LARSEN & TOUBRO LIMITED Transmission &Et Distribution, Hydrocarbon, Water Effluent Treatment and
Metallurgical and Material Handling business.
The Order inflow for the quarter ended MarchMarch 31,31, 20202020 stood at Z₹57,78557,785 crore, registering a growth of 5%5% over the corresponding period of the previous year, with significant orders received in Infrastructure segment.
The Consolidated Order Book of the group stood at Z₹303,857303,857 crore as at March 31,31, 2020,2020, registering a growth of 4%4%over March, 2019. International orders constitute 25%25% of the total Order Book.
Infrastructure Segment
Infrastructure Segment secured orders of T₹102,678102,678 crore, during the year ended MarchMarch 31,31, 2020,2020, registering growth of 7%7% compared to previous year. Order wins were in varied areas of Health sector, Affordable Mass Housing, Power Transmission &Et Distribution business, renewable energy, airport, Industrial water systems, Water Supply and Distribution, Hydel project, NNetwork management system, gold beneficiation plant and a Railway Freight facility package. International orders at T₹29,50929,509 crore constituted 29%29% of the total order inflow of the segment during the year, with noteworthy order wins in Africa and Middle East.
During the quarter January-March 2020, the Segment recorded order inflow of T₹41,39641,396crore, registering a growth of 33%33% over the corresponding quarter of the previous year.
The Order Book of the Segment stood at T₹224,467224,467crore as at MarchMarch 31,31, 2020,2020, with the international order book constituting 21%21% of the total order book.
Infrastructure Segment recorded Customer Revenue of T₹73,03773,037 crore for the year ended MarchMarch 31,31, 20202020 registering a near flat growth. Execution challenges adversely affecting revenue accretion were faced on multiple counts during FY 20192019-20, viz., halt of work in multiple projects across Andhra Pradesh on State Government directions to review all projects ordered by the previous Government, stoppage of all construction work in the NCR region by the Supreme Court during winter season for environmental reasons, work stoppage due to public interest litigationslitigations in some of the large projects , lower fund allocation in some states and execution challenges in the last few weeks of the year on account of the pandemic. International revenue constituted 25%25% of the total customer revenue of the segment during the yeary. For the quarter January-March 2020, the Customer Revenue was at ₹T 25,33225,332crore, recording y-o-y decline of 6%,6%, primarily due to slowdown caused by Covid-19 environment.
The EBITDA margin of the segment during the year ended MarchMarch 31,31, 20202020was at 8.1%1%vis-à-vis 8.5%5%recorded in previous year, with slowdown in revenue scale up, cost
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pressures encountered in a few projects and the adverse impact caused by COVID 19 led slowdown/lockdown in March 2020.
Power Segment
Power Segment secured orders of T₹12,048 crore for the year ended March 31, 2020 registering significant growth on receipt of large domestic order for a 2X660 MW Ultra Supercritical thermal power project, multiple Flue Gas Desulphurisation (FGD) orders and an order for a comprehensive boiler island package in LEtTL&T--MHPS Boiler JV, consolidated for LEtTL&Tshare. International orders constituted 2% of the total order inflow of the segment during the year. The segment recorded order inflow of T₹218 crore for the quarter ended March 31, 2020, mainly comprising of order amendments.
The Order Book of the Segment grew to T₹15,849 crore as at March 31, 2020, with receipt of a major thermal power plant order and a slew of FGD orders during the year. The international order book constitutes 7% of the total order book.
Power Segment recorded customer revenue of T₹2,294 crore during the year ended March 31, 2020, registering a y-o-y decrease of 42% with new awards yet to pick up execution momentum. International revenue constituted 17% of the total customer revenue of the segment during the year. For the quarter January-March 2020, the Customer Revenue was at ₹T 555 crore, recording y-o-y decline of 40%.
The segment EBITDA margin for the year ended March 31, 2020 was at 12.0%, higher as compared to 4.5% recorded in previous year on receipt of favourable arbitration award.
Heavy Engineering Segment
Heavy Engineering Segment secured orders valued at ₹T 2,361 crore during the year ended March 31, 2020 representing a decline of 42% y-o-y mainly due to deferment of orders and on a high base of Order Inflows in FY19 which included a significant quantum of international orders from the Refinery, Cracker, Oil Et&Gas sector. International orders constituted 57% of the total order inflow of the segment during the year. For the quarter January-March 2020, the Segment recorded order inflow of ₹T 996 crore recording y-o-y growth of 26%.
The Order Book of the Segment stood at ₹T 4,121 crore as at March 31, 2020, with 52% being international.
The Segment recorded Customer Revenue of ₹T 2,853 crore registering a y-o-y growth of 31% over the previous year on the back of improved order book coupled with good execution progress in refinery, oil and gas equipment business. International sales constituted 50% of the total customer revenue of the segment. The Customer
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Revenue during the quarter January-March 2020 stood at T₹637 crore recording a y-o-y decline of 17%.
The EBITDA margin of the segment at 21.5% for the year ended March 31, 2020 registered decline over the previous year at 24.5%, on account of prudential provisions made for arbitration outcomes.
Defence Engineering Segment
LEtTL&TShipbuilding Limited a 100% subsidiary under the Defence Engineering segment, has now been merged with parent Larsen Et&Toubro Limited after obtaining NCLT approval. With the effective date of 1st April 2019, the financials of LEtTL&Tare considering the merger impact and accordingly, the previous year figures have been regrouped. This, however, does not have any impact on the group financials.
Defence Engineering Segment received orders of ₹T 2,233 crore during the year ended March 31, 2020, representing a decline of 26% over the previous year with deferment of awards from Ministry of Defence. International orders constituted 21% of the total order inflow of the segment. During the quarter January-March 2020, the Segment recorded order inflow of ₹T 1,049 crore recording a y-o-y decline of 10%.
The Order Book of the Segment stood at ₹T 9,216 crore as on March 31, 2020, with the international order book constituting 19% of the total Order book.
Defence Engineering Segment recorded customer revenue of T₹3,970 crore registering a y-o-y growth of 6% over the previous year led by noteworthy progress in execution of a marquee order for tracked artillery guns. International Revenue constituted 9% of the total customer revenue of the segment. The customer revenue during the quarter January-March 2020 stood at T₹925 crore recording a y-o-y decline of 15%.
The EBITDA margin of the segment at 18.2% was higher for the year ended March 31, 2020 as compared to the previous year at 16.2%, mainly with operational efficiencies contributing to improvement.
Hydrocarbon Segment
Hydrocarbon Segment secured orders valued ₹T 20,964 crore during the year ended March 31, 2020, a decline of 25% compared to previous year, with deferment of orders mainly in Onshore vertical. International order inflow constituted 36% of the total order inflow of the segment. The order inflow for the quarter January-March 2020 stood at ₹T 2,517 crore recording a y-o-y decline of 80% as previous year included a mega international order in Onshore vertical.
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The Order Book of the Segment stood at T₹44,13044,130crore as at March 31, 2020, with the international order book constituting 48% of the total.
Hydrocarbon Segment recorded Customer Revenue of T₹17,420 crore during the year ended MarchMarch 31,31, 2020,2020, registering a robust y-o-y growth of 15%15% on back of strong execution momentum in Onshore vertical. International Revenue constituted 43%43%of the total customer revenue of the segment for the year ended MarchMarch 31,31, 20202020. The Customer Revenue during the quarter January-March 2020 stood at ₹T 4,9694,969crore recording a y-o-y growth of 15%15%.
The segment recorded improvement in the EBITDA Margin to 10.9%9%for the year ended MarchMarch 31,31, 20202020 as compared to the previous year at 8.8%,8%,on back of execution efficienciesefficienciesand claim settlement in few projects.
IT &Et Technology Services (IT&TS)(ITEtTS) Segment
Due to consolidation of Mindtree limited from second quarter of FY 2019-20, the resultant figures for the current periods are not comparable with the previous periods on a like-to-like basis.
IT &Et Technology Services Segment achieved Customer Revenue of T₹22,13522,135crore during the year ended MarchMarch 31,31, 20202020 including Mindtree revenue consolidation of T₹5,9155,915 crore. International sales constituted 92%92% of the total customer revenue of the segment for the year ended March 31,31, 20202020. The Customer Revenue during the quarter January-March 2020 stood at T₹6,3506,350 crore (including Mindtree revenue of T₹2,035 crore), recording a y-o-y growth of 68%68%. An array of business verticals has contributed to the strong growth ((Manufacturing, CPG, RetailRetail &Et Pharma and Energy &Et Utilities in L&TLEtT Infotech Group,Group,Transportation, Medical devices and PPlant
Engineering verticals in L&TLEtT Technology Services GroupGand Hi-Tech&Et Media and Travel &Et Hospitality in Mindtree Limited). Businesses within this segment have smoothly transitioned to a work-from-home environment during the pandemic with encouragement and support from customers.
The EBITDA Margin for IT&TSITEtTS Segment declined to 20..9%9%for the year ended MarchMarch 31,31, 20202020 as compared to the previous year at 23..2%,2%,mainly due to multiple cost pressures including higher on-shoring costs, increased visa charges and investment in new competencies.
Financial Services Segment
Financial Services Segment recorded Customer Revenue of T₹13,822 crore during the year ended MarchMarch 31,31, 2020,2020, registering a y-o-y growth of 9%,9%,driven by growth in loan assets of 'focussed''focussed' business lines.
