By :- Harsh Lal

Piyush Rohilla
Shrey Kakkar
Utkarsh Kumar
• Larsen & Toubro Limited, commonly known as L&T, is
an Indian multi-national conglomerate headquartered
in Mumbai, Maharashtra. It was founded by two
Danish engineers, Henning Holck-Larsen and Søren
Kristian Toubro and currently operated under A. M.
Naik who is the Group Executive Chairman
• The company has business interests in engineering,
construction, manufacturing goods, information
technology, and financial services, and has offices
worldwide.
Products and services offered by L&T.

Products Services
 Heavy equipment  Real estate

 Electrical equipment  Construction

 Power  Financial services

 Shipbuilding  IT services
 Management
Discussion and Analysis
 Overview of World Economy
• World economic output is recovering at a slow pace with the
expectations of achieving sub 3% growth in calendar year
2016.
• There is a potential downside risk in terms of continued slow
growth in China, weak domestic consumption in Japan,
volatile currency movements and sustained level of low
commodity prices. There is an uncertainty over the future
growth prospects of commodity driven economies like Brazil
and Russia.
• Prevailing fragile business sentiment is also adversely
impacted by geopolitical tensions, protectionist policies
adopted by some of the countries and climate &
environmental concerns.
 Overview of the Indian Economy
• Overview of Indian Economy: Amidst the low global growth
environment, the Indian economy showed resilience and grew
by 7.6% for the year 2015-16, driven mainly by the service
sector.
• India has been a beneficiary of low oil prices which has helped
to improve the Government’s fiscal position and has improved
the profitability of PSU oil & gas marketing companies.
• Increased budgetary allocations on infrastructure projects,
pushing investment through cash rich PSUs, thrust on ‘Make
In India’, increased drive on building a strong domestic
manufacturing base for Defence equipment.
 Business Scenario
• The Company sees good prospects in the domestic
economy with the thrust on infrastructure
development.
• The Company has invested in building up the
capacities over the years and has also mapped the
emerging opportunities with the internal capabilities.
• Increase in the pace of implementation of various
initiatives by the government and revival of the
investment cycle would be conducive for achieving
the growth aspirations of the Company.
 Strengths
• Diversified revenues providing resilience :- the
company’s revenues is distributed among business divisions
as follows: engineering and construction, electrical and
electronics, machinery and industrial products, financial
services, developmental projects and others. This enables L&T
to alleviate its business risk as fluctuations in a single offering
have lesser impact on diversified offerings and provide
resilience to its revenues
• Size Advantages :- Size advantages lower Larsen and
Toubro’s risks. The larger Larsen and Toubro gets, the more
resources they have to pursue new markets and defend
themselves against rivals
• Unique products :- Unique products help
distinguish Larsen and Toubro from competitors. Larsen and
Toubro can charge higher prices for their products, because
consumers can’t get those products elsewhere.
• Brand Name :- A strong brand name is a major strength
of Larsen and Toubro. This gives Larsen and Toubro the ability
to charge higher prices for their products because consumers
place additional value in the brand. "Brand Name (Larsen And
Toubro)" is an easily defendable qualitative factor, so
competing institutions will have a difficult time overcoming it.
• Technology :- Superior technology allows Larsen and
Toubro to better meet the needs of their customers in ways
that competitors can’t imitate
• Supply Chain :- A strong supply chain helps Larsen and
Toubro obtain the right resources from suppliers and delivery
the right product to customers in a timely manner
 Weaknesses
• Dependence on domestic operations for
revenue generation
• Online presence :- The online market is essential
for displaying information and selling products. A
weak online presence can result in lost opportunities
for Larsen and Toubro
 Opportunities
• Innovation :- Greater innovation can help Larsen and
Toubro to produce unique products and services that
meet customer’s needs.
• Strategic joint ventures strengthening
business :- L&T has formed a strategic partnership with
Cyan Holdings plc, a UK-based integrated system design
company. L&T and Cascadian entered into a partnership
in February 2011, to become an electronics house .
• Growing Indian construction & engineering
industry :- The Indian construction & engineering
industry is forecast to grow.
 Threats
• Rise in cost of construction may affect
margins :- The rise in crude prices, will increase the
cost of transportation.
• Political Risk :- Politics can increase Larsen and
Toubro’s risk factors, because governments can
quickly change business rules that negatively
affect Larsen and Toubro’s business.
 CORPORATE
GOVERNANCE
 What is Corporate
Governance

