PERFECTLY

BALANCED-
LARSEN &TUBRO
(GROUP-1) (DIVISION-E)

PROJECT BY- PALLAVI

NAGARIYA(74022120932), KHUSHI
SHAH(74022120937), AKSHAT
AGARWAL(74022120950), DITI
PATIL(74022120966)
 INDEX

SR NO TOPIC PAGE NO.

a The Management Statement 4

b Director’s Report 5

c Management Discussion And 6

Analysis

d 10 Years of Financial Highlights 7

e CSR/Report On Corporate 8
Governance

f Corporate Information 10

g Financial Sector (Balance Sheet, 11

Profit & Loss A/C, Notes To
Account)
 THE MANAGEMENT STATEMENT
Larsen & Toubro is an Indian multinational engaged in EPC Projects, Hi-Tech
Manufacturing and Services. It operates in over 50 countries worldwide. A
strong, customer-focused approach and the constant quest for top-class
quality have enabled L&T to attain and sustain leadership in its major lines of
business for over eight decades. We are engaged in core and high impact
sectors of the economy and our integrated capabilities span the entire
spectrum of ‘design to delivery’. Every aspect of L&T's businesses is
characterized by professionalism and high standards of corporate governance.
Sustainability is embedded into our long-term strategy for growth. The
Company’s manufacturing footprint extends across eight countries in addition
to India. L&T has several international offices and a supply chain that extends
around the globe. Over the past years, the Digital Transformation of L&T
Construction has been an industry game changer, laying a blueprint for
Digitalization across all L&T businesses. Our objective is to utilize the power of
new and emerging technologies to make significant improvements to our
business - save costs, improve productivity and efficiency, and reduce
execution time. This section explores the different areas of technology that are
transforming our business. With over 55% of the workforce below the age of
30, L&T is a young engineering conglomerate. We stimulate and leverage this
young intellectual capital by offering a healthy mix of opportunity,
responsibility, growth and purpose. Our integrated talent management
framework is established on a robust model that enhances employee
capabilities and nurtures both professional and behavioral competencies. Our
work culture empowers individuals with the freedom to think beyond the
conventional, innovate out of the box and raise performance levels.

DIRECTOR’S REPORT
The Directors have pleasure in presenting their 76th Annual Report and
Audited Financial Statements for the year ended 31st March 2021-

The total income for the financial year under review was R 76,751 crore as
against R 85,192 crore for the previous financial year, registering a decrease of
9.91%, primarily due to the disruption caused by the COVID 19 pandemic. The
profit before tax from continuing operations, including exceptional items, was
lower at R 4,438 crore for the financial year under review as against R 6,986
crore for the previous financial year. The profit after tax from continuing
operations, excluding exceptional items, was R 2,686 crore for the financial
year under review as against R 6,025 crore for the previous financial year,
registering a decrease of 55%. The Company sends specific advance
communication to the concerned shareholders at their address registered with
the Company and also publishes notice in newspapers providing the details of
the shares due for transfer to enable them to take appropriate action. All
corporate benefits accruing on such shares viz. bonus shares, etc. including
dividend except rights shares shall be credited to IEPF. The total dividend for
FY 2021, including the special dividend, if approved by shareholders, would
amount to R 36/- (1800%) per equity share.
During the year under review, the Company allotted 663,275 equity shares of R
2/- each upon exercise of stock options by the eligible employees under the
Employee Stock Option Schemes.
The Company's Authorized Capital increased to R 5,025 crore, pursuant to the
approval of the Scheme of Amalgamation of L&T Shipbuilding Limited with the
Company. The authorized share capital of L&T Shipbuilding Limited has been
added to the authorized share capital of the Company, with effect from the
appointed date i.e. 1st April 2019. As at 31st March 2021, the gross property,
plant and equipment, investment property and other intangible assets
including leased assets, were at R 14,222.27 crore and the net property, plant
and equipment, investment property and other intangible assets, including
leased assets, at R 8,640.71 crore. Capital Expenditure during the year
amounted to R 720.26 crore.

MANAGEMENT DISCUSSION AND ANALYSIS

The year 2020-21 has been an unprecedented one. The Covid-19 pandemic is the severest
global health crisis of this century, endangering the whole of humanity and resulting in a
substantial weakening of most economies.
The Indian economy witnessed its first ever technical recession in the year FY 2020-21, with
gross domestic product (GDP) growth remaining in the negative territory for two
consecutive quarters. Lockdowns and travel restrictions imposed significant supply-side
constraints on the economy, drastically reducing output and employment.

The Government announced multiple financial measures and structural reforms at different
stages of the pandemic towards calibrated fiscal support during lockdown and to boost
demand during the unlock phase.

With an aim to speed up the economic normalisation, the Government accelerated the
public investment in the key infrastructure sector. The wheels of India’s capex cycle were
set in motion with a strong revival in investment-led growth supported by the ‘Atmanirbhar
Bharat Mission’ and a massive boost to infrastructure and capital expenditure provided for
in the Union Budget 2021.

