L&T Finance : Integrated Annual Report 2022-23

L&T Finance embodies a commitment to innovation, digital, and customer focus, revolutionising the realm of financial services and opening up new opportunities. Our organisational principles revolve around scalability and sustainability, as demonstrated by our proven track record of delivering value to all stakeholders. We prioritise responsible business practices, integrity, and consistency, which drive our day-to-day operations.

To foster growth, we place great emphasis on digital as the foundation of our strategy. By harnessing state-of-the-art technology, our goal is to promote innovation and efficiency throughout our operations, continuously improving our capabilities to meet the diverse needs of our customers.

As we strive towards our strategic objectives, we prioritise retail loans, fintech solutions, and data analytics as the cornerstones of our development. By focusing our efforts on these areas, we strengthen our market presence and foster sustainable progress. Our robust risk management framework ensures that we approach these endeavours with caution and accuracy.

Through seamless integration of retail, digital, and sustainability, we are advancing on an upward trajectory. With a clear vision and unwavering determination, we are Accelerating towards Lakshya, guided by our purpose and perseverance.

Corporate Information

Board of Directors

S. N. Subrahmanyan

Non-Executive Director & Chairperson

Dinanath Dubhashi

Managing Director & Chief Executive Officer

R. Shankar Raman

Non-Executive Director

Shailesh Haribhakti

Independent Director

P. V. Bhide

Independent Director

Thomas Mathew T.

Independent Director

Rajani R. Gupte

Independent Director

Pavninder Singh

Nominee Director

Company Secretary

Apurva Rathod

Statutory Auditors

M/s KKC & Associates LLP (formerly known as Khimji and Kunverji & Co LLP)

Registered Office & Investor Service Centre

Brindavan, Plot No.177, C.S.T. Road, Kalina, Santacruz (East), Mumbai - 400 098, Maharashtra, India

Phone: [phone]

Fax: [phone]

Website: www.ltfs.com

Email: [e-mail]

Registrar & Share Transfer Agents

Link Intime India Private Limited

C-101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai - 400 083, Maharashtra, India Phone: [phone]

Fax: [phone]

Website: www.linkintime.co.in

Email: [e-mail]

Corporate Overview

About the Report	04
Who We Are	06
Performance Highlights	16
Chairman's Message	24
Managing Director & CEO's Message	28

Management Discussion
& Analysis				32
Sustainability
Performance
Value Creation	64
Stakeholder Engagement and	86
Materiality Assessment
Corporate Governance	112
Financial Capital	130
Manufactured and Intellectual Capital	144
Human Capital	172
Social and Relationship Capital	192
Natural Capital	214

Business Responsbility & Sustainability	226
Reporting
Assurance Statement	285
GRI Content Index	294
TCFD Disclosure	301
Glossary		302

Statutory Reports

Board's Report	303
Corporate Governance Report	328

Financial Statements

Standalone

353

Consolidated	437

Notice 541

Quick Information

Market Capitalisation as on March 31, 2023	: ₹ 20,345.70 Cr
BSE Code	: 533519
NSE Symbol	: L&TFH
AGM Day & Date	: Friday, July 28, 2023
AGM Mode	: Video-Conference/OtherAudio-Visual Means

About the report

At L&T Finance Holdings Limited and its subsidiaries (collectively referred to as 'LTF' or 'your Company'), delivering products and services sustainably to its customers has been a key focus. To further this commitment, it adopted 'Lakshya 2026' strategy in FY22 which centres on moving towards a customer-centric approach. This is being accomplished through the four key pillars of:

• Sustained profit and growth engine
• Demonstrable strength in risk management
• Creating Fintech@Scale
• Sustainable future growth through ESG

LTF has taken significant strides in achieving the objectives it has set for itself in its Lakshya strategy. Your Company has been disclosing its performance on ESG annually through Sustainability and Integrated Reports since FY19. For FY23, it aims to report on the financial and non-financial performance through an Integrated Annual Report (Report). Through this, your Company endeavours to present a holistic view of its strategic approach, goals and objectives, the performance against these and the way forward.

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Integrated Annual Report 2022-23

Corporate Overview

Reporting Guidelines

The financial information in Report has been prepared in line with the requirements of:

• The Companies Act, 2013 (including the rules made thereunder)
• The Companies (Accounting Standards) Rules, 2006
• The Securities and Exchange Board of India (Listing and Obligations and Disclosure Requirements) Regulations, 2015
• The Banking Regulation Act, 1949, and other relevant RBI regulations

The non-financial information in this Report has been prepared in accordance with the applicable regulatory requirements and the principles of the framework prescribed by the International Integrated Reporting Council (IIRC). The disclosures made are in line with the Global Reporting Initiative (GRI) Standards for the period April 1, 2022 and/or as on March 31, 2023. Additionally, the Report is aligned with:

• National Guidelines on Responsible Business Conduct (NGRBC)
• Business Responsibility and Sustainability Reporting (BRSR) requirements prescribed by the Securities and Exchange Board of India (SEBI)
• United Nations Sustainable Development Goals (UN SDGs)
• Task Force on Climate-Related Financial Disclosures (TCFD)

Reporting Boundary

The Report details the performance of LTF for the period between April 1, 2022 and/or as on March 31, 2023, and provides the performance of its corporate office, 1,861 branches, including closed and handed over branches. The restatements of information for FY22 wherever applicable, have been provided.

Rural Business Loans & Micro Finance both were part of erstwhile Micro Loans; the split has been made following RBI circular on Micro Finance Institutions.

Precautionary Principle

LTF adopts a precautionary approach in risk management and lending decisions to mitigate any adverse social and environmental impacts. Principles such as stakeholder inclusiveness, completeness and materiality were followed while preparing this Report. The same is enumerated across various sections of Report.

Assurance

Your Company undertook a thorough internal validation process during the development of this Report to ensure the quality and reliability of the information disclosed herein. The disclosures were subjected to an independent third-party external assurance process. Ernst & Young Associates LLP, an independent external assurance provider, has assured the Report, in accordance with limited assurance requirements based on ISAE 3000 Assurance standards. The assurance statement forms a part of this report.

To facilitate access to the available information, links are included throughout this Report to relevant corporate website pages. For any queries and feedback on the information presented in this Report, you can write to [e-mail].

L&T Finance Holdings Limited

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