L&T Finance : LTFH – Business Responsibility Report FY 2021-22







BUSINESS RESPONSIBILITY REPORT

L&T Finance Holdings Limited is the holding company for Larsen & Toubro Group’s financial services business. L&T Finance Holdings referred as `Company’) is regarded as one of India’s leading and well-diversified NBFCs. L&T Finance Holdings through its subsidiaries (collectively referred to as ‘LTFH’) has a strong presence across lending and non-lending businesses. As on March 31, 2022, the lending business included Rural Finance (including Farm Equipment Finance, Two-Wheeler Finance, Micro Loans and Consumer Loans), Housing Finance (including Home Loans, Loan Against Property and Real Estate Finance) and Infrastructure Finance; and the non-lending business comprised Investment Management. These businesses offer diverse products and services that help customers secure both financing needs as well as their future, even in the un-served and under-served segments of the society.

Respect and integrity for its people, business and community has been at the core of the Company’s business Responsibility. The Company believes in conducting its business activities in a responsible and sustainable manner and strives to deliver long-term sustainable growth.

The Business Responsibility Report (BRR) is aligned with National Voluntary Guidelines (NVGs) on Social, Environmental and Economic Responsibilities of Business, issued by the Ministry of Corporate Affairs (MCA), and is in accordance with Regulation 34(2)(f) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Company’s business performance and impact are disclosed based on the 9 principles as mentioned in the NVGs.

BUSINESS RESPONSIBILITY REPORT 2021-22

1

Section A: General Information about the Company

  1. Corporate Identification Number (CIN) of the Company:
    L67120MH2008PLC181833
  2. Name of the Company: L&T Finance Holdings Limited
  3. Registered Office:
    Brindavan, Plot No. 177, C.S.T Road, Kalina, Santacruz (East), Mumbai – 400098.
  4. Website:
    www.ltfs.com
  5. E-mailID: igrc@ltfs.com
  6. Financial year reported: March 31, 2022
  7. Sector(s) that the Company is engaged in (industrial activity code-wise):
    Non-Banking Financial Institution – Core Investment Company (NBFC-CIC)
    NIC Code – 64200
  8. List three key products/services that the Company manufactures/provides (as in balance sheet):
    The Company is registered as a Core Investment Company under RBI regulations and it is not carrying out with any business activity other than investment in its subsidiaries.
    The business carried out by the subsidiaries as on March 31, 2022 as follows:
    1. Rural Finance
    2. Housing Finance
    3. Infrastructure Finance
    4. Mutual Fund
  9. Total number of locations where business activity is undertaken by the Company:
  1. Number of international locations (provide details of major 5)
    Nil
  2. Number of national locations
    The Company (through its subsidiaries) caters to the business requirements of its growing customer base through a nationwide network of across 1,722 branches (including the corporate office and 1,524 Micro Loans branches)

10. Markets served by the Company Domestic (India)

Section B: Financial Details of the Company

1. Paid up Capital (R):

As at March 31, 2022, the paid-up equity share capital of the Company stood at R 35,96,98,74,030 comprising of 24,72,88,74,03 equity shares of R 10 each amounting to R 24,72,88,74,030 and 11,24,10,000 preference shares of R 10 each amounting to R 11,24,10,00,000.

  1. Total Turnover (R in Cr):
    For the financial year ended March 31, 2022, the total turnover of the Company on a consolidated basis was R 12,323.55 Cr and on a standalone basis was R 350.46 Cr.
  2. Total profit after taxes (R in Cr):
    For the financial year ended March 31, 2022, the net profit of the Company on a consolidated basis was R 1,070.11 Cr and R 218.18 Cr on a standalone basis.
  3. Total spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%):
    The Company was not required to contribute any amount towards CSR activities during FY22 as per the provisions of Section 135 of the Companies Act, 2013 (“the Act”).
    Across all its subsidiaries, the overall spend for the CSR activities was R 24.44 Crore for FY22, including additional spend of R 0.07 Crore, which will be offset from FY23 CSR budget.
  4. List of activities in which expenditure in 4 above has been incurred:
    The subsidiaries of the Company have primarily undertaken CSR activities in areas of Digital Financial Inclusion, Disaster Management and other projects like Road safety and Healthcare.

Section C: Other Details

1. Does the Company have any subsidiary company/ companies?

The Company conducts its business through its subsidiaries. As at March 31, 2022, the Company had 8 subsidiaries (including step-down subsidiaries).