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The Loan Book at T₹98,38498,384 crore was marginally lower as compared with March '19'19 at T₹99,12199,121 crore in a volatile and tight liquidity environment. The operating margin of the financial services segment for the year ended MarchMarch 31,31, 20202020was lower at 19.9%9%as compared to the previous year at 24..5% on account of higher credit cost due to additional prudential provisions and Covid-19 related provisions as per RBI guidelines.
Developmental Projects Segment
During the year, shareholding in L&TLEtT Infrastructure Development Projects Ltd (L&T(LEtT IDPL) has been diluted to 51% on the partner Canadian Pension Plan Investment
Board getting statutory approval for conversion of Compulsorily Convertible Preference Shares (CCPS) into Equity under a negotiated agreement.
The balance stretch of Hyderabad Metro was commissioned during the quarter, with which now the Metro Rail project is fully commissioned.
Developmental Projects Segment registered Customer Revenue of T₹4,850 crore during the year ended MarchMarch 31,31, 2020,2020, recording a decline of 4%4%over the previous year, on account of lower offtake from Nabha power plant by the state of Punjab and a planned shutdown of one unit for overhaul and repairs in Q4 FY 202019-20.
The EBITDA Margin of the Segment for the year ended MarchMarch 31,31, 20202020 improved to 11.1%1%as compared to 10..3% during the previous year on account of full commissioning of Hyderabad metro and improved profits from Nabha power plant.
"Others""Others" Segment
"Others""Others" segment comprises Realty, Construction &Et Mining Machinery, Rubber
Processing Machinery and Valves businesses.
Customer Revenue of "Others""Others" Segment during the year ended MarchMarch 31,31, 20202020 at T₹5,0705,070 crore registered a decline of 11%11% over the previous year, as previous year included revenue from a large value transaction pertaining to the sale of commercial property and higher hand over of residential property in Realty business. International sales constituted 11%11% of the total customer revenue of the segment.
During the year ended MarchMarch 31,31, 2020,2020, the segment EBITDA margin stood at 2020..9%,9%,lower as compared to 28..6% margin in the previous year, mainly on account of gain on sale of a commercial property in the previous year.
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Electrical &Et Automation Segment (Discontinued Operations)
Electrical &Et Automation Segment, subsequent to receipt of approval from
Competition Commission of India and subject to fulfilment of certain conditions, has been classified as 'Discontinued'Discontinued Operations'Operations'from June 2019. Fulfilment of various pre-conditions are under way and the sale transaction with Schneider Electric is expected to conclude in FY 2020-21.
TheThesegment clocked Customer Revenue of T₹5,232 crore during the year ended MarchMarch 31,31, 20202020registering a decline of 10% y-o-y due to reduced industrial offtake. International Revenue constituted 25%25% of the total customer revenue of the segment for the year ended March 31,31, 20202020. The Customer Revenue during the quarter January-March 2020 stood at T₹1,121 crore recording a y-o-y decline of 31% representing sluggish demand and disrupted supplies in March 20.
The segment recorded EBITDA Margin of 17.9%9%for the year ended MarchMarch 31,31, 20202020almost in line with previous year.
Outlook
The Indian economy has been struck by the coronavirus pandemic at a time when some green shoots of economic recovery were being forecasted after a prolonged bout of growth slowdown. The lockdown imposed towards the end of FY 2019-20, in an attempt to prevent community transmission of the virus, has unfortunately led to both demand and supply shocks to the economy. EEven though the Government has announced a wide ranging raft of stimulus measures designed to alleviate stress in various sectors, it is likely tthat economic growth will still take a few quarters more to revive to healthy levels.
On the global front, oil prices remain soft in a scenario of demand-supply realignments and geopolitical developments leading to fiscal imbalances in oil producing countries. The US-China trade spat also appears to be escalating and spreading to other countries in bipolar fashion, leading to uncertainty in economic activity in different geographies.
Against this backdrop of domestic challenges and global volatility and the uncertainty about timelines by which normalcy will be restored, the Company has taken a number of measures designed to weather the economic crisis. These measures include building sufficient liquidity on the Balance Sheet, adapting business models to incorporateincorporatework-at-home practices wherever feasible, optimising digital initiatives to facilitate site execution, engaging with customers to refresh contractual rights and obligations, sharply focusing on all items of costs to maximise economic benefits, takingtakingcare of the large sub-contracted labour force at work sites, complying with all Governmental directives while working to remobilise the workforce to commence execution of projects and strengthening practices to ensure that staff are safe and well during this period. While the initial quarters of FY 20202020-21 are expected to be adversely affected by the current upheaval, we
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expect growth revival in the later part of the financial year assuming things get better from here.
