Final Analysis Report of L & T

7/25/2019 Final Analysis Report of L & T

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Financial analysis

Of

LARSEN AND TOUBRO

A Project report

Submitted to

Mr. Shakti Dodiya

Faculty Member,

S.K. School of usiness Mana!ement,

"emchandracharya #orth $ujarat %ni&ersity

On

December

'n partial fulfilment of the re(uirements for the

Mana!erial Accountin! ) * +ourse in the Master

Of business Administration Pro!ramme

y

KAA#$'-A '/A- 01*2,

PA/APA3' A"%4 0562

S. K. S+"OO4 OF %S'#7SS MA#A$7M7#3, PA3A#


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787+%3'7 S%MMA-

Project objecti&e9

Financial analysis of 4AS7# A#D 3O%Ofor 2006 to 2015, Analysis and interpretation of

the various financial statements like P&L A!, "alance sheet and common si#e statement$

7:tent of study9

%e are analy#in the annual report of 4AS7# A#D 3O%Ofor 2006 to 2015$ 'he

pro(ect presents the details of financial position of company$ %e are re)uired to prepare this

pro(ect report to develop the financial analysis and interpretation skill$ 'he pro(ect ena*les us

interact +ith the real corporation eal economy and real +ord-s pro*lem$$

4imitation of the study9

A study of annual report doesn-t provide full information of firm$ An interpretation *ased onfinancial statement may prove +ron$ !omprehensive study of various financial aspects re)uires

coverin other statement also the purpose of annual report is to shareholders .nvestors and

creditors only$ .t doesn-t focus on internal accountin and situation *usiness

Si!nificance and need of financial analysis9

A prospective manaer-s +ork is to et data$ Pit them into loical order$ Analy#e and derive

correct decision from the data$ /o a potential manaer must have an a*ility to analy#e, interpret

and derived optimal solution of the pro*lem$ 'o prepare various statements do not mean$ %e are

no proper part *ut the task is to decision makin and for+ard$



3/60

P7FA+7

We had decided to prepare the project report on LARSEN AND

TOUBRO Under the subject of Financial Accounting.

In todays competitive orld of business the value of

management is enhancing day by day. !anagement play

important role. "o# practical studies is necessary along ith the

theoretical studies.

$y preparing the project report e can understand the original

scenario.

%he folloing report by our sincere e&ort includes all the possible

aspects of LARSEN AND TOUBRO. %his report also includes

graphical representation here ever it is necessary..

S.K. School of business Mana!ement,

"emchandracharya #orth $ujarat %ni&ersity,

Patan.

Date9

Place9 Patan



4/60

A+K#O;47D$7M7#3

I and vijay# the student of S.K. School of Business

Managemen# has or'ed out on the project entitled l!T.

(aving number of options e have put our best to ma'e this

project a successful one ithin our scope and time.

First of all# our heartfelt than's to our Accounting Faculty# M".

Sha#i Do$iya# ho helped us in every possible manner. (e

ensured a proper environment to or' in. (e alloed complete

freedom to complete our or'. We also than's to all the members

for their sel)ess co*operation and help for completion of this

project.

We do not +nd proper ords to e,press our deep sense of

gratitude for the help rendered by our all friends for e,tending

their helping hands henever and here re-uired.



5/60

+"AP37

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A 787+%3'7 S%MMA- 1

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4'S3 OF 3A47S

%&A'T

ER.

NO.

TABLE

S NO..

TABLES '(.

NO.

) ANAL*S+S O, BALAN%E S&EET /

0. "tatement of $alance "heet / 0.0 %read "tatement of $alance "heet 1

0.2 3ertical "tatement of $alance "heet 4

0./ (ori5ontal "tatement of $alance "heet 6

- ANAL*S+S O, 'RO,+T ! LOSS A%%OUNT 0

2. "tatement of pro+t and loss account 0

2.0 %rend "tatement of 7ro+t and 8oss 00

2.2 3ertical "tatement of 7ro+t and 8oss Account 0/

2./ (ori5ontal "tatement of 7ro+t and 8oss Account 01

RAT+O ANAL*S+S 09

1.. :urrent ;atio 09 1..0 ross 7ro+t ratio 22

1.0.0 ?perating 7ro+t ;atio 21

1.0.2 =et 7ro+t ;atio 29

1.0./ ;ate of ;eturn ?n Investment 24

1.0.1 ;ate of ;eturn ?n @-uity 2

1.2. %otal Assets %urn ?ver ;atio /B

1.2.0 =et Fi,ed Assets %urn ?ver ;atio /

1.2.2 Inventory %urnover ;atio /0 1.2./ Average Age of Inventories /2

1.2.1 Cebtors %urn ?ver ;atio //

1./. @-uity ;atio /4

1./.0 Cebt ;atio /

1./.2 Cebt @-uity ratio /6

1././ Interest :overage ;atio 1



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1./.1 C:; 10

1.1. @arnings 7er "hare 12

1.1.0 Cividend 7ay ?ut ;atio 1/

4'S3 OF $AP"

%&A'T

ER.

