EXCUTIVE SUMMARY

This report is about my internship program with L&T Company limited. In this comprehensive report, I have
discussed about every major aspect of the company which I observed and perceived during my internship
program. This is an attempt to how the theories can be applied to practical situation. As a student it is a part of
study for everyone to undergo project at some good institute or organization. So for this purpose I got the
opportunity of training at L&T Company

In this report you will find the detail about the L&T Company Mysore right from its incorporation to the
current position. Along with it, the processes, policies and procedures of the company are also
discussed in detail. During my internship program, I mainly worked in Human Resource
management and accounts management.

First part of the report the general information of the company has been collected. Information is
gathered through the primary and secondary as well. In the second part of the report contains the
specialized subject study. Objective of the project is to work on the various marketing strategies to
promote the product courses of the company. My focus was how company organized and how
company act like a artificial person how HR works how account deportment works.

The main purpose of internship is to learn by working in practical environment and to apply the
knowledge acquired during the studies in a real world scenario in order to tackle the problems using
the knowledge and skills learned during the academic process, in the financial technical managerial
and strategic aspects have been evaluated to analyze the current position of the organization. This
internship report covers many important aspects which are basically related with the operations and
financial aspects of the company. In the end, the learning and experience section consists of all the
polices processes practices which I have undergone through and learned during my internship
program this report also contains my perception about the employee’s satisfaction motivation level
and the working environment of the organization.

Page 1
 CONTENTS

Sl. No. PARTICULARS PAGE NUMBER

1 INTRODUCTION ABOUT 06-09

ORGANIZATION & INDUSTRY

2 ORGANIZATION PROFILE 10-24

3 MCKENZIE’S 7S MODEL & 24-29

PORTER’S FIVE FORCE MODEL

4 SWOT ANALYSIS 30-33

5 ANALYSIS OF FINANCIAL 34-39

STATEMENTS

6 ANALYSIS AND 39-40

INTERPRETATION

7 LEARNING EXPERIENCE, 40-41

BIBLIOGRAPHY AND
REFERENCE

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Contents
CHAPTER 1 6

INTRODUCTION 6

1.1 GROWTH OF ELECTRICAL &ELECTRONICS: 6

1.2 INDUSTRY PROFILE 6
1.3 INDUSTRIAL STRUCTURE 7
1.3.1 THE PRODUCTS OF ELECTRONIC ENERGY METERS ARE: 7
1.3.1.1 METERING AND PROTECTION SYSTEM: 7
1.3.1.2 TARIFF METERS ARE OF TWO TYPES 7
1.3.1.2.1 Single phase meters: 7
1.3.1.2.2 Three phase meters: 7
1.4 FACTORS GOVERNING THE GROWTH OF THIS INDUSTRY 8
1.5 FUTURE OUTLOOK 8
1.6 COMPETITORS INFORMATION 9

CHAPTER 2 10

2. ORGANISATION PROFILE 10

2.1 LARSEN &TOUBRO LIMITED 10

2.2 BACKGROUND 11
2.3 NATURE OF BUSINESS 12
2.3.1 BRANCH OFFICES AREA OFFICE 13
2.3.2 AREA OF OPERATION 13
2.3.2.1 GLOBAL: 14
2.3.2.2 NATIONAL 14
2.3.2.3 REGIONAL 14
3.0 VISION, MISSION, QUALITY AND POLICY 15
3.1 VISION 15
3.2 MISSION 15
3.3 CORPORATE HUMAN RESOURCE POLICY 15
3.4 QUALITY, ENVIRONMENT, OCCUPATIONAL HEALTH AND SAFETY POLICY 15

3. WORK FLOW MODEL 16

2.4 PRODUCT & SERVICES 17

2.4.1 RELAYS: 17
2.4.3 METERS: 17
2.4.4 AUTOMOTIVE PRODUCTS AND SYSTEMS 18
2.4.5 LOW VOLTAGE PRODUCT 19
2.4.6 MEDIUM VOLTAGE PRODUCTS 19
2.4.7 MARINISED PRODUCTS 19
2.4.9 LOW VOLTAGE SYSTEMS 20
2.4.10 MEDIUM VOLTAGE SYSTEMS 20
2.4 PRODUCT/SERVICE PROFILE 20
2.5 OWERSHIP PATTERNS: 21
2.6 INFRASTUCTURAL FACILITY 23
2.6.1 MEDICAL FACILITIES 23
2.6.2 CANTEEN FACILITIES 23
2.6.3 SPORTS FACILITIES 23
2.6.4 LIBRARY 23
2.6.5 COMMUNICATION- 23

