety: There are several training and sensitization sessions conducted for the contractual workmen working in the
premises and project sites. This includes EHS induction, toolbox talks, training on use of protective gear, EHS training
for front line supervisors, sub-contractors, any job specific trainings such as working at height, excavation, marine
safety, emergency response, occupational health, material handling, tunnel safety, hot work, fire. Any individual

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including employees, workmen, vendor partners, clients and other personnel need to undergo compulsory safety
training before entering the project site/plant/any other location. Safety related trainings are not covered in the table
above. For details of trainings provided to the workers, refer to Q1 of this Principle.
b) Sustainability and Responsible Business Practices: In FY 2023-24, the Company scaled up its awareness and
training programmes for its supply chain partners on sustainability. Three online sessions were targeting the top
500 supply chain partners and around 410 participants joined these sessions. A two-hour module has been created
covering topics such as fundamentals of sustainability, emerging regulatory landscape, BRSR principles, how the
Company is incorporating sustainability in supply chain, ESG assessment being conducted by the Company and lastly,
preparedness for the forthcoming years. Additionally, during ESG assessment conducted for the top 200 supply chain
partners, handholding sessions were conducted to align them with the purpose, parameters, evidence required to
complete the assessment.
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 for management of conflicts of interests involving members of the Board which may arise
due to Directors joining the Boards of other companies, and even conflicts which could take place during normal business
activities. The process allows the Directors to recuse themselves from the discussions pertaining to the conflict of interest.
The Directors must exercise their responsibilities in a bona fide manner in the interests of the Company. They 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.
FY 2023-24 FY 2022-23 Details of improvements in environmental and social impacts
R&D 5.7% [9.6 Cr] 2.3% [3 Cr] Replacing old equipment with new or higher energy efficiency or productivity;
Capex 3.3% [76.5 Cr] 3.6% [68.7 Cr] Trucks/vehicles using low emission fuel e.g., CNG trucks; solar PV modules for
rooftop solar, solar powered equipment e.g., light masts, equipment for recycling
waste or non-virgin materials into usable materials e.g., manufactured sand plants,
RO treatment plant, sewage treatment plant, water flowmeters for monitoring,
bio-digestor for canteen waste, facilities for skill training institutes

2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No)
L&T is committed to incorporating sustainability that encompasses its supply chain partners viz. vendors, contractors,
service providers and distributors through a dedicated Green Supply Chain Policy and its Code of Conduct.
Furthermore, L&T expects and urges its suppliers to introduce suitable processes, functions and management systems
within their organisations that support such compliance and drive continuous improvement with regards to the
requirements included in the Code of Conduct. This Code of Conduct guides all supply chain partners to engage in
ethical, responsible and legal business practices in their operations and adhere to ESG standards. L&T expects the
suppliers to comply with all applicable regulatory requirements and implement policies and procedures, and provide
training, as deemed necessary within their organisation. The Code of Conduct is built on three pillars:
A. Promote Environmental Sustainability: All suppliers to support a precautionary approach to environmental
issues and undertake initiatives to promote better environmental responsibility.
B. Commitment to Human Rights, Labour and the Society: Suppliers to support, respect and protect human
and labour rights and make sure their organisation/entity is not complicit in any kind of abuses and/or violations.
C. Ethical Integrity and Legality: Suppliers to demonstrate the highest standard of integrity, ethics and business
conduct.

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The Company has adopted various methodologies for sustainable sourcing. Some are stated below:
• The supply chain partners were evaluated for sustainable sourcing wherein the Company checked their
adherence to ISO 14001:2015, 45001:2018, SA8000 and any other related standards and frameworks.
• It is mandatory for supply chain partners to acknowledge the clauses and sign the Code of Conduct of
Company, which includes commitment to environmental protection and conservation such as reduction of
resource consumption, waste generation, pollution prevention; social aspects such as commitment to human
rights, community engagement, ethics and various governance parameters. This is a mandatory step during
vendor registration and onboarding process.
• The Company has also started assessing its supply chain partners on ESG parameters. It was initiated in
FY 2022-23 with 25 partners and scaled up to top 200 (186 unique) in FY 2023-24. The assessment is based on
the response and evidence provided to the Company on parameters related to the environment, human rights,
CSR, health, safety and governance.
• Three awareness sessions were conducted targeting the top 500 supply chain partners during the year to orient
them towards ESG requirements and expectation of the Company.
The assessment in the coming years will be more comprehensive and structured for improving ESG orientation as
well as the performance of the suppliers. Additionally, the awareness sessions will also be ramped up to bring the
partners up to speed keeping in mind the increased scrutiny and regulatory requirements on the subject. The overall
governance, oversight and review of the supply chain initiatives is undertaken by Material Council along with the
supply chain management functions led by senior leadership and supported by Corporate Sustainability.
b. If yes, what percentage of inputs were sourced sustainably?
Accounts for 32% of L&T procurement spend by value.
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): NA
(b) E-waste: NA
(c) Hazardous waste: NA
(d) Other waste: NA
The Company does not manufacture or sells any products which could be reclaimed at the end of life. However, at project
sites and manufacturing facilities, the Company has put in place systems and processes for waste management i.e.,
segregation, recycling, reuse and disposal as applicable for category of waste and complying to the relevant regulatory
requirements.
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.
Yes, in 2022, the Ministry of Environment, Forest and Climate Change (MoEFCC) made amendments to EPR Rules related
to plastic waste, e-waste and battery waste. As a result, the coverage of the Rules was extended to importers who
could generate plastic waste from packaging of imported materials, e-waste which could be generated from imported
electronic or electrical items as well as battery waste which could be generated from imported batteries or equipment
containing batteries. The Company has obtained registration as an importer under the EPR Rules for all three waste
categories. To comply with EPR Rules as well as to improve the waste management system, the Company has improved
its processes including conducting awareness sessions for the relevant departments/functions and onboarded service
providers for meeting compliance requirement.

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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. If NA, provide
details.
Product portfolio constitutes ~6% of the Company’s revenue. In the past, the Company has conducted LCA for certain
products, please refer to BRSR of Integrated Annual Report FY 2022-23.
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.
Not applicable.
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 2023-24 FY 2022-23
Fly ash and Ground Granulated Blast-furnace Slag (GGBS) in place of Cement 8.7 6.5
by value

Note: Previously reported as 10.2% in FY 2022-23 was based on consumption quantity of fly ash and GGBS as a % of
total bulk material (fly ash, GGBS and cement)
The data reported above is based on the procurement value as a percentage of total bulk material procured (fly ash,
GGBS and cement). In projects related to infrastructure sector (contracts from the clients), IS or other relevant codes
prescribe limits of using fly ash and GGBS based on concrete use and requirements of the structure. While the Company
tries to maximize use of recycled (waste) materials, the design mix of concrete and approval for use of the same in the
project is controlled by the clients.
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:

FY 2023-24 FY 2022-23
Particulars Safely Safely
Re-Used Recycled Re-Used Recycled
Disposed Disposed
Plastics (including packaging)
E-waste Not Applicable Not Applicable
Hazardous waste

The Company operates on the B2B model, and the product portfolio is ~6% of total turnover. Some of the key products
include reactors and pressure vessels, heat transfer equipment, process plant internals, etc; primarily made from stainless
steel, titanium and have a long life-cycle, in few cases, may be up to 35 years. The products or packaging of these
products do not generate any material which could be reclaimed at the end of life.
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
‘Not applicable’ for the Company; reason stated above in Q4.

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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 7 facilities 8
(A) Number Number Number Number Number
% (B/A) % (C/A) % (D/A) % (E /A) % (F /A)
(B) (C) (D) (E) (F)
Permanent
Employees
Male 48,019 48,019 100 48,019 100 Not applicable 0 0 8,255 17.2
Female 4,205 4,205 100 4,205 100 4,205 100 Not applicable 1,827 43.4
Total 52,224 52,224 100 52,224 100 4,205 100 0 0 10,082 19.3
Other than
Permanent
Employees
Male 4,793 4,793 100 4,793 100 Not applicable 0 0 1,328 27.7
Female 248 248 100 248 100 0 0 Not applicable 214 86.3
Total 5,041 5,041 100 5,041 100 0 0 0 0 1,542 30.6


7 The Company does not have a paternity leave policy.


8 Data is based on the coverage of creche facility i.e. available to the employees in a particular location and not as per usage of creche facility.

^ Percentage calculated is based on the coverage of female employees only.

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 Number Number Number Number
% (B/A) % (C/A) % (D/A) % (E/A) % (F/A)
(B) (C) (D) (E) (F)
Permanent
Workers
Male 2,073 2,073 100 2,073 100 Not applicable 0 0 1,303 63
Female 6 6 100 6 100 6 100 Not applicable 4 67
Total 2,079 2,079 100 2,079 100 6 100 0 0 1,307 63
Other than
Permanent
Workers
Male 3,45,287 60,390 17.5 3,45,287 100 Not applicable 0 0 11,228 3.3
Female 2,807 794 28.3 2,807 100 1,530 54.5 Not applicable 515 18.3
Total 3,48,094 61,184 17.6 3,48,094 100 1,530 100 0 0 11,743 3.4

^ Percentage calculated is based on the coverage of female employees only.

c. Spending on measures towards well-being of employees and workers (including permanent and other
than permanent) in the following format -
Particulars FY 2023-24 FY 2022-23
Cost incurred on well-being measures as a % of total revenue of the 0.73% 0.74%
Company 927.3 Cr 819.0 Cr

Well-being measures considered are expenditure towards life insurance, health insurance, medical insurance,
workmen compensation, staff welfare. The Company spends considerable amount towards protective gear and
safety related items; currently not estimated separately.

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2. Details of retirement benefits, for Current Financial Year and Previous Financial Year.
FY 2023-24 FY 2022-23
No. of No. of
Deducted and Deducted and
employees No. of workers employees No. of workers
Benefits 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 Yes 100 100 Yes
Gratuity 100 100 Yes 100 100 Yes
ESI 100 100 Yes 100 100 Yes

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?
Most of the Company’s permanent premises are accessible to differently abled people with wheelchairs (viz. through
ramps, toilets, lifts). The Company is taking steps to provide the right infrastructure to support the needs of individuals
with disabilities and preparing the remaining premises for accessibility infrastructure.
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 Policy is available at https://www.larsentoubro.com/corporate/about-lt-group/corporate-policies/. The Company is
committed to providing equal opportunities in employment and creating an inclusive work environment. The Policy clearly
sets out the guiding principles which drive the Company to ensure equal and equitable opportunity for all and uphold the
highest standards of ethics, values and governance across the people practices.
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 Not applicable
Female 89.6 85.9 Not tracked
Total 89.6 85.9 – –
6. Is there a mechanism available to receive and redress grievances for the following categories of employees
and workers? If yes, give details of the mechanism in brief.

Particulars Yes/No If Yes, then give details of the mechanism in brief

Permanent Yes Registration and redressal are done through Union and standing orders/Joint Management Council/
Workers Complaints and Grievance Committee.

Other than Yes During the year, the redressal mechanism has been more formalized and structured especially for the
Permanent construction business. Any grievance may be raised by the worker oneself or on behalf of the group. It
Workers may be related to working conditions, living conditions at the workmen habitat/labour colony, wage-
related issues or any other issues related to their employment.
Any project location/establishments with 20 or more workers should have a Grievance Redressal
Officer (GRO), appointed by the Project Manager from any of the personnel from the functions (Project
Accounts and Admin In charge, Project Safety In charge) and communicated to the relevant stakeholders
(Admin/Industrial Relations/Accounts head). The mechanism includes registration of grievance,
resolution, timeline for resolution, escalation, feedback and closure, record-keeping and reporting and
periodic review and audits.

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Particulars Yes/No If Yes, then give details of the mechanism in brief

Over 500 GROs have been appointed across project sites to ensure grievance registering, resolving,
meeting timelines, managing escalations, closing cases, generating reports, and facilitating regular
reviews and audits in a systematic way. Grievance may cover issues related to health and safety, working
conditions, wages, living conditions, and so on. A toll-free number is available for recording grievances
of the workers, operational 24x7 over and above the oral and/or written complaints which were already
being recorded. This provides a fair and transparent process for resolving complaints and ensuring equal
and fair treatment.

Permanent Yes The digital platform HEERA serves as the primary channel for addressing employee grievances. The
Employees grievances may be related to concerns regarding work, working relation, workplace and working
conditions, salary-related matters, disputes related to claims settlement, reimbursement, and recovery of
dues and leaves, issues pertaining medical insurance and policy, inconsistencies in policy implementation,
violation of Code of Conduct, miscellaneous issues such as system portal functionality or any other issue
affecting the employment of an employee.
Grievances should first be addressed by employees with their Immediate Supervisor seeking resolution.
In the absence of an assigned Immediate Supervisor, employees may escalate the matter to the next level
supervisor. If the employee remains dissatisfied then alternately, they can initiate a grievance ticket via
HEERA chatbot. The designated HR officer is responsible for resolution of the grievance and based on
the severity and complexity, the timelines and escalation (with a maximum of three level) may vary.

Other than Yes Grievances are submitted to respective HR coordinators who are responsible for resolution.
Permanent
Employees

7. Membership of employees and workers in association(s) or Unions recognised by the listed entity:

FY 2023-24 FY 2022-23
No. of No. of
employees/ employees/
Total workers in Total workers in
employees/ respective employees/ respective
Category
workers in category, % (B / A) workers in category, % (D / C)
respective who are respective who are
category (A) part of category (C) part of
association(s) association(s)
or Union (B) or Union (D)
Permanent Employees 52,224 0 0 46,935 0 0
- Male 48,019 0 0 43,448 0 0
- Female 4,205 0 0 3487 0 0
Permanent Workers 2,079 2,079 100 2,104 2,104 100
- Male 2,073 2,073 100 2,098 2,098 100
- Female 6 6 100 6 6 100

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8. Details of training given to employees and workers:

FY 2023-24 FY 2022-23
On Health and On Skill On Health and
Category On Skill upgradation
Total (A) safety measures* upgradation* Total (D) safety measures*
No. (B) % (B / A) No. (C) % (C / A) No. (E) % (E / D) No. (F) % (F / D)
Employees
Male 52,812 21,692 41 52,462 99 46,935 34,046 73 25,928 55
Female 4,453 2,197 49 5,837 100 6,163 3,125 51 2,503 41
Total 57,265 23,889 42 58,299 100 53,098 37,171 70 28,431 54
Workers
Male 3,47,360 3,91,715 100 90,802 26 2,76,633 3,06,801 100 45,180 16
Female 2,813 1,284 46 135 5 1,224 1,125 92 174 14
Total 3,50,173 3,92,999 100 90,937 26 2,77,857 3,07,926 100 45,354 16
*The number of trainings conducted are higher than the number of employees and workers due to the attrition and new joinees.


9. Details of performance and career development reviews of employees and workers:

FY 2023-24 FY 2022-23
Category
Total (A) No. (B) % (B/A) Total (C) No. (D) % (D/C)
Employees
Male 48,019 48,019 100 43,448 41,286 95
Female 4,205 4,205 100 3,487 3,487 100
Total 52,224 52,224 100 46,935 44,773 95
Workers
Male 2,073 2,073 100 2,098 1,766 84.2
Female 6 6 100 6 6 100
Total 2,079 2,079 100 2,104 1,772 84.2

10. Health and Safety Management Systems:

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, the occupational health and safety management system has been implemented by the Company and the work
locations i.e., project sites, manufacturing facilities, campuses and offices are covered. In line with L&T’s EHS vision
of Zero Harm and Corporate Environment, Health & Safety Policy, management systems have been implemented
in accordance with ISO 45001:2018. The EHS Management System outlines a structured approach necessary to
manage risks and performance improvement in a consistent manner. The management system is assessed by third
party assurance agencies e.g., DNV, TUV and certified according to the requirements of applicable standards viz. ISO
45001:2018.
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’s EHS Management System has risk evaluation and management as one of its key components. The
work locations are required to undertake to implement the EHS risk management as an integral part of their business
operations. EHS risk management process covers five steps: hazard identification, risk evaluation and assessment,
risk mitigation and control measures, monitoring and documentation, and periodic reporting and update. Hazard
identification and risk assessment is one of the crucial processes followed across work locations. The relevant
stakeholders including construction engineers, design and planning engineers, production-in-charge personnel and
EHS team members as well as workmen are involved in the risk assessment and risk management process. Safe Work
Method Statements, as relevant for processes, have been developed and deployed prior to the start of any work.
c. Whether you have processes for workers to report the work-related hazards and to remove themselves
from such risks. (Y/N)
Yes, the Company has implemented systems and processes for workers to report work and health related hazards
and remove themselves from such risks. EHS-conscious workmen are identified and deployed at workplaces to

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identify hazards and report them for immediate corrective action. Worker representatives are also part of the Project
EHS Committee. Monthly EHS Committee meetings are conducted where workmen’s representatives participate to
report the work and health related hazards, risks, concerns at the workplace and discuss the mitigation measures.
d. Do the employees/workers of the entity have access to non-occupational medical and healthcare services?
(Yes/No)
Yes, medical centres and first aid facilities are available for both employees and workers. In addition, there are
location specific tie-ups with hospitals and nursing homes proximal to the project sites to ensure a prioritized access
to medical facilities. Work locations such as project sites, manufacturing locations also have ambulances on standby
to handle any emergencies.
11. Details of safety related incidents, in the following format:

Safety Incident/Number Category FY 2023-24 FY 2022-23

Lost Time Injury Frequency Rate (LTIFR) (per one Employees 0.04 0.04
million-person hours worked) Workers 0.07 0.06
Total recordable work-related injuries Employees 6 8
Workers 79 70
Number of fatalities* Employees 0 1
Workers 23 13
High consequence work-related injury or Employees 1 1
ill-health (excluding fatalities) Workers 1 15
*Mission Zero Harm is the guiding principle for the Company with respect to safety performance, and it is extremely unfortunate to report an
increase in fatalities in FY 2023-24 (13 in FY 2022-23). The Company has taken this as a matter of significant concern and all the incidents were
investigated in depth. Key reasons which contributed to the increase were poor strength of supporting structure resulting in cave-ins/landslides
and inadequate safety protocols while working at heights. The issue has been compounded by significant jump in number of contract workmen,
and high degree of churn. The Company has taken corrective actions such as enhanced supervision, more intensive toolbox talks, different
coloured helmets for newly inducted workers, expert consultation for high-risk activities (specially for remote areas), more engagement with larger
subcontractors. The Company is fully committed to improving safety performance and ensuring a safer workplace.

12. Describe the measures taken by the entity to ensure a safe and healthy work place.
The Company is committed to ensuring that all employees and workers are working in a safe environment and have
the necessary support to lead a healthy life. EHS, HR, Admin and Medical teams are the key functions undertaking
initiatives on a continuous basis to ensure all needs for a safe and healthy workplace are met. Safety is a priority for
the Management due to nature of the business i.e., projects executed with use of substantial involvement of workers
and encapsulated in L&T’s Mission Zero Harm as well as driving force behind L&T’s L.I.F.E. (Live Injury-Free Everyday)
Framework. The Management provides strong, demonstrable, and visible leadership and commitment towards
implementation of this framework through allocation of adequate resources, assigning responsibilities and through
personal examples and actions. As a part of the EHS Management System, each project site is required to prepare a
project specific EHS plan before commencing the execution. This plan identifies the hazardous operations in the scope
of work, assesses risks from such hazards and management of risks through proactive measures and controls. Similar
process is followed for the manufacturing facilities/campuses. To strengthen the processes and systems, internal audits are
conducted at various levels both by the businesses themselves as well as inter-businesses and external audits are carried
out through accredited third-party agencies. For certain high importance/priority project sites, frequency and depth of
audit is increased depending on the risk profile of such projects. Digital systems/applications play a significant role in
identifying hazards as well as enabling capturing of risks as well as learnings from execution. Use of advanced technology
such as vison analytics/AI in enhancing these applications. Digital technologies e.g., AR/VR are also leveraged to enhance
training and awareness of employees and workers. To enhance the standard practices recommended, the Company
has taken other measures which include Implementation of HSE Surveillance Rating, Knowledge management through
capturing of lessons learnt and special sessions by SMEs (Subject Matter Experts), Implementation of Behaviour Based
Safety systems, and specialized training modules for high-risk activities. 11 project teams of the Company demonstrated
the strong commitment to EHS management and performance by winning the coveted Sword of Honour by British Safety
Council.

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13. Number of Complaints on the following made by employees and workers:

FY 2023-24 FY 2022-23
Pending Pending
Benefits Filed during Filed during
resolution at Remarks resolution at Remarks
the year the year
the end of year the end of year
Working Conditions 117 NIL – 11 NIL –
Health & Safety 135 NIL – 14 NIL –

14. Assessments for the year:

Percentage of your plants and offices that were assessed (by entity or statutory authorities or
third parties)
Health and safety practices Majority of the locations are either certified by an independent third party or complying with ISO
45001:2018. The units undergo periodic external audits to ensure adherence and verify compliance
Working Conditions
with the applicable standards and guidelines. Also, the key manufacturing facilities are certified by an
independent third party on SA8000 standards, a globally recognized social certification programme
on human rights and labour management. Furthermore, an internal assessment was conducted for
manufacturing facilities, offices to understand potential human rights risks through Admin/IR/Project/
HR/EHS in charge.

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 commitment to safety is encapsulated in ‘Mission Zero Harm’, driving the safety performance initiatives.
Health, Safety, and Environment (HSE) in the Company is based on the ISO 45000 and 14000, ensuring continual
improvement. In response to recent incidents, thorough investigations have been conducted to identify root causes and
corrective actions have been implemented.
The leadership’s commitment to HSE considerations fosters a robust safety culture. To enhance the existing HSE risk
control measures, the permit-to-work system has been strengthened and reinforced controls for scaffolding, work at
height, material handling, excavations, hot works, and lifting operations. These measures are complemented by increased
cross functional audits and inspections, intensive toolbox talks, and the use of distinctively coloured helmets for new
workers to ensure they receive special attention. Comprehensive Behavioural Based Safety (BBS) training has been
conducted to reduce at-risk behaviour, and we have engaged experts for high-risk activities, especially in remote areas, to
mitigate risks.
The Company invests in ongoing training to enhance employee competency in identifying and mitigating HSE risks.
Initiatives like HSE observations, interventions, and proactive knowledge sharing enable to address potential hazards.
Continuous reinforcement of HSE mechanisms, along with effective supervision and safety leadership, further ensure a
safe working environment.
The Company leverages technology and use digital tools for real-time monitoring, drone surveillance, VR training,
AI-powered predictive risk mapping, digitalized permit-to-work systems, inspection and audit processes, and data
management. These initiatives reflect the dedication of the Company to improve safety performance and create a safer
workplace.
LEADERSHIP INDICATORS
1. Does the entity extend any life insurance or any compensatory package in the event of death of
a. Employees (Y/N): Yes
b. Workers (Y/N): Yes
The Company extends life insurance coverage through a comprehensive health insurance policy which covers 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.
The Company ensures that statutory dues payable are deposited on time. Proof of payment, deposit of statutory dues
e.g., records for PF deposit for workmen is maintained, GST payment by the suppliers is matched through GST portal to
ensure compliance, amongst other controls.

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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
Benefits employment or whose family members have
been placed in suitable employment
FY 2023-24 FY 2022-23 FY 2023-24 FY 2022-23
Employees 1 2 0 0
Workers 24 28 0 10

4. Does the entity provide transition assistance programs to facilitate continued employability and the
management of career endings resulting from retirement or termination of employment? (Yes/No)
Yes, the Company provides transition assistance programmes to facilitate continued employability and the management
of career endings resulting from retirement based on merit.
5. Details on assessment of value chain partners:
Percentage of value chain partners (by value of business done) that were assessed
Health and safety practices The Company identified top 200 (unique 186) supply chain partners comprising 38% of FY 2022-
Working Conditions 23 spend. During the year, the Company assessed these supply chain partners on certain ESG
parameters that includes environmental management, performance, human rights, CSR, health and
safety practices, corporate governance, and ethical business practices through a questionnaire. This
questionnaire was developed keeping in mind the regulatory compliances, BRSR disclosures, global
standards and so on. The remote/desktop assessment was based on interactions with the supply chain
partners, documents and evidence shared. Post assessment, the gaps identified during the assessment
were shared with the supply chain partners along with suggestions on the course of action for
improving overall sustainability performance.

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.
No significant risks or concerns arose from the assessment during the year. It is ensured that the supply chain partners
engaged with the Company understand and sign the Code of Conduct of the Company, a mandatory requirement during
vendor registration and onboarding process. During the year, the sessions conducted for the supply chain partners on
ESG covered the Company policies viz. Green Supply Chain Policy, Sustainability Policy, Whistleblower Policy and Code of
Conduct. In case any concern/observations/risks are arising, may not be limited to during assessment, the Company takes
suitable corrective and preventive action as necessary.

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 businesses are in EPC projects (Engineering, Procurement, Construction) and Hi-Tech Manufacturing. The Company
aims to balance the needs, interests and expectations of various stakeholders with those of the business and deliver
long-term value. The Company undertakes a structured materiality assessment process through an independent third
party, to identify key stakeholder groups and take the inputs from these stakeholders to finalize the material topics for
the Company. As a part of the exercise, the stakeholders were identified based on the following parameters:
• Degree of Dependency: groups who are directly dependent on the Company’s activities, products, services,
performance, or on whom the Company is dependent to operate. For example, customers, government as clients,
employees including workmen, supply chain partners, investors.
• Degree of Responsibility: groups or individuals to whom the organization has, or in the future may have, legal,
commercial, operational or ethical/moral responsibilities. For example, community, shareholders.

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• Sphere of Influence: groups or individuals who can have an impact (direct or indirect) on the Company’s strategic
decision-making and operations. For example, senior management and leadership, regulatory bodies.
• Diverse perspectives: groups or individuals with different perspectives who facilitate understanding the state of
affairs, national and global. For example: media, NGO partners.
2. List of stakeholder groups identified as key for your entity and the frequency of engagement with each
stakeholder group.
The key stakeholders of the Company are Government, customers including private sector and public sector entities,
employees and workers, suppliers, shareholders, investors, communities and NGO partners, Regulatory bodies and
media. The detail of engagement is covered in the ‘Stakeholder Engagement’ section of the Integrated Annual Report
FY 2023-24.
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 for managing and monitoring ESG related areas. Few of these are: CSR
& Sustainability Committee9, Risk Management Committee, Stakeholders’ Relationship Committee, Investor Relations,
EHS Council, Material Council, Green Campus Steering Committee. The CSR & Sustainability Committee9, Board Risk
Management Committee and Stakeholders’ Relationship Committee are constituted by the Board and are chaired by an
Independent Director. Other Committees have been internally constituted. 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
relevant areas. Performance, concerns and issues related to ESG related topics are extracted from these reviews and a
consolidated performance report/outcome is presented to the Board in their quarterly meeting. The Company has also
been conducting stakeholder engagement exercises from time to time on ESG topics. These stakeholder engagement
exercises follow a structured approach with respect to the frequency, delegation and reporting of outcome, including
stakeholders’ feedback to the Board.
9 Earlier called CSR Committee

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.
The Company continuously engages with its stakeholders to strengthen relationships, foster trust and thus enable
the Company to be informed of their expectations, concerns as well as opportunities for value creation. A structured
approach and process is in place for engaging with the stakeholders for identifying, prioritising and addressing their
needs and concerns in a consistent and systematic manner. Below are a few instances of how stakeholder inputs have
been incorporated into policies and activities:
A. Communities: CSR projects are chosen based on social and developmental needs in the regions where the Company
is operating, with the overall goal of promoting inclusive growth by empowering communities and accelerating
development especially the vulnerable and marginalized communities. This is being accomplished by providing
access to water and sanitation facilities, education and healthcare services, and skill building for underprivileged
youth. L&T works along with the communities around its factories, campuses and establishments for health and
education services. Water-stressed blocks are selected for water and sanitation projects. Skills development centres
are located across India to mobilize youth from different states. The Company may partner with the government and
communities to create multiplier effect of its social programmes. The mode of implementation of CSR programmes
will include a combination of direct implementation and/or through partners such as NGOs, trusts, academic
institutions, business associates, registered societies.
After identifying a location, a need assessment is conducted, and a detailed project report is prepared. The project
report specifies socio economic status of the location viz. number of villages or urban slum pockets, number of
students or trainees, the schools/households to be covered, current facilities, and specific vulnerable community
groups such as the SC/ST population and their needs and concerns. The need assessment involves participatory rural
appraisal (PRA), wherein beneficiaries participate in identifying specific issues, vulnerable populations, stakeholders,
and potential challenges in implementing the interventions. The project report includes proposed interventions,

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outcomes and measurable indicators. Based on the project report, proposals are invited from reputed NGOs with a
presence in the selected location and the implementation partner is carefully selected after thorough due diligence.
During implementation, stakeholder groups are formed, such as Self-Help Groups, Village Development Committees,
School Management Committees, and Health Committees, to participate in decision-making and implementation.
These groups guide and monitor the interventions at the community level, such as monitoring the use of water from
a common source created by the project, regulating the use of water under the water distribution system, measuring
and recording water levels in intervention wells, encouraging communities to use household toilets, and monitoring
and regulating the use of common pasture lands. There is continuous dialogue between the implementation
partners, communities and CSR teams to ensure clear understanding of the issues the communities face and the
possible solutions. The initiatives are re-aligned, if the need be, for the best interests of the community.
For details of CSR intervention, please refer to ‘Social and Relationship Capital’ section of the Integrated Annual
Report FY 2023-24.
B. Employees and Workmen: There are structured systems for employee communication and engagement that starts
from project director/business heads/senior management visits and interactions with employees, HR manager visits
and townhalls are held from time-to-time for interactions with employees and the workers. There are Employee
Relation Officers at the project sites and with support of the Workmen Development Centres, they oversee and
interact, take workers’ feedback from time-to-time on various aspects of living, work conditions, health and welfare.
Depending on the feedback received from the channels as stated above, including the survey findings, HR heads of
individual businesses, with the support of their cluster/project HR managers, also undertake surveys as per the need
on various topics related to employee development, engagement and effectiveness. The findings are discussed with
project/business heads and corrective actions are taken to enhance the organisational effectiveness. Additionally,
there are designated Grievance Redressal Officers (GRO), Industrial Relation, Admin functions who oversee the
health, safety, wellbeing, working conditions, living conditions of the workmen. These GROs are also responsible
for communication with all workers at the time of Screening/Induction/Onboarding and at regular intervals such
as pep-talk about channels (toll free number, WhatsApp, verbal, registers) to raise grievances, and the mechanism
for settlement of grievances and similar communication with the sub-contractors working at the project site.
Remediation and corrective action are taken as deemed necessary to resolve the grievances.
C. Shareholders: In addition to its ongoing interactions with analysts representing institutional equity investors, the
Company conducted an investor feedback survey to build into its long-term strategic plan - ‘Lakshya 2026’. As
part of this exercise, several suggestions from key investors and analysts were received on ESG related aspects such
as energy transition, diversity and inclusion, governance. The Company also received suggestions from ESG rating
agencies and funds as well as improving granularity of ESG disclosures. This has resulted in improvement of processes
wherever necessary and feasible. The quality and granularity of ESG disclosures have also enhanced in the past
couple of years especially after the introduction of BRSR and Core KPIs. Recognising the growing interest in this area
and factoring in feedback from investor interactions, the Company has been conducting regular interactions with
relevant stakeholders including global funds, institutional investors, rating agencies, etc., to keep them updated
about activities and progress on various initiatives being undertaken to achieve its carbon and water neutrality goals.

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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 are given below:

Vulnerable group Concerns Action Taken Impact

Farmer community Drought, • Organised farmers community to form • Rise in ground water table and water
in water stressed Poverty, Migration Village Development Committees (VDC) made available to population of
and drought prone and Farmers Producer Organisation 1,16,637 from 9 ICDP Locations and
locations (FPO) 980 hectares land protected from direct
• Water made available with waste water run-off in three ICDP locations
and conservation intervention • Increase in household agricultural
• Capacity building in sustainable income
agricultural practices • Reverse migration
• Maintenance of water structures by the
VDC along with Panchayat
Rural population Open defecation • Community awareness regarding • 4,821 toilets constructed and 41
without access to leading to health making villages open defecation free villages are made ODF and 26 are under
proper sanitation issues and social (ODF) construction
facilities disgrace • Construction of toilets after ensuring • Women felt safe to use household
water availability toilet and saved from embarrassment
• Village level monitoring committee and social disgrace
formed to ensure ODF status of the
village
Disadvantaged rural Gender related issues • Women were part of need assessment, • 237 SHGs formed in three ICDP
women viz. no decision making and their critical concerns were locations with ¢ 125.6 lakh savings
power in household prioritised • Women are assuming community
and community related • Village level women groups formed and leadership positions e.g. President
issues organised in Self Help Groups (SHGs) of VDC, FPO formed with all women
• Ensured equal representation of women board members
in VDCs and Community level decision
making
Underprivileged Unaffordable and • Affordable general health services along • 1,78,239 population accessing the
community inaccessible health with consultations in specialised clinics services
from urban and services provided through nine health centres
peri-urban areas across India and mobile health vans
Patients cannot afford • Provision of dialysis services at a • Dialysis patients taking regular
the dialysis treatment concessional rate treatment at the L&T health centre
in private hospitals
Unskilled-Unemployed • Unemployed youth trained in L&T's • 10,000 youth trained every year of
youth Construction Skills Training Institutes which 60-70% get job placements
and facilitation for job placements
Students in tribal/ Students have • Providing Science, Technology, • 41,000 students took part in science
rural schools or difficulties in learning Engineering and Math (STEM) Kits for exhibitions
urban resource science and maths hands on learning in science and math • Students making their own STEM
poor schools subjects and no access and digital infrastructure, digital content models and presenting solutions to
to digital and hands on mapped to the curriculum and training everyday problem by using technology
education to teachers to conduct classes using
digital media • Approximately 6,000 students of
Grades VI-VIII participated in the intra
• National STEM Challenge was and inter-school level competitions.
conducted to funnel STEM talent by From among them, 300 teams (600
showcasing students' Innovative Ideas, children) were chosen to participate at
and create opportunities to connect regional level, of which 24 teams (50
children to higher level STEM learning children) from Chennai, Coimbatore,
Hazira, Vadodara, Talegaon and
Mumbai made it to the L&T National
STEM Challenge. Three winning teams
and their schools were awarded prizes
that included advanced STEM kits and
support to upgrade Science lab
School students School Toilets • Constructed toilet blocks in the schools • Increase in attendance of girls
without access to dilapidated or not for students
clean toilets functional

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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 2023-24 FY 2022-23
No. of No. of
Category employees/ employees/
Total (A) % (B/A)10 Total (C) % (D/C)
workers workers
covered (B) covered (D)
Employees
Permanent 52,224 21,646 41 47,757 12,082 25
Other than permanent 5,041 5,873 100 5,489 3,292 60
Total Employees 57,265 27,519 48 53,246 15,374 29
Workers
Permanent 2,079 2,079 100 2,104 2,104 100
Other than permanent 3,48,094 3,48,094 100 2,75,753 2,75,753 100
Total Workers 3,50,173 3,50,173 100 2,77,857 2,77,857 100
10As on 31st March’24, the number of trainings conducted are higher than the number of employees and workers considering the attrition and
new joinees.

Human rights awareness is covered through various informal processes for the workmen. Induction is a mandatory
requirement for any workmen joining at any site/location/project. Induction includes, but not limited to, topics such as
wage breakup, PF deduction, health and safety, account creation for wage deposit, KYC. Additionally, there are systems
in place to ensure that there is no child labour (submission of Aadhar card as proof of age), no forced labour through
proof of employment (wage slip, issuance of gate pass/ID card). Also, there are daily toolbox talks which covers few of
the above aspects, apart from job role. The key locations of the Company are also certified by SA8000 by an independent
third party which covers elements such as child labour, forced labour, discrimination, working hours, remuneration,
freedom of association, grievance redressal mechanism.
2. Details of minimum wages paid to employees and workers, in the following format:

FY 2023-24 FY 2022-23
Equal to Minimum More than Minimum Equal to Minimum More than Minimum
Category
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 52,224 0 0 52,224 100 46,935 0 0 46,935 100
Male 48,019 0 0 48,019 100 43,448 0 0 43,448 100
Female 4,205 0 0 4,205 100 3,487 0 0 3,487 100
Other than 5,041 0 0 5,041 100 6,163 279 4.5 5,884 95.5
permanent
Male 4,793 0 0 4,793 100 5,893 271 4.6 5,622 95.4
Female 248 0 0 248 100 270 8 2.9 262 97
Workers
Permanent 2,079 0 0 2,079 100 2,104 0 0 2,104 100
Male 2,073 0 0 2,073 100 2,098 0 0 2,098 100
Female 6 0 0 6 100 6 0 0 6 100
Other than 3,48,094 3,04,005 87.3 44,088 12.7 2,75,753 2,71,035 98.3 4,718 1.7
permanent
Male 3,45,287 3,01,677 87.4 43,609 12.6 2,74,535 2,69,855 98.3 4,680 1.7
Female 2,807 2,328 83 479 17 1,218 1,180 97 38 3.1

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3. Details of remuneration/salary/wages, in the following format:

a. Median remuneration/wages:
Male Female
Median remuneration/ Median remuneration/
Particulars
Number salary/wages of Number salary/ wages of
respective category respective category
Board of Directors (BoD) - Whole Time 7 13,62,83,963 0 0
Directors
Key Managerial Personnel (KMP) 1 1,71,76,859 0 0
Employees other than BoD and KMP 52,804 9,77,099 4,453 6,76,867
Workers 2,073 9,77,315 6 12,21,632

b. Gross wages paid to females as % of total wages paid by the entity, in the following format:
FY 2023-24 FY 2022-23
Gross wages paid to females as % of total wages11 5.4 4.9


11 Wage data reported is based on the salary paid to the staff which includes permanent and other than permanent employees, and

permanent workers. It comprises total salary, perquisite, employer PF and does not include gratuity and other benefits claimed as
reimbursement. Wages paid to other than permanent workers is not considered. The Company employs around 3,50,000 other than
permanent workers across more than 700 project sites and locations within India and abroad. Wages to other than permanent workers
are directly paid by the third party contractors. The Company monitors the wages and statutory compliances based on the wage register
submitted by the third party contractors along with the monthly invoice at project site level manually. The Company is capturing the total
payment made to contractors but the wages included therein is not tracked / collated separately. Going forward in the coming years, the
Company will explore options to capture, track and report the wages paid to other than permanent workers.

4. Do you have a focal point (Individual/Committee) responsible for addressing human rights impacts or issues
caused or contributed to by the business? (Yes/No)
The Chief Human Resources Officer is the focal point for human rights related issues at the Company level. For
implementation across the sites and manufacturing facilities, designated personnel from IR/Admin/EHS functions are
responsible for human rights and labour management. At business level, IR/Admin Heads of respective businesses are the
focal point supported by HR heads.
5. Describe the internal mechanisms in place to redress grievances related to human rights issues.
Respect and commitment to human rights is one of the elements of the Code of Conduct for employees. As a practice,
any violation of Code of Conduct can be reported to the 1st Level Reporting Authority, who will investigate and take
necessary action. However, if the violation is by the 1st Level Reporting Authority itself, then it is to be reported to the 2nd
Level Reporting Authority. In case the Reporting Authority concludes that the violation is of a grave nature, the same shall
be reported to the Whistleblower Investigation Committee for further action within a reasonable time frame.
L&T is committed to foster and create a workplace which is safe and free from any act of sexual harassment. The Policy
for protection of women’s rights at workplace has been formulated to guide the Company for redressal of sexual
harassment related complaints. This Policy is based on the laws of India and therefore the Policy is applicable to all L&T
establishments located in India including all employees, workmen, contract workers. This Policy also protects anyone
visiting the establishments of the Company, that may include clients, customers, third party contractors, vendors,
suppliers, business representatives. When sexual harassment has occurred because of an act of any third party, the
Company takes necessary and reasonable steps to assist the affected person/victim. To adhere with the provisions of the
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) and ensure
coverage across the locations in India, there are several Internal Complaints Committee (ICC) constituted as per the
provision of the POSH Act with different administrative units under their jurisdiction. These ICCs are responsible for
registering, investigating, concluding and redressing complaints received. Furthermore, the ICCs also organize workshops
and awareness sessions at regular intervals and take necessary actions needed to implement the provisions of the
Act. Additionally, two Apex Committees have also been constituted, the highest body to ensure implementation and
compliance with the Act. The Apex Committees comprise representatives of few ICCs and other senior leaders of the
Company.
Whistleblowing is a structured process, which encourages and facilitates employees to report without fear, any
wrongdoings or unethical or improper practice which may adversely impact the reputation and/or the financials of the
Company, through an appropriate forum. The Company has also formulated Whistleblower Policy for its employees and

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vendors to provide a mechanism for expressing concerns about any unethical behaviour, improper practice, misconduct,
violation of legal or regulatory requirement, unfair treatment that could adversely impact the Company’s operations,
business performance and/or reputation. The Company investigates such reported incidents in an impartial manner and
takes appropriate action to ensure that the requisite standards of professional and ethical conduct are always upheld.
6. Number of Complaints on the following made by employees and workers:

FY 2023-24 FY 2022-23
Pending Pending
Particulars Filed during resolution at Filed during resolution at
Remarks Remarks
the year the end of the year the end of
year year
Sexual Harassment 3 2 Complaints 2 0 Complaints
registered registered
and redressed and redressed
under the under the
POSH Act POSH Act
Discrimination at workplace 0 0 – 0 0 –
Child Labour 0 0 – 0 0 –
Forced Labour/ Involuntary Labour 0 0 – 0 0 –
Wages 0 0 – 0 0 –
Other human rights related issues 0 0 – 0 0 –

7. Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)
Act, 2013, in the following format:

Particulars FY 2023-24 FY 2022-23

Total Complaints reported under Sexual Harassment of Women at 3 2
Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH)
Complaints on POSH as a % of female employees / workers 12 0.04 0.04
Complaints on POSH upheld 13 1 2
12 Include all females from employee and worker category, both permanent and other than permanent.
13 ‘Upheld’ is interpreted by the Company as the complaints concluded and redressed.

There are three cases reported in FY 2023-24 under the POSH Act. One complaint has been concluded and redressed
as per the provisions of the Act and Rules. The remaining two complaints were received during Q4 FY 2023-24 and are
under inquiry within the timelines as per the Act and the Rules.
8. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
The mechanism is same as mentioned above in Question 5. The Code of Conduct for employees, senior management and
Board members sets the standard of behaviour and professional conduct expected by the Company. The Company has
Committee for the protection of women at workplace to ensure their rights, receive grievances, conduct investigations,
and redressal. The Company has a Whistle Blower Policy wherein the employees can report any wrong practices, unethical
behaviour or non-compliance, which may have a detrimental effect on the organisation, including financial damage
and impact on brand image. Violations of the Code of Conduct should be reported as per the Reporting Matrix which
is an integral part of our policy document. The Code of Conduct policy covers the procedure of complaint redressal and
necessary preventive actions being taken by the Company.
9. Do human rights requirements form part of your business agreements and contracts? (Yes/No).
Yes, commitment to Human Rights, Labour and the Society is one of the pillars in the Code of Conduct for suppliers. The
supply chain partners are expected to understand, acknowledge and adhere to the norms of the Code. Signing the Code
of Conduct is a mandatory step during vendor onboarding process. The Code of Conduct covers fair working conditions,
health & safety, child labour, forced labour, non-discrimination, wages, zero tolerance for harassment. Also, adherence to
regulatory compliances such as health and quality, payment of wages, PF deduction forms a part of the agreements and
contracts.

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10. Assessments for the year:

Percentage of your plants and offices that were assessed (by entity or statutory authorities or
Particulars
third parties)
Child labour
Forced/involuntary labour The key manufacturing facilities are certified by an independent third party on SA8000 standards,
world’s leading social certification programme on human rights and labour management. The units
Sexual harassment
undergo periodic audits to ensure adherence and verify compliance with the applicable standards and
Discrimination at workplace guidelines. Furthermore, an internal assessment was conducted for manufacturing facilities, offices to
Wages understand any potential human rights risks through the Admin/IR/Project/HR/EHS in charge.
Others - please specify

11. 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 arose that required any corrective actions with respect to human rights related issues.
LEADERSHIP INDICATORS
1. Details of a business process being modified/introduced as a result of addressing human rights grievances/
complaints.
Though no complaints received in FY 2023-24 related to human rights, the grievance redressal mechanism has been
strengthened and modified during the year for the contractual workmen. The details of the grievance redressal
mechanism for contractual workmen have already been discussed in Section A ‘VII. Transparency and disclosures
compliances.’
2. Details of the scope and coverage of any human rights due-diligence conducted.
The scope and coverage of human rights due diligence extends to the Company’s own manufacturing facilities and
offices covering its contractual workers. This assessment covers aspects such as child labour, forced/involuntary labour,
wages, sexual harassment, discrimination at workplace, health and safety, working conditions and grievance mechanism.
Additionally, the top 200 supply chain partners have also been evaluated on various ESG parameters including human
rights.
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 Company’s permanent premises are accessible to differently abled people with wheelchairs (viz. through
ramps, toilets, lifts). The Company is taking steps to provide the right infrastructure to support the needs of individuals
with disabilities and preparing the remaining premises for accessibility infrastructure.
4. Details on assessment of value chain partners:

Percentage of value chain partners (by value of business done with such partners) that were
Particulars
assessed
Child labour The Company identified top 200 (unique 186) supply chain partners comprising 38% of FY 2022-23
Forced/involuntary labour spend. During the year, the Company assessed these supply chain partners on certain ESG parameters
that includes environmental management, performance, human rights, CSR, health and safety practices,
Sexual harassment
corporate governance, and ethical business practices through a questionnaire. This questionnaire
Discrimination at workplace was developed keeping in mind the regulatory compliances, BRSR disclosures, global standards and
Wages so on. The remote/desktop assessment was based on interactions with the supply chain partners and
documents shared with the Company. Post assessment, the gaps identified during the assessment were
Others - please specify
shared with the supply chain partners along with suggestions on the course of action for improving
overall sustainability performance.

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5. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from
the assessments at Question 4 above.
No significant risks or concerns arose from the assessment during the year. It is ensured that the supply chain partners
engaged with the Company understand and sign off the Code of Conduct of the Company, a mandatory requirement
during vendor registration and onboarding process. During the year, the sessions conducted for the supply chain partners
on ESG covered the Company policies viz. Green Supply Chain Policy, Sustainability Policy, Whistleblower Policy and Code
of Conduct. In case any concern or risk arising during the year, may not be limited to during assessment, the Company
takes suitable corrective and preventive action as necessary.

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:

Parameter FY 2023-24 FY 2022-23

From renewable sources (in Gigajoules)
Total electricity consumption (A) 1,55,046 1,29,410
Total fuel consumption (B) 38,552 0
Energy consumption through other sources (C) 0 0
Total energy consumed from renewable sources (A+B+C) 1,93,598 1,29,410
From non-renewable sources (in Gigajoules)
Total electricity consumption (D) 15,29,592 12,17,321
Total fuel consumption (E) 87,64,602 93,95,966
Energy consumption through other sources (F) 0 0
Total energy consumed from non-renewable sources (D+E+F) 1,02,94,194 1,06,13,287
Total energy consumed (A+B+C+D+E+F) (in Gigajoules) 1,04,87,792 1,07,42,697
Energy intensity per rupee of turnover (Total energy consumed / 83.1 98.8
Revenue from operations) (in GJ/¢ Cr)
Energy intensity per rupee of turnover adjusted for Purchasing Power 186.1 219.1
Parity (PPP) (Total energy consumed / Revenue from operations
adjusted for PPP) (in GJ/Mn USD)

Note: Purchasing Power Parity (PPP)-total income is adjusted as per International Monetary Fund Implied PPP conversion
rate.
Energy reported for fuel consumption from renewable sources is for the energy consumed from use of compressed
bio-gas (CBG) sourced by the Company’s manufacturing unit at Pithampur from Indore Municipal Corporation.
Energy consumption and energy intensity has decreased due to reduction in diesel consumption driven by switching
to electricity grid supply and optimization initiatives across different businesses. Additionally, closure or tapering
down of certain projects e.g., Mumbai Trans Harbour Link (MTHL), Mumbai Coastal Road Project (MCRP) Package 01,
Dwarka Expressway, building projects in Delhi, international water treatment plant projects and reduction in onsite civil
construction activities in a few projects e.g., Mumbai Ahmedabad High-Speed Rail (MAHSR) C4 Package, Chennai Metro
Rail Ltd (CMRL) project contributed to lower diesel consumption compared to last year.
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, independent data assurance has been carried out by Deloitte Haskins & Sells LLP.
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)
No, 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.

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3. Provide details of the following disclosures related to water, in the following format:
Parameter FY 2023-24 FY 2022-23
Water withdrawal by source (in kilolitres)
(i) Surface water 23,14,470 23,79,231
(ii) Groundwater 78,73,240 29,91,910
(iii) Third party water 20,53,537 14,57,540
(iv) Seawater / desalinated water 7,344 0
(v) Others 38,76,733 43,48,015
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) 1,61,25,324 1,11,76,696
Total volume of water consumption (in kilolitres) 1,28,76,481 1,10,38,686
Water intensity per rupee of turnover (Total water consumption/ 102 101.5
Revenue from operations) (in kilolitres/¢ Cr)
Water intensity per rupee of turnover adjusted for Purchasing Power 228.5 225.1
Parity (PPP) (Total water consumption / Revenue from operations
adjusted for PPP) (in kilolitres/Mn USD)

Note: Purchasing Power Parity (PPP)-total income is adjusted as per International Monetary Fund Implied PPP conversion
rate.
The Company has made improvements in FY 2023-24 for capturing data related to water withdrawal, consumption and
discharge. However, the Company has more than 700 project sites in operation, and which are by definition temporary
and with open boundaries. Water is taken from multiple sources, as per site conditions and discharged through multiple
points. These issues create significant challenge in putting direct measurement systems and therefore, indirect estimation
has to be made which presents difficulty in completeness and traceability of the data as required for reasonable assurance
standards. To improve data collection and reporting, the Company is redesigning the Standard Operating Procedures
(SOPs) which will be based on reasonable assurance requirements, and this will be rolled out to all the sites/locations.
Additionally, the Company is finalizing the digital solutions which would enable direct measurement without manual
intervention.
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, independent data assurance has been carried out by Deloitte Haskins & Sells LLP.
4. Provide the following details related to water discharged:
Parameter FY 2023-24 FY 2022-23
Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water
- No treatment 0 0
- With treatment – please specify level of treatment 5,26,691 2,53,587
(Primary) (Primary)
(ii) To Groundwater
- No treatment 0 0
- With treatment – please specify level of treatment 10,91,480 2,73,052
(Primary) (Primary)
(iii) To Seawater
- No treatment 0 0
- With treatment – please specify level of treatment 16,448 0
(Secondary)
(iv) Sent to third parties@
- No treatment 2,36,188 5,41,499
- With treatment – please specify level of treatment 60,336 0
(Primary)
(v) Others@
- No treatment 8,94,733 26,522
- With treatment – please specify level of treatment 4,18,234 1,64,681
(Primary) (Primary)
Total water discharged (in kilolitres) (i + ii + iii + iv + v) 32,44,110 12,59,341
@ Sent to third parties and others-without treatment is water discharged through municipal sewer connections or given to approved vendors for

wastewater treatment.

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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, independent data assurance has been carried out by Deloitte Haskins & Sells LLP.
5. Has the entity implemented a mechanism for Zero Liquid Discharge (ZLD)? If yes, provide details of its
coverage and implementation.
Yes, the A. M. Naik Heavy Engineering Complex, Hazira is a ZLD certified facility, and 100% of wastewater generated
is either recycled and reused or stored for future use. Other manufacturing facilities at Kattupalli, Powai, Talegaon,
Coimbatore, Kancheepuram, Kansbahal have also implemented Zero Liquid Discharge systems at respective locations.
The wastewater generated from business processes and domestic uses is collected, treated, and reused for non-potable
purposes such as gardening, toilet flushing, firefighting, topping up the cooling tower, road washing, dust suppression.
6. Please provide details of air emissions (other than GHG emissions) by the entity:
Data disclosed for the following manufacturing facilities:
FY 2023-24 FY 2022-23
Parameter UOM
Hazira Pithampur Kancheepuram Hazira Pithampur Kancheepuram
SOx mg/m3 24 16 10 18 22 11
NOx mg/m3 19 14 46 26 21 44
Particulate Matter (PM) mg/m3 45 26 37 15 61 38
Persistent organic pollutants - – – – – – –
Volatile organic compounds - – – – – – –
Hazardous air pollutants - – – – – – –
Others - – – – – – –

Increase in air emissions for Hazira is due to increase in consumption of natural gas. However, the emissions are within
the permissible limit.
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, stack emissions from chimney stacks at respective manufacturing facilities are analyzed by government approved
laboratories and the reports are reviewed by the internal team to ensure compliance to the consent to operate (CTO)
conditions. Testing reports are submitted to State Pollution Control Boards as per compliance.
7. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following
format:
Parameter UOM FY 2023-24 FY 2022-23
Total Scope 1 emissions (Break-up of the GHG tCO2e 6,35,646 6,93,115
into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if
available)
Total Scope 2 emissions (Break-up of the GHG tCO2e 3,49,682 2,73,719
into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if
available)
Total Scope 1 and Scope 2 emissions per Rupee tCO2e/¢ Cr 7.8 8.9
of turnover
Total Scope 1 and Scope 2 emission intensity per tCO2e/Mn USD 17.5 19.7
rupee of turnover adjusted for Purchasing Power
Parity (PPP) (Total Scope 1 and Scope 2 GHG
emissions / Revenue from operations adjusted
for PPP)

Note: Purchasing Power Parity (PPP)-total income is adjusted as per International Monetary Fund Implied PPP conversion
rate.

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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, independent data assurance has been carried out by Deloitte Haskins & Sells LLP.
8. Does the entity have any project related to reducing Green House Gas emission?
Details of some initiatives linked to GHG emissions reduction have been included in Principle-6 Leadership Indicator-
Question 4 as the answer provided in Principle-6 Leadership Indicator-Question 4 also include other initiatives related to
resource efficiency and waste reuse.
9. Provide details related to waste management by the entity, in the following format:
Parameter FY 2023-24 FY 2022-23
Total Waste generated (in metric tonnes)
Plastic Waste (A) 506 126
E-waste (B) 86 26
Bio-medical waste (C) 0.5 0.3
Construction and demolition waste (D) 2,36,846 2,22,748
Battery waste (E) 56 11
Radioactive waste (F) 5 0
Other Hazardous waste. Please specify, if any. (G) 7,326 4,201
Other Non-hazardous waste generated (H). Please specify, if any. (Break-up 2,09,271 99,762
by composition i.e. by materials relevant to the sector)
Total (A + B + C + D + E + F + G + H) 4,54,097 3,26,875
Waste intensity per rupee of turnover (Total waste generated / Revenue 3.6 3.0
from operations)
Waste intensity per rupee of turnover adjusted for Purchasing Power Parity 8.1 6.7
(PPP) (Total waste generated / Revenue from operations adjusted for PPP) (in
tonnes/Mn USD)
For each category of waste generated, total waste recovered
through recycling, re-using or other recovery operations (in metric
tonnes)
(i) Recycled 2,05,822 184,852
(ii) Re-used 1,57,590 0
(iii) Other recovery operations 0 0
Total 3,63,412 184,852
For each category of waste generated, total waste disposed by
nature of disposal method (in metric tonnes)
(i) Incineration 0 0
(ii) Landfilling 73,535 2,352
((iii) Other disposal operations 3,633 140
Total 77,168 2,492
Note: Purchasing Power Parity (PPP)-total income is adjusted as per International Monetary Fund Implied PPP conversion
rate.
The Company has made improvements in FY 2023-24 for capturing data related to waste generation, reuse and
disposal. However, the Company has more than 700 project sites in operation, and which are by definition temporary
and with open boundaries. Waste gets generated at multiple locations, depending on type of activities at sites and
reused and disposed at varying times through the project lifecycle. These issues create significant challenge in putting
direct measurement systems and therefore, indirect estimation has to be made which presents difficulty in completeness
and traceability of the data as required for reasonable assurance standards. To improve data collection and reporting,
the Company is redesigning the Standard Operating Procedures (SOPs) which will be based on reasonable assurance
requirements, and this will be rolled out to all the sites/locations. Additionally, the Company is exploring some digital
solutions which could be used to enable direct measurement without manual intervention.
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, independent data assurance has been carried out by Deloitte Haskins & Sells LLP.

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10. 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.
Waste management is an integral part of the EHS management system. Each location (project site, manufacturing
facilities and campuses) has a location specific waste management plan, which is based on types of waste generated and
applicable disposal methods. Waste management guidelines and procedures focus on Reduce, Reuse, Recycle principles
and ensure proper waste identification, segregation, recycling (if applicable) and disposal. All businesses assess the
waste generated from operations for reuse potential and after exhausting the feasible options, opt for relevant disposal
methods. For hazardous waste, waste management is done complying to the requirements of applicable hazardous
waste management rules e.g., Battery Waste Management Rules, 2022 and as per the guidelines issued by Central
and State Pollution Control Boards. Hazardous waste is stored at specially designated areas/locations at project sites
or manufacturing facilities and the disposal is done through govt approved/registered waste handling agencies. The
Company also conducts regular training and awareness programmes on waste management for employees and workers
focusing on waste minimization and proper waste handling. The Company also ensures suitable storage requirements
e.g., fire-fighting equipment, spill kits, drip trays for safe storage of waste before disposal. The Company manufactures
certain products which are meant for industrial and defence use and no hazardous or toxic chemicals are used in these
products.
11. 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:
Whether the conditions of environmental
Sl. 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 A. M. Naik Heavy Engineering Complex, Hazira Manufacturing facility Yes
(Gujarat)- Company’s manufacturing facility,
located along the banks of River Tapi, 8 kms from
the Arabian Sea
2 Modular Fabrication Facility (Kattupalli)- Manufacturing facility Yes
Company’s manufacturing facility located 40 kms
from Chennai, adjoining the Bay of Bengal
3 Kachchi Dargah Bridge (Bihar) – Contracted EPC Project site Yes
project for construction of a bridge which spans
the Ganges, connecting Kacchi Dargah in Patna
and Bidupur in Hajipur
4 Thane Creek Bridge, Thane (Maharashtra) - EPC Project site Yes
Contracted project for expansion of existing road
bridge on Sion-Panvel Road across Thane creek
5 New Dry Dock, Kochi (Kerala) - Contracted EPC Project site Yes
project for construction of a dock along the
Ernakulam Channel
6 Mumbai Coastal Road, Mumbai (Maharashtra) EPC Project site Yes
- Contracted project for construction 8-lane
expressway from Marine Drive to Worli abutting
the seacoast of Mumbai
7 Mumbai Ahmedabad High Speed Rail Package EPC Project site Yes
C3 (Maharashtra) - Contracted project for
construction of high-speed rail corridor
comprising viaducts and tunnels falling in forest
area and coastal regulation zones

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12. Details of Environmental Impact Assessments (EIA) of projects undertaken by the entity based on applicable
laws, in the current financial year:
Whether the conditions of If no, the reasons thereof
Location of operations/ Type of
S. No. environmental approval/clearance are and corrective action taken,
offices operations
being complied with? (Y/N) if any.
EIA for the projects, given as a contract by the clients, is under the scope of the clients.
13. Is the entity compliant with the applicable environmental laws/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)?
Yes, the Company is compliant with applicable Acts and rules.
LEADERSHIP INDICATORS
1. Water withdrawal, consumption, and discharge in areas of water stress (in kilolitres):
For each facility/plant located in areas of water stress, provide the following information:
(i) Name of the area(s): Water-stressed areas in parts of western Uttar Pradesh, central Maharashtra, Bangalore, Tamil
Nadu, Rajasthan, Punjab and Haryana.
(ii) Nature of operations: EPC projects related to highways, railways, metro rail, water supply, irrigation, and oil & gas
facilities
(iii) Water withdrawal, consumption, and discharge in the following format:
Parameter FY 2023-24 FY 2022-23
Water withdrawal by source (in kilolitres)
Surface water 10,367 5,116
Groundwater 5,30,724 2,12,684
Third party water 2,43,695 9,13,602
Seawater / desalinated water 0 0
Others 15,64,155 2,29,725
Total volume of water withdrawal (in kilolitres) 23,48,941 13,61,127
Total volume of water consumption (in kilolitres) 15,93,189 13,61,127
Water intensity per rupee of turnover (Water consumed / turnover) 12.6 12.5
Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water
- No treatment 0 0
- With treatment – please specify level of treatment 1,72,767 0
(Primary)
(ii) To Groundwater
- No treatment 0 0
- With treatment – please specify level of treatment 46,616 3,650
(Primary) (Primary)
(iii) To Seawater
- No treatment 0 0
- With treatment – please specify level of treatment 0 0

(iv) Sent to third parties@

- No treatment 1,61,597 1,44,011
- With treatment – please specify level of treatment 21,358 0
(Primary)
(v) Others@
- No treatment 2,12,141 22,619
- With treatment – please specify level of treatment 1,41,274 44,962
(Primary) (Primary)
Total water discharged (in kilolitres) (i + ii + iii + iv + v) 7,55,753 2,15,242
@ Sent to third parties and others-without treatment is water discharged through municipal sewer connections or given to approved vendors
for wastewater treatment.
Though the data related to water is still partial, the Company has improved capture of data related to water stressed
areas in FY 2023-24.

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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.
No.
2. Please provide details of total Scope 3 emissions & its intensity, in the following format:

Parameter UOM FY 2023-24 FY 2022-23

Total Scope 3 emissions (Break-up of GHG tCO2e 70,73,536 71,28,687
into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if
available)
Total Scope 3 emissions per rupee of turnover tCO2e/¢ Cr. 56 65.6

Scope 3 emissions for the Company is being reported for 4 categories i.e., purchase of goods and services, upstream
transportation and distribution, business travel and employee commuting. The methodology to estimate these emissions
is according to the Scope 3 Calculation Guidance of GHG Protocol. More than 95% of Scope 3 emissions comes from
purchase of goods and within that category, 90% is contributed by consumption of steel and cement used at project
sites.
Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external
agency? (Y/N).
No.
3. 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.

Sl. No. Location of operations/offices Actions taken

1 A. M. Naik Heavy Engineering Complex, Hazira- Implementation of Zero Liquid Discharge (ZLD) system, planting of
Company’s manufacturing facility, located along mangroves, restoration of biodiversity by converting turf to meadow
the banks of River Tapi, 8 kms from the Arabian
Sea
2 Modular Fabrication Facility, Kattupalli and Implementation of Zero Liquid Discharge (ZLD) system; Phosphating &
Shipbuilding Facility, Kattupalli- Company’s Galvanizing activities are carried out beyond Coastal Regulation Zone
manufacturing facilities located 40 kms from boundaries
Chennai, adjoining the Bay of Bengal
3 Kachchi Dargah Bridge (Bihar) – Client contracted Location and spacing of bridge piers are designed in a manner to avoid
project for construction of a bridge which spans key habitat areas such as breeding and feeding grounds, migration
the Ganges, connecting Kachhi Dargah in Patna routes of animals, etc., Construction activity is avoided to the extent
and Bidupur in Hajipur possible during key seasonal wildlife activities and breeding seasons
4 Thane Creek Bridge, Thane (Maharashtra) - Monitoring of implementation of Environment Management Plan
Contracted project for expansion of existing road by third-party agencies, construction of piers in the creek without
bridge on Sion-Panvel Road across Thane creek disturbing the tidal flow
5 New Dry Dock, Kochi (Kerala) - Contracted Plantation of mangroves, use of equipment compliant with noise
project for construction of a dock along the emission limits and monitoring of movement of machineries to protect
Ernakulam Channel marine life, lighting arrangement to direct light away from sea
6 Mumbai Coastal Road, Mumbai (Maharashtra) Creation of rock intertidal habitat, translocation of coral patches, noise
- Contracted project for construction 8-lane and vibration minimization through proper machinery maintenance,
expressway from Marine Drive to Worli abutting development and implementation of a marine biodiversity plan, regular
the seacoast of Mumbai marine environment monitoring
7 Mumbai Ahmedabad High Speed Rail Package Preservation and planting of mangroves, controlled lighting during
C3 (Maharashtra) - Contracted project for night-time to minimize impact on wildlife, noise and vibration
construction of high-speed rail corridor minimization through proper machinery maintenance
comprising viaducts and tunnels falling in forest
area and coastal regulation zones

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4. 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:

Sl. Initiatives undertaken Details of the initiative (web-link, if any, may be provided Outcome of initiative
No. along with summary)
1 Reduction in Diesel Construction Machinery, used at project sites, are typically Emissions avoided in
Consumption through powered by diesel. As part of cost optimization initiatives, all FY 2023-24: 22,207 tCO2e
optimization initiatives project teams constantly look for ways to maximize the utilization
of these machinery as well as optimize the deployment. These
initiatives are enabled through use of sensor-based technologies
and digital tools.
2 Reduction in Diesel Construction project sites have historically been powered by Emissions avoided in
Consumption by Diesel Generator sets due to remote locations as well as hurdles FY 2023-24: 12,952 tCO2e
Switching to Grid in getting the grid connection. The Company has taken initiatives
electricity across various project sites to get grid electricity connections and
help reduce diesel consumption.
3 Groundwater Recharge In some underground metro projects, dewatering is required to ~ 21 kL per day of dewatered
enable proper working conditions. Typically, the water extracted quantity was sent to recharge
in the dewatering process is sent to storm water drain. In CMRL wells. In FY 2023-24, the site
TU02 project, site faced a challenge in not having proper facility was able to recharge ~3,520 kL
for safe discharge of this water. The project team came up with of water.
a design to process the water from dewatering process and then
feed it back to groundwater through recharge borewells. This
enabled not only safe discharge of the water but also helped in
replenishing the ground water.
4 Rainwater Harvesting In MAHSR project, one section has implemented a large ~6,500 kL water was
Rainwater Harvesting system. The facility was incorporated at conserved, avoiding
design stage itself during construction of a temporary facility extraction from other sources.
(Noise Barrier factory). Water conserved is stored in a storage Additionally, the energy spent
tank for further use in site activities as well as provided to the in sourcing water is also
community for irrigation and other uses. avoided.
5 C&D Waste Recycling Concrete waste gets generated in civil works related to Concrete waste of ~160 tonnes
infrastructure projects. Typically, this is disposed through assigned was crushed and processed into
agencies, and which use it typically for landfilling. Additionally, aggregates of different sizes
the concrete waste also consumes space at project site. In and thereby, avoiding sourcing
Kundankulam Nuclear Power Project, the project team established of equivalent volume from
a crusher plant to process this concrete waste into aggregates other sources.
of different sizes. This was reused in making solid blocks for
construction as well as for aggregate use in workmen colony PCC
works, infra works, fill-crete at site.

Other significant initiatives are covered in ‘Natural Capital’ and ‘Intellectual Capital’ sections of the Integrated Annual Report
FY 2023-24.
5. Does the entity have a business continuity and disaster management plan? Give details in 100 words/web link.
Disaster management is an important component of EHS management system. At the EPC Project sites and
Manufacturing facilities/campuses, the Company has implemented disaster management and emergency preparedness
plans (EPPs) that address emergencies such as flooding, earthquake, major fires, disease outbreaks etc. These plans are
focussed on Mitigation, Preparedness, Response, Recovery to ensure minimal disruptions to the business operations
in face of emergencies. Key locations are equipped with emergency sirens, first aid, medical treatment facilities, and
identification of assembly points. To maintain a high level of preparedness, relevant training, and capacity-building
programmes, including mock drills, are undertaken for employees and workers. Disaster management plans are readily
available and easily accessible to all relevant stakeholders, including contractors and emergency services personnel.

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Overall, the Company’s disaster management and emergency preparedness plans aim to ensure business continuity in
face of emergencies or disasters and ensure safety of all personnel, assets and other resources.
6. 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 risks/concerns have been raised during the year. The Company ensures that the contractors, vendors,
suppliers comply with policies and guidelines including need for compliance with various regulations and ethical practices
including environmental regulations.
7. Percentage of value chain partners (by value of business done with such partners) that were assessed for
environmental impacts.
The Company identified top 200 (unique 186) supply chain partners comprising 38% of FY 2022-23 spend. During
the year, the Company assessed these supply chain partners on certain ESG parameters that includes environmental
management, performance, human rights, CSR, health and safety practices, corporate governance, and ethical business
practices through a questionnaire. This questionnaire was developed keeping in mind the regulatory compliances, BRSR
disclosures, global standards. The remote/desktop assessment was based on interactions with the supply chain partners,
response to the questionnaire and evidence shared with the Company. Post assessment, the gaps identified during the
assessment were shared with the supply chain partners along with suggestions on the course of action for improving
overall sustainability performance.

Principle 7: Businesses, when engaging in influencing public and regulatory policy, should do
so in a manner that is responsible and transparent
ESSENTIAL INDICATORS
1. a. Number of affiliations with trade and industry chambers/associations: 75
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.

Reach of trade and industry chambers/

S.
Name of the trade and industry chambers/associations associations (State/National/
No.
International)
1 Confederation of Indian Industry (CII) National
2 Federation of Indian Chambers of Commerce & Industry (FICCI) National
3 National Safety Council (NSC) National
4 Associated Chambers of Commerce and Industry of India (ASSOCHAM) National
5 Construction Industry Development Council (CIDC) National
6 Quality Circle Forum of India (QCFI) National
7 American Society of Concrete Contractors (ASCC) International
8 British Safety Council (BSC) International
9 International Chamber of Commerce (ICC) International
10 Saudi Standards Organization (SASO) International

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.
There was no issue related to anti-competitive conduct by the entity during the year.
LEADERSHIP INDICATORS
1. Details of public policy positions advocated by the entity:
The Company proactively engages with different stakeholders including industry chambers, associations, government
ministries and regulators and provides its inputs on various areas such as infrastructure sector, renewable energy, space,

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health and safety etc. Over the years, the Company executives have played a key role in helping shape public policy
and have been invited to join (in certain cases also lead) several committees and task forces. A few examples from
FY 2023-24:
(i) Amendment to RBI’s guideline for green taxonomy to include nuclear energy, hydropower more than 25 MW,
biomass based energy.
(ii) Incentives for chip design to be available for all companies.
(iii) Policy aspects related to Small Modular Reactors (SMR).
(iv) Direct Tax Avoidance Treaty with Algeria.

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 conducted by communicated
Name and brief details of Date of
notification independent in public Relevant Web Link
project notification
No. external agency domain
(Yes/No) (Yes / No)
Not applicable

SIA for the projects, executed by the Company as a contract from the clients, is under the scope of the client.
2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being
undertaken by your entity, in the following format:
S. Name of Project for No. of Project Affected % of PAFs covered Amounts paid to PAFs in the FY
State District
No. which R&R is ongoing Families (PAFs) by R&R (In INR)
Not applicable

R&R for the projects executed by the Company, is under the contractual scope of the client.
3. Describe the mechanisms to receive and redress grievances of the community.
Complaints and grievances of the community are collected at work locations i.e., project sites, manufacturing facilities,
campuses, and offices by the respective Admin and/or Industrial Relations teams. At EPC project sites, a Public Relations
Officer is also deployed to engage with the local community and address their concerns, if any. Grievances are collected
through complaint/suggestion boxes at these locations. The Company also has a toll-free number (18002094545), email
id ([email protected]), social media handles (LinkedIn: https://www.linkedin.com/company/larsen-&-toubro-
limited/, X: @larsentoubro) to collect such inputs. Complaints or grievances received are forwarded to the relevant person
or department for resolution and they also monitor the resolution of the complaint/grievance. Issues, which remain
unresolved or require management intervention, are escalated to the respective business heads.
For CSR Projects
The implementation of services is through collaboration and partnerships with NGOs, Government agencies and L&T
teams from campuses, sites and operations. The aim is to improve the quality of life for individuals, communities and
facilitate a positive and sustainable change. The grievance redressal mechanism provides a platform for the community to
highlight their concerns with a view to addressing the issues in a manner that safeguards the interests of the individual as
well as the larger community. The endeavour will continue to be to seek ongoing feedback from stakeholders regarding
CSR projects.
Grievances may be submitted in writing through an email/letter addressed to the concerned Project Head Coordinator
at the local CSR site. The Project Head will record the grievance, examine the issues involved and prepare an action plan
for resolution. Feedback on status of action may be provided within 20 days of receipt of the grievance. Grievances may

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also be submitted via email/letter to Corporate CSR at [email protected]. Feedback on status of action may
be provided within 20 days of receipt of the email. Suggestions regarding scope of projects, additional activities to be
undertaken, request for support for projects and initiating activities in new locations and geographies will not be within
the scope of the grievance redressal mechanism.
4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:
Particulars FY 2023-24 (%) FY 2022-23 (%)
Directly sourced from MSMEs/small producers 8 7
Directly from within India 68 71

5. Job creation in smaller towns - Disclose wages paid to persons employed (including employees or workers
employed on a permanent or non-permanent/on contract basis) in the following locations, as % of total wage
cost
The wage data comprises the salary paid to the staff which includes permanent and other than permanent employees,
and permanent workers. The jobs created and respective location have been mapped for the aforementioned categories
of employees and workers and does not include other than permanent workers.
The Company employs around 3,50,000 other than permanent workers across more than 700 project sites and locations
within India and abroad. Wages to other than permanent workers are directly paid by the third party contractors. The
Company monitors the wages and statutory compliances based on the wage register submitted by the third party
contractors along with the monthly invoice at project site level manually. The Company is capturing the total payment
made to contractors but the wages included therein is not tracked / collated separately. Going forward in the coming
years, the Company will explore options to capture, track and report the wages paid to other than permanent workers.
Location FY 2023-24 (%) FY 2022-23 (%)
Rural 4
Semi-urban 2
Not estimated
Urban 4
Metropolitan 70

Around 20% of the jobs are created outside India.

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).
No actions required by the Company.
2. Provide the following information on CSR projects undertaken by your entity in designated aspirational
districts as identified by government bodies:
S. No. State Aspirational District Amount spent (In ¢)
1 Chhattisgarh Bastar 2,10,000
2 Jharkhand Hazaribagh 9,94,325
3 Jharkhand Ranchi 5,87,906
4 Jharkhand Dumka 1,05,728
5 Odisha Balangir 3,79,742
6 Punjab Moga 2,37,000
Total 25,14,701

3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers
comprising marginalized/vulnerable groups? (Yes/No)
Though the Company does not have any preferential procurement policy, but it encourages and engages with
suppliers from marginalised and vulnerable groups wherever possible. Due to the nature of business and bulk

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material requirement, there are very limited options to procure from these groups and has to be sourced from large
scale companies.
(b) From which marginalized/vulnerable groups do you procure?
List of identified marginalized and vulnerable groups:
I. Gender based: women/transgenders
II. Person with disability
(c) What percentage of total procurement (by value) does it constitute?
The Company engages with a few marginalized and vulnerable groups (women SHGs, local farmers, small
businessmen) for food supplies to canteens in the manufacturing facilities. However, the overall value is negligible
as compared to the total purchase by the Company. Due to the nature of business and bulk material requirement,
there are very limited options to procure from these groups and mostly sourced from large and mid-sized companies.
The material mostly comprises items such as cement, steel, fuel, pipes, cables, ready mix concrete and services may
include logistics, IT, ITES, subcontracting for manpower.
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.
The Company does not have any intellectual property owned, created, or acquired based on traditional knowledge during
the year.
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.
The Company does not have any intellectual property owned, created, or acquired based on traditional knowledge during
the year.
6. Details of beneficiaries of CSR Projects:

No. of persons % of beneficiaries

Sr.
Project Name benefitted from from vulnerable and
No
CSR projects marginalized groups

1 Construction Skills Training Institutes and Other skilling programs for 38,475 100
women & youth

2 Enhancing educational infrastructure in Schools 3,13,796 100

3 Promoting STEM Education in Schools & Improving quality of education 44,611 100

4 Water conservation initiatives and Integrated Community Development 1,29,680 100

Programme for Rural Areas

5 Environment Conservation Initiatives 3,95,743 100

6 Community Health Initiatives 7,22,383 100

Total 16,44,688

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.
Consumers for the Company are clients (referred to hereafter as customers) for its businesses in EPC Projects and Hi-Tech
Manufacturing. Customer complaints are received through email, transmittal letters, customer complaint registers and
even verbally directly by project teams or facility admins. The Company also has a toll-free number and email address
([email protected]) for collecting the customer inputs/feedback. Feedback from the customers is collected

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through a structured feedback form on a periodic basis (semi-annually or annually as the case may be). Formats to record
the complaints/feedback as well as SOPs to handle them are part of the Quality Management System. Inputs received
from the customers are categorized and forwarded to the relevant teams or departments, which take the necessary action
to resolve the complaints and respond to the customers. Each business unit maintains a record of complaints received and
resolutions provided. These are reviewed at regular intervals at different management levels, starting from project teams
and up to Business Head and Executive Committee level.
2. Turnover of products and/or services as a percentage of turnover from all products/services that carry
information about:

Particulars As a percentage to total turnover

Environmental and social parameters relevant to the product
Safe and responsible usage Not applicable
Recycling and/or safe disposal

The Company does not manufacture or sell consumer products. The products manufactured by the Company are
equipment, modules, sub-systems etc. which are for industrial and defence use. Relevant operating parameters and other
required information are provided for these products.
3. Number of consumer complaints in respect of the following:

FY 2023-24 FY 2022-23
Pending
Received Pending Received
Particulars Remarks resolution Remarks
during the resolution at during the
at end of
year end of year year
year
Data privacy 0 0 – 0 0 –
Advertising 0 0 – 0 0 –
Cyber-security 0 0 – 0 0 –
Delivery of essential 0 0 – 0 0 –
services
Restrictive Trade Practices 0 0 – 0 0 –
Unfair Trade Practices 0 0 – 0 0 –
Other 0 0 – 0 0 –

4. Details of instances of product recalls on account of safety issues:

Particulars Number Reasons for recall

Voluntary recalls 0
NA
Forced recalls 0

The Company manufactures products which are for industrial and defence use. There were no product recalls (voluntary
or forced) made on ground of safety in FY 2023-24.
5. Does the entity have a framework/policy on cyber security and risks related to data privacy? (Yes/No). If
available, provide a web-link of the policy. If NA, provide details.
Yes, it is 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.
No cases/complaints received in above matters.

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7. Provide the following information relating to data breaches:

a. Number of instances of data breaches along-with impact
b. Percentage of data breaches involving personally identifiable information of customers
c. Impact, if any, of the data breaches
There were no data breaches during the year.
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 at 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 space and products manufactured are made according to client/customer
specifications. The products’ business manufactures heavy machines and machine parts for industrial and defence use.
The Company engages with its clients/customers on a regular basis to explain about its products, innovations, new
technologies and techniques that are implemented or proposed to be implemented to enhance product quality and
features.
3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.
The Company does not have any direct presence or role in provision of essential services. However, during execution
of projects and transportation of machinery/equipment, the clients and concerned public departments/authorities are
informed in advance through transmittal letters and their permissions are sought for road closure, traffic diversion,
isolation of utility supplies etc.
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. If NA, provide details. 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) If NA, provide details.
The Company does not manufacture or sell products which are covered under such laws. Various business verticals
conduct customer satisfaction surveys and feedback in a systematic manner and is a process included in Quality
Management System. The feedback is collected through a structured questionnaire based relevant parameters and based
on 10-point Likert scale. The feedback is usually collected on a half-yearly or annual basis. Key points related to areas of
improvement are captured in the feedback report which is reviewed by the senior management of the relevant business
on a regular basis.

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Chartered Accountants
One International Centre,
Tower 3, 27th-32nd Floor,
Senapati Bapat Marg,
Elphinstone Road (West),
Mumbai - 400 013,
Maharashtra, India

Phone: +91 22 6185 4000

Fax: +91 22 6185 4101

INDEPENDENT PRACTITIONER’S REASONABLE ASSURANCE REPORT ON IDENTIFIED SUSTAINABILITY INFORMATION IN

LARSEN AND TOUBRO LIMITED’S BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT

To the Board of Directors

of LARSEN AND TOUBRO LIMITED

1. We have undertaken to perform reasonable assurance engagement, for LARSEN AND TOUBRO LIMITED (the
“Company”) vide our engagement letter dated January 15, 2024 in respect of the agreed Sustainability Information
listed below (the “Identified Sustainability Information” or “BRSR Core indicators”) in accordance with the Criteria
stated in paragraph 3 below. This Sustainability Information is included in the Business Responsibility and
Sustainability Report (the “BRSR” or the “Report”) of the Integrated Annual Report (the “IAR”) of the Company for
the year ended March 31, 2024. This engagement was conducted by our multidisciplinary team including assurance
practitioners, environmental engineers, and specialists.

2. Identified Sustainability Information

Our scope of reasonable assurance consists of the BRSR Core indicators listed in the Appendix I to our report. The reporting
boundary of the Report is as disclosed in Question 13 and Question 23(a) of Section A: General Disclosure of the BRSR
with exceptions disclosed by way of note under respective questions of the BRSR, where applicable.

Our reasonable assurance engagement was with respect to the year ended March 31, 2024 information only and we have
not performed any procedures with respect to earlier periods, and, therefore, do not express any opinion thereon.

3. Criteria

The Criteria used by the Company to prepare the Identified Sustainability Information is as under:

• Regulation 34(2)(f) of the Securities and Exchange Board of India (the “SEBI”) (Listing Obligations and Disclosure
Requirements), Regulations, 2015 as amended;
• Business Responsibility and Sustainability Reporting Requirements for listed entities per Master Circular No.
SEBI/HO/CFD/PoD2/CIR/P/2023/120 dated July 11, 2023; and
• SEBI Circular SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated July 12, 2023 and clarifications thereto issued by SEBI.

4. Management’s Responsibility

The Company’s management is responsible for selecting or establishing suitable criteria for preparing the Sustainability
Information including the reporting boundary of the Report, taking into account applicable laws and regulations, if any,
related to reporting on the Sustainability Information, identification of key aspects, engagement with stakeholders,
content, preparation and presentation of the Identified Sustainability Information in accordance with the Criteria. This
responsibility includes design, implementation and maintenance of internal control relevant to the preparation of the
Report and the measurement of Identified Sustainability Information, which is free from material misstatement, whether
due to fraud or error.

5. Inherent limitations

The absence of a significant body of established practice on which to draw to evaluate and measure non-financial
information allows for different, but acceptable, measures and measurement techniques and can affect comparability
between companies.

Regd. Office: One International Center, Tower 3, 27th – 32nd Floor, Senapati Bapat Marg, Elphinstone Road (West), Mumbai – 400 013,
Maharastra, India. (LLP Identification No. AAB-8737)

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6. Our Independence and Quality Control

We have maintained our independence and confirm that we have met the requirements of the Code of Ethics issued by
the Institute of Chartered Accountants of India (the “ICAI”) and the SEBI Circular No. SEBI/HO/CFD/CFD-SEC-
2/P/CIR/2023/122 dated July 12, 2023, and its clarifications thereto and have the required competencies and experience
to conduct this assurance engagement.

We apply Standard on Quality Control (the “SQC”) 1, “Quality Control for Firms that Perform Audits and Reviews of
Historical Financial Information, and Other Assurance and Related Services Engagements”, and accordingly maintain a
comprehensive system of quality control including documented policies and procedures regarding compliance with ethical
requirements, professional standards, and applicable legal and regulatory requirements.

7. Our Responsibility

Our responsibility is to express a reasonable assurance opinion on the Identified Sustainability Information listed in
Appendix I based on the procedures we have performed and evidence we have obtained.

We conducted our engagement in accordance with the Standard on Sustainability Assurance Engagements (SSAE) 3000,
“Assurance Engagements on Sustainability Information”, and Standard on Assurance Engagements (SAE) 3410 Assurance
Engagements on Greenhouse Gas Statements (together the “Standards”), both issued by the Sustainability Reporting
Standards Board (the “SRSB") of the ICAI.

These Standards require that we plan and perform our engagement to obtain reasonable assurance about whether the
Identified Sustainability Information listed in Appendix I and included in the Report are prepared, in all material respects,
in accordance with the Criteria stated under paragraph 3 above.

As part of reasonable assurance engagement in accordance with the Standards, we exercise professional judgment and
maintain professional skepticism throughout the engagement.

8. Reasonable Assurance

A reasonable assurance engagement involves identifying and assessing the risks of material misstatement of the Identified
Sustainability Information whether due to fraud or error, responding to the assessed risks as necessary in the
circumstances.

The procedures we performed were based on our professional judgment and included inquiries, observation of processes
performed, inspection of documents, evaluating the appropriateness of quantification methods and reporting policies,
analytical procedures and agreeing or reconciling with underlying records.

Given the circumstances of the engagement, in performing the procedures listed above, we:

• Obtained an understanding of the Identified Sustainability Information and related disclosures;

• Obtained an understanding of the assessment criteria and their suitability for the evaluation and/or measurements
of the Identified Sustainability Information;
• Made inquiries of Company’s management, including sustainability team, compliance team, human resource team
amongst others and those with the responsibility for preparation of the Report;
• Obtained an understanding and performed an evaluation of the design of the key systems, processes and controls for
recording, processing and reporting on the Identified Sustainability Information at the corporate office and at other
project locations/offices on a sample basis. This included evaluating the design of those controls relevant to the

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engagement and determining whether they have been implemented by performing procedures in addition to inquiry
of the personnel responsible for the Identified Sustainability Information;
• Based on the above understanding and the risks that the Identified Sustainability Information may be materially
misstated, determined the nature, timing and extent of further procedures;
• Tested the Company’s process for collating the sustainability information through agreeing or reconciling the
Identified Sustainability Information with the underlying records on a sample basis; and
• Tested the consolidation for project locations/offices on a sample basis and corporate office under the reporting
boundary for ensuring the completeness of data being reported.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our reasonable
assurance opinion.

9. Exclusions

Our assurance scope excludes the following and therefore we do not express an opinion on:

• Aspects of the Reports and the data/information (qualitative or quantitative) other than the Identified Sustainability
Information; and
• The statements that describe expression of opinion, belief, aspiration, expectation, aim, or future intentions provided
by the Company.

10. Other information

The Company’s Management is responsible for the Other information. The Other information comprises the information
included within the BRSR and the IAR, other than Identified Sustainability Information and our independent assurance
report dated June 06, 2024 thereon.

Our opinion on the Identified Sustainability Information does not cover the Other information and we do not express any
form of assurance thereon.

In connection with our assurance engagement of the Identified Sustainability Information, our responsibility is to read the
Other information and, in doing so, consider whether the Other information is materially inconsistent with the Identified
Sustainability Information or otherwise appears to be materially misstated.

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.

11. Basis for Qualified Opinion

• As described in the Note to BRSR Section C ‘Principle 6 “Business should respect and make efforts to protect and
restore the environment” – Essential Indicator 3 and 4 “Details related to Water” and Essential Indicator 9 “ Details
related to Waste Management ” of the Report, the Company has used indirect estimation instead of the approach
provided under the BRSR guidance note to determine complete and accurate disclosures for “Details related to Water
” and “Details related to Waste Management” indicators. In the absence of sufficient appropriate evidence to check
the completeness and accuracy of the values disclosed under “Details related to Water ” and “Details related to Waste
Management” as at and for the year ended March 31, 2024, we were unable to determine whether any adjustments
to the reported figures with respect to “Details related to Water ” and “ Details related to Waste Management” were
necessary or not as at and for the year ended March 31, 2024.

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Type text h

• As described in the Note to BRSR Section C ‘Principle 5’ “Businesses should respect and promote human rights” –
Essential Indicator 3(b) and Principle 8 “Businesses should promote inclusive growth and equitable development” –
Essential Indicator 5, the Company has not considered the wages paid to other-than-permanent workers for purpose
of disclosures and calculation of “Gross wages paid to females as % of total wages paid by the entity” reported under
Principle 5 and “Job Creation in smaller towns” reported under Principle 8 as stated above. In the absence of sufficient
appropriate evidence to check the completeness and accuracy of the values disclosed under “Gross wages paid to
females as % of total wages paid by the entity“ and “Job Creation in smaller towns” as at and for the year ended
March 31, 2024, we were unable to determine whether any adjustments to the reported figures with respect to
“Gross wages paid to females as % of total wages paid by the entity“ and “Job Creation in smaller towns” were
necessary or not as at and for the year ended March 31, 2024.

12. Qualified Reasonable Assurance Opinion

Except for the possible effect of the matters described in the Basis for Qualified Opinion section of our report, the
Identified Sustainability information as mentioned in Appendix I is fairly presented, in all material respects, in accordance
with Criteria mentioned below:

• Regulation 34(2)(f) of the Securities and Exchange Board of India (the “SEBI”) (Listing Obligations and Disclosure
Requirements) Regulations, 2015 as amended;
• Business Responsibility and Sustainability Reporting Requirements for listed entities per Master Circular No.
SEBI/HO/CFD/PoD2/CIR/P/2023/120 dated July 11, 2023; and
• SEBI Circular SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated July 12, 2023 and clarifications thereto issued by SEBI.

13. Other matter

Select BRSR Core indicators of the Company for the year ended March 31, 2023 were assured by the previous assurance
practitioner who had expressed an unmodified opinion on June 27, 2023.

Our opinion is not modified in respect of this matter.

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14. Restriction on use

Our Reasonable Assurance report has been prepared and addressed to the Board of Directors of the Company at the
request of the Company solely, to assist the Company in reporting on Company’s sustainability performance and activities.
Accordingly, we accept no liability to anyone, other than the Company. Our Reasonable Assurance report should not be
used for any other purpose or by any person other than the addressees of our report. We neither accept nor assume any
duty of care or liability for any other purpose or to any other party to whom our report is shown or into whose hands it
may come without our prior consent in writing.

For Deloitte Haskins & Sells LLP

Chartered Accountants
(Firm’s Registration No. 117366W / W-100018)

Pratiq Shah
Partner
Membership No. 111850
UDIN: 24111850BKJLKA9907
Place: Mumbai
Date: 06 June 2024

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Overview Discussion and Analysis Report Reports Statements

APPENDIX I

Identified Sustainability Information in BRSR subject to Reasonable Assurance

Sr. No Indicator No. Description

Section C: Principle [P] Wise Performance Disclosures- Essential Indicators [E]

1 P-1 [E]-8 Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services
procured).
2 P-1 [E]-9 Details of concentration of purchases and sales with trading houses, dealers, and related
parties along-with loans and advances and investments, with related parties.
3 P-3 [E]-1(c) Spending on measures towards well-being of employees and workers (including
permanent and other than permanent)
4 P-3 [E]-11 Details of safety related incidents:
- Loss Time Injury Frequency Rate (LTIFR) (per one million person hours worked)
(employees and workers)
- Total recordable work related injuries (LTI) (employees and workers)
- Number of fatalities (employees and workers)
- High consequence work-related injury or ill-health (excluding fatalities) (employees and
workers)
5 P-5 [E]-3(b) # Gross wages paid to females as % of total wages paid by the entity.
6 P-5 [E]-7 Complaints filed under the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013:
- Total Complaints on Sexual Harassment (POSH) reported
- Complaints on POSH as a % of female employees / workers
- Complaints on POSH upheld
7 P-6 [E]-1 Details of total energy consumption (in Joules or multiples) and energy intensity;
-Total Energy consumed
- Total energy consumed from renewable sources (% of energy consumed from renewable
sources)
- Energy intensity per rupee of turnover (Total energy consumed / Revenue from
operations)
- Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Total
energy consumed / Revenue from operations adjusted for PPP)
8 P-6 [E]-3 # Disclosures related to water withdrawal and consumption:
-Water withdrawal by source (in kiloliters)
- Total volume of water withdrawal (in kiloliters)
- Total water consumption (in kiloliters)
- Water intensity per rupee of turnover (Total water consumed / Revenue from
operations)
- Water intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Total
Water consumed / Revenue from operations adjusted for PPP)
9 P-6 [E]-4 # Water Discharge by destination and level of treatment (in kiloliters)
10 P-6 [E]-7 Details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) and its intensity:
- Total Scope 1 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3,
if available)
- Total Scope 2 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3,
if available)
- Total Scope 1 and Scope 2 emission intensity per rupee of turnover (Total Scope 1 and
Scope 2 GHG emissions / Revenue from operations)

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Sr. No Indicator No. Description

- Total Scope 1 and Scope 2 emission intensity per rupee of turnover adjusted for
Purchasing Power Parity (PPP)
(Total Scope 1 and Scope 2 GHG emissions / Revenue from operations adjusted for PPP)
11 P-6 [E]-9 # Details related to waste management by the entity:
-Total weight of waste generated (in metric tons)
- Waste intensity per rupee of turnover (Total waste generated / Revenue from
operations)
- Waste intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) (Total
waste generated / Revenue from operations adjusted for PPP)
- For each category of waste generated, total waste recovered through recycling, re-using
or other recovery operations (in metric tons)
- For each category of waste generated, total waste disposed by nature of disposal method
(in metric tons)
12 P-8 [E]-4 Percentage of input material (inputs to total inputs by value) sourced from suppliers.
-Directly sourced from MSMEs/small producers
-Directly from within India
13 P-8 [E]-5 # Job creation wages paid to persons employed (including employees or workers employed
on a permanent or non-permanent / on contract basis), as % of total wage cost.
14 P-9 [E]-7 Information relating to data breaches:
-Number of instances of data breaches
- Percentage of data breaches involving personally identifiable information of customers
- Impact, if any, of the data breaches

# Refer paragraph 11 of this report

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LARSEN & TOUBRO LIMITED

Regd. Office : L&T House, Ballard Estate, Mumbai 400 001.
CIN : L99999MH1946PLC004768
Email: [email protected] • Website: www.larsentoubro.com
Tel No: 022-67525656 • Fax No: 022-67525858

Notice appointment, including the remuneration of the

Statutory Auditors.”
NOTICE IS HEREBY GIVEN THAT the Seventy Ninth 7) Appointment of Mr. Siddhartha Mohanty
Annual General Meeting of LARSEN & TOUBRO LIMITED (representing equity interest of Life Insurance
will be held through VIDEO CONFERENCING OR OTHER Corporation of India), as Director of the Company.
AUDIO-VISUAL MEANS on Thursday, July 4, 2024 at To consider and, if thought fit, to pass as an
3:00 P.M. IST to transact the following business :- ORDINARY RESOLUTION the following:
1) To consider and adopt the audited standalone financial “RESOLVED THAT Mr. Siddhartha Mohanty
statements of the Company for the year ended March (DIN: 08058830) who was appointed as a Director
31, 2024 and the Reports of the Board of Directors in casual vacancy and holds office upto the date
and Auditors thereon; of this Annual General Meeting and is eligible for
2) To consider and adopt the audited consolidated appointment and in respect of whom the Company
financial statements of the Company for the year has received a notice in writing from a member under
ended March 31, 2024 and the report of the Auditors the provisions of Section 160 of the Companies Act,
thereon; 2013 proposing his candidature for the office of
Director, be and is hereby appointed as a Director,
3) To declare a Final Dividend of ¢ 28/- per share of face
liable to retire by rotation.”
value of ¢ 2/- each for FY 2023-24;
8) Amendment to Articles of Association of the
4) To appoint a Director in place of Mr. R. Shankar Raman
Company by deleting Article 107 pertaining to
(DIN: 00019798), who retires by rotation and is eligible
qualification shares.
for re-appointment;
To consider and, if thought fit, to pass as a SPECIAL
5) To appoint a Director in place of Mr. Subramanian
RESOLUTION the following:
Sarma (DIN: 00554221), who retires by rotation and is
eligible for re-appointment; “RESOLVED THAT pursuant to the applicable
provisions of the Companies Act, 2013 and the
6) Appointment of M/s. MSKA & Associates as
relevant rules made thereunder, including any statutory
Statutory Auditors and fix their remuneration.
modification or re-enactment thereof for the time
To consider and, if thought fit, to pass as an being in force as amended from time to time, the
ORDINARY RESOLUTION the following: Articles of Association (the “AOA”) of the Company
“RESOLVED THAT pursuant to Sections 139 and be and is hereby altered by deletion of Article No. 107
142 of the Companies Act, 2013 read with the of the AOA which is reproduced under:
Companies (Audit and Auditors) Rules, 2014 and “The qualification of a Director, other than a Director
other applicable provisions, if any, M/s. MSKA and exofficio or alternate Director, shall be the holding of
Associates, Chartered Accountants (Firm Registration at least one hundred Ordinary Shares of ¢ 2 each in
No. 105047W issued by the Institute of Chartered the Company. A Director may act before acquiring
Accountants of India), be and are hereby appointed his qualification shares, but must acquire the same
as Statutory Auditors of the Company, for a period of within two months after his appointment or election.
5 consecutive years, to hold office from conclusion of A Director ex-officio or alternate Director shall not be
79th Annual General Meeting till conclusion of 84th required to hold qualification shares in the Company.”
Annual General Meeting.
RESOLVED FURTHER THAT the Board of Directors
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized to do
or Audit Committee, be and is hereby authorized all such acts, deeds, matters and things as may be
to decide and finalise the terms and conditions of necessary, proper or expedient for giving effect to the
aforesaid Resolution.”

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9) Issuance of Parent Company Guarantees on variations or re-enactments thereof, Related Party

behalf of Larsen Toubro Arabia LLC: Transactions Policy of the Company and as per the
To consider and, if thought fit, to pass as an recommendation/approval of the Audit Committee
ORDINARY RESOLUTION the following: and/or the Board of Directors of the Company,
approval of the Members of the Company be and is
“RESOLVED THAT pursuant to the provisions of hereby accorded to the Company for entering into
Regulation 23(4) of the SEBI (Listing Obligations and/or continuing to enter into contracts/transactions
and Disclosure Requirements) Regulations, 2015 with L&T Metro Rail (Hyderabad) Limited,
(“Listing Regulations”), the applicable provisions a subsidiary of the Company and Related Party
of the Companies Act, 2013 (“the Act”) alongwith within the meaning of Section 2(76) of the Act and
the Rules made thereunder and other applicable Regulation 2(1)(zb) of the Listing Regulations, in the
laws including any amendments, modifications, nature of a) sale, purchase, lease or supply of goods or
variations or re-enactments thereof, Related Party business assets or property or equipment; b) availing
Transactions Policy of the Company and as per the or rendering of services; c) transfer of any resources,
recommendation/approval of the Audit Committee services or obligations to meet the Company’s business
and/or the Board of Directors of the Company, objectives/requirements; d) Providing inter-corporate
approval of the Members of the Company be and deposits; e) providing parent company guarantees
is hereby accorded to the Company for entering (“Related Party Transactions”), aggregating upto an
into and/or continuing to enter into transactions amount not exceeding ¢ 4,800 crore on such terms
with Larsen Toubro Arabia LLC, a subsidiary of and conditions as may be decided by the Board of
the Company and Related Party within the meaning Directors (including any Committee of Directors
of Section 2(76) of the Act and Regulation 2(1)(zb) thereof) of the Company as they may deem fit.
of the Listing Regulations, for providing Parent
Company Guarantees on behalf of the said subsidiary, RESOLVED FURTHER THAT the Board of Directors
aggregating upto an amount not exceeding ¢ 12,500 and/or the Audit Committee of the Company be and is
crore or USD 1,500 Mn, whichever is higher, on such hereby authorized to delegate all or any of the powers
terms and conditions as may be decided by the Board conferred on it as they may deem fit and to do all
of Directors (including any Committee of Directors such acts and take all such steps as may be considered
thereof) of the Company as they may deem fit. necessary or expedient to give effect to the aforesaid
resolution.
RESOLVED FURTHER THAT the Board of Directors
and/or the Audit Committee of the Company be and is RESOLVED FURTHER THAT all actions taken by
hereby authorised to delegate all or any of the powers the Board of Directors and/or Audit Committee
conferred on it as they may deem fit and to do all in connection with any matter referred to or
such acts and take all such steps as may be considered contemplated in this resolution, be and are hereby
necessary or expedient to give effect to the aforesaid approved and confirmed in all respects.”
resolution. 11) Entering into material Related Party Transactions
RESOLVED FURTHER THAT all actions taken by with L&T Modular Fabrication Yard LLC:
the Board of Directors and/or the Audit Committee To consider and, if thought fit, to pass as an
in connection with any matter referred to or ORDINARY RESOLUTION the following:
contemplated in this resolution, be and are hereby
“RESOLVED THAT pursuant to the provisions of
approved and confirmed in all respects.”
Regulation 23(4) of the SEBI (Listing Obligations
10) Entering into material Related Party Transactions and Disclosure Requirements) Regulations, 2015
with L&T Metro Rail (Hyderabad) Limited: (“Listing Regulations”), the applicable provisions of
To consider and, if thought fit, to pass as an the Companies Act, 2013 (“the Act”) along with
ORDINARY RESOLUTION the following: the Rules made thereunder and other applicable
laws including any amendments, modifications,
“RESOLVED THAT pursuant to the provisions of variations or re-enactments thereof, Related Party
Regulation 23(4) of the SEBI (Listing Obligations Transactions Policy of the Company and as per the
and Disclosure Requirements) Regulations, 2015 recommendation/ approval of the Audit Committee
(“Listing Regulations”), the applicable provisions of and/or the Board of Directors of the Company,
the Companies Act, 2013 (“the Act”) along with approval of the Members of the Company be and is
the Rules made thereunder and other applicable hereby accorded to the Company for entering into
laws including any amendments, modifications, and/or continuing to enter into contracts/transactions

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with L&T Modular Fabrication Yard LLC, a subsidiary equipment; b) availing or rendering of services; c)
of the Company and Related Party within the meaning transfer of any resources, services or obligations to
of Section 2(76) of the Act and Regulation 2(1)(zb) meet the Company’s business objectives/requirements
of the Listing Regulations, in the nature of a) sale, (“Related Party Transactions”), aggregating upto an
purchase, lease or supply of goods or business assets amount not exceeding ¢ 1,500 crore on such terms
or property or equipment; b) availing or rendering and conditions as may be decided by the Board of
of services; c) transfer of any resources, services or Directors (including any Committee of Directors
obligations to meet the Company’s business objectives/ thereof) of the Company as they may deem fit.
requirements (“Related Party Transactions”),
RESOLVED FURTHER THAT the Board of Directors
aggregating upto an amount not exceeding ¢ 4,300
and/or the Audit Committee of the Company be and is
crore on such terms and conditions as may be decided
hereby authorized to delegate all or any of the powers
by the Board of Directors (including any Committee of
conferred on it as they may deem fit and to do all
Directors thereof) of the Company as they may deem
such acts and take all such steps as may be considered
fit.
necessary or expedient to give effect to the aforesaid
RESOLVED FURTHER THAT the Board of Directors resolution.
and/or the Audit Committee of the Company be and is
RESOLVED FURTHER THAT all actions taken by
hereby authorized to delegate all or any of the powers
the Board of Directors and/or the Audit Committee
conferred on it as they may deem fit and to do all
in connection with any matter referred to or
such acts and take all such steps as may be considered
contemplated in this resolution, be and are hereby
necessary or expedient to give effect to the aforesaid
approved and confirmed in all respects.”
resolution.
13) Entering into material Related Party Transactions
RESOLVED FURTHER THAT all actions taken by the
with L&T-MHI Power Boilers Private Limited:
Board of Directors/Audit Committee in connection
with any matter referred to or contemplated in this To consider and, if thought fit, to pass as an
resolution, be and are hereby approved and confirmed ORDINARY RESOLUTION the following:
in all respects.” “RESOLVED THAT pursuant to the provisions of
12) Entering into material Related Party Transactions Regulation 23(4) of the SEBI (Listing Obligations
with L&T Special Steels and Heavy Forgings and Disclosure Requirements) Regulations, 2015
Private Limited: (“Listing Regulations”), the applicable provisions of
the Companies Act, 2013 (“the Act”) along with
To consider and, if thought fit, to pass as an
the Rules made thereunder and other applicable
ORDINARY RESOLUTION the following:
laws including any amendments, modifications,
“RESOLVED THAT pursuant to the provisions of variations or re-enactments thereof, Related Party
Regulation 23(4) of the SEBI (Listing Obligations Transactions Policy of the Company and as per the
and Disclosure Requirements) Regulations, 2015 recommendation/approval of the Audit Committee
(“Listing Regulations”), the applicable provisions of and/or the Board of Directors of the Company,
the Companies Act, 2013 (“the Act”) along with approval of the Members of the Company be and is
the Rules made thereunder and other applicable hereby accorded to the Company for entering into
laws including any amendments, modifications, and/or continuing to enter into contracts/transactions
variations or re-enactments thereof, Related Party with L&T-MHI Power Boilers Private Limited,
Transactions Policy of the Company and as per the a subsidiary of the Company and Related Party
recommendation/approval of the Audit Committee within the meaning of Section 2(76) of the Act and
and/or the Board of Directors of the Company, Regulation 2(1)(zb) of the Listing Regulations, in the
approval of the Members of the Company be and is nature of a) sale, purchase, lease or supply of goods or
hereby accorded to the Company for entering into business assets or property or equipment; b) availing
and/or continuing to enter into contracts/transactions or rendering of services; c) transfer of any resources,
with L&T Special Steels and Heavy Forgings services or obligations to meet the Company’s business
Private Limited, a subsidiary of the Company and objectives/requirements; d) availing inter corporate
Related Party within the meaning of Section 2(76) borrowings (“Related Party Transactions”), aggregating
of the Act and Regulation 2(1)(zb) of the Listing upto an amount not exceeding ¢ 1,200 crore on such
Regulations, in the nature of a) sale, purchase, lease terms and conditions as may be decided by the Board
or supply of goods or business assets or property or

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of Directors (including any Committee of Directors necessary or expedient to give effect to the aforesaid
thereof) of the Company as they may deem fit. resolution.
RESOLVED FURTHER THAT the Board of Directors RESOLVED FURTHER THAT all actions taken by
and/or the Audit Committee of the Company be and is the Board of Directors and/or the Audit Committee
hereby authorized to delegate all or any of the powers in connection with any matter referred to or
conferred on it as they may deem fit and to do all contemplated in this resolution, be and are hereby
such acts and take all such steps as may be considered approved and confirmed in all respects.”
necessary or expedient to give effect to the aforesaid
15) Entering into material Related Party Transactions
resolution.
with Nuclear Power Corporation of India Limited:
RESOLVED FURTHER THAT all actions taken by
To consider and, if thought fit, to pass as an
the Board of Directors and/or Audit Committee
ORDINARY RESOLUTION the following:
in connection with any matter referred to or
contemplated in this resolution, be and are hereby “RESOLVED THAT pursuant to the provisions of
approved and confirmed in all respects.” Regulation 23(4) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015
14) Entering into material Related Party Transactions
(“Listing Regulations”), the applicable provisions of
with LTIMindtree Limited:
the Companies Act, 2013 (“the Act”) along with
To consider and, if thought fit, to pass as an the Rules made thereunder and other applicable
ORDINARY RESOLUTION the following: laws including any amendments, modifications,
“RESOLVED THAT pursuant to the provisions of variations or re-enactments thereof, Related Party
Regulation 23(4) of the SEBI (Listing Obligations Transactions Policy of the Company and as per the
and Disclosure Requirements) Regulations, 2015 recommendation/approval of the Audit Committee
(“Listing Regulations”), the applicable provisions of and/or the Board of Directors of the Company,
the Companies Act, 2013 (“the Act”) along with approval of the Members of the Company be and is
the Rules made thereunder and other applicable hereby accorded for entering into and/or continuing
laws including any amendments, modifications, to enter into contracts/arrangements/transactions with
variations or re-enactments thereof, Related Party Nuclear Power Corporation of India Limited, a
Transactions Policy of the Company and as per the ‘Related Party’ of the Company’s subsidiary viz. L&T
recommendation/approval of the Audit Committee Special Steels and Heavy Forgings Private Limited
and/or the Board of Directors of the Company, within the meaning of Section 2(76) of the Act, in the
approval of the Members of the Company be and is nature of a) sale, purchase, lease or supply of goods
hereby accorded to the Company for entering into or assets or property or equipment; b) rendering
and/or continuing to enter into contracts/transactions of services; c) transfer of any resources, services
with LTIMindtree Limited, a subsidiary of the or obligations to meet the Company’s business
Company and Related Party within the meaning of objectives/requirements (“Related Party Transactions”),
Section 2(76) the Act and Regulation 2(1)(zb) of the aggregating upto an amount not exceeding ¢ 2,800
Listing Regulations, in the nature of a) sale, purchase, crore, on such terms and conditions as may be decided
lease or supply of goods or business assets or property by the Board of Directors (including any Committee of
or equipment; b) availing or rendering of services; Directors thereof) of the Company as they may deem
c) transfer of any resources, services or obligations to fit.
meet the Company’s business objectives/requirements RESOLVED FURTHER THAT the Board of Directors
(“Related Party Transactions”), aggregating upto an and/or the Audit Committee of the Company be and is
amount not exceeding ¢ 2,000 crore, on such terms hereby authorised to delegate all or any of the powers
and conditions as may be decided by the Board of conferred on it as they may deem fit and take all such
Directors (including any Committee of Directors steps as may be considered necessary or expedient to
thereof) of the Company as they may deem fit. give effect to the aforesaid resolution.
RESOLVED FURTHER THAT the Board of Directors RESOLVED FURTHER THAT all actions taken by
and/or the Audit Committee of the Company be and is the Board of Directors and/or the Audit Committee
hereby authorized to delegate all or any of the powers in connection with any matter referred to or
conferred on it as they may deem fit and to do all contemplated in this resolution, be and are hereby
such acts and take all such steps as may be considered approved and confirmed in all respects.”

