CHAPTER-I INTRODUCTION

ENGINEERING, PROCUREMENT AND CONSTRUCTION

In an engineering, procurement and construction (EPC) contract, the EPC

contractor (EPCC) agrees to deliver the keys of a commissioned plant to the
owner for an agreed amount, just as a builder hands over the keys of a flat to the
purchaser. The EPC way of executing a project is gaining importance
worldwide. But it is also a way that needs good understanding, by the EPCC,
for a profitable contract execution.

The Company's principal activities are Engineering, Procurement and

Construction business. The company provides Engineering Procurement
Construction business in power transmission, distribution, sub-station, railways
and telecom having presence in India and Overseas. On 6th August 07 the
company has merge with RPG Transmission Limited (RPGTL) and with
National Information Technologies Limited (NITEL)

CHAPTER – II COMPANIES AND PRODUCT PROFILE

KEC INTERNATIONAL LTD.

A TOWERING CORPORATE:-
KEC International Limited (KEC), part of the US$ 2.75billion RPG Group, is
a leader in the domestic and global power transmission and distribution
(T&D) business. Established in 1945 as Kamani Engineering Corp. Ltd. Merge
in 1982 with RPG Group. It was renamed in 1984 as KEC International Ltd.
One of the largest Power Transmission Engineering Procurement and
Construction (EPC) companies in the world as well as One of the dominant
players in SAARC (South Asian Association of Regional Corporation), Middle
East, Africa & South-East Asia. KEC has made an indelible mark with its
presence in over 40 countries. Through constant and continuous re-engineering.
KEC has gained a position of leadership in the areas of quality, technology,
capacity and capability. Till date, KEC has supplied more than 2 million metric
tons of towers and has constructed over 58,000 kms. Of transmissionlines, more
than enough to encircle the entire globe. KEC has continued its value chain
expansion by entering into distribution and rural electrification, optical fiber
cable installations, concrete spun pole manufacturing, supply of telecom
towers, hotline stringing and providing services such as Satellite/GPRS surveys
With specific strengths in the areas of tower design, manufacture, cross-country
project management skills, KEC has been expanding its client base across
the globe.
KEC International is one of the largest Power Transmission EPC companies in
the world. KEC has made an indelible mark on the world map by constantly and
consistently re-engineering itself to retain its position of leadership in the areas
of quality, technology, capacity and capability.

KEC strengths lie in the areas of Design, Manufacture, supply and Construction
of Turnkey Projects of Power Transmission lines of voltages up to 800 KV and
in the execution of Railway Electrification projects, setting up Sub-stations and
power Distribution Networks, Optical Fiber Cable (OPGW) installations,
Turnkey Telecom Infrastructure Services and maintenance of Power
Transmission Lines.
The KEC credo is that no project is complete till the customer is totally
satisfied. KEC has successfully executed contracts from 33 KV to 800 KV in
India and abroad.
KEC has undertaken projects in following countries... Turnkey contracts -
Algeria, Bangladesh, Egypt, Ethiopia, Ghana, India, Indonesia, Iraq, Iran,
Kenya, Kuwait, Lebanon, Libya, Malaysia, Nepal, Oman, Philippines, Sudan,
South Africa, Sri Lanka, Saudi Arabia, Syria, Thailand, Tunisia, UAE.
Supply of Towers - Argentina, Australia, Brazil, Canada, Laos, New Zealand,
Nigeria, Qatar, Vietnam, USA.

RESEARCH & DEVELOPMENT:

DESIGN CAPABILITIES:
MANUFACTURING SKILLS:

 TECHNOLOGY

 FABRICATION TECHNOLOGY:
 GALVANIZING TECHNOLOGY:

CHAPTER – III PROJECTS RELATED LITERATURE

A] FINANCIAL FORECASTING
B] FINANCIAL STATEMENTS:
C] FINANCIAL STATEMENT ANALYSIS:
D] RATIO ANALYSIS:
THE CLASSIFICATION OF FINANCIAL RATIOS

S. No. Type of Ratio Significance

 These are measures of the short-term ability
of the company to pay its debts when they
1 Liquidity Ratios
come due and to meet unexpected needs for
cash
These indicate the company's operating
2 Profitability Ratios
success i.e. profitability
These indicate how well the company’s assets
3 Activity Ratios
are managed
These indicate how much of debt has been
4 Leverage Ratios used to finance various investment in
different assets

E] CASH FLOW STATEMENT

CHAPTER - IV OBJECTIVE OF STUDY

 To understand changes in economy as same as increase in inflation rate

effects on KEC & related industry.

 To diagnosis of financial health of the firm for the management,

creditors, lending institutions and finally the investors.

 To evaluation of the financial performance of the company of past,

present and anticipated future.
  Tries to identify the firm's financial strengths and weaknesses and
provides the essential foundation for financial decision making and
planning.

 To understand the efficiency and performance of the concerned firm as a

whole.

CHAPTER – V RESEARCH METHODOLOGY

OBJECTIVE

 To discuss the basic concepts of Financial Analysis

 To do Financial Analysis of the performance of KEC over the years with
the help financial Statement Analysis.
 To find out the financial strengths and weaknesses of KEC.
 To understand the industry in which KEC operates

TYPES RESEARCH:

 Primary research / Field Research involves the collection of primary

data or information that is new. This is collected through surveys and
questionnaires that are made out specifically for a purpose.
  Secondary research / Desk Research involves gathering data that already
exists either from internal sources of client, publication of governmental
and non-governmental institutions, free access data on the internet, in
professional newspaper and in annual reports of companies and
commercial database to name but a few. In many projects, carrying out an
initial desk research stage is strongly recommended to gain background
knowledge to a subject as well as providing useful leads that will help to
get the maximum from research budget
SOURCES OF DATA COLLECTION
The data relating to financial forecasting was collected from multiple sources
like newspaper, books, internet sources, annual report, KEC’s database etc.
These sources provided data like exchange rates, transactions done by KEC’s,
information regarding various book project and capital, sales, interest rate etc.

LIMITATIONS

 Foremost limitation is limited time duration of project which not enough

to study all financial statement analysis.

 This study is based on past financial data of the organization. Forecasting

may not be correct due to economical changes.
 Organization guide had not gave enough time me during the project
because of their busy schedule like TAX audit, Internal audit, Filing the
Income Tax, Routing work.
 People may not reply if emails or letters are used.

 People are not providing correct data due to some regulation of the
organization.
 CHAPTER – VI DATA ANALYSIS AND INTERPRETATION

A] GROSS PROFIT MARGIN:

B] NET PROFIT MARGIN:
C] RETURN ON EQUITY (ROE):
D] EARNINGS PER SHARE:
E] BOOK VALUE PER SHARE:
F] DIVIDEND YIELD RATIO:
LIQUIDITY RATIOS:
A] CURRENT RATIO:
B] QUICK RATIO:
LEVERAGE RATIOS:
A] DEBT TO EQUITY RATIO:
B] INTEREST COVERAGE RATIO:
ACTIVITY RATIOS:
A] INVENTORY TURNOVER RATIO:
B] FIXED ASSETS TURNOVER RATIO:
C] WORKING CAPITAL TURNOVER RATIO:
D] DEBTORS’ TURNOVER RATION:
E] EXPORTS TO GROSS SALES:

CHAPTER – VII CONCLUSION

Based on the study of RPG Transmission industry and KEC

INTERNATIONAL LTD financial performance over the years, following
important points were observed about current global market scenario for the
KEC INTERNATIONAL LTD.

• KEC has enhancing efficiency of turning raw material into sales which
affecting gross profit positively.

• KEC had fully utilized efficiency in favorable condition [increasing

demand] for increasing sales as same as Net profit.

• Return on Equity ratio indicate that KEC management has enhancing

their efficiency to fulfill responsibility very well of maximizing profit and
owners welfare.

• Book value of per share of KEC had increasing year to year, this sign of
good performance of organization.

• Current ratio and Quick ratio of KEC had indicating strong liquidity
position compare to previous year.

KEC’s is not more depends on debts fund, in previous year they had increase
their Equity capital which help to reduce their risk during recession.