Social Relevance Project on

L & T Financial Holding: Social

Transformation of the Rural
Communities

Submitted in partial fulfilment for the award of the degree of

Master of Management Studies (MMS)

(Under University of Mumbai)

Submitted By

NITIN RAMESH POL

(Roll No. 17106A1013)

Under The Guidance of

Prof. AMIT OAK

2018-19

Vidyalankar Institute Of Technology

Wadala (East), Mumbai 400037

L & T Financial Holding: Social
Transformation of the Rural
Communities

Submitted By
Nitin Ramesh Pol
(Roll No: 17106A1013)

Under The Guidance Of

Prof. AMIT OAK

A Project Submitted In Partial Fulfilment Of Mms To

Vidyalankar Institute Of Technology

Wadala (East), Mumbai 400037

2018-19

Faculty Guide Head of department

 Declaration

This is to declare that the study presented by me to Vidyalankar Institute of

Technology, in completion of the Master in Management Studies (MMS) under the “L
& T Financial Holding: Social Transformation of the Rural Communities” has
been accomplished under the guidance of Prof. Amit Oak.

Nitin Pol
 Acknowledgement

The Project on “L & T Financial Holding: Social Transformation of the Rural

Communities” offered a great learning experience. During the tenure of this project, I
was fortunate to have interacted with people, who in their own capacities have
encouraged and guided me.

I feel highly indebted towards my faculty guide Prof. Amit Oak for his constant
guidance and help without which this project would not be possible.

I thank my institute, Vidyalankar Institute of Technology for giving me this

opportunity to work so that I could put to practice, the theoretical knowledge that I
imparted from this course, and the entire placement team at the institute for providing
support every time.

Nitin Pol
 INDEX

SR. No. PROJECT CONTENTS PAGE No.

1 EXECUTIVE SUMMERY 1
2 L&T FINANCE HOLDINGS LIMITED 2
3 INTRODUCTION OF COMPANY 3
4 4
CORPORATE SOCIAL RESPONSIBILITY

5 6
INTEGRATED WATER RESOURCE
MANAGEMENT
6 MODELS OF WATER IRRIGATION 10
7 FINANCIAL INCLUSION 13
8 DIGITAL SAKHI 15
9 EDUCATION 17
10 HEALTH 24
11 SKILL-BUILDING 26
12 BOONDEIN 28
13 CSR DELIVERY CHANNELS 30
14 32
MICRO FINANCE
15 MUTUAL FUND AND INDIAN ECONOMY 39
16 CONCLUSION 42
17 REFERENCE 44
 Executive Summary

Corporate social responsibility is a company’s has of obligation towards

social and physical environments in which it operates, Corporate social responsibility
(CSR) can be described as embracing responsibility and encouraging a positive impact
through the company’s activities related to the environment, consumers, employees,
communities, and other stakeholders. Corporate social responsibility may include
philanthropic efforts, employee volunteering, and core strategies. Companies may
benchmark their CSR performance relative to peers and may also report on CSR
policies or undergo social audits. As consider Only CSR if look the LTFH business
that is also has some kind social Relevance, LTFH have done many activity under
CSR program in the project information about the All CSR activity and how they
execute theses activity with NGO or other partners, LTFH Has three main activity in
Integrated Water Resource Management and Financial Inclusion. Some information
about the area which they covered during the financial years 2016 to 2018, and
project which are ongoing LTFH always take hot Issue and design their Social
activity according situation, in the project I have explain some model which are
made for Water saving purpose And LTFH main business is Microfinance and Mutual
Fund so these both business has good social relevance, Microfinances is useful to
making awareness about financial product that will help to women empowerment, and
most of the important LTFH area of business is Rural. If Rural area will get money to
do business it will generate new opportunity for rural people in the project
understanding LTFH business and how that will help full for sociality or finding
social relevance of LTFH Business and their CSR activity.

6
 L&T Finance Holdings Limited

Established in 2007, L&T Finance Holdings Limited provides a diverse range of

financial products and services across the corporate, retail, housing and infrastructure
finance sectors, as well as mutual fund products and investment management services,
through direct and indirect subsidiaries.

The Company is registered with the Reserve Bank of India (RBI) as a Non Banking
Finance Company (NBFC).

The Company was promoted by Larsen & Toubro Limited, one India’s leading
company with interests in engineering, construction, electrical and electronics
manufacturing, information technology and financial services.

L&T Finance is headquartered in Mumbai and has presence in 23 states in India,

catering to a diverse customer base, which includes individual retail customers as well
as large companies, banks, multinational companies and small and medium-
enterprises.

The Company’s operations are arranged into five business groups

 Infrastructure Finance Group

 Retail Finance Group

 Corporate Finance Group
 Investment Management Group
 Housing Finance Group.

7
 Introduction of Company

L&T Finance Holdings Limited L&T Finance Holdings Limited (LTFHL) was
originally incorporated as L&T Capital Holdings Ltd in May 2008 and subsequently
changed its name in September 2010..

The company is promoted by Larsen & Toubro Limited (L&T) as the holding
company of the group’s financial services companies.

These three companies are wholly owned subsidiaries of LTFHL. In October 2012
LTFHL acquired Indo Pacific Housing Finance Limited, which was renamed as L&T
Housing Finance Limited and also acquired Family Credit Limited from Societies
General Consumer Finance. L&T Infra Debt Fund (L&T IDF), an NBFC-IDF, was
incorporated in 2013, with L&T Finance Holdings and its’ subsidiaries together
holding 100% stake in the company. LTFHL through its subsidiaries offers a diverse
range of financial products and services across rural, housing and wholesale finance
businesses. LTFHL through its subsidiaries also offers fund management services and
other non-fund based services such as insurance and mutual fund distribution and
financial advisory services (project finance advisory, pre-bid advisory and equity
syndication.

8
 Corporate Social Responsibility

Vision

LTFS aspire for an inclusive social transformation of the rural communities we serve
by nurturing and creating opportunities for sustainable livelihoods for them.

Mission

To reach marginalized farmers in the rural communities that we serve and work
towards rejuvenating their eco-systems especially conserving and harvesting water
thereby developing sustainable agricultural practices and healthy financial habits.