Background:
Larsen a&Toubro is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services with over USD 21 billion in revenue. It operates in over 30 countries worldwide. A strong, customer--focused approach and the constant quest for top--class quality have enabled LEtTL&Tto attain and sustain leadership in its major lines of business for eight decades.
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Haskins & Sells LLP
Chartered Accountants
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INDEPENDENT AUDITOR'SAUDITOR'SREPORT ON AUDIT OF ANNUAL CONSOLIDATED FINANCIAL RESULTS AND REVIEW OF QUARTERLY FINANCIAL RESULTS
TO THE BOARD OF DIRECTORS OF
LARSEN & TOUBRO LIMITED
Opinion and Conclusion
We have (a) audited the Consolidated Financial Results for the year ended March 31, 2020 and (b) reviewed the Consolidated Financial Results for the quarter ended March 31, 2020
(refer "Other"Other Matters"Matters" section below), both included in the accompanying "Statement"Statof Consolidated Financial Results for the Quarter and Year Ended March 31, 2020"2020" of LARSEN & TOUBRO LIMITED (the "Parent")"Parent")and its subsidiaries (the Parent and its subsidiaries together referred to as the "Group"),"Group"),and its share of the net profit after tax and total comprehensive income of its joint ventures and associates for the quarter and year ended March 31, 2020, (the "Statement"),"Statement"),which includes the Joint Operations of the Group accounted on proportionate basis, being submitted by the Parent pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing"Listing Regulations")Regulations"). The entities and joint operations, the results of which have been included in the Statement, have been listed in Attachment A.
(a) Opinion on Annual Consolidated Financial Results
In our opinion and to the best of our information and according to the explanations given to us, and based on the consideration of the audit reports of other auditors on separate financial information of joint operations of the Group, subsidiaries, associates and joint ventures
referred to in the "Other"Matters""section below, the Consolidated Financial Results for the year ended March 31, 2020:
- is presented in accordance with the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended; and
- gives a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standards and other accounting principles generally accepted in India of the consolidated net profit and consolidated total comprehensive income and other financial information of the Group for the year ended March 31, 2020.
- Conclusion on Unaudited Consolidated Financial Results for the quarter ended March 31, 2020
With respect to the Consolidated Financial Results for the quarter ended March 31, 2020, based on our review conducted and procedures performed as stated in paragraph (b) of Auditor'sAuditor'sResponsibilities section below and based on the consideration of the audit reports for the year ended March 31, 2020, of the other auditors referred to in Other Matters section below, nothing has come to our attention that causes us to believe that the Consolidated
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Financial Results for the quarter ended March 31, 2020, prepared in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.
Basis for Opinion on the Audited Consolidated Financial Results for the year ended March 31, 2020
We conducted our audit in accordance with the Standards on Auditing ("SA"s)("SA"specified under Section 143(10) of the Companies Act, 2013 (the "Act")"Act"). Our responsibilities under those Standards are further described in paragraph (a) of Auditor'sAuditor'sResponsibilities section below. 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")("ICAI") together with the ethical requirements that are relevant to our audit of the Consolidated Financial Results for the year ended March 31, 2020 under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI'sICAI'sCode 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 Other Matters section below, is sufficient and appropriate to provide a basis for our audit opinion.
Emphasis of Matter
We draw attention to Note (vi) to the Consolidated Financial Results in which the Company describes the uncertainties arising from the COVID 19 pandemic.
Our report is not modified in respect of this matter.
Management'sManagement'sResponsibilities for the Statement
This Statement, which includes the Consolidated Financial Results is the responsibility of the Parent'sParent'sBoard of Directors and has been approved by them for the issuance. The Consolidated Financial Results for the year ended March 31, 2020, has been compiled from the related audited consolidated financial statements. This responsibility includes the preparation and presentation of the Consolidated Financial Results for the quarter and year ended March 31, 2020 that give a true and fair view of the consolidated net profit and consolidated other comprehensive income and other financial information of the Group including its associates and joint ventures in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards, prescribed under Section 133 of the Act, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations.
The respective Board 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 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 the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy
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and completeness of the accounting records, relevant to the preparation and presentation of the respective financial results 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 this Consolidated Financial Results by the Directors of the Parent, as aforesaid.
In preparing the Consolidated Financial Results, the respective 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 Board of Directors either intends to liquidate their respective entities or to cease operations, or has no realistic alternative but to do so.
The respective Board of Directors of the companies included in the Group and of its associates and jointly controlled entities are responsible for overseeing the financial reporting process of the Group and of its associates and joint ventures.
Auditor'sAuditor'sResponsibilities
(a) Audit of the Consolidated Financial Results for the year ended March 31, 2020
Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Results for the year ended March 31, 2020 as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor'sauditor'sreport 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 this Consolidated Financial Results.
