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    Aboutthe companyar2009 10 Aboutthe companyar2009 10 Document Transcript

    • Contents Company Information 7 Organisation Structure 8 Leadership Team 9 L&T’s Nationwide Network & Global Presence 10-11 Standalone Financials - 10 Year Highlights 12 Consolidated Financials - Highlights 13 Graphs 14-15 Corporate Sustainability 16-20 Directors’ Report 21-50 Management Discussion & Analysis 51-104 Auditors’ Report 105-107 Balance Sheet 108 Profit and Loss Account 109 Cashflow Statement 110 Schedules forming part of Accounts 111-136 Notes forming part of Accounts 137-170 Information on Subsidiary Companies 171-177 Auditors’ Report on Consolidated Financial Statements 179 Consolidated Balance Sheet 180 Consolidated Profit and Loss Account 181 Consolidated Cashflow Statement 182 Schedules forming part of Consolidated Accounts 183-202 Notes forming part of Consolidated Accounts 203-2286
    • Company Information Board of DirectorsL&T’s registered office in Mumbai. A. M. Naik Chairman & Managing Director J. P. Nayak Whole-time Director & President (Machinery & Industrial Products) Y. M. Deosthalee Whole-time Director & Chief Financial Officer K. Venkataramanan Whole-time Director & President (Engineering & Construction Projects) R. N. Mukhija Whole-time Director & President (Electrical & Electronics) K. V. Rangaswami Whole-time Director & President (Construction) V. K. Magapu Whole-time Director & Senior Executive Vice President (IT & Technology Services) M. V. Kotwal Whole-time Director & Senior Executive Vice President (Heavy Engineering) S. Rajgopal Non-Executive Director S. N. Talwar Non-Executive Director M. M. Chitale Non-Executive Director Thomas Mathew T. Nominee - LIC N. Mohan Raj Nominee - LIC Subodh Bhargava Non-Executive Director Bhagyam Ramani (Mrs) Nominee - GIC A. K. Jain Nominee - SUUTI J. S. Bindra Non-Executive Director Company Secretary N. Hariharan Registered Office L&T House, Ballard Estate, Mumbai - 400 001 Auditors M/s. Sharp & Tannan 65th ANNUAL GENERAL MEETING Solicitors AT BIRLA MATUSHRI SABHAGAR M/s Manilal Kher Ambalal & Co.19, MARINE LINES, MUMBAI 400 020 ON THURSDAY, AUGUST 26, 2010 Registrar & Share Transfer Agents AT 3.00 P.M. Sharepro Services (India) Private Limited 7
    • 8 A. M. NAIK CHAIRMAN & MANAGING DIRECTOR ELECTRICAL MACHINERY & IT & FINANCE DEVELOPMENT ENGINEERING & CONSTRUCTION & INDUSTRIAL ENGINEERING & PROJECTS & ELECTRONICS PRODUCTS SERVICES HR FINANCIAL CIO SERVICES K. V. RANGASWAMI K. VENKATARAMANAN M. V. KOTWAL R. N. MUKHIJA J. P. NAYAK V. K. MAGAPU Y. M. DEOSTHALEE CONSTRUCTION E&C PROJECTS HEAVY INDUSTRY A.K. CHHATWANI RAVI UPPAL OPERATING Cos. OPERATING Cos. OPERATING Co. OPERATING Co. OPERATING Cos. OPERATING Co. OPERATING Cos. OPERATING Co. Financial Services Buildings & Factories Upstream Power Development L&T Power Limited Heavy Engineering Electrical & Industrial Products & L&T Infotech • Infrastructure • Institutional & Commercial • Oil & Gas EPC & Construction • Coal-based • Coal Gasifiers Automation Machinery IT Services Finance Buildings Projects • Power Development Supercritical & Thermal Plant • Electrical Standard • Industrial Machinery Verticals • Equipment Finance • Residential Projects • Modular Fabrication • Fuel Source Projects Equipment Products for Paper, Steel, • Manufacturing • Trade Finance • Townships & SEZ & Drilling Rigs Management • Gas-based Projects • Fertilizer & • TAMCO – Medium Bulk Material • Energy, Oil & Gas • Microfinance • Airports • Floating Production • O&M • Boiler Island Petrochemical Voltage Products Handling & Process Industries • Mutual Funds • Hotels & Hospitals Systems • Development & EPC • STG Island Equipment • Electrical Systems & • Rubber Processing • Product • General Insurance • System Housing • Installation Services for Alumina Project • Boiler • Refinery, Cracker Equipment Machinery Engineering • Industrial Plants • Subsea Systems • Water Process Manufacturing Plant and Oil & Gas • Control & Automation • Plastics Processing Services Infrastructure • Formwork & Building Products • L&T Valdel - Technology Facilities Equipment • Metering & Machinery • Insurance Development Engineering • Pulverizing Mills • Weapon Systems Protection Systems • Industrial Valves • Banking & Financial Projects Infrastructure Services (VRM) • Nuclear Power • Welding Products & Services • Roads & Bridges • Ports & Harbours • Turbine Equipment SBU Cutting Tools Horizontals • Ports & Harbours • Bridges Mid & Downstream Manufacturing • Aerospace • Medical Equipment • Foundry Products • ERP – SAP, Oracle • Railways • Roads & Runways • Refineries Facilities & Aviation & Systems • Infrastructure • Hydro Power • Metro Transportation • Petrochemical & • Heavy Foundry • Heavy Structure Management Projects • Hydroelectric Fertilizers • HP Piping • Strategic Electronics Fabrication Services • Transmission • Nuclear Power • Gas Processing Manufacturing Avionics Projects • L&T Rambøll – Engineering • L&T Chiyoda - Facilities Construction SBUs • Water Projects Services Engineering • Axial Fans & Shipbuilding & Machinery Integrated Engineer- • Gas Pipelines Services Air Preheaters Marine Systems • Construction & Mining ing Services • Solar Energy Metallurgical, Material Manufacturing • Naval Machinery • Mechanical & Handling & Water Process Plant Facilities • Merchant • Hydraulic Equipment Mechatronics Urban Infrastructure • Minerals & Metals Construction • Electrostatic • Repair & Refit • Undercarriage and Services Development • Bulk Material Handling Precipitators Material Handling • Embedded Systems • Water Treatment & Pipelines Manufacturing Heavy Forging Systems & Software Distribution Projects • EPC - Cross-country Facilities Facilities • Spares & Service Projects & • Thermal Power Plant Electrical Projects Construction Construction • Transmission Lines • L&T-Gulf Pipeline • L&T Sargent • Substations Engineering & Lundy - • Industrial Electrification Engineering & Instrumentation Services • Railway Construction Railway Projects • Turnkey Solutions INTERNATIONAL BUSINESS: L&T is consolidating its presence in the Middle East, Africa and • Mass Transport Systems South East Asia by ramping up capabilities in EPC, Construction and Manufacturing. • Rolling Stock - Engineering & Manufacturing
    • Leadership Team A. M. Naik Chairman & Managing Director J. P. Nayak Y. M. Deosthalee K. Venkataramanan R. N. Mukhija K. V. Rangaswami President Chief Financial Officer President President President(Machinery & Industrial (Engineering & (Electrical & (Construction) Products) Construction Projects) Electronics) V. K. Magapu M. V. Kotwal Ravi Uppal A. K. Chhatwani Senior Executive Senior Executive CEO & MD Senior Executive Vice President Vice President L&T Power Limited Vice President (IT & Technology (Heavy Engineering) (Power Development) Services) 9
    • A Nationwide Network Note: The pictorial representation does not purport to be the political map of India10
    • A Global Presence Product & Equipment Supply Fabrication Note: Map is broadly representative of L&T’s global presence. 11
    • STANDALONE FINANCIALS-10 YEAR HIGHLIGHTS Rs.croreDescription 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002 2000-2001Profit and Loss Account Gross sales & service 36996 34045 25187 17901 14966 13255 9807 9870 8167 7825 Other income 2385 1032 676 522 519 732 461 302 277 310 Gross revenues 39381 35077 25863 18423 15485 13987 10268 10172 8444 8135 Net sales & service 36675 33647 24855 17567 14735 13050 9561 9360 7726 7390 PBDIT ^^ 5726 4662 3403 2245 1480 1115 945 1047 1102 1116 Profit before tax (excluding extraordinary/exceptional items) 4806 3940 3068 1982 1235 933 769 510 401 339 Profit after tax (excluding extraordinary/exceptional items) 3185 2709 2099 1385 863 631 533 433 347 315 Extraordinary items (net of tax) 136 773 – – 70 – – – – – Exceptional items (net of tax) 1055 – 74 18 79 353 – – – – Profit after tax (PAT) 4376 3482 2173 1403 1012 984 533 433 347 315 Dividend including dividend distribution tax 880^ 720^ 572 428 349 407 225 211 174 178Balance Sheet Share capital 120 117 58 57 27 26 25 249 249 249 Share application money 25 – – – – – – – – – Reserves 18167 12343 9497 5711 4613 3343 2750 3314 3095 3751 Net worth 18312 12460 9555 5768 4640 3369 2775 3563 3344 4000 Deferred tax liability (net) 77 48 61 40 77 95 114 841 853 – Loan funds 6801 6556 3584 2078 1454 1859 1324 3176 3463 4263 Capital employed 25190 19064 13200 7886 6171 5323 4213 7580 7660 8263 Net fixed assets 6366 5195 3645 2225 1605 1083 1015 4056 4264 4671 Investments 13705 8264 6922 3104 1920 961 966 1160 918 813 Net working capital (NWC) 5119 5605 2630 2547 2625 3238 2185 2300 2413 2735 Miscellaneous expenditure – – 3 10 21 41 47 64 65 44 (to the extent not written-off)Ratios and statistics PBDIT incl. other income as % of total income @ 15.09 13.44 13.37 12.43 9.75 8.30 9.43 10.84 13.76 14.49 PAT excluding extraordinary/exceptional items as % of total income $ 8.39 7.81 8.25 7.67 5.71 4.70 5.32 4.48 4.34 4.09 ROCE % * 15.92 18.52 21.12 20.71 16.70 14.63 14.40 7.65 7.47 7.47 RONW % ** 20.73 24.67 28.21 26.84 21.88 21.05 20.66 12.91 9.69 8.18 Gross Debt: Equity ratio 0.37:1 0.53:1 0.38:1 0.36:1 0.32:1 0.56:1 0.49:1 0.92:1 1.07:1 1.09:1 NWC as % of gross sales & service 13.84 16.47 10.44 14.23 17.54 24.43 22.28 23.30 30.42 34.95 Current ratio 1.24 1.34 1.19 1.27 1.38 1.58 1.47 1.58 1.81 2.11 Basic earnings per equity share (Rs.) # 73.77 59.50 37.80 25.11 19.02 19.41 10.71 8.71 6.98 6.34 Book value per equity share (Rs.) ## 303.69 212.31 162.95 101.14 83.50 63.48 54.18 69.57 65.13 78.66 No. of equity shareholders 8,14,678 9,31,362 5,78,177 4,28,504 3,27,778 3,23,908 3,65,824 4,90,628 5,09,922 5,13,562 No. of employees 38,785 37,357 31,941 27,191 23,148 19,848 18,996 21,873 22,922 23,988Figures for the years 2000-2001 to 2002-2003 include demerged cement business.^^ Profit before depreciation, interest and tax [PBDIT] (excluding extraordinary/exceptional items) and including other income.^ Includes dividend distribution tax of Rs. 14.77 crore for FY 2009-2010 and Rs.2.69 crore for FY 2008-2009, paid by direct subsidiary companies for which set off was availed by the parent company as permitted under the Income Tax Act.@ PBDIT as % of total income [(PBDIT excluding extraordinary/exceptional items)/(total income excluding extraordinary/exceptional items)].$ PAT excluding extraordinary/exceptional items as % of total income [(PAT excluding extraordinary/exceptional items)/(total income excluding extraordinary/exceptional items)].* ROCE [(PAT excluding extraordinary/exceptional items+interest-tax on interest)/(average capital employed excluding revaluation reserve and miscellaneous expenditure)].** RONW [(PAT excluding extraordinary/exceptional items)/(average net worth excluding revaluation reserve and miscellaneous expenditure)].# Basic earnings per equity share has been calculated including extraordinary/exceptional items and adjusted for all the years for issue of bonus shares/restructuring during the respective years.## After considering issue of bonus shares/restructuring during the respective years.12