NO.

(RA'

&S

NO..

(RA'&S '(.

NO.

/ (ENERAL +N,ORMAT+ON 0) ANAL*S+S O, BALAN%E S&EET 0

0. "tatement of $alance "heet 0 0.0 %read "tatement of $alance "heet 9

0.2 3ertical "tatement of $alance "heet 0 0./ (ori5ontal "tatement of $alance "heet 0

- ANAL*S+S O, 'RO,+T ! LOSS

A%%OUNT0

2. "tatement of pro+t and loss account 0 2.0 %rend "tatement of 7ro+t and 8oss 02

2.2 3ertical "tatement of 7ro+t and 8oss

Account0

2./ (ori5ontal "tatement of 7ro+t and 8oss

Account0

RAT+O ANAL*S+S 0 /.. :urrent ;atio 04

/..0 ross 7ro+t ratio 22

/.0.0 ?perating 7ro+t ;atio 21

/.0.2 =et 7ro+t ;atio 29

/.0./ ;ate of ;eturn ?n Investment 24

/.0.1 ;ate of ;eturn ?n @-uity 2

/.2. %otal Assets %urn ?ver ;atio /B

/.2.0 =et Fi,ed Assets %urn ?ver ;atio /

/.2.2 Average Age of Inventories /0

/.2./ Average Age of Inventories /2

/.2.1 Average Age of Inventories //

/.2.9 Cebtors %urn ?ver ;atio /9

/./. @-uity ;atio /



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/./.0 Cebt ;atio /6

/./.2 Cebt @-uity ratio 1B

/././ Interest :overage ;atio 1

/./.1 C:; 10

/.1. @arnings 7er "hare 12

/.1.0 Cividend 7ay ?ut ;atio 1/

+"AP37 ) *

$7#7A4 '#FOMA3'O#

0*.*2 O&er&ieE9L&'-s capa*ility spectrum em*races !oal and as *ased pro(ects$ ur epertise

encompasses virtually every aspect of desin, enineerin, manufacture, construction and

pro(ect manaement$

L&' Po+er is part of the Larsen & 'ou*ro roup, +ith a mandate to interate L&'-s varied

offerins in the thermal po+er sector$ .t is uni)uely positioned to com*ine rich and diverse

strands of eperience in enineerin, manufacturin and pro(ect eecution +ith stron

manaement focus on providin turnkey solutions$ L&' Po+er seeks to partner +ith itscustomers in providin solutions that *est address their needs$ .n3house strenths are

supplemented *y colla*orations +ith lo*al leaders in the fields of enineerin and

manufacturin$ L&' Po+er is also committed to continually upradin its skills to meet the

challene of the future$L&' Po+er has +orld3class manufacturin facilities at 4a#ira near /urat u(arat for

supercritical *oilers, steam tur*ines, enerators, pressure pipin, aial fans, air3preheaters

and electrostatic precipitators$

.ts pan3.ndia presence includes multiple pro(ect sites and pro(ect manaement centres at

7adodara, Farida*ad and !hennai$

0*.12 'S'O#9L&' Po+er shall *e .ndia8s most preferred provider of e)uipment, services and turnkey

solutions for fossil fuel3*ased po+er plants and a leadin contri*utor to the nation8s po+er

eneration capacity$



9/60

0*.


10/60

0*.=2 Founded9Pre9independence: A company +as founded in "om*ay ;um*ai in 1 "ritish .ndia *y

t+o ?anish enineers, 4ennin 4olck3Larsen and /oren @ristian 'ou*ro$ 'he company

*ean as a representative of ?anish manufacturers of dairy e)uipment$ 4o+ever, +ith the

start of the /econd %orld %ar in 1


11/60

0*.52 Product9

.n addition to undertakin turnkey pro(ects, L&' Po+er also offers e)uipment and other

services for po+er plants$

!oal "ased Po+er Plants

as "ased Po+er Plants

Machinery @ 'ndustrial Products company

L&'3!ase B)uipment Private Limited

L&' @omatsu Limited L'@

'ractor Bnineers Limited 'BCL

Audco .ndia Limited A.L

L&'3?ema Plastics ;achinery Limited

B%A! Alloys Limited

0*.B2 O3"7 D73A'4S OF +OMPA#-9/1B"ief 2"o3le

Larsen & 'ou*ro Limited L&' is a technoloy, enineerin, construction and

manufacturin company$ .t is one of the larest and most respected companies in .ndia8s

private sector$ ;ore than seven decades of a stron, customer3focused approach and the

continuous )uest for +orld3class )uality have ena*led it to attain and sustain leadership in

all its ma(or lines of *usiness$ L&' has an international presence, +ith a lo*al spread