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 Annual Consolidated Financial Results, 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of such controls.
•∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors.
•∙Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors in terms of the requirements specified under Regulation 33 of the Listing Regulations.
•∙Conclude on the appropriateness of the Board of Directors'Directors'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'sauditor'sreport to the related disclosures in the Consolidated Financial Results or, if such disclosures are
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inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor'sauditor'sreport. 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 Annual Consolidated Financial Results, including the disclosures, and whether the Annual Consolidated Financial Results represent the underlying transactions and events in a manner that achieves fair presentation.
•∙Perform procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations to the extent applicable.
•∙Obtain sufficient appropriate audit evidence regarding the Annual Standalone Financial Results/ financial information of the joint operations, entities within the Group and its associates and joint ventures to express an opinion on the Annual Consolidated Financial Results. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the Annual Consolidated Financial Results of which we are the independent auditors For the joint operations or other entities included in the Annual Consolidated Financial Results, 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 Annual Consolidated Financial Results that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Annual Consolidated Financial Results 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 Annual Consolidated Financial Results.
We communicate with those charged with governance of the Parent and such other entities included in the Consolidated Financial Results of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may rreasonably be thought to bear on our independence, and where applicable, related safeguards.
- Review of the Consolidated Financial Results for the quarter ended March 31, 2020
We conducted our review of the Consolidated Financial Results for the quarter ended March 31, 2020 in accordance with the Standard on Review Engagements (SRE) 2410 'Review'Reviewof Interim Financial Information Performed by the Independent Auditor of the Entity',Entity',issued by the ICAI. A review of interim financial information consists of making inquiries, primarily of the Company'sCompany'spersonnel responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with SA specified under section 143(10) of the Act and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
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As part of annual audit we also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.
Other Matters
•∙Due to the COVID-19 related lock-down restrictions, management was able to perform year end physical verification of inventories at certain locations, subsequent to the year- end. Also, we were not able to physically observe the stock verification, where carried out by management. Consequently, we have performed alternate procedures to audit the existence of inventory as per the guidance provided in SA 501 "Audit"AuditEvidence -- Specific Considerations for Selected Items",Items",which includes inspection of supporting documentation relating to purchases and , consumption, results of cyclical count performed by the Management through the year and such other third party evidences where applicable, and have obtained sufficient appropriate audit evidence to issue our unmodified opinion on the Statement.
•∙Attention is drawn to Note (ix) to the Statement which states that the consolidated figures for the corresponding quarter ended March 31, 2019 are the balancing figures between the annual audited figures for the year then ended and the year to date figures of nine months period ended December 31, 2018. We have not issued a separate limited review report on the results and figures for the quarter ended March 31, 2019. Our report is not modified in respect of this matter.
•∙The Statement includes the results for the quarter ended March 31, 2020 being the balancing figure between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year which were subject to limited review by us. Our report is not modified in respect of this matter.
•∙We did not audit the financial information of 28 joint operations included in the standalone audited financial results of the entities included in the Group, whose financial information reflect total assets of ₹X3,728.86 crore as at March 31, 2020, total revenues of ₹4,112X4,112.64 crore, total net loss after tax (net) of ₹119X119.39 crore, total comprehensive loss (net) of ₹119.39 crore and net cash outflows (net) of ₹115X115.90 crore for the year ended March 31, 2020, as considered in the respective standalone audited financial results of the entities included in the Group. The financial information of these joint operations have been audited/ reviewed, as applicable, by the other auditors whose reports have been furnished to us by the Management, and our opinion and conclusion in so far as it relates to the amounts and disclosures included in respect of these joint operations, is based solely on the reports of such other auditors and the procedures performed by us as stated under Auditor'sAuditor'sResponsibilities section above.
•∙We did not audit financial information of 68 subsidiaries included in the consolidated financial results, whose financial statements reflect total assets of ₹1,00,047.10 crore as at March 31, 2020 and total revenues of ₹36,971X36,971.08 crore, total net profit after tax (net) of ₹X3,965.32 crore, total comprehensive income of ₹X3,236.04 crore and net cash flows (net) of ₹2,151X2,151.28 crore for the year ended March 31, 2020, as considered in the Statement. The consolidated financial results also includes the Group'sGroup'sshare of loss after tax of ₹29X29..61 crore and total comprehensive loss of ₹2X2..81 crore for the year ended March 31, 2020, as considered in the Statement, in respect of 3 associates and 8 joint ventures, whose financial information have not been audited by us. These financial information have been audited/ reviewed, as applicable, by other auditors whose reports have been furnished to us by the Management and our opinion and conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries,
(
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associates and joint ventures, is based solely on the reports of the other auditors and the procedures performed by us as stated under Auditor'sAuditor'sResponsibilities section above.