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 2.6.6 INTERNET AND E-MAIL FACILITY. 23
2.6.7 TRANSPORTATION- 23
2.6.8 CONFERENCE HALL 23
2.7 ACHIEVENMENTS AND AWARDS 24
2019 24
2018 24
2017 24
2.8 FUTURE PROSPECTS 24
2.8.1 FOLLOWING ARE THE FUTURE PROSPECTORS OF L& T COMPANY: 24

CHAPTER 3 25

3.0 MCKINSEY’S 7S FRAMEWORK 25

3.1 7S OF L&T STRUCTURE 27

3.1.1 THE VARIOUS DEPARTMENTS ARE: 27
3.1.2 STRATEGY 27
3.1.3 SYSTEM 28
3.1.4 STYLE 28
3.1.5 STAFF 28
3.1.6 SKILLS 28
3.1.7STRUCTURE 29
3.1.8SHARED VALUES 29

4.0 PORTER FIVE FORCES MODEL 29

4.1 THREATS OF NEW ENTRATS: 29

4.2 SUPPLIERS BARGAINING POWER: 29
4.3 BUYERS BARGAINING POWER: 29
4.4 INDUSTRY RIVALRY: 29
4.5 SUBSTITUTE: 29

CHAPTER 4 30

5.0 SWOT ANALYSIS 30

5.1 STRENGTH: 31
5.2 WEAKNESS: 31
5.3 OPPORTUNITY 31
5.4 THREATS: 31
5.1 SWOT ANALYSIS OF L&T MYSORE 32
5.1.1 STRENGTHS 32
5.1.1.1 Strong Brand Name in construction and manufacturing in India 32
5.1.1.2 Competitive advantage 32
5.1.1.3 Technical expertise 32
5.1.1.4 Strong financial position 32
5.1.2 WEAKNESSES 32
5.1.3 OPPORTUNITIES 32
5.1.4 THREATS 33

CHAPTER 5 34

6.0 FINANCIAL STATEMENT 34

6.1 GROUP PROFIT AND LOSS EXTRACTS 34

6.2 BALANCE SHEET 35

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 6.3CASH FLOW 35
6.4 SHARE IN PROFIT/LOSS OF JVS/ ASSOCIATES: 36
6.5 STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2019 37
6.6 BALANCE SHEET AS AT MARCH31, 2019 39

CHAPTER 6 40

7.0 ANALYSIS AND INTERPRETATION: 40

7.1 RETURN ON CAPITAL EMPLOYED: 40

7.2 RETURN ON ASSETS: 40
7.3 FIXED ASSETS TURNOVER RATIO: 40
7.4 CURRENT RATIO: 40
7.5 QUICK RATIO: 40
7.6 DEBT EQUITY RATIO: 40
7.7 TOTAL ASSETS TURNOVER RATIO: 40

CHAPTER 7 41

8.0 LEARNING EXPERIENCE 41

9.0 BIBLIOGRAPHY: 41

9.1 BOOKS 41
9.2 WEBSITES 41

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CHAPTER 1

INTRODUCTION

Electronics &electrical industry comprises of various products like display devices, motors, batteries,
cable, electronic components, power distribution, equipment, lighting fixtures, electronic enclosures,
etc the electronics &electrical sector is witnessing various new inventions each and every day. The
main reasons behind these inventions are the growing demand at the consumers end electrical sector
is one of the most active sectors and thus is attracting large number of individuals and companies to
venture into the industry

Larsen & Toubro originated from a company founded in 1938 in Mumbai by two Danish engineers,
Henning Holck-Larsen and Soren Kristian Toubro. The company began as a representative of Danish
manufacturers of dairy equipmentL&T it’s a corporation whose ownership is dispersed among the
general public in many shares of stock which are freely traded on a stock exchange or in over-the-
counter market. It is an industry of conglomerate is a combination of multiple business entities
operating in entirely different industries under one corporate group, usually involving a parent
company and many subsidiaries. Often, a conglomerate is a multi-industry company. Conglomerates
are often large and multinational. L&T company headquarters has located in L&T House, Ballard
Estate Mumbai Maharashtra India. It serving worldwide by different kinds of products in this
company we can see some key like Group chairman MD and CEO. Present Group chairman is Anil
Manibhai Naik and S.N. Subramanyam is MD and CEO of L&T Company.