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of offices$ A thrust on international *usiness has seen overseas earnins ro+

sinificantly$ .t continues to ro+ its lo*al footprint, +ith offices and manufacturin

facilities in multiple countries$ 'he company8s *usinesses are supported *y a +ide

marketin and distri*ution net+ork, and have esta*lished a reputation for stron customer

support$

2) Ser&ices9Financial Services companyD L&' .nternational FDB L&' Er*an .nfrastructure Limited

L&' .nfrastructure Finance Limited

L&' L&' Finance Limited

L !apital !ompany ltd$ L'!!L: /u*sidiary !ompany L&' .nfrastructure ?evelopment Pro(ects Ltd$ L&'.?PL: /u*sidiary !ompany


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2 "ouse9

L&'

*62 S7 code9

500510

**2 #S7 symbol9

L'

*12 'S'# #O9

.CB01>A010=0

*


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*?2 #'+ acti&ity9!onstruction And ;aintenance f ;otor+ays,/treets, oads,ther7ehicular And Pedestrian %ays,

4ih+ays, "rides,

'unnels And /u*+ays

*2 #'+ code9

H2101

162 Address9 1=A" 2nd Floor,

/amitha %arehousin !omple, "ehind /akinaka 'elephone Bchane,

Andheri @urla oad,/akinaka, Andheri Bast, ;um*ai,H000I2

1*2 Phone no9

02236II20=006II20H00

112 ;ebsite9

.larsentoubro.com

+"AP37 ) 1

Analysis of Balance Shee1.* A4A#+7 S"773

http://www.larsentoubro.com/http://www.larsentoubro.com/


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).) T"en$ Analysis



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17/60

%otal "hare :apital @-uity "hare :apital "hare Application !oney

Init. :ontribution "ettler 7reference "hareApplication !oney

@mployee "toc' ?piton

=etorth "ecured 8oans Unsecured 8oans

!inority Interest 7olicy (olders Funds %otal 8iabilities

>ross $loc' 8essE ;evaluation ;eserves 8essE Accum. Cepreciation

:apital Wor' in 7rogress Investments Inventories

:ash and $an' $alance %otal :urrent Assets 8oans and Advances

Ceferred :redit :urrent 8iabilities 7rovisions

=et :urrent Assets !inority Interest >roup "hare in Goint 3enture

%otal Assets "ource E Cion >lobal

"olutions 8imited

I=%@;7;@%A%I?=E

)4/)5%he total e-uity share capital as BB hich is e-ual to previous year0B and the reserves 4.21 are hich is increased than previous year.

)4/-5%he total e-uity share capital as BB. %he reserve is again increased

ith 21./.

)4/65%he reserve is again increased by 1B.9/. %he secured loan 2B4.1. Is

and unsecured loan is 044.19 hich sho that the company has created

trust in mar'et.

)4/5%he reserve is 92.//. %his is good sign for companys groth. %he

secured loan is /01./0. And unsecured loan is 01/. hich sho that the

company has created trust in mar'et.



18/60

).- 7e"ical Analysis

I=%@;7;@%A%I?=E



19/60

)4//5%he total e-uity share is B.00and e-uity share is B.00out of total

liabilities hich e considered as BB. %he reserves are /1.22hich are very

good for a company. We considered total asset as BB than the total current

assets# loans and advances are B/.41hich are good for company.

)4/)5%he total e-uity share B.4 and e-uity share is B.4 out of totalliabilities hich e considered as BB hich is less than previous year 0B

and the reserves are /B.2.%he secured loan is /.61. %otal asset are

considered as BB than the total current assets# loans and advances are

B2.6 hich shos that the companys result is good.

)4/-5%he total e-uity share is B.2 and e-uity share is B.2 out of total

liabilities hich e considered as BB hich is again less than previous year

0B0 and the reserves are 29.6. %he secured loan is 26.26. %otal asset are

considered as BB than the total current assets# loans and advances are

B.11.hich is less compared to previous.

)4/5%he total e-uity share is B.1 and e-uity share is B.1 out of total

liabilities hich e considered as BB hich is again less than previous years

and the reserves are 2.49. %he secured loan is 29.0/ and unsecured loan is

hich 04.61.shos that the company has created trust in mar'et. %otal asset

are considered as BB than the total current assets# loans and advances are

B/. hich is very good.



20/60

).6 &o"i8onal Analysis



21/60

+NTER'RETAT+ON5

/. Toal sha"e ca2ial5

%otal share capital increases in march#0B1 by B.12. %his is

bene+cial to organi5ation.