2

BUSINESS RESPONSIBILITY REPORT 2021-22

  1. Do the Subsidiary Company/Companies participate in the BR initiatives of the parent company? If yes, then indicate the number of such subsidiary company(s):
    The Company is a holding company and as such carries out its business through its wholly-owned subsidiaries (directly or indirectly). The policies and processes adopted across all the companies within LTFH and subsidiaries are uniform, except as required, basis applicable regulations and / or market practice. Thus, the subsidiary companies participate in the BR initiatives of the parent company.
  2. Do any other entity/entities (e.g., suppliers, distributors etc.) that the Company does business with participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More than 60%]
    The Company endeavors to encourage its suppliers/ distributors (wherever possible) to participate in the initiatives towards business responsibility and to adopt practices which would help them to carry out business in a fair manner.
    With an intent to encourage ESG consciousness amongst its value-chain partners, the Company has implemented the Third-Party Code of Conduct and also strengthened the contractual obligations. The Code covers all Third Parties including vendors, borrowers, goods and service providers, persons holding business relationship or an arrangement with the Company, including their directors, officers,

2. Principle-wise (as per NVGs) BR Policy/policies: a. Details of compliance (Reply in Y/N)

affiliates, associates, sister concerns, successors, agents, representatives and nominees. The clauses promoting adoption of the Code are included in Third Party agreements. The Third-Party Code of Conduct is available on the website of the Company at www.ltfs.com.

Section D: Business Responsibility Information

1. Details of Director responsible for BR:

  1. Details of the Director responsible for implementation of the BR policy/policies
    The details of CSR and ESG Committee (CSR Committee was renamed as CSR and ESG Committee w.e.f. April 24, 2021) and their roles and responsibilities are elaborated in the CSR Annual Report and Corporate Governance Report forming part of Annual Report.

Sr.

Particulars

Details

No.

1

DIN Number

03545900

(if applicable)

2

Name

Mr. Dinanath Dubhashi

3

Designation

Managing Director &

Chief Executive Officer

4

Telephone no.

022 6212 5000

5

Email id

igrc@ltfs.com

  1. Details of the BR head: Ms. Apurva Rathod, Group Head – Secretarial & CSR and Sustainability

Sr.

Questions

P1

P2

P3

P4

P5

P6

P7

P8

P9

No.

1.

Do you have a policy / policies for

Y

Y

Y

Y

Y

Y

Y

Y

Y

2.

Has the policy being formulated in consultation with

All policies have evolved over a period of time through

the relevant stakeholders?

consultation with stakeholders including benchmarking with

the industry players and where required, external consultants.

3.

Does the policy conform to any national / international

The policies adopted by the Company are in conformity with

standards? If yes, specify? (50 words)

the applicable rules and regulations.

4.

Has the policy being approved by the Board? *

Policies wherever stated have been approved by the Board

Is yes, has it been signed by MD / owner / CEO /

/ Committees of the Board / Senior Management of the

Company and followed across entities within LTFH. Further,

appropriate Board Director?

the policies are subject to regular review (at least once a year)

by the Board / Committees of the Board / Senior Management.

5.

Does the company have a specified committee of the

Y

Y

Y

Y

Y

Y

Y

Y

Y

Board/ Director/ Official to oversee the implementation

of the policy?

6.

Indicate the link for the policy to be viewed online.

As per regulatory requirements the policies of the Company

have been uploaded on the website of the Company i.e.,

www.ltfs.com/investors.html

7.

Has the policy been formally communicated to all

Y

Y

Y

Y

Y

Y

Y

Y

Y

relevant internal and external stakeholders?

8.

Does the Company have in-house structure to

Y

Y

Y

Y

Y

Y

Y

Y

Y

implement the policy / policies?

9.

Does the Company have a grievance redressal

Y

Y

Y

Y

Y

Y

Y

Y

Y

mechanism related to the policy / policies to address

stakeholders’ grievances related to the policy / policies?

10.

Has the Company carried out independent audit/

Y

Y

Y

Y

Y

Y

Y

Y

Y

evaluation of the working of this policy by an internal

or external agency?

