Corporate Governance

Corporate Governance at L&T Hydrocarbon Engineering Limited (the Company) is based on the principles of integrity, fairness, equity transparency, accountability and commitment to values. Good governance practices stem from the culture and mindset of the organisation. As our Board and Senior management evince keen interest in the practices and performance of companies, Corporate Governance has emerged on the centre stage. Corporate Governance is an integrated framework whereby company and its management formally organise themselves for a defined purpose in a corporation, and they apply systemic processes consistently to achieve predicted performance for sustainable development.

The proper board guidance and monitoring of the progress by strategical leadership, ensures effective corporate governance of the company. The board structure and the meeting and related processes of the company are tuned to get the most out of board in achieving the set goals. It is an ongoing endeavor to improve upon these aspects and adopt innovative approaches for leveraging resources, converting challenges into opportunities and opportunities into achievements. We foster a healthy, growth oriented and inspiring environment for development of human resources.

The Corporate Governance framework in the Company is based on an effective independent Board, alignment of the Board's functions and the constitution of Board committees as may be required. The Board of L&T Hydrocarbon has 4 directors, of which 2 are Independent directors.
Directors of the Company

Code of Conduct & Vigil Mechanism

The Code of Conduct of the company outlines specific behaviors that are required or prohibited as a condition of ongoing employment and applies to all employees and is equally extended to Board and Senior management.

L&T Hydrocarbon Engineering is a professionally managed Indian multinational, committed to total customer satisfaction & enhancing stakeholders’ value. To ensure that vendors and other stake holders align to the standards & fair business practices set by the company, vendors code of conduct policy & undertaking by vendor on understanding its terms, also forms a part of vendors registration process.

One of the step in building a successful culture is integration of a strong compliance program, including a whistle-blower/vigil mechanism with company’s vision which helps company to implement proactive measures which in turn ensures business success and encourages to build a strong culture where employees can feel safe, protected and thrive. At group level, the policy has been also extended to suppliers and contractors as well to enable them to report concerns about unethical behaviour, misconduct, violation of legal or other requirements, improper practices, actual or suspected fraud by Company official without feat of unfair treatment or punishment. Hotline number and other reporting channels/mechanisms are mentioned in detail in policy. Amidst other, Vigil Mechanism Policy assures non-retaliation and non-victimisation on the complainant.

Corruption and Anti-Competitive Behavior

Professionalism, principles of ethics and fair practices govern the behavior pattern in the Company. We will never intend to be 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. Code of Conduct read along with other relevant policies, cocoons the very element of this and company ensures its stake holders are made aware of this vide its awareness programs and undertakings.

Women’s Workplace Safety Policy

At L&T Hydrocarbon, 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. Our Women’s Workplace Safety Policy drawn with adherence to Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“POSH Act”) is applicable to all employees irrespective of their level, rank or designation, across all departments, functions and operations.

Risk Management Framework

The Company’s risk management policy and guidelines have helped to create a consistent set of standard risk-tracking templates and measure risk levels, This enables it to develop the ability to anticipate and respond to the challenged in timely manner. Each project goes through a structured pre-bid risk review and periodic review of execution risk, enabling effective monitoring and raising timely alerts.

Risk Committee of the company also ensures that any exposures/risks pertaining to place of business/conduct etc are highlighted to the apex body or Board, as case is, and what and how the preventive measures are deployed.

Internal Control System

Our internal control system is proportional to the extent of our business. According to a corporate policy on internal control we have a structured framework that identifies, rectifies, monitors and reports internal control weaknesses in the organisation.

The Company also periodically engages professionals to carry out review of the effectiveness of various control processes in businesses and support functions. All significant observations and corrective actions taken are reviewed by the management & apprised to the Board on timely basis.

Health, Safety, Environment & Sustainability

Environmental Health, Safety and Sustainability are core values and the Company remains committed to achieving HSE excellence at workplace by ensuring health and safety of people and protection of the environment. The business strives for continuous improvement for the protection and development of health, safety, and environmental assets of its employees and stakeholders.

The Company is reinforcing safe working culture through various initiatives by driving HSE excellence across EPC value chain from Engineering to commissioning of projects, applied to all stakeholders. HSE Assurance Audits are carried out as and when required for all business verticals to ensure the effective implementation of HSE management system across business. The Company also is continuing to create awareness amongst its employees to report near miss incidents in order to take preventive measures.

Corporate Social Responsibility

In-line with Group’s theme “Building India’s Social Infrastructure”; the Company is committed to implementing projects that will contribute to the quality of life, including schools, hospitals, skill training institutes, water supply and distribution and sanitation facilities. The Group’s CSR Framework lays down the principles and programs for the community at large, in accordance with section 135 of the Companies Act 2013.

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