). E9uiy sha"e ca2ial5

@-uity share total share capital increases in march#0B1

by B.12. %his is bene+cial to organi5ation.

-. Secu"e$ loans5

"ecured loans ta'en by organi5ation in year 0B1 are

decreased by /.29 compared to 0B/. %his is god for organi5ations safety.

6. Unsecu"e$ loans5

Unsecured loans ta'en by organi5ation in year 0B1 aredecreased by 22.0 compared to 0B/. %his is god for organi5ations safety.

. Toal $e:5

"ecured and Unsecured loans ta'en by organi5ation are

decreased by 22.0 H compared to 0B1. %his is bene+cial for company.

;. Toal lia:iliies5

%otal liabilities are decreased in 0B1 compared to 0B/. %his is

god forcompany.



22/60

%ha2e"5 -

A#A4-S'S OF POF'3 @ 4OSS A++O%#3


23/60


24/60



25/60

"ales %urnover @,cise Cuty =et "ales

"toc' Adjustments %otal Income @,penditure7oer Fuel :ost @mployee :ost ?ther !anufacturing

@,penses

!iscellaneous @,penses 7reoperative @,p

:apitalised

%otal @,penses

Interest 7$C% Cepreciation

7ro+t $efore %a, @,tra*ordinary items 7$% 7ost @,tra*ord ItemsJ

;eported =et 7ro+t %otal 3alue Addition 7reference Cividend

:orporate Cividend %a, 7er share data

annualisedJ

"hares in issue la'hsJ

@-uity Cividend HJ "ource E Cion >lobal

"olutions 8imited

+NTER'RETAT+ON5

%he total Income in 0B as BB hich increased in 0B0 hich as

0B.BB0 and it as continuously decreased respectively 9.2/1# 6.69/ and

B.916 in 0B2# 0B/ and 0B1.

%he depreciation in 0B as BB# in 0B0 as 9.40# in 0B2 it

as4.B1# in 0B/ it as 69.4and in 0B1 it as 04.00/ hich is

continuously decreasing.


26/60

I=%@;7;@%A%I?=E

%he total Income in 0B as B/.1 as e considered =et "ales as BB. In

0B0 it decreased and as B2.9/. While in 0B2 it as increased ith

B1.20 and in 0B1 it as B1.0.

%he ?perating 7ro+t in 0B as 0./and in 0B1 it as .2.

-.6 &o"i8onal Analysis



27/60

I=%@;7;@%A%I?=E

In above table e have done pro+t and loss account analysis# it shos the

increase or decrease in di&erent aspects of pro+t and loss# e have also

shon percentage increase or decrease in the important parts of the pro+t

and loss. Ne Sales5=et "ales groth by .BH. Which is very good for the

company. E


28/60

%ha2e"5

RAT+O ANAL*S+S

1. 8i-uidity ;atios

1.0 7ro+tability ;atios

1.2 Assets %urnover ;atio

1./ Finance "tructure ;atios

1.1 3aluation ;atio

./ Li9ui$iy Raio5

././ %u""en Raio5



29/60

!ar

K.1!ar

K./!ar

K.2!ar

K.0!ar

K..!ar

K.B!ar

KB6!ar

KBA!ar

KB4!ar

KB9

B.BB

B.0B

B./B

B.9B

B.B

.BB

.0B

./B

B.9

B.46

B.91 B.91B.19

B.44

. .B

.6 .02

+ne"2"eaion5

:urrent assets include inventories# debtors# bills receivable# mar'etable

securities# cash and ban' balance.

While current liabilities includes creditors# bills payable# unpaid e,penses#

provision for ta,# proposed dividend# ban' overdraft.

)4/50%he current ratio for the year 0B1 is .09E the ideal current ratio is

0E so the company is doing good. As it able to pay its total liabilities and

nearby the ideal current ratio.

)4/650In this year the current ratio is .9E it is also good that company

has maintained its capacity of paying current liabilities. :ompany is ma'ing

the eLcient utili5ation of its current assets as ell it is able to pay its hole

liabilities.

)4/-50In the year 0B2 the current ratio is .0E it is nearbyideal currentratio."o e can say that company is doing ell.

)4/)50In the year 0B0 the current ratio is .0/E e can say that company

has ideal current ratio. %he current assets and current liabilities are ideal as

per the company.



30/60

)4//50In the year 0B the current ratiois .6E it is nearby ideal ratio. We

can say that company is doing ell.

)4/450 +nthe year 0BB the ratio is 0.B/E it means that company has the

ability to pay its hole liability. "o it is good.

)44=50In this year the current ratio is .1E is also good that company is

able to pay its total current liability and managing its business. "o it is good.

)44>50In this year the current ratio is .4/E it is good that company has

utili5ing its assets eLciently.

)44?50In this year the current ratio is 0.E it means that company has

maintaining its assets and using it eLciently.

