Larsen & Toubro Limited

Secretarial Department

L&T House, Ballard Estate

Narottam Morarjee Marg

Mumbai - 400 001, INDIA

Tel: +91 22 6752 5656

Fax: +91 22 6752 5858

Disclosures with respect to Employee Stock Option Scheme pursuant to Regulation 14 of the SEBI (Share Based Employee Benefits) Regulations,

2014 as on March 31, 2021:

Sr

Particulars

Status of compliance

A

Relevant disclosures in terms of the 'Guidance note on

Members may refer to the audited financial

accounting for employee share-based payments' issued

statement prepared for the financial year

by ICAI or any other relevant accounting standards as

2020-2021.

prescribed from time to time.

B

Diluted EPS on issue of shares pursuant to all the

Diluted EPS for the year ended March 31,

schemes covered under the regulations shall be disclosed

2021 is:

in accordance with 'Accounting Standard 20- Earnings per

a. From continuing operations Rs 19.11

Share' issued by ICAI or any other relevant accounting

b. From discontinued operations Rs 61.54

standards as prescribed from time to time.

c. From continuing operations and

discontinued operations Rs 80.65

C

Details related to ESOS

i.

Description of each ESOS that existed at any time

during the year, including the general terms and

conditions of each ESOS, including:

(a) Date of shareholders' approval

(b) Total number of options approved under

Details are provided in Annexure 1

ESOS

(c) Vesting requirement

(d) Exercise Price/ Pricing Formula

(e) Maximum term of Options granted

(f) Source of shares (Primary, secondary or

Combination

(g) Variation in terms of options

(ii)

Method used to account for ESOS (Intrinsic or

The Company uses the fair value based

Fair value)

method of accounting for stock options

granted.

  1. Where the Company opts for expensing of the options using the intrinsic value of the options, the

difference between the employee compensation cost so computed and the employee compensation ---

cost that shall have been recognised if it had used the fair value of the options shall be disclosed. The impact of this difference on profits and on EPS of the Company shall also be disclosed.

CIN : L99999MH1946PLC004768

Larsen & Toubro Limited

Secretarial Department

L&T House, Ballard Estate

Narottam Morarjee Marg

Mumbai - 400 001, INDIA

Tel: +91 22 6752 5656

Fax: +91 22 6752 5858

(iv)

Option movement during the year (for each

Details are provided in Annexure -2

ESOS)

(v)

Weighted average exercise prices and weighted

Weighted average exercise price is Rs. 7.80

average fair values of options shall be disclosed

and weighted average fair value is Rs.

separately for options whose exercise price either

834.24 of options granted during the year.

equals/exceeds/is less than the market price of the

stock.

(vi)

Employee wise details (name of employee,

designation, number of options granted during the

year, exercise price) of options granted to-

a)

Senior Managerial Personnel

N.A

b) Any other employee who receives a grant in

None of the Employees were granted more

any one year of option amounting to 5% or

than 5% or more of the options granted

more of option granted during that year; and

during the year

c) Identified employees who were granted option,

None of the Employees granted more than

during any one year, equal to or exceeding 1%

1% of the issued capital

of the issued capital of the company (excluding

outstanding warrants and conversions) at the

time of grant.

(vii)

A

description of the method and significant

assumptions used during the year to estimate the

fair value of options including the following

information:

a) Weighted average values of share price,

exercise price, expected volatility, expected

Details provided in Annexure 3

option life, expected dividends, risk-free

interest rate and any other inputs to the model;

b) Method used & assumptions made to

Black-Sholes Options Pricing Model

incorporate effects of expected early exercise;

c) How expected volatility was determined,

Expected volatility is based on the historical

including explanation of the extent to which

volatility of the Company's share price

expected volatility was based on historical

applicable to the total expected life of each

volatility; and

option.

d)

Whether and how any other features of the

option grant were incorporated into the

measurement of fair value, such as market

condition.

CIN : L99999MH1946PLC004768

Larsen & Toubro Limited

Secretarial Department

L&T House, Ballard Estate

Narottam Morarjee Marg

Mumbai - 400 001, INDIA

Tel: +91 22 6752 5656

Fax: +91 22 6752 5858

Annexure -1

Employee Stock

Employee Stock Option

Particulars

Ownership Scheme 1999

Scheme 2006

ESOS

ESOP 2006A

a)

Date of shareholders'

August 26, 1999 & August

August 25, 2006

approval

22, 2003

b) Total number of

123,62,268

140,01,935

options approved

under ESOS

c) Vesting

One year from date of

One year from date of grant

grant and every year

and every year thereafter (5

Requirements

thereafter (4 vesting)

vesting)

d) Exercise price/Pricing

Rs. 7.80

Rs. 267.10

formula

e) Maximum term of

7 Years

7 Years

options granted

f)

Source of shares

Primary

Primary

(primary, secondary

or combination)

g)

Variation in terms of

NA

N.A.

options

CIN : L99999MH1946PLC004768

Larsen & Toubro Limited

Secretarial Department

L&T House, Ballard Estate

Narottam Morarjee Marg

Mumbai - 400 001, INDIA

Tel: +91 22 6752 5656

Fax: +91 22 6752 5858

Annexure - 2

Option movement during 2020-2021

Employee

Employee Stock

Stock

Option Scheme

Particulars

Ownership

2006

Scheme 1999

ESOS

ESOP 2006A

No. of options outstanding - 01.04.2020

1,45,935

23,75,454

No. of options granted during 2020-2021

1,04,000

0

No. of options forfeited/lapsed during 2020-

4,875

1,75,675

2021

No. of options vested during 2020-2021

49,473

5,55,804

No. of options exercised during 2020-2021

71,910

5,91,365

No. of shares arising as a result of exercise

71,910

5,91,365

of options

Money realised by exercise of options (INR),

Rs.5,60,898.00

Rs.1,57,953,591.50

if scheme is implemented directly by the

Company

Loan repaid by the Trust during the year from

N.A.

N.A.

exercise price received

No. of options outstanding as of 31/03/2021

1,73,150

16,08,414

No. of options exercisable as of 31/03/2021

23,575

4,84,082

CIN : L99999MH1946PLC004768

Larsen & Toubro Limited

Secretarial Department

L&T House, Ballard Estate

Narottam Morarjee Marg

Mumbai - 400 001, INDIA

Tel: +91 22 6752 5656

Fax: +91 22 6752 5858

Annexure - 3

Sr.

Particulars

2020-2021

No.

(i)

Weighted average risk-free interest rate

4.81%

(ii)

Weighted average expected life of options

2.85 years

(iii)

Weighted average expected volatility

35.39%

(iv)

Weighted average expected dividends over the life of

₹51.22 per option

the option

(v)

Weighted average share price

₹884.83 per option

(vi)

Weighted average exercise price

₹7.80 per share

CIN : L99999MH1946PLC004768

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Larsen & Toubro Limited published this content on 10 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 July 2021 07:40:37 UTC.