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16) Ratification of remuneration payable to Cost and no proxies would be accepted by the Company
Auditors for FY 2024-25: pursuant to the MCA Circulars and SEBI Circular
To consider and, if thought fit, to pass as an No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2023/167 dated
ORDINARY RESOLUTION the following: October 7, 2023 (in continuation with the Circulars
issued earlier in this regard) (“SEBI Circulars”). Hence,
“RESOLVED THAT pursuant to Section 148 and other no proxy form has been sent alongwith this Notice.
applicable provisions, if any, of the Companies Act,
2013 and the Companies (Audit and Auditors) Rules, No attendance slip/route map has been sent along
2014, the Company hereby ratifies the remuneration with this Notice as the meeting is held through VC/
of ¢ 18 lakhs plus applicable taxes and out of pocket OAVM.
expenses at actuals for travelling and boarding/
Members who are shareholders as on Thursday,
lodging for the financial year ending March 31, 2025
June 27, 2024 (“Cut-off Date”) can join the AGM 30
to M/s R. Nanabhoy & Co. Cost Accountants (Regn.
minutes before the commencement of the AGM i.e
No. 000010), who are appointed as Cost Auditors to
at 2:30 P.M. and till the time of the conclusion of the
conduct the audit of cost records maintained by the
Meeting by following the procedure mentioned in this
Company for the Financial Year 2024-25.”
Notice.
By Order of the Board of Directors
For LARSEN & TOUBRO LIMITED The attendance through VC/OAVM is restricted and
hence members will be allowed on first come first
SIVARAM NAIR A serve basis. However, as per the MCA Circulars,
COMPANY SECRETARY & attendance of Members holding more than 2% of the
COMPLIANCE OFFICER shares of the Company, Institutional Investors as on
M.NO – F3939 the Cut-off Date, Directors, Key Managerial Personnel
and Auditors will not be restricted on first come first
Mumbai, May 8, 2024
serve basis.
NOTES:
Members attending the Meeting through VC/OAVM
[a] The information required to be provided under the
will be counted for the purposes of Quorum under
SEBI (Listing Obligations and Disclosure Requirements)
Section 103 of the Act.
Regulations, 2015 (“Listing Regulations”) and
Secretarial Standard - 2 on General Meetings, [c] Final Dividend for FY 2023-24:
regarding the Directors who are proposed to be The Board of Directors, at its meeting held on May 8,
appointed/re-appointed and the relative Explanatory 2024, has recommended a Final Dividend of ¢ 28/- per
Statement pursuant to Section 102 of the Companies share, in addition to the Special Dividend of ¢ 6 per
Act, 2013 (“the Act”), in respect of the business under share paid to the shareholders on August 14, 2023.
items 6 to 16 set out above are annexed hereto. The record date for the purpose of payment of Final
[b] Meeting through VC/OAVM Dividend will be Thursday, June 20, 2024 (“Record
Date”). Final Dividend, if approved by the Members
Ministry of Corporate Affairs (“MCA”) vide its
at this Meeting, will be directly credited to the bank
Circular No. 9/2023 dated September 25, 2023 (In
accounts of the shareholders as on the Record Date.
continuation with the Circulars issued earlier in this
regard) (“MCA Circulars”) has allowed conducting SEBI vide its Master Circular No. SEBI/HO/MIRSD/
Annual General Meeting (AGM) through Video POD-1/P/CIR/2024/37 dated May 7, 2024, has
Conferencing (VC) or Other Audio-Visual Means mandated that with effect from April 1, 2024,
(OAVM) without the physical presence of Members dividend to security holders who are holding securities
at a common venue till September 30, 2024. The in physical form, shall be paid only through electronic
MCA Circulars prescribe the procedures and manner mode. Such payment shall be made only after the
of conducting the AGM through VC/OAVM. In shareholders furnish their PAN, contact details (postal
compliance with the applicable provisions of the Act address with PIN and mobile number), bank account
and MCA Circulars, the 79th AGM of the Members details & specimen signature (“KYC”) and choice
will be held through VC/OAVM. Hence, Members can of Nomination. Further, relevant FAQs published by
attend and participate in the AGM through VC/OAVM SEBI on its website can be viewed at the following
only. link: https://www.sebi.gov.in/sebi_data/faqfiles/jan-
Since this AGM is being held through VC/OAVM the 2024/1704433843359.pdf
physical attendance of members is dispensed with

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 Notice

Members holding shares in physical form [e] Dispatch of AGM Notice and Integrated Annual
are requested to furnish Form ISR-1, Form Report through electronic mode:
ISR-2 and SH-13 (available on the Company’s In line with the MCA Circulars and SEBI Circulars,
website at https://investors.larsentoubro.com/ this Notice along with the Integrated Annual
DownloadableForms.aspx#) to update KYC and choice Report for FY 2023-24 is being sent by electronic
of Nomination (in case the same are not already mode to those Members whose email addresses
updated), to KFin Technologies Limited (“KFintech”), are registered with the Company/Depositories/
Selenium Tower B, Plot Nos. 31 & 32, Financial District, Depositary Participants/KFintech. Members may note
Nanakramguda, Serilingampally, Hyderabad - 500032, that the Notice and Integrated Annual Report for
who are the Company’s Registrar and Share Transfer FY 2023-24 will also be available on the Company’s
Agents, so as to reach them latest by the Record website www.larsentoubro.com, websites of the
Date i.e. Thursday, June 20, 2024. Alternatively, Stock Exchanges i.e. BSE Limited and National Stock
members may send the documents by email to Exchange of India Limited at www.bseindia.com and
KFintech at [email protected] or upload on www.nseindia.com respectively and on the website
their webportal https://ris.kfintech.com, provided in of National Securities Depository Limited (NSDL)
both cases the documents furnished shall have digital at www.evoting.nsdl.com. Hard copy of the full
signature of the holders. Integrated Annual Report will be sent to shareholders
In respect of members holding shares in demat mode, who request for the same.
the details as would be furnished by the Depositories The Company will also be publishing an advertisement
as on the Record Date will be considered by the in newspapers containing the details about the AGM
Company. Hence, members holding shares in demat i.e., the conducting of AGM through VC/OAVM, date
mode are requested to update their details with their and time of AGM, availability of notice of AGM at the
Depository Participants at the earliest. Company’s website, manner of registering the email
IDs of those shareholders who have not registered
[d] TDS on Dividend:
their email addresses, manner of providing mandate
Dividend income is taxable in the hands of for dividends, and other matters as may be required.
shareholders and the Company is required to deduct
tax at source from dividend paid to shareholders at [f] Procedure for registration of email address by
the prescribed rates. Also, please note that the TDS shareholders:
rate would vary depending on the residential status, 1. Those Members who have not yet registered their
category of the shareholder, compliant/ non-compliant email address are requested to get their email
status in terms of Section 206AB of the Income Tax addresses registered by following the procedure
Act, 1961 and is subject to submission of all the given below:
requisite declarations/documents to the Company. a) Members holding shares in physical form
For the prescribed rates for various categories, the are requested to furnish Form ISR-1, Form
shareholders are requested to refer to the Income Tax ISR-2 and SH-13 (available on the Company’s
Act, 1961. website at https://investors.larsentoubro.com/
The Company will be sending a communication DownloadableForms.aspx) along with
to the shareholders with the details of applicable the necessary attachments mentioned
tax rates to different categories of shareholders in the said Forms to KFintech, Selenium
and the documents/details required to be Tower B, Plot Nos. 31 & 32, Financial
submitted by the shareholders. These details District, Nanakramguda, Serilingampally,
would also be also available on the website of the Hyderabad - 500032. Members may
Company at https://investors.larsentoubro.com/ also email the duly filled forms to
listing-compliance-agm.aspx. [email protected]. This will enable
the shareholders to receive electronic
Members are requested to provide the documents/ copies of the Integrated Annual Report for
details to KFintech within the time prescribed in FY 2023-24 and this Notice.
the communication being sent to the shareholders
in order to enable us to determine the appropriate b) Members holding shares in demat form may
rate at which tax has to be deducted at source update their email address and other details
under the respective provisions of the Income-tax Act, with their respective Depository Participants.
1961. 2. Members who have already registered their
email addresses are requested to get their

300 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

email addresses validated with their Depository DownloadableForms.aspx# and on the website of
Participants/ KFintech to enable servicing the KFintech at https://ris.kfintech.com. It may be
of notices / documents / Annual Reports noted that any service request can be processed
electronically to their email address. only after the folio is KYC compliant.
[g] Important Information for Shareholders: 3. SEBI on January 24, 2022 has amended
1. Members may note that as per SEBI Master SEBI Listing Regulations and has mandated
Circular No. SEBI/HO/MIRSD/POD-1/P/CIR/2024/37 that transfer of securities should be done
dated May 7, 2024, it is mandatory for all holders in dematerialized form only. In view of the
of physical securities in listed entities to update same and to eliminate all risks associated with
their KYC and choice of Nomination with the physical shares and to avail various benefits
Registrar and Share Transfer Agent (‘RTA’), in of dematerialisation, Members are advised to
case they have not updated the same. As per the dematerialise the shares held by them in physical
SEBI Circular, effective from April 1, 2024, RTA form.
i.e. KFintech will attend to all service requests of [h] Inspection of Documents:
the shareholders with respect to transmission, The Register of Directors and Key Managerial
dividend, etc., only after updating the above Personnel and their shareholding maintained under
details in the records. Section 170 of the Act, the Register of Contracts or
As per the aforesaid SEBI Circular, members Arrangements in which the directors are interested,
holding securities in physical form may note maintained under Section 189 of the Act, and the
that any future dividend payable against their relevant documents referred to in the Notice will be
shareholding would be withheld if their KYC and available electronically for inspection by the members
choice of Nomination are not updated with the during the e-voting period and the AGM.
RTA. All shareholders will also be able to inspect all
For the purpose of updation of KYC and choice of documents referred to in the Notice electronically
Nomination, members are requested to send the without any fee from the date of circulation of this
necessary forms (ISR-1, ISR-2 and SH-13) along Notice up to the date of AGM. Members seeking to
with the necessary attachments mentioned in the inspect such documents may send an email request to
said Forms to KFintech, Selenium Tower B, Plot [email protected].
Nos. 31 & 32, Financial District, Nanakramguda, Transfer of unclaimed dividend and shares to
[i] 
Serilingampally, Hyderabad - 500032. IEPF:
Alternatively, members may send the 1. Pursuant to Section 124 of the Act the unpaid
documents by email to KFintech at dividends that are due for transfer to the Investor
[email protected] or upload on their Education and Protection Fund (IEPF) are as
webportal https://ris.kfintech.com, provided in follows:
both cases the documents furnished shall have Dividend Date of For the year Due for
digital signature of the holders. No. Declaration ended Transfer on
88 22.08.2017 31.03.2017 27.09.2024
2. Members may please note that SEBI vide its
89 23.08.2018 31.03.2018 28.09.2025
Circular No. SEBI/HO/MIRSD/MIRSD_RTAMB/P/
90 01.08.2019 31.03.2019 06.09.2026
CIR/2022/8 dated January 25, 2022 has
91 18.03.2020 31.03.2020 24.04.2027
mandated listed companies to issue securities
92 13.08.2020 31.03.2020 18.09.2027
in dematerialized form only while processing
93 28.10.2020 31.03.2021 02.12.2027
service requests viz. Issue of duplicate securities
94 05.08.2021 31.03.2021 11.09.2028
certificate; claim from unclaimed suspense
95 04.08.2022 31.03.2022 10.09.2029
account; renewal/ exchange of securities
96 25.07.2023 31.03.2024 30.08.2030
certificate; endorsement; sub-division/ splitting 97 09.08.2023 31.03.2023 14.09.2030
of securities certificate; consolidation of
Members who have not encashed their
securities certificates/folios; transmission and
dividend warrants pertaining to the aforesaid
transposition. Accordingly, Members are
years may approach the Company/its
requested to make service requests by submitting
Registrar, for obtaining payments thereof
a duly filled and signed Form ISR – 4, the
atleast 20 days before they are due for
format of which is available on the Company’s
transfer to the IEPF.
website at https://investors.larsentoubro.com/

301
 Notice

2. Adhering to the various requirements set out The Company has appointed NSDL, to provide VC
in the Investor Education and Protection Fund facility for conducting of the AGM.
Authority (Accounting, Audit, Transfer and
Members will be provided with a facility to attend
Refund) Rules, 2016, as amended, the Company
the AGM through VC/OAVM using the NSDL e-voting
has during FY 2023-24 transferred to the IEPF
system. Members may follow the steps mentioned in
Authority all shares in respect of which dividend
this Notice for access to NSDL e-voting system. After
has remained unpaid or unclaimed for seven
successful login, you can see the link of VC/OAVM
consecutive years or more as on the due date
placed under “Join General Meeting” menu against
of transfer. Details of shares transferred to IEPF
the Company name. You are requested to click on the
Authority are available on the website of the
VC/OAVM link placed under “Join General Meeting”
Company and the same can be accessed through
menu.
the link: https://investors.larsentoubro.com/
shareholder-services.aspx. The said details have Please note that the members who do not have the
also been uploaded on the website of the IEPF User ID and Password for e-voting or have forgotten
Authority and the same can be accessed through their User ID and Password may retrieve the same by
the link: www.iepf.gov.in. following the instructions mentioned in this Notice.

[j] Investor Queries and Grievance Redressal: Members can participate in AGM through smart
phone/laptop. However, for better experience and
The Company has designated an exclusive e-mail id
smooth participation it is advisable to join the Meeting
viz. [email protected] to enable Investors to
using Google Chrome, with Laptops connected
register their grievances, if any.
through broadband.
Members seeking any information with regard to the Further Members will be required to use Internet with
accounts or any matter mentioned in the AGM Notice, a good speed to avoid any disturbance during the
are requested to write to the Company on or before meeting.
the Cut-off Date i.e. Thursday, June 27, 2024 at
[email protected]. The same will be replied by Please note that participants connecting from Mobile
the Company suitably. Devices or Tablets or through Laptop via Mobile
Hotspot may experience Audio/Video loss due to
Members may note that in case they have any dispute fluctuation in their respective network. It is therefore
against the Company and/or its Registrar and Share recommended to use Stable Wi-Fi or LAN Connection
Transfer Agent, as per SEBI Circular SEBI/HO/OIAE/ to avoid any disturbances.
OIAE_ IAD-3/P/CIR/2023/195 dated July 31, 2023,
they can file for Online Resolution of Dispute which Members who would like to express their views or ask
harnesses online conciliation and online arbitration for questions during the AGM may register themselves as
resolution of disputes arising in the Indian Securities a speaker by sending a request from their registered
Market. Members can use this mechanism only after email address mentioning their name, DP ID and
they have lodged their grievance with the Company Client ID/folio number, PAN, mobile number to
and SEBI SCORES system and are not satisfied with the [email protected] on or before the
outcome. Cut-off Date i.e. Thursday, June 27, 2024. Those
Members who have registered themselves as a speaker
For more details, please see the following weblinks of and receive a confirmation from the Company will be
the Stock Exchanges: allowed to express their views/ask questions during the
BSE: https://bsecrs.bseindia.com/ecomplaint/ AGM. The Company reserves the right to restrict the
frmInvestorHome.aspx number of speakers depending on the availability of
time for the AGM.
NSE: https://www.nseindia.com/complaints/
[l] E-voting:
online-dispute-resolution
The businesses as set out in the Notice will be
[k] Instruction for attending the meeting through
transacted through electronic voting system and
VC/OAVM:
the Company will provide the facility for voting by
Convenience of different persons positioned in electronic means. In compliance with the provisions
different time zones has been kept in mind before of Section 108 of the Act read with Rule 20 of the
scheduling the time for this Meeting. Companies (Management and Administration) Rules,

302 Integrated Annual Report 2023-24

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2014, Secretarial Standard 2 on General Meetings are already registered with NSDL for remote e-voting,
and Regulation 44 of the Listing Regulations, the then you can use your existing user ID and password
Company is pleased to offer the facility of voting for casting your vote. If you forgot your password,
through electronic means. The said facility of casting you can reset your password by using “Forgot User
the votes by the members using electronic means Details/Password” or “Physical User Reset Password”
(remote e-voting and e-voting during the AGM) will be option available on www.evoting.nsdl.com or call at
provided by NSDL. 022 4886 7000.
A person whose name is recorded in the register Members are requested to follow the instructions
of members or in the register of beneficial owners given in this notice to cast their votes through
maintained by the depositories as on the Cut-off Date e-voting.
of Thursday, June 27, 2024 shall be entitled to avail
The detailed steps on the process and manner for
the facility of remote e-voting or e-voting during the
remote e-voting/e-voting at the AGM and to access
AGM. Persons who are not members as on the Cut-off
the VC facility at the AGM are as follows:
Date should treat this Notice for information purposes
only. Step 1: Access to NSDL e-voting system

The members who have cast their vote through remote I. Login method for remote e-voting and joining
e-voting prior to the AGM may also attend the AGM virtual meeting for Individual shareholders
but shall not be entitled to cast their vote again. holding securities in demat mode.

The remote e-voting period commences on Sunday, In terms of SEBI circular dated December 9, 2020
June 30, 2024 at 9.00 A.M and ends on Wednesday, on e-voting facility provided by Listed Companies,
July 3, 2024 at 5.00 P.M. During this period, members Individual shareholders holding securities in
of the Company holding shares either in physical demat mode are allowed to vote through their
or dematerialised form, as on the cut-off date of demat account maintained with Depositories and
Thursday, June 27, 2024 may cast their vote by Depository Participants. Shareholders are advised
remote e-voting. The remote e-voting module shall be to update their mobile number and email Id in
disabled by NSDL for voting thereafter. their demat accounts in order to access e-voting
facility.
Instructions for e-voting during the AGM:
The e-voting window shall be activated upon Login method for Individual shareholders holding
instructions of the Chairman during the AGM securities in demat mode is given below:
proceedings. Type of Login Method
Only those shareholders, who are present in the shareholders
AGM and have not cast their vote on the Resolutions Individual 1. Existing IDeAS user can visit the
through remote e-voting and are otherwise not Shareholders e-Services website of NSDL Viz.
barred from doing so, shall be eligible to vote through holding https://eservices.nsdl.com either on a
e-voting system available during the AGM. securities in Personal Computer or on a mobile. On
demat mode the e-Services home page click on the
Member(s), whose names appear in the Register with NSDL. “Beneficial Owner” icon under “Login”
of Members / list of Beneficial Owners as on the which is available under ‘IDeAS’ section,
Cut-off Date i.e. Thursday, June 27, 2024 are entitled this will prompt you to enter your existing
to vote on the Resolutions set forth in this Notice. User ID and Password. After successful
Any person who acquires shares of the Company authentication, you will be able to see
e-voting services under Value added
and becomes a member of the Company after the
services. Click on “Access to e-voting” under
notice is sent through e-mail and continues to hold e-voting services and you will be able to
shares as of the Cut-off Date i.e. Thursday, June see e-voting page. Click on company name
27, 2024, may obtain the login ID and password by or e-voting service provider i.e. NSDL and
sending a request to NSDL at [email protected] or you will be re-directed to e-voting website
the Company at [email protected] or follow of NSDL for casting your vote during the
the steps mentioned in the Notice of the AGM under remote e-voting period or joining virtual
“Access to NSDL e-voting system”. However, if you meeting & voting during the meeting.

303
 Notice

Type of Login Method Type of Login Method

shareholders shareholders
2. If you are not registered for IDeAS information provided by the Company.
e-Services, option to register is available On clicking the evoting option, the user
at https://eservices.nsdl.com. Select will be able to see e-voting page of the
“Register Online for IDeAS Portal” or visit e-voting service provider for casting your
URL https://eservices.nsdl.com/SecureWeb/ vote during the remote e-voting period
IdeasDirectReg.jsp or joining virtual meeting & voting during
3. Visit the e-voting website of NSDL. Open the meeting. Additionally, there is also
web browser and type the following URL: link provided to access the system of all
https://www.evoting.nsdl.com/ either on a e-voting Service Providers, so that the user
Personal Computer or on a mobile. Once the can visit the e-voting service providers’
home page of e-voting system is launched, website directly.
click on the icon “Login” which is available 3. If the user is not registered for Easi/
under ‘Shareholder/Member’ section. A new Easiest, option to register is available
screen will open. You will have to enter at CDSL website www.cdslindia.com.
your User ID (i.e. your sixteen digit demat Shareholders are requested to click on
account number held with NSDL), Password/ ‘login’ & ‘New System Myeasi’ Tab and
OTP and a Verification Code as shown on then click on ‘registration’ option.
the screen. After successful authentication,
you will be redirected to NSDL Depository 4. Alternatively, the user can directly
site wherein you can see e-voting page. access e-voting page by providing
Click on company name or e-voting service Demat Account Number and PAN
provider i.e. NSDL and you will be redirected No. from a e-voting link available on
to e-voting website of NSDL for casting your www.cdslindia.com home page. The
vote during the remote e-voting period or system will authenticate the user by
joining virtual meeting & voting during the sending OTP on registered Mobile & Email
meeting. as recorded in the Demat Account. After
4. Shareholders/Members can also download successful authentication, user will be
NSDL Mobile App “NSDL Speede” facility able to see the e-voting option where the
by scanning the QR code mentioned below evoting is in progress and also able to
for seamless voting experience. directly access the system of all e-voting
Service Providers.
Individual You can also login using the login credentials
Shareholders of your demat account through your
(holding Depository Participant registered with NSDL/
securities CDSL for e-voting facility. Upon logging in,
in demat you will be able to see e-voting option. Click
mode) login on e-voting option, you will be redirected to
Individual 1. Users who have opted for CDSL Easi / through their NSDL/CDSL Depository site after successful
Shareholders Easiest facility, can login through their depository authentication, wherein you can see e-voting
holding existing user id and password. Option will participants feature. Click on company name or e-voting
securities in be made available to reach e-voting page service provider i.e. NSDL and you will be
demat mode without any further authentication. The redirected to e-voting website of NSDL for
with CDSL users to login Easi /Easiest are requested casting your vote during the remote e-voting
to visit CDSL website www.cdslindia.com period or joining virtual meeting & voting
and click on login icon & New System during the meeting.
Myeasi Tab and then use your existing my
easi username & password. Important note: Members who are unable to
retrieve User ID / Password are advised to use
2. After successful login the Easi / Easiest Forgot User ID and Forgot Password option
user will be able to see the e-voting available at respective websites.
option for eligible companies where the
evoting is in progress as per the Helpdesk for Individual Shareholders holding
securities in demat mode for any technical

304 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
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issues related to login through Depository i.e. 5. Password details for shareholders other than
NSDL and CDSL. individual shareholders are given below:

Login type Helpdesk details a) If you are already registered for e-voting,
Individual Shareholders Members facing any technical issue in then you can use your existing password
holding securities in login can contact NSDL helpdesk by to login and cast your vote.
demat mode with sending a request at [email protected]
NSDL or call at 022 - 4886 7000 b) If you are using NSDL e-voting system
Individual Shareholders Members facing any technical for the first time, you will need to
holding securities in issue in login can contact CDSL retrieve the ‘initial password’ which was
demat mode with helpdesk by sending a request at communicated to you by NSDL. Once
CDSL [email protected] or
contact at toll free no. 1800 22 55 33 you retrieve your ‘initial password’, you
need to enter the ‘initial password’ and
II. Login method for e-voting for shareholders the system will force you to change your
other than Individual shareholders holding password.
securities in demat mode and shareholders
holding securities in physical mode. c) How to retrieve your ‘initial password’?

1. Visit the e-voting website of NSDL. Open i) If your e-mail ID is registered in

web browser and type the following URL: your demat account or with the
www.evoting.nsdl.com either on a personal company, your ‘initial password’ is
computer or on a mobile. communicated to you on your e-mail
2. Once the home page of e-voting system is ID. Trace the e-mail sent to you from
launched, click on the icon “Login” which NSDL in your mailbox. Open the
is available under “Shareholders / Member” e-mail and open the attachment i.e.
section. a .pdf file. The password to open the
.pdf file is your 8-digit client ID for
3. A new screen will open. You will have to NSDL account, last 8 digits of client
enter your User ID, your Password / OTP and a ID for CDSL account or folio number
Verification Code as shown on the screen. for shares held in physical form. The
Alternatively, if you are registered for NSDL .pdf file contains your ‘User ID’ and
e-services i.e. IDeAS, you can log-in at your ‘initial password’.
https://eservices.nsdl.com/ with your existing
ii) If your email ID is not registered,
IDeAS login. Once you log-in to NSDL
please follow steps mentioned below
e-services after using your log-in credentials,
in process for those shareholders
click on e-voting and you can proceed to Step
whose email ids are not registered.
2 i.e. cast your vote electronically.
4. Your User ID details are given below: 6. If you are unable to retrieve or have not
received the ‘initial password’ or have
Manner of holding Your User ID is: forgotten your password:
shares i.e. Demat
(NSDL or CDSL) or a) Click on “Forgot User Details /
Physical
Password?” (If you are holding
For Members who 8 Character DP ID followed by 8
hold shares in demat Digit Client ID shares in your demat account with
account with NSDL For example, if your DP ID is NSDL or CDSL) option available on
IN300*** and Client ID is www.evoting.nsdl.com.
12****** then your user ID is
IN300***12****** b) Click on “Physical User Reset
For Members who 16 Digit Beneficiary ID Password?” (If you are holding shares
hold shares in demat For example, if your Beneficiary ID in physical mode) option available on
account with CDSL is 12************** then your www.evoting.nsdl.com.
user ID is 12**************
For Members holding EVEN Number followed by Folio c) If you are still unable to get the password
shares in Physical Form Number registered with the by aforesaid two options, you can send a
company.
request at [email protected] mentioning
For example, if EVEN is 123456
your demat account number / folio
and folio number is 001*** then
user ID is 123456001***

305
 Notice

number, your PAN, your name and your “Physical User Reset Password?” option available
registered address. on www.evoting.nsdl.com to reset the password.
d) Members can also use the one-time 2. In case of any queries relating to e-voting you may
password (OTP) based login for casting refer to the FAQs for Shareholders and e-voting
the votes on the e-voting system of user manual for Shareholders available at the
NSDL. download section of www.evoting.nsdl.com
or call on 022 4886 7000 or send a request at
7. After entering your password, tick on Agree
[email protected].
to “Terms and Conditions” by selecting on
the check box. 3. Members who need assistance before or
during the AGM, can contact NSDL on
8. Now, you will have to click on “Login”
[email protected] / or call at 022 4886 7000.
button.
4. A Member can opt for only one mode of voting
9. After you click on the “Login” button, home
i.e. either through remote e-voting or at the
page of e-voting will open.
Meeting. If a Member has cast his vote by remote
Step 2: Cast your vote electronically and join e-voting then he will not be eligible to vote at the
General Meeting on NSDL e-voting system. Meeting.
1. After successful login at Step 1, you will be able 5. Institutional shareholders (i.e. other than
to see all the companies “EVEN” in which you individuals, HUF, NRI, etc.) are required to send
are holding shares and whose voting cycle and scanned copy (PDF/JPG format) of the relevant
General Meeting is in active status. Board Resolution/Authority letter etc., together
2. Select “EVEN 128746” to cast your vote during with attested specimen signature of the duly
the remote e-voting period and casting your vote authorized signatory(ies) who are authorized
during the AGM. For joining virtual meeting, you to vote, to the Scrutinizer through e-mail to
need to click on “VC/OAVM” link placed under [email protected], with a copy marked to
“Join General Meeting”. [email protected]. Institutional shareholders
(i.e. other than individuals, HUF, NRI etc.) can
3. Now you are ready for e-voting as the Voting page also upload their Board Resolution / Power of
opens. Attorney / Authority Letter etc. by clicking on
4. Cast your vote by selecting appropriate options “Upload Board Resolution / Authority Letter”
i.e. assent or dissent, verify / modify the number displayed under “e-voting” tab in their login.
of shares for which you wish to cast your vote Process for those shareholders whose email
and click on “Submit” and also “Confirm” when ids are not registered with the depositories for
prompted. obtaining user id and password and registration
5. Upon confirmation, the message “Vote cast of email ids for e-voting on the resolutions set
successfully” will be displayed. out in this Notice:

6. You can also take the printout of the votes cast 1. In case shares are held in physical mode please
by you by clicking on the print option on the provide Folio No., Name of shareholder, scanned
confirmation page. copy of the share certificate (front and reverse),
PAN (self attested scanned copy of PAN card),
7. Once you confirm your vote on the resolution, you AADHAR (self attested scanned copy of Aadhar
will not be allowed to modify your vote. Card) through email to [email protected].
General Guidelines for shareholders 2. In case shares are held in demat mode, please
1. It is strongly recommended not to share your provide DPID-CLID (16 digit DPID + CLID or 16
password with any other person and take utmost digit beneficiary ID), Name, client master or copy
care to keep your password confidential. Login of Consolidated Account statement, PAN (self
to the e-voting website will be disabled upon attested scanned copy of PAN card), AADHAR
five unsuccessful attempts to key in the correct (self attested scanned copy of Aadhar Card) to
password. In such an event, you will need to go [email protected]. If you are an individual
through the “Forgot User Details/Password?” or shareholder holding securities in demat mode,
you are requested to refer to the login method

306 Integrated Annual Report 2023-24

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

explained at point I above i.e. Login method for Resolutions moved at the Meeting shall be announced
e-voting and joining virtual meeting for Individual by the Chairman or any other person authorized by
shareholders holding securities in demat mode. him, immediately after the results are declared.
3. Alternatively, shareholder/members may send a Based on the report received from the Scrutinizer,
request to [email protected] for procuring user the Company will submit details of the voting results
id and password for e-voting by providing above within 2 working days to the stock exchanges
mentioned documents. as required under Regulation 44(3) of the Listing
Regulations.
The instructions for members for e-voting on the
day of the AGM are as under:- The results declared alongwith the Scrutinizer’s
report, will be hosted on the website of the Company
1. The procedure for e-voting on the day of the
www.larsentoubro.com and on the website of NSDL
AGM is same as the instructions mentioned above
at https://evoting.nsdl.com and will be displayed on
for remote e-voting.
the Notice Board of the Company at its Registered
2. Only those Members/ shareholders, who will be Office as well as Corporate Office immediately
present in the AGM through VC/OAVM facility after the declaration of the result by the Chairman
and have not cast their vote on the Resolutions or any person authorised by him in writing and
through remote e-voting and are otherwise not communicated to the Stock Exchanges.
barred from doing so, shall be eligible to vote
through e-voting system in the AGM. EXPLANATORY STATEMENT
3. Members who have voted through remote As required by Section 102 of the Companies Act, 2013
e-voting will be eligible to attend the AGM. (“the Act”), the following Explanatory Statement sets out
However, they will not be eligible to vote at the material facts relating to the business under items 6 to 16
AGM. of the accompanying Notice dated May 8, 2024.

4. The contact details for any grievances connected Item No. 6

with respect to the facility for e-voting on the day Appointment of M/s. MSKA & Associates as Statutory
of the AGM shall be the same as mentioned for Auditors and fix their remuneration.
remote e-voting. This explanatory statement is in terms of Regulation
[m] Live Webcast of the AGM: 36(5) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (“Listing Regulations”).
Members will be able to view the live webcast of AGM
provided by NSDL at www.evoting.nsdl.com following The Company’s current auditors M/s. Deloitte Haskins
the steps mentioned above for login to NSDL e-voting and Sells LLP (‘DHS’) would be completing their tenure as
system. Statutory Auditors of the Company on conclusion of the
After successful login, you can see Webcast link placed 80th Annual General Meeting of the Company to be held in
under “Join Meeting” menu against the Company the year 2025.
name. You are requested to click on Webcast link- In accordance with provisions of Section 139 of the Act
placed under “Join Meeting” menu. and the Companies (Audit and Auditors) Rules, 2014, the
[n] Information regarding Scrutinizer and declaration Auditors post completion of 2 consecutive terms of total
of Voting results: 10 years, need to step down from Auditorship from the
conclusion of Annual General Meeting.
The Company has appointed Mr. S. N.
Ananthasubramanian, Practicing Company Secretary, Accordingly, the Board of Directors (“Board”) of the
(Membership No. 4206, COP No. 1774) or failing him Company on the recommendation of the Audit Committee,
Mrs. Aparna Gadgil, Practicing Company Secretary, has recommended the appointment of M/s. MSKA and
(Membership No. 14713, COP No. 8430), to act as Associates (‘MSKA’) (Firm registration number 105047W)
the Scrutinizer for conducting the voting and remote as Statutory Auditors for a period of 5 continuous years
e-voting process in a fair and transparent manner. i.e. from the conclusion of 79th Annual General Meeting
The Scrutinizer will submit his report to the Chairman till the conclusion of 84th Annual General Meeting of
or any person authorised by him, after completion the Company in accordance with the provisions of Section
of the scrutiny. The result of the voting on the 139 of the Act and the Companies (Audit and Auditors)
Rules, 2014.

307
 Notice

Basis of recommendation: addition to the audit fee as above and will be decided by
The Board and the Audit Committee considered various the Management in consultation with the Auditors and will
parameters while recommending the appointment of be subject to approval by the Board of Directors and/or the
MSKA as Statutory Auditors of the Company including Audit Committee.
but not limited to their capability to serve a diverse and Further, the remuneration for the remaining tenure
complex business landscape as that of the Company, of MSKA as Statutory Auditors for the FY 2025-26 to
existing experience in the Company’s business verticals FY 2028-29 will be approved by the Board of Directors and/
and segments, market standing of the firm, clientele and or the Audit Committee.
technical knowledge. MSKA was found suitable to handle
the scale, diversity and complexity associated with the audit The remuneration of existing auditors i.e. DHS for
of the financial statements of the Company. FY 2023-24 is ¢ 7 crore. The scope of DHS includes
Statutory Audit, limited review, audit of Internal control
Credentials of MSKA: over Financial Reporting, tax audit and transfer pricing.
Established in 1978, M S K A & Associates is an Audit fee of DHS for the year 2024-25 will be decided by
Indian partnership firm registered with the Institute of Audit committee considering the scope of work and time &
Chartered Accountants of India (ICAI) and the US Public efforts involved.
Company Accountancy Oversight Board (PCAOB) having
The fees are fixed after discussion with the respective
offices across 12 cities in India at Mumbai, Gurugram,
Auditors considering the scope of work, team size, systems
Chandigarh, Kolkata, Ahmedabad, Chennai, Goa, Pune,
and process in place at their respective firms.
Bengaluru, Kochi, Hyderabad and Coimbatore. The audit
firm has a valid peer review certificate. MSKA & Associates MSKA has given their consent to act as Statutory
is a member firm of BDO International. Auditors of the Company and have confirmed that the
said appointment if made will be in accordance with the
The Firm primarily provides Audit & Assurance services,
conditions prescribed under Sections 139 and 141 of the
tax and advisory services, to its clients. The Firm’s Audit &
Act.
Assurance practice has significant experience across various
industries, markets and geographies. Accordingly, the consent of the members is sought
for appointment of MSKA as Statutory Auditors of the
Joint Audit:
Company.
Both the Auditors, DHS and MSKA would jointly conduct
the audit from the conclusion of 79th Annual General The Directors recommend this resolution for approval of
Meeting of the Company till the conclusion of the 80th the shareholders.
Annual General Meeting and will be jointly and severally None of the Directors and Key Managerial Personnel of the
responsible for the audit. This would provide the new audit Company and their relatives are concerned or interested,
firm adequate time to get familiar with the Company’s financially or otherwise, in the resolution set out at Item
operations and processes. No. 6.
Terms and Conditions of appointment of MSKA: Item No. 7:
Tenure: Appointment of Mr. Siddhartha Mohanty
5 years from the conclusion of the 79th Annual General (representing equity interest of LIC), as Director of the
Meeting till the conclusion of the 84th Annual General Company.
Meeting. On the recommendation of the Nomination &
Remuneration: Remuneration Committee, Mr. Siddhartha Mohanty
(DIN: 08058830) was appointed by the Board of Directors
Fixed Remuneration for Statutory Audit, limited review and
as a Director in casual vacancy caused due to withdrawal
audit of Internal control over Financial Reporting - ¢ 1 crore
of nomination of Mr. Hemant Bhargava by Life Insurance
for FY 2024-25 plus applicable taxes, travelling and other
Corporation of India (LIC). Pursuant to Section 161(4) of
out of pocket expenses incurred by them in connection
the Act, Mr. Siddhartha Mohanty will hold office up to
with the statutory audit. The proposed fees is based on the
the date of the forthcoming Annual General Meeting. The
scope of work, team size, industry experience, expertise
Company has received a notice in writing from a member
and the time & efforts required to be put by MSKA for FY
under the provisions of Section 160 of the Act proposing
2024-25. The fees for services in the nature of statutory
the candidature of Mr. Siddhartha Mohanty as Director.
certifications and other professional work will be in

308 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Brief Profile: same, it is proposed to amend the AOA of the Company by

Mr. Siddhartha Mohanty is Chairperson of LIC which with deleting Article 107 pertaining to qualification shares.
its more than $500 billion reserves, is the fourth largest The amended draft AOA is available for inspection of the
insurer globally. He is a post-graduate in Political Science, members in the manner specified in this Notice.
having Bachelor’s degree in Law and a Post Graduate
Certification in Business Management. Mr. Mohanty is an As per the provisions of the Act, alteration of the Articles
avid reader and embraces technological advances with of Association of the Company requires approval of the
enthusiasm. shareholders of the Company by means of a Special
Resolution. The Board of Directors at its meeting held on
He joined LIC as a Direct Recruit Officer in 1985. During May 8, 2024, has accorded its approval to the proposed
his tenure of almost four decades, he has gained a 360 alteration of the Articles of Association, subject to
degree knowledge and experience in every domain of Life approval of the shareholders. Accordingly, approval of the
Insurance. He has worked in Marketing, HR, Legal and shareholders is sought for amendment of the Articles of
Investments. Among the positions he held, most notable Association.
were Sr. Divisional Manager In charge, Regional Manager
of Marketing Vertical, Chief of Investment, Executive The Directors recommend this resolution for approval of
Director (Legal) and CEO of LIC Housing Finance Ltd , a the shareholders.
listed Associate Company of LIC and one of the largest None of the Directors and Key Managerial Personnel of the
Housing Finance Companies in India. Immediately before Company and their relatives are concerned or interested,
becoming Chairperson, Mr. Mohanty had worked as financially or otherwise, in the resolution set out at Item
Managing Director of LIC. No. 8 except to the extent of qualification shares held/to be
He chairs the Boards of various National and International acquired by Directors of the Company.
Subsidiaries and Associate Companies of LIC. In addition, Item Nos. 9 to 15:
he is the Chairperson of the Council of Insurance
Material Related Party Transactions
Ombudsman, Chairman of the Governing Board of
National Insurance Academy and a member of the Council Pursuant to the provisions of Regulation 23(4) of the
of the Institute of Actuaries of India. Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (“Listing
Disclosure as required under Secretarial Standard 2 on Regulations”), material related party transactions require
General Meetings is provided as an Annexure to the Notice. approval of the shareholders through a resolution.
The Board considers that his association would be of For this purpose, a Related Party Transaction will be
immense benefit to the Company and it is desirable to considered ‘material’ if the transaction(s) to be entered into
avail services of Mr. Siddhartha Mohanty as a Director. individually or taken together with previous transactions
Accordingly, the Board recommends the resolution in during a financial year exceeds ¢ 1,000 Crore or 10% of
relation to appointment of Mr. Siddhartha Mohanty as the annual consolidated turnover of the Company as per
a Director representing equity interest of LIC, for the the last audited financial statements of the Company,
approval by the shareholders of the Company. whichever is lower. Considering that 10% of consolidated
Except Mr. Siddhartha Mohanty, being the appointee, turnover of the Company as on March 31, 2024 was
none of the Directors and Key Managerial Personnel of the ¢ 22,111.30 crore, the materiality threshold for seeking
Company and their relatives are concerned or interested, shareholders’ approval is ¢ 1,000 crore.
financially or otherwise, in the resolution set out at Item Issuance of Parent Company Guarantees (PCGs) on
No. 7. behalf of Larsen Toubro Arabia LLC:
Item No. 8: Larsen Toubro Arabia LLC (LTA) was incorporated to bid and
Amendment to Articles of Association of the execute projects in the Kingdom of Saudi Arabia (KSA). The
Company by deleting Article 107 pertaining to Company holds 75% stake in LTA with the remaining 25%
qualification shares. being held by a local partner.
Article 107 of the Articles of Association (AOA) of the LTA has bid for certain large value contracts for
Company mandates Directors to hold 100 qualification engineering, procurement, construction and installation
shares at the time of appointment or acquire them within a for various new offshore facilities and integration with
period of two months from the date of appointment. existing installations in KSA. Generally, these bids have a
condition which require issuance of PCGs for execution of
There is no regulatory requirement which mandates
the awarded projects. The value of these PCGs is equivalent
Directors to hold qualification shares. Considering the

309
 Notice

to the full value of the In Kingdom (IK) portion of the Company will be required to provide funding support by
contract. Such PCGs are to be issued upfront and remain way of an Inter Corporate Deposit (ICD) to LTMRHL.
valid till completion of all obligations under the awarded
Further, the Company also proposes to avail/render services
contract.
from/to LTMRHL and also lease property to/from LTMRHL in
Considering the increasing localization requirements in the the ordinary course of business.
Middle East, it has become imperative for the Company to
Accordingly, approval of the shareholders is sought for
bid for projects through its local subsidiaries. The Company
issuance of PCGs on behalf of LTMRHL, providing ICDs and
had in the past provided similar PCGs in favour of various
entering into other transactions in the ordinary course of
subsidiaries operating in the Middle East. However, post
business, for an amount not exceeding ¢ 4,800 crore.
the amendment in the definition of material related party
transactions, the aforesaid proposal now requires prior The shareholders through a resolution passed by Postal
approval of the shareholders. Ballot on January 18, 2024, approved a proposal for
entering into material related party transactions upto
Based on the expected probability of winning the bid, the
an amount not exceeding ¢ 3,600 crore with LTMRHL.
Company will be required to provide PCGs of value upto
The Company is seeking renewal of approval as well as
¢ 12,500 crore or USD 1500 Mn, whichever is higher, in
approval for certain additional transactions at this AGM to
favour of LTA as per the requirements of the customers
ensure continuity of business.
with respect to the projects.
Transactions with Other Subsidiaries:
Accordingly, an enabling approval of the shareholders
is sought for issuance of PCGs on behalf of LTA upto Given the nature and scope of the business, the Company
¢ 12,500 crore or USD 1500 Mn, whichever is higher. works closely with its related parties (including subsidiaries)
to achieve its business objectives and enters into various
The shareholders through a resolution passed by Postal operational transactions with its related parties, from
Ballot on January 18, 2024, approved issuance of PCGs time to time, in the ordinary course of business and on
on behalf of LTA upto an amount not exceeding ¢ 12,500 arm’s length. Amongst the transactions that Company
crore or USD 1500 Mn, whichever is higher. enters into with its related parties, the estimated value
The Company is seeking renewal of approval at this AGM of the contracts/arrangements/transactions with L&T-MHI
to ensure continuity of business. This will enable LTA to Power Boilers Private Limited, L&T Special Steels and Heavy
procure EPC contracts and benefit the group as a whole. Forgings Private Limited, L&T Modular Fabrication Yard LLC
and LTIMindtree Limited, subsidiaries of the Company
Transactions with L&T Metro Rail (Hyderabad) Limited (“Related Parties”), are likely to exceed the threshold of
(LTMRHL): material Related Party Transactions.
LTMRHL is a subsidiary of the Company formed for
The Company has been undertaking transactions of similar
the development of Hyderabad Metro Rail Project. The
nature in the past in the ordinary course of business and
Project spans 69.20 Km across three elevated corridors in
on arm’s length after obtaining requisite approvals of the
Hyderabad City. The Project has been developed on DBFOT
Audit Committee of the Company. The maximum annual
(Design, Build, Finance, Operate and Transfer) basis under a
value of the proposed transactions with the aforesaid
Public Private Partnership model.
related parties is estimated on the basis of the Company’s
LTMRHL has raised debt in the form of Non-Convertible current transactions with them and the future business
Debentures and Commercial Papers. LTMRHL is prospects.
contemplating setting up bank borrowing limits in case
The proposed transactions, being operational and critical
the market conditions are not favourable for borrowings
in nature, play a significant role in the Company’s business.
through Non-Convertible Debentures and Commercial
Therefore, in order to secure continuity of operations, the
Papers. These borrowings would be utilized to pay off
Company is proposing to seek approval of shareholders for
the existing Non-Convertible Debentures and Commercial
the potential quantum of transactions with the aforesaid
Papers as per the respective maturities. The Company will
related parties.
be required to issue Parent Corporate Guarantee(s) for the
bank borrowing of LTMRHL. The shareholders of the Company at the previous AGM
held on August 9, 2023 had approved a similar proposal
Additionally, LTMRHL has availed facilities from banks. In
for entering/continuing to enter into material related party
the eventuality LTMRHL is unable to meet its obligations
transactions with these Related Parties, which is valid till
under the terms of its agreement with the banks, the
this AGM.

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

The Company is seeking renewal of approval at this AGM plants of NPCIL. The estimated value of the contracts/
to ensure continuity of business. arrangements/transactions with NPCIL, over the next one
year is ¢ 2,800 crore, which shall exceed the threshold of
Transactions with Nuclear Power Corporation of India
material Related Party Transactions.
Limited:
Transactions between a listed entity and related parties of The Company has been undertaking transactions of similar
its subsidiaries are considered as a Related Party Transaction nature in the past which were entered in the ordinary
pursuant to amendment in the definition of related course of business and at arm’s length. The value of the
party transactions under the Listing Regulations. Hence, proposed transactions with NPCIL is estimated on the
transactions between the Company and Nuclear Power basis of the Company’s current transactions and the future
Corporation of India Limited (NPCIL) (Related Party of a business prospects.
subsidiary viz. L&T Special Steels and Heavy Forgings Private The proposed transactions, being operational and critical
Limited) shall be treated as Related Party Transactions. in nature, play a significant role in the Company’s business
NPCIL is a public sector undertaking owned by the and are equally critical for the Government of India. The
Government of India and is responsible for design, said contracts/arrangements/transactions are commercially
construction, commissioning and operation of Nuclear beneficial and in the interest of the Company.
Power Plants. The shareholders of the Company at the previous AGM
The Heavy Engineering vertical of the Company sells held on August 9, 2023 had approved a similar proposal
steam generators, end shields and fittings, etc. for the for entering/continuing to enter into material related party
various Nuclear Power Plants of NPCIL. The Heavy Civil transaction(s) upto an amount not exceeding ¢ 3,000 crore
Infrastructure vertical of the Company carries out various with NPCIL which is valid till this AGM. The Company is
civil and construction works and provides service package seeking a renewal of the approval at this AGM to ensure
equipment, components, systems, etc for atomic power continuity of business with NPCIL.

ADDITIONAL DETAILS OF ALL RELATED PARTY TRANSACTIONS

Particulars Resolution No. 9 Resolution No. 10 Resolution No. 11 Resolution No. 12 Resolution No. 13 Resolution No. 14 Resolution No. 15
Name of the Related Larsen Toubro Arabia LLC (LTA) L&T Metro Rail (Hyderabad) L&T Modular Fabrication L&T Special Steels and L&T-MHI Power Boilers LTIMindtree Limited Nuclear Power Corporation of
Parties Limited (LTMRHL) Yard LLC (MFY) Heavy Forgings Private Private Limited (LMB) (LTIM) India Limited (NPCIL)
Limited (LTSSHF)
Nature of Subsidiary Company(ies) NPCIL is Related Party of
Relationship L&T Special Steels and Heavy
Forgings Private Limited
(Company’s Subsidiary) as per
Section 2(76) of the Act and
hence transactions between
the Company and NPCIL are
Related Party Transactions
pursuant to Regulation 2(1)
(zc) of Listing Regulations
Nature, duration, Providing Parent Company a) Sale, purchase, lease or supply of goods, assets or property or equipment;
tenure, material Guarantees (PCGs) on behalf b) Availing or rendering of services ;
terms, monetary of LTA from this Annual c) Transfer or exchange of any resources, services or obligations to meet the Company’s business objectives/requirements;
value and particulars General Meeting (AGM) till d) Inter-corporate deposits**
of the contract or the next AGM or for a period
e) Providing parent company guarantees.**
arrangement of fifteen months, whichever
is earlier and for an amount f) Availing inter-corporate borrowings.^
not exceeding ¢ 12,500 crore ** Only for LTMRHL
or USD 1500 Mn, whichever ^ Only for LMB
is higher, in accordance with
The approval will be valid from this AGM till the next AGM or for a period of fifteen months, whichever is earlier in accordance with the terms and conditions of the contract/
the terms and conditions of
agreement for the below mentioned amounts:
the contract/agreement to
be executed by LTA with its Name of the Company LTMRHL MFY LTSSHF LMB LTIM NPCIL
customers. Amount (¢ Crore) 4,800 4,300 1,500 1,200 2,000 2,800

311
 Notice

Particulars Resolution No. 9 Resolution No. 10 Resolution No. 11 Resolution No. 12 Resolution No. 13 Resolution No. 14 Resolution No. 15
The PCGs will be valid till the
completion of all statutory
obligations under the relevant
Engineering, Procurement and
Construction (EPC) contract
which is generally 3-5 years
from the date of issuance.
The transaction is in the
ordinary course of business
since the Company has been
issuing such PCGs for the past
several years.
Transaction related Not Applicable The Company may be Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
to providing loan(s)/ required to give an
advances(s) or Inter Corporate Deposit
securities for loan (ICD) upto ¢ 750 crore
taken by a related and Parent Company
party Guarantee upto an amount
of ¢ 4,000 crore.
Details of the Not Applicable Internal accruals Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
source of funds in
connection with
the proposed
transaction
If any financial Not Applicable as no NIL, since funding, if any, Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
indebtedness is indebtedness shall be incurred will be through internal
incurred to make by the Company accruals.
or give such loans/
advances/ securities
for loan and Nature
of Indebtedness/
Cost of Funds/Tenure
Applicable terms, The PCGs will be provided The tenure, interest rate, Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
including covenants, at an arm’s length basis and security and repayment
tenure, interest rate, a fee would be charged. schedule of the ICD will be
repayment schedule, The present charges are determined based on the
whether secured 0.30% per annum for requirement of funds and
(nature of security) Performance Guarantees, will be done in compliance
or unsecured which is benchmarked with with the provisions of the
the Company’s existing bank Act.
guarantee charges. The PCGs will be provided
on an arm’s length
basis and a fee would
be charged which will
be benchmarked with
the Company’s existing
bank guarantee charges
(presently the charges are
0.35% p.a. for Financial
Guarantees). The PCGs will
be valid till the maturity
of the borrowings to be
availed by LTMRHL
Purpose for which Not Applicable LTMRHL has availed Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable
funds will be utilised facilities from banks. In
the eventuality LTMRHL
is unable to meet its
obligations under the terms
of its agreement with the
banks, the Company will
be required to provide
funds to the subsidiary
company.

312 Integrated Annual Report 2023-24

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

Particulars Resolution No. 9 Resolution No. 10 Resolution No. 11 Resolution No. 12 Resolution No. 13 Resolution No. 14 Resolution No. 15
Any advance paid NIL
or received for the
transaction
Percentage of the 5.65% 2.17% 1.94% 0.68% 0.54% 0.90% 1.27%
Company’s annual
consolidated
turnover for the
immediately
preceding financial
year (i.e FY 2023-24)
that is represented
by the value of
the proposed
transaction
Details about As the proposal relates to As the proposal relates The Company is in the The Heavy Engineering The Power business LTIMindtree is a listed The nuclear business
valuation, arms providing Parent Company to providing ICDs/Parent business of bidding for business manufactures and of the Company is subsidiary of the segment of the Heavy Civil
length and ordinary Guarantees on behalf of LTA Company Guarantees various EPC contracts in supplies custom designed into construction and Company engaged Infrastructure vertical of
course of business the question of valuation does on behalf of LTMRHL the India as well as overseas. equipment & critical piping commissioning of power in the business of the Company offers turnkey
not arise. question of valuation does Most of the EPC projects to process industries such plants. Boilers are a providing IT services. services, civil, mechanical,
The PCGs will be provided not arise. involve use of customized as fertilizer, chemical, critical component of the The Company, in electrical, instrumentation
at an arm’s length basis and The ICD will be provided at fabricated structures as per refinery, petrochemical, power plant and hence the ordinary course and modular construction
a fee would be charged. an arm’s length basis and the contract specifications. and oil & gas, as well as procurement of Boilers is of its business, technology and also
The present charges are interest will be charged in As far as Indian projects to sectors such as thermal in the ordinary course of generally procures manufactures and supplies
0.30% per annum for accordance with provisions are concerned, the & nuclear power and business for the Company. various software and custom designed critical
Performance Guarantees, of the Act. Company has its own aerospace. LMB is a joint venture customized software equipment for Nuclear Power
which is benchmarked with fabrication facilities in The Precision Engineering of the Company with solutions form LTIM. Plants.
The PCGs will be provided India. In case of overseas LTIM also provides the
the Company’s existing bank at an arm’s length basis & Systems business Mitsubishi Heavy Industries The Heavy Engineering vertical
guarantee charges. projects, the Company provides concept-to-design Limited (MHI) and is support required on the of the Company manufactures
and a fee would be generally uses such software subsequently.
charged. The present to- delivery customised part of the technical and supplies custom designed
facilities outside India to solutions across chosen collaboration which is Buildings & Factories critical equipment for Nuclear
charges are 0.35% per save on logistics costs.
annum for Financial strategic segments with engaged in construction (B&F) business vertical Power Plants.
Guarantees which is Thus, availing fabrication a focus on indigenous and commissioning of of the Company is The Company has been
benchmarked with the services is an activity in the design and emphasis on power plants. equipped with the carrying out similar activities
Company’s existing bank normal course of business. creating Indian Intellectual While bidding for a project, domain knowledge, for several years in the past
guarantee charges. The Company obtains Property (IP). The business the technical qualifications requisite expertise for these sectors and hence
quotations from various is structured to provide of MHI adds to the pre- and wide-ranging these transactions are in the
parties for its fabrication direction to various qualifications of the experience to ordinary course of business.
activities and based on the segments of operations, as Company. The Company is undertake Engineering,
under: Procurement and The transactions being
price, quality, timelines, charged a price comparable executed by different verticals
etc., the contract gets a) Marine Platforms, with what LMB charges to Construction of all
types of building and of the Company are arising
finalized. Equipment, and its other customers. Hence out of contracts received by
Systems the transaction is at arm’s factory structures.
MFY also quotes for It provides concept the Company from NPCIL
such contracts and gets b) Land Platforms, length. through competitive bidding.
to commissioning
selected only if the quote Equipment, and The Company also avails solutions for IT parks, The commercial terms of
is competitive. Systems infrastructure and business office spaces, high transaction(s) are in line with
c) Aerospace Systems support services with rise towers and green usual business practices.
respect to Boilers from buildings, metro Thus, the transactions can be
Both these businesses LMB. deemed to be at arm’s length.
require customized forging. stations, etc.
Hence procurement of LMB operates from B&F vertical of the
forgings is in the ordinary common campuses across Company proposes to
course of business of the the country and expenses construct commercial
Company. related to the same buildings/IT Parks for
are apportioned by the the use of LTIM.
The businesses procure Company to LMB.
forgings from LTSSHF as
well as external vendors
and hence arm’s length
is decided based on
comparable quotes. Factors
such as timeliness and
quality are also considered
before deciding on the
procurement.

313
 Notice

Particulars Resolution No. 9 Resolution No. 10 Resolution No. 11 Resolution No. 12 Resolution No. 13 Resolution No. 14 Resolution No. 15
The Company also has The contracts will be
other transactions such awarded on competitive
as sale of plant and bidding basis and
machinery, scrap material, hence the transaction
charges for lease of is at arm’s length and
fabrication yard area, etc. in the ordinary course
with LTSSHF. of business of the
LTSSHF operates from a Company.
common campus in Hazira
and expenses related to
the same are apportioned
by the Company to LTSSHF.
Rationale/Benefit of The PCGs are an essential The ICD would enable The Energy & Hydrocarbon The Heavy Engineering The Power business of LTIM is an authorized The Heavy Engineering and
the transaction and part of EPC contracts. LTA LTMRHL to service the business of the Company and Precision Engineering the Company bids for supplier for various Heavy Civil Infrastructure
why this transaction will not be awarded contracts interest component of the bids for various EPC & Systems business of execution of a power plant softwares and gets verticals of the Company bid
is in the interest of without this requirement bank borrowings availed contracts. Customized the Company bids for project after taking into the benefit of bulk for various projects floated by
the Company being fulfilled. by LTMRHL. fabrication activities are an various projects (including consideration various costs purchases. It also NPCIL. Both these verticals
Issuance of such PCGs enables The PCG is an essential essential part of execution defence contracts of the involved. provides service support have specific business
LTA to bid for and execute part for enabling raising of such contracts. Such Government). Procurement of Boilers for such softwares. The segments that cater to the
more EPC contracts in its of funds by LTMRHL. This activities are normally Some of these contracts is an integral part of the Company is able to specialized needs of NPCIL.
country of operations. This will will enable the subsidiary done through MFY which require procurement of installation of a power leverage these benefits Considering that the Company
benefit the group as a whole. company to get the funds has the technical expertise, forgings. LTSSHF is a plant. for its business. has executed similar projects
at competitive rates which facilities and execution prequalified supplier for With respect to for NPCIL in the past, the
capabilities. While bidding for the
will benefit the group as a most of the clients project, the Company construction of technical qualification of the
whole. states that the Boilers commercial buildings/ Company adds to the pre-
and other infrastructure IT Park for LTIM, The qualification requirements
support services will be Company will get stipulated by NPCIL for such
procured from LMB which the benefit of more projects.
is pre-qualified as per the business prospects Execution of projects for
contractual conditions. and timely assured NPCIL will broaden the
payments, while LTIM revenue base of the Company
will be assured of and lead to effective
timely completion of utilization of the business
the project and superior resources that the Company
quality of construction. has created to cater to the
requirements of customers
including NPCIL. This will
ultimately lead to enhanced
shareholder value creation.
The transactions proposed
with NPCIL is purely
commercial in nature and
approval is being sought
on account of the change
in definition of RPTs as
stipulated under Listing
Regulations.
Any other The Company is bound by LTMRHL requires working The Company is expected to bid for various projects during the year.
information relevant confidentiality clause in the capital to fund its The above related party contracts/arrangements will materialize only if the Company succeeds in the tenders being participated.
or important customer contract(s) and operations. It proposes to
for the shareholders hence not in a position to raise funds through bank Since it is not possible to predict the exact amount of the contract(s), enabling approval of shareholders is being sought.
disclose the exact particulars borrowings. Considering
to take an informed of the contracts including the its financial position,
decisio name of the customers. LTMRHL may not be able
to raise funds without the
support of the Company.
The amount of funds
raised will depend on the
requirement of LTMRHL.
Since the exact timing and
amount of borrowing is
not known at this point of
time, an enabling approval
is being sought from the
shareholders.

314 Integrated Annual Report 2023-24

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

Company’s RPT Framework: Item No. 16

The Company has in place a balanced and structured policy Ratification of remuneration payable to Cost Auditors
and process for approval of Related Party Transactions for FY 2024-25:
(RPT) which is reviewed periodically and was last revised In accordance with the provisions of Section 148 of the
on December 14, 2023. The Policy provides the details Act and the Companies (Audit and Auditors) Rules, 2014
required to be provided to the Audit Committee for the (“the Rules”) the Company is required to appoint a Cost
purpose of review of such transactions and grant their Auditor to audit the cost records of the Company, for
approval for the proposed transactions. A justification for products and services specified under Rules issued in
each and every related party transaction is provided to the pursuance to the above section. On the recommendation
Audit Committee which enables them to arrive at the right of the Audit Committee, the Board of Directors had
decisions. Additionally, an update on the actual related approved the appointment of M/s. R. Nanabhoy & Co, Cost
party transactions entered during every quarter is provided Accountants (Regn. No. 000010), as the Cost Auditors of
to the Audit Committee. the Company to conduct audit of cost records maintained
by the Company for the Financial Year 2024-25, at a
The Audit Committee of the Company comprises of only
remuneration of ¢ 18 lakhs plus applicable taxes and out
Independent Directors which helps in providing an objective
of pocket expenses at actuals for travelling and boarding/
judgement to all transactions proposed for approval.
lodging.
Any subsequent material modification in the proposed M/s. R. Nanabhoy & Co., Cost Accountants, have furnished
transactions, as may be defined by the Audit Committee as certificates regarding their eligibility for appointment as
a part of Company’s Policy on Related Party Transactions, Cost Auditors of the Company. In accordance with the
shall be placed before the shareholders for approval, in provisions of Section 148 of the Act read with the Rules,
terms of Regulation 23(4) of the Listing Regulations. the remuneration payable to the cost auditor has to be
ratified by the shareholders of the Company.
SEBI vide its circular dated April 8, 2022 has clarified that a
related party transaction approved by the shareholders shall Accordingly, consent of the members is sought for the
be valid from one AGM till the next AGM of the Company aforesaid purpose.
or for a period of fifteen months, whichever is earlier. The Directors recommend this resolution for approval of
the shareholders.
The Directors recommend the resolutions set out at Item
Nos. 9 to 15 for approval of the Shareholders. None of the Directors and Key Managerial Personnel of the
Company and their relatives are concerned or interested,
None of the Directors and Key Managerial Personnel (KMP) financially or otherwise, in the resolution set out at Item
of the Company and their respective relatives are, in any No. 16.
way, concerned or interested, financially or otherwise, in
By Order of the Board of Directors
the resolutions set out at item Nos. 9 to 15, except to the
For LARSEN & TOUBRO LIMITED
extent of their shareholding in the Company/subsidiary and
Directorship in the respective subsidiaries. SIVARAM NAIR A
COMPANY SECRETARY &
The members may note that as per the provisions of the
COMPLIANCE OFFICER
Listing Regulations, all related parties (whether such related
M.No – F3939
party is a party to the above-mentioned transactions or
not), shall not vote to approve the resolutions set out at Mumbai, May 8, 2024
item Nos. 9 to 15.

315
 Notice

(ANNEXURE TO NOTICE DATED MAY 8, 2024)

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 Director Mr. R. Shankar Raman Mr. Subramanian Sarma Mr. Siddhartha Mohanty
Date of Birth December 20, 1958 February 4, 1958 June 8, 1963
Date of Appointment on October 1, 2011 August 19, 2015 May 28, 2024
the Board
Qualifications B. Com, ACA and ACMA Masters’ Degree in Chemical Engineering from Bachelor’s degree in Law, Post
IIT Bombay Graduate in Political Science and Post
Graduate Certification in Business
Management.
Expertise Vast experience in the Finance, Taxation, Risk Expertise in managing large business portfolios Vast experience in Insurance sector
Management, Legal and Investor Relations in energy sector. in various positions in marketing, HR,
Investment and Legal functions.
Directorships held in 1. LTIMindtree Limited 1. L&T Valves Limited 1. Life Insurance Corporation of
other public companies 2. L&T Realty Developers Limited 2. L&T Energy Green Tech Limited India
including private 3. L&T Seawoods Limited 3. L&T Electrolysers Limited 2. LIC Card Services Limited
companies which are 3. LIC Housing Finance Limited
4. L&T Finance Limited
subsidiaries of public
5. L&T Metro Rail (Hyderabad) Limited 4. LIC Mutual Fund Asset
companies (excluding
Management Limited
foreign companies)
5. LIC Pension Fund Limited
Details of Listed entities None None 1. The India Cements Limited
from which he resigned 2. Mahindra & Mahindra Financial
during the last three Services Limited
years. (Note: Mr. Siddhartha Mohanty
resigned from the above companies
pursuant to withdrawal of
nomination by LIC.)
Memberships/ Member: Member: Member:
Chairmanships of Audit Committee Risk Management Committee Nomination & Remuneration
committees across all 1. L&T Finance Limited 1. Larsen & Toubro Limited Committee
companies 1. Life Insurance Corporation of
2. L&T Metro Rail (Hyderabad) Limited
3. LTIMindtree Limited India
Nomination and Remuneration Stakeholders Relationship
Committee Committee
1. L&T Finance Limited 1. Larsen & Toubro Limited
(appointed effective from May
CSR & Sustainability Committee
28, 2024)
1. Larsen & Toubro Limited
Risk Management Committee
1. L&T Finance Limited
Number of Meetings 6 out of 6 6 out of 6 NA
attended during the year
Shareholding in the Please refer to page no. 345 of this Integrated Annual Report. NIL
Company
Relationships between None None None
directors inter-se

316 Integrated Annual Report 2023-24

 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, July 4, 2024, 3:00 P.M.
2. Mode Video Conference (VC) or Other Audio Visual Means (OAVM)
3. Participation through VC/OAVM Members can login from 02.30 P.M. (IST) on the date of the AGM at www.evoting.nsdl.com.
4. Helpline Number for VC/OAVM NSDL Helpline No. 022 4886 7000
participation
5. Submission of Questions/Queries Members seeking any information with regard to the accounts or any matter mentioned
before AGM in the AGM Notice, are requested to write to the Company on or before the Cut-off Date
i.e. Thursday, June 27, 2024 via email at [email protected]. The same will be replied
by the Company suitably.
6. Speaker Registration before AGM Members may register themselves as a speaker by sending a request from their registered
email address mentioning their name, DP ID and Client ID/folio number, PAN, mobile
number to [email protected] on or before the Cut-off Date i.e. Thursday,
June 27, 2024.
7. Transcript Will be made available post AGM at www.larsentoubro.com
8. Dividend for FY 2023-24 Final Dividend of ¢ 28 per equity share of face value of ¢ 2 each
recommended by the Board
Special Dividend for FY 2023-24 of ¢ 6 per equity share has been paid to the shareholders
on August 14, 2023.
9. Record Date Thursday, June 20, 2024
10. Dividend Payment Date Tentatively on Tuesday, July 9, 2024
11. Cut-off date for e-voting Thursday, June 27, 2024
12. Remote e-voting start time and date Sunday, June 30, 2024, 09.00 A.M
13. Remote e-voting end time and date Wednesday, July 3, 2024, 05.00 P.M
14. Remote e-voting website of NSDL Shares held in Demat mode with NSDL:
1. Shareholders registered for NSDL IDeAS facility: https://eservices.nsdl.com
2. Others: www.evoting.nsdl.com
Shares held in Demat mode with CDSL:
1. Shareholders who have opted for Easi facility of CDSL:
https://web.cdslindia.com/myeasitoken/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 Registrar and Transfer Agent
of e-voting service provider and KFin Technologies Limited
registrar and transfer agent Selenium Tower B, Plot Nos. 31 & 32, Financial District, Nanakramguda,
Serilingampally, Hyderabad – 500032
Tel No: 1800-425-8998/1800-345-4001
Email: [email protected]
E-voting Service Provider
National Securities Depositories Limited (NSDL)
Trade World, A Wing, 4th Floor, Kamala Mills Compound, Lower Parel, Mumbai – 400013
Tel No: 022 4886 7000
Email: [email protected]
16. Email Registration and Contact Demat Shareholders:
Updation Process Contact respective Depository Participant
Physical Shareholders:
Please furnish Form ISR-1, Form ISR-2 and SH-13 (available on the Company’s website at
https://investors.larsentoubro.com/DownloadableForms.aspx) along with the necessary
attachments mentioned in the said Forms to KFin Technologies Limited, Selenium Tower
B, Plot Nos. 31 & 32, Financial District, Nanakramguda, Serilingampally, Hyderabad -
500032. Members may also email the duly filled forms to [email protected].

317
 Board
Report

Board Report
Dear Members,

The Directors have pleasure in presenting their 79th Integrated Annual Report and Audited Financial Statements of Larsen &
Toubro Limited for the year ended March 31, 2024.
FINANCIAL RESULTS:
The Company’s financial performance for the year ended March 31, 2024 is summarised below:
v crore
Particulars 2023-24 2022-23
Profit before depreciation, exceptional items & tax 12619.33 11204.34
Less: Depreciation, amortization, impairment, and obsolescence 1751.01 1371.64
Profit before exceptional items and tax 10868.32 9832.70
Add: Exceptional Items 586.47 –
Profit before tax 11454.79 9832.70
Less: Provision for tax (including tax on exceptional items) 2150.46 1983.73
Net profit after tax 9304.33 7848.97
Add: Balance brought forward from the previous year 35863.32 31131.14
Less: Dividend paid for the previous year 3373.56 3091.42
Less: Special dividend paid 843.39 –
Add/(Less): Gain/(loss) on remeasurement of the net defined benefits plans 10.43 (25.37)
Balance to be carried forward 40961.13 35863.32

PERFORMANCE OF THE COMPANY: September 25, 2023 and the payment was made on
The total income for the financial year under review was September 28, 2023.
¢ 131576.45 crore as against ¢ 114535.93 crore for the AMOUNT TO BE CARRIED TO GENERAL RESERVE:
previous financial year, registering an increase of 14.88%.
The Company has not transferred any amount from profit
The Profit before exceptional items and tax was ¢ 10868.32
and loss to general reserve during FY 2023-24.
crore for the financial year under review as against
¢ 9832.70 crore for the previous financial year. The profit GREAT PLACE TO WORK®
after tax was ¢ 9304.33 crore for the financial year under The Company has been certified by Great Place to Work®
review as against ¢ 7848.97 crore for the previous financial Institute, as a “Great Place to Work® in India”, for
year, registering an increase of 18.54%. the second year running. This prestigious recognition,
BUYBACK OF SHARES: valued by employees and employers globally, reflects
the Company’s unwavering commitment to fostering a
The Company completed its maiden buyback during
culture of trust and care. Building on last year’s employee
FY 2023-24. The Board of Directors at its meeting held
survey, each business unit held in-depth action planning
on July 25, 2023, approved the buyback of equity shares
workshops led by senior leaders. These collaborative
through the Tender Offer route through stock exchange
sessions identified key areas for improvement, resulting in
mechanism, amounting to ¢ 10000 crore (excluding
well-defined action plans to strengthen our workplace. The
tax and transaction costs). After seeking shareholders’
leadership team in the businesses led the action plan based
approval through postal ballot, the Company bought back
on the last year’s survey results to connect and engage
3,12,50,000 equity shares representing 2.22% of the total
with employees, underscoring the Company’s dedication
issued and paid-up equity share capital of the Company
to creating a truly exceptional work environment. This
as on March 31, 2023, at a price of ¢ 3200 per share. The
recognition is a testament to the Company’s 8-decade
buyback was offered to all eligible equity shareholders
legacy of prioritizing a positive work experience, a source
of the Company. Tendering period for the said buyback
of immense pride for the L&T family.
commenced on September 18, 2023 and concluded on

318 Integrated Annual Report 2023-24

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

DIVIDEND: the outstanding amount of Commercial Papers is ¢ 2700

During FY 2023-24, the Company paid special dividend of crore. These Commercial Papers are listed on the Wholesale
¢ 6/- (300%) per equity share amounting to ¢ 843.39 crore. Debt Market Segment of BSE Limited.

The Directors recommend payment of final dividend of The Company has not defaulted on payment of any dues
¢ 28 per equity share of ¢ 2/- each on the share capital to the financial lenders.
amounting to ¢ 3849.07 crore, working out to a payout The Company’s borrowing programmes have received
ratio of 41.37%. Dividend is subject to approval of the highest credit ratings from CRISIL Ratings Limited,
members at the ensuing Annual General Meeting and ICRA Limited and India Ratings and Research Private
deduction of income tax at source. The final dividend, Limited. The details of the same are given on page 355 in
if approved by the members, would be paid to those Annexure ‘B’ – Report on Corporate Governance forming
members whose name appear in the Register of Members part of this Board Report and is also available on the
as on the Record Date mentioned in the Notice convening website of the Company.
the AGM.
CAPITAL EXPENDITURE:
The Dividend payment is based upon the parameters
As at March 31, 2024, the gross value of property,
mentioned in the Dividend Distribution Policy approved
plant and equipment, investment property and other
by the Board of Directors of the Company which is in
intangible assets, including leased assets, were at
line with regulation 43A of the SEBI (Listing Obligations
¢ 21993.62 crore and the net value of property, plant
and Disclosure Requirements) Regulations, 2015.
and equipment, investment property and other intangible
The Policy is uploaded on the Company’s website at
assets, including leased assets, were at ¢ 12463.33 crore.
https://www.larsentoubro.com/corporate/about-lt-group/
Capital Expenditure during FY 2023-24 amounted to
corporate-policies/ .
¢ 2916.46 crore.
CAPITAL & FINANCE:
DEPOSITS:
During FY 2023-24, the Company allotted 4,36,429 equity
During the year under review, the Company has not
shares of ¢ 2/- each upon exercise of vested stock options
accepted any deposits falling within the ambit of section
by the eligible employees under the Employee Stock Option
73 of the Companies Act, 2013 and the rules framed
Schemes.
thereunder. The requisite return for FY 2022-23 with
During FY 2023-24, the Company repaid Non-convertible respect to amount(s) not considered as deposits has been
Debentures amounting to ¢ 4800 crore as per the filed. The Company does not have any unclaimed deposits
repayment schedule. as of date.

The Company has issued and allotted on private SUBSIDIARY / ASSOCIATE / JOINT VENTURE
placement basis, Unsecured, Rated, Listed, Redeemable COMPANIES:
Non-convertible Debentures (NCDs) aggregating ¢ 7000 A statement containing the salient features of the
crore during FY 2023-24. These NCDs are listed on the financial statement of subsidiary / associate / joint
Wholesale Debt Market Segment of National Stock venture companies and their contribution to the overall
Exchange of India Limited. During FY 2023-24, the performance of the Company is provided on pages 648 to
Company also received ¢ 450 crore (¢ 2.5 lakh each on 659 of this Integrated Annual Report.
18,000 Debentures) towards the third and final call on
The Company has formulated a policy on identification
partly paid-up Debentures issued by the Company in
of material subsidiaries in accordance with Regulation
FY 2020-21. The funds raised through issuance of NCDs
16(1)(c) of the SEBI (Listing Obligations and Disclosure
were utilized as per the objects stated in the Information
Requirements) Regulations, 2015 and the same is placed on
Memorandum of the respective NCDs. The Company has
the Company’s website at https://www.larsentoubro.com/
been regular in making payments of principal and interest
corporate/about-lt-group/corporate-policies/. The Company
on the NCDs.
did not have any material subsidiary during FY 2023-24.
The Company has issued Commercial Papers amounting to
¢ 46975 crore during FY 2023-24. As on March 31, 2024,

319
 Board
Report

During the year under review, the Company conditions precedent, agreed under the Share
subscribed to / acquired equity shares in various Purchase Agreement dated November 2, 2023.
subsidiary / associate / joint venture companies. The details b. Sale of stake in L&T Infrastructure
of investments / divestments in subsidiary / associate / joint Development Projects Limited
venture companies during the year are as under: The Company has concluded sale of its entire
A) Shares subscribed/ acquired during the year: equity stake in L&T Infrastructure Development
Projects Limited (‘LTIDPL’) to Epic Concesiones
Name of the Type of No. of shares
Private Limited on April 10, 2024. LTIDPL was a
Company Shares
joint venture between Larsen & Toubro Limited
L&T Semiconductor Equity 95,50,000
Technologies Limited and Canada Pension Plan Investment Board
L&T Offshore Private Equity 4,000 (CPP Investments) holding 51% and 49% shares
Limited respectively. LTIDPL and all its subsidiaries have
L&T Energy Green Tech Equity 5,10,00,007 ceased to be subsidiaries of the Company.
Limited
GH4India Private Equity 10,00,000
 CHEME OF AMALGAMATION OF L&T ENERGY
S
Limited HYDROCARBON ENGINEERING LIMITED (LTEHE) AND
Corporate Park (Powai) Equity 20,50,000 L&T OFFSHORE PRIVATE LIMITED (LTOPL) WITH THE
Private Limited COMPANY (“THE SCHEME”):
Business Park (Powai) Equity 20,50,000 During the year under review, the Board of Directors of
Private Limited the Company approved a Scheme of Amalgamation of
L&T Finance Limited Equity 205 LTEHE and LTOPL with the Company. The said Scheme
L&T Electrolysers Equity 50,000 is subject to the approval of the Hon’ble National
Limited Company Law Tribunals having jurisdiction over these
L&T Metro Rail Equity 2,77,40,00,000 subsidiary companies. The rationale for the Scheme is to
(Hyderabad) Limited improve synergies and optimize administrative and other
Amalgamation of L&T Innovation Campus operational costs. Upon the Scheme becoming effective all
(Chennai) Limited (“LTICCL”) with L&T Seawoods shares held by the Company in LTEHE and LTOPL shall stand
Limited (“LTSL”): cancelled.
The Board of Directors of LTICCL and LTSL approved
PARTICULARS OF LOANS GIVEN, INVESTMENTS MADE,
the Scheme of Arrangement for merger of LTICCL with
GUARANTEES GIVEN OR SECURITY PROVIDED BY THE
LTSL (wholly owned subsidiaries of the Company).
COMPANY:
The Scheme of Amalgamation was approved by the
Hon’ble National Company Law Tribunal, Mumbai The Company has disclosed the full particulars of the
Bench and became effective from March 22, 2024. The loans given, investments made or guarantees given or
Appointed date for the Scheme was April 1, 2023. The security provided during the year, as required under section
Company was allotted 74,38,796 equity shares of LTSL 186 of the Companies Act, 2013, Regulation 34(3) and
as consideration pursuant to the aforesaid Scheme. Schedule V of the SEBI (Listing Obligations and Disclosure
B) Companies Struck off/liquidated: Requirements) Regulations, 2015 in Note 57 forming part
During the year under review, Kesun Iron and Steel of the financial statements.
Company Private Limited was struck off by the PARTICULARS OF CONTRACTS OR ARRANGEMENTS
Registrar of Companies on August 16, 2023. L&T WITH RELATED PARTIES:
Hydrocarbon Caspian LLC, a Joint Venture of the
Pursuant to the SEBI (Listing Obligations and Disclosure
Company based in Azerbaijan was liquidated on
Requirements) Regulations, 2015, the Company has
October 5, 2023.
formulated a Related Party Transactions Policy with clear
C) Equity shares sold / transferred / reduced during threshold limits for related party transactions. During the
the year: year under review, the policy was reviewed by the Audit
a. Sale of stake in L&T Infrastructure Committee and the Board and the thresholds for related
Engineering Limited party transactions were revised.
During the year, the Company has completed
the sale of its entire stake in L&T Infrastructure The updated Related Party Transactions Policy
Engineering Limited to STUP Consultants has been uploaded on the Company’s website
Private Limited, a subsidiary of Assystem SA of https://www.larsentoubro.com/corporate/about-lt-group/
France consequent to completion of customary corporate-policies/.

320 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
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The Company has a process in place to periodically review Pursuant to the recommendation of the Nomination and
and monitor Related Party Transactions. Remuneration Committee (NRC), Mr. S.N Subrahmanyan
was appointed as Chairman and designated as Chairman
All related party transactions entered into during
& Managing Director of the Company with effect from
FY 2023-24 were in the ordinary course of business and
October 1, 2023.
at arm’s length. The Audit Committee has approved
the related party transactions for FY 2023-24 and the During the FY 2023-24, based on the recommendation of
estimated related party transactions for FY 2024-25. the NRC and the Board, the shareholders have approved
the appointment of Mr. Ajay Tyagi and Mr. P. R. Ramesh
There were no Related Party Transactions that have conflict
as Independent Directors of the Company for a term of 5
of interest with the Company.
years with effect from October 31, 2023 upto October 30,
The Company is seeking an enabling approval for certain 2028. The NRC considered the appointment of Mr. Ajay
material related party transactions at the ensuing Annual Tyagi and Mr. P. R. Ramesh as Independent Directors after
General Meeting (AGM). Shareholders are requested evaluating the skills, knowledge and experience required
to refer to the AGM notice at pages 295 to 317 of this on the Board as per the approved skill matrix.
Integrated Annual Report, for details of the proposed
related party transactions. Mr. R. Shankar Raman and Mr. Subramanian Sarma retire
by rotation at the ensuing Annual General Meeting (AGM)
MATERIAL CHANGES AND COMMITMENTS AFFECTING and being eligible, offer themselves for re-appointment.
THE FINANCIAL POSITION OF THE COMPANY, The notice convening the AGM includes the proposal for
BETWEEN THE END OF THE FINANCIAL YEAR AND THE
re-appointment of Directors.
DATE OF THE REPORT:
Other than stated elsewhere in this report, there are no The terms and conditions of appointment of the
material changes and commitments affecting the financial Independent Directors are in compliance with the provisions
position of the Company between the end of the financial of the Companies Act, 2013 and are placed on the website
year and the date of this report. of the Company https://investors.larsentoubro.com/
Listing-Compliance.aspx.
CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND The Company has also disclosed on its website
OUTGO: https://investors.larsentoubro.com/Listing-Compliance.aspx
Information as required to be given under details of the familiarization programs to educate the
section 134(3)(m) of the Companies Act, 2013 read with Independent Directors regarding their roles, rights and
Rule 8(3) of the Companies (Accounts) Rules, 2014 is responsibilities in the Company and the nature of the
provided in Annexure ‘A’ forming part of this Board Report. industry in which the Company operates, the business
model of the Company, etc.
DETAILS OF CHANGES IN DIRECTORS AND KEY
MANAGERIAL PERSONNEL: NUMBER OF MEETINGS OF THE BOARD OF DIRECTORS:
Mr. A. M. Naik stepped down as Non- Executive Chairman This information is given in Annexure ‘B’ - Report on
of the Company with effect from September 30, 2023. He Corporate Governance forming part of this Report.
has been conferred the status of “Chairman Emeritus” by Members are requested to refer to page no. 334 of this
the Board. Integrated Annual Report.
Mr. M. V. Satish ceased to be a Whole-time Director of the
AUDIT COMMITTEE:
Company with effect from April 7, 2024, on account of
superannuation from the services of the Company. The Company has constituted an Audit Committee in
terms of the requirements of the Companies Act, 2013
Mr. M. M. Chitale, Mr. M. Damodaran and Mr. Vikram read with the rules made thereunder and Regulation 18 of
Singh Mehta ceased to be the Independent Directors of the SEBI (Listing Obligations and Disclosure Requirements)
the Company on completion of their tenure on March 31, Regulations, 2015. The details relating to the same are
2024. given in Annexure ‘B’ - Report on Corporate Governance
The Board places on record its appreciation towards forming part of this Board Report. Members are requested
valuable contribution made by them during their tenure as to refer to pages 338 to 341 of this Integrated Annual
Directors of the Company. Report.

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 Board
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STAKEHOLDERS RELATIONSHIP COMMITTEE: The disclosures required to be given under section 135
The Company has constituted a Stakeholders Relationship of the Companies Act, 2013 read with Rule 8(1) of the
Committee in terms of the requirements of the Companies Companies (Corporate Social Responsibility Policy) Rules,
Act, 2013 read with the rules made thereunder and 2014 are given in Annexure ‘C’ forming part of this Board
Regulation 20 of the SEBI (Listing Obligations and Report.
Disclosure Requirements) Regulations, 2015. The details The Chief Financial Officer of the Company has certified
relating to the same are given in Annexure ‘B’ - Report on that CSR funds so disbursed for the projects have been
Corporate Governance forming part of this Board Report. utilized for the purposes and in the manner as approved by
Members are requested to refer to pages 345 and 346 of the Board.
this Integrated Annual Report.
COMPANY POLICY ON DIRECTORS’ APPOINTMENT
NOMINATION AND REMUNERATION COMMITTEE: AND REMUNERATION:
The Company has constituted a Nomination and The NRC has formulated a policy on Directors’ appointment
Remuneration Committee in accordance with the and remuneration including recommendation of
requirements of the Companies Act, 2013 read with remuneration of the key managerial personnel and senior
the rules made thereunder and Regulation 19 of the management personnel, and the criteria for determining
SEBI (Listing Obligations and Disclosure Requirements) qualifications, positive attributes, and independence
Regulations, 2015. The details relating to the same are of a Director. Nomination and Remuneration Policy is
given in Annexure ‘B’ - Report on Corporate Governance provided as Annexure ‘F’ forming part of this Board
forming part of this Board Report. Members are requested Report and also disclosed on the Company’s website at
to refer to pages 341 to 345 of this Integrated Annual https://investors.larsentoubro.com/Listing-Compliance.aspx.
Report. The NRC has also formulated a separate policy on Board
RISK MANAGEMENT COMMITTEE: Diversity.

The Company has constituted a Board Risk Management DECLARATION OF INDEPENDENCE:

Committee in terms of the requirements of Regulation The Company has received Declaration of Independence
21 of the SEBI (Listing Obligations and Disclosure as stipulated under section 149(7) of the Companies Act,
Requirements) Regulations, 2015 and other applicable 2013 and Regulation 25(8) of SEBI (Listing Obligations
provisions, if any. The details relating to the same are given and Disclosure Requirements) Regulations, 2015
in Annexure ‘B’ - Report on Corporate Governance forming from Independent Directors confirming that he/she is
part of this Board Report. Members are requested to refer not disqualified from being appointed/re-appointed/
to pages 347 and 348 of this Integrated Annual Report. continue as an Independent Director as per the criteria
CSR & SUSTAINABILITY COMMITTEE: laid down in section 149(6) of the Companies Act, 2013
and Regulation 16(1)(b) of SEBI (Listing Obligations
The Company has in place a CSR & Sustainability (CSR)
and Disclosure Requirements) Regulations, 2015. The
Committee in terms of the requirements of section 135
same are also displayed on the website of the Company
of the Companies Act, 2013 read with the rules made
https://investors.larsentoubro.com/Listing-Compliance.aspx.
thereunder.
The Independent Directors have complied with the Code
The CSR policy framework is available on the Company’s for Independent Directors prescribed in Schedule IV to the
website at https://www.larsentoubro.com/corporate/ Companies Act, 2013.
about-lt-group/corporate-policies/ and the Annual
The Independent Directors of the Company have registered
Action Plan is available on the Company’s website at
themselves with the data bank maintained by Indian
https://investors.larsentoubro.com/listing-compliance-
Institute of Corporate Affairs (IICA). In terms of section
disclosuresunderstatutes.aspx
150 of the Companies Act, 2013 read with Rule 6(4) of
A brief note regarding the Company’s initiatives with the Companies (Appointment & Qualification of Directors)
respect to CSR and the composition of the CSR Committee Rules, 2014, all Independent Directors are exempted from
is given in Annexure ‘B’ - Report on Corporate Governance undertaking the online proficiency self-assessment test
forming part of this Board Report. Please refer to conducted by the IICA.
pages 346 and 347 of this Integrated Annual Report.

322 Integrated Annual Report 2023-24

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

PERFORMANCE EVALUATION: b) The Directors have selected such accounting policies

The Nomination and Remuneration Committee and the and applied them consistently and made judgements
and estimates that are reasonable and prudent so as to
Board have laid down the manner in which formal annual
give a true and fair view of the state of affairs of the
evaluation of the performance of the Board, Committees,
Company at the end of the financial year and of the
Individual Directors and the Chairman & Managing
profit of the Company for that period;
Director has to be made. All Directors responded through
a structured questionnaire giving feedback about the c) The Directors have taken proper and sufficient care
performance of the Board, its Committees, Individual for the maintenance of adequate accounting records
Directors and the Chairman & Managing Director. in accordance with the provisions of the Companies
Act, 2013 for safeguarding the assets of the Company
As in the previous years, an external consultant was and for preventing and detecting fraud and other
engaged to receive the responses of the Directors and irregularities;
consolidate/ analyze the responses. The same external
d) The Directors have prepared the Annual Accounts on a
consultant’s IT platform was used from initiation till going concern basis;
conclusion of the entire board evaluation process. This
ensured that the process was transparent and independent e) The Directors have laid down an adequate system
of involvement of the Management or the Company’s IT of Internal Financial Controls to be followed by the
Company and such Internal Financial Controls are
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 8, 2024.
The Company has designed and implemented a process
DISCLOSURE OF REMUNERATION:
driven framework for Internal Financial Controls
The details of remuneration as required to be disclosed (“IFC”) within the meaning of the explanation to
under the Companies Act, 2013 and the rules made section 134(5)(e) of the Companies Act, 2013. For the year
thereunder, are given in Annexure ‘D’ forming part of this ended March 31, 2024, the Board is of the opinion that the
Board report. Company has sound IFC commensurate with the nature
The information in respect of employees of the Company and size of its business operations and operating effectively
pursuant to Rule 5(2) and 5(3) of the Companies and no material weakness exists. The Company has a
(Appointment and Remuneration of Managerial Personnel) process in place to continuously monitor the same and
Rules, 2014, as amended from time to time, is provided identify gaps, if any, and implement new and/or improved
in Annexure ‘G’ forming part of this report. In terms of controls wherever the effect of such gaps would have a
section 136(1) of the Companies Act, 2013 and the rules material effect on the Company’s operations.
made thereunder, the Report and Accounts are being sent DEPOSITORY SYSTEM:
to the shareholders excluding the aforesaid Annexure. Any
As the members are aware, the Company’s shares
shareholder interested in obtaining a copy of the same may
are compulsorily tradable in electronic form. As on
write to the Company Secretary at the Registered Office
March 31, 2024, 99.14% of the Company’s total paid
of the Company. None of the employees listed in the said
up capital representing 136,28,46,427 shares are in
Annexure is related to any Director of the Company.
dematerialized form.
DIRECTORS’ RESPONSIBILITY STATEMENT:
Pursuant to amendments in SEBI (Listing Obligations and
The Board of Directors of the Company confirms: Disclosure Requirements) Regulations, 2015, requests
a) In the preparation of Annual Accounts, the applicable for effecting transfer of securities in physical form, shall
accounting standards have been followed along with not be processed by the Company and all requests for
proper explanation relating to any material departures; transmission, transposition, issue of duplicate share

323
 Board
Report

certificate, claim from unclaimed suspense account, In accordance with the provisions of the section 124(6) of
renewal/exchange of securities certificate, endorsement, the Companies Act, 2013 and Rule 6(3)(a) of the Investor
sub-division/split of securities certificate and consolidation Education and Protection Fund Authority (Accounting,
of securities certificates/folios need to be processed only Audit, Transfer and Refund) Rules, 2016 (‘IEPF Rules’),
in dematerialized form. In such cases, the Company the Company has transferred 4,04,158 equity shares
will issue a letter of confirmation, which needs to be of ¢ 2 each (0.03% of total number of shares) held by
submitted to Depository Participant(s) to get credit 2,749 shareholders (0.18% of total shareholders) to IEPF.
of the securities in dematerialized form. Shareholders The said shares correspond to the dividend which had
desirous of availing these services are requested to remained unclaimed for a period of seven consecutive
refer to the detailed procedure for availing these years from the financial year 2015-16. Subsequent to the
services provided on the website of the Company at transfer, the concerned shareholders can claim the said
https://investors.larsentoubro.com/InvestorKit.aspx. shares along with the dividend(s) by making an application
to IEPF Authority in accordance with the procedure
The Company has availed a special contingency insurance
available on www.iepf.gov.in and on submission of
policy towards the risks arising out of the requirements of
such documents as prescribed under the IEPF Rules. The
relating to issuance of duplicate securities, pursuant to SEBI
detailed procedure for claiming shares/dividend transferred
Circular dated May 25, 2022, which is renewed yearly.
to IEPF is made available on the Company’s website at
In view of the numerous advantages offered by the https://investors.larsentoubro.com/Investor-FAQ.aspx.
Depository system as well as to avoid frauds, members
The Company sends specific advance communication to
holding shares in physical form are advised to avail of the
the concerned shareholders at their address registered with
facility of dematerialization from either of the Depositories.
the Company and also publishes notice in newspapers
In adherence to SEBI’s circular to enhance the due diligence providing the details of the shares due for transfer to
for dematerialization of the physical shares, the Company enable them to take appropriate action. All corporate
has provided the static database of the shareholders benefits accruing on such shares viz. bonus shares, etc.
holding shares in physical form to the depositories which including dividend except rights shares shall be credited to
would augment the integrity of its existing systems and IEPF.
enable the depositories to validate any dematerialization
COMPLIANCE WITH SECRETARIAL STANDARDS ON
request.
BOARD AND GENERAL MEETINGS:
TRANSFER TO INVESTOR EDUCATION AND The Company has complied with Secretarial Standards
PROTECTION FUND: on Board Meetings and General Meetings issued by the
The Company has been regularly sending communications Institute of Company Secretaries of India.
to members whose dividends are unclaimed requesting
PROTECTION OF WOMEN AT WORKPLACE:
them to provide/update bank details with Registrar and
Transfer Agents (RTA)/Company, so that dividends paid The Company believes that all the women employees
by the Company are credited to the investor’s account should have the opportunity to work in an environment
on time. Efforts are also made by the Company in free from any conduct which can be considered as Sexual
co-ordination with the RTA to locate the shareholders who Harassment.
have not claimed their dues. The Company is committed to treating every employee
Despite these efforts, an amount of ¢ 12.47 crore towards with dignity and respect. The Company has formulated a
dividend and bonus fractional entitlement which were policy on ‘Protection of Women’s Rights at Workplace’ as
due and payable and remained unclaimed and unpaid per the provisions of the Sexual Harassment of Women at
for a period of seven years, were transferred to Investor Workplace (Prevention, Prohibition & Redressal) Act, 2013
Education and Protection Fund (IEPF) as provided in section and Rules thereunder (‘POSH Act & Rules’). The policy is
125 of the Companies Act, 2013 and the rules made applicable to all L&T establishments located in India. The
thereunder. policy has been widely disseminated. The Company has
constituted Internal Complaints Committees to ensure
Cumulatively, the amount transferred to the said fund was implementation and compliance with the provisions of the
¢ 70.11 crore as on March 31, 2024. aforesaid Act and the Rules.

324 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

This Policy encompasses the following objectives: z Corporate Governance: Pursuant to Regulation
34 of the SEBI (Listing Obligations and Disclosure
z To define Sexual Harassment;
Requirements) Regulations, 2015, a Report on
z To lay down the guidelines for reporting acts of Sexual Corporate Governance and a certificate obtained from
Harassment at the workplace; and the Statutory Auditors confirming compliance with
Corporate Governance requirements provided in the
z To provide the procedure for the resolution and
aforesaid Regulations, are provided in Annexure ‘B’
redressal of complaints of Sexual Harassment.
forming part of this Report.
A detailed procedure for making a Complaint, initiating an z Business Responsibility and Sustainability
enquiry, redressal process and preparation of report within Reporting: As per Regulation 34 of the SEBI (Listing
a stipulated timeline is laid out in the Policy document. Obligations & Disclosure Requirements) Regulations,
The Policy also covers Disciplinary Action for Sexual 2015, a separate section on Business Responsibility
Harassment. The Policy is uploaded on the Company’s and Sustainability Reporting forms a part of this
website at https://www.larsentoubro.com/corporate/ Integrated Annual Report (refer pages 242 to 294).
about-lt-group/corporate-policies/.
z Integrated Reporting: The Company is complying
Training programs and workshops for employees are with the applicable requirements of the Integrated
organised throughout the year. The orientation programs Reporting Framework. The Integrated Report tracks
for new recruits include awareness sessions on prevention the sustainability performance of the organization and
its interconnectedness with the financial performance,
of sexual harassment and upholding the dignity of
showcasing how the Company is adding value to its
employees. Specific programs have been created on
stakeholders. The Integrated Report forms a part of
the digital platform to sensitize employees to uphold
this Integrated Annual report.
the dignity of their colleagues and prevention of sexual
harassment. During FY 2023-24, about 17,426 employees z Annual Return: The Annual Return of the Company
have undergone training through the programs/ workshops for the FY 2023-24 is available on our website
including the awareness sessions held on digital platform. https://investors.larsentoubro.com/listing-compliance-
agm.aspx.
There were 3 complaints received during FY 2023-24. One
z Statutory Compliance: The Company has adequate
complaint has been redressed as per provision of POSH Act
systems and processes in place to comply with all
and Rules. The balance two complaints received during
applicable laws and regulations, pay applicable taxes
Q4 of FY 2023-24 are under inquiry. These complaints are on time, and ensures statutory CSR spend .
being redressed within the timelines prescribed in POSH
Act and Rules. z MSME: The Company has registered itself on Trade
Receivables Discounting System platform (TReDS)
OTHER DISCLOSURES: through the service providers Receivables Exchange
z ESOP Disclosures: There has been no material of India Limited. The Company complies with the
change in the Employee Stock Option Schemes (ESOP requirement of submitting a half yearly return to the
schemes) during the current financial year. Ministry of Corporate Affairs within the prescribed
timelines.
The disclosure relating to ESOPs required to be made
under the provisions of the Companies Act, 2013 z Insolvency and Bankruptcy Code (IBC): There are
and the rules made thereunder and the Securities no proceedings admitted against the Company under
and Exchange Board of India (Share Based Employee the Insolvency and Bankruptcy Code, 2016.
Benefit and Sweat Equity) Regulations, 2021 (SBEB
z KYC registration for holders of physical shares:
Regulations) is provided on the website of the
All shareholders of the Company holding shares in
Company https://investors.larsentoubro.com/listing-
physical form are requested to update their PAN,
compliance-agm.aspx.
Address, Email ID, Bank account details (KYC details)
A certificate obtained from the Secretarial Auditors, and Nomination details with the Company’s Registrar
confirming that the ESOP Schemes of the Company and Share Transfer Agent (RTA) at the earliest, in case
are in compliance with the SBEB Regulations and that the same are not updated.
the Company has complied with the provisions of the
The relevant forms for updating the KYC information
Companies Act, 2013 is also provided in Annexure ‘B’
and Nomination details are provided on the website
forming part of this Report.

325
 Board
Report

of the Company at https://investors.larsentoubro.com/ AUDITORS:

DownloadableForms.aspx M/s. Deloitte Haskins & Sells LLP are the Statutory Auditors
z Reporting of fraud: There were no frauds committed of the Company and shall hold office till the conclusion of
against the Company during FY 2023-24 by its officers 80th Annual General Meeting of the Company.
or employees which are required to be disclosed as per
In view of the mandatory requirement of rotation of
Section 143(12) of the Companies Act, 2013.
auditors, the Board of Directors in its meeting held on
VIGIL MECHANISM: March 26, 2024, appointed M/s. MSKA & Associates
The Company has a Whistle-blower Policy in place (“MSKA”) as the Statutory Auditors of the Company for
since 2004. The Policy has been modified to meet the a term of 5 years i.e. from the conclusion of 79th Annual
requirements of Vigil Mechanism under the Companies General Meeting till the conclusion of 84th AGM of the
Act, 2013 and Regulation 22 of SEBI (Listing Obligations Company, subject to approval of the shareholders. A
and Disclosure Requirements) Regulations, 2015. The proposal for their appointment from the conclusion of the
Whistle Blower Policy is available on the Company’s website 79th AGM till the conclusion of the 84th AGM has been
https://www.larsentoubro.com/corporate/about-lt-group/ included in the Notice of the ensuing AGM.
corporate-policies/.
In order to ensure a smooth transition, both the Auditors
Also see page 348 and 349 forming part of Annexure ‘B’ of would jointly conduct the audit from the conclusion of
this Board Report. 79th AGM of the Company till the conclusion of the 80th
AGM.
DETAILS OF SIGNIFICANT AND MATERIAL ORDERS
PASSED BY THE REGULATORS OR COURTS OR The Auditors have confirmed that they have subjected
TRIBUNALS: themselves to the peer review process of Institute of
During the year under review, there were no material Chartered Accountants of India (ICAI) and hold valid
and significant orders passed by the regulators or courts certificate issued by the Peer Review Board of the ICAI.
or tribunals impacting the going concern status and the
The Audit Committee reviews the independence and
Company’s operations in future.
objectivity of the Auditors and the effectiveness of the
CONSOLIDATED FINANCIAL STATEMENTS: Audit process.
Your Directors are pleased to attach the Consolidated The Auditors attend the Annual General Meeting of the
Financial Statements pursuant to section 129(3) of Company. Also see pages 349 and 350 forming part of
the Companies Act, 2013 and Regulation 34 of the Annexure ‘B’ of this Board Report.
SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, prepared in accordance with the COST AUDITORS:
provisions of the Companies Act, 2013 and the Indian The provisions of section 148(1) of the Companies Act,
Accounting Standards (Ind AS). 2013 are applicable to the Company and accordingly
the Company has maintained cost accounts and records
AUDIT REPORT:
in respect of the applicable products for the year ended
The Auditors’ report to the shareholders does not contain March 31, 2024.
any qualification, observation or comment or adverse
remark. Pursuant to the provisions of section 148 of the Companies
Act, 2013 and as per the Companies (Cost Records
SECRETARIAL AUDIT REPORT: and Audit) Rules, 2014 and amendments thereof, the
The Secretarial Audit Report issued by M/s. S. N. Board, on the recommendation of the Audit Committee,
Ananthasubramanian & Co., Company Secretaries is at its meeting held on May 8, 2024, has approved the
attached as Annexure ‘E’ forming part of this Board appointment of M/s R. Nanabhoy & Co., Cost Accountants,
Report. The Secretarial Audit Report does not contain any as the Cost Auditors for the Company for the financial year
qualification, reservation or disclaimer or adverse remark. ending March 31, 2025 at a remuneration of ¢ 18 lakhs
plus taxes and out of pocket expenses.

326 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

A proposal for ratification of remuneration of the various other stakeholders for their continued co-operation
Cost Auditor for the FY 2024-25 is placed before the and support to the Company. Your Directors also wish to
Shareholders for approval in the ensuing Annual General record their appreciation for the continued co-operation
Meeting. and support received from the Joint Venture Partners and
Associates.
The Report of the Cost Auditors for the financial year
ended March 31, 2024 is under finalization and shall be For and on behalf of the Board
filed with the Ministry of Corporate Affairs within the
prescribed period.
S. N. SUBRAHMANYAN
ACKNOWLEDGEMENT:
Chairman & Managing Director
The Directors take this opportunity to thank the Members, (DIN:02255382)
Customers, Supply Chain Partners, Employees, Financial Date : May 8, 2024
Institutions, Banks, Central and State Government Place : Mumbai
authorities, Regulatory Authorities, Stock Exchanges and

327
 Annexure to
the Board Report

Annexure ‘A’ to the Board Report

Information as required to be given under Cranes with Variable Voltage Variable Frequency
Section 134(3)(m) of the Companies Act, 2013 read with (VVVF) Drive technology at few Manufacturing
Rule 8(3) of the Companies (Accounts) Rules, 2014 Facilities has resulted in considerable reduction in
energy usage.
[A] CONSERVATION OF ENERGY
(i) Steps taken or impact on conservation of energy: (g) Awareness campaigns:
(a) Upgradation of Electrical Equipment: Our organization actively promotes environmental
stewardship through campaigns and training
Upgrading and modernizing electrical equipment
focused on energy saving and water conservation,
and appliances to enhance energy efficiency,
complemented by the celebration of Earth Day
which includes converting and retrofitting ceiling
and Environment Day to heighten awareness and
fans; updating Flux baking and holding ovens
commitment to energy conservation among our
as well as Computer Numerical Control (CNC)
stakeholders.
machines.
(h) Digital initiatives:
Replacing conventional Air Conditioner (AC)
units with inverter-type energy-efficient ACs and Investment in digital solutions to enhance energy
substituting old motors with energy-efficient management across major projects, utilizing
models. digitally enabled fuel browsers and smart meters
for precise tracking and optimization of fuel and
(b) Use of LED lights and energy efficient fans: electrical consumption.
Usage of LED Lights as a replacement of
conventional lighting systems complemented by Deployment of IoT technologies for monitoring
adoption of energy efficient fans with Variable High Speed Diesel (HSD) consumption and digital
Frequency Drives (VFD) has reduced the energy fuel sensors on plant and machinery equipment
consumption significantly. ensured effective utilization and conservation of
resources.
(c) Motion sensors:
(i) Improvements in equipment efficiency and
Strategic Integration of advanced motion sensors
energy savings:
at project sites to ensure adequate consumption
of electricity, leading to substantial energy Upgrading industrial processes by enhancing
savings. furnace insulation, transitioning to induction and
electric plate heating instead of gas preheating,
Installation of timers at over 2000 streetlights to and installing energy-efficient column-mounted
curtail their operational hours resulting in reduced boards.
energy consumption.
Streamlining welding operations by shifting
(d) Natural lighting integration: to inverter-based machines and replacing
Installed translucent roofing panels and sheets conventional transformers, thereby reducing
at project sites to capitalize natural daylight as emissions, and improving energy utilization.
energy resource to illuminate store areas and
(j) Fuel consumption reduction and conversion
sheds.
to electrically operated equipment:
(e) Process redesign: Significant fuel savings with productivity
Optimized energy efficiency by adopting inverter- improvement in DG sets and concrete chain.
based power sources and installing magnetic
Converting air compressors and concrete pumps
resonators in all furnaces.
to electrically operated equipment compared to
Enhancement of system integrity by identifying traditionally fossil fuel based equipment.
and addressing air leakages in flow lines using the
(ii) Steps taken by the Company for utilizing
ultrasonic detection method.
alternate sources of energy:
(f) Variable frequency drives (VFD): (a) Renewable Energy Adoption:
Implementation of VFD in rolling machines and Installation of solar panels at multiple Project
upgradation of Electric Overhead Traveling (EOT) sites and use of solar electric vehicles lead to a

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Overview Discussion and Analysis Report Reports Statements

reduction in reliance on grid and Diesel Generator Integration of a green hydrogen plant for furnace
(DG) set electricity and reduction in greenhouse operations in shop areas and secured Green Power
gas emissions. Purchase Agreements to ensure eco-friendly
power consumption.
Replacement of traditional DG light masts with
Hybrid Solar light masts at project sites helped to Power Purchase Agreement for establishing 2.5
reduce carbon emissions. Megawatt Peak (MWp) Solar Plant to replace
45% of energy usage with renewable energy at
Heavy Engineering business of the Company
Kansbahal Works. The initiative is poised to reduce
entered into a hybrid power purchase agreement
3200 MT Co2 emissions per year by lower thermal
for renewable energy and installed solar rooftop
power consumption.
plants.
Additionally, Talegaon unit of Precision
The strategic use of solar lighting around
Engineering Systems (PES) business has signed an
compound walls of Kanchipuram manufacturing
agreement to establish a 500 KWp onsite Solar
facility of Rubber Processing Machinery (RPM)
plant.
business of the Company lead to significant
energy savings. (iii) Capital investment on energy conservation
equipment:
(b) Wind energy:
z During FY 2023-24, Heavy Engineering business
During the FY 2023-24, Wind energy has been
of the Company has made a Capex investment of
utilized at various project sites of the Company,
¢ 4 Crore on energy conservation and renewable
contributing to reduced reliance on traditional
energy.
energy sources.
z Capital investment of ¢ 0.23 Crore on Solar
(c) Use of alternate fuels:
Installations, Pallet Burners, Solar Electric Vehicles
Usage of Compressed Biogas (CBG) in place of and Hybrid Solar light masts by the Transportation
Liquified Petroleum Gas (LPG) for Galvanizing Infrastructure business of the Company.
Furnace in Tower parts manufacturing plant
resulted in reduced emissions. z Energy - Power business of the Company has
installed 450TR (Ton of Refrigeration) energy
Usage of Piped Natural Gas (PNG) and cleaner efficient water cooler chiller at a cost of
energy source at few projects to power the Hot ¢ 1.35 Crore.
Mix Plants.
z Installation of VFD based cranes, Inverter based
Replacing Fossil fuel-based burners with Pallet ACs and energy efficient water coolers at a cost of
burners at multiple project sites helped reduce ¢ 0.70 crore at Hazira based Manufacturing facility
Greenhouse Gas emissions. of Energy- Hydrocarbon business of the Company.
Usage of renewable biological resources based [B] TECHNOLOGY ABSORPTION:
Biofuel for few project as an alternative to
(i) Efforts made towards technology absorption:
conventional fossil fuels.
z Development of technology for design and supply
Usage of CNG based vehicles and water tankers of Cryogenic Vaporiser for petrochemical industry.
at various project sites of Transportation
Infrastructure business of the Company. z Development of Chemical process technology in
the area of Aqueous Phase Reforming, residue
(d) Green energy: up-gradation (Petroleum Refining) and Coal/
Usage of natural skylight polycarbonate Petcoke Gasification.
sheets on the roofs for augmenting lighting
z Design development for Multi-tubular Reactor
in manufacturing plants leading to reduced
Systems and slug catcher.
electricity consumption during daytime.
z Usage of advanced manufacturing simulation
Adoption of Green Energy Tariff is helping us
technology for optimisation of heat input
reduce Scope-2 emissions at project sites of the
and distortion reduction through selection of
Company.
appropriate number of welding guns for site
repair.