    • CONSOLIDATED FINANCIALS - HIGHLIGHTS Rs.croreDescription 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002Profit and Loss Account Gross sales & service 43854 40608 29561 20700 16747 14599 11107 10857 9195 Other income 3051 916 684 1071 577 696 488 267 239 Gross revenues 46905 41524 30245 21771 17324 15295 11595 11124 9434 Net sales & service 43514 40187 29199 20336 16500 14379 10849 10327 8714 PBDIT ^^ 7198 5600 4097 3013 1904 1404 1271 1240 1341 Profit before tax (excluding extraordinary/ exceptional items) 5527 4344 3384 2510 1472 1052 921 469 414 Profit attributable to Group shareholders (excluding extraordinary/exceptional items) 3796 3007 2304 1810 1051 697 600 380 290 Extraordinary items (net of tax) 136 773 – – 70 – – – – Exceptional items (net of tax and minority interest) 1519 9 21 430 196 353 147 – – Profit attributable to Group shareholders 5451 3789 2325 2240 1317 1050 747 380 290 Dividend including dividend distribution tax 880 720 572 428 349 407 225 211 174Balance Sheet Share capital 120 117 58 57 27 26 25 249 249 Share application money 25 – – – – – – – – Reserves 20846 13871 10773 6865 4937 3290 2622 2968 2889 Net worth 20991 13988 10831 6922 4964 3316 2647 3217 3138 Minority interest 1087 1058 923 646 107 105 54 50 44 Loan funds 22656 18400 12120 6200 3499 3454 2769 4701 4978 Deferred payment liabilities 1951 1970 196 232 – – – – – Deferred tax liability (net) 153 131 122 107 127 138 214 913 928 Capital employed 46838 35547 24192 14107 8697 7013 5684 8881 9088 Net fixed assets 18979 15618 8523 5440 2973 2215 2140 5539 5824 Investments 9928 6805 5552 2478 1676 615 624 528 358 Loans & advances towards financing activities 10935 7110 6161 2410 1012 406 375 323 218 Net working capital (NWC) 6996 6014 3927 3762 3011 3736 2498 2392 2613 Miscellaneous expenditure – – 29 17 25 41 47 99 75 (to the extent not written-off)Ratios and statistics PBDIT including other income as % of total income @ 16.09 13.63 13.73 14.41 11.32 9.54 11.21 11.70 14.98 PAT excluding extraordinary/exceptional items as % of total income $ 8.49 7.32 7.72 8.66 6.25 4.73 5.29 3.59 3.24 ROCE % * 12.68 13.82 16.69 20.74 17.62 14.92 14.01 7.16 6.82 RONW % ** 21.75 24.32 26.68 30.71 25.78 23.96 21.24 12.45 9.24 Gross Debt:Equity ratio 1.08:1 1.32:1 1.12:1 0.90:1 0.71:1 1.06:1 1.08:1 1.52:1 1.65:1 Net Debt:Equity ratio 0.51:1 0.84:1 0.57:1 0.44:1 0.49:1 0.89:1 0.76:1 1.27:1 1.53:1 NWC as % to gross sales 15.95 14.81 13.28 18.17 17.98 25.59 22.49 22.03 28.41 Current ratio 1.29 1.31 1.25 1.36 1.40 1.64 1.50 1.55 1.79 Basic earnings per equity share (Rs.) # 91.90 64.76 40.44 40.10 24.75 20.70 15.01 7.65 5.83 Book value per equity share (Rs.) ## 348.06 238.27 184.31 121.39 89.36 62.44 51.58 61.99 60.82Figures for the years 2001-2002 & 2002-2003 include demerged cement business^^ Profit before depreciation, interest and tax [PBDIT] (excluding extraordinary/exceptional items) and including other income.@ PBDIT as % of total income [(PBDIT excluding extraordinary/exceptional items)/(total income excluding extraordinary/exceptional items)].$ PAT excluding extraordinary/exceptional items as % of total Income [(PAT excluding extraordinary/exceptional items)/(total income excluding extraordinary/exceptional item)]* ROCE [(profit available for appropriation excluding extraordinary/exceptional items+minority interest+interest-tax on interest)/(average capital employed excluding revaluation reserve,miscellaneous expenditure and borrowed funds of financial services business)]** RONW [(profit available for appropriation excluding extraordinary/exceptional items)/(average net worth excluding revaluation reserve and miscellaneous expenditure)]# Basic earnings per equity share has been calculated including extraordinary/exceptional items and adjusted for all the years for issue of bonus shares/restructuring during the respective years.## After considering issue of bonus shares/restructuring during the respective years. 13
    • L&T-ORDER INFLOW L&T-SALES L&T-PBDIT AS % OF TOTAL INCOME L&T-INTEREST COVERAGE RATIO L&T-PAT & EPS L&T-FIXED ASSET TURNOVER RATIO14
    • L&T-SEGMENT-WISE ORDER INFLOW 2009-2010 L&T-SEGMENT-WISE SALES 2009-2010 L&T-SEGMENT-WISE RESULT L&T-SEGMENT-WISE EBITDA MARGINS*L&T-SECTOR-WISE ORDER BOOK AS AT MARCH 31, 2010 L&T CONSOLIDATED SALES AND PAT 15
    • Corporate Sustainability - because progress is best viewed in 3 D There are 3 dimensions to progress – the economic, the environmental and the social. It is now widely accepted that success on any one parameter alone would be lopsided, unstable and, in the end, unsustainable. We at L&T have a long tradition of believing and acting on the principle that all three dimensions must go hand in hand. Building on our rich heritage of fostering development with a human conscience, we have now adopted policies and implemented measures that put us at the vanguard of the sustainability movement within Indian industry. We were among the first corporates to codify policies covering human resources, environment, health and safety. We maintain the highest standards of corporate ethics, with a transparent governance structure, and we contribute significantly to the sustainable growth of our neighbouring communities. We proactively follow the voluntary guidelines on corporate social responsibility issued by the Ministry of Corporate Affairs in December 2009. In fact, L&T was one of the first engineering & construction companies in India to report on Corporate Sustainability performance. These activities are highlighted in the following pages. The full Corporate Sustainability Report can be viewed on www.larsentoubro.com16
    • People - those who so proudly THRUST AREAS ACTIVITIESwear the L&T badge, those who Constructing schools and classrooms, providing teachingbelong to the extended family of aids, conducting enrichment activities, setting upL&T’s supply chain and those who Education computer and science laboratories and supporting pre-are part of the community school centres. Establishing vocational training institutes.around us – are all integral to ourfuture. Initiatives include blood donation, rallying support Employee volunteering during natural calamities, fund-raising, imparting knowledge to youth.Employee Engagement Conducting health check-up camps in collaboration withOur HR programme covers every aspect other organizations for women and children, setting upof an employee’s engagement with the Mother & child health health centres focusing on reproductive health for thecompany. Opportunities are created to underprivileged sections, camps on cataract, anemia, health awareness, malnutrition mitigation, etc.widen their horizons in many ways.Cross-over careers give people thechance to enrich different operational children of employees. Although theareas with their experience and nature of our project, product andexpertise. Continuous in-house training service offerings has resulted in a male-opportunities – both classroom and dominated workforce, the number ofonline – keep them abreast of the latest women employees is steadily increasing.trends in their sphere of operation as Fostered by the spirit of professionalismwell as impart the soft skills so crucial and acceptance by male colleagues, andfor accomplishing goals in a socially aided by facilities like crèches at majorcomplex environment. Occupational locations, women are enabled to makehealth and safety continues to receive a positive contribution to the Company’sfocus. growth. L&T views training as a sustainability tool.Corporate WellnessL&T’s efforts in promoting workplacewellness and the sustainableenhancement of health and safetystandards have received peerrecognition. The Confederation ofIndian Industry has honoured L&T withits prestigious Corporate Wellness Awardfor best health practices.Care extends beyond careers. L&Tencourages all-round growth of itspeople as well as their families. Trainedcounsellors help them tide over life’scrises. Personality development isenhanced through classes ranging fromtransactional analysis to interpersonalrelationships. An engineering institute L&T’s Management Development Centre is in rapid expansion mode - to keep pace with thehas been set up exclusively for the growth of the Company and the challenges thrown up by the emerging business environment. 17
    • Social InitiativesIn the same spirit of viewing progress inall its dimensions, at L&T, we view socialresponsibilities as an extension of ourpeople initiatives. Working closely withcommunity leaders and local NGOs toassess pressing community needs, weundertake long-term programmes inhealth, education and vocationaltraining. Health measures includeimmunization, mother and child care,periodic health camps, and HIV/AIDSprevention. Educational and vocationalprogrammes focus on building self-sustenance and minimizing dependence.We also minimize adverse social impactat project sites. Through the L&TCharitable Trust, we reach out to ruralcommunities at remote locations.Vocational Training remedy this calls for solutions of a super specialized training while theIt is accepted that rapid economic different kind. We on our part have unqualified find themselves pushedgrowth will expand job opportunities for done our bit by initiating and facilitating further behind in the race). WeIndia’s youth. But in our view, this alone the training of youth. Here again, we therefore see the vocational trainingis unlikely to resolve the problems facing chose the less privileged as our core imparted by the Larsen & Toubrothe country’s growing population. As target group. (The paradox of Charitable Trust and our role in severalwe see it, the malaise at the heart of circumstances making the rich richer Construction Skills Training Institutesour socio-economic set up is not and the poor poorer applies to education (CSTI) as critical in helping society andunemployment but unemployability. To as well: the qualified seek and secure in sustaining industry.L&T’S GREEN SPECTRUMProjects & Products that are helping industry go green Ultra-low sulphur diesel reactor L&T is one of the few companies Nuclear Power Plant It is widely acknowledged that the answer toin India with the advanced manufacturing capability to design, balancing the need for energy with the need for growth is to opt forengineer and manufacture equipment that meets the demands of nuclear power. L&T has developed the capability to supply criticalclean fuel technology. equipment and build complete nuclear power plants.18
    • Industry vis a vis the Environment wherever it is required to implement Design for minimizing wasteAt L&T, we do not regard the earth and measures that reduce or mitigate any Conserve water resourcesindustry in adversarial roles. Indeed, potential adverse impacts. Propagate ‘Green Buildings’.our whole concept of sustainability isbuilt upon the premise that an industry This year we have looked at ways to: Together with all our stakeholders, wewhich is responsible and conscientious Minimise energy consumption are confident that the colour ofcan answer the energy intensive needs Follow lean manufacturing practices tomorrow will continue to be green.of growth without compromising theearth or its future. But clearly, today’sproblems cannot be resolved if wecontinue to apply yesterday’s solutions. ENERGY CONSERVATION INITIATIVESThat is why L&T keeps itself abreast of Initiatives/Interventions Total Energy Conservedthe latest developments in technology during FY 2008-2009 (GJ)to apply the most advanced solutionsto today’s needs. We constantly seek Process redesign 3,328newer, more eco-sensitive and more Optimisation / operational controlefficient answers. Featured below is a & efficiency 6,869selective representation of ‘green-enablers’ – products and systems offered Conversion and retrofittingby L&T which are helping industry save of equipment 6,682energy, reduce carbon emissions, and Change to CFL lamps 396help preserve the environment. Change in maintenance /We are committed to incorporating eco- operation schedule 151efficiency into the core of our business Rationalisation of lightingoperations.We are also proactively patterns 3,051monitoring how our operations interact Others 56with the environment and intervene The products shown here are only an indicative selection of our multiple offerings that contribute to a greener tomorrow. Our main plant equipment, which in a super critical power plant can reduce CO2 emissions from 2.5% to 5%, are featured elsewhere in the publication.DHDS Units L&T is one of the few companies in India with the L&T manufactures India’s widest range of electrical and electroniccapability to set up diesel hydro de-sulphurisation (or clean fuel) equipment for control and distribution of power. Part of this rangeprojects. L&T executed several of such projects around the country are intelligent systems that enable users to manage and conserve- milestones on our sustainability journey. energy. 19
    • The Environment – a hot button issueEvery aspect of environmentalprotection receives close and continuingattention – energy conservation, watermanagement, material efficiency….Carbon Footprint mappingThe management mantra – ‘You cannotmanage what you don’t measure’ isespecially relevant for the environment.L&T carried out carbon footprintmapping of its facilities, caused bydirect, indirect factors and travelemissions.Energy ConsumptionThere are two dimensions to The Technology Block at Hazira (above) was awarded the Platinum certification under thecomputation of energy consumption – internationally recognised LEED (Leadership in Energy & Environmental Design) programme.direct and indirect energy consumption. L&T’s Engineering Design & Research Centre at Chennai (below) secured a silver rating.L&T has achieved reductions on bothfronts. In 2009, direct energyconsumption was reduced by 11.75 per messages urging minimalcent. Indirect energy consumption was usage. The results havereduced by 10.98 per cent. been encouraging. The company has set for itself a‘A watt saved is 3 watts target of reducing pergenerated’ capita water consumptionAt L&T, we recognise that small steps by 10 per cent. All L&Tgo a long way in conserving energy. We campuses are targeting aare therefore promoting an energy zero discharge goal.conscious culture among all employees. Material Efficiency Use of material isRenewable Energy inescapable in business, butAround 13 per cent of L&T’s electricity the critical difference lies in the greener footprint and minimize therequirement is sourced through wind attitude of responsibility with which chances of accidental waste. Theenergy. Solar energy is being tapped at material is sourced, used and concept of ‘Reuse, Recycle, Recover’ iscampuses in Powai, Hazira and Mahape. replenished. We are working with our being communicated to all our supplier and contractors to achieve a constituents.EmissionsL&T has achieved a decline in theemission of Green House Gases onindirect emission by 16.15 per cent and Corporate Sustainability at L&T is not prescriptive but participative – itin direct emission by 7.25 per cent. is not a set of rules that have been laid down by the management but rather a responsibility that is shared by all. The concepts of reducingWater Management waste, protecting the environment and contributing to social goodVirtually every water outlet across L&T’s therefore find ready champions across the company.campuses – coolers, water fountains,washrooms and basins – carry graphic20