Apart from economic reforms, the government also implemented various structural reforms
in the country covering sectors like Agriculture, MSMEs, Labour, Power and Industry. The
agricultural sector remains the bright spot of the Indian economy. However, the surge in
commodity prices is expected to create some cost pressures.

With the economic activity gaining momentum post the Covid-19 lockdown, the measures
announced by the government and rollout of coronavirus vaccines resulted in an uptick in
economic sentiments, but the resurgent Covid-19 second wave has put a dampener on
India’s growth trajectory. Hopefully, the country should be in a position to control this
second wave of Covid-19 infections and, with progress in vaccination and strict
implementation of prevention and detection protocols, the country should be on the
growth track for the larger part of FY 2021-22.
 10 YEARS OF FINANCIAL HIGHLIGHTS

The above bar charts show a decade worth (2012- 2021) of financial highlights of Larsen and
Toubro. Secondary data has been collected about the company’s sales turnover, profit after
tax, net worth and its net profit margin percentage. L&T showed a steady growth in its sales
turnover from the year 2021 until 2020. In 2020, the company manged to achieve its highest
turnover of the decade, that is, Rupees 145 crores. However, in 2021 the firm’s sales
turnover fell by 6.51% to rupees 135 crores. Profit after tax is one of the most important
measures of a company’s financial performance. L&T has had displayed an uneven growth in
PAT over the years, it took a dip in the year 2016 but made tremendous recovery in the
subsequent years. Surprisingly, even when the company had lower sales turnover in 2021,
its PAT was the highest ever at 11, 583 crores. This indicates that the company made
supernormal profits and seems to have recovered after the pandemic.
Larsen and Toubro’s net-worth has shown an upward graph from 2012 to 2021 with average
annual growth rate of approximately 16.9%. Over the course of the decade, the company’s
net worth has grown by 47,247 crores. Before the outbreak of the Covid-19 pandemic in
2019, L&T had a net-worth of rupees 61,885 crores and by 2021 its net-worth increased to
76,609 crore rupees, this is an incredible feat for the MNC. The net profit margin measures
how much net income or profit is generated as a percentage of revenue. In the year 2012,
the company’s net profit margin was 7% and it remained steady for the successive year as
well. However, it began decreasing year-on-year from 2014 to 2016, hitting as low as 4%.
Nevertheless, in 2017, the net profit margin took a big leap and managed to reach 6% from
just 4%. In 2021, the company’s net profit margin is high as 9% of its revenue. With high
revenue, profit after tax as well as net profit margin, 2021 has been a very fruitful year for
Larsen and Toubro.
 CSR/REPORT ON CORPORATE GOVERNANCE
At L&T, the core values revolve around the principles and ideals based on equity,
transparency, accountability, responsibility, compliance, ethics and trust.

APPROACH TOWARDS CORPORATE GOVERNANCE

The governance processes embraced by the Company enables representation of different
stakeholders’ interest and balances the distribution of generated value. The Board actively
guides and helps reaffirm the values and strategy of LTFH. The approach of the Board can be
demonstrated in the following two precepts:
• The Board approves Company's fundamental policies and ensures appropriate
delegation to Committees. The decision-making authority to conduct LTFH's business
operations are defined with a view to promote timely and efficient decision-making
within LTFH, but at the same time ensuring strict adherence to law.
• The Board of Directors, a majority of which consists of Independent Directors,
focuses on effective handling of management's operation of the business and
maintaining a sound and transparent governance framework.

IMPORTANT POLICIES
Quality Policy Sustainability Policy Green Supply Chain Policy EHS Policy
Human Resource Policy Related party transactions Whistle Blower
Policy
Sustainability Policy Internal Controls CSR Policy Protection of women at the
workplace

CORPORATE SOCIAL RESPONSIBILITY (CSR) POLICY

1. CSR Vision: We aspire for an inclusive social transformation of the rural
communities we serve by nurturing and creating opportunities for sustainable
livelihoods for them.
 2. CSR Mission: Our mission is to reach marginalized farmers and women
micro entrepreneurs in the rural communities that we serve and work towards
rejuvenating their ecosystems thereby creating sustainable livelihoods and
enabling financial inclusion.
L&Ts’ CSR interventions focus on delivering sustainable solutions for the long
term benefit of the community. CSR programs of integrated water resource
management (IWRM) and digital financial inclusion have been designed in such
a way that ownership rests with the community, thus ensuring long-term
sustenance.

Some of the following CSR activities done by L&T are:

• Jalvaibhav
• Digital Sakhi
• Relief and Rehabilitation
• Convergence (Capacity building of partners)
• Boondein
• Road Safety Program
CORPORATE INFORMATION
Financial Sector (Balance Sheet, Profit & Loss A/C, Notes
To Account)

RS. IN CR.