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z Utilization of 3D concrete printing technology projects for Metallurgical & Material Handling
for the construction of the post office building in business, capable of unloading both bottom
Bengaluru and other buildings in Tamil Nadu. discharge wagons and top open wagons. This
machine features unique tailor-made capabilities,
z Development of VFD (Variable Frequency
allowing it to unload 50 wagons within one hour.
Drive) concrete pump, aiming to reduce diesel
consumption and carbon emissions while z Development of straddle carrier, launching Girder
improving energy efficiency in concrete pumping controlling algorithms and data dashboards for
operations. the purpose of better monitoring and improving
machine performance.
z Usage of magnetic wire rope tester to detect
potential faults in tower crane wire ropes, z Improvement in Drum Cooler design for better life
ensuring safety and reliability. and reliability.
z Introduction of in-house developed Electric Vehicle z Capability development in new energy transition
(EV) trolley for transporting finishing materials like technologies viz. Blue/Green Ammonia,
gypsum and sandbags. Sustainable Aviation Fuels, Ammonia Cracking,
Biomass Gasification, Atmospheric Carbon
z Development of Pie Arm Erector with lifting
Capture.
capacity of upto 55 Metric Ton (MT) for Elevated
Metros in order to find an alternative to the portal (ii) Benefits derived like product improvement,
frame arrangement. cost reduction, product development or import
substitution:
z Implementation of the Tunnel Segment
Monitoring System (TSMS) enabling end-to-end z Increased self-reliance and savings in Foreign
tracking and digital documentation of precast Exchange in process plant and refinery equipment
segments, enhancing quality control, and sector.
streamlining the supply chain process for efficient
z Reduction in production cycle time, cost, and
production and delivery to the construction site.
rework due to implementation of advanced
z Implementation of AI-based vision analytics across manufacturing simulation technology.
few projects focusing on ensuring data privacy
z Enhanced and refined on-site fabrication
and security, addressing ethical considerations,
capabilities through continuous improvement
and enhancing algorithm robustness to optimize
initiatives.
safety monitoring and surveillance.
z Development of bladder type T-ring for 2-wheeler z Implementation of erectors has improved pier arm
tyre building machines for continental tyres. segment erection, reducing the cycle time from 50
days to 23 days and enhancing safety.
z Development of an algorithm to calculate the
winding coordinates automatically to wind the z Implementation of the Tunnel Segment
steel around various drum profiles in 2-wheeler Monitoring System (TSMS) has led to considerable
tyre building Machine. time savings and reduced reliance on third-party
applications, resulting in improved operational
z Attached Batch Growth Bio-Reactor (AGBR)
efficiency and cost savings.
technology developed by Water & Effluent
Treatment (WET) business of the Company in z Engineering optimization by implementing
collaboration with CES - Anna University, Chennai, concept of combined building for Wet Ball
combines attached and suspended growth mill and Gypsum Dewatering system enabling
processes with zonal separation for enhanced reduction in overall footprint and concrete
organics and nutrients removal. It utilizes specially quantity.
customized polymeric material with high surface
area, reducing footprint and achieving lower z Redefining operation of Flue-gas desulfurization
sludge production and power consumption. (FGD) systems to suit Indian conditions and
thereby facilitate achieving performance of FGD.
z Development of “Hybrid Tandem Tippler” and
“Long Arm Side Arm Charger” for one of the

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Overview Discussion and Analysis Report Reports Statements

z Usage of AGBR Technology offers advantages (iv) Expenditure incurred on Research & Development:
wherein technical and environmental sustainability v crore
is intertwined viz. power savings and footprint
2023-24
reduction, lesser sludge production and assured
removal of Nitrogen and Phosphorus in sewage Capital 5.86
nutrient removal process. Recurring 163.15
Total 169.01
(iii) Information regarding technology imported
during the last 3 years: Total R&D expenditure as a percentage of total 0.13%
turnover
Status of absorption [C] FOREIGN EXCHANGE EARNINGS AND OUTGO:
Sr. Technology Year of
& reasons for non-
No. Imported Import v crore
absorption, if any
2023-24
1 Full Span 2021-22 Fully absorbed
Foreign Exchange earned 16131.44
Construction
Methodology Foreign Exchange saved / deemed exports 2491.72
Total 18623.16
2 Straddle carrier 2021-22 Fully absorbed
Foreign Exchange used 18448.48

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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.
The Company strives to adopt policies and practices that meet the highest ethical standards. Commitment to good
governance has a distinctive competitive advantage, enhances trust and creates long-term sustainability. The Company
has been guided by the belief that the strong relationship between culture and strategy will consistently produce
improved financial performance, better employee engagement, ethical behaviour and stakeholder satisfaction.
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 Directors, Non-Executive Directors and
Independent Directors.
(ii) Executive Management – by the Executive Committee (ECom) comprising the Chairman & Managing Director, all
Executive Directors and senior leaders.
(iii) Strategy & Operational Management – by the Independent Company Boards of each Independent Company (IC)
(not legal entities) comprising 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. 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:
z Review of major order prospects (Standalone/ Group) / “Integrated offerings”

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Overview Discussion and Analysis Report Reports Statements

z Review of consolidated financials including working capital, cash flow, capital structure, etc.

z Review of Monthly / Quarterly / Yearly financial performance

z Review of Revenue, Capital & Manpower Budget and performance thereagainst

z 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 & Analytics initiatives

(v) ESG Matters

z Approval of Company policies

z Strategic plans and business portfolio reviews

z Sharing of best practices, etc.

c. The Chairman & Managing Director (CMD):

The CMD is fully accountable to the Board for the Company’s business development, operational excellence, business
results, leadership development and other related responsibilities.

d. Executive Directors / 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.

The profiles and expertise of all Executive Directors who are responsible for various business of the Company are
available on the Company’s website at https://larsentoubro.com/corporate/about-lt-group/leadership/.

Senior Management Personnel means all members of management one level below the Executive Directors including
the Chief Financial Officer and Company Secretary. Presently, persons in Sr. Vice President grade and F&A heads of
Independent Companies reporting to Whole-time Directors are covered as Senior Management Personnel. During
the year, Mr. Sthaladipti Saha was elevated as Senior Vice President & IC Head (designate), Buildings & Factories IC
with effect from April 7, 2023, Mr. Shrinath Rao was elevated as Senior Vice President & IC Head Transportation
Infrastructure IC with effect from July 17, 2023 and Mr. E. P. Sajit was elevated as Senior Vice President & Head,
Water & Effluent Treatment IC with effect from October 2, 2023.

e. Non-Executive Directors / 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.

The profiles and expertise of all Independent Directors/Non-executive Directors of the Company are available on the
Company’s website at https://larsentoubro.com/corporate/about-lt-group/leadership/.

f. Independent Company Board (IC Board):

The Company has a Hybrid Holdco Structure comprising ‘Independent Companies’ (ICs) (not legal entities).

333
 Annexure to
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Each IC is governed by an IC Board comprising 2 to 3 Independent Members akin to Independent Directors and
senior executive members. The IC Board, inter alia, oversees:
z Implementation of Lakshya i.e. the Company’s strategic plan
z Leadership pipeline/ succession planning
z Revenue, capital & manpower Budget
z ESG matters and Risk assessments as necessary
z Assist in solving problems pertaining to specific issues.
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 March 31, 2024, the Board comprised the CMD, 6 Executive Directors, 1 Non-Executive Director (representing
a financial institution) and 9 Independent Directors, including one Independent Woman Director. This excludes 3
Independent Directors who completed their tenure on March 31, 2024. The composition of the Board, as on March
31, 2024, 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’).
Details of changes in composition of the Board forms part of Board Report.
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. During the year under review,
6 meetings were held on May 10, 2023, July 25, 2023, September 30, 2023, October 31, 2023, January 30, 2024
and March 26, 2024.
The Independent Directors met on May 9, 2023, July 24, 2023 and September 30, 2023 to discuss, inter alia, the
performance evaluation of the Board as a whole, succession planning 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 Independent Directors further met on May 8, 2024 and discussed inter alia the Board Evaluation Report for FY
2023-24. The topics, inter alia, discussed were with regard to need for making presentation on Human Resource
Strategy and detailed discussions on new businesses of the Company.
The Company Secretary prepares the agenda and the explanatory notes, in consultation with the CMD 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. 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 approved 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.

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The following is the composition of the Board of Directors as on March 31, 2024. Their attendance at Board
Meetings during the year and at the previous Annual General Meeting is as under:

No. of Board
Meetings held Attendance at
Name of Director Category Meetings
during the year previous AGM
attended
Mr. S. N. Subrahmanyan CMD 6 6 Yes
Mr. R. Shankar Raman ED & CFO 6 6 Yes
Mr. M. V. Satish& ED 6 6 Yes
Mr. Subramanian Sarma ED 6 6 Yes
Mr. S. V. Desai ED 6 6 Yes
Mr. T. Madhava Das ED 6 6 Yes
Mr. Anil V Parab ED 6 6 Yes
Mr. M. M. Chitale$ ID 6 6 Yes
Mr. M. Damodaran$ ID 6 6 Yes
Mr. Vikram Singh Mehta$ ID 6 6 Yes
Mr. Adil Zainulbhai ID 6 5 Yes
Mr. Sanjeev Aga ID 6 6 Yes
Mr. Narayanan Kumar ID 6 5 Yes
Mr. Hemant Bhargava (Note 1) NED 6 6 No
Mrs. Preetha Reddy ID 6 5 Yes
Mr. Pramit Jhaveri ID 6 6 Yes
Mr. Rajnish Kumar^ ID 5 5 Yes
Mr. Jyoti Sagar^ ID 5 5 Yes
Mr. Ajay Tyagi* ID 3 3 –
Mr. P. R. Ramesh* ID 3 3 –
Meetings held during the year are expressed as number of meetings eligible to attend.
& Ceased as Executive Director of the Company w.e.f. April 7, 2024.
$ Ceased as Independent Director of the Company w.e.f. March 31, 2024.

^Appointed as an Independent Director of the Company w.e.f. May 10, 2023.

*Appointed as an Independent Director of the Company w.e.f. October 31, 2023.
Note 1: Representing equity interest of Life Insurance Corporation of India.
CMD - Chairman & Managing Director ED - Executive Director NED - Non-Executive Director
ID - Independent Director ED & CFO - Executive Director and Chief Financial Officer

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.
As on March 31, 2024, 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 Equity

No. of Committee
Name of Director company Committee Listed entities where he/ Category of Directorship
Chairpersonships
Directorships Membership she holds Directorship
Mr. S. N. Subrahmanyan 6 0 0 LTIMindtree Limited Non- Executive
Vice- Chairman
L&T Technology Services Non- Executive
Limited Vice- Chairman
L&T Finance Limited Non-Executive Chairman
(Formerly L&T Finance
Holdings Limited)
Mr. R. Shankar Raman 6 4 0 LTIMindtree Limited Non-Executive Director
L&T Finance Limited Non-Executive Director
(Formerly L&T Finance
Holdings Limited)

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No. of other No. of Names of other Equity

No. of Committee
Name of Director company Committee Listed entities where he/ Category of Directorship
Chairpersonships
Directorships Membership she holds Directorship
Mr. M. V. Satish 1 0 0 None
Mr. Subramanian Sarma 3 0 0 None
Mr. S. V. Desai 2 0 0 None
Mr. T. Madhava Das 0 1 0 None
Mr. Anil V Parab 2 1 0 None
Mr. Adil Zainulbhai 7 2 5 Network18 Media & Chairman and
Investment Limited Independent Director
Cipla Limited Independent Director
TV18 Broadcast Limited Chairman and
Independent Director
Mr. Sanjeev Aga 3 2 2 LTIMindtree Limited Independent Director
Pidilite Industries Limited Independent Director
Mahindra Holidays & Resorts Independent Director
India Limited
Mr. Narayanan Kumar 3 1 2 L&T Technology Services Independent Director
Limited
Entertainment Network Independent Director
(India) Limited
Mr. Hemant Bhargava 3 3 1 UGRO Capital Limited Independent Director
ITC Limited Independent Director
SMC Global Securities Independent Director
Limited
Mrs. Preetha Reddy 8 2 0 Apollo Hospitals Enterprise Whole-time Director
Limited
Mr. Pramit Jhaveri 2 2 0 Bajaj Finance Limited Independent Director
Bajaj Finserv Limited Independent Director
Mr. Rajnish Kumar 3 0 1 Ambuja Cements Limited Independent Director
Hero Motocorp Limited Independent Director
Mr. Jyoti Sagar 0 0 0 – –
Mr. Ajay Tyagi 1 0 1 – –
Mr. P. R. Ramesh 8 3 4 Nestle India Limited Independent Director
Crompton Greaves Consumer Independent Director
Electricals Limited
Tejas Networks Limited Independent Director
Cipla Limited Independent Director

z Other Company Directorships includes directorships in all public limited companies and excludes private limited
companies, foreign companies and Section 8 companies.
z The details of positions held as Member/Chairperson of Committees are disclosed as per Regulation 26 of the
SEBI LODR Regulations and covers only Stakeholders’ Relationship Committee and Audit Committee of public
companies.
c. Information to the Board:
The Board of Directors are provided information relating to the Company, which inter alia includes -
z Annual revenue budgets and capital expenditure plans
z Quarterly results and results of operations of ICs and business segments
z Financing plans of the Company
z Minutes of meetings of Board of Directors, Audit Committee, Nomination & Remuneration Committee,
Stakeholders Relationship Committee, Board Risk Management Committee and CSR & Sustainability Committee
z 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

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z 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
z 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
z Developments in respect of human resources/industrial relations
z 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.
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:

Sr. No Experience / Expertise / Attribute Comments

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 and experience Should possess domain knowledge in businesses in which the Group participates viz. Infrastructure,
Power, Heavy Engineering, Precision 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 Exposure in policy Should possess ability to develop professional relationship with the Policy makers and Regulators for
shaping and industry advocacy contributing to the shaping of Government policies in the areas of Company business.
4 Governance including legal Commitment, belief and experience in setting corporate governance practices to support the
compliance Company’s robust legal compliance systems and governance policies/practices.
5 Expertise/Experience in Finance & Ability to understand financial policies, accounting statements and disclosure practices and contribute
Accounts / Audit / Risk Management to the financial/risk management policies/ practices of the Company across its business lines and
areas geography of operations.
6 Global Experience / International Ability to have access and understand business models of global corporations, relate to the
Exposure developments with respect to leading global corporations and assist the Company to adapt to
the local environment, understand the geo political 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 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. S. N. Subrahmanyan √ √ √ √ √ √
2. Mr. R. Shankar Raman √ √ √ √ √ X
3. Mr. Subramanian Sarma √ √ √ √ X √
4. Mr. M. V. Satish # √ √ X √ X √
5. Mr. S. V. Desai √ √ X √ X √
6. Mr. T. Madhava Das √ √ X √ X √
7. Mr. Anil V Parab √ √ X √ X √

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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
8. Mr. Adil Zainulbhai √ X √ √ X √
9. Mr. Sanjeev Aga √ X √ √ √ X
10. Mr. Narayanan Kumar √ √ √ √ √ X
11. Mr. Hemant Bhargava √ X √ √ √ X
12. Mrs. Preetha Reddy √ X √ √ X √
13. Mr. Pramit Jhaveri √ X X √ √ √
14. Mr. Rajnish Kumar* √ X √ √ √ √
15. Mr. Jyoti Sagar* √ X √ √ X √
16. Mr. Ajay Tyagi^ √ X √ √ √ √
17. Mr. P. R. Ramesh^ √ X √ √ √ √
# Ceased to be a Director with effect from April 7, 2024.
* Appointed as an Independent Director with effect from May 10, 2023.
^ Appointed as an Independent Director with effect from October 31, 2023.
Note: Absence of any skill does not necessarily mean that the Director does not possess the skill.

F. BOARD COMMITTEES that the financial statement is correct,

The Board currently has 5 Committees: 1) Audit sufficient and credible.
Committee, 2) Nomination and Remuneration z Recommending to the Board, the
Committee, 3) Stakeholders’ Relationship Committee, appointment, re-appointment, terms
4) CSR & Sustainability Committee and 5) Board Risk of appointment and, if required, the
Management Committee. The terms of reference of replacement or removal of the statutory
the Board Committees are in compliance with the auditor and fixation of remuneration of
provisions of the Companies Act, 2013, SEBI LODR statutory auditors.
Regulations and are also reviewed by the Board
z Approval of payment to statutory
from time to time. The Board is responsible for
auditors for any other services rendered
constituting, assigning and co-opting the members
by the statutory auditors.
of the Committees. The meetings of each Board
Committee are convened by the Company Secretary z Discussion with statutory auditors, before
in consultation with the respective Committee the audit commences, about the nature
Chairperson. The role and composition of these and scope of audit as well as post-audit
Committees including the number of meetings held discussion to ascertain any area of
during the financial year and the related attendance concern.
are provided in the subsequent paragraphs. z Reviewing, with the management, the
1) Audit Committee annual financial statements and the audit
report before submission to the Board for
The Company constituted the Audit Committee in
approval, with particular reference to:
1986, well before it was mandated by law.
1. Matters required to be included
i) Terms of reference:
in the Directors’ Responsibility
The role of the Audit Committee includes the Statement to be included in the
following: Board report in terms of sub-section
z Oversight of the Company’s financial (5) of section 134 of the Companies
reporting process and the disclosure Act, 2013
of its financial information to ensure

338 Integrated Annual Report 2023-24

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

2. Changes, if any, in accounting internal control systems of a material

policies and practices and reasons nature and reporting the matter to the
for the same Board.
3. Major accounting entries involving z To look into the reasons for
estimates based on the exercise of substantial defaults in the payment
judgment by management to the depositors, debenture holders,
4. Significant adjustments made in the shareholders (in case of non-payment of
financial statements arising out of declared dividends) and creditors.
audit findings
z To review the functioning of the Whistle
5. Compliance with listing and other Blower mechanism.
legal requirements relating to
z Approval of appointment of CFO (i.e.,
financial statements
the Whole-time Finance Director or
6. Disclosure of any related party any other person heading the finance
transactions function or discharging that function)
7. Modified Opinion(s) in the draft after assessing the qualifications,
audit report. experience & background, etc. of the
candidate, if any.
z Reviewing, with the management, the
quarterly financial statements before z The recommendation for appointment,
submission to the Board for approval. remuneration and terms of appointment
of cost auditors of the Company.
z Reviewing, with the management,
the statement of uses / application of z Review and monitor the auditor’s
funds raised through an issue (public independence and performance, and
issue, rights issue, preferential issue, effectiveness of audit process.
etc.), the statement of funds utilized z Review the management discussion and
for purposes other than those stated in analysis of financial condition and results
the offer document/prospectus/notice of operations.
and the report submitted by the agency
monitoring the utilisation of proceeds z Approval or any subsequent material
of public or rights issue or Qualified modification of transactions of the
Institutional Placement, and making Company with related parties.
appropriate recommendations to the z Reviewing the utilization of loans and/
Board to take up steps in this matter, if or advances from/investment in the
any. subsidiary companies exceeding rupees
z Reviewing, with the management, 100 crore or 10% of the asset size of the
performance of statutory and internal subsidiary, whichever is lower including
auditors, and adequacy of the internal existing loans/ advances / investments.
control systems. z Valuation of undertakings or assets of
z Reviewing the adequacy of internal audit the company, wherever it is necessary.
function, if any, including the structure z Evaluation of internal financial controls
of the internal audit department, staffing and risk management systems.
and seniority of the official heading the
z Monitoring the end use of funds raised
department, reporting structure coverage
through public offers and related
and frequency of internal audit.
matters.
z Discussion with internal auditors about
z Consider and comment on rationale, cost
any significant findings and follow up
benefit and impact of Schemes involving
there on.
mergers, demerger, amalgamation etc.
z Reviewing the findings of any internal on the entity and its shareholders.
investigations by the internal auditors
z Carrying out any other function as is
into matters where there is suspected
mentioned in the terms of reference of
fraud or irregularity or a failure of
the Audit Committee.

339
 Annexure to
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Apart from the quarterly meetings for iv) Internal Audit:

discussing the financial results, additional The Company has an internal corporate audit
Audit Committee meetings are held wherein team consisting of Chartered Accountants,
matters like Internal Audit findings, Internal Certified Internal Auditors and Engineers
Audit plan, Statutory Audit plan, treasury from various disciplines. Over a period, the
framework, material vendor complaints, Corporate Audit Services department (“CAS”)
Insider trading compliances, major litigations, has acquired in-depth knowledge about
related party transactions, cost audit, etc the Company, its businesses, its systems &
are discussed. The Audit Committee also procedures, the knowledge of which is now
reviews and approves the permitted non- institutionalized. The Company’s Internal
audit services proposed to be availed by the Audit function is ISO 9001:2015 certified. The
Company or its subsidiaries from the statutory Head of CAS reports to the Audit Committee.
auditors. The staff of CAS are rotated periodically to
ii) Composition: have a holistic view of the entire operations
As on March 31, 2024, the Audit Committee and share the findings and good practices.
comprised of four Independent Directors. The CAS team while drawing out their
iii) Meetings: Audit Plan for the year, also plans for some
During the year ended March 31, 2024, theme-based audits (Revenue recognition,
8 meetings of the Audit Committee were HR, Treasury, Insurance etc.) which is
held on April 18, 2023, May 9, 2023, July 24, incorporated in the overall audit programme
2023, August 23, 2023, October 30, 2023, and also performs certain joint audits with
November 29, 2023, January 29, 2024 and other corporate departments for specific
March 11, 2024. functions. The Company being predominantly
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
meetings globally renowned Certified Information
No. of Systems Auditor (CISA), Certified Internal
eligible
Name Status Meetings
to attend Auditor (CIA) and Certified Fraud Examiner
Attended
during the (CFE) Certification, etc., which will add
year strength to the Department. Every year,
Mr. M. M. Chitale$ Chairman 8 8 CAS reviews the Audit Universe which is
Mr. M. Damodaran$ Member 8 8 an exhaustive list of businesses, functions,
Mr. Sanjeev Aga Member 8 8 activities and locations across the Company.
Mr. Vikram Singh Member 8 8 The yearly plan details out the scope and
Mehta$
coverage of audits proposed for the year
$ Ceased to Member of the Committee with effect and it is ensured that, on an average, all
from March 31, 2024.
operations in the Audit Universe gets into
Effective from April 1, 2024, Mr. P. R. Ramesh, an audit coverage, at least once in 2 years.
Independent Director, has been appointed The CAS team has its offices at Mumbai and
as Chairman of the Audit Committee and Chennai and all overseas audits are shared
Mr. Rajnish Kumar, Independent Director between these two teams.
has been appointed as member of the
Committee. 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 Whole-time Director & Chief Financial
The CAS team of the Company also covers
Officer and Head - Corporate Audit Services
the internal audit of all ICs and Subsidiary
are permanent invitees to the Meetings of the
Companies. An in-depth audit is conducted
Audit Committee. The Company Secretary is
by the team. The major deviations are
the Secretary to the Committee.

340 Integrated Annual Report 2023-24

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

highlighted and discussed with the concerned The attendance of Members at the Meetings
IC and / or subsidiary company Board and was as follows:
significant observations are also placed No. of
before the Audit Committee of the Company meetings
once in every quarter. Internal Audits of few No. of
eligible
Name Status Meetings
subsidiaries and few other service functions to attend
Attended
have been out sourced to external firms. during
the year
2) Nomination & Remuneration Committee Mr. Adil Zainulbhai Chairman 4 3
(NRC) Mr. A. M. Naik^ Member 2 2
The Nomination & Remuneration Committee was Mr. Narayanan Member 4 4
constituted in 1999 even before it was mandated Kumar
by law. Mr. Pramit Jhaveri Member 4 4
Mr. S. N. Member 2 2
i) Terms of reference: Subrahmanyan*
z Identify persons who are qualified to ^ Ceased to be a member of the Committee with
become directors and who may be effect from September 30, 2023
appointed in senior management in *Appointed as a member of the Committee with effect
from October 1, 2023.
accordance with the criteria laid down by
the Committee; iv) Board Membership Criteria:
z Recommend to the Board appointment While screening, selecting and recommending
and removal of such persons or extension to the Board new members, the Committee
of term of Independent Directors; ensures that the Board is objective, there is
no conflict of interest, availability of diverse
z Formulate criteria for determining perspectives, business experience, legal,
qualifications, positive attributes and financial and other expertise, integrity,
independence of a director; leadership and managerial qualities, practical
z Devise a policy on Board diversity; wisdom, ability to read and understand
financial statements, commitment to ethical
z Formulation of criteria for evaluation standards and values of the Company.
of directors, Board and the Board
Committees; While appointing/re-appointing any
Independent Director/Non- Executive Director
z Carry out evaluation of the Board, its on the Board, the NRC considers the criteria
Committees , individual Directors and the as laid down in the Companies Act, 2013 and
CMD; the SEBI LODR Regulations.
z Recommend to the Board a policy, While evaluating the suitability of a Director
relating to remuneration for the for re-appointment, besides the above
Directors, Key Managerial Personnel criteria, the NRC considers Board evaluation
(KMP) and senior management; results, attendance and participation in and
z Administration of Employee Stock Option contribution to the activities of the Board by
Scheme (ESOS). the Director.

ii) Composition: The Independent Directors satisfy and fulfill

the criteria of independence as provided
As at March 31, 2024, the Committee
under section 149(6) of the Companies Act,
comprised 3 Independent Directors and the
2013 and all the applicable provisions of the
Chairman & Managing Director.
SEBI LODR Regulations.
iii) Meetings: Each Independent Director gives a certificate
During the year ended March 31, 2024, 4 confirming that they meet the “independence
meetings of the Nomination & Remuneration criteria” as mentioned in section 149(6) of
Committee were held on May 10, 2023, July the Companies Act, 2013 and SEBI LODR
25, 2023, October 31, 2023 and January 30, Regulations.
2024.

341
 Annexure to
the Board Report

The Board has taken on record the Remuneration Committee (NRC) and Board
declaration and confirmation submitted by Risk Management Committee (BRMC)
the Independent Directors and after assessing meetings and ¢ 35,000/- for Stakeholders
the veracity of the same, the Board is of the Relationship Committee (SRC) and CSR &
opinion that the Independent Directors fulfill Sustainability (CSR) Committee meetings, till
the conditions specified in the SEBI LODR June 30, 2023, to the Independent Directors/
Regulations and are independent of the Non-Executive Directors. Effective July 1,
management. 2023, the sitting fees have been revised to
These certificates have been placed ¢ 75,000 for AC, NRC and BRMC meetings
on the website of the Company and ¢ 50,000 for SRC and CSR Committee
http://investors.larsentoubro.com/ meetings. The Board meeting sitting fee
corporategovernance.aspx remains the same at ¢ 1,00.000 per meeting.
The commission is paid in accordance
The role, responsibilities and duties of with the provisions of section 197 of the
Independent Directors are set out in the Companies Act, 2013.
letter of appointment issued to them.
Copy of the draft letter of appointment The commission to the Independent
issued to Independent Directors is Directors / Non-Executive Directors is
available on the Company’s website at distributed broadly on the basis of their
https://investors.larsentoubro.com/listing- attendance, contribution at the Board, the
compliance-disclosuresunderstatutes.aspx Committee meetings, Chairmanship of
Committees and participation in IC meetings.
v) Remuneration Policy:
The remuneration of the Board members In the case of nominees of Financial
is based on the Company’s size and global Institutions, the commission is paid to the
presence, its economic and financial position, Financial Institutions.
industrial trends, compensation paid by the As required by the provisions of Regulation
peer companies, etc. Compensation reflects 46 of the SEBI LODR Regulations, the criteria
each Board member’s performance and for payment to Independent Directors /
accountability. The level of compensation Non-Executive Directors is made available on
to Executive Directors is competitive and the investor page of our Company’s website
matches industry standards. https://investors.larsentoubro.com/listing-
The Company pays remuneration to Executive compliance-disclosuresunderstatutes.aspx
Directors by way of salary, perquisites and Performance Evaluation Criteria for
retirement benefits (fixed components) Independent Directors:
and commission (variable component),
The performance evaluation questionnaire
stock options based on recommendation
covers qualitative/ subjective criteria with
of the NRC, approval of the Board and the
respect to the structure, culture, Board
shareholders. The commission payable is
processes and selection, effectiveness
based on the overall performance of the
of the Board and Committees, strategic
Company, performance of the business /
decision making, functioning of the Board
function as well as qualitative factors. The
and Committees, Committee composition,
commission is calculated with reference to
information availability, remuneration
net profits of the Company in the financial
framework, succession planning, adequate
year subject to overall ceilings stipulated
participation, assessment of their
under section 197 of the Companies Act,
independence, etc. It also contains specific
2013.
criteria for evaluating the CMD and individual
The Independent Directors / Non-Executive Directors. An external consultant is engaged
Directors are paid remuneration by way of to receive the responses of the Directors
commission and sitting fees. The Company and consolidate/analyze the responses. This
paid sitting fees of ¢ 1,00,000/- per is done through a software platform of the
meeting of the Board and ¢ 50,000/- for external consultant.
Audit Committee (AC), Nomination and

342 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

The Chairman of the NRC discusses the company enhances managerial capabilities at
performance evaluation results with the all levels through Management Development
CMD of the Company and the CMD of the Programs, nurtures potential of its high
Company interacts with all the Non-Executive performers through Leadership Competency
Directors and Independent Directors. The Development Programs, and prepares its
NRC Chairman interacts with the Executive talent with proven track record & recognized
Directors. potential through its signature Seven-Step
Leadership Pipeline Programs.
Key suggestions made by the Directors as
part of the Board evaluation exercise of The Company’s Seven-Step Leadership
FY 2022-23 included holding Board meeting Pipeline Programs is an established best
at / visits to places were the Company has practice in talent development which serves
operations, assessment of board composition, to provide leadership inputs to high potential
optimisation of time involvement between employees. These programs are carefully
mandatory board requirements and strategic curated in association with prominent
directional involvement and compensation International & Indian institutions such as
benchmarking of Independent Directors. The Harvard Business School, London Business
Company has taken necessary actions on School, INSEAD, Ross School of Business, and
the suggestions given by the Board members IIM Ahmedabad. These programs are regularly
viz. Board visits were arranged to Varanasi reviewed and aligned with the evolving
& Ayodhya during FY 2023-24, strategic landscape of business. The leaders who
sessions were part of board meetings held in move up the Seven-Step Leadership Pipeline
March & May 2024 and the compensation of Program are mentored by the Chairman
Independent Directors was benchmarked with Emeritus and Chairman and MD of the
the industry during FY 2023-24. Company.
Members are also requested to refer to The company has initiated Leadership
page 323 of the Board Report. Competency Development Programs for
senior managers with the Great Lakes
vi) Training & Succession Planning:
Institute of Management, Chennai, and
The company places significant emphasis on launched similar programs for early and
the continuous growth of its workforce. It middle managers in collaboration with
is committed to developing internal talent IIM Vishakhapatnam and KREA University,
and capable leaders. To achieve this, the conducted at their Leadership Development
Company has established robust processes Academy in Lonavala.
for creating and sustaining a leadership and
talent pipeline through Development Centres, The Company also conducts its Management
its Leadership Development initiatives, and Development programs in tie-up with reputed
Talent Review Process. Indian B-Schools like Narsee Monjee, IIM
Mumbai, XLRI and IIM-Bangalore to provide
The Development Centres, pivotal to the inputs to our current and potential leaders
Company’s core philosophy of grooming and in the process builds a strong pipeline of
internal talent, ensure the right leadership managers at every level.
talent is identified through an objective
selection process. The Development Centres The Company, recognizing the importance
supports the development of company’s high of increasing visibility of its top talent for
performing talent by seamlessly conducting continuous development and succession
an objective assessment through a structured planning, has established a Talent Review
process. This process is followed up with the Process. This process enables the businesses
creation of individualised development plans to identify, deliberate, and plan the
as a map to enable talent to navigate their development and deployment of its top talent
unique development journey. in strategic roles. To ensure the success of this
initiative, a Talent Management Council led
The company’s Leadership Development by Business & HR heads has been established
initiatives are designed to cater development dovetailing the Talent Review discussions with
needs of its talent at three stages. The annual appraisal process.

343
 Annexure to
the Board Report

In the fiscal year 2023-24, the Company’s vii) Details of remuneration paid / payable
commitment to its workforce was recognized to Directors for the year ended March 31,
by Great Place to Work for the second 2024:
consecutive year. The company recognizes the (a) Executive Directors:
shifts taking place in the workforce due to The details of remuneration paid /
changing macro-economic conditions, talent payable to the Executive Directors for FY
demographics & aspiration, and emphasis on 2024 is as follows:
Diversity, Equity & Inclusion. These changes v crore
require a renewed form of leadership Perquisites
Retirement
that can integrate high-performance with Names Salary Perquisites related to Commission Total
Benefits
changing talent needs. To address this need, ESOP*
the Company has launched its own People Mr. S. N. 3.60 1.67 – 10.50 35.28 51.05
Subrahmanyan^
Leadership Excellence Framework. This is a
Mr. R. Shankar 2.25 1.08 – 6.50 21.83 31.66
five-dimension framework which will guide Raman
several initiatives for assessing and nurturing Mr. D. K. Sen @ 0.03 0.46 – 22.26 0.18 22.93
people leadership capabilities across the Mr. M. V. Satish$ 1.71 0.74 – 2.78 8.57 13.80
Company. Mr. Subramanian 2.07 0.84 9.99 5.57 18.56 37.03
Sarma
The Company’s own HR Excellence Model S. V. Desai 1.23 0.62 – 3.95 13.41 19.21
ensures that the above practices are T. Madhava Das 1.23 0.59 – 3.86 13.06 18.74
continuously evaluated and kept in alignment Mr. Anil V Parab 1.05 0.24 – 2.61 8.62 12.52
^ Appointed as Chairman & Managing Director with effect
with contemporary people dimensions, thus from October 1, 2023
enhancing people strategy and practices @ Ceased to be Whole-time Director with effect from
aiding organizational performance. April 7, 2023.
$ Ceased to be Whole-time Director with effect from
Moving to the Company’s digital initiatives April 7, 2024.
*Represents perquisite value related to ESOPs exercised
in the learning space, the Company has during the year in respect of stock options granted over
taken further strides in its digitalization by the past several years by the Company and includes tax on
ESOPs borne by the Company wherever applicable.
launching a new Learning Management
System (LMS) on SAP Success Factors z Notice period for termination of
platform. The LMS hosts an extensive array appointment of Chairman & Managing
of training programmes and integrates Director and other Whole-time Directors
external resources from platforms like is six months on either side.
Coursera, Percipio, and Harvard Manage z No severance pay is payable on
Mentor offering a rich & adaptable learning termination of appointment.
environment for all employees, thus, making z Details of Options granted under
learning democratised and learner centric. Employee Stock Option Schemes are
provided on the website of the Company
Additionally, the Company has established https://investors.larsentoubro.com/listing-
niche learning academies, such as the compliance-agm.aspx.
Academy of Digital Transformation and z Mr. Subramanian Sarma has exercised
Academy of GenAI, to address domain- 25,000 stock options in the Company
specific needs. The Company’s digital vested during the year. The perquisite
learning solutions provide role-specific and amount on exercise of these options is
skill-focused learning, using platform-based considered as a part of his remuneration.
skill benchmarking. In 2023-24, the Company
(b) Non-Executive Directors:
logged 5.20 lakh training hours from 38,500
The details of remuneration paid /
L&T employees via digital learning modes. payable to the Non-Executive Directors
The Nomination and Remuneration for FY 2023-24 is as follows:
Committee discussed matters relating to v crore
succession planning of Directors and senior Sitting Sitting
officials of the Company. Fees for Fees for
Names Commission Total
Board Committee
For more details on training and succession Meeting Meetings
Mr. A. M. Naik^ 0.03 0.01 1.65 1.69
planning, please refer to the Human Capital
Mr. M. M. Chitale$ 0.06 0.07 0.59 0.72
section of the Integrated Report.

344 Integrated Annual Report 2023-24

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

v crore 3) Stakeholders’ Relationship Committee:

Sitting Sitting i) Terms of reference:
Fees for Fees for
Names Commission Total
Board Committee The terms of reference of the Stakeholders’
Meeting Meetings Relationship Committee are as follows:
Mr. M. Damodaran$ 0.06 0.06 0.53 0.65
Mr. Vikram Singh z Resolving the grievances of the security
Mehta$ 0.06 0.06 0.45 0.57 holders of the Company including
Mr. Adil Zainulbhai 0.05 0.03 0.50 0.58
complaints related to transfer/
Mr. Sanjeev Aga 0.06 0.07 0.40 0.53
transmission of shares, non-receipt of
Mr. Narayanan Kumar 0.05 0.04 0.44 0.53
Mr. Hemant Bhargava # 0.06 0.01 0.22 0.29
annual report, non-receipt of declared
Mrs. Preetha Reddy 0.05 – 0.17 0.22 dividends, issue of new/duplicate
Mr. Pramit Jhaveri 0.06 0.03 0.28 0.37 certificates, general meetings etc.
Mr. Rajnish Kumar@ 0.05 – 0.17 0.22
Mr. Jyoti Sagar@ 0.05 – 0.17 0.22
z Review of measures taken for effective
Mr. Ajay Tyagi* 0.03 – 0.10 0.13 exercise of voting rights by shareholders.
Mr. P. R. Ramesh* 0.03 – 0.10 0.13
z Review of adherence to the service
Note – Remuneration of Mr. A. M. Naik excludes ¢ 1.5 crore
paid to him during the financial year towards pension. standards adopted by the Company in
# Payable to the Institution he represents. respect of various services being rendered
^ Ceased to be a Director of the Company with effect from by the Registrar & Share Transfer Agent.
September 30, 2023
@ Appointed as an Independent Director of the Company

z Review of the various measures and
with effect from May 10, 2023. initiatives taken by the Company for
* Appointed as an Independent Director of the Company reducing the quantum of unclaimed
with effect from October 31, 2023. dividends and ensuring timely receipt
$ Ceased to be an Independent Director with effect from
 of dividend warrants/annual reports/
March 31, 2024.
statutory notices by the shareholders of
Details of shares of the Company held the Company.
by the Directors and Key Managerial
Personnel, as on March 31, 2024, are as ii) Composition:
follows: As on March 31, 2024, the Stakeholders’
Name No. of Shares Shareholding Relationship Committee comprised 1 Non-
Percentage Executive Director, 1 Independent Director
Mr. S. N. Subrahmanyan 2,65,584 0.02 and 1 Executive Director.
Mr. R. Shankar Raman 2,96,616 0.02
Mr. M. V. Satish 46,457 0.00 iii) Meetings:
Mr. Subramanian Sarma 1,84,053 0.01
Mr. S. V. Desai 25,810 0.00
During the year ended March 31, 2024, 2
Mr. T. Madhava Das 16,265 0.00 meetings of the Stakeholders’ Relationship
Mr. Anil V. Parab 1,11,040 0.01 Committee were held on June 14, 2023 and
Mr. M. M. Chitale@ 3,568 0.00 January 10, 2024.
Mr. M. Damodaran@ 225 0.00
The attendance of Members at the Meetings
Mr. Vikram Singh Mehta@ 1,327 0.00
Mr. Adil Zainulbhai 150 0.00 was as follows-
Mr. Sanjeev Aga 100 0.00
No. of
Mr. Narayanan Kumar 1,500 0.00
meetings No. of
Mr. Hemant Bhargava * 188 0.00 Name Status eligible to Meetings
Mrs. Preetha Reddy 180 0.00 attend during Attended
Mr. Pramit Jhaveri 20,550 0.00 the year
Mr. Rajnish Kumar 100 0.00 Mr. Narayanan Kumar Chairman 2 2
Mr. Jyoti Sagar 100 0.00
Mr. Hemant Bhargava Member 2 2
Mr. Ajay Tyagi 100 0.00
Mr. P. R. Ramesh 100 0.00 Mr. T Madhava Das# Member 2 2
Mr. Sivaram Nair A 10,384 0.00 # Appointed as a member of the Committee with effect from
@ Ceased to be Independent Directors with effect from
 April 8, 2023
March 31, 2024 on account of completion of tenure. Mr. Sivaram Nair A, Company Secretary is the
* 100 shares held jointly with the Institution he represents. Compliance Officer.

345
 Annexure to
the Board Report

iv) Number of Requests / Complaints: ii. Provide guidance for the

During the year, the Company has resolved development of annual CSR Action
investor grievances expeditiously except for Plan
the cases constrained by disputes or legal iii. Recommend the CSR annual budget
impediments. to the Board for approval
During the year, the Company / its Registrar iv. Monitor the implementation of the
received the following complaints from CSR Action Plan of the Company
SEBI / Stock Exchanges and queries from from time to time; and
shareholders, which were resolved within the v. Identify and recommend to the
time frames laid down by SEBI. Board the CSR projects that will
Opening qualify to be ongoing projects
Particulars Received Resolved Pending*
Balance
B. Sustainability:
Complaints:
SEBI / Stock 2 156 157 1 i. Formulate and recommend to the
Exchange Board a Sustainability Policy and
Shareholders 3 504 503 4 suggest any changes thereto
Shareholder Queries: ii. Provide guidance for the
Dividend 35 9,490 9,520 5 development of the long-term
Related
Sustainability Plan; and
Transmission/ 287 9,497 9,684 100
Others iii. Monitor the implementation of the
Demat / 7 7,113 7,117 3 Sustainability Plan of the Company
Remat from time to time
* Investor complaints / queries shown outstanding as on March 31,
2024 have been subsequently resolved to the complete satisfaction iv. Review of Business Responsibility
of the investors. The Company repeatedly sends reminders to and Sustainability Report of the
shareholders regarding unclaimed shares and dividends. This results
in an increase in the number of queries received. Company.
Pursuant to the amendments in SEBI ii) Composition:
LODR Regulations, transfer of securities As on March 31, 2024, the CSR Committee
in physical form are not being processed comprised 1 Independent Director and 2
by the Company. Further, all requests for Executive Directors.
transmission, transposition, issue of duplicate
share certificate, claim from unclaimed iii) Meetings:
suspense account, renewal/exchange of During the year ended March 31, 2024,
securities certificate, endorsement, sub- 3 meetings of the CSR Committee were held
division/splitting of securities certificate and on April 29, 2023, October 7, 2023 and
consolidation of securities certificates/folios March 15, 2024.
are being processed only in demat form. In The Members at the Committee are as
such cases the Company issues a letter of follows-
confirmation, which needs to be submitted to No. of
Depository Participant to get credit of these meetings No. of
securities in dematerialized form. Name Status eligible to Meetings
attend during Attended
4) CSR & Sustainability Committee: the year
i) Terms of reference: Mr. M. M. Chitale# Chairman 3 3
The CSR & Sustainability (“CSR”) Committee Mr. R. Shankar Member 3 3
Raman
has been entrusted with the task of reviewing
Mr. S. V. Desai* Member 3 3
the sustainability and Corporate Social # Ceased as Chairman & member of the Committee with effect
Responsibility initiatives of the Company. from March 31, 2024
* Appointed as member of the Committee with effect from
A. Corporate Social Responsibility: April 8, 2023
i. Formulate and recommend to Effective April 1, 2024, Mr. Ajay Tyagi,
the Board a Corporate Social Independent Director, has been appointed as
Responsibility Policy and suggest any the Chairman of the Committee and Mr. Jyoti
changes thereto

346 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Sagar, Independent Director, has been documented in the monthly reporting

appointed as member of the Committee. process. These are subsequently vetted /
iv) CSR Activities & Impact Assessment: measured during the external Social Audit or
Impact Assessment. The Social Audit/ Impact
The Company, through its CSR &
Assessment report is discussed during the
Sustainability Committee, is committed
CSR & Sustainability Committee meetings and
to improve the social infrastructure /
it forms a part of Annexure C to this Board
fabric of the Country. The Company’s CSR
Report.
programmes are well-entrenched, focusing on
areas that align with the global and national The detailed disclosures of CSR spending
matrices of development: water & sanitation, during the year has been given in Annexure
health, education and skill-building. ‘C’ forming part of this Board Report. Please
refer to page 365 of this Integrated Annual
The Company is leveraging its countrywide
Report.
presence to reduce disparities through
interventions in Water and Sanitation, 5) Board Risk Management Committee:
Healthcare, Education and Skill Building. i) Terms of reference:
Close interactions with the local community
The terms of reference of the Board Risk
members have enabled the Company to
Management Committee are as follows:
identify and address their most pressing needs
and the social interventions for community z Review of the existing Risk Management
development have been specifically aligned. Policy, framework and processes,
The Company has launched programs Risk Management Structure and Risk
towards holistic development in the following Mitigation Systems. Broadly, the key
areas based on need assessment: risks will cover strategic risks of the
group at the domestic and international
z Water & Sanitation: For the availability level including sectoral developments,
of safe drinking water and proper risk related to market, financial,
sanitation facilities geographical, political and reputational
z Education: To improve access to issues, Environment, Social and
education (increased enrollment in pre‐ Governance (ESG) risks, etc.
school, children attending neighborhood
z Evaluate risks related to cyber security.
schools), improving quality of learning
(better school infrastructure, better The Committee periodically reviews the risk
teaching‐learning process) and learning status to ensure that executive management
STEM (Science Technology Engineering mitigates the risks by means of a properly
and Math) subjects with fun and hands designed framework.
on experiments
The Company also has an Apex Risk
z Health: Improvement in access to quality Management Committee, comprising of
health care (expanding infrastructure Executive Directors, which reviews the
of health centres, increased number of operational risks including client quality,
people availing quality health care) manpower availability, logistic and other
z Skill development: Enhancing aspects which impact the Company and the
employability of youth (enhancing Group.
training capacity, improved infrastructure ii) Composition:
of skill development centres).
As on March 31, 2024, the Board Risk
All CSR projects have defined goals and Management Committee comprised of
milestones which are tracked as per the 2 Independent Directors and 1 Executive
periodicity defined for the project. The Director.
progress is compared with the baseline data
iii) Meetings:
that is gathered before the commencement
of the project. This is carried out through During the year ended March 31, 2024,
an onsite evaluation as well as the reports 2 meetings of the Board Risk Management
generated from the project. The indirect Committee were held on April 19, 2023 and
impact that accrued are also factored and October 16, 2023.

347
 Annexure to
the Board Report

The attendance of Members at the Meetings Some of the Independent Directors are members
was as follows- of the IC Board. They share the learnings from
No. of
these meetings with the remaining Non-Executive
Directors / Independent Directors formally and
meetings No. of
informally. Such interactions also happen when
Name Status held meetings
these Directors meet senior management in IC
during the attended
meetings and informal gatherings.
year
Mr. Adil Zainulbhai Chairman 2 2 As part of the appointment letter issued to
Mr. Sanjeev Aga Member 2 2 Independent Directors, the Company has stated
Mr. Subramanian Member 2 2 that it will facilitate attending seminars/programs/
Sarma conferences designed to train directors to enhance
Members are also requested to refer to page 322 of their role as an Independent Director.
the Board Report. This information is also available on the website of
the Company https://investors.larsentoubro.com/
G. OTHER INFORMATION
listing-compliance-disclosuresunderstatutes.aspx.
a) Directors’ Familiarization Program:
b) Policy for determination of materiality of
The Directors of the Company are updated events or information
on changes/developments in the domestic/ The Company has a policy for determination of
global markets and industry scenario through materiality of events or information for disclosure
presentations made at Board, Committee, IC to the stock exchanges. The policy has clearly
meetings and interactions with senior company defined guidelines and materiality thresholds for
personnel. The Directors are also updated about determination of materiality of certain events
changes in statutes/legislations and economic or transaction or information with respect to
environment, and on matters significantly the Company, its Subsidiaries and Associate
affecting the Company, to enable them to take Companies. During FY 2023-24, the Policy was
well informed and timely decisions. The Board reviewed and revised to align the same with the
meetings are also held in locations where the amendments made to the SEBI (Listing Obligations
Company has operations to apprise the Directors and Disclosure Requirements) Regulations,
about its operations. 2015. The Company has also implemented a
The internal newsletters of the Company, the software application to assist employees to
press releases, etc. are circulated to all the report potential material event / information
Directors so that they are updated about the to authorised Key Managerial Personnel. The
Policy is available on the Company’s website
operations of the Company.
at https://www.larsentoubro.com/corporate/
Presentations are made regularly to the Board, about-lt-group/corporate-policies/.
NRC, AC, BRMC, SRC and CSR & Sustainability
c) Vigil Mechanism / Whistle Blower Policy:
Committee, where Directors get an opportunity
to interact with senior managers. Minutes of The Company has a Whistle Blower Policy in place
AC, NRC, SRC, BRMC and CSR Committees since April 2004. The said policy was modified in
are circulated to the Board. Presentations, inter line with the requirements of the Vigil Mechanism
under the Companies Act, 2013 and subsequently
alia, cover business strategies, management
in 2018 to include reporting of instances of
structure, HR policy, management development
leakage of unpublished price sensitive information
and succession planning, quarterly and annual
as per SEBI (PIT) Amendment Regulations, 2018.
results, budgets, treasury policy, review of internal
The Company has a Whistle Blower Investigation
audit, risk management framework, operations of
Committee (WBIC) to manage complaints from
subsidiaries and associates, etc.
“Identified” Whistle Blowers. In addition, WBIC
Independent Directors have the freedom to considers “Anonymous” complaints which in
interact with the Company’s Management. their judgement are serious in nature and require
Interactions happen during Board/Committee investigation. The WBIC has five members viz.
meetings, when senior company personnel are Chief Financial Officer, Company Secretary,
asked to make presentations about performance Head-Corporate HR, Chief Internal Auditor
of their Independent Company (IC)/Business Unit, and a senior Finance & Accounts person from
to the Board. business. The WBIC is responsible for end-to-end
management of the investigations, from the time

348 Integrated Annual Report 2023-24

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

of receipt of complaints to bringing them to a the Whistle Blower mechanism to actively address
logical conclusion, keeping in mind the interest of all complaints received.
the Company. Suitable actions are taken against
The Company also has a separate Whistle Blower
employees, wherever investigation confirms the
Policy for its vendors and channel partners. This
allegations.
policy provides all stakeholders an opportunity
Employees are encouraged to report any acts of to report genuine concerns about unethical
unacceptable behaviour inconsistent with the behaviour, improper practices, misconduct, any
Company’s Code of Conduct, having an adverse
violation of legal or regulatory requirements,
effect on the Company’s financials/image and
actual or suspected fraud without fear of
instances of sharing of unpublished price sensitive
punishment or unfair treatment. The details
information. An employee can report any such
of the same are available on the Company’s
conduct in oral or written form. Whistle-blowers
website https://larsentoubro.com/corporate/
are assured by the Management of full protection
about-lt-group/corporate-policies/.
from any kind of harassment, retaliation,
victimization, or unfair treatment. Also refer to page 326 of the Board Report.
Complaints under the Whistle Blower Policy are d) Statutory Auditors:
received by the Corporate Audit Services of the In the case of appointment of new auditors,
Company from various sources. The Chief Internal an internal team is formed to carry out the
Auditor reviews the same and after screening the selection process. The internal team works under
complaint, decides on the further course of action the guidance of the Chairman of the Audit
which will include requesting the complainant to Committee. The criteria for shortlisting / selection
provide further details, internal investigation by are identified and firms are evaluated based on
the CAS department, investigation by external those criteria. The internal team considers factors
agencies, wherever necessary, opportunity to the such as experience, expertise, size, availability of
defendant to present his/her case, etc. Based on time of a senior partner and reach etc. during
the findings of the investigation, the Corporate
the process of evaluation. Based on merit and
Audit Services takes the approval of WBIC for the
the factors mentioned above, the Internal
action recommended by them to be taken.
team shortlists the firm to be appointed and
The WBIC is appraised on the complaints received, recommends the same to the Audit Committee.
current status, actions contemplated and closure The Audit Committee reviews the same before
of the cases. The WBIC reviews the complaints recommending to the Board and shareholders for
and their progress. Queries by the WBIC members approval.
are immediately attended to by CAS and the
The Auditing Partners are rotated periodically
implementation of the recommended actions
are undertaken by the respective HR/Accounts to ensure objectivity in the audit processes. The
Departments. Company also appoints joint auditors prior to
end of the term of the existing auditors to ensure
The policy provides for adequate safeguards
smooth transition and enable the new auditors
against victimisation of Whistle Blowers and
to understand the systems and processes of the
provides for direct access to the Chairperson of
Company.
the Audit Committee. The Audit Committee of
the Company oversees the implementation of the Deloitte Haskins & Sells LLP (“DHS LLP” or “Firm”)
Whistle-Blower Policy. is registered with the Institute of Chartered
Accountants of India (Registration No. 117366W/
The Audit Committee is periodically briefed about
the various cases received, the status of the W-100018). DHS LLP has offices in Mumbai,
investigation, findings and action taken, if any and Delhi, Kolkata, Chennai, Bangalore, Ahmedabad,
a comprehensive update is provided semi-annually Hyderabad, Coimbatore, Kochi, Pune, Jamshedpur
which is presented and discussed at the Audit and Goa. The registered office of the Firm is
Committee Meeting. During the year, no person One International Center, Tower 3, 32nd Floor,
has been denied access to the Audit Committee, Senapati Bapat Marg, Elphinstone Road (West),
wherever desired. Mumbai - 400013, Maharashtra, India.
The Company has a zero-tolerance policy towards M/s. MSKA & Associates (“MSKA”) were
breach of Code of Conduct and to this extent, the appointed as the Statutory Auditors of the
Company has built a robust framework around Company for a term of 5 years i.e. from the
conclusion of 79th Annual General Meeting till

349
 Annexure to
the Board Report

the conclusion of 84th Annual General Meeting f) General Body Meetings:

of the Company, subject to approval of the The last three Annual General Meetings of the
shareholders. DHS LLP would be completing their Company were held as under:
tenure as Statutory Auditors of the Company on
conclusion of the 80th Annual General Meeting Financial
Date Venue Time
of the Company to be held in the calendar year Year
2025. In order to provide the new auditors 2022-2023 August 9, Birla Matushri Sabhagar, 3.00 p.m.
2023 19, Marine Lines,
adequate time to get familiar with the Company’s Mumbai – 400 020
operations & processes and to ensure a smooth and through Video
transition, both, DHS LLP and MSKA would jointly Conferencing / Other
conduct the audit from the conclusion of 79th Audio-Visual Means
Annual General Meeting of the Company till the 2021-2022 August 4, Meeting was held 3:30 p.m.
2022 through Video
conclusion of the 80th Annual General Meeting.
Conferencing / Other
MSKA & Associates is an Indian Partnership Audio-Visual Means
Firm registered with the Institute of Chartered 2020-2021 August 5, Meeting was held 3:30 p.m.
2021 through Video
Accountants of India (ICAI) and the US Public
Conferencing / Other
Company Accountancy Oversight Board (PCAOB) Audio-Visual Means
having offices across 12 cities in India at Mumbai,
Gurugram, Chandigarh, Kolkata, Ahmedabad, The following Special Resolutions were passed by
Chennai, Goa, Pune, Bengaluru, Kochi, Hyderabad the members during the past 3 Annual General
and Coimbatore. The head office of the firm is at Meetings:
602, Floor 6, Raheja Titanium, Western Express Annual General Meeting held on August 9,
Highway, Geetanjali Railway Colony, Ram Nagar, 2023:
Goregaon (E), Mumbai 400063, India.
None.
For FY 2023-24, the total fees paid by the
Company and its subsidiaries, on a consolidated Annual General Meeting held on August 4,
basis, to Deloitte Haskins & Sells LLP, Statutory 2022:
Auditor and all entities in the network firm/ z To approve raising of capital through QIP’s
network entity of which the statutory auditors are by issue of shares / convertible debentures /
a part thereof for all the services provided by them securities upto an amount of USD 600 million
is ¢ 12 crore. or ¢ 4,500 crore.
Also refer to page 326 of the Board Report. Annual General Meeting held on August 5,
e) Code of Conduct: 2021:
The Company has laid down a Code of z To re-appoint Mr. Sanjeev Aga as an
Conduct for all Board members and senior Independent Director of the Company for a
management personnel. The Code of Conduct five-year term upto May 24, 2026.
is available on the website of the Company
z To re-appoint Mr. Narayanan Kumar as an
https://www.larsentoubro.com/. The declaration
Independent Director of the Company for a
of the CMD is given below:
five-year term upto May 26, 2026.
To the Shareholders of Larsen & Toubro Limited z To approve raising of capital through QIP’s
Sub: Compliance with Code of Conduct by issue of shares / convertible debentures /
I hereby declare that all the Board Members and Senior securities upto an amount of USD 600 million
Management Personnel have affirmed compliance with or ¢ 4,500 crore.
the Code of Conduct for Board Members and Senior
Management. Note: There were no invalid votes cast in any of
S. N. Subrahmanyan the previous 3 Annual General Meetings.
Chairman & Managing Director
g) Resolution(s) passed through Postal Ballot:
Date: May 8, 2024
Place: Mumbai There were 3 Postal Ballots conducted by the
Company during FY 2023-24. All the resolutions

350 Integrated Annual Report 2023-24

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

were passed with requisite majority of votes. COP No. 8430), was appointed as Scrutinizer
Details of the Resolutions passed through postal for conducting the Postal Ballots in a fair and
ballot during FY 2023-24 are given below. transparent manner. There were no invalid votes
cast in any of the Postal Ballots conducted during
Postal Date of Voting Pattern FY 2023-24.
Description of Ballot publication
the resolution Notice of voting Votes in Votes
h) Disclosures:
date results favour against
1. During the year, there were no transactions
Appointment of 97.76% 2.24%
of material nature with the Directors or the
Mr. Jyoti Sagar
(DIN:00060455)
Management or relatives or the subsidiaries
as an Independent that had potential conflict with the interests
Director of the of the Company.
Company w.e.f.
May 10, 2023 2. Details of all related party transactions
form a part of the accounts as required
Appointment of 97.06% 2.94%
Mr. Rajnish Kumar under IND AS 24 and the same are given in
May 10, June 22, Note No. 47 forming part of the financial
(DIN:05328267)
2023 2023
as an Independent statements.
Director of the
Company w.e.f. 3. The Company has followed all relevant
May 10, 2023 Accounting Standards notified by the
Approval of 99.99% 0.01% Companies (Indian Accounting Standards)
Related Party Rules, 2015 while preparing the Financial
Transaction(s) with Statements.
Larsen Toubro
Arabia LLC 4. The Company makes presentations to
Approval of 99.91% 0.09% Institutional Investors and Equity Analysts on
July 25, August 25, the Company’s performance on a quarterly
Buyback of Equity
2023 2023
Shares basis. These presentations are provided to the
Appointment of 97.42% 2.58% Stock Exchanges and also available on our
Mr. Ajay Tyagi website https://investors.larsentoubro.com/
(DIN:00187429) Analyst-Presentation-Archives.aspx.
as an Independent
Director of the 5. There were no instances of non-compliance,
Company w.e.f. penalties, strictures imposed on the Company
October 31, 2023 by the Stock Exchanges on any matter related
Appointment of 96.29% 3.71% to the capital markets, during the last three
Mr. P. R. Ramesh years except as mentioned below:
(DIN:01915274)
as an Independent National Stock Exchange of India Limited and
Director of the BSE Limited vide their notices dated April
Company w.e.f. December January 18,
15, 2024, levied a fine of ¢ 10,000 each for
October 31, 2023 14, 2023 2024
delayed submission of intimation of Board
Approval of 96.63% 3.37% meeting held on March 26, 2024 where
material Related
the proposal of fund raising was approved.
Party Transaction(s)
with Larsen Toubro The Company has paid the said fine. The
Arabia LLC Company has also made waiver application to
Approval of 96.64% 3.36% the Stock Exchanges towards the same.
material Related
6. The policies for determining material
Party Transaction(s)
with L&T Metro subsidiaries and related party transactions
Rail (Hyderabad) are available on the Company’s website
Limited https://www.larsentoubro.com/
corporate/about-lt-group/corporate-policies/.
Mr. S. N. Ananthasubramanian, Practising
Company Secretary, (M. No: FCS 4206, COP 7. Details of risk management including
No. 1774) and failing him, Ms. Aparna Gadgil, foreign exchange risk, commodity price risk
Practising Company Secretary (M. No: ACS 14713, and hedging activities form a part of the

351
 Annexure to
the Board Report

Management Discussion & Analysis. Please Website The Company’s corporate website
refer to pages 18 to 127 of this integrated www.larsentoubro.com provides
Annual Report. comprehensive information about its
portfolio of businesses. Section on
8. As required under the provisions of SEBI “Investors” serves to inform and service
LODR Regulations, a certificate confirming the Shareholders allowing them to
that none of the Directors on the Board access information at their convenience.
The quarterly shareholding pattern of
have been debarred or disqualified by the the Company is available on the website
Securities and Exchange Board of India or of the Company as well as the stock
Ministry of Corporate Affairs or any such exchanges. The entire Annual Report
statutory authority, obtained from M/s S. including Accounts of the Company
N. Ananthasubramanian & Co., Company and subsidiaries are available in
downloadable formats.
Secretaries, is a part of the Corporate
Governance report. Filing with Stock Information to Stock Exchanges is now
Exchanges being also filed online on NEAPS for
9. Details in relation to the Sexual Harassment of NSE, BSE Online for BSE and RNS for
London Stock Exchange.
Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013 form a part of the Annual Report and Annual Report is circulated to all the
Annual General members and all others like auditors,
Board Report. Please refer to pages 324 to
Meeting equity analysts, etc. To enable a larger
325 of this integrated Annual Report. participation of shareholders for the
Annual General Meeting, the Company
10. The Company has not provided any loans
has provided Webcast facility at its
or advances in the nature of loans to firms/ last three Annual General Meetings in
companies in which directors are interested. co-ordination with NSDL. This year, the
Company will be conducting the Annual
11. The are no agreements which impact the General Meeting through Audio Visual
management or control of the Company or Means, as permitted by Ministry of
impose any restriction or create any liability Corporate Affairs. The Annual Report
upon the Company as specified under is e-mailed to all members who have
registered their email IDs with the
Regulation 30A read with clause 5A to para Company and to those shareholders
A of part A of schedule III of SEBI (Listing who request for the same. The Annual
Obligations and Disclosure Requirements) Report would also be made available
Regulations, 2015. on the website of the Company. The
Chairman suitably responds to the
i) Means of communication: queries raised by the shareholders
during the AGM.
Financial Results Quarterly & Annual Results are
SEBI Complaints Investor complaints are processed
and other published in prominent daily
Redress System at SEBI in a centralized web-based
Communications newspapers viz. The Financial
(SCORES)/Online complaints redress system. The salient
Express, Hindu Business Line &
Dispute Resolution features of this system are centralised
Loksatta. The results are also
(ODR) Portal: 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 on
E-Voting, AGM related compliances, the complaints and their current status.
etc. are published in The Financial The Company submits ATR on timely
Express & Loksatta. basis with respect to the complaints
News Releases Official news releases that carry received from SCORES.
material information as per the
In case any investor is still not satisfied
Company’s policy for determination of
with the outcome of the resolution,
materiality of events or information,
they can initiate dispute resolution
are sent to stock exchanges as well as
through the ODR Portal.
displayed on the Company’s website:
www.larsentoubro.com. The ODR Portal has the necessary
features and facilities to, inter alia,
enrol the investor to file the complaint/
dispute. Your Company has done
necessary enrolment on the ODR Portal.

352 Integrated Annual Report 2023-24

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

Management This forms a part of the Annual Report I. GENERAL SHAREHOLDERS’ INFORMATION
Discussion & which is mailed to the shareholders of a) Annual General Meeting:
Analysis the Company.
The Annual General Meeting of the Company
Presentations The schedule of analyst / institutional
made to investor meets and presentations
has been convened on Thursday, July 4, 2024 at
Institutional made to them on a quarterly basis 3:00 p.m. through Video Conferencing (“VC”)/
Investors and are informed to the Stock Exchanges Other Audio-Visual Means (“OAVM”) pursuant
Analysts and also displayed on the Company’s to the MCA Circular dated September 25,
website. The audio recordings and 2023. Members can attend the AGM virtually at
transcripts of these meetings are also
uploaded on the Company’s website
www.evoting.nsdl.com.
and weblink for the same is intimated b) Financial calendar:
to the Exchanges.
1. Annual Results of May 8, 2024
J. Investor FAQs FY 2023-24
FAQs regarding rights and benefits entitled to 2. Mailing of Annual Second week of June
Shareholders are available on the Company’s Reports 2024
website at https://investors.larsentoubro.com/ 3. First Quarter Results During the last week of
July 2024*
Investor-FAQ.aspx
4. Annual General July 4, 2024
H. Unclaimed Shares Meeting
5. Payment of Dividend July 9, 2024*
The Company does not have any unclaimed shares
6. Second Quarter During last week of
lying with it from any public issue. However results October 2024*
certain shares resulting out of the bonus shares 7. Third Quarter results During last week of
issued by the Company are unclaimed by the January 2025*
shareholders. As required under Regulation 39(4) * Tentative
of the SEBI LODR Regulations, the Company has
already sent reminders to the shareholders to c) Record Date:
claim these shares. These shares are regularly The Record date to determine the members
released on requests received from the eligible entitled to the final dividend for FY 2023-24 is
shareholders after due verification. Thursday, June 20, 2024.

In accordance with the provisions of the section d) Listing of equity shares / shares underlying
124(6) of the Companies Act, 2013 and Rule GDRs on Stock Exchanges:
6(3)(a) of the Investor Education and Protection
The shares of the Company are listed on BSE
Fund Authority (Accounting, Audit, Transfer and
Limited (BSE) and the National Stock Exchange of
Refund) Rules, 2016 (‘IEPF Rules’), the Company
India Limited (NSE).
has transferred to IEPF equity shares on which
dividend has remained unclaimed for a period of GDRs are listed on Luxembourg Stock Exchange
seven consecutive years upto the FY 2015-16. The and admitted for trading on London Stock
details are given in the Board Report. Please refer Exchange.
to page 324 of this integrated Annual Report.
e) Listing Fees to Stock Exchanges:
All corporate benefits on such shares viz.
The Company has paid the Listing Fees for
dividends, bonus shares, etc. shall be transferred
FY 2024-25 to BSE and NSE in April 2024. The
in accordance with the provisions of IEPF Rules
fees to London Stock Exchange has been paid in
read with Section 124(6) of the Companies Act,
March 2024 and to Luxembourg Stock Exchange
2013. The eligible shareholders are requested
has been paid in May 2024.
to note the same and make an application to
IEPF Authority in accordance with the procedure
f) Custodial Fees to Depositories:
available on www.iepf.gov.in and submit such
documents as prescribed under the IEPF Rules to The Company has paid the custodial fees to
claim these shares. Mr. Sivaram Nair A Company National Securities Depository Limited. The fees to
Secretary has been appointed as the Nodal officer Central Depository Services (India) Limited (CDSL)
of the Company. shall be paid on the receipt of their invoice.

353
 Annexure to
the Board Report

g) Stock Code / Symbol: i) Registrar and Share Transfer Agents (RTA):

The Company’s equity shares / GDRs are listed on KFin Technologies Limited
the following Stock Exchanges and admitted for Unit: Larsen & Toubro Limited
trading in London Stock Exchange: Selenium Tower B, Plot number 31 & 32
Financial District Gachibowli, Nanakramguda,
BSE Limited (BSE) : Scrip Code - 500510
Hyderabad, Telangana - 500 032.
National Stock Exchange of : Scrip Code - LT
India Limited (NSE) j) Share Transfer System:
ISIN : INE018A01030 Pursuant to SEBI notification dated January 24,
Reuters RIC : LART.BO 2022, requests for effecting transfer of securities
Luxembourg Exchange Stock : 005428157 in physical form, shall not be processed by the
Code Company.
London Exchange Stock : LTOD
Code Physical shares received for dematerialization are
processed and dematerialization is completed
The Company’s shares constitute a part of BSE 30 within a period of 21 days from the date of
Index of the BSE Limited as well as NIFTY Index of receipt.
the National Stock Exchange of India Limited.
As required under Regulation 40 of the SEBI
h) Stock market data for the FY 2023-24: LODR Regulations, a certificate on yearly basis
Month L&T BSE Price (v) BSE SENSEX confirming due compliance from Practicing
Month Month Company Secretary has been submitted to Stock
2023 High Low High Low Exchanges within stipulated time.
Close Close
April 2,368.75 2,155.55 2,364.75 61,209.46 58,793.08 61,112.44 k) Distribution of Shareholding as on March 31,
May 2,416.00 2,168.65 2,206.45 63,036.12 61,002.17 62,622.24 2024:
June 2,482.95 2,202.20 2,474.50 64,768.58 62,359.14 64,718.56 Shareholders Shareholding
July 2,687.90 2,419.95 2,679.90 67,619.17 64,836.16 66,527.67 No. of Shares
Number % Number %
August 2,767.00 2,586.75 2,706.00 66,658.12 64,723.63 64,831.41 upto 500 14,69,775 93.97 8,92,29,541 6.49
September 3,057.00 2,688.55 3,021.95 67,927.23 64,818.37 65,828.41 501 – 1000 46,153 2.95 3,37,01,309 2.45
October 3,114.00 2,856.85 2,928.80 66,592.16 63,092.98 63,874.93 1001 – 2000 25,717 1.64 3,59,59,801 2.62
November 3,122.00 2,872.00 3,111.65 67,069.89 63,550.46 66,988.44 2001 – 3000 8,662 0.56 2,11,63,905 1.54

December 3,559.75 3,125.05 3,527.05 72,484.34 67,149.07 72,240.26 3001 – 4000 3,789 0.24 1,31,21,326 0.95
4001 – 5000 2,391 0.15 1,07,74,130 0.79
2024
5001 - 10000 4,069 0.26 2,81,05,651 2.04
January 3,738.90 3,387.40 3,480.15 73,427.59 70,001.60 71,752.11
10001 and 3,529 0.23 1,14,26,12,956 83.12
February 3,511.95 3,264.00 3,481.60 73,413.93 70,809.84 72,500.30
above
March 3,812.00 3,481.00 3,774.10 74,245.17 71,674.42 73,651.35 TOTAL 15,64,085 100.00 1,37,46,68,619 100.00

Month L&T NSE Price (v) NIFTY l) Categories of Shareholders is as under:

Month Month 31.03.2024 31.03.2023
2023 High Low High Low
Close Close Category No. of No. of
April 2,369.00 2,155.00 2,364.40 18,089.15 17,312.75 18,065.00 % %
Shares Shares
May 2,416.35 2,168.50 2,205.65 18,662.45 18,042.40 18,534.40 Financial Institutions 18,41,59,970 13.40 19,71,96,424 14.03
June 2,483.50 2,202.15 2,475.55 19,201.70 18,464.55 19,189.05 Foreign Institutional 33,02,78,309 24.02 33,97,97,270 24.18
July 2,690.00 2,420.00 2,681.35 19,991.85 19,234.40 19,753.80 Investors
August 2,766.80 2,586.30 2,702.70 19,795.60 19,223.65 19,253.80 Shares underlying GDRs 1,88,37,260 1.37 176,47,986 1.26
September 3,058.35 2,688.30 3,023.55 20,222.45 19,255.70 19,638.30 Mutual Funds 24,20,78,635 17.61 24,42,12,576 17.37
October 3,114.95 2,856.15 2,929.05 19,849.75 18,837.85 19,079.60 Bodies Corporate & 9,48,47,826 6.90 10,41,86,514 7.41
November 3,124.55 2,871.05 3,109.20 20,158.70 18,973.70 20,133.15 Qualified Institutional
December 3,559.95 3,121.05 3,526.00 21,801.45 20,183.70 21,731.40 Buyers
2024 Directors & Relatives 10,80,537 0.08 17,84,805 0.13
January 3,737.90 3,387.05 3,479.75 22,124.15 21,137.20 21,725.70 L&T Employees Trust 19,48,87,516 14.18 19,25,58,158 13.70
February 3,513.00 3,263.05 3,477.55 22,297.50 21,530.20 21,982.80 Others 30,84,98,566 22.44 30,80,98,457 21.92
March 3,813.35 3481.00 3763.90 22,526.60 21,710.20 22,326.90 TOTAL 1,37,46,68,619 100.00 140,54,82,190 100.00

354 Integrated Annual Report 2023-24

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

m) Dematerialization of shares & Liquidity: Rating

Type of Instrument Rating
The Company’s Shares are required to be Agency
compulsorily traded in the Stock Exchanges in ICRA Non-Convertible ‘[ICRA] AAA (stable)’
dematerialized form. Limited Debentures Programme
Commercial Paper ‘[ICRA] A1+’
The number of shares held in dematerialized and
physical mode as on March 31, 2024 is as under: India Non-Convertible ‘IND AAA/ Stable’
Ratings Debentures
% of and
Research Commercial Paper ‘IND A1+’
total
No. of shares Private
capital
issued Limited

Held in dematerialized form in NSDL 128,37,72,465 93.39 Further, S&P Global Ratings vide its letter dated
Held in dematerialized form in CDSL 7,90,73,962 5.75 May 8, 2024 has assigned ‘BBB+ with Stable
Outlook’ long term issuer credit rating to the
Physical 1,18,22,192 0.86
Company
Total 137,46,68,619 100.00
s) Plant Locations:
n) Outstanding GDRs / ADRs / Warrants or any The L&T Group’s facilities for design, engineering,
Convertible Instruments, conversion date and manufacture, modular fabrication and production
likely impact on equity: are based at multiple locations within India
The outstanding GDRs are backed up by including, Bengaluru, Chennai, Coimbatore,
underlying equity shares which are part of the Faridabad, Hazira (Surat), Kattupalli (near
existing paid-up capital. Chennai), Kancheepuram, Mumbai, Pithampur,
Puducherry, Rajpura, Kansbahal (Rourkela),
o) Listing of Debt Securities:
Talegaon, Vadodara and Visakhapatnam. L&T’s
The redeemable Non-Convertible Debentures
international manufacturing footprint covers
issued by the Company are listed on the
Oman, Saudi Arabia and USA. The L&T Group also
Wholesale Debt Market (WDM) of National Stock
has an extensive network of offices in India and
Exchange of India Limited and / or BSE Limited.
around the globe. See page 14 of this integrated
p) Listing of Commercial Paper: Annual Report.
The Commercial Papers issued by the Company t) Address for correspondence:
are listed on BSE Limited.
Larsen & Toubro Limited,
q) Debenture Trustees (for privately placed L&T House, Ballard Estate,
debentures): Mumbai 400 001.
IDBI Trusteeship Services Limited Tel. No. (022) 6752 5656,
Universal Insurance Building, Fax No. (022) 6752 5858
Ground Floor, Sir P. M. Road, Shareholder correspondence may be directed
Fort, Mumbai - 400001 to the Company’s Registrar and Share Transfer
r) Credit Rating: Agent, whose address is given below:
The Company has obtained rating from CRISIL 1. KFin Technologies Limited
Ratings Limited, ICRA Limited and India Ratings Unit: Larsen & Toubro Limited
and Research Private Limited during FY 2023-24. Selenium Tower B,
There has been no revision in credit ratings during Plot 31 & 32, Gachibowli,
FY 2023-24. The ratings given by these agencies Financial District,
are as follows: Nanakramguda,
Hyderabad,
Rating
Type of Instrument Rating Telengana - 500 032
Agency
Tel : (040) 6716 2222
CRISIL Non-Convertible ‘CRISIL AAA/Stable’ Toll free number: 1-800-3094-001
Limited Debentures Fax: (040) 2342 0814
Bank Loan Facilities ‘CRISIL AAA/Stable’ Email: [email protected]
Website: www.kfintech.com
Commercial Paper ‘CRISIL A1+’

355
 Annexure to
the Board Report

2. KFin Technologies Limited with its identified stakeholders on an ongoing

Unit: Larsen & Toubro Limited basis through business level engagements and
24-B, Raja Bahadur Mansion, structured stakeholder engagement programs.
Ground Floor, Ambalal Doshi Marg, The Company maintains its focus on delivering
Behind BSE Limited, value to all its stakeholders, especially the
Fort, Mumbai – 400 023. disadvantaged communities.
Tel : (022) 6623 5454/ 5412/ 5427
The communication channels with the Company’s
u) Investor Grievances: stakeholders include:
The Company has designated an exclusive e-mail
z For external stakeholders - Stakeholder
ID viz. [email protected] to enable
engagement sessions, client satisfaction
investors to register their complaints, if any.
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, etc.
this Code, Designated Persons (Directors, Advisors, z For internal stakeholders – Employee
Officers and other concerned employees / persons) satisfaction surveys, employee engagement
are prevented from dealing in the Company’s surveys for improvement in employee
shares during the closure of Trading Window. engagement processes, circulars and
To deal in securities beyond specified limit, messages from management, corporate
permission of Compliance Officer is also required. social initiatives, welfare initiatives for
Directors and designated employees who buy employees and their families, online news
and sell shares of the Company are prohibited bulletins for conveying topical developments,
from executing contra-trades during the next six large bouquet of print and online in-house
months following the prior transactions. magazines, helpdesk facility, etc.
The Company has a policy for acting against Each of the businesses have their internal
Directors and employees who violate the SEBI PIT mechanisms to address the grievances of its
Regulations / Code. Pursuant to the enactment stakeholders. In addition, at the corporate level,
of the SEBI (Prohibition of Insider Trading) there are committees which can be approached
(Amendment) Regulations, 2018, the Company if the stakeholders are not satisfied with the
has suitably modified the provisions of the Code functioning of such internal mechanisms. As part
which are effective from April 1, 2019. of the vigil mechanism, the Whistle Blower Policy
Mr. Sivaram Nair A., Company Secretary has been provides access to the Chairperson of the Audit
designated as the Compliance Officer. Committee. The Whistle Blower Policy for Vendors
& Channel Partners is displayed on the website
The Company has appointed Mr. P. Ramakrishnan, of the Company https://www.larsentoubro.com/
Executive Vice President (Corporate Accounts, corporate/about-lt-group/corporate-policies/.
Taxation & Investor Relations), as Chief
Investor Relations Officer. The Company also For more information regarding the initiatives
formulated Code of Practices and Procedures undertaken by the Company to engage with
for Fair Disclosure of Unpublished Price Sensitive its stakeholders please refer to the Relationship
Information which is available on Company’s Capital section of the Integrated Report and
Website https://www.larsentoubro.com/ disclosures given under Principle 4 of the Business
corporate/about-lt-group/corporate-policies/. Responsibility and Sustainability Report.

w) Stakeholder Engagement: X) Supplier/Contractor management:

The Company recognizes that its stakeholders The Company strives to foster responsible
form a vast and heterogeneous community. Our behaviour in the supply chain in accordance with
customers, shareholders, employees, suppliers, the highest standards of ethics and integrity,
community, etc. have been guideposts of our respect for the law, human and labour rights,
decision-making process. The Company engages and environmental protection. Various initiatives

356 Integrated Annual Report 2023-24

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

undertaken by the Company in this regard are The Policy is also available on the Company’s
given below: website at https://www.larsentoubro.com/
corporate/about-lt-group/corporate-policies/.
z Mandatory signing of Code of Conduct as
apart of vendor onboarding process, laying aa) ISO 9001:2015 Certification:
down minimum requirements for ESG The Company’s Secretarial Department which
compliance. provides secretarial services and investor services
z Evaluation of key suppliers on ESG for the Company and its Subsidiaries and
parameters. Associate Companies is ISO 9001:2015 certified.

z Conducting awareness programmes for bb) Audit as per SEBI requirements:

vendors and suppliers. As stipulated by SEBI, M/s. S. N.
Ananthasubramanian & Co., Company Secretaries,
For more information regarding supplier/
Secretarial Auditors of the Company carries out
contractor management please refer to
Reconciliation of Share Capital Audit to reconcile
Relationship Capital section of the Integrated
the total admitted capital with National Securities
Report.
Depository Limited (NSDL) and Central Depository
y) Awareness Sessions / Workshops on Services (India) Limited (CDSL) with the total
Governance practices: issued and listed capital. This audit is carried out
Employees across the Company as well as the every quarter and the report thereon is submitted
group are being sensitized about the various to the Stock Exchanges. The Audit has provided
policies and governance practices of the a reconciliation of total Listed and Paid-up capital
Company. The Company has designed in-house is in agreement with the aggregate of the total
training workshops on Corporate Governance number of shares in dematerialized form and in
with the help of an external faculty covering physical form.
basics of Corporate Governance as well as internal The Secretarial Department of the Company at
policies and compliances under Code of Conduct, Mumbai is manned by competent and experienced
Whistle Blower Policy, Sexual Harassment of professionals. The Company has a system
Women at Workplace (Prevention, Prohibition & to review and audit its secretarial and other
Redressal) Act, 2013, SEBI (Prohibition of Insider statutory compliances by competent professionals.
Trading) Regulations, 2015, etc. Appropriate actions are taken to continuously
The Company has established a scalable, improve the quality of compliance.
multi-featured and externally integrated digital cc) Secretarial Audit
learning platform called ATLNext. It offers a
Pursuant to the provisions of Section 204(1)
gamut of online courses including competency
of the Companies Act , 2013 and Regulation
courses, behavioural courses, and business-specific
24A of SEBI LODR Regulations, M/s. S. N.
technical courses. ALTNext also provides for a
Ananthasubramanian & Co., Company Secretaries,
course on Governance where employees can learn
conducts the secretarial audit of the compliance of
about Governance practices and give a self-
applicable statutory provisions and the adherence
assessment test after completion of the course.
of good corporate practices by the Company.
The Company has created a batch of trainers
Pursuant to Chapter IV-A of SEBI Master Circular
across businesses who in turn conduct training /
No. SEBI/HO/CFD/PoD2/CIR/P/2023/120 dated
awareness sessions within their business regularly.
July 11, 2023, the Company has obtained
z) Anti-bribery and Anti-corruption policy: an annual secretarial compliance report from
The Company has adopted the Anti-Bribery and M/s. S. N. Ananthasubramanian & Co., Company
Anti-Corruption (ABAC) Policy which acts as a Secretaries and submitted the same to the Stock
guiding framework for ensuring compliance with Exchanges within the prescribed timelines.
various legislations and standards of behaviour dd) Statutory Compliance System:
to which the Company and all its officials
The Company has in places system to ensure
must adhere to. This Policy is applicable to all
compliance with applicable laws, rules and
employees of the Company working at all levels
regulations. These comprise of Central and
and is widely disseminated across the Company.

357
 Annexure to
the Board Report

State Acts / Rules where the Company carries on Companies Act, 2013 and SEBI LODR Regulations.
business. The list of applicable laws are reviewed The Board Report and its annexures of these listed
by an External Consultant along with the Legal & companies contains various disclosures dealing
Finance & Accounts functions of each Business. with subsidiary companies.
Each Business head certifies compliance of all All these listed entities have one Executive
applicable laws on a quarterly basis. Based on Director of the Company and L&T Technology
these confirmations, the Company Secretary Services Limited and LTIMindtree Limited have
gives a compliance certificate to the Board of one Independent Director of the Company on
Directors. The Company verifies the compliances its Board. Any financial assistance to the above
through a random review of the process / system companies or purchase/sale by the Company of
/ documentation with the Business / Corporate their shares, is dealt with by the Company’s Board.
function.
These listed entities publish their Independent
To strengthen & make the compliance Auditor’s certificate on Corporate Governance,
monitoring process more robust, the Company Secretarial Audit Report of Practising Company
has implemented a web-based portal known Secretary and CEO/CFO’s certificate for internal
as “iCompliance portal”, which enables us to controls for financial reporting.
monitor the regulatory compliance performance,
The Company has entered into brand/trademark
remediation plans for non-conformities. This
licensing agreement with its equity listed
portal also helps us maintain updated list of
subsidiaries and fees are charged based on
applicable laws and compliance checklist(s) which
turnover/profits/assets.
are monitored & tracked through the portal.
Responsibility of the Company’s corporate team
The Company also engages external consultants
in the areas of statutory compliance (including
to prepare as well as review compliance checklists
corporate laws), Risk Management, Internal
for the new geographies and update the existing
Controls and Internal Audit, covers all unlisted
checklist(s) of compliances. Compliance tasks are
subsidiaries. The three listed entities have their
mapped in iCompliance portal to process owners
own teams to carry out these functions.
who update the status with supporting evidence.
Identified key stakeholders across functions ensure The ICs have separate internal teams to
and confirm compliance with the provisions of all oversee their legal and compliance functions.
applicable laws on a regular basis. All Subsidiary Companies associated with the
respective ICs are reviewed by their respective IC
ee) Group Governance Policy:
Boards.
Vide its circular dated May 10, 2018, SEBI has
introduced the concept of Group Governance The subsidiary companies also function
Unit. The circular expects listed companies to independently and have separate Boards which
monitor their governance through a Governance consists of representatives of the Company,
Committee and establishment of a strong and who are senior executives of the Company,
effective group governance policy. representatives of Joint Venture partners,
representative of the Company’s Board as well
“Corporate Governance” in the Company and its as Independent Directors as required by law. As
subsidiaries broadly includes strategic supervision per law, these companies, wherever required,
by the Board and its Committees, compliance of also have Audit Committee, Nomination &
Code of Conduct, Statutory Compliance including Remuneration Committee, CSR & Sustainability
compliance of Companies Act, 2013 / applicable Committee, Stakeholders’ Relationship Committee
SEBI Regulations, avoiding conflict of interest, Risk and Risk Management Committee.
Management, Internal Controls and Audit.
Major unlisted subsidiaries have some Executive
The Company has three listed entities within the Directors of the Company on their Board. The
group. Each of these entities have their own Board subsidiary companies’ performance is reviewed
and Board Committees in compliance with the by the Company’s Board periodically (included
Companies Act, 2013 and SEBI LODR Regulations. in quarterly results presented to the Company’s
The oversight of their subsidiaries is as per Board). F&A heads of some of the subsidiary

358 Integrated Annual Report 2023-24

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

companies functionally report to select senior financials of the Company, through an appropriate
finance officers of the Company. forum.
Thus, the overall functioning of these Subsidiary The Secretarial Department of the Company has
companies is monitored by the Group directly or qualified Company Secretaries (CS) with vast
through their respective IC’s. experience in the field of compliance and law.
It consists of fulltime professionals dedicated to
A voluntary Secretarial Audit is conducted for all
performing corporate secretarial and subsidiary
subsidiary companies, including foreign companies
governance duties. Qualified CS in secretarial
and companies which are not covered under the
department monitor the compliance related to
purview of Companies Act, 2013. Thus, there is
subsidiaries under Companies Act / Rules. The
a complete audit of the compliance of applicable
Company’s Secretarial Department develops a
statutory provisions and adherence to good
broad Governance policy for the Company and its
corporate practices.
group of subsidiaries.
The Company’s Code of Conduct (Code) is
The Company’s Secretarial Department is involved
required to be adhered by all unlisted group
in all major corporate actions of subsidiaries
companies covering employees, directors, suppliers,
like IPO’s, raising of capital, restructuring, major
contractors, etc. In addition to this, the subsidiaries
financial assistance to subsidiaries etc.
also have their own vigil mechanism, if they meet
the thresholds given in the Companies Act, 2013. Appropriate disclosures related to subsidiaries
The Audit Committee/Board of these companies are made in Financial Statements / Directors’
monitor this mechanism. The Vigil Mechanism Report of the Company as well as its subsidiaries
Framework to report breach of code is a structured as per Companies Act, 2013 / applicable SEBI
process, which encourages and facilitates all Regulations and applicable Accounting Standards.
covered, to report without fear, wrongdoings or All companies are subject to Statutory Audit and
any unethical or improper practice which may applicable Secretarial Audit.
adversely impact the image, credibility and/or the

359
 Annexure to
the Board Report

Independent Auditor’s Certificate on Corporate Governance

TO THE MEMBERS OF Guidance Note on Certification of Corporate
LARSEN & TOUBRO LIMITED Governance issued by the Institute of the Chartered
Accountants of India (the ”ICAI”), the Standards
INDEPENDENT AUDITOR’S CERTIFICATE ON on Auditing specified under Section 143(10) of the
CORPORATE GOVERNANCE Companies Act 2013, in so far as applicable for the
1. This certificate is issued in accordance with the terms purpose of this certificate and as per the Guidance
of our engagement letter dated September 12, 2023. Note on Reports or Certificates for Special Purposes
issued by the ICAI which requires that we comply with
2. We, Deloitte Haskins & Sells LLP, Chartered the ethical requirements of the Code of Ethics issued
Accountants, the Statutory Auditors of Larsen & by the ICAI.
Toubro Limited (the “Company”), have examined the
compliance of conditions of Corporate Governance by 7. We have complied with the relevant applicable
the Company, for the year ended on March 31, 2024, requirements of the Standard on Quality Control
as stipulated in regulations 17 to 27 and clauses (b) to (SQC) 1, Quality Control for Firms that Perform Audits
(i) of regulation 46(2) and Para C and D of Schedule and Reviews of Historical Financial Information, and
V of the SEBI (Listing Obligations and Disclosure Other Assurance and Related Services Engagements.
Requirements) Regulations, 2015, as amended from
time to time (the “Listing Regulations”). OPINION
8. Based on our examination of the relevant records
MANAGEMENT’S 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 V
the Corporate Governance stipulated in Listing of the Listing Regulations during the year ended March
Regulations. 31, 2024.

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 Rishabh Sanghvi
Company for the purposes of providing reasonable (Partner)
assurance on the compliance with Corporate (Membership No. 066926)
Governance requirements by the Company. UDIN: 24066926BKBMZV8178
6. We have carried out an examination of the relevant Place: Mumbai
records of the Company in accordance with the Date: May 8, 2024

360 Integrated Annual Report 2023-24

 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, (Share Based Employee Benefits and Sweat Equity)

The Members, Regulations, 2021 and the ICSI Auditing Standards,
Larsen & Toubro Limited issued by the Institute of Companies Secretaries of
CIN: L99999MH1946PLC004768 India.
L&T House, Ballard Estate,
VERIFICATION
Mumbai – 400001
6. We have verified the following:
BACKGROUND
(a) the Schemes;
1. This Certificate is issued in accordance with the terms
of our engagement dated May 16, 2023. (b) the Resolutions;
2. We, Secretarial Auditor of Larsen & Toubro Limited (c) Note on Accounting Treatment followed by the
(“the Company”), pursuant to Regulation 13 of Company.
the Securities Exchange Board of India (Share Based
CERTIFICATION
Employee Benefits and Sweat Equity) Regulations,
2021 (“the Regulations”) are required to certify that, 7. Based on our verification of the records and
for the Financial Year ended March 31, 2024, the documents maintained by the Company as aforesaid
Employees Stock Option Schemes, Larsen & Toubro and according to the information, explanations and
Limited Employee Stock Ownership Scheme – 2003 written representations provided to us, we certify
and Larsen & Toubro Limited Employee Stock Option that the Company has complied with the applicable
Scheme – 2006 (collectively referred to as “the provisions of the Regulations and the Resolutions in
Schemes”) have been implemented in accordance with implementing the Schemes during the year ended
the Regulations and in accordance with the Special March 31, 2024.
Resolutions passed at the General Meetings held on RESTRICTION ON USE
August 26, 1999 & August 22, 2003 and August 25,
8. This Certificate is addressed to and provided to the
2006, respectively (the “Resolutions”)
Members of the Company solely for the purpose of
MANAGEMENT RESPONSIBILITY compliances with Regulation 13 of the Regulations.
3. It is the responsibility of the Management of the This 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
For S. N. ANANTHASUBRAMANIAN & Co.
4. It is our responsibility to certify whether the Company
Company Secretaries
has complied with the applicable provisions of the
ICSI Unique Code: P1991MH040400
Regulations and the Resolutions, during the year
Peer Review Cert. No.: 5218/2023
ended March 31, 2024, in implementing the Schemes
on the basis of information compiled or collated by the
S. N. Ananthasubramanian
Management and the accounting and other relevant
Founding Partner
supporting records and documents provided to us for
FCS: 4206 | COP No.: 1774
our examination.
ICSI UDIN: F004206F000322381
5. We have conducted our examination and obtained the
Place: Thane
explanations in accordance with Referencer on SEBI
Date: May 8, 2024

361
 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 the Companies Act, 2013 (‘the Act’);
ii) Disclosure of concern or interest 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 2023-24 and Financial Year 2024-25 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 March 31, 2024, 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 30-09-2023
02 Mr. Sekharipuram Narayanan Subrahmanyan 02255382 01-07-2011 –
03 Mr. Ramamurthi Shankar Raman 00019798 01-10-2011 –
04 Mr. Maddur Venkata Rao Satish 06393156 29-01-2016 07-04-2024
05 Mr. Subramanian Sarma 00554221 19-08-2015 –
06 Mr. Sudhindra Vasantrao Desai 07648203 11-07-2020 –
07 Mr. Tharayil Madhava Das 08586766 11-07-2020 –
08 Mr. Anil Vithal Parab 06913351 05-08-2022 –
09 Mr. Mukund Manohar Chitale 00101004 06-07-2004 31-03-2024
10 Mr. Meleveetil Damodaran 02106990 22-10-2012 31-03-2024
11 Mr. Vikram Singh Mehta 00041197 22-10-2012 31-03-2024
12 Mr. Adil Siraj Zainulbhai 06646490 30-05-2014 –
13 Mr. Sanjeev Aga 00022065 25-05-2016 –
14 Mr. Narayanan Kumar 00007848 27-05-2016 –

362 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Director
Sr.
Name of Director Identification Date of Appointment Date of Cessation
No.
Number (DIN)
15 Mr. Hemant Bhargava 01922717 28-05-2018 –
16 Mrs. Preetha Reddy 00001871 01-03-2021 –
17 Mr. Pramit Jhaveri 00186137 01-04-2022 –
18 Mr Rajnish Kumar 05328267 10-05-2023 –
19 Mr. Jyoti Sagar 00060455 10-05-2023 –
20 Mr Ajay Tyagi 00187429 31-10-2023 –
21 Mr. P.R. Ramesh 01915274 31-10-2023 –

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 March 31, 2024.
For S. N. ANANTHASUBRAMANIAN & Co.
Company Secretaries
ICSI Unique Code P1991MH040400
Peer Review Cert. No. 5218/2023

S. N. Ananthasubramanian
Founding Partner
FCS: 4206 | COP No. : 1774
ICSI UDIN: F004206F000270450
Date : April 29, 2024
Place : Thane

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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, 2024 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 year 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;
(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 & Chairman &
Chief Financial Officer Managing Director
DIN: 00019798 DIN: 02255382
Date: May 8, 2024

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Annexure ‘C’ to the Board Report

ANNUAL REPORT ON CSR ACTIVITIES FOR FINANCIAL YEAR ENDED MARCH 31, 2024
1. Brief outline on CSR Policy of the Company
L&T strives to promote initiatives that enhance the quality of life for communities to achieve inclusive growth through
empowerment and work towards social equity. L&T CSR has been working towards the social and economic development
of communities at various locations across the country. The Company has a well-entrenched CSR program that
contributes to inclusive growth and accelerating development through interventions in Water and Sanitation, Health,
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 Company’s primary focus is on ‘Building India’s Social Infrastructure’ as part of its CSR programme which will
include, amongst others, the following areas, viz.
z Water & Sanitation – includes but not limited to watershed development - access to water, promoting rainwater
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.
z Education - includes but not limited to education infrastructure support to educational Institutions, educational
programs & 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 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. A renewed focus on kindling curiosity and scientific temper
amongst students through experiential learning is deployed through the STEM programme which also focuses on
training teachers to deploy imaginative pedagogy in the classroom.
z 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 with renewed focus in the post COVID scenario. A renewed impetus was provided to improve health
awareness and promote health seeking behaviour in communities.
z 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 & vocational training), Construction
Skills Training Centres and providing employability skills to women and youth.
In line with the ‘Skill India Mission’, initiatives such as digitization of curriculum, deploying hands-on-teaching learning
methodology and providing platform skills training to Master Trainers through the Skill Training Institute provided an
impetus to the skilling ecosystem within the country.
Governance, Technology, and Innovation would be the Key enabling factors across all these verticals.

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2. Composition of CSR & Sustainability Committee.

The CSR & Sustainability Committee of the Board comprised 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. S. V. Desai$ Member (Whole-time Director) 3 3
* Ceased to be a member of the committee effective closure of March 31, 2024.
$ Appointed as a member of the committee with effect from 8th April, 2023.

Mr. Ajay Tyagi (Independent Director) has been appointed as the Chairman of the Committee and Mr. Jyoti Sagar
(Independent Director) has been appointed as member of the Committee with effect from April 1, 2024.
Mr. Sivaram Nair A., Company Secretary & Compliance Officer of the Company, acts as the Secretary of the Committee.
3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR Annual Action Plan for
FY 2023-24 approved by the Board are disclosed on the website of the Company.
The Composition of CSR Committee, CSR Policy Framework and CSR Annual Action Plan for FY 2023-24 approved by the
Board are available in the Corporate Governance section on the website of the Company. Please see the following links:
z Composition of CSR Committee - https://investors.larsentoubro.com/governance-architecture.aspx
z CSR Policy - https://www.larsentoubro.com/corporate/about-lt-group/corporate-policies/
z CSR Annual Action Plan for FY 2023-24 - https://investors.larsentoubro.com/listing-compliance-disclosuresunderstatutes.aspx
4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects carried out in
pursuance of sub-rule (3) of rule 8, if applicable.
25 CSR projects which were implemented in FY 2021-22, qualified for the 3rd party social impact assessment. Out
of these, 15 projects were assessed by 4th Wheel Social Impact and 10 projects were assessed by Thinkthrough
Consulting during FY 2023-24.
The Impact Assessment reports are made available on the website of the Company at https://investors.larsentoubro.com/
listing-compliance-agm.aspx. An executive summary of the same is provided below:
Key findings from Thinkthrough Consulting:
Thinkthrough Consulting utilized the Organization for Economic Co-operation and Development (OECD) Development
Assistance Committee’s (DAC) framework to evaluate the relevance, effectiveness, impact, and sustainability of the
CSR programs. The study was done by using mixed methodology wherein both quantitative and qualitative data was
collected.
In terms of relevance, the analysis of both qualitative and quantitative data indicates that health programs and
integrated community development initiatives are in alignment with Section 135 and Schedule VII of Companies Act 2013
and several Sustainable Development Goals (SDGs) namely SDG 1: No poverty, SDG 3: Ensure healthy lives and promote
well-being for all at all ages, SDG 4: Quality education, SDG 6: Clean water and sanitation, and SDG 10: Reduced
inequalities. Furthermore, these programs resonate with state and national priorities and schemes, while also addressing
the specific needs of the communities where they have been implemented.
The projects have been found to be effective. Findings from the report reveal the meticulous planning, overall target
achievement within the planned timeline and capacity building of relevant stakeholders ensuring efficiency of the
programs and its implementation.
The projects have created impact on the lives of the project participants/beneficiaries. The projects have led to an
enhanced quality of life by fostering improved livelihood opportunities, increased income and savings, and better access
to essential services such as healthcare, education, and knowledge for sustainable living.
Regarding sustainability, the programs have been structured to actively involve local communities, empowering them to
champion positive practices for the future.
Overall, it can be concluded that together all these elements formed the backbone of successful programs, driving
positive change and societal development.

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Key findings from 4th Wheel Social Impact

4th Wheel Social Impact assessed the impact and sustainability of the projects implemented in the FY 2021-22, using
the criteria outlined by OECD/DAC (Relevance, Coherence, Efficiency, Effectiveness, Impact and Sustainability) to delve
into the measurable, concrete outcomes and the less tangible, qualitative effects on the beneficiaries and the broader
community. A mixed-methods approach was employed to ensure a holistic understanding of the projects.
Relevance and Coherence
Relevance and coherence were evident in all CSR projects, which effectively addressed the needs of marginalized
communities such as rural youth, tribal groups, and disadvantaged women. These initiatives are aligned with Schedule
VII of the Companies Act 2013, particularly Sections 1 and 2, and contributed to Sustainable Development Goals 1
(No Poverty), 4 (Quality Education), 5 (Gender Equality), 9 (Industry, Innovation, and Infrastructure) and 10 (Reduced
Inequalities), highlighting their alignment with broader societal objectives.
Effectiveness and Efficiency
Construction Skills Training Institute (CSTI) achieved a 71% placement rate for 6,400 participants. Skill Training
Academy (STA) benefited 436 trainers with an NPS (Net Promoter Score - which Indicates the likelihood of stakeholders
recommending the programme to others) of 87, indicating high satisfaction. Construction of Residential School and Skill
Institute project provided well-equipped facilities and focused skill training for school dropout tribal children. E-content
Development project ensured standardized, reliable, and consistent delivery of technical information to bridge the gap
between conventional training methods and technical learning.
Under the STEM Education project, all schools received smart class tools, with 88% of teachers trained in science, math,
and STEM model-making displaying a high acceptance and inclination towards utilizing digital tools in classrooms. L&T’s
School Support Program improved the school infrastructure, facilitated digital learning access, and ensured teacher
salaries, reflecting efficient resource allocation. Equipped with computer labs and digital tools, teachers underwent
comprehensive training, and digital classes were integrated into the curriculum for all subjects, indicating effective use
of technology in education. Education initiatives in Mumbai and Chennai improved health and hygiene by constructing
toilets and enhanced student proficiency through remedial classes.
Health projects in Mumbai provided comprehensive support to mentally challenged women and children with cancer,
including medical, psychological, educational and vocational assistance. For vocational skill centers, 271 women
candidates were trained in West Bengal, Gujarat, Odisha, Karnataka, and Tamil Nadu.
Impact and Sustainability
Skill Development initiatives like CSTIs and STA significantly enhanced technical skills and soft skills among trainees,
ensuring their readiness for the workforce. E-content provision across CSTIs effectively addressed language barriers,
leading to improved learning outcomes for trainees. 74% of alumni acknowledged its benefits. Infrastructure support in
tribal communities such as Bodeli and Kansbahal boosted school attendance and laid a robust foundation for providing
enhanced learning opportunities.
Digital and STEM support to schools bolstered student proficiency in mathematics and science while nurturing
21st-century skills and STEM aspirations. Prayas Trust’s Community Development Activities resulted in establishing solid
educational foundations in low-resourced government schools, enhanced health and well-being among disadvantaged
communities, and self-employment among women through vocational training.

¢ Crore
5. (a) Average net profit of the company as per sub-section (5) of section 135. 7,548.78
(b) Two percent of average net profit of the company as per sub-section (5) of section 135. 150.98
(c) Surplus arising out of the CSR Projects or programmes or activities of the previous financial –
years.
(d) Amount required to be set-off for the financial year, if any. 8.81
(e) Total CSR obligation for the financial year [(b)+(c)-(d)]. 142.17

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¢ Crore
6. a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project). 146.97
b) Amount spent in Administrative Overheads 7.37
c) Amount spent on Impact Assessment, if applicable 0.49
d) Total amount spent for the Financial Year [(a)+(b)+(c)]. 154.83
e) CSR amount spent or unspent for the Financial Year:
Amount Unspent (in ¢ crore)
Total Amount
Total Amount transferred to Unspent
Spent for the Amount transferred to any fund specified under Schedule
CSR Account as per sub-section (6) of
Financial Year VII as per second proviso to sub-section (5) of section 135
section 135
(in ¢ crore)
Amount Date of transfer Name of the Fund Amount Date of transfer
154.83 NIL NIL

f) Excess amount for set-off, if any:

Sl. No Particulars Amount (in ¢ crore)
(1) (2) (3)
(i) Two percent of average net profit of the Company as per sub-section (5) of section 135 150.98
(ii) Total amount spent for the Financial Year @ 163.64
(iii) Excess amount spent for the Financial Year [(ii)-(i)] 12.66
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous NIL
Financial Years, if any
(v) Amount available for set off in succeeding Financial Years [(iii)-(iv)] 12.66


@ this includes ¢ 8.81 crore excess CSR amount spent during FY 2022-23 and adjusted against the required CSR spend for FY 2023-24.

7. Details of Unspent Corporate Social Responsibility amount for the preceding three Financial Years:
Amount Balance Amount transferred to a
Fund as specified under Amount
transferred to Amount in
Amt. Spent Schedule VII as per second remaining to
Preceding Unspent CSR Unspent CSR
Sl. in the proviso to Sub- section (5) be spent in Deficiency,
Financial Account under Account under
No. Financial of Section 135, if any succeeding if any
Year(s) Sub- section (6) Sub- section (6)
Year (in ¢) Financial Years
of Section 135 of Section 135 Amount Date of (in ¢ crore)
(in ¢ crore) (in ¢ crore) (in ¢ crore) Transfer
1 FY-1
2 FY-2 NOT APPLICABLE
3 FY-3

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount
spent in the Financial Year:
YES     NO
If Yes, enter the number of capital assets created/ acquired: 1387

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Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility
amount spent in the Financial Year:
Sl. Short particulars Pin code of Date of Amount of Details of entity / Authority / beneficiary of
of the property or the property creation CSR amount the registered owner
No. asset(s) [including or asset(s) spent
complete address
and location of the
property]
(1) (2) (3) (4) (5) (6)
CSR Registration Name Registered
Number, if address
applicable
Details of capital assets created or acquired through Corporate Social Responsibility amount is available on the Company’s website
https://investors.larsentoubro.com/listing-compliance-agm.aspx.

9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per sub-
section (5) of section 135.
NOT APPLICABLE

S. N. Subrahmanyan Ajay Tyagi

Chairman & Managing Director Chairman - CSR Committee
DIN: 02255382 DIN: 00187429

Date : May 8, 2024

Place : Mumbai

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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 2023-24, the percentage increase in remuneration of each Director & Company Secretary during FY 2023-24
and comparison of the remuneration of each of the Director/Key Managerial Personnel (KMP) against the
performance of the Company:
v crore

Ratio of remuneration of Percentage

Total
Name of the Director/KMP Designation director to the median increase in
Remuneration
remuneration *** Remuneration
Mr A.M. Naik% Non-executive Chairman 1.69 35.44 ~

Mr. S. N. Subrahmanyan%% Chairman & Managing Director 51.05 534.57 43.11%

Mr. R. Shankar Raman President, Whole-time Director & 31.66 331.52 42.84%
CFO

Mr. D. K. Sen# Whole-time Director & Senior 22.92 ~ ~

Executive Vice President
(Development Projects)

Mr. M. V. Satish$ Whole-time Director & Senior 13.80 144.47 11.79%

Executive Vice President (Buildings)

Mr. Subramanian Sarma Whole-time Director & President 37.04 387.83 46.50%
(Energy)

Mr. S. V. Desai Whole-Time Director & Senior 19.22 201.24 43.82%

Executive Vice President (Civil
Infrastructure)

Mr. T. Madhava Das Whole-Time Director & Senior 18.73 196.13 63.22%
Executive Vice President (Utilities)

Mr. Anil V Parab Whole-Time Director & Senior 12.52 131.11 132.15%+
Executive Vice President (Heavy
Engineering and Valves)

Mr. M. M. Chitale @ Independent Director 0.72 7.49 4.00%

Mr. M. Damodaran@ Independent Director 0.65 6.75 6.09%

Mr. Vikram Singh Mehta@ Independent Director 0.56 5.87 5.25%

Mr. Adil Zainulbhai Independent Director 0.58 6.10 2.84%

Mr. Sanjeev Aga Independent Director 0.52 5.48 5.21%

Mr. Narayanan Kumar Independent Director 0.53 5.53 -5.30%

Mr. Hemant Bhargava ^ Nominee of Life Insurance 0.29 2.99 -6.37%

Corporation of India

Mrs. Preetha Reddy Independent Director 0.22 2.27 -20.51%

Mr. Pramit Jhaveri Independent Director 0.37 3.86 1.57%

Mr. Jyoti Sagar* Independent Director 0.22 2.54 ~

Mr. Rajnish Kumar* Independent Director 0.22 2.54 ~

Mr. Ajay Tyagi** Independent Director 0.13 3.25 ~

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v crore

Ratio of remuneration of Percentage

Total
Name of the Director/KMP Designation director to the median increase in
Remuneration
remuneration *** Remuneration
Mr. P. R. Ramesh** Independent Director 0.13 3.25 ~

Mr. Sivaram Nair A Company Secretary & Compliance 1.72 17.98 7.91%
Officer
% Remuneration of Mr. A. M. Naik excludes ¢ 1.5 crore paid to him during the financial year towards pension. Mr. Naik ceased to be the
Non-executive Chairman with effect from September 30, 2023
%% Appointed as Chairman and re-designated as Chairman & Managing Director with effect from October 1, 2023.

$ Ceased to be a Whole-time Director with effect from April 7, 2024 on account of superannuation.
# Ceased to be Whole-time Director with effect from April 7, 2023 on account of superannuation.
^ Part of the remuneration has been paid to the financial institution he represents
@ Ceased to be Independent Directors with effect from March 31, 2024 on account of completion of tenure
+ Impact of full year remuneration of new director/KMP appointed during FY 2022-23
* Appointed as Independent Directors with effect from May 10, 2023
** Appointed as Independent Directors with effect from October 31, 2023
*** 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 2023-24
~ Details not given as the Director was there for part of the year.

B. Percentage increase in the median remuneration the managerial remuneration and justification
of all employees in FY 2023-24: thereof and point out if there are any exceptional
The median remuneration of employees of the circumstances for increase in managerial
Company during the financial year was ¢ 9.55 lakh. In remuneration
the financial year, there was an increase of 1.32% in Average percentage increase made in the salaries of
the median remuneration of employees. employees other than the managerial personnel for the
FY 2023-24 was 1.74% whereas there is an increase
C. Number of permanent employees on the rolls of
in the managerial remuneration by 20.38%. Increase
the Company as on March 31, 2024:
in managerial remuneration is mainly on account of
There were 59,018 permanent employees on the rolls higher profits and increase in commission rates.
of the Company as on March 31, 2024.
E. Affirmation that the remuneration is as per the
D. Average percentile increase made in the salaries remuneration policy of the Company:
of the employees other than the managerial
It is hereby affirmed that the remuneration paid is
personnel in the last financial year and its
as per the Remuneration Policy for Directors, Key
comparison with the percentile increase in
Managerial Personnel and other Employees.