Our report on the Statement 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.
•∙The consolidated financial results includes the unaudited financial information of 6 joint operations included in the standalone audited financial results of the entities included in the Group whose financial information reflect total assets of ₹239X239.74 crore as at March 31, 2020 and total revenues of ₹X257.69 crore, total net profit after tax of ₹15X15.40 crore, total comprehensive income of ₹15X15.40 crore, and net cash flows (net) of ₹32X32.30 crore for the year ended March 31, 2020, as considered in the respective standalone audited financial statements of the entities included in the Group, whose financial information have not been audited by us. These financial information are unaudited and have been furnished to us by the Management and our opinion and conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these joint operations, is based solely on such unaudited financial information. In our opinion and according to the information and explanations given to us by the Board of Directors, these financial information are not material to the Group.
•∙The consolidated financial results includes the unaudited financial information of 46 subsidiaries, whose financial information reflect total assets of ₹1,019X1,019.63 crore as at March 31, 2020 and total revenues of ₹742X742.37 crore, total net loss after tax of ₹6X6..01 crore, total comprehensive loss of ₹10X10..71 crore and net cash flows (net) of ₹36X36.85 crore for the year ended March 31, 2020, as considered in the Statement. The consolidated financial results also includes the Group'sGroup'sshare of loss after tax of ₹X10.40 crore and total comprehensive loss of ₹10X10.36 crore for the year ended March 31, 2020, as considered in the Statement, in respect of 3 associates and 6 joint ventures, whose financial information have not been audited by us. These financial information are unaudited and have been furnished to us by the Management and our opinion and conclusion on the Statement, 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 Board of Directors, these financial information are not material to the Group.
Our report on the Statement is not modified in respect of the above matter with respect to our reliance on the financial information certified by the Board of the Directors.
ForDELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm's(Firm'sRegistration No. 1117366W/W-100018)
lif
Sanjiv V. Pilgaonkar
Partner
Membership No. 039826
UDIN: 20039826AAAADF1661
Place: Mumbai
Date: 5 June 2020
Deloitte
Haskins & Sells LLP
Attachment A
SrSr..NoNo.. | NameName ofof entitiesentities | ||||
Subsidiaries | |||||
1 | Bhilai Power Supply Company Limited | ||||
2 | Chennai Vision Developers Private Limited | ||||
3 | Esencia Technologies Inc. | ||||
4 | Esencia Technologies India Private Limited | ||||
5 | Henikwon Corporation SDN. BHD. | ||||
6 | Hi-Tech Rock Products and Aggregates Limited | ||||
7 | Kana Controls General Trading & Contracting Company W.L.L. | ||||
8 | Kesun Iron & Steel Company Private Limited | ||||
9 | L&T Arunachal Hydropower Limited | ||||
10 | L&T Asian Realty Project LLP | ||||
11 | L&T Aviation Services Private Limited | ||||
12 | L&T Capital Company Limited | ||||
13 | L&T Capital Markets (Middle East) Limited | ||||
14 | L&T Capital Markets Limited | ||||
15 | L&T Cassidian Limited# | ||||
16 | L&T Construction Equipment Limited | ||||
17 | L&T Electrical & Automation FZE | ||||
18 | L&T Electricals & Automation Saudi Arabia Company Limited LLC | ||||
19 | L&T Electricals and Automation Limited | ||||
20 | L&T Finance Holdings Limited | ||||
21 | L&T Finance Limited | ||||
22 | L&T Financial Consultants Limited | ||||
Deloitte
Haskins & Sells LLP
SrSr..NoNo.. | NameName ofof entitiesentities |
23 | L&T Geostructure LLP |
24 | L&T Global Holdings Limited |
25 | L&T Himachal Hydropower Limited |
26 | L&T Housing Finance Limited |
27 | L&T Hydrocarbon Engineering Limited |