Corporate Governance broadly

refers to the mechanisms, process
and reliance by which companies
are controlled and directed.
 Board of Directors
The company is managed by a board of directors.
• Group Executive Director
• Deputy Managing Director & President
• Whole-time Director & Chief Financial Officer
• Whole-time Director & Sr. Executive Vice President
• Independent Director
• Nominee of LIC
• Non-Executive Director
 Board Meetings
Date Purpose of Meetings
28/01/2017 Quarterly Results
22/11/2016 Quarterly Results
07/11/2016 Scheme of Arrangement
29/07/2016 Quarterly Results
25/05/2016 Audited Results & Dividend
29/01/2016 Quarterly Results
30/10/2015 Quarterly Results
21/09/2015 Others
31/07/2015 Quarterly Results
30/05/2015 Audited Results & Dividend
 Procedure for Board Meetings
• Institutionalized decision making
• Scheduling and selection of agenda
• Recording Minutes of Proceedings
• Training and evaluation of non-executive
board member
• Follow Up mechanism
• Compliance
 Recognition
• Best Capital Projects & Infrastructure Risk
Management Award 2017.
• FICCI Quality Systems Excellence Award 2017.
• IACC company of the year 2016.
• Award for excellence in power project
execution.
• D&B Top infrastructure company award 2013.
 Code of Conduct
• Larsen & Toubro Limited is a professionally managed
Company, having its own vision statement committed
to total customer satisfaction and enhancing
stakeholder's value.
• The Company's philosophy on corporate governance is
built on a rich legacy of fair and transparent
governance and disclosure practices. This includes
respect for human values, individual dignity, and
adherence to honest, ethical and professional conduct.
This Code of Conduct ensures compliance with the
provisions of the revised Clause 49 of the Listing
Agreement with Stock Exchanges.
 Corporate Governance stated in erstwhile
clause 49 of the listing agreement of SEBI
(2015)
• The right of shareholders
• Timely Information
• Equitable Treatment
• Role of stakeholder in corporate governance
• Disclosure and transparency
• Responsibility of board of direction
• Disclosure of information
• Key function of the board
• Other responsibility
 Company Philosophy
• The Company's philosophy on Corporate Governance is
built on a rich legacy of fair and transparent governance
and disclosure practices, many of which were in
existence even before they were mandated by legislation.
• The Company's essential character revolves round values
based on transparency, integrity, professionalism and
accountability. At the highest level, the Company
continuously endeavors to improve upon these aspects
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.
DIRECTOR’S
REPORT
FINANCIAL RESULT
 BOARD REPORT
CAPITAL & FINANCE CAPITAL EXPENDITURE
During the year under review, the As at March 31, 2016 the gross
Company allotted19,16,784 equity shares tangible and intangible assets
of 2/- each upon exercise of stock options
by the eligible employees under the including leased Assets, stood at
Employee Stock Option Schemes. The 13,297.13 cr. and the net
Company issued Non-Convertible
Debentures (NCDs)worth 1,000 cr. At tangible and intangible assets,
maturity, repayment of NCDs worth 600 including leased assets, at
cr. was also made. The Company tied long-
term foreign currency loan of USD 25 7,668.59 cr. Capital Expenditure
million, and also completed part during the year amounted to 776
repayment of a foreign currency long term
debt of USD 5.83 million as per schedule. cr.
In addition t he Company prepaid foreign
currency loans worth USD50 million.
SEGMENTAL
PERFORMANCE :

During the year, the Company had

two Business Segments namely,
Services Cluster and Industrials
Cluster of which contribution to the
revenue was 52.4% (previous year
51.6%) from Services Cluster and
47.6% (previous year 48.4%) from
Industrials Cluster, on
unconsolidated basis. On
consolidated basis, the contribution
to the revenue was 53.9% (previous
year 52.8%) from Services Cluster,
46.1% (previous year 47.0%) from
Industrials Cluster and 0.0%
(previous year 0.2%) from Telecom
(PES Discontinued Business).
 DIRECTORS RESPONSIBILITY STATEMENT
• The Board of Directors hereby confirm that:

• (i) in the preparation of the annual accounts, the applicable accounting standards
have been followed and there has been no material departure.
• (ii) the Directors have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and prudent
so as to give a true and fair view of the state of affairs of the Company as on March
31, 2016 and of the profit of the Company for the year ended March 31, 2016;
• (iii) the Directors have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provisions of the Companies
Act, 2013 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
• (iv) the Directors have prepared the annual accounts on a going concern basis; and
• (v) the Directors had devised proper systems to ensure compliance with the
provisions of all applicable laws and that such systems were adequate and
operating effectively.
 CHANGES IN SHARE CAPITAL
• A.- The authorised share capital of the Company was sub-divided from 32,750,000
equity shares of Rs 5 each to 163,750,000 equity shares of Rs 1 each.
Consequently, the paid up share capital was also sub-divided from 32,250,000
equity shares of Rs 5 each fully paid-up to 161,250,000 equity shares of Rs 1 each
fully paid-up. The sub-division was effected from June 22, 2015.
• B.- The authorised share capital was increased from Rs 163.75 Million divided into
163,750,000 equity shares of Rs 1 each to Rs 200.00 Million divided into
200,000,000 equity shares of Rs 1 each with effect from June 22, 2015.
• C.- The authorised share capital was further increased to Rs 240.00 Million divided
into 240,000,000 equity shares of Rs 1 each, pursuant to the Scheme of
Amalgamation of Information Systems Resource Centre Private Limited with the
Company becoming effective from September 21, 2015. However, there was no
change in the paid-up share capital pursuant to the scheme.
• D.- During the year 8,566,188 equity shares were allotted on exercise of the vested
options under the employees stock options schemes of the Company. Hence, the
paid-up share capital of the Company increased from Rs 161.25 Million to Rs
169.82 Million.
 CORPORATE
SOCIAL
RESPONSIBILITY
 Definition
 A company’s sense of responsibility towards the
community and environment (both ecological and
social) in which it operates. Companies express this
citizenship
 (1) through their waste and pollution reduction
processes,
 (2) by contributing educational and social programs
and
 (3) by earning adequate returns on the employed
resources.
 A broader definition expands from a focus on
stakeholders to include philanthropy and volunteering.
 L&T’s aim and previous works
 Larsen and toubro started to work on social issues and
assumed its social responsibility much before
corporate social responsibility became the buzzword.
 Structured around the theme Building India’s Social
Infrastructure’ L&T’s CSR policies and practices are
formulated with a view to maximising their impact.
 Their Integrated Community Development Programme
is aligned with the UN Social Development Goals and
addresses the most pressing needs – water, sanitation,
education, health and skill-building.
 The company is now working on an array of social
issues.
 Clean water and sanitation
Built check dams to ensure water supply
during the dry months across three states.
Cultivating two crops a year instead of one,
the villagers now need not migrate to cities for
seasonal work.
Drinking water facilities in schools and public
places.
Building toilets in girls’ schools contributes to
female literacy.
 Healthcare
L&T has launched affordable health and welfare initiatives
to help the economically-weak stay healthy despite the high
cost of healthcare
• Rural health camps include ophthalmology, dental,
gynaecology and general health.
• Regular health check-up camps are held in schools and
pre-school.
• L&T’s HIV/AIDS management initiatives include
awareness camps (particularly for high-risk groups), Anti-
Retroviral Therapy, counselling and testing.
• Artificial kidney dialysis centres for the underprivileged
 Education
• Build and repair municipal schools
• Support pre-schools, set up computer
laboratories, provide teaching aids and
uniforms and augment teacher capacity.
• Science-on-Wheels van visits schools, giving
children the opportunity to experience the
thrill of hands on experiments.
• Summer camps and sports activities help
pupils develop social skills.
 Self – sufficiency
L&T has set up vocational institutes and has in
place programmes
Organise vocational training programmes in
the areas of tailoring, beautician skills, home
nursing and food processing.
Vocational training enables these people to
become self-sufficient, elevates their social
standing