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 Annexure to
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Annexure ‘E’ to the Board Report

Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2024
[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, b. The Securities and Exchange Board of India

The Members, (Prohibition of Insider Trading) Regulations, 2015;
Larsen & Toubro Limited
CIN: L99999MH1946PLC004768 c. The Securities and Exchange Board of India
L&T House, Ballard Estate, (Issue of Capital and Disclosure Requirements)
Mumbai – 400001 Regulations, 2018 - Not Applicable as there
was no reportable event during the financial
We have conducted the Secretarial Audit of the compliance
of applicable statutory provisions and the adherence to year under review;
good corporate practices by Larsen & Toubro Limited d. The Securities and Exchange Board of India (Share
(hereinafter called ‘the Company’). Secretarial Audit was Based Employee Benefits and Sweat Equity)
conducted in a manner that provided us a reasonable
Regulations, 2021;
basis for evaluating the corporate conducts / statutory
compliances and expressing our opinion thereon. e. The Securities and Exchange Board of India
Based on our verification of the Company’s books, papers, (Registrars to an Issue and Share Transfer Agents)
minute books, forms and returns filed and other records Regulations, 1993 regarding the Companies Act
maintained by the Company and also the information and dealing with client - Not Applicable as the
provided by the Company, its officers, agents and Company is not registered as Registrar to
authorized representatives during the conduct of secretarial Issue and Share Transfer Agent during the
audit, we hereby report that in our opinion, the Company financial year under review;
has, during the audit period covering the financial year
ended on March 31, 2024, complied with the statutory f. The Securities and Exchange Board of India
provisions listed hereunder and also that the Company (Delisting of Equity Shares) Regulations, 2021
has proper Board-processes and compliance-mechanism - Not Applicable as the Company has not
in place to the extent, in the manner and subject to the delisted/ proposed to delist its equity shares
reporting made hereinafter.
from any Stock Exchange during the financial
We have examined the books, papers, minute books, forms year under review;
and returns filed and other records maintained by the
Company for the financial year ended on March 31, 2024 g. The Securities and Exchange Board of India
according to the provisions of: (Buyback of Securities) Regulations, 2018 ;
i. The Companies Act, 2013 (the Act) and the rules made h. The Securities and Exchange Board of India
thereunder; (Issue and Listing of Non-Convertible Securities)
ii. The Securities Contracts (Regulation) Act, 1956 Regulations, 2021 ;
(‘SCRA’) and the rules made thereunder;
i. The Securities and Exchange Board of India
iii. The Depositories Act, 1996 and the Regulations and (Listing Obligations and Disclosure Requirements),
Bye-laws framed thereunder; Regulations, 2015;
iv. Foreign Exchange Management Act, 1999 and the
vi. The Company has informed that there are no laws
rules and regulations made thereunder to the extent of
which are specifically applicable to the Company.
Foreign Direct Investment, Overseas Direct Investment
and External Commercial Borrowings; We have also examined compliance with the applicable
v. The following Regulations and Guidelines prescribed provisions of the following:
under the Securities and Exchange Board of India Act,
(i) Secretarial Standards with regard to Meetings of Board
1992 (‘SEBI Act’):
of Directors (SS-1) and General Meetings (SS-2) issued
a. The Securities and Exchange Board of India by The Institute of Company Secretaries of India;
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;

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(ii) Listing Agreements entered into by the Company with z raised ¢ 450 crore by way of receipt of call money
BSE Limited and National Stock Exchange of India pursuant to Third Balance Payment (Final) notice of
Limited. ¢ 2,50,000 each towards 18,000 partly paid Non-
Convertible Debentures on April 24, 2023;
During the period under review the Company has complied
with the provisions of the Act, Rules, Regulations, z raised ¢ 7,000 crore by issue and allotment of
Guidelines, Standards, etc. 7,00,000 Non-Convertible Debentures of ¢ 1 Lac each
We further report that: aggregating to a) ¢ 3,500 Crore on June 8, 2023,
z The Board of Directors of the Company is duly b) ¢ 1,500 Crore on November 2, 2023 and c) ¢ 2,000
constituted with proper balance of Executive Directors, Crore on November 9, 2023;
Non-Executive Directors including Independent z completed Buy-back of 3,12,50,000 fully paid up
Directors and a Woman Director. The changes in the equity shares of the Company of face value of ¢ 2/-
composition of the Board of Directors which took (Rupees Two only) each at a price of ¢ 3,200/- (Rupees
place during the period under review were carried out Three Thousand Two Hundred Only) per equity share
in compliance with the provisions of the Act; aggregating ¢ 10,000 crore on a proportionate basis
z Adequate notice is given to all Directors of the from the Equity Shareholders of the Company, through
schedule of the Board and Committee Meetings and the tender offer process on September 30, 2023;
Agenda & detailed notes on agenda were sent at z The Board at its meeting held on January 30, 2024
least seven days in advance and there exists a system has approved Merger of L&T Energy Hydrocarbon
for seeking and obtaining further information and Engineering Limited and L&T Offshore Private Limited,
clarifications on the agenda items before the meeting wholly owned subsidiaries, with the Company. The
for meaningful participation at the meeting; Company has made application(s) with necessary
z All decisions of Board and Committee meetings were statutory and regulatory Authorities for the approval
carried unanimously. of Merger Scheme including to National Company Law
Tribunal (NCLT).
We further report that based on review of compliance
mechanism established by the Company and on the basis This Report is to be read with our letter of even date which
is annexed as Annexure A and forms an integral part of this
of the Compliance Certificate(s) issued by the Company
report.
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 For S. N. ANANTHASUBRAMANIAN & Co.
which is commensurate with the size and operations of Company Secretaries
the Company to monitor and ensure compliance with ICSI Unique Code: P1991MH040400
applicable laws, rules, regulations and guidelines. Peer Review Cert. No.: 5218/2023

We further report that during the audit period the S. N. Ananthasubramanian

following events have occurred which had a major bearing Founding Partner
on the Company’s affairs in pursuance of the above FCS: 4206 | COP No.: 1774
referred laws, rules, regulations, guidelines, standards etc: ICSI UDIN: F004206F00322293
The Company has: Date : May 8, 2024
z redeemed Non-Convertible Debentures of Place : Thane
¢ 1,250 crore on April 20, 2023, ¢ 3,450 crore on
April 24, 2023 and ¢ 100 crore on May 24, 2023,
respectively on their due dates;

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Annexure – A 5 Wherever required, we have obtained reasonable

assurance whether the statements prepared,
To, documents or Records, in relation to Secretarial
The Members, Audit, maintained by the Company, are free from
Larsen & Toubro Limited misstatement.
CIN: L99999MH1946PLC004768
6 Wherever required, we have obtained the
L& T House, Ballard Estate,
Management’s representation about the compliance of
Mumbai – 400001.
laws, rules and regulations and happening of events,
Our Secretarial Audit Report for the Financial Year ended etc.
March 31, 2024, of even date is to be read along with 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.: 5218/2023
3 We have conducted the Audit as per the applicable
Auditing Standards issued by the Institute of Company
Secretaries of India. S. N. Ananthasubramanian
Founding Partner
4 We believe that audit evidence and information FCS: 4206 | COP No.: 1774
obtained from the Company’s management is ICSI UDIN: F004206F000322293
adequate and appropriate for us to provide a basis for
Date : May 8, 2024
our opinion. Place : Thane

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Annexure ‘F’ to the Board Report

NOMINATION & 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 & 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 means
and SEBI (Listing Obligations and Disclosure Requirements)
z Chief Executive Officer or the Managing Director
Regulations, 2015 (“LODR”).
or the Manager;
1. OBJECTIVE: z Whole-time Directors;
The Nomination & Remuneration Committee and this Policy
z Chief Financial Officer;
shall be in compliance with Section 178 of the Act read
along with the applicable rules thereto and Regulation 19 z Company Secretary;
of LODR. The Key Objectives of the Committee would be: z Senior Management Personnel designated as such
z To identify persons who are qualified to become by the Board; and
Directors and who may be appointed in senior z Such other officer as may be prescribed.
management in accordance with the criteria laid
down, recommend to the Board their appointment 2.6. Senior Management Personnel means all members
and removal and shall specify the manner for effective of management one level below the Executive
evaluation of performance of Board, its Committees Directors including the Chief Financial Officer and
and individual Directors to be carried out by the Board Company Secretary. Presently, persons in Sr. Vice
or the Nomination & Remuneration Committee or President grade and F&A heads of Independent
by an Independent External Agency and review its Companies reporting to Whole-time Directors will be
implementation and compliance; covered as Senior Management Personnel.
z To formulate the criteria for determining qualifications, 3. ROLE OF COMMITTEE:
positive attributes and independence of a Director 3.1. Matters to be dealt with, perused and
and recommend to the Board a policy, relating to recommended to the Board by the Nomination
the remuneration for the Directors, Key Managerial and Remuneration Committee
Personnel and other employees;
The Committee shall:
z To ensure that level and composition of remuneration
is reasonable and sufficient to attract, retain and z Formulate the criteria for determining
motivate Directors of the quality required to run the qualifications, positive attributes and
Company successfully; independence of a Director.

z Relationship of remuneration to performance is clear z Identify persons who are qualified to become
and meets appropriate performance benchmarks; Director and persons who may be appointed in
Key Managerial and Senior Management positions
z Remuneration to Directors, Key Managerial Personnel
in accordance with the criteria laid down in this
and senior management involves a balance between
policy.
fixed and incentive pay reflecting short and long-term
performance objectives appropriate to the working of z Recommend to the Board, appointment and
the Company and its goals; removal of Director, KMP and Senior Management
Personnel.
z Devising a policy on Board diversity;
3.2. Policy for appointment and removal of Director,
2. DEFINITIONS:
KMP and Senior Management
2.1. Act means the Companies Act, 2013 or Companies
Act, 1956 as may be applicable and Rules framed 3.2.1. Appointment criteria and qualifications
thereunder, as amended from time to time. a) The Committee shall identify and ascertain the
2.2. Board means Board of Directors of the Company. integrity, qualification, expertise and experience

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the Board Report

of the person for appointment as Director and Company in any other capacity, either directly
recommend to the Board his / her appointment. or indirectly.
Appointment and Remuneration of KMP or Senior - At the time of appointment of Independent
Management Personnel is in accordance with Director it should be ensured that number of
the HR Policy of the Company. The Company’s Boards on which such Independent Director
policy is committed to acquire, develop and retain serves is restricted to seven listed companies
a pool of high calibre talent, establish systems as an Independent Director and three listed
and practises for maintaining transparency, companies as an Independent Director in
fairness and equity and provides for payment case such person is serving as a Whole-time
of competitive pay packages matching industry Director of a listed company or such other
standards. number as may be prescribed under the Act.
b) A person should possess adequate qualification, c) Maximum Number of Directorships:
expertise and experience for the position he / she - A person shall not be appointed as a
is considered for appointment. The Committee Director in case he is a Director in more than
has discretion to decide whether qualification, eight listed companies after April 1, 2019
expertise and experience possessed by a person is and seven listed companies after April 1,
sufficient / satisfactory for the concerned position. 2020. For the purpose of this clause listed
c) The Company shall not appoint or continue the companies would mean only those companies
employment of any person as Director who has whose equity shares are listed.
attained the retirement age fixed by the Board or 3.2.3. Evaluation
as approved by the Shareholders pursuant to the
The Committee shall by itself or through the Board or
requirement of the Act / LODR.
an independent external agency carry out evaluation
3.2.2. Term / Tenure of performance of the Board / Committee(s), Individual
a) Executive Directors: Directors and Chairman at regular interval (yearly) and
review implementation and compliance.
The Company shall appoint or re-appoint any
person as its Executive Director for a term not The Company may disclose in the Annual Report:
exceeding five years at a time. No re-appointment
a. Observation of the Board Evaluation for the year
shall be made earlier than one year before the
under review
expiry of term.
b. Previous years observations and actions taken
b) Independent Directors:
- An Independent Director shall hold office for c. Proposed actions based on current year’s
a term up to five consecutive years on the observations
Board of the Company and will be eligible 3.2.4. Removal
for re-appointment on passing of a special
Due to reasons for any disqualification mentioned
resolution by the Company and disclosure of
in the Act or under any other applicable Act, rules
such appointment in the Board’s report. The
and regulations thereunder, the Committee may
rationale for such re-appointment shall also
recommend, to the Board with reasons recorded
be provided in the Notice to Shareholders
in writing, removal of a Director, KMP or Senior
proposing such re-appointment.
Management Personnel subject to the provisions and
- No Independent Director shall hold office for compliance of the said Act, rules and regulations.
more than two consecutive terms, but such
3.2.5. Retirement
Independent Director shall be eligible for
appointment after expiry of three years of The Director, KMP and Senior Management Personnel
ceasing to become an Independent Director. shall retire as per the applicable provisions of the Act
Provided that an Independent Director shall or the prevailing policy of the Company, as applicable.
not, during the said period of three years, The Board / Committee will have the discretion
be appointed in or be associated with the to retain the Director, KMP, Senior Management
Personnel in the same position / remuneration or

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otherwise even after attaining the retirement age, for contribution to P.F, pension scheme, medical
the benefit of the Company. expenses, club fees etc. shall be decided and
approved by the Board / the Person authorized
3.3. Policy relating to the Remuneration of Executive
by the Board on the recommendation of the
Director, KMP and Senior Management Personnel
Committee and approved by the shareholders and
3.3.1. General: Central Government, wherever required.
a) The remuneration / compensation / commission
b) Minimum Remuneration:
etc. to the Executive Directors will be determined
by the Committee and recommended to the Board If, in any financial year, the Company has no
for approval. The remuneration / compensation / profits or its profits are inadequate, the Company
commission etc. shall be subject to the approval shall pay remuneration to its Executive Directors
of the shareholders of the Company and Central in accordance with the provisions of Schedule V
Government, wherever required. of the Act and if it is not able to comply with
such provisions, with the previous approval of the
b) The remuneration and commission to be paid to Central Government.
the Executive Directors shall be in accordance with
the percentage / limits / conditions laid down in c) Provisions for excess remuneration:
the Articles of Association of the Company and as If any Chairman/Managing Director/Whole-time
per the provisions of the Act. Directors draws or receives, directly or indirectly by
way of remuneration any such sums in excess of
c) Increments to the existing remuneration/
the limits prescribed under the Act or without the
compensation structure may be recommended
prior sanction of the Central Government, where
by the Committee to the Board which should be
required, he / she shall refund such sums to the
within the limits approved by the Shareholders in
Company and until such sum is refunded, hold it
the case of Executive Directors.
in trust for the Company. The Company shall not
d) Where any insurance is taken by the Company waive recovery of such sum refundable to it unless
on behalf of its Executive Directors, Chief permitted by the Central Government.
Executive Officer, Chief Financial Officer, the
d) Stock Options in Subsidiary Companies:
Company Secretary and any other employees
for indemnifying them against any liability, the Executive Directors may be granted stock options
premium paid on such insurance shall not be in subsidiary companies as per their Schemes
treated as part of the remuneration payable to and after taking necessary approvals. Perquisites
any such personnel. Provided that if such person may be added to the remuneration of concerned
is proved to be guilty, the premium paid on Directors and considered in the limits applicable to
such insurance shall be treated as part of the the Company.
remuneration. 3.3.3. Remuneration to Non- Executive / Independent
e) Remuneration of other KMP or Senior Director:
Management Personnel, in any form, shall be as a) Remuneration / Commission:
per the policy of the Company based on the grade The remuneration / commission shall be fixed as
structure in the Company. per the limits and conditions mentioned in the
3.3.2. Remuneration to Executive Directors/KMP and Articles of Association of the Company and the
Senior Management Personnel: Act.
a) Fixed pay: b) Sitting Fees:
The Executive Directors / KMP and Senior The Non- Executive / Independent Director may
Management Personnel shall be eligible for a receive remuneration by way of fees for attending
monthly remuneration as may be approved by the meetings of Board or Committee thereof. Provided
Board on the recommendation of the Committee that the amount of such fees shall not exceed
or policy of the Company. In case of remuneration R One Lac per meeting of the Board or Committee
to Directors, the breakup of the pay scale and or such amount as may be prescribed by the
quantum of perquisites including, employer’s Central Government from time to time.

377
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the Board Report

c) Commission: 6. FREQUENCY OF MEETINGS

Commission may be paid within the monetary The meeting of the Committee shall be held atleast
limit approved by shareholders, subject to once in a year and at such regular intervals as may be
the limit not exceeding 1% of the profits of required.
the Company computed as per the applicable
7. COMMITTEE MEMBERS’ INTERESTS
provisions of the Act. The Board of Directors will
fix the Commission payable to Directors on the 7.1 A member of the Committee is not entitled to be
basis of number of Board/Committee meetings present/participate in discussion when his or her own
attended during the year and Chairmanships of remuneration is discussed at a meeting or when his or
Committees. her performance is being evaluated.

d) Stock Options: 7.2 The Committee may invite such executives, as it

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-
Executive Directors are eligible for Stock options 8. SECRETARY
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
letters received by the Company. 9. VOTING
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 three Members present and voting and any such decision
(3) non-executive Directors, half of them being shall for all purposes be deemed a decision of the
independent. Committee.
4.2 Minimum two (2) members or one-third of the 10. NOMINATION DUTIES
members whichever is greater including atleast one
The duties of the Committee in relation to nomination
Independent Director shall constitute a quorum for the
matters include:
Committee meeting.
10.1 Ensuring that on appointment to the Board,
4.3 Membership of the Committee shall be disclosed in
Non-Executive Directors receive a formal letter of
the Annual Report.
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 10.3 Setting a formal and transparent procedure for
Director. selecting new Directors for appointment to the Board;
5.2 Chairperson of the Company may be appointed 10.4 Developing a succession plan for the Board and Senior
as a member of the Committee but shall not be a Management and regularly reviewing the plan;
Chairman of the Committee.
10.5 Evaluating the performance of the Board members
5.3 In the absence of the Chairperson, the members of the and Senior Management in the context of the
Committee present at the meeting shall choose one Company’s performance from business and compliance
amongst them to act as Chairperson. perspective;
5.4 Chairperson of the Nomination and Remuneration 10.6 Making recommendations to the Board concerning
Committee meeting could be present at the Annual any matters relating to the continuation in office of
General Meeting or may nominate some other any Director at any time including the suspension or
member to answer the shareholders’ queries.

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Overview Discussion and Analysis Report Reports Statements

termination of service of an Executive Director as an long term performance objectives appropriate to the
employee of the Company subject to the provision of working of the Company.
the law and their service contract;
11.3 To delegate any of its powers to one or more of its
10.7 Delegating any of its powers to one or more of its members or the Secretary of the Committee.
members or the Secretary of the Committee;
11.4 To consider any other matters as may be requested by
10.8 Recommend any necessary changes to the Board; and the Board.
10.9 Considering any other matters, as may be requested by 11.5 Professional indemnity and liability insurance for
the Board. Directors and senior management.
11. REMUNERATION DUTIES 12. M
 INUTES OF NOMINATION AND REMUNERATION
The duties of the Committee in relation to remuneration COMMITTEE MEETING
matters include: Proceedings of all meetings must be minuted and signed
by the Chairman of the Committee at the subsequent
11.1 To consider and determine the Remuneration Policy,
meeting. Minutes of the Committee meetings will be
based on the performance and also bearing in mind
tabled at the subsequent Board and Committee meeting.
that the remuneration is reasonable and sufficient to
attract, retain and motivate members of the Board 13. REVIEW & AMENDMENT:
and such other factors as the Committee shall deem The Policy shall be reviewed as and when required
appropriate all elements of the remuneration of the to ensure that it meets the objectives of the relevant
members of the Board. legislation and remains effective. The Executive Committee
11.2 To ensure the remuneration maintains a balance has the right to change/amend the policy as may be
between fixed and incentive pay reflecting short and expedient taking into account the law for the time being in
force.

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

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, 2024, 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 ended on that date, and notes to the financial statements, including a summary of
material accounting policies and other explanatory information, and 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 and other accounting
principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, 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 (“SAs”) 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 recognises 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) and 31 to the Standalone Financial Statements
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, amongst
others:
• 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.

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Auditor’s Report

Revenue recognition – accounting for construction contracts

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 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), 11
and 16 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, 2024 and the date when the financial
statements are approved by the Company’s Board of Directors included the following amongst others:
• We tested the design, implementation and operating effectiveness of internal 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, 2024 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, 2024 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.

Impairment of Investment in a Subsidiary

Key audit matter As at March 31, 2024, the Company held investment with a carrying amount of ¢ 7412.99 crore (excluding
description investment of ¢ 436.36 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, 2024. 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) and 5 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:
• 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;

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Impairment of Investment in a Subsidiary

• 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 sensitivity analysis of 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 Board of Directors of the Company is responsible for the 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 & Sustainability
Report, Corporate Governance and Shareholder’s Information, but does not include the Standalone Financial Statements and our auditor’s
report thereon.
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.
Responsibilities of Management and Those Charged with Governance 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 accounting principles
generally accepted in India, including Ind AS specified under section 133 of the Act. 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 and Board of Directors 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 the Board of Directors 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.
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 with reference to Standalone Financial Statements 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.

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• 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 or business activities included in the Standalone Financial Statements of which we are the
independent auditors. For the other entities or business activities 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 financial controls 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 30 joint operations included in the Standalone Financial Statements of the company whose
financial information reflects total assets of ¢ 3509.61 crore as at March 31, 2024, total revenues of ¢ 4434.70 crore and net cash
flows of ¢ (377.92) crore for the year ended March 31, 2024, 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 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 reports of such other auditors and the procedures performed by us as stated under Auditor’s Responsibilities section
above.
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.
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 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 companies 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, 2024 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2024 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 with reference to Standalone Financial Statements 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 with reference to Standalone
Financial Statements.
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
(Refer Note No 29 to the Standalone Financial Statements);

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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 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 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 and the
interim dividend declared and paid by the Company during the 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.
vi. Based on our examination which included test checks, the Company has used accounting software(s) for maintaining its books
of account for the financial year ended March 31, 2024, which have a feature of recording audit trail (edit log) facility and the
same has operated throughout the year for all relevant transactions recorded in the software(s). Further, during the course of
our audit, we did not come across any instance of audit trail feature being tampered with.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11(g)
of Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record
retention is not applicable for the financial year ended March 31, 2024.
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)
Rupen K. Bhatt
Partner
(Membership No. 046930)
UDIN: 24046930BKEZVP9659
Place: Mumbai
Date: May 08, 2024

385
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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 with reference to Standalone Financial Statements under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 (the “Act”)
We have audited the internal financial controls with reference to Standalone Financial Statements of Larsen and Toubro Limited (the
“Company”) as of March 31, 2024 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 with reference to Standalone Financial Statements 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 with reference to Standalone Financial
Statements based on the internal control with reference to Standalone Financial Statements 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 with reference to Standalone Financial Statements 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 with reference to Standalone Financial Statements. 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
with reference to Standalone Financial Statements 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 with reference to
Standalone Financial Statements and their operating effectiveness. Our audit of internal financial controls with reference to Standalone
Financial Statements included obtaining an understanding of internal financial controls with reference to Standalone Financial Statements,
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 with reference to Standalone Financial Statements.

Meaning of Internal Financial Controls with reference to Standalone Financial Statements

A company’s internal financial control with reference to Standalone Financial Statements 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 with reference to Standalone Financial Statements 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 with reference to Standalone Financial Statements
Because of the inherent limitations of internal financial controls with reference to Standalone Financial Statements, 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 with reference to Standalone Financial Statements to future periods are subject
to the risk that the internal financial control with reference to Standalone Financial Statements may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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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 on internal financial controls with reference to Standalone Financial Statements of the joint operation referred to in
the Other Matters paragraph below, the Company has, in all material respects, an adequate internal financial controls with reference to
Standalone Financial Statements and such internal financial controls with reference to Standalone Financial Statements were operating
effectively as at March 31, 2024, based on the criteria for internal financial control with reference to Standalone Financial Statements
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.

Other Matters
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with
reference to Standalone Financial Statements 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)

Rupen K. Bhatt
Partner
(Membership No. 046930)
UDIN: 24046930BKEZVP9659

Place: Mumbai
Date: May 08, 2024

387
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Auditor’s 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
Gross Whether Reason for not being
value in the Period held
carrying promoter, held in name of
financial – indicate
Description of value as director Company
statements Held in name of range,
property at March or their
as at March where Also indicate if in
31, 2024 relative or
31, 2024 appropriate dispute
(¢ crore) employee
(¢ crore)
Freehold Land – 1.01 1.01 1. Magan Kuber * No 12 years Land acquired from
Hazira 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, 2024 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
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 ¢ 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.

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(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 during the year and details of which are given below:

R crore
Particulars Loans Guarantees Security
Aggregate amount granted / provided during the year:
Subsidiaries 1013.26 400.00 NIL
Joint Venture NIL NIL NIL
Associates NIL NIL NIL
Others NIL NIL NIL
Balance Outstanding as at balance sheet date in respect of
above cases*
Subsidiaries 623.89 NIL 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:

Name of the entity Nature Amount Due Date Extent of Delay Remarks, if any
in ¢ crore
L&T Special Steel & Principal on Working 1730.38 June 30, 2022 641 days Principal on Working Capital
Heavy Forgings Pvt. Ltd. Capital and Project and Project Funding Loan
Funding Loan remains outstanding as on
March 31, 2024
L&T Special Steel & Interest on Working 168.05 June 30, 2022 641 days Interest on Working Capital
Heavy Forgings Pvt. Ltd. Capital and Project and Project Funding Loan
Funding Loan remains outstanding as on
March 31, 2024
Refer to Note No. 63(a)(ii) to the Standalone Financial Statements.
(d) In respect of following loans granted by the Company, which have been overdue for more than 90 days at the balance sheet date,
as explained to us, the Management has taken reasonable steps for recovery of the principal and interest.

R crore

No. of Principal amount Interest

Total overdue Remarks, if any
cases. overdue overdue
1. 1730.38 341.15 2071.53 Principal and Interest on Working Capital and Project
Funding Loan remains outstanding as on March 31, 2024

Refer to Note No. 63(a)(ii) to the Standalone Financial Statements.

389
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(e) During the year loans aggregating to ¢ 303.50 crore fell due has 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
L&T Sapura Shipping Private Limited (Bridge Loan) 126.56 12.49%
due on September 30, 2023 extended upto March
31, 2024 (USD 15,240,000)*
L&T Sapura Shipping Private Limited (Shareholder’s 176.94 17.46%
Loan) due on December 31, 2023 extended upto
December 31, 2024 (USD 21,260,000)
*The same has been repaid before the due date.
Refer to Note No. 63(a)(i) 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.

(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, 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, cess and other material statutory dues in arrears as at
March 31, 2024 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, 2024 on account of
disputes are given below:
R crore
Name of Statute Nature of Dues Forum where Dispute is Period to which Amount Amount
Pending amount relates Involved Unpaid
Goods and Services Dispute of questions of law, Classification Appellate authority 2017-18 to 2020-21, 40.98 31.31
Tax Act, 2017 dispute, Tax levied on goods-in-transit, 2022-24
labour charges & disallowance of input tax
credit on deemed export sales
Disallowance of input tax credits, credits Commissioner (Appeals) 2017-23 248.96 234.30
claimed in Tran-1, Mismatch of Return,
GST rate dispute and other matters
Disallowance of input tax credits, credits Assistant Joint Commissioner/ 2017-23 137.96 128.23
claimed in Tran-1, Mismatch of Return, Assistant Commissioner/
GST rate dispute and other matters Deputy Commissioner/ Joint
Commissioner
The Central Excise Dispute regarding question of law, Supreme Court of India 1999-00, 2011-12 to 10.89 –
Act, 1944, Service Tax Disallowance of CENVAT credit, short 2015-16
under Finance Act, payment of service tax, Valuation
1994 and Customs disputes, dispute regarding classification
Act, 1962 of services/goods, disallowances of excise
duty exemption, Non-Maintenance of
Separate Books of Accounts, Export rebate
disallowance, and other matters.

390 Integrated Annual Report 2023-24

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R crore
Name of Statute Nature of Dues Forum where Dispute is Period to which Amount Amount
Pending amount relates Involved Unpaid
The Central Excise Dispute regarding question of law, High Court 2008-09 to 2011-12, 50.01 11.00
Act, 1944, Service Tax Disallowance of CENVAT credit, short 2017-18
under Finance Act, payment of service tax, Valuation
1994 and Customs disputes, dispute regarding classification
Act, 1962 of services/goods, disallowances of excise
duty exemption, Non-Maintenance of
Separate Books of Accounts, Export rebate
disallowance, and other matters.
Dispute regarding question of law, CESTAT/ Department 2002-09, 2011-20 1485.01 1406.85
Disallowance of CENVAT credit, short
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, Service tax demand import
of service for GDR, and other matters.
Dispute regarding question of law, Additional Commissioner 2006-10, 2013-18, 137.63 136.54
Disallowance of CENVAT credit, short Appeal, Appellate DC, 2021-22
payment of service tax, Valuation Commissioner Appeals, Deputy
disputes, dispute regarding classification Commissioner Appeals, Deputy
of services/goods, disallowances of excise Commissioner
duty exemption, Non-Maintenance of
Separate Books of Accounts, Export rebate
disallowance, and other matters.
Differential Custom Duty DGFT 2016-17, 2021-22 1.05 0.79
The Central Sales Tax Dispute regarding questions of law, Supreme Court of India 2006-18 720.74 699.74
Act, Entry tax, Local classification dispute, sales in transit, high
Sales Tax Act, Works sea sales, non-submission of C forms & E1
Contract Tax Act and forms, disallowance of ITC, valuation of
Goods & Services goods and other matters
Tax Act Dispute regarding questions of law, High Court 1986-99, 1999-01, 180.51 164.81
classification dispute, sales in transit, high 1999-2016, 2000-16
sea sales, non-submission of C forms &
E1 forms, disallowance of ITC, valuation
of goods,
Non submission of Forms, inter-state sale
turnover, Rate of tax of declared goods,
Labour & service charges disallowed,
Disallowance of exemptions claimed for
imports & Sales in transit, Road permit
issue and other matter
Dispute regarding questions of law, Appellate Board 2008-15 0.21 0.21
classification dispute, sales in transit, high
sea sales, non-submission of C forms & E1
forms, disallowance of ITC, valuation of
goods and other matters
Dispute regarding questions of law, sales Sales Tax/VAT Tribunal 1991-2018, 717.64 556.44
in transit, high sea sales, non-submission 1994-99, 2003-16
of C forms & E1 forms, disallowance of
ITC, valuation of goods, non submission
of Forms, classification disputes,
inter-state sale turnover, Rate of tax of
declared goods, Labour & service charges
disallowed, Disallowance of exemptions
claimed for imports & Sales in transit,
Road permit issue and other matter

391
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R crore
Name of Statute Nature of Dues Forum where Dispute is Period to which Amount Amount
Pending amount relates Involved Unpaid
The Central Sales TaxDispute regarding questions of law, sales Joint commissioner Appeals/ 1989-00, 2001-18 3316.95 3124.99
Act, Entry tax, Localin transit, high sea sales, non-submission Additional Commissioner
Sales Tax Act, Works of C forms & E1 forms, disallowance of Appeals/ Deputy Commissioner
Contract Tax Act and ITC, valuation of goods, non submission Appeals/Assistant Commissioner
Goods & Services of Forms, classification disputes, Appeals/ Commissioner Appeals
Tax Act inter-state sale turnover, Rate of tax of
declared goods, Labour & service charges
disallowed, Disallowance of exemptions
claimed for imports, Road permit issue and
other matter
Dispute regarding question of law, Assistant Commissioner/ 2006-09, 2010-17, 113.28 98.37
Disallowance of CENVAT credit, short Deputy Commissioner/ 2015-16
payment of service tax, Valuation Additional Commissioner/ Joint
disputes, dispute regarding classification Commissioner/ Commissioner/
of services/goods, disallowances of excise Assessing Officer
duty exemption, Non-Maintenance of
Separate Books of Accounts, Export rebate
disallowance, sales in transit, high sea
sales, non-submission of C forms & E1
forms, disallowance of ITC, valuation of
goods, and other matters
Dispute regarding questions of law, CAG 2015-16 1.10 1.10
classification dispute, sales in transit, high
sea sales, non-submission of C forms & E1
forms, disallowance of ITC, valuation of
goods and other matters
Dispute regarding questions of law, Special Objection Hearing 2012-13 0.05 0.05
classification dispute, sales in transit, high Authority
sea sales, non-submission of C forms & E1
forms, disallowance of ITC, valuation of
goods and other matters
Income Tax Act, 1961 Demands arising out of Regular Income Tax Appellate Tribunal 2009-10, 2011-12, 719.64 152.81
Assessment/ Reassessment (ITAT) 2012-13, 2019-20
Demands arising out of Regular CIT(A) 2011-12, 2014-15 to 3119.35 2409.78
Assessment/ Reassessment 2021-22
Demand arising out of order under section
201(1)/201(1A) of the Income Tax Act
(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 willful 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.

392 Integrated Annual Report 2023-24

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

(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 paragraph (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 3(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.

(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)
Rupen K. Bhatt
Partner
(Membership No. 046930)
UDIN: 24046930BKEZVP9659
Place: Mumbai
Date: May 08, 2024

393
 Standalone
Balance Sheet

Standalone Balance Sheet as at March 31, 2024

v crore
Particulars Note As at 31-3-2024 As at 31-3-2023
ASSETS:
Non-current assets
Property, plant and equipment 2 9203.17 8570.70
Capital work-in-progress 2 1397.04 1938.38
Investment property 3 1161.26 568.57
Goodwill 47.29 47.29
Other Intangible assets 4 152.33 146.81
Intangible assets under development 4 26.63 16.39
Right-of-use assets 54(b) 475.61 422.59
Financial assets:
Investments 5 30728.77 27036.97
Loans 6 579.06 3306.81
Other financial assets 7 596.84 407.22
31904.67 30751.00
Deferred tax assets (net) 44(d) 1587.12 1539.14
Current tax receivable (net) 3241.03 2290.16
Other non-current assets 8 1417.29 1592.87
Sub-total - Non-current assets 50613.44 47883.90
Current assets
Inventories 9 3520.97 3428.56
Financials assets
Investments 10 16813.34 20224.29
Trade receivables 11 36961.55 33152.58
Cash and cash equivalents 12 3939.21 3802.49
Other bank balances 13 829.98 767.15
Loans 14 63.04 168.29
Other financial assets 15 4267.01 3527.90
62874.13 61642.70
Other current assets 16 57096.24 57128.31
Sub-total - Current assets 123491.34 122199.57
Group(s) of assets classified as held for sale 39 1177.91 2341.02
TOTAL ASSETS 175282.69 172424.49

394 Integrated Annual Report 2023-24

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

Standalone Balance Sheet as at March 31, 2024 (contd.)

v crore
Particulars Note As at 31-3-2024 As at 31-3-2023
EQUITY AND LIABILITIES:
Equity
Equity share capital 17 274.93 281.10
Other equity 18 64141.11 71246.85
Total equity 64416.04 71527.95
Liabilities
Non- current liabilities
Financial liabilities
Borrowings 19 11931.14 9390.85
Lease liability 112.25 50.12
Other financial liabilities 20 75.81 108.41
12119.20 9549.38
Provisions 21 697.73 636.97
Other non-current liabilities 22 22.67 7.05
Sub-total - Non-current liabilities 12839.60 10193.40
Current liabilities
Financial liabilities:
Borrowings 23 4864.65 3179.36
Current maturities of long-term borrowings 24 5744.68 5580.88
Lease liability 158.89 137.32
Trade payables: 25
Due to micro enterprises and small enterprises 871.22 751.71
Due to others 39975.11 41028.66
Other financial liabilities 26 4071.50 4117.92
55686.05 54795.85
Other current liabilities 27 39383.81 32277.37
Provisions 28 1651.57 1832.37
Current tax liabilities (net) 1305.62 799.07
Sub-total - Current liabilities 98027.05 89704.66
Liabilities associated with the group(s) of assets classified as held for sale – 998.48
TOTAL LIABILITIES 110866.65 100896.54
TOTAL EQUITY AND LIABILITIES 175282.69 172424.49
CONTINGENT LIABILITIES 29
COMMITMENTS (capital and others) 30
NOTES FORMING PART OF THE FINANCIAL STATEMENTS 1 to 64

In terms of our report attached

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants S. N. SUBRAHMANYAN
Firm’s Registration No.117366W/W-100018 Chairman & Managing Director
by the hand of (DIN 02255382)

RUPEN K. BHATT
Partner R. SHANKAR RAMAN P. R. RAMESH
Membership No. 046930 Whole - time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 01915274)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939
Mumbai, May 8, 2024

395
 Standalone Statement of
Profit and Loss

Standalone Statement of Profit and Loss for the year ended March 31, 2024
v crore
Particulars Note 2023-24 2022-23
INCOME:
Revenue from operations 31 126235.85 110500.98
Other income (net) 32 5340.60 4034.95
Total Income 131576.45 114535.93
EXPENSES:
Manufacturing ,construction and operating expenses 33
Cost of raw materials components consumed 11621.48 13163.05
Construction materials consumed 43031.68 38098.69
Purchase of stock-in-trade 1078.54 1076.29
Stores, spares and tools consumed 3613.78 4260.17
Sub-contracting charges 30750.87 24353.62
Changes in inventories of finished goods, stock-in-trade and work-in-progress 411.83 (2930.73)
Other manufacturing, construction and operating expenses 13724.86 12373.24
104233.04 90394.33
Employee benefits expense 34 8864.41 8298.22
Sales, administration and other expenses 35 3453.84 2513.81
Finance costs 36 2405.83 2125.23
Depreciation, amortisation, impairment and obsolescence 37 1751.01 1371.64
Total Expenses 120708.13 104703.23
Profit before exceptional items and tax 10868.32 9832.70
Exceptional items before tax (net) [gain/(loss)] 59 586.47 –
Tax expense on exceptional items:
Current tax 44(a) 20.83 –
Deferred tax 44(a) 117.65 –
Total tax expense on exceptional items 138.48 –
Exceptional items (net of tax) 447.99 –
Profit before tax 11316.31 9832.70
Tax expenses:
Current tax 44(a) 2205.00 2334.76
Deferred tax 44(a) (193.02) (351.03)
Total tax expenses 2011.98 1983.73
Net profit after tax 9304.33 7848.97
Other comprehensive income
A Items that will not be reclassified to Profit or Loss:
Gain /(loss) on remeasurement of the defined benefits plan 13.94 (33.90)
Income tax (expenses)/income on remeasurments of the defined benefits plan (3.51) 8.53
10.43 (25.37)
Carried forward - Other comprehensive income 10.43 (25.37)

396 Integrated Annual Report 2023-24

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

Standalone Statement of Profit and Loss for the year ended March 31, 2024 (contd.)
v crore
Particulars Note 2023-24 2022-23
Brought forward - Other comprehensive income 10.43 (25.37)
B Items that will be reclassified to Profit and Loss:
Debt instruments through Other comprehensive income 171.92 (381.13)
Income tax (expenses)/income on debt instruments through Other
comprehensive income (39.34) 87.20
132.58 (293.93)
Exchange differences in translating the financial statements of foreign
operations (6.93) (14.12)
Income tax (expenses)/income on exchange differences in
translating the financial statements of foreign operations 1.74 3.55
(5.19) (10.57)
Effective portion of gains/(losses) on hedging instruments in a cash flow hedge (234.42) (132.89)
Income tax (expenses)/income on effective portion of
gains/(losses) on hedging instruments in a cash flow hedge 50.26 10.30
(184.16) (122.59)
Cost of hedging reserve 0.12 (0.06)
Income tax (expenses)/income on cost of hedging reserve (0.03) 0.02
0.09 (0.04)
Other comprehensive income for the year (net of tax) (46.25) (452.50)
Total comprehensive income for the year 9258.08 7396.47
Earnings per share (EPS) of ¢ 2 each:
Basic earnings per equity share (¢) 49 66.95 55.85
Diluted earnings per equity share (¢) 49 66.89 55.81
Face value per equity share (¢) 2.00 2.00
NOTES FORMING PART OF THE FINANCIAL STATEMENTS 1 to 64

In terms of our report attached

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants S. N. SUBRAHMANYAN
Firm’s Registration No.117366W/W-100018 Chairman & Managing Director
by the hand of (DIN 02255382)

RUPEN K. BHATT
Partner R. SHANKAR RAMAN P. R. RAMESH
Membership No. 046930 Whole - time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 01915274)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939
Mumbai, May 8, 2024

397
 Standalone Statement of
changes in Equity

Standalone Statement of Changes in Equity for the year ended March 31, 2024
A. Equity share capital
2023-24 2022-23
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 1,40,54,82,190 281.10 1,40,50,29,123 281.01
Add: Shares issued on exercise of employee stock options during the year 4,36,429 0.08 4,53,067 0.09
Less: Shares extinguished on buy-back 3,12,50,000 6.25 – –
Issued, subscribed and fully paid up equity shares outstanding at the end of the year 1,37,46,68,619 274.93 1,40,54,82,190 281.10

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 1-4-2022 10.84 (25.77) 260.00 8718.74 89.38 138.65 26079.43 31131.14 (10.90) 278.51 163.02 66833.04
Profit for the year (a) – – – – – – – 7848.97 – – – 7848.97
Other comprehensive income (b) – – – – – – – (25.37) (10.57) (122.63) (293.93) (452.50)
Total comprehensive income for the year (a+b) – – – – – – – 7823.60 (10.57) (122.63) (293.93) 7396.47
Issue of equity shares on exercise of employee share
options – – – 10.22 – – – – – – – 10.22
Transfer on account of exercise of employee share options – – – 41.23 (41.23) – – – – – – -
Transfer to non- financial assets/liability – – – – – – – – – 68.13 – 68.13
Transfer from/to general reserve/retained earnings during
the year – – – – (3.94) (118.23) 122.17 – – – – -
Employee share options (net) – – – – 30.41 – – – – – – 30.41
Dividend paid for previous year – – – – – – – (3091.42) – – – (3091.42)
Balance as at 31-3-2023 10.84 (25.77) 260.00 8770.19 74.62 20.42 26201.60 35863.32 (21.47) 224.01 (130.91) 71246.85

398 Integrated Annual Report 2023-24

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

Standalone Statement of Changes in Equity for the year ended March 31, 2024 (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 1-4-2023 10.84 (25.77) 260.00 8770.19 74.62 20.42 26201.60 35863.32 (21.47) 224.01 (130.91) 71246.85
Profit for the year (c) – – – – – – – 9304.33 – – – 9304.33
Other comprehensive income (d) – – – – – – – 10.43 (5.19) (184.07) 132.58 (46.25)
Total comprehensive income for the year (c+d) – – – – – – – 9314.76 (5.19) (184.07) 132.58 9258.08
Buyback of equity shares – – – (8770.19) – – (1223.56) – – – – (9993.75)
Tax on Buyback of equity shares – – – – – – (2253.33) – – – – (2253.33)
Expenses for Buyback of equity shares (net of tax) – – – – – – (26.55) – – – – (26.55)
Amount transferred to capital redemption reserve upon
Buyback – – 6.25 – – – (6.25) – – – – -
Issue of equity shares on exercise of employee share
options – – – 9.56 – – – – – – – 9.56
Transfer on account of exercise of employee share options – – – 41.00 (41.00) – – – – – – -
Transfer to non- financial assets/liability – – – – – – – – – 22.27 22.27
Transfer from/to general reserve/retained earnings during
the year – – – – (2.86) (20.42) 23.28 – – – – –
Employee share options (net) – – – – 94.93 – – – – – – 94.93
Special dividend paid during the year – – – – – – – (843.39) – – – (843.39)
Dividend paid for previous year – – – – – – – (3373.56) – – – (3373.56)
Balance as at 31-03-2024 10.84 (25.77) 266.25 50.56 125.69 – 22715.19 40961.13 (26.66) 62.21 1.67 64141.11

In terms of our report attached

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants S. N. SUBRAHMANYAN
Firm’s Registration No.117366W/W-100018 Chairman & Managing Director
by the hand of (DIN 02255382)

RUPEN K. BHATT
Partner R. SHANKAR RAMAN P. R. RAMESH
Membership No. 046930 Whole - time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 01915274)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939
Mumbai, May 8, 2024

399
 Standalone Statement of
Cash Flows

Standalone Statement of Cash Flows for the year ended March 31, 2024
v crore
Particulars 2023-24 2022-23
A. Cash flow from operating activities:
Profit before tax (excluding exceptional items) 10868.32 9832.70
Adjustments for:
Dividend received (2655.67) (1713.39)
Depreciation, amortisation, impairment and obsolescence 1751.01 1371.64
Exchange difference on items grouped under financing/investing activities (43.23) (12.70)
Effect of exchange rate changes on cash and cash equivalents (2.06) 7.92
Finance costs 2405.83 2125.23
Interest income (1648.20) (1612.25)
(Profit)/loss on sale of Property, plant and equipment, Investment property and Intangible assets (net) (58.67) (130.65)
(Profit)/loss on sale of investments (net) [including fair valuation] (284.78) (160.17)
Reversal of provision with respect to loans given to subsidiary companies (70.24) (891.86)
Loss on cancellation of equity shares on capital reduction by subsidiary – 602.95
Employee stock option-discount forming part of employee benefits expense 91.25 28.16
Other adjustments 0.42 –
Operating profit before working capital changes 10353.98 9447.58
Adjustments for:
(Increase)/decrease in trade and other receivables (5434.80) (143.75)
(Increase)/decrease in inventories (74.95) (290.99)
Increase/(decrease) in trade payables and customer advances 6078.46 581.62
Cash (used in)/generated from operations 10922.69 9594.46
Direct taxes paid [net] (2629.14) (2330.50)
Net cash (used in)/from operating activities 8293.55 7263.96
B. Cash flow from investing activities:
Purchase of Property, plant and equipment, Investment property and Intangible assets (2916.46) (2396.90)
Sale of Property, plant and equipment, Investment property and Intangible assets 94.55 161.18
Investment in subsidiaries, associates and joint venture companies (3719.66) (1447.02)
Divestment of stake/capital reduction in subsidiary companies 186.67 522.95
Purchase of non-current investments – (84.17)
Sale of non-current investments 34.23 46.36
Net proceeds from transfer of business undertaking 800.00 98.18
Net payments for transfer of discontinued operations (net of tax) – (113.19)
(Purchase)/sale of current investments (net) 4757.26 (2845.35)
Change in other bank balances and cash not availabe for immediate use (146.31) (21.01)
Long term deposits/Loans (given) - subsidiaries, associates, joint venture companies and third parties (110.21) (296.10)
Long term deposits/loans repaid - subsidiaries, associates, joint venture companies and third parties 2499.27 1573.03
Short term deposits/loans (given)/repaid (net) - subsidiaries, associates, joint venture companies and third 192.71 14.07
parties
Interest received 2034.17 1321.86
Dividend received from subsidiaries and joint venture companies 2649.30 1712.43
Dividend received from other investments 6.37 0.97
Net cash (used in)/from investing activities 6361.89 (1752.71)

400 Integrated Annual Report 2023-24

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

Standalone Statement of Cash Flows for the year ended March 31, 2024 (contd.)
v crore
Particulars 2023-24 2022-23
C. Cash flow from financing activities:
Proceeds from fresh issue of share capital (including share application money)[net] 9.65 10.31
Proceeds from non-current borrowings 7450.00 2450.00
Repayment of non-current borrowings (4845.00) (5549.00)
(Repayments)/proceeds from other borrowings (net) 1676.96 1078.98
Settlement of derivative contracts related to borrowings 49.65 87.93
Interest paid on Lease Liability (17.56) (12.02)
Principal repayment on Lease Liability (98.70) (95.18)
Dividends paid (4216.95) (3091.42)
Buyback of equity shares (10000.00) –
Tax on buyback of equity shares (2253.33) –
Expenses for buyback of equity shares (net of tax) (26.55) –
Interest paid (including cash flows from interest rate swaps) (2250.23) (2320.99)
Net cash (used in)/from financing activities (14522.06) (7441.39)
Net (decrease)/increase in cash and cash equivalents (A + B + C) 133.38 (1930.14)
Cash and cash equivalents at beginning of the year 3802.49 5718.23
Effect of exchange rate changes on cash and cash equivalents 3.34 14.41
Cash and cash equivalents classified as asset held for sale – (0.01)
Cash and cash equivalents at end of the year 3939.21 3802.49

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. Property, plant and equipment, Investment property and Intangible assets are 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 Chairman & Managing Director
by the hand of (DIN 02255382)

RUPEN K. BHATT
Partner R. SHANKAR RAMAN P. R. RAMESH
Membership No. 046930 Whole - time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 01915274)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939
Mumbai, May 8, 2024

401
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone 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)
Material Accounting Policy Information
(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 8, 2024.

(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 Ind AS 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.

402 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [1](ii)
Material Accounting Policy Information (contd.)
For performance obligation satisfied over time, the revenue recognition is done using input method 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 as it best depicts the transfer of control that occurs as costs are
incurred.

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

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Notes forming part of the Standalone Financial Statements (contd.)

NOTE [1](ii)
Material Accounting Policy Information (contd.)
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. With
respect to contracts, where the outcome of the performance obligation cannot be reasonably measured, but the costs
incurred towards satisfaction of performance obligation are expected to be recovered, the revenue is recognised only to
the extent of costs incurred.

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 “Unbilled revenue”.
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 “Excess of billing over
revenue”. 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 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.

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) above.

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 export is done or 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.

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [1](ii)
Material Accounting Policy Information (contd.)
(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.

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 below).

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 Companies Act, 2013, 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 Property, Plant and Equipment vide 1(ii)(g) above.

(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;

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Notes forming part of the Standalone Financial Statements (contd.)

NOTE [1](ii)
Material Accounting Policy Information (contd.)
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.

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, intangible assets and investments in subsidiary, associate and joint
venture companies are tested for impairment so as to determine the impairment loss, if any. Goodwill is 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 of disposal 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 of disposal 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 (post-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 recognised earlier is subject to full or partial reversal, the carrying amount of the asset (or cash generating
unit), except impairment loss allocated to goodwill, 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 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.

(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.

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [1](ii)
Material Accounting Policy Information (contd.)
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 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) Other long-term employee benefits:

The obligation recognised in respect of other long-term benefits 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)
above.

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 cost 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

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Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [1](ii)
Material Accounting Policy Information (contd.)
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.

In case of sale and leaseback transactions, the Company first considers whether the initial transfer of the underlying asset to the buyer-
lessor is a sale by applying the requirements of Ind AS 115. If the transfer qualifies as a sale and the transaction is at market terms, the
Company effectively derecognises the asset, recognises a ROU asset (and lease liability) and recognises in Statement of Profit and Loss,
the gain or loss relating to the buyer-lessor’s rights in the underlying asset.(Also refer to policy on Property, Plant and Equipment vide 1(ii)
(g), above).

(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 fair value excepting for
trade receivables not containing a significant financing component are initially measured at transaction price. 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.

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [1](ii)
Material Accounting Policy Information (contd.)
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.

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.

409
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Notes forming part of the Standalone Financial Statements (contd.)

NOTE [1](ii)
Material Accounting Policy Information (contd.)
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 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.

410 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [1](ii)
Material Accounting Policy Information (contd.)
(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
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.

411
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [1](ii)
Material Accounting Policy Information (contd.)
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.

iv) Income not allocable to segments is included in “Unallocable corporate income net of expenditure”.

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 net of expenditure”.

vii) Segment results are not 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 also includes the fair value of the employee stock options which is
accounted as employee compensation cost [Note 1(ii)(r) above] 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.

412 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [1](ii)
Material Accounting Policy Information (contd.)
(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.
Contingent liability is disclosed in case of:

(i) a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of
one or more uncertain future events not wholly within the control of the entity; or

(ii) a present obligation arising from past events where:

• it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

• the amount of the obligation cannot be measured with sufficient reliability.

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.

413
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [1](ii)
Material Accounting Policy Information (contd.)
(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;

(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) Earnings per share

Basic earnings per share is computed using the net profit or loss after tax and weighted average number of shares outstanding during
the year.

Diluted earnings per share is computed using the net profit or loss after tax and weighted average number of equity and potential equity
shares outstanding during the year, except where the result would be anti-dilutive.

(ab) 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.

414 Integrated Annual Report 2023-24

 Notes forming part of the Standalone Financial Statements (contd.)
NOTE [2]
Property, Plant and Equipment & Capital work-in-progress
v crore
Cost/Valuation Depreciation Impairment Book value
Foreign Foreign
Class of assets As at As at Up to For the Up to As at As at
Additions Transfer * currency Deductions Transfer * currency Deductions
1-4-2023 31-3-2024 31-3-2023 year 31-3-2024 31-3-2024 31-3-2024
fluctuation fluctuation
Land
Freehold 556.11 0.71 (33.10) – 0.01 523.71 – – – – – – – 523.71
Leasehold 143.95 – (0.81) – – 143.14 12.86 1.59 (0.09) – – 14.36 – 128.78
Sub-total 700.06 0.71 (33.91) – 0.01 666.85 12.86 1.59 (0.09) – – 14.36 – 652.49
Buildings 3335.56 252.95 1.18 0.20 4.36 3585.53 762.25 108.39 0.62 0.20 2.59 868.87 87.35 2629.31
Plant and equipment
Owned 9194.36 1789.09 – 0.63 192.03 10792.05 5040.61 1228.24 – 0.62 160.82 6108.65 13.26 4670.14
Leased out 162.72 – – – 151.06 11.66 162.55 – – – 150.89 11.66 – –
Sub-total 9357.08 1789.09 – 0.63 343.09 10803.71 5203.16 1228.24 – 0.62 311.71 6120.31 13.26 4670.14
Overview
Corporate

Computers 595.30 87.13 – 0.03 23.59 658.87 458.99 63.86 – 0.03 22.65 500.23 – 158.64
Office equipment 309.12 30.29 – 0.15 8.04 331.52 239.44 31.81 – 0.15 7.62 263.78 – 67.74
Furniture and fixtures 160.73 10.36 – 0.02 4.22 166.89 114.54 13.15 – 0.02 2.99 124.72 0.06 42.11
Vehicles 259.46 31.28 – 0.12 24.19 266.67 155.87 27.37 – 0.12 19.46 163.90 – 102.77
Other assets
Ships 286.37 37.14 – – – 323.51 92.12 21.31 – – – 113.43 – 210.08
Management

Dredged Channel 679.69 – – – – 679.69 296.37 29.54 – – – 325.91 – 353.78

Breakwater Structures 226.00 – – – – 226.00 41.46 5.01 – – – 46.47 – 179.53
Aircraft 195.22 – – – – 195.22 58.34 10.48 – – – 68.82 – 126.40
Discussion and Analysis

Leasehold Improvements 4.75 8.06 – – – 12.81 0.62 2.01 – – – 2.63 – 10.18

Sub-total 1392.03 45.20 – – – 1437.23 488.91 68.35 – – – 557.26 – 879.97
Total 16109.34 2247.01 (32.73) 1.15 407.50 17917.27 7436.02 1542.76 0.53 1.14 367.02 8613.43 100.67 9203.17
Add: Capital work-in-progress [refer Note 2(g)] 1397.04
Report

10600.21
Integrated

* Transfer (to)/from Investment property

Reports
Statutory
Financial

415
Statements
 Notes forming part of the Standalone Financial Statements (contd.)

416
NOTE [2]
Property, Plant and Equipment & Capital work-in-progress (contd.)

v crore
Cost/Valuation Depreciation Impairment Book value
Foreign Foreign
Class of assets As at Classified as As at Up to For the Classified as Up to As at As at
Additions Transfer * currency Deductions Transfer * currency Deductions
1-4-2022 held for sale 31-3-2023 31-3-2022 year held for sale 31-3-2023 31-3-2023 31-3-2023
fluctuation fluctuation
Land
Freehold 557.48 0.06 – – – 1.43 556.11 – – – – – – – – 556.11
Leasehold 144.01 – (0.06) – – – 143.95 11.16 1.70 – – – – 12.86 – 131.09
Sub-total 701.49 0.06 (0.06) – – 1.43 700.06 11.16 1.70 – – – – 12.86 – 687.20
Buildings 3261.43 63.42 22.16 1.23 1.79 10.89 3335.56 657.02 106.67 2.86 1.23 0.04 5.49 762.25 87.35 2485.96
Plant and equipment
Owned 7703.76 1643.30 (4.08) 6.14 2.40 152.36 9194.36 4292.34 890.18 (1.65) 6.12 0.56 145.82 5040.61 15.02 4138.73
Leased out 162.72 – – – – – 162.72 160.68 1.87 – – – – 162.55 – 0.17
Sub-total 7866.48 1643.30 (4.08) 6.14 2.40 152.36 9357.08 4453.02 892.05 (1.65) 6.12 0.56 145.82 5203.16 15.02 4138.90
Computers 541.79 79.68 (0.08) 0.18 6.38 19.89 595.30 417.57 63.09 (0.08) 0.18 2.61 19.16 458.99 – 136.31
Office equipment 289.47 23.65 (0.02) 0.66 2.37 2.27 309.12 210.26 31.00 (0.02) 0.64 1.22 1.22 239.44 0.01 69.67
Furniture and fixtures 153.08 10.45 (0.30) 0.04 0.64 1.90 160.73 103.18 13.36 (0.28) 0.03 0.10 1.65 114.54 0.24 45.95
Vehicles 257.61 37.30 – 0.79 – 36.24 259.46 156.81 27.53 – 0.79 – 29.26 155.87 – 103.59
Other assets
Ships 264.24 22.13 – – – – 286.37 71.02 21.10 – – – – 92.12 – 194.25
Dredged Channel 679.69 – – – – – 679.69 265.82 30.55 – – – – 296.37 383.32
Breakwater Structures 226.00 – – – – – 226.00 36.45 5.01 – – – – 41.46 – 184.54
Aircraft 195.22 – – – – – 195.22 47.86 10.48 – – – – 58.34 136.88
Leasehold
Improvements 4.75 – – – – – 4.75 0.09 0.53 – – – – 0.62 – 4.13
Sub-total 1369.90 22.13 – – – – 1392.03 421.24 67.67 – – – – 488.91 – 903.12
Total 14441.25 1879.99 17.62 9.04 13.58 224.98 16109.34 6430.26 1203.07 0.83 8.99 4.53 202.60 7436.02 102.62 8570.70
Add: Capital work-in-progress [refer Note 2(g)] 1938.38
10509.08

* Transfer (to)/from Investment property

Notes forming part of the
Standalone Financial Statements

Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [2]
Property, Plant and Equipment & Capital work-in-progress (contd.)
a) Additions during the year and capital work-in-progress include ¢ 52.30 crore (previous year: ¢ 19.47 crore) being borrowing cost
capitalised in accordance with Accounting Standard (Ind AS) 23 on "Borrowing Costs".

b) The rate used to determine the amount of borrowing costs eligible for capitalisation is 7.29% (previous year: 6.68%).

c) Owned assets given on operating lease have been presented separately under respective class of assets as “Leased out” pursuant to Ind
AS 116 “Leases”.

d) 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.

e) 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:

Minimum useful life Maximum useful life

Sr. No. Asset class
(in years) (in years)
1. Buildings 3 60
2. Plant and 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 Revised useful life adopted

Sr. No. Category of assets Sub-category of assets Schedule II (in years) based on technical
evaluation (in years)
1. Aircrafts – 20 18
2. Vehicles Motor cars 8 7
A Assets used in Heavy Engineering Business (Hi-Tech Manufacturing segment):

Revised useful life

Useful life as per
Sr. adopted based on
Category of assets Sub-category of assets Schedule II
No. technical evaluation
(in years)
(in 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

417
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [2]
Property, Plant and Equipment & Capital work-in-progress (contd.)
B. Assets used in Shipbuilding Business: (a part of Precision Engineering System under the Hi-Tech Manufacturing segment):

Revised useful life

Useful life as per adopted based on
Asset category
Schedule II (in years) technical evaluation
(in years)
(1) Breakwater structures
(a) Breakwater & Rock bund & Finger Jetties 30* 50
(2) Dredged channel
(a) Ship lift structures, Control system, Chiller units, 15 20
Condition monitoring system, Ship position system,
Ship transfer system, other ship lift related items
(b) Land berth and piled platforms 30* 40
(c) Tower cranes 15 25
(3) Plant and equipment
(a) Rails 15 20
(b) Diesel generator 15 12
(c) Air-Conditioner & refrigeration equipment 15 12
(4) Buildings
(a) Production shops 30 50
(b) Internal roads 5 15
(5) Vehicles - Motor cars 8 7

* Represents licence period as per agreement executed with the Tamil Nadu Maritime Board, renewable on expiry.
C. Assets used in Precision Engineering System (a part of Hi-Tech Manufacturing segment):

Revised useful life

Sr. Useful life as per adopted based on
Category of assets Sub-category of assets
No. Schedule II (in years) technical evaluation
(in years)
1. Buildings Factory buildings 30 15 - 60
Non-Factory buildings 3 – 60 2-60
2. Plant & Equipment General 8-15 3 – 30
Photographic equipment 15 5-8
Laboratory equipment 10 8
Electrical installation 10 10-20
3. Office Equipment 4–5 4 – 15
4. Furniture & Fixture 10 10 – 20
5. Vehicles Motor cars (Including Electrical 8 7-14
vehicle)

418 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [2]
Property, Plant and Equipment & Capital work-in-progress (contd.)
D. Assets used in Infrastructure business:

Useful life as Revised useful life adopted

Sr.
Category of assets Sub-category of assets per Schedule II based on technical
No.
(in years) evaluation (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:

1. Plant and equipment which are project specific and deployed at project sites, with useful life of 15 years as per Schedule
II, are depreciated over the project duration of 2-4 years.

2. Any asset purchased for project site with acquisition value less than ¢ 50000 for above 5 categories of asset, full cost is
depreciated in the same financial year.

E. Assets used in Energy Hydrocarbon business (a part of Energy project segment):

Useful life as per Revised useful life adopted

Category Sub class Schedule II (in based on technical
years) evaluation (in years)
Buildings Office building 60 5-60
Housing colony 50 5-60
Ships 20 15-25
Software Specialised software 6 2-6
Plant and equipment Crane 250 Tonnes 12 20
Jetty construction 12 30
Land development 12 30
Minor Plant & Machinery 12 2-15
Tunnelling and transmission line
10 2-15
Equipments
Cranes < 100 tons & Heavy lift
15 2-15
Equipment
Road making equipment, Crushing
15 2-15
Equipment
Piling, welding and pipeline
15 2-15
Equipment
Earth-moving equipment 15 2-15
Computers Laptop/Desktop 3 3-6
Servers & Storage & Network
6 3-6
switches & Routers
Office equipments Fax/Printers/Scanner (MFD), Desktop
inkjet/LaserJet printers, Switches 4 3-6
audio video & Projectors
Water cooler and other office
5 3-6
equipments
Air-condition and Refrigeration Assets deployed at office and project
12 3-12
site

419
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [2]
Property, Plant and Equipment & Capital work-in-progress (contd.)
Useful life as per Revised useful life adopted
Category Sub class Schedule II (in based on technical
years) evaluation (in years)
Canteen equipments Assets deployed at office and project
8 8
sites
Photographic equipments Assets deployed at office and project
15 3
sites
Laboratory equipments Assets deployed at office and project
15 8-12
sites
Electrical installations HT/LT ELECTRIC SUB-STATION IN
10 6-22
MFF II
Others 10 3-6
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
i) Assets with acquisition value less than ¢ 5000 will be depreciated fully in the financial year of acquisition

ii) P&M & Office Equipment at project sites costing below ¢ 50000 will be depreciated fully in the financial year of
acquisition.

f) Carrying value of Property, plant and equipment hypothecated as collateral for certain borrowings and / or commitments as at March 31,
2024: Nil (as at March 31, 2023 -Nil )

g) Ageing of Capital work-in-progress:

v crore

As at 31-3-2024 As at 31-3-2023
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 854.54 467.43 66.05 9.02 1397.04 1781 .17 113.79 30.84 12.58 1938.38
As on the date of the balance sheet, there are no capital work-in-progress projects whose completion is overdue or has exceeded the
cost, based on approved plan.

h) 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, 2024 which date of Company
2024 their relative or
(¢ crore)
(¢ crore) employee
Freehold Land- 1.01 1.01 Heirs of Magan No 12 years Land acquired from
Hazira West Prema and Magan (Since 2012) farmers through
Kuber* 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 the Company.

420 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [3]
Investment Property
v crore
Cost Depreciation Book Value
Class of assets As at Assets held As at As at For the Assets held As at As at
Additions Transfer * Deductions Transfer * Deductions
1-4-2023 for sale 31-3-2024 31-3-2023 year for sale 31-3-2024 31-3-2024
Land 181.79 – 16.47 – – 198.26 – 0.01 0.09 – – 0.10 198.16
Buildings 483.93 0.87 (1.18) – 0.08 483.54 97.15 17.26 (0.62) – 0.02 113.77 369.77
Total 665.72 0.87 15.29 – 0.08 681.80 97.15 17.27 (0.53) – 0.02 113.87 567.93
Add: Capital work-in-progress [refer Note 3(iii)] 593.33
1161.26

* Transfer (to)/from Property plant & equipment / Inventory

v crore
Cost Depreciation Book
Value
Class of assets
As at Assets held As at As at Assets held As at As at
Additions Transfer * Deductions For the year Transfer * Deductions
1-4-2022 for sale 31-3-2023 31-3-2022 for sale 31-3-2023 31-3-2023
Land 194.05 – (1.11) 11.09 0.06 181.79 – – – – – – 181.79
Buildings 480.86 41.39 (24.35) – 13.97 483.93 85.27 16.81 (3.40) – 1.53 97.15 386.78
Total 674.91 41.39 (25.46) 11.09 14.03 665.72 85.27 16.81 (3.40) – 1.53 97.15 568.57
Add: Capital work-in-progress [refer Note 3(iii)] –
568.57

* Transfer (to)/from Property plant & equipment / Inventory

(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 2023-24 2022-23

1 Rental income derived from investment property 136.68 113.37
2 Direct operating expenses pertaining from investment property that generated rental
income 36.33 30.27
3 Direct operating expenses pertaining from investment property that did not generate
rental income – –

421
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [3]
Investment Property (contd.)
(ii) Details with respect to fair valuation of Investment property:
v crore
Particulars 2023-24 2022-23
Fair valuation by:
(i) independent registered valuers[1] 2788.12 758.30
(ii) independent unregistered valuers[1] 75.00 71.24
(iii) internal architectural department 2181.94 3353.18
Total fair value 5045.06 4182.72
[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.

(iii) Ageing of Capital work-in-progress:

v crore

As at 31-3-2024 As at 31-3-2023
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 356.91 170.82 32.83 32.77 593.33 – – – – –

As on the date of the balance sheet, there are no capital work-in-progress projects whose completion is overdue or has exceeded
the cost, based on approved plan.

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
Additions Deductions For the year Deductions
1-4-2023 31-3-2024 31-3-2023 31-3-2024 31-3-2024
Intangible assets
Specialised software 282.38 21.37 – 303.75 236.99 17.33 – 254.32 49.43
Technical know-how 99.85 35.68 – 135.53 88.04 20.68 – 108.72 26.81
New Product Design and Development 6.26 – – 6.26 6.26 – – 6.26 –
Platforms and Courses 116.86 17.54 – 134.40 27.25 31.06 – 58.31 76.09
Sub-total 505.35 74.59 – 579.94 358.54 69.07 – 427.61 152.33
Add: Intangible assets under development [refer Note 4(c)] 26.63
178.96

v crore
Cost Amortisation Book Value
Class of assets As at As at Up to Up to As at
Additions Deductions For the year Deductions
1-4-2022 31-3-2023 31-3-2022 31-3-2023 31-3-2023
Intangible assets
Specialised software 267.25 17.02 1.89 282.38 223.13 15.46 1.60 236.99 45.39
Technical know-how 99.85 – – 99.85 81.45 6.59 – 88.04 11.81
New Product Design and Development 6.26 – – 6.26 6.26 – – 6.26 –
Platforms and Courses 88.39 28.47 – 116.86 3.62 23.63 – 27.25 89.61
Sub-total 461.75 45.49 1.89 505.35 314.46 45.68 1.60 358.54 146.81
Add: Intangible assets under development [refer Note 4(c)] 16.39
163.20

422 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [4]
Intangible assets & Intangible assets under development (contd.)
(a) Additions during the year
v crore

FY 2023-24 FY 2022-23
Class of assets Internal Acquired Internal Acquired
Total Total
development - external development - external
Specialised software – 21.37 21.37 – 17.02 17.02
Technical know-how – 35.68 35.68 – – –
Platforms and courses 16.22 1.32 17.54 28.47 – 28.47
Total 16.22 58.37 74.59 28.47 17.02 45.49

(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 2 8
2. Technical know-how 5 8
3. Platforms and courses 3 4

(c) Ageing of Capital work-in-progress:

v crore

As at 31-3-2024 As at 31-3-2023
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 21.66 4.97 – – 26.63 15.27 1.12 – – 16.39

As on the date of the balance sheet, there are no capital work-in-progress projects whose completion is overdue or has exceeded the
cost, based on approved plan.

423
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [5]
Non-current Assets: Financial Assets- Investments
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Investment in equity instruments
(a) Subsidiary companies 30021.59 26324.78
(b) Associate companies 4.42 4.42
(c) Joint venture companies 605.92 605.29
(d) Other companies 96.84 102.48
30728.77 27036.97

Details of Non-current Assets: Financial Assets - Investments

Number of units
Particulars Face value As at As at As at
per unit 31-3-2024 31-3-2024 31-3-2023
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 2,65,50,000 26.55 26.55
Kesun Iron & Steel Company Private Limited (previous year ¢ 95,000) 10 – – –
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 (previous year provision: ¢ 0.05 crore) 10 – – –
L&T Finance Limited (quoted) (formerly known as L&T Finance Holdings Limited) 10 1,63,92,30,125 5918.65 5918.65
L&T Metro Rail (Hyderabad) Limited 10 7,41,29,99,999 7412.99 3759.00
L&T Hydrocarbon Saudi Company LLC [¢ 130.39 (previous year: ¢ 130.39)] SAR 1000 1,000 – –
L&T Power Development Limited 10 2,28,96,63,205 2289.66 2289.66
L&T Energy Green Tech Limited 10 5,10,51,164 51.05 0.05
L&T Electromech LLC [¢ 171.70 (previous year: ¢ 171.70)] OMR 1 2,10,000 – –
L&T Realty Developers Limited 10 16,71,60,700 107.72 107.72
L&T Heavy Engineering LLC [¢ 183.89 (previous year: ¢ 183.89] OMR 1 39,65,500 – –
L&T Seawoods Limited 10 1,40,39,79,846 1394.91 1354.55
L&T Modular Fabrication Yard LLC [¢ 171.70 (previous year: ¢ 171.70)] OMR 1 20,19,230 – –
L&T Innovation Campus (Chennai) Limited (merged with L&T Seawoods Limited on
April 1, 2023) 10 – – 40.36
Larsen & Toubro Kuwait Construction General Contracting Company W.L.L. [¢ 66.04
(previous year: ¢ 66.04)] KWD 1000 980 – –
L&T Technology Services Limited (quoted) 2 7,79,86,899 805.25 805.25
LTIMindtree Limited (quoted) 1 20,31,69,279 9675.98 9675.98
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 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 (Divested w.e.f. January 3, 2024) 10 – – 21.85
L&T Network Services Private Limited 10 90,00,000 9.00 9.00
PT Larsen & Toubro IDR 1000000 25,700 16.46 16.46
Corporate Park (Powai) Private Limited 10 20,50,000 2.05 –
Business Park (Powai) Private Limited 10 20,50,000 2.05 –
L&T Energy Hydrocarbon Engineering Limited 10 90,00,000 79.51 79.51
L&T Global Holdings Limited USD 100 80,000 53.16 53.16
L&T Semiconductor Technologies Limited 10 95,50,000 9.55 –
L&T Offshore Private Limited (formerly known as L&T Sapura Offshore Private Limited) 10 10,000 0.01 –
28414.39 24717.58

424 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Standalone 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 31-3-2024 31-3-2024 31-3-2023
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 Realty Developers Limited - 12% Non-cumulative optionally convertible
redeemable at par preference shares, May 26, 2025 10 64,83,00,000 648.30 648.30
1606.55 1606.55
(iii) Other deemed equity investment:
L&T Aviation Services Private Limited 0.65 0.65
0.65 0.65
Total - (a) = (i)+(ii)+(iii) 30021.59 26324.78
(b) Associate companies:
Gujarat Leather Industries Limited [Net of provision ¢ 0.56 crore (previous year provision
¢ 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:
L&T Howden Private Limited 10 1,50,30,000 15.03 15.03
L&T Hydrocarbon Caspian LLC AZM 10 – – 0.36
L&T Sapura Shipping Private Limited 10 9,53,11,850 95.31 95.31
L&T Sapura Offshore Private Limited (Reclassified as subsidiary w.e.f December 27,
2023) 10 – – 0.01
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 Special Steels and Heavy Forgings Private Limited [Net of provision ¢ 419.28
crore (previous year provision ¢ 419.29 crore)] 10 41,92,84,000 – –
L&T-Sargent & Lundy Limited 10 27,82,736 0.82 0.82
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
GH4India Private Limited 10 10,00,000 1.00 –
594.51 593.88
(ii) Other deemed equity investment:
L&T - MHI Power Boilers Private Limited 2.24 2.24
L&T - MHI Power Turbine Generators Private Limited 9.13 9.13
11.37 11.37

425
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

Number of units
Particulars Face value As at As at As at
per unit 31-3-2024 31-3-2024 31-3-2023
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
¢ 78.33 crore (previous year provision ¢ 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
¢ 97.91 crore (previous year provision ¢ 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
¢ 84.41 crore (previous year provision ¢ 84.41 crore)] 10 14,20,80,000 – –
L&T Infrastructure Development Projects Limited -Series 1 Compulsorily Convertible
Preference Shares - January 11, 2033 (Bonus shares) 10 25,500 – –
L&T Infrastructure Development Projects Limited -(Series 2 Compulsorily Convertible
Preference Shares - January 11 2033) (Bonus shares) 10 25,500 – –
L&T Infrastructure Development Projects Limited -(Series 3 Compulsorily Convertible
Preference Shares - January 11, 2033) (Bonus shares) 10 25,500 – –
L&T Infrastructure Development Projects Limited -(Series 4 Compulsorily Convertible
Preference Shares - January 11, 2033) 10 37,000 0.04 0.04
0.04 0.04
Total - (c) = (i)+(ii)+(iii) 605.92 605.29
(d) Other companies:
International Seaport Dredging Limited [Net of provision ¢ 15.90 crore (previous year
provision ¢ 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) [¢ 30,000 (previous
year: ¢ 30,000)] 100 300 – –
Tidel Park Limited 10 40,00,000 86.59 78.69
VP Global Fibre and Yarns Private Limited [¢ 13,600 (previous year: ¢ 17,300)] 100 136 – –
New Vision Wind Power Private Limited [¢ 23,420 (previous year: ¢ 38,560)] 10 2,342 – –
The New India Assurance Company Limited (quoted) 10 4,45,803 10.14 4.34
Kalyan Halol-Shamlaji Tollway Limited [Net of provision ¢ 1000 (previous year provision
¢ 1000)] 10 100 – –
Life Insurance Corporation of India Limited (quoted) 10 – – 19.35
96.84 102.48
Total - (A) =(a)+(b)+(c)+(d) 30728.77 27036.97
(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 ¢ 77.77 crore
(previous year provision ¢ 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 ¢ 79.12 crore
(previous year provision ¢ 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 ¢ 56.28 crore
(previous year provision ¢ 56.28 crore)] 10 14,20,80,000 – –
Total - (B) – –
Total Non Current Investment =(A)+(B) 30728.77 27036.97

Details of quoted/unquoted investments: v crore

Particulars As at 31-3-2024 As at 31-3-2023
(a) Aggregate amount of quoted investments and market value thereof;
Book Value 16417.71 16452.05
Market Value 169041.56 136523.30
(b) Aggregate amount of unquoted investments;
Book Value 14311.06 10584.92
(c) Aggregate amount of Impairment in value of investments 909.56 909.57

426 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [6]
Non-current Assets: Financials Assets - Loans
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Unsecured loan and advances to related parties:
Subsidiary companies, considered good 401.50 3131.38
Subsidiary companies, considered doubtful – 75.60
Less: Allowance for expected credit loss – 75.60
– –
Joint venture companies, considered good 1907.74 1905.11
Less: Allowance for expected credit loss 1730.38 1730.38
177.35 174.73
Unsecured others loans, considered good 0.21 0.71
579.06 3306.81

NOTE [7]
Non current Assets: Financial Assets - Others
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Unsecured security deposits, considered good: 211.58 190.67
Less: Allowance for expected credit loss 33.10 41.68
178.48 148.99
Fixed deposits with banks (maturity more than 12 months) 17.38 -
Cash and bank balances not available for immediate use [refer Note 7(a)] 194.87 128.78
Forward contract receivables 168.83 51.97
Embedded derivative receivables 11.94 27.40
Premium receivable on financial guarantee contracts 24.90 50.03
Other receivables 0.44 0.05
596.84 407.22

Note 7(a)
Particulars of cash and bank balances not available for immediate use
v crore
Sr. As at As at
Particulars
No. 31-3-2024 31-3-2023
1 Amount received (including interest accrued thereon) from customers of property development business –
to be handed over to housing society on its formation. 30.17 28.59
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. 17.76 16.97
3 Other bank balances (including interest accrued thereon) not available for immediate use being security
offered for bids submitted, loans availed, acquisition etc. 563.84 423.06
Total 611.77 468.62
Less: Amount reflected under current assets [refer Note 13] 416.90 339.84
Amount reflected under other financial assets - non-current [refer Note 7] 194.87 128.78

427
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [8]
Other non-current assets
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Capital advances:
Secured 4.21 1.47
Unsecured 44.64 23.58
Advance recoverable other than in cash 1368.44 1567.82
1417.29 1592.87

NOTE [9]
Current Assets: Inventories
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Raw materials [includes goods-in-transit ¢ 10.04 crore (previous year: ¢ 3.82 crore)] 402.09 337.25
Components [includes goods-in-transit ¢ 6.50 crore (previous year: ¢ 8.81 crore)] 220.86 178.98
Construction materials [includes goods-in-transit ¢ 119.58 crore (previous year: ¢ 275.00 crore)] 148.37 310.55
Manufacturing work-in-progress 279.33 267.73
Finished goods [includes goods-in-transit ¢ 0.59 crore (previous year: 0.12)] 0.87 16.77
Stock-in-trade [includes goods-in-transit ¢ 53.45 crore (previous year: ¢ 39.62 crore)] 228.30 364.92
Stores and spares [includes goods-in-transit ¢ 2.56 crore (previous year: ¢ 3.17 crore)] 145.98 164.81
Loose tools 4.70 4.10
Property development related work-in-progress 2032.37 1753.16
Property development project - completed property 58.10 30.29
3520.97 3428.56

Note : During the year ¢ 18.56 crore (previous year: ¢ 2.28 crore) was recognised as expense towards write-down of inventories (net).

NOTE [10]
Current Assets: Financial Assets - investments
v crore
Particulars As at 31-3-2024 As at 31-3-2023
(A) Government and trust securities 4393.72 4115.10
(B) Debentures and bonds
(i) Subsidiary companies 758.90 2038.24
(ii) Joint venture companies 736.26 742.39
(iii) Other debentures & bonds 5307.70 5450.41
6802.86 8231.04
(C) Mutual funds 1499.59 2224.35
(D) Collateral borrowing and lending obligation (CBLO) 199.96 899.67
(E) Commercial paper 195.79 1871.46
(F) Certificate of deposits 1026.85 2080.59
(G) InvITs 2694.57 802.08
16813.34 20224.29

428 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Standalone 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
31-3-2024 31-3-2024 31-3-2023
unit
v v crore v crore
Debentures and Bonds (quoted):
(i) Subsidiary companies:
9.00% L&T Finance Limited NCD April 15, 2024 1,000 153,800 16.72 16.87
7.75% L&T Finance Limited NCD July 10, 2025 10,00,000 1,450 152.70 152.47
7.95% L&T Finance Limited NCD July 28, 2025 10,00,000 1,300 137.30 137.30
7.15% L&T Finance Limited NCD September 16, 2024 10,00,000 – – 102.47
6.75% L&T Finance Limited NCD November 3, 2028 10,00,000 – – 193.10
7.85% L&T Finance Limited NCD July 9, 2025 10,00,000 150 15.82 94.90
6.55% L&T Finance Limited NCD November 3, 2028 10,00,000 – – 262.80
9.81% L&T Metro Rail (Hyderabad) Limited NCD June 18, 2035 10,00,000 – – 189.03
9.81% L&T Metro Rail (Hyderabad) Limited NCD November 2, 2035 10,00,000 – – 290.47
9.85% L&T Metro Rail (Hyderabad) Limited NCD January 28, 2036 10,00,000 – – 166.47
6.68% L&T Metro Rail (Hyderabad) Limited SR C 30 NCD April 30, 2027 10,00,000 4,220 436.36 432.35
Total- (i) 758.90 2038.24
(ii) Joint Venture companies:
8.80% Kudgi Transmission Limited NCD April 25, 2023 10,00,000 – – 16.24
8.80% Kudgi Transmission Limited NCD April 25, 2024 10,00,000 170 18.41 18.57
8.80% Kudgi Transmission Limited NCD April 25, 2025 10,00,000 180 19.66 19.82
8.80% Kudgi Transmission Limited NCD April 25, 2026 10,00,000 200 22.03 22.18
8.80% Kudgi Transmission Limited NCD April 25, 2027 10,00,000 210 23.33 23.46
9.14% Kudgi Transmission Limited SR-K NCD April 25, 2028 10,00,000 230 26.13 26.29
9.14% Kudgi Transmission Limited SR-L NCD April 25, 2029 10,00,000 240 27.57 27.58
9.14% Kudgi Transmission Limited SR-M NCD April 25, 2030 10,00,000 270 31.29 31.23
9.14% Kudgi Transmission Limited SR-N NCD April 25, 2031 10,00,000 280 32.74 32.56
9.14% Kudgi Transmission Limited SR-O NCD April 25, 2032 10,00,000 290 34.18 33.90
9.50% Kudgi Transmission Limited SR-P NCD April 25, 2033 10,00,000 310 37.65 37.22
9.50% Kudgi Transmission Limited SR-T NCD April 25, 2034 10,00,000 330 40.39 39.52
9.50% Kudgi Transmission Limited SR-R NCD April 25, 2035 10,00,000 360 43.97 42.95
9.50% Kudgi Transmission Limited SR-S NCD April 25, 2036 10,00,000 390 47.47 46.29
9.50% Kudgi Transmission Limited SR-T NCD April 25, 2037 10,00,000 410 49.66 48.36
9.50% Kudgi Transmission Limited SR-U NCD April 25, 2038 10,00,000 350 42.14 41.02
9.50% Kudgi Transmission Limited SR-V NCD April 25, 2039 10,00,000 960 114.86 112.77
9.50% Kudgi Transmission Limited SR-W NCD April 25, 2040 10,00,000 1,040 124.78 122.43
Total- (ii) 736.26 742.39

429
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [10] (contd.)
Details of quoted/unquoted investments:
v crore
Particulars As at 31-3-2024 As at 31-3-2023
(a) Aggregate amount of quoted current investments and market value thereof;
Book Value 13891.15 13148.22
Market Value 13891.15 13148.22
(b) Aggregate amount of unquoted current investments;
Book Value (Accounted based on NAV) 1499.59 2224.35
Market Value 1422.60 4851.72

NOTE [11]
Current Assets: Financial Assets - Trade receivables
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Unsecured, considered good 40895.57 36788.26
Less: Allowance for expected credit loss 3942.46 3643.00
36953.11 33145.26
Credit Impaired 214.76 333.10
Less: Allowance for expected credit loss 206.32 325.78
8.44 7.32
36961.55 33152.58

[a] Current assets: Financial assets - Trade receivables ageing

v crore
As at 31-3-2024
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 20894.18 10453.61 2437.28 1854.39 1271.25 2577.29 39488.00
- Credit impaired – – 0.80 2.52 8.60 38.26 50.18
Disputed:
- Considered good 105.90 253.73 – 94.10 0.20 953.64 1407.57
- Credit impaired – – – – – 164.58 164.58
Gross trade receivables 21000.08 10707.34 2438.08 1951.01 1280.05 3733.77 41110.33
Less: Allowance for expected credit loss 4148.78
Total 36961.55

430 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [11]
[a] Current assets: Financial assets - Trade receivables ageing (contd.)
v crore
As at 31-3-2023
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 19261.20 8093.69 2593.31 2362.04 1057.02 2158.34 35525.60
- Credit impaired – – 1.23 9.30 9.14 99.51 119.18
Disputed:
- Considered good 104.49 21.57 – 60.35 42.28 1033.97 1262.66
- Credit impaired – – – – – 213.91 213.91
Gross trade receivables 19365.69 8115.26 2594.54 2431.69 1108.44 3505.73 37121.35
Less: Allowance for expected credit loss 3968.77
Total 33152.58

NOTE [12]
Current Assets: Financials Assets - Cash and cash equivalents
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Balance with banks 3026.17 3437.56
Cheques and draft on hand 409.56 361.39
Cash on hand 3.42 3.54
Fixed deposits with banks (maturity less than 3 months) 500.06 –
3939.21 3802.49

NOTE [13]
Current Assets: Financials Assets - Other bank balances
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Fixed deposits with banks 282.43 297.50
Earmarked balances with banks-unclaimed dividend 129.90 129.10
Earmarked balances with banks-Section4(2)(1)(D) of RERA [1]
0.75 0.71
Cash and bank balances not available for immediate use [refer Note 7(a)] 416.90 339.84
829.98 767.15
[1]
Real Estate (Regulation and Development) Act, 2016

431
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [14]
Current Assets: Financials Assets - Loans
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Unsecured loans and advances to related parties:
Subsidiary companies, considered good 36.10 –
Subsidiary companies, considered doubtful – 5.90
Less: Allowance for expected credit loss – 5.90
– –
Associate/Joint venture companies, considered good 26.94 168.29
63.04 168.29

NOTE [15]
Current Assets: Financial Assets - Others
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Unsecured security deposits, considered good 497.72 449.12
Less: Allowance for expected credit loss 0.76 0.45
496.96 448.67
Receivable from related parties:
Subsidiary companies 1047.69 762.90
Less: Allowance for expected credit loss 6.50 5.28
1041.19 757.62
Joint venture companies 107.90 158.31
Less: Allowance for expected credit loss 0.87 6.05
107.03 152.26
Other recoverable 2200.17 1588.91
Premium receivable on financial guarantee contracts 25.13 26.85
Forward contract receivable 238.14 325.19
Embedded derivative receivable 158.39 228.40
Doubtful advances:
Deferred credit sale of ships 27.11 27.11
Other loans and advances 182.98 316.56
210.09 343.67
Less: Allowance for expected credit loss 210.09 343.67
– –
4267.01 3527.90

432 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [16]
Other current assets
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Contract Assets [refer Note 41(d)]
Unbilled Revenue 37441.04 36408.48
Retention money 11886.84 12516.49
49327.88 48924.97
Advance recoverable other than in cash 7756.71 8189.12
Government grants receivable 11.65 14.22
Other loans and advances 0.99 0.67
Less: Allowance for expected credit loss 0.99 0.67
– –
57096.24 57128.31

NOTE [17]
Equity share capital
(a) Share capital authorised, issued, subscribed and paid up:

As at 31-3-2024 As at 31-3-2023
Particulars Number of Number of
v crore v crore
shares shares
Authorised:
Equity shares of ¢ 2 each 40,18,50,00,000 8037.00 40,18,50,00,000 8037.00

Issued, subscribed and fully paid up:

Equity shares of ¢ 2 each 1,37,46,68,619 274.93 1,40,54,82,190 281.10

(b) Reconciliation of the number of equity shares and share capital:

As at 31-03-2024 As at 31-3-2023
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 1,40,54,82,190 281.10 1,40,50,29,123 281.01
Add: Shares issued on exercise of employee stock options during the year 4,36,429 0.08 4,53,067 0.09
Less: Shares extinguished on buy-back 3,12,50,000 6.25 – –
Issued, subscribed and fully paid up equity shares outstanding at the end
of the year 1,37,46,68,619 274.93 1,40,54,82,190 281.10

(c) Terms/rights attached to equity shares:

The Company has only one class of share capital, i.e., equity shares having face value of ¢ 2 per share. Each holder of equity share is
entitled to one vote per share.

433
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [17]
Equity share capital (contd.)
(d) Shareholders holding more than 5% of equity shares as at the end of the year: -

As at 31-3-2024 As at 31-3-2023
Name of the shareholders Number of Shareholding Number of Shareholding
shares % shares %
L&T Employees Trust 19,48,87,516 14.18 19,25,58,158 13.70
Life Insurance Corporation of India 15,17,12,116 11.04 16,04,73,308 11.42

(e) Shares reserved for issue under options outstanding on un-issued share capital:

As at 31-3-2024 As at 31-3-2023
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] 16,29,198 0.33[2] 11,74,574 0.23[2]
[1]
Note 17 (h) below for terms of employee stock option schemes
[2]
The equity shares will be issued at a premium of ¢ 27.41 crore (previous year: ¢ 25.57 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, 2024 are NIL (previous period of five years ended March 31, 2023: 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, 2024 – NIL (previous period of five years ended March 31, 2023: 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. During the year, the Company has issued the new ESOP series 2006(B) in which options are vested equally over a
period of 4 years. The options are vested equally over a period of 4 years for series 2003(B) and 2006(B), 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) 2006(B)

Series reference
No. 2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
1 Grant price (¢) 7.80 7.80 267.10 267.10 267.10
2 Grant dates 23-5-2003 onwards 1-7-2007 onwards 08-07-2023 onwards
3 Vesting commences on 23-5-2004 onwards 1-7-2008 onwards 08-07-2024 onwards
4 Options granted and outstanding at the beginning of the year 2,14,553 2,79,959 9,60,021 14,38,460 –
5 Options lapsed 20,995 17,809 53,320 94,393 5,600
6 Options granted 4,92,308 21,424 – – 4,78,660
7 Options exercised 77,380 69,021 3,59,049 3,84,046 –
8 Options granted and outstanding at the end of the year, of
which 6,08,486 2,14,553 5,47,652 9,60,021 4,73,060
Options vested 12,880 18,719 2,38,138 3,43,562 –
Options yet to vest 5,95,606 1,95,834 3,09,514 6,16,459 4,73,060
9 Weighted average remaining contractual life of options (in years) 5.78 4.88 2.97 3.59 6.31

434 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [17]
Equity share capital (contd.)
iii. The number and weighted average exercise price of stock options are as follows:
2023-24 2022-23
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 11,74,574 219.74 17,18,419 224.86
(B) Options granted 9,70,968 135.63 21,424 7.80
(C) Options allotted 4,36,429 221.13 4,53,067 227.60
(D) Options lapsed 79,915 198.98 1,12,202 225.94
(E) Options granted and outstanding at the end of the year 16,29,198 170.25 11,74,574 219.74
(F) Options exercisable at the end of the year out of (E) above 2,51,018 253.80 3,62,281 253.70
iv. Weighted average share price at the date of exercise for stock options exercised during the year is ¢ 2945.59 (previous year:
¢ 1779.07) 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 2023-24 is ¢ 91.25 crore
(previous year: ¢ 28.16 crore)[Note 34]. The entire amount pertains to equity-settled employee share-based payment plans.
The expenses includes ¢ 0.09 crore (previous year: ¢ 0.19 crore) charged by subsidiary companies towards the stock options
granted to Company's employees.
vi. During the year, the Company has recovered ¢ 2.41 crore (previous year: ¢ 1.12 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 ¢ 2314.37 (previous year: ¢ 1496.52) 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 2023-24 2022-23
No.
(i) Weighted average risk-free interest rate 7.05% 6.77%
(ii) Weighted average expected life of options 2.75 Years 2.83 Years
(iii) Weighted average expected volatility 18.64% 25.03%
(iv) Weighted average expected dividends over the life of the options ¢ 65.90 per option ¢ 62.26 per option
(v) Weighted average share price ¢ 2479.86 per option ¢ 1553.63 per option
(vi) Weighted average exercise price ¢ 135.63 per option ¢ 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, 2024 is ¢ 125.66 crore (previous year: ¢ 74.62 crore), including ¢ 20.78
crore (previous year: ¢ 30.86 crore) for which the options have been vested to employees as at March 31, 2024.
(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 challenges 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 0.35:1 as at March 31, 2024 (as at March 31, 2023 0.25:1).
During the year ended March 31, 2024, the shareholders approved the proposal of buyback of equity shares of the Company, as
recommended by its Board of Directors. The settlement of all valid bids and extinguishment of equity shares bought back were
completed on September 28, 2023.
Accordingly, the Company has bought back 3,12,50,000 equity shares of face value of ¢ 2 each, representing 2.22% of the number of
equity shares in the paid-up share capital, at a price of ¢ 3,200 per share aggregating to ¢ 10,000 crore. Consequently, the equity share
capital stands reduced by ¢ 6.25 crore. The premium on buyback of ¢ 9993.75 crore, transaction cost (net of tax) with respect to the
buyback of ¢ 26.37 crore and the tax on buyback of ¢ 2253.33 crore have been adjusted against securities premium account and free
reserves.
During the year ended March 31, 2024, the Company paid the final dividend of ¢ 24 per equity share for the year ended March 31,
2023 amounting to ¢ 3373.56 crore and a special dividend of ¢ 6 per equity share amounting to ¢ 843.39 crore.
The Board of directors, at their meeting held on May 8, 2024 recommended the final dividend of ¢ 28 per equity share for the year
ended March 31, 2024 subject to approval from shareholders. On approval, the total dividend outgo is expected to be ¢ 3849.07 crore
based on number of shares outstanding as at March 31, 2024.

435
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [18]
Other equity
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Capital reserve [1]
10.84 10.84
Capital reserve on business combination [2]
(25.77) (25.77)
Capital redemption reserve [3]
266.25 260.00
Securities premium [refer Note 1(II)(p)] 50.56 8770.19
Employee share options (net) [refer Note 1(II)(r)]
Employee share options outstanding 254.72 93.20
Deferred employee compensation expense (129.03) (18.58)
125.69 74.62
Debenture redemption reserve [4]
– 20.42
General reserve [5]
22715.19 26201.60
Retained earnings 40961.13 35863.32
Foreign currency translation reserve [refer Note 1(II)(s)(iv)] (26.66) (21.47)
Hedging reserve [refer Note 1(II)(m)(iii)]
Cash flow hedging reserve 66.89 228.78
Cost of hedging reserve (4.68) (4.77)
62.21 224.01
Debt instruments through other comprehensive income [refer Note 1(II)(m)(i)] 1.67 (130.89)
64141.11 71246.85
[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]
 apital reserve on business combination: It arises on transfer of business between entities under common control. It represents the difference,
C
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.
[3]
Capital redemption reserve: Created on: (a) Buyback of equity shares out of free reserves and securities premium in accordance with Section 69
of the Companies Act, 2013 (b) Redemption of preference shares out of profits in accordance with Section 55(2)(c) of the Companies Act, 2013.
[4]
 ebenture redemption reserve (DRR): The Ministry of Corporate Affairs vide notification dated August 16, 2019, amended the Companies
D
(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.

436 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [19]
Non-current liabilities: Financial Liabilities - Borrowings
v crore
As at 31-3-2024 As at 31-3-2023
Particulars
Secured Unsecured Total Secured Unsecured Total
Redeemable non-convertible fixed rate debentures [refer
Note 19(a)(i)] – 9792.22 9792.22 – 7286.80 7286.80
Redeemable non-convertible inflation linked debentures
[refer Note 19(a)(ii)] – – – – – –
Term loan from banks [refer Note 19(b)] – 2138.92 2138.92 – 2104.05 2104.05
– 11931.14 11931.14 – 9390.85 9390.85

19(a) (i) Unsecured 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 on
31-3-2024 31-3-2023
No. debenture allotment year 31-3-2024
R crore R crore
(R) 2023-24
1. 2,50,000 April 25, 483.93 483.83 8.00% p.a. Redeemable at face value at the end of 8th year from the date of
2022 payable allotment.
annually
2. 2,50,000 April 23, 483.93 – 8.00% p.a. Redeemable at face value at the end of 7th year from the date of
2023 payable allotment.
annually
3. 2,50,000 April 23, 483.73 483.63 8.00% p.a. Redeemable at face value at the end of 9th year from the date of
2021 payable allotment.
annually
4. 2,50,000 April 23, 483.69 483.58 8.00% p.a. Redeemable at face value at the end of 10th year from the date
2020 payable of allotment.
annually
5. 1,00,000 March 28, 2142.15 1999.71 7.725% Redeemable at face value at the end of 5th year from the date of
2023 p.a. allotment.
payable
annually
6. 1,00,000 November 9, 2059.23 – 7.66% p.a. Redeemable at face value at the end of 2nd year from the date of
2023 payable allotment.
annually
7. 1,00,000 November 2, 1546.39 – 7.58% p.a. Redeemable at face value at the end of 1st year from the date of
2023 payable allotment.
annually
8. 10,00,000 April 28, 2673.77 2669.51 7.70% p.a. Redeemable at face value at the end of 5th year from the date of
2020 payable allotment.
annually
9. 1,00,000 June 8, 2023 1534.27 – 7.33% p.a. Redeemable at face value at the end of 1st year from the date of
payable allotment.
annually
10. 1,00,000 June 8, 2023 1040.80 – 7.335% Redeemable at face value at the end of 1st year from the date of
p.a. allotment.
payable
annually
11. 1,00,000 June 8, 2023 1058.67 – 7.38% p.a. Redeemable at face value at the end of 1st year from the date of
payable allotment.
annually

437
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [19]
Non-current liabilities: Financial Liabilities - Borrowings (contd.)
Face Interest
As at As at
Sr. value per Date of for the Terms of repayment for debentures outstanding as on
31-3-2024 31-3-2023
No. debenture allotment year 31-3-2024
R crore R crore
(R) 2023-24
12. 10,00,000 May 6, 2020 1544.85 1542.63 7.25% p.a. Redeemable at face value at the end of 4th year from the date of
payable allotment.
annually
13. 10,00,000 April 23, – 2616.75 7.25% p.a.
2020 payable
annually
14. 10,00,000 April 20, – 1335.19 7.20% p.a.
2020 payable
annually
15. 10,00,000 January 24, – 1062.95 6.72% p.a.
2020 payable
annually
Total 15535.41 12677.79
Less: 5743.19 5390.99 Current maturity of long-term borrowings [refer Note 24]
9792.22 7286.80 Non-current borrowings [refer Note 19]
19(a) (ii) Unsecured redeemable non-convertible inflation linked debentures:

Face As at As at
Date of Interest for the Terms of repayment for debentures
value per 31-3-2024 31-3-2023
allotment year 2023-24 outstanding as on 31-3-2024
debenture (R) R crore R crore

10,00,000 May 23,2013 – 143.51(1) 1.65% p.a.

payable on
Inflation Adjusted
Principal as on the
date of coupon
payment

Less: – 143.51 Current maturity of long-term borrowings [refer Note 24]

– –

(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 on
31-3-2024 31-3-2023 Rate of Interest for the year 2023-24
No. 31-3-2024
R crore R crore
1 892.07 878.18 USD SOFR + Spread [1]
Repayable on November 30, 2025
2 1248.34 1226.91 USD SOFR + Spread [1]
Repayable on April 14, 2025
3 – 29.44 9.00% p.a. payable monthly
4 – 15.90 8.40% p.a. payable monthly
Total 2140.41 2150.43
Less: 1.49 46.38 Current maturity of long-term borrowings [refer Note 24]
2138.92 2104.05 Non-current borrowings [refer Note 19]
[1]
Represents unsecured term loans obtained in foreign currency.

438 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [20]
Non-current liabilities: Other financial liabilities
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Forward contract payables 10.23 16.02
Embedded derivative payables – 4.89
Financial guarantee contracts 24.93 50.38
Due to others (mainly includes liabilities towards capital goods) 40.65 37.12
75.81 108.41

NOTE [21]
Non-current liabilities: Provisions
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Employee pension scheme 351.87 346.44
Post-retirement medical benefits plan 345.86 290.53
697.73 636.97

NOTE [22]
Other non-current liabilities
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Other Payables (Deferred income on day one fair valuation of financial instrument) 22.67 7.05
22.67 7.05

NOTE [23]
Current liabilities: Financial Liabilities - Borrowings

v crore
As at 31-3-2024 As at 31-3-2023
Particulars
Secured Unsecured Total Secured Unsecured Total
Loans repayable on demand from banks – 0.29 0.29 0.36 0.54 0.90
Short term loan and advances from banks – 813.75 813.75 – 1743.91 1743.91
Commercial paper – 2668.53 2668.53 – 1231.28 1231.28
Loans from related parties:
Subsidiary companies – 1149.41 1149.41 – 1.23 1.23
Joint venture companies – 207.67 207.67 – 202.04 202.04
Collateralized borrowing and lending obligation 25.00 – 25.00 – – –
25.00 4839.65 4864.65 0.36 3179.00 3179.36

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 to the extent of: ¢ 6932.00 crore as at March 31, 2024 (March 31,2023: ¢ 6932.00 crore)

23(c) The Company has been sanctioned working capital limits in excess of ¢ 5 crore, 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.

439
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [24]
Current liabilities: Financial liabilities - Current maturities of long-term borrowings

v crore
Particulars As at 31-3-2024 As at 31-3-2023
Unsecured:
Redeemable non-convertible fixed rate debentures [refer Note 19(a)(i)] 5743.19 5390.99
Term loans from banks [refer Note 19(b)] 1.49 46.38
Redeemable non-convertible floating rate debentures [refer Note 19(a)(ii)] – 143.51
5744.68 5580.88

24(a) Loans guaranteed by directors ¢ Nil (previous year: ¢ Nil)

NOTE [25]
Current liabilities: Financial liabilities - Other trade payables

v crore
Particulars As at 31-3-2024 As at 31-3-2023
Acceptances 93.89 175.47
Due to related parties:
Subsidiary companies 1307.52 848.57
Associate companies 5.61 6.00
Joint venture companies 1262.66 1455.48
2575.79 2310.05
Due to others 37305.43 38543.14
39975.11 41028.66

25(a) Current liabilities: Financial liabilities - Trade payables ageing

v crore
As at 31-3-2024
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 16.11 822.51 26.71 1.96 2.06 1.87 871.22
Others 10699.91 21993.09 5397.22 347.92 290.59 1239.29 39968.02
Disputed: –
Micro and small enterprises – – – – – – –
Others – 7.09 – – – – 7.09
Total 10716.02 22822.69 5423.93 349.88 292.65 1241.16 40846.33

440 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [25]
[a] Current liabilities: Financial liabilities - Trade payables ageing (contd.)
v crore
As at 31-3-2023
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 58.21 619.75 64.88 4.94 2.27 1.66 751.71
Others 11375.85 21957.89 5747.79 424.92 152.27 1361.80 41020.52
Disputed: –
Micro and small enterprises – – – – – – –
Others – 7.48 – – – 0.66 8.14
Total 11434.06 22585.12 5812.67 429.86 154.54 1364.12 41780.37

NOTE [26]
Current liabilities - Other financial liabilities
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Unclaimed dividend 129.90 129.10
Forward contract payable 270.74 163.69
Embedded derivative payable 41.64 43.78
Financial guarantee contracts 25.46 27.53
Due to others [1][2]
3603.76 3753.82
4071.50 4117.92
[1]
Due to others include due to directors ¢ 123.61 crore (previous year ¢ 92.20 crore)
[2]
Mainly includes liability towards employee benefits and capital goods

NOTE [27]
Other current Liabilities
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Contract liabilities [refer Note 41(d)]
Excess of billing over revenue 14487.32 13513.76
Advances from customers 22133.60 16926.77
36620.92 30440.53
Other payables [1]
2762.89 1836.84
39383.81 32277.37

[1]
Mainly includes liabilities towards joint operations, statutory dues and employee benefits

441
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [28]
Current liabilities - provisions
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Provision for employee benefits:
Gratuity 118.93 103.00
Compensated absences 571.79 672.71
Employee pension scheme 30.39 28.83
Post-retirement medical benefits plan 17.76 13.91
738.87 818.45
Other Provisions [refer Note 50] 912.70 1013.92
1651.57 1832.37

NOTE [29]
Contingent liabilities
v crore
Particulars As at 31-3-2024 As at 31-3-2023
(a) Claims against the Company not acknowledged as debts 4569.64 4276.96
(b) Sales tax/GST liability that may arise in respect of matters in appeal 1169.36 561.64
(c) Excise duty/service tax/customs duty liability that may arise in respect of matters in appeal/
challenged by the Company in WRIT 426.36 384.30
(d) Income tax liability that may arise in respect of which the Company is in appeal 3380.37 2652.73
(e) Corporate guarantees given for financial obligations of Subsidiary companies/joint venture
companies 8826.56 8892.58
(f) Corporate and bank guarantees for performance obligations of Subsidiary companies/joint
venture companies 120947.97 68828.25
(g) Contingent liabilities incurred in relation to interests in joint operations 3006.66 2976.71
(h) Share in contingent liabilities of joint operations for which the Company is contingently liable 123.84 87.48
(i) Contingent liabilities in respect of liabilities of other joint operators of joint operations 4364.24 4407.38
(j) Indemnities for performance given on behalf of third parties 56.79 96.41
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 three 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.

4. In respect of matters at (f), the cash outflows, if any, could generally occur up to six years, 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 31-3-2024 As at 31-3-2023
(a) Estimated amount of contracts remaining to be executed on capital account (net of
advances) on:
(i) Property, plant and equipment 808.81 1080.83
(ii) Investment property 219.85 –
(iii) Intangible assets 16.73 10.79
1045.39 1091.62
(b) Funding committed by way of equity/loans to subsidiary companies 239.25 349.47
(c) Uncalled liability on shares and other investments partly paid – 880.00

NOTE [31]
Revenue from operations
v crore
Particulars 2023-24 2022-23
Sales and service:
Construction and project related activity 118835.90 103509.82
Manufacturing and trading activity 3852.08 3582.80
Property development activity 509.35 444.67
Engineering and service fees 115.34 108.28
Servicing 1614.03 1421.59
Commission 141.81 136.87
125068.51 109204.03
Other operational income:
Net gain/(loss) on sale of investment properties – 82.62
Lease rentals 102.96 56.16
Income from services to Group companies 104.95 92.12
Premium earned (net) on related forward exchange contracts 27.82 64.91
Miscellaneous Income 931.61 1001.14
1167.34 1296.95
126235.85 110500.98

443
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [32]
Other income
v crore
Particulars 2023-24 2022-23
Interest income:
Subsidiary and associate companies 389.09 641.88
Others 1333.65 970.37
1722.74 1612.25
Dividend income:
Subsidiary companies 2519.42 1568.08
Joint venture companies 129.83 144.34
Others 6.42 0.97
2655.67 1713.39
Net gain/(loss) on fair valuation of investments 35.08 (72.04)
Net gain/(loss) on sale of investments 249.70 232.21
284.78 160.17
Net gain/loss on derivatives at fair value through profit or loss (23.07) 92.71
Net gain/(loss) on sale of property, plant and equipment 58.67 48.03
Lease rentals 58.05 95.75
Miscellaneous income (net of expenses) 583.76 312.65
5340.60 4034.95

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NOTE [33]
Manufacturing, construction and operating expenses
v crore
Particulars 2023-24 2022-23
Cost of raw materials, components consumed:
Raw materials and components 11794.06 13342.47
Less : Scrap sales 172.58 179.42
11621.48 13163.05
Construction materials consumed 43031.68 38098.69
Purchase of stock-in-trade 1078.54 1076.29
Stores, spares and tools consumed 3613.78 4260.17
Sub-contracting charges 30750.87 24353.62
Changes in inventories of finished goods, work-in-progress and stock-in-trade and
property development :
Closing stock:
Finished goods 0.87 16.77
Stock-in-trade 228.30 364.92
Work-in-progress 10048.69 10310.78
10277.86 10692.47
Less : Opening stock:
Finished goods 16.77 16.65
Stock-in-trade 364.92 319.61
Work-in-progress 10308.00 7425.48
10689.69 7761.74
411.83 (2930.73)
Other manufacturing, construction and operating expenses:
Power and fuel 2440.76 2568.18
Royalty and technical know-how fees 127.08 30.66
Packing and forwarding 713.65 864.08
Rent hire charges 3975.24 3399.96
Engineering, professional, technical and consultancy fees 2352.00 1685.51
Insurance 707.37 587.09
Rates and taxes 767.35 798.46
Travelling and conveyance 973.31 935.34
Repairs to plant and equipment 120.54 90.78
Repairs to buildings 16.69 24.58
General repairs and maintenance 692.53 633.03
Bank guarantee charges 298.95 302.67
Provision/(reversal) for foreseeable losses on construction contracts 86.00 187.46
Other provisions/(reversal of provisions) 19.32 (119.71)
Miscellaneous expenses 434.07 385.15
13724.86 12373.24
104233.04 90394.33

445
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [34]
Employee benefits expense
v crore
Particulars 2023-24 2022-23
Salaries, wages and bonus 7847.40 7409.77
Contribution to and provision for:
Provident funds and pension fund 197.74 180.27
Superannuation/employee pension schemes 26.76 25.60
Gratuity funds 91.54 98.32
316.04 304.19
Expenses on employees stock option schemes 91.25 28.16
Employee medical and other insurance premium expenses 130.32 121.89
Staff welfare expenses 797.03 697.17
Recoveries on account of deputation (317.63) (262.96)
8864.41 8298.22

NOTE [35]
Sales, administration and other expenses
v crore
Particulars 2023-24 2022-23
Power and fuel 81.59 80.34
Packing and forwarding 57.58 62.31
Professional fees 644.55 503.14
Audit fees 8.70 8.03
Insurance 68.97 62.06
Rent & hire charges 114.26 143.97
Rates and taxes 74.94 43.66
Travelling and conveyance 282.41 246.89
Repairs to buildings 20.31 21.19
General repairs and maintenance 335.78 279.55
Directors' fees 1.06 0.99
Telephone, postage and telegrams 115.35 121.92
Advertising and publicity 79.67 73.46
Stationery and printing 45.29 45.44
Commission 19.62 24.56
Bank charges 81.53 76.01
Miscellaneous expenses 606.46 577.75
Bad debts and advances written off (net of written back) 592.33 158.20
Less: Allowance for expected credit loss written back 546.44 135.24
45.89 22.96
Corporate social responsibility 150.98 137.19
Allowance for expected credit loss (net) 969.03 729.13
Exchange (gain)/loss (net) (99.93) (417.25)
Provision/(reversal of provision) on loans given to/investments in subsidiary (70.24) (891.86)
Loss on cancellation of equity shares on capital reduction by subsidiary – 602.95
Other provisions/(reversal of provisions) (116.87) 34.29
Recoveries from subsidiary and associates (63.09) (74.87)
3453.84 2513.81

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NOTE [36]
Finance costs
v crore
Particulars 2023-24 2022-23
Interest expenses 2396.49 2096.14
Exchange loss 9.34 29.09
2405.83 2125.23
NOTE [37]
Depreciation, amortisation, impairment and obsolescence
v crore
Particulars 2023-24 2022-23
Depreciation on:
Property plant and equipment 1542.76 1203.05
Right-of-use assets 114.31 101.97
Investment property 17.27 16.79
1674.34 1321.81
Amortisation of intangible assets 69.07 45.68
Obsolescence on property, plant and equipment 7.60 4.15
1751.01 1371.64

NOTE [38]
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. 2023-24 2022-23
Nature of expenses
No. Note 33 Note 34 Note 35 Total Note 33 Note 34 Note 35 Total
1 Power and fuel 2440.76 – 81.59 2522.35 2568.18 – 80.34 2648.52
2 Packing and forwarding 713.65 – 57.58 771.23 864.08 – 62.31 926.39
3 Insurance 707.37 130.32 68.97 906.66 587.09 121.89 62.06 771.04
4 Rent hire charges 3975.24 – 114.26 4089.50 3399.96 – 143.97 3543.93
5 Rates and taxes 767.35 – 74.94 842.29 798.46 – 43.66 842.12
6 Travelling and conveyance 973.31 – 282.41 1255.72 935.34 – 246.89 1182.23
7 Repairs to buildings 16.69 – 20.31 37.00 24.58 – 21.19 45.77
8 General repairs and maintenance 692.53 – 335.78 1028.31 633.03 – 279.55 912.58
9 Miscellaneous expenses 434.07 – 606.46 1040.53 385.15 – 577.75 962.90
NOTE [39]
Disclosure pursuant to Ind AS 105 “Non-current assets held for sale and discontinued operations”:
Assets held for sale as at March 31, 2024 includes:
(a) Investment of ¢ 1005.36 crore in L&T Infrastructure Development Projects Limited (L&T IDPL), a joint venture, primarily engaged in the
development and operation of toll roads and power transmission assets. The stake sale is concluded on April 10, 2024.

(b) Land of ¢ 172.55 crore situated at Mumbai, Maharashtra. The asset forms part of Realty business which is reported under “Others”
segment (refer Note 40).