)44;50In this year the current ratio is .91E It is good as the company has

the ability to pay its liabilities as ell it is ma'ing the eLcient utili5ation ofits assets.

./.) @uic# Raio



31/60


32/60

)4/650In the year 0B/ the -uic' ratio is .B1E company does not has the

ability to pay its -uic' liability so it should have to increase its -uic' assets.

)4/- 50In the year 0B2 the -uic' ratio is .B6E. It is good for the +rm.

:ompany has the ability to pay its -uic' liability. %his should be maintained

by the company.

)4/)50In the year 0B0 the -uic' ratio is .E it is also good for the

company. :ompany is near to ideal ratio# in this year the company has the

:apacity to pay its hole -uic' assets.

)4//50In this year the -uic' ratio is .BE it is not good as the company

does not have the capacity to pay its -uic' liabilities.

)4/450In the year 0BB the -uic' ratio is .46E it very bad as the company

does not has the ability to pay at least half of its -uic' liability.

)44=50In the year 0BB6 the -uic' ratio is .91E.

)44>50In the year 0BB the -uic' ratio is .14E it very bad as the company

does not has the ability to pay at least half of its -uic' liability

)44?50In the year 0BB4 the -uic' ratio is .E it is also good for the

company. :ompany is near to ideal ratio# in this year the company has the

:apacity to pay its hole -uic' assets.

)44;50In the year 0BB6 the -uic' ratio is ./4E.

./.- Ne o"#ing %a2ial



33/60

!ar

K.1

!ar

K./

!ar

K.2

!ar

K.0

!ar

K..

!ar

K.B

!ar

KB6

!ar

KBA

!ar

KB4

!ar

KB9

*01#BBB.BB

*0B#BBB.BB

*1#BBB.BB

*B#BBB.BB

*1#BBB.BB

B.BB

1#BBB.BB

*6#1/4.09

*6#942.11

*4#091.16*1#01.21

*9#/1/.20

*1#B10.10

0#B//.60#B26./#01.B/#129.94

Ne o"#ing %a2ial

+ne"2"eaion5

)4/50In the year 0B1 company is not utili5ing its assets properly. It means

that *61/4.09cr. ?f its total current assets as left unused. %his as the

bloc'ed current assets of the company for year 0B1. :ompany can invest

that in any other +eld and ma'e pro+t.

)4/650In the year 0B/*6#942.11cr of current assets are not utili5ed by the

company. It should be utili5ed by +rm and ma'e eLcient use of it.

)4/-50In the year 0B2 *4#091.16cr current assets are not used by

company. :ompany can earn more pro+t by utili5ing the same in any other

+eld.

)4/)50In the year 0B0 the *1#01.21cr of the current assets are bloc'ed inra material and etc. it should not be bloc'ed the production and selling

process should be clear and eLcient. %his much of current assets should not

be bloc'ed.



34/60

)4//50In the year 0B the *9#/1/.20cr assets are bloc'ed but it is

understandable that company has maintained the capacity of paying the

total liabilities.

)4/450In the year 0BB the *1#B10.10cr from the total current assets are not

used but it is some necessary to maintain the di&erence beteen totalcurrent assets and total current liabilities.

)44=5the year 0BB6 the0#B//.60cr current assets are not used by company.

:ompany can earn more pro+t by utili5ing the same in any other +eld.

)44>5In the year 0BB the #B26./cr assets are bloc'ed but it is

understandable that company has maintained the capacity of paying the

total liabilities.

)44?5In the year 0BB4 #01.B/cr of current assets are not utili5ed by the

company. It should be utili5ed by +rm and ma'e eLcient use of it.

)44;5In the year 0BB9 the #129.94cr of the current assets are bloc'ed in

ra material and etc. it should not be bloc'ed the production and selling

process should be clear and eLcient. %his much of current assets should not

be bloc'ed

.) '"o3a:iliy Raio5

.)./ ("oss '"o3 Raio5



35/60

!arK.1

!arK./

!arK.2

!arK.0

!arK..

!arK.B

!arKB6

!arKBA

!arKB4

!arKB9

B.BB

1.BB

B.BB

1.BB

0B.BB

01.BB

2B.BB

21.BB

01.0 09.46

0/.B01.1B

09.9

2.106.12

04.21

2B.00

09.2

("oss '"o3 Raio

'nterpretation9

*.4ere +e calculated the ross profit ratio of the company for last ten years$ 'here are no norms

or standard to interpret ross profit ratio$ enerally a hiher ratio is considered *etter$

1..n the year 2010 & 200I the ross profit ratio is hihest i$e$, =1$>5J & =0$22J$ .t means +e

can say that company +as doin very +ell in *oth the a*ove iven years$

, 200


36/60

=.'han after in year 201= it is very lo+ i$e$, only 2H$10J$ .t should not *e that much lo+$ .t

should *e increase continuous$

5..n the year 2006, 2011 & 201H it is averae$ .t is near *y 26J$ .t is ood +e can say *ut it

should *e increase continuously$ "ut then in year 2012, 201= it decreases and *ecomes only

25$50J$

B.For this company ross profit ratio is sufficient to cover all epenses and provide profit$

.).) O2e"aing Raio5



37/60

!ar

K.1

!ar

K./

!ar

K.2

!ar

K.0

!ar

K..