BUSINESS RESPONSIBILITY REPORT 2021-22

3

  1. If answer to the question at serial number 1 against any principle, is ‘No’, please explain why: Not Applicable

3. Governance related to BR:

  1. Indicate the frequency with which the Board of Directors, Committee of the Board or CEO assess the BR performance of the Company. Within 3 months, 3-6 months, Annually, more than 1 year.
    Sustainability is at the heart of LTFH’s business and operations. The Company has established the practice of focused discussions on ESG performance in every quarterly Board meeting as well as through periodic newsletters. The CSR and ESG Committee reviews the ESG performance on an annual basis. ESG performance is also reviewed on a regular basis by the Company’s leadership, including by the Managing Director and CEO.
  2. Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is published?
    The Company publishes a BR Report (BRR) in accordance with the guidelines specified by SEBI. The BRR is reviewed and published on an annual basis.
    Additionally, on a voluntary basis, the Company has been publishing Sustainability Report annually since FY19. For the FY22, the Company will be publishing the Integrated Report (IR). This Report has been prepared in accordance with the principles of International Integrated Reporting Council’s (IIRC’s) Framework. The disclosures have been made in accordance with the Global Reporting Initiative (GRI) Standards: Core option. Additionally, the Integrated Report has also been assured by an external independent firm i.e., Ernst & Young Associates LLP.

The BRR and the Integrated Report can be accessed at https://www.ltfs.com/csr.html and the link of the same has been provided in the Annual Report of the Company for easy reference.

Section E: Principle-Wise Performance

Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency and Accountability

LTFH, is a part of the eight-decade plus old L&T Group, where highest level of governance is practiced. LTFH upholds the value systems and integrity that have been the hallmark of L&T. Governance is the foundation driving sustainability, innovation and business performance at

LTFH. The Company has constantly strived to achieve benchmarks of excellence in corporate behaviour by implementing highest standards of systems and processes.

Corporate governance is central to the Company’s sustainability performance. Robust corporate governance plays a key role in creating long term stakeholder value. The governance structure effectuates the Company’s action-oriented culture of ‘Results’ not ‘Reasons’ and is based on the foundation of Assurance. The Company’s core values of Pride, Integrity, Discipline and Ambition are an integral part of the Company’s governance, culture, policies, practices and relationships with stakeholders.

The Board actively guides and helps reaffirm the values of LTFH. The corporate governance structure at LTFH harmonises the interests and expectations of stakeholder groups such as shareholders, regulators, employees, customers and the broader community, in developing and distributing value. LTFH’s corporate governance framework is driven by the sharp focus on implementing best practices and complying with the applicable regulatory requirements.

The Company is committed to highest levels of ethics in its operations and business. LTFH has created an enabling policy environment that promotes ethical conduct. The policies of LTFH clearly lay out the expectations from stakeholders and redressal mechanisms in case of any grievance or breach.

Code of Conduct

LTFH has a publicly available Employee Code of Conduct covering aspects like corruption and bribery, discrimination, confidentiality of information, conflict of interest, antitrust/ anti-competitive practices, money laundering and/or insider trading/dealing, environment, health, and whistle blowing. The Code of Conduct provides guidelines to be followed by employees in identified areas where Conflict of Interest may occur. These include professional engagement, personal relationships and use of company assets to name a few. No cases related to conflict of interest were identified or reported during the year and thus, there were no fines and penalties paid to this effect.

Every employee is required to attest to indicate that s/he has read and signed, either in writing or electronically, a document acknowledging that s/he understands and will comply with the Company’s Code of Conduct. Every new joiner goes through a training of the Code of Conduct during their induction programme. The existing employees in non-frontline roles mandatorily go through the Code of Conduct e-learning module every year and undertake an assessment post training.

At LTFH, employees are expected to diligently adhere to the guidelines and principles as stated in the Code of Conduct. In the event of any breach, the immediate supervisor or branch head that an employee reports to is expected to undertake employee counselling for initiating corrective action. Penalty, depending upon the nature and seriousness of breach or violation, may range from

4

BUSINESS RESPONSIBILITY REPORT 2021-22

censure to termination of employment. Employees have to report any instances of breach/ violations to the Code via email at code@ltfs.com. LTFH has constituted a CoC Committee to administer the compliance of the Code of Conduct.

During FY22, there were no instances of breaches to the Code of Conduct. The Company did not incur any fines or settlements related to anticompetitive or anti-trust practices.

Vigil Mechanism and Whistle-Blower Policy

The Company has a structured whistle blowing mechanism, which enables employees to report without fear, any misconduct or unethical practice, that may adversely impact the Company’s reputation or its financials. The Vigil Mechanism Framework is approved by the Board of LTFH and is applicable to all employees, directors and service providers of the Company. Also, as part of this policy, any incidents can be reported by sending an email to whistleblower@ltfs.com.

Anti-Corruption Policy

LTFH has a publicly available Anti-Corruption Policy, which highlights the Company’s commitment to applicable laws, rules and regulations pertaining to interactions with government officials related to the LTFH’s business. The Policy is applicable to all directors, officers and employees, as well as outside parties acting on behalf of LTFH and its subsidiaries.