Assets and liabilities held for sale as at March 31, 2023 includes:
(a) Assets of ¢ 1280.31 crore and liabilities of ¢ 998.48 crore of Carved-out Business of Smart World and Communication (SWC) Business
unit of the Company. The transfer of Carved-out Business to L&T Technology Services Limited (LTTS), a listed subsidiary is completed on
April 1, 2023 for cash consideration of ¢ 800.00 crore.

(b) Investment of ¢ 1032.35 crore in L&T Infrastructure Development Projects Limited and its subsidiaries, primarily engaged in the
development and operation of toll roads and power transmission assets, consequent to the Company entering into a Share Purchase
Agreement to sell its entire shareholding, subject to regulatory approvals on December 16, 2022.

(c) Land of ¢ 28.35 crore situated at Mumbai, Maharashtra. The asset forms part of Realty business which is reported under “Others”
segment (refer Note 40).

447
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [40]
Disclosure pursuant to Ind AS 108 “Operating Segment”

(a) Information about reportable segments:

v crore
For the year ended 31-3-2024 For the year ended 31-3-2023
Particulars Inter- Inter-
External Total External Total
segment segment
Revenue
Infrastructure Projects 94441.58 1144.04 95585.62 79097.18 726.67 79823.85
Energy Projects 19357.05 26.34 19383.39 19997.59 36.81 20034.40
Hi-Tech Manufacturing 8195.99 569.32 8765.31 6534.91 625.97 7160.88
Others 4241.23 22.48 4263.71 4871.30 24.14 4895.44
Sub-total 126235.85 1762.18 127998.03 110500.98 1413.59 111914.57
Inter-segment revenue 1762.18 1762.18 1413.59 1413.59
Total 126235.85 – 126235.85 110500.98 – 110500.98
Segment result [Profit/(loss) before interest and tax]
Infrastructure Projects 4456.02 4821.69
Energy Projects 2240.67 1589.25
Hi-Tech Manufacturing 1169.50 995.25
Others 511.64 695.46
Total 8377.83 8101.65
Inter-segment margins on capital jobs (108.53) (41.81)
Unallocable corporate income net of expenditure 5004.85 3898.09
Finance costs (2405.83) (2125.23)
Exceptional items (net of tax) [Note 59] 447.99 –
Profit before tax 11316.31 9832.70
Current tax (2205.00) (2334.76)
Deferred tax 193.02 351.03
Net profit after tax 9304.33 7848.97
v crore
Segment Assets Segment Liabilities
Particulars As at As at As at As at
31-3-2024 31-3-2023 31-3-2024 31-3-2023
Infrastructure Projects 83848.63 78431.66 62203.70 55913.06
Energy Projects 16265.77 17845.43 11482.13 14355.46
Hi-Tech Manufacturing 10071.97 9159.89 8,865.36 6612.24
Others 8331.41 8449.64 3959.41 4420.84
Total 118517.78 113886.62 86510.60 81301.60
Unallocable corporate assets/liabilities 57980.63 59756.60 25571.77 20813.67
Inter-segment assets/liabilities (1215.72) (1218.73) (1215.72) (1218.73)
Total assets/liabilities 175282.69 172424.49 110866.65 100896.54

448 Integrated Annual Report 2023-24

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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 income
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
31-3-2024 31-3-2023 31-3-2024 31-3-2023 31-3-2024 31-3-2023 31-3-2024 31-3-2023 31-3-2024 31-3-2023
Infrastructure Projects 1,219.02 882.46 48.14 21.18 231.60 202.35 17.51 14.94 2044.69 3759.90
Energy Projects 146.68 135.34 11.98 2.94 – – – – 733.63 643.33
Hi-Tech Manufacturing 196.41 178.98 7.50 1.99 – – – – 525.86 161.25
Others 79.69 60.56 3.23 0.89 – – – – 764.67 606.70
Total 1641.80 1257.34 70.85 27.00 231.60 202.35 17.51 14.94 4068.85 5171.18
Unallocated corporate 109.21 114.30 20.40 1.16 (231.60) (202.35) (17.51) (14.94) 1007.36 150.01
Inter-segment – – – – – – – – (402.68) (44.34)
Total 1751.01 1371.64 91.25 28.16 – – – – 4673.53 5276.85
Note : There is no impairment/reversal of impairment in non-financial assets of the operating segments.

(b) Geographical information

v crore
Revenue by location of project

Particulars For the For the

year ended year ended
31-3-2024 31-3-2023
India (i) 100103.26 91895.55
Foreign countries:
Saudi Arabia 12621.44 3747.79
United Arab Emirates 2816.67 2094.22
Qatar 2352.42 2261.50
Bangladesh 1495.57 1662.27
Kuwait 659.22 731.81
Other Countries 6187.27 8107.84
Total foreign countries (ii) 26132.59 18605.43
Total (i+ii) 126235.85 110500.98

Non-current Assets
Particulars As at As at
31-3-2024 31-3-2023
India (i) 16919.86 15223.62
Foreign countries (ii) 201.79 370.14
Total (i+ii) 17121.65 15593.76
(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 identification of operating segments is consistent with performance assessment and resource allocation by the management.

449
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [40]
Disclosure pursuant to Ind AS 108 “Operating Segment” (contd.)
(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 four 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) The Segment Composition:-

• Infrastructure Projects 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 and metals.

• Energy Projects segment comprises EPC/ turnkey solutions in (a) Hydrocarbon business covering Oil & Gas industry from
front-end design through detailed engineering, modular fabrication, procurement, project management, construction,
installation and commissioning and (b) Power business covering Coal-based and Gas-based thermal power plants including
power generation equipment with associated systems and/or balance-of-plant packages and (c) EPC solutions in Green Energy
space.

• Hi-Tech Manufacturing segment comprises design, manufacture / construct, supply, revamp/retrofit of (a) custom designed,
engineered critical equipment & systems to the process plant, nuclear energy and green hydrogen sectors (b) marine and land
platforms including related equipment & systems; aerospace products & systems; precision and electronic products & systems
for the defence, security, space and industrial sectors.

• Others segment includes (a) realty, (b) smart world & communication projects, (c) marketing and servicing of construction
equipment & mining machinery and parts thereof, (d) manufacture and sale of rubber processing machinery and (e)
E-commerce/digital platforms & data centres.

450 Integrated Annual Report 2023-24

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Notes forming part of the Standalone Financial Statements (contd.)

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, 2024:

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 Projects 77779.56 16315.73 94095.29 346.29 94441.58
Energy Projects 12078.72 6944.86 19023.58 333.47 19357.05
Hi-Tech Manufacturing 5636.42 2530.94 8167.36 28.63 8195.99
Others 3827.14 311.89 4139.03 102.20 4241.23
Total 99321.84 26103.42 125425.26 810.59 126235.85

ii. For the year ended March 31, 2023:

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 Projects 66732.61 11991.96 78724.57 372.61 79097.18
Energy Projects 15201.90 4754.31 19956.21 41.38 19997.59
Hi-Tech Manufacturing 4919.02 1551.84 6470.86 64.05 6534.91
Others 4483.62 267.91 4751.53 119.77 4871.30
Total 91337.15 18566.02 109903.17 597.81 110500.98

(b) Out of the total revenue recognised under Ind AS 115 during the year, ¢ 119642.27 crore (previous year: ¢ 103907.68 crore) is
recognised over a period of time and ¢ 5782.99 crore (previous year: ¢ 5995.49 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
2023-24 2022-23 2023-24 2022-23
Balance as at April 1 3968.78 3481.74 1588.17 1599.24
Changes in loss allowance for expected credit loss:
Provision/(reversal) of allowance for expected credit loss 323.78 324.57 373.92 36.37
Additional provision (net) towards credit impaired receivables 402.66 293.66 (4.48) (46.43)
Written off as bad debts (546.44) (130.62) – –
Less: Balance classified as held for sale – 0.57 – 1.01
Balance as at March 31 4148.78 3968.78 1957.61 1588.17

451
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone 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
2023-24 2022-23
Particulars Contract Contract Net contract Contract Contract Net contract
Assets Liabilities balances Assets Liabilities balances
Opening balance as at April 01 48924.97 30440.53 18484.44 48783.33 26571.06 22212.27
Closing balance as at March 31 49327.88 36620.92 12706.96 48924.97 30440.53 18484.44
Net increase/(decrease) 402.91 6180.39 (5777.48) 141.64 3869.47 (3727.83)
i. Decrease in net contract balances is primarily due to higher progress bills raised as compared revenue recognition in both the years.
ii. Revenue recognised from opening balance of contract liabilities amounts to ¢ 9505.03 crore (previous year: ¢ 7174.53 crore)
iii. Revenue recognised from the performance obligation satisfied (or partially satisfied) upto previous year (arising out of contract
modifications) amounts to ¢ 50.02 crore (previous year: ¢ 9.62 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, 2024: Nil (previous year: Nil)

(f) Reconciliation of contracted price with revenue during the year:

v crore
Particulars 2023-24 2022-23
Opening contracted price of orders as at start of the year[1] 824532.51 753815.67
Add:
Fresh orders/change orders received (net) 159628.00 116111.02
Increase due to additional consideration recognised as per contractual terms/(decrease) due to scope 6414.22 5988.55
reduction (net)
Increase/(decrease) due to exchange rate movements (net) 1943.83 2848.26
Less:
Orders completed during the year 80265.34 54230.99
On account of business transfer 5083.68 –
Closing contracted price of orders as at the end of the year[1] 907169.54 824532.51
Total Revenue recognised during the year : 125425.30 109903.17
a. Revenue out of orders completed during the year 8276.59 6665.83
b. Revenue out of orders under execution at the end of the year (I) 117148.71 103237.34
Revenue recognised upto previous year (from orders pending completion at the end of the year) (II) 419404.56 390461.61
Increase/(decrease) due to exchange rate movements (III) 203.25 619.60
Balance revenue to be recognised in future viz. Order book (IV) 370413.01 330213.96
Closing contracted price of orders as at the end of the year[1] (I+II+III+IV) 907169.53 824532.51
[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, 2024 370413.01 153657.53 114940.41 45337.64 25327.68 12100.11 19049.65
As at March 31, 2023 330213.96 120551.05 113676.90 56487.65 17752.19 9679.15 12067.01

452 Integrated Annual Report 2023-24

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Notes forming part of the Standalone 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 31-3-2024 As at 31-3-2023
Within After Within After
Particulars Note
twelve twelve Total twelve twelve Total
months months months months
Inventories 9 1795.69 1725.28 3520.97 2161.58 1266.98 3428.56
Trade receivables 11 35589.28 1372.27 36961.55 32184.55 968.03 33152.58
Loans 14 63.04 – 63.04 168.29 – 168.29
Other financial assets 15 4124.87 142.13 4267.01 3487.12 40.78 3527.90
Other current assets 16 42103.67 14992.58 57096.24 49241.23 7887.08 57128.31
Total 83676.55 18232.26 101908.80 87242.77 10162.87 97405.64
b. Current liabilities expected to be settled within twelve months and after twelve months from the reporting date:
v crore
As at 31-3-2024 As at 31-3-2023
Within After Within After
Particulars Note
twelve twelve Total twelve twelve Total
months months months months
Trade payables:
Due to micro enterprises and small 858.97 12.25 871.22 662.48 89.23 751.71
enterprises
Due to others 25 39438.32 536.80 39975.11 38286.03 2742.63 41028.66
Lease liability 124.83 34.06 158.89 85.84 51.48 137.32
Other financial liabilities 26 4049.31 22.19 4071.50 4094.01 23.91 4117.92
Other current liabilities 27 30517.65 8866.16 39383.81 26985.85 5291.52 32277.37
Provisions 28 1428.87 222.71 1651.57 1555.21 277.16 1832.37
Total 76417.94 9694.16 86112.10 71669.42 8475.93 80145.35
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, 2022 12968.41 2097.39 5232.49 178.42 20476.71
2 Additions to lease liability – – – 105.33 105.33
3 Changes from financing cash flows 1119.00 1078.98 (4218.00) (95.18) (2115.20)
4 Changes on lease termination/lease
concessions – – – (1.13) (1.13)
5 The effect of changes in foreign exchange
rates 157.85 – (0.08) – 157.77
6 Interest accrued (net of interest paid) 726.47 2.99 (1014.41) – (284.95)
7 Other changes (transfer within categories) (5580.88) – 5580.88 – –
8 Balance as at March 31, 2023 9390.85 3179.36 5580.88 187.44 18338.53
9 Additions to lease liability – – – 185.21 185.21
10 Changes from financing cash flows 7450.00 1676.97 (4845.00) (98.70) 4183.27
11 Changes on lease termination/lease
concessions – – – (2.86) (2.86)
12 The effect of changes in foreign exchange
rates 34.15 – – 0.04 34.19
13 Interest accrued (net of interest paid) 800.82 8.32 (735.88) – 73.26
14 Other changes (transfer within categories) (5744.68) – 5744.68 – –
15 Balance as at March 31, 2024 11931.14 4864.65 5744.68 271.14 22811.61

453
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone 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 2023-24 2022-23
Proceeds from non-current borrowings 7450.00 2450.00
Repayment of non-current borrowings (4845.00) (5549.00)
(Repayments)/Proceeds from other borrowings (net) 1676.97 1078.98
Repayment of lease liability (98.70) (95.18)
Total changes from financing cash flows (refer to Sr. No 3 & 10 above) 4183.27 (2115.20)

NOTE [44]
Disclosure pursuant to Ind AS 12 "Income Taxes"

(a) Major components of tax expense/(income):

v crore
Sr.
Particulars 2023-24 2022-23
No.
1. Profit or Loss section
(i) Current Income tax :
Current income tax expense 2248.88 2273.56
Tax expense of earlier years (23.05) 61.20
(ii) Deferred Tax:
Tax expense on origination and reversal of temporary differences (75.37) (351.03)
Income tax expense reported in Profit or Loss [(i)+(ii)] 2150.46 1983.73
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 3.51 (8.53)
3.51 (8.53)
(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 (44.52) (66.96)
(44.52) (66.96)
(B) Deferred Tax:
On mark to market gain/(loss) on cash flow hedges (5.74) 56.66
Net gain/(loss) on cost of hedge reserve 0.03 (0.02)
Net gain/(loss) fair value of debt securities 39.34 (87.20)
On foreign currency translation of joint operations (1.74) (3.55)
31.89 (34.11)
Income tax expense reported in the OCI section [(i)+(ii)] (9.12) (109.60)

454 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone 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 2023-24 2022-23
No.
(1) Profit before tax 11454.79 9832.70
(2) Corporate tax rate as per Income Tax Act, 1961 25.17% 25.17%
(3) Tax on Accounting profit (3) = (1) * (2) 2882.94 2474.69
(4) (i) Tax on expenses not tax deductible:
(A) Corporate social responsibility 38.00 34.53
(B) Tax on employee perquisites borne by the company 12.42 1.74
(ii) Effect of deferred tax asset created on unused tax losses (67.37) (117.65)
(iii) Effect of current tax related to earlier years (23.05) 61.20
(iv) Effect of lower tax rate on capital gains (10.59) (6.46)
(v) Effect of deduction with respect to dividend income (668.38) (431.23)
(vi) Tax effect on various other items (13.51) (33.09)
Total effect of tax adjustments [(i) to (vii)] (732.48) (490.96)
(5) Tax expense recognised during the year (5)=(3)+(4) 2150.46 1983.73
(6) Effective tax Rate (6)=(5)/(1) 18.77% 20.17%
(c) (i) Unused tax losses for which no deferred tax asset (DTA) is recognised in Balance Sheet:

As at 31-3-2024 As at 31-3-2023
Particulars Base Amount Deferred Tax Base Amount Deferred Tax
Expiry date Expiry date
(v crore) (v crore) (v crore) (v crore)
Capital loss 936.25 214.21 FY 2030-31 1388.43 317.67 FY 2030-31
(ii) Unrecognised deductible temporary differences for which no deferred tax asset (DTA) is recognised in Balance Sheet
v crore

Sr. As at 31-3-2024 As at 31-3-2023

Particulars
No. Base Amount Deferred Tax Base Amount Deferred Tax
1. Deductible temporary differences towards provision for diminution
in value of investments/loans on which DTA not created 4481.36 1066.88 4505.98 1074.15
2. Temporary differences arising out of revaluation of tax base of
assets (on account of indexation benefit) 9024.31 2064.76 7875.43 1801.90
Total 13505.67 3131.64 12381.41 2876.05

455
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone 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:
i. As at March 31, 2024
v crore
Charge/(credit) Charge/(credit) Debit/(credit) to
Sr. As at to Statement to Other hedge reserve As at
Particulars
No. 31-3-2023 of Profit and Comprehensive (other than 31-3-2024
Loss Income (OCI) through OCI)
1. Disputed statutory liability claimed on
payment basis u/s 43B of the Income
Tax Act, 1961 198.94 1.77 – – 200.71
2. Items disallowed u/s 43B of Income
Tax Act, 1961 (329.63) 33.33 – – (296.30)
3. Provision for doubtful debt and
advances (1451.92) (104.45) – – (1556.37)
4. Difference in book depreciation and
income tax depreciation 246.93 (81.43) – – 165.50
5. Gain/(Loss) on derivative transactions 50.82 – (5.71) (4.50) 40.61
6. Deferred tax on capital losses (117.65) 50.28 – – (67.37)
7. Other temporary differences (136.63) 25.13 37.60 – (73.90)
Net deferred tax (assets)/liabilities (1539.14) (75.37) 31.89 (4.50) (1587.12)

ii. As at March 31, 2023

v crore
Charge/ Charge/ Debit/(credit) to
Sr. As at (credit) to (credit) to Other hedge reserve As at
Particulars
No. 31-3-2022 Statement of Comprehensive (other than 31-3-2023
Profit and Loss Income (OCI) through OCI)
1. Disputed statutory liability claimed on
payment basis u/s 43B of the Income
Tax Act, 1961 194.34 4.61 – – 198.94
2. Items disallowed u/s 43B of Income
Tax Act, 1961 (321.23) (8.39) – – (329.63)
3. Provision for doubtful debt and
advances (1325.05) (126.88) – – (1451.92)
4. Difference in book depreciation and
income tax depreciation 282.30 (35.37) – – 246.93
5. Gain/(Loss) on derivative transactions 7.88 – 56.64 (13.70) 50.82
6. Deferred tax on capital losses – (117.65) – – (117.65)
7 Other temporary differences 21.46 (67.35) (90.75) – (136.63)
Net deferred tax (assets)/liabilities (1140.30) (351.03) (34.11) (13.70) (1539.14)

456 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone 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 ¢ 134.95 crore (previous year: ¢ 108.57 crore) is recognized as an expenses.

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
31-3-2024 31-3-2023 31-3-2024 31-3-2023 31-3-2024 31-3-2023 31-3-2024 31-3-2023
A) Present value of defined benefit obligation
-Wholly funded 819.18 757.66 – – – – 4176.22 3927.84
-Wholly unfunded 118.93 103.00 363.62 305.50 382.26 375.27 – –
938.11 860.66 363.62 305.50 382.26 375.27 4176.22 3927.84
Less: Fair value of plan assets 770.87 623.27 – – – – 4359.42 4014.74
Amount to be recognised as liability/(asset) 167.24 237.39 363.62 305.50 382.26 375.27 (183.20) [2] (86.90) [2]
B) Amounts reflected in the Balance Sheet:
Liabilities 167.24 237.39 363.62 305.50 382.26 375.27 34.44 31.73
Assets – – – – – – – –
Net liability/(asset) 167.24 237.39 363.62 305.50 382.26 375.27 34.44 31.73
Net liability/(asset) - current 167.24 237.39 17.76 13.91 30.39 28.83 34.44 [1] 31.73 [1]
Net liability/(asset) - Non current – – 345.86 291.59 351.87 346.44 – –
Net liability/(asset) classified as Held for sale – – – (1.06) – – – –
[1] Employer's and employee's contribution due towards Provident Fund
[2] Restricted to NIL in terms of para 58 of Ind AS 19

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
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
1 Current service cost 91.54 83.85 12.13 13.07 3.14 3.26 117.07 103.26
2 Interest cost 51.18 43.76 22.14 21.60 26.92 25.28 312.49 290.25
3 Interest income on plan assets (46.21) (44.27) – – – – (312.49) (290.25)
4 Actuarial (gains)/losses - others 30.59 40.35 (6.22) (26.86) 4.72 (7.21) – –
5 Actuarial (gains)/losses - difference between
actual return on plan assets and interest income (43.04) 27.63 – – – – (72.03) 208.75
6 Past service cost – 14.47 47.38 0.12 – 8.23 – –
7 Actuarial gain/(loss) not recognised in books – – – – – – 72.03 (208.75)
8 Amount capitalized out of the above/recovered
from S&A – – – – – – – –
Total (1 to 8) 84.06 165.79 75.43 7.93 34.78 29.56 117.07 103.26
i Amount included in "Employee benefits
expense" 91.54 98.32 59.51 13.19 3.14 11.49 117.07 103.26
ii Amount included as part of "Finance cost" 4.97 (0.51) 22.14 21.60 26.92 25.28 – –
iii Amount included as part of "Other
comprehensive income" (12.45) 67.98 (6.22) (26.86) 4.72 (7.21) – –
iv Amount included in "Profit from discontinued
operations" – – – – – – – –
Total (i+ii+iii+iv) 84.06 165.79 75.43 7.93 34.78 29.56 117.07 103.26
Actual return on plan assets 89.25 16.64 – – – – 384.53 81.49

457
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone 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
31-3-2024 31-3-2023 31-3-2024 31-3-2023 31-3-2024 31-3-2023 31-3-2024 31-3-2023
Opening balance of the present value of defined
benefit obligation 860.66 775.41 305.50 313.02 375.27 371.56 3927.84 3618.59
Add: Current service cost 91.54 83.85 12.13 13.07 3.14 3.26 117.07 103.26
Add: Interest cost 51.18 43.76 22.14 21.60 26.92 25.28 312.49 290.25
Add: Contribution by plan participants
i) Employee – – – – – – 289.43 257.73
ii) Transfer-in/(out) (4.46) – (1.33) – – – 64.39 102.15
Add/(less): Actuarial (gains)/losses arising from
changes in:
i) Demographic assumptions 2.89 4.67 (30.85) (9.42) – – – –
ii) Financial assumptions 38.18 4.65 9.24 (17.52) 7.58 (11.57) – –
iii) Experience adjustments (10.48) 31.03 15.39 0.08 (2.86) 4.36 – –
Less: Benefit paid (92.17) (102.46) (15.98) (15.45) (27.79) (25.85) (534.99) (444.14)
Add: Past service cost – 14.47 47.38 0.12 – 8.23 – –
Add/(less): Translation adjustments 0.78 5.27 – – – – – –
Closing balance of the present value of defined
benefit obligation 938.11 860.66 363.62 305.50 382.26 375.27 4176.22 3927.84
d) The 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
31-3-2024 31-3-2023 31-3-2024 31-3-2023
Opening balance of the fair value of the plan assets 623.27 659.29 4014.74 3887.73
Add: Interest income on plan assets [1]
46.21 44.27 312.49 290.25
Add/(less): Actuarial gains/(losses)
Difference between actual return on plan assets and interest income 43.04 (27.63) 72.03 (208.75)
Add: Contribution by the employer 133.64 17.71 114.81 99.15
Add/(less): Transfer in/(out) (4.46) – 64.39 102.15
Add: Contribution by plan participants – – 315.95 288.36
Less: Benefits paid (70.83) (70.37) (534.99) (444.14)
Closing balance of the plan assets 770.87 623.27 4359.42 4014.74
[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 ¢ 47.56 crore (previous year: ¢ 133.64 crore) towards its gratuity plan and ¢ 132.84 crore (previous
year: ¢ 117.90 crore) towards its trust-managed provident fund plan during the year 2023-24.

458 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone 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 31-3-2024 As at 31-3-2023
Quoted Unquoted Total Quoted Unquoted Total
Cash and cash equivalents – 4.35 4.35 – 3.81 3.81
Equity instruments 46.51 – 46.51 23.23 – 23.23
Debt instruments - Corporate Bonds 249.22 – 249.22 216.55 – 216.55
Debt instruments - Central Government Bonds 125.73 – 125.73 106.87 – 106.87
Debt instruments - State Government Bonds 207.03 – 207.03 171.41 – 171.41
Debt instruments - PSU Bonds 17.85 – 17.85 19.02 – 19.02
Mutual funds - Equity 36.61 73.85 110.46 25.41 50.89 76.30
Mutual funds - Debt – 4.01 4.01 – – –
Fixed Deposits – 3.84 3.84 – 3.58 3.58
Special Deposit Scheme – 1.48 1.48 – 1.48 1.48
Others – 0.40 0.40 – 1.01 1.01
Closing balance of the plan assets 682.95 87.93 770.87 562.49 60.77 623.27

v crore
Trust-managed provident fund plan
Particulars As at 31-3-2024 As at 31-3-2023
Quoted Unquoted Total Quoted Unquoted Total
Cash and cash equivalents – 9.68 9.68 – 14.49 14.49
Equity instruments 216.31 – 216.31 134.26 – 134.26
Debt instruments - Corporate Bonds 1,451.74 – 1,451.74 1,284.87 – 1,284.87
Debt instruments - Central Government Bonds 461.94 – 461.94 497.76 – 497.76
Debt instruments - State Government Bonds 1,497.43 – 1,497.43 1,320.13 – 1,320.13
Debt instruments - PSU Bonds 144.70 – 144.70 257.22 – 257.22
Mutual funds - Equity 88.09 284.10 372.19 82.72 249.36 332.08
Mutual funds - Debt – 4.70 4.70 – – –
Special Deposit Scheme – 123.86 123.86 – 146.99 146.99
Invit Instruments 74.14 – 74.14 27.41 – 27.41
Other (Payables)/Receivables 1.15 1.57 2.72 – (0.47) (0.47)
Closing balance of the plan assets 3935.50 423.91 4359.42 3604.37 410.37 4014.74

f) The average duration (in number of years) of the defined benefit plan obligations at the Balance Sheet date is as follows:

Plans As at 31-3-2024 As at 31-3-2023

1) Gratuity plan 6.23 6.51
2) Post-retirement medical benefit plan 12.28 13.15
3) Company pension plan 7.26 7.25

459
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone 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 31-3-2024 As at 31-3-2023

i) Discount rate:
a) Gratuity plan 7.18% 7.46%
b) Post-retirement medical benefit plan 7.18% 7.46%
c) Company pension plan 7.18% 7.46%
ii) Annual increase in healthcare costs (refer Note vii below) 0.00% 5.00%
iii) Salary Growth rate:
a) Gratuity plan 7.00% 6.50%
b) Company pension plan 9.00% 9.00%
iv) Attrition Rate:
a) For gratuity plan the attrition rate varies from 2% to 12% (previous year: 2% to 12%) 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 14% (previous year: 1% to 13%) 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 recognized
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.
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
2023-24 2022-23 2023-24 2022-23
Impact of change in salary growth rate 53.44 52.30 (48.61) (47.23)
Impact of change in discount rate (48.12) (46.39) 54.09 52.45
(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
2023-24 2022-23 2023-24 2022-23
Impact of change in discount rate (25.84) (25.69) 29.46 29.35
(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
2023-24 2022-23 2023-24 2022-23
Impact of change in Health care cost 7.53 20.10 (7.85) (16.71)
Impact of change in discount rate (40.87) (36.60) 50.73 45.83

460 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone 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) above. 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.

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
¢ 72.50 crore (previous year ¢ 86.06 crore).

(ii) The Company’s manufacturing facility is eligible for certain incentives under the Investment Promotion Scheme 2014. Income accounted
towards such incentives amounts to ¢ 1.38 crore (Previous year Nil).

461
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone 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 Yes
4 L&T Aviation Services Private Limited WOS Yes
5 L&T Capital Company Limited WOS Yes
6 Larsen & Toubro International FZE WOS of L&T Global Holdings Limited Yes
7 L&T Global Holdings Limited WOS Yes
8 Larsen & Toubro Heavy Engineering LLC Subsidiary Yes
9 L&T Modular Fabrication Yard LLC Subsidiary Yes
10 PT Larsen & Toubro Hydrocarbon Engineering Indonesia[2] Subsidiary No
11 Larsen & Toubro Kuwait Construction General Contracting Subsidiary Yes
Company W.L.L.
12 Larsen Toubro Arabia LLC Subsidiary Yes
13 L&T Hydrocarbon Saudi Company WOS Yes
14 Larsen & Toubro Electromech LLC Subsidiary Yes
15 L&T Geostructure Private Limited Subsidiary Yes
16 L&T Geo – L&T JV for Maharatangarh project WOS of L&T Geostructure Private Limited No
17 L&T Geo – L&T UJV CMRL CS WOS of L&T Geostructure Private Limited No
18 L&T Infrastructure Engineering Limited[3] WOS Yes
19 Larsen & Toubro (Oman) LLC Subsidiary of Larsen & Toubro International FZE Yes
20 Larsen & Toubro Qatar LLC[4] WOS of Larsen & Toubro International FZE No
21 Larsen & Toubro Saudi Arabia LLC Subsidiary Yes
22 Larsen & Toubro T&D SA Proprietary Limited Subsidiary of Larsen & Toubro International FZE No
23 Larsen & Toubro (East Asia) SDN.BHD. WOS of Larsen & Toubro International FZE Yes
24 Hi-Tech Rock Products and Aggregates Limited WOS Yes
25 L&T Realty Developers Limited WOS Yes
26 L&T Innovation Campus (Chennai) Limited[5] WOS Yes
27 L&T Seawoods Limited WOS Yes
28 Elevated Avenue Realty LLP[6] WOS of L&T Seawoods Limited Yes
29 L&T Parel Project Private Limited WOS of L&T Seawoods Limited Yes
30 Chennai Vision Developers Private Limited WOS of L&T Realty Developers Limited No
31 L&T Westend Project LLP Subsidiary of L&T Realty Developers Limited No
32 Think Tower Developers Private Limited [7] Subsidiary of L&T Realty Developers Limited No
33 L&T Valves Limited WOS Yes
34 L&T Valves Arabia Manufacturing LLC WOS of L&T Valves Limited Yes
35 L&T Valves USA LLC WOS of L&T Valves Limited No
36 L&T Finance Holdings Limited [8] Subsidiary Yes
37 L&T Finance Limited [9] Subsidiary Yes
38 L&T Mutual Fund Trustee Limited [9] WOS of L&T Finance Limited Yes
39 L&T Infra Credit Limited [9] WOS of L&T Finance Limited Yes
40 L&T Infra Investment Partners Advisory Private Limited WOS of L&T Finance Limited Yes
41 L&T Infra Investment Partners Trustee Private Limited WOS of L&T Finance Limited Yes
42 L&T Financial Consultants Limited WOS of L&T Finance Limited Yes
43 Mudit Cement Private Limited [10] WOS of L&T Financial Consultants Limited Yes
44 L&T Infra Investment Partners Subsidiary of L&T Finance Limited No
45 LTIMindtree Limited Subsidiary Yes

462 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone 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)
46 LTIMindtree GMBH WOS of LTIMindtree Limited No
47 LTIMindtree Canada Limited WOS of LTIMindtree Limited No
48 LTIMindtree LLC WOS of LTIMindtree Limited No
49 LTIMindtree Financial Services Technologies Inc. WOS of LTIMindtree Limited No
50 LTIMindtree South Africa (Pty) Limited Subsidiary of LTIMindtree Limited No
51 LTIMindtree Information Technology Services(Shanghai) Co, Ltd.[11] WOS of LTIMindtree Limited No
52 LTIMindtree Spain, S.L [12] WOS of LTIMindtree Limited No
53 LTIMindtree, Sociedad De Responsibilidad Limitada De Capital WOS of LTIMindtree Limited No
Variable
54 LTIMindtree Norge AS WOS of LTIMindtree Limited No
55 LTIMindtree S.A.[13] WOS of LTIMindtree GmbH No
56 Syncordis France SARL WOS of Syncordis S.A. No
57 Syncordis Limited WOS of Syncordis S.A. No
58 LTIMindtree PSF S.A.[14] WOS of Syncordis S.A. No
59 Nielsen+Partner Unternehmensberater GmbH WOS of LTIMindtree GmbH No
60 LTIMindtree Swizerland AG [15] WOS of Nielsen+Partner Unternehmensberater GmbH No
61 Nielsen+Partner Pte Ltd WOS of Nielsen+Partner Unternehmensberater GmbH No
62 LTIMindtree (Thailand) Limited [16] WOS of Nielsen+Partner Unternehmensberater GmbH No
63 Nielsen&Partner Pty Ltd WOS of Nielsen+Partner Unternehmensberater GmbH No
64 LTIMindtree USA Inc.[17] WOS of Lymbyc Solutions Private Limited No
65 Lymbyc Solutions Private Limited [18] WOS of LTIMindtree Limited No
66 Powerup Cloud Technologies Private Limited [18] WOS of LTIMindtree Limited No
67 LTIMindtree UK Limited WOS of LTIMindtree Limited No
68 LTIMindtree Middle East FZ-LLC WOS of LTIMindtree Limited No
69 L&T Technology Services Limited Subsidiary Yes
70 L&T Thales Technology Services Private Limited Subsidiary of L&T Technology Services Limited Yes
71 Esencia Technologies India Private Limited[19] WOS of L&T Technology Services Limited No
72 L&T Technology Services LLC WOS of L&T Technology Services Limited Yes
73 Graphene Semiconductor Services Private Limited [19] WOS of L&T Technology Services Limited No
74 L&T Technology Services Pte. Ltd. WOS of L&T Technology Services Limited No
75 Graphene Solutions SDN. BHD. WOS of L&T Technology Services Limited No
76 Graphene Solutions Taiwan Limited WOS of L&T Technology Services Limited No
77 Seastar Labs Private Limited[19] WOS of L&T Technology Services Limited No
78 L&T Technology Services (Shanghai) Co. Ltd. WOS of L&T Technology Services Limited No
79 L&T Technology Services (Canada) Ltd WOS of L&T Technology Services LLC No
80 Orchestra Technology, Inc.[20] WOS of L&T Technology Services LLC No
81 Mindtree Software (Shanghai) Co., Limited (‘MSSCL’), Republic of WOS of LTIMindtree Limited No
China[21]
82 L&T Power Development Limited WOS Yes
83 L&T Arunachal Hydropower Limited[22] WOS of L&T Power Development Limited No
84 L&T Himachal Hydropower Limited WOS of L&T Power Development Limited No
85 Nabha Power Limited WOS of L&T Power Development Limited Yes
86 L&T Metro Rail (Hyderabad) Limited[23] Subsidiary Yes
87 Cuelogic Technologies Private Limited[18] Subsidiary of LTIMindtree Limited No
88 Cuelogic Technologies Inc.[24] Subsidiary of Cuelogic Technologies Private Limited No
89 L&T Network Services Private Limited WOS Yes
90 Prime Techpark (Chennai) Private Limited WOS No
91 L&T Energy Hydrocarbon Engineering Limited WOS Yes

463
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone 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)
92 Millennium Techpark (Chennai) Private Limited[25] Subsidiary of L&T Seawoods Limited No
93 Chennai Nova Techpark Private Limited[26] Subsidiary of L&T Seawoods Limited No
94 Bangalore Galaxy Techpark Private Limited[27] WOS of L&T Realty Developers Limited No
95 Bangalore Spectrum Techpark Private Limited[28] WOS of L&T Realty Developers Limited No
96 Avenue Techpark (Bangalore) Private Limited[29] WOS of L&T Realty Developers Limited No
97 Bangalore Fortune Techpark Private Limited[30] WOS of L&T Realty Developers Limited No
98 Business Park (Powai) Private Limited[31] WOS Yes
99 Corporate Park (Powai) Private Limited[30] WOS Yes
100 L&T Electrolysers Limited[32] WOS of L&T Energy Green Tech Limited Yes
101 LH Residential Housing Private Limited[33] WOS of L&T Realty Developers Limited Yes
102 L&T Semiconductor Technologies Limited[34] WOS Yes
103 L&T Offshore Private Limited[35] WOS Yes
104 LH Uttarayan Premium Realty Private Limited[36] WOS of L&T Realty Developers Limited No
105 L&T Technology Services Poland spółka z ograniczoną WOS of L&T Technology Limited No
odpowiedzialnością [37]
106 PT Larsen and Toubro WOS Yes
107 L&T Energy Green Tech Limited [38] WOS Yes
[1]
Struck off from register of companies w.e.f August 08,2023
[2]
Liquidated w.e.f July 10, 2023
[3]
Divested w.e.f January 3,2024
[4]
In process of liquidation
[5]
Merged with L&T Seawoods Limited on April 1, 2023
[6]
Formerly known as L&T Avenue Realty LLP
[7]
Divested w.e.f April 17, 2023
[8]
Renamed as L&T Finance Limited
[9]
Merged with L&T Finance Holdings Limited w.e.f. April 1, 2023 and post-merger the resultant entity is renamed as L&T Finance Limited.
[10]
The Group divested w.e.f. September 26,2023
[11]
Formerly known as L&T Information Technology Services (Shanghai) Co., Ltd.
[12]
Formerly known as L&T Information Technology Spain SL
[13]
Formerly known as Syncordis S.A.
[14]
Formerly known as Syncordis PSF S.A.
[15]
Formerly known as Nielsen+Partner Unternehmensberater AG
[16]
Formerly known as Nielsen&Partner Company Limited
[17]
Formerly known as Lymbyc Solutions Inc.
[18]
Merged with LTIMindtree Limited w.e.f April 1,2023
[19]
Merged with L&T Technology Services Limited w.e.f. April 1, 2022
[20]
Merged with L&T Technology Services LLC on February 1, 2024
[21]
Liquidated w.e.f. August 26, 2023
[22]
Struck off from register of companies w.e.f July 21,2023
[23]
One equity share (the Golden Share) is held by the Government of Telangana in pursuance of the Shareholders’ Agreement
[24]
Liquidated w.e.f. April 26, 2023
[25]
Incorporated on April 30,2023
[26]
Incorporated on April 17,2023
[27]
Incorporated on April 13,2023
[28]
Incorporated on April 12,2023
[29]
Incorporated on April 10,2023
[30]
Incorporated on May 01,2023
[31]
Incorporated on April 20,2023
[32]
Incorporated on June 27,2023
[33]
Incorporated on July 31,2023 and formerly known as LH Residential Housing Limited
[34]
Incorporated on November 29,2023
[35]
Reclassified as subsidiary w.e.f December 27, 2023 and formerly known as L&T Sapura Offshore Private Limited
[36]
Incorporated on February 17,2024
[37]
Incorporated on October 30,2023
[38]
During the year balance stake is purchased and entity became a wholly-owned subsidiary

464 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone 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
(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 - MHI Power Boilers Private Limited
3 L&T - MHI Power Turbine Generators Private Limited 4 Raykal Aluminium Company Private Limited
5 L&T Special Steels and Heavy Forgings Private Limited 6 L&T Howden Private Limited
7 L&T Sapura Shipping Private Limited 8 L&T Infrastructure Development Projects Limited[1]
9 Panipat Elevated Corridor Limited [1]
10 GH4 India Private Limited [3]

11 L&T Interstate Road Corridor Limited [1]

12 L&T Transportation Infrastructure Limited [1]
13 L&T MBDA Missile Systems Limited 14 Ahmedabad-Maliya Tollway Limited [1]

15 L&T Samakhiali Gandhidham Tollway Limited [1]

16 L&T Deccan Tollways Limited [1]

17 Kudgi Transmission Limited [1]

18 L&T Sambalpur-Rourkela Tollway Limited [1]

19 L&T Rajkot-Vadinar Tollway Limited [1]

20 L&T Hydrocarbon Caspian LLC [2]

Divested w.e.f. April 10, 2024

[1] [2]
Liquidated w.e.f September 25, 2023
[3] Incorporated on August 25, 2023.

(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 Staff 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

Sr. No Superannuation Trust

1 Larsen & Toubro Limited Senior Officers’ Superannuation Scheme
(iv) Name of key management personnel and close member of their family with whom transactions were carried out during the year:
(i) Executive Director:

Sr. No Sr. No
1 Mr. S. N. Subrahmanyan (Chairman & Managing 2 Mr. R. Shankar Raman (Whole‐time Director & Chief
Director) [1] Financial Officer)
3 Mr. Subramanian Sarma (Whole-time Director) 4 Mr. D. K. Sen (Whole‐time Director) [2]

5 Mr. M. V. Satish (Whole‐time Director) [3]

6 Mr. S.V. Desai (Whole-time Director)
7 Mr. T. Madhava Das (Whole-time Director) 8 Mr. Anil Parab (Whole-time Director) [4]

[1]
Designated as Chairman w.e.f. October 1, 2023 [2]
Ceased to be Whole-time Director w.e.f. April 7, 2023
[3]
Ceased to be Whole-time Director w.e.f. April 7, 2024 [4]
Appointed w.e.f. August 5, 2022

465
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
(ii) Non-executive/Independent Directors
Sr. No Name Sr. No Name
1 Mr. A.M. Naik (Non-executive Chairman) [1] 2 Mr. M. M. Chitale (Independent Director) [2]
3 Mr. M. Damodaran (Independent Director) [2] 4 Mr. Vikram Singh Mehta (Independent Director) [2]
5 Mr. Adil Siraj Zainulbhai (Independent Director) 6 Mr. Sanjeev Aga (Independent Director)
7 Mr. Narayanan Kumar (Independent Director) 8 Mr. Hemant Bhargava (Nominee of Life Insurance
Corporation of India)
9 Ms. Preetha Reddy (Independent Director) 10 Mr. Pramit Jhaveri (Independent Director)
11 Mr. Jyoti Sagar (Independent Director) [3] 12 Mr. Rajnish Kumar (Independent Director) [3]
13 Mr. Ajay Tyagi (Independent Director) [4] 14 Mr. P. R. Ramesh (Independent Director) [4]
[1]
Ceased to be Non-executive Chairman w.e.f. September 30, [2]
Ceased w.e.f. March 31, 2024 on account of completion of
2023 tenure.
[3]
Appointed w.e.f. May 10, 2023 [4]
Appointed w.e.f. October 31, 2023
(iii) Company secretary
Sr. No Name
1 Mr. Sivaram Nair A
(iv) Close member of Key Management Personnel's (KMP's) family with whom transactions were carried out during the year:
Sr. No Name Sr. No Name
1 Ms. Meena Subrahmanyan 2 Ms. Vasanti Narayanan
3 Mr. Ajinkya Anil Parab 4 Ms. Sulabha Anil Parab
5 Ms. Smita Narayan Sarang 6 Ms. Bhagyasree Joshi
7 Mr. Anand V Desai 8 Ms. Kalavathi S Desai
9 Mr. Raghavendra V Desai 10 Ms. Madhuri Subhash Gadre
11 Mr. Saurabh Mukund Chitale 12 Mr. Sushrut Mukund Chitale
13 Mr. M.V. Srinath 14 Ms. Vasanti Satish
15 Ms. Hamida Zainulbhai 16 Ms. Mukeeta Pramit Jhaveri
17 Mr. Harshad Reddy 18 Mr. Uday Singh Mehta
(c) Disclosure of related party transactions:
v crore
2023-24 2022-23
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: 2253.72 1440.82
L&T Modular Fabrication Yard LLC 1059.01 371.51
L&T Geostructure Private Limited 240.98 225.89
Larsen & Toubro Electromech LLC 186.57
L&T Valves Limited 150.53
Larsen & Toubro (Oman) LLC 150.38
L&T Energy Hydrocarbon Engineering Limited 282.31
Joint ventures, including: 867.78 1167.22
L&T - MHI Power Boilers Private Limited 332.03 479.31
L&T Special Steels and Heavy Forgings Private Limited 457.43 338.01
L&T Energy Hydrocarbon Engineering Limited 172.01
L&T - MHI Power Turbine Generators Private Limited 124.97
Associates, including: 25.41 25.48
Magtorq Private Limited 25.41 25.06
Total 3146.91 2633.52

466 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
v crore
2023-24 2022-23
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: 896.76 717.51
LTIMindtree Limited 237.98
Nabha Power Limited 176.90
L&T Realty Developers Limited 196.07 116.01
Larsen & Toubro (East Asia) SDN. BHD. 265.05 84.83
Larsen & Toubro International FZE 129.00
Joint ventures, including: 38.24 101.34
L&T - MHI Power Boilers Private Limited 23.56 74.96
L&T MBDA Missile Systems Limited 4.69 17.53
L&T Special Steels and Heavy Forgings Private Limited 9.99
Total 935.00 818.85
ii. (b) Reversal of sale of goods/contract revenue & services
Subsidiaries: 9.72
L&T Seawoods Limited 6.59
L&T Metro Rail (Hyderabad) Limited 3.13
Total 9.72
iii. Purchase/lease of property, plant and equipment
Subsidiaries, including: 132.15 54.82
L&T Construction Equipment Limited 113.06 25.82
L&T Geostructure Private Limited 18.86
LTIMindtree Limited 6.69
Joint venture: 0.42 0.05
L&T-Sargent & Lundy Limited 0.05
L&T - MHI Power Turbine Generators Private Limited 0.42
Total 132.57 54.87
iv. Sale of property, plant and equipment
Subsidiaries, including: 22.25 0.80
Larsen & Toubro Saudi Arabia LLC 0.78
L&T Geostructure Private Limited 20.36
Total 22.25 0.80
v. Investments including subscription to equity and preference shares (equity
portion)
Subsidiaries, including: 3718.70 1371.96
L&T Metro Rail (Hyderabad) Limited 3654.00 1320.00
Joint venture: 1.00 0.04
L&T Infrastructure Development Projects Limited 0.04
GH4India Private Limited 1.00
Total 3719.70 1372.00

467
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
v crore
2023-24 2022-23
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
vi. Divestment of stake to/capital reduction in:
Subsidiaries, including: 0.05 1126.05
L&T Power Development Limited 823.04
L&T Seawoods Limited 300.00
L&T Energy Green Tech Limited 0.05
Joint venture: 129.26
L&T Infrastructure Development Projects Limited 128.88
Total 129.31 1126.05
vii. Business Transfer to:
Subsidiaries 800.00
L&T Technology Services Limited 800.00

viii. Inter corporate deposits and loans given to

Subsidiaries, including: 709.75 5603.77
L&T Metro Rail (Hyderabad) Limited 564.00
Nabha Power Limited 110.21 5435.77
Total 709.75 5603.77
ix. Inter corporate deposits and loans repaid by
Subsidiaries, including: 3139.80 6655.67
Nabha Power Limited 5307.67
L&T Metro Rail (Hyderabad) Limited 3059.03 1094.97
Joint ventures: 151.72 14.07
L&T Sapura Shipping Private Limited 151.72 14.07
Total 3291.52 6669.74
x. Inter corporate borrowing taken from
Subsidiaries, including: 8195.49 3979.92
L&T Realty Developers Limited 2880.50 1296.50
L&T Seawoods Limited 3334.72 1251.71
L&T Power Development Limited 908.70
L&T Parel Project Private Limited 914.50
Joint venture: 557.16 1283.65
L&T - MHI Power Turbine Generators Private Limited 224.16 755.15
L&T MBDA Missile Systems Limited 333.00 528.50
Total 8752.65 5263.57
xi. Inter corporate borrowing repaid to
Subsidiaries, including: 7047.70 4062.68
L&T Realty Developers Limited 2620.50 1296.50
L&T Seawoods Limited 2894.72 1251.71
L&T Power Development Limited 908.70
L&T Parel Project Private Limited 780.50
Joint venture: 551.56 1271.90
L&T - MHI Power Turbine Generators Private Limited 220.56 715.15
L&T MBDA Missile Systems Limited 331.00 556.75
Total 7599.26 5334.58

468 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
v crore
2023-24 2022-23
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
xii. Charges paid for miscellaneous services
Subsidiaries, including: 281.59 277.03
LTIMindtree Limited 199.34 215.18
L&T Technology Services Limited 29.90
L&T Aviation Services Private Limited 29.40
L&T Energy Hydrocarbon Engineering Limited 35.73
Joint ventures, including: 9.04 26.45
L&T- Chiyoda Limited 18.69
L&T Sargent & Lundy Limited 7.83 6.30
L&T - MHI Power Boilers Private Limited 1.15
Total 290.63 303.48
xiii. Rent paid, including lease rentals under leasing/hire purchase arrangements
Subsidiaries, including: 2.06 1.07
L&T Geostructure Private Limited 0.72
L&T Hydrocarbon Saudi Company 0.35
L&T Valves Limited 1.50
L&T Metro Rail (Hyderabad) Limited 0.29
Joint ventures, including: 31.64 38.22
L&T Sapura Shipping Private Limited 18.29 28.45
L&T - MHI Power Turbine Generators Private Limited 9.24 8.93
Total 33.70 39.29
xiv. Rent received, overheads recovered and miscellaneous income
Subsidiaries, including: 527.88 345.43
LTIMindtree Limited 159.54 116.53
L&T Technology Services Limited 75.78 54.64
L&T Finance Limited 126.39
Joint ventures, including: 74.04 97.02
L&T - MHI Power Boilers Private Limited 28.83 37.62
L&T Energy Hydrocarbon Engineering Limited 13.66
L&T Sargent & Lundy Limited 12.60 11.66
L&T - MHI Power Turbine Generators Private Limited 9.42 10.20
L&T Infrastructure Development Projects Limited 7.84
Total 601.92 442.45
xv.(a) Charges incurred for deputation of employees from related parties
Subsidiaries, including: 0.51
L&T Realty Developers Limited 0.51
Total 0.51

469
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
v crore
2023-24 2022-23
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
xv.(b) Charges recovered for deputation of employees to related parties
Subsidiaries, including: 110.41 82.05
L&T Geostructure Private Limited 19.98 19.02
Elevated Avenue Realty LLP 22.38 17.96
L&T Realty Developers Limited 18.65 14.62
L&T Seawoods Limited 15.54 12.28
Joint ventures: 9.71 7.50
L&T Sapura Shipping Private Limited 7.76 5.59
L&T Infrastructure Development Projects Limited 0.98
L&T Special Steels and Heavy Forgings Private Limited 1.03 0.93
Total 120.12 89.55
xvi. Dividend received
Subsidiaries, including: 2519.42 1568.08
LTIMindtree Limited 1219.02 1067.12
L&T Technology Services Limited 366.54 233.96
L&T Finance Limited 327.85
Joint ventures, including: 129.83 144.34
L&T - MHI Power Boilers Private Limited 119.39
L&T Infrastructure Development Projects Limited 112.24
Total 2649.25 1712.42
xvii. Buyback of shares
Key Management Personnel, including: 20.14
Mr. R. Shankar Raman 10.20
Mr. Subramanian Sarma 5.47
Mr. Anil Parab 3.20
Close member of KMP's family, including: 2.62
Ms. Meena Subrahmanyan 2.61
Total 22.76
xviii. Dividend Paid
Key Management Personnel, including: 4.93 3.66
Mr. A.M Naik 1.88 1.38
Mr. R. Shankar Raman 0.99 0.72
Mr. S. N. Subrahmanyan 0.80 0.58
Mr. Subramanian Sarma 0.53
Close member of KMP's family, including: 0.32 0.23
Ms. Meena Subrahmanyan 0.25 0.19
Total 5.25 3.89
xix Commission received, including those under agency arrangements
Subsidiary: 11.43 11.03
L&T Construction Equipment Limited 11.43 11.03
Total 11.43 11.03

470 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
v crore
2023-24 2022-23
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
xx Guarantee charges recovered from
Subsidiaries, including: 263.34 148.26
L&T Hydrocarbon Saudi Company 67.98 55.64
L&T Metro Rail (Hyderabad) Limited 30.31 30.16
Larsen & Toubro Saudi Arabia LLC 53.40
Larsen Toubro Arabia LLC 45.41 30.74
Larsen & Toubro International FZE 62.98
Joint venture: 0.67 0.79
L&T - MHI Power Turbine Generators Private Limited 0.67 0.79
Total 264.01 149.05
xxi Interest paid to
Subsidiaries, including: 77.42 47.68
L&T Seawoods Limited 28.53 15.39
L&T Valves Limited 10.57
L&T Power Development Limited 9.80
L&T Realty Developers Limited 26.15 18.44
L&T Parel Project Private Limited 8.92
Joint ventures: 12.82 12.38
L&T MBDA Missile Systems Limited 11.64 10.02
L&T - MHI Power Turbine Generators Private Limited 2.36
Total 90.24 60.06
xxii Interest received from
Subsidiaries, including: 307.86 541.40
L&T Metro Rail (Hyderabad) Limited 223.52 375.69
L&T Finance Limited 42.41 72.42
Nabha Power Limited 33.92 86.87
Joint ventures: 81.22 100.48
L&T Sapura Shipping Private Limited 18.07 15.60
L&T Special Steels and Heavy Forgings Private Limited 27.19
Kudgi Transmission Limited 58.31 57.68
Total 389.08 641.88
xxiii Amount written off as bad debts
Joint venture: 20.37
L&T - MHI Power Boilers Private Limited 20.37
Total 20.37

471
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
v crore
2023-24 2022-23
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
xxiv Amount recognised/(reversed) in Profit or Loss as provision towards bad
and doubtful debts (including expected credit loss)
Subsidiaries, including: 1.96 12.55
Larsen Toubro Arabia LLC (13.45) 6.59
L&T Hydrocarbon Saudi Company 1.77 3.38
L&T Metro Rail (Hyderabad) Limited 10.90 5.04
L&T Modular Fabrication Yard LLC 1.79
Elevated Avenue Realty LLP (3.31)
L&T Offshore Private Limited 4.96
L&T Innovation Campus (Chennai) Limited (0.49)
L&T Technology Services Limited (0.21)
Joint ventures, including: (27.32) 3.13
L&T Sapura Offshore Private Limited (5.08)
L&T Deccan Tollways Limited 1.73
L&T - MHI Power Boilers Private Limited (22.41) 0.79
L&T Infrastructure Development Projects Limited 0.45
Total (25.36) 15.68
xxv Amount recognised in Profit or Loss on account of impairment/(reversal of
impairment) loss on investment and inter corporate deposit
Subsidiaries, including: (70.24) (891.86)
Larsen & Toubro Heavy Engineering LLC (70.24)
L&T Power Development Limited (668.00)
L&T Hydrocarbon Saudi Company (182.31)
Joint ventures, 47.03
L&T Infrastructure Development Projects Limited 47.03
Total (23.20) (891.86)
xxvi Guarantee given on behalf of
Subsidiaries, including: 52856.46 39586.86
Larsen & Toubro International FZE 20343.96
Larsen & Toubro Saudi Arabia LLC 14210.16
L&T Hydrocarbon Saudi Company 40531.36
Larsen Toubro Arabia LLC 7732.06
Total 52856.46 39586.86
xxvii Contribution to post employment benefit plans
(a) Towards employer’s contribution to provident fund trusts, including: 116.39 100.63
Larsen & Toubro Officers & Supervisory Staff Provident Fund 105.60 90.79
Total 116.39 100.63
(b) Towards employer’s contribution to gratuity fund trusts: 133.64 17.71
Laresen & Toubro Officers & Supervisors Gratuity Fund 123.95 14.20
Larsen & Toubro Gratuity Fund 9.69 3.51
Total 133.64 17.71
(c) Towards employer’s contribution to superannuation trust: 16.09 15.84
Larsen & Toubro Limited Senior Officers' Superannuation Scheme 16.09 15.84
Total 16.09 15.84
"Major parties" denote entities accounting for 10% or more of the aggregate for that category of transaction during respective year.

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Notes forming part of the Standalone Financial Statements (contd.)

NOTE [47]
Disclosure of related parties/related party transactions pursuant to Ind AS 24 “Related Party Disclosures” (contd.)
xxviii. Compensation/benefits to key management personnel:

v crore
2023-24 2022-23

Key Management Personnel Short-term Post- ESOP granted Short-term Post-

Other Long Other Long
employee employment during the Total employee employment Total
benefits term benefit term benefit
benefits year [5] benefits benefits
Executive Directors:
(a) Mr. S.N.Subrahmanyan 39.15 10.50 32.40 82.05 27.54 7.36 34.90
(b) Mr. R. Shankar Raman 24.26 6.50 30.76 17.10 4.57 21.67
(c) Mr. D. K. Sen 0.21 15.31 [1] 6.94 [2] 22.46 9.52 2.52 12.04
(d) Mr. M. V. Satish 10.53 2.78 13.31 9.55 2.51 12.06
(e) Mr. J.D. Patil 2.12 18.31 [4] 10.98 [2] 31.41
(f) Mr. Subramanian Sarma 20.81 5.57 26.38 14.57 3.89 18.46
(g) Mr. S.V.Desai 14.82 3.95 9.26 28.03 10.41 2.76 13.17
(h) Mr. T. Madhava Das 14.47 3.86 18.33 8.92 2.36 11.28
(i) Mr. Anil Parab 9.85 2.61 12.46 4.28 1.11 5.39
Non-executive Directors:
(a) Mr. A.M. Naik 1.69 1.50 [3] 3.19 3.36 3.00 [3] 6.36
(b) Other Non-executive Directors 5.12 5.12 4.39 – 4.39
(c) Sivaram Nair A (Company Secretary) 1.70 0.02 1.72 1.57 0.02 1.59
Total 142.61 52.60 6.94 41.66 243.81 113.33 48.41 10.98 172.72
Post employment benefits include gratuity ¢ 15.25 crore
[1]

[2] Represents encashment of past service accumulated leave

[3] Represents pension
[4] Post employment benefits include gratuity ¢ 17.75 crore
[5] Represents fair value of ESOPs granted during the year which will be vested equally over a period of 4 years.

(d) Amount due to/from related parties:

v crore
As at 31-3-2024 As at 31-3-2023
Sr. Amounts Amounts
Category of balance/relationship/parties
No. Amount for major Amount for major
parties parties
i. Accounts receivable
Subsidiaries, including: 1350.88 1383.77
L&T Metro Rail (Hyderabad) Limited 729.66 728.14
L&T Geostructure Private Limited 241.50 239.11
Joint ventures , including: 29.28 93.42
L&T - MHI Power Boilers Private Limited 17.78 83.68
L&T Special Steels and Heavy Forgings Private Limited 3.19
Total 1380.16 1477.19

473
 Notes forming part of the
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Notes forming part of the Standalone 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 31-3-2024 As at 31-3-2023
Sr. Amounts Amounts
Category of balance/relationship/parties
No. Amount for major Amount for major
parties parties
ii. Accounts payables, including other payables
Subsidiaries, including: 1329.05 893.90
L&T Modular Fabrication Yard LLC 248.23 140.54
Larsen Toubro Arabia LLC 168.35 91.89
L&T Geostructure Private Limited 164.04 172.17
Larsen & Toubro Saudi Arabia LLC 171.72
Larsen and Toubro (Oman) LLC 90.41
L&T Technology Services Limited 148.23
Joint ventures , including: 1264.42 1459.61
L&T - MHI Power Boilers Private Limited 750.42 760.83
L&T - MHI Power Turbine Generators Private Limited 266.85 453.44
L&T Special Steels and Heavy Forgings Private Limited 210.84
Associates, including: 5.61 6.00
Magtorq Private Limited 5.22 5.61
Total 2599.08 2359.51
iii. Investment in debt securities [including preference shares (debt portion)]
Subsidiaries: 758.90 2038.24
L&T Metro Rail (Hyderabad) Limited 436.36 1078.31
L&T Finance Limited 322.55 959.92
Joint ventures: 949.43 955.56
L&T Special Steels and Heavy Forgings Private Limited 213.17 213.17
Kudgi Transmission Limited 736.26 742.39
Total 1708.33 2993.80
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
v. Loans & advances recoverable
Subsidiaries, including: 1526.93 4013.06
L&T Metro Rail (Hyderabad) Limited 2861.92
L&T Geostructure Private Limited 228.82
Nabha Power Limited 385.96
Larsen & Toubro Saudi Arabia LLC 268.54
Joint ventures , including: 2035.90 2316.94
L&T Special Steels and Heavy Forgings Private Limited 1790.93 1829.14
L&T Sapura Shipping Private Limited 208.23 345.96
Associates, including: 4.10 5.26
Magtorq Private Limited 3.86 5.05
Total 3566.93 6335.26

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Standalone 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 31-3-2024 As at 31-3-2023
Sr. Amounts Amounts
Category of balance/relationship/parties
No. Amount for major Amount for major
parties parties
vi. Impairment loss on loans & advances recoverable
Subsidiaries, including: 6.50 86.78
L&T Offshore Private Limited 5.08
Larsen & Toubro Heavy Engineering LLC 81.50
Joint venture, including: 1731.25 1736.44
L&T Special Steels and Heavy Forgings Private Limited 1730.38 1730.38
Total 1737.75 1823.22
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 taken (including lease finance)
Subsidiaries: 1149.41 1.23
L&T Energy Green Tech Limited 1.23
L&T Valves Limited 270.10
L&T Seawoods Limited 440.16
L&T Parel Project Private Limited 134.05
L&T Realty Developers Limited 260.09
Joint venture: 207.67 202.04
L&T MBDA Missile Systems Limited 164.06 162.03
L&T - MHI Power Turbine Generators Private Limited 43.62 40.01
Total 1357.08 203.27
ix. Advances received in the capacity of supplier of goods/services classified as
“Advances from customers” in the Balance Sheet
Subsidiaries, including: 91.63 169.78
L&T Realty Developers Limited 40.36 64.62
L&T Technology Services Limited 48.57
LTIMindtree Limited 18.73 28.00
Larsen & Toubro International FZE 9.58 17.82
Larsen & Toubro (East Asia) SDN. BHD. 17.03
Joint venture: 2.39 5.70
L&T - MHI Power Boilers Private Limited 2.39 5.70
Close member of KMP's family: 0.11 –
Ms. Meena Subrahmanyan 0.11 –
Total 94.13 175.48
x. Due to directors [1]:
Key management personnel, including: 123.61 92.20
Mr. S. N. Subrahmanyan 35.28 24.10
Mr. R. Shankar Raman 21.83 14.82
Mr. Anil Parab 8.62 3.50
Mr. D. K. Sen 0.18 7.75
Mr. M. V. Satish 8.57 7.72
Mr. J.D. Patil 1.73
Mr. Subramanian Sarma 18.56 12.44
Mr. S.V.Desai 13.41 9.07
Mr. T. Madhava Das 13.06 7.60
Total 123.61 92.20

[1]
Includes commission due to non-executive directors ¢ 4.10 crore (previous year: ¢ 3.47 crore).

475
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone 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 31-3-2024 As at 31-3-2023
Sr. Amounts Amounts
Category of balance/relationship/parties
No. Amount for major Amount for major
parties parties
xi. Post employment benefit plan
(a) Due to provident fund trusts, including: 51.30 47.49
Larsen & Toubro Officers & Supervisory Staff Provident Fund 47.99 44.34
Total 51.30 47.49
(b) Due to gratuity trusts: 47.56 133.64
Larsen & Toubro Officers & Supervisors Gratuity Fund 44.12 107.15
Larsen & Toubro Gratuity Fund 3.45 26.49
Total 47.56 133.64
(c) Due to superannuation trust: 17.93 10.65
Larsen & Toubro Limited Senior Officers' Superannuation Scheme 17.93 10.65
Total 17.93 10.65
xii.(a) Capital commitment given
Subsidiaries, including: 31.70 119.00
L&T Construction Equipment Limited 20.60 112.03
LTIMindtree Limited 9.92
Total 31.70 119.00
xii.(b) Revenue commitment given
Subsidiaries, including: 3225.26 1076.11
L&T Geostructure Private Limited 496.85
L&T Valves Limited 167.69
L&T Modular Fabrication Yard LLC 144.13
Larsen & Toubro Saudi Arabia LLC 1500.57
L&T Energy Hydrocarbon Engineering LTD 785.67
Joint ventures , including: 1023.63 1285.83
L&T - MHI Power Boilers Private Limited 569.94 652.15
L&T Special Steels and Heavy Forgings Private Limited 370.22 556.15
Associates, including: 31.76 41.38
Magtorq Private Limited 31.76 40.94
Total 4280.65 2403.32
xiii. Commitment to Fund[2]
Subsidiary: 239.25 349.47
Nabha Power Limited 239.25 349.47
Total 239.25 349.47
xiv. Revenue commitment received
Subsidiaries, including: 2007.30 1808.54
LTIMindtree Limited 671.49 407.01
Nabha Power Limited 210.73
L&T Realty Developers Limited 308.11
Larsen & Toubro (East Asia) SDN. BHD. 660.54 466.09
LTFZE - Infrastructure Contracts 257.58
L&T Innovation Campus (Chennai) Limited 220.12
Joint ventures , including: 15.48 43.46
L&T - MHI Power Boilers Private Limited 10.68 34.04
L&T MBDA Missile Systems Limited 4.80 9.38
Close Member of KMP's family: 7.68 –
Ms. Meena Subrahmanyan 7.68 –
Total 2030.46 1852.00

476 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Standalone 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 31-3-2024 As at 31-3-2023
Sr. Amounts Amounts
Category of balance/relationship/parties
No. Amount for major Amount for major
parties parties
xv. Guarantee given on behalf of
Subsidiaries, including: 129527.23 77408.90
L&T Hydrocarbon Saudi Company 60762.23 31895.83
Larsen Toubro Arabia LLC 18587.34 11071.24
Larsen & Toubro Saudi Arabia LLC 18946.29
L&T Metro Rail (Hyderabad) Limited 8616.00
Larsen & Toubro International FZE 21154.05 20840.82
Joint ventures , including: 243.22 311.92
L&T - MHI Power Turbine Generators Private Limited 210.56 276.58
Total 129770.45 77720.82
xvi. Provision towards expected credit loss related to the amount of outstanding
balances
Subsidiaries, including: 85.06 84.13
L&T Metro Rail (Hyderabad) Limited 41.82 30.89
Larsen Toubro Arabia LLC 21.09 34.54
L&T Hydrocarbon Saudi Company 16.18 14.41
Joint ventures , including: 2.74 25.15
L&T - MHI Power Boilers Private Limited 22.61
L&T - MHI Power Turbine Generators Private Limited 0.36
L&T Infrastructure Development Projects Limited 0.45
L&T Deccan Tollways Limited 1.73
Total 87.80 109.28
“Major parties” denote entities account for 10% or more of the aggregate for that category of balance during respective year.
[2]
D
 uring the year, the Company had provided a revolving line of credit facility of ¢ 1000 crore to L&T Finance Limited as a stand-by liquidity
support arrangement (the “Facility”), valid upto March 31, 2024. The utilisation against the Facility is NIL as at March 31, 2024.

Notes:
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.

477
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone 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 31-3-2024 As at 31-3-2023
Proportion Proportion
Principal place of Proportion of of effective Proportion of of effective
Sr. Name of the subsidiary
business direct ownership direct ownership
No. ownership (%) interest /voting ownership (%) interest /voting
power(%) power(%)
Indian subsidiaries
1 Bhilai Power Supply Company Limited India 99.90 99.90 99.90 99.90
2 L&T Innovation Campus (Chennai) Limited [1] India – – 100.00 100.00
3 Hi-Tech Rock Products & Aggregates Limited India 100.00 100.00 100.00 100.00
4 L&T Seawoods Limited India 100.00 100.00 100.00 100.00
5 Kesun Iron & Steel Company Private Limited [2] India – – 95.00 95.00
6 L&T Geostructure Private Limited India 99.00 100.00 99.00 100.00
7 L&T Valves Limited India 100.00 100.00 100.00 100.00
8 L&T Energy Green Tech Limited India 100.00 100.00 99.99 99.99
9 L&T Aviation Services Private Limited India 100.00 100.00 100.00 100.00
10 LTIMindtree Limited India 68.64 68.64 68.68 68.68
11 L&T Finance Limited India 65.86 65.86 66.11 66.11
12 L&T Capital Company Limited India 100.00 100.00 100.00 100.00
13 L&T Power Development Limited India 100.00 100.00 100.00 100.00
14 L&T Metro Rail (Hyderabad) Limited [3] India 99.99 99.99 99.99 99.99
15 L&T Technology Services Limited India 73.74 73.74 73.85 73.85
16 L&T Construction Equipment Limited India 100.00 100.00 100.00 100.00
17 L&T Infrastructure Engineering Limited [4] India – – 100.00 100.00
18 L&T Realty Developers Limited India 100.00 100.00 100.00 100.00
19 L&T Energy Hydrocarbon Engineering Ltd India 100.00 100.00 100.00 100.00
20 L&T Network Services Private Limited India 100.00 100.00 100.00 100.00
21 Corporate Park (Powai) Private Limited [5]
India 100.00 100.00 – –
22 Business Park (Powai) Private Limited [6] India 100.00 100.00 – –
23 L&T Semiconductor Technologies Limited [7] India 100.00 100.00 – –
24 L&T Offshore Private Limited [8]
India 100.00 100.00 – –
[1]
Merged with L&T Seawoods Limited on April 1, 2023
[2]
Struck off from register of companies w.e.f August 08, 2023
[3]
One equity share (the Golden Share) is held by the Government of Telangana in pursuance of the Shareholders’ Agreement.
[4]
Divested w.e.f January 3, 2024
[5]
Incorporated on May 01, 2023
[6]
Incorporated on April 20, 2023
[7]
Incorporated on November 29, 2023
[8]
Reclassified as subsidiary w.e.f December 27, 2023 and formerly known as L&T Sapura Offshore Private Limited

478 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [48]
Disclosure pursuant to Ind AS 27 “Separate Financial Statements” (contd.)
Foreign Subsidiaries :

As at 31-3-2024 As at 31-3-2023
Proportion Proportion
Principal place of Proportion of of effective Proportion of of effective
Sr. Name of the subsidiary
business direct ownership ownership direct ownership ownership
No. (%) interest /voting (%) interest /voting
power(%) power(%)
1 Larsen & Toubro Saudi Arabia LLC Kindgom of Saudi 4.35 100.00 4.35 100.00
Arabia
2 L&T Global Holdings Limited UAE 100.00 100.00 100.00 100.00
3 Larsen & Toubro Arabia LLC Kindgom of Saudi 75.00 75.00 75.00 75.00
Arabia
4 L&T Hydrocarbon Saudi Company LLC Kindgom of Saudi 100.00 100.00 100.00 100.00
Arabia
5 L&T Modular Fabrication Yard LLC Sultanate of 70.00 70.00 70.00 70.00
Oman
6 Larsen & Toubro Electromech LLC Sultanate of 70.00 70.00 70.00 70.00
Oman
7 Larsen & Toubro Kuwait Construction General Contracting Kuwait 49.00 49.00 49.00 49.00
Company W.L.L.
8 Larsen & Toubro Heavy Engineering LLC Sultanate of 70.00 70.00 70.00 70.00
Oman
9 PT Larsen and Toubro Indonesia 100.00 100.00 100.00 100.00
Associate Companies :

As at 31-3-2024 As at 31-3-2023
Proportion Proportion
Principal place of Proportion of of effective Proportion of of effective
Sr. Name of associate
business direct ownership ownership direct ownership ownership
No. (%) interest /voting (%) interest /voting
power(%) power(%)
1 Gujarat Leather Industries Limited [1] India 50.00 50.00 50.00 50.00
2 Magtorq Private Limited India 42.85 42.85 42.85 42.85
[1]
Under liquidation

479
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [48]
Disclosure pursuant to Ind AS 27 “Separate Financial Statements” (contd.)
Joint Ventures :

As at 31-3-2024 As at 31-3-2023
Proportion Proportion Proportion Proportion
Principal place of
Sr. Name of the joint venture of direct of effective of direct of effective
business
No. ownership ownership ownership ownership
(%) interest (%) (%) interest (%)
1 L&T Chennai–Tada Tollway Limited [2] India [1]
51.00 [1]
51.00
2 L&T Rajkot-Vadinar Tollway Limited [2]
India [1]
51.00 [1]
51.00
3 L&T Samakhiali Gandhidham Tollway Limited [2] India 0.02 51.00 0.02 51.01
4 L&T Infrastructure Development Projects Limited [2] India 51.00 51.00 51.00 51.00
5 L&T Transportation Infrastructure Limited [2]
India 26.24 51.00 26.24 63.86
6 Ahmedabad - Maliya Tollway Limited [2] India [1]
51.00 [1]
51.00
7 L&T Howden Private Limited India 50.10 50.10 50.10 50.10
8 L&T-MHI Power Boilers Private Limited India 51.00 51.00 51.00 51.00
9 L&T-MHI Power Turbine Generators Private Limited India 51.00 51.00 51.00 51.00
10 Raykal Aluminium Company Private Limited India 75.50 75.50 75.50 75.50
11 L&T Special Steels and Heavy Forgings Private Limited India 74.00 74.00 74.00 74.00
12 PNG Tollway Limited India – 37.74 – 37.74
13 L&T MBDA Missile Systems Limited India 51.00 51.00 51.00 51.00
14 L&T Hydrocarbon Caspian LLC [3]
Baku, Azerbaijan – – 50.00 50.00
15 L&T Sapura Shipping Private Limited India 60.00 60.00 60.00 60.00
16 L&T Sapura Offshore Private Limited [4] India – – 60.00 60.00
17 L&T-Sargent & Lundy Limited India 50.00 50.00 50.00 50.00
18 GH4India Private Limited [5] India 33.33 33.33 – –
[1]
Proportion of direct ownership is less than 0.01%.
[2]
Divested w.e.f. April 10, 2024
[3]
Liquidated w.e.f September 25, 2023
[4]
Reclassified as subsidiary w.e.f December 27, 2023 and post-reclassification renamed as L&T Offshore Private Limited
[5]
Incorporated on August 25, 2023

480 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [49]
Basic and diluted Earnings per Share [EPS] computed in accordance with Ind AS 33 "Earnings per Share":
Particulars 2023-24 2022-23
Basic earnings per share
Net profit after tax (¢ crore) A 9304.33 7848.97
Weighted average number of equity shares outstanding B 1,38,98,17,026 1,40,52,58,885
Basic EPS(¢) A/B 66.95 55.85
Diluted earnings per share
Net profit after tax (¢ crore) A 9304.33 7848.97
Weighted average number of equity shares outstanding B 1,38,98,17,026 1,40,52,58,885
Add: W eighted average number of potential equity shares on account of employee C 12,33,876 11,80,266
stock options
Weighted average number of equity shares outstanding for diluted EPS D=B+C 1,39,10,50,903 1,40,64,39,151
Diluted EPS(¢) A/D 66.89 55.81
Face value per share (¢) 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
obligation construction
indirect taxes
contracts
1 Balance as at April 1, 2023 10.35 394.79 74.04 479.84 54.90 1013.92
2 Additional Provision during the year 0.54 30.23 – 389.45 – 420.22
3 Provision used during the year (0.55) (42.42) – (55.55) – (98.52)
4 Provision reversed during the year (1.12) (63.71) (41.00) (317.09) – (422.92)
5 Balance as at March 31, 2024 (5=1+2+3+4) 9.22 318.89 33.04 496.65 54.90 912.70
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, 2024 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.

481
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [51]
The expenditure on research and development activities is as follows:
v crore
Sr.
Particulars 2023-24 2022-23
No.
(i) Recognised as expense in the Statement of Profit and Loss 163.15 123.08
(ii) Capital Expenditure on:
(a) tangible assets 4.54 9.36
(b) intangible assets being expenditure on new product development – –
(c) other intangible assets 1.32 1.07
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. 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 foreign currency forward and option contracts with financial institutions to protect against foreign
exchange risks associated with existing assets and liabilities, firm commitments, 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.

482 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone 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 31-3-2024
US Dollars
Particulars including Japanese Kuwaiti Algerian British
EURO
pegged Yen Dinar Dinar Pound
currencies
Net exposure to foreign currency risk in respect of recognised
financial assets/(recognised financial liabilities) (3504.52) (616.54) (198.48) 135.55 (48.16) (26.92)
Derivatives including embedded derivatives for hedging
receivable/(payable) exposure with respect to non-financial
assets/(liabilities) 208.69 (331.95) (11.01) – – –
Derivatives including embedded derivatives for hedging
receivable/ (payable) exposure with respect to firm
commitments and highly probable transactions 2539.63 (14100.96) 1442.30 490.23 – (108.56)
Receivable/(payable) exposure with respect to forward
contracts and embedded derivatives not designated as cash
flow hedge 1221.52 (424.23) 10.27 – – 2.36

v crore
As at 31-3-2023
US Dollars
Particulars including Japanese Kuwaiti Algerian British
EURO
pegged Yen Dinar Dinar Pound
currencies
Net exposure to foreign currency risk in respect of recognised
financial assets/(recognised financial liabilities) (3537.74) (1693.77) (419.58) (212.09) (349.30) (55.09)
Derivatives including embedded derivatives for hedging
receivable/(payable) exposure with respect to non-financial
assets/(liabilities) 552.81 (677.01) – – – –
Derivatives including embedded derivatives for hedging
receivable/ (payable) exposure with respect to firm
commitments and highly probable transactions 4639.53 (1822.53) 164.96 507.44 – (305.13)
Receivable/(payable) exposure with respect to forward
contracts and embedded derivatives not designated as cash
flow hedge 2501.89 (43.19) 7.89 – – (485.62)
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 exposure 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 is 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 ¢ 89.03 crore as at March 31, 2024
and ¢ 31.93 crore as at March 31, 2023.

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, 2024 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.

483
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [52]
Disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: Market risk management (contd.)
(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 SOFR. The Company may hedge a portion of
these risks by way of derivatives instruments like interest rate swaps and currency swaps.

The Company has completed transition of its LIBOR linked loans to SOFR linked loans.

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 31-3-2024 As at 31-3-2023
Floating rate borrowings 2711.93 3664.96
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
2023-24 2022-23 At at 31-3-2024 At at 31-3-2023
Indian Rupee
Interest rates -increase by 0.5% in INR interest rate 0.03 (1.05) 0.03 (1.05)
Interest rates -decrease by 0.5% in INR interest rate (0.03) 1.05 (0.03) 1.05
US Dollar
Interest rates -increase by 0.5% in USD interest rate (10.18) (12.66) (10.18) (12.66)
Interest rates -decrease by 0.5% in USD interest rate 10.18 12.66 10.18 12.66
(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 31-3-2024 As at 31-3-2023
Debt funds and debt securities – increase by 0.50% in fair market value 44.89 53.32
Debt funds and debt securities – decrease by 0.50% in fair market value (44.89) (53.32)
Equity funds – increase by 5% in NAV 5.21 1.49
Equity funds – decrease by 5% in NAV (5.21) (1.49)

484 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone 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 2023-24 2022-23
Balance as at April 1 3968.78 3481.74
Changes in loss allowance for expected credit loss:
Provision/(reversal) of allowance for expected credit loss 323.78 324.57
Additional provision (net) towards credit impaired receivables 402.66 293.66
Write off as bad debts (546.44) (130.62)
Less: Balance reported under held for sale – 0.57
Balance as at March 31 [refer Note 11] 4148.78 3968.78
(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 a 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 a 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).

485
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone 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. 31-3-2024 31-3-2023
I. Measured at fair value through Profit or Loss (FVTPL):
(i) Investment in equity instruments 5 96.82 102.48
(ii) Investment in mutual funds 10 1499.59 2224.35
(iii) Investment in bonds 10 347.73 760.81
(iv) Investment in InvITs 10 2694.57 802.08
(v) Derivative instruments not designated as cash flow hedges 7,15 18.31 39.97
(vi) Embedded derivatives not designated as cash flow hedges 7,15 113.47 168.39
Sub-total (I) 4770.49 4098.08
II. Measured at amortised cost:
(i) Loans 6,14 642.10 3475.10
(ii) Investment in CBLO, Commercial Paper and Certificate of Deposit 10 1422.60 4851.72
(iii) Trade receivables 11 36961.55 33152.58
(iv) Other recoverable 15 2200.17 1588.91
(v) Cash and cash equivalents and bank balances 7,12,13 4981.44 4698.42
(vi) Other receivables 1874.13 1584.47
Sub-total (II) 48081.99 49351.20
III. Measured at fair value through Other comprehensive income (FVTOCI):
(i) Investment in government securities, bonds and debentures 10 10848.85 11585.33
(ii) Derivative financial instruments designated as cash flow hedges 7,15 388.66 337.19
(iii) Embedded Derivatives designated as cash flow hedges 7,15 56.86 87.41
Sub-total (III) 11294.37 12009.93
Total (I+II+III) 64146.85 65459.21
(b) Category-wise classification for applicable financial liabilities:
v crore
Sr. As at As at
Particulars Note
No. 31-3-2024 31-3-2023
I. Measured at fair value through Profit or Loss (FVTPL):
(i) Derivative instruments not designated as cash flow hedges 20,26 25.39 33.16
(ii) Embedded derivatives not designated as cash flow hedges 20,26 20.55 17.14
Sub-total (I) 45.94 50.30
II. Measured at amortised cost:
(i) Borrowings 19,23,24 22540.47 18151.09
(ii) Trade payables
Due to micro enterprises and small enterprises 871.22 751.71
Due to others 25 39975.11 41028.66
(iii) Others 4045.45 4107.48
Sub-total (II) 67432.25 64038.94
III. Measured at Fair Value through Other Comprehensive Income (FVTOCI):
(i) Derivative instruments designated as cash flow hedges 20,26 255.57 146.55
(ii) Embedded derivatives designated as cash flow hedges 20,26 21.09 31.53
Sub-total (III) 276.66 178.08
IV. Financial guarantee contracts 20,26 50.40 77.91
Total (I+II+III+IV) 67805.25 64345.23

486 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone 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 2023-24 2022-23
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 242.03 175.08
2. Gains/(losses) on fair valuation/settlement of derivative:
a. On forward contracts not designated as cash flow hedges 57.79 (71.69)
b. On embedded derivatives contracts not designated as cash flow hedges 18.72 188.47
c. On futures not designated as cash flow hedges (23.07) 92.71
Sub-total (A) 295.47 384.57
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.) (15.48) 455.45
(ii) Allowance/(reversal) for expected credit loss during the year (323.78) (324.57)
(iii) (Reversal of provision) for impairment loss (other than expected credit loss) [net] (185.12) (153.42)
(iv) Gains/(losses) on derecognition:
1. Bad debts (written off)/written back (net) (45.89) (22.96)
2. Gains/(losses) on transfer of financial assets (on non-recourse basis) (3.35) (20.47)
Sub-total (B) (573.62) (65.97)
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.) (79.90) (331.62)
(ii) Unclaimed credit balances written back 561.06 259.12
Sub-total (C) 481.16 (72.50)
Total [I] = (A+B+C) 203.01 246.10
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. 178.96 (398.67)
(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 (123.72) (141.09)
2. Gains/(losses) on fair valuation or settlement of embedded derivative contracts
designated as cash flow hedges (13.72) 105.09
Sub-total (A) 41.52 (434.67)
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 7.03 (17.54)
(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 56.42 436.15
2. On embedded derivative contracts upon hedged future cash flows affecting the Profit
or Loss or related asset or liability 16.89 0.06
Sub-total (B) 80.34 418.67
Net gains/(losses) recognised in Other comprehensive income [II]= (A)-(B) (38.82) (853.34)

487
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [53]
Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: (contd.)
v crore
Sr.
Particulars 2023-24 2022-23
No.
III Other income/(expenses):
A Dividend income:
Dividend income from investments measured at FVTPL 6.43 0.97
Sub- total (A) 6.43 0.97
B Interest income:
(a) Financial assets measured at amortised cost 397.83 484.46
(b) Financial assets measured at fair value through Other comprehensive income 1046.94 943.22
(c) Financial assets measured at fair value through Profit or Loss 277.60 184.29
Sub- total (B) 1722.37 1611.97
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) – (185.40)
(b) Derivative instruments that are measured at fair value through Profit or Loss (23.80) –
(c) Financial liabilities that are measured at amortised cost (2035.59) (1663.89)
Sub- total (C) (2059.39) (1849.29)
Total [III] = (A+B+C) (330.59) (236.35)
(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, Commercial Paper and Certificate of Deposit and
cash & 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 31-3-2024 As at 31-3-2023
Fair value
Particulars Carrying Carrying
Fair value Fair value hierarchy
amount amount
Redeemable non-convertible fixed rate 15535.41 15559.20 12677.79 12692.31 L2[1]
debentures
Term loan from banks – – 45.34 46.19 L2[1]
Total 15535.42 15559.20 12723.13 12738.50
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.

488 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone 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 31-3-2024 As at 31-3-2023
Particulars Note
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Financial assets:
(a) Designated at FVTPL:
(i) Equity shares (other than those held in
subsidiary, joint ventures & associate
companies) 5 10.14 – 86.68 96.82 23.68 – 78.80 102.48
(ii) Mutual fund units 10 1499.59 – – 1499.59 2224.35 – – 2224.35
(iii) Bonds 10 347.73 – – 347.73 760.81 – – 760.81
(iv) InvITs 10 2694.57 – – 2694.57 802.08 – – 802.08
(v) Derivative instruments not designated as cash
flow hedges 7,15 – 18.31 – 18.31 – 39.97 – 39.97
(vi) Embedded derivative Instruments not
designated as cash flow hedges 7,15 – 113.47 – 113.47 – 168.39 – 168.39
(b) Designated at FVTOCI:
(i) Debt instruments viz. government securities,
bonds and debentures 10 10848.85 – – 10848.85 11585.33 – – 11585.33
(ii) Derivative financial instruments designated as
cash flow hedges 7,15 – 388.66 – 388.66 – 337.19 – 337.19
(iii) Embedded derivative financial instruments
designated as cash flow hedges 7,15 – 56.86 – 56.86 – 87.41 – 87.41
Total 15400.88 577.30 86.68 16064.86 15396.25 632.96 78.80 16108.01
Financial Liabilities:
(a) Designated at FVTPL:
(i) Derivative instruments not designated as cash
flow hedges 20,26 – 25.39 – 25.39 – 33.16 – 33.16
(ii) Embedded derivative instruments not
designated as cash flow hedges 20,26 – 20.55 – 20.55 – 17.14 – 17.14
(b) Designated at FVTOCI:
(i) Derivative financial instruments designated as
cash flow hedges 20,26 – 255.57 – 255.57 – 146.55 – 146.55
(ii) Embedded derivative financial instruments
designated as cash flow hedges 20,26 – 21.09 – 21.09 – 31.53 – 31.53
Total – 322.60 – 322.60 – 228.38 – 228.38
Valuation technique and key inputs used to determine fair value -
1. Level-1 : Equity shares, mutual funds, bonds, InvITs, 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, 2022 69.32
Gains/(losses) recognised in Profit or Loss during 2022-23 9.37
Balance as at March 31, 2023 78.69
Gains/(losses) recognised in Profit or Loss during 2023-24 7.90
Balance as at March 31, 2024 86.59

489
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone 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
31-3-2024 31-3-2023 Significant unobservable
Particulars Sensitivity
inputs
v crore
Equity 86.58 78.69 31-3-2024 and 31-3-2023: 31-3-2024 and 31-3-2023 :
Investment 1. Net realization per month 1% change in net realization would result in +/- ¢ 0.31 crore (post tax- ¢ 0.23
¢ 35 per sqft. (PY: ¢ 31.827 crore) [PY: +/- ¢ 0.28 crore (post tax- ¢ 0.21 crore)]
per sqft) 25 bps change in capitalization rate would result in +/- ¢ 0.66 crore (post
2. Capitalisation rate 11.50% tax- ¢ 0.50 crore) [PY: +/- ¢ 0.60 crore (post tax- ¢ 0.45 crore)]
(g) Maturity Profile of Financial Liabilities (undiscounted values):
v crore
As at 31-3-2024 As at 31-3-2023
Within After Within After
Particulars Note
twelve twelve Total twelve twelve Total
months months months months
A. Non derivative liabilities:
Borrowings 19, 23, 24 11022.78 14849.90 25872.68 8808.49 11467.55 20276.04
Trade payables: 25
Due to micro enterprises and small enterprises 858.97 12.25 871.22 662.48 89.23 751.71
Due to others 39438.31 536.80 39975.11 38286.03 2742.63 41028.66
Other financial liabilities 20, 26 3720.45 104.25 3824.70 3886.55 111.41 3997.96
Lease liabilities 128.95 154.08 283.03 92.87 108.63 201.50
Total 55169.46 15657.28 70826.74 51736.42 14519.45 66255.87
B. Derivative liabilities:
Forward contracts 20, 26 272.94 11.11 284.05 166.76 17.59 184.35
Embedded derivatives 20, 26 41.64 – 41.64 43.81 5.42 49.23
Total 314.58 11.11 325.69 210.57 23.01 233.58
(h) 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 31-3-2024 As at 31-3-2023
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 13390.81 84.48 11634.39 1756.41 12782.32 83.70 10347.59 2434.73
Qatari Riyal 1816.12 22.89 1777.63 38.50 1626.45 22.61 1496.29 130.16
Japanese Yen 2674.33 0.56 1411.98 1262.35 1245.81 0.65 906.40 339.41
Arab Emirates Dirham 705.19 22.68 605.11 100.08 1018.03 22.66 1018.03 –
Kuwaiti Dinar 795.30 275.25 790.64 4.66 862.35 269.82 862.35 –
EURO 768.41 93.84 607.89 160.53 560.20 92.53 492.76 67.44
Saudi Riyal – – – – 192.21 22.02 192.21 –
Omani Riyal 10.91 219.16 10.91 – 93.84 214.40 93.84 –
Malaysian Ringgit 190.06 18.03 190.06 – 57.30 19.26 57.30 –
Thai Baht 22.93 2.43 22.93 – 2.97 2.41 2.97 –

490 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [53]
Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: (contd.)
As at 31-3-2024 As at 31-3-2023
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 14007.75 85.73 9499.57 4508.18 10092.09 82.47 9644.92 447.17
EURO 16366.04 92.11 14907.34 1458.71 4159.14 90.93 3996.35 162.79
Japanese Yen 1152.07 0.56 1130.91 21.16 912.41 0.65 899.47 12.94
Swiss Franc 188.90 89.23 187.69 1.20 366.68 90.89 366.68 –
British Pound 158.29 104.59 146.59 11.70 255.36 101.45 255.36 –
Arab Emirates Dirham 562.70 22.85 562.70 – 219.97 22.43 219.97 –
Qatari Riyal 120.39 22.87 120.39 – 183.24 22.54 183.24 –
Kuwaiti Dinar 171.79 273.47 171.79 – 173.20 268.72 173.20 –
Chinese Yuan 17.86 11.75 17.86 – 78.95 12.09 78.95 –
Canadian Dollar 1.80 61.55 1.80 – 2.23 60.96 2.23 –
B. Forward covers accounted as Net Investment Hedge:

As at 31-3-2024 As at 31-3-2023
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)
Receivable:
Arab Emirates Dirham 32.57 22.82 32.57 – 152.19 22.32 152.19 –
Saudi Riyal 194.58 22.28 194.58 – – – – –
C. Options contract:

As at 31-3-2024 As at 31-3-2023
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)
Receivable hedges:
US Dollars 446.07 [1]
– 446.07 476.79 [1]
– 476.79
[1] The options contracts include a combination of calls and puts with different maturities and strike prices.
(ii) Outstanding commodity price hedge instruments

A. Commodity forward contract:

As at 31-3-2024 As at 31-3-2023
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) 625.48 710211.45 625.48 – 178.67 722240.47 178.67 –
Aluminium(Tn)[1] 659.90 192407.39 649.97 9.93 372.45 200711.94 378.05 (5.60)
Iron Ore(Tn) 14.29 7309.80 6.95 7.34 22.84 7465.00 8.25 14.59
Coking Coal(Tn) – – – – 7.08 23586.00 7.08 –
Nickel(Tn) 130.21 1778778.54 130.21 – 39.76 1893321.70 39.76 –
Lead(Tn) 55.58 173424.85 55.58 – 7.55 171565.00 7.55 –
[1] Negative nominal amount represents sell position.

491
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [53]
Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: (contd.)
B. Commodity options contract:

As at 31-3-2024 As at 31-3-2023
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 (Tn) 112.48 [1]
112.48 – 283.04 [1]
283.04 –
Copper (Tn) 301.25 [1]
301.25 – 123.01 – 123.01 –
[1] The options contracts include a combination of calls and puts with different maturities and strike prices.
(i) Carrying amounts of hedge instruments for which hedge accounting is followed:

A. Cash flow hedge:

v crore
As at 31-3-2024 As at 31-3-2023
Particulars Currency Commodity Currency Commodity
exposure price exposure exposure price exposure
(i) Forward contracts
Current:
Asset - Other financial assets 208.95 51.98 281.14 36.39
Liability - Other financial liabilities 233.97 36.86 125.47 15.40
Non current:
Asset - Other financial assets 170.98 – 79.37 –
Liability - Other financial liabilities 5.83 – 19.60 –
(ii) Option contracts
Current:
Asset - Other financial assets – 13.60 1.67 24.74
Liability - Other financial liabilities – – – 15.74
B. Net Investment Hedge:
v crore
As at 31-3-2024 As at 31-3-2023
Particulars
Currency exposure Currency exposure
(i) Forward contracts
Current:
Asset - Other financial assets – 1.29
Liability - Other financial liabilities – 1.87
(j) Breakup of hedging reserve & cost of hedging reserve balance:

v crore
As at 31-3-2024 As at 31-3-2023

Particulars Cash flow Cost of Cash flow Cost of

hedging hedging hedging hedging
reserve reserve reserve reserve
Balance towards continuing hedges (25.33) (4.68) 76.79 (4.77)
Balance for which hedge accounting discontinued 92.21 – 151.98 –

492 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [53]
Other disclosure pursuant to Ind AS 107 “Financial Instruments: Disclosures”: (contd.)
(k) Reclassification of hedging reserve & cost of hedging reserve to Profit or Loss

v crore
Hedging reserve/Cost of
Particulars hedging reserve
2023-24 2022-23
Future cash flows are no longer expected to occur:
Sales, administration and other expenses 0.64 3.89
Hedged expected future cash flows affecting Profit or Loss:
Progress billing 5.78 (207.80)
Revenue from operation (2.71) 20.13
Manufacturing ,construction and operating expenses (42.77) 229.56
Finance costs – (185.03)
Sales, administration and other expenses 118.16 181.79
(l) Movement of hedging reserve & cost of hedging reserve
v crore
2023-24 2022-23
Hedging reserve
Gross Tax Net of Tax Gross Tax Net of Tax
Opening balance 319.93 (91.16) 228.77 384.69 (101.46) 283.23
Changes in the spot element of the forward contracts
which is designated as hedging instrument for time
period related hedges 56.01 (13.27) 42.74 149.84 (23.83) 126.01
Changes in fair value of forward contracts designated
as hedging instruments (190.37) 45.12 (145.25) 32.98 (5.24) 27.74
Changes in intrinsic value of option contracts – – – (50.95) 8.10 (42.85)
Changes in fair value of swaps – – – 18.03 (2.87) 15.16
Amount reclassified to Profit or Loss (76.52) 18.13 (58.39) (437.02) 69.50 (367.52)
Amount included in non-financial asset/liability 4.48 (1.06) 3.42 14.56 (2.32) 12.24
Amount included in Progress Billing in balance sheet (5.78) 1.37 (4.41) 207.80 (33.04) 174.76
Closing balance 107.76 (40.88) 66.88 319.93 (91.16) 228.77

v crore
2023-24 2022-23
Cost of hedging reserve
Gross Tax Net of Tax Gross Tax Net of Tax
Opening balance (6.37) 1.60 (4.77) (6.30) 1.58 (4.72)
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 (3.09) 0.78 (2.31) (185.90) 46.79 (139.11)
Amount reclassified to Profit or Loss 3.21 (0.81) 2.40 185.83 (46.77) 139.06
Closing balance (6.25) 1.57 (4.68) (6.37) 1.60 (4.77)

493
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [54]
Disclosure pursuant to Ind AS 116 “Leases”

(a) Where the Company is a lessor:

Operating leases: The Company has given land,buildings and plant & equipment under operating lease. The lease income received
during the year is 161.02 crore (previous year: 152.18 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 4-5 years Beyond 5 years Total
As at 31-3-2024 122.01 102.55 83.32 80.61 49.53 384.95 822.97
As at 31-3-2023 88.52 53.46 49.10 51.46 48.47 429.16 720.17

(b) Where the Company is a lessee:

The Company has taken various assets on lease such as, plant and equipment,land,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.

Details with respect to right-of-use assets:

v crore
Depreciation for the year Additions during the year Carrying amount
Class of asset 2023-24 2022-23 2023-24 2022-23 As at As at
31-3-2024 31-3-2023
Land 4.45 4.15 0.56 3.36 257.95 261.85
Buildings 90.64 70.15 157.75 80.00 201.02 132.03
Plant & equipment 18.73 27.03 1.06 22.13 10.71 28.37
Vehicles 0.14 0.06 6.08 – 5.93 –
Computer 0.34 0.59 – – – 0.34
Total 114.30 101.98 165.45 105.49 475.61 422.59

i. Interest expense on lease liabilities amounts to ¢ 17.64 crore (previous year: ¢ 12.02 crore).

ii. The expense relating to payments not included in the measurement of lease liability and recognized as expense in the Statement of
Profit and Loss during the year are as follows:

• Low value leases - ¢ 49.78 crore (previous year: ¢ 47.33 crore)

• Short-term leases - ¢ 3690.36 crore (previous year: ¢ 3309.97 crore) and

iii. Total cash out flow for leases amounts to ¢ 3067.64 crore during the year (previous year: ¢ 3413.55 crore) including cash outflow of
short-term and low value leases.

iv. Gain arising from sale and lease back transaction ¢ 23.47 crore (Previous year Nil)

494 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

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, 2024. The disclosure pursuant to the said Act is as under:
v crore
Particulars 2023-24 2022-23
Principle amount due to suppliers under MSMED Act, 2006 23.42 66.60
Interest accrued, due to suppliers under MSMED Act on the above amount, and unpaid 1.72 1.48
Payment made to suppliers (other than interest) beyond the appointed day during the year 633.97 572.13
Interest paid to suppliers under MSMED Act (Section 16) 0.79 0.75
Interest due and payable towards suppliers under MSMED Act for payments already made 15.19 16.42
Interest accrued and remaining unpaid at the end of the year to suppliers under MSMED Act 25.78 16.61
Amount of further interest remaining due and payable even in the succeeding years 0.41 0.34
NOTE [56]
There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2024.

NOTE [57]
Disclosure pursuant to regulation 34 (3) of Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements)
Regulation, 2015 and Section 186 of the Companies Act, 2013.

Sr. Nature of the transaction Purpose for which the loan Rate of Interest Balance as at Maximum outstanding during
No. (loans given) is proposed to be utilised for loan 31-3-2024 31-3-2023 2023-2024 2022-2023
by the recipient outstanding as
at 31-3-2024
(a) L&T Special Steels & Heavy Working Capital and Project 7.00% 1730.38 1730.38 1730.38 1730.38
Forgings Private Limited [1] funding
(b) Nabha Power Limited Working capital and project 10.50% 383.75 273.53 383.75 2586.21
funding
(c) L&T Metro Rail (Hyderabad) Working capital and project – – 2835.84 3399.84 3894.70
Limited funding
(d) Hi-Tech Rock Products & Investments in subsidiaries – – – – 26.31
Aggregates Limited
(e) L&T Geostructure Private Project funding 7.00% 17.77 22.00 23.04 27.23
Limited
(f) Larsen & Toubro Arabia LLC Working Capital – – – – 86.98
(g) L&T Sapura Shipping Pvt Ltd Working Capital and Support 5.50% 204.05 342.82 347.47 342.82
for refinancing of loan taken
for vessel
(h) L&T Hydrocarbon Saudi Working Capital – – – – 223.19
Company
(i) L&T Modular Fabrication Yard Working Capital – – – – 0.28
LLC
(j) L&T Heavy Engineering LLC [2] Working Capital – – 81.50 82.37 81.50
(k) L&T Energy Green Tech Limited Working Capital 8.25% 18.16 – 18.16 –
(l) Business Park (Powai) Pvt Ltd Working Capital 12.00% 17.92 – 17.92 –
Total 2372.03 5286.07
[1]
Excluding impairment of ¢ 1730.38 crore (previous year: ¢ 1730.38 crore)
[2]
Excluding impairment of ¢ Nil (previous year: ¢ 81.50 crore).

495
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [57] (contd.)
Notes:
I. Above loans are unsecured
II. Above figures include interest accrued
III. Loans 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.
IV. Subsidiary classification is in accordance with the Companies Act, 2013

Sr. Nature of the transaction (investment made/ Purpose for which the loan/guarantee/security is proposed Balance as at
No. guarantee given/security provided) to be utilised by the recipient 31-3-2024 31-3-2023
(A) Guarantees given to Subsidiary & Joint venture Companies:
(i) L&T - MHI Power Turbine Generators Private Limited Corporate Guarantee given for subsidiary’s financial obligations 210.56 276.58
(ii) L&T Metro Rail (Hyderabad) Ltd Corporate Guarantee given for subsidiary’s financial obligations 8616.00 8616.00
(iii) Larsen & Toubro Arabia LLC Corporate Guarantee given for subsidiary’s performance obligations 18587.34 11071.24
(iv) L&T Technology Services Limited Corporate Guarantee given for subsidiary’s performance obligations 491.09 488.30
(v) L&T Technology Services LLC Corporate Guarantee given for subsidiary’s performance obligations 166.81 164.34
(vi) Larsen & Toubro (Saudi Arabia) LLC Corporate Guarantee given for subsidiary’s performance 18946.29 14557.21
obligations
(vii) LTIMindtree Limited Corporate Guarantee given for subsidiary’s performance obligations 539.27 536.66
(viii) L&T Hydrocarbon Saudi Company LLC Corporate Guarantee given for subsidiary’s performance obligations 60762.23 20909.89
(ix) L&T - MHI Power Boilers Private Limited Guarantees issued by bank out of the Company’s sanctioned limits 19.39 19.44
for subsidiary’s performance obligations
(x) Nabha Power Limited Guarantees issued by bank out of the Company’s sanctioned 216.00 216.00
limitsor subsidiary’s performance obligations
(xi) L&T Special Steel & Heavy Forgings Private Limited Guarantees issued by bank out of the Company’s sanctioned limits 13.27 15.89
for performance obligations
(xii) L&T Seawoods Limited Guarantees issued by bank out of the Company’s sanctioned limits 3.75 3.75
for CTO and CTE compliances to Maharashtra Pollution Control
Board and for performance obligations
(xiii) L&T Geostructure Private Limited Guarantees issued by bank out of the Company’s sanctioned limits – 4.70
for performance obligations
(xiv) Larsen & Toubro International FZE Corporate guarantees issued by bank out of the Company's 21154.05 20840.82
sanctioned limits for performance obligation
(xv) LTH Milcom Private Limited Corporate Guarantee given for subsidiary’s performance obligations 4.09 –
(xvi) L&T Electrolysers Limited Guarantees issued by bank to-Solar Energy Corporation of India 44.40 –
Limited, New Delhi-SIGHT scheme (PLI)
Total 129774.54 77720.82
(B) Investments in fully paid equity instruments and Current Investments [Note 5 and Note 10]

496 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [58]
Following are the analytical ratios for the year ended March 31, 2024 and March 31, 2023

v crore
Ratio Numerator Denominator As at As at Variance % Reason of Variance [If
31-3-2024 31-3-2023 change is more than 25%]
Current Ratio Current Assets Current Liabilities 1.26 1.36 -7.5%
(times)
Debt Equity Ratio Total debt Shareholder's 0.35 0.25 37.9% Higher borrowings during
(times) Equity current year
Debt Service Earnings available Debt Service [2]
1.83 1.56 17.5%
Coverage Ratio for debt service [1]
(times)
Return on Equity Profit for the year Average 13.69% 11.32% 20.9%
Ratio (%) after tax Shareholders
Equity
Inventory Cost of goods Average Inventory NA[7] NA[7] NA
Turnover Ratio sold
Trade Receivables Revenue from Average Gross 3.23 2.87 12.5%
Turnover Ratio operations Trade Receivables
Trade Payables Purchases [3]
Average Trade 2.52 2.07 21.6%
Turnover Ratio Payables
Net Capital Revenue from Average Working 4.36 3.30 32.0% Higher revenue and lower
Turnover Ratio operations Capital working capital in current
year
Net Profit Ratio Profit for the year Revenue from 7.37% 7.10% 3.8%
(%) after tax Operations
Return on Capital Profit after tax + Average Capital 12.23% 10.41% 17.5%
Employed (%) Finance Cost (net Employed [4]
off tax on Finance
Cost)
Return on Treasury Average 9.23% 5.96% 54.8% Improved yields on current
Investment (%) Income [5] investment [6]
investments during current
year
[1]
Profit before interest, tax and exceptional items
[2]
Finance cost + Principal repayments (net of refinancing) made during the year for long term borrowings
[3]
Includes Manufacturing ,construction and operating expenses
[4]
Includes 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, Fixed deposits and Collaterised Borrowing and Lending Obligation
[7]
Not material considering the size and the nature of operations of the Company

497
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [59]
Exceptional items (net of tax) include the following:

(i) Gain of ¢ 397.97 crore on transfer of Carved-out Business of Smart World and Communication (SWC) Business unit of the Company to
L&T Technology Services Limited (LTTS), a listed subsidiary with effect from April 1, 2023.

(ii) Gain on divestment of stake in L&T Transportation Infrastructure Limited, a subsidiary of L&T IDPL: ¢ 97.05 crore.

(iii) Reduction in the carrying value of investment in L&T IDPL to its net realisable value after considering customary closing adjustments:
¢ 47.03 crore.

NOTE [60]
Disclosure related to Corporate Social Responsibility (CSR):

v crore
Sr. No. Particulars 2023-24 2022-23
(i) Required to be spent 150.98 137.70
(ii) Excess spend of previous year utilised 8.80 6.14
(iii)= (i)-(ii) Spend obligation 142.18 131.56
(iv) Actual spent 154.84 140.36
Of which amount recognised in:
(a) Balance sheet 12.66 8.80
(b) Statement of Profit and Loss 142.18 131.56
(v) Excess spend shown as asset in previous year charged to Statement of Profit and Loss on its
utilisation 8.80 5.63
(ivb)+(v) Total amount shown in Statement of Profit and Loss 150.98 137.19
i. Refer Annexure C to the Board Report for the nature of CSR activities of the Company.

NOTE [61]
Auditors' remuneration (excluding GST):
v crore
Sr. No. Particulars 2023-24 2022-23
a) Paid as Auditor
(i) Statutory audit fees 3.60 3.25
(ii) Limited review of standalone and consolidated financial statements on a quarterly basis 2.60 2.49
b) For Taxation matters 0.80 0.76
c) For other services including certification work 1.46 1.33
d) For reimbursement of expenses 0.24 0.20

NOTE [62]
Recent pronouncements:
There are no standards of accounting or any addendum thereto, prescribed by Ministry of Corporate Affairs under section 133 of the
Companies Act, 2013, which are issued and not effective as at March 31, 2024.

498 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [63]
(a) Notes with respect to remarks in CARO Report:

(i) During the year, the Company renewed both shareholder & bridge loans of ¢ 303.50 crore to L&T Sapura Shipping Private Limited
(LTSSPL), a subsidiary[1] due to delay in generation of sufficient cash from operations. However, LTSSPL subsequently fully repaid the
bridge loan of ¢ 126.56 crore with a delay.

(ii) L&T Special Steels and Heavy Forgings Private Limited (LTSSHF), a subsidiary[1], has not repaid the loan and net interest thereon
aggregating to ¢ 2071.53 crore to the Company due to insufficient funds. LTSSHF is in discussion with its promoters viz. the
Company and Nuclear Power Corporation of India Limited, for exploring options to restructure its balance sheet.