!ar

K.B

!ar

KB6

!ar

KBA

!ar

KB4

!ar

KB9

B.BB

0.BB

/.BB

9.BB

.BB

B.BB

0.BB

/.BB

9.BB

.BB

0.20 0.922.02 2.9/

/.41

9.94

/.9 /.16 /.0/

.6

O2e"aing '"o3 Ra"io

'nterpretation9

*.peratin ratio varies from industry to industry, as our company is refinin company the

operatin ratio should *e hih$

1..n the year 2010 & 2011 it is 16$6IJ & 1H$I5J$ .t is hihest ratio of the company$ .t is not

ood for company$


38/60

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B.BB

0.BB

/.BB

9.BB

.BB

B.BB

0.BB

/.BB

1.29 1.4B4.B2 4.0

.11

0./1

4.04 4.9

.B

4.4

Ne '"o3 Raio

'nterpretation9

*..t measures the overall profita*ility of *usiness$ A hih ratio indicates the efficient

manaement of the affairs of *usiness$ .n this analysis in year 2010 net profit ratio is 12$H5J$ .t

hihest ratio of net profit in last ten years$ .t is very much *eneficial for the company$

1.After the year 2015 the company is doin )uite +ell compare to *efore 2015 it is increasin$

/o it is ood for the company$


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B.BB

1.BB

B.BB

1.BB

0B.BB

01.BB

2B.BB

4.2 .4B.94 .B1

2./

0B.B/

9.B 4.9

0/.6/ 0/.9/

RO+

'nterpretation9

*.'his calculation can *e altered *y deductin taes and fees to et more accurate picture of the

total .$

1.%e can see the total investment done *y the company$ "y analy#in the data +e can say that in

year 2006 & 200I the company has done very much ood investment$ !ompany should maintain

the same$


40/60

ROEC1 /).4; /).>> /.6> /.= /?.?> ).=; )/.4- )4.=4 -

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B.BB

1.BB

B.BB

1.BB

0B.BB

01.BB

2B.BB

21.BB

0.B9 0.1./ 1.61

4.4

01.69

0.B2 0B.6B

20.B

09.1

ROE

'nterpretation9

*..t measures ho+ much profit company et on the investment of 1 rupee of shareholder$ .f there

is hih ratio, +e can say that company is makin more profit on investment of shareholders$

1..n the year 2006 it is 26$15J$ .n this case preferred dividends are not included in the

calculation of *ecause these profits are not availa*le to common shareholders$ .t means the

company is doin +ell *ut it has not paid preference dividend to the shareholders$


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B.BB

1.BB

B.BB

1.BB

0B.BB

01.BB

2B.BB

4.2 .4B.94 .B1

2./

0B.B/

9.B 4.9

0/.6/ 0/.9/

RO%E

'nterpretation9

*$ .t measures ho+ much profit company et on the investment of 1 rupee of shareholder$ .f there

is hih ratio, +e can say that company is makin more profit on investment of shareholders$

1$ .n the year 200I it is 2H$


42/60

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B.BB

B.B

B.0BB.2B

B./B

B.1B

B.9B

B.4B

B.B

B.6B

B.16 B.1B.90 B.9/ B.91 B.91

B.4B B.4B.41

B.B

Toal asses u"nove"

+NTER'RETAT+ON5

%he total assets turnover shos the eLcient use of assets that ho

many times the sales are generated from the proper utili5ation of

assets.

In )44;the Asset turnover as 4.>B hich means that the uses of

assets are properly managed and it generated sales nearly tice.

In )44?and )44>again the company as utili5ing or managing the

assets very ell ith 4.?and 4.?/respectively. $ut form )44=to

current year 0B1 the average asset turnover is 4.?4hich is good

but the company can still improve the utili5ation of assets in proper

ay.

.-.) Ne ,i


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B.BB

.BB

0.BB

2.BB

/.BB

1.BB

9.BB

4.BB

0.91 0.9/ 0./1

2.20 2.2/0.61 2.0B

/.B6 /.4

9.14

Ne 3


44/60

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*1.BB

*B.BB

*1.BB

B.BB

1.BB

B.BB

1.BB

0B.BB

/./B

/.0

*.61

*/./*0.94

*B.9

*4.6 *4.6*9.B/ *1.41

Ne o"#ing ca2ial u"nove"

+NTER'RETAT+ON5

From the above chart e can see that the net or'ing capital turnover

in previous years as high compared to the current year.

