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ANALYSIS OF FINANCIAL

STATEMENTS

Presented To:-

Prof. C.S. BALASUBRAMANIAM

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Company Profile:-

Type- Public

Industry- Conglomerate

Founded- Mumbai, India(1938)

Founder(s)- Henning Holck-Larsen

Soren Kristian Toubro

Headquarters-Mumbai, India

Area served- Worldwide

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Key people-A M Naik (Chairman & MD)

Products- Power generation

Refineries

Cement plants

Ships

Switchgear

Services- Engineering Services

Turnkey Projects

IT Services

Shipbuilding

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Divisions -Engineering & Construction Projects (E&C)

Heavy Engineering (HED)

Engineering Construction & Contracts (ECC)

Electrical & Automation (EBG)

Machinery & Industrial Products (MIPD)

Information Technology & Engineering

services.(INFOTECH).

Finance and Banking Solutions(BFS)

Website- www.larsentoubro.com

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Introduction:-

Larsen & Toubro Limited (L&T) is a technology, engineering, construction

and manufacturing company. It is one of the largest and most respected

companies in India's private sector

Seven decades of a strong, customer-focused approach and the continuousquest for world-class quality have enabled it to attain and sustain leadership

in all its major lines of business

L&T has an international presence, with a global spread of offices. A thrust

on international business has seen overseas earnings grow significantly. Itcontinues to grow its overseas manufacturing footprint, with facilities in

China and the Gulf region

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The company's businesses are supported by a wide

marketing and distribution network, and have

established a reputation for strong customer support.

L&T believes that progress must be achieved in

harmony with the environment. A commitment to

community welfare and environmental protection are

an integral part of the corporate vision.

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History:-

L&T was founded in Bombay (Mumbai) in 1938 by two Danish engineers,

Henning Holck-Larsen and Soren Kristian Toubro. Both of them were

strongly committed to developing India's engineering capabilities to meet

the demands of industry.

1938-1950: Started with trading &making dairy equipment, fabrication

services, war-time ship repair.

Entered construction business

Entered into switchgear business

1960-1980:Emerges as one of the largest & best erection construction

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Commenced Manufacturing earth-moving equipment.

Entered into the cement business in early 1980s

1990-2005:Technology majors for engineering in power andhydrocarbon sectors

Mid 90s: Entered into IT & Financial Services

Emerges as Indias largest integrated E&C company. 2006-2009: JVs with MHI for super critical power plant

equipment.

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Foray into Railways sector

Initiated capacity expansion

Expanded Developmental projects business.

Step towards power generation

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Ratio-Analysis:-

Profitability Ratios:-

Gross Profit Margin: - Gross profit X 100

Net sales

2011:- 5445.49 X 100

44855.76

= 12.14%

2012:- 7105.68 X 100

53265.95

= 13.34%

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OPERATING RATIO: - Operating Income X 100

Net sales

2011:- 5878.57 X 100

43656.71

= 13.46%

2012:- 7807.78 X 100

53265.95= 14.65%

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ACTIVITY RATIOS:-

2012:- 43656.71

29007.37= 1.52

2012:- 53625.9535118.79

= 1.52

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Inventory Turnover:- Cost of goods sold

Average inventory

2011:- 46888.67

1577.15

= 29.73

2012:- 56532.05

1776.62= 31.82

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DEBT/ASSET RATIO:-

Total debt to assets ratio = Total debt

Total assets

2011:- 13696.33

35118.79

= 0.39

2012:- 9572.4329007.37

= 0.33

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INTEREST COVERAGE RATIO:- EBIT

Interest Expense

2011:- 6478.401199.23

= 5.40

2012:- 8310.72

1683.31

= 4.94

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CURRENT RATIO:-

Current ratio = Current assets

Current liabilities2011:- 35234.34

28372.99

= 1.24%

2012:- 43857.44

33084.62

= 1.33%

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QUICK RATIO:-

Quick ratio = Current assetsinventories

Current liabilities2011:- 33480.12

28372.99

= 1.18

2012:- 41686.62

33084.62

= 1.26

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DUPONT ANALYSIS

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Future Plans:-

To design, engineer, manufacture and supply axial fans and air pre-

heaters to Indian thermal power plants ranging between 100 MW to

1200 MW. These products form vital components of energy

efficient thermal power plants.

Larsen & Toubro (L&T) contract by the Ministry of Defense for the

design and construction of 36 High Speed Interceptor Boats for the

Indian Coast Guard. The contract is valued at Rs. 977 crore, and is

among one of the main initiatives being taken by the government to

strengthen coastal security.

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L&T is eyeing to participate in various upcoming projects

in rail sector such as rolling stock manufacturing, station

redevelopment, urban mass transit systems among others.

L&T is consolidating its presence in he Middle East ,Africa

and South East Asia by ramping up capabilities in EPC

(ENGINEERING PROCUREMENT & CONSTRUCTION)

, construction and manufacturing.

EPC is concept of building solid fuel captive power plant.