[1] Subsidiary classification is in accordance with the Companies Act, 2013

(b) Balances with Struck off Companies

v crore
Relationship Balance Balance
S. No. Name of the Struck off Company Nature of Transaction with the struck outstanding as at outstanding as at
off company March 31, 2024 March 31, 2023
1 A K Infrasolutins Private Limited Accounts Payables NA 0.02 0.02
2 Aadhiraj Projects Private Limited Accounts Payables NA – [1]
– [1]

3 Aahsin India Private Limited Accounts Payables NA 0.02 0.02

4 Aarib Constructions Private Limited Accounts Payables NA 0.02 0.02
5 Aayansh Securities Systems Private Accounts Payables NA 0.15 0.15
Limited
6 Abhiraksha Constructions Private Accounts Payables NA 0.03 0.03
Limited
7 Ace Offshore And Engineering Private Accounts Payables NA – [1]
– [1]

Limited
8 Acrp Infracon Private Limited Accounts Payables NA – [1]
– [1]

9 Active Brain Infra Engg Private Limited Accounts Payables NA – [1]

– [1]

10 Adm Infracon India Private Limited Accounts Payables NA – [1]

– [1]

11 Advance Mep Solutions Private Limited Accounts Payables NA – [1]

– [1]

12 Aeroglobal Infrastructure Engineers Accounts Payables NA – 0.03

Private Limited
13 Aghasthya Infratech Mangalore Private Accounts Payables NA – 0.04
Limited
14 Aircon System Engineers Private Accounts Payables NA – [1]
– [1]

Limited
15 Akashdeep Infratech Private Limited Accounts Payables NA 0.01 0.01
16 Akonn Infra Tech (India) Private Limited Accounts Payables NA 0.03 0.03
17 Alakshya Infracon Private Limited Accounts Payables NA – [1]
– [1]

18 Alert Infraprojects Private Limited Accounts Payables NA – 0.01

19 Alias Management Marketing Private Accounts Payables NA – [1]
– [1]

Limited
20 Alpana Buildtech Private Limited Accounts Payables NA – [1]
– [1]

21 Alufascia Private Limited Accounts Payables NA – [1]

– [1]

22 Amaravati Rcc Pipes India Private Accounts Payables NA 0.02 0.01

Limited
23 Amritlaxmi Properties Private Limited Accounts Payables NA 0.02 0.02
24 Angelina Infratech Private Limited Accounts Payables NA – [1]
– [1]

25 Antilia Facility Management Private Accounts Payables NA 0.15 0.15

Limited
26 Arj Infra Private Limited Accounts Payables NA – [1]
– [1]

27 Artisans Design & Build Private Limited Accounts Payables NA – [1]

– [1]

499
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [63]
(b) Balances with Struck off Companies (contd.)
v crore
Relationship Balance Balance
S. No. Name of the Struck off Company Nature of Transaction with the struck outstanding as at outstanding as at
off company March 31, 2024 March 31, 2023
28 Ashok Balyan Infra Project Private Accounts Payables NA – [1]
– [1]

Limited
29 AT & LS Private Limited. Accounts Payables NA 0.02 0.02
30 Atlantic Works Private Limited Accounts Payables NA – [1]
– [1]

31 Aura Metlab Private Limited Accounts Payables NA – [1]

– [1]

32 Auskini Infraqp Private Limited Accounts Payables NA 0.12 0.12

33 Avn Green Technologies Private Limited Accounts Payables NA – [1]
– [1]

34 Ayurda Millennium Ventures Private Accounts Payables NA 0.04 0.04

Limited
35 B K Equipments Private Limited Accounts Payables NA – [1]
– [1]

36 Baba Balaknathji Entertainment Private Accounts Payables NA – – [1]

Limited
37 Bennett Coleman And Company Accounts Payables NA 0.02 –
Limited
38 Bindra Evolutiion Enterprises Private Accounts Payables NA – [1]
– [1]

Limited
39 Blueman Construction Projects Private Accounts Payables NA – [1]
– [1]

Limited
40 Brahmaputra Engitech Private Limited Accounts Payables NA 0.01 0.01
41 Bramhands Infrastructure Private Accounts Payables NA 0.01 0.01
Limited
42 Brightom Hospitality & Events Private Accounts Payables NA – [1]
– [1]

Limited
43 Brjs Contractors Private Limited Accounts Payables NA 0.24 0.27
44 Bulsar Construction And Consulting Accounts Payables NA 0.07 0.02
Opc Private Limited
45 Calorifique Renewable Energie India Accounts Payables NA – [1]
– [1]

Private Limited
46 Care Infra Engineers Limited Accounts Payables NA – [1]
– [1]

47 Chandrawati Power Construction Accounts Payables NA – [1]

– [1]

Private Limited
48 Cheyuta Infrasturcture Private Limited Accounts Payables NA 0.03 0.03
49 Cmi Limited Accounts Payables NA – [1]
0.12
50 Creo Projects Private Limited Accounts Payables NA – [1]
– [1]

51 Csk Engineering And Construction Accounts Payables NA 0.02 0.02

Private Limited
52 Csp Constructions Private Limited Accounts Payables NA – [1]
– [1]

53 D.B.Constructions Private Limited Accounts Payables NA 0.28 0.28

54 Ddsabi Global Services Private Limited Accounts Payables NA – [1]
– [1]

55 Deepak Singh Chouhan Construction Accounts Payables NA 0.01 0.01

Private Limited.
56 Devine Devbuild Private Limited Accounts Payables NA – [1]
– [1]

57 Dhanamjay Infra Private Limited Accounts Payables NA – [1]

– [1]

58 Dhiren Construction India Private Accounts Payables NA 0.02 0.02

Limited
59 Dimensions India Private Limited Accounts Payables NA – [1]
– [1]

500 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [63]
(b) Balances with Struck off Companies (contd.)
v crore
Relationship Balance Balance
S. No. Name of the Struck off Company Nature of Transaction with the struck outstanding as at outstanding as at
off company March 31, 2024 March 31, 2023
60 Dipl Construction Private Limited Accounts Payables NA 0.10 0.10
61 Divaah Adya Facility Solutions (P) Accounts Payables NA – [1]
– [1]

Limited
62 Dne Infra Private Limited Accounts Payables NA – [1]
– [1]

63 Dv Procon Private Limited Accounts Payables NA – [1]

– [1]

64 Dwarkesh Buildcom Private Limited Accounts Payables NA 0.06 0.06

65 Dynastyraj Infrastructure Private Accounts Payables NA – [1]
– [1]

Limited
66 Edgecon Engineering Projects Private Accounts Payables NA 0.13 0.13
Limited
67 Elena Management & Services Private Accounts Payables NA – [1]
– [1]

Limited
68 Energie Shine Engineering Solution Accounts Payables NA – [1]
– [1]

Private Limited
69 Er Infra Innovative Private Limited Accounts Payables NA 0.01 0.01
70 Escalador Geo-Systems And Accounts Payables NA 0.01 0.01
Engineering Survey Private Limited
71 Essa Infrabuild Private Limited Accounts Payables NA – [1]
– [1]

72 Expeditive Infotech Private Limited Accounts Payables NA – [1]

– [1]

73 Fairmans Construction Private Limited Accounts Payables NA – [1]

– [1]

74 Faithful Creator Infra Private Limited Accounts Payables NA – [1]

– [1]

75 Farhad Interior And Exterior Private Accounts Payables NA – [1]

– [1]

Limited
76 Filtm Online Services Private Limited Accounts Payables NA – [1]
– [1]

77 Friends Civil Works Private Limited Accounts Payables NA – [1]

– [1]

78 Fundamental Infratech Private Limited Accounts Payables NA 0.01 0.01

79 G-5 Construction Private Limited Accounts Payables NA 0.02 0.02
80 Genesis Infosolutions Private Limited Accounts Payables NA 0.03 0.03
81 Genius Security Services Private Limited Accounts Payables NA – [1]
– [1]

82 Global Engineering & Marketing Accounts Payables NA 0.05 0.05

Services Private Limited
83 Gnxt Energy Private Limited Accounts Payables NA – [1]
– [1]

84 Gogreen Facility Management Private Accounts Payables NA – [1]

– [1]

Limited
85 Goldentree Facility Management Accounts Payables NA – –
Private Limited
86 Gulba Topographical Surveyors Private Accounts Payables NA – [1]
– [1]

Limited
87 H M Brothers Limited Accounts Payables NA 0.03 0.03
88 Ham Constructions & Engineering Accounts Payables NA – [1]
– [1]

Works Private Limited

89 Harhar Mahadev Infra Developer Accounts Payables NA – [1]
– [1]

Private Limited
90 Honeyed Engineering Private Limited Accounts Payables NA 0.04 0.04
OPC

501
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [63]
(b) Balances with Struck off Companies (contd.)
v crore
Relationship Balance Balance
S. No. Name of the Struck off Company Nature of Transaction with the struck outstanding as at outstanding as at
off company March 31, 2024 March 31, 2023
91 Hsb Projects Private Limited Accounts Payables NA – [1]
– [1]

92 Hudor Projects India Private Limited Accounts Payables NA 0.03 0.03

93 I S Earth Movers Private Limited Accounts Payables NA – [1]
– [1]

94 Ifensys Software Solutions Private Accounts Payables NA – [1]

– [1]

Limited
95 Imperium Infratech Private Limited Accounts Payables NA – [1]
– [1]

96 Indco Engineers & Contractors Private Accounts Payables NA – [1]

– [1]

Limited
97 Infisoft India Technology Private Accounts Payables NA – [1]
– [1]

Limited
98 Infra American India Private Limited Accounts Payables NA – [1]
– [1]

99 Inl-Intech India Automation (P) Limited Accounts Payables NA – [1]

– [1]

100 Innovations Events And Entertainment Accounts Payables NA – [1]

– [1]

Private Limited
101 Inox India Private Limited Accounts Payables NA – [1]
– [1]

102 Isha Heights And Silos Private Limited Accounts Payables NA – [1]
– [1]

103 Janatha Readymix Concrete India Accounts Payables NA – [1]

– [1]

Private Limited
104 Jatra Services India Private Limited Accounts Payables NA – [1]
– [1]

105 Jbs Estcon Private Limited Accounts Payables NA 0.13 0.13

106 Jodhpur Infra-Con Private Limited Accounts Payables NA – [1]
– [1]

107 Jps Engineering Private Limited Accounts Payables NA 0.06 0.06

108 Jrc Biuildcon Private Limited Accounts Payables NA – [1]
– [1]

109 Kazmi And Sons Builders Private Accounts Payables NA 0.07 0.07
Limited
110 Kegan Constructions Private Limited Accounts Payables NA 0.03 0.03
111 Kishley Constructions Private Limited Accounts Payables NA – [1]
– [1]

112 Kissan Land Promoters Private Limited Accounts Payables NA – [1]

– [1]

113 Kiwi Projects Private Limited Accounts Payables NA 0.03 0.03

114 Knight Engineers Contractors & Accounts Payables NA 0.02 0.02
Consultants Private Limited
115 Kolkata Industrial Security Service Accounts Payables NA – [1]
– [1]

Private Limited
116 Ktek Level Engg Private Limited Accounts Payables NA – [1]
– [1]

117 Lakshman Singh Construction Private Accounts Payables NA – [1]

– [1]

Limited
118 Lanster Developer Private Limited Accounts Payables NA – [1]
– [1]

119 Laxmi Infra Eng Private Limited Accounts Payables NA – [1]

– [1]

120 L-Upd-Saubha-Auraiya Dehat And Accounts Payables NA – [1]

– [1]

Kanpurnagar Dvvnl
121 Ganga Mechanical Works Private Accounts Payables NA – [1]
– [1]

Limited
122 Mangalam Consultancy Private Limited Accounts Payables NA – [1]
– [1]

123 Manha Earthcon Private Limited Accounts Payables NA – [1]

– [1]

124 Manish Duggal Telecom Private Limited Accounts Payables NA – [1]

–

502 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [63]
(b) Balances with Struck off Companies (contd.)
v crore
Relationship Balance Balance
S. No. Name of the Struck off Company Nature of Transaction with the struck outstanding as at outstanding as at
off company March 31, 2024 March 31, 2023
125 Mars Dsp Waves Private Limited Accounts Payables NA – [1]
– [1]

126 Marvel Technicals Sales And Service Accounts Payables NA – [1]

– [1]

Privte Limited
127 Mass Ventures Limited Accounts Payables NA – [1]
– [1]

128 Maurya Devbuild Private Limited Accounts Payables NA – [1]

– [1]

129 Maxtel Constructions Private Limited Accounts Payables NA – [1]

– [1]

130 Maxx Ultra Conchem Opc Private Accounts Payables NA – [1]

– [1]

Limited
131 Mecavo (R&D) Private Limited Accounts Payables NA – –0.04
132 Mecvil Infracon Private Limited Accounts Payables NA – [1]
– [1]

133 Mei Engineers Private Limited Accounts Payables NA – [1]

– [1]

134 MSP Develco Private Limited Accounts Payables NA 0.01 0.01

135 Muskan Techno Engineering Accounts Payables NA 0.07 0.07
Construction Private Limited
136 Nap Energy And Infratech Private Accounts Payables NA – [1]
–
Limited
137 Narshimha Buildtech Private Limited Accounts Payables NA 0.03 0.03
138 Nevil Consultancy Services Accounts Payables NA – [1]
– [1]

PrivateLimited
139 New Proponent Security Services Accounts Payables NA – [1]
– [1]

Private Limited
140 Nexgen Transcom Private Limited Accounts Payables NA 0.04 0.04
141 Nirmal Aircon Private Limited Accounts Payables NA 0.03 0.04
142 Nirmal Sai Construction Private Limited Accounts Payables NA – [1]
– [1]

143 Normet India Private Limited Accounts Payables NA 7.02 7.47

144 Nstech International Private Limited Accounts Payables NA – – [1]

145 Om Pranav Infrastructure Engineering Accounts Payables NA 0.02 0.01

Private Limited
146 Om Sai Project Developers And Accounts Payables NA 0.05 0.05
Engineers Private Limited
147 Onella Visions Private Limited Accounts Payables NA 0.01 0.01
148 Opti Tech Infra Projects India Opc Accounts Payables NA – [1]
– [1]

Private Limited
149 Orsang Infotech Private Limited Accounts Payables NA – [1]
– [1]

150 PAF Infrastructure Private Limited Accounts Payables NA 0.03 0.03

151 Paradisegarden Infraproject Private Accounts Payables NA – [1]
– [1]

Limited
152 Paramshiv Infra Private Limited Accounts Payables NA – [1]
– [1]

153 Parim Infocomm Private Limited Accounts Payables NA – [1]

– [1]

154 Peass Infra Private Limited Accounts Payables NA – [1]

0.01
155 Perfect Office Systems Private Limited Accounts Payables NA – [1]
–
156 Petrichor Emerging Technologies India Accounts Payables NA – – [1]

Private Limited
157 Pinak Security & Management Private Accounts Payables NA – [1]
– [1]

Limited

503
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [63]
(b) Balances with Struck off Companies (contd.)
v crore
Relationship Balance Balance
S. No. Name of the Struck off Company Nature of Transaction with the struck outstanding as at outstanding as at
off company March 31, 2024 March 31, 2023
158 Pioneer Tech Engineering Services Accounts Payables NA – [1]
– [1]

Private Limited
159 Posorbis Infrastucture Private Limited Accounts Payables NA 0.02 0.03
160 Priyanka Managment Solution (India) Accounts Payables NA 0.50 0.50
Private Limited
161 Probus Infratech Private Limited Accounts Payables NA – [1]
– [1]

162 Purma Plast Private Limited Accounts Payables NA – [1]

– [1]

163 R B C Bearings Private Limited Accounts Payables NA – [1]

– [1]

164 R Square E Service Private Limited Accounts Payables NA – [1]

– [1]

165 Raas Infratech Private Limited Accounts Payables NA – [1]

– [1]

166 Ramakrishna Power Tech Private Accounts Payables NA 0.33 0.33

Limited
167 Rani Aishwarya Infracon Private Accounts Payables NA 0.01 0.01
Limited
168 Rattiputra Construction Private Limited Accounts Payables NA 0.01 0.01
169 Real Construction Private Limited Accounts Payables NA – [1]
– [1]

170 Real Tech Engineering And Accounts Payables NA – [1]

– [1]

Construction Private Limited

171 Realsharp Infraatech Services Private Accounts Payables NA 0.01 0.01
Limited
172 RGK Infracon Private Limited Accounts Payables NA 0.18 0.18
173 Riccardo Readymixs And Infra Projects Accounts Payables NA – [1]
– [1]

Private Limited
174 Rk Build Solutions Private Limited Accounts Payables NA – [1]
– [1]

175 RK Gautam Construction Private Accounts Payables NA – [1]

– [1]

Limited
176 Rockhard Infrastructure Private Limited Accounts Payables NA – [1]
– [1]

177 Roshan Tradevision Private Limited Accounts Payables NA – [1]

– [1]

178 Roy Management And Information Accounts Payables NA – [1]

– [1]

Technology Private Limited

179 Rpnr Concrete Solutions Private Accounts Payables NA – [1]
– [1]

Limited
180 S K Modern Construction & Accounts Payables NA 0.10 0.10
Engineering Private Limited
181 S S D N Infratech Private Limited Accounts Payables NA – [1]
– [1]

182 S V Infraproperties Private Limited Accounts Payables NA 0.04 0.04

183 Safety And Environment Education For Accounts Payables NA – [1]
– [1]

Development Private Limited

184 Sahu Infrastructure Private Limited Accounts Payables NA – [1]
– [1]

185 Sai Ashray Infratech Private Limited Accounts Payables NA – [1]

– [1]

186 Sampada Infratech Private Limited Accounts Payables NA – [1]

– [1]

187 Samrat Fabrication And Construction Accounts Payables NA – [1]

0.02
Private Limited.
188 Savitri Infrastrcuture Private Limited Accounts Payables NA 0.02 0.02
189 Sbh Shoring Systems Private Limited Accounts Payables NA – [1]
– [1]

504 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [63]
(b) Balances with Struck off Companies (contd.)
v crore
Relationship Balance Balance
S. No. Name of the Struck off Company Nature of Transaction with the struck outstanding as at outstanding as at
off company March 31, 2024 March 31, 2023
190 Sce Global Steel And Facade Private Accounts Payables NA – [1]
– [1]

Limited
191 Scotnix Solution Private Limited Accounts Payables NA – [1]
– [1]

192 Set Sanayi Elektrik-Tesisat Taahhut Ve Accounts Payables NA 0.02 0.02

Ticaret India Private Limited
193 Shahid Engineers & Contractors Private Accounts Payables NA 0.02 0.02
Limited
194 Sharma Infrabuild Private Limited Accounts Payables NA 0.05 0.05
195 Sheoveena Construction Private Accounts Payables NA – [1]
– [1]

Limited
196 Shravani Environment Technology Accounts Payables NA 0.03 0.03
Private Limited
197 Shree Kranti Infracon Private Limited Accounts Payables NA 0.23 0.26
198 Shreeji Home Infra Private Limited Accounts Payables NA 0.03 0.03
199 Shreya Infra Venture Private Limited Accounts Payables NA – [1]
– [1]

200 Shri Vedika Engineering Private Limited Accounts Payables NA 0.09 0.02
201 Sieat Consultancy Private Limited Accounts Payables NA 0.04 0.04
202 Sikar Trading And Contracting Private Accounts Payables NA 0.04 0.04
Limited
203 Silk Route Infrastructure Private Limited Accounts Payables NA 0.05 0.05
204 Soul And Mind Concrete System Accounts Payables NA 0.07 0.07
Private Limited
205 Sri Abs Lakshn Projects Private Limited Accounts Payables NA 0.03 0.10
206 Star Wire (India) Limited Accounts Payables NA 0.02 0.03
207 Stellent Engineering Solutions Private Accounts Payables NA – [1]
– [1]

Limited
208 Sublime Contractors Private Limited Accounts Payables NA – [1]
– [1]

209 Sudha Rehabs And Hospitality Private Accounts Payables NA 0.01 0.01
Limited
210 Suhashini Infra Engineering Private Accounts Payables NA – [1]
– [1]

Limited
211 Sukita Security And Services Private Accounts Payables NA – [1]
– [1]

Limited
212 Sumera Builders & Developers Private Accounts Payables NA – [1]
– [1]

Limited
213 Supreme Housekeeping Services Accounts Payables NA 0.06 0.06
Private Limited
214 Sv Engineering And Contracting Accounts Payables NA 0.03 0.03
Services Private Limited
215 Swadesh Energy Private Limited Accounts Payables NA – [1]
– [1]

216 Swadeshi Buildtrade Private Limited Accounts Payables NA – [1]

– [1]

217 Swift Equipments Private Limited Accounts Payables NA 0.01 0.01

218 Techcon Chemicals Private Limited Accounts Payables NA 0.08 –
219 Techno Power Constructions Private Accounts Payables NA – – [1]

Limited
220 Tej Infrapromoters Private Limited Accounts Payables NA – – [1]

505
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [63]
(b) Balances with Struck off Companies (contd.)
v crore
Relationship Balance Balance
S. No. Name of the Struck off Company Nature of Transaction with the struck outstanding as at outstanding as at
off company March 31, 2024 March 31, 2023
221 Telmax Construction Private Limited Accounts Payables NA 0.02 0.02
222 Terra Firma Promoters & Developers Accounts Payables NA 0.07 0.07
Private Limited
223 Texsa India Limited Accounts Payables NA – [1]
– [1]

224 Thakurai Engineering Private Limited Accounts Payables NA 0.15 0.15

225 Thought Zone Consulting Private Accounts Payables NA – [1]
– [1]

Limited
226 Threess Innovative Tech India Private Accounts Payables NA – [1]
– [1]

Limited
227 Timely Developers Consultants Private Accounts Payables NA 0.02 0.02
Limited
228 TMM Industries Private Limited Accounts Payables NA – [1]
– [1]

229 Torobuild Constructions Opc Private Accounts Payables NA – [1]

–
Limited
230 Triplex Builders Private Limited Accounts Payables NA 0.04 0.04
231 Trunk Facility Management Services Accounts Payables NA – [1]
– [1]

Private Limited
232 Tumbi Office Systems Private Limited Accounts Payables NA – [1]
– [1]

233 Ukr Infra Private Limited Accounts Payables NA 0.02 0.02

234 Ultra-Tech Concretes Works Accounts Payables NA – [1]
– [1]

PrivateLimited
235 Umansh Infracon Private Limited Accounts Payables NA – [1]
– [1]

236 Unique Fabricators & Erectors Private Accounts Payables NA 0.03 0.03
Limited
237 Utech Infracon Private Limited Accounts Payables NA – [1]
– [1]

238 Vaigunthaa Infra Private Limited Accounts Payables NA – – [1]

239 Vams Construction Private Limited Accounts Payables NA 0.13 0.13

240 Vansh Infrasolution Private Limited Accounts Payables NA 0.10 0.10
241 Varad Infra Projects (P) Limited Accounts Payables NA – [1]
– [1]

242 Vardhman Trading Co. Private Limited Accounts Payables NA – [1]

– [1]

243 Vee Gee Yem Engineers India Privite Accounts Payables NA – [1]
– [1]

Limited
244 Veekay Engineering India Private Accounts Payables NA – [1]
– [1]

Limited
245 Vertex Realtech Infra Private Limited Accounts Payables NA 0.50 0.50
246 Victory Engineering India Private Accounts Payables NA 0.10 0.10
Limited
247 Victra Constructions Private Limited Accounts Payables NA – [1]
– [1]

248 Vishnuvedanga Infra-Tech Private Accounts Payables NA – [1]

– [1]

Limited
249 Vishwa Infratech & Projects Private Accounts Payables NA – [1]
– [1]

Limited
250 Vissa Engineering Private Limited Accounts Payables NA 0.02 0.02
251 Vk Management Services Accounts Payables NA – [1]
0.17
PrivateLimited
252 Walls Infra Solution Private Limited Accounts Payables NA – [1]
– [1]

506 Integrated Annual Report 2023-24

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

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [63]
(b) Balances with Struck off Companies (contd.)
v crore
Relationship Balance Balance
S. No. Name of the Struck off Company Nature of Transaction with the struck outstanding as at outstanding as at
off company March 31, 2024 March 31, 2023
253 White Vibes Private Limited Accounts Payables NA 0.19 0.19
254 Wipo Teleservices Private Limited Accounts Payables NA 0.03 0.03
255 Yashas Frp Manufacturing Private Accounts Payables NA 0.05 0.05
Limited
256 Ye Power Transmission Private Limited Accounts Payables NA – [1]
– [1]

257 Z Rose Constructions & Interiors Accounts Payables NA – [1]

– [1]

Private Limited
258 Zaaharveer Projects Private Limited Accounts Payables NA 0.02 0.02
259 Zafcon Engineering Private Limited Accounts Payables NA 0.03 0.03
260 Zain Thermal Solutions Private Limited Accounts Payables NA – [1]
– [1]

261 Zippy Facility Management & Services Accounts Payables NA – [1]

– [1]

Private Limited
Total Payables (A) 14.17 15.18
1 NCR Aggregate Solutions Private Advance given to NA 1.79 1.79
Limited
Total advances given (B) 1.79 1.79
1 Pranavam Constructions Private Accounts Receivables NA – [1]
– [1]

Limited
2 The Rubber Products Limited Accounts Receivables NA – [1]
– [1]

3 Profusion Engineering Accounts Receivables NA – [1]

0.04
4 Angelina Infratech Private Limited Accounts Receivables NA 0.01 0.01
5 Sai Ashray Infratech Private Limited Accounts Receivables NA 0.01 0.01
Total Receivables (C) 0.02 0.06
1 Kothari Intergroup Limited L&T's shareholder NA – [1]
– [1]

2 Alike Trading Private Limited L&T's shareholder NA – [1]

– [1]

3 Alley Fisheries Private Limited L&T's shareholder NA – [1]

– [1]

4 Aloke Speciality Machines and L&T's shareholder NA – [1]

– [1]

Components Private Limited

5 Amersey Brothers Private Limited L&T's shareholder NA – [1]
– [1]

6 Avni Financial Advisors Private Limited L&T's shareholder NA – [1]

– [1]

7 Demuric Holdings Private Limited L&T's shareholder NA – [1]

– [1]

8 Fairtrade Securities Limited L&T's shareholder NA – [1]

– [1]

9 Jabac Consultancies Private Limited L&T's shareholder NA – [1]

– [1]

10 Omni Market Research Services Private L&T's shareholder NA – [1]

– [1]

Limited
11 Safna Consultancy Private Limited L&T's shareholder NA – [1]
– [1]

12 Satvik Financial Services Limited L&T's shareholder NA – [1]

– [1]

13 Siddha Papers Private Limited L&T's shareholder NA – [1]

– [1]

14 Upgrade Management Ser Private L&T's shareholder NA – [1]

– [1]

Limited
15 VMS Consultants Private Limited L&T's shareholder NA – [1]
– [1]

16 Yogesh Investment Private Limited L&T's shareholder NA – [1]

– [1]

Total equity shares held (D) – [1]

– [1]

507
 Notes forming part of the
Standalone Financial Statements

Notes forming part of the Standalone Financial Statements (contd.)

NOTE [63]
(b) Balances with Struck off Companies (contd.)
v crore
Relationship Balance Balance
S. No. Name of the Struck off Company Nature of Transaction with the struck outstanding as at outstanding as at
off company March 31, 2024 March 31, 2023
1 Upgrade Management Services Private Dividend payable NA – [1]
– [1]

Limited
2 Amersey Brothers Private Limited Dividend payable NA – [1]
–
3 Omni Market Research Services Private Dividend payable NA – [1]
–
Limited
4 Safna Consultancy Private Limited Dividend payable NA – [1]
– [1]

5 Fairtrade Securities Limited Dividend payable NA – [1]

– [1]

6 Kothari Intergroup Limited Dividend payable NA – [1]

– [1]

7 Jabac Consultancies Private Limited Dividend payable NA – [1]

– [1]

8 Alike Trading Private Limited Dividend payable NA – [1]

– [1]

9 Satvik Financial Services Limited Dividend payable NA – [1]

– [1]

Total dividend payable (E) – [1]

– [1]

Grand Total (A+B+C+D+E) 15.98 17.03

[1]
Less than ¢ 1 Lakhs.

(c) i. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:

A. 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

B. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

ii. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

A. 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

B. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

NOTE [64]
Figures for the previous year have been regrouped/reclassified to conform to the figures of the current year.

508 Integrated Annual Report 2023-24

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

INDEPENDENT AUDITOR’S 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 loss in its associates and joint ventures, which comprise the Consolidated Balance Sheet as at March 31, 2024,
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 ended on that date, and notes to the financial statements, including a summary
of material 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 statements 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 and other accounting principles generally accepted in India, of the consolidated state of affairs of the Group as at March 31,
2024, 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 (“SAs”) specified under
section 143 (10) of the Act. 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 sub-paragraphs (a) and (b) of 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) and 34 to the Consolidated Financial Statements
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, amongst
others:
• 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.

511
 Auditor’s Report on Consolidated
Financial Statements

Revenue recognition – accounting for construction contracts

• We selected a sample of contracts with customers and performed the following procedures:
i. Obtained and read contract documents for each selection, change orders, and other documents that
were part of the agreement;
ii. 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;
iii. 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
iv. 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), 13 and 19 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, 2024 and the date when the financial
statements are approved by the Parent’s Board of Directors included the following amongst others:
• 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, 2024 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, 2024 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.

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), 2 and 5 to the Consolidated Financial Statements

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Impairment on Assets – Metro Rail Cash Generating Unit

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:
• 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 sensitivity analysis of the discount rate to assess the extent of change in discount rate that
would be required for the investment to be impaired.
Revenue recognition - Fixed price contracts using the percentage of completion method in respect of IT Segment - LTIMindtree
Limited (“the Company”)
Key audit matter Revenue from fixed price contracts including software development and system integration contracts is recognized
description using a percentage of completion method. Use of the percentage of completion method requires the Company
to determine the actual costs expended to date as a proportion of the estimated total costs to be incurred. Costs
expended have been used to measure progress towards completion as there is a direct relationship between input
and productivity.
Revenue recognition of fixed price contracts where the percentage of completion is identified as Key Audit Matter
since –
• High inherent risk around accuracy of revenue, given the customized and complex nature of these contracts.
• High inherent uncertainty and requires consideration of progress of the contract, costs incurred to-date and
estimates of costs required to complete the remaining contract performance obligations over the term of the
contract.
• At year-end, significant amount of work in progress (Unbilled revenue), related to these contracts is recognised
on the balance sheet.
This required a high degree of auditor judgment in evaluating the audit evidence and a higher extent of audit effort
to evaluate the reasonableness of the total estimated amount of revenue and unbilled revenue recognized on these
fixed-price contracts.
Refer to Note No. [1](II)(i) and 34 to the Consolidated Financial Statements.
Principal Audit The components’ auditors (being other firms of chartered accountants) have performed the following audit
Procedures procedures:
• Tested the effectiveness of controls relating to:
i. recording of costs incurred and estimation of efforts or costs required to complete the remaining contract
performance obligations; and
ii. access and application controls pertaining to time recording, allocation and budgeting systems which
prevents unauthorized changes to recording of efforts incurred.
• Selected a sample of fixed price contracts with customers measured using the percentage-of-completion
method and performed the following:
i. Read the contract and based on the terms and conditions evaluated whether recognizing revenue
over time using percentage of completion method was appropriate, and the contract was included in
Management’s calculation of revenue over time;
ii. Compared costs incurred with Company’s estimate of efforts or costs incurred to date to identify
significant variations and evaluate whether those variations have been considered appropriately in
estimating the remaining costs or efforts to complete the contract.
iii. Tested the estimate for consistency with the status of delivery of milestones and customer acceptances
and sign off from customers to identify possible delays in achieving milestones, which require changes in
estimated costs or efforts to complete the remaining performance obligations.

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Revenue recognition- Fixed price contracts in respect of technology services segment – L&T Technology Services Limited (“the
Company”)
Key audit matter The Company engages in fixed price contracts with its customers wherein revenue from such contracts are
description recognized over time. The Company uses input method to recognise revenue, as it represents efforts expended
towards satisfying a performance obligation relative to the total expected efforts or inputs to satisfy the
performance obligation.
This involves computation of actual cost incurred and estimation of total cost on each contract to measure progress
towards completion.
Amount of revenue recognition in respect of fixed price contracts has been identified as a Key Audit Matter
considering that:
• these contracts involve identification of actual cost incurred on each contract;
• these contracts require estimation of future cost for completion of each contract; and
• at the period end a significant amount of contract assets (unbilled revenue) or contract liabilities (unearned
revenue) related to each contract is to be identified.
Refer to Note [1](II)(i) and 34 to the Consolidated Financial Statements.
Principal Audit The component’s auditors (being other firms of chartered accountants) have performed the following audit
Procedures procedures:
• Obtained an understanding of the systems, processes and controls implemented by the Company with respect
to recognition of actual cost incurred on each contract, estimation of future cost to completion, measurement
of unbilled revenue, unearned revenue and the total contract revenue on its completion;
• Involved Information technology (‘IT’) specialists to assess the design and operating effectiveness of the key IT
controls relating to revenue recognition and in particular;
i. Assessed the IT environment in which the business systems operate and tested system controls over
computation of revenue recognised;
ii. Tested the IT controls over appropriateness of cost and revenue reports generated by the system;
iii. Assessed the appropriateness of actual cost incurred on contracts including the testing of the IT general
controls and specific IT application controls over information systems used for capturing these costs; and
iv. Tested the controls pertaining to allocation of resources and budgeting systems which prevent the
unauthorized recording/changes to costs incurred on sample basis.
• Verified on test check basis that the revenue recognized is in accordance with the applicable Indian
Accounting Standard, including:
i. Verification of the underlying agreements and other forms of supporting documentation to ensure that
each party’s rights and obligations regarding the goods or services to be transferred and payment terms
are identified and contracts have commercial substance;
ii. Inspection of the underlying agreements and other forms of supporting documentation to ensure that
various performance obligations within a contract have been properly identified by Management;
iii. Inspection of the underlying agreements and other forms of supporting documentation to ensure that
transaction price has been properly determined and allocated to relevant performance obligations on an
appropriate basis; and
iv. Verification of the Company’s computation of revenue to be recognized over a period of time on a
sample basis, where the component’s auditors have performed the following;
a) Verified Management’s process relating to the estimation of contract costs required to complete
the respective projects and assessed that the estimates of costs to complete were reviewed and
approved by appropriate designated Management personnel and are appropriate;
b) Verified the reasonableness of Management’s estimation of cost projections by comparing actual
cost incurred with Management initial/updated estimation of total cost for that project;
c) Recomputed the amount of revenue recognised on these contracts and compared the same with the
actual revenue recorded;

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Revenue recognition- Fixed price contracts in respect of technology services segment – L&T Technology Services Limited (“the
Company”)
d) Assessed the appropriateness of work in progress (contract assets and contract liabilities) as at
the balance sheet date by evaluating the underlying documentation to identify possible delays
in achieving milestones which require changes in estimated costs to complete the remaining
performance obligations; and
• Assessed the adequacy and appropriateness of disclosures made in the financial statements in compliance with
applicable Indian Accounting Standards and applicable financial reporting framework.
Allowance for Expected Credit Loss on Retail Loan Assets in respect of Financial Services segment – L&T Finance Limited (“the
Company”)
Key audit matter Significant judgement is used in classifying these loan assets and applying appropriate measurement principles. ECL
description on such loans carried at amortised cost is a critical estimate involving greater level of management judgement.
As part of their risk assessment, the component auditors (being other firm of Chartered Accountants) determined
that the ECL on such loan assets has a high degree of estimation uncertainty, with a potential range of reasonable
outcomes for the standalone financial statements. The significant assumptions that they focused in their audit
included those with greater levels of management judgement and for which variations had the most significant
impact on ECL.
The key areas where they identified greater levels of management judgement and therefore increased levels of
audit focus in the Company’s estimation of ECLs are: Each borrower is classified into Stage 1, 2, 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 from
among the different facilities [“Max DPD”] provided to that borrower.
Inherently, significant judgment is involved in the use of 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.
The modelling methodologies used to estimate ECL are developed using historical experience. The impact of the
prevailing macroeconomic conditions has also resulted in certain limitations in the reliability of these methodologies
to forecast the extent and timing of future customer defaults or potential credit risks and therefore in estimates
of ECL. In addition, modelling methodologies do not necessarily incorporate all factors that are relevant to
estimating ECL, such as differentiating the impact on industry sectors and economic conditions. These limitations
are attempted to be addressed with management overlay, the measurement of which is inherently judgemental and
subject to a high level of estimation uncertainty.
Accordingly, the Allowance for Expected Credit Loss on Retail Loan Assets has been determined as Key Audit
Matter because it requires a high degree of judgement and estimation uncertainty, with a potential range of
reasonable outcomes for the financial statements.
Refer to Note [1](II)(r)(i)(D) to the Consolidated Financial Statements.
Principal Audit The component’s auditors (being other firm of chartered accountants) have performed the following audit
Procedures procedures:
• Reviewed the Board Approved Policy and procedures & associates design/controls and expected credit loss
memo concerning the assessment of credit and other risks.
• Obtained an understanding of the modelling techniques adopted by the Company including the key inputs
and assumptions.
• Assessing the design, implementation and operating effectiveness of key internal financial controls including
monitoring process of overdue loans (including those which became overdue after the reporting date),
measurement of provision, stage-wise classification of loans, identification of NPA accounts, assessing the
reliability of management information.
• Evaluated the appropriateness of the Company’s determination of Significant Increase in Credit Risk (“SICR”)
in accordance with the applicable accounting standard and the basis for classification of various exposures into
various stages.

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Allowance for Expected Credit Loss on Retail Loan Assets in respect of Financial Services segment – L&T Finance Limited (“the
Company”)
• Testing key controls relating to selection and implementation of material macro-economic variables and the
controls over the scenario selection and application of probability weights and computation of probability of
default and loss given default percentages.
• Reviewed the critical assumptions and input data used in the estimation of expected credit loss for specific
key credit risk parameters, such as the movement between stages, Exposure at default, (EAD), probability of
default (PD) or loss given default (LGD).
• Involved Information system resource to obtain comfort over data integrity and process of report generation
through interface of various information systems.
• Tested controls placed over key inputs, data and assumptions impacting ECL calculations to assess the
completeness, accuracy and relevance of data and reasonableness of economic forecasts, weights, and model
assumptions applied as detailed below:
i. verified the 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.
ii. checked the 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 retail considered for ECL assessment with the books of accounts to ensure the
completeness.
iii. performed test of details over model calculations testing through re-performance, where possible.
iv. tested appropriateness of staging of borrowers based on DPD and other loss indicators.
v. tested the factual accuracy of information such as period of default and other related information used in
estimating the PD.
vi. evaluated the reasonableness of applicable assumptions included in LGD computation.
vii. evaluated the methodology used to determine macroeconomic overlays and adjustments to the output of
the ECL model.
• Assessed whether the disclosures on key judgements, assumptions and quantitative data with respect to
impairment of loans (including restructuring related disclosures) in the Financial Statements are appropriate
and sufficient.
• Verified the manner of preparation of information w.r.t. to provisions and disclosures in the Financial
Statements.
• Obtained written representations from management and those charged with governance on whether they
believe significant assumptions used in calculation of expected credit losses are reasonable.

Information Technology (“IT”) Systems and Controls in respect of Financial Services segment – L&T Finance Limited (“the Company”)
Key audit matter The Company has a complex IT architecture to support its day-to-day business operations. High volume of
description transactions are processed and recorded on single or multiple applications. The reliability and security of IT systems
plays a key role in the business operations of the Company. Since large volume of transactions are processed daily,
IT controls are required to ensure that applications process data as expected and that changes are made in an
appropriate manner.
Appropriate IT general controls and application controls are required to ensure that such IT systems are able to
process the data, as required, completely, accurately and consistently for reliable financial reporting.
Component auditor identified ‘IT systems and controls’ as a key audit matter because of the high-level automation,
significant number of systems being used by the Management and the complexity of the IT architecture and its
impact on the financial reporting system.
Principal Audit The component’s auditors (being other firms of chartered accountants) have performed the following audit
Procedures procedures:
• Involved IT specialists as part of the audit for the purpose of testing the IT general controls and application
controls (automated and semi-automated controls) to determine the accuracy of the information produced by
the Company’s IT systems;
• With respect to the “In-scope IT systems” identified as relevant to the audit of the financial statements and
financial reporting process of the Company, evaluated and tested relevant IT general controls;

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Information Technology (“IT”) Systems and Controls in respect of Financial Services segment – L&T Finance Limited (“the Company”)
• On such “In-scope IT systems” performed the following procedures:
i. Obtained an understanding of IT applications landscape implemented by the Company, including an
understanding of the process, mapping of applications and understanding financial risks posed by
people-process and technology;
ii. Tested design and operating effectiveness of key controls over user access Management (including user
access provisioning, de-provisioning, user access review, password configuration review and privilege
access), change Management (including compliance of change release in production environment to
the defined procedures), program development (including review of data migration activity), computer
operations (including testing of key controls pertaining to, backup, batch processing, incident
Management and data centre security. Also tested entity level controls pertaining to IT policy and
procedure and business continuity plan assessment; and
iii. Tested the design and operating effectiveness of certain automated controls that were considered as key
internal controls over the financial reporting system.
Information Other than the Financial Statements and Auditor’s Report Thereon
The Parent’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 and Sustainability 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.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
The Parent’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 the accounting principles generally accepted in India, including Ind AS specified under section 133 of the
Act.

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, as aforesaid.

In preparing the Consolidated Financial Statements, the respective Management and Board 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.

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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 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.

• 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 has
adequate internal financial controls with reference to Consolidated Financial Statements 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 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 financial controls 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 financial year 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 32 joint operations included in the standalone financial statements of the entities included
in the Group, whose financial information reflects total assets of ¢ 3,579.32 crore as at March 31, 2024, total revenues of ¢ 4,469.64
crore and net cash flows amounting to ¢ (471.70) crore for the year ended March 31, 2024, 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 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 63 subsidiaries, whose financial information reflects total assets of ¢ 1,74,770.36 crore as
at March 31, 2024, total revenues of ¢ 66,961.37 crore and net cash flows amounting to ¢ 4,600.27 crore for the year ended March
31, 2024, as considered in the Consolidated Financial Statements. The Consolidated Financial Statements also include the Group’s share
of total net loss after tax of ¢ 28.76 crore for the year ended March 31, 2024 and total comprehensive loss (net) of ¢ 24.07 crore for

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the year ended March 31, 2024, as considered in the Consolidated Financial Statements, in respect of 2 associates and 8 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 other auditors.

• We did not audit the financial information of 2 joint operations included in the standalone financial statements of the entities included
in the Group, whose financial information reflects total assets of ¢ 1.67 crore as at March 31, 2024, total revenues of ¢ NIL and net cash
flows of ¢ 0.00 crore for the year ended March 31, 2024, respectively, as considered in the respective standalone financial statements
of the entities included in the Group. This financial information of these joint operations have not been audited by the auditor whose
financial information has 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, is based solely on such 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 31 subsidiaries, whose financial information reflects total assets of ¢ 838.29 crore as at
March 31, 2024, total revenues of ¢ 909.77 crore and net cash flows amounting to ¢ (63.58) crore for the year March 31, 2024, as
considered in the Consolidated Financial Statements. The Consolidated Financial Statements also include the Group’s share of total net
loss after tax of ¢ 0.60 crore and total comprehensive loss (net) of ¢ 1.00 crore for the year ended March 31, 2024, as considered in the
Consolidated Financial Statements, in respect of 3 associates and 4 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 as on March 31, 2024 taken on record by the
Board of Directors of the Parent 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, 2024 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 with reference to Consolidated Financial Statements 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, 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 with reference to Consolidated
Financial Statements 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 and
based on the auditor’s reports of subsidiary companies, associate companies and joint venture companies incorporated in India,
the remuneration paid by the Parent and such subsidiary companies, associate companies and joint venture companies to their
respective directors during the year is in accordance with the provisions of section 197 of the Act.

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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 (Refer Note No 32 to the Consolidated Financial Statements);

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 and its subsidiary companies, associate companies and joint venture companies incorporated in India;

iv. a. The respective Managements of the Parent and its subsidiaries, associates and joint ventures which are companies
incorporated in India, whose financial statements have been audited under the Act, have represented to us and to the
other auditors of such subsidiaries, associates and joint ventures respectively that, to the best of their knowledge and
belief, no funds (which are material either individually or in 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 Parent or any of such subsidiaries,
associates and joint ventures 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 Parent or any of such
subsidiaries, associates and joint ventures (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries;

b. The respective Managements of the Parent and its subsidiaries, associates and joint ventures which are companies
incorporated in India whose financial statements have been audited under the Act, have represented to us and to the
other auditors of such subsidiaries, associates and joint ventures respectively that, to the best of their knowledge and
belief, no funds have been received by the Parent or any of such subsidiaries, associates and joint ventures from any
person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in
writing or otherwise, that the Parent or any of such subsidiaries, associates and joint ventures 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;

c. Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances
performed by us and that performed by the auditors of the subsidiaries, associates and joint ventures 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), as provided under (a) and (b) above contain any material misstatement.

v. The amount of dividend is in accordance with Section 123 of the Act.

a. The final dividend proposed in the previous year, declared and paid by the Parent and its subsidiaries, associates and joint
ventures which are companies incorporated in India, whose financial statements have been audited under the Act, where
applicable, during the year is in accordance with section 123 of the Act, as applicable.

b. The interim dividend declared and paid by the subsidiaries and joint ventures of the Parent which are companies
incorporated in India, whose financial statements have been audited under the Act, where applicable, during the year
and until the date of this report is in compliance with section 123 of the Act.

c. As stated in note no. 20 to the Consolidated Financial Statements, the Board of Directors of the Parent and its
subsidiaries, associates and joint ventures which are companies incorporated in India, whose financial statements
have been audited under the Act, where applicable, have proposed final dividend for the year which is subject to the
approval of the members of the Parent and such subsidiaries and joint ventures at the ensuing respective Annual General
Meetings. Such dividend proposed is in accordance with section 123 of the Act, as applicable.

vi. Based on our examination which included test checks and based on the other auditor’s reports of its subsidiary companies,
associate companies and joint venture companies incorporated in India whose financial statements have been audited under
the Act, the Parent Company, its subsidiary companies, associate companies and joint venture companies incorporated in
India have used accounting software(s) for maintaining their respective books of account for the financial year ended March
31, 2024, which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all
relevant transactions recorded in the software(s).

Further, during the course of audit, we and respective other auditors, whose reports have been furnished to us by the Management of
the Parent Company, have not come across any instance of audit trail feature being tampered with.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Rule 11(g) of
Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not
applicable for the financial year ended March 31, 2024.

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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 ix (a)
L&T Realty Developers Limited U29119MH1997PLC109700 Subsidary Clause iii (c)
L&T Special Steels and Heavy U27109MH2009PTC193699 Joint Venture Clause – ix (a) and 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)

Rupen K. Bhatt
(Partner)
(Membership No. 046930)
UDIN: 24046930BKEZVQ4819

Place: Mumbai
Date: May 08, 2024

521
 Auditor’s Report on Consolidated
Financial Statements

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S 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 with reference to Consolidated Financial Statements 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 Group as of and for the year ended March 31, 2024, we
have audited the internal financial controls with reference to Consolidated Financial Statements 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 Board of Directors of the Parent, its subsidiary companies, associate companies and joint ventures, which are companies
incorporated in India, are responsible for establishing and maintaining internal financial controls with reference to Consolidated Financial
Statements based on the internal control with reference to Consolidated Financial Statements 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 with reference to Consolidated Financial Statements of the Parent,
its subsidiary companies, 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 by the Institute of Chartered Accountants of India and the Standards on Auditing (“SA”), prescribed under Section 143(10)
of the Act, to the extent applicable to an audit of internal financial controls with reference to Consolidated Financial Statements. 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 with reference to Consolidated Financial Statements 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 with reference to
Consolidated Financial Statements and their operating effectiveness. Our audit of internal financial controls with reference to Consolidated
Financial Statements included obtaining an understanding of internal financial controls with reference to Consolidated Financial Statements,
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 with
reference to Consolidated Financial Statements 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 with reference to Consolidated Financial Statements

A company’s internal financial control with reference to Consolidated Financial Statements 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 with reference to Consolidated Financial Statements
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 with reference to Consolidated Financial Statements
Because of the inherent limitations of internal financial controls with reference to Consolidated Financial Statements, 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 with reference to Consolidated Financial Statements to future periods are
subject to the risk that the internal financial control with reference to Consolidated Financial Statements may become inadequate because of
changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

522 Integrated Annual Report 2023-24

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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 with reference to Consolidated Financial Statements and such internal financial controls with reference to Consolidated
Financial Statements were operating effectively as at March 31, 2024, based on the criteria for internal financial controls with reference to
Consolidated Financial Statements 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.

Other Matters
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with
reference to Consolidated Financial Statements in so far as it relates to 36 subsidiary companies, 1 joint operation company, 8 joint ventures
and 2 associates, 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
with reference to Consolidated Financial Statements in so far as it relates to 2 subsidiary companies and 1 associate company, which are
companies incorporated in India, whose financial information is unaudited and whose efficacy of internal financial controls with reference
to Consolidated Financial Statements 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 with reference to Consolidated Financial Statements 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.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)

Rupen K. Bhatt
(Partner)
(Membership No. 046930)
UDIN: 24046930BKEZVQ4819

Place: Mumbai
Date: May 08, 2024

523
 Consolidated
Balance Sheet

Consolidated Balance Sheet as at March 31, 2024

v crore
Particulars Note As at 31-3-2024 As at 31-3-2023
ASSETS:
Non-current assets
Property, plant and equipment 2 13297.64 11336.28
Capital work-in-progress 2 2897.04 2949.09
Investment property 3 2191.37 3360.22
Goodwill 4 7800.88 7798.65
Other intangible assets 5 17384.52 18007.98
Intangible assets under development 5 147.97 116.48
Right-of-use assets 61(b)(iii) 2289.41 2137.87
Financial assets
Investments in joint ventures and associates 43(e) 1264.25 1304.86
Other investments 6 9425.94 7920.03
Loans towards financing activities 7 52154.76 40920.92
Other loans 8 475.46 356.00
Other financial assets 9 1952.08 1965.78
65272.49 52467.59
Deferred tax assets (net) 51(d) 3863.72 3984.79
Current tax receivable (net) 4245.78 3611.66
Other non-current assets 10 2156.55 2377.38
Sub-total - Non-current assets 121547.37 108147.99
Current assets
Inventories 11 6620.19 6828.78
Financial assets
Investments 12 34957.63 35573.42
Trade receivables 13 48770.95 44731.53
Cash and cash equivalents 14 11958.50 16926.69
Other bank balances 15 3399.89 5592.91
Loans towards financing activities 16 34814.59 40460.55
Other loans 17 106.54 251.15
Other financial assets 18 5563.92 4930.10
139572.02 148466.35
Other current assets 19 70882.30 65920.39
Sub-total - Current assets 217074.51 221215.52
Group(s) of assets classified as held for sale 45(b) 1005.36 988.80
TOTAL ASSETS 339627.24 330352.31

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Consolidated Balance Sheet as at March 31, 2024 (contd.)

v crore
Particulars Note As at 31-3-2024 As at 31-3-2023
EQUITY AND LIABILITIES:
Equity
Equity share capital 20 274.93 281.10
Other equity 21 86084.31 89044.85
Equity attributable to owners of the Company 86359.24 89325.95
Non-controlling interests 16190.42 14241.27
TOTAL EQUITY 102549.66 103567.22
Liabilities
Non-current liabilities
Financial liabilities
Borrowings 22 56506.97 61217.68
Lease liability 1734.78 1646.31
Other financial liabilities 23 96.07 272.96
58337.82 63136.95
Provisions 24 987.38 869.99
Deferred tax liabilities (net) 51(d) 533.63 630.43
Other non-current liabilities 25 618.02 81.73
Sub-total - Non-current liabilities 60476.85 64719.10
Current liabilities
Financial liabilities
Borrowings 26 27834.27 30896.32
Current maturities of long term borrowings 27 29698.53 26399.38
Lease liability 547.67 490.75
Trade payables:
Due to micro enterprises and small enterprises 1018.71 851.70
Due to others 28 52274.17 48932.42
Other financial liabilities 29 7575.67 7441.94
118949.02 115012.51
Other current liabilities 30 52333.73 42166.55
Provisions 31 3457.51 3493.47
Current tax liabilities (net) 1860.47 1393.46
Sub-total - Current liabilities 176600.73 162065.99
TOTAL LIABILITIES 237077.58 226785.09
TOTAL EQUITY AND LIABILITIES 339627.24 330352.31
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 Chairman & Managing Director
by the hand of (DIN 02255382)

RUPEN K. BHATT
Partner R. SHANKAR RAMAN P. R. RAMESH
Membership No. 046930 Whole - time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 01915274)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939
Mumbai, May 8, 2024

525
 Consolidated Statement of
Profit and Loss

Consolidated Statement of Profit and Loss for the year ended March 31, 2024
v crore
Particulars Note 2023-24 2022-23
INCOME:
Revenue from operations 34 221112.91 183340.70
Other income (net) 35 4158.03 2929.17
Total Income 225270.94 186269.87
EXPENSES:
Manufacturing, construction and operating expenses: 36
Cost of raw materials, components consumed 19442.25 18995.11
Construction materials consumed 54813.97 43237.35
Purchase of stock-in-trade 1063.77 1052.86
Stores, spares and tools consumed 4432.02 4814.89
Sub-contracting charges 35054.35 25624.45
Changes in inventories of finished goods, work-in-progress, stock-in-trade
and property development 1021.07 (3156.64)
Other manufacturing, construction and operating expenses 24486.49 20020.81
Finance cost of financial services business and finance lease activity 5714.90 6026.44
146028.82 116615.27
Employee benefits expense 37 41171.02 37214.11
Sales, administration and other expenses 38 10419.42 8758.04
Finance costs 39 3545.85 3207.16
Depreciation, amortisation, impairment and obsolescence 40 3682.33 3502.25
Total Expenses 204847.44 169296.83
Profit before exceptional items and tax 20423.50 16973.04
Exceptional items before tax (net) [gain/(loss)] 114.44 (91.97)
Tax expense on exceptional items: 51(a)
Current tax 20.83 448.35
Deferred tax – (676.31)
20.83 (227.96)
Exceptional items (net of tax) 48 93.61 135.99
Profit before tax 20517.11 17109.03
Tax expense: 51(a)
Current tax 5127.70 5055.17
Deferred tax (180.31) (571.01)
4947.39 4484.16
Profit after tax 15569.72 12624.87
Share in profit/(loss) after tax of joint ventures/associates (net) 43(f) (22.62) (94.25)
Profit for the year 15547.10 12530.62
Other comprehensive income
A Items that will not be reclassified to profit or loss:
Gain/(loss) on remeasurements of the net defined benefit plans 28.82 (23.60)
 Income tax (expenses)/income on remeasurements of the net defined
benefit plans (8.61) 6.79
20.21 (16.81)
Share in Other comprehensive income of joint ventures/associates (net) 0.27 15.58
B Items that will be reclassified to profit or loss:
Debt instruments through Other comprehensive income 126.80 (246.80)
Income tax (expenses)/income on debt instruments through Other
comprehensive income (26.97) 53.21
99.83 (193.59)
Carried forward - Other comprehensive income 120.31 (194.82)

526 Integrated Annual Report 2023-24

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Consolidated Statement of Profit and Loss for the year ended March 31, 2024 (contd.)
v crore
Particulars Note 2023-24 2022-23
Brought forward - Other comprehensive income 120.31 (194.82)
Exchange differences in translating the financial statements of foreign
operations 13.81 101.83
Income tax (expenses)/income on exchange differences in translating the
financial statements of foreign operations 1.74 3.55
15.55 105.38
Effective portion of gains/(losses) on hedging instruments in a cash flow
hedge 388.41 (1216.61)
Income tax (expenses)/income on effective portion of gains/(losses) on
hedging instruments in a cash flow hedge (121.36) 321.95
267.05 (894.66)
Cost of hedging reserve 0.12 (0.06)
Income tax (expenses)/income on cost of hedging reserve (0.03) 0.02
0.09 (0.04)
Share in Other comprehensive income of joint ventures/associates (net) 4.41 25.60
Other comprehensive income for the year (net of tax) 407.41 (958.54)
Total comprehensive income for the year 15954.51 11572.08
Profit for the year attributable to:
Owners of the Company 13059.11 10470.72
Non-controlling interests 2487.99 2059.90
15547.10 12530.62
Other comprehensive income for the year attributable to:
Owners of the Company 235.70 (754.74)
Non-controlling interests 171.71 (203.80)
407.41 (958.54)
Total comprehensive income for the year attributable to:
Owners of the Company 13294.81 9715.98
Non-controlling interests 2659.70 1856.10
15954.51 11572.08
Earnings per share (EPS) of ¢ 2 each
Basic earnings per equity share (¢) 55 93.96 74.51
Diluted earnings per equity share (¢) 55 93.88 74.45
Face value per equity share (¢) 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 Chairman & Managing Director
by the hand of (DIN 02255382)

RUPEN K. BHATT
Partner R. SHANKAR RAMAN P. R. RAMESH
Membership No. 046930 Whole - time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 01915274)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939
Mumbai, May 8, 2024

527
 Consolidated Statement of
changes in Equity

Consolidated Statement of Changes in Equity for the year ended March 31, 2024
A. Equity share capital
2023-24 2022-23
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 1,40,54,82,190 281.10 1,40,50,29,123 281.01
Add: Shares issued on exercise of employee stock options during the year 4,36,429 0.08 4,53,067 0.09
Less: Shares extinguished on buy-back 3,12,50,000 6.25 – –
Issued, subscribed and fully paid up equity shares outstanding at the end of the year 1,37,46,68,619 274.93 1,40,54,82,190 281.10

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 1-4-2022 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
Profit for the year (a) – – – – – 10470.72 – – – – 10470.72 2059.90 12530.62
Other comprehensive income for the year (b) – – – – – (19.06) 81.53 (644.88) (188.02) 15.66 (754.77) (203.80) (958.57)
Total comprehensive income for the year (a+b) – – – – – 10451.66 81.53 (644.88) (188.02) 15.66 9715.95 1856.10 11572.05
Issue of equity shares on exercise of employee share
options – – 10.22 – – – – – – – 10.22 – 10.22
Transfer on account of exercise of employee share
options – – 41.23 (41.23) – – – – – – – – –
Transfer to non-financial assets/liabilities – – – – – – – 68.11 – – 68.11 – 68.11
Transfer from/(to) retained earnings – (6.24) – (19.21) 65.11 (39.66) – – – – – – –
Employee share options (net) – – – 155.88 – – – – – – 155.88 66.75 222.63
Dividend paid – – – – – (3091.42) – – – – (3091.42) (613.59) (3705.01)
Net gain/loss on transactions with non-controlling
interests – – – – – 60.16 – – – – 60.16 (60.16) –
Decrease in non-controlling interests due to dilution/
divestment/acquisition – – – – – (0.70) – – – – (0.70) 26.10 25.40
Balance as at 31-3-2023 282.44 328.86 8770.19 467.09 3775.58 74519.94 777.53 141.76 (89.82) 71.28 89044.85 14241.27 103286.12

528 Integrated Annual Report 2023-24

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Consolidated Statement of Changes in Equity for the year ended March 31, 2024 (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 1-4-2023 282.44 328.86 8770.19 467.09 3775.58 74519.94 777.53 141.76 (89.82) 71.28 89044.85 14241.27 103286.12
Profit for the year (c) – – – – – 13059.11 – – – – 13059.11 2487.99 15547.10
Other comprehensive income for the year (d) – – – – – 14.28 13.14 110.34 97.94 – 235.70 171.71 407.41
Total comprehensive income for the year (c+d) – – – – – 13073.39 13.14 110.34 97.94 – 13294.81 2659.70 15954.51
Buyback of equity shares – – (8770.19) – – (1223.56) – – – – (9993.75) – (9993.75)
Tax on buyback of equity shares – – – – – (2253.33) – – – – (2253.33) – (2253.33)
Expenses for buyback of equity shares (net of tax) – – – – – (26.55) – – – – (26.55) – (26.55)
Amount transferred to capital redemption reserve
upon buyback – 6.25 – – – (6.25) – – – – – – –
Issue of equity shares on exercise of employee share
options – – 9.56 – – – – – – – 9.56 – 9.56
Transfer on account of exercise of employee share
options 41.00 (41.00) – – – – – – – – –
Transfer to non-financial assets/liabilities – – – – – – – 22.24 – – 22.24 – 22.24
Transfer from/(to) retained earning – – – (12.17) 455.98 (443.81) – – – – – – –
Employee share options (net) – – – 136.62 – – – – – – 136.62 137.15 273.77
Dividend paid (including special dividend) – – – – – (4216.95) – – – – (4216.95) (855.16) (5072.11)
Increase in non-controlling interest due to dilution/
divestment/acquisition – – – – – 66.81 – – – – 66.81 7.46 74.27
Balance as at 31-3-2024 282.44 335.11 50.56 550.54 4231.56 79489.69 790.67 274.34 8.12 71.28 86084.31 16190.42 102274.73

In terms of our report attached

For DELOITTE HASKINS & SELLS LLP
Chartered Accountants S. N. SUBRAHMANYAN
Firm’s Registration No.117366W/W-100018 Chairman & Managing Director
by the hand of (DIN 02255382)

RUPEN K. BHATT
Partner R. SHANKAR RAMAN P. R. RAMESH
Membership No. 046930 Whole - time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 01915274)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939
Mumbai, May 8, 2024

529
 Consolidated Statement of
Cash Flows

Consolidated Statement of Cash Flows for the year ended March 31, 2024
v crore
Particulars 2023-24 2022-23
A. Cash flow from operating activities:
Profit before exceptional items and tax 20423.50 16973.04
Adjustments for:
Dividend received (208.49) (6.28)
Depreciation, amortisation, impairment and obsolescence 3682.33 3502.25
Exchange difference on items grouped under financing/investing activities (20.53) (1.83)
Effect of exchange rate changes on cash and cash equivalents (2.37) (66.92)
Finance costs 3545.85 3207.16
Interest income (2447.07) (1817.47)
(Profit)/loss on sale of property, plant and equipment, investment property and intangible assets (net) (95.44) (167.65)
(Profit)/loss on sale/fair valuation of investments (net) (734.20) (52.87)
Employee stock option-discount 297.63 249.51
(Gain)/loss on disposal of subsidiary (2.65) –
Impairment of investment in financial instruments 1055.47 716.20
(Profit)/loss on transfer of business undertaking in Development Projects business (511.73) –
(Gain)/loss on de-recognition of lease liability/right-of-use assets (52.27) (10.16)
Capital subsidy from Government 1.38 –
Operating profit before working capital changes 24931.41 22524.98
Adjustments for :
(Increase)/decrease in trade and other receivables (10548.40) (4495.26)
(Increase)/decrease in inventories 244.68 (475.75)
Increase/(decrease) in trade and other payables 14506.53 5412.71
Cash generated from operations before financing activities 29134.22 22966.68
(Increase)/decrease in loans and advances towards financing activities (5587.89) 4937.44
Cash generated from operations 23546.33 27904.12
Direct taxes refund/(paid) [net] (5280.05) (5127.16)
Net cash generated from operating activities 18266.28 22776.96
B. Cash flow from investing activities:
Purchase of property, plant and equipment, investment property and intangible assets (4516.53) (4143.79)
Sale of property, plant and equipment, investment property and intangible assets 306.06 350.37
Purchase of non-current investments (4889.46) (3036.34)
Sale of non-current investments 2127.87 827.15
(Purchase)/sale of current investments (net) 2803.49 (6083.66)
Change in other bank balance and cash not available for immediate use 2697.75 (661.77)
Deposits/loans repaid by associates, joint ventures and third parties 151.72 19.05
Interest received 2408.16 1608.99
Dividend received from joint ventures/associates 129.83 151.14
Dividend received from other investments 96.25 6.28
Consideration received on disposal of subsidiaries/joint venture 214.67 2887.30
Consideration received on transfer of business undertaking in Development Projects business 651.33 –
Net payments for transfer of discontinued operations – (96.99)
Consideration paid on acquisition of subsidiaries (including contingent consideration) (13.14) (131.22)
Cash and cash equivalents acquired pursuant to acquisition of subsidiaries 0.01 6.66
Cash and cash equivalents of subsidiaries discharged pursuant to divestment/classification to held for sale (4.97) (14.87)
Net cash generated from/(used in) investing activities 2163.04 (8311.70)

530 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Consolidated Statement of Cash Flows for the year ended March 31, 2024 (contd.)
v crore
Particulars 2023-24 2022-23
C. Cash flow from financing activities:
Proceeds from issue of share capital (including share application money) [net] 9.65 10.31
Buyback of equity shares (10000.00) –
Tax on buy-back of equity shares (2253.33) –
Expenses on buy-back of equity shares (26.55) –
Proceeds from non-current borrowings [Note 50] 23125.43 27940.93
Repayment of non-current borrowings [Note 50] (24356.65) (32794.99)
Proceeds from/ (repayment of) other borrowings (net) [Note 50] (2871.15) 357.40
Payment (to)/from non-controlling interest (net) (808.09) (612.58)
Settlement of derivative contracts related to borrowings 49.65 87.93
Dividends paid (4216.95) (3091.42)
Repayment of lease liability [Note 50] (459.89) (423.34)
Interest paid on lease liability (167.21) (158.10)
Interest paid (including cash flows on account of interest rate swaps) (3438.27) (2888.63)
Net cash used in financing activities (25413.36) (11572.49)
Net (decrease)/increase in cash and cash equivalents (A + B + C) (4984.04) 2892.77
Cash and cash equivalents at beginning of the year [Note 14] 16926.69 13770.24
Effect of exchange rate changes on cash and cash equivalents 15.85 263.68
Cash and cash equivalents at end of the year [Note 14] 11958.50 16926.69

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. 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 Chairman & Managing Director
by the hand of (DIN 02255382)

RUPEN K. BHATT
Partner R. SHANKAR RAMAN P. R. RAMESH
Membership No. 046930 Whole - time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 01915274)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939
Mumbai, May 8, 2024

531
 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, 2024.

The Group is an Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing and Services, operating across multiple geographies.
Further details of the business operations of the Group are mentioned in Note [46] Segment Information.

NOTE [1](II)
Material Accounting Policy Information
(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 8, 2024.

(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 Ind AS 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.

(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

532 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](II)
Material Accounting Policy Information (contd.)
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.

Upon classification of investment in joint ventures and/or associates as held for sale, equity accounting is discontinued in respect of that
interest.

(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

533
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](II)
Material Accounting Policy Information (contd.)
for recognition are recognised at their fair values at the acquisition date. Changes in the fair value of the contingent consideration that
qualify as measurement period adjustments, are adjusted retrospectively with corresponding adjustments to goodwill or capital reserve as
the case maybe, else recognised in the Statement of Profit and Loss.

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.

After initial recognition, goodwill arising on consolidation is tested for impairment annually and measured at cost less accumulated
impairment losses, if any. 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 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 using input method 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 as it best depicts the transfer of control that occurs as costs are
incurred.

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.

534 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](II)
Material Accounting Policy Information (contd.)
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.
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. With respect to contracts, where
the outcome of the performance obligation can not be reasonably measured, but the costs incurred towards satisfaction of
performance obligation are expected to be recovered, the revenue is recognised only to the extent of costs incurred.
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 “Unbilled revenue”. 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 “Excess of billing over revenue”. 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 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. In the case of the development project business and the realty business, revenue includes profit on sale of investment properties
or sale of business undertaking/stake in the subsidiary and/or joint venture companies as the sale/divestments are inherent in the
business model.
E. 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.
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 above.

535
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](II)
Material Accounting Policy Information (contd.)
F. 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.
G. 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.
H. Commission income is recognised when the terms of the contract are fulfilled.
I. Course fees/subscription income is recognised over time as per the course/subscription duration and agreed terms.
J. Revenue from charter hire is recognised as per the terms of the time charter agreement.
K. Revenue from operation and maintenance services of power plant receivable under the Power Purchase Agreement is recognised on
accrual basis.
L. 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.
M. Warranty and other related obligation
The Group accounts for provision of warranty, return, refund and other similar obligations in accordance with Ind AS 37 “Provisions,
Contingent Liabilities and Contingent Assets”. Refer Note [1(ab)] below for policy on provisions, contingent liabilities and contingent
assets.

(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 export is done or 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.

536 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](II)
Material Accounting Policy Information (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 below).

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
above.

(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
Group 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,
if any. 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”.

537
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](II)
Material Accounting Policy Information (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 two to ten years;

(ii) Technical know-how: over a period of three to eight 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 six years;

(vi) Platforms and courses: over a period of five years;

(vii) Rights under licensing agreement: over a period of six years;

(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 financial year, the carrying amounts of PPE, investment property, intangible assets and investments in joint
ventures and associates 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, intangible assets and investments in joint ventures and associates are tested for
impairment so as to determine the impairment loss, if any. Goodwill and intangible assets not available for use 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 of disposal 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 of disposal 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 (post-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 recognised earlier is subject to full or partial reversal, the carrying amount of the asset (or cash generating
unit), except impairment loss allocated to 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.

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](II)
Material Accounting Policy Information (contd.)
(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.

B. Defined benefit plans: The employees’ gratuity fund schemes and employee provident fund schemes managed by board of
trustees established by the Group, 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 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
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) Other long-term employee benefits:

The obligation recognised in respect of other long-term benefits 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 above.

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 cost 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 Group’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, 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.

539
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](II)
Material Accounting Policy Information (contd.)
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 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.

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sublease separately. The sublease is
classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.

In case of sale and leaseback transactions, the Group first considers whether the initial transfer of the underlying asset to the buyer-
lessor is a sale by applying the requirements of Ind AS 115. If the transfer qualifies as a sale and the transaction is at market terms, the
Group effectively derecognises the asset, recognises a ROU asset (and lease liability) and recognises in Statement of Profit and Loss, the
gain or loss relating to the buyer-lessor’s rights in the underlying asset.

(Also refer to policy on Property, Plant and Equipment above)

(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 fair value excepting for
trade receivables not containing a significant financing component are initially measured at transaction price. 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.

540 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](II)
Material Accounting Policy Information (contd.)
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.

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 (ECL) 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.

541
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](II)
Material Accounting Policy Information (contd.)
(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.

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.

542 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](II)
Material Accounting Policy Information (contd.)
(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
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.

(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) Earnings per share

Basic earnings per share is computed using the net profit or loss after tax for the year attributable to the equity shareholders and
weighted average number of shares outstanding during the year.

Diluted earnings per share is computed using the net profit or loss after tax for the year attributable to the shareholders and weighted
average number of equity and potential equity shares outstanding during the year, except where the result would be anti-dilutive.

(w) 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
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.

(x) 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

543
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](II)
Material Accounting Policy Information (contd.)
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.

(y) 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;

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, liability, 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.

(z) 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 business undertaking/stake in the subsidiary and/or joint venture companies under
development 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) Development 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 not allocable to segments is included in “Unallocable corporate income net of expenditure”.

544 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](II)
Material Accounting Policy Information (contd.)
(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 net of expenditure”. Segment result 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) Development 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 also includes the fair value of the employee stock options which is
accounted as employee compensation cost [Note 1(x) above] 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

(aa) 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.
(ab) 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 possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of
one or more uncertain future events not wholly within the control of the entity; or

545
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [1](II)
Material Accounting Policy Information (contd.)
(ii) a present obligation arising from past events where:

• it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

• the amount of the obligation cannot be measured with sufficient reliability.

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.

(ac) 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.

(ad) 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.

(ae) 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.

(af) 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)
Recent Pronouncement
There are no standards of accounting or any addendum thereto, prescribed by Ministry of Corporate Affairs under section 133 of the
Companies Act, 2013, which are issued and not effective as at March 31, 2024.

546 Integrated Annual Report 2023-24

 Notes forming part of the Consolidated Financial Statements (contd.)
NOTE [2]
Property, Plant and Equipment and Capital work-in-progress
v crore
Cost Depreciation Impairment Book value
Foreign Foreign
Class of assets As at As at Up to For the Up to Up to As at
Additions Transfer* currency Deductions Transfer* currency Deductions
1-4-2023 31-3-2024 31-3-2023 year 31-3-2024 31-3-2024 31-3-2024
fluctuation fluctuation
Land
Freehold 855.27 0.71 (1.67) – 0.08 854.23 – – – – – – – 854.23
leasehold 145.63 – – – – 145.63 14.52 1.59 – – – 16.11 – 129.52
Sub-total 1000.90 0.71 (1.67) – 0.08 999.86 14.52 1.59 – – – 16.11 – 983.75
Buildings 4623.52 1,319.07 1.51 0.44 39.95 5904.59 1159.55 202.17 1.31 1.12 7.95 1356.20 185.64 4362.75
Plant & equipment
Owned 10506.80 2169.12 8.96 6.11 268.01 12422.98 5833.36 1,373.18 8.70 5.27 224.04 6996.48 22.64 5403.86
Leased out 324.22 – – – 177.62 146.60 221.58 13.38 – – 154.75 80.21 – 66.39
Sub-total 10831.02 2169.12 8.96 6.11 445.63 12569.58 6054.94 1,386.56 8.70 5.27 378.78 7076.69 22.64 5470.26
Computers
Owned 2447.28 291.97 – 1.55 169.15 2571.65 1614.29 338.20 – 1.09 166.86 1786.72 – 784.93
Leased out 6.27 – – – – 6.27 6.27 – – – – 6.27 – –
Sub-total 2453.55 291.97 – 1.55 169.15 2577.92 1620.56 338.20 – 1.09 166.86 1792.99 – 784.93
Overview
Corporate

Office equipment
Owned 715.61 105.76 (18.61) 1.05 42.21 761.60 544.28 76.37 (9.22) 0.85 43.23 569.05 – 192.55
Leased out 0.02 – – – – 0.02 – – – – – – – 0.02
Sub-total 715.63 105.76 (18.61) 1.05 42.21 761.62 544.28 76.37 (9.22) 0.85 43.23 569.05 – 192.57
Furniture and fixtures
Owned 491.46 178.88 – 0.91 53.05 618.20 353.29 64.60 – 0.82 44.02 374.69 0.06 243.45
Leased out 14.36 – – – – 14.36 7.20 – – – – 7.20 – 7.16
Sub-total 505.82 178.88 – 0.91 53.05 632.56 360.49 64.60 – 0.82 44.02 381.89 0.06 250.61
Vehicles 402.54 72.74 – 1.27 69.00 407.55 244.30 45.11 – 1.06 59.42 231.05 – 176.50
Management

Other assets
Aircraft 249.83 0.09 – – – 249.92 85.54 14.80 – – – 100.34 – 149.58
Ships 286.39 37.12 – – – 323.51 92.12 21.31 – – – 113.43 – 210.08
Shiplift, marine structures
Discussion and Analysis

and related assets 683.07 – – – – 683.07 299.72 29.54 – – – 329.26 – 353.81

Breakwater structures 233.43 – – – – 233.43 49.38 5.01 – – – 54.39 – 179.04
Leasehold Improvements 469.52 125.28 – 1.96 54.76 542.00 351.32 56.69 – 0.13 49.91 358.23 – 183.77
Sub-total 1922.24 162.49 – 1.96 54.76 2031.93 878.08 127.35 – 0.13 49.91 955.65 – 1076.28
Total 22455.22 4300.74 (9.81) 13.29 873.83 25885.61 10876.72 2241.97 0.79 10.34 750.19 12379.63 208.34 13297.64
Report

Add: Capital work-in-progress 2897.04

Integrated

16194.68

* Transfer within property, plant and equipment and Transfer (to) / from investment property
Reports
Statutory
Financial

547
Statements
 Notes forming part of the Consolidated Financial Statements (contd.)

548
NOTE [2] (contd.)

v crore
Cost Depreciation Impairment Book value
Foreign Foreign
Class of assets As at Business As at Up to Business For the Up to Up to As at
Additions Transfer* currency Deductions Transfer* currency Deductions
1-4-2022 combination 31-3-2023 31-3-2022 combination year 31-3-2023 31-3-2023 31-3-2023
fluctuation fluctuation
Land
Freehold 856.64 – 0.06 – – 1.43 855.27 – – – – – – – – 855.27
leasehold 145.69 – – (0.06) – – 145.63 12.82 – 1.70 – – – 14.52 – 131.11
Sub-total 1002.33 – 0.06 (0.06) – 1.43 1000.90 12.82 – 1.70 – – – 14.52 – 986.38
Buildings 4485.56 – 119.38 22.16 18.74 22.32 4623.52 1005.73 – 160.66 3.19 5.79 15.82 1159.55 215.34 3248.63
Plant & equipment
Owned 8941.57 0.02 1752.42 (4.23) 34.92 217.90 10506.80 4989.06 0.02 1014.14 (1.80) 29.58 197.64 5833.36 26.63 4646.81
Leased out 323.59 – 0.63 – – – 324.22 204.95 – 16.63 – – 221.58 – 102.64
Sub-total 9265.16 0.02 1753.05 (4.23) 34.92 217.90 10831.02 5194.01 0.02 1030.77 (1.80) 29.58 197.64 6054.94 26.63 4749.45
Computers
Owned 2066.11 20.29 448.69 (0.11) 4.13 91.83 2447.28 1340.77 18.14 340.65 (0.11) 2.61 87.77 1614.29 – 832.99
Leased out 6.27 – – – – – 6.27 6.27 – – – – – 6.27 – –
Sub-total 2072.38 20.29 448.69 (0.11) 4.13 91.83 2453.55 1347.04 18.14 340.65 (0.11) 2.61 87.77 1620.56 – 832.99
Office equipment
Owned 630.37 1.05 94.29 0.16 4.05 14.31 715.61 481.84 0.89 70.56 0.16 3.50 12.67 544.28 0.01 171.32
Leased out 0.02 – – – – – 0.02 – – – – – – – – 0.02
Sub-total 630.39 1.05 94.29 0.16 4.05 14.31 715.63 481.84 0.89 70.56 0.16 3.50 12.67 544.28 0.01 171.34
Furniture and fixtures
Owned 481.06 0.13 39.77 (0.30) 5.49 34.69 491.46 318.74 0.12 63.02 (0.28) 4.21 32.52 353.29 0.24 137.93
Leased out 14.36 – – – – – 14.36 7.20 – – – – – 7.20 – 7.16
Sub-total 495.42 0.13 39.77 (0.30) 5.49 34.69 505.82 325.94 0.12 63.02 (0.28) 4.21 32.52 360.49 0.24 145.09
Vehicles
Owned 404.64 0.36 64.60 – 7.45 74.51 402.54 256.84 0.32 43.48 – 6.69 63.03 244.30 – 158.24
Leased out 0.67 – – – – 0.67 – 0.49 – 0.02 – – 0.51 – – –
Sub-total 405.31 0.36 64.60 – 7.45 75.18 402.54 257.33 0.32 43.50 – 6.69 63.54 244.30 – 158.24
Other assets
Aircraft 244.45 – 5.38 – – – 249.83 71.70 – 13.84 – – – 85.54 – 164.29
Ships 264.26 – 22.13 – – – 286.39 71.02 – 21.10 – – – 92.12 – 194.27
Shiplift, marine structures and
related assets 683.07 – – – – – 683.07 269.17 – 30.55 – – – 299.72 – 383.35
Breakwater structures 233.43 – – – – – 233.43 44.37 – 5.01 – – – 49.38 – 184.05
Leasehold Improvements 419.05 – 51.41 – 0.99 1.93 469.52 305.72 – 46.94 – 0.58 1.92 351.32 – 118.20
Sub-total 1844.26 – 78.92 – 0.99 1.93 1922.24 761.98 – 117.44 – 0.58 1.92 878.08 – 1044.16
Total 20200.81 21.85 2598.76 17.62 75.77 459.59 22455.22 9386.69 19.49 1828.30 1.16 52.96 411.88 10876.72 242.22 11336.28
Add: Capital work-in-progress 2949.09
14285.37

* Transfer within property, plant and equipment and Transfer (to) / from investment property
Notes forming part of the
Consolidated Financial Statements

Integrated Annual Report 2023-24

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

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [2] (contd.)
Notes:
(a) Carrying value of property, plant and equipment pledged as collateral for liabilities and/or commitments as at March 31, 2024 ¢ 37.43
crore (previous year: ¢ 27.83 crore)

(b) Depreciation for the year includes impact of foreign currency fluctuation ¢ 0.64 crore (previous year: ¢ 1.54 crore) and depreciation
capitalised ¢ 0.16 crore (previous year: ¢ 0.06 crore)

(c) The cumulative impairment is as below:

¢ crore
Particulars 2023-24 2022-23
Opening Balance 242.22 236.14
Add: Foreign currency fluctuation – 6.08
Less: Reversal of impairment (1.94) –
Less: Reduction on sale of assets (31.94) –
Closing Balance 208.34 242.22

(d) Owned assets given on operating lease have been presented separately under respective class of assets as “Leased out” in accordance
with 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 60
3 Plant and equipment 3 35
4 Computers 2 7
5 Office equipment 3 15
6 Furniture and 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 31-3-2024 As at 31-3-2023
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 2209.22 572.91 96.01 18.90 2897.04 2329.75 485.95 40.38 93.01 2949.09
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.

549
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [3]
Investment Property v crore
Cost Depreciation Impairment Book value
Class of assets As at As at Up to For the As at As at As at
Additions Transfer* Deductions Transfer* Deductions
1-4-2023 31-3-2024 31-3-2023 year 31-3-2024 31-3-2024 31-3-2024
Land 1088.78 – (15.84) 273.47 799.47 59.98 12.66 – 14.87 57.77 – 741.70
Buildings 1730.29 36.50 (1.51) 372.88 1392.40 199.74 28.04 (0.98) 29.14 197.66 – 1194.74
Total 2819.07 36.50 (17.35) 646.35 2191.87 259.72 40.70 (0.98) 44.01 255.43 – 1936.44
Add: Capital work-in-progress 254.93
2191.37
* Transfer (to) / from property, plant and equipment/inventories
v crore
Cost Depreciation Impairment Book value
Class of assets As at As at Up to For the As at As at As at
Additions Transfer* Deductions Transfer* Deductions
1-4-2022 31-3-2023 31-3-2022 year 31-3-2023 31-3-2023 31-3-2023
Land 1141.00 – 0.06 52.28 1088.78 44.39 22.55 – 6.96 59.98 – 1028.80
Buildings 1867.94 8.76 (38.92) 107.49 1730.29 143.03 69.73 (3.40) 9.62 199.74 5.18 1525.37
Total 3008.94 8.76 (38.86) 159.77 2819.07 187.42 92.28 (3.40) 16.58 259.72 5.18 2554.17
Add: Capital work-in-progress 806.05
3360.22
* Transfer (to) / from property, plant and equipment/inventories

Notes:
(a) Carrying value of Investment property pledged as collateral for liabilities and/or commitments and having restriction on title as at March
31, 2024: Nil (previous year: Nil)
(b) Useful life of building included in investment property: 3 to 60 years
(c) Amounts recognised in the Statement of Profit and Loss in respect of investment property: ¢ crore
Sr. no. Particulars 2023-24 2022-23
1 Rental income derived from investment property 144.64 131.46
2 Direct operating expenses arising from investment property that generated rental income 14.12 13.05
3 Direct operating expenses arising from investment property that did not generate rental – –
income
(d) Fair value of investment property as at March 31, 2024 ¢ 6024.49 crore (previous year: ¢ 8157.81 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 ¢ 2855.87 crore. (previous year ¢ 968.02 crore). Valuation is based on government rates, market
research, market trend and comparable values as considered appropriate.
(f) Impairment on capital work-in-progress recognised in the Statement of Profit and Loss during the year is ¢ Nil (previous year
¢ 112.69 crore).
(g) Ageing of Capital work-in-progress v crore
As at 31-3-2024 As at 31-3-2023
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 60.68 12.21 8.32 173.72 254.93 37.85 172.14 91.82 504.24 806.05
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.

550 Integrated Annual Report 2023-24

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

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [4]
Goodwill
v crore

Cost Impairment Book value

Foreign
Class of assets As at As at As at As at
currency Deductions
1-4-2023 31-3-2024 31-3-2024 31-3-2024
fluctuation
Goodwill on consolidation 7848.57 6.05 5.64 7848.98 48.10 7800.88
v crore

Cost Impairment Book value

Foreign
Class of assets As at Business As at As at As at
currency
1-4-2022 Combination 31-3-2023 31-3-2023 31-3-2023
fluctuation
Goodwill on consolidation 7735.09 74.57 38.91 7848.57 49.92 7798.65
Note: Impairment recognised in the Statement of Profit and Loss during the year: Nil (previous year: Nil).
Segment wise Goodwill
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Infrastructure Projects – 3.82
Energy Projects 121.86 121.86
Hi-Tech Manufacturing 4.49 4.49
IT & Technology Services 7362.10 7356.06
Development Projects 208.19 208.19
Others 104.24 104.23
Total 7800.88 7798.65
The goodwill impairment testing is performed at the level of the cash generating unit which represents the smallest identifiable group of
assets that generates independent cash flows. The impairment testing is performed annually or whenever there is an indication that the cash
generating unit to which the goodwill has been allocated may be impaired. Refer Note 1[II](o) for policy on impairment of assets.
In determining the value-in-use, cash flow projections approved by appropriate level of management are considered. Key assumptions
on which management has based its determination of value-in-use includes estimated growth rates (including terminal growth rates)
and discount rates. In circumstances where a reliable value-in-use estimate is difficult to make and market value of the asset or the cash
generating unit is readily available, the latter is used for the determination of recoverable amount with appropriate adjustments, as applicable.
Cash flow projections are usually considered for next five years except in case of service concession arrangement covering the concession
period. Cash flows projections beyond the five‐year period are extrapolated using terminal growth rates.
NOTE [5]
Other Intangible assets and Intangible assets under development
v crore
Cost Amortisation Book value
Foreign Foreign
Class of assets As at As at Up to For the Up to As at
Additions currency Deductions currency Deductions
1-4-2023 31-3-2024 31-3-2023 year 31-3-2024 31-3-2024
fluctuation fluctuation
Fare collection rights 16675.53 12.55 – 24.02 16664.06 994.53 278.95 – – 1273.48 15390.58
Specialised software 1942.79 201.96 9.63 5.83 2148.55 1594.29 230.75 9.53 4.74 1829.84 318.71
Technical know-how 120.66 53.66 – – 174.33 104.34 22.11 – – 126.45 47.87
Trade names 306.06 – 0.08 – 306.14 305.86 – 0.28 – 306.14 –
New Product Design
and Development 8.22 0.73 – 1.50 7.45 7.85 0.17 – 1.32 6.70 0.75
Customer contracts
and relationship 3390.98 – 3.64 – 3394.62 1599.51 300.48 5.28 – 1905.27 1489.35
Rights under licensing
agreement 139.70 – 2.12 – 141.82 50.34 23.46 0.94 – 74.74 67.08
Platforms and Courses 105.38 17.43 – – 122.81 24.62 28.03 – – 52.65 70.17
Total 22689.32 286.33 15.48 31.35 22959.78 4681.34 883.95 16.03 6.06 5575.26 17384.52
Add: Intangible assets under development 147.97
17532.49

551
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [5] (contd.)
v crore
Cost Amortisation Book value
Foreign Foreign
Class of assets As at Business As at Up to Business For the Up to As at
Additions currency Deductions currency Deductions
1-4-2022 combination 31-3-2023 31-3-2022 combination year 31-3-2023 31-3-2023
fluctuation fluctuation
Fare collection rights 16659.36 – 16.17 – – 16675.53 715.79 – 278.74 – – 994.53 15681.00
Specialised software 1736.76 11.45 214.57 4.78 24.77 1942.79 1395.07 10.96 208.08 4.59 24.41 1594.29 348.50
Technical know-how 120.66 – – – – 120.66 96.65 – 7.69 – – 104.34 16.32
Trade names 305.59 – – 0.47 – 306.06 172.08 – 133.65 0.13 – 305.86 0.20
New Product Design
and Development 8.98 – – – 0.76 8.22 8.12 – 0.32 – 0.59 7.85 0.37
Customer contracts
and relationship 3376.53 – – 14.45 – 3390.98 1268.27 – 319.57 11.67 – 1599.51 1791.47
Rights under licensing
agreement 128.85 – 10.85 – 139.70 24.95 – 22.77 2.62 – 50.34 89.36
Platforms and
Courses 76.91 – 28.47 – – 105.38 3.34 – 21.28 – – 24.62 80.76
Total 22413.64 11.45 259.21 30.55 25.53 22689.32 3684.27 10.96 992.10 19.01 25.00 4681.34 18007.98
Add: Intangible assets under development 116.48
18124.46

Notes:
(a) Amortisation for the year includes impact of foreign currency fluctuation ¢ 0.10 crore (previous year: ¢ Nil) and depreciation capitalised
¢ 0.30 crore (previous year: ¢ 0.30 crore)
(b) Details of addition in other intangible assets:
R crore
2023-24 2022-23
Class of assets Internal Acquired Internal Acquired
Total Total
development - external development - external
Fare collection Rights – 12.55 12.55 – 16.17 16.17
Specialised Software 82.46 119.50 201.96 49.20 165.37 214.57
Technical Know-how – 53.66 53.66 – – –
New Product Design and Development – 0.73 0.73 – – –
Platforms and Courses 16.22 1.21 17.43 28.47 – 28.47
Total 98.68 187.65 286.33 77.67 181.54 259.21

(c) Ageing of Intangible assets under development

v crore
As at 31-3-2024 As at 31-3-2023
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 98.24 49.73 – – 147.97 85.71 30.77 – – 116.48
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.

552 Integrated Annual Report 2023-24

 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 Cost” is as follows:
v crore
Class of Assets 2023-24 2022-23
Capital work-in-progress
Property, plant and equipment - building 52.30 19.47
Total 52.30 19.47

(2) The average borrowing cost used for capitalisation is 7.29% (previous year : 6.68%).

NOTE [6]
Non-current assets: Financial assets - Other investments
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Equity instruments 124.31 316.16
Preference shares 165.24 180.69
Government and trust securities 1761.71 373.46
Debentures and bonds 477.76 549.16
Security receipts 6769.51 6321.07
Units of fund 27.37 29.49
Other investments 100.04 150.00
9425.94 7920.03

NOTE [7]
Non-current assets: Financial assets - Loans towards financing activities
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Considered good - secured 28259.85 21605.35
Less : Allowance for expected credit loss 46.82 51.03
28213.03 21554.32
Considered good - unsecured 24369.91 19617.46
Less : Allowance for expected credit loss 518.06 438.35
Less : Impairment 1932.39 1932.39
21919.46 17246.72
Having significant increase in credit risk 1870.76 1931.92
Less : Allowance for expected credit loss 327.40 266.21
1543.36 1665.71
Credit impaired 2270.91 2196.86
Less : Allowance for expected credit loss 1792.00 1742.69
478.91 454.17
52154.76 40920.92

553
 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 31-3-2024 As at 31-3-2023
Loans and advances to related parties
Joint ventures and associates, considered good - unsecured 1319.17 1316.50
Less: Allowance for expected credit loss 1139.08 1139.76
180.09 176.74
Others loans
Considered good - unsecured 511.75 311.20
Less: Allowance for expected credit loss 216.38 131.94
295.37 179.26
475.46 356.00

NOTE [9]
Non-current assets: Financial assets - Others
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Security deposits
Considered good - unsecured 529.65 499.42
Less: Allowance for expected credit loss 41.66 41.82
487.99 457.60
Cash and bank balances not available for immediate use 194.91 128.82
Fixed deposits with banks (maturity more than 12 months) 478.52 1049.35
Forward contract receivables 757.59 300.43
Embedded derivative receivables 11.94 27.40
Other receivables [1]
21.13 2.18
1952.08 1965.78

[1]
Mainly includes deferred receivables, lease receivables and recoverable from banks.

NOTE [10]
Other non-current assets
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Capital advances:
Secured 4.21 1.47
Unsecured 76.20 36.22
80.41 37.69
Advance recoverable other than in cash 2076.14 2339.69
2156.55 2377.38

554 Integrated Annual Report 2023-24

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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 31-3-2024 As at 31-3-2023
Raw materials [include goods-in-transit ¢ 65.39 crore (previous year: ¢ 16.48 crore)] 840.58 638.77
Components [include goods-in-transit ¢ 12.48 crore (previous year: ¢ 10.67 crore)] 466.95 425.62
Construction materials [include goods-in-transit ¢ 119.58 crore (previous year: ¢ 275.00 crore)] 409.75 382.25
Manufacturing work-in-progress 347.81 326.81
Finished goods 85.13 98.29
Stock-in-trade (in respect of goods acquired for trading) [include goods-in-transit ¢ 53.45 crore
(previous year: ¢ 39.62 crore)] 228.30 364.92
Stores and spares [include goods-in-transit ¢ 2.56 crore (previous year: ¢ 3.17 crore)] 299.41 311.90
Loose tools [include goods-in-transit ¢ Nil crore (previous year: ¢ Nil crore)] 9.36 10.43
Property development projects (including land) 3932.90 4269.79
6620.19 6828.78

Note: During the year ¢ 24.76 crore (previous year ¢ 10.74 crore) was recognised as expense towards write-down of inventories (net).

NOTE [12]
Current assets: Financial assets - Investments
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Equity shares 16.14 40.31
Government and trust securities 6747.58 6210.69
Debentures and bonds 6713.72 7339.40
Mutual funds 11387.59 11608.92
Collateral borrowing and lending obligation (CBLO) 699.87 899.67
Commercial Paper 937.25 2515.31
InvITs 2694.57 802.08
Treasury bills and other investments 5760.91 6157.04
34957.63 35573.42

NOTE [13]
Current assets: Financial assets - Trade receivables
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Considered good - secured 13.05 13.67
Considered good - unsecured 53103.21 48785.63
Less: Allowance for expected credit loss 4353.75 4075.09
48749.46 44710.54
Credit impaired 248.34 347.07
Less: Allowance for expected credit loss 239.90 339.75
8.44 7.32
48770.95 44731.53

555
 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 31-3-2024
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 29895.27 12893.57 2748.51 2007.31 1360.25 2481.88 51386.79
- Credit impaired – 10.72 11.20 2.90 8.62 50.02 83.46
Disputed:
- Considered good 105.90 253.84 0.33 141.00 10.91 1217.49 1729.47
- Credit impaired – – – – – 164.88 164.88
Gross trade receivables 30001.17 13158.13 2760.04 2151.21 1379.78 3914.27 53364.60
Less: Allowance for expected credit loss 4593.65
48770.95

v crore
As at 31-3-2023
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 27634.95 10655.35 2949.83 2796.48 1104.20 2119.03 47259.84
- Credit impaired – 1.74 1.23 10.30 10.39 109.20 132.86
Disputed:
- Considered good 104.49 21.87 2.52 101.19 54.58 1254.81 1539.46
- Credit impaired – – – – – 214.21 214.21
Gross trade receivables 27739.44 10678.96 2953.58 2907.97 1169.17 3697.25 49146.37
Less: Allowance for expected credit loss 4414.84
44731.53

NOTE [14]
Current assets: Financial assets - Cash and cash equivalents
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Balance with banks 8536.70 9990.60
Cheques and drafts on hand 520.18 451.03
Cash on hand 7.17 14.86
Fixed deposits with banks (maturity less than 3 months) 2894.45 6470.20
11958.50 16926.69

556 Integrated Annual Report 2023-24

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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 31-3-2024 As at 31-3-2023
Fixed deposits with banks 1716.13 1937.19
Earmarked balances with banks - unclaimed dividend 137.16 145.04
Earmarked balances with banks - Section 4(2)(l)(D) of RERA[1] 12.85 11.66
Earmarked balances with banks - others 175.23 426.44
Margin money deposits with banks 941.61 2716.39
Margin money deposits with others – 4.23
Cash and bank balances not available for immediate use 416.91 351.96
3399.89 5592.91
[1]
Real Estate (Regulation and Development) Act, 2016

NOTE [16]
Current Assets: Financial Assets - Loans towards financing activities
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Considered good - secured 15320.61 23860.34
Less : Allowance for expected credit loss 33.28 35.53
Less : Net fair value changes 330.42 1008.63
14956.91 22816.18
Considered good - unsecured 19225.57 14836.92
Less : Allowance for expected credit loss 726.08 652.41
Less : Impairment 56.25 56.25
18443.24 14128.26
Having significant increase in credit risk 1418.88 3425.70
Less : Allowance for expected credit loss 94.55 99.79
Less : Net fair value changes 91.83 532.58
1232.50 2793.33
Credit Impaired 427.07 1633.87
Less : Net fair value changes 245.13 911.09
181.94 722.78
34814.59 40460.55

NOTE [17]
Current assets: Financial assets - Other loans
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Loans and advances to related parties
Considered good - unsecured 26.94 168.31
Others loans
Considered good - unsecured 79.60 82.84
106.54 251.15

557
 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 31-3-2024 As at 31-3-2023
Security deposits
Considered good - unsecured 685.25 541.53
Less: Allowance for expected credit loss 0.76 0.52
684.49 541.01
Receivables from related parties:
Joint ventures 107.03 152.26
107.03 152.26
Other recoverables 2790.22 1759.63
Forward contract receivables 407.38 564.40
Unbilled Revenue 1416.41 1684.35
Embedded derivative receivables 158.39 228.45
Doubtful advances:
Deferred credit sale of ships 27.11 27.11
Other loans and advances 192.16 327.06
219.27 354.17
Less: Allowance for expected credit loss 219.27 354.17
– –
5563.92 4930.10

NOTE [19]
Other current assets
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Contract assets [Note 47(d)(i)]
Unbilled revenue 45930.90 42169.63
Retention money 14194.43 13367.18
60125.33 55536.81
Advance recoverable other than in cash 10740.44 10355.98
Government grant receivable 12.12 14.61
Other loans and advances 0.99 0.67
Less: Allowance for expected credit loss 0.99 0.67
– –
Others 4.41 12.99
70882.30 65920.39

558 Integrated Annual Report 2023-24

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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 31-3-2024 As at 31-3-2023
Particulars Number of Number of
v crore v crore
shares shares
Authorised:
Equity shares of ¢ 2 each 40,18,50,00,000 8037.00 40,18,50,00,000 8037.00
Issued, subscribed and fully paid up:
Equity shares of ¢ 2 each 1,37,46,68,619 274.93 1,40,54,82,190 281.10

(b) Reconciliation of the number of equity shares and share capital:

As at 31-3-2024 As at 31-3-2023
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 1,40,54,82,190 281.10 1,40,50,29,123 281.01
Add: Shares issued on exercise of employee stock options during the year 4,36,429 0.08 4,53,067 0.09
Less: Shares extinguished on buy-back 3,12,50,000 6.25 – –
Issued, subscribed and fully paid-up equity shares outstanding at the end of the year 1,37,46,68,619 274.93 1,40,54,82,190 281.10

(c) Terms/rights attached to equity shares:

The company has only one class of share capital, i.e., equity shares having face value of ¢ 2 per share. Each holder of equity share is
entitled to one vote per share.

(d) Shareholders holding more than 5% of equity shares as at the end of the year:
As at 31-3-2024 As at 31-3-2023
Name of the shareholders Number of Shareholding Number of Shareholding
shares % shares %
L&T Employees Trust 19,48,87,516 14.18 19,25,58,158 13.70
Life Insurance Corporation of India 15,17,12,116 11.04 16,04,73,308 11.42
(e) Shares reserved for issue under options outstanding on un-issued share capital:
As at 31-3-2024 As at 31-3-2023
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] 16,29,198 0.33 [2]
11,74,574 0.23[2]
[1]
Note 20(h) below for terms of employee stock option schemes
[2]
The equity shares will be issued at a premium of ¢ 27.41 crore (previous year: ¢ 25.57 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, 2024 are NIL (previous period of five years ended March 31, 2023: 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, 2024 – NIL (previous period of five years ended March 31, 2023: NIL).

(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. During the year company has issued the new ESOP series 2006(B) in which options are vested equally over a period
of 4 years. The options are vested equally over a period of 4 years for series 2003(B), 2006(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.

559
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [20] (contd.)
(B) The details of the grants under the aforesaid schemes are summarised below:
Sr. 2003(B) 2006(A) 2006(B)
Series reference
No. 2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
i. Grant price-(¢) 7.80 7.80 267.10 267.10 267.10 –
ii. Grant dates 23-5-2003 onwards 1-7-2007 onwards 8-7-2023 onwards
Iii. Vesting commences on 23-5-2004 onwards 1-7-2008 onwards 8-7-2024 onwards
iv. Options granted and outstanding at the beginning
of the year 2,14,553 2,79,959 9,60,021 14,38,460 – –
v. Options lapsed 20,995 17,809 53,320 94,393 5,600 –
vi. Options granted 4,92,308 21,424 – – 4,78,660 –
vii. Options exercised 77,380 69,021 3,59,049 3,84,046 – –
viii. Options granted and outstanding at the end of the
year, of which 6,08,486 2,14,553 5,47,652 9,60,021 4,73,060 –
Options vested 12,880 18,719 2,38,138 3,43,562 – –
Options yet to vest 5,95,606 1,95,834 3,09,514 6,16,459 4,73,060 –
ix. Weighted average remaining contractual life of
options (in years) 5.78 4.88 2.97 3.59 6.31 –
(C) The number and weighted average exercise price of stock options are as follows:
2023-24 2022-23
Weighted Weighted
Particulars No. of stock average No. of stock average
options exercise price options exercise price
(R) (R)
i. Options granted and outstanding at the beginning of the year 11,74,574 219.74 17,18,419 224.86
ii. Options granted 9,70,968 135.63 21,424 7.80
iii. Options allotted 4,36,429 221.13 4,53,067 227.60
iv. Options lapsed 79,915 198.98 1,12,202 225.94
v. Options granted and outstanding at the end of the year 16,29,198 170.25 11,74,574 219.74
vi. Options exercisable at the end of the year out of (v) above 2,51,018 253.80 3,62,281 253.70
(D) Weighted average share price at the date of exercise for stock options exercised during the year is ¢ 2945.59 (previous year:
¢ 1779.07) 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 ¢ 2314.37 (previous year: ¢ 1496.52) per option.
(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 2023-24 2022-23
No.
i. Weighted average risk-free interest rate 7.05% 6.77%
ii. Weighted average expected life of options 2.75 Years 2.83 years
iii. Weighted average expected volatility 18.64% 25.03%
iv. Weighted average expected dividends over the life of the options ¢ 65.90 per option ¢ 62.26 per option
v. Weighted average share price ¢ 2479.86 per option ¢ 1553.63 per option
vi. Weighted average exercise price ¢ 135.63 per option ¢ 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.

560 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [20] (contd.)
(i) During the year ended March 31, 2024, the company paid the final dividend of ¢ 24 per equity share for the year ended March 31, 2023
amounting to ¢ 3373.56 crore and a special dividend of ¢ 6 per equity share amounting to ¢ 843.39 crore.
(j) The Board of Directors, at their meeting held on May 8, 2024 recommended a final dividend of ¢ 28 per equity share for the year ended
March 31, 2024, subject to approval of shareholders. On approval, the total dividend outgo is expected to be ¢ 3849.07 crore based on
number of shares outstanding as on March 31, 2024.
(k) Further, during the year ended March 31, 2024, the shareholders approved the proposal of buyback of equity shares of the Company,
as recommended by its Board of Directors. The settlement of all valid bids and extinguishment of equity shares bought back were
completed on September 28, 2023.
Accordingly, the Company has bought back 3,12,50,000 equity shares of face value of ¢ 2 each, representing 2.22% of the number of
equity shares in the paid-up share capital, at a price of ¢ 3,200 per share aggregating to ¢ 10000 crore. Consequently, the equity share
capital stands reduced by ¢ 6.25 crore. The premium on buyback of ¢ 9993.75 crore, transaction cost (net of tax) with respect to the
buyback of ¢ 26.37 crore and the tax on buyback of ¢ 2253.33 crore have been adjusted against securities premium account and free
reserves.
(l) Stock option scheme of subsidiary companies:
(i) LTIMindtree Limited
(A) Employee Stock Option Scheme 2015 (ESOS 2015)
Shares are granted to employees at an exercise price of not less than ¢ 1 per equity share or such higher price as determined
by the Board but shall not exceed the market price as defined in the Regulations. Shares shall vest over such term as
determined by the Nomination and Remuneration Committee not exceeding 5 years from the date of the grant.

On November 30, 2023, the special resolution dated May 22, 2021 passed by erstwhile Mindtree Limited relating to grant of
loan to the ‘LTIMindtree Employee Welfare Trust’ (formerly known as Mindtree Employee Welfare Trust) (‘ESOP Trust’) with a
view to enable the ESOP Trust to subscribe equity shares of the Company for implementation and administration of ESOP 2021
plan, has been partially modified and the shareholders of the Company, through postal ballot, have approved the grant of loan
to the ESOP Trust to subscribe equity shares of the Company for administration of ESOP Scheme 2015 along with ESOP 2021
plan, the aggregate value of loan shall not exceed the statutory ceiling of five (5%) percent of the paid-up capital and free
reserves of the Company.

(i) The details of the grant under the aforesaid scheme is summarised below:
Sr. ESOS 2015
No. Particulars 2023-24 2022-23
i. Grant price ¢1 ¢1
ii. Grant dates 10-6-2016 onwards
iii. Vesting commences on 10-6-2017 onwards
iv. Options granted & outstanding at the beginning of the year 9,27,942 3,25,915
v. Options granted during the year 30,872 7,66,815
vi. Options exercised during the year 1,56,666 1,35,016
vii. Options lapsed/cancelled during the year 1,60,172 29,772
viii. Options granted & outstanding at the end of the year 6,41,976 9,27,942
ix. Options vested at the end of the year out of (viii) above 1,32,537 73,565
x. Options unvested at the end of the year out of (viii) above 5,09,439 8,54,377
xi. Weighted average remaining contractual life of options (in years) 5.3 6.0
(ii) Weighted average share price at the date of exercise for stock options exercised during the year is ¢ 5298 per share
(previous year: ¢ 4761 per share).

561
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [20] (contd.)
(iii) 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. No. Particulars 2023-24 2022-23

i. Weighted average risk-free interest rate 7.12% 6.79%
ii. Weighted average expected life of options 2.5 years 2.5 years
iii. Weighted average expected volatility 32.98% 37.71%
iv. Weighted average expected dividends over the life of the options ¢ 205.59 ¢ 181.54
v. Weighted average share price ¢ 4970 ¢ 4776
vi. Weighted average exercise price ¢1 ¢1
vii. Method used to determine expected volatility Expected volatility is based on the historical
volatility of the company’s share price
(B) 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 ¢ 1 each. Shares under
this program are granted to employees at an exercise price of not less than ¢ 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.

(i) The details of the grant under the aforesaid scheme is summarised below:

ERSP 2012 [1]

Sr. No. Particulars
2023-24 2022-23
i. Grant price ¢ 10 ¢ 10
ii. Grant dates 24-7-2019 onwards
iii. Vesting commences on 24-7-2020 onwards
iv. Outstanding units/shares granted as at the beginning of the year 7,409 53,771
v. Options granted during the year – –
vi. Options exercised during the year 7,409 41,347
vii. Options lapsed/cancelled during the year – 5,015
viii. Options granted & outstanding at the end of the year – 7,409
ix. Options vested at the end of the year out of (viii) above – 7,409
x. Options unvested at the end of the year out of (viii) above – –
xi. Weighted average remaining contractual life of options (in years) – 0.0
[1] Based on letter of intent

(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 unutilised
options under ERSP 2012) to employees. The Nomination and Remuneration Committee administers the plan through a trust
established specifically for this purpose, called the LTIMindtree Employee Welfare Trust - formerly known as 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 Nomination and Remuneration Committee 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 Nomination and
Remuneration Committee. All stock options have a four-year vesting term. The options vest and become fully exercisable at

562 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [20] (contd.)
the rate of 25% each over a period of four years from the date of grant. Each option is entitled to 1 equity share of ¢ 1 each.
These options are exercisable within 6 years from the date of vesting.
Series A
Sr. No. Particulars
2023-24 2022-23
i. Grant price ¢ 10 ¢ 10
ii. Grant dates 9-8-2021 onwards
iii. Vesting commences on 9-8-2022 onwards
iv. Options granted & outstanding at the beginning of the year 1,71,624 2,27,736
v. Options granted during the year – 29,104
vi. Options exercised during the year 33,264 28,292
vii. Options lapsed/cancelled during the year 46,412 56,924
viii. Options granted & outstanding at the end of the year 91,948 1,71,624
ix. Options vested at the end of the year out of (viii) above 23,707 41,004
x. Options unvested at the end of the year out of (viii) above 68,241 1,30,620
xi. Weighted average remaining contractual life of options (in years) 6.0 7.0
The weighted average fair value of each option under the above mentioned Series A of ESOP 2021 plan was ¢ NIL (previous
year: ¢ 4508) using the Black-Scholes model with the following assumptions:

Sr. No. Particulars 2023-24 2022-23

i. Weighted average grant date share price – ¢ 4518
ii. Weighted average Exercise price – ¢ 10.00
iii. Dividend yield % – 0.20%
iv. Weighted average Expected life – 2.5 years
v. Weighted average risk-free interest rate – 6.28%
vi. Weighted average expected volatility – 36.39%
vii. Method used to determine expected volatility The expected volatility has been calculated based
on historic company share price

Series B
Sr. No. Particulars
2023-24 2022-23
i. Weighted average grant price ¢ 3268 ¢ 3268
ii. Grant dates 9-8-2021 onwards
iii. Vesting commences on 9-8-2022 onwards
iv. Options granted & outstanding at the beginning of the year 1,01,141 1,24,100
v. Options granted during the year – –
vi. Options exercised during the year 5,014 3,256
vii. Options lapsed/cancelled during the year 9,168 19,703
viii. Options granted & outstanding at the end of the year 86,959 1,01,141
ix. Options vested at the end of the year out of (viii) above 41,128 26,564
x. Options unvested at the end of the year out of (viii) above 45,831 74,577
xi. Weighted average remaining contractual life of options (in years) 6.0 7.0

563
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [20] (contd.)
(ii) L&T Technology Services Limited
(A) Employee stock option plan (ESOP)
(i) ESOP Scheme 2016, include Series A, in which the options are vested equally over a period of 5 years and Series B, in
which the options are vested equally over period of 4 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 from the date of grant
of options or six years from the date of first vesting or three years 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 company and shall not be more
than the market price as defined in the SEBI (Share Based Employee Benefits) Regulations,2021 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 2023-24 2022-23
i. Grant price ¢2 ¢2
ii. Grant dates 28-7-2016 onwards
iii. Vesting commences on 28-7-2017 onwards
iv. Options granted & outstanding at the beginning of the year 5,14,250 2,15,725
v. Options lapsed during the year 24,400 22,700
vi. Options granted during the year 16,400 3,97,200
vii. Options exercised during the year 1,45,700 75,975
viii. Options granted & outstanding at the end of the year 3,60,550 5,14,250
ix. Options vested at the end of the year out of (viii) above 47,150 50,350
x. Options unvested at the end of the year out of (viii) above 3,13,400 4,63,900
xi. Weighted average remaining contractual life of options (in years) 2.89 3.84
(B) Weighted average share price at the date of exercise for stock options exercised during the year is ¢ 4320.68 per share
(previous year: ¢ 3692.66 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.

(D) There were 16,400 new options granted during the year ended March 31, 2024. The fair value at grant date of options
granted during the year: ¢ 3369.50. The fair value at 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. No. Particulars 2023-24 2022-23
i. Weighted average exercise price ¢2 ¢2
ii. Grant date 26-Apr-23 21-Apr-22
iii. Expiry date 25-Apr-30 20-Apr-29
iv. Weighted average share price at grant date ¢ 3447.00 per option ¢ 4244.30 per option
v. Weighted average expected price volatility of company’s share 39.00% 40.52%
vi. Weighted average expected dividend yield over life of option 2.65% 2.07%
vii. Weighted average risk-free interest 6.96% 5.86%
viii. 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.

564 Integrated Annual Report 2023-24

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Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [20] (contd.)
(iii) L&T Finance Limited (formerly known as 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
2023-24 2022-23 2023-24 2022-23
i. Grant Price ¢ 44.20 ¢ 10.00[1]/Market Price
ii. Options granted & outstanding at the beginning of the year 5,63,750 9,48,250 2,75,38,744 4,01,58,040
iii. Options granted during the year – – 67,41,444 8,21,880
iv. Options lapsed/cancelled during the year – 1,88,000 32,49,742 80,02,047
v. Options exercised & shares allotted during the year 4,98,750 1,96,500 87,70,443 54,39,129
vi. Options granted & outstanding at the end of the year – – – –
vii. Options vested at the end of the year out of (vi) above 65,000 4,85,000 1,13,32,467 1,83,45,892
viii. Options unvested at the end of the year out of (vi) above – 78,750 1,09,27,536 91,92,852
ix. Weighted average remaining contractual life of options (in
years) 0.75 2.81 4.18 4.78
w.e.f. from July 10, 2019
[1]

(B) Weighted average fair values of options granted during the year is ¢ 118.74 (Previous year: ¢ 69.48) per options.

(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 2023-24 2022-23
i. Weighted average risk-free interest rate 7.20% 6.65%
ii. Weighted average expected life of options 2.77 years 2.75 years
iii. Weighted average expected volatility 36.53% 39.16%
iv. Weighted average expected dividends (¢) 5.54 per option 2.66 per option
v. Weighted average share price (¢) 131.38 per option 79.87 per option
vi. Weighted average exercise price (¢) 10.00 per option 10.00 per option
vii. 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.