28 | L&T Hydrocarbon International FZE |
29 | L&T Information Technology Services (Shanghai) Co. Ltd. |
30 | L&T Information Technology Spain, S.L. |
31 | Larsen & Toubro Infotech Austria GmbH ^A |
32 | L&T Infotech Financial Services Technologies Inc. |
33 | L&T Infotech S. DE R.L. DE C.V. |
34 | L&T Infra Contractors Private Limited |
35 | L&T Infra Debt Fund Limited |
36 | L&T Infra Investment Partners |
37 | L&T Infra Investment Partners Advisory Private Limited |
38 | L&T Infra Investment Partners Trustee Private Limited |
39 | L&T Infrastructure Engineering Limited |
40 | L&T Infrastructure Finance Company Limited |
41 | L&T Investment Management Limited |
42 | L&T Metro Rail (Hyderabad) Limited |
43 | L&T Modular Fabrication Yard LLC |
44 | L&T Mutual Fund Trustee Limited |
45 | L&T Overseas Projects Nigeria Limited |
46 | L&T Parel Project LLP |
47 | L&T Power Development Limited |
48 | L&T Power Limited |
Deloitte
Haskins & Sells LLP
SrSr..NoNo.. | NameName ofof entitiesentities |
49 | L&T Realty FZE^FZEA |
50 | L&T Realty Limited$$ |
51 | L&T Seawoods Limited |
52 | L&T Shipbuilding Limited$ |
53 | L&T Technology Services Limited |
54 | L&T Technology Services LLC |
55 | L&T Thales Technology Services Private Limited |
56 | L&T Uttaranchal Hydropower Limited |
57 | L&T Valves Limited |
58 | L&T Vision Ventures Limited |
59 | L&T Westend Project LLP |
60 | Larsen & Toubro (East Asia) SDN.BHD. |
61 | Larsen & Toubro (Oman) LLC |
62 | L&T Hydrocarbon Saudi Company (formerly known as Larsen & Toubro ATCO |
Saudi LLC) | |
63 | Larsen & Toubro Electromech LLC |
64 | Larsen & Toubro Heavy Engineering LLC |
65 | Larsen & Toubro Hydrocarbon International Limited LLC^^LLCAA |
66 | Larsen & Toubro Infotech Canada Limited |
67 | Larsen & Toubro Infotech Limited |
68 | Larsen & Toubro Infotech LLC |
69 | Larsen & Toubro Infotech South Africa (Proprietary) Limited |
70 | Larsen & Toubro Infotech GmbH |
71 | Larsen & Toubro International FZE |
72 | Larsen & Toubro Kuwait Construction General Contracting Company WLL |
73 | Larsen & Toubro LLC |
Deloitte
Haskins & Sells LLP
SrSr..NoNo.. | NameName ofof entitiesentities |
- Larsen & Toubro Qatar LLC#
- Larsen & Toubro Saudi Arabia LLC
- Larsen & Toubro T&D SA (Proprietary) Limited
- Larsen Toubro Arabia LLC
- Mudit Cement Private Limited
- Nabha Power Limited
- PT Larsen & Toubro Hydrocarbon Engineering Indonesia
- PT. Tamco Indonesia
- Sahibganj GangesBridge-Company Private Limited#
- Servowatch Systems Limited
- Syncordis S.A.
- Syncordis SARL
- Syncordis Limited
- Syncordis Support Services S.A.
- Syncordis Software Services India Private Limited
- Tamco Electrical Industries Australia Pty Ltd.
- Tamco Switchgear (Malaysia) Sdn. Bhd.
- Thalest Limited
- Graphene Semiconductor Services Private Limited
- Graphene Solutions PTE Ltd.
- Graphene Solutions SDN .BHD
- Graphene Solutions Taiwan Limited
- Seastar Labs Private Limited
- L&T Construction Machinery Limited
- LTR SSM Private Limited#
- Ruletronics Systems Private Limited
Deloitte
Haskins & Sells LLP
SrSr..NoNo.. | NameName ofof entitiesentities |
- Larsen & Toubro Infotech Norge AS
- Nielsen+Partner Unternehmensberater GmbH
- Nielsen+Partner Unternehmensberater AG
- Nielsen+Partner Pte Ltd
- Nielsen+Partner S.A
- Nielsen&Partner Company Limited
- Nielsen&Partner Pty Ltd
- Ruletronics Limited
- Ruletronics Systems Inc
- L&T Geo-- L&T UJV CMRL CS
- L&T Geo-- L&T JV for Maharatangarh project
- Mindtree Limited @
- Mindtree Software (Shanghai) Co. Ltd @
- Bluefin Solutions Sdn Bhd @
- Lymbyc Solutions Inc. @
- Lymbyc Solutions Private Limited @
- L&T Valves Arabia Manufacturing LLC @
- L&T Valves USA LLC @
- L&T Technology Services (Shanghai) Co. Ltd@
- L&T Technology Services (Canada) Ltd@
- Powerup Cloud Technologies Private Limited @
- L&T--Gulf Private Limited**
- Bluefin Solutions Limited@^@A
- Bluefin Solutions Inc.@^@A
Deloitte
Haskins & Sells LLP
SrSr..NoNo | NameName ofof entitiesentities |
Associates | |
1 | L&T Camp Facilities LLC |
2 | L&T-Chiyoda Limited |
3 | Magtorq Private Limited |
4 | Larsen & Toubro Qatar & HBK Contracting Co. LLC |
5 | Gujarat Leather Industries Limited# |
6 | Magtorq Engineering Solutions Private Limited |
Joint Ventures | |
1 | L&T Transportation Infrastructure Limited |
2 | PNG Tollway Limited |
3 | L&T MBDA Missile Systems Limited |
4 | L&T Howden Private Limited |
5 | L&T Sapura Shipping Private Limited |
6 | L&T Sapura Offshore Private Limited |
7 | L&T-MHPS Boilers Private Limited |
8 | L&T-MHPS Turbine Generators Private Limited |
9 | Raykal Aluminium Company Private Limited |
10 | L&T Special Steels and Heavy Forgings Private Limited |
11 | L&T Kobelco Machinery Private Limited## |
12 | L&T-Sargent & Lundy Limited |
13 | Indiran Engineering Projects and Systems Kish PJSC |
14 | L&T Infrastructure Development Projects limited |
15 | L&T Hydrocarbon Caspian LLC |
16 | L&T- Gulf Private Limited** |
IA
Deloitte
Haskins & Sells LLP
SrSr..NoNo.. | NameName ofof entitiesentities |
Joint Operations
- Desbuild L&T Joint Venture
- Larsen and ToubroLimited-Shapoorji Pallonji & Co. Ltd. Joint Venture
- Al Balagh Trading & Contracting Co W.L.L- L&T Joint Venture
- L&T - AM Tapovan Joint Venture
- HCC - L&T Purulia Joint Venture
- International Metro Civil Contractors Joint Venture
- Metro Tunneling Group
- L&T - Hochtief Seabird Joint Venture
- Metro TunnelingChennai-L&T Shanghai Urban Construction (Group) Corporation Joint Venture
- Metro TunnelingDelhi-L&T Shanghai Urban Construction (Group) Corporation Joint Venture
- L&T-ShanghaiUrban Construction (Group) Corporation Joint Venture CC27 Delhi
- Aktor- Larsen &Toubro-YapiMerkezi-STFA-Al Jaber Engineering Joint Venture
- Civil Works Joint Venture
- L&T-ShanghaiUrban Construction (Group) Corporation Joint Venture
- DAEWOO and L&T Joint Venture
- L&T--STEC JV Mumbai
- L&T-EasternJoint Venture
- Larsen and ToubroLimited-Scomi Engineering BHD Consortium-Residual Joint Works Joint Venture
- Larsen and ToubroLimited-Scomi Engineering BHD Consortium-O&M Joint Venture
- L&T-DelmaMafraq Joint Venture
- L&T-AL-SraiyaLRDP 6 Joint Venture
- Larsen & Toubro Limited & NCC Limited Joint Venture
Deloitte
Haskins & Sells LLP
SrSr..NoNo.. | NameName ofof entitiesentities | |||||
23 | Besix -- Larsen & Toubro Joint Venture | |||||
24 | Larsen & Toubro Ltd - Passavant Energy & Environment JV | |||||
25 | LNT - Shriram EPC Tanzania UJV | |||||
26 | LTH Milcom Private Limited | |||||
27 | L&T- Inabensa Consortium | |||||
28 | L&T- ISDPL (JV) | |||||
29 | L&T--IHI Consortium | |||||
30 | EMAS Saudi Arabia Limited | |||||
31 | Bauer -- L&T Geo Joint Venture | |||||
32 | L&T - Powerchina JV % | |||||
33 | L&T Infrastructure Engineering - LEA Associates South Asia JV % | |||||
34 | L&T Infra Engineering JV United Consultancy % | |||||
35 | L&T -- Tecton JV% | |||||
SymbolSymbol | ExplanationExplanation toto SymbolSymbol | |||||
@ | Acquired/ incorporated during the period. | |||||
Acquired/ incorporated during the period. | ||||||
## | Entities are under liquidation/struck off procedure | |||||
A | Entities liquidated during the period | |||||
^ | ||||||
#### | DivestmentDivestment ofof entireentire stakestake duringduring thethe periodperiod.. | |||||
$$ | AmalgamatedAmalgamated withwith thethe ParentParent CompanyCompany.. | |||||
$S$$ | MergedMerged withwith L&TL&T ConstructionConstruction EquipmentEquipment LimitedLimited | |||||
** | TheThe CompanyCompany isis considered/Reclassifiedconsidered/Reclassified asas subsidiarysubsidiary.. | |||||
** | ||||||
oh | EntityEntity hashas enteredentered intointo JointJoint arrangementarrangement | |||||
% | ||||||
AA | CompanyCompany liquidatedliquidated wefwef 1616--0505--20202020andand waswas aa subsidiarysubsidiary asas onon 3131--0303--20202020 | |||||
^^ |
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Larsen & Toubro Limited published this content on 05 June 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 June 2020 07:37:07 UTC
