L&TSustainabilityReport 2015 PDF

The Journey Begins
L&T Hydrocarbon Engineering

L&T House, Ballard Estate, Mumbai 400 001.
SUSTAINABILITY REPORT 2014-2015

Printed on FSC certified, recycled paper made from 50% post-consumer waste using 100% green energy.
With just a year behind us

as an independent company
our sustainability strategy for the future
will involve strengthening our roots
to begin the journey ahead.
CONTENTS
01
1
Message from the
Managing Director
LTHE profile
03 Organisational Structure
04 Our Business Portfolio
11
13
3
About the Report
Economic
38
Environment
People
42
54
10
4
Communities
Stakeholder Engagement
66
11
5 Awards & Accolades
Business Excellence
16
17 Business Capabilities
23
Product Responsibility
26 Sustainability Roadmap
28 Management Approach
32
6
Governance
12
Acronyms
75
13
Assurance Statement
14
GRI Index
74
77
76
SUSTAINABILITY REPORT 2014 - 2015
MESSAGE FROM THE CEO & MD | 01
Message from the

CEO & MD
Subramanian Sarma
CEO & Managing Director
Dear Stakeholders,
I am very pleased to present L&T Hydrocarbon
Engineerings Sustainability Report for the year
2014-15. The report indicates our triple bottom line
performance for the year and offers the path forward
for the journey ahead.
As a newly-formed subsidiary carved out of the L&T
conglomerate, we aim to transition from recently
attained autonomy to a steady growth as an
independent entity. The journey we take to achieve
this growth, however, will be accountable, inclusive
and sustainable and with emphasis on our core
values. It is these values that will be mirrored through
our sustainability strategies in general and our
reporting process as well.
With proactive government support and growing
demand for new and refurbished infrastructure
worldwide, the Hydrocarbon sector is poised to grow
manifold in the years to come. In response, LTHE aims
to increase our presence in domestic markets in India
as well as leverage our capabilities to capitalize in the
new geographies, internationally. During the year,

L&T Hydrocarbon Engineering has received its
largest international EPC order from Kuwait Oil
Company to execute a contract for a Gas Gathering
Center in North Kuwait. We are also currently
executing Indias first Coal Bed Methane field
development project. During the year, L&T
Hydrocarbon has successfully commissioned the
largest single train Paraxylene complex in India,
consisting of 9 process units.
As sustainability reporting takes a leap to GRI G4, it
makes companies responsible for their business
partners too. In line with the 4th generation
reporting framework, going forward we aim to
strengthen our supply chain management in the
long term and integrate GRI G4 requirements into
business operations. We have also responded to the
clarion call for materiality issued by GRI, by
undertaking an in depth analysis of issues material
to the different stakeholders of the company, with an
assurance that this exercise will not be limited only
to reporting but also our actions.
In the varied geographies we operate in, we

endeavor to capitalize on local talent creating
avenues for community development and spurning
growth of local businesses. We are also mindful of
our environmental performance, specifically our
energy consumption, not just within our operations,
but also of the products and services we offer,
striving to meet current and future global standards
for efficient use of energy. This commitment has
enabled us to bring about a 27% reduction in our
energy intensity and 32% reduction in water
consumption intensity.
Our Safety innovation school, our zero-incident
credo as well as the awards we have won for
outstanding performance in the realm of
occupational safety are testament to our
commitment to safety as a core value of the
organization.We are also committed to continual
improvement of our business processes by using
internationally accepted standards with our
corporate policy reflecting an Integrated
Management System for Quality, Environment,
Occupational Health & Safety, IT Security and
Human Resources.
Our commitment to excellence has been rewarded
through the many accolades we have received
during the year including the Project of the Year
Award, instituted by the Project Management
Institute India for the Process-cum-Living Quarter
Platform (PLQP) Project of Gujarat State Petroleum
Corporation as well as the British Safety Council
Sword of Honour, the pinnacle of achievement in
the world of health and safety management.
MESSAGE FROM THE CEO & MD | 02
With the passage of the Companies Act, 2013, the

mandate for corporate social responsibility (CSR) has
been formally introduced to the dashboard of Indian
companies. Corporations have responded positively
to the reform measures undertaken by the
government with wide interest across the public and
private sector, from both Indian and multinational
companies. Guided by our commitment to growth
that is inclusive, our CSR agenda aims to contribute
to the Building of Indias Social Infrastructure.
In the years to come we are determined to act
towards the needs of communities residing in our
vicinity to bring all round community development
with concerns like Health care, Skill building,
Education, Water & Sanitation,forming the
cornerstones of our CSR manifesto.
It is thus, our belief that there is no inconsistency in
running a financially viable company while being
socially and environmentally responsible. Moreover,
our belief that sustainability practices in both
internal and externals aspects, help strengthen the
core business through direct and indirect returns on
these socio-environmental investments, will help
carry us through any challenges or obstacles we may
face on the road to sustainability.
Subramanian Sarma
CEO & Managing Director
ORGANISATIONAL STRUCTURE | 03
ORGANISATIONAL
STRUCTURE
MD & CEO, L&T Hydrocarbon

Subramanian Sarma
Head HMD D + UPS

K Ravindranath
Executive Vice President
Head HCP D
T Chinappa
Executive Vice President
Head HCP+HMD(Intl)
Giovanni Cerchiarini
Head F&A
Venkatesh R
Vice President
Head-Corporate Centre & IT

Sanjay Kothary
Vice President
Head HR
Mr. MVN Rao
BUSINESS PORTFOLIO | 04
Business Portfolio
Earlier a business vertical of Larsen & Toubro,
L&T Hydrocarbon Engineering (LTHE) is now a
wholly owned subsidiary of the reputed
technology, engineering and construction
conglomerate. LTHE delivers design to build
engineering and construction solutions across
the hydrocarbon spectrum upstream, mid &
downstream and pipelines. With a network of
international teams, offices and facilities, the
Company is geared to respond to the needs of
its client base in multiple geographies - the
Middle East, Africa, CIS, India and South East
Asia. Offices in Abu Dhabi & Sharjah (UAE),
Al-Khobar (KSA), East Ahmadi (Kuwait), Doha
(Qatar), Kuala Lumpur and Jakarta provide
close customer interface.
As a dedicated subsidiary, LTHE is positioned
to sharpen its focus on service to its customer
base and enhance responsiveness in all its
engagements. The subsidiary continues to
draw on the parent company's organizational
strengths and experience. It conforms to
global standards and norms across all aspects
of corporate governance and HSE.
LTHE is structured into the following Strategic
Business Groups - Hydrocarbon Upstream,
Hydrocarbon Mid & Downstream and
Hydrocarbon Construction & Pipelines
Some Facts in Figures

HYDROCARBON UPSTREAM
55 Wellhead platforms
41 Process platforms
11 Gas compression platforms
134 Platform modifications
700km Subsea pipelines
9 Living quarters
3 Drilling rigs
HYDROCARBON MID &
DOWNSTREAM
12 Hydrogen generation units
16 Sulphur recovery units
4 MSQ Upgradation projects
3 CCR projects
4 Petrochemical Complexes
7 Diesel Hydro treating projects
15 Modular process plants
76 Cracking furnaces & reformers
HYDROCARBON
CONSTRUCTION & PIPELINES
4500km+ pipeline projects
9 Oil & Gas Terminals
LTHE operates across the

Hydrocarbon Value Chain
HYDROCARBON UPSTREAM
We offer lump-sum turnkey EPCI services encompassing
the entire value chain from oil & gas production to
processing.
Offshore Platforms
Modules & Pre-assembled Units
Drilling Rigs & Floaters
Redevelopment / Upgradation Projects
Subsea Pipelines
Subsea Systems
HYDROCARBON MID & DOWNSTREAM

We offer turnkey solutions in the refining,
petrochemicals, fertilizer and gas processing
sectors. We also build and deliver modular
process plants.
Petroleum Refining
Gas Processing
Fertilizer
Petrochemicals
Liquefied Natural Gas (LNG)
Cross-country Pipelines
Process Plant Construction
HYDROCARBON CONSTRUCTION & PIPELINES
We offer turnkey construction of refineries, petrochemical,
chemical & fertiliser plants, gas gathering stations,
underground cavern storage systems for LPG covering civil,
structural, piping, equipment and heavy lift works. We also
execute cross-country pipelines and oil/gas terminals on a
lump-sum turnkey basis.
HYDROCARBON
UPSTREAM
HYDROCARBON MID
& DOWNSTREAM
Design Engineering
A subsidiary L&T-Valdel
Engineering has a rich legacy of
providing technological services in
the upstream oil & gas industry.
Comprehensive engineering
capabilities cover the complete
project lifecycle: concept studies,
FEED, basic engineering, 3D
model-based detailed engineering,
special studies including safety, risk
assessment, pre-service
engineering and commissioning
assistance.
Fabrication Facilities
In-house fabrication with the

attendant advantages of flexibility,
control and cost competitiveness
gives LTHE an edge in large and
complex projects. Three
state-of-the-art fabrication facilities
(Hazira, Kattupalli & Sohar) with a
total capacity of around 150,000
MTPA supplies process modules,
heavy platforms and oil rigs and
offer year round delivery.
Installation
The Companys offshore installation

capabilities are enhanced through a
joint venture with Sapura Kencana
Petroleum Berhad of Malaysia. The
JVs 3000-tonne Heavy
Lift-cum-Pipe Lay vessel is on call
for key installation projects.
Client Base
The client base includes ONGC,

GSPC, ADMA-OPCO, BG, Qatar
Petroleum, Maersk Oil Qatar, PTTEP,
PETRONAS, Bunduq and Songas
HYDROCARBON
CONSTRUCTION & PIPELINES
Design Engineering
Design Engineering
L&T Chiyoda - a joint venture with

Chiyoda of Japan complements
in-house design & engineering
centres. Over 1500 experienced
professional engineers work on
state-of-the-art tools/software like
HYSIS, PDS, PDMS, SPPID,
STAADPRO, TEKLA structures to
address the complete spectrum of
process and detailed engineering.
Project Management Set-ups
Dedicated project specialists based

at offices and design facilities in
India (Mumbai, Vadodara, and
Faridabad) as well as in UAE and
Saudi Arabia are geared to respond
to the requirements of customers in
the GCC.
Client Base
Within India, the Companys client

base includes major national oil &
gas, fertilizers and petrochemicals
producers including BPCL, CPCL,
HMEL, HPCL, IOCL, ONGC, OMPL,
RIL, MRPL, GNFC, NFL, OMPL, RIL,
etc.
Our International client base
includes Saudi Aramco,
CHEMANOL, Kuwait Oil Company,
PETRONAS, Takreer, Petroleum
Development Oman Pertamina and
KNPC.
L&T-GULF Private Limited joint

venture with GULF Interstate
Engineering, Houston offers
engineering & consultancy services
for Onshore Hydrocarbon Pipeline
projects and Onshore Oil & Gas
Field Development Projects
covering design and engineering
services including feasibility
studies, basic engineering, FEED,
detailed engineering, project
management services, procurement
assistance and related services
Technology and Capacity

Building
We offer innovative construction

solutions with cutting-edge
technology through large and
sophisticated plant & machinery
asset base. The state-of-the-art
piping automation shops are
equipped with pipe fit-up, CNC and
orbital welding machines, GPS-aided-surveys, fully automated welding for pipelines and PUF-insulated
joint coating for pipeline projects.
We have set up auto re-bar shops
to enhance efficiencies at project
sites.
Client Base
Within India, pipeline projects have

been executed for Cairn, Hindustan
Mittal Energy Limited, Reliance
Industries Limited and leading public
sector players in the oil, gas and
fertilizer sectors. Our international
customers include GASCO, ADCO,
TAKREER, ADGAS, ADMA OPCO,
Borouge, Al Hosn, ENOC (UAE),
Saudi Aramco, SADARA & SATORP
(KSA), KNPC, KOC, KAFCO (Kuwait),
QP, Dolphin Energy (Qatar), PDO,
OGC and Oiltanking Odfjell
Terminals & Co.LLC (Oman).
L&T Hydrocarbon Engineering bagged the prestigious PMI Award, in category: Project of the Year
(Large, > Rs.1000 crores) for Process cum Living Quarter Platform PLQP Project
L&Ts Nationwide Network
NATIONWIDE NETWORK | 08
L&Ts GLOBAL PRESENCE | 09
L&Ts Global Presence
Modular Fabrication Yard, Sohar, Oman
Modular Fabrication Facility

Hazira, India

Kattupalli, India
Note: The multiple offices and project locations within India are not depicted in this illustration.
ABOUT
THIS REPORT
STAKEHOLDER
ENGAGEMENT
BUSINESS
EXCELLENCE
ECONOMIC
GOVERNANCE
ENVIRONMENT
PEOPLE
COMMUNITIES
GRI INDEX
ABOUT THIS REPORT | 11
About this Report

REPORTING SCOPE
REPORT BOUNDARY
This report covers LTHEs environment, economic and social performance

from the period of April 1, 2014 to March 31, 2015. This report has been
prepared in accordance with the Global Reporting Index's (GRI) Sustainability
Reporting Guidelines 2013 (G4.0 Core). A GRI Index is included, with
references to the required G4 indicators. The data management techniques
used in the report comprise of actual computations and estimations. Primary
data had been collated from a GRI data sheet, actual performance ratings,
interviews, stakeholder feedback; while the secondary data had been
gathered from annual financial reports, financial documents, HR records,
company policies, Code of Conduct documents and publications.
This report covers all LTHE project sites (Domestic and

International) and joint venture at MFY Sohar, Oman. The
scope includes offices in Powai, Vadodara, Faridabad,
LTV (Bangalore & Chennai), Fabrication Facilities at
Hazira, Kattupalli and Sohar, all domestic onshore and
offshore projects as well as all international projects sites
in Cluster I (U.A.E., Qatar and Oman).
ASSURANCE
LTHEs approach focuses on continuous assessments through internal and external
audits of operations and financial report. The report is in-line with GRI-G4.0 Guidelines
to measure sustainability performance. The limited assurance was conducted in
accordance with both the International Standard on Assurance Engagements (ISAE)
3000 and Type 2 moderate level as set out in the AA1000 Assurance Standard 2008,
covering qualitative and quantitative information. Their assurance statement,
describing the work undertaken and their conclusions, is included in this report. The
report is assured by Ernst & Young (EY), India.
Queries pertaining to the content

of the report may be addressed to:
Mr. Jeewan S. Mahadik,
Head - HSE and Sustainability LTHE ,
Powai Campus, Gate No.1, Saki Vihar
Road, Powai, Mumbai 400 072.
Email: jeewan_mahadik@lntenc.com
MATERIALITY
At LTHE, our success depends on knowing what matters to our stakeholders, and ensuring delivery for them to see value in our
engagements. In order to determine what aspects and issues are truly material to us, we conducted a detailed materiality review and
have incorporated inputs from multiple stakeholders. For the purpose of this report we will be focussing on the material aspects
identified as both having a High Impact on LTHE as well a High level of stakeholder concern.
1
HIGH
Social
1
2
3
Stakeholder Level of Concern
10
5
12
1
9
4
5
6
7
8
MEDIUM
4
2
6
6
8
7
10
4
2
Economic
1
2
11
12
10
3
4
5
11
6
7
LOW
8
9
10
LOW
MEDIUM
Impact on LTHE
Employee Engagement
Occupational Health & Safety
Training & Competency
Supplier Labour / HR Assessment
Labour Practice Grievance Mechanism
Human Rights Non-discrimination
Human Rights Grievance Mechanism
Local Communities
Compliance
Customer Health & Safety
Equal Remuneration for Women & Men
Quality
HIGH
Economic Performance
Indirect Economic Impacts
International & Domestic
Policies
System Efficiency
Forex Variation
Weather Conditions
Cost Over run
Crude Oil Prices
Commodity Prices
Changing Geographies
Environment
1
2
3
4
5
6
7
8
Materials
Energy
Reduction in Energy
Requirements of
Products/Services
Water
Biodiversity
Emissions
Effluents & Waste
Transport
ABOUT
THIS REPORT
STAKEHOLDER
ENGAGEMENT
BUSINESS
EXCELLENCE
ECONOMIC
GOVERNANCE
ENVIRONMENT
PEOPLE
COMMUNITIES
GRI INDEX
01 | Stakeholder Engagement
Making the journey an inclusive one
We consider stakeholder engagement to be an essential aspect of our sustainability
performance and believe that collaboration with stakeholders inside and outside our
business is critically important to our ability to develop new ideas and approaches, and
to find solutions. It is therefore essential to us, that we conduct regular dialogue with
employees, customers, investors, community leaders, and suppliers through formal and
informal channels.
STAKEHOLDER ENGAGEMENT | 13
Stakeholder Engagement
Stakeholder
Engagement Suppliers Meet 2015
We believe better communication with our stakeholders

invokes transparency, builds trust, and helps
relationships foster through better understanding.
In line with this belief, a Stakeholder Engagement Meet
for key suppliers of LTHE was organized, with a thrust on
sustainability in the supply chain and a focus on a GRI
G4 compliant supply chain.
our stakeholders expectations, in turn contributing to

superior strategy formulation, decision-making and
accountability. We have designed our sustainability
strategy to address our stakeholders priorities and
inputs. The figure below presents an analysis of our key
stakeholders and the material aspects across our value
chain.
In addition, we use multiple communication platforms

and engagement channels to gain deeper insights into
S
T
A
K
E
H
O
L
D
E
R
S
M
A
T
E
R
I
A
L
I
S
S
U
E
S
Govt. Agencies
Licensors
Consortium Partners
Senior Management
Investors
Employees
Engineering Centers
Consultants
Quality Team
3rd Party Inspectors
Logistics
Government
Banks & F&A
Licensor
Local Community
Sub-Contractor
PMC
Employees
Logistics
Licensor
Local Community
Regulatory Authority
Client
Vendors/ Suppliers
MARKETING
ENGINEERING
PROCUREMENT
CONSTRUCTION/
FABRICATION/
DELIVERY
POST DELIVERY
SERVICES
Economic
Performance
Market Presence
Indirect Economic
Impact
International &
Domestic Policies
New Geographies
Oil & Gas Pricing
Compliance
Materials
Energy Efficiency
of Products/
Services
Employment
Training &
Education
Compliance
System Efficiency
Procurement
Practices
Forex Variation
Commodity Price
Materials
Transport
Supplier Assessment
for Labor/human
Right Practices
Indigenous Rights
Compliance
Weather Conditions
Cost/Time Over run
Energy
Biodiversity
Emission
Waste
Transport
Labour Management
HSE
Equal Remuneration
System Efficiency
Subcontractor Asmnt.
Economic
Performance
System Efficiency
Training &
Education
Compliance
Customer HSE
Energy
Emissions
Materiality across our Value Chain
ENGAGEMENT FRAMEWORK
Our engagement framework is based on objectives like
proactive response, transparency, inclusiveness and trust.
The framework has been continually refined through detailed
stakeholder engagement exercises. The framework enables us
to customise our communication and undertake elaborate
engagement initiatives.
Client
Satisfaction
Surveys
Press
Releases
OUR KEY STAKEHOLDERS
Marketing
Collaterals
Stakeholder
Engagement
Session
Employees
It is essential for employees to feel engaged and to align
themselves with organizational goals thus creating a sense of
ownership and commitment. At LTHE, various modes of
interaction and communication have been institutionalised
over the years to enrich engagement with our employees.
HR Initiatives
Reach Out Sessions
Language Classes
Team Building
Workshops
Town Halls
Sodexo at your desk
Photography
Stay Interviews
Gallup Employee
Engagement Survey
Quizzes
Amantran
HR Excellence
Ru-Ba-Ru Interactions with Trainees
Customers
Interaction
through
Open House
Regular
Business
Interactions
Quarterly
Feedback
System
Employee
News
Bulletin,
Newsletters,
Magazines
Suppliers,
Dealers &
Stockists
Meets
Local Communities
We engage with members of the communities in and around
our campuses, yards and project sites through the ambit of our
corporate social responsibility initiatives. It is imperative to us
that our Corporate Social Responsibility (CSR) activities are
inclusive from the outset till implementation. We therefore
ensure participation of and input from local government
officials, small businesses, educational institutions as well as
local residents from our CSR project sites.
Our business involves long term engagement with our

customers. We are committed to providing value added
services to our customers throughout the project life-cycle. To
enhance our services, a feedback mechanism is in practice
through marketing teams. Significant involvement of senior
management through management review meetings with
customers helps meet high performance standards.
Vendors
LTHE has been steadfast in its commitment to work effectively
with its suppliers, who are our partners in success. To further
enhance stakeholder involvement in key decision making, a
Stakeholder Engagement Meet is organized to receive
feedback on our systems & processes, and to help us in
improving performance. Majority of our high value suppliers
have signed a sustainability based Supplier Code of Conduct.
VENDOR DEVELOPMENT
Greatweld Engineering, a valued vendor at LTHE, is in the business of
manufacturing electroforged gratings and Handrails, specifically for the
Oil & Gas, Refinery, Petrochemicals, Chemical & Power sectors.
LTHE has engaged Greatwelds services towards commissioning of the
HPCL-LOBS plant. Given the magnitude of the project, there were
challenges encountered by the vendor, in terms of design competencies.
These challenges, however, were converted into capability building
engagements for the Engineering and Facilities Team at Greatweld,
under the guidance of L&T Chiyoda.
Appreciation tree: An initiative to appreciate and acknowledge employees

for their selfless support towards colleagues and the organization
ABOUT
THIS REPORT
STAKEHOLDER
ENGAGEMENT
BUSINESS
EXCELLENCE
ECONOMIC
GOVERNANCE
ENVIRONMENT
PEOPLE
COMMUNITIES
GRI INDEX
02 | Business Excellence
Steering the journey sustainably
LTHE has time & again delivered successfully, both in India & overseas, a number of
large, critical & complex projects with its experienced and highly skilled project
execution team, world-class practices and culture of excellence. The keystones of the
LTHE business philosophy, which define our commitment to being a responsible and
sustainable business, include excellence in corporate governance, best in class safety
practices, state-of-the-art IT, on-time delivery and cost competitiveness.
BUSINESS EXCELLENCE | 17
Business Capabilities
LTHE provides world class solutions in engineering and construction within the hydrocarbon sector. In-house
capabilities are complemented by partnerships with global leaders, enabling the company to deliver
single-point solutions extending from front-end design through engineering, procurement, fabrication, project
management, construction, installation and commissioning.
The company has key capabilities including in-house engineering, R&D Centre, world class modular fabrication
facilities, an experienced & competent project execution team and a safe work culture.
PROCESS EXCELLENCE
High performance standards are achieved through constant
review and refinement of our processes. Highly efficient
solutions are consistently delivered through process and review
analysis. We follow five years strategic planning process with
midterm reviews for course correction and currently LAKSHYA
2016' strategic plan provides overall business directions. Various
strategic initiatives have been identified and implemented as a
part of this plan.
Lean Agile Knowledge Speed Humane Yielding Value Action
TECHNOLOGY CENTRES
Our R&D Centre has been functioning as a Center of Excellence
in Advanced Engineering for over four decades. R&D expertise
and skills translate into a competitive advantage across all our
businesses. It enables to select the right technology and
products, optimize process equipment design, solve product or
process-related problems and achieve guaranteed performance
of the plants and installations. The R&D Center covers key
technology domains such as Chemical Engineering, Thermal
Engineering, Mechanical Engineering, Machinery & Systems
engineering, Material Science & Corrosion Engineering and
Water Technologies. The Upstream Technology Centre identifies

and provide further development required for the upstream oil
& gas sector. It is engaged in a continuing quest to engineer
value and provides support to critical areas in all offshore
structures from fixed offshore platforms and modules to
drilling rigs, floaters and subsea systems.
EXCELLENCE IN PROJECT MANAGEMENT

Our integrated IT-enabled Project Management approach
enhances efficiency and offers a virtual single-office operation. It
uses SAP ERP and Primavera to effectively manage its business
operations. Its Knowledge Management & Document
Management Portal is managed through Microsoft SharePoint.
Key business processes starting from Engineering to
Construction are IT-enabled. We adopt a dedicated task force
approach for execution of projects with resources drawn from
various capability centres. The project task force comprising
multi disciplinary, high-calibre engineering from our
engineering hubs review the engineering inputs provided by the
customer / process licensor and prepare a design basis for
subsequent engineering work.
LTHE has consistently been recognized industry- wide, for its
excellence in project management. We won the Project
Management Institutes (PMI) Mega Project of the Year 2014 Award for its East Coast Process Platform Project, under the large
category. Additionally, we also won the runner up award under the same category for the Mangalore Refineries & Petrochemicals
Limited Aromatics Complex
LTHE team accepting the PMI runner-up award

for Mega Project of the year 2014
RISK AND OPPORTUNITY

Economic, environment and social risk is inherent to our businesses. Turbulent times make the risks even more pronounced for
industry as well as economy. We have taken comprehensive measures to mitigate important risks. A precautionary approach is
adopted to review all major risks and opportunities, before entering into business commitments. We also continuously review risks for
major projects under execution. A structured Risk Management Information System helps minimize possible risks.
RISK
STRATEGIC & OPERATIONAL INITIATIVES
Limited Domestic Opportunities
Continue to actively pursue international opportunities with a particular

thrust on the Middle East and sharpening cost competitiveness through
enhanced pre bid engineering.
Cost Overrun
Use of robust project management & risk management tools for operational
excellence towards cost control & schedule adherence.
Mitigating risk by hedging or by taking suitable covers based on foreign
exchange inflow and outflow
Knowledge Management Capturing & implementing learning, particularly
from international projects in ongoing & future projects.
Strengthening supply chain for international projects.
Change in domestic and

international policies
Provide inputs on critical issues on policy formulation in appropriate forums.

Addressing local needs towards fulfilling requirements of in country value
towards social engagement.
Protection of Health, Safety & Environment
Strengthen Construction Safety Management with continued thrust on

sustained safety culture,human rights & wellness initiatives
Talent Management
Fine tuning human resource policies to facilitate talent acquisition &

retention.
OPPORTUNITY
STRATEGIC & OPERATIONAL INITIATIVES
Tap Global hydrocarbon opportunities
Pursue growth opportunities by exploring entry into adjacent lines of business

as well as Geographic Adjacencies to select international geographies.
Modularization
Modularization in onshore process plants and enhancing capacity utilization

of modular fabrication yards.
Technology enhancement
Further enhancing alliance with Process Licensors for entry into new
hydrocarbon segments.
Develop capabilities for International

projects.
Developing international multicultural organization.
QUALITY ASSURANCE
The Quality Assurance & Inspection (QA&I) team at LTHE
ensures projects are executed to the satisfaction of the client.
This entails compliance to agreed specifications; ensuring both
Quality Assurance (QA) and Quality Control (QC) of projects.
QA&I generate the Project Quality Plan (PQP), Inspection & Test
Plans, review manufacturing processes, appoint third-party
inspection agencies, organize inspections and provide technical
clearance of project supplies. QA&I also carry out internal audits
of functional departments for compliance to PQP and Corporate
Manual.
At LTHE we are committed to continual improvement of our
business processes by using internationally accepted standards.
Our corporate policy reflects an Integrated Management System
for Quality, Environment, Occupational Health & Safety, IT
Security and Human Resources, while implementing globally
recognized standards such as ISO 9001 / ISO 29001, ISO 14001,
OHSAS 18001, ISO 50001, ISO / IEC 27001 and SEI - CMMI Level
5. A centralized Management Systems Cell administers these
functions. Internal audits and management reviews at various
levels ensure compliance. We participate in the National
Committee and in the International Organization for

Standardization ISO/TC 176 and ISO/IEC/JTCI/SC 27
development. L&T also assists ISO in validating the revisions of
ISO 9000 series as well as ISO / IEC 27001 series.
CUSTOMER SATISFACTION
Customer satisfaction is a focal point to all our services and
operations and a measure of success for business performance.
All our efforts are in providing services to our customers at the
highest possible quality and standards. We have a highly
effective customer feedback system to ensure proper means of
communication. We periodically obtain customer satisfaction
feedback through surveys and focus groups. Based on the
complaint/feedback, we conduct analysis and implement the
necessary corrective measures.
We also takes customer privacy very seriously. Employees at
LTHE are strictly required to abide with the group companys
confidentiality policy. There have been no complaints against
breaches in customer privacy or loss of customer data during
the reporting year.
PROJECT HIGHLIGHT
Mega Reactor & Regenerator Section for Indias largest FCCU
The FCCU (fluidized catalytic cracking unit) at Paradip, Odisha, is Indias largest greenfield refinery
of 15MMTPA. The Mega Reactor and Regenerator Package (RRPA) was undertaken for Indian Oil
Corporation Limited (IOCL) at Paradip, Odisha.
This project is important for two reasons: its size and its technological complexity. At 4.17 MMTPA,
the FCCU is Indias largest among PSU refineries in terms of capacity and complexity. Additionally,
it is also the first Indian technology for FCC INDMAX against international benchmarks.
THE SCOPE
The wide scope of the project ranged from detailed engineering
to delivery; route surveys for over-dimensional consignments,
transportation of equipment & material, site installation,
obtaining statutory approvals, pre commissioning,
commissioning, performance guarantee test runs (PGTR), total
project management and handing over the project on lump sum
turnkey basis.
UNPRECEDENTED SCALE
Complex to the core, the plant boasts of several huge critical
items. The 1135 tonne reactor and 1685 tonne the regenerator
with multiple cyclones was fabricated at L&T-Heavy Engineerings world-class Modular Fabrication Facility at Hazira.
GLOBAL SOURCING
A major logistics challenge was transporting the regenerator
and reactor top sections from L&T Hazira to Paradip
Refinery in a vertical position. Procurement involved many
firsts. Huge, state-of-the-art equipment and units were
procured from across the globe. These included a power

recovery turbine, main fractionator column, reactor, regenerator
(17.8m long, 16.3m wide and 19.9m high, weighing 719 MT),
and cyclones. The reactor top was 12.7m long, 12.9m wide and
19.7m high, and weighed 428MT.
Eight super over dimensional consignments (ODC) were
shipped from various locations on time. 31% of the equipment
procured were imported from USA, 21% from Europe, 31% from
across India and 17% from other parts of the world.
CONQUERING MYRIAD CHALLENGES

The site layout was congested; with a high structural density of
1.5 MT per sq.cm, the plant was designed to be built vertically
(max height: 84 m). It housed 31 structures (9000 MT) within
11,000 m2 of area including the maintenance structures. The
average height of the structures is 45 m which deals with a huge
volume of work at greater heights. Keeping the space
constraints in mind, most of the structures were erected as
modules and structural panels. This saved time, avoided
multiple crane interference; and eliminated extra work at
heights in the interest of safety.
MAJOR HIGHLIGHTS
Pre-fabricated structural modules 18 (Total 3000 MT, with sections of 70 to 300 MT), Panels: 47 (1800 MT, 15 to 30 MT )
Heavy lifts 250 nos., weighing between 20 MT and 775 MT
Super heavy lifts - 8 (all above 400 MT)
Expansion Bellows 20 (Diameter from 48 to 156, max. weight 80 MT)
Fabrication of 118 spools of large dia piping (30 to 158) weighing between 6 MT and 74 MT, at shops in Vadodara and
Vizag followed by refractory lining and dry out at a shop in Visakhapatnam under the supervision refractory expert,
Quartis, U.K.
Specialty valves (20, maximum size of 2.5 x 7.6 x 3.6 m and max. weight of 150 MT)
Refractory application of more than 2500 MT
Successful casting of 3 rafts of mass pours (3000 m3 Reactor/ Regenerator, 1728 m3 MFC, 3017 m3 TSS/Orifice) with RMC
from batching plant, located approx. 10 km from site.
Implemented innovative construction techniques viz: Usage of modular erection for rebar cage along with insert plate for
Regenerator top Ring (52.6 MT erected at a height of 15.55 meters) and Lifting & positioning of pre-assembled rebar cage for
reactor table top columns along with insert plates (12 MT at 27 M height)
PROJECT HIGHLIGHT
First Gas Compression Plant in Qatar for Dolphin Energy Limited
Dolphin Energy Limited (DEL), UAE has one of the largest single build onshore gas processing and
compression facility at Ras Laffan Industrial City, Qatar which exports 2.2 billion standard cubic feet per day
(bscf/d) of gas to UAE through onshore & sub-sea pipeline. In September 2012, DEL awarded a contract to
LTHE to augment the capacity of the compression facility taking the gas throughput to 3.2 bscf/day. This
was the first large scale EPC Project for LTHE in Qatar.
THE SCOPE
The scope of work was wide, consisting of detail engineering,
procurement, construction of all necessary works to facilitate the
installation of three new gas compression trains (Dresser Rand
Compressors, each rated at 39 MW driven by Rolls Royce Trent
Gas turbine engines of 52 MW each), commissioning, operation
and performance guarantee test run to demonstrate transfer of
3.2 BSCFD gas. L&Ts considerable experience in the Mid &
Downstream sector helped to complete the project and reach
the Ready for Start-up milestone within the challenging
schedule of 28.5 months.
CHALLENGES
Tie-in with existing facility: One of the first challenges on the
Project was completion of major tie-ins in a 48 hour total shut
down in February 2014 which had a penalty of US $ 250,000 per
day. By intense planning & pre-shutdown work, We carried out
this work within 24 hours with a partial shutdown instead of full
shutdown of existing facility.
Handling of the Rolls Royce, Gas Turbine and Compressor (GTC)
Package: Valued at over USD 100 million, the largest package of
the project consisted of three centrifugal compressors to be

driven by three Rolls Royce Trent Gas Turbines. With components coming in from all over the globe, the biggest challenge
was to get the equipment delivered & commissioned in sync
with the project schedule.
Tight Project Schedule: With Pre-commissioning carried out in
parallel with Construction and implementing TOTALs ICAPS
software for this purpose, RFSU was achieved on schedule on
7th Jan 2015 and commissioning & hand over of each train was
completed on 23rd May 2015.
APPRECIATION & ACCOLADES

DEL Management appreciated the dedication, team work &
collaboration of LTHE Project team in the safe completion and
hand over of the facility. The Project achieved the Quality KPIs
and was executed with 6.5 Million Safe Man-hours without the
LTI. On the HSE front the Project won several awards such as
British Safety Councils RoSPA Gold Award, International Safety
Award from American Society of Safety Engineers (ASSE) and
Safety awards from DEL.
PROJECT HIGHLIGHT
The Yetagun Expansion Project in the Andaman Sea
The Yetagun North (Phase-V Development) project was awarded to LTHE in January 2013 by PETRONAS Carigali
Myanmar (Hong Kong) Limited. The Yetagun North Field is located 12 km North East of Yetagun Field (Yetagun
Main) in Andaman Sea, off the shore of Myanmar in Blocks M12, M13 and M14 at water depths of 100 m. The
Yetagun expansion project forms a key part of Myanmars plans to revitalize the exploration and production of
oil & gas onshore and offshore after the recent relaxation of the US sanctions against the country.
DEFINING SUCCESS
This fast-track project was the first international offshore project
for the Kattupalli Yard. Besides delivering all project structures
within schedule from the Kattupalli Yard, demonstrated its ability
to execute extensive brownfield modification works on an
existing process platform, which included critical activities
performed during client-specified shutdown period, by meeting
strict quality and schedule requirements in a safe manner.
THE SCOPE
Scope involved Engineering, Procurement, Construction,
Installation and Commissioning of a new 4-legged wellhead
platform (YET-D) at 108 m water depth, a new 10 x 11.2 km
pipeline from YET-D to existing Yetagun main process platform
(YET-C), host tie-in works and brownfield modification works at
YET-C platform.
OVERCOMING CHALLENGES
Since the Projects nascent stages, the project teams have had to
overcome a number of challenges. One such challenge they
faced during the Detail Engineering phase of the project
involved designing the platform as per the free issue material
(FIM) provided by the client. To solve this, engineering and
analysis team had to go through a number of iterations to
accommodate the FIM and avoid procurement of any new

material. The procurement of various piping items required
specialized metallurgy; the lead-time of which was reduced by
five months owing to LTHEs proactive approach in engaging the
vendors in advance who kept stock of the required items.
A BASKET OF ACHIEVEMENTS
Even before formally commencing work on the project, We had
realized the demands of this fast-track project and it is the result
of efficient planning and execution that delivered the Project in
a timely and safe manner.
MFF Kattupalli has an enviable safety record. On the Petronas
Carigalli project, it notched up 2 million accident-free man
hours. The aggregate at Kattupalli stands at 8 million man hours
without any LTI.
LTHE received HSE Award FY 2014 from the Client for
Significant contribution through exceptional HSE Performance
amongst International Contractors.
Having successfully completed the Yetagun project, it is
expected that further opportunities in South East Asian market
will be open for the Company.
Product Responsibility
While delivering highest quality products and services, we ensure that various
aspects of sustainability are addressed across our business processes.
COMPLIANCE
SAFETY
At LTHE, all statutory regulations concerning

our products and services are adhered to with
absolute diligence. During the reporting period,
there was no incident of non-compliance with
laws and regulations concerning the provision
and use of products and services.
Safety is LTHE's core value. Safety is addressed

at every stage -design, engineering,
construction, startup and commissioning.
COMMUNICATION AND
ACCOUNTABILITY
Our belief in fairness and transparency goes out
in all our outbound communications. Our
marketing collateral is designed for clarity in
communication and effective enunciation of
product features and benefits. We abide by all
the norms relating to marketing,
communication, including advertising,
promotion and sponsorship. No false claims or
unfair means are used while promoting a
product or a service. There was no incident of
incorrect or misleading marketing
communications in the reporting period.
L&T was the first engineering and construction
company in India to publish its Corporate
Sustainability Report. In 2007, it set up a
dedicated task force to report its environment
and social performance. LTHE inherited virtues
of the parent company keeping its focus on
sustainability. LTHE, as a business vertical of
L&T, had been reporting its sustainability
performance under L&T Group performance
and developed its maiden Sustainability Report
in the year 2013 for internal circulation. The
year 2013-14 was the first reporting year for us
as a wholly-owned subsidiary.
Safety in Design
LTHE is aware of the importance of identifying

and managing safety issues or risks associated
with engineering at early phases of any project,
with the purposes of avoiding construction and
operational hazards. A Design Control
Procedure has been developed, where a
systematic way to identify safety issues/risks is
included as part of that procedure. The Project
Manager, Project Engineer, Process Manager
and all specialists involved on a new project
participate of Design Control meetings with the
purpose to identify significant hazards and the
associated process design features related with
health, process safety and environmental
effects. As an example; during design, layout
considerations are made such as spacing
between two process units and the
requirements for shutdown coordination of
units.
Safety post construction
While handing over projects, we ensure

pertinent training to the customers. Moreover,
adequate labeling, signage system, operation
and maintenance manual cover the concerns of
Health and Safety and other outcomes. There
were no incidents of non-compliance with
regulations and voluntary codes concerning
health and safety impacts of our products and
services during their life cycle in the reporting
period.
GREEN PRODUCT PORTFOLIO
0.79 Billion
LTHE strive towards achieving competitive advantage by constantly offering

product solutions that address emerging environmental needs and challenges.
Energy Conservation in Gas Processing
LTHE was engaged in a project to

execute an Aromatics Complex for Oil and
Natural Gas Corporation Ltd.Mangalore
Petrochemicals Limited at Mangalore for the
production of Paraxylene and Benzene. In
recognition of the exemplary project
management performance in an extremely
difficult terrain and weather conditions, this
project was conferred Project of the Year
award in large project category by the Project
Management Institute (PMI)
Green Initiatives in Petroleum Projects
In the Lekhweir Gas Feild Development project

being executed for Petroleum Development
Oman, We have integrated the Hot Oil
Package with Waste Gas Incinerator, which
burns the waste gases generated from
different sources in the process.
PROJECT HIGHLIGHTS
The process has been designed to reduce
specific energy consumptions through
process heat integration and have systems
designed to reduce the impact to the
environment through use of low NOx
Burners and low emission seals and
packing. A hydrocarbon detection system
is also in place to constantly detect any
leakages from the unit.
PROJECT HIGHLIGHTS
These flue gases from incinerator are used
for heat recovery of 6 MW in hot oil heater
convection section to reduce the specific
energy consumption of the unit. The
incineration of waste gases also eliminates
the negative impacts on the environment
through complete destruction of BTEX. In
addition to this, the project adopts a zero
flaring philosophy by interchanging the
continuous usage of 59 Nm3/hr of purge
gas with Nitrogen instead of Fuel Gas
was the sales under green

product services & portfolio
for FY 2014-15
MARC, OMPL is the largest project executed by LTHE as an EPC in India,

consisting of 9 units on turn key basis.
Sustainability
Roadmap
ENERGY
TARGET
TARGET
15% Increase
5% Reduction
in energy saving by Conservation

and efficiency improvements
(Year on Year target)
in energy consumption
intensity (measured per
employee)
Decreased by 27.76%
(Baseline 2013-14)
5923 GJ saved during the year
CLIMATE CHANGE
TARGET
TARGET
3% Reduction
5% Reduction
Reduction by 42.85 %
(Baseline 2013-14)
Decreased by 29.17 %
(Baseline 2013-14)
in Scope 2 (Indirect)
GHG emissions intensity
(measured per employee)
TARGET
5% Reduction
in water consumption
intensity (measured per
employee)
Reduction by 32.01 %
(Baseline 2013-14)
WATER CONSUMPTION
in Scope 1 (Direct) GHG

emissions intensity (measured
per employee)
TARGET
SAFETY
30% REDUCTION
TARGET
0 ACCIDENTS
in severity rate
Working towards zero accident goal
Increase in Severity
Rate (SR) by
85.87 to 93.99
2 Fatalities for year 2014-15
HEALTH
TARGET
10% IMPROVEMNET
in employee health index through

Working on Wellness (WoW)
Thrust on employee health care
initiatives including an anti-smoking
campaign as well as a training and
interaction session on the importance
of ergonomics.
TARGET
WIDEN REACH
of employee volunteering across L&T for

community welfare
Working towards promoting education, health
and sanitation around our work locations
through employee volunteering
TARGET
SCALE UP
of community development
interventions in education,
health & skill building
Working on projects aimed

at building social infrastructure
in the fields of water &
sanitation, education, health
and skill building
CORPORATE
SOCIAL INITIATIVES
MANAGEMENT APPROACH | 28
Management Approach
We have progressed well on the Social, Environmental
and Economic agenda pursued over the last few years.
Considerable headway has been made in the areas of
energy conservation, healthcare, environment
protection and social uplift of the deprived sections
of society. We harness untapped energy of India's youth
through broadbased skill development centres and
promote social development through ongoing mother
& child healthcare programmes. We have been
recognised in various national and international forums
for our sustainability efforts.
Mr. A.M. Naik
Group Executive Chaiman
Larsen & Toubro
ECONOMIC
We exercise prudent management of risks and costs to
ensure sustainable wealth generation. The challenges in
the form of growing competition, newer geographies,
forex variation, claims management and staffing of key
manpower are mitigated through specific actions like
operational excellence initiatives, cost optimisation,
increased customer intimacy, compliance with stringent
HSE standards, proactive hedge management, strong
contract management and talent acquisition and
retention. In response to challenges faced by cost over
runs, the management has restructured its international
operations and steps are being taken to build strong
customer relationships, a culture of operational
excellence and greater accountability. Contracts
management, safety & quality departments are being
strengthened with experienced recruits. A process of
bid/no-bid clearance for international prospects has
been instituted to weed out unfeasible proposals at
early stages.
HIGHLIGHTS
During the year we have successfully commissioned the
largest single train Paraxylene complex MARC, OMPL,
Export Gas Compressor Train project for Dolphin Energy
Limited Qatar and Yetagun North (Phase-V Development)
project units.
In international waters, we achieved First Oil for our
ongoing project in Abu Dhabi with Abu Dhabi Marine
Operating Company (ADMA OPCO) and successfully
completed PETRONAS Project in Myanmar.
In the Middle East, we have secured a large EPC contract
from Kuwait Oil Company for a gathering centre
SOCIAL
At LTHE we aim to provide an engaging, secure, and motivating work environment, to
nurture our valued relationships with the societal stakeholders and to adhere to global
standards for transparent and accountable corporate citizenship and business
management. We comply with all laws and regulatory requirements such as Convention
of International Labour, The Factories Act 1948, Building & Other Construction Workers
(Regulation of Employment) Act 1996, Central rules 1998 and Industrial Disputes Act
1947. Additionally, LTHE adheres to the L&T Group Corporate Human Resource Policy,
which aims to uphold in letter and in spirit the United Nations Universal Declaration of
Human Rights and the Fundamental Human Rights Conventions of the International
Labour Organisation.
Safety has been a core value for us. Testament to this commitment is Indias one of a kind
Safety Innovation School setup by us at Hazira, which embeds safety competencies
among our employees and contractors, through interactive and innovative safety training
methods. In addition to measuring our own performance, we are extending our
commitment to our vendors and suppliers towards the goal of a GRI G4 compliant supply
chain. With the goal of including people, we also seek to bring infrastructure related
access to services, to communities through our programs of social investment and
corporate volunteering.
Street show being performed as part of Ghar Ghar

Shouchalay CSR Activity
HIGHLIGHTS
Achieved 3.5 man days of training per
employee during the reporting year as
against the target 3 man days per
employee.
Recertification has been carried out for
all LTHE Business Units for OHSAS
18001 and ISO 14001
A majority of our high value suppliers
have signed a sustainability based
Supplier Code of Conduct
One of its kind Experiential Training Center located in Hazira, Surat that caters to safety
training of Employee and contractors of the company.
ENVIRONMENT
Environmental goals at LTHE are driven by senior management commitment through
our Corporate HSE Policy and Green Supply Chain Policy. Moreover, through our
Corporate Sustainability Policy we aim to incorporate social and environmental
considerations directly into our business operations through the adoption of
sustainable and resource efficient processes and the provision of value added products
and services. Through our green product portfolio we aim to develop products and
services that have no undue environmental impact, are safe in their intended use and
are efficient in their consumption of energy and natural resources- in accordance with
applicable laws and industry standards. Carbon footprint assessment, is now an integral
measure of our offerings and is reflected in our focus on energy-efficient processes. We
strive towards achieving competitive advantage by constantly offering product
solutions that address emerging environmental needs and challenges.
Underlining our approach, is our commitment to encourage communication and
collaboration with all stakeholders to ensure that our environmental management and
protection goals are achieved through concerted efforts.
ISO 50001 certified Modular Fabrication Facility at Hazira, Gujarat
HIGHLIGHTS
Energy reduction - 5923 GJ saved
during the year due to specific
energy conservation initiatives
A dedicated Energy Policy in place for
our fabrication yards
Introduction of management programs
across LTHE to analyze consumption
patterns & opportunities for saving
Diesel and LPG across fabrication yards
Solar street lights at L&T Knowledge City Campus,

Vadodara
Sulphur Recovery Unit; IOCL, Gujarat Refineries.
ABOUT
THIS REPORT
STAKEHOLDER
ENGAGEMENT
BUSINESS
EXCELLENCE
ECONOMIC
GOVERNANCE
ENVIRONMENT
PEOPLE
COMMUNITIES
GRI INDEX
03 | Governance
Guiding our journey towards integrity and accountability
Being a responsible corporate citizen, our corporate governance, a guiding force of our
sustainability journey, is based on principles of accountability, ethics, transparency and
equitable treatment, with a focus on long term value creation.
GOVERNANCE | 33
Governance
In tune with the L&T Group philosophy, our
Corporate Governance framework at LTHE has been
established to ensure integrity, maintaining codes of
transparency and accountability in our business
activities. We proactively address emerging
challenges related to environment, social inclusion
and corporate governance. Our Corporate
Governance framework is based on an effective
independent Board, the separation of the Board's
functions, and the constitution of Board committees.
Our Board comprises of 10 directors out of which
four are independent. Further details about our
Board of Directors can be found at
http://www.lnthydrocarbon.com/company/board-ofdirectors/
Our four-tier corporate governance structure ensures greater

management accountability, facilitates increased autonomy of
business and increases stakeholder confidence.
Strategic Supervision
by the Board of Directors comprising Executive
and Non Executive Directors
Executive Management
by the Corporate Management comprising Executive
Directors and persons from Senior Management
Strategy & Operational Management
by Board of directors, Senior Executives and
Independent Directors
Operational Management
by Independent Business group heads
GOVERNANCE STRUCTURES & COMMITTEES

Sustainability Structure and Roles
In-tune with our parent company, corporate sustainability is ingrained to the core in LTHEs entire value chain with uncompromising
commitment from the top management. A well-defined framework of Business Heads, Sustainability Councils and Unit Level Teams
cascade the initiatives across hierarchies.
The SCSR Board formulates the CSR Policy and constitutes

transparent monitoring mechanisms for ensuring implementation
of the CSR programme.
The SCSR Council provides guidance to unit SCSR

teams and the management to ensure that all SCSR
programmes are aligned with our policy.
CORPORATE
CENTRE
HUMAN
RESOURCES
HSE
F&A
R&D
The Unit SCSR teams ensure the implementation and

effectiveness of SCSR programmes and report the CSR performance to the CSR Council.
GOVERNANCE | 34
GOVERNANCE COMMITTEES
Our Board of Directors currently has five standing committees - the Audit Committee, the Nomination and Remuneration Committee,
CSR Comittee, Treasury Commitee and the Investment Committee . The charters and compositions of these committees can be found
below.
Audit Committee
Evaluation of internal financial
controls and risk management
systems
Approval of transactions of the
company with related parties
Scrutiny of inter-corporate loans and
investments
Recommendation for appointment,
remuneration and terms of
appointment of internal & statutory
auditors of the company
Review and monitor effectiveness of
internal & statutory audit process
Nomination &
Remuneration Committee
Identification of persons qualified
to become directors & who may
be appointed in senior
management
Evaluation of every directors
performance
Formulate policy relating to the
remuneration paid to Directors,
key managerial persons and
senior management
CSR Committee
Formulate and recommend the
CSR Policy to the Board for
approval
Recommend the amount of
expenditure to be incurred on
CSR projects - Monitor the Policy
implementation from time to
time
Constitute a monitoring
mechanism for ensuring
implementation of the CSR
projects
Treasury Committee
Investment Committee
The responsibility of the Treasury Committee is to evaluate financial risks

arising from the forex and commodity exposures on an on-going basis and
mitigate risks by taking hedging actions. They are also entrusted with the
responsibility of ensuring compliance with the Treasury Policy of the
Company and make required changes to take care of changing scenarios.
The Investment committee is responsible

for monitoring the investments and
borrowings for the Company and shall
meet at least once in a financial year to
review the above.
LTHE at its Board Meeting released the Companys Sustainability Report at the hands of Dr.A.K. Balyan & Mr. Sarthak
Behuria, Independent Directors on LTHE Board in the presence of Mr. K. Venkataramanan, CEO & Managing Director
& the other Board Members.
GOVERNANCE | 35
GUIDING FRAMEWORKS
Code of Conduct
We recognize that the specific issues related to ethics, integrity

and professional conduct vary across different levels of
employment. And so in addition to a general code for all
employees, we have a specific Code of Conduct for our Senior
Management. This code applies to the Board of Directors and
Senior Officers, guiding their processes of managing the affairs
and personnel of the company and sets standards and
recommendations regarding unethical behavior, integrity, use
of authority, confidentiality, etc. A general Code of Conduct
that applies to all Supervisory, Executive and Covenanted
Officers of the company lays the foundation for ethical conduct
across the organization and covers the following key concerns:
Honesty, Integrity, Ethics

Respect for Individuals
Sharing of Official Information
Confidentiality
Professional Engagement &
Public Advocacy
Working Environment &
Dress Code Policy
Environment, Health & Safety
Vigilance Committee
LTHE is committed to the highest possible standards of

openness, probity, and accountability. In line with this
commitment, we expect directors and employees to come
forward and voice genuine concerns. To facilitate this process,
the Company has formulated a Vigil Mechanism Framework to
enable directors and employees to report genuine concerns.
The objective is to maintain a redressal system which can
process all complaints concerning questionable accounting
practices, internal accounting controls, or fraudulent reporting
of financial information and anti-social conduct. The Vigil
mechanism is implemented by the Audit Committee through
the Vigil Committee which will act as an Ombudsman
Committee. The mechanism addresses the following grievances
and concerns:
Violations of the Code of Conduct
Forgery or alteration of documents
Unauthorized alteration or manipulation
of computer files
Fraudulent financial reporting
Questionable accounting, internal
accounting controls or auditing matters
Pursuit of a benefit or advantage in
violation of the Company's interest
Misappropriation/misuse of Company's
resources, like funds, supplies, or other assets
Authorizing/receiving compensation for
goods not received/services not performed
Authorizing or receiving compensation for
hours not worked
Sustainability
Fair Human Resources
Practices
Risk Management
Prohibited Items
Corruption
Community Development
Hierarchical Structure
of Vigil Mechanism
Audit Committee
Vigil Committee
Departmental Head
Complainant/Whistle Blower/Vigilant Person/ Tipster

Improper use of authority
Release of Proprietary Information
Kickbacks
Theft of Cash/Assets
Unauthorized Discounts/
Approvals/Sanctions
Falsification/ Destruction
of Company Records
Fraudulent Insurance Claims
Disclosure of confidential information
Work Place Harassment
Sexual Harassment
%
J
S
F
D
U
"
Q
Q
S
P
B
D
I
Zero complaints were made to

the vigilance committee during
the reporting period.
The mechanism is also flexible and will
redress any other activity
by an Employee/Director that is
undertaken in the performance
of their official duties, which is in
violation of any national or
international law including statutory/
regulatory rules & regulations.
Risk Management Framework
LTHE has institutionalised a risk management process with a clear policy, guidelines and the usage of quantitative tools to protect our
operating margins. The Risk Management process is aimed at identification, assessment, mitigation and monitoring of risks from
pre-bid to close out stage. Analysis for risk pertaining to economic, environmental and social impacts are also included in the
assessment.
The Audit Committee of the Board oversees the effectiveness of the risk management process. We have in place mechanisms to
inform Board Members about risk assessments and risk minimization procedures who in turn conduct periodic reviews of our risk
management status. Additionally, our risk management policy and procedures, sit within the overall Enterprise Risk Management
framework of Larsen & Toubro Ltd while the process followed is in compliance with the International Risk Management Standard ISO
31000:2009.
Internal Control System
At LTHE, we believe that a strong internal control mechanism is

an important pillar of corporate governance. And so we have
established an internal control mechanism commensurate with
the size and complexity of our business. As per our corporate
policy on internal control we have a structured framework that
identifies, rectifies, monitors and reports internal control
weaknesses in the organisation.
Accounting guidelines are regularly issued in order to ensure
uniformity and reliability of financial statements and financial
authorization guidelines that cover purchasing, selling,
authorization of expenses, etc., are followed across the
organisation. We have well-documented Standard Operating
Procedures (SOPs) for various processes, which are regularly
reviewed to incorporate any changes as per evolving business
needs.
The Company also periodically engages independent
professional firms to carry out reviews on the effectiveness of
various control processes in businesses and support functions.
All significant observations and corrective actions taken are
reviewed by the management and Audit Committee of the
Board.
CORRUPTION AND ANTI-COMPETITIVE

BEHAVIOR
Professionalism, principles of ethics and fair practices govern the
behaviour pattern in LTHE. It is our policy to ensure that we
arent party to any act or measure that compromises or is likely
to compromise our values. Robust systems are in place to
address all issues involving anti-trust behaviour and these
systems are reviewed periodically at the corporate level.
Guidelines for financial transactions and non-financial
documents set by top management are communicated to
employees along with the Code of Conduct. In addition our
Whistleblower Policy covers the entire organisation.
No incident of corruption was reported during the year 2014-15.
We also comply with relevant statutory requirements including
anti-competitive behaviour. No legal actions in this regard were
initiated against us in FY 2014-15.
BOARD PERFORMANCE & REMUNERATION

Board Performance, Evaluations and
Feedback
High performance standards at LTHE are achieved through

constant review and refinement of our processes. Highly efficient
solutions are consistently delivered thorough process
management and review analysis. We follow a five year strategic
planning process with midterm reviews for course correction and
currently the LAKSHYA 2016 strategic plan provides an overall
business direction. Various strategic initiatives have been
identified and implemented as a part of this plan.
To determine the performance of the Board, the Nomination and
Remuneration Committee evaluates the performance of every
director on the Board.
Additionally, key stakeholders including employees, clients and
others may directly contact the Compliance Officer with
comments or feedback concerning economic, environmental,
GOVERNANCE | 36
social and governance concerns who will in turn pass on critical

concerns to the Board of Directors.
Remuneration Policy
Our remuneration policies are designed to nurture employees

professional growth as well as personal aspirations. Talent is not
only recognized but duly rewarded as well. The compensation
packages include base remuneration, perquisites and
performance incentives. The components of remuneration vary
for different grades, and are governed by industry patterns,
qualifications, experience, responsibilities and individual
performance. The remuneration to Executive Directors is in the
form of salary, perquisites and retirement benefits (fixed
components) & commission (variable component), based on
recommendation of the Nomination & Remuneration (N&R)
Committee and approval of the Board.
EXTERNAL ENGAGEMENTS
Public Policy Advocacy
An important stakeholder of our business is the government and

hence we engage with the government through multiple
business forums and trade organisations. Our senior executives
are active members of industry bodies that participate in the
development of public policies which address issues affecting
the industry, businesses, products as well as customers.
Professional Memberships
LTHE is a member of the following Institutions/Industry

Associations*
Indian Institute of Chemical
Engineers (IIChE)
Institute of Chemical
Engineers (IChemE, UK)
Society of Petroleum
Engineers (SPE)
Chemtech Foundation
International Project
Management Association
(IPMA)
Federation of Indian
Chambers of Commerce
and Industry (FICCI)
Confederation of Indian
Industry (CII)
World Chemical
Engineering Council
National Safety Council

of India
British Safety Council
Royal Society for Prevention

of Accidents (Ro SPA)
Center for CHEMICAL

Process SAFETY (CCPS)
Engineering & Construction Risk Institute (ECRI)

*The list is indicative
Saih Rawl Central Processing Plant of the Saih Rawl Development Project marks
the future proofing for Petroleum Development Omans Reign
ABOUT
THIS REPORT
STAKEHOLDER
ENGAGEMENT
BUSINESS
SUSTAINABILITY
BUSINESS
EXCELLENCE
GOVERNANCE
ECONOMIC
ENVIRONMENT
PEOPLE
COMMUNITIES
GRI INDEX
04 | Economic
Making every step of the journey count
Generating profitable growth enables us to serve our customers, as a growing
design-to-build engineering and construction solutions provider for the hydrocarbon
sector. Robust economic performance also enables us to invest in greater research and
development and advance as a growing design to built engineering and construction
solution provider for the hydrocarbon sector, achieveing profitable growth, enables us
to improve capabitities and serve our multiple stakeholders better.
ECONOMIC | 39
Economic
The entire global hydrocarbon industry is passing through a difficult phase with
Engineering & Construction industry leaders reporting cost over-runs. Despite this,
LTHE has generated an order inflow of INR 95.82 Billion this year.
93.38 Billion
is this years order inflow.
HIGHLIGHTS OF FY 2014-2015
Hydrocarbon
Upstream
During the year, the company business unit won orders from Oil and Natural Gas Corporation
(ONGC) India for Engineering, Procurement, Construction & Installation of 5 Well Head
Platforms under competitive bidding and SBHT 42 Pipeline Contract on nomination basis.
Additionally another order was won for Development of Vasai East Project ADVEP) involving
2 unmanned Wellhead Platforms, 36 km Subsea Pipeline and Topside Modification work on
existing Platform.
The company recently made an entry into the niche area of large scale Cryogenic Terminal
projects featuring Full Containment Cryogenic Storage Tanks, through orders for the Cryogenic
Ethylene Tank / Terminal Project and the Cryogenic Ethane cum LNG Storage Tank Project. This
provides a good leverage for bidding for the forthcoming LNG Terminal projects incorporating
LNG tanks and plants.
Orders received during the year include the dual service Full Containment Cryogenic Storage
Tank designed for Liquid Ethane and LNG along with the Engineering of the Tank and the
terminal for a large integrated petrochemical complex in India. The project has further potential
for extension of scope to cover the supply and construction work for the Balance of the Plant.
Hydrocarbon
Construction
and Pipelines
3D model of MHN Process Platform
Hydrocarbon Mid
& Downstream
During the year, the company commenced the execution of Coal Bed Methane field
development project for Reliance Industries, India, which includes the installation of Field
Pipelines, Power Distribution Network, Construction of Well Site facilities, Group Gathering
Stations and associated facilities.
ECONOMIC | 40
ECONOMIC VALUE GENERATED AND DISTRIBUTED

Economic Value Generated
In Billion
Total Revenue
57.23
Economic Value Distributed
In Billion
Manufacturing, construction and operating expenses
57.27
Employee wages and benefits
6.05
Interest
1.17
Dividend
Nil
CSR Investments
INDIRECT ECONOMIC IMPACTS

We view our contractors, distributors, SME
vendors, capital contributors, and communities
as our partners in inclusive business growth.
Time, resources and technical know-how is
contributed by the company to ensure their
success.
Local Hiring
At LTHE we are committed to local hiring, both

in India and international locations. For example,
Oman labor law mandates that 35% of people
hired should be omani citizens.
0.006
ECONOMIC IMPACTS OF
CLIMATE CHANGE
Climate change legislation, regulations or
international agreements do not have a direct
impact on LTHEs operations or on the financial
results of our business. However, climate change
legislation could have a direct effect on our
customers; which would in turn have an impact on
our business.
ECONOMIC | 41
EMPLOYEE BENEFIT PLANS

We provide our employees with benefits under
a defined benefit plan, which include gratuity
fund schemes, post-retirement medical care
scheme, pension scheme and provident fund
scheme managed by a trust. The Gratuity Plan
provides a significant payment to vested
employees on retirement or on termination of
employment. The obligation is measured at
the present value of the estimated future cash
flows. The discount rate used for determining
the present value of the obligation under
defined benefit plans, is based on the market
yield on government securities of a maturity
period equivalent to the weighted average
maturity profile of the related obligations at
the Balance Sheet date.
implicit interest cost and the impact of

changes in discount rate, is classified under
finance costs. The balance charge is
recognized as employee benefit expenses in
the Statement of Profit and Loss.
In case of funded plans, the fair value of the
plan assets is reduced from the gross
obligation under the defined benefit plans to
recognize the obligation on a net basis. Gains
or losses on the curtailment or settlement of
any defined benefit plan are recognized when
the curtailment or settlement occurs. Past
service cost is recognized as expense on a
straight-line basis over the average period
until the benefits become vested.
The interest element in the actuarial valuation

of defined benefit plans, which comprises of
Employee Costs
In Billion
Cost towards wages/salaries
5.22
Other benefit costs
0.83
Total Personnel Cost
6.05
ABOUT
THIS REPORT
STAKEHOLDER
ENGAGEMENT
BUSINESS
EXCELLENCE
ECONOMIC
GOVERNANCE
ENVIRONMENT
PEOPLE
COMMUNITIES
GRI INDEX
05 | Environment
Protecting the roots of our journey
Responding to the global movement towards cleaner processes and technologies, we
have ensured that environmental management is an integral part of our business
strategy. Our environmental pledge is to reduce the impact of our services and
operations, and to consistently work with our global partners, clients, contractors and
suppliers to improve energy efficiency, conserve resources and reduce waste and
emissions.
ENVIRONMENT | 43
Energy
Energy management is one of the cornerstones of our journey. LTHE implements its energy management
through a three pronged approach.
Implementing energy
efficiency improvements
through technological retrofits
Measuring and monitoring

consumption patterns
Identifying for implemetation efficient

and emission reduction technologies
for the long term
ENERGY CONSUMPTION
823361 GJ
The total energy consumption

across all sites in FY 2014-15
Total Energy
Consumption (GJ)
83%
17%
Direct Energy
Indirect Energy
Direct Energy
Indirect Energy
Note: The total Indirect energy consumption for

FY 2013-14 does not include scope 3 energy related
data, as information was not being captured
previously. There has however been an increase in
scope this year, to include scope 3 employee
transport data from certain selected sites.
Total Energy Intensity

682284
141077
2014-2015
772822
87542
18
24
2014-2015
2013-2014
(GJ/ Employee)
2013-2014
Direct Energy Consumption

The primary source of direct energy comes
mainly from the use of diesel fuel (contributing
85% of total energy consumption).
15.31
GJ/employee is the
direct energy intensity
682284 GJ
Total direct energy consumption
Reflecting a significant reduction compared to

intensity value of the previous year.
The per capita electrical energy intensity was 1.47 GJ/ Employee; reflecting a decrease in
electrical energy intensity since last year, owing to various energy saving measures
implemented across various sites during the year.
65277 GJ
Electrical
energy consumption
Direct Energy Intensity
Indirect Electical Energy Intensity
Indirect energy consumption comprises of electrical energy consumption from the grid; and
transport related consumption outside the boundary of the sites.
Total indirect
energy consumption
21.46
2013-2014
(GJ/ Employee)
Indirect Energy Consumption
141077 GJ
15.31
2014-2015
75800 GJ
Employee
Transport consumption
75800 GJ of indirect energy consumption comes from employee transport recorded at

certain selective sites, resulting in an indirect (scope 3) energy intensity of 1.70 GJ/
employee. As part of our strategy for next year, we will be implementing systems to
capture employee transport related data across all our sites. Additionally, as part of extending
sustainability to our supply chain, we will be designing and implementing systems to capture
material transport across all our sites.
1.47
2.45
2014-2015
2013-2014
(GJ/ Employee)
ENVIRONMENT | 44
INITIATIVES
Optimize occupancies in offices
by shifting of employees from
yard porta offices to EPC offices
during low workload in yards
Replacing air compressor

with air blower for cleaning
purpose
Replaced thyristor based welding machines

with inverter based welding machines in
fabrication yards has resulted in a significant
reduction in power consumption and cost
savings of INR 18.49 per hour
Reduced diesel compressor
usage by using an electrical
compressor for blasting
operations
Providing air receiver

tank for auto cutoff of air
compressors.
Introduction of management
programs to analyze consumption
patterns & opportunity for
saving for Diesel and LPG across
fabrication yards
Felicitation of winners of contests held to raise Environmental

awareness during World Environment Day 2014
ENERGY CONSERVATION
Energy conservation is central to our environmental sustainability roadmap. Technological retrofits and energy efficiency measures
play a vital role in reductions across the business. This year we have achieved an absolute reduction of 5923 GJ through various
reduction initiatives.
Reduction in Energy
Consumption in GJ
Energy Conservation Measures

Installation of 930 nos of 400 W sodium vapor lamp (Replacement of 1000W Halogen Lamps)
Installation of On-off timers in tower lights in fabrication yards
136
Installation of energy saver in welding machines in fabrication yard
2592
Install Energy Saver for Lighting in MFF- 1 and MFF 3 (Hazira)
1314
Switching off of transformer 500KVA in yard 1 as it is idle for ~200 Days/Year

- No load loss = 1.6Kw
- Switch off duration estimated = 250 Days
35
Optimum utilization of HVAC System of EPC Block
189
Optimize running of Air Compressors used for Blasting/Painting (through optimizing loading of
Blasting operation & reduce idle running)
72
Porta -1 Office optimization
131
Porta -2 Office optimization
314
Identify lighting which are not required in the yards & switch off those lights
927
Replacement of Existing window/split ACs by energy efficient invertor based AC in Client office
54
Use invertor based Welding Machine
155
Installation of Occupancy sensors in toilet blocks of EPC building
TOTAL
5923
THE
WELD
GROOVE
ANGLE
INITIATIVE
Modular
Fabrication
Facility, Hazira
CASE STUDY | 45
Welding is a central activity within the hydrocarbon construction business.

Typical offshore structures involve fabrication of large tubular structures
which are manufactured as per API2B standard. These tubular structures
are further welded together based on various codes and standards, to
form Piles and Jacket legs.
Fabrication of large diameter tubular structures necessitate optimization
of processes to ensure enhanced production and reduction in cycle times.
Weld groove design, backing material and welding process are optimized
to achieve efficient production.
The team at MFF Hazira explored the possibility of reduction and change
in the geometry of the groove angle in order to reduce the weld metal
consumption and improve the productivity, without affecting the quality
of weld.
Typically, weld groove angles conventionally measure 60o. Study
concluded that reducing the angle from 60o to 40o - 45o, would achieve
an average 33% reduction in volume of metal used per weld. Reduction
in weld volume (weld metal) is directly related to significant saving of
electrical consumption and in turn cost savings of almost 33%.
In FY 2013-14, the procedure was approved by ONGC and has been
standardized since.
60O
40O
60O
40O
25%
45%
2
Achievements in
ONGCs B-127 project
20,450 kWh of
electrical energy
savings
Material Saving of
15 Metric Tonnes
Achievements in
ONGCs MHRND
III project
Material Saving of
17.1 Metric Tonnes
Overall Cost savings
of 25,28,949
ENVIRONMENT | 46
Emissions
GHG EMISSIONS
We are aware of the impact that our business has on
climate change through our industrial process emissions;
and align our efforts towards curbing GHG emissions
through monitoring and proper energy management
strategies. GHG emissions are calculated based on the
international best practice standard; the GHG Protocol.
The total carbon intensity was 1.62 tCO2e/employee.
Scope 1 and Scope 2 carbon intensities have decreased
since last year owing to implementation of various energy
and emission reduction strategies. Additionally, we have
achieved a reduction of 1466 tonnes of CO2e through our
energy reduction measures
57063
50469
72,177
tonnes of CO2e - total GHG

emissions including both
direct and indirect emissions.
70%
Scope 1
Scope 2
Scope 3
22635
belonged to
direct emissions.
2014-2015
2013-2014
Total GHG Emissions (tonnes of CO2e)
72,177 Tonnes
of CO2e
22% Scope 2
Scope 1 Carbon Intensity

(tCO2e/employee)
1.13
1.60
2014-2015
2013-2014
Scope 2 Carbon Intensity

(tCO2e/employee)
0.36
0.63
2014-2015
2013-2014
1.62
2.23
2014-2015
2013-2014
16151
5588
70% Scope 1
8%
Scope 3
Total Carbon Intensity

(tCO2e/employee)
Note: GHG Emission data for FY 2013-14 does not include scope 3 related data, as information was not being captured previously. There has however been an increase in
scope this year, to include scope 3 emission from employee transport of certain selected sites.
INITIATIVES
Replaced diesel generator by grid supply
in fabrication yards by installing new PDBs and
underground cabling
Fuel based carts have been introduced by battery
operated vehicles at the Kattuppali Modular
Fabrication Yard for internal transport; resulting
in a reduction in emissions, increase in number
of passengers per trip
OTHER EMISSIONS
This year our recorded NOx, SOx and particulate matter
(PM)emissions were 2.686 kg/year, 5.49 kg/year and 10.339
kg/year respectively. This year the amount of Ozone Depleting
Substances has been recorded at 367.6 kgs.
Electric Golf Carts used at Katuppali Fabrication Yard as an

initative to reduce emissions
ENVIRONMENT | 47
Water
WATER CONSUMPTION
14,43,279 m
9% Ground
Water
was the total water withdrawal with a

water intensity of 32 m3/ employee.
2% Others
Water management across all our sites is shaped by stringent measuring and
monitoring systems; with water conservation and recycling initiatives at the focal
point. Major initiatives include sewage treatment plants at all project locations and
reuse of the water for gardening and toilet flushing. Through our various
initiatives, we have achieved 8.9% of total water recycled and reused this year. No
water sources were significantly affected by withdrawal.
8.9%
Water Recycled
89% Muncipal
Water
Total Water Withdrawal

in m3
1443279
2014-2015
1700219
SOURCE
WITHDRAWAL (m3)
Water Intensity (m3/employee)
2013-2014
32
48
2014-2015
2013-2014
Ground Water
Municipal Water
Other Sources
1287155
125018
31105
Rainwater Harvesting at Vadodara Campus
CASE STUDY | 48
The source of water for LTHEs Modular Fabrication Yard (MFF) at Hazira is the
TAPI river. MFF has installed two Sewage treatment plants (STP) of capacity
300 m3/day across its facility in order to reduce burden on fresh water
consumption.
Initially the STP treated water was being used for the purpose of gardening.
Over the last three years, STP treated water recycling has been extended to
flusing in toilet blocks and water sprinkling for dust separation in the industrial
yards. The water recycling initiatives have helped MFF Hazira reach Zero
Discharge.
Reduces 5.7 Lakh litres

/ year/ toilet of
freshwater consumption
Savings of 0.25 Lakh/ year
Water
Conservation
Modular
Fabrication
Facility, Hazira
STP at Hazira MFF
Reduces 25 m3/ day

of freshwater consumption
3.5 Lakh/ year savings
STP treated water re-used for gardening
Reduces 14400 m3/ year

of freshwater consumption
5 Lakh/ year savings
STP treated water re-used for water sprinkling

in dust separation at MFF Hazira
Water Savings in FY 2013-14
Description
Saving of Water (M3/Year)
Gardening
7.5 (m3/Day) x 250 Days
1,875
Dust Suppression
8 (m3/trip) x 6 (Trips) x
200 Days
9,600
Toilet & Urinal

Flushing
1.5 (m3/Toilet Block) x

11(Toilets) x 365 Days
6,022
Total Reduction in Water Consumption (m3)
17,497
ENVIRONMENT | 49
Materials
Resource efficiency and the proper management of materials has gained significant attention in the realm of
sustainability strategies; particularly in material intensive sectors like construction. Most of the materials at our
project sites are monitored and recorded through our ERP systems. From exploring sustainable substitutes and
extending life of resources to ensuring proper disposal of waste materials, we give due importance to resource
management at LTHE.
LTHE consumed a total of 1.05 million tonnes of material

across all sites. Our operations are intensive in metals
(particularly ferrous based alloys), other raw materials such
as sand and concrete. Use and recycling of packaging
materials is negligible as our products dont require
extensive packaging.
Customer stipulations prevent the
use of recycled materials as raw
materials. However, we do engage
our clients, vendors and
contractors to conduct awareness
sessions of proper use and
disposal of materials and
encourage the applicability within
our projects.
38.26%
Ferrous
Metals
Indirect Materials
Raw Materials
Packaging Material
50.96%
Raw Materials
1.05 million tonnes

Materials Consumed
3.65%
Hazardous
Chemicals
0.43%
6.4% Hazardous
Oil &
Lubricants
0.07%
Packaging
Materials
Total Materials Consumed
768
Gases
0.17%
Non-Hazardous
Materials
Packaging
Materials
112189
Indirect
Materials
535158
402034
In Tonnes
Metals
Raw
Materials
ENVIRONMENT | 50
Waste
WASTE MANAGEMENT
Total Waste Generated in Tonnes
Waste management plans are being implemented across LTHE project and
campus sites. We have designated waste segregation facilities at all our
campuses and fabrication yards. Post segregation, waste is disposed to
authorized dealers under the State Pollution Control Boards or government
recognized agencies.
2997
Hazardous
Hazardous waste is disposed through government authorized vendors and scrap

waste generated at client sites is managed in consultation with the client. We are
not engaged in the business of transporting, importing, exporting or treating
waste that is deemed hazardous under the terms of the Basel Convention Annex
I, II, III and VII.
9081
Non-Hazardous
There have been no significant spills

reported this year.
12,078 tonnes of Waste Generated
50%
Ferrous
Scrap
18%
9%
Empty
Non-Ferrous
Paint & Oil
Scrap
Containers
Waste Segregation at MFF Hazira
6%
Other
Scrap
5%
Canteen
Waste
3%
Used Oil/
WasteOil
2%
Oil Laden
Waste
(Filter)
2%
Discarded
Packaging
Material
5%
Others
ENVIRONMENT | 51
Environmental Initiatives
TOTAL ENVIRONMENTAL EXPENDITURE
In Million
Waste Disposal, Waste Water Treatment and Emissions Control
9.16
Environmental Management and Prevention and Pollution
1.56
TOTAL
10.72
Digester converts waste food into manure at Vadodara

Campus
STP Treated Waste water used for fountains at Vadodara

Campus
Mr. Mathivanan planting a sapling at MFF Kattuppali
Habshan-Ruwais-Shuweihat Pipeline being executed on an EPC basis in Abu Dhabi
ABOUT
THIS REPORT
STAKEHOLDER
ENGAGEMENT
BUSINESS
EXCELLENCE
ECONOMIC
GOVERNANCE
ENVIRONMENT
PEOPLE
COMMUNITIES
GRI INDEX
06 | People
Empowering the drivers of our journey
As we transform into a truly global player, we appreciate that we also need to transform
our work force and orient it towards a multinational and multicultural direction. There
has been a constant quest to keep raising the bar and equipping the workforce to get
there. We are also committed to the general wellbeing of our employees and seek to
empower our workforce with opportunities and avenues of participation, making them
an equal partner on our journey towards sustainability.
PEOPLE | 55
Our People
As a significant player in the EPC space, LTHE engages driven and talented individuals with a zeal
to build a better world. Our on-going efforts are to develop an inspiring work environment
attuned to multi-cultural workspaces that can meet the challenges posed by global markets.
Our talent management strategy has always put a great premium on developing our people,
who are the organization's most important resource.
Thrust areas for LTHEs Human Resources

Building Capability in Project Managment
Succession Planning
HR Operational Excellence
Enhancing Employee Engagement
Robust PMS & Workforce Optimization

TALENT MANAGEMENT
We have a unique mix of experienced professionals and
young dynamic passionate individuals working in across
functions. Human Resources efforts are targeted to
ensure that the right talent is sourced, selected, trained
and deployed across the organisation.
A number of in-house modules for processes like
recruitment (E-Rec) and competency management
(E-Profile) have been developed to automate & digitise
the core processes. As a part of its drive towards building
international project management capabilities, several
senior professionals have been recruited from across
geographies.
Retaining Critical Talent
Talent Development & Leadership Pipeline

Being an Indian multinational, our talent outreach spreads
across domestic as well as international spaces. Our
focused initiatives towards developing a Global Workforce
include:
Building a leadership Pipeline with a focus on
international setup
Acquiring international talent in critical roles
Cultural Integration of diverse talent sets
Retaining key project management talent
Organizational Restructuring
Manpower Optimization
Geographic Mobility
PEOPLE | 56
WORKFORCE DASHBOARD
By Business Unit
By Employee Cadre
18.66%
29.25%
Supervisors
39.84%
Executives
Covenanted
2.60%
9.65%
Trainees
Others
By Geography
5966
8.69%
74.33%
Kuwait 1.25%
1.09% 4.56%
Qatar
Saudi Arabia
10.09%
Abu Dhabi
UAE
No. of Non-Unionized
Employees
18
No. of Unionized
Employees
5984
India
Muscat
Total Workforce
Oman
Breakup Of Employees
Employee Hire
Employee Turnover
By Age
By Age
47.27%
49.28%
3.45%
54.97%
40.30%
4.70%
Below 30
30 to 50
Above 50
Below 30
30 to 50
Above 50
By Gender
By Gender
97.63%
2.37%
91.86%
8.14%
PEOPLE | 57
DIVERSITY
We support a diverse workplace, since it integrates fresh perspectives. We are an equal opportunity employer and adhere to all
statutory & regulatory norms.
By Gender
By Age
92.16%
42.11%
51.14%
6.75%
Below 30
30 to 50
Above 50
Initiatives Tailored To The Needs

Of A Diverse Workforce
(Employment Conditions, Locations, Gender)

We aim to provide a healthy work life balance by
providing flexible working conditions:
Creche Facility has
been initiated by the
LTHE Knowledge City
Administration.
Employment for
spouse is promoted
and supported (if
found suitable).
Residential
Accommodation
near the Office.
Medical & yoga

center, gym is also
available at various
campuses.
Gender Diversity & Sexual

Harrassment
We believe that every woman employee is entitled
to a work environment that is free from any
conduct which can be considered as sexual
harassment. We have in place our policy for
Protection of Womens Rights at the Workplace,
which is well communicated to all.
Walking with Women: This Initiative has been
launched for Women Employees at LTHE Upstream.
It involves sessions and much more on Grooming,
Communication, Personality, Culinary skills, Health,
Hygiene etc.
7.84%
We celebrate and promote diversity through our engagement and talent

management initiatives:
Customized Compensation & Benefits structure as per location e.g.
House rent allowance as part of monthly salary
Change in working hours during month of Ramadan in Gulf countries
Celebration of festivals-Kite flying Festival, Republic Day, Independence
Day, Dussera puja
Celebrating Womens Day,
Encouragement and recognition of Higher studies and recognition
of same
PEOPLE | 58
LEARNING & DEVELOPMENT

We continue to foster a high performance culture by recognising good performers and providing them with career enhancing
opportunities. Training is a key process we utilise to keep us in-line with dynamic market needs and technological advances. Based on
the analysis of the skill gaps, new training modules are developed and existing training modules are upgraded. This helps us in
keeping the workforce at par with global benchmarks.
LTHE nominates its employees for L&Ts Corporate training programmes like Leadership programme, Core Development Program,
EMBA programmes and special E-learning programmes (DDI, Harvard and other certification programme) on a regular basis.
Capability Development Framework

We have a comprehensive capability development
framework as depicted below. Learning & Developmental
programs covering functional, behavioural, software &
business enablers, are part of the skill building efforts and
are an intrinsic component of the comprehensive LTHE
training calendar.
Core Development Programs
Management Development Program- MDP (Tie Up
with IIMs and XLRI)
Executive Development Program-EDP(Tie Up with
SIBM),
Supervisory Development Program-SDP (Tie Up
with NMIMS)
Capability & Leadership Development (CALD)
Programmes
Learning modules custom-designed with a blend of
conceptual knowledge and experience from past projects
Competency building in Project Management
Four Levels of training through our in-house Project Management Institute.
PEOPLE | 59
CAPABILITY BUILDING
By Gender
Trained by Age
88.12%
55.73%
41.01%
3.26%
Below 30
30 to 50
Above 50
11.88%
The L&t Hydrocarbon-IIT Scholarship Scheme:
Development Centre
The Scholarship scheme offers an MTech. Offshore Structural

Engineering (OSE) Programme sponsored by LTHE in association
with IIT Madras. Offshore Structural Engineering is a very
specialized field. There are no ready-made graduates / Post
Graduate courses available that meet the requirements of this
field.
Development Centre is an initiative to identify, develop, and

groom talent to take on higher responsibilities in the near future.
It focuses on evaluating and giving actionable feedback to the
participants on a set of predefined leadership competencies.
The Development Centre uses simulated activities for enabling

the participants to:
For the Upstream business this is of strategic importance and a

constant supply of trained engineers is required. In order to meet
this strategic requirement, MTech OSE programme is initiated by
Management under the brand name - The L&T Hydrocarbon-IIT
Scholarship Scheme.
This scheme provides higher education to deserving young
engineers. The companys aim is to realize full benefits of scheme
through effective utilization of knowledge & skills acquired by
candidates completing course successfully.
Training Man Days Per Employee
3.5
3.9
2014-2015
2013-2014
Man Days by Training Type

Technical/
Functional Training
15219
Behavioural
Training
4255
Core Development
Program
1329
External
Training
121
0
4000
8000
12000
16000
Obtain a balanced assessment of their performance

on a pre-determined set of competencies
Consider options for building on their strengths and
working on their developmental needs
Create a basis to draw up professional and personal
action plans
As a part of the process a constructive feedback is given to
the participants / developees at the end of the process. In
consultation with the assessors/ developers the participants
are encouraged to draw up their individual career and personal
development plans which is then reviewed by their managers.
PEOPLE | 60
LEADERSHIP DEVELOPMENT
At LTHE, we make concerted efforts to identify high potential leaders and
groom them through seven stages of leadership development to take on
higher responsibilities in the future
A comprehensive 7-Step Leadership Pipeline Development process has
been established in partnership with our Corporate Human Resources to
enable the development of a robust pipeline of leaders with a truly global
mind-set. The Leadership Programmes are customised to employees at
different levels in the organisation. While the First-Level Leadership
Program (FLP) nurtures leadership skills for the front line high potentials,
there are separate programmes for middle level & senior managers who
are at the threshold of stepping into business leader roles.
The Seven Stage Leadership Model at LTHE

consists of the following stages:
1.
2.
3.
4.
5.
6.
7.
Management Education Program (MEP) /

First-Level Leadership Program (FLP)
Leadership Development Program (LDP)
Global Leadership Development Program (GLDP)
Transforming L&T into a Global Corporation (TLTGC)
Global CEO
International Executive Education (IEE)
Mentoring by Board of Directors.
EMPLOYEE ENGAGEMENT
LTHE is known for the engagement & retention of its employees. This is evident through the number of years many managers, leaders
& employees have spent with the organization. Many of our senior leaders are career L&T-ites. We are able to achieve these high
levels of employee engagement through a variety of programs. These include:
Immense Contribution of Noteworthy
Significance ICONS
Long Service Awards
Team Building Workshops
ICONS focuses on recognizing innovation

and excellence in every sphere of the
business operations like business
development, engineering, procurement,
construction or project management.
We are conscious of the fact that our

employees dedicate their most productive
years to our success. We recognize all our
employees who have put in tremendous
efforts and been with the company
throughout its journey through thick
and thin.
Every project holds a place of strategic

importance for its key stakeholders.
Hence, it is very essential for all
stakeholders involved, to work together
in seamless fashion given stringent
timelines, to achieve the target.
Town Halls/Reach Out Sessions
In Touch
Womens Day at all LTHE locations
Town Hall is a platform provided for the

leadership team to have an the
opportunity to appraise and interact with
the employees of the organization.
In Touch is a half yearly newsletter

from the desk of HMD Business Head,
highlighting various events including
employee engagement initiatives.
Womens Day is celebrated with various

team building activities, presentations
and prize distribution.
PEOPLE | 61
EMPLOYEE BENEFITS & LABOUR PRACTICES
HEALTH & SAFETY
Besides statutory benefits of provident fund, family pension, gratuity and

group insurance, the employee benefits at LTHE also include transport to
workplace, subsidized canteens, medical and hospitalization benefits, welfare
activities and counselling. Additionally, we adhere to the statutory requirement
and regulatory norms of wages. LTHE is a merit based organisation and we do
not differentiate between basic salaries on basis of gender. The ratio of the
basic salary of men to women is 1:1. All our employees also receive regular
performance and career development reviews.
All Unionised employees retain the right to exercise the option of collective
bargaining. In the reporting year, no operations were reported to have risks to
the right to freedom of association and collective bargaining. For notice period
regarding operational changes, LTHE follows the stipulated period specified by
the Industrial Disputes Act i.e. 21 days.
We are an OHSAS 18001 and ISO 14001 certified

company. Health and safety is the cornerstone of
LTHEs business philosophy. We strive for
continuous improvement through the protection
and development of the health and safety of our
employees and stakeholders. During the reporting
year, five crucial projects were safely
commissioned without any significant incidents.
We developed a Corporate HSE Plan and revised
various policies in line with best practices. We
have also participated in a Global Summit on
Process Safety. In addition, several cross functional
HSE audits were initiated for offshore operations
and our Hazira fabrication facility. For onshore
operations, we developed & implemented a
competency assurance & assessment system for
one of our overseas clients.
Health, Safety & Environment Policy

Our well laid out policy on Health, Safety &
Environment is compliant with all statutory safety
standards and encourages adherence to best
practices. It articulates our commitment
towards environment conservation, building a safe
and healthy workplace that is conducive to the
mental and physical well-being of employees.
Safety Committees
Safety committees at our manufacturing locations
enhance safety ownership among the workforce.
These committees encourage employee participation
in building a safety culture. Safety Review
Committees, which also comprise union office
bearers, oversee safety at manufacturing
facilities and project sites.
Policy and
Strategic
Objectives
Review
Organisation
Resources &
Documentation
Implementation
& Monitoring
Evaluation
& risk
Management
Planning
Audi
HSE Framework
Formal Agreements with Trade Unions
Golden Safety Rules
Formal agreements with trade unions include aspects

on Occupational Health & Safety like audits and
accident investigations, training and education,
complaints mechanism, right to refuse unsafe work,
and periodic inspections. They also cover aspects
related to compliance with global agreements such as
International Labour Organization (ILO) Conventions
and Codes of Practice, and arrangements or
structures for resolving problems.
Golden Safety Rules are in

place to manage hazards in
high risk areas. Strict
compliance with these rules
is enforced not just for the
employees but also for the
contract workforce
Ramadan Health & Safety Campaign
SAIH RAWL Depletion Compression Phase II
PEOPLE | 62
SAFETY PERFORMANCE
LTHE
Frequency Rate
Severity Rate
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
0.15
0.19
0.20
0.09
0.07
0.10
160.77
7.33
275.25
6.85
85.87
93.99
Fatality
Total man days lost for 2014-15 is 12480
Key Safety Initiatives

Implementation of behavior based safety program for developing and sustaining a positive HSE culture
Conducted Employees Engagement through Safety perception survey.
Developed in house portal for online monthly HSE report, unsafe act / condition, incident reporting system
HSE Training delivered to all employees. Achieved 7101 Mandays of HSE training against the target of 7000 Mandays
for the year 2014-15
Various campaigns such as L&T Safety Day, Safety Month, National Safety Week. World Environment Day, Road Safety
Week, etc observed during the year.
Employees involvement in various HSE activities such as HSE Committee, Tool Box Talks, HIRA exercise, Site HSE
walkthrough/ Inspection, etc.
Demonstration of HSE Commitment by Sr. Management at project site through site safety tours.
Sharing of lessons learnt through HSE Alerts.
Safety Engineered - Buffing Wheel Plastic Guards
A number of safety incidents were reported due to wire

particles from the buffing wheel, pricking hands and eyes of
workers operating the machine. In response the 50 MM buffing
wheel was replaced with a twisted knot and crimped buffing
wheel of 100 MM, while trial runs are being conducted on
50 MM buffing wheels with plastic guards. This plastic guard
innovation protects against the injuries caused by the splintered
wire ends. In addition arm guards have been suggested for
operators.
Family Photo in ID Card Issued at MFF Kattupalli to

employees that display their family photos on the reverse
side with the statement, My Reason for Staying Safe.
PEOPLE | 63
HUMAN RIGHTS
At LTHE, we value fundamental rights and are committed to human dignity. We
comply with ethical and human rights standards and follow the applicable local
laws and regulatory requirements. Additionally, LTHE adheres to the L&T Groups
Corporate Human Resource Policy, which aims to uphold in letter and in spirit the
United Nations Universal Declaration of Human Rights and the Fundamental
Human Rights Conventions of the International Labour Organisation.
We do not practise child labour or forced labour and ensure that human rights
clauses are included in our contract documents with sub-contractors.
We also ensure that the same are strictly adhered to within our premises and sites
and comply with all applicable legal requirements and contractual agreements.
No incident of human rights violation has been reported during the year.
Grievance Mechanisms for Labour / HR violations

Aap ke Dwaar
Town Hall
Q&A - Trainees Query Resolution Forum
Surveys (Online & Offline)
Aamne Saamne
HCP mechanisms
Interactions with Top Management
We also ensure to communicate our commitment towards human rights to our employees. We have organised 64 classroom sessions
of Corporate Governance and Code of Conduct and Ethics programmes across India and GCC locations. Among others, these programs
cover issues connected to ethical behavior, discrimination, harassment and other concerns related to human rights and professional
conduct. During the reporting year, we have covered 2502 employees i.e. 42% of our employee strength against the target of 30% with
these programmes.
OUR SUPPLY CHAIN

A Stakeholder Engagement Meet for LTHEs key suppliers was organized. This
meet was used as an opportunity to inform our suppliers were informed that we
are embarking on our journey towards a GRI G4 compliant supply chain. We also
discussed expectations from our supply chain pertaining to sustainability with
focus on GRI G4 requirements.
Additionally, we have ensured that a majority of our high value suppliers have
signed a sustainability based Supplier Code of Conduct that makes stipulations
in the following areas:
Legal compliance
Bribery and corruption
Respect for basic human rights of employees:
Prohibition of Child labor
Building Community relationship
Environmental Management
Occupational Health & Safety of employees
Supply Chain
Monitoring/Record Keeping
Supplier Stakeholder Meeting
Labour Camp Inspections

Labour Camps at our various project locations,
provide on site accommodation for Sub
contractors and department workmen. In order
to ensure proper management of these camps,
our Labour Camp manual makes
recommendations for living conditions like
hygiene, water, sanitation and availability of
other basic necessities while also stressing strict
prohibitions against underage persons,
discrimination, & anti-social behavior. Periodic
investigations are conducted to ensure
continuation of recommended Human rights
and labour practice related conditions at our
labour camps.
VALUING
EXCELLENCE,
REWARDING
INNOVATION
ICONS
(Immense
Contribution of
Noteworthy
Significance)
CASE STUDY | 64
Innovation is the credo of L&T in all the diverse businesses it caters to. L&Ts unique tagline,
Its all about Imagineering, aptly captures our innovative spirit while the Vision Statement of
the Company envisages all employees to be Innovative, entrepreneurial and Empowered.
LTHE is no exception to this enduring tradition of Innovation.
ICONs as an acronym stands for Immense Contribution of Noteworthy Significance. The
scheme was launched in February 2006 as a Non-monetary Recognition (NMR) Scheme, one of
our many employee engagement initiatives and a part of the long term strategic plan of the
Company. The focus of the scheme is on recognizing innovation and excellence in every sphere
of the business operations - be it business development, engineering, procurement,
construction or project management. Since January 2006, more than 2000 employees of LTHE
have been recognized under this scheme.
The ICONS programme has been a true success story in nurturing and reinforcing a culture of
innovation in the organisation.
A total of
573 employee
were recognised
during the
reporting year.
Approximately
300 Cr
in savings during
the reporting year.
DIFFERENT
ENTITIES,
ONE
TEAM
Project Titan
Team
building
workshop
CASE STUDY | 65
For any successful project the most important part is cohesiveness and teamwork. It is
required for the team to come together & move towards achieving common objectives and
hence achieving the goals. This becomes more challenging when there are various
stakeholders involved belonging to different work cultures and environments.
Such is the case of Project TITAN Reliance Cryogenic Ethane Receipt & Storage Facility,
Dahej which holds a place of strategic importance for its key stakeholders Reliance and
HMD, LTHE. SAIPEM is the engineering partner for the project. Considering that this project
is one of a kind as no similar project has been commissioned in such a short duration
before, there could potentially be multiple challenges ahead.
Hence, it is very essential for all agencies involved, to work together in a seamless fashion
and within stringent timelines, to achieve the set goals. Keeping the above context in mind,
a teambuilding workshop for Project TITAN was conceptualized & designed by the
Learning & Development team of HR, HMD, LTHE in association with High Places
(Renowned Team Building Experts).
The workshop was organized on 16th & 17th October, 2014 at L&Ts Leadership
Development Academy (LDA), Lonavala. Participants comprised 65 key stakeholder
representatives across RIL, SAIPEM, HMDs project management team. The workshop was a
great mix of classroom and outdoor activities, combined with high quality LDA
infrastructure and cuisine which lead to great team bonding and quality interactions
between the stakeholders.
ABOUT
THIS REPORT
STAKEHOLDER
ENGAGEMENT
BUSINESS
EXCELLENCE
ECONOMIC
GOVERNANCE
ENVIRONMENT
PEOPLE
COMMUNITIES
GRI INDEX
07 | Communities
Sowing seeds of change along the journey
Our ability to positively impact local communities and populations isnt limited to just
the employment opportunities we provide. With our mandate on Building Indias Social
Infrastructure, we hope that our presence in these communities is beneficial and
valued, through our work in the fields of education, healthcare, skill building and water
and sanitation.
COMMUNITIES | 67
Communities
As one of Indias most respected Engineering and
Construction Companies, L&T Hydrocarbon
Engineering is aware of its responsibility towards
social upliftment which is an integral part of our
corporate culture. We have developed a
framework for demonstrating our responsibility as
a corporate citizen, which lays down the principles
and mechanisms for undertaking various
programs in accordance with section 135 of the
Companies Act, 2013.
At LTHE, we are committed to designing CSR
projects that will contribute to the quality of life in
our communities by improving social
infrastructure - schools, hospitals, skill training
institutes, water supply and sanitation facilities.
Social infrastructure is indispensable for progress. Our commitment to developing Indias social infrastructure
allows us to leverage our capabilities to address the needs and challenges of the communities in and around
our operations. We also intend to make interventions that lead to systemic and sustainable changes.
Increased availability of
safe drinking water and
proper sanitation facilities
and electrification of villages
(off-grid renewables)
Water & Sanitation

and Infrastructure
Health
Improved access to education

(increased enrolment in
pre-school, children attending
neighbourhood schools) and
improved quality of learning
(better school infrastructure,
better teaching-learning process)
Building
Indias Social
Infrastructure
Improved access to quality

health care (expanding
infrastructure of health centres,
increased number of people
accessing quality health care)
Education
Skill Building
Enhancing employability
of youth (enhancing training
capacity, improved infrastructure
of skill development centres)
COMMUNITIES | 68
WATER, SANITATION & INFRASTRUCTURE

Drinking water supply and sanitation in Indiacontinue to be inadequate, despite longstanding efforts by the various levels of
government and communities at improving coverage. Inadequate access to safe water and sanitation services, coupled with poor
hygiene practices, has devastating implications for children every day, and leads to impoverishment and diminished opportunities for
many more.
Lack of infrastructure and technology in rural areas can also be crippling to economic activities and general quality of life. Through our
CSR programs, we try do our part to address water, sanitation and infrastructure issues in our neighbouring communities.
At Ponneri Taluk, located near our Kattupalli manufacturing yard,
we are working on constructing common toilet blocks in 3
Government Girl Schools and as well as repairing 4 existing toilets
so as to improve the health and hygiene conditions for students
and employees in those schools.
Our construction and pipe lines business unit has also contributed
to achieving our aims of providing water sanitation infrastructure
to underserved communities, by facilitating the setting up of water
purification systems, toilet facilities and water storage systems
across varied regions including Managalore, Nashirabad and
Barmer.
Infrastructural development through construction of roads
providing access to the temple , crematorium and park at Umbrat
village has already been undertaken wihile the provision of
drinking water facility through installation of bore-wells is in the
pipeline.
We also helped strengthen the infrastructure of Alva Milk Society
by installing a Bulk Milk Chiller (BMC) in local milk collection
centre.
EDUCATION
A variety of government initiatives to provide access to primary
education may be underway, but issues of equity, quality and
access remain areas of concern particularly in rural schools.
Among the many challenges prevalent in education in rural areas,
physical infrastructure of school facilities also play a role in high
drop out rates as well as lower quality of education. Proper
availability of basic facilities like clean toilets, drinking water,
adequate classroom facilities are essential to a quality learning
experience.
Our work in the field of education constitutes infrastructural
investments that contribute towards improved access to education
as well as improved quality of learning.
At a government school in Mangalore, we have worked towards
increasing the quality of students learning experience by providing
desktop computers. This IT infrastructure will moderninze the
teaching techniques and will also allow for increased student
engagement with school.
We also worked with a government school in Nashirabad to
provide similar interventions like ceiling fans and water &
sanitation to ensure comfort for the students. While at Rajkiya
Prathamik Vidyalaya a government primary school in Barmer we
donated bags in addition to the aforementioned interventions.
COMMUNITIES | 69
HEALTH
Primary Health Centre (PHCs) are state-owned rural health care
facilities in India. They are essentially single-physician clinics
usually with facilities for minor surgeries, too. They are part of the
government-funded public health system in India, the most basic
units of this system and the cornerstone of rural healthcare
In the field of health care we are working on the Up-gradation and
renovation of a Primary Health Care Center, in Suvali, Hazira.
Prior conditions
The health care centre at Suvali caters to the medical needs of

around 30,000 villagers and around 45,000 contract labour persons
working in the Hazira Industrial area.
Given the large population that it serves and the existing
conditions of the centre, an intervention was urgent. The
requirements that we were able to cater to included the following:
Renovation of the most mortem facilities
Renovation of the PHC structure
A new doctors room
Renovation of two rooms used by support staff
Refurbishment of the walkway and dressing area
Restoration of the furniture
During Construction
Post construction
Installation of a Bulk Milk Chiller at Alva Milk Society
In addition to the standard activities defined by our CSR

framework, we also provide assistance in case of national
emergencies. In response to the devastation and loss wrought by
extreme weather events like floods, we have also donated 0.44 Cr
to the Kashmir Flood Victims through the Prime Ministers
National Relief Fund.
STRENGTHENING
THE
INFRASTRUCTURE
OF
ALVA MILK
SOCIETY
CASE STUDY | 70
Alva Village is situated in the area behind L&T Knowledge city, Vadodara. It is a small
village with a population of about 1600 people. The population is divided into 283
households out of which 249 households own milch animals. Their family income
primarily depends on milk sales.
To enrich the life of the villagers and help to improve their livelihood, LTHE has helped
install a Bulk Milk Chiller (BMC) in the local milk collection centre. This is in line with a
more scientific way of milk collection and indicates progress and modernisation of the
process of milk collection. It ensures better quality of the collected milk and reduces
wastage. Positive results impact the villagers, the mother dairy plant and the society in
general. Higher income would lead to a better quality of life for the villagers and
would lead to holistic rural development. The impact of this installation is life-long for
the village and maintenance cost would be minimal.
Current Process in Alva Village
Villagers (Milk producers) milk
the cattle
They travel to their village collection
point
Their milk is tested for fat content
and impurities and they get a printed
receipt for the same
The milk producers then decant the
milk into bigger cans
The bigger cans are transported to
the Dairy plant at a fixed time daily
in open vehicles.
Process after installing the BMC

Farmers (Milk producers) milk
the cattle
They travel to their village
collection point
Their milk is tested for fat content
and impurities and they get a printed
receipt for the same
The milk is then transferred to the
Bulk Milk Chiller directly
There is no human intervention and
wastage or any other loss
Issues Solved
Milk loss by pilferage and wastage during transportation will be prevented
The conversion of milk to unnecessary sour curd during transportation is avoided
District Centres (DC) get Rs. 5.00/lit more for the milk price than the normal rate
Fat loss during transportation will be avoided as middlemen add water to dilute
the milk
Milk producers get more time to milk the animals
District Centre profit margin will rise 5 % more than normal and that will be
transferred to milk producers thus enabling more income to a household for the
same investment.
The procurement of milk from such village

societies improves and the transportation cost of
raw milk also gets reduced since it is taken to
the dairy, for processing in a chilled environment
Pankaj Shah
Managing Director, Baroda Dairy
Times of India, May 2015
Yoga Session conducted by LnTeers at Alwa Municipal School, near Knowledge City Vadodara.
CASE STUDY | 72
L&Teering
AT VADODARA
AND POWAI
Employee Volunteering is also a
significant element of our
corporate social responsibility
agenda. Through the aegis of
our enthusiastic and committed
L&Teers we have helped
promoting education in schools
and other social outreach
programs around multiple work
locations including Mumbai,
Baroda, Hazira and Chennai.
Locations:
14 Anganwadis around
Vadodara Beneficiaries:
underprivileged Students
Benefits:
Improved environment for studying
to trigger exploration among children
for their development
Infrastructure
development of
14 Anganwadis
Healthcare
Awareness and
providing kits
As a citizen of this society,

I always felt the responsibility to
do something for those who are
not fortunate enough to have a
good education. LTHE CSR has
provided me a platform where I
can work for those children. Every
Sunday when I saw the smiles on
their faces, I feel proud of being
an LTHE-ite.
Anirban Pandit,
Front End Engineering Design Dept
Locations:
Government Schools, Under
Privileged Societies
40 schools and 6000 Beneficiaries
Benefits:
Increase awareness on hygiene,
sanitation and critical ailments
Providing basic Medical Kit
Locations:
Ankadiyapura, Panch Devala, Danoli,
Timbi, Mahammadpura
Approximately 10000
Benefits:
Encourage scientific collection
Improved livelihood.
Reduce wastage
Installing Bulk Milk

Chiller (BMC) in 5 local
milk collection center
Ghar Ghar
Shouchalay
(175 toilets)
Locations:
Alva
1000 Villagers
Benefits:
100% Sanitation complaint village
Improve in improve the health
and hygiene
ROLES & RESPOSIBILITIES OF

L&Teers
Ownership: Responsible for execution
of all mainstream CSR Projects
Interaction with Society: Involvement in
direct conversation with the representatives
of the society. Understand their need.
Planning & Scheduling: They are the
in-charge of flawless execution of the projects
Reporting & Documentation: Responsible
for all project related documents
Be the Face of LTHE: Raise companys
standing in the community
BENEFITS OF
VOLUNTEERING
Personal satisfaction
Encouraging Teamwork
Improved Communication
Building Brand Awareness
Utilizing Project Management Skills
CASE STUDY | 73
L&teers at the Powai campus have formed a zealous LTHE MAD core team
supported by an equally strong squad of enthusiastic and sincere volunteers. The
project involves a tie up between LTHE and Make A Difference (MAD) an NGO in
the field of Child Education. LTHE MAD venture aims at mobilizing the employee
volunteer force for activities that benefit education for children. Our volunteers
have been selected through a rigorous recruitment process conducted by the
MAD team.
Child Connect Activities Regular educational visits to shelter

homes
Child Connect comprises of two programs:

Ed Support: Classroom program for children at shelter homes. LTHE employees
spend 3-4 hrs per person per week to help these children in their academics
(Mathematics and English).
Discover Session: Volunteers will conduct classes on life skills and personality
trainings. Discover program aims at grooming the kids and awakening their
professional aspirations by exposing them to professionals from varied careers.
Employee Engagement: Donate while you learn
Employee engagement program comprises of activities for employees through

creative and informative workshops. The proceeds of the workshop are used for
supporting the activities of MAD.
LTHE MADs first workshop Eco-friendly Ganesha Making Workshop organised
by Mr. Dipesh Nilkanth, intended to enable the employees to celebrate festivals in
an environment friendly manner, set the creativity flowing of the employees in
Powai. A repeat workshop was also organized in the month of September on
public demand - Number of participant - 49.
Corporate Fund Raising Raise Funds, Support the Initiative
The Team came up with a novel idea of teaming up its 69th Independence Day
Celebrations with a Corporate Fund Raising Event organized at LTHE Powai
locations. The aim was to donate blackboards to one of the shelter home
classrooms. The fund raising workshop was a great hit. The collection crossed the
INR 60000 level mark with contributors spreading across different cadres. LTHE
has successfully donated 4 black boards and 120 pairs of socks. We have also
handed over a cheque of 15000 as a part donation drive conducted through
employee engagement activity of Eco friendly Ganesha Making workshop.
Creative thinking, activity plans,

enthusiasm, challenges all describe an
LTHE MAD Team Member. Assuming
the role of a Child Connect Lead has
unleashed my potentials. The positivity
spills over into the professional me.
All, while changing lives.
Shama Kamat,
R&D Department
AWARDS & ACCOLADES | 74
Awards & Accolades

L&T Hydrocarbon Engineering won the Project
of the Year Award, instituted by the Project
Management Institute India (the Indian chapter
of PMI, USA) for the ProcesscumLiving Quarter
Platform (PLQP) Project of Gujarat State
Petroleum Corporation (GSPC).
The aromatics complex at Mangalore, executed

by L&T HydrocarbonEngineering on a turnkey
basis for ONGCMangalore Petrochemicals
Limitedwas adjudged the second best project
of the year by Project ManagementInstitute,
India (the Indian chapter of PMI, USA).
L&T Hydrocarbon Engineering (LTHE) wonthe

SAP ACE Award for implementingProject PACE
eSourcing Portal (ARIBA)across the company.
L&TEngineering Centre, Mumbai wonthe

prestigious Intergraph InternationalGolden
Valve Award 2014 at the HxGNLIVE conference
2014.
MFF Hazira awarded RoSPA Gold award for

Occupational Health & Safety Awards
Frost & Sullivan (F&S), awarded L&T's Modular

Fabrication Facility (MFF Hazira) the prestigious
The Economic Times India Manufacturing
Excellence Award (IMEA).
MFY Sohar received The Sword of Honor from

British Safety Council.
LTHE received the Health, Safety & Environment
Award FY 2014 from PCML in recognition of our
"Significant contribution through exceptional
HSE Performance" demonstrated during the
course of Yetagun Project.
LTHE-Upstream awarded for Longest Accident

Free Period by National Safety Council
Maharashtra Chapter
PCML (Myanmar - Operations) has awarded L&T
the HSE Award for the year 2014 under the
Category: Contractor- International.
ACRONYMS | 75
Acronyms
ASME
American Society of Mechanical Engineers
ILO
International Labour Organization
BEE
Bureau of Energy Efciency
IP
Intellectual Property
BIS
Bureau of Indian Standards
IPM
Institute of Project Management
BMCG
Bharat Metal Cutting Gas
IPMA
Bn
Billion
International Program Management

Association
BU
Business Unit
IS
Indian Standard
CFL
Compact Fluorescent Light
ISO
International Organization for Standardization
CFO
Chief Financial Ofcer
IT
Information Technology
CII
Confederation of Indian Industry
IIT
Indian Institute of Technology
CIS
Commonwealth of Independent States
kWh
Kilowatt Hour
CO2
Carbon Dioxide
LDA
Leadership Development Academy
CPCB
Central Pollution Control Board
LPG
Liqueed Petroleum Gas
CSI
Corporate Social Initiatives
L&T
Larsen & Toubro
CSR
Corporate Sustainability Report
LED
Light-emmiting Diode
CSTI
Construction Skills Training Institute
LNG
Liquefied Natural Gas
DA
Dissolved Accetylene
LTHE
DNV
Det Norske Veritas
LTI
Loss Time Injuries
EMS
Environmental Management System
MDC
Management Development Centre
EPC
Engineering, Procurement and Construction
MFF
EPS
Early Production System
MFY
Modular Fabrication Yard
EVA
Economic Value Added
MMTPA Million Metric Tonnes Per Annum
FICCI
Federation of Indian Chambers of

Commerce and Industry
MOPU
Mobile Offshore Production Unit
MT
Metric Tonne
FPSO
Floating Production, Storage & Offloading
MW
Megawatt
FR
Fatality Rate
MWP
Megawatt Peak
FY
Financial Year
NGO
Non-Governmental Organisation
GCC
Gulf Cooperation Council
NOx
Oxides of Nitrogen
GETs
Graduate Engineer Trainees
NVG
National Voluntary Guidelines
GHG
Greenhouse Gas
ODS
Ozone-depleting Substances
GJ
Gigajoule
OFC
Optical Fibre Communications
GRI
Global Reporting Initiative
HSE
Health, Safety & Environment
OHSAS Occupational Health and Safety

Assessment Series
HCP
Hydrocarbon Construction & Pipelines
HMD
Hydrocarbon Mid & Downstream
HR
Human Resources
HVAC
Heating Ventilation and Air Conditioning
IICE
Indian Institute of Chemical Engineers
IIM
Indian Institute of Management
R&D
Research and Development
STP
Sewage Treatment Plant
SR
Severity Rate
UAE
United Arab Emirates
UPES
University of Petroleum and Energy Studies
UPS
Upstream Business Unit
ABOUT
THIS REPORT
STAKEHOLDER
ENGAGEMENT
BUSINESS
EXCELLENCE
ECONOMIC
GOVERNANCE
ENVIRONMENT
PEOPLE
COMMUNITIES
GRI INDEX
GRI INDEX | 78
GRI Index
DISCLOSURES
DISCLOSURE LEVEL
CROSS REFERENCE
/DIRECT ANSWER
IF APPLICABLE,
INDICATE PART
NOT REPORTED
General Standard Disclosure

STRATEGY AND ANALYSIS
G4-1 Statement from
senior decision maker
COMPLETE
G4-1 Description of key

impacts, risks & opportunities
COMPLETE
18
ORGANISATIONAL PROFILE
G4-3 Name of the organisation
COMPLETE
G4-4 Primary Brands, Services,

Products
COMPLETE
4,5
G4-5 Location of HQ
COMPLETE
G4-6 Number and names of

countries where there are
significant operations
COMPLETE
G4-7 Nature of Ownership
COMPLETE
G4-8 Markets Served
COMPLETE
4,6
G4-9 Scale of Organisation
COMPLETE
8,9
G4-10 Employee Details
COMPLETE
56,57
G4-11 Collective Bargaining
COMPLETE
56
G4-12 Organisation's Supply

Chain
COMPLETE
13
G4-13 Changes in Organisation
COMPLETE
G4-14 Precautionary Principle
COMPLETE
18
G4-15 External EES Charters

subscribed or endorsed
COMPLETE
G4-16 Memberships and

Associations
COMPLETE
36
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
G4-17 Entities included/

excluded in consolidated
financial statements or
equivalent documents
COMPLETE
11
G4-18 Report content & aspect

boundaries process
COMPLETE
11
G4-19 List all Material Aspects
COMPLETE
11
G4-20 Aspect Boundary Inside organisation
COMPLETE
13
G4-21 Aspect Boundary Outside organisation
COMPLETE
13
G4-22 Restatement and reason

of information provided in
previous reports
COMPLETE
Owing to a misstatement of data

from one of the sites last year,
energy related data in last years
report has been wrongly
calculated. Values have been
corrected & recalculated for
this report.
G4-23 Significant Changes

COMPLETE
from previous reporting periods
in the scope and aspect
boundaries
There has been an increase in

reported information to include
employee transport related data
(scope 3 emissions)
STAKEHOLDER ANALYSIS
G4-24 List of Stakeholder
Groups
COMPLETE
13,14
REASON FOR
OMISSION
COMMENTS
DISCLOSURES
DISCLOSURE LEVEL
GRI INDEX | 79
CROSS REFERENCE
/DIRECT ANSWER
IF APPLICABLE,
INDICATE PART
NOT REPORTED
STAKEHOLDER ANALYSIS
G4-25 Basis of Stakeholder
identification and selection
COMPLETE
13
G4-26, 27 Frequency of
Stakeholder Engagments and
key concerns raised and
organisation's approach to
managing them
COMPLETE
18
REPORT PROFILE
G4-28 Reporting Period
COMPLETE
2014 - 2015
G4-29 Date of recent previous

report
COMPLETE
2013 - 2014
G4-30 Reporting Cycle
COMPLETE
ANNUAL
G4-31 Contact Point for report
COMPLETE
11
G4-32 GRI Index
COMPLETE
76
G4-33 External Assurance
COMPLETE
4,6
G4-34 Organisational Structure

ESG Committee
COMPLETE
33
G4-35 Process to delegate

authority on EESG
COMPLETE
33
G4-36 Appointed executivelevel position for EESG
COMPLETE
33
G4-37 Consultation and input

from stakeholders
COMPLETE
33
G4-38 Composition of
governance body and
its committees
COMPLETE
33
G4-39 Chair of the highest

governance is an executive
officer too?
COMPLETE
33
G4-40 Nomination & Selection

process for governance body
and committees
COMPLETE
34
G4-41 Process of avoiding and

managing Conflict of Interest,
and disclosure to stakeholders
NOT REPORTED
G4-42 Roles, Development

Process in EESG strategies
COMPLETE
G4-43 Measures to develop

and enhance governance
body's EESG knowledge
NOT REPORTED
G4-44 Process of Evaluation of

Performance of governance
body's on EESG
COMPLETE
36
G4-45 Role of Governance

body in identifying EESG risk
opportunity and implementing
due diligence processes
COMPLETE
33
G4-46 Effectiveness of risk

management on EESG
PARTIAL
35
G4-47 Frequency of the risk

review
COMPLETE
35
G4-48 Governance body that

approves the SR
COMPLETE
34
G4-49 Process of
COMPLETE
Communicating critical concerns
to the governance body
36
GOVERNANCE
33
REASON FOR
OMISSION
COMMENTS
DISCLOSURES
DISCLOSURE LEVEL
GRI INDEX | 80
CROSS REFERENCE
/DIRECT ANSWER
IF APPLICABLE,
INDICATE PART
NOT REPORTED
GOVERNANCE
G4-50 Nature and total number COMPLETE
of critical concerns that were
communicated to governance
body and mechanism used to
address and resolve them
35
G4-51 Remuneration policies

COMPLETE
for governance body and senior
executives for the below types
of remuneration
36
G4-52 Process for Determining

remuneration
COMPLETE
36
G4-53 Stakeholder views of

remuneration
NOT REPORTED
G4-54 Ratio of annual total

compensation for highest-paid
individual in each country of
significant operation to median
annual total compensation for
all employees in the same
country
NOT REPORTED
G4-55 Ratio of % of increase

in annual total compensation
of highest-paid individual to
median % increase in annual
total compensation for all
employees
NOT REPORTED
ETHICS AND INTRIGITY

G4-56 Code of Conduct and
Code of Ethics
COMPLETE
35
G4-57 Seeking advice on

internal and external
governance related issues
COMPLETE
35
G4-58 Internal and External

mechanism reporting concerns
about unethical or unlawful
behaviour
COMPLETE
35
G4-EC1 Direct economic value

generated and distributed
(EVGD)
COMPLETE
40
G4-EC2 Financial Implications

and other risks & opportunities
for organization's activities due
to climate change
COMPLETE
40
G4-EC3 Benefit Plan Obligation
COMPLETE
41
G4-EC4 Financial Assistance

received
COMPLETE
We receive no financial assistance

from the Government
ECONIMIC
G4-EC5 Ratio of standard entry NOT REPORTED

level wage by gender compared
to local minimum wage at
significant locations of
operation
G4-EC6 Proportion of senior
management hired from local
community at significant
locations of operations
PARTIAL
G4-EC7 Development and

impact of infrastructure
investment and services
supported
NOT REPORTED
40
Senior Management
percentages not
available
REASON FOR
OMISSION
COMMENTS
GRI INDEX | 81
DISCLOSURES
DISCLOSURE LEVEL
CROSS REFERENCE
/DIRECT ANSWER
G4-EC8 Significant indirect

economic Impact, including
extent of impact
PARTIAL
40
G4-EC9 Proportion of spending

on local suppliers at significant
locations of operations
NOT REPORTED
IF APPLICABLE,
INDICATE PART
NOT REPORTED
REASON FOR
OMISSION
COMMENTS
Extent of impact not

reported
SPECIFIC STANDARD DISCLOSURE

ENVIRONMENT
G4-EN1 Materials by weight
or volume
COMPLETE
49
G4-EN2 Percentage of
materials used that are recycled
input materials
COMPLETE
49
G4-EN3 Energy Consumption

within the organization
COMPLETE
43
G4-EN4 Energy consumption

outside the organization
PARTIAL
43
G4-EN5 Energy Intensity
COMPLETE
43
G4-EN6 Reduction of energy

consumption
COMPLETE
44
G4-EN7 Reduction of energy

requirements in products and
services
COMPLETE
44,45
G4-EN8 Total Water

Withdrawal by Source
COMPLETE
47
G4-EN9 Water sources

significantly affected by
withdrawal of water
COMPLETE
47
G4-EN10 Percentage and

total volume of water recycled
and reused
PARTIAL
47
G4-EN11 Operational sites

owned/leased/managed/or
adjacent to, protected areas &
high biodiversity value outside
protected areas
COMPLETE
Being a responsible company,

we take protection of the world's
species and resources seriously.
Our facilities are located in
notified industrial areas and do
not fall under biodiversity rich or
protected habitats.
G4-EN12 Description of
activities in these biodiversity
rich areas
N/A
G4-EN13 Habitats protected

or restored
N/A
A guidance document on scientific

method of tree plantation along
with operation and maintenance
has been made available across
campuses and project sites.We
have taken up an initiative to
present a tree certificate instead
of a flower bouquet to the guests
visiting our Campuses. The
certificate demonstrates that a
tree sapling would be planted on
behalf of the guest.
G4-EN14 Total number of

IUCNred list species and
national conservation list
species with habitats affected
by operations, by level of
extinction risk:
COMPLETE
There are no IUCN red list species

and national conservation list
species with habitats affected by
operations
G4-EN15 Direct GHG emissions

(scope 1)
COMPLETE
46
Owing to a misstatement of data

from one of the sites last year, energy
related data in last years report has
been wrongly calculated. Values have
been corrected & recalculated for this
report.
Data reported does not
include all sites within
scope
Data reported includes only employee

transport at Cluster 1, HCP Domestic
and MFF Kattupalli. Employee
transport at campus sites have been
reported in L&T group report

scope
Data reported includes only Cluster1

and MFF Kattupalli data
GRI INDEX | 82
DISCLOSURES
DISCLOSURE LEVEL
CROSS REFERENCE
/DIRECT ANSWER
G4-EN16 Energy Indirect GHG

emissions (scope 2)
COMPLETE
46
G4-EN17 Other Indirect GHG

emissions (Scope 3)
PARTIAL
46
G4-EN18 GHG emission

intensity
COMPLETE
46
G4-EN19 Reduction of GHG

emission
COMPLETE
46
G4-EN20 Emissions of ozone

depleting substance (ODS)
PARTIAL
G4-EN21 NOx, SOx and other

significant air emissions
PARTIAL
IF APPLICABLE,
INDICATE PART
NOT REPORTED
REASON FOR
OMISSION
COMMENTS

scope

transport related emissions from
Cluster 1, HCP Domestic and MFF
Kattupalli. Emissions from employee
46

scope
Data reported includes only HCP

Domestic and MFF Hazira data.
Employee transport at campus sites
have been reported in L&T group
report
46

scope
G4-EN22 Total Waste Discharge PARTIAL

by Quality and Destination
A total of 35,181 m3 of waste

water was generated at MFY
Sohar this year, and disposed
off to the municipal STP,
without affecting any
surrounding biodiversity.
A total of 35,181 m3 of
waste water was
generated at MFY Sohar
this year, and disposed
off to the municipal STP,
without affecting any
surrounding biodiversity.
G4-EN23 Total Weight of

Waste by Type and Disposal
Method
COMPLETE
50
G4-EN24 Total Number and

Volume of Significant Spills
COMPLETE
50
G4-EN25 Weight of
transported, imported,
exported, or treated
Hazardous Waste
COMPLETE
50
G4-EN26 Size, protected

status and biodiversity value
of water bodies and other
protected habitats affected
by discharge
NOT REPORTED
G4-EN27 Extent of impact

mitigation of environmental
impacts of products and
services
COMPLETE
24
G4-EN28 Percentage of
products sold and their
packaging materials that
are reclaimed by category
N/A
G4-EN29 Monetary value of

significant fines and total
number of non-monetary
sanctions for non-compliance
with environmental laws and
regulations
COMPLETE
There have been no significant

fines for non compliances with
environmental laws and
regulations
G4-EN30 Environmental
impacts of transporting
products and other goods and
materials for the organization's
operations, and transporting
members of the workforce
PARTIAL
46
G4-EN31 Total environmental

protection expenditures and
investments by type
COMPLETE
51
G4-EN32 New suppliers that

were screened using
environmental criteria
NOT REPORTED

include transport of
materials/products.

transport at Cluster 1, HCP Domestic
and MFF Kattupalli. Employee
DISCLOSURES
DISCLOSURE LEVEL
G4-EN33 Significant actual and

potential negative
environmental impacts in the
supply chain and actions taken
COMPLETE
G4-EN34 Number of Grievances NOT REPORTED

about environmental impacts
filed, addressed, and resolved
through formal grievance
mechanisms
GRI INDEX | 83
CROSS REFERENCE
/DIRECT ANSWER
IF APPLICABLE,
INDICATE PART
NOT REPORTED
There have been no significant

actual and potential negative
impacts
SOCIAL LABOUR AND DECENT WORK

G4-LA1 Total number and
rates of new employee hires
and employee turnover by
age group, gender and region
COMPLETE
56
G4-LA2 Benefits provided to

full-time employees that are
not provided to temporary or
part-time employees, by
significant locations of
operation
COMPLETE
41,61
G4-LA3 Return to work

and retention rates after
parental leave, by gender
NOT REPORTED
G4-LA4 Minimum notice

periods regarding operational
changes, including whether
these are specified in
collective agreements
COMPLETE
61
G4-LA5 % of total workforce

represented in formal joint
management - worker health
and safety committees that
help monitor and advice on
occupational health and safety
programs
PARTIAL
61
G4-LA6 Injury and rates of

injury, occupational diseases,
lost days, and absenteeism,
and total number of workrelated fatalities, by region
and by gender
COMPLETE
62
G4-LA7 Workers with high

incidence or high risk of
diseases related to their
occupation
NOT REPORTED
G4-LA8 Health and safety

topics covered in formal
agreements with trade unions
COMPLETE
61
G4-LA9 Average hours if

training per year per employee
by gender, and by employee
category
COMPLETE
59
G4-LA10 Programs for skills

management and lifelong
learning that support the
continued employability of
employees
COMPLETE
60
G4-LA11 Percentage of
employees receiving regular
performance and career
development reviews, by
gender and by employee
category
COMPLETE
61
REASON FOR
OMISSION
COMMENTS
GRI INDEX | 84
DISCLOSURES
DISCLOSURE LEVEL
CROSS REFERENCE
/DIRECT ANSWER
G4-LA12 Composition of
governance bodies and
breakdown of employees per
employee category according
to gender, age group, minority
group membership, and other
indicators of diversity
NOT REPORTED
G4-LA13 Ratio of basic salary

and remuneration of women
to men by employee category
COMPLETE
61
G4-LA14 % of new suppliers

screened on labour practice
criteria
NOT REPORTED
G4-LA15 Significant actual and

potential negative impacts for
labour practices in the supply
chain and actions taken
NOT REPORTED
G4-LA16 Number of grievances

about labour practices filed,
addressed, & resolved through
formal grievance mechanisms
NOT REPORTED
G4-HR1 Number and

percentage of significant
investment agreements and
contracts that include human
rights clauses or that
underwent human rights
screening
NOT REPORTED
G4-HR2 Training on HR
policy
COMPLETE
63
G4-HR3 Total number of

incidents of Human rights
violations and corrective
actions taken
COMPLETE
63
G4-HR4 Freedom of
association and collective
bargaining
PARTIAL
63
G4-HR5 Child Labour
COMPLETE
63
G4-HR6 Forced or
compulsory labour
COMPLETE
63
G4-HR7 Security Practices
NOT REPORTED
G4-HR8 Indigenous Rights
NOT REPORTED
G4-HR9 Number and % of

operations that have been
subject to human rights
reviews or impact assessments
NOT REPORTED
G4-HR10 % of suppliers
screened
NOT REPORTED
G4-HR11 Actual and potential

negative human rights impacts
in the supply chain and actions
taken
NOT REPORTED
G4-HR12 Number of grievances NOT REPORTED

about human rights impacts
filed, addressed, and resolved
through formal grievance
mechanisms
IF APPLICABLE,
INDICATE PART
NOT REPORTED
While we currently use more

informal mechanisms where
employees can report their
grievances, we are aiming to
develop a more robust and
formal grievance mechanism
to improve the process of
reporting of grievances.
SOCIAL HUMAN RIGHTS
While we currently use more

informal mechanisms where
employees can report their
grievances, we are aiming to
develop a more robust and
formal grievance mechanism
to improve the process of
reporting of grievances.
REASON FOR
OMISSION
COMMENTS
DISCLOSURES
DISCLOSURE LEVEL
GRI INDEX | 85
CROSS REFERENCE
/DIRECT ANSWER
IF APPLICABLE,
INDICATE PART
NOT REPORTED
SOCIAL SOCIETY
G4-SO1 % of operations with
implemented local community
engagement, impact
assessments, and development
programs
COMPLETE
67-70
G4-SO2 Operations with

significant actual and potential
negative impacts on local
communities
COMPLETE
G4-SO3 Total number and

percentage of operations
assessed for risks related to
corruption and the significant
risks identified
NOT REPORTED
G4-SO4 Communication and

training on anti-corruption
policies and procedures
COMPLETE
36
G4-SO5 Confirmed incidents

of corruption and actions taken
COMPLETE
36
G4-SO6 Total value of political

contributions by country and
recipient/beneficiary
COMPLETE
No political contributions
were made
G4-SO7 Anti-competitive
behaviour
COMPLETE
36
G4-SO8 Compliance:
Monetary value
COMPLETE
36
G4-SO9 % new suppliers that

were screened using criteria for
impacts on society
NOT REPORTED
G4-SO10 Actual and potential

negative impacts on society in
the supply chain and actions
taken
NOT REPORTED
G4-SO11 Grievance
mechanisms for impacts on
society
NOT REPORTED
PRODUCT RESPONSIBILITY
G4-PR1 % of significant
COMPLETE
products and serviceds assessed
for health and safety impacts
23
G4-PR2 Total number of

incidents from non-compliance
for health and safety
COMPLETE
23
G4-PR3 Type and % of

products and services that
require information & labelling
COMPLETE
None of our products fall into this

cateorgy. However we do adhere
to required and appropriate
standards for all activities.
G4-PR4 Total number of

incidents of non-compliance
for labelling
N/A
G4-PR5 Results of surveys

measuring customer
satisfaction
COMPLETE
19
G4-PR6 Sale of banned or

disputed products
N/A
REASON FOR
OMISSION
COMMENTS
DISCLOSURES
DISCLOSURE LEVEL
GRI INDEX | 86
CROSS REFERENCE
/DIRECT ANSWER
IF APPLICABLE,
INDICATE PART
NOT REPORTED
PRODUCT RESPONSIBILITY
G4-PR7 Number of nonCOMPLETE
compliance incidents for market
communications, including ads,
promotion, sponsorship by type
and outcome
23
G4-PR8 Total Number of

COMPLETE
substantiated compliants
regarding breaches of customer
privacy and losses of customer
data
19
G4-PR9 Monetary fines for

COMPLETE
non-compliance concerning use
of product and services
23
REASON FOR
OMISSION
COMMENTS

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The Journey Begins

L&T Hydrocarbon Engineering

SUSTAINABILITY REPORT 2014-2015

L&T Hydrocarbon Engineering

With just a year behind us

SUSTAINABILITY REPORT 2014 - 2015

MESSAGE FROM THE CEO & MD | 01

Message from the

new geographies, internationally. During the year,

SUSTAINABILITY REPORT 2014 - 2015

In the varied geographies we operate in, we

MESSAGE FROM THE CEO & MD | 02

With the passage of the Companies Act, 2013, the

SUSTAINABILITY REPORT 2014 - 2015

MD & CEO, L&T Hydrocarbon

Head HMD D + UPS

Head-Corporate Centre & IT

SUSTAINABILITY REPORT 2014 - 2015

Some Facts in Figures

SUSTAINABILITY REPORT 2014 - 2015

LTHE operates across the

HYDROCARBON MID & DOWNSTREAM

SUSTAINABILITY REPORT 2014 - 2015

In-house fabrication with the

The Companys offshore installation

The client base includes ONGC,

L&T Chiyoda - a joint venture with

Project Management Set-ups

Dedicated project specialists based

Within India, the Companys client

L&T-GULF Private Limited joint

Technology and Capacity

We offer innovative construction

Within India, pipeline projects have

SUSTAINABILITY REPORT 2014 - 2015

L&Ts Nationwide Network

SUSTAINABILITY REPORT 2014 - 2015

L&Ts GLOBAL PRESENCE | 09

L&Ts Global Presence

Modular Fabrication Yard, Sohar, Oman

Modular Fabrication Facility

Modular Fabrication Facility

SUSTAINABILITY REPORT 2014 - 2015

ABOUT THIS REPORT | 11

About this Report

This report covers LTHEs environment, economic and social performance

This report covers all LTHE project sites (Domestic and

Queries pertaining to the content

Stakeholder Level of Concern

SUSTAINABILITY REPORT 2014 - 2015

We believe better communication with our stakeholders

our stakeholders expectations, in turn contributing to

In addition, we use multiple communication platforms

Materiality across our Value Chain

SUSTAINABILITY REPORT 2014 - 2015

OUR KEY STAKEHOLDERS

Sodexo at your desk

Ru-Ba-Ru Interactions with Trainees

Our business involves long term engagement with our

Appreciation tree: An initiative to appreciate and acknowledge employees

SUSTAINABILITY REPORT 2014 - 2015

Water Technologies. The Upstream Technology Centre identifies

EXCELLENCE IN PROJECT MANAGEMENT