565
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [21]
Other equity
v crore
Particulars As at 31-3-2024 As at 31-3-2023
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]
335.11 328.86
Securities premium [Note 1(II)(u)] 50.56 8770.19
Employee share options (net) [Note 1(II)(x)]
Employee share options outstanding 839.15 885.15
Deferred employee compensation expense (288.61) (418.06)
550.54 467.09
Statutory reserves
Debenture redemption reserve [2]
3.12 24.39
Reserve u/s 45-IC of the Reserve Bank India Act, 1934 [3] 3133.69 2676.44
Reserve u/s 29C of the National Housing Bank Act, 1987 [4] 11.09 11.09
Reserve u/s 36(1)(viii) of the Income-tax Act, 1961 [5] 1051.27 1031.27
Impairment reserve as per Reserve Bank of India [6] 32.39 32.39
4231.56 3775.58
Retained earnings 79489.69 74519.94
Foreign currency translation reserve [Note 1(II)(y)(iv)] 790.67 777.53
Hedging reserve [Note 1(II)(r)(iii)(B)]
Cash flow hedging reserve 279.01 146.53
Cost of hedging reserve (4.67) (4.77)
274.34 141.76
Debt instruments through Other comprehensive income [Note 1(II)(r)(i)(B)] 8.12 (89.82)
Equity instruments through Other comprehensive income [Note 1(II)(r)(i)(B)] 71.28 71.28
86084.31 89044.85
[1]
Capital redemption reserve: Created on:
a. Buyback of equity shares out of free reserves and securities premium in accordance with Section 69 of the Companies Act, 2013
b. 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]
Reserve u/s-45 IC of the Reserve Bank of India Act, 1934: Created by subsidiary(ies) by transferring amount not less than twenty per cent of its net
profit every year.
[4]
Reserve u/s 29C of the National Housing Bank Act, 1987: Created by subsidiary(ies) by transferring amount not less than twenty per cent of its net
profit every year.
[5]
Reserve u/s 36(1)(viii) of Income tax Act, 1961: Created by subsidiary(ies) by transferring an amount not exceeding twenty percent of the profits
derived from eligible business every year.
[6]
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.

566 Integrated Annual Report 2023-24

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Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [22]
Non-current liabilities: Financial liabilities - Borrowings
v crore
As at 31-3-2024 As at 31-3-2023
Particulars
Secured Unsecured Total Secured Unsecured Total
Redeemable non-convertible fixed rate debentures 26242.71 11577.02 37819.73 27896.07 9874.26 37770.33
Term loans from banks 12757.14 2138.92 14896.06 17392.98 2104.05 19497.03
Term loans from others – 318.09 318.09 – 35.37 35.37
Loans from financial institutions 3473.09 – 3473.09 3914.95 – 3914.95
42472.94 14034.03 56506.97 49204.00 12013.68 61217.68
Notes:
(a) Loans guaranteed by directors: ¢ Nil (previous year: ¢ Nil)

(b) Non-convertible debentures and borrowings from banks and financial institutions 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 31-3-2024 As at 31-3-2023
Forward contract payables 18.30 202.89
Embedded derivative payables – 4.89
Financial guarantee contracts 0.03 0.36
Due to others [1] 77.74 64.82
96.07 272.96
[1]
Mainly includes security deposits and liabilities towards capital goods

NOTE [24]
Non-current liabilities: Provisions
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Employee pension scheme [Note 52(b)(i)] 351.87 346.44
Post-retirement medical benefits plan [Note 52(b)(i)] 375.92 337.66
Provision for other employee benefits 13.90 11.22
Other provisions [Note 56(a)] 245.69 174.67
987.38 869.99
NOTE [25]
Other non-current liabilities
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Deferred Income in respect of Government Grants 585.00 64.64
Other payables 33.02 17.09
618.02 81.73

567
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [26]
Current liabilities: Financial liabilities - Borrowings
v crore
As at 31-3-2024 As at 31-3-2023
Particulars
Secured Unsecured Total Secured Unsecured Total
Loans repayable on demand 5785.00 3550.00 9335.00 6980.22 3665.02 10645.24
Short-term loans and advances from banks 7565.67 814.58 8380.25 5187.23 1846.03 7033.26
Loans from related parties – 207.67 207.67 – 202.04 202.04
Commercial paper – 9911.35 9911.35 – 13015.78 13015.78
13350.67 14483.60 27834.27 12167.45 18728.87 30896.32

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 31-3-2024 As at 31-3-2023
Particulars
Secured Unsecured Total Secured Unsecured Total
Redeemable non-convertible fixed rate debentures 7845.26 6549.07 14394.33 8373.71 5768.69 14142.40
Redeemable non-convertible floating rate debentures – – – – 143.51 143.51
Term loans from banks 14797.67 42.20 14839.87 11339.29 169.45 11508.74
Loans from financial institutions 464.33 – 464.33 604.73 – 604.73
23107.26 6591.27 29698.53 20317.73 6081.65 26399.38

Notes:
(a) Loans guaranteed by directors: ¢ Nil (previous year: ¢ Nil)
(b) Non-convertible debentures and borrowings from banks and financial institutions 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 31-3-2024 As at 31-3-2023
Acceptances 93.89 15.69
Due to related parties:
Associates 5.97 9.20
Joint ventures 1286.39 1458.16
1292.36 1467.36
Due to others 50887.92 47449.37
52274.17 48932.42

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NOTE [28][a]
Current liabilities: Financial liabilities - Trade payables ageing
v crore
As at 31-3-2024
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 18.05 938.76 51.05 5.49 2.91 2.45 1018.71
Others 16324.39 25192.16 8638.94 436.12 379.97 1295.49 52267.07
Disputed:
Micro and small enterprises – – – – – – –
Others – 7.06 0.04 – – – 7.10
16342.44 26137.98 8690.03 441.61 382.88 1297.94 53292.88

v crore
As at 31-3-2023
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 58.19 709.68 73.66 5.82 2.47 1.88 851.70
Others 13331.70 24110.32 9273.61 554.01 201.45 1453.19 48924.28
Disputed:
Micro and small enterprises – – – – – – –
Others – 7.48 – – – 0.66 8.14
13389.89 24827.48 9347.27 559.83 203.92 1455.73 49784.12

NOTE [29]
Current liabilities: Other financial liabilities
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Unclaimed dividend 129.90 129.10
Unclaimed interest on debentures 166.34 181.20
Financial guarantee contracts 0.17 1.18
Forward contract payables 325.49 384.61
Embedded derivative payables 41.64 43.78
Due to others [1] [2] 6912.13 6702.07
7575.67 7441.94
[1]
Due to others include due to directors: ¢ 125.36 crore (previous year: ¢ 95.41 crore)
[2]
Mainly includes security deposits and liability towards employee benefits and capital goods

NOTE [30]
Other current liabilities
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Contract liabilities [Note 47(d)(i)]
Excess of billing over revenue 20647.38 18371.09
Advances from customers 26874.76 20424.75
47522.14 38795.84
Deferred income in respect of Government Grants 1.06 –
Other payables [1] 4810.53 3370.71
52333.73 42166.55
[1]
Mainly includes statutory dues and liabilities towards joint operations, volume discount and employee benefits

569
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [31]
Current liabilities: Provisions
v crore
Particulars As at 31-3-2024 As at 31-3-2023
Provision for employee benefits:
Gratuity [Note 52(b)(i)] 301.67 253.80
Compensated absences 1598.68 1645.46
Employee pension scheme [Note 52(b)(i)] 30.39 28.83
Post-retirement medical benefits plan [Note 52(b)(i)] 19.84 15.08
Others 0.28 0.29
1950.86 1943.46
Other provisions [Note 56(a)] 1506.65 1550.01
3457.51 3493.47

NOTE [32]
Contingent Liabilities
v crore

Particulars As at 31-3-2024 As at 31-3-2023

(a) Claims against the Group not acknowledged as debts 4624.58 4421.78
(b) Sales tax/GST liability that may arise in respect of matters in appeal 1430.04 619.15
(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 1118.68 1138.80
(d) Income tax liability (including penalty) that may arise in respect of which the Group is in appeal 3929.85 3110.91
(e) Guarantees or letter of credit or letter of comfort given to third parties 56.00 266.05
(f) Corporate guarantees for financial obligations of joint ventures 210.56 276.58
(g) Bank guarantees given on behalf of joint venture 32.66 35.34
(h) Contingent liabilities in relation to interest in joint operations 3006.66 2976.71
(i) Share in contingent liabilities of joint operations for which the Group is contingently liable 123.84 87.48
(j) Contingent liabilities in respect of liabilities of other joint operators in respect of joint operations 4364.24 4407.38
(k) Share of joint ventures’ contingent liabilities in respect of a legal claim lodged against the
entity 33.95 74.06
(l) Indemnities for performance given on behalf of third parties 56.79 96.41
Notes:
(i) The Group expects reimbursements of ¢ 1.91 crore (previous year:¢ 5.77 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 except 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, in 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.

570 Integrated Annual Report 2023-24

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Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [33]
Commitments
v crore
Particulars As at 31-3-2024 As at 31-3-2023
(a) Estimated amount of contracts remaining to be executed on capital account (net of advances):
(i) Property, plant and equipment 984.57 1217.03
(ii) Investment property 252.69 4.22
(iii) Intangible assets 43.41 36.85
(b) Other funding commitments:
(i) Undrawn/undisbursed commitments to other companies (in Financial Services segment) 972.34 847.52
(ii) Share of joint ventures’ capital commitments 5.38 4.49

NOTE [34]
Revenue from operations
v crore
Particulars 2023-24 2022-23
Sales & service:
Construction and project related activity 147603.49 116096.12
Manufacturing and trading activity 4828.33 4572.86
Engineering service fees 8940.19 7982.07
Software development products and services 35119.11 32846.03
Income from financing activity/annuity based projects 14074.87 13375.96
Property development activity 2804.71 1316.14
Fare collection and related activity 602.98 458.20
Servicing fees 1868.83 1522.46
Commission 130.37 125.84
Charter hire income 2.48 0.65
Investment/portfolio management and trusteeship fees – 217.47
Fees for operation and maintenance of power plant 3140.33 3147.62
219115.69 181661.42
Other operational income:
Lease rentals 166.11 148.45
Property maintenance recoveries 86.44 57.56
Gain on sale of subsidiary/business undertaking 511.73 –
Premium earned (net) on related forward exchange contracts 28.83 65.14
Net gain/(loss) on sale of investment property 21.93 106.28
Miscellaneous income 1182.18 1301.85
1997.22 1679.28
221112.91 183340.70

571
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [35]
Other income
v crore
Particulars 2023-24 2022-23
Interest income on: [Note 46(a)]
Loans and advances to joint ventures and associates 22.91 42.93
Investments 1540.43 1257.81
Others 883.73 516.73
2447.07 1817.47
Dividend income on:
Joint venture 114.98 –
Trade investments 6.37 0.97
Current investments 55.74 3.09
Others 31.40 2.22
208.49 6.28
Net gain/(loss) on fair valuation of investments 242.63 (478.15)
Net gain/(loss) on sale of investments 491.57 531.02
Net gain/(loss) on derivatives at fair value through profit or loss (6.18) 135.08
Net gain/(loss) on sale of property, plant and equipment 73.51 61.37
Lease rentals 8.44 14.46
Miscellaneous income (net of expenses) 692.50 841.64
4158.03 2929.17

NOTE [36]
Manufacturing, construction and operating expenses
v crore
Particulars 2023-24 2022-23
Cost of raw materials, components consumed:
Raw materials and components 19625.81 19178.65
Less: Scrap sales 183.56 183.54
19442.25 18995.11
Construction materials consumed 54813.97 43237.35
Purchase of stock-in-trade 1063.77 1052.86
Stores, spares and tools consumed 4432.02 4814.89
Sub-contracting charges 35054.35 25624.45
Changes in inventories of finished goods, stock-in-trade, work-in-progress and property
development:
Closing stock:
Finished goods 82.09 94.95
Stock-in-trade 228.30 364.92
Work-in-progress 9470.98 10005.68
Cost of built-up space and property development land:
Work-in-progress 3710.77 3998.29
Completed property 222.13 271.50
13714.27 14735.34
Carried forward 13714.27 114806.36 14735.34 93724.66

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NOTE [36]
Manufacturing, construction and operating expenses (contd.)

v crore
Particulars 2023-24 2022-23
Brought forward 13714.27 114806.36 14735.34 93724.66
Less: Opening stock:
Finished goods 94.95 89.29
Stock-in-trade 364.92 319.61
Work-in-progress 10005.68 7171.57
Cost of built-up space and property development land:
Work-in-progress 3998.29 3277.96
Completed property 271.50 366.49
14735.34 11224.92
1021.07 (3510.42)
Inventorisation of investment property – 353.78
1021.07 (3156.64)
Other manufacturing, construction and operating expenses:
Power and fuel 2526.75 2655.76
Royalty and technical know-how fees 127.09 30.70
Packing and forwarding 749.95 901.27
Rent and hire charges 5724.39 3916.13
Bank guarantee charges 309.75 304.62
Engineering, professional, technical and consultancy fees 4226.57 2618.85
Insurance 821.43 616.65
Rates and taxes 955.76 857.25
Travelling and conveyance 1704.92 1602.08
Repairs to plant and equipment 155.23 135.31
Repairs to buildings 19.74 26.09
General repairs and maintenance 759.27 699.94
Provision/(reversal) for foreseeable losses on construction contracts 207.86 148.32
Other provisions/(reversal of provisions) 18.18 (125.90)
Expenses on construction job in realty business 994.82 707.80
Software development expenses 4130.13 3912.39
Miscellaneous expenses 1054.65 1013.55
24486.49 20020.81
Finance cost of financial services business and finance lease activity 5714.90 6026.44
146028.82 116615.27

573
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [37]
Employee benefits expense
v crore
Particulars 2023-24 2022-23
Salaries, wages and bonus 37042.85 33565.22
Contribution to and provision for:
Provident fund and pension fund 883.75 772.66
Superannuation/employee pension and social security schemes 1202.48 1011.14
Gratuity funds [Note 52(b)(ii)] 285.52 260.59
2371.75 2044.39
Expenses on employee stock option scheme 297.63 249.51
Employee medical and other insurance premium expenses 347.07 447.54
Staff welfare expenses 1287.71 1067.24
Recoveries on account of deputation charges (175.99) (159.79)
41171.02 37214.11

NOTE [38]
Sales, administration and other expenses
v crore
Particulars 2023-24 2022-23
Power and fuel 218.44 167.85
Packing and forwarding 80.20 88.04
Insurance 135.27 120.15
Rent and hire charges 333.89 323.06
Rates and taxes 478.86 359.22
Travelling and conveyance 711.54 565.22
Repairs to buildings 125.52 122.49
General repairs and maintenance 784.64 579.00
Professional fees 1550.32 1512.25
Directors’ fees 7.18 8.76
Telephone, postage and telegrams 193.76 233.93
Advertising and publicity 345.49 304.84
Stationery and printing 80.23 75.32
Commission:
Distributors and agents 34.86 37.39
Others 7.94 5.70
42.80 43.09
Bank charges 251.42 211.84
Impairment on lease receivables – 23.34
Corporate social responsibility expenses 271.29 257.97
Collection cost (Financial Services business) 520.30 419.61
Miscellaneous expenses 1108.90 849.74
Bad debts and advances written off (net of written back) 2129.70 2592.71
Less: Allowances for expected credit loss written back 1567.90 1706.00
561.80 886.71
Allowances for expected credit loss 2350.80 1908.53
Loss on fair valuation/sale of investments towards financing activities (net) 1106.66 716.20
Loss on fair valuation of loans towards financing activities (net) (675.20) (509.54)
Recoveries from joint ventures and associates (26.65) (32.20)
Exchange (gain)/loss [net] (145.20) (550.08)
Other provisions 7.16 72.70
10419.42 8758.04

574 Integrated Annual Report 2023-24

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Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [39]
Finance costs
v crore
Particulars 2023-24 2022-23
Interest expenses 3369.30 3019.58
Interest on lease liabilities 167.21 158.10
Other borrowing costs – 0.39
Exchange (gain)/loss [net] 9.34 29.09
3545.85 3207.16

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. 2023-24 2022-23

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 2526.75 – 218.44 – 2745.19 2655.76 – 167.85 – 2823.61
2 Packing and forwarding 749.95 – 80.20 – 830.15 901.27 – 88.04 – 989.31
3 Insurance 821.43 347.07 135.27 – 1303.77 616.65 447.54 120.15 – 1184.34
4 Rent and hire charges 5724.39 – 333.89 – 6058.28 3916.13 – 323.06 – 4239.19
5 Rates and taxes 955.76 – 478.86 – 1434.62 857.25 – 359.22 – 1216.47
6 Travelling and conveyance 1704.92 – 711.54 – 2416.46 1602.08 – 565.22 – 2167.30
7 Repairs to plant and
equipment 155.23 – – – 155.23 135.31 – – – 135.31
8 Repairs to buildings 19.74 – 125.52 – 145.26 26.09 – 122.49 – 148.58
9 General repairs and
maintenance 759.27 – 784.64 – 1543.91 699.94 – 579.00 – 1278.94
10 Engineering, professional,
technical and consultancy
fees 4226.57 – 1550.32 – 5776.89 2618.85 – 1512.25 – 4131.10
11 Finance Costs 5714.90 – – 3545.85 9260.75 6026.44 – – 3207.16 9233.60
12 Miscellaneous expenses 1054.65 – 1108.90 – 2163.55 1013.55 – 849.74 – 1863.29
NOTE [40]
Depreciation, amortisation, impairment and obsolescence
v crore
Particulars 2023-24 2022-23
Depreciation on:
Property, plant and equipment 2241.97 1828.30
Right-of-use assets 508.08 471.52
Investment property 40.70 92.28
2790.75 2392.10
Amortisation of Intangible assets 883.95 992.10
Impairment on Investment property – 112.69
Obsolescence on Property, plant and equipment 7.63 5.36
3682.33 3502.25

575
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [41]
The list of subsidiaries, associates, joint ventures and joint operations included in the Consolidated Financial Statements are as under:

As at 31-3-2024 As at 31-3-2023
Proportion Proportion
Sr. Principal place of effective of effective
Name of subsidiaries
No. of business ownership ownership
interest /voting interest /voting
power(%) power(%)
Indian subsidiaries
1 Hi-Tech Rock Products and Aggregates Limited India 100.00 100.00
2 L&T Geostructure Private Limited India 100.00 100.00
3 L&T Infrastructure Engineering Limited[a] India – 100.00
4 LTIMindtree Limited India 68.64 68.68
5 Lymbyc Solutions Private Limited[b] India – 68.68
6 Powerup Cloud Technologies Private Limited[b] India – 68.68
7 Cuelogic Technologies Private Limited[b] India – 68.68
8 L&T Technology Services Limited India 73.74 73.85
9 L&T Thales Technology Services Private Limited India 54.57 54.65
10 Graphene Semiconductor Services Private Limited [c] India – 73.85
11 Seastar Labs Private Limited[c] India – 73.85
12 Esencia Technologies India Private Limited [c] India – 73.85
13 L&T Network Services Private Limited India 100.00 100.00
14 L&T Semiconductor Technologies Limited [d] India 100.00 –
15 L&T Finance Limited (formerly known as L&T Finance Holdings Limited) India 65.86 66.11
16 L&T Finance Limited[e] India – 66.11
17 L&T Infra Credit Limited[e] India – 66.11
18 L&T Infra Investment Partners Advisory Private Limited India 65.86 66.11
19 L&T Infra Investment Partners Trustee Private Limited India 65.86 66.11
20 L&T Mutual Fund Trustee Limited[e] India – 66.11
21 L&T Financial Consultants Limited India 65.86 66.11
22 L&T Energy Hydrocarbon Engineering Limited India 100.00 100.00
23 L&T Offshore Private Limited (formerly known as L&T Sapura Offshore Private Limited) [f] India 100.00 –
24 Mudit Cement Private Limited[g] India – 66.11
25 L&T Infra Investment Partners India 36.17 36.31
26 L&T Metro Rail (Hyderabad) Limited[h] India 99.99 99.99
27 L&T Arunachal Hydropower Limited[i] India – 100.00
28 L&T Himachal Hydropower Limited India 100.00 100.00
29 L&T Power Development Limited India 100.00 100.00
30 Nabha Power Limited India 100.00 100.00
31 Chennai Vision Developers Private Limited India 100.00 100.00
32 Elevated Avenue Realty LLP (formerly known as L&T Avenue Realty LLP) India 100.00 100.00
33 L&T Parel Project Private Limited India 100.00 100.00
34 L&T Westend Project LLP India 100.00 100.00
35 Think Tower Developers Private Limited [j] India – 99.00
36 L&T Seawoods Limited India 100.00 100.00
37 L&T Innovation Campus (Chennai) Limited [k] India – 100.00
38 L&T Realty Developers Limited India 100.00 100.00
39 Prime Techpark (Chennai) Private Limited India 100.00 100.00
40 Avenue Techpark (Bangalore) Private Limited [l] India 100.00 –
41 Bangalore Spectrum Techpark Private Limited [m] India 100.00 –
42 Bangalore Galaxy Techpark Private Limited[n] India 100.00 –
43 Chennai Nova Techpark Private Limited[o] India 100.00 –
44 Business Park (Powai) Private Limited[p] India 100.00 –
45 Millennium Techpark (Chennai) Private Limited [q] India 100.00 –
46 Bangalore Fortune Techpark Private Limited[r] India 100.00 –
47 Corporate Park (Powai) Private Limited[r] India 100.00 –
48 LH Residential Housing Private Limited (formerly known as LH Residential Housing Limited) [s] India 100.00 –
49 LH Uttarayan Premium Realty Private Limited [t] India 100.00 –

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [41] (contd.)

As at 31-3-2024 As at 31-3-2023
Proportion Proportion
Sr. Principal place of effective of effective
Name of subsidiaries
No. of business ownership ownership
interest /voting interest /voting
power(%) power(%)
Indian subsidiaries
50 L&T Construction Equipment Limited India 100.00 100.00
51 L&T Valves Limited India 100.00 100.00
52 L&T Energy Green Tech Limited (formerly known as L&T Power Limited) [u] India 100.00 99.99
53 L&T Electrolysers Limited[v] India 100.00 –
54 Bhilai Power Supply Company Limited India 99.90 99.90
55 Kesun Iron and Steel Company Private Limited [w] India – 95.00
56 L&T Aviation Services Private Limited India 100.00 100.00
57 L&T Capital Company Limited India 100.00 100.00
[a]
Divested w.e.f January 3, 2024
[b]
Merged with LTIMindtree Limited w.e.f April 1, 2023
[c]
Merged with L&T Technology Services Limited w.e.f April 1, 2022
[d]
Incorporated on November 29, 2023
[e]
Merged with L&T Finance Holdings Limited w.e.f April 1, 2023 and post-merger the resultant entity is renamed as L&T Finance Limited
[f]
Reclassified as subsidiary w.e.f December 27, 2023 and post-reclassification the company is renamed as L&T Offshore Private Limited
[g]
Divested w.e.f September 26, 2023
[h]
One equity share (the Golden Share) is held by the Government of Telangana in pursuance of the Shareholders’ Agreement
[i]
Struck off from register of companies w.e.f July 21, 2023
[j]
Divested w.e.f April 17, 2023
[k]
Merged with L&T Seawoods Limited on April 1, 2023
[l]
Incorporated on April 10, 2023
[m]
Incorporated on April 12, 2023
[n]
Incorporated on April 13, 2023
[o]
Incorporated on April 17, 2023
[p]
Incorporated on April 20, 2023
[q]
Incorporated on April 30, 2023
[r]
Incorporated on May 01, 2023
[s]
Incorporated on July 31, 2023
[t]
Incorporated on February 17, 2024
[u]
During the year balance stake is purchased and entity became a wholly-owned subsidiary
[v]
Incorporated on June 27, 2023
[w]
Struck off from register of companies w.e.f August 08, 2023

As at 31-3-2024 As at 31-3-2023
Proportion Proportion
Sr. Principal place of of effective of effective
Name of subsidiaries
No. business ownership ownership
interest /voting interest /voting
power(%) power(%)
Foreign subsidiaries
1 Larsen & Toubro (Oman) LLC Sultanate of Oman 65.00 65.00
2 Larsen & Toubro Qatar LLC [a] Qatar 49.00 49.00
3 Larsen & Toubro Saudi Arabia LLC Kingdom of Saudi Arabia 100.00 100.00
4 Larsen and Toubro T&D SA Proprietary Limited South Africa 72.50 72.50
5 Larsen & Toubro Heavy Engineering LLC Sultanate of Oman 70.00 70.00
6 L&T Modular Fabrication Yard LLC Sultanate of Oman 70.00 70.00
7 Larsen Toubro Arabia LLC Kingdom of Saudi Arabia 75.00 75.00
8 L&T Hydrocarbon Saudi Company Kingdom of Saudi Arabia 100.00 100.00
9 Larsen & Toubro Kuwait Construction General Contracting Co. W.L.L. Kuwait 49.00 49.00
10 PT Larsen & Toubro Hydrocarbon Engineering Indonesia [b] Indonesia – 95.00
11 Larsen & Toubro Electromech LLC Sultanate of Oman 70.00 70.00
12 LTIMindtree Information Technology Services (Shanghai) Co, Ltd. (formerly known as China 68.64 68.68
L&T Information Technology Services (Shanghai) Co., Ltd.)

577
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [41] (contd.)
As at 31-3-2024 As at 31-3-2023
Proportion Proportion
Sr. Principal place of of effective of effective
Name of subsidiaries
No. business ownership ownership
interest /voting interest /voting
power(%) power(%)
Foreign subsidiaries
13 LTIMindtree Financial Services Technologies Inc. Canada 68.64 68.68
14 LTIMindtree Canada Limited Canada 68.64 68.68
15 LTIMindtree LLC USA 68.64 68.68
16 LTIMindtree South Africa (Pty) Limited South Africa 47.77 47.80
17 LTIMindtree GMBH Germany 68.64 68.68
18 LTIMindtree Spain, S.L (formerly known as L&T Information Technology Spain SL) Spain 68.64 68.68
19 LTIMindtree Norge AS Norway 68.64 68.68
20 LTIMindtree, Sociedad De Responsibilidad Limitada De Capital Variable Mexico 68.64 68.68
21 LTIMindtree S.A. (formerly known as Syncordis S.A.) Luxembourg 68.64 68.68
22 Syncordis France SARL France 68.64 68.68
23 Syncordis Limited UK 68.64 68.68
24 LTIMindtree PSF S.A. (formerly known as Syncordis PSF S.A.) Luxembourg 68.64 68.68
25 Nielsen+Partner Unternehmensberater GmbH Germany 68.64 68.68
26 LTIMindtree Switzerland AG (formerly known as Nielsen+Partner Switzerland 68.64 68.68
Unternehmensberater AG)
27 Nielsen+Partner Pte Ltd Singapore 68.64 68.68
28 LTIMindtree (Thailand) Limited (formerly known as Nielsen&Partner Company Thailand 68.64 68.68
Limited)
29 Nielsen&Partner Pty Ltd Australia 68.64 68.68
30 LTIMindtree UK Limited UK 68.64 68.68
31 LTIMindtree Middle East FZ-LLC UAE 68.64 68.68
32 LTIMindtree USA Inc. (formerly known as Lymbyc Solutions Inc.) USA 68.64 68.68
33 Cuelogic Technologies Inc.[c] USA – 68.68
34 L&T Technology Services LLC USA 73.74 73.85
35 L&T Technology Services Pte. Ltd. Singapore 73.74 73.85
36 Graphene Solutions SDN. BHD. Malaysia 73.74 73.85
37 Graphene Solutions Taiwan Limited Taiwan 73.74 73.85
38 L&T Technology Services (Shanghai) Co. Ltd China 73.74 73.85
39 L&T Technology Services (Canada) Ltd Canada 73.74 73.85
40 Orchestra Technology, Inc. [d] USA – 73.85
41 L&T Technology Services Poland spółka z ograniczoną odpowiedzialnością [e] Poland 73.74 –
42 Mindtree Software (Shanghai) Co., Limited (‘MSSCL’), Republic of China [f] China – 68.68
43 Larsen & Toubro (East Asia) Sdn.Bhd. Malaysia 30.00 30.00
44 PT Larsen and Toubro Indonesia 100.00 100.00
45 Larsen & Toubro International FZE UAE 100.00 100.00
46 L&T Global Holdings Limited UAE 100.00 100.00
47 L&T Valves Arabia Manufacturing LLC Kingdom of Saudi Arabia 100.00 100.00
48 L&T Valves USA LLC USA 100.00 100.00
[a]
Under liquidation
[b]
Liquidated w.e.f July 10, 2023
[c]
Liquidated w.e.f. April 26, 2023
[d]
Merged with L&T Technology Services LLC w.e.f February 1, 2024
[e]
Incorporated on October 30, 2023
[f]
Liquidated w.e.f. August 26, 2023

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [41] (contd.)
As at 31-3-2024 As at 31-3-2023
Proportion Proportion
Sr. Principal place of of effective of effective
Name of associates
No. business ownership ownership
interest /voting interest /voting
power(%) power(%)
1 Larsen & Toubro Qatar & HBK Contracting Co. WLL Qatar 50.00 50.00
2 L&T Camp Facilities LLC [a] UAE 49.00 49.00
3 Magtorq Private Limited India 42.85 42.85
4 Magtorq Engineering Solutions Private Limited India 39.28 39.28
5 Gujarat Leather Industries Limited [a] India 50.00 50.00
[a]
Under liquidation

As at 31-3-2024 As at 31-3-2023
Proportion Proportion
Sr. Principal place of effective of effective
Name of joint ventures
No. of business ownership ownership
interest /voting interest /voting
power(%) power(%)
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[a] India – 60.00
8 L&T Sapura Shipping Private Limited India 60.00 60.00
9 L&T Hydrocarbon Caspian LLC[b] Azerbaijan – 50.00
10 L&T Infrastructure Development Projects Limited [c] India 51.00 51.00
11 Rewin Infrastructure Limited[c] India 51.00 51.00
12 L&T Chennai-Tada Tollway Limited[c] India 51.00 51.00
13 L&T Rajkot-Vadinar Tollway Limited[c] India 51.00 51.00
14 L&T Deccan Tollways Limited[c] India 51.00 52.89
15 L&T Samakhiali Gandhidham Tollway Limited[c] India 51.00 51.01
16 Kudgi Transmission Limited{c] India 51.00 51.00
17 L&T Sambalpur-Rourkela Tollway limited[c] India 51.00 51.00
18 Panipat Elevated Corridor Limited[c] India 51.00 51.00
19 Vadodara Bharuch Tollway Limited[c] India 51.00 51.00
20 L&T Transportation Infrastructure Limited[c] India 51.00 63.86
21 L&T Interstate Road Corridor Limited[c] India 51.00 51.00
22 Ahmedabad - Maliya Tollway Limited[c] India 51.00 51.00
23 PNG Tollway Limited[c] India 37.74 37.74
24 Watrak Infrastructure Private Limited[c] India 51.00 51.00
25 Raykal Aluminium Company Private Limited India 75.50 75.50
26 Indiran Engineering Projects and Systems Kish PJSC Iran 50.00 50.00
27 GH4India Private Limited[d] India 33.33 –
28 Hydrocarbon Arabia Limited Company[e] Kingdom of Saudi 60.00 –
Arabia
29 L&T Infrastructure Engineering Limited and LEA Associates South Asia Private Limited JV Maldives – 61.00
LLP[f]
[a]
Reclassified as subsidiary w.e.f December 27, 2023 and post-reclassification the company is renamed as L&T Offshore Private Limited
[b]
Liquidated w.e.f September 25, 2023
[c]
Divested w.e.f April 10, 2024
[d]
Incorporated on August 25, 2023
[e]
Incorporated on June 19, 2023
[f]
Divested w.e.f January 3, 2024

579
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [41] (contd.)

As at 31-3-2024 As at 31-3-2023
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. Ltd. 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 India 75.00 75.00
Venture
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 29.00 29.00
Arabia
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 India 60.00 60.00
Venture
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 Ltd - 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 Ltd. Kingdom of Saudi 50.00 50.00
Arabia
34 L&T Infrastructure Engineering - LEA Associates South Asia JV [a] India – 61.00
35 L&T Infra Engineering JV United Consultancy [a] Bhutan – 75.81
[a]
Divested w.e.f January 3, 2024

580 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports 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 merger between non-wholly owned listed entities:

v crore
2023-24 2022-23
Name of Group Dilution of (Dr)/Cr to (Dr)/Cr to Dilution of (Dr)/Cr to (Dr)/Cr to
companies stake on Non-controlling Retained stake on Non-controlling Retained
merger (%) interest [1] earnings merger (%) interest [1] earnings
LTIMindtree Limited – – – 5.32% (1.93) 1.93
[1] Represents proportionate share of the net assets of subsidiaries.
(ii) On account of dilution due to exercise of Employee Stock Options (without ceding control):
v crore
2023-24 2022-23

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 Limited
(formerly known
as L&T Finance
Holding Limited) 0.25% 9.27 90.92 (81.65) 0.15% 10.29 51.14 (40.85)
LTIMindtree Limited 0.04% 0.02 28.65 (28.63) 0.05% 0.02 23.10 (23.08)
L&T Technology
Services Limited 0.11% 0.03 16.82 (16.79) 0.05% 0.02 4.39 (4.37)
Total 9.32 136.39 (127.07) 10.33 78.63 (68.30)
[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 before non- Profit & Loss in which the gain
Name of company controlling interest is recognised
No.
2023-24 2022-23
1 Think Tower Developers Private Limited – [1]
– Revenue from Operations
2 Mudit Cement Private Limited 5.88 – Other income
3 L&T Infrastructure Engineering Limited (3.24) – Other income
4 L&T Investment Management Limited – 2595.20 Exceptional items before tax
Total 2.64 2595.20
[1]
Less than v 1 Lakh

581
 Notes forming part of the
Consolidated Financial 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 Limited
L&T Technology Services
(formerly known as L&T
Particulars Limited
Finance Holding Limited)
2023-24 2022-23 2023-24 2022-23
Revenue 13107.78 12532.20 8678.90 7910.00
Profit/(loss) for the year 2286.23 1919.87 1258.50 1153.20
Other comprehensive income 6.22 44.48 41.60 (168.80)
Total comprehensive income 2292.45 1964.35 1300.10 984.40
Effective % of non-controlling interest 34.14% 33.89% 26.26% 26.15%
Profit/(loss) allocated to non-controlling interest (including
consolidation adjustments) 776.36 572.66 322.10 289.83
Dividend to non-controlling interest 168.77 41.76 129.92 82.66

v crore
LTIMindtree Limited
Particulars
2023-24 2022-23
Revenue 34253.40 31975.50
Profit/(loss) for the year 4485.90 4248.20
Other comprehensive income 484.90 (683.40)
Total comprehensive income 4970.80 3564.80
Effective % of non-controlling interest 31.36% 31.32%
Profit/(loss) allocated to non-controlling interest (including consolidation adjustments) 1319.03 1291.25
Dividend to non-controlling interest 556.54 489.37
(ii) Summarised Balance Sheet
v crore
L&T Finance Limited
L&T Technology Services
(formerly known as L&T
Limited
Particulars Finance Holding Limited)
As at As at As at As at
31-3-2024 31-3-2023 31-3-2024 31-3-2023
Current assets (a) 45007.28 60191.08 5789.90 6015.10
Current liabilities (b) 46077.81 44043.59 2374.00 3161.40
Net current assets (c)=(a)-(b) (1070.53) 16147.49 3415.90 2853.70
Non-current assets (d) 57343.55 45836.01 2214.70 1756.60
Non-current liabilities (e) 33078.06 40664.66 579.50 406.00
Net non-current assets (f)=(d)-(e) 24265.49 5171.35 1635.20 1350.60
Net assets (h)=(c)+(f)+(g) 23194.96 21318.84 5051.10 4204.30
Accumulated non-controlling interest 7900.69 7005.45 1430.26 1219.22

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [42] (contd.)

v crore
LTIMindtree Limited
Particulars As at As at
31-3-2024 31-3-2023
Current assets (a) 18181.60 16526.40
Current liabilities (b) 5469.20 5104.90
Net current assets (c)=(a)-(b) 12712.40 11421.50
Non-current assets (d) 8276.10 5910.60
Non-current liabilities (e) 1690.00 1355.10
Net non-current assets (f)=(d)-(e) 6586.10 4555.50
Net assets (g)=(c)+(f) 19298.50 15977.00
Accumulated non-controlling interest 6230.41 5290.68
(iii) Summarised statement of cash flows

v crore
L&T Finance Limited
L&T Technology Services
(formerly known as L&T
Particulars Limited
Finance Holding Limited)
2023-24 2022-23 2023-24 2022-23
Cash flows from operating activities 637.44 6360.44 1341.30 1266.90
Cash flows from investing activities 858.79 (505.44) (231.40) (560.20)
Cash flows from financing activities (7040.50) (1659.27) (646.60) (434.20)
Net increase/(decrease) in cash and cash equivalents (5544.27) 4195.73 463.30 272.50

v crore
LTIMindtree Limited
Particulars
2023-24 2022-23
Cash flows from operating activities 5529.60 2886.50
Cash flows from investing activities (3832.50) (248.80)
Cash flows from financing activities (2162.60) (1980.20)
Net increase/(decrease) in cash and cash equivalents (465.50) 657.50

583
 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 Boilers L&T Sapura Shipping Private L&T - MHI Power Turbine
Private Limited Limited Generators Private Limited
Particulars
As at As at As at As at As at As at
31-3-2024 31-3-2023 31-3-2024 31-3-2023 31-3-2024 31-3-2023
Current assets
Cash and bank balances 365.40 267.18 7.89 15.07 6.94 11.25
Other assets 1763.13 2497.75 95.92 200.07 548.86 793.03
Total current assets (A) 2128.53 2764.93 103.81 215.14 555.80 804.28
Total non-current assets (B) 353.60 450.74 452.97 508.89 447.43 576.79
Current liabilities
Financial liabilities (excluding trade payables) 178.09 207.35 342.05 472.94 119.42 272.06
Other liabilities (including trade payables) 783.41 1461.04 42.68 40.86 356.46 295.17
Total current liabilities (C) 961.50 1668.39 384.73 513.80 475.88 567.23
Non-current liabilities
Financial liabilities (excluding trade payables) 0.18 0.51 0.17 0.47 137.60 406.74
Other liabilities (including trade payables) – – – – 69.77 67.00
Total non-current liabilities (D) 0.18 0.51 0.17 0.47 207.37 473.74
Net assets (A+B-C-D) 1520.45 1546.77 171.88 209.76 319.98 340.10
(b) Reconciliation of carrying amounts of material joint ventures:
v crore
L&T - MHI Power Boilers L&T Sapura Shipping Private L&T - MHI Power Turbine
Private Limited Limited Generators Private Limited
Particulars
As at As at As at As at As at As at
31-3-2024 31-3-2023 31-3-2024 31-3-2023 31-3-2024 31-3-2023
Opening net assets 1546.77 1735.14 209.76 320.06 340.10 385.18
Profit/(loss) for the year (30.91) 32.25 (40.72) (133.95) (21.30) (53.26)
Dividend distributed during the year – (234.10) – – – –
Other comprehensive income 4.59 13.48 2.84 23.65 1.18 8.18
Closing net assets 1520.45 1546.77 171.88 209.76 319.98 340.10
Group’s share in % 51.00% 51.00% 60.00% 60.00% 51.00% 51.00%
Group’s share 775.43 788.86 103.13 125.86 163.19 173.45
Carrying amount 775.43 788.86 103.13 125.86 163.19 173.45
(c) Summarised Statement of Profit and Loss of material joint ventures:
L&T - MHI Power Boilers L&T Sapura Shipping Private L&T - MHI Power Turbine
Particulars Private Limited Limited Generators Private Limited
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
Revenue 1182.72 2121.13 162.50 58.45 275.78 351.43
Interest income 20.05 21.33 1.86 0.60 1.23 2.37
Depreciation and amortisation (37.95) (50.43) (68.64) (66.16) (46.34) (47.36)
Finance cost (0.60) (0.09) (23.03) (18.99) 50.20 (53.99)
Tax expense 8.34 (13.27) (0.05) 0.04 – –
Profit/(loss) for the year (30.91) 32.25 (40.72) (133.95) (21.30) (53.26)
Other comprehensive income 4.59 13.48 2.84 23.65 1.18 8.18
Total comprehensive income (26.32) 45.73 (37.88) (110.30) (20.12) (45.08)

584 Integrated Annual Report 2023-24

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

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [43] (contd.)
(d) Financial information in respect of individually not material joint ventures/associates:
v crore
As at As at
Particulars
31-3-2024 31-3-2023
Aggregate carrying amount of investment in individually not material joint venture/associate 222.50 216.69
Aggregate amounts of the Group’s share of:
Profit/(loss) for the year 28.44 72.62
Other comprehensive income for the year (0.08) 0.27
Total comprehensive income for the year 28.36 72.89
(e) Carrying amount of investments in joint ventures/associates:
v crore
As at As at
Particulars
31-3-2024 31-3-2023
Non-material associates 8.96 8.07
Non-material joint ventures 213.54 208.62
Sub-total 222.50 216.69
Material joint ventures 1041.75 1088.17
Total 1264.25 1304.86
(f) Share in profit/(loss) of joint ventures/associates (net):
v crore
Particulars 2023-24 2022-23
Non-material associates 0.90 (2.33)
Non-material joint ventures 27.54 74.95
Sub-total 28.44 72.62
Material joint ventures (51.06) (166.87)
Total (22.62) (94.25)

NOTE [44]
Acquisitions during the year:

Acquisition of L&T Offshore Private Limited (formerly known as L&T Sapura Offshore Private Limited)

On December 27, 2023, the Parent Company acquired balance 40% stake in L&T Offshore Private Limited (LTOPL). Post this transaction, the
joint venture company has become a wholly owned subsidiary of the Group. It operates in the Energy Projects segment with the objective
of carrying out installation of offshore structure. The net assets acquired by the Parent Company is ¢ 0.04 crore. The assets and liabilities are
accounted for in accordance with the applicable Indian Accounting Standard.

NOTE [45]
Disclosure pursuant to Ind AS 105 “Non-current Assets Held for Sale and Discontinued Operations”:
(a) The Company entered into a Share Purchase Agreement dated December 16, 2022 to sell its stake in L&T Infrastructure Development
Projects Limited, a joint venture, primarily engaged in the development and operation of toll roads and power transmission assets. As on
March 31, 2024, the investment in the joint venture is classified as “Held for Sale”. Subsequently, the Company completed the sale on
April 10, 2024, consequent to completion of customary conditions precedent as per the Share Purchase Agreement.

(b) The Group has following non-current assets recognised as held for sale:
v crore
Particulars Reportable segment Amount
As at 31-3-2024
Investment in L&T Infrastructure Development Projects Limited Development projects 1005.36
As at 31-3-2023
Investment in L&T Infrastructure Development Projects Limited and its subsidiaries Development projects 988.80

585
 Notes forming part of the
Consolidated Financial 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
2023-24 2022-23
Particulars Inter- Inter-
External Total External Total
segment segment
Revenue
Infrastructure Projects 112550.76 1457.45 114008.21 86717.36 1105.79 87823.15
Energy Projects 29538.91 31.99 29570.90 24907.15 49.11 24956.26
Hi-Tech Manufacturing 8195.95 569.34 8765.29 6534.91 625.96 7160.87
IT & Technology Services 44472.68 443.63 44916.31 41538.17 251.08 41789.25
Financial Services 13108.62 – 13108.62 12574.92 – 12574.92
Development Projects 5620.29 7.72 5628.01 5024.36 4.41 5028.77
Others 7625.70 867.19 8492.89 6043.83 226.95 6270.78
Total 221112.91 3377.32 224490.23 183340.70 2263.30 185604.00
Inter-segment revenue – (3377.32) (3377.32) – (2263.30) (2263.30)
Total 221112.91 – 221112.91 183340.70 – 183340.70
Segment result [Profit/(loss) before interest and tax]
Infrastructure Projects 5720.93 5140.18
Energy Projects 2700.63 2066.69
Hi-Tech Manufacturing 1139.77 995.24
IT & Technology Services 7658.79 7215.08
Financial Services 3028.41 2258.78
Development Projects 1014.73 391.77
Others 1507.70 1103.02
Total 22770.96 19170.76
Inter-segment margins on capital jobs (248.61) (69.43)
Finance costs (3545.85) (3207.16)
Unallocated corporate income net of expenditure 1447.00 1078.87
Profit before exceptional items and tax 20423.50 16973.04
Exceptional items (net of tax) 93.61 135.99
Profit before tax 20517.11 17109.03
Tax expense:
Current tax (5127.70) (5055.17)
Deferred tax 180.31 571.01
Profit after tax 15569.72 12624.87
Share in profit/(loss) after tax of joint ventures/associates
(net) (22.62) (94.25)
Profit for the year 15547.10 12530.62
Non-controlling interest (2487.99) (2059.90)
Profit for the year attributable to Owners of the
Company 13059.11 10470.72

586 Integrated Annual Report 2023-24

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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
Segment assets Segment liabilities
Particulars As at As at As at As at
31-3-2024 31-3-2023 31-3-2024 31-3-2023
Infrastructure Projects 96899.29 86528.20 72851.28 61951.34
Energy Projects 24564.66 23880.49 18772.84 19581.52
Hi-Tech Manufacturing 10228.88 9263.35 8875.58 6612.24
IT & Technology Services 43582.80 39028.20 10548.67 9640.18
Financial Services 100863.03 104501.99 79165.68 84718.92
Development Projects 26212.32 26774.69 7020.30 7020.88
Others 15214.32 14386.27 7239.09 6546.25
Segment total 317565.30 304363.19 204473.44 196071.33
Corporate unallocated assets/liabilities 27146.71 28962.70 37688.91 33687.34
Inter-segment assets/liabilities (5084.77) (2973.58) (5084.77) (2973.58)
Consolidated total assets/liabilities 339627.24 330352.31 237077.58 226785.09
v crore
Depreciation, amortisation, Non-cash expenses other
impairment & obsolescence
than depreciation included
Particulars included in segment
expense in segment expense

2023-24 2022-23 2023-24 2022-23

Infrastructure Projects 1262.73 924.02 48.14 21.18
Energy Projects 245.64 209.59 12.29 2.94
Hi-Tech manufacturing 196.84 178.97 7.60 1.99
IT & Technology Services 1402.73 1276.72 168.01 195.67
Financial Services 114.77 113.38 37.85 25.65
Developmental Projects 318.67 323.62 – –
Others 110.41 90.98 3.34 0.92
Segment total 3651.79 3117.28 277.23 248.35
Unallocable 101.69 408.32 20.40 1.16
Inter-segment (71.15) (23.35) – –
Consolidated total 3682.33 3502.25 297.63 249.51
Note: There is no impairment/reversal of impairment in non-financial assets of the operating segments.

587
 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
Profit/(loss) of
associates and joint
Interest income included in Finance costs included in ventures accounted
Particulars segment income segment expense applying equity
method not included
in segment result
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
Infrastructure Projects 68.86 40.47 231.60 202.35 3.97 4.51
Energy Projects 26.04 39.73 – – (29.14) (80.31)
Hi-Tech manufacturing 0.49 – – – 3.93 58.05
IT & Technology Services 392.04 260.76 – – – –
Financial Services 467.80 360.70 5377.19 5799.87 – –
Developmental Projects 23.52 29.57 423.97 410.48 (1.37) (75.79)
Others 145.92 83.52 – – (0.01) (0.71)
Segment total 1124.67 814.75 6032.76 6412.70 (22.62) (94.25)
Unallocable 1719.00 1,607.92 (231.60) (202.35) – –
Inter-segment (396.60) (605.20) (86.26) (183.91) – –
Consolidated total 2447.07 1817.47 5714.90 6026.44 (22.62) (94.25)

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
2023-24 2022-23
31-3-2024 31-3-2023
Infrastructure Projects 2914.42 3803.20 – 3.08
Energy Projects 1266.25 980.06 1161.72 1203.45
Hi-Tech manufacturing 558.96 161.25 102.90 98.33
IT & Technology Services 3845.40 2043.96 – –
Financial Services 145.99 188.96 – –
Developmental Projects 44.00 49.38 (0.37) –
Others 926.33 572.84 – –
Segment total 9701.35 7799.65 1264.25 1304.86
Unallocable 2228.96 149.64 – –
Inter-segment (1437.77) (82.26) – –
Consolidated total 10492.54 7867.03 1264.25 1304.86

588 Integrated Annual Report 2023-24

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

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [46] (contd.)
(b) Geographical information
v crore
Revenue [1]
Particulars
2023-24 2022-23
India (i) 126027.04 114553.84
Foreign countries (ii):
United States of America 30881.10 28506.03
Kingdom of Saudi Arabia 40166.35 15379.74
United Arab Emirates 3160.74 2421.78
Qatar 2472.64 2322.06
United Kingdom 2172.29 1864.41
Bangladesh 1495.57 1662.40
Sultanate of Oman 1342.51 2359.59
Algeria 664.19 1919.59
Kuwait 660.86 735.97
Other countries 12069.62 11615.29
Total foreign countries (ii) 95085.87 68786.86
Total (i+ii) 221112.91 183340.70
[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
31-3-2024 31-3-2023
India 50127.31 49291.03
Foreign countries 2283.85 2404.58
Total 52411.16 51695.61

(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 identification of operating segments is consistent with performance assessment and resource allocation by the management.

(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 seven 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.

589
 Notes forming part of the
Consolidated Financial 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) Consequent to transfer of the Carved-out Business of Smart World and Communication (SWC) to L&T Technology Services Limited
(LTTS), a listed subsidiary w.e.f. April 1, 2023, the business which was hitherto a part of Others segment has now been included in
IT & Technology Services segment. Concurrently, the military communications business has been transferred from Others segment
to Hi-Tech Manufacturing segment.

The Revised Segment Composition:

• Infrastructure Projects 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 and metals.

• Energy Projects segment comprises EPC/turnkey solutions in (a) Hydrocarbon business covering Oil & Gas industry from
front-end design through detailed engineering, modular fabrication, procurement, project management, construction,
installation and commissioning, (b) Power business covering Coal-based and Gas-based thermal power plants including power
generation equipment with associated systems and/or balance-of-plant packages and (c) EPC solutions in Green Energy space.

• Hi-Tech Manufacturing segment comprises design, manufacture/construct, supply and revamp/retrofit of (a) custom
designed, engineered critical equipment & systems to the process plants, nuclear energy & green hydrogen sectors. (b) marine
and land platforms including related equipment & systems; aerospace products & systems; precision and electronics products &
systems for defence, security, space and industrial sectors and (c) electrolysers.

• IT & Technology Services segment comprises (a) information technology and integrated engineering services (including
smart world and communication projects), (b) E-commerce/digital platforms & data centres and (c) semiconductor chip design.

• Financial Services segment comprises retail finance, wholesale finance and asset management (upto the date of
divestment).

• Development 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) green energy

• Others segment includes (a) realty, (b) manufacture and sale of industrial valves, (c) manufacture, marketing and servicing
of construction equipment and parts thereof, (d) marketing and servicing of mining machinery and parts thereof and (e)
manufacture and sale of rubber processing machinery. 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, 2024.

590 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports 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
2023-24
Revenue as per Ind AS 115 Total as per
Statement
Segment
Other revenue of Profit and
Domestic Foreign Total
Loss/Segment
report
Infrastructure Projects 78375.15 33813.10 112188.25 362.51 112550.76
Energy Projects 12074.71 17130.31 29205.02 333.89 29538.91
Hi-Tech Manufacturing 5636.37 2530.94 8167.31 28.64 8195.95
IT & Technology Services 3654.62 40818.06 44472.68 – 44472.68
Financial Services 0.84 – 0.84 13107.78 13108.62
Development Projects 4037.64 – 4037.64 1582.65 5620.29
Others 6794.47 746.90 7541.37 84.33 7625.70
Total 110573.80 95039.31 205613.11 15499.80 221112.91
v crore
2022-23
Revenue as per Ind AS 115 Total as per
Statement
Segment
Other revenue of Profit and
Domestic Foreign Total
Loss/Segment
report
Infrastructure Projects 67200.02 19164.49 86364.51 352.85 86717.36
Energy Projects 15200.92 9665.65 24866.57 40.58 24907.15
Hi-Tech Manufacturing 4919.02 1551.84 6470.86 64.05 6534.91
IT & Technology Services 3706.90 37831.27 41538.17 – 41538.17
Financial Services 243.14 – 243.14 12331.78 12574.92
Development Projects 3912.39 – 3912.39 1111.97 5024.36
Others 5346.60 532.69 5879.29 164.54 6043.83
Total 100528.99 68745.94 169274.93 14065.77 183340.70
(b) Break up of revenue (as per Ind AS 115) into over a period of time and at a point in time:

v crore
Year Over a period of time At a point in time
2023-24 191680.32 13932.79
2022-23 156723.26 12551.67

591
 Notes forming part of the
Consolidated Financial 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 contract assets
Particulars receivables
2023-24 2022-23 2023-24 2022-23
Provision as at April 1 4414.84 3892.11 1602.44 1619.72
Changes in allowance for ECL:
Provision/(reversal) of allowance for ECL 332.45 410.65 427.52 27.76
Additional provision (net) 402.46 310.61 (4.48) (46.43)
Writen off as bad debts (561.45) (207.26) – –
Translation adjustment 5.35 8.73 (0.79) 1.39
Provision as at March 31 4593.65 4414.84 2024.69 1602.44

(d) Contract balances:

(i) Movement in contract balances during the year:

v crore
2023-24 2022-23

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 55536.81 38795.84 16740.97 52242.34 30781.57 21460.77
Balance as at March 31 60125.33 47522.14 12603.19 55536.81 38795.84 16740.97
Net increase/(decrease) 4588.52 8726.30 (4137.78) 3294.47 8014.27 (4719.80)

Note:
Decrease in net contract balances is primarily due to lower revenue recognition as compared to progress bills raised in both the
years.

(ii) Revenue recognised from opening balance of contract liabilities amounts to ¢ 11846.91 crore (previous year: ¢ 8316.01 crore).

(iii) Revenue recognised from the performance obligation satisfied (or partially satisfied) upto previous year (arising out of contract
modifications) amounts to ¢ 940.22 crore (previous year: ¢ 35.32 crore).

(e) Cost to obtain/fulfil the contract:

(i) Amortisation in Statement of Profit and Loss: ¢ 31.84 crore (previous year: ¢ 48.96 crore).

(ii) Recognised as contract assets as at March 31, 2024: ¢ 80.78 crore (as at March 31, 2023: ¢ 56.28 crore).

592 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports 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 2023-24 2022-23
Opening contracted price of orders on hand as at April 1 [1] 978212.48 849547.00
Add:
Fresh orders/change orders received (net) 278518.15 228776.72
Increase due to additional consideration recognised as per contractual 4015.43 5056.73
terms/(decrease) due to scope reduction (net)
Addition/(deletion) on account of business combination/divestment (306.26) –
Increase/(decrease) due to exchange rate movements (net) and others 3829.87 9041.90
Less:
Orders completed during the year 124283.14 114209.87
Closing contracted price of orders on hand as at March 31 [1] 1139986.52 978212.48
Total revenue recognised during the year 205613.11 169274.93
Less: Revenue out of orders completed during the year 29418.23 38063.73
Revenue out of orders under execution at the end of the year (i) 176194.88 131211.20
Revenue recognised upto previous year (from orders pending 459443.34 425947.50
completion at the end of the year) (ii)
Increase/(Decrease) due to exchange rate movements (net) (iii) (1339.81) (2413.84)
Balance revenue to be recognised in future viz. Order book (iv) 505688.11 423467.62
Closing contracted price of orders on hand as at March 31 [1] (i+ii+iii+iv) 1139986.52 978212.48
[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, 2024 505688.11 219544.63 158114.25 67877.58 27805.89 12857.99 19487.78
As at March 31, 2023 423467.62 170444.59 145550.78 66675.00 18710.62 9978.95 12107.68
(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 ¢ 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

593
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [47] (contd.)

Renewal and termination Further extension of 25 years will be granted at the option of the concessionaire upon satisfaction of
options 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.
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 The service arrangement has been classified as a Service Concession Arrangement for a PPP project
arrangement as per Appendix C to Ind AS 115 - Revenue from contracts with customers. Accordingly, construction
revenues and expenses are accounted during construction phase and intangible asset is recognised
towards rights to charge the users of the system.
Construction revenue ¢ 8.50 crore (previous year: ¢ 20.67 crore) [included in Note 47(a) above]
recognised

NOTE [48]
(a) Exceptional Items (net of tax) for 2023-24 include:

(i) Gain on divestment of stake in L&T Transportation Infrastructure Limited, a subsidiary of L&T Infrastructure Development Projects
Limited (“L&T IDPL”): ¢ 60.56 crore.

(ii) Reversal of impairment of investment in L&T IDPL net off customary closing adjustments: ¢ 33.05 crore.
(b) Exceptional Items (net of tax) for 2022-23 include:

(i) Gain of ¢ 2146.85 crore (net of tax) on divestment of the Mutual Fund business of the Financial Services segment.

(ii) One-time charge of ¢ 2010.86 crore (net of tax) on remeasurement of the wholesale loan assets of Financial Services segment at
fair value instead of at amortised cost, pursuant to the strategic decision to reduce the said portfolio through accelerated sell down.

594 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports 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 31-3-2024 As at 31-3-2023
Sr. Within After Within After
Particulars Note
No. twelve twelve Total twelve twelve Total
months months months months
1 Inventories 11 4255.68 2364.51 6620.19 4533.84 2294.94 6828.78
2 Trade receivables 13 47423.40 1347.55 48770.95 43565.31 1166.22 44731.53
3 Other loans 17 106.54 – 106.54 251.15 – 251.15
4 Other financial assets 18 5415.41 148.51 5563.92 4889.12 40.98 4930.10
5 Other current assets 19 54371.16 16511.14 70882.30 57065.76 8854.63 65920.39
(b) Current liabilities expected to be settled within twelve months and after twelve months from the reporting date:
v crore
As at 31-3-2024 As at 31-3-2023
Sr. Within After Within After
Particulars Note
No. twelve twelve Total twelve twelve Total
months months months months
1 Lease liability 513.61 34.06 547.67 439.27 51.48 490.75
2 Trade payables:
Due to micro enterprises and small
enterprises 995.75 22.96 1018.71 761.17 90.53 851.70
Due to others 28 51532.67 741.50 52274.17 45918.99 3013.43 48932.42
3 Other financial liabilities 29 7553.13 22.54 7575.67 7418.01 23.93 7441.94
4 Other current liabilities 30 42102.75 10230.98 52333.73 36433.89 5732.66 42166.55
5 Provisions 31 3195.44 262.07 3457.51 2838.61 654.86 3493.47

595
 Notes forming part of the
Consolidated Financial 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 1-4-2022 61618.31 30476.96 31372.96 1633.31 406.54 125508.08
ii Additions to lease liability – – – 449.87 86.47 536.34
iii Changes from financing cash flows 23567.88 357.40 (28421.94) (225.62) (197.72) (4920.00)
iv Effect of changes in foreign exchange rates 157.82 71.50 0.11 9.17 26.33 264.93
v Interest accrued (net of interest paid) 844.05 (9.54) (1457.50) – – (622.99)
vi Other changes (transfer within categories) (24905.75) – 24905.75 (176.79) 176.79 –
vii De-recognition of lease liability – – – (46.55) (10.43) (56.98)
viii Addition on account of business combination – – – 2.92 2.77 5.69
ix Classified as deferred government grant (64.63) – – – – (64.63)
x Balance as at 31-3-2023 (x = i to ix) 61217.68 30896.32 26399.38 1646.31 490.75 120650.44
xi Additions to lease liability – – – 686.21 98.84 785.05
xii Changes from financing cash flows 22084.03 (2871.15) (23315.25) (275.10) (184.79) (4562.26)
xiii Effect of changes in foreign exchange rates 34.16 6.12 0.01 21.32 27.33 88.94
xiv Interest accrued (net of interest paid) 819.62 (195.29) (516.85) 0.18 (0.18) 107.48
xv Other changes (transfer within categories) (27131.24) – 27131.24 (116.43) 116.43 –
xvi De-recognition on termination/divestment – (1.73) – (227.71) (0.71) (230.15)
xvii Classified as deferred government grant (517.28) – – – – (517.28)
xviii Balance as at 31-3-2024 (xviii = x to xvii) 56506.97 27834.27 29698.53 1734.78 547.67 116322.22

Amounts reported in Statement of Cash Flows under financing activities:

v crore

Sr. No. Particulars 2023-24 2022-23

a Proceeds from non-current borrowings 23125.43 27940.93
b Repayment of non-current borrowings (24356.65) (32794.99)
c Proceeds from/(repayment of) other borrowings (net) (2871.15) 357.40
d Repayment of lease liability (459.89) (423.34)
e Total changes from financing cash flows (e = a to d) (4562.26) (4920.00)

596 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports 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 2023-24 2022-23
No.
Consolidated Statement of Profit and Loss:
(a) Profit and Loss section:
(i) Current income tax:
Current income tax expense 5566.44 5697.07
Effect of previously unrecognised tax losses and tax offsets used during the year (311.90) (259.69)
Tax expense of earlier years (106.01) 66.14
5148.53 5503.52
(ii) Deferred tax:
Tax expense on origination and reversal of temporary differences (182.58) (1252.32)
Effect of previously unrecognised tax losses and tax offsets on which deferred tax benefit is
recognised 2.27 5.00
(180.31) (1247.32)
Income tax expense/(income) [(i)+(ii)] 4968.22 4256.20
(b) Other comprehensive income section:
(i) Items that will not be reclassified to profit or loss:
(A) Current tax expense/(income):
On remeasurement of net defined benefit plans 7.62 (7.48)
7.62 (7.48)
(B) Deferred tax expense/(income):
On remeasurement of net defined benefit plans 0.99 0.69
0.99 0.69
(ii) Items that will be reclassified to profit or loss:
(A) Current tax expense/(income):
On gain/(loss) on cash flow hedges other than mark to market (44.52) (66.96)
(44.52) (66.96)
(B) Deferred tax expense/(income):
On gain/(loss) on cost of hedging reserve 0.03 (0.02)
On mark to market gain/(loss) on cash flow hedges 165.88 (254.99)
On gain/(loss) on fair valuation of debt instruments 26.97 (53.21)
On exchange differences in translating the financial statements of foreign operations (1.74) (3.55)
191.14 (311.77)
Income tax expense/(income) [(i)+(ii)] 155.23 (385.52)

597
 Notes forming part of the
Consolidated Financial 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 2023-24 2022-23
No.
(a) Profit before tax (including exceptional items): 20537.94 16881.07
(b) Corporate tax rate as per Income Tax Act, 1961 25.17% 25.17%
(c) Tax on accounting profit [(c)=(a)*(b)] 5168.99 4248.63
(d) (i) Tax effect on Corporate Social Responsibility expenses, not tax deductible 69.03 65.76
(ii) Tax effect on impairment/(reversal) and fair valuation losses/(gains) recognised on which
deferred tax asset is not recognised (140.82) 170.39
(iii) Tax effect of losses of current year on which no deferred tax asset is recognised 248.08 413.97
(iv) Effect of previously unrecognised tax losses used to reduce tax expense (309.63) (254.70)
(v) Effect of deferred tax due to change in income tax rate – (206.41)
(vi) Effect of lower tax rate on capital gains (15.06) (207.23)
(vii) Tax expense of earlier years (106.01) 66.14
(viii) Tax effect on various other Items 53.64 (40.35)
Total effect of tax adjustments [(i) to (viii)] (200.77) 7.57
(e) Tax expense recognised during the year [(e)=(c)+(d)] 4968.22 4256.20
(f) Effective tax rate [(f)=(e)/(a)] 24.19% 25.21%
(c) (i) Unused tax losses for which no deferred tax asset is recognised in Balance Sheet:

As at 31-3-2024 As at 31-3-2023
Particulars
v crore Expiry year v crore Expiry year
Tax losses (Business loss and unabsorbed depreciation)
- Amount of losses having expiry 5155.05 FY 2024-25 to 4839.37 FY 2023-24 to
FY 2031-32 FY 2030-31
- Amount of losses having no expiry 4667.98 NA 5086.29 NA
Tax losses (Capital loss) 2629.33 FY 2024-25 to 2590.06 FY 2023-24 to
FY 2031-32 FY 2030-31
Total 12452.36 12515.72
(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. 31-3-2024 31-3-2023
(a) Towards provision for diminution in value of investments/loans 1929.03 2316.05
(b) Arising out of upward revaluation of tax base of assets (on account of indexation
benefit) 4156.49 3734.53
(c) Other items giving rise to temporary differences 1371.25 1686.82
Total 7456.77 7737.40

598 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports 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/ Charge/ Debit/(credit)

Deferred tax Recognised Deferred tax
(credit) to (credit) to hedge
liabilities/ Effect due to through Exchange liabilities/
Particulars Statement to Other reserve (other
(assets) as at acquisition Balance difference (assets) as at
of Profit and comprehensive than through
1-4-2022 Sheet 31-3-2023
Loss income (OCI) OCI)

Deferred tax liabilities:

- Difference between book base and tax base

of property, plant and equipment, investment
property and intangible assets 2422.86 456.68 6.81 – – – 0.02 2886.37

- Disputed statutory liabilities paid and claimed

as deduction for tax purposes but not debited to
Statement of Profit and Loss 194.34 4.61 – – – – – 198.95

- Net gain/(loss) on derivative transactions to be

offered for tax purposes in the year of transfer/
settlement 282.72 (15.74) – (255.00) (13.70) – – (1.72)

- Other items giving rise to temporary differences 1215.25 (485.39) 8.32 (0.03) – – (6.00) 732.15

Deferred tax liabilities 4115.17 (39.84) 15.13 (255.03) (13.70) – (5.98) 3815.75

Offsetting of deferred tax liabilities with deferred

tax (assets) (3075.84) (3185.32)

Net deferred tax liabilities 1039.33 630.43

Deferred tax (assets):

- Provision on expected credit loss (ECL) (2478.50) (492.08) – (0.07) – – – (2970.65)

- Unpaid statutory liabilities (323.46) (8.30) – – – – – (331.76)

- Unabsorbed depreciation (2235.69) (453.13) – – – – – (2688.82)

- Brought forward tax losses (32.25) 5.52 – – – – – (26.73)

- Unutilised MAT credit (185.76) (2.22) (3.77) – – 15.55 – (176.20)

- Other items giving rise to temporary differences (660.28) (257.27) (3.69) (55.98) – 3.89 (2.62) (975.95)

Deferred tax (assets) (5915.94) (1207.48) (7.46) (56.05) – 19.44 (2.62) (7170.11)

Offsetting of deferred tax (assets) with deferred tax

liabilities 3075.84 3185.32

Net deferred tax (assets) (2840.10) (3984.79)

Net deferred tax liability/(assets) (1800.77) (1247.32) 7.67 (311.08) (13.70) 19.44 (8.60) (3354.36)

599
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [51] (contd.)

v crore

Charge/ Charge/ Debit/(credit)

Deferred tax Recognised Deferred tax
(credit) to (credit) to hedge
liabilities/ Effect due to through Exchange liabilities/
Particulars Statement to Other reserve (other
(assets) as at disposal Balance difference (assets) as at
of Profit and comprehensive than through
31-3-2023 Sheet 31-3-2024
Loss income (OCI) OCI)

Deferred tax liabilities:

- Difference between book base and tax base

of property, plant and equipment, investment
property and intangible assets 2886.37 186.65 0.02 – – – 0.09 3073.13

- Disputed statutory liabilities paid and claimed

as deduction for tax purposes but not debited to
Statement of Profit and Loss 198.95 1.77 – – – – – 200.72

- Net gain/(loss) on derivative transactions to be

offered for tax purposes in the year of transfer/
settlement (1.72) (0.19) – 165.91 (4.48) – – 159.52

- Other items giving rise to temporary differences 732.15 70.96 – (0.19) – – 1.53 804.45

Deferred tax liabilities 3815.75 259.19 0.02 165.72 (4.48) – 1.62 4237.82

Offsetting of deferred tax liabilities with deferred

tax (assets) (3185.32) (3704.19)

Net deferred tax liabilities 630.43 533.63

Deferred tax (assets):

- Provision on expected credit loss (ECL) (2970.65) 294.09 3.44 – – – – (2673.12)

- Unpaid statutory liabilities (331.76) 33.62 0.88 – – – – (297.26)

- Unabsorbed depreciation (2688.82) (235.97) – – – – – (2924.79)

- Brought forward tax losses (26.73) 24.22 – – – – (0.26) (2.77)

- Unutilised MAT credit (176.20) (41.92) – – – 5.26 – (212.86)

- Other items giving rise to temporary differences (975.95) (513.54) 2.49 26.41 – 3.89 (0.41) (1457.11)

Deferred tax (assets) (7170.11) (439.50) 6.81 26.41 – 9.15 (0.67) (7567.91)

Offsetting of deferred tax (assets) with deferred tax

liabilities 3185.32 3704.19

Net deferred tax (assets) (3984.79) (3863.72)

Net deferred tax liability/(assets) (3354.36) (180.31) 6.83 192.13 (4.48) 9.15 0.95 (3330.09)

600 Integrated Annual Report 2023-24

 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: ¢ 1579.73 crore (previous year: ¢ 1424.68 crore) has been incurred and is included in “Employee benefits
expense” [Note 37].

(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
31-3-2024 31-3-2023 31-3-2024 31-3-2023 31-3-2024 31-3-2023 31-3-2024 31-3-2023
A) Present value of defined benefit obligation
– Wholly funded 1572.21 1369.78 – – – – 9173.37 6992.32
– Wholly unfunded 301.67 253.80 395.76 352.74 382.26 375.27 – –
1873.88 1623.58 395.76 352.74 382.26 375.27 9173.37 6992.32
Less: Fair value of plan assets 1375.36 1094.48 – – – – 9596.45 7165.44
Add: Amount not recognised as an asset
[limit in para 64(b)] 0.16 0.25 – – – – 6.60 4.31
Amount to be recognised as liability/(asset) 498.68 529.35 395.76 352.74 382.26 375.27 (416.48) (168.81)
B) Amounts reflected in the Balance Sheet:
Liabilities 499.06 529.41 395.76 352.74 382.26 375.27 119.63 113.60
Assets (0.38) (0.06) – – – – – –
Net liability/(asset) 498.68 529.35 395.76 352.74 382.26 375.27 119.63 113.60
Net liability/(asset) - Current 498.68 529.35 19.84 15.08 30.39 28.83 119.63 113.60
Net liability/(asset) - Non-current – – 375.92 337.66 351.87 346.44 – –
(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
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
1 Current service cost 280.73 246.76 22.37 25.64 3.14 3.26 534.16 [1] 373.99 [1]
2 Interest cost 100.83 83.89 25.72 24.36 26.92 25.28 641.14 489.91
3 Interest income on plan assets (80.13) (73.07) – – – – (641.14) (489.91)
4 Actuarial (gains)/losses - Difference
between actual return on plan assets and
interest income (48.31) 31.14 – – – – (243.28) 243.76
5 Actuarial (gains)/losses - Others 30.02 35.48 (15.23) (35.95) 4.72 (7.21) – –
6 Past service cost 5.13 14.47 27.18 0.12 – 8.23 – –
7 Actuarial gains/(losses) not recognised
in books – – – – – – 243.28 (243.76)
8 Translation adjustments (0.38) (0.77) – – – – – –
9 Amount capitalised out of the above – 0.04 – – – – – –
Total (1 to 9) 287.89 337.94 60.04 14.17 34.78 29.56 534.16 373.99

601
 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
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
I. Amount included in “Employee benefits
expense” 285.52 260.59 49.55 25.76 3.14 11.49 534.16 373.99
II. Amount included as part of
“Manufacturing, construction and
operating expenses” 0.80 0.49 – – – – – –
III. Amount included as part of “Finance
costs” 19.86 10.19 25.72 24.36 26.92 25.28 – –
IV. Amount included as part of “Other
comprehensive income” (18.29) 66.67 (15.23) (35.95) 4.72 (7.21) – –
Total (I+II+III+IV) 287.89 337.94 60.04 14.17 34.78 29.56 534.16 373.99
Actual return on plan assets 128.44 41.93 – – – – 884.42 246.15
(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
2023-24 2022-23 2023-24 2022-23 2023-24 2022-23 2023-24 2022-23
Opening balance of the present value of
defined benefit obligation 1623.58 1428.28 352.74 354.57 375.27 371.56 6992.32 5849.85
Add: Current service cost 280.73 246.76 22.37 25.64 3.14 3.26 534.16 [1] 373.99 [1]
Add: Interest cost 100.83 83.89 25.72 24.36 26.92 25.28 641.14 489.91
Add: Contribution by plan participants
- Employee – – – – – – 920.17 697.17
Add/(less): Actuarial (gains)/losses arising
from changes in -
i) Demographic assumptions (8.71) (2.87) (35.62) (6.45) – – – –
ii) Financial assumptions 35.51 (12.82) 9.83 (19.28) 7.58 (11.57) – –
iii) Experience adjustments 3.22 51.18 10.56 (10.22) (2.86) 4.36 – –
Less: Benefits paid (166.94) (203.62) (16.76) (16.00) (27.79) (25.85) (1081.79) (871.82)
Add: Past service cost 5.13 14.47 27.18 0.12 – 8.23 – –
Add: Liabilities assumed/(transferred) 0.29 – (0.26) – – – 1165.03 379.06
Add: Business combination/disposal (2.84) 1.58 – – – – – 74.11
Add: Adjustment for earlier years – – – – – – 1.75 –
Add/(less): Translation adjustments 3.08 16.73 – – – – 0.59 0.05
Closing balance of the present value of
defined benefit obligation 1873.88 1623.58 395.76 352.74 382.26 375.27 9173.37 6992.32
[1] Employer’s contribution to provident fund.

602 Integrated Annual Report 2023-24

 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 provident
Gratuity plan
Particulars fund plan
2023-24 2022-23 2023-24 2022-23
Opening balance of the fair value of the plan assets 1094.48 1090.95 7165.44 6301.96
Add: Interest income on plan assets [2] 80.13 73.07 641.14 489.91
Add/(Less): Actuarial gains/(losses) - Difference between
actual return on plan assets and interest income 48.31 (31.14) 243.28 (243.76)
Add: Contribution by the employer 273.85 102.24 528.76 351.27
Add: Contribution by plan participants – – 934.54 686.55
Add: Assets assumed/(transferred) (0.74) – 1165.03 379.09
Add: Business combination/disposal (net) (0.79) 1.07 – 72.63
Less: Benefits paid (119.88) (141.71) (1081.79) (871.82)
Add: Adjustment for earlier years – – 0.05 (0.39)
Closing balance of the plan assets 1375.36 1094.48 9596.45 7165.44
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 ¢ 193.49 crore (previous year: ¢ 265.02 crore) towards its gratuity plan and ¢ 282.75 crore (previous year:
¢ 239.56 crore) towards its trust-managed provident fund plan during the year 2024-25.

(v) The fair value of major categories of plan assets are as follows:
v crore
Gratuity plan
Particulars As at 31-3-2024 As at 31-3-2023
Quoted Unquoted Total Quoted Unquoted Total
Cash and cash equivalents – 4.35 4.35 – 6.09 6.09
Equity instruments 46.51 – 46.51 23.23 – 23.23
Debt instruments - Corporate bonds 252.62 – 252.62 220.74 – 220.74
Debt instruments - Central Government bonds 134.93 – 134.93 116.33 – 116.33
Debt instruments - State Government bonds 210.18 – 210.18 172.16 – 172.16
Debt instruments - Public Sector Unit bonds 19.16 – 19.16 20.10 – 20.10
Mutual funds - Equity 36.61 73.85 110.46 25.41 50.89 76.30
Mutual funds - Debt 2.25 4.01 6.26 1.10 – 1.10
Special deposit scheme – 1.48 1.48 – 1.48 1.48
Fixed deposits – 3.84 3.84 – 3.58 3.58
Insurer managed fund – 571.78 571.78 – 440.49 440.49
Others 0.58 13.21 13.79 5.83 7.05 12.88
Closing balance of the plan assets 702.84 672.52 1375.36 584.90 509.58 1094.48

603
 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 31-3-2024 As at 31-3-2023
Quoted Unquoted Total Quoted Unquoted Total
Cash and cash equivalents – 12.22 12.22 – 25.69 25.69
Equity instruments 485.07 – 485.07 135.58 – 135.58
Debt instruments - Corporate bonds 3175.01 – 3175.01 2291.32 – 2291.32
Debt instruments - Central Government bonds 963.00 – 963.00 851.78 – 851.78
Debt instruments - State Government bonds 3358.65 – 3358.65 2408.20 – 2408.20
Debt instruments - Public Sector Unit bonds 334.97 – 334.97 466.85 – 466.85
Mutual funds - Equity 193.57 611.72 805.29 265.79 436.72 702.51
Mutual funds - Debt 27.30 6.68 33.98 0.72 – 0.72
Mutual funds - Others 7.51 – 7.51 – – –
Special deposit scheme – 231.72 231.72 – 235.47 235.47
Fixed deposits – 1.36 1.36 – 1.56 1.56
InvIT instruments 165.43 – 165.43 43.09 – 43.09
Others 2.42 19.82 22.24 – 2.67 2.67
Closing balance of the plan assets 8712.93 883.52 9596.45 6463.33 702.11 7165.44
(vi) The average duration (in number of years) of the defined benefit obligation at the Balance Sheet date is as follows:

Plans As at 31-3-2024 As at 31-3-2023

1. Gratuity 5.57 6.05
2. Post-retirement medical benefit plan 12.13 13.64
3. Pension plan 7.26 7.25
(vii) Principal actuarial assumptions at the Balance Sheet date (expressed as weighted average):
Plans As at 31-3-2024 As at 31-3-2023
(A) Discount rate:
(a) Gratuity plan 7.15% 7.36%
(b) Post-retirement medical benefit plan 7.15% 7.36%
(c) Pension plan 7.15% 7.36%
(B) Annual increase in healthcare costs (see note below) 0.00% 5.00%
(C) Salary growth rate:
(a) Gratuity plan 6.71% 6.53%
(b) Pension plan 9.00% 9.00%
(D) Attrition rate for various age groups:

(a) For gratuity plan, the entity wise attrition rate varies from 1% to 48% (previous year: 1% to 46%).

(b) For post-retirement medical benefit plan, the entity wise attrition rate varies from 1% to 30% (previous year: 1% to 40%).

(c) For pension plan, the entity wise attrition rate varies from 0% to 2% (previous year: 0% to 2%).

(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.

604 Integrated Annual Report 2023-24

 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
31-3-2024 31-3-2023 31-3-2024 31-3-2023
Gratuity
Impact of change in salary growth rate 101.44 99.41 (93.05) (89.37)
Impact of change in discount rate (92.23) (88.34) 102.29 100.21
Post-retirement medical benefit plan
Impact of change in health care cost 8.24 25.70 (9.10) (21.27)
Impact of change in discount rate (44.42) (43.63) 55.12 54.92
Pension plan
Impact of change in discount rate (25.84) (25.69) 29.46 29.35
(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)
above. 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 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.

(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.

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.

605
 Notes forming part of the
Consolidated Financial Statements

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 Government Grants as below:
v crore
Particulars 2023-24 2022-23
(i) Income/reduction from underlying expenses recognised towards export incentives, duty drawback and
other schemes 98.38 97.97
(ii) Benefit towards employee benefit expenses for COVID-19 pandemic 1.59 0.57
(iii) Tax credit for Research & Development in foreign jurisdiction(s) 4.46 4.06
(iv) Incentives under the Investment Promotion Scheme for manufacturing facility 1.38 –
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[1]
[1]
Under liquidation
(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[5] 2 L&T Interstate Road Corridor Limited[5]
3 Ahmedabad ‐ Maliya Tollway Limited[5] 4 Hydrocarbon Arabia Limited Company[1]
5 Panipat Elevated Corridor Limited[5] 6 L&T Rajkot‐Vadinar Tollway Limited[5]
7 Vadodara Bharuch Tollway Limited[5] 8 L&T Deccan Tollways Limited[5]
9 L&T Samakhiali Gandhidham Tollway Limited[5] 10 Kudgi Transmission Limited[5]
11 L&T Sambalpur‐Rourkela Tollway limited[5] 12 L&T Transportation Infrastructure Limited[5]
13 L&T Energy Hydrocarbon Engineering Limited[7] 14 L&T - MHI Power Boilers Private Limited
15 L&T - MHI Power Turbine Generators Private Limited 16 L&T‐Sargent & Lundy Limited
17 L&T Howden Private Limited 18 L&T Sapura Shipping Private Limited
19 L&T Offshore Private Limited (formerly known as L&T 20 L&T Special Steels and Heavy Forgings Private Limited
Sapura Offshore Private Limited)[3]
21 L&T MBDA Missile Systems Limited 22 Raykal Aluminium Company Private Limited
23 L&T Infrastructure Engineering Limited and LEA 24 GH4India Private Limited[2]
Associates South Asia Private Limited JV LLP[4]
25 Rewin Infrastructure Limited[5] 26 L&T Hydrocarbon Caspian LLC[6]
Incorporated on June 19, 2023
[1] [2]
Incorporated on August 25, 2023
[3] Reclassified as subsidiary w.e.f December 27, 2023 [4]
Divested w.e.f January 3, 2024
[5] Divested w.e.f April 10, 2024 [6]
Liquidated w.e.f September 25, 2023
[7] Reclassified as subsidiary w.e.f January 19, 2023
(iii) Name of post-employment benefit plans with whom transactions were carried out during the year:
(A) Provident Fund Trusts:
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 6 L&T Construction Equipment Employees Provident Fund Trust
7 L&T Valves Employees Provident Fund 8 L&T Chiyoda Staff Provident Fund
(B) Gratuity Trusts:
1 Larsen & Toubro Officers & Supervisors Gratuity Fund 2 Larsen & Toubro Gratuity Fund
3 L&T Technology Services Limited Employee Group 4 Nabha Power Limited Employees’ Group Gratuity Assurance
Gratuity Scheme Scheme
5 LTIMindtree Limited Employees Gratuity Fund Trust 6 LTIMindtree Employees’ Group Gratuity Assurance Scheme
7 L&T Chiyoda Officers and Supervisors Gratuity Fund 8 L&T Valves Workmen Gratuity Trust
(C) Superannuation Trust:
1 Larsen & Toubro Limited Senior Officers’ Superannuation Scheme

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Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [54] (contd.)
(iv) Name of Key Management Personnel (of the Parent Company) and close member of their family with whom transactions were
carried out during the year:
(A) Executive Directors:
1 Mr. S. N. Subrahmanyan (Chairman & Managing Director) [1] 2 Mr. R. Shankar Raman (Whole‐time Director & Chief
Financial Officer)
3 Mr. Subramanian Sarma (Whole‐time Director) 4 Mr. D. K. Sen (Whole‐time Director)[2]
5 Mr. M.V. Satish (Whole-time Director)[5] 6 Mr. J. D. Patil (Whole-time Director)[3]
7 Mr. S. V. Desai (Whole‐time Director) 8 Mr. T. Madhava Das (Whole-time Director)
9 Mr. Anil Parab (Whole-time Director)[4]
Designated as Chairman w.e.f October 1, 2023
[1] [2]
Ceased w.e.f April 7, 2023 on account of completion of term
[3] Ceased w.e.f June 30, 2022 on account of completion of term [4]
Appointed w.e.f August 5, 2022
[5] Ceased w.e.f April 7, 2024 on account of completion of term
(B) Non-executive/Independent Directors:
1 Mr. A. M. Naik[1] 2 Mr. M. M. Chitale[2]
3 Mr. M. Damodaran[2] 4 Mr. Vikram Singh Mehta[2]
5 Mr. Adil Zainulbhai 6 Mr. Sanjeev Aga
7 Mr. Narayanan Kumar 8 Mr. Hemant Bhargava
9 Ms. Preetha Reddy 10 Mr. Pramit Jhaveri[3]
11 Mr. Rajnish Kumar[4] 12 Mr. Jyoti Sagar[4]
13 Mr. Ajay Tyagi[5] 14 Mr. P. R. Ramesh[5]
[1] Ceased to be Non-executive Chairman w.e.f. September 30, 2023 Ceased w.e.f March 31, 2024 on account of completion of term
[2]

Appointed w.e.f April 1, 2022

[3] [4]
Appointed w.e.f May 10, 2023 [5]
Appointed w.e.f October 31, 2023
(C) Company Secretary
1 Mr. Sivaram Nair A

(D) Close Member of Key Management Personnel’s (KMP’s) family

1 Ms. Meena Subrahmanyan 2 Ms. Vasanti Narayanan
3 Mr. Ajinkya Anil Parab 4 Ms. Sulabha Anil Parab
5 Ms. Smita Narayan Sarang 6 Ms. Bhagyasree Joshi
7 Mr. Anand V Desai 8 Ms. Kalavathi S Desai
9 Mr. Raghavendra V Desai 10 Ms. Madhuri Subhash Gadre
11 Mr. Saurabh Mukund Chitale 12 Mr. Sushrut Mukund Chitale
13 Mr. M.V. Srinath 14 Ms. Vasanti Satish
15 Ms. Hamida Zainulbhai 16 Ms. Mukeeta Pramit Jhaveri
17 Mr. Harshad Reddy 18 Mr. Uday Singh Mehta
(v) Entity with common Key Managerial Personnel with whom transactions were carried out during the year:
1 LTIMindtree Foundation (Formerly known as Mindtree Foundation)
(b) Disclosure of related party transactions:
v crore
2023-24 2022-23
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: 870.37 1189.45
L&T - MHI Power Boilers Private Limited 332.06 480.57
L&T - MHI Power Turbine Generators Private Limited 32.48 131.41
L&T Special Steels and Heavy Forgings Private Limited 457.43 338.01
L&T Energy Hydrocarbon Engineering Limited – 172.01
Associates, including: 28.30 25.48
Magtorq Private Limited 28.30 25.06
Total 898.67 1214.93
(ii) Sale of goods/contract revenue & services
Joint ventures, including: 40.10 103.01
L&T - MHI Power Boilers Private Limited 23.56 75.18
L&T Special Steels and Heavy Forgings Private Limited 9.99 8.36
L&T MBDA Missile Systems Limited 4.69 17.53
Total 40.10 103.01

607
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [54] (contd.)
v crore
2023-24 2022-23
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 venture: 0.42 0.05
L&T-Sargent & Lundy Limited – 0.05
L&T - MHI Power Turbine Generators Private Limited 0.42 –
Total 0.42 0.05
(iv) Investment as equity/other equity
Joint ventures, including: 1.66 0.04
L&T Infrastructure Development Projects Limited – 0.04
GH4India Private Limited 1.00 –
Hydrocarbon Arabia Limited Company 0.66 –
Total 1.66 0.04
(v) Sale/Redemption of investments
Joint ventures, including: 129.26 –
L&T Infrastructure Development Projects Limited 128.88 –
Total 129.26 –
(vi) Inter-corporate deposits repaid by
Joint venture: 151.72 14.07
L&T Sapura Shipping Private Limited 151.72 14.07
Total 151.72 14.07
(vii) Inter-corporate borrowing taken from
Joint ventures: 557.16 1283.65
L&T-MHI Power Turbine Generators Private Limited 224.16 755.15
L&T MBDA Missile Systems Limited 333.00 528.50
Total 557.16 1283.65
(viii) Inter-corporate borrowing repaid to
Joint ventures: 551.56 1271.90
L&T-MHI Power Turbine Generators Private Limited 220.56 715.15
L&T MBDA Missile Systems Limited 331.00 556.75
Total 551.56 1271.90
(ix) Charges paid for miscellaneous services
Joint ventures, including: 9.04 26.48
L&T-Sargent & Lundy Limited 7.83 6.33
L&T Energy Hydrocarbon Engineering Limited – 18.69
L&T - MHI Power Boilers Private Limited 1.15 1.23
Total 9.04 26.48
(x) Rent paid, including lease rentals under leasing arrangements
Joint ventures, including: 182.27 38.22
L&T Sapura Shipping Private Limited 164.58 28.45
L&T - MHI Power Turbine Generators Private Limited 13.58 8.93
Total 182.27 38.22

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Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [54] (contd.)

v crore
2023-24 2022-23
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
(xi) Rent received, overheads recovered and miscellaneous income
Joint ventures, including: 74.18 97.02
L&T - MHI Power Boilers Private Limited 28.83 37.62
L&T-Sargent & Lundy Limited 12.61 11.66
L&T - MHI Power Turbine Generators Private Limited 9.42 10.20
L&T Infrastructure Development Projects Limited 7.84 7.47
L&T Energy Hydrocarbon Engineering Limited – 13.66
Total 74.18 97.02
(xii) Charges recovered for deputation of employees to related parties
Joint ventures: 9.71 7.50
L&T Infrastructure Development Projects Limited 0.92 0.98
L&T Special Steels and Heavy Forgings Private Limited 1.03 0.93
L&T Sapura Shipping Private Limited 7.76 5.59
Total 9.71 7.50
(xiii) Dividend received from
Joint ventures, including: 132.57 144.34
L&T Infrastructure Development Projects Limited 112.24 4.92
L&T - MHI Power Boilers Private Limited – 119.39
Total 132.57 144.34
(xiv) Buyback of shares from
Key Management Personnel, including: 20.14 –
Mr. R. Shankar Raman 10.20 –
Mr. Subramanian Sarma 5.47 –
Mr. Anil Parab 3.20 –
Close member of KMP’s family, including: 2.62 –
Ms. Meena Subrahmanyan 2.61 –
Total 22.76 –
(xv) Dividend paid to
Key Management Personnel, including: 4.93 3.66
Mr. A.M Naik 1.88 1.38
Mr. R. Shankar Raman 0.99 0.72
Mr. S. N. Subrahmanyan 0.80 0.58
Mr. Subramanian Sarma 0.53 0.33
Close member of KMP’s family, including: 0.32 0.23
Ms. Meena Subrahmanyan 0.25 0.19
Total 5.25 3.89
(xvi) Guarantee charges recovered from
Joint venture: 0.67 0.79
L&T - MHI Power Turbine Generators Private Limited 0.67 0.79
Total 0.67 0.79
(xvii) Interest paid to
Joint ventures: 12.82 12.38
L&T MBDA Missile Systems Limited 11.64 10.02
L&T - MHI Power Turbine Generators Private Limited 1.18 2.36
Total 12.82 12.38

609
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [54] (contd.)
v crore
2023-24 2022-23
Sr. Amounts Amounts
Nature of transaction/relationship/major parties
No. Amount for major Amount for major
parties parties
(xviii) Interest received from
Joint ventures: 81.22 100.48
L&T Special Steels and Heavy Forgings Private Limited 4.84 27.19
Kudgi Transmission Limited 58.31 57.68
L&T Sapura Shipping Private Limited 18.07 15.60
Associate: – 0.13
L&T Camp Facilities LLC – 0.13
Total 81.22 100.61
(xix) Amount written off as bad debts
Joint venture: 20.37 –
L&T - MHI Power Boilers Private Limited 20.37 –
Total 20.37 –
(xx) Allowance/(reversal) for expected credit loss
Joint ventures, including: (27.32) 3.13
L&T Deccan Tollways Limited – 1.73
L&T Infrastructure Development Projects Limited – 0.45
L&T - MHI Power Boilers Private Limited (22.41) 0.79
L&T-MHI Power Turbine Generators Private Limited 0.12 0.11
L&T Offshore Private Limited (formerly known as L&T Sapura (5.08) 0.01
Offshore Private Limited)
Raykal Aluminium Company Private Limited 0.01 0.01
L&T-Sargent & Lundy Limited 0.02 0.03
Total (27.32) 3.13
(xxi) Amount recognised in Profit or Loss on account of impairment/(reversal of
impairment) loss on investment
Joint venture: (33.05) –
L&T Infrastructure Development Projects Limited (33.05) –
Total (33.05) –
(xxii) Donation given
Entity with common Key Management Personnel: 81.70 24.10
LTIMindtree Foundation (Formerly known as Mindtree Foundation) 81.70 24.10
Total 81.70 24.10
(xxiii) Contribution to post employment benefit plan
(A) Towards Employer’s contribution to provident fund trusts, including: 533.53 321.24
Larsen & Toubro Officers & Supervisory Staff Provident Fund 516.34 309.26
Total 533.53 321.24
(B) Towards Employer’s contribution to gratuity fund trusts, including: 261.98 90.46
Larsen & Toubro Officers & Supervisors Gratuity Fund 123.95 14.20
LTIMindtree Limited Employees Gratuity Fund Trust (Formerly Mindtree – 21.09
Limited Employees Gratuity Fund Trust)
LTIMindtree Employees’ Group Gratuity Assurance Scheme (Formerly 94.57 37.89
Larsen & Toubro Infotech Employees’ Group Gratuity Assurance Scheme)
L&T Technology Services Limited Employee Group Gratuity Scheme 30.50 12.39
Total 261.98 90.46
(C) Towards Employer’s contribution to superannuation trust: 16.09 15.84
Larsen & Toubro Limited Senior Officers’ Superannuation Scheme 16.09 15.84
Total 16.09 15.84
“Major parties” denote entities accounting for 10% or more of the aggregate for that category of transaction during respective year.

610 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [54] (contd.)
(xxiv) Compensation/benefits to Key Management Personnel (KMP):
v crore
2023-24 2022-23
Short term Post ESOP granted Short term Post
Key Management Personnel Other Long Other long
employee employment during the Total employee employment Total
benefits term benefit term benefit
benefits year [5] benefits benefits
Executive Directors:
(a) Mr. S. N. Subrahmanyan 39.15 10.50 – 32.40 82.05 27.54 7.36 – 34.90
(b) Mr. R. Shankar Raman 24.26 6.50 – – 30.76 17.10 4.57 – 21.67
(c) Mr. Subramanian Sarma 20.81 5.57 – – 26.38 14.57 3.89 – 18.46
(d) Mr. D. K. Sen 0.21 15.31 [1] 6.94 [2] – 22.46 9.52 2.52 – 12.04
(e) Mr. M. V. Satish 10.53 2.78 – – 13.31 9.55 2.51 – 12.06
(f) Mr. J. D. Patil – – – – – 2.12 18.31 [4] 10.98 [2] 31.41
(g) Mr. S. V. Desai 14.82 3.95 – 9.26 28.03 10.41 2.76 – 13.17
(h) Mr. Anil Parab 9.85 2.61 – – 12.46 4.28 1.11 – 5.39
(i) Mr. T. Madhava Das 14.47 3.86 – – 18.33 8.92 2.36 – 11.28
Non-executive/Independent Directors:
(j) Remuneration
(a) Mr. A. M. Naik 4.14 1.50 [3] – – 5.64 9.16 3.00 [3] – 12.16
(b) Other Non-executive/Independent 5.76 – – – 5.76 4.96 – – 4.96
Directors
Company Secretary
(a) Mr. Sivaram Nair A 1.70 0.02 – – 1.72 1.57 0.02 – 1.59
Total 145.70 52.60 6.94 41.66 246.90 119.70 48.41 10.98 179.09
[1] Post employment benefits include gratuity ¢ 15.25 crore [2]
Represents encashment of past service accumulated leave
Represents pension
[3] [4]
Post employment benefits include gratuity ¢ 17.75 crore
[5] Represents fair value of ESOPs granted during the year which will be vested equally over a period of 4 years.

(c) Amount due to/from related parties (including commitments):

v crore
As at 31-3-2024 As at 31-3-2023
Sr. Amounts Amounts
Category of balance/relationship/major parties
No. Amount for major Amount for major
parties parties
(i) Accounts receivable
Joint ventures, including: 29.37 93.80
L&T - MHI Power Boilers Private Limited 17.79 83.98
L&T Special Steels and Heavy Forgings Private Limited 3.19 0.67
Associate: 0.23 0.22
Larsen & Toubro Qatar & HBK Contracting Co. WLL 0.23 0.22
Total 29.60 94.02
(ii) Accounts payable including other payable
Joint ventures, including: 1288.16 1462.27
L&T - MHI Power Boilers Private Limited 750.63 761.11
L&T - MHI Power Turbine Generators Private Limited 268.01 454.30
L&T Special Steels and Heavy Forgings Private Limited 210.84 112.14
Associates, including: 5.89 9.21
Magtorq Private Limited 5.51 8.82
Total 1294.05 1471.48

611
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [54] (contd.)
v crore
As at 31-3-2024 As at 31-3-2023
Sr. Amounts Amounts
Category of balance/relationship/major parties
No. Amount for major Amount for major
parties parties
(iii) Investment in debt securities [including preference shares (debt
portion)]
Joint ventures: 949.43 955.56
L&T Special Steels and Heavy Forgings Private Limited* 213.17 213.17
Kudgi Transmission Limited# 736.26 742.39
Total 949.43 955.56
* Before set-off of losses under equity accounting and impairment
# Secured
(iv) Loans & advances recoverable
Joint ventures, including: 2036.29 2317.70
L&T Special Steels and Heavy Forgings Private Limited* 1790.93 1829.14
L&T Sapura Shipping Private Limited 208.23 345.96
Associates: 7.13 7.57
L&T Camp Facilities LLC 2.58 2.52
Magtorq Private Limited 4.55 5.05
Total 2043.42 2325.27
* Before set-off of losses under equity accounting and impairment
(v) Impairment/provision of loans & advances recoverable
Joint ventures, including: 1139.91 1145.09
L&T Special Steels and Heavy Forgings Private Limited 1139.03 1139.03
Total 1139.91 1145.09
(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: 207.68 202.04
L&T MBDA Missile Systems Limited 164.06 162.03
L&T - MHI Power Turbine Generators Private Limited 43.62 40.01
Total 207.68 202.04
(viii) Advances from customers
Joint ventures, including: 2.39 5.80
L&T - MHI Power Boilers Private Limited 2.39 5.70
Close member of KMP’s family: 0.11 –
Ms. Meena Subrahmanyan 0.11 –
Total 2.50 5.80

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Overview Discussion and Analysis Report Reports Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [54] (contd.)
v crore
As at 31-3-2024 As at 31-3-2023
Sr. Amounts Amounts
Category of balance/relationship/major parties
No. Amount for major Amount for major
parties parties
(ix) Due to Key Management Personnel [a]: 125.36 95.41
Key Management Personnel, including:
Mr. A. M. Naik 1.22 2.74
Mr. S. N. Subrahmanyan 35.28 24.10
Mr. R. Shankar Raman 21.83 14.82
Mr. D. K. Sen 0.18 7.75
Mr. M. V. Satish 8.57 7.72
Mr. J. D. Patil – 1.73
Mr. Subramanian Sarma 18.56 12.44
Mr. S. V. Desai 13.41 9.07
Mr. T. Madhava Das 13.06 7.60
Mr. Anil Parab 8.62 3.50
Total 125.36 95.41
(x) Provision towards unspent CSR expenses
Entity with common Key Management Personnel: 0.90 4.20
LTIMindtree Foundation (Formerly known as Mindtree 0.90 4.20
Foundation)
Total 0.90 4.20
(xi) Post employment benefit plans
(A) Due to provident fund trusts, including: 138.71 100.29
Larsen & Toubro Officers & Supervisory Staff Provident Fund 134.57 95.40
Total 138.71 100.29
(B) Due to gratuity trusts, including: 182.73 259.82
Larsen & Toubro Officers & Supervisors Gratuity Fund 44.12 107.15
L&T Technology Services Limited Employee Group Gratuity Scheme 39.42 30.50
LTIMindtree Limited Employees Gratuity Fund Trust – 36.88
LTIMindtree Employees’ Group Gratuity Assurance Scheme 94.37 57.69
Larsen & Toubro Gratuity Fund 3.45 26.49
Total 182.73 259.82
(C) Due to superannuation fund: 17.93 10.65
Larsen & Toubro Limited Senior Officers’ Superannuation Scheme 17.93 10.65
Total 17.93 10.65
(xii) Revenue commitment given
Joint ventures, including: 1028.34 1287.63
L&T - MHI Power Boilers Private Limited 570.11 652.15
L&T Special Steels and Heavy Forgings Private Limited 370.22 556.15
Associates, including: 31.76 41.38
Magtorq Private Limited 31.76 40.94
Total 1060.10 1329.01

[a]
includes commission due to other Non-executive directors ¢ 4.63 crore (previous year: ¢ 3.94 crore)

613
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [54] (contd.)
v crore
As at 31-3-2024 As at 31-3-2023
Sr. Amounts Amounts
Category of balance/relationship/major parties
No. Amount for major Amount for major
parties parties
(xiii) Revenue commitment received
Joint ventures, including: 15.48 57.52
L&T - MHI Power Boilers Private Limited 10.68 47.84
L&T MBDA Missile Systems Limited 4.80 9.38
Close Member of KMP’s family: 7.68 –
Ms. Meena Subrahmanyan 7.68 –
Total 23.16 57.52
(xiv) Provision for expected credit loss
Joint ventures, including: 2.74 25.15
L&T - MHI Power Boilers Private Limited 0.12 22.61
L&T - MHI Power Turbine Generators Private Limited 0.36 0.24
L&T Infrastructure Development Projects Limited 0.45 0.45
L&T Deccan Tollways Limited 1.73 1.73
Total 2.74 25.15
(xv) Guarantees given on behalf of
Joint ventures, including: 243.22 311.92
L&T - MHI Power Turbine Generators Private Limited 210.56 276.58
Total 243.22 311.92
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 2023-24 2022-23
Basic EPS
Profit after tax (¢ crore) A 13059.11 10470.72
Weighted average number of equity shares outstanding B 1,38,98,17,026 1,40,52,58,885
Basic EPS (¢) A/B 93.96 74.51
Diluted EPS
Profit after tax (¢ crore) A 13059.11 10470.72
Weighted average number of equity shares outstanding B 1,38,98,17,026 1,40,52,58,885
Add: W
 eighted average number of potential equity shares on account of employee C
stock options 12,33,876 11,80,266
Weighted average number of equity shares outstanding for diluted EPS D=B+C 1,39,10,50,903 1,40,64,39,151
Diluted EPS (¢) A/D 93.88 74.45
Face value per share (¢) 2.00 2.00

614 Integrated Annual Report 2023-24

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Overview Discussion and Analysis Report Reports 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 1-4-2023 19.70 396.49 534.63 688.58 85.28 1724.68
2 Additional provision during the year 7.13 30.71 29.12 472.12 39.33 578.41
3 Provision used during the year (1.08) (42.42) – (56.87) (14.67) (115.04)
4 Unused provision reversed during the year (4.88) (63.66) (41.00) (326.57) – (436.11)
5 Translation adjustments – – – 0.40 – 0.40
6 Balance as at 31-3-2024 (1 to 5) 20.87 321.12 522.75 777.66 109.94 1752.34

Breakup of provisions:
v crore
Particulars Note 24 Note 31 Total
Balance as at 1-4-2023 174.67 1550.01 1724.68
Balance as at 31-3-2024 245.69 1506.65 1752.34

(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, 2024 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 services 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.

615
 Notes forming part of the
Consolidated Financial 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 2023-24 2022-23
No.
(i) Recognised as expense in the Statement of Profit and Loss 187.43 207.29
(ii) Capital expenditure on:
(a) tangible assets 5.61 9.36
(b) intangible assets being expenditure on new product development 58.79 –
(c) other intangible assets 1.32 1.07

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. 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 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 local currency product
pricing due to competitive pressures when there has been significant volatility in foreign currency exchange rates.

The Group may enter foreign currency forward and option contracts with financial institutions to protect against foreign exchange
risks associated with existing assets and liabilities, 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.

616 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports 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 31-3-2024
Particulars US Dollar including British Algerian Canadian Japanese Kuwaiti
EURO
pegged currencies Pound Dinar Dollar Yen Dinar
Net exposure to foreign currency risk in respect of recognised financial assets/
(recognised financial liabilities) 982.08 627.16 88.55 (48.16) (433.05) (134.53) 137.81
Derivatives including embedded derivatives for hedging receivable/(payable)
exposure with respect to non-financial assets/(non-financial liabilities) 208.69 (331.95) – – – (11.01) –
Derivatives including embedded derivatives for hedging receivable/(payable)
exposures with respect to firm commitments and highly probable forecast
transactions 43047.38 (15828.85) (55.54) – – 1442.30 490.23
Receivable/(payable) exposures with respect to forward contracts and embedded
derivatives not designated as cash flow hedge 1221.52 (424.23) 2.36 – – 10.27 –

v crore
As at 31-3-2023
Particulars US Dollar including Algerian Canadian
EURO British Pound Japanese Yen Kuwaiti Dinar
pegged currencies Dinar Dollar
Net exposure to foreign currency risk in respect of recognised financial assets/
(recognised financial liabilities) 274.34 (569.13) 260.77 (349.30) 75.06 (378.20) (209.37)
Derivatives including embedded derivatives for hedging receivable/(payable)
exposure with respect to non-financial assets/(non-financial liabilities) 863.58 (677.01) – – – – –
Derivatives including embedded derivatives for hedging receivable/(payable)
exposures with respect to firm commitments and highly probable forecast
transactions 42186.54 (2855.70) (175.71) – – 164.96 507.44
Receivable/(payable) exposures with respect to forward contracts and embedded
derivatives not designated as cash flow hedge 2501.89 (43.19) (485.62) – – 7.89 –
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 exposure 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 is 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 ¢ 140.87 crore as at March 31, 2024 and
¢ 184.30 crore as at March 31, 2023.

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, 2024 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 exists 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 SOFR/LIBOR. The Group also hedges a portion of these risks by way of derivative instruments.

The Group has completed transition of its LIBOR linked loans to SOFR linked loans.

The exposure of the Group’s borrowing to interest rate changes is ¢ 24652.62 crore (as at 31-3-2023 ¢ 28755.80 crore).

617
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [58] (contd.)
A hypothetical 50 basis point shift in respective currency SOFR 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
2023-24 2022-23 As at 31-3-2024 As at 31-3-2023
INR loans given (net of INR borrowings)
Interest rates - increase by 0.50% in INR interest rate 3.72 15.49 3.72 15.49
Interest rates - decrease by 0.50% in INR interest rate (3.72) (15.49) (3.72) (15.49)
USD (including pegged currencies) borrowings
Interest rates - increase by 0.50% in USD interest rate (10.20) (12.73) (10.20) (12.73)
Interest rates - decrease by 0.50% in USD interest rate 10.20 12.73 10.20 12.73
(b) Liquidity risk management:
The Group 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 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 31-3-2024 As at 31-3-2023
Debt funds and debt securities - increase by 0.50% in fair market value 101.58 104.02
Debt funds and debt securities - decrease by 0.50% in fair market value (101.58) (104.02)
Equity and equity marketable securities - increase by 5% in NAV 8.90 4.44
Equity and equity marketable securities - decrease by 5% in NAV (8.90) (4.44)
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.

618 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports 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 1-4-2022 1091.03 1101.47 1434.02 3626.52
New assets originated or purchased 1088.17 61.16 111.59 1260.92
Amount written off – – (1404.77) (1404.77)
Transfers to Stage 1 66.22 (46.71) (19.51) –
Transfers to Stage 2 (6.72) 16.21 (9.49) –
Transfers to Stage 3 (21.29) (315.79) 337.08 –
Impact on year end ECL of exposure transferred between stages during
the year (64.40) 67.57 1365.66 1368.83
Increase/ (Decrease) provision on existing financial assets (Net of recovery) (927.55) (260.19) 14.03 (1173.71)
Transfer to fair value through Profit or Loss on account of reclassification
from amortised cost (48.81) (257.68) (85.29) (391.78)
Loss allowance as at 31-3-2023 1176.65 366.04 1743.32 3286.01
New assets originated or purchased 993.25 68.54 177.98 1239.77
Amount written off – (13.37) (947.49) (960.86)
Transfers to Stage 1 25.53 (13.13) (12.40) –
Transfers to Stage 2 (6.24) 13.30 (7.06) –
Transfers to Stage 3 (15.28) (72.22) 87.50 –
Impact on year end ECL of exposure transferred between stages during
the year (25.17) 103.60 1008.72 1087.15
Increase/ (Decrease) in provision on existing financial assets (Net of
recovery) (824.44) (30.73) (258.71) (1113.88)
Loss allowance as at 31-3-2024 1324.30 422.03 1791.86 3538.19
(iv) Reconciliation of allowance for expected credit loss (“ECL”) on trade receivables (other than financial services business):
v crore
Particulars 2023-24 2022-23
Provision as at April 1 4414.84 3892.11
Changes in allowance for ECL:
Provision/(reversal) of allowance for ECL 332.45 410.65
Additional provision (net) 402.46 310.61
Write off as bad debts (561.45) (207.26)
Translation adjustment 5.35 8.73
Provision as at March 31 (Note 13) 4593.65 4414.84
(v) Amounts written off:
v crore
Particulars 2023-24 2022-23
Amount of financial assets written off during the year but still enforceable 947.78 1450.70

(d) Commodity price risk management:

The Group bids for and executes EPC projects. These 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 and further uses hedging instruments where available [Note
59 (k)(iii)]. There is a certain residual risk carried by the Group that cannot be hedged.

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 have been volatile and have witnessed
substantial two-way movements during the financial year. This may impact the 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.