Responding to the need to create a sustainable and inclusive ecosystem, our key
CSR initiatives are woven around Sustainable Livelihoods of Rural communities
facilitated by two spaces of intervention – Integrated Water Resource Management
and Financial Inclusion.

LTFH align social responsibility theme and commitment with the United
Nation’s global development agenda of Sustainable Development Goals (SDG)
particularly ‘No Poverty’ (SDG1) and ‘Partnership for the goals’ (SDG 17).

9
Corporate Social Responsibility

Since the Company’s inception, care and concern for the underprivileged communities
has been a core value at LTFH . Reaching out to the disadvantaged with a view to
positively impacting the quality of their lives is a spontaneous and natural process
across LTFH ’s establishments. Through our CSR programmes, we contribute to the
nation’s developmental agenda as well as align with the UN Social Development
Goals and address the most pressing needs – water, sanitation, education, health and
skill development. For our CSR programmes, the implementation process is as critical
as our goals and their impact. LTFH view our beneficiaries as partners on a journey
towards betterment. Developmental plans are devised in consultation with NGOs who
understand their needs best. Architects of their own future, the disadvantaged are
intensely motivated to sustain our programmes – and ensure their success. Life is a
circle, and the joy we.

Through our Integrated Community Development programmes, LTFH partner with

the community and address issues of water and sanitation, education, health and skill-
building. Active participation from the community is sought every step of the way,
breaking down illusionary differences between ‘us’ and ‘them’, between ‘experts’ and
‘dependent’ villagers awaiting relief. Communities pledged their support through
‘Shram Daan’ or voluntary service. They agreed to partner LTFH in implementing
projects, and most importantly, assume ownership of the plan. This would ensure that
the programmes are sustained all the way to success.

10
 Integrated Water Resource Management

Many villages in India have to struggle for water and sanitation. The unavailability of
safe drinking water leads to increasing morbidity and mortality rates. It also
negatively impacts educational attainments, migration and livelihood opportunities

 Focus to create and preserve sustainable livelihoods, LTFH designs its CSR
programme around one of the key hygiene factors i.e, Water.

 Water being a crucial enabler that facilitates livelihood, LTFH acknowledges

the need to understand its availability, management and deployment. Realising
and believing that the heart of our interventions is the rural regions and farmer
is our prime beneficiary.

 LTFH channelizes its CSR efforts to bring in changes by addressing farmer’s

key challenges in Water.

 A large proportion of population in India depends on nature based agriculture

and the recent climate variability trends create an alarming situation for them.
While the Rural farming communities strive hard to balance between drought
and flood like conditions which directly attack their wellbeing, security and
income.

 LTFH lends a helping hand to augment their perceptions on Water.

LTFH Integrated Community Development Programme has been launched in three

states, to begin with, and focuses on holistic development in water and sanitation,
education, health and skill development, based on need-assessment. LTFH are
working towards enabling water-stressed rural communities to be self-sufficient in
water for drinking, sanitation and agriculture In several of Maharashtra’s drought-
prone agricultural areas, LTFH have built check dams to ensure water supply during
the dry months. Cultivating two crops a year instead of one, the villagers now need
not migrate to cities for seasonal work. By helping meet the basic need for water and
sanitation, we lay the foundation for progress and development.

11
Integrated Water Resource management (IWRM) programme brings in
opportunities to vulnerable communities to regenerate the degraded watershed they
live in. It brings forth challenges in soil and water conservation to the forefront and
designs innovative and sustainable solutions to address them. LTFH impact over
15,000 farmers directly and 50,000 community members indirectly through our
IWRM programmes.

LTFH currently intervenes in the drought-affected communities through two IWRM

projects - Jalvaibhav and Navnirmaan.

 The expected Outcomes of the project are to increase the availability of ground
water, increase crop yield for food crops and cash crops by improving efficient use of
water (more crop-per drop) and integrating water budgeting for village and enhance
the household income from agriculture.

12
1. Jalvaibhav

Name of Project: Jalvaibhav

Implementation partner: Dilasa Janvikas Pratishthan
Project Location: 12 villages at Dharur Block

LTFH has partnered with Dilasa Janvikas Pratishthan to implement the second phase
interventions of IWRM in the 12 villages where LTFH had previously created 65
Dohas and de-silted 5 small water bodies benefitting more than 6000 farmer
households directly and 30,000 community members indirectly. After requests from
the community to continue the impactful drought proofing activities at the villages,
the second phase of programme was undertaken.

Interventions: Watershed structures/ Drought proofing intervention

1. Farm Bunding / Compartment Bunding
2. Water Accumulated Deep Trenches (WADT)
3. De-silting of dams and pouring silt on the land
4. Continuous Contour Trenches (CCT)
5. Loose Boulder Structures
6. Earthen Nala Bunds

2. Navnirman

Name of Project: Navnirman

Implementation partner: Manavlok
Project Location: 20 villages, Ambejogai and Parli block, Beed district,
Maharashtra

The fundamental objective is to improve the crop yield for the marginalized farmers in
the semi arid regions through Integrated Water Resource Management (IWRM) in the
villages of Beed District, Marathwada.

13
The project lays special emphasis on protective irrigation in order to improve crop
productivity. The Project was launched on 17th March 2017 in the presence of
Additional District Collector, Mr. Ajit Kumbhar at Ambejogai, Beed district followed
by a field visit to the locations of intervention. The intervention commenced with
Baseline Survey and Capacity Building of community level institutions. The villagers
are being motivated for creating Village Water and Sanitation Committee and other
water user groups to get the community participation in water structure creating as
well as maintenance of them.

