@

Larsen & Toubro is a major technology, engineering, construction, manufacturing and

financial services conglomerate, with global operations. L&T addresses critical needs in
key sectors - Hydrocarbon, Infrastructure, Power, Process Industries and Defence - for
customers in over 30 countries around the world.
L&T is engaged in core, high impact sectors of the economy and our integrated
capabilities span the entire spectrum of design to deliver. With over 7 decades of a
strong, customer focused approach and a continuous quest for world-class quality, with
an unmatched expertise across Technology, Engineering, Construction, Infrastructure
Projects and Manufacturing, and maintain a leadership in all its major lines of business.

Corporate Governance Philosophy

The Company's philosophy on Corporate Governance is built on a rich legacy of fair and
transparent governance and disclosure practices, many of which were in existence
even before they were mandated by legislation.
The Corporate Governance framework is based on an effective independent
Board, the separation of the Board's functions of governance and executive
management and the constitution of Board committees generally comprising a
majority of independent Directors.

Board of Directors at L&T

L&T Board of Directors includes 20 Members comprising of Chairman & Managing
Director, 7 Executive Directors and 11 independent Directors and 2 Non-Executive
Directors and 1 woman Director.

Sub committees of the board

a) Audit Committee
b) Nomination & Remuneration Committee
c) Stakeholders Relationship Committee (formerly known as Shareholders/Investors
Grievance Committee)
d) Corporate Social Responsibility Committee
e) Risk Management Committee

Corporate Governance Structure

L&Ts essential character revolves around values based on transparency, integrity,
professionalism and accountability. At the highest level, we continuously endeavour to improve
upon these aspects on an ongoing basis.

The four-tier governance structure, besides ensuring greater management accountability and
credibility, facilitates increased autonomy to businesses, performance discipline and
development of business leaders, leading to increased public confidence. The Board of
Directors of L&T includes a woman independent director.

Sustainability @ L&T
L&T won the CII-ITC

Sustainability Award for commendation for

significant achievement 2014 which has Corporate

part of its criteria
L&T has been featured among Asias Top 5 Most

Governance as
Sustainable

Companies in the Industrials Sector in Channel News Asias

Sustainability Rankings 2015
The Top-down approach of L&T Sustainable
Governance Practice involves the following:
The Sustainability Executive Board (SEB),
steered by a member of the Executive
Management
Committee (EMC), ensures
Stakeholder
effective
formulation of sustainability
Engagement
policies, implementation of strategy and
review of Sustainability Report. Business
Heads, Sustainability Councils and Unit Level
Sustainability Teams cascade the initiatives
across the Company through the
representation of Independent Companies

Key Focus Areas

Governance @ L&T

of

Corporate

Employee Engagement
Labour Practices and Human Rights
Employee Benefits
Community
Engagement
Product
Stewardship
Occupational
Health & Safety
Integrated Community Development
L&Tinvests
Leadership
in R&DDevelopment
to develop new
& Training
technologies that
Project
Ujjwal
will enable
us Acquisition
to
stay ahead
of the curve Innovation
Talent
& Retention
Nanha
Munna
Express is the spring board to
andnew
product
development
Talent
Management

Project
Neev:
Enriching
Lives of the Specially
new process
and product
features.
Manufacturing
Units
& Project Site Practices
Abled
Intellectual
Property Rights (IPR)
NGO expositions
Customer
Delight
Infrastructure
support
Customer
Health & opportunities
Safety
Creating livelihood
Product
labelling
Disability
Sensitisation
Statutory
and
codes
Prayas - Aregulations
special effort
forvoluntary
special people

Best Practices @ L&T

Commitment to External Initiatives L&T follows the Global Reporting Initiative (GRI)
framework and the National Voluntary Guidelines (NVG) to report on its economic,
environmental and social performances. Additionally, L&T comply with United Nations
Global Compact (UNGC), applicable International Labor Organization (ILO) conventions and
other United Nations (UN) directives that cover:

Statutory and regulatory compliance.

Business ethics.
Fair and equal opportunity to all employees.
Employee development through training.

Labour camps at construction sites.

Medical facilities at units, offices and project sites.
Steps to measure, monitor and conserve materials &
energy.

Audits

Corporate Audit Department comprises professionals - CAs, engineers and system

experts qualified and equipped to measure and review performance. The Internal
Audit function is ISO 9001:2008 certified. The Head of Corporate Audit services reports
jointly to the Group Executive Chairman and the Chief Executive Officer & Managing
Director. The staff of L&Ts Corporate Audit Services is periodically rotated.