In )44;the =et Wor'ing :apital %urnover as *.? imeshich are

very good for the company.

In )44?it as0;.46# in )44> it as *?.=/imes and then the netor'ing capital turnover got reduced. In )4//the net capital turnover

ratio as *).;? imesless than the previous years.

So he com2any shoul$ con"ol on hei" cu""en lia:iliies an$

inc"ease hei" cu""en asses.

.-.6 +nveno"y Tu"nove"5



45/60

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B

0

2

/

1

9

4

6

B

4.21 4.94.49

.226.B0

1.B0

0.69 2. 0.60

/.62

+nveno"y u"nove"

+NTER'RETAT+ON5

(ere e can see that# in year 0B companys inventory turnover as

highest by 6.B0 times# hich is good for the company. It maintains its

inventory properly.

$ut from year 0BB4 to 0B it had decreased# hich shos that

company does not maintain its stoc' properly.

From 0B to 0B1 it as )uctuating. In 0B1# it is decreased by 1.69

times as compared to previous year.

%o maintain inventory turnover ratio company have to increase its

sales and thus can increase the pro+t.

.-. Ave"age Age of +nveno"ies Raio5



46/60

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B.BB.BB0.BB2.BB/.BB

1.BB9.BB4.BB.BB6.BB

B.BB

+nveno"y u"nove"

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B

0B

/B

9B

B

BB

0B

/B

/.69 /9.9 /9.2 /2.026.6

4.96

0.41.92

02./6

42.B9

Ave"age age of inveno"ies



47/60

+NTER'RETAT+ON5

From the above graph e can say that in previous years the

inventories ere hold for more than / days means the average age of

inventories ere high.

In )44;the inventories ere 'ept?- $ayin the arehouse hile in)44?the average age of inventories as /)-.6= $ayshich as got

good but no the company has good utili5ation of inventories and the

average age of inventories as less.

In )4/- )4/6 and )4/ the average age of inventories ere not

mo"e han 6; $ayhich is good for the company.



48/60

.-.; A1 De:o"s Tu"nove" Raio5

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B

0B

/B

9B

B

BB

0B

/B

9BB

96.219B.0/9B.1012.4/

/10.B9

/2.1/0.691.92

/.9

De:o"Fs u"nove"

'#37P73A3'O#9

'he Averae ae of de*tors- turnover ratio in166B+as **= days.

'his increased in precedin years *y *5? days, *=1 days,and *=< daysrespectively in 166C, 166

166$ 'he ?e*tor-s collection period should *e minimi#ed so that the company could +ork *etter$

'he /ame Averae of turnover ratio 16*< @ 16*=is *B6 days.

.6 ,inance S"ucu"e Raios5



49/60

.6./ E9uiy Raio5

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B.BB

B.B

B.0B

B.2B

B./B

B.1B

B.9B

B.4B

B.20 B.2B.24

B./BB./9 B./1

B.26B./1

B./6

B.1

E9uiy "aio

'nterpretation

'he e)uity ratio is ood indicator of the level of leverae used *y the company$ .t

measures the proportion of the total assets that are financed *y stakeholders, as opposed

to creditors$ A lo+ e)uity ratio +ill produce ood results for stockholder as lon as the company earns

a rate of return on assets that is reater than the interest rate paid to creditors$ .n this analysis +e had calculated last 10 years e)uity ratio and +e found that in the year

2006 the ratio is hihest$ .t is ood *ut it decreases after 2006 it should not *e decreased$ 'he company should have to maintain the ratio$ .t should not *e decreased$

.6.) De: Raio5



50/60

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B

BBBB

0BBBB

2BBBB

/BBBB

1BBBB

9BBBB

/9///.29

1/006.9

216.992B9/2.14

0B/14.2/924.29

0/91.01919B.2

2B6.06.90

De: Raio

'nterpretation

4ere +e had calculated the de*t ratio of last ten years$ From that +e can say that in year

201H it is hihest$ "ut +e can say that company has maintained it as there is not much

fluctuation in the de*t ratio$ .t measures the etent of a company-s or consumer-s leverae$ .t can *e interpreted as the

proportion of a company-s assets that are financed *y de*t$ From this analysis +e can say that the company is hihly financed *y de*t in year 201H$

"ut it is ood for the company that it has maintained its ratio$

.6.- De: G E9uiy Raio5



51/60

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B

BBBB

0BBBB

2BBBB

/BBBB

1BBBB

9BBBB

/9///.29

1/006.9

216.992B9/2.14

0B/14.2/924.29

0/91.01919B.2

2B6.06.90

De: E9uiy "aio

'nterpretation

'his ratio indicates ho+ much de*t a company is usin to finance its assets relative to the

amount of value represented in shareholders- e)uity$ .n this analysis +e had calculated the de*t e)uity ratio for last ten years$ From this data +e

can say that in the year 201H it +as hihest$ 'han it +as decreased$ .n the year 2006 it +as very less *ut after 2006 it +as increased radually$

!ompany should have to maintain the ideal ratio of de*t e)uity$

.6.6 +ne"es %ove"age Raio5



52/60

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B.BB

0.BB

/.BB

9.BB

.BB

B.BB

0.BB

/.//

2./

1./2

.49

.