Following integrated water shed management practices adopted based on the need and
resources of the villages
1. Farm Bunding / Compartment Bunding
2. Water Accumulated Deep Trenches (WADT)
3. Desilting of dams and pouring silt on the land
4. Doha
5. Continuous Contour Trenches (CCT)
6. Loose Boulder Structures
7. Earthen Nala Bunds
8. Rejuvenation of tube wells

14
 Model of Water Irrigation

Doha Model

 This eco-friendly and low cost water harvesting structure is built in bed level of
stream

 It is 100s meter in length 30 meters wide and 2 meters in Depth

 Help in increase of water table

 It can hold 60 lakh and more liters water

WADA ( Water Accumulating Deep Trenches)

 WADT is a trench of 5*3*2 meters Dug in stream/Brooks/Tributary

 WADT Can hold water as well as fertile soil

 The structure would hold water up to 30,000 liter at a time and can recharge up to
1.1 Lakh liter per annum

15
Earthen Nala Bunds

 This is built across the stream to stop the water and conserve the water and
store water

 Help in increasing underground water table, maintains soil moisture, and silt
deposition

 One ENB can accumulate an average up to 60 lakh liters of water in one time
filling

16
DCCT Deep Continuous Contour Trenches

 DCCT is a trench of 1*1*20 meters

 Can hold 20,000 liters of water

 DCCTs are created on hilly areas particularly on upper hilly tract

 DCCTs help in conservation of soil and water and thus the water will percolate
down

 Distance between the contour lines is 30 meters and depth of CCT 1 meter

Sustainability

 LTFH conceptualizes CSR programmes keeping in the core needs of

communities that it seeks to serve as well as areas where it has a business

17
 presence.

 LTFH believe in partnering and collaborating with local government - the

Panchayat, public and private organizations, not for profits, social enterprises
and communities. Inputs are taken from each stakeholder at the programme
designing phase and a regular feedback mechanism is instilled to monitor the
project progress.

 LTFH projects are tracked through business like metrics to measure progress.

Financial Inclusion

 L&T Financial Services is currently designing a platform for communities

especially women to educate themselves and imbibe nuances of financial
literacy leading to enhanced absorption of facilities and schemes granted by
the Government and other financial institutions.
 A step towards automation helps Rural India to adopt schemes especially
Micro-credit with the end objective of nurturing a digital India.

 LTFH has launched its Digital Sakhi programme which is a unique financial
inclusion initiative aiming towards inclusion of rural women in digital
payments space by strengthening their capacities in areas of digital financial
literacy, sustainable livelihoods & enterprise development opportunities.

 LTFH aim to touch 1.5 lakh rural individuals through a cadre of 200 ‘Digital
Sakhis’, who are rural women enabled and empowered with knowledge and
skills to create a conducive environment for rural geographies to move towards
a digital economy.

 This programme will be implemented in states of Maharashtra and Madhya

Pradesh in FY 18

18
MICRO FINANCE AND FINANCIAL INCLUSION

 Microfinance is increasingly being considered as one of the most effective

tools of reducing poverty.

 Microfinance has a significant role in bridging the gap between the formal
financial institutions and the rural poor.

 The Micro Finance Institutions (MFIs) accesses financial resources from the
Banks and other mainstream Financial Institutions and provide financial and
support services to the poor.

 MFIs could play a significant role in facilitating inclusion, as they are uniquely
positioned in reaching out to the rural poor. Many of them operate in a limited
geographical area, have a greater understanding of the issues specific to the
rural poor, enjoy greater acceptability amongst the rural poor and have
flexibility in operations providing a level of comfort to their clientele.

19
 Digital Sakhi

L&T Financial Services launched 'Digital Sakhi’' a digital financial inclusion

programme for rural women in Maharashtra in partnership with Action for
Agricultural Renewal in Maharashtra (AFARM), on June 29, 2017 in Pune. The
launch event was graced by the Divisional Commissioner, Mr. Chandrakant Dalvi.

 ‘Digital Sakhi’ is a rural woman between 25-35 years of age, with a digital
device in hand, equipped with skills and knowledge to confidently impart
digital financial literacy training to women from the villages.
 The program will develop a team of 100 ‘Digital Sakhis’ as digital enablers,
who in turn will impart training to 1,000 women entrepreneurs to conduct
daily transactions using digital modes of payments.
 She will also conduct camps in villages with the aim of sensitizing close to
1,00,000 villagers on various government initiatives and programmes on
digitization and moving towards a less-cash economy.
 The Digital Sakhi programme will be run on a pilot basis in 32 villages of
Pune, Solapur and Osmanabad districts of Maharashtra in partnership with
Action for Agricultural Renewal in Maharashtra (AFARM), an NGO engaged
in rural livelihoods promotion, enterprise development of socially and
economically marginalized rural communities.
 The programme will build capacities of rural women on digital modes of
payments; enhance their economic capabilities through entrepreneurship

20
 development and enable up-skill interventions on market relevant community
trades.

Digital Sakhis of Mardi Village, Solapur District addressing the community while
conducting Digital Financial Literacy camps to disseminate information on digital
modes of payments. The ‘Digital Sakhi’ programme by L&T Financial Services aims
to train and develop 100 rural women as Digital Financial Literacy enablers in the
community. The programme has an outreach of 1,01,100 rural population of
Osmanabad, Pune and Solapur districts.

21
 Education

LTFH focus has been on enhancing the quality of existing education systems
and structures. We have been directing resources to bring about systemic reforms to
enhance effectiveness of the public owned facilities. For the second year in a row, we
trained over 177 teachers which resulted in strengthening of child-centric and
experiential education for over 15,287 students in Municipal and Government schools.
LTFH undertook an education transformation model in 25 Zilla Parishad Schools and
14 rural Government Schools to improve learning levels. For the second consecutive
year, we up-skilled the teaching abilities in 75 pre-service and 400 in-service teachers
belonging to low-income groups in Mumbai. These teachers are involved in
imparting, constructive and reformative learning in municipal schools. Formal
education systems were supplemented through scholarships for 20 meritorious
individuals teaching in under-resource classrooms and 17 supplementary education
centers

We are a young nation, both literally and figuratively. As a nation, we have achieved
significant success in several arenas – both social and economic in the last few
decades. However, we still face challenges that can undermine the basic fabric of our
society. It is important that we identify these challenges and channelize our energy
towards finding innovative solutions to ensure a secure, sustainable and equitable
future for our young.

22
The footprint of our social investment has spread to over 505 villages across 9 states.
Through our ‘Rural School Development Program’, we have touched the lives of
nearly 76,000 students in the last year. We have taken a holistic approach towards
improving the standard of education by focusing on the overall development of
schools in rural areas. Our social interventions covering educational initiatives focus
on providing education, developing infrastructure and enhancing the learning
experience.