Code of Conduct and Risk Management Framework

All Board members and Senior Management personnel* of the Company abide by L&Ts Code
of Conduct. This ensures compliance with the provisions of the revised Clause 49 of the listing
agreement with stock exchanges. Policies, procedures and guidelines have been formulated to
clearly lay down norms on action and conduct of our employees.

Securities Dealing Code

Protection of Women's Rights in the
Workplace
Corporate IT Policies

The Code of Conduct is available on the corporate website, www.larsentoubro.com.

The annual declaration regarding its compliance is also given by the CEO & Managing
Director.

Security Manual and Procedures

Whistle Blower Policy
Guidelines on Corporate
Communications

Internal Control System

L&Ts corporate policy on internal control provides a framework for identification,

rectification, monitoring and reporting of internal control weaknesses in the organization.
Additionally, the company periodically engage independent professional firms to review
the effectiveness of control processes in businesses and support functions. All significant
observations and corrective actions taken are reviewed by the management

Sustainability Approach

Energy Conservation
Greenhouse Gas (GHG) Mitigation
Water Conservation
Material Management

Inculcating a safety culture Enhancing the Health Index of the Organization Continuing
Social Interventions

Alignment with Governmental Initiatives for Eco-Sustainability

The Company is steadfast towards National Action Plan on Climate Change

(NAPCC) and its 8 missions instituted by Government of India.

SOLAR
ENHANCED ENERGY EFFICIENCY
SUSTAINABLE HABITAT
WATER

SUSTAINING THE HIMALAYAN

ECOSYSTEM
GREEN INDIA
SUSTAINABLE AGRICULTURE
STRATEGIC KNOWLEDGE FOR CLIMATE
CHANGE

L&T continues to invest in technologies towards increasing energy efficiency, enhancing

renewable energy usage and water footprint reduction etc. L&T also helps its customers
to reduce their energy and carbon footprint through green product and processes
portfolio. This not only helps in reducing the emissions but also helps to progress on low
carbon economy path.

L&T actively participates in the Corporate Indias policy making process through its membership @
Confederation of Indian Industry (CII)

Indian Electrical and Electronics Manufacturers

Federation of Indian Chambers of Commerce
Association

National Safety Council

and Industry (FICCI)
The Associated Chambers of Commerce and

Indian Institute of Chemical Engineers (IIChE)

British Safety Council

Industry of India (ASSOCHAM)
Bureau of Indian Standards

Department of Science & Technology,Govt. of

India
Construction Industry Development Council
(CIDC)

CSR @ L&T

There cannot be an India for the rich, and another India for the rest. Unity
between extremes is inherently fragile, and even if it were to hold, would be
unacceptable to any organization with a social conscience .

- A. M. Naik, Group Executive Chairman, L&T - India

Larsen & Toubro Limited fosters a culture of caring, trust and continuous learning while
meeting the expectations of all stakeholders and society at large. As a responsible
Corporate Citizen, the Company contributes towards inclusive growth by empowering
communities and accelerating development.

The CSR Governance structure comprises of the

Board
CSR Committee

L&T Discloses the content of the CSR Policy in its report and place the Policy on the
Companys website as prescribed under Section 135 of the Companies Act 2013 read
with the Companies (CSR Policy) Rules, 2014 .
Main focus areas of CSR activities at L&T are:
Water & sanitation
Education
Health

Apex Sustainability & CSR (SCSR)

team,
IC SCSR Teams and Unit SCSR Teams

Skill building

Mentoring at L&T14 April

2016 L&T Mentors connect with
underprivileged children.
Single Teacher School A
Second School11 January
2016
Single Teacher School is a
concept multi grade class
education for drop-outs.
L&Teers at the heart of
L&T
31 March 2015
L&T has a rich history of
employee volunteering and
community involvement.
Swachh Bharat Abhiyan
Larsen & Toubro as CSR
initiative of building 5000
toilets @Swachh Bharat
Abhiyan.

India's Best Companies for CSR 2014:

Larsen & Toubro is engineering its way to CSR
-The Economic Times

The Sun Glows, Water Flows

05 November 2014
L&Ts new solar water pumping
system installed free of cost at
various villages.
Power to the People 04
November 2014
Power to the People is