619
 Notes forming part of the
Consolidated Financial 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. 31-3-2024 31-3-2023
I. Measured at Fair Value through Profit or Loss (FVTPL):
(a) Mandatorily measured:
(i) Investment in equity instruments 6,12 140.35 356.38
(ii) Investment in preference shares 6 130.25 145.70
(iii) Investment in mutual funds and units of fund 6,12 11414.96 11637.51
(iv) Investment in government securities, debentures and bonds 6,12 553.03 978.55
(v) Derivative instruments not designated as cash flow hedges 9,18 20.66 48.89
(vi) Embedded derivatives not designated as cash flow hedges 9,18 113.47 168.47
(vii) Investment in security receipts 6 6769.51 6321.07
(viii) Investment in InvITs 12 2694.57 802.08
Sub-total (a) 21836.80 20458.65
(b) Designated:
(i) Loans 16 4861.56 17056.78
Sub-total (b) 4861.56 17056.78
Sub-total (I = a+b) 26698.36 37515.43
II. Measured at amortised cost:
(i) Loans 7,8,16,17 82689.79 64931.84
(ii) Investment in government securities, debentures, bonds and CBLO 6,12 2922.22 2096.97
(iii) Investment in commercial paper 12 937.25 2515.31
(iv) Treasury Bills and other investments 6,12 5860.95 6307.04
(v) Trade receivables 13 48770.95 44731.53
(vi) Other recoverable 18 2790.22 1759.63
(vii) Unbilled revenue 18 1416.41 1684.35
(viii) Cash and cash equivalents and bank balances 9,14,15 16031.82 23697.77
(ix) Other receivables 1300.64 1153.05
Sub-total (II) 162720.25 148877.49
III. Measured at Fair Value through Other comprehensive income (FVTOCI):
(c) Mandatorily measured:
(i) Investment in government securities, debentures and bonds 6,12 12925.39 12296.86
(ii) Investment in preference shares 6 34.99 34.99
(iii) Investment in units of funds 6 – 0.90
(iv) Derivative instruments designated as cash flow hedges 9,18 1144.31 815.94
(v) Embedded derivative designated as cash flow hedges 9,18 56.86 87.38
Sub-total (c) 14161.55 13236.07
(d) Designated:
(i) Investment in equity instruments 6 0.10 0.09
Sub-total (d) 0.10 0.09
Sub-total (III = c+d) 14161.65 13236.16
Total (I+II+III) 203580.26 199629.08

620 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports 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. 31-3-2024 31-3-2023
I. Measured at Fair Value through Profit or Loss (FVTPL):
(i) Derivative instruments not designated as cash flow hedges 23,29 32.86 35.96
(ii) Embedded derivatives not designated as cash flow hedges 23,29 20.55 17.14
(iii) Others 10.22 35.12
Sub-total (I) 63.63 88.22
II. Measured at amortised cost:
(i) Borrowings 22,26,27 114039.77 118513.38
(ii) Trade payables:
Due to micro enterprises and small enterprises 1018.71 851.70
Due to others 28 52274.17 48932.42
(iii) Lease liability 2282.45 2137.06
(iv) Others 7275.89 7042.07
Sub-total (II) 176890.99 177476.63
III. Measured at Fair Value through Other comprehensive income (FVTOCI):
(i) Derivative instruments designated as cash flow hedges 23,29 310.93 551.54
(ii) Embedded derivatives designated as cash flow hedges 23,29 21.09 31.53
Sub-total (III) 332.02 583.07
IV. Financial guarantee contracts 23,29 0.20 1.54
Total (I+II+III+IV) 177286.84 178149.46
(c) Items of income, expenses, gains or losses related to financial instruments:
v crore
Sr.
Particulars 2023-24 2022-23
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 FVTPL:
1. Gains/(losses) on fair valuation or sale of investments 698.90 89.91
2. Gains/(losses) on fair valuation or sale of investments and loans (Financial Services)
(including exceptional items) (431.46) (2893.82)
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 97.76 (101.47)
(b) Gains/(losses) on fair valuation or settlement of embedded derivative contracts not
designated as cash flow hedges 18.72 188.47
(c) Gains/(losses) on fair valuation or settlement of futures not designated as cash flow
hedges (6.18) 135.08
Sub-total (A) 377.74 (2581.83)
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.) (8.09) 627.40
(ii) (Allowance)/reversal for expected credit loss (ECL) during the year (1650.85) (1962.19)
(iii) (Provision)/reversal for impairment loss (other than ECL) [net] (306.42) 50.30
(iv) Gains/(losses) on derecognition:
(a) Bad debts written off (net) (104.09) (527.02)
(b) Gains/(losses) on transfer of financial assets (including non-recourse basis) (473.42) (385.35)
Sub-total (B) (2542.87) (2196.86)

621
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [59] (contd.)
v crore
Sr.
Particulars 2023-24 2022-23
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.) (80.04) (302.82)
(ii) Unclaimed credit balances written back 575.54 259.27
Sub-total (C) 495.50 (43.55)
Total (I = A+B+C) (1669.63) (4822.24)
II. Net gains/(losses) on financial assets and financial liabilities measured at fair value through Other
comprehensive income (FVTOCI):
A. Gains recognised in Other comprehensive income:
(i) Financial assets measured at FVTOCI:
(a) Gains/(losses) on fair valuation or sale of government securities, bonds, debentures etc. 159.44 (283.83)
(ii) Derivative measured at FVTOCI:
(b) Gains/(losses) on fair valuation or settlement of forward contracts designated as cash
flow hedges 383.83 (1027.11)
(c) Gains/(losses) on fair valuation or settlement of embedded derivative contracts
designated as cash flow hedges (13.72) 130.82
Sub-total (A) 529.55 (1180.12)
Less:
B. Gains reclassified to Profit and Loss from Other comprehensive income
(i) Financial assets measured at FVTOCI:
(a) On government securities, bonds, debentures etc. upon sale 32.63 (37.03)
(ii) Derivative measured at FVTOCI:
(b) On forward contracts upon hedged future cash flows affecting the Profit and Loss or
related assets or liabilities 91.94 409.76
(c) On embedded derivative contracts upon hedged future cash flows affecting the Profit
and Loss or related assets or liabilities 16.89 0.06
Sub-total (B) 141.46 372.79
Net gains recognised in Other comprehensive income (A-B) 388.09 (1552.91)
III. Interest and other income/expense:
A. Dividend income:
(i) Dividend income from investments measured at FVTPL 96.25 6.28
(ii) Dividend income from Joint Venture (classified as held for sale) 112.24 –
Sub-total (A) 208.49 6.28
B. Interest income:
(i) Financial assets measured at amortised cost 13746.37 11081.98
(ii) Financial assets measured at FVTOCI 1192.11 1042.08
(iii) Financial assets measured at FVTPL 1581.12 3043.44
Sub-total (B) 16519.60 15167.50
C. Interest expense:
(i) Financial liabilities measured at amortised cost (8841.65) (8745.41)
(ii) Derivative instruments (including embeded derivatives) that are measured at FVTOCI – (185.03)
(reclassified to Profit and Loss during the year)
(iii) Financial liabilities measured at FVTPL (23.80) (0.36)
Sub-total (C) (8865.45) (8930.80)
Total (III = A+B+C) 7862.64 6242.98

622 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports 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 31-3-2024 As at 31-3-2023
Particulars Carrying Carrying
Fair value Fair value
amount amount
Financial assets:
Loans 52155.25 52155.25 40921.42 40921.42
Government securities, debentures and bonds 2922.22 2922.22 2096.97 2096.97
Total 55077.47 55077.47 43018.39 43018.39
Financial liabilities:
Borrowings 52214.07 52061.62 51958.08 51665.91
Total 52214.07 52061.62 51958.08 51665.91
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, borrowings taken for short term or
borrowings taken on 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 31-3-2024 Level 1 Level 2 Level 3 Total
level 3 items
Financial assets:
Loans – 5142.68 47012.57 52155.25 Discounted cash flow
Government securities, debentures and bonds 2773.26 – 148.96 2922.22
Total 2773.26 5142.68 47161.53 55077.47
Financial liabilities:
Borrowings – 24290.93 27770.69 52061.62 Discounted cash flow
Total – 24290.93 27770.69 52061.62

v crore
Valuation technique for
As at 31-3-2023 Level 1 Level 2 Level 3 Total
level 3 items
Financial assets:
Loans – 5600.83 35320.59 40921.42 Discounted cash flow
Government securities, debentures and bonds 1853.41 105.67 137.89 2096.97
Total 1853.41 5706.50 35458.48 43018.39
Financial liabilities:
Borrowings – 21584.82 30081.09 51665.91 Discounted cash flow
Total – 21584.82 30081.09 51665.91
Valuation technique Level 2: Future cash flows discounted using market rates.

623
 Notes forming part of the
Consolidated Financial 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 31-3-2024 As at 31-3-2023
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 26.29 – 114.06 140.35 63.99 – 292.39 356.38
(ii) Preference shares 6 – – 130.25 130.25 – – 145.70 145.70
(iii) Mutual funds and units of fund 6,12 11387.59 – 27.37 11414.96 11608.92 – 28.59 11637.51
(iv) Debt instruments viz. government securities,
bonds and debentures 6,12 347.73 – 205.30 553.03 781.27 – 197.28 978.55
(v) Derivative instruments not designated as cash
flow hedges 9,18 – 20.66 – 20.66 – 48.89 – 48.89
(vi) Embedded derivative instruments not
designated as cash flow hedges 9,18 – 113.47 – 113.47 – 168.47 – 168.47
(vii) Security receipts 6 – – 6769.51 6769.51 – – 6321.07 6321.07
(viii) InvITs 12 2694.57 – – 2694.57 802.08 – – 802.08
(ix) Loans (Financial Services) 16 – – 4861.56 4861.56 – – 17056.78 17056.78
Financial assets at FVTOCI:
(i) Debt instruments viz. government securities,
bonds and debentures 6,12 10072.95 2852.15 0.29 12925.39 9547.08 2749.49 0.29 12296.86
(ii) Preference shares 6 – – 34.99 34.99 – – 34.99 34.99
(iii) Equity shares 6 – – 0.10 0.10 – – 0.09 0.09
(iv) Derivative instruments designated as cash flow
hedges 9,18 – 1144.31 – 1144.31 – 815.94 – 815.94
(v) Embedded derivative instruments designated as
cash flow hedges 9,18 – 56.86 – 56.86 – 87.38 – 87.38
(vi) Units of fund 6 – – – – – 0.90 – 0.90
Total 24529.13 4187.45 12143.43 40860.01 22803.34 3871.07 24077.18 50751.59
Financial liabilities:
Financial liabilities at FVTPL:
(a) Designated at FVTPL:
(i) Derivative instruments not designated as
cash flow hedges 23,29 – 32.86 – 32.86 – 35.96 – 35.96
(ii) Embedded derivative instruments not
designated as cash flow hedges 23,29 – 20.55 – 20.55 – 17.14 – 17.14
(iii) Others – – 10.22 10.22 – – 35.12 35.12
(b) Designated at FVTOCI:
(i) Derivative instruments designated as cash
flow hedges 23,29 – 310.93 – 310.93 – 551.54 – 551.54
(ii) Embedded derivative instruments
designated as cash flow hedges 23,29 – 21.09 – 21.09 – 31.53 – 31.53
Total – 385.43 10.22 395.65 – 636.17 35.12 671.29
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 balance sheet date.
(b) Preference share and government securities, bonds and debentures – Future cash flows are discounted using G-sec
rates as at balance sheet date.

624 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports 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 1-4-2022 605.74 121.67 591.09 22753.78 4918.33 28990.61
Addition during the year 0.09 71.02 – 14601.32 2494.75 17167.18
Disposal during the year (0.05) – – (25115.93) (689.18) (25805.16)
Reclassification from Amortised cost to FVTPL – – – 6508.91 – 6508.91
Gains/(losses) recognised in Statement of
Profit and Loss (313.30) (12.00) (393.52) (1691.30) (374.24) (2784.36)
Balance as at 31-3-2023 292.48 180.69 197.57 17056.78 6349.66 24077.18
Addition during the year – – 113.84 2025.85 2504.10 4643.79
Disposal during the year (224.00) – (249.88) (16005.39) (725.39) (17204.66)
Exchange Differences – 0.98 – – – 0.98
Gains/(losses) recognised in Statement of
Profit and Loss 45.68 (16.43) 144.06 1784.32 (1331.49) 626.14
Balance as at 31-3-2024 114.16 165.24 205.59 4861.56 6796.88 12143.43

(h) Sensitivity disclosure for level 3 fair value measurements:

Fair value as at
31-3-2024 31-3-2023 Significant unobservable
Particulars Sensitivity
inputs
v crore
27.59 213.79 Book value Increase/(decrease) of 5% in the book value would result in impact on profit or
loss by ¢ 0.89 crore (previous year: ¢ 7.99 crore)

Equity shares 86.57 78.69 31-3-2024 and 31-3-2023: Increase/(decrease) of 1% in net realisation would result in impact on profit or
1. Net realisation per month loss by ¢ 0.31 crore (previous year: ¢ 0.28 crore)
¢ 35 per sq/ft. Increase/(decrease) of 0.25% in capitalisation rate would result in impact on
2. Capitalisation rate 11.50% profit or loss by ¢ 0.66 crore (previous year: ¢ 0.60 crore)

66.77 82.21 Book value Increase/(decrease) of 5% in the book value would result in impact on profit or
Preference loss by ¢ 3.34 crore (previous year: ¢ 4.11 crore)
shares 98.47 98.48 Expected yield Increase/(decrease) in the fair value by 5% would result in impact on profit or loss
by ¢ 3.20 crore (previous year: ¢ 3.51 crore)

205.59 197.57 Expected yield Increase/(decrease) in fair value by 0.25% would result in impact on profit or loss
Debt instruments
by ¢ 0.31 crore (previous year: ¢ 0.37 crore)

4861.56 17056.78 Expected yield Increase/(decrease) in fair value by 0.25% would result in impact on profit or loss
Loans
by ¢ 7.91 crore (previous year: ¢ 24.06 crore)

Other 6796.88 6349.66 Net Assets Value (NAV) Increase/(decrease) in the NAV by 5% would result in impact on profit or loss by
Investments ¢ 221.09 crore (previous year: ¢ 237.59 crore)

625
 Notes forming part of the
Consolidated Financial 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 1-4-2022 143.41
Charge recognised in Statement of Profit and Loss (51.71)
Settled during the year (56.93)
Foreign exchange difference 0.35
Balance as at 31-3-2023 35.12
Charge recognised in Statement of Profit and Loss (12.05)
Settled during the year (13.09)
Foreign exchange difference 0.24
Balance as at 31-3-2024 10.22
Note:
A 1% point 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 31-3-2024 As at 31-3-2023

Particulars Note Within After Within After

twelve twelve Total twelve twelve Total
months months months months
A. Non-derivative liabilities:
Borrowings 22, 26 ,27 60775.18 66408.51 127183.69 60970.15 72218.41 133188.56
Trade payables:
Due to micro enterprises and small enterprises 995.75 22.96 1018.71 761.17 90.53 851.70
Due to others 28 51532.67 741.50 52274.17 45918.99 3013.43 48932.42
Other financial liabilities 23, 29 7151.78 134.67 7286.45 6988.43 88.77 7077.20
Lease Liability 566.24 1839.90 2406.14 613.89 2077.52 2691.41
Total 121021.62 69147.54 190169.16 115252.63 77488.66 192741.29
B. Derivative liabilities:
Forward contracts 23, 29 327.69 19.35 347.04 387.68 204.46 592.14
Embedded derivatives 23, 29 41.64 – 41.64 43.81 5.42 49.23
Total 369.33 19.35 388.68 431.49 209.88 641.37

626 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports 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 31-3-2024 As at 31-3-2023
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 56596.51 86.59 29715.54 26880.97 52149.61 84.54 27679.70 24469.91
EURO 1554.78 93.16 1090.98 463.80 1115.30 91.19 892.35 222.95
Malaysian Ringgit 190.06 18.03 190.06 – 57.30 19.26 57.30 –
Omani Riyal 10.91 219.16 10.91 – 93.84 214.40 93.84 –
Arab Emirates Dirham 705.19 22.68 605.11 100.08 1018.03 22.66 1018.03 –
Japanese Yen 2674.33 0.56 1411.98 1262.35 1245.81 0.65 906.40 339.41
Kuwaiti Dinar 795.30 275.25 790.64 4.66 862.35 269.82 862.35 –
Qatari Riyal 1816.12 22.89 1777.62 38.50 1626.45 22.61 1496.29 130.16
Saudi Riyal – – – – 192.21 22.02 192.21 –
Thai Baht 22.93 2.43 22.93 – 2.97 2.41 2.97 –
(b) Payable hedges:
US Dollar 16054.45 84.48 9582.47 6471.98 10956.64 81.25 9644.92 1311.72
EURO 19973.80 91.86 18515.09 1458.71 7288.29 89.53 6952.47 335.82
Qatari Riyal 120.39 22.87 120.39 – 183.24 22.54 183.24 –
Arab Emirates Dirham 562.70 22.85 562.70 – 219.97 22.43 219.97 –
British Pound 158.29 104.59 146.59 11.70 255.36 101.45 255.36 –
Japanese Yen 1152.07 0.56 1130.91 21.16 912.41 0.65 899.47 12.94
Kuwaiti Dinar 171.79 273.47 171.79 – 173.20 268.72 173.20 –
Swiss Franc 459.01 92.41 457.81 1.20 625.18 90.81 454.10 171.08
Chinese Yuan 17.86 11.75 17.86 – 78.95 12.09 78.95 –
Canadian Dollar 1.80 61.55 1.80 – 2.23 60.96 2.23 –
(B) Options taken to hedge exchange rate risk and accounted as cash flow hedge:
As at 31-3-2024 As at 31-3-2023
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 848.63 [1]
402.56 446.07 1392.29 [1]
512.95 879.34
EURO/US Dollar 795.62 [1]
605.14 190.48 1244.45 [1]
666.05 578.40
US Dollar/EURO 169.08 [1]
169.08 – 623.02 [1]
449.33 173.69
US Dollar/British Pound 92.93 [1]
92.93 – 239.01 [1]
146.08 92.93
(b) Payable hedges:
US Dollar/EURO 169.08 [1]
169.08 – 623.02 [1]
449.33 173.69
EURO/US Dollar 73.29 [1]
73.29 – 276.58 [1]
199.59 76.99
British Pound/US Dollar 39.91 [1]
39.91 – 109.60 [1]
69.69 39.91
US Dollar/British Pound 92.93 [1]
92.93 – 239.01 [1]
146.08 92.93
[1] The options contracts include a combination of calls and puts with different maturities and strike prices.

627
 Notes forming part of the
Consolidated Financial 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 31-3-2024 As at 31-3-2023
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 2347.53 83.39 2347.53 – 3637.97 82.57 3637.97 –
Canadian Dollar – – – – 6.63 60.26 6.63 –
British Pound 21.09 105.46 21.09 – – – – –
Australian Dollar – – – – 20.12 55.12 20.12 –
Norwegian Krone – – – – 3.15 7.86 3.15 –
EURO 285.74 90.71 285.74 – 104.79 89.19 104.79 –
(D) Forward covers taken to hedge exchange rate risk and accounted as net investment hedge:
As at 31-3-2024 As at 31-3-2023
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:
Arab Emirates Dirham 32.57 22.82 32.57 – 152.19 22.32 152.19 –
Saudi Riyal 194.58 22.28 194.58 – – – – –
(ii) Outstanding interest rate hedge instruments:
(A) Interest rate swaps taken to hedge interest rate risk and accounted as cash flow hedge:
As at 31-3-2024 As at 31-3-2023
Within After Within After
Particulars Nominal Average Nominal Average
twelve twelve twelve twelve
amount rate amount rate
months months months months
(v crore) (%) (v crore) (%)
(v crore) (v crore) (v crore) (v crore)
Floating interest rate borrowings - INR 400.00 6.23 – 400.00 500.00 6.25 – 500.00
(B) Interest rate swaps taken to hedge interest rate risk and accounted as fair value hedge:
As at 31-3-2024 As at 31-3-2023
Within After Within After
Particulars Nominal Average Nominal Average
twelve twelve twelve twelve
amount rate amount rate
months months months months
(v crore) (%) (v crore) (%)
(v crore) (v crore) (v crore) (v crore)
Floating interest rate borrowings - INR – – – – 300.00 6.41 300.00 –
(iii) Outstanding commodity price hedge instruments:
(A) Commodity forward contract:

As at 31-3-2024 As at 31-3-2023
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) 919.23 711972.13 919.23 – 538.65 713489.38 538.65 –
Aluminium (Tn) [1] 939.98 191859.90 930.05 9.93 790.08 281402.89 795.68 (5.60)
Iron Ore (Tn) 14.29 7309.80 6.95 7.34 22.84 7465.00 8.25 14.59
Coking Coal (Tn) – – – – 7.08 23586.00 7.08 –
Lead (Tn) 63.70 174699.52 63.70 – 7.55 171565.00 7.55 –
Nickel (Tn) 130.21 1778778.54 130.21 – 39.76 1893321.70 39.76 –
[1] Negative nominal amount represents sell position (net).

628 Integrated Annual Report 2023-24

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

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [59] (contd.)
(B) Commodity option contract:
As at 31-3-2024 As at 31-3-2023
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 (Tn) 112.48 [1]
112.48 – 283.04 [1]
283.04 –
Copper (Tn) 301.25 [1]
301.25 – 123.01 [1]
123.01 –
[1] The options contracts include a combination of calls and puts with different maturities and strike prices.

(l) Carrying amounts of hedge instruments for which hedge accounting is followed:
(A) Cash flow hedge:
v crore
As at 31-3-2024 As at 31-3-2023
Commodity Commodity
Particulars Currency Interest rate Currency Interest rate
price price
exposure exposure exposure exposure
exposure exposure
(i) Forward contracts
(a) Current:
Asset - Other financial assets 323.57 – 64.14 443.65 – 62.97
Liability - Other financial liabilities 278.93 – 36.86 333.49 – 15.40
(b) Non-current:
Asset - Other financial assets 750.61 6.47 – 298.87 1.29 –
Liability - Other financial liabilities 13.90 – – 201.61 – –
(ii) Option contracts
(a) Current:
Asset - Other financial assets 40.10 – 13.60 42.53 – 25.05
Liability - Other financial liabilities 1.95 – – 10.11 – 15.74
(b) Non-current:
Asset - Other financial assets 2.67 – – 27.67 – –
Liability - Other financial liabilities – – – 4.85 – –
(B) Fair value hedge:
v crore
As at 31-3-2024 As at 31-3-2023
Particulars Currency Interest rate Currency Interest rate
exposure exposure exposure exposure
Forward contracts
(a) Current:
Asset - Other financial assets 1.90 – 8.16 0.77
Liability - Other financial liabilities 4.28 – 1.67 –
(C) Net investment hedge:
v crore
As at 31-3-2024 As at 31-3-2023
Particulars Currency Currency
exposure exposure
Forward contracts
(a) Current:
Asset - Other financial assets 0.01 1.29
Liability - Other financial liabilities 0.38 1.87
(m) Breakup of cash flow hedging reserve and cost of hedging reserve:
v crore
As at 31-3-2024 As at 31-3-2023
Cash flow Cost of Cash flow Cost of
Particulars
hedging hedging hedging hedging
reserve reserve reserve reserve
Balance towards continuing hedges 197.17 (4.67) (0.73) (4.77)
Balance for which hedge accounting discontinued 81.84 – 147.26 –
Total 279.01 (4.67) 146.53 (4.77)

629
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [59] (contd.)
(n) Reclassification of hedging reserve and cost of hedging reserve to Profit or Loss:
v crore
Particulars 2023-24 2022-23
(A) Future cash flows are no longer expected to occur:
(i) Sales, administration and other expenses 0.64 3.89
(B) Hedged expected future cash flows affecting Profit or loss:
(i) Progress billing 5.78 (207.79)
(ii) Revenue from operations 50.12 63.27
(iii) Manufacturing, construction and operating expenses (60.09) 195.94
(iv) Finance costs – (185.03)
(v) Sales, administration and other expenses 118.16 146.72
(o) Movement of cash flow hedging reserve and cost of hedging reserve:
v crore
Cash flow hedging reserve 2023-24 2022-23
Opening balance 146.53 723.25
Changes in the spot element of the forward contracts which is designated as hedging instruments
for time period related hedges 21.09 142.46
Changes in fair value of forward contracts designated as hedging instruments 344.80 (909.65)
Changes in intrinsic value of option contracts 13.51 (26.13)
Changes in fair value of swaps (6.21) 82.94
Amount reclassified to Profit or Loss (112.04) (410.63)
Amount included in non-financial asset/liability (1.58) 14.56
Amount included in progress billing in Balance Sheet (5.78) 207.79
Translation adjustment 0.05 (0.01)
Taxes related to above (121.36) 321.95
Closing balance 279.01 146.53

v crore
Cost of hedging reserve 2023-24 2022-23
Opening balance (4.77) (4.72)
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 (3.08) (185.91)
Amount reclassified to Profit or Loss 3.21 185.84
Taxes related to above (0.03) 0.02
Closing balance (4.67) (4.77)
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
31-3-2024 31-3-2023
Current:
Investments 25.01 509.34
Inventories and trade receivables 9743.23 10467.21
Cash and cash equivalents 63.08 4423.91
Loans 30881.61 38288.80
Other assets 1510.36 680.45
Total inventories and current financial assets hypothecated as collateral 42223.29 54369.71
Non-current:
Investments 1147.50 1008.17
Loans 42268.67 34390.91
Total non-current financial assets hypothecated as collateral 43416.17 35399.08

630 Integrated Annual Report 2023-24

 Corporate Management Integrated Statutory Financial
Overview Discussion and Analysis Report Reports 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: ¢ 966.49 crore (previous year: ¢ 1019.45 crore). Out of
above, ¢ 895.71 crore (previous year: ¢ 945.83 crore) is on the net investment in finance lease and ¢ 70.78 crore (previous
year: ¢ 73.62 crore) is income relating to variable lease payments not included in the measurement of the net investment in
finance leases.

C. Sub-lease income recognised on finance leases: ¢ Nil (previous year: ¢ 0.02 crore).

D. The gross investment in these leases and the present value of minimum lease payments receivable are as under:
v crore
Present value of minimum
Minimum lease payments
Sr. lease payments
Particulars
No. As at As at As at As at
31-3-2024 31-3-2023 31-3-2024 31-3-2023
1 Receivable not later than 1 year 1291.51 1518.72 542.84 688.38
2 Receivable later than 1 year and not later than 2 years 1017.80 1291.51 244.98 477.36
3 Receivable later than 2 years and not later than 3 years 1008.68 1017.80 264.14 244.97
4 Receivable later than 3 years and not later than 4 years 1002.33 1008.68 288.43 264.14
5 Receivable later than 4 years and not later than 5 years 977.77 1002.33 296.39 288.43
6 Receivable later than 5 years 9470.75 10438.59 4973.20 5269.57
7 Unguaranteed residual value 990.36 990.36 990.36 990.36
8 Gross investment in leases (1+2+3+4+5+6+7) 15759.20 17267.99 7600.34 8223.21
9 Less: Unearned finance income 8158.86 9044.78
10 Present value of minimum lease payments receivable (8-9) 7600.34 8223.21
11 Less: Impairment [in Developmental Projects Segment]
Expected credit loss on lease receivables 1988.64 1988.64 1988.64 1988.64
Net lease receivables (10-11) 5611.70 6234.57 5611.70 6234.57
E. Reconciliation of carrying amount of net investment in finance lease receivables:

v crore
Sr. No. Particulars 2023-24 2022-23
1 Opening balance 6234.57 6558.43
2 Finance income/sub-lease income recognised during the year 895.71 945.85
3 Addition/(Deletion) to finance lease during the year 0.17 (28.40)
4 Lease rental received during the year (1518.75) (1241.73)
5 (Impairment)/(Expected credit loss)/reversal during the year – 0.42
6 Closing balance (1+2+3+4+5) 5611.70 6234.57
(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: ¢ 174.55 crore (previous year: ¢ 162.19 crore).

C. Sub-lease income recognised on operating leases: ¢ 1.90 crore (previous year: ¢ 5.03 crore).

631
 Notes forming part of the
Consolidated Financial 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
31-3-2024 31-3-2023
1 Receivable not later than 1 year 95.13 94.31
2 Receivable later than 1 year and not later than 2 years 79.58 60.73
3 Receivable later than 2 years and not later than 3 years 71.07 44.01
4 Receivable later than 3 years and not later than 4 years 64.67 45.31
5 Receivable later than 4 years and not later than 5 years 58.12 45.00
6 Receivable later than 5 years 384.95 423.70
Total (1+2+3+4+5+6) 753.52 713.06
(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 ¢ 1.90 crore (previous
year: ¢ 5.05 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
2023-24 2022-23 2023-24 2022-23 As at 31-3-2024 As at 31-3-2023
Land 23.68 21.51 13.72 106.16 426.33 435.39
Buildings 464.36 420.65 776.29 529.52 1846.44 1671.96
Plant & equipment 18.73 27.03 1.06 22.13 10.71 28.37
Furniture & fixtures 0.83 1.67 – – – 1.81
Vehicles 0.14 0.07 6.08 – 5.93 –
Computers 0.34 0.59 – – – 0.34
Total 508.08 471.52 797.15 657.81 2289.41 2137.87
(iv) Interest expense on lease liabilities amounts to ¢ 167.21 crore (previous year: ¢ 158.10 crore)

(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 - ¢ 5634.83 crore (previous year: ¢ 3858.54 crore);

B. Low value leases - ¢ 75.90 crore (previous year: ¢ 79.90 crore)

(vi) Total cash outflow for leases amounts to ¢ 5496.32 crore (previous year: ¢ 4454.14 crore) 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. The aggregate future cash flows to which the Group is exposed in respect of these
contracts are:

Fixed payments of ¢ 16.20 crore (previous year: ¢ 8.85 crore) per year, for a lease term of 5 years (previous year: 5.25 years)

632 Integrated Annual Report 2023-24

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

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [62]
Additional information pursuant to Schedule III to the Companies Act, 2013 for the year ended 31-3-2024:

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 74.59% 64416.04 71.25% 9304.33 (19.62%) (46.25) 69.64% 9258.08
Indian Subsidiaries
Infrastructure:
Hi-Tech Rock Products and
Aggregates Limited 0.03% 23.77 0.00% 0.34 – – 0.00% 0.34
L&T Geostructure Private Limited 0.51% 443.61 0.54% 70.18 0.14% 0.34 0.53% 70.52
L&T Infrastructure Engineering
Limited – – (0.04%) (5.16) – – (0.04%) (5.16)
Energy:
L&T Energy Hydrocarbon
Engineering Limited 0.12% 106.27 0.21% 27.00 (0.14%) (0.33) 0.20% 26.67
L&T Offshore Private Limited [a] 0.00% 0.00 (0.00%) (0.03) – – (0.00%) (0.03)
L&T Energy Green Tech Limited [b] 0.06% 52.44 0.00% 0.22 – – 0.00% 0.22
Hi-Tech Manufacturing:
L&T Electrolysers Limited 0.02% 21.14 (0.23%) (29.92) 0.00% 0.01 (0.22%) (29.91)
IT & Technology Services:
LTIMindtree Limited 22.35% 19298.47 34.35% 4485.86 205.75% 484.95 37.39% 4970.81
L&T Technology Services Limited 5.85% 5051.10 9.64% 1258.50 17.65% 41.60 9.78% 1300.10
L&T Thales Technology Services
Private Limited 0.09% 78.10 0.08% 9.95 0.11% 0.27 0.08% 10.22
L&T Network Services Private
Limited 0.01% 9.09 0.00% 0.23 – – 0.00% 0.23
L&T Semiconductor Technologies
Limited (0.02%) (13.77) (0.18%) (23.32) – – (0.18%) (23.32)
Financial Services:
L&T Finance Limited [c] 26.86% 23194.96 17.51% 2286.23 2.64% 6.22 17.24% 2292.45
L&T Infra Investment Partners
Advisory Private Limited 0.03% 28.82 0.03% 3.67 (0.00%) (0.01) 0.03% 3.66
L&T Infra Investment Partners
Trustee Private Limited 0.00% 0.10 0.00% 0.00 – – 0.00% 0.00
L&T Financial Consultants Limited 0.44% 379.85 0.19% 25.28 0.01% 0.02 0.19% 25.30
Mudit Cement Private Limited – – (0.00%) (0.27) – – (0.00%) (0.27)
L&T Infra Investment Partners
(The Fund) 0.23% 198.62 (0.06%) (7.42) – – (0.06%) (7.42)
Developmental Projects:
L&T Metro Rail (Hyderabad)
Limited 1.66% 1433.64 (4.25%) (555.04) 0.02% 0.05 (4.17%) (554.99)
L&T Himachal Hydropower Limited (0.00%) (1.78) (0.00%) (0.24) – – (0.00%) (0.24)
L&T Power Development Limited 3.11% 2689.98 (0.02%) (2.39) – – (0.02%) (2.39)
Nabha Power Limited 5.54% 4784.22 3.06% 399.53 0.25% 0.59 3.01% 400.12
Realty:
Chennai Vision Developers Private
Limited (0.00%) (0.04) (0.00%) (0.01) – – (0.00%) (0.01)
Elevated Avenue Realty LLP [d] 0.43% 372.94 (1.69%) (220.05) – – (1.66%) (220.05)
L&T Parel Project Private Limited 0.34% 297.53 0.27% 34.64 – – 0.26% 34.64
L&T Realty Developers Limited 1.26% 1090.49 1.83% 238.68 0.02% 0.05 1.80% 238.73

633
 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
L&T Seawoods Limited 3.01% 2600.19 2.53% 330.70 0.03% 0.07 2.49% 330.77
L&T Westend Project LLP – – – – – – – –
Prime Techpark (Chennai) Private
Limited 0.00% 0.02 (0.00%) (0.03) – – (0.00%) (0.03)
Avenue Techpark (Bangalore)
Private Limited 0.00% 0.03 (0.00%) (0.02) – – (0.00%) (0.02)
Bangalore Spectrum Techpark
Private Limited 0.00% 0.05 (0.00%) (0.00) – – (0.00%) (0.00)
Bangalore Galaxy Techpark Private
Limited 0.00% 0.05 (0.00%) (0.00) – – (0.00%) (0.00)
Chennai Nova Techpark Private
Limited 0.00% 0.04 (0.00%) (0.01) – – (0.00%) (0.01)
Business Park (Powai) Private
Limited 0.00% 1.89 (0.00%) (0.16) – – (0.00%) (0.16)
Millennium Techpark (Chennai)
Private Limited 0.00% 0.04 (0.00%) (0.01) – – (0.00%) (0.01)
Bangalore Fortune Techpark
Private Limited 0.00% 0.03 (0.00%) (0.02) – – (0.00%) (0.02)
Corporate Park (Powai) Private
Limited 0.00% 2.04 (0.00%) (0.01) – – (0.00%) (0.01)
LH Residential Housing Private
Limited [e] (0.01%) (10.31) (0.08%) (10.41) – – (0.08%) (10.41)
LH Uttarayan Premium Realty
Private Limited 0.00% 0.05 (0.00%) (0.00) – – (0.00%) (0.00)
Valves, Construction Equipment
and Others:
L&T Construction Equipment
Limited 0.28% 244.09 0.27% 35.09 (0.85%) (2.01) 0.25% 33.08
L&T Valves Limited 0.62% 534.67 0.40% 52.79 (0.07%) (0.16) 0.40% 52.63
Others:
Bhilai Power Supply Company
Limited 0.00% 0.05 (0.00%) (0.00) – – (0.00%) (0.00)
L&T Aviation Services Private
Limited 0.04% 38.06 0.01% 1.64 – – 0.01% 1.64
L&T Capital Company Limited 0.00% 4.22 0.01% 0.88 – – 0.01% 0.88
Foreign Subsidiaries
Infrastructure:
Larsen & Toubro (Oman) LLC 0.48% 414.99 0.33% 43.49 6.80% 16.02 0.45% 59.51
Larsen & Toubro Qatar LLC (0.00%) (0.87) (0.00%) (0.05) (0.00%) (0.01) (0.00%) (0.06)
Larsen & Toubro Saudi Arabia LLC 0.84% 728.46 1.50% 195.97 (10.31%) (24.31) 1.29% 171.66
Larsen & Toubro T&D SA
(Proprietary) Limited 0.00% 3.50 0.00% 0.26 (0.08%) (0.19) 0.00% 0.07
Larsen & Toubro (East Asia) Sdn.
Bhd. 0.02% 15.84 0.08% 11.10 (0.18%) (0.43) 0.08% 10.67
PT Larsen and Toubro 0.01% 11.38 (0.03%) (4.52) (0.24%) (0.56) (0.04%) (5.08)
Larsen & Toubro International FZE 1.21% 1042.68 5.59% 729.78 2.33% 5.49 5.53% 735.27

634 Integrated Annual Report 2023-24

 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
Energy:
Larsen & Toubro Heavy
Engineering LLC (0.18%) (159.18) (0.13%) (16.33) (0.95%) (2.24) (0.14%) (18.57)
L&T Modular Fabrication Yard LLC 0.32% 280.04 0.32% 42.02 1.40% 3.30 0.34% 45.32
Larsen Toubro Arabia LLC (0.08%) (69.36) 0.59% 76.59 (0.53%) (1.24) 0.57% 75.35
L&T Hydrocarbon Saudi Company (0.62%) (534.94) 0.65% 84.80 (17.29%) (40.74) 0.33% 44.06
Larsen & Toubro Kuwait
Construction General Contracting
Co. W.L.L. 0.01% 10.13 0.00% 0.05 0.05% 0.12 0.00% 0.17
Larsen & Toubro Electromech LLC 0.03% 23.99 0.80% 105.12 0.12% 0.29 0.79% 105.41
IT & Technology Services:
LTIMindtree Information
Technology Services (Shanghai)
Co., Ltd [f] 0.00% 3.42 0.02% 3.10 (0.01%) (0.03) 0.02% 3.07
LTIMindtree Financial Services
Technologies Inc. 0.64% 550.00 0.99% 129.77 1.63% 3.85 1.01% 133.62
LTIMindtree Canada Limited 0.11% 98.36 0.21% 27.16 0.27% 0.64 0.21% 27.80
LTIMindtree LLC 0.01% 6.45 (0.00%) (0.33) 0.04% 0.10 (0.00%) (0.23)
LTIMindtree South Africa (Pty)
Limited 0.03% 29.31 0.06% 8.39 (0.55%) (1.29) 0.05% 7.10
LTIMindtree GmbH 0.47% 403.79 0.00% 0.44 (0.04%) (0.09) 0.00% 0.35
LTIMindtree Spain S.L. [g] 0.00% 2.12 0.01% 0.86 0.00% 0.01 0.01% 0.87
LTIMindtree Norge AS 0.02% 14.17 0.02% 2.45 (0.14%) (0.33) 0.02% 2.12
LTIMindtree S.De.RL.De.C.V. 0.02% 13.59 0.03% 3.94 0.40% 0.94 0.04% 4.88
LTIMindtree S.A. [h] 0.03% 29.43 0.08% 10.26 0.03% 0.08 0.08% 10.34
Syncordis France SARL (0.01%) (8.01) (0.03%) (4.11) (0.01%) (0.03) (0.03%) (4.14)
Syncordis Limited (0.08%) (70.13) (0.15%) (19.76) (0.76%) (1.80) (0.16%) (21.56)
LTIMindtree PSF S.A. [i] 0.04% 35.57 (0.05%) (6.80) 0.08% 0.20 (0.05%) (6.60)
Nielsen+Partner
Unternehmensberater GmbH 0.01% 5.25 (0.02%) (2.25) (0.05%) (0.11) (0.02%) (2.36)
LTIMindtree Swizerland AG [j] (0.05%) (44.38) (0.35%) (45.58) 0.31% 0.72 (0.34%) (44.86)
Nielsen+Partner Pte Ltd (0.05%) (40.27) (0.18%) (23.76) (0.02%) (0.05) (0.18%) (23.81)
LTIMindtree (Thailand) Limited [k] (0.00%) (3.64) (0.01%) (1.19) 0.10% 0.24 (0.01%) (0.95)
Nielsen&Partner Pty Ltd (0.01%) (10.94) (0.02%) (3.14) 0.06% 0.15 (0.02%) (2.99)
LTIMindtree USA Inc [l] (0.00%) (0.52) (0.00%) (0.01) (0.02%) (0.04) (0.00%) (0.05)
L&T Technology Services LLC 0.46% 397.64 0.26% 33.66 0.53% 1.26 0.26% 34.92
L&T Technology Services Pte. Ltd. 0.00% 0.33 (0.00%) (0.11) – – (0.00%) (0.11)
Graphene Solutions SDN. BHD. 0.00% 0.07 (0.00%) (0.04) (0.00%) (0.01) (0.00%) (0.05)
Graphene Solutions Taiwan
Limited 0.00% 0.05 (0.00%) (0.11) – – (0.00%) (0.11)
L&T Technology Services
(Shanghai) Co. Ltd. 0.01% 4.49 0.00% 0.42 (0.06%) (0.13) 0.00% 0.29
LTIMindtree UK Limited 0.06% 52.03 0.15% 19.98 0.52% 1.22 0.16% 21.20
LTIMindtree Middle East FZ-LLC 0.04% 33.60 0.00% 0.56 0.21% 0.50 0.01% 1.06
L&T Technology Services (Canada)
Ltd (0.00%) (2.28) (0.01%) (1.42) (0.00%) (0.01) (0.01%) (1.43)
Cuelogic Technologies Inc. – – (0.00%) (0.04) – – (0.00%) (0.04)

635
 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
L&T Technology Services
Poland spółka z ograniczoną
odpowiedzialnością – – – – – – – –
Valves, Construction Equipment
and Others:
L&T Valves Arabia Manufacturing
LLC 0.00% 2.80 (0.05%) (6.29) 0.04% 0.09 (0.05%) (6.20)
L&T Valves USA LLC 0.01% 7.98 0.00% 0.29 0.05% 0.12 0.00% 0.41
Others:
L&T Global Holdings Limited 0.77% 662.12 1.40% 182.22 4.16% 9.80 1.44% 192.02
Total Subsidiaries 66893.82 9983.73 503.16 10486.89
Non-controlling Interest in all
subsidiaries (18.75%) (16190.42) (19.05%) (2487.99) (72.85%) (171.71) (20.01%) (2659.70)
Indian Associates
Gujarat Leather Industries Limited – – – – – – – –
Magtorq Private Limited 0.01% 7.40 0.01% 1.01 – – 0.01% 1.01
Magtorq Engineering Solutions
Private Limited 0.00% 0.37 (0.00%) (0.10) – – (0.00%) (0.10)
Foreign Associates
Larsen & Toubro Qatar & HBK
Contracting Co. WLL (0.00%) (4.30) – – (0.09%) (0.22) (0.00%) (0.22)
L&T Camp Facilities LLC (0.00%) (0.59) (0.00%) (0.01) (0.00%) (0.01) (0.00%) (0.02)
Total Associates 2.88 0.90 (0.23) 0.67
Indian Joint Ventures
Energy:
L&T - MHI Power Boilers Private
Limited 0.90% 775.43 (0.12%) (15.77) 0.99% 2.34 (0.10%) (13.43)
L&T - MHI Power Turbine
Generators Private Limited 0.19% 163.19 (0.08%) (10.86) 0.25% 0.60 (0.08%) (10.26)
L&T Howden Private Limited 0.10% 82.35 0.10% 13.66 (0.00%) (0.00) 0.10% 13.66
L&T-Sargent & Lundy Limited 0.04% 37.25 0.07% 9.11 0.03% 0.07 0.07% 9.18
L&T Offshore Private Limited [a] – – (0.00%) (0.27) – – (0.00%) (0.27)
L&T Sapura Shipping Private
Limited 0.12% 103.13 (0.19%) (24.43) 0.72% 1.70 (0.17%) (22.73)
Hi-Tech Manufacturing:
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] (2.26%) (1954.73) – – – – – –
L&T MBDA Missile Systems
Limited 0.11% 93.94 0.02% 3.02 – – 0.02% 3.02
Developmental Projects:
L&T Infrastructure Development
Projects Limited (Consolidated)
[Equity accounting discontinued
post classification as Held for Sale,
Note 45(a)] 0.81% 701.67 – – – – – –
GH4India Private Limited (0.00%) (0.37) (0.01%) (1.37) – – (0.01%) (1.37)

636 Integrated Annual Report 2023-24

 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
Others:
Raykal Aluminium Company
Private Limited (0.00%) (0.65) (0.00%) (0.01) – – (0.00%) (0.01)
Foreign Joint Ventures
Energy:
Indiran Engineering Projects &
Systems Kish PJSC 0.00% 0.05 0.00% 0.12 0.01% 0.02 0.00% 0.14
Hydrocarbon Arabia Limited
Company (0.00%) (0.04) (0.01%) (0.70) – – (0.01%) (0.70)
Infrastructure:
L&T Infrastructure Engineering
Limited and LEA Associates South
Asia Private Limited JV LLP – – 0.03% 3.98 – – 0.03% 3.98
Total Joint Ventures 1.22 (23.52) 4.73 (18.79)
CFS adjustment and elimination (33.29%) (28764.30) (28.46%) (3718.34) (22.89%) (54.00) (28.37%) (3772.34)
Total 86359.24 13059.11 235.70 13294.81
[a]
formerly known as L&T Sapura Offshore Private Limited
[b]
formerly known as L&T Power Limited
[c]
formerly known as L&T Finance Holdings Limited
[d]
formerly known as L&T Avenue Realty LLP
[e]
formerly known as LH Residential Housing Limited
[f]
formerly known as L&T Information Technology Services (Shanghai) Co., Ltd
[g]
formerly known as L&T Information Technology Spain SL
[h]
formerly known as Syncordis S.A.
[i]
formerly known as Syncordis PSF S.A.
[j]
formerly known as Nielsen+Partner Unternehmensberater AG
[k]
formerly known as Nielsen & Partner Company Limited
[l]
formerly known as Lymbyc Solutions Inc.

NOTE [63]
a) Notes with respect to remarks in CARO Report:
(i) During the year, the Parent Company renewed both shareholder and bridge loans of ¢ 303.50 crore to L&T Sapura Shipping Private
Limited (LTSSPL), a subsidiary[1], due to delay in generation of sufficient cash from operations. However, LTSSPL subsequently fully
repaid the bridge loan of ¢ 126.56 crore with a delay.
(ii) In respect of L&T Seawoods Limited:
a) The payment of interest of ¢ 1.53 crore on the loan given by L&T Seawoods Limited, a subsidiary, to Elevated Avenue Realty
LLP, a subsidiary, has been paid with a delay. There was no overdue as at March 31, 2024.
b) Erstwhile L&T Innovation Campus (Chennai) Limited (merged with L&T Seawoods Limited), a subsidiary, has not repaid the
loan given by L&T Realty Developers Limited (LTRDL), a subsidiary, of ¢ 55.11 crore and interest thereon of ¢ 1.53 crore on its
due date due to delay in generation of internal accruals and it remained unpaid as on March 31, 2024. Further, during the
year, interest of ¢ 4.84 crore has been paid with a delay.
(iii) During the year, the LTRDL renewed the loans aggregating to ¢ 73.51 crore given to erstwhile L&T Innovation Campus (Chennai)
Limited (merged with L&T Seawoods Limited) of ¢ 55.11 crore and LH Residential Housing Limited, a subsidiary of ¢ 18.40 crore due
to insufficient funds.
(iv) L&T Special Steels and Heavy Forgings Private Limited (LTSSHF), a subsidiary[1], has not repaid the loan and net interest thereon
aggregating to ¢ 2210.03 crore to its promoters, viz Larsen & Toubro Limited of ¢ 2071.53 crore and Nuclear Power Corporation of
India Limited of ¢ 138.50 due to insufficient funds. LTSSHF is in discussion with its promoters for exploring options to restructure its
balance sheet.
[1] Subsidiary classification is in accordance with the Companies Act, 2013

637
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [63] (contd.)
b) Miscellaneous expenses under the heading Sales, administration and other expenses [Note 38] during the year include contribution paid
to a Trust: ¢ 200.00 crore (previous year: Nil).

c) Balance outstanding with struck off companies:

v crore
Relationship Balance Balance
Sr.
Name of struck off company Nature of transaction with the struck outstanding as at outstanding as at
No.
off company March 31, 2024 March 31, 2023
1 A K Infrasolutins Private Limited Accounts Payables NA 0.02 0.02
2 Aadhiraj Projects Private Limited Accounts Payables NA – [1] – [1]
3 Aahsin India Private Limited Accounts Payables NA 0.02 0.02
4 Aarib Constructions Private Limited Accounts Payables NA 0.02 0.02
5 Aayansh Securities Systems Private Accounts Payables NA 0.15 0.15
Limited
6 Abhiraksha Constructions Private Accounts Payables NA 0.03 0.03
Limited
7 Ace Offshore And Engineering Private Accounts Payables NA – [1]
– [1]

Limited
8 Acrp Infracon Private Limited Accounts Payables NA – [1]
– [1]
9 Active Brain Infra Engg Private Limited Accounts Payables NA – [1]
– [1]
10 Adm Infracon India Private Limited Accounts Payables NA – [1]
– [1]
11 Advance Mep Solutions Private Limited Accounts Payables NA – [1]
– [1]
12 Aeroglobal Infrastructure Engineers Accounts Payables NA – 0.03
Private Limited
13 Aghasthya Infratech Mangalore Private Accounts Payables NA – 0.04
Limited
14 Aircon System Engineers Private Accounts Payables NA – [1]
– [1]

Limited
15 Akashdeep Infratech Private Limited Accounts Payables NA 0.01 0.01
16 Akonn Infra Tech (India) Private Limited Accounts Payables NA 0.03 0.03
17 Alakshya Infracon Private Limited Accounts Payables NA – [1] – [1]
18 Alert Infraprojects Private Limited Accounts Payables NA – 0.01
19 Alias Management Marketing Private Accounts Payables NA – [1] – [1]
Limited
20 Alpana Buildtech Private Limited Accounts Payables NA – [1] – [1]
21 Alufascia Private Limited Accounts Payables NA – [1] – [1]
22 Amaravati Rcc Pipes India Private Accounts Payables NA 0.02 0.01
Limited
23 Amritlaxmi Properties Private Limited Accounts Payables NA 0.02 0.02
24 Angelina Infratech Private Limited Accounts Payables NA – [1] – [1]
25 Antilia Facility Management Private Accounts Payables NA 0.15 0.15
Limited
26 Arj Infra Private Limited Accounts Payables NA – [1]
– [1]

27 Artisans Design & Build PrivateLimited Accounts Payables NA – [1]

– [1]

28 Ashok Balyan Infra Project Private Accounts Payables NA – [1]

– [1]

Limited
29 AT & LS Private Limited. Accounts Payables NA 0.02 0.02
30 Atlantic Works Private Limited Accounts Payables NA – [1] – [1]
31 Aura Metlab Private Limited Accounts Payables NA – [1] – [1]
32 Auskini Infraqp Private Limited Accounts Payables NA 0.12 0.12
33 Avn Green Technologies Private Limited Accounts Payables NA – [1] – [1]
34 Ayurda Millennium Ventures Private Accounts Payables NA 0.04 0.04
Limited

638 Integrated Annual Report 2023-24

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

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [63]
c) Balance outstanding with struck off companies: (contd.)

v crore
Relationship Balance Balance
Sr.
Name of struck off company Nature of transaction with the struck outstanding as at outstanding as at
No.
off company March 31, 2024 March 31, 2023
35 B K Equipments Private Limited Accounts Payables NA – [1] – [1]
36 Baba Balaknathji Entertainment Private Accounts Payables NA – – [1]
Limited
37 Bennett Coleman And Company Accounts Payables NA 0.02 –
Limited
38 Bindra Evolutiion Enterprises Private Accounts Payables NA – [1]
– [1]

Limited
39 Blueman Construction Projects Private Accounts Payables NA – [1]
– [1]

Limited
40 Brahmaputra Engitech Private Limited Accounts Payables NA 0.01 0.01
41 Bramhands Infrastructure Private Accounts Payables NA 0.01 0.01
Limited
42 Brightom Hospitality & Events Private Accounts Payables NA – [1]
– [1]

Limited
43 Brjs Contractors Private Limited Accounts Payables NA 0.24 0.27
44 Bulsar Construction And Consulting Accounts Payables NA 0.07 0.02
Opc Private Limited
45 Calorifique Renewable Energie India Accounts Payables NA – [1]
– [1]

Private Limited
46 Care Infra Engineers Limited Accounts Payables NA – [1]
– [1]

47 Chandrawati Power Construction Accounts Payables NA – [1]

– [1]

Private Limited
48 Cheyuta Infrasturcture Private Limited Accounts Payables NA 0.03 0.03
49 Cmi Limited Accounts Payables NA – [1] 0.12
50 Creo Projects Private Limited Accounts Payables NA – [1] – [1]
51 Csk Engineering And Construction Accounts Payables NA 0.02 0.02
Private Limited
52 Csp Constructions Private Limited Accounts Payables NA – [1] – [1]
53 D.B.Constructions Private Limited Accounts Payables NA 0.28 0.28
54 Ddsabi Global Services Private Limited Accounts Payables NA – [1] – [1]
55 Deepak Singh Chouhan Construction Accounts Payables NA 0.01 0.01
Private Limited
56 Devine Devbuild Private Limited Accounts Payables NA – [1] – [1]
57 Dhanamjay Infra Private Limited Accounts Payables NA – [1] – [1]
58 Dhiren Construction India Private Accounts Payables NA 0.02 0.02
Limited
59 Dimensions India Private Limited Accounts Payables NA – [1] – [1]
60 Dipl Construction Private Limited Accounts Payables NA 0.10 0.10
61 Divaah Adya Facility Solutions Private Accounts Payables NA – [1] – [1]
Limited
62 Dne Infra Private Limited Accounts Payables NA – [1] – [1]
63 Dv Procon Private Limited Accounts Payables NA – [1] – [1]
64 Dwarkesh Buildcom Private Limited Accounts Payables NA 0.06 0.06
65 Dynastyraj Infrastructure Private Accounts Payables NA – [1] – [1]
Limited
66 Edgecon Engineering Projects Private Accounts Payables NA 0.13 0.13
Limited

639
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [63]
c) Balance outstanding with struck off companies: (contd.)
v crore
Relationship Balance Balance
Sr.
Name of struck off company Nature of transaction with the struck outstanding as at outstanding as at
No.
off company March 31, 2024 March 31, 2023
67 Elena Management & Services Private Accounts Payables NA – [1] – [1]
Limited
68 Energie Shine Engineering Solution Accounts Payables NA – [1]
– [1]

Private Limited
69 Er Infra Innovative Private Limited Accounts Payables NA 0.01 0.01
70 Escalador Geo-Systems And Accounts Payables NA 0.01 0.01
Engineering Survey Private Limited
71 Essa Infrabuild Private Limited Accounts Payables NA – [1]
– [1]

72 Expeditive Infotech Private Limited Accounts Payables NA – [1]

– [1]

73 Fairmans Construction Private Limited Accounts Payables NA – [1]

– [1]

74 Faithful Creator Infra Private Limited Accounts Payables NA – [1]

– [1]

75 Farhad Interior And Exterior Private Accounts Payables NA – [1]

– [1]

Limited
76 Filtm Online Services Private Limited Accounts Payables NA – [1] – [1]
77 Friends Civil Works Private Limited Accounts Payables NA – [1] – [1]
78 Fundamental Infratech Private Limited Accounts Payables NA 0.01 0.01
79 G-5 Construction Private Limited Accounts Payables NA 0.02 0.02
80 Genesis Infosolutions Private Limited Accounts Payables NA 0.03 0.03
81 Global Engineering & Marketing Accounts Payables NA 0.05 0.05
Services Private Limited
82 Gnxt Energy Private Limited Accounts Payables NA – [1]
– [1]

83 Gogreen Facility Management Private Accounts Payables NA – [1]

– [1]

Limited
84 Goldentree Facility Management Accounts Payables NA – –
Private Limited
85 Gulba Topographical Surveyors Private Accounts Payables NA – [1]
– [1]

Limited
86 H M Brothers Limited Accounts Payables NA 0.03 0.03
87 Ham Constructions & Engineering Accounts Payables NA – [1] – [1]
Works Private Limited
88 Harhar Mahadev Infra Developer Accounts Payables NA – [1]
– [1]

Private Limited
89 Honeyed Engineering Private Limited Accounts Payables NA 0.04 0.04
OPC
90 Hsb Projects Private Limited Accounts Payables NA – [1] – [1]
91 Hudor Projects India Private Limited Accounts Payables NA 0.03 0.03
92 Ifensys Software Solutions Private Accounts Payables NA – [1] – [1]
Limited
93 Imperium Infratech Private Limited Accounts Payables NA – [1]
– [1]

94 Indco Engineers & Contractors Private Accounts Payables NA – [1]

– [1]

Limited
95 Infisoft India Technology Private Accounts Payables NA – [1]
– [1]

Limited
96 Infra American India Private Limited Accounts Payables NA – [1]
– [1]

97 Inl-Intech India Automation Private Accounts Payables NA – [1]

– [1]

Limited
98 Innovations Events And Entertainment Accounts Payables NA – [1]
– [1]

Private Limited

640 Integrated Annual Report 2023-24

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

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [63]
c) Balance outstanding with struck off companies: (contd.)
v crore
Relationship Balance Balance
Sr.
Name of struck off company Nature of transaction with the struck outstanding as at outstanding as at
No.
off company March 31, 2024 March 31, 2023
99 Inox India Private Limited Accounts Payables NA – [1] – [1]
100 Isha Heights And Silos Private Limited Accounts Payables NA – [1] – [1]
101 Janatha Readymix Concrete India Accounts Payables NA – [1]
– [1]
Private Limited
102 Jatra Services India Private Limited Accounts Payables NA – [1] – [1]
103 Jbs Estcon Private Limited Accounts Payables NA 0.13 0.13
104 Jodhpur Infra-Con Private Limited Accounts Payables NA – [1] – [1]
105 Jps Engineering Private Limited Accounts Payables NA 0.06 0.06
106 Jrc Biuildcon Private Limited Accounts Payables NA – [1] – [1]
107 Kazmi And Sons Builders Private Accounts Payables NA 0.07 0.07
Limited
108 Kegan Constructions Private Limited Accounts Payables NA 0.03 0.03
109 Kishley Constructions Private Limited Accounts Payables NA – [1] – [1]
110 Kissan Land Promoters Private Limited Accounts Payables NA – [1] – [1]
111 Kiwi Projects Private Limited Accounts Payables NA 0.03 0.03
112 Knight Engineers Contractors & Accounts Payables NA 0.02 0.02
Consultants Private Limited
113 Kolkata Industrial Security Service Accounts Payables NA – [1]
– [1]

Private Limited
114 Ktek Level Engg Private Limited Accounts Payables NA – [1]
– [1]

115 Lakshman Singh Construction Private Accounts Payables NA – [1]

– [1]

Limited
116 Lanster Developer Private Limited Accounts Payables NA – [1]
– [1]

117 Laxmi Infra Eng Private Limited Accounts Payables NA – [1]

– [1]

118 L-Upd-Saubha-Auraiya Dehat And Accounts Payables NA – [1]

– [1]

Kanpurnagar Dvvnl
119 Ganga Mechanical Works Private Accounts Payables NA – [1]
– [1]

Limited
120 Mangalam Consultancy Private Limited Accounts Payables NA – [1]
– [1]

121 Manha Earthcon Private Limited Accounts Payables NA – [1]

– [1]

122 Manish Duggal Telecom Private Limited Accounts Payables NA – [1]

–
123 Mars Dsp Waves Private Limited Accounts Payables NA – [1]
– [1]

124 Marvel Technicals Sales And Service Accounts Payables NA – [1]

– [1]

Private Limited
125 Mass Ventures Limited Accounts Payables NA – [1]
– [1]

126 Maurya Devbuild Private Limited Accounts Payables NA – [1]

– [1]

127 Maxtel Constructions Private Limited Accounts Payables NA – [1]

– [1]

128 Maxx Ultra Conchem Opc Private Accounts Payables NA – [1]

– [1]

Limited
129 Mecavo (R&D) Private Limited Accounts Payables NA – -0.04
130 Mecvil Infracon Private Limited Accounts Payables NA – [1] – [1]
131 Mei Engineers Private Limited Accounts Payables NA – [1] – [1]
132 MSP Develco Private Limited Accounts Payables NA 0.01 0.01
133 Muskan Techno Engineering Accounts Payables NA 0.07 0.07
Construction Private Limited
134 Nap Energy And Infratech Private Accounts Payables NA – [1]
–
Limited

641
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [63]
c) Balance outstanding with struck off companies: (contd.)
v crore
Relationship Balance Balance
Sr.
Name of struck off company Nature of transaction with the struck outstanding as at outstanding as at
No.
off company March 31, 2024 March 31, 2023
135 Narshimha Buildtech Private Limited Accounts Payables NA 0.03 0.03
136 Nevil Consultancy Services Accounts Payables NA – [1] – [1]
PrivateLimited
137 New Proponent Security Services Accounts Payables NA – [1]
– [1]

Private Limited
138 Nexgen Transcom Private Limited Accounts Payables NA 0.04 0.04
139 Nirmal Aircon Private Limited Accounts Payables NA 0.03 0.04
140 Nirmal Sai Construction Private Limited Accounts Payables NA – [1] – [1]
141 Normet India Private Limited Accounts Payables NA 7.02 7.47
142 Nstech International Private Limited Accounts Payables NA – – [1]
143 Om Pranav Infrastructure Engineering Accounts Payables NA 0.02 0.01
Private Limited
144 Om Sai Project Developers And Accounts Payables NA 0.05 0.05
Engineers Private Limited
145 Onella Visions Private Limited Accounts Payables NA 0.01 0.01
146 Opti Tech Infra Projects India Opc Accounts Payables NA – [1] – [1]
Private Limited
147 Orsang Infotech Private Limited Accounts Payables NA – [1] – [1]
148 PAF Infrastructure Private Limited Accounts Payables NA 0.03 0.03
149 Paradisegarden Infraproject Private Accounts Payables NA – [1] – [1]
Limited
150 Paramshiv Infra Private Limited Accounts Payables NA – [1]
– [1]
151 Parim Infocomm Private Limited Accounts Payables NA – [1]
– [1]
152 Peass Infra Private Limited Accounts Payables NA – [1]
0.01
153 Perfect Office Systems Private Limited Accounts Payables NA – [1]
–
154 Petrichor Emerging Technologies India Accounts Payables NA – – [1]
Private Limited
155 Pinak Security & Management Private Accounts Payables NA – [1]
– [1]

Limited
156 Pioneer Tech Engineering Services Accounts Payables NA – [1]
– [1]

Private Limited
157 Posorbis Infrastucture Private Limited Accounts Payables NA 0.02 0.03
158 Priyanka Managment Solution (India) Accounts Payables NA 0.50 0.50
Private Limited
159 Probus Infratech Private Limited Accounts Payables NA – [1] – [1]
160 Purma Plast Private Limited Accounts Payables NA – [1] – [1]
161 R B C Bearings Private Limited Accounts Payables NA – [1] – [1]
162 R Square E Service Private Limited Accounts Payables NA – [1] – [1]
163 Raas Infratech Private Limited Accounts Payables NA – [1] – [1]
164 Ramakrishna Power Tech Private Accounts Payables NA 0.33 0.33
Limited
165 Rani Aishwarya Infracon Private Accounts Payables NA 0.01 0.01
Limited
166 Rattiputra Construction Private Limited Accounts Payables NA 0.01 0.01
167 Real Construction Private Limited Accounts Payables NA – [1] – [1]
168 Real Tech Engineering And Accounts Payables NA – [1] – [1]
Construction Private Limited

642 Integrated Annual Report 2023-24

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

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [63]
c) Balance outstanding with struck off companies: (contd.)
v crore
Relationship Balance Balance
Sr.
Name of struck off company Nature of transaction with the struck outstanding as at outstanding as at
No.
off company March 31, 2024 March 31, 2023
169 Realsharp Infraatech Services Private Accounts Payables NA 0.01 0.01
Limited
170 RGK Infracon Private Limited Accounts Payables NA 0.18 0.18
171 Riccardo Readymixs And Infra Projects Accounts Payables NA – [1] – [1]
Private Limited
172 Rk Build Solutions Private Limited Accounts Payables NA – [1]
– [1]

173 RK Gautam Construction Private Accounts Payables NA – [1]

– [1]

Limited
174 Rockhard Infrastructure Private Limited Accounts Payables NA – [1]
– [1]

175 Roshan Tradevision Private Limited Accounts Payables NA – [1]

– [1]

176 Roy Management And Information Accounts Payables NA – [1]

– [1]

Technology Private Limited

177 Rpnr Concrete Solutions Private Accounts Payables NA – [1]
– [1]

Limited
178 S K Modern Construction & Accounts Payables NA 0.10 0.10
Engineering Private Limited
179 S S D N Infratech Private Limited Accounts Payables NA – [1] – [1]
180 S V Infraproperties Private Limited Accounts Payables NA 0.04 0.04
181 Safety And Environment Education For Accounts Payables NA – [1] – [1]
Development Private Limited
182 Sahu Infrastructure Private Limited Accounts Payables NA – [1]
– [1]
183 Sai Ashray Infratech Private Limited Accounts Payables NA – [1]
– [1]
184 Sampada Infratech Private Limited Accounts Payables NA – [1]
– [1]
185 Samrat Fabrication And Construction Accounts Payables NA – [1]
0.02
Private Limited.
186 Savitri Infrastrcuture Private Limited Accounts Payables NA 0.02 0.02
187 Sbh Shoring Systems Private Limited Accounts Payables NA – [1] – [1]
188 Sce Global Steel And Facade Private Accounts Payables NA – [1] – [1]
Limited
189 Scotnix Solution Private Limited Accounts Payables NA – [1] – [1]
190 Set Sanayi Elektrik-Tesisat Taahhut Ve Accounts Payables NA 0.02 0.02
Ticaret India Private Limited
191 Shahid Engineers & Contractors Private Accounts Payables NA 0.02 0.02
Limited
192 Sharma Infrabuild Private Limited Accounts Payables NA 0.05 0.05
193 Sheoveena Construction Private Accounts Payables NA – [1] – [1]
Limited
194 Shravani Environment Technology Accounts Payables NA 0.03 0.03
Private Limited
195 Shree Kranti Infracon Private Limited Accounts Payables NA 0.23 0.26
196 Shreeji Home Infra Private Limited Accounts Payables NA 0.03 0.03
197 Shreya Infra Venture Private Limited Accounts Payables NA – [1] – [1]
198 Shri Vedika Engineering Private Limited Accounts Payables NA 0.09 0.02
199 Sieat Consultancy Private Limited Accounts Payables NA 0.04 0.04
200 Sikar Trading And Contracting Private Accounts Payables NA 0.04 0.04
Limited
201 Silk Route Infrastructure Private Limited Accounts Payables NA 0.05 0.05

643
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [63]
c) Balance outstanding with struck off companies: (contd.)
v crore
Relationship Balance Balance
Sr.
Name of struck off company Nature of transaction with the struck outstanding as at outstanding as at
No.
off company March 31, 2024 March 31, 2023
202 Soul And Mind Concrete System Accounts Payables NA 0.07 0.07
Private Limited
203 Sri Abs Lakshn Projects Private Limited Accounts Payables NA 0.03 0.10
204 Star Wire (India) Limited Accounts Payables NA 0.02 0.03
205 Stellent Engineering Solutions Private Accounts Payables NA – [1] – [1]
Limited
206 Sublime Contractors Private Limited Accounts Payables NA – [1] – [1]
207 Sudha Rehabs And Hospitality Private Accounts Payables NA 0.01 0.01
Limited
208 Suhashini Infra Engineering Private Accounts Payables NA – [1]
– [1]

Limited
209 Sukita Security And Services Private Accounts Payables NA – [1]
– [1]

Limited
210 Sumera Builders & Developers Private Accounts Payables NA – [1]
– [1]

Limited
211 Supreme Housekeeping Services Accounts Payables NA 0.06 0.06
Private Limited
212 Sv Engineering And Contracting Accounts Payables NA 0.03 0.03
Services Private Limited
213 Swadesh Energy Private Limited Accounts Payables NA – [1] – [1]
214 Swadeshi Buildtrade Private Limited Accounts Payables NA – [1] – [1]
215 Swift Equipments Private Limited Accounts Payables NA 0.01 0.01
216 Techcon Chemicals Private Limited Accounts Payables NA 0.08 –
217 Techno Power Constructions Private Accounts Payables NA – – [1]
Limited
218 Tej Infrapromoters Private Limited Accounts Payables NA – – [1]
219 Telmax Construction Private Limited Accounts Payables NA 0.02 0.02
220 Terra Firma Promoters & Developers Accounts Payables NA 0.07 0.07
Private Limited
221 Texsa India Limited Accounts Payables NA – [1] – [1]
222 Thakurai Engineering Private Limited Accounts Payables NA 0.15 0.15
223 Thought Zone Consulting Private Accounts Payables NA – [1] – [1]
Limited
224 Threess Innovative Tech India Private Accounts Payables NA – [1]
– [1]

Limited
225 Timely Developers Consultants Private Accounts Payables NA 0.02 0.02
Limited
226 TMM Industries Private Limited Accounts Payables NA – [1]
– [1]

227 Torobuild Constructions Opc Private Accounts Payables NA – [1]

–
Limited
228 Triplex Builders Private Limited Accounts Payables NA 0.04 0.04
229 Trunk Facility Management Services Accounts Payables NA – [1] – [1]
Private Limited
230 Tumbi Office Systems Private Limited Accounts Payables NA – [1] – [1]
231 Ukr Infra Private Limited Accounts Payables NA 0.02 0.02
232 Ultra-Tech Concretes Works Private Accounts Payables NA – [1] – [1]
Limited
233 Umansh Infracon Private Limited Accounts Payables NA – [1]
– [1]

644 Integrated Annual Report 2023-24

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

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [63]
c) Balance outstanding with struck off companies: (contd.)
v crore
Relationship Balance Balance
Sr.
Name of struck off company Nature of transaction with the struck outstanding as at outstanding as at
No.
off company March 31, 2024 March 31, 2023
234 Unique Fabricators & Erectors Private Accounts Payables NA 0.03 0.03
Limited
235 Utech Infracon Private Limited Accounts Payables NA – [1]
– [1]
236 Vaigunthaa Infra Private Limited Accounts Payables NA – – [1]
237 Vams Construction Private Limited Accounts Payables NA 0.13 0.13
238 Vansh Infrasolution Private Limited Accounts Payables NA 0.10 0.10
239 Varad Infra Projects Private Limited Accounts Payables NA – [1] – [1]
240 Vardhman Trading Co. Private Limited Accounts Payables NA – [1] – [1]
241 Vee Gee Yem Engineers India Privite Accounts Payables NA – [1] – [1]
Limited
242 Veekay Engineering India Private Accounts Payables NA – [1]
– [1]

Limited
243 Vertex Realtech Infra Private Limited Accounts Payables NA 0.50 0.50
244 Victory Engineering India Private Accounts Payables NA 0.10 0.10
Limited
245 Victra Constructions Private Limited Accounts Payables NA – [1]
– [1]

246 Vishnuvedanga Infra-Tech Private Accounts Payables NA – [1]

– [1]

Limited
247 Vishwa Infratech & Projects Private Accounts Payables NA – [1]
– [1]

Limited
248 Vissa Engineering Private Limited Accounts Payables NA 0.02 0.02
249 Vk Management Services Private Accounts Payables NA – [1] 0.17
Limited
250 Walls Infra Solution Private Limited Accounts Payables NA – [1] – [1]
251 White Vibes Private Limited Accounts Payables NA 0.19 0.19
252 Wipo Teleservices Private Limited Accounts Payables NA 0.03 0.03
253 Yashas Frp Manufacturing Private Accounts Payables NA 0.05 0.05
Limited
254 Ye Power Transmission Private Limited Accounts Payables NA – [1]
– [1]

255 Z Rose Constructions & Interiors Accounts Payables NA – [1]

– [1]

Private Limited
256 Zaaharveer Projects Private Limited Accounts Payables NA 0.02 0.02
257 Zafcon Engineering Private Limited Accounts Payables NA 0.03 0.03
258 Zain Thermal Solutions Private Limited Accounts Payables NA – [1] – [1]
259 Zippy Facility Management & Services Accounts Payables NA – [1] – [1]
Private Limited
260 Genius Security Services Private Limited Accounts Payables NA – [1] – [1]
261 I S Earth Movers Private Limited Accounts Payables NA 0.10 0.05
262 Shukla Devcon Private Limited Accounts Payables NA – [1] – [1]
263 Sendur Industrial Services Private Accounts Payables NA – [1] – [1]
Limited
264 Santosh Infrastructure Private Limited Accounts Payables NA 0.01 –
265 Shiv Gauri Developers Private Limited Accounts Payables NA – [1] – [1]

266 Transferet Relocation Services (India) Accounts Payables NA – – [1]

Private Limited
Total payables (A) 14.62 15.27

645
 Notes forming part of the
Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [63]
c) Balance outstanding with struck off companies: (contd.)
v crore
Relationship Balance Balance
Sr.
Name of struck off company Nature of transaction with the struck outstanding as at outstanding as at
No.
off company March 31, 2024 March 31, 2023
1 Kothari Intergroup Limited Holding Parent NA – [1] – [1]
Company's equity
shares
2 Alike Trading Private Limited Holding Parent NA – [1]
– [1]

Company's equity
shares
3 Alley Fisheries Private Limited Holding Parent NA – [1]
– [1]

Company's equity
shares
4 Aloke Speciality Machines and Holding Parent NA – [1]
– [1]

Components Private Limited Company's equity

shares
5 Amersey Brothers Private Limited Holding Parent NA – [1]
– [1]

Company's equity
shares
6 Avni Financial Advisors Private Limited Holding Parent NA – [1]
– [1]

Company's equity
shares
7 Demuric Holdings Private Limited Holding Parent NA – [1]
– [1]

Company's equity
shares
8 Fairtrade Securities Limited Holding Parent NA – [1]
– [1]

Company's equity
shares
9 Jabac Consultancies Private Limited Holding Parent NA – [1]
– [1]

Company's equity
shares
10 Omni Market Research Services Private Holding Parent NA – [1]
– [1]

Limited Company's equity

shares
11 Safna Consultancy Private Limited Holding Parent NA – [1]
– [1]

Company's equity
shares
12 Satvik Financial Services Limited Holding Parent NA – [1]
– [1]

Company's equity
shares
13 Siddha Papers Private Limited Holding Parent NA – [1]
– [1]

Company's equity
shares
14 Upgrade Management Services Private Holding Parent NA – [1]
– [1]

Limited Company's equity

shares
15 VMS Consultants Private Limited Holding Parent NA – [1]
– [1]

Company's equity
shares
16 Yogesh Investment Private Limited Holding Parent NA – [1]
– [1]

Company's equity
shares
Total equity shares held (B) – [1]
– [1]

646 Integrated Annual Report 2023-24

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

Notes forming part of the Consolidated Financial Statements (contd.)

NOTE [63]
c) Balance outstanding with struck off companies: (contd.)
v crore
Relationship Balance Balance
Sr.
Name of struck off company Nature of transaction with the struck outstanding as at outstanding as at
No.
off company March 31, 2024 March 31, 2023
1 Upgrade Management Services Private Dividend payable NA – [1] – [1]
Limited
2 Amersey Brothers Private Limited Dividend payable NA – [1]
–
3 Omni Market Research Services Private Dividend payable NA – [1]
–
Limited
4 Safna Consultancy Private Limited Dividend payable NA – [1] – [1]
5 Fairtrade Securities Limited Dividend payable NA – [1] – [1]
6 Kothari Intergroup Limited Dividend payable NA – [1] – [1]
7 Jabac Consultancies Private Limited Dividend payable NA – [1] – [1]
8 Alike Trading Private Limited Dividend payable NA – [1] – [1]
9 Satvik Financial Services Limited Dividend payable NA – [1] – [1]
Total dividend payable (C) – [1] – [1]
1 NCR Aggregate Solutions Private Advance given to NA 1.79 1.79
Limited
Total advance given to (D) 1.79 1.79
1 Pranavam Constructions Private Accounts Receivables NA – [1] – [1]
Limited
2 The Rubber Products Limited Accounts Receivables NA – [1] – [1]
3 Profusion Engineering Private Limited Accounts Receivables NA – [1] 0.04
4 Angelina Infratech Private Limited Accounts Receivables NA 0.01 0.01
5 Sai Ashray Infratech Private Limited Accounts Receivables NA 0.01 0.01
Total receivables (E) 0.02 0.06
1 Inmech Engineering Private Limited Loan given by subsidiary NA – – [1]
2 Shopforprop Realty Private Limited Loan given by subsidiary NA 2.52 –
3 Virtuoso Offshore IT And Management Loan given by subsidiary NA 0.64 –
Services Private Limited
Total loan given by subsidiary (F) 3.16 – [1]
Grand total (A+B+C+D+E+F) 19.61 17.15
[1]
Less than ¢ 1 Lakh

d) a. The Group has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) (other than
subsidiaries) with the understanding (whether recorded in writing or otherwise) that the Group shall:
i. 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
ii. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
b. The Group has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) (other than subsidiaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary
shall:
i. Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Group (Ultimate Beneficiaries) or
ii. Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

NOTE [64]
There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at March 31, 2024.

NOTE [65]
Figures for the previous year have been regrouped/re-classified to conform to the figures of the current year.

647
 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] v crore
Sr. No. 1 2 3 4 5 6
Hi-Tech Rock L&T Energy L&T Thales
Sr. L&T
Products and Hydrocarbon LTIMindtree L&T Technology Technology
No. Particulars Geostructure
Aggregates Engineering Limited Services Limited Services Private
Private Limited
Limited Limited Limited
Financial year ending on 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation 01-Jan-08 25-Nov-20 26-Oct-94 23-Dec-96 14-Jun-12
Date of Acquisition 15-Feb-14
1 Share capital (including share application
money pending allotment) 26.55 25.00 9.00 29.60 21.15 2.05
2 Other equity/Reserves and surplus (as
applicable) (2.78) 418.61 97.27 19268.87 5029.95 76.05
3 Liabilities 63.91 953.60 116.57 7159.19 2953.50 10.47
4 Total equity and liabilities 87.68 1397.21 222.84 26457.66 8004.60 88.57
5 Total assets 87.68 1397.21 222.84 26457.66 8004.60 88.57
6 Investments 11.53 – – 9203.26 1645.56 36.40
7 Turnover 17.92 970.38 281.14 34253.44 8678.87 68.46
8 Profit before taxation 0.34 94.45 31.55 5879.44 1739.14 13.39
9 Provision for taxation – 24.27 4.55 1393.58 480.64 3.44
10 Profit after taxation 0.34 70.18 27.00 4485.86 1258.50 9.95
11 Interim dividend - equity – – – (1219.02) (179.73) –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – (1332.74) (348.99) –
14 Proposed dividend - preference – – – – – –
15 % of share holding 100.00 100.00 100.00 68.64 73.74 54.57

Sr. No. 7 8 9 10 11 12
L&T Infra
L&T Infra
Sr. L&T Network Investment L&T Financial L&T Metro Rail
L&T Finance Investment
No. Particulars Services Private Partners Consultants (Hyderabad)
Limited [a] Partners Trustee
Limited Advisory Private Limited Limited
Private Limited
Limited
Financial year ending on 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation 07-Dec-22 01-May-08 30-May-11 12-Aug-11 16-Jun-11 24-Aug-10
Date of Acquisition
1 Share capital (including share application
money pending allotment) 9.00 2488.94 5.00 0.10 27.75 7413.00
2 Other equity/Reserves and surplus (as
applicable) 0.09 20706.02 23.82 – 352.10 (5979.36)
3 Liabilities 0.35 79155.87 2.41 0.10 53.04 15088.51
4 Total equity and liabilities 9.44 102350.83 31.23 0.20 432.89 16522.15
5 Total assets 9.44 102350.83 31.23 0.20 432.89 16522.15
6 Investments – 12374.78 25.80 – 59.96 –
7 Turnover – 13574.43 5.67 0.03 53.56 1397.64
8 Profit before taxation 0.32 2986.64 4.90 0.01 35.54 (555.04)
9 Provision for taxation 0.08 700.41 1.23 – 10.26 –
10 Profit after taxation 0.23 2286.23 3.67 – 25.28 (555.04)
11 Interim dividend - equity – (496.61) – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – (622.24) – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 100.00 65.86 65.86 65.86 65.86 99.99

648 Integrated Annual Report 2023-24

 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. 13 14 15 16 17 18
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-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation 22-Jun-10 12-Sep-07 09-Apr-07 14-Aug-08 25-Jan-22 29-Jul-97
Date of Acquisition
1 Share capital (including share application
money pending allotment) 200.55 2289.66 2325.00 0.01 0.01 167.16
2 Other equity/Reserves and surplus (as
applicable) (202.33) 400.32 2459.22 (0.05) 297.52 923.33
3 Liabilities 1.83 3.78 4986.79 0.05 93.02 1026.62
4 Total equity and liabilities 0.05 2693.76 9771.01 – 390.55 2117.11
5 Total assets 0.05 2693.76 9771.01 – 390.55 2117.11
6 Investments – 2688.00 539.16 – 22.16 87.75
7 Turnover – – 4313.17 – 175.35 839.41
8 Profit before taxation (0.24) (2.39) 399.53 (0.01) 46.56 287.71
9 Provision for taxation 0.00 – – – 11.92 49.03
10 Profit after taxation (0.24) (2.39) 399.53 (0.01) 34.64 238.68
11 Interim dividend - equity – (5.00) – – – (62.24)
12 Interim dividend - preference – – – – – (33.43)
13 Proposed dividend - equity – – – – – (66.86)
14 Proposed dividend - preference – – – – – (15.56)
15 % of share holding 100.00 100.00 100.00 100.00 100.00 100.00

Sr. No. 19 20 21 22 23 24
Sr. Prime Techpark L&T Construction Bhilai Power L&T Energy
L&T Seawoods L&T Valves
No. Particulars (Chennai) Private Equipment Supply Company Green tech
Limited Limited
Limited Limited Limited Limited
Financial year ending on 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation 13-Mar-08 24-Mar-23 18-Dec-18 23-Nov-61 11-Jul-95 09-Mar-06
Date of Acquisition
1 Share capital (including share application
money pending allotment) 1403.98 0.05 199.14 18.00 0.05 51.05
2 Other equity/Reserves and surplus (as
applicable) 1196.21 (0.03) 44.95 516.67 – 1.39
3 Liabilities 954.27 0.01 122.74 629.08 1.06 25.08
4 Total equity and liabilities 3554.45 0.03 366.83 1163.75 1.11 77.52
5 Total assets 3554.45 0.03 366.83 1163.75 1.11 77.52
6 Investments 1108.28 – – 24.75 – 51.05
7 Turnover 1639.43 – 489.61 1064.00 – 0.77
8 Profit before taxation 379.45 (0.03) 46.59 70.82 – 0.29
9 Provision for taxation 48.75 – 11.50 18.03 – 0.07
10 Profit after taxation 330.70 (0.03) 35.09 52.79 – 0.22
11 Interim dividend - equity (168.98) – – (6.00) – –
12 Interim dividend - preference (10.38) – – – – –
13 Proposed dividend - equity (112.32) – – (18.00) – –
14 Proposed dividend - preference (8.78) – – – – –
15 % of share holding 100.00 100.00 100.00 100.00 99.90 100.00

649
 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. 25 26 27 28 29 30
Millennium Bangalore
Sr. L&T Aviation L&T Capital Chennai Nova Bangalore
Techpark Spectrum
No. Particulars Services Private Company Techpark Private Galaxy Techpark
(Chennai) Private Techpark Private
Limited Limited Limited Private Limited
Limited Limited
Financial year ending on 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation 06-Nov-09 06-Apr-00 30-Apr-23 17-Apr-23 13-Apr-23 12-Apr-23
Date of Acquisition
1 Share capital (including share application
money pending allotment) 45.60 0.05 0.05 0.05 0.05 0.05
2 Other equity/Reserves and surplus (as
applicable) (7.54) 4.17 (0.01) (0.01) – –
3 Liabilities 2.40 0.01 0.01 0.01 – –
4 Total equity and liabilities 40.46 4.23 0.05 0.05 0.05 0.05
5 Total assets 40.46 4.23 0.05 0.05 0.05 0.05
6 Investments – 0.00 – – – –
7 Turnover 27.57 1.10 – – – –
8 Profit before taxation 2.20 1.22 (0.01) (0.01) – –
9 Provision for taxation 0.55 0.34 – – – –
10 Profit after taxation 1.65 0.88 (0.01) (0.01) – –
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
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
Sr. Avenue Techpark Bangalore Business Park Corporate Park LH Residential
L&T Electrolysers
No. Particulars (Bangalore) Fortune Techpark (Powai) Private (Powai) Private Housing Private
Limited
Private Limited Private Limited Limited Limited Limited[b]
Financial year ending on 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation 10-Apr-23 01-May-23 20-Apr-23 01-May-23 27-Jun-23 31-Jul-23
Date of Acquisition
1 Share capital (including share application
money pending allotment) 0.05 0.05 2.05 2.05 51.05 0.10
2 Other equity/Reserves and surplus (as
applicable) (0.02) (0.02) (0.16) – (29.91) (10.41)
3 Liabilities – – 21.08 – 28.40 179.34
4 Total equity and liabilities 0.03 0.03 22.97 2.05 49.54 169.03
5 Total assets 0.03 0.03 22.97 2.05 49.54 169.03
6 Investments – – – – – –
7 Turnover – – – – – –
8 Profit before taxation (0.02) (0.02) (0.16) (0.01) (29.92) (10.41)
9 Provision for taxation – – – – – –
10 Profit after taxation (0.02) (0.02) (0.16) (0.01) (29.92) (10.41)
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 100.00 100.00 100.00 100.00 100.00 100.00

650 Integrated Annual Report 2023-24

 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. 37 38 39 40 41 42
L&T L&T - MHI
Sr. LH Uttarayan L&T - MHI Power
Semiconductor Power Turbine L&T Howden L&T-Sargent &
No. Particulars Premium Realty Boilers Private
Technologies Generators Private Limited Lundy Limited
Private Limited Limited
Limited Private Limited
Financial year ending on 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation 29-Nov-23 17-Feb-24 09-Oct-06 27-Dec-06 17-Jun-10 05-May-95
Date of Acquisition
1 Share capital (including share application
money pending allotment) 9.55 0.05 234.10 710.60 30.00 5.57
2 Other equity/Reserves and surplus (as
applicable) (23.32) – 1286.35 (390.63) 134.36 68.94
3 Liabilities 27.69 – 961.68 683.25 152.88 33.60
4 Total equity and liabilities 13.92 0.05 2482.13 1003.22 317.24 108.11
5 Total assets 13.92 0.05 2482.13 1003.22 317.24 108.11
6 Investments – – 80.87 128.39 – 58.59
7 Turnover – – 1182.72 275.78 272.30 104.60
8 Profit before taxation (23.32) – (39.25) (21.30) 37.60 21.06
9 Provision for taxation – – (8.34) – 10.34 2.83
10 Profit after taxation (23.32) – (30.91) (21.30) 27.26 18.23
11 Interim dividend - equity – – – – (24.00) (5.01)
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – (8.90)
14 Proposed dividend - preference – – – – – –
15 % of share holding 100.00 100.00 51.00 51.00 50.10 50.00

Sr. No. 43 44 45 46 47 48
L&T Special Raykal L&T
Sr. L&T MBDA L&T Sapura
Steels and Heavy L&T Offshore Aluminium Infrastructure
No. Particulars Missile Systems Shipping Private
Forgings Private Private Limited[D] Company Private Development
Limited Limited
Limited Limited Projects Limited
Financial year ending on 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24
Currency INR INR INR INR INR INR
Exchange rate on the last day of
financial year – – – – – –
Date of incorporation 01-Jul-09 05-Apr-17 02-Sep-10 02-Sep-10 23-Feb-99 26-Feb-01
Date of Acquisition
1 Share capital (including share application
money pending allotment) 566.60 1.00 0.01 158.85 0.05 629.52
2 Other equity/Reserves and surplus (as
applicable) (3208.13) 183.20 (0.01) 13.03 (0.92) 2531.01
3 Liabilities 3289.87 3.14 5.91 384.90 0.88 48.23
4 Total equity and liabilities 648.34 187.34 5.91 556.78 0.01 3208.76
5 Total assets 648.34 187.34 5.91 556.78 0.01 3208.76
6 Investments – – – – – 2166.72
7 Turnover 503.99 5.37 – 162.50 – 119.25
8 Profit before taxation (69.09) 7.08 (0.48) (40.68) (0.01) 37.49
9 Provision for taxation 0.02 1.15 – 0.05 – 11.60
10 Profit after taxation (69.11) 5.93 (0.48) (40.73) (0.01) 25.89
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 74.00 51.00 100.00 60.00 75.50 51.00

651
 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. 49 50 51 52 53
L&T
Sr. Vadodara L&T Interstate Ahmedabad-
Panipat Elevated Transportation
No. Particulars Bharuch Tollway Road Corridor Maliya Tollway
Corridor Limited Infrastructure
Limited Limited Limited
Limited
Financial year ending on 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24
Currency INR INR INR INR INR
Exchange rate on the last day of financial year – – – – –
Date of incorporation 21-Jul-05 23-Dec-05 02-Feb-06 24-Sep-97 09-Sep-08
Date of Acquisition
1 Share capital (including share application
money pending allotment) 30.05 43.50 57.16 41.40 149.00
2 Other equity/Reserves and surplus (as
applicable) (280.89) 4.30 (9.92) 48.29 (124.73)
3 Liabilities 321.34 127.08 18.31 485.57 1802.34
4 Total equity and liabilities 70.50 174.88 65.55 575.26 1826.61
5 Total assets 70.50 174.88 65.55 575.26 1826.61
6 Investments 1.91 – 51.71 – –
7 Turnover 108.27 – 15.70 63.55 280.91
8 Profit before taxation 52.28 4.07 (3.50) 62.18 (87.10)
9 Provision for taxation – 0.68 – 16.22 –
10 Profit after taxation 52.28 3.39 (3.50) 45.96 (87.10)
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 51.00

Sr. No. 54 55 56 57 58
Sr. L&T Samakhiali Kudgi L&T Sambalpur-
L&T Deccan PNG Tollway
No. Particulars Gandhidham Transmission Rourkela Tollway
Tollways Limited Limited
Tollway Limited Limited Limited
Financial year ending on 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24
Currency INR INR INR INR INR
Exchange rate on the last day of financial year – – – – –
Date of incorporation 05-Feb-10 20-Dec-11 18-Oct-13 16-Feb-09
Date of Acquisition 30-Aug-13
1 Share capital (including share application money pending
allotment) 80.54 285.34 192.60 290.03 169.10
2 Other equity/Reserves and surplus (as
applicable) (850.06) (1191.76) 217.17 (70.77) (170.24)
3 Liabilities 2099.86 2526.85 1730.53 796.16 1.83
4 Total equity and liabilities 1330.34 1620.43 2140.30 1015.42 0.69
5 Total assets 1330.34 1620.43 2140.30 1015.42 0.69
6 Investments – – 161.20 – 0.36
7 Turnover 261.47 242.26 188.58 283.03 0.01
8 Profit before taxation (116.05) (297.69) 82.86 105.99 (1.91)
9 Provision for taxation – – – 18.49 –
10 Profit after taxation (116.05) (297.69) 82.86 87.50 (1.91)
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 37.74

652 Integrated Annual Report 2023-24

 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. 59 60 61 62 63
Sr. L&T Rajkot- L&T Chennai- Watrak Rewin
LTH Milcom
No. Particulars Vadinar Tollway Tada Tollway Infrastructure Infrastructure
Private Limited
Limited Limited Private Limited Limited
Financial year ending on 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24
Currency INR INR INR INR INR
Exchange rate on the last day of financial year – – – – –
Date of incorporation 20-May-99 24-Mar-08 18-Nov-21 21-Mar-23 17-Aug-15
Date of Acquisition
1 Share capital (including share application
money pending allotment) 110.00 42.00 22.39 100.00 0.20
2 Other equity/Reserves and surplus (as applicable) (231.81) (40.72) 74.32 3.92 (0.20)
3 Liabilities 707.84 2.59 5.59 1.56 0.01
4 Total equity and liabilities 586.03 3.87 102.30 105.48 0.01
5 Total assets 586.03 3.87 102.30 105.48 0.01
6 Investments 24.01 – 70.00 – –
7 Turnover 156.85 – – – –
8 Profit before taxation (43.55) (0.18) 0.62 5.44 –
9 Provision for taxation – – 0.33 1.52 –
10 Profit after taxation (43.55) (0.18) 0.29 3.92 –
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 56.67

Sr. No. 64 65 66 67 68 69
Larsen &
Sr. Larsen & Toubro
Larsen & Toubro Larsen & Toubro Larsen & Toubro Toubro T&D SA PT Larsen and
No. Particulars (East Asia) Sdn.
(Oman) LLC Qatar LLC Saudi Arabia LLC (Proprietary) Toubro
Bhd.
Limited
Financial year ending on 31-Dec-23 31-Dec-23 31-Dec-23 31-Mar-24 31-Mar-24 31-Mar-24
Currency OMR QAR SAR ZAR MYR IDR
Exchange rate on the last day of
financial year 216.14 22.83 22.19 4.37 17.62 0.01
Date of incorporation 21-Jan-94 31-Mar-04 22-Jun-99 06-Sep-10 13-Jun-96 17-Dec-21
Date of Acquisition
1 Share capital (including share application
money pending allotment) 31.49 0.46 22.23 3.28 1.32 15.78
2 Other equity/Reserves and surplus (as
applicable) 426.72 (2.19) 706.24 0.23 14.52 (4.40)
3 Liabilities 1170.32 1.88 6244.45 3.52 82.89 0.38
4 Total equity and liabilities 1628.53 0.15 6972.92 7.03 98.73 11.76
5 Total assets 1628.53 0.15 6972.92 7.03 98.73 11.76
6 Investments – 0.23 486.88 – – –
7 Turnover 1160.32 – 10011.99 0.40 297.91 0.33
8 Profit before taxation (84.59) (0.05) 246.24 0.35 10.95 (4.40)
9 Provision for taxation 8.57 – 50.27 0.09 – –
10 Profit after taxation (93.16) (0.05) 195.97 0.26 10.95 (4.40)
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 30.00 100.00

653
 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. 70 71 72 73 74 75
Larsen &
Toubro Kuwait
Sr. Larsen & Toubro L&T Modular
Larsen Toubro L&T Hydrocarbon Construction Larsen & Toubro
No. Particulars Heavy Engineering Fabrication Yard
Arabia LLC Saudi Company General Electromech LLC
LLC LLC
Contracting
Company WLL
Financial year ending on 31-Dec-23 31-Dec-23 31-Dec-23 31-Dec-23 31-Dec-23 31-Dec-23
Currency OMR OMR SAR SAR KWD OMR
Exchange rate on the last day of
financial year 216.14 216.14 22.19 22.19 270.71 216.14
Date of incorporation 07-Apr-08 05-Jul-06 01-Jul-12 08-Jul-07 29-Nov-06
Date of Acquisition 01-Jan-05
1 Share capital (including share application
money pending allotment) 122.44 0.06 22.19 2.22 54.14 6.48
2 Other equity/Reserves and surplus (as
applicable) (277.17) 182.95 (92.49) (442.20) (44.73) (9.23)
3 Liabilities 205.49 (182.88) 2809.73 3340.23 1.15 41.15
4 Total equity and liabilities 50.76 0.13 2739.43 2900.25 10.56 38.40
5 Total assets 50.76 0.13 2739.43 2900.25 10.56 38.40
6 Investments – – 1112.68 523.73 – –
7 Turnover – 1385.52 2750.39 6357.17 – 60.77
8 Profit before taxation (17.22) 36.85 127.95 159.74 (0.29) 71.15
9 Provision for taxation – 8.91 24.29 29.21 – –
10 Profit after taxation (17.22) 27.94 103.66 130.53 (0.29) 71.15
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 70.00 70.00 75.00 100.00 49.00 70.00

Sr. No. 76 77 78 79 80 81
LTIMindtree
Sr. Information LTIMindtree LTIMindtree
LTIMindtree
No. Particulars Technology Financial Services LTIMindtree LLC South Africa (PTY) LTIMindtree GmbH
Canada Limited
Services (Shanghai) Technologies Inc. Limited
Co., Ltd[c]
Financial year ending on 31-Dec-23 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24
Currency CNY CAD CAD USD ZAR EURO
Exchange rate on the last day of
financial year 11.71 61.27 61.27 83.41 4.37 89.88
Date of incorporation 28-Jun-13 21-Jul-09 14-Jun-99
Date of Acquisition 01-Jan-11 25-Apr-00 25-Jul-12
1 Share capital (including share application
money pending allotment) 1.26 153.17 – – 0.16 0.90
2 Other equity/Reserves and surplus (as
applicable) 1.06 399.09 98.40 6.45 29.11 402.90
3 Liabilities 15.44 61.88 50.30 2.82 10.14 100.90
4 Total equity and liabilities 17.76 614.14 148.70 9.27 39.40 504.70
5 Total assets 17.76 614.14 148.70 9.27 39.40 504.70
6 Investments – – – – – 422.60
7 Turnover 45.95 442.90 735.00 6.38 58.92 196.77
8 Profit before taxation 2.12 172.97 36.81 (0.33) 11.31 4.80
9 Provision for taxation (0.60) 46.16 9.96 – 3.04 4.35
10 Profit after taxation 2.72 126.81 26.85 (0.33) 8.27 0.45
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 68.64 68.64 68.64 68.64 47.77 68.64

654 Integrated Annual Report 2023-24

 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. 82 83 84 85 86 87
Sr.
LTIMindtree LTIMindtree LTIMindtree S. LTIMindtree Syncordis Syncordis
No. Particulars
Spain S.L. [d] Norge AS DE R.L. DE C.V. S.A. [e] France SARL Limited
Financial year ending on 31-Mar-24 31-Mar-24 31-Dec-23 31-Dec-23 31-Dec-23 31-Dec-23
Currency EURO NOK MXN EURO EURO GBP
Exchange rate on the last day of
financial year 89.88 7.69 4.90 91.95 91.95 105.72
Date of incorporation 01-Feb-16 20-Nov-18 01-Mar-17
Date of Acquisition 15-Dec-17 15-Dec-17 15-Dec-17
1 Share capital (including share application
money pending allotment) 0.45 0.02 0.00 0.51 0.14 0.01
2 Other equity/Reserves and surplus (as
applicable) 1.67 14.14 13.41 4.01 (8.75) (62.86)
3 Liabilities 6.61 32.03 10.87 318.21 31.03 –
4 Total equity and liabilities 8.73 46.19 24.28 322.73 22.42 (62.85)
5 Total assets 8.73 46.19 24.28 322.73 22.42 (62.85)
6 Investments – – – – – –
7 Turnover 18.18 77.06 91.81 276.84 32.70 41.30
8 Profit before taxation 0.48 3.74 5.53 4.42 (4.17) (33.16)
9 Provision for taxation (0.38) 1.33 1.49 1.30 – (9.64)
10 Profit after taxation 0.86 2.41 4.04 3.12 (4.17) (23.52)
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 68.64 68.64 68.64 68.64 68.64 68.64

Sr. No. 88 89 90 91 92 93
Sr. Nielsen+Partner LTIMindtree LTIMindtree
LTIMindtree PSF Nielsen+Partner Nielsen&Partner
No. Particulars Unternehmensberater Switzerland (Thailand)
S.A. [f] Pte Ltd Pty Ltd
GmbH AG [g] Limited [h]
Financial year ending on 31-Dec-23 31-Jan-24 31-Dec-23 31-Dec-23 31-Dec-23 31-Dec-23
Currency EURO EURO CHF SGD THB AUD
Exchange rate on the last day of
financial year 91.95 90.00 99.02 63.00 2.42 56.62
Date of incorporation
Date of Acquisition 15-Dec-17 01-Mar-19 01-Mar-19 01-Mar-19 01-Mar-19 01-Mar-19
1 Share capital (including share application
money pending allotment) 3.68 1.85 0.99 0.63 0.24 0.00
2 Other equity/Reserves and surplus (as
applicable) 1.21 5.84 (20.02) (38.84) (2.56) (12.38)
3 Liabilities 161.00 10.53 80.07 70.90 9.60 13.97
4 Total equity and liabilities 165.89 18.22 61.04 32.69 7.28 1.59
5 Total assets 165.89 18.22 61.04 32.69 7.28 1.59
6 Investments – – – – – –
7 Turnover 176.75 8.65 44.82 25.33 11.48 2.14
8 Profit before taxation 2.60 (1.62) (25.39) (38.17) 0.54 (3.76)
9 Provision for taxation 0.17 0.00 0.01 – 0.04 –
10 Profit after taxation 2.43 (1.62) (25.40) (38.17) 0.50 (3.76)
11 Interim dividend - equity – – – – – –
12 Interim dividend - preference – – – – – –
13 Proposed dividend - equity – – – – – –
14 Proposed dividend - preference – – – – – –
15 % of share holding 68.64 68.64 68.64 68.64 68.64 68.64

655
 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. 94 95 96 97 98
Sr. Graphene Graphene
LTIMindtree L&T Technology L&T Technology
No. Particulars Solutions SDN. Solutions Taiwan
USA Inc Services LLC. [i] Services Pte. Ltd.
BHD. Limited
Financial year ending on 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24 31-Dec-23
Currency USD USD SGD MYR TWD
Exchange rate on the last day of financial year 83.41 83.41 61.74 17.62 2.72
Date of incorporation 26-Jun-14
Date of Acquisition 29-Aug-19 15-Oct-18 15-Oct-18 15-Oct-18
1 Share capital (including share application
money pending allotment) 0.77 216.94 0.37 0.18 1.36
2 Other equity/Reserves and surplus (as applicable) (1.26) 183.13 (0.04) (0.10) (1.20)
3 Liabilities 3.36 223.17 0.08 0.02 0.55
4 Total equity and liabilities 2.87 623.24 0.41 0.10 0.71
5 Total assets 2.87 623.24 0.41 0.10 0.71
6 Investments – 0.04 – – –
7 Turnover 2.82 1197.27 – – 0.01
8 Profit before taxation 0.05 46.70 (0.11) (0.04) (0.05)
9 Provision for taxation 0.03 11.90 – – (0.02)
10 Profit after taxation 0.02 34.80 (0.11) (0.04) (0.03)
11 Interim dividend - equity – – – – –
12 Interim dividend - preference – – – – –
13 Proposed dividend - equity – – – – –
14 Proposed dividend - preference – – – – –
15 % of share holding 68.64 73.74 73.74 73.74 73.74

Sr. No. 99 100 101 102 103

L&T Technology L&T Valves
Sr. LTIMindtree L&T Technology
Services LTIMindtree UK Arabia
No. Particulars Middle East Services
(Shanghai) Co. Limited Manufacturing
FZ-LLC (Canada) Ltd
Ltd. LLC
Financial year ending on 31-Dec-23 31-Mar-24 31-Mar-24 31-Mar-24 31-Mar-24
Currency CNY GBP AED CAD SAR
Exchange rate on the last day of financial year 11.71 105.03 22.71 61.27 22.24
Date of incorporation 06-Aug-19 17-Aug-20 25-Nov-20 20-Aug-19 25-Sep-01
Date of Acquisition
1 Share capital (including share application money pending
allotment) 3.85 0.01 4.22 0.04 21.18
2 Other equity/Reserves and surplus (as applicable) 2.84 52.33 39.40 (2.32) (18.37)
3 Liabilities 0.18 200.59 255.48 7.86 16.72
4 Total equity and liabilities 6.87 252.93 299.10 5.58 19.53
5 Total assets 6.87 252.93 299.10 5.58 19.53
6 Investments – – – – –
7 Turnover 2.84 596.22 246.10 1.66 7.17
8 Profit before taxation 1.12 25.61 7.39 (1.42) (7.51)
9 Provision for taxation 0.06 5.07 – – (1.22)
10 Profit after taxation 1.06 20.54 7.39 (1.42) (6.29)
11 Interim dividend - equity – – – – –
12 Interim dividend - preference – – – – –
13 Proposed dividend - equity – – – – –
14 Proposed dividend - preference – – – – –
15 % of share holding 73.74 68.64 68.64 73.74 100.00

656 Integrated Annual Report 2023-24

 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. 104 105 106 107

Sr. Hydrocarbon
L&T Valves USA Larsen & Toubro L&T Global
No. Particulars Arabia Limited
LLC International FZE Holdings Limited
Company
Financial year ending on 31-Mar-24 31-Mar-24 31-Mar-24 31-Dec-23
Currency USD USD USD SAR
Exchange rate on the last day of financial year 83.41 83.41 83.41 22.19
Date of incorporation 28-May-19 25-Sep-01 24-Feb-16 19-Jun-23
Date of Acquisition
1 Share capital (including share application money pending allotment) 4.17 142.62 66.72 1.11
2 Other equity/Reserves and surplus (as applicable) 3.81 900.06 595.39 (0.43)
3 Liabilities 22.01 4003.04 0.04 3.08
4 Total equity and liabilities 29.99 5045.72 662.15 3.76
5 Total assets 29.99 5045.72 662.15 3.76
6 Investments – 1707.38 661.17 –
7 Turnover 53.75 6942.58 – –
8 Profit before taxation 0.38 737.35 183.61 (1.61)
9 Provision for taxation 0.08 1.99 – –
10 Profit after taxation 0.30 735.36 183.61 (1.61)
11 Interim dividend - equity – – – –
12 Interim dividend - preference – – – –
13 Proposed dividend - equity – – – –
14 Proposed dividend - preference – – – –
15 % of share holding 100.00 100.00 100.00 60.00
Notes:
A) For entities having functional currency other than INR, all parameters have been converted using exchange rate on the last
day of financial year.
B) Name changed:
[a]
formerly known as L&T Finance Holdings Limited
[b]
formerly known as LH Residential Housing Limited
[c]
formerly known as L&T Information Technology Services (Shanghai) Co., Ltd.
[d]
formerly known as L&T Information Technology Spain SL.
[e]
formerly known as Syncordis S.A.
[f]
formerly known as Syncordis PSF S.A.
[g]
formerly known as Nielsen+Partner Unternehmensberater AG
[h]
formerly known as Nielsen&Partner Company Limited
[i]
formerly known as Lymbyc Solutions Inc.
C) Names of subsidiaries which have been merged/sold/dissolved/struck-off:
(i) Merged:
a) L&T Innovation Campus (Chennai) Limited -Merged with L&T Seawoods Limited on April 1, 2023.
b) Following entities merged with L&T Finance Limited (formerly known as L&T Finance Holdings Limited) w.e.f. April 1, 2023-
(i) L&T Finance Limited
(ii) L&T Mutual Fund Trustee Limited
(iii) L&T Infra Credit Limited
c) Following entities merged with LTIMindtree Limited w.e.f. April 1, 2023-
(i) Lymbyc Solutions Private Limited
(ii) Powerup Cloud Technologies Private Limited
(iii) Cuelogic Technologies Private Limited

657
 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.)
d) Following entities merged with L&T Technology Services Limited w.e.f. April 1, 2022-
(i) Graphene Semiconductor Services Private Limited
(ii) Seastar Labs Private Limited
(iii) Esencia Technologies India Private Limited
e) Orchestra Technology, Inc. - Merged with L&T Technology Services LLC w.e.f February 1, 2024
(ii) Sold:
a) L&T Infrastructure Engineering Limited
b) Mudit Cement Private Limited
c) Think Tower Developers Private Limited
d) Interise Investment Managers Limited (formerly known as LT IDPL INDVIT Services Limited)
(iii) Liquidated/Dissolved/struck-off/ceased:
a) Kesun Iron and Steel Company Private Limited
b) Arunachal Hydropower Limited
c) PT Larsen & Toubro Hydrocarbon Engineering Indonesia
d) Mindtree Software (Shanghai) Co.Limited
e) Cuelogic Technologies Inc.
f) L&T Hydrocarbon Caspian LLC
D) Name of the Joint Venture which has been converted to subsidiary during the year:
a) L&T Sapura Offshore Private Limited - Reclassified as subsidiary w.e.f December 27, 2023 and post-reclassification the company is
renamed as L&T Offshore Private Limited
E) Names of subsidiaries which are yet to commence operations:
a) L&T Technology Services Poland spółka z ograniczoną odpowiedzialnością

658 Integrated Annual Report 2023-24

 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 B: ”Associates/Joint ventures”
Sr. No. 1 2 3 4 5 6 7 8 9
International Larsen & Magtorq Indiran
Grameen Gujarat
Sr. Seaports Toubro Magtorq Engineering Engineering GH4India
L&T Camp Capital Leather
No. Name of Associates (Haldia) Qatar & HBK Private Solutions Projects and Private
Facilities LLC India Private Industries
Private Contracting Limited Private Systems Kish Limited
Limited Limited
Limited [1] Co. WLL Limited PJSC
1 Latest audited balance sheet date 31-Mar-23 31-Dec-21 31-Dec-23 31-Mar-24 31-Mar-24 Refer Note 2 31-Mar-23 31-Mar-24
2 Date on which the associate or joint
venture was associated or acquired 11-Feb-05 13-Sep-07 28-Jul-04 02-Aug-10 02-Aug-10 31-Oct-09 05-Jun-15 25-Aug-23 27-Jun-91
3 Shares of associate/joint ventures held
by the company at the year end
Number 98,30,000 2,450 100 9,000 22,000 875 21,26,000 10,00,000 7,35,000
Amount of investment in associates/
joint venture (¢ Crore) 9.83 4.96 0.18 4.42 0.22 0.39 6.00 1.00 –
Total share capital (¢ Crore) 44.06 10.12 0.46 0.21 0.24 0.78 12.05 3.00 –
Reserves closing 30.76 (3.75) (9.05) 17.06 0.70 (0.67) (5.72) (4.10) –
Total No of shares 4,40,58,020 5,000 200 21,003 24,000 1,750 81,77,887 30,00,000 Refer Note 3
Extent of holding % (Effective) 14.25% 49.00% 50.00% 42.85% 39.28% 50.00% 17.12% 33.33% 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 4 Refer Note 3
6 Net worth attributable to shareholding
as per latest audited balance sheet
(¢ Crore) 10.66 3.12 (4.29) 7.40 0.37 0.05 – (0.37) –
7 Profit/(Loss) for the year (¢ Crore)
Considered in consolidation 24.19 (3.34) – 2.34 (0.24) 0.23 – (4.10) –
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.
4. No Significant influence as per Ind AS 28.

S. N. SUBRAHMANYAN
Chairman & Managing Director
(DIN 02255382)

R. SHANKAR RAMAN P. R. RAMESH

Whole - time Director & Chief Financial Officer Independent Director
(DIN 00019798) (DIN 01915274)

SIVARAM NAIR A
Company Secretary & Compliance Officer
Membership No. FCS3939
Mumbai, May 8, 2024

659
 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: [email protected], Website: www.larsentoubro.com

Dear Shareholder, Date: June 11, 2024

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 & Compliance Officer
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 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
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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.

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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, Serilingampally, Hyderabad, Telangana - 500 032
Tel : (040) 6716 2222 • Toll free number: 1-800-3094-001 • Email: [email protected]
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