Board Report

FY 2017-18  

Board Report

Dear Members,

The Directors have pleasure in presenting their 73rd Annual Report and Audited Financial Statements for the year ended 31st March 2018.

Profit Before Depreciation, exceptional items & Tax
Less: Depreciation, amortization, impairment and obsolescence
Profit before exceptional items and tax
Add: Exceptional Items
Profit before tax
Less:Provision for tax
Profit for the period carried to
Balance Sheet
Add:Balance brought forward
from previous year
Less:Dividend paid during the previous year (Including dividend distribution tax)
Add:Gain/(Loss) on
remeasurement of the net defined benefit plans
Add:Transfer under scheme of
Balance available for disposal
(which the Directors
appropriate as follows)
Less: Debenture Redemption Reserve
Balance to be carried forward
The Directors recommend payment of final dividend of ₹ 16 per equity share of ₹ 2/- each on 1,40,13,69,456 shares.


During the year under review, the Company allotted 16,38,898 equity shares of ₹ 2/- each upon exercise


of stock options by the eligible employees under the Employee Stock Option Schemes.

The shareholders of the Company approved the issue of bonus shares in the ratio of 1:2 (1 bonus share for every 2 shares held) through postal ballot on 5th July 2017. The Company accordingly allotted 46,67,64,755 bonus shares on 15th July 2017.

The Company reduced long-term borrowings during the year under review by way of repayment of foreign currency borrowings worth US$ 171 million on scheduled due dates. Additionally, the Company refinanced USD 470 million of external commercial borrowings while retaining existing maturities, to take benefit of the prevailing interest rates in the market. The Company did not raise any fresh long-term borrowings during FY2017-18.

The Company has not defaulted on any of its dues to the financial lenders.

CRISIL has assigned AAA (Stable) rating for L&T’s longterm debt facilities. In addition, ICRA also has assigned AAA (Stable) rating for certain borrowings of the Company.


Subsequent to the year under review, on 1st May 2018, the Company has signed, subject to regulatory approvals, definitive agreements with Schneider Electric, a global player in energy management and automation for strategic divestment of its Electrical and Automation (E&A) business for an all-cash consideration of ₹ 14,000 crore.

The divestment of E&A business is in line with the Company’s stated intent of unlocking value within the existing business portfolio to streamline and allocate capital and management focus for creating long-term value for our stakeholders. The Company believes that the partnership with Schneider is win-win for our employees, business partners and shareholders.


As at 31st March 2018 the gross property, plant and equipment, investment property and other intangible assets including leased assets, stood at ₹ 10,935.39 crore and the net property, plant and equipment, investment property and other intangible assets, including leased assets, at ₹ 7,593.40 crore. Capital Expenditure during the year amounted to ₹ 1,136.78 crore.


The Company has not accepted deposits from the public falling within the ambit of Section 73 of the Companies

Chairmans Speech Managemetn discussion