LTFH enrich education in primary schools through innovative learning

methodologies. We enrich the school environment by providing infrastructure ranging
from building classrooms and playgrounds as well as equipping them with digital
learning tools, benefitting rural and urban schools serving impoverished communities.
After-hours ‘Single Teacher’ schools help children improve their learning rates. We
support pre-schools, set up computer laboratories, provide teaching aids and uniforms
and augment teacher capacity. We believe that education is best imbibed when
presented in ways that spark interest. We, therefore, infuse joy into learning in many
small ways. Our Science-on-Wheels van visits schools, giving children the
opportunity to experience the thrill of hands-on experiments. Summer camps and
sports activities help pupils develop social skills. Extra-curricular outings help widen
children’s horizons.

Initiative for Base Level

23
LTFH social interventions covering educational initiatives are focused on providing
primary education, infrastructure development and enhancing the learning experience
for children in several schools in the vicinity of its facilities across India

Education Infrastructure:

LTFH provides infrastructure support to Government schools. It provides furniture,

sets up and equips laboratories, libraries and playgrounds, refurbishes and digitizes
classrooms and builds toilet blocks for rural schools. All these lay the foundation for
good education.

Learning enrichment Learning enrichment programmes are conducted in schools

through NGO partners, with a focus on science, language and Math’s. ‘Science on
Wheels’ vans visit schools to provide young, enquiring minds with exciting
opportunities to perform hands-on science experiments and fire their imagination.

A toy van for children – ‘Nanha Munna Express’ – makes learning fun for children,
and helps develop motor, cognitive and social skills. After-school support is provided
to children in community learning centre’s by trained community teachers. These
centres help children to cope with their school curriculum, thereby reducing school

24
drop-out rates, and enhancing their academic performance as they progress from one
standard to the next.

Preschools or Balwadis are run in low-income communities to lay a strong foundation

for many vulnerable children and facilitate enrolment in neighbourhood schools.

Children from underprivileged backgrounds are also provided with basic computer
education, to prepare them for a digitalized world.

The key focus areas of this program include:

Library books: We have donated a large number of books in local languages and
English including biographies, general science books, dictionaries and teacher’s
reference books.
Teaching aids: Various biological charts and models, maps and display cabinets have
been donated in order to foster a sense of curiosity amongst young students and aid
the teachers.
Computers Desktop computers allow students to get their first taste of technology
and encourage them to chase their dreams.
Drinking water facilities: The motto here is ‘Healthy bodies breed healthy minds.’
We try to ensure that the basic infrastructure is in place to provide potable drinking
water at these schools.

25
Sanitation facilities: This initiative aims at fostering life-long healthy habits in the
young, along with ensuring that the basic infrastructure is available to these children.
We have undertaken the construction of basic sanitation facilities at several schools.

LTFH is continue to provide grass-root level solutions to social issues with the
conviction that happy societies make a happy nation

Transforming Livelihoods

 LTFH focus has been on building capacities and promoting inclusive

development of indigent communities, by providing skills that empower
people to earn a respectable and enhanced livelihood. This year, over 4,297
women were given gender sensitization trainings, along with training to 1,604
women on government programs and provisions, book-keeping and accounts
processes. From these trained women, 26 women were elected as Sarpanch,
and over 200 women won Panchayati Raj elections in various capacities. 279
Self Help Groups, (SHGs) bringing together over 4,000 rural women were
formed, out of which 250 SHGs have been linked with institutional credit
through NRLM and direct bank credit

 LTFH identified locations as ‘water-stressed’ on the basis of availability,

quality and uncertainty of supply to enable these locations to become water-
sufficient for drinking, sanitation and agriculture LTFH envisages these
communities leading better quality lives through an integrated and holistic
26
 approach which will provide access to improved healthcare, education and
higher income levels. To begin with LTFH in consultation with external
domain experts, identified water-stressed village clusters that were not
beneficiaries of any previous interventions in four states – Rajasthan, Tamil
Nadu, Maharashtra and Gujarat.

This covers 11006 households across an area of 9337 hectares.

Key Deliverables:

 Watershed interventions such as construction of check dams, anicuts, contour

trenches, farm bunds, farm ponds, and well restoration to increase ground
water levels and soil moisture content
 Drudgery-free access to clean drinking water ensuring improved health and
sanitation
 Availability of fodder for livestock
 Empowerment of communities and sustaining programme benefits through
self-help groups with women’s participation

Key Highlights So Far:

27
 Project formulation through extensive community participation using
participatory Rural Appraisal
 A strong feeling of ownership and involvement instilled within community
members
 Increase in ground water level, conversion of land from fallow to cultivable,
and checking of soil erosion through various watershed interventions
 Creation of community-level organizations like Village Development
Committee (VDC), Self Help Groups (SHGs) and User groups for project
sustainability. VDCs have been formed in all 30 villages under our coverage.
 30-50% of participants in all VDC and watershed interventions are women,
ensuring their participation in project planning and execution.
 Sanitation awareness drives among the community members and community-
based monitoring committees will ensure that these villages are well on their
way to becoming free of open defecation.

28
 Health

Good health is the cornerstone of social well-being. LTFH is helping create healthier
communities by providing the underprivileged with affordable healthcare services in
various areas – with a focus on mother-and-child care.