The Policy helps the Company identify and avoid situations that could potentially violate ant-ibribery and anti- corruption laws or create any appearance of impropriety.

While the Anti-Corruption policy has provisions for charitable donations, it clearly states that political contributions should necessarily follow applicable laws. LTFH imposes fines and penalties on employees who are in contravention of the Anti-Corruption Policy. During FY22, LTFH reported no cases of bribery or corruption.

Tax Regulations

LTFH is committed to comply with the tax laws and regulations in the countries in which the Company operates. LTFH endeavours to undertake all applicable statutory tax compliances within stipulated timelines and make adequate disclosures related to the same. LTFH may legitimately use tax incentives and exemptions offered by governments. LTFH is not in contravention of any regulations, the non-compliance to which could adversely impact the continuity of its operations.

Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle

Sustainability is at the core of LTFH’s business and operations. The Company is committed to integrating ESG considerations in its lending processes across the credit lifecycle (i.e., screening, due diligence, loan sanction, monitoring), and in-turn enabling investments

into sustainable economic activities and projects. The ESG Policy of LTFH has set the considerations to be taken into account while lending. These considerations cut across key businesses of the Company including Infrastructure, Real Estate, SME and retail businesses.

In line with the key considerations for Infrastructure Finance segment, the Company focuses primarily on financing long term sustainable projects in renewable energy, roads, transmission, airports, and city gas. For all its financing activities funded through proceeds from AIIB and IFC, LTFH conducts due diligence for the investment/project to ensure compliance with applicable environmental, health, safety and social laws, regulations and standards as well as ratified international conventions. During FY22, the Company financed 2,909 MW of wind and 3,024 MW of solar projects, which resulted in over 2 million tCO2e emissions being avoided.

The Company provides Micro Loans to women who run agriculture and allied activities, manufacturing, trading or services related microenterprises. Based on the customer profile, the average ticket size is approximately R 45,000. These loans enable women to significantly increase their contribution to household income and achieve better dignity of life. The Company further supports the customers with repeat loans based on need and repayment capacity, thereby driving enhanced livelihood. Farm Equipment Finance has helped in mechanisation of agriculture, promotion of entrepreneurship, higher convenience and greater income generating capabilities for its customers.

LTFH has also been promoting equitable development through its retail financing strategy. 50% of the Company’s loan book was from low-income states as on March 31, 2022. In order to promote sustainable transportation, the Company has started funding EV two-wheelers under its Two-Wheeler financing business. In FY22, LTFH financed 5,450 EV two-wheelers.

The Company proactively undertakes education initiatives for customers so as to empower and enable them to take right financial decisions. The Company has developed a customer awareness training module and made the same available publicly on its website (www.ltfs.com) for the benefit of its customers. During the year, LTFH carried out a number of social media campaigns for customer awareness and sensitisation. These include posts on financial literacy, road safety, health, environment conservation etc. The Mutual Fund business also carries out several investor awareness programmes so as to enable informed choices in financial services.

During FY22, LTFH adopted Third- Party Code of Conduct covering all vendors, borrowers, goods and service providers and persons holding business relationship with the Company. The Code sets expectations from its value chain partners with respect to Responsible business conduct, Environmental stewardship and Socially Sustainable Practices. LTFH will strive to sensitise its value chain partners on the Code of Conduct and ESG related best practices.

BUSINESS RESPONSIBILITY REPORT 2021-22

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

L&T Finance Holdings Limited published this content on 15 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 June 2022 07:12:01 UTC.

Publicnow 2022

All news about L&T FINANCE HOLDINGS LIMITED

Sales 2022 69 647 M
893 M
893 M
Net income 2022 12 157 M
156 M
156 M
Net Debt 2022

P/E ratio 2022 14,2x
Yield 2022 0,98%
Capitalization 171 B
2 197 M
2 197 M
Capi. / Sales 2022 2,46x
Capi. / Sales 2023 2,23x
Nbr of Employees 22 532
Free-Float 31,2%

Chart L&T FINANCE HOLDINGS LIMITED



Duration :


Period :




L&T Finance Holdings Limited Technical Analysis Chart | MarketScreener

Technical analysis trends L&T FINANCE HOLDINGS LIMITED

Short Term Mid-Term Long Term
Trends Bearish Neutral Neutral



Income Statement Evolution

Sell

Buy

Mean consensus BUY
Number of Analysts 10
Last Close Price 70,45 INR
Average target price 97,90 INR
Spread / Average Target 39,0%


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *