L&T Company Profile-Final
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Page 1 of 19 UNIVERSITY OF PETROLEUM & ENERGY STUDIES DEHRADUN Assignement Larsen & Toubro Infrastructure Co. Ltd. ACCOUNTING IN LOGISTICS & SUPPLY CHAIN MANAGEMENT Subject Code : MBLF 911 Submitted to: Dr. Sumeet Gupta Associate Professor & Head Departement of Accounting & Finance Head Centre of Infrastructure & Project Finance Submitted by: Roll No.: R600213028 Name : Mohit Sharan MBA (LSCM) Sem. I Batch 2013-15 Last Submission Date: 30 th September, 2013
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Transcript of L&T Company Profile-Final
Page 1 of 19
UNIVERSITY OF PETROLEUM & ENERGY STUDIES
DEHRADUN
Assignement
Larsen & Toubro Infrastructure Co. Ltd.
ACCOUNTING IN LOGISTICS
& SUPPLY CHAIN MANAGEMENT
Subject Code : MBLF 911
Submitted to:
Dr. Sumeet Gupta
Associate Professor & Head
Departement of Accounting & Finance
Head Centre of Infrastructure & Project Finance
Submitted by:
Roll No.: R600213028
Name : Mohit Sharan
MBA (LSCM) Sem. I
Batch 2013-15
Last Submission Date: 30th
September, 2013
Page 3 of 19
Table of Contents
Sr. No. Description Page No.
1. Introduction
Logistics & Supply Chain Management 4 - 5
2.
Company Profile
Larsen & Toubro Group
Larsen & Toubro Infrastructure Finance Co. Ltd.
Board of Directors
Business/Product Line
6 - 11
3.
Financial Data
Balance Sheet
Statement of Profit & Loss
Market Value of Company
Dividend Declared
12 - 15
4.
Competitors & SWOT Analysis
Competitors
SWOT Analysis
16 - 17
5. Bibliography 18 – 19
Page 4 of 19
Chapter 1:
Introduction
Logistics
Supply Chain Management
Accounting
Page 5 of 19
Logistics & Supply Chain Management
Logistics:
Logistics is the management of the flow of resources between the point of origin and the point of
consumption in order to meet customer requirements. The resources managed in logistics can
include physical items, such as food, materials, equipment, liquids, and staff, as well as abstract
items, such as time, information.
According to the Council of Logistics “Management, logistics includes the integrated planning,
control, realization, and monitoring of all internal and network-wide material, part, and product
flow, including the necessary information flow, industrial and trading companies along the
complete value-added chain (and product life cycle) for the purpose of conforming to customer
requirements.”
Supply Chain Management:
“The integration of key business processes from end user through original suppliers that provides
products, services, and information that add value for customers and other stakeholders’’
Stock & Lambert (2001)
‘‘The management of upstream and downstream relationships with suppliers and customers to
deliver superior customer value at less cost to the supply chain as a whole’’
Christopher (1998)
Accounting:
Management accounting in supply chains (or supply chain controlling, SCC) is part of the supply
chain management concept. This necessitates planning, monitoring, management and
information about logistics and manufacturing processes throughout the value chain. The goal of
management accounting in supply chains is optimizing these processes. This strategy focuses on
supporting management with financial needs and helping in reducing costs in the whole process
in order to deliver the goods at an affordable rate.
Page 6 of 19
Chapter 2:
Company Profile
Larsen & Toubro Group
Larsen & Toubro Infrastructure Finance Co. Ltd.
Company Profile
Corporate Governance
Boards of Directors
Business/Product Line
Page 7 of 19
L&T Group of Companies - Overview
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.
More than seven decades of a strong, customer-focused approach and the continuous quest 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. It continues to grow its global footprint,
with offices and manufacturing facilities in multiple countries.
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.
In response to changing market dynamics, L&T has gone through a phased process of redefining
its organization model to facilitate growth through greater levels of empowerment. The new
structure is built around multiple businesses that serve the needs of different industries.
L&T Hydrocarbon
L&T Heavy Engineering
L&T Constructions
L&T Power
Electrical Automation
Machinery & Industrial Products
Information Technology
L&T Financial Services
Page 8 of 19
Larsen & Toubro Infrastructure Finance Co. Ltd.
Company Profile
L&T Infrastructure Finance Company Ltd. is in the business of providing financial products and
services to its customers engaged in infrastructure development and construction, with a focus on
power, roads, telecommunications, oil and gas and ports sectors in India. L&T Infra has played a
fundamental role in financing projects, funded through long term investment instruments. L&T
Infra also provides customized financial solutions such as Term Loans, Mezzanine Debt,
Debentures and Securitized Debt.
L&T Infra, incorporated in 2006, is registered as an Non-Banking Financial Company (NBFC)
under the Reserve Bank of India (RBI) Act 1934, and is among the select few financial
institutions classified as an Infrastructure Finance Company (IFC). Since 2011 it has been
classified as a Public Finance Institution (PFI) by the Ministry of Corporate Affairs. It was set
up with an initial capital of 500 crore (US$111 million) and has expanded at a rapid rate since
inception to reach an asset base of ~Rs.152 bln. (USD 2.55 bln.)
L&T Infra provides a wide range of customized debt & equity products as well as Financial
Advisory Services for the development of infrastructure facilities in the country with a focus
on Power, Roads, Tele-communication, Oil & Gas and Port sectors.
L&T Infra functions with high Corporate Governance standards and Independent Directors
constituting 50% of its Board and the key committees. As a testimony to its strong credentials
and sound operating performance, L&T infra enjoys AA+ credit ratings by both CARE and
ICRA.
L&T Infra operates from is Mumbai, Delhi, Chennai and Hyderabad centers - and is managed
by a team of experienced banking professionals, under the guidance of an eminent Board
drawn from both L&T and banking industry
Page 9 of 19
Corporate Governance
L&T Infra follows the highest standards of corporate governance. It is governed by an
independent board that ensures separation of policy formulation and supervision from the
executive management. The company is guided by committees of Independent Directors and
senior representatives from the parent company L&T. Its philosophy ensures compliance with
the legal and regulatory frameworks, and adherence to transparency, accountability and
professionalism.
As a part of Corporate Governance process, the L&T Infra board has formed the following
Committees.
Investment and Credit Committee
Asset Liability Management Committee
Audit Committee
Risk Management Committee
Management Committee
H.R. & Nomination Committee
Page 10 of 19
Board of Directors
Y. M. Deosthalee B. V. Bhargava A. K. Jain N. Sivaraman
Director Director Director Director
S.H. Bhojani Shri M Damodaran, IAS (Retd)
Director Director
Management Team
Mr. S. K. Maheshwari Mr. R. M. Bhujang
Mr. Akshayaa Singh
Mr. G.
Krishnamurthy
MD & Chief Executive L&T Infra
Group Head Corporate &
Regulatory Affairs
EVP Equity Business
EVP Corporate Business
Group
Mr. Shiva Rajaraman Dhananjay Yellurkar
Chief Executive - IDF & National Head - Strategic Initiatives
Head of RAMG
Page 11 of 19
Business/Product Line
L&T Infrastructure Finance Co. Ltd.
Project Finance
Term Loans, Debentures, Securitized Debt, Mezzanine Debt, Convertible Debentures, Preference Shares
Equity Investment
Equity Shares
Preference Shares
Hybrid Debt & Equity Instruments
Financial Advisory Services
Corporate & Project Advisory Services
Debt Advisory & Debt Arranging Services
Capital Raising Advisory & Placement Services
Strategic Advisory Services
Infrastructure Bonds
Page 12 of 19
Chapter 3:
Financial Data
Balance Sheet
Statement of Profit & Loss
Market Value of Company
Dividend Declared
Page 13 of 19
L&T Infrastructure Finance Co. Ltd – Balance Sheet
Page 14 of 19
Page 15 of 19
Market Value of Company
In the backdrop of a difficult business environment causing a slow-down in the implementation
of infrastructural projects in general, the Company achieved commendable growth during 2012-
13, highlights of which are given below:
Gross Assets against grant of financial assistance grew 35% from ` 1,091,350.33 Lakhs as
at March 31, 2012 to ` 1,478,643.08 Lakhs as at March 31, 2013
Total income grew by 35% from ` 118,390.83 Lakhs in 2011-12 to ` 159,977.81 Lakhs in
2012-13.
Profit Before Tax (PBT) grew by 24% from` 37,815.50 Lakhs in 2011-12 to ` 46,994.42
Lakhs in 2012-13.
Profit After Tax (PAT) grew by 30% from ` 26,395.12 Lakhs in 2011-12 to ` 34,421.42
Lakhs in 2012-13
Dividend Declared
During the year, Company declared an interim dividend of ` 0.24 per Equity Share. Directors
considered it financially prudent in the long-term interests of the Company to reinvest the profits
into the business of the Company to build a strong reserve base and grow the business of the
Company. No final dividend has therefore been recommended for the year ended March 31, 2013.
Page 16 of 19
Chapter 4:
Competitors & SWOT Analysis
Competitors
SWOT Analysis
Page 17 of 19
Competitors
ICICI securities
HDFC Bank
Karvy Investor Services Ltd. – Hyderabad
SBI Capital Markets Ltd
Bajaj Capital
Bank of Maharashtra
Sharepro Services (I) Pvt. Ltd.
SWOT Analysis – Larsen & Toubro Co. Ltd.
Strengths
Diversified Business
Strong Financial Position
Strong Management
Opportunities
International Presence
Alliance with Power Sector
Favorable Tax Exemptions
Weakness
Decreasing book value from oil
and gas sector
Cash Conversion
Growth in Assets overweight
growth in profits
Threats
Technology Risk
Global Slowdown
Interest Rate at Risk
Page 18 of 19
Chapter 5:
Bibliography
Page 19 of 19
BIBILOGRAPHY
Sites
L&T Infrastructure Finance Co. Ltd.
http://www.ltinfra.com/financial-information.aspx
L&T Co. Ltd.
http://www.larsentoubro.com/lntcorporate/common/ui_templates/homepage_news.aspx?res=P
_CORP