Health Centres:

LTFH has set up multi-specialty health centres which provide diagnostic, curative and
preventive services in the areas of general medicine, gynaecology, paediatrics,
pulmonology (including chest and TB) ophthalmology, orthopaedics, nephrology,
psychiatry, ENT, dermatology and dentistry. Immunization and dialysis services are
also provided. Emerging lifestyle diseases, such as diabetes and cardiac problems are
also addressed at these centers. The HIV/AIDS issue is addressed through diagnostic
and counselling facilities, as well as distribution of the Government’s free anti-
retroviral therapy at LTFH’s Mumbai Health Centre. Counselling services are offered
in the areas of mother-and child care, as well as problems faced by teenagers

29
Timely access to quality health care can be the core differential that enables families
to lead productive and prosperous lives. Often, economically backward communities
are further pushed into poverty due to poor health and the rising costs of medical care.
We have set up community health centers at our facilities at Ahmednagar, Chennai,
Coimbatore, Kansbahal, Mumbai, Surat and Vadodara. They focus on reproductive
health, and conduct diagnostic and clinical camps and programmes that support
maternal and child healthcare, immunization and health education. Regular health
check-up camps are held in schools and pre-schools. LTFH HIV/AIDS management
initiatives include awareness camps (particularly for high-risk groups), Anti-Retroviral
Therapy, counselling and testing. Artificial kidney dialysis center’s for the
underprivileged have been set up at LTFH’s Health Centers at Chennai, Mumbai,
Thane and Vadodara. By putting smiles on the faces of mothers and children, by
preventing, detecting and curing disease, by educating people on matters pertaining to
health, we help spread joy

Mobile Clinics: The mobile clinics operated by LTFH penetrate deep into rural and
tribal areas, bringing the benefits of basic health facilities and modern health
technology to these marginalized communities.

Health Camps: LTFH organizes diagnostic, clinical and awareness health camps.
Diagnostic and clinical camps are held pertaining to general medicine as well as
specialties such as ophthalmology, dentistry, gynaecology and TB detection.
Diagnostic camps are also held for specific groups, such as women and school
children. Awareness camps disseminate information on critical issues such as hygienic

30
practices and HIV/ AIDS prevention. Blood donation camps are held, usually at
LTFH’s establishments, in partnership with hospitals or blood banks.

Dialysis Centres: LTFH has set up Artificial Kidney Dialysis Centres at its health
centres for benefit of the underprivileged.

Skill Building

Construction skills:

India’s infrastructural demands call for quality workmanship and deployment of the
latest techniques in construction methodology. LTFH has set up and runs eight
Construction Skills Training Institutes (CSTIs) across the country. These Institutes
provide formal, free vocational training in construction skills for the largely
unorganized workforce in this sector. School dropouts and illiterate village youth are
taught skills like bar-bending, formwork carpentry, masonry, scaffolding and welding.
A stipend, hostel facility and Certificate of Proficiency on completion, give
participants an added incentive to complete the course. These short courses – ranging
from three to six months – transform these once unemployable youth into certified,
skilled, self-reliant young men, ready to join the workforce and support themselves
and their families. Industry-oriented training: LTFH has collaborated with 27
Industrial Training Institutes (ITIs) across the country to impart industry-oriented
training. Empowering the differently abled: LTFH s ‘Project Neev’ initiative enriches
the lives of the differently abled by offering specially-designed training programmes
that enable them to obtain gainful employment and enhance their sense of self-worth.

Vocational training for women: To make underprivileged women self-reliant, LTFH

has introduced vocational training programmes in the areas of tailoring, beautician
skills, home-nursing and food processing.

 Over 1 million beneficiaries

 2.5 lakh students in 250 schools – better infrastructure, fewer dropouts, better
grades
 7000 youth from underprivileged backgrounds made employable through
CSTIs

31
  32 water-stressed villages in 4 states benefited from ‘Integrated Community
Development’ - water, sanitation, health education and improved standard of
living

Disaster Management

 When Tamil Nadu experienced severe floods in December 2015, a project was
initiated at Cuddalore, to construct 300 shelters to rehabilitate most vulnerable
victims of the floods.
 For the Marathwada region of Maharashtra, a watershed model was initiated at
13 villages to, facilitate water resource management. This project created and
enhanced livelihood opportunities for farmers by laying special emphasis on
protective irrigation to improve crop productivity by constructing 65 Dohas
(water-harvesting structures).
 The project covers 26.60 kilometers of water stream and developed water
storage capacity of 4,48,946 CUM

32
 Boondein

Employee volunteering programme

LTFH values, respects and attends to the individuals desirous of support. Engaging the
key stakeholder employee into the larger structure of the organization, LTFH believes
in the potential to create incremental yet impactful changes in the lives of those in
need. Through the programme Boondein, employees volunteer with their heart and
soul in projects and programmes specially designed to carefully bring changes in the
community. The impact is both ways – as the community gets facilitated with the
skills imparted, employees start to care more for the lesser privileged individuals
whereby developing a caring culture in the organization. Employees take pride and
displays excellence with the confidence that they contribute to a sensitive and
compassionate corporate house.

LTFH are committed to meaningfully engage with bottom of the pyramid

communities and usher in inclusive development. LTFH commit to carefully design
this through innovative solutions, development of measurable outcomes and
sustainable practices embedded in the psyche of our Social Responsibility
programmes. LTFH acknowledge that in a nation’s progress, equitable contribution by
every cross-section of the society is critical. By paving way for Sustainable
livelihoods, LTFH empowers communities at the bottom of the pyramid to bring in
change.

Volunteers offer their services for good causes. LTFH do more. They are passionate
champions of the causes they espouse. They are conscious of the company’s long
history of responding to social needs. And they carry this tradition further. From

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teaching at municipal schools to donating blood, running marathons for a cause to
mobilizing, funds for supporting a number of community initiatives. LTFH has
become a way of life. The employees also assist in tree plantation drives, participate in
company-wide programmes for energy conservation and recycling of material. All this
is carried out in the personal time of the employees, well beyond office hours As we
said, they are more than volunteers

Water-wise and Money-wise has so far touched over 400 employees from 4 office
locations at Mumbai, Bangalore, Chennai and Delhi as enthusiastic contributors and
we continue to receive their endorsement as well as affection towards making a
difference. LTFH volunteering efforts benefitted about 2,000 beneficiaries so far
during the year

LTFH celebrates its partnership with Mumbai Traffic Control Police

LTFH CSR celebrated four years of partnership with Mumbai Traffic Control Police
with a felicitation event on January 31, 2018 which saw participation of 300
Municipal School students, Traffic police fraternity, community and civil society
members. LTFH CSR through partner NGO CHIP Mumbai impacts 750 school
children through its road safety education programme, enables livelihood of 20
community youths deployed as Traffic wardens and supports Mumbai Traffic Control
Police with efficient traffic management equipment.

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 CSR Delivery Channels

CSR Project / Activity Sector Project Name Amount

and State Spent In Rs)
Name

Rural Development Rural Development State 35.25 crore

through- Watershed projects Maharashtra
Management drought relief District Beed
project (2017)
Rural Development project Rural Development State 1160722
for Tamilnadu Flood relied Projects Tamilnadu
and Rehabilitation District
Cuddalore
Contribution to Nepal Contribution to the prime Nepal 782385
Earthquack Relief fund Minister’s National
Relief Fund
Rural Development Livelihoods enhancement State Odisha 9375378
Healthcare and training, project
Enhancing livelihoods Rural Development
project
Quality Education in Rural Promoting Education State 4800000
government Schools -Tamilnadu

 Community based organizations whether formal or informal

 Voluntary Agencies ( Registered NGOs)

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 Social Enterprises

 Credible Corporate bodies

 Institutes/ Academic Organizations

Project based approach and Process

LTFH will follow a project based accountability approach to emphasize on the long
term sustainability of CSR projects, where its action plan will be distinguished as
Mid- Term & Long Term projects. In each project we conduct baseline, midline and
end line surveys with clear defined measurable outcomes

Activity with NGO Partner 2016-2017

NGO Partner Location Outcome

Paragon Charitable Trust Mumbai Training and Employment

(Muktangan) provided to 400 existing and
75 Teachers

Teach For India Delhi, Mumbai and Annual Fellowship for 20

Pune

Kasturi Trust Hyderbad Supported 591 girls from two

School

Tha Akansha Foundation Mumbai Supported 240 Primary School

Children

Isha Foundation Dharmpuri Construction of 6 classrom and

-Tamilnadu 100 Scholarships

Pratha Education West Bengal, Initiiated sustainable

Maharastra, livelihoods for over 16000
Madhya Pradesh household

Natinal Uddan Skills Belda and Silguri 150 youth trained for finance

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 Foundation West Bangal sector jobs.

Social Relevance with Business

Micro Finance

Indian public policy for rural finance from 1950s to till date mirrors the patterns
observed worldwide. Increasing access to credit for the poor has always remained at
the core of Indian planning in fight against poverty. The assumption behind expanding
outreach of financial services, mainly credit was that the welfare costs of exclusion
from the banking sector, especially for rural poor are very high. Starting late 1960s,
India was home to one of largest state intervention in rural credit market and has been
euphemistically referred to as ‘Social banking’ phase. It saw nationalization of
existing private commercial banks, massive expansion of branch network in rural
areas, mandatory directed credit to priority sectors of the economy, subsidized rates of
interest and creation of a new set of rural banks at district level and an Apex bank for
Agriculture and Rural Development (NABARD) at national level. In India
Microfinance Revolution began in the 1980s with the formation of pockets of informal
Self Help Groups (SHG) engaging in micro activities financed by Microfinance. But
India’s first Microfinance Institution ‘Shri Mahila SEWA Sahkari Bank was set up as
an urban co-operative bank, by the Self Employed Women’s Association (SEWA)
soon after the group (founder Ms. Ela Bhatt)was formed in 1974. The idea of micro
finance was developed as a survival strategy for the poor. Ela Bhatt in India and
Professor Muhammad Yunus of Bangladesh are the pioneers in this field. Ela Bhatt
founded Self Employed Women's Association (SEWA) in 1972. It was to bring poor

37
women together and give them ways to fight for their rights and earn better livings. Its
membership has grown to 7000 members in 1975 to over 700,000. Over the past few
decades, this innovative scheme has attracted a range of nongovernmental and state-
sponsored institutions. Leading financial institutions are the Small Industries
Development Bank of India (SIDBI), the National Bank for Agriculture and Rural
Development (NABARD) and the Rashtriya Mahila Kosh (RMK). A few NGOs like
PRADAN, ICECD, MYRADA, and SEWA have played a significant role in
promoting micro-credit. With micro-credit becoming financially viable, even
commercial banks like ICICI Bank, ABNAMRO, HDFC Bank, UTI Bank and
international banks like Citibank have also entered the field.

1. Microfinance and Women Empowerment

Microfinance in India through its major channels served over 88 million Indians in the
financial year , out of which around 80% clients were women. Empowerment is a
social action process that promotes participation of people, organization and
communities in gaining control over their lives in their community. There is urgent
need of empowering women especially in rural areas. The formation of Self Help
Group and Micro Financing will enhance their socioeconomic position in the society.
Small loans can make good business sense among the women. It has been noticed that
women in particular stand to gain a lot from micro-finance because it gives them an
independent means of generating wealth and becoming self-reliant in a society that
does not offer them much scope for entrepreneurship. And since it is women who run
the household, a higher standard of living for women ensures better governance and a
healthier and more prosperous future for the children and a better future for the nation.
The success of micro credit initiatives has often been attributed to their particular
focus on empowering women and encouraging their self-reliance through developing
their own means of income. Various case studies show that there is a positive
correlation between credit availability and women's empowerment. It is observed that
majority of rural women who are associated with self-help group activity positively
succeeded to gain them empowered. Women in rural India lived in virtual isolation,
unable to access even the most basic of services. But, with the formation of Women's
Self-Help Groups, these women are now achieving social and physical mobility. It is
recognized that while the empowerment of women is a process that will not happen

38
automatically, SHG is a suitable means for the empowerment of women. The impacts
of SHGs on socio-economic status of women were found significant.

India, a large and the fastest growing economy, continues to be a bright spot in the
global landscape. It has been underpinned by strong private consumption and gradual
introduction of significant domestic reforms. In FY17, the economy has grown by
7.1% Major leading indicators suggest that the economic activity is gradually
improving This is driven by improving global demand and a demonetization-led
pickup in domestic activity. The International Monetary Fund (IMF) expects India to
resume the 8% growth path in the medium term. This should happen as soon as the
short-term dislocation to consumption from demonetization passes. The nation is
expected to remain he fastest growing economy on the back of high private
consumption levels and gradually implemented domestic reforms. Your Company sees
growth picking up significantly, supported by a normal monsoon, modest costs of
borrowing, pay hikes for state government employees and stronger export demand.
Other growth supportive factors will be government’s continued thrust on physical
infrastructure and the Real Estate (Regulation and Development) Act, 2016 (RERA),
which will pave way for greater transparency and accountability in the real estate
sector. the goods & services tax, (GST)implemented in July 2017, will also have long
term structural benefits, despite short-term execution and adjustment risks during the
course of FY18

The microfinance industry has recorded a 26% YoY growth in FY17. However, there
has been a trend of decrease in growth since demonetization. we believe that the
decrease is not entirely attributable to demonetization as other external factors and
vested interests also impacted performance in certain geographies. Industry looks to
be cautious and a pause in growth can be expected in the short term.

During FY17, your Company launched mobility solutions, aimed towards improving
the operational efficiencies and making the disbursement process simpler. This move
enabled your Company to achieve the highest single month disbursement of 470 crs.
in September, 2016. The Company continued its key initiatives of enhancing customer
reach, building scalability, and managing risks effectively, attaining process
excellence and cost excellence. Microfinance business witnessed a YoY growth of
39% in disbursement, along with a book growth of 59%.

39
 2. Rural Finance

The Company’s strength in Rural Finance makes us one of the fastest growing NBFCs
in this sector. LTFH Company is now a single brand under L&T Financial Services
(LTFH) offering through multi channels, multiple financing products like Farm
Equipment Finance, Two wheeler Finance and microfinance.

The microfinance industry has recorded a 26% YoY growth in FY17. However, there
has been a trend of decrease in growth since demonetization. we believe that the
decrease is not entirely attributable to demonetization as other external factors and
vested interests also impacted performance in certain geographies. Industry looks to
be cautious and a pause in growth can be expected in the short term.
An idea can come from anywhere, through anyone. But true progress
means transforming the less privileged in low-income groups and creating
an environment for them to flourish. Our focus is thus on those who lack the access to
banking and related services, but who have the enthusiasm to find opportunity through
all adversity. We identify and service these small dreams and turn them into solid
success stories through our deep network of professionals with access to the remotest
parts of the country.

Micro Loans is a financial service aimed at providing small loans to low-income

individuals. These individuals can find support from Micro Loans lenders.

40
L&T Financial Services launched its Micro Loans operation in July 2008. LTFH have
since been actively involved in helping the under-served get a sustainable livelihood
through micro unsecured loans. L&T Financial Services now is one of the
leading providers of Micro Loans in India.

The Company offers micro loans through a joint liability group model. This business
is currently operational in eight states of India - Tamil Nadu, Karnataka, Maharashtra,
Gujarat, Orissa, West Bengal, Madhya Pradesh and Kerala. The business has been
piloted in the state of Uttar Pradesh.

 Mobility solutions: Loan origination and collection in the Consumer and Auto
Finance as well as Microfinance businesses is completely based on mobility
solutions. Loan origination is carried out through Android based tablets/mobile
handsets that aim to drive sales effectiveness through the use of technology for
reducing the turnaround time. Collections are carried out through mobile
phones, coupled with thermal Bluetooth printers to issue receipts

41
  Mobile based rule engine has been developed for improving TAT,
having a predictable and steady approval rate. Least number of
human handoffs reduces the chance of errors based on human
underwriting interventions.

Anyone can be as young as 20 years or as old as 60 years to avail a micro loan from
L&T Financial Services. Currently we lend loan to women borrowers.

LTFH will be taking into consideration your income generating capacity to

accept your application for a micro loan.

 Term loans through Joint Liability Group (JLG)

 Loan available from Rs 15,000 to Rs 40,000
 Loan tenure ranges from 12 to 24 months
 Easy monthly repayment schedule
 Financing without any collateral security

3. Rural Enterprise Finance

It is an urban fallacy to imagine that every Indian in a village is a farmer. Rural India
also has men, and increasingly, women of enterprise – incipient entrepreneurs,
businessmen and a bustling, if somewhat unorganized trading community. Our Rural
Enterprise Finance wing is turning the spotlight on this important sector. Late in FY
2012, we initiated Dairy Finance and Warehouse Receipt Finance through two
separate initiatives.

Gram Udyog:- Financing the capital requirements of small dairy farmers.

Kisan Setu:- Collateralized commodity lending against warehouse receipts, where the
goods themselves provide security for the loan.

42
 4. Rural Products Finance

We strongly believe in financial inclusion and actively participate in the Government’s

agenda of meeting the financial needs of rural India. We finance assets and products
that help keep the rural economy ticking. The farmers’ needs are diverse, and we have
products to cater to them. Our success in this segment comes from our
approachability, simpler documentation, transparency in processing, better
understanding of customers business and product knowledge.

 Kisan Gaurav and Kisan Mitra: Farm equipment financing

 TracFin Tractor dealer financing
 Apna Car Car and multi-utility vehicle financing
 Kisan Bandhu Small commercial vehicles financing
 Kisan Bandhu Rural entrepreneur financing (purchasing tractors for rental)
 Diesel genset financing Diesel genset financing

5. Firm Equipment Finance

L&T Financial Services has long been associated in the Rural Finance market,
supporting entrepreneurship and livelihoods. With the aim of providing easy finance
for tractor and agricultural equipment, every customer is assured of the best deals. We
also believe that flexible loan terms could help customers like you to adjust your
payment cycles to match crop patterns. So when it comes to reaping more, you will
surely benefit.

 Age requirement: 18 years - 65 years

 Income requirement: Articulated with the size of landholdings and per acre yield
 Any other requirements: KYC compliance

43
 Mutual Fund and Indian Economy

India’s mutual fund industry witnessed a 35% growth during the quarter-ended March
2018, taking the Average Assets under Management (AAuM) to 1,829,583 crs., as
compared to 1,353,443 crs. AAuM recorded during the quarter-ended March 2016.

In developing country like India, individual investments play important role in

personal wealth growth as well as paly major role in growth and development of the
country. And sustain in highly inflation market because todays investment is earning
source for future. The individual investments in India is majorly with traditional
investment avenues. Unfortunately, in India it is a fact that most of the individual
investors are not much interested or unaware in other avenues offered by financial
markets. There is a limited participation towards these offerings shown by past history
of investment. This may be because of lack of awareness, negative perception and
negative approach on other modern instrument or avenues. Or most important mind
set of people, investor has fear of financial product that’s way the choose traditional
investment avenues.
The Indian economy has gone through phases of growth and change that has
transformed it from being a primarily agriculture-oriented economy to one where
services and manufacturing contribute to 3/4th of its gross domestic product. The
economy requires the financial system to support growth by enabling access to
resources, one is financial resource. The banking sector provides efficient costs,
secure systems for transactions and transfer of funds and the means to channelize
savings of the economy in productive ways. Securities markets allow wider access to
investors for businesses seeking funds by issuing securities with features that cater to
the risk and return requirements of different types of investors. The financial markets
enable efficient transfer and allocation of resources for productive activities in the

44
economy. Users of funds include businesses, governments and households who seek
funds to run their activities. Households, businesses and governments also act as
providers of surplus funds. Intermediaries such as banks, financial institutions, mutual
funds and insurance companies. The function of the financial markets is to ensure that
economic activity is enabled by providing access of funds to those that need it for
productive activity. They provide a large number of investors and make it available for
productive economic activity

 Mutual fund investing has a significant contribution when it comes to the

development of the Indian economy.
 The Indian financial market has seen a great upheaval in the early eighties and
nineties.
 Mutual funds investment has acted as a bridge connecting the gap between the
supply and demand for funds in the financial markets. Since 2003, the
financial sector has been on a constant rise.
 The mutual fund industry has acted on the forefront to contribute to the Indian
economy.
 Development of financial sector enhances the four pillars of the financial
system: efficiency, stability, transparency, and inclusion. Mutual fund investing
plays an important role in this development. They pool the resources from the
small investors together, thus increasing participation in the financial markets.
 Mutual funds provide services to small investors to make informed decisions.
Such detailed services and analysis help lighten the risk factor for these small
investors. Thus, it helps investors to reinvest in mutual funds. Our mutual fund
industry has been growing at a healthy speed of nearly 20% per annum over
the last decade.

45
Mutual Funds as a Source of Investment

Mutual funds have gained an unprecedented thrust since 2003. Indians generally save
up to 30% of our salaried income which is very high. Mutual funds have been a good
option for investing money of the salaried class. Diversification of mutual fund
schemes has allowed more investors to come in and pool their assets. The total amount
of savings in the financial saving showed a whopping 18% increase in 2014. Investors
are now more inclined towards putting money in mutual funds than compared to
physical assets. This has significantly increased the assets under management
(AUM) in the last 4-5 years. The AUM has increased a staggering 29% from August
2014 to August 2015 for fresh mutual fund mobilization. Mutual funds have had a
positive impact on the finance sector in terms of consistent investment. The pooled
money is providing a helping hand in the development of the industry.

Money markets in India have been significantly impacted by the arrival of mutual
funds. It has even strengthened the Government Securities market to some extent. The
introduction of Money Market Mutual Funds (MMMF) in 1991 provided investors
with an additional channel for short-term investments. As a result, the money
market tools are now within the reach of individuals or retail investors. The MMMFs
are a trend today because of the revised SEBI regulations and permission to invest in
rated corporate bonds and debentures.

The money markets have been hugely benefitted by increased mutual funds
investment. It has now seen an addition of around 22 lakh new investors during 2014-
15. The total number of investors was calculated to be around 4.17 crore in MMMF
marking a 6% growth over previous year. This large growth is a sign of healthy
domestic investor sentiment. Indian consumers are willing to take risks with
brands that have a strong goodwill and positive past record.

46
 Conclusion

L&T Finance Holdings Limited provides a diverse range of financial products

and services across the corporate, retail, housing and infrastructure finance sectors, as
well as mutual fund products and investment management services and all the
Business area has some kind social relevance and under CRS activity they doing lot of
activity which 2 % Profit. LTFH nurturing and creating opportunities for sustainable
livelihoods and helping them to increase their life quality.

LTFH trying to create a sustainable and inclusive ecosystem, CSR initiatives are
woven around Sustainable Livelihoods of Rural communities facilitated by two spaces
of intervention – Integrated Water Resource Management and Financial Inclusion
LTFH partner with the community and address issues of water and sanitation,
education, health and skill-building, Many villages in India have to struggle for water
and sanitation. The unavailability of safe drinking water leads to increasing morbidity
and mortality rates. It also negatively impacts educational attainments, migration and
livelihood opportunities, . LTFH are working towards enabling water-stressed rural
communities to be self-sufficient in water for drinking, sanitation and agriculture In
several of Maharashtra’s drought-prone agricultural areas. . LTFH impact over 15,000
farmers directly and 50,000 community members indirectly through our IWRM
programmes. Outcomes of the project are to increase the availability of ground water,
increase crop yield for food crops and cash crops by improving efficient use of water.
LTFH currently intervenes in the drought-affected communities through two IWRM
projects - Jalvaibhav and Navnirmaan. conceptualizes CSR programmes keeping in
the core needs of communities that it seeks to serve as well as areas where it has a
business presence. LTFH partnering and collaborating with local government - the
Panchayat, public and private organizations, not for profits, social enterprises and
communities. for CSR activity they design according their need.

LTFH has launched its Digital Sakhi programme which is a unique financial inclusion
initiative aiming towards inclusion of rural women in digital payments space by
strengthening their capacities in areas of digital financial literacy, Water-wise and
Money-wise has so far touched over 400 employees from 4 office locations at
Mumbai, Bangalore, Chennai and Delhi as enthusiastic contributors under Employee

47
volunteering programme Micro Loans is a financial service aimed at providing small
loans to low-income individuals, LTFH have since been actively involved in helping
the under-served get a sustainable livelihood through micro unsecured loans. L&T
Financial Services now is one of the leading providers of Micro Loans in India and
Mutual fund Business helping people to invest money in the Stock market by mutual
fund root. That is also have good social and economical Impact.

48
 Reference

 www.ltfh.com
 Annual Reports 2012 to 2018
 www.ltfs.com
 www.larsentoubro.com

 International Monthly Refereed Journal of Research In Management & Technology

ISSN – 2320-0073
 www.amfi.in

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