1.10/.96

1.04

4.

9.

+ne"es cove"age Raio

'nterpretation

'he interest coverae ratio is used to determine ho+ easily a company can pay interest on

outstandin de*t$

From this data +e can say that in the year 2006 6$1> times company could pay its current

interest payment +ith its availa*le earnins$

ther than 2006 company has ood potential of interest payment in the year 2006 to 2011

*ut after 2011 it .ncreases$ .t should not *e decreased company should maintain the ratio$

.6. DS%R



53/60

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B.BB

.BB

0.BB

2.BB

/.BB

1.BB

9.BB

4.BB

.BB

6.BB

2.912.B

/.0

9.9

.

/.01

2.62.6

9.02

/.64

DS%R

'nterpretation

'he interest dscr is used to determine ho+ easily a company can pay interest on

outstandin de*t$

From this data +e can say that in the year 201H =$01 times company could pay its current

interest payment +ith its availa*le earnins$

ther than 2011 company has ood potential of interest payment in the year 201H to 2011

*ut it ?ecreases$ .t should not *e decreased company should maintain the ratio$

. 7aluaion Raios5



54/60

../ Ea"ning 'e" Sha"e5

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BB0B2B

/B1B9B4BB6B

BB

Ea"ning 'e" Sha"e Rs1

'nterpretation

'his ratio measures the amount of net income earned per share of stock outstandin$ .n

this 10 years in the year 2006 the company has earned hihest i$e$, 2>$5


55/60

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B

B.B.0

B.2

B./

B.1

B.9

B.4

B.

B.6

B B B B B B B B B B

Divi$en$ 2ay ou Raio

'nterpretation

.t provides an indication of ho+ much money a company is returnin to shareholders

versus ho+ much money it is keepin on hand to reinvest in ro+th, pay off de*t or add

to cash reserves$ 'his later portion is kno+n as retained earnins$

"ut in the year 2006, 200I, 200>,220


56/60

ecommendation9

'he conclusion of the pro(ect is to study the Kmanaement of sample and testin

of sample *y various instruments the la*s of A! department of the 4imalaya dru

company dehradunM$

.n analytical la* +e study ho+ sample can *e analy#ed and tested *y various

chemicals and instruments$ nes the test is passed then it +ill oes to instrumental la*

1AA/$ .n instruments la* 1AA/ in this la* heavy metals and toic metal can *e

analy#ed and their concentration in PP", volume, duration time, /?$ .n this a*sorption +ave lenth as31$>nm,4325=$Inm, p*3

2>=$=nm, cu3=2H$>nm$ .n another instrument la*32 hih performance thin layer chromatoraphy same

sample can *e analy#ed$ 'his la* is also kno+n as finer printin la*, in this la* samples

photo is taken on various uv fiht like: 25Hnm, =66nm, and +hite liht$ After these t+o la* has analy#ed the sample the sample oes to micro*ioloy la*

+here fudes and coterie can *e analy#ed in sample and try to remove that *acteria and

funus$

SU((EST+ONS5



57/60

L&' is 8"est for .nvestor elations8: Asiamoney

Cational 8ood ?esin8 A+ard for L&'8s /olar Lantern

'he overall eperience in '4B LARSEN AND TOUBROis ecellent *ut someone .

feel that company need some improvement in various places in A! department for

*etter result$

'he first thin that . o*serve in the la*s is that the instrument +hich is used to analy#e the

samples are old$ Co+ a days there are much *etter and improved technoloy and

instrument are comin in the market$ .f company ive preference to that instrument and

technoloy then company provide *etter result and make healthy profit in the market$ /econd thin . suest that company has only t+o plants in .ndia first in dehradun and

second is in "analore$ !ompany must need more units in .ndia to increase thare

production and make more product at a sometime$

iblio!raphy9

Eebsite

1$ +++$moneycontrol$com

1. +++$oncindia$com

http://www.moneycontrol.com/http://www.ongcindia.com/http://www.moneycontrol.com/http://www.ongcindia.com/


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%onsoli$ae$ '"o3 ! Loss accoun of La"sen an$ Tou:"o



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Documents

Final Analysis Report of L & T