L&T’s 40 acre Mysore Campus located in the state of Karnataka in South India houses the
manufacturing facility and warehouse of E&A’s Metering & Protection Systems (MPS) business unit
- a market leader in electronic energy meters, tri-vector meters and protective relays. The building
area is around 18,244 sq. mtrs spread across five module.

1.1 GROWTH OF ELECTRICAL &ELECTRONICS:

Indian electrical industry has grown and also due to overall economic growth. The industry has seen
a growth of 15% and it is speculated the same level of growth for the next years. The domestic
market in India is itself large and one must firstly satisfy this market with products that meet
international quality standard. The electrical/electronics industry in India is growing to its full
potential in the coming years individuals use. Besides these, there are about 18-20 manufacturers in
the small scale sector including two manufacturers of electronics energy meters.

1.2 INDUSTRY PROFILE

Indian electrical industry has grown and also due to overall economic growth. The industry has seen
a growth of 15% and it is speculated the same level of growth for the next years. The domestic
market in India is itself large and one must firstly satisfy this market with products that meet
international quality standard. The electrical/electronics industry in India is growing to its full
potential in the coming years.

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The campus has a NABL-accredited test laboratory and is certified for ISO 9001:2008 (quality
management system), ISO 14001:2004(environmental management system), OHSAS 180001:2007
(occupational health and safety assessment series), ISO 13485, BIS, CE,SBA,AS 9000 and CMMI.
The campus is eco-friendly and works on the conservation of natural resources with several green
initiatives like solar heaters, rainwater harvesting, carbon soot mapping, kitchen waste bio gas plan,
vermin composting, etc. Mysore also houses L&T’s technology services and L&T InfoTech offices.

1.3 INDUSTRIAL STRUCTURE

There are about 15 large manufacturers of electronic energy meters for domestic/commercial use,
constituting a total installed capacity of 1.2 meters per annum including Government order (50 lack )
Of these, seven manufacturers also make meters for individuals use. Besides these, there are about
18-20 manufacturers in the small scale sector including two manufacturers of electronics energy
meters.

1.3.1 THE PRODUCTS OF ELECTRONIC ENERGY METERS ARE:

1.3.1.1 METERING AND PROTECTION SYSTEM:

An electric meter or energy meter is a device that measures the amount of electrical energy
consumed by a residence, business, or an electrically-powered device .Electric meters are typically
calibrated in billing units, the most common one being the kilowatt hour periodic readings of electric
establishes billing cycle and energy used during cycle.

1.3.1.2 TARIFF METERS ARE OF TWO TYPES

In setting when energy savings during certain periods are desired, meters may measure demand, the
maximum use of power in some area ,the electric rates are higher during certain times day, to
encourage reduction in use. Also, in some areas meters have relays to turn off nonessential
equipment.The metering products are:

1.3.1.2.1 Single phase meters: these meters are used for utilization of electric energy consumption
in the Houses.

1.3.1.2.2 Three phase meters: these meters are used for the utilization of electric energy
consumption in the Industries.

1.4 FACTORS GOVERNING THE GROWTH OF THIS INDUSTRY:

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 The key factors governing the growth of electrical and electronics industry are as follows;

 Rising and continuous investment in research and development has led to increased
Productivity and higher value added electrical and electronics products.
 Increased foreign investments have resulted in the accelerated growth interms of electronics
production and exports. Foreign companies are now making huge investment and are
installing extensive production capacities in developing countries.
 Extends support to several global industries namely medical, telecommunication, industrial
and automotive sectors.
 Rising income and living standards have resulted in the increase in demand of electronics
especially consumer electronics in the world.
 This industry is highly fragmented which comprises of many small and medium size
enterprise.
 Asia pacific region is emerging as the most spinning place for the consumer electronics
industry, as the markets remain still
Unreached.
 Rapid pace of innovation in electronics technology is resulting in a consistent demand for
newer and faster products and application

1.5 FUTURE OUTLOOK:

The worldwide electrical and electronics industry is experiencing phenomenal and remarkable
changes these days. The worldwide electronics industry is distinguished by fast technological,
advances and has grown rapidly than most other industries over the past 30 years. Voluminous
production is slowly and gradually moving towards low, cost destinations, which in turn are the
markets which offer the most long term potential. In today's age of competition, electronic and
electrical products manufacturing companies are under constant pressure to develop new and
innovative products in shorter time cycles, at reduced cost.

The global electronics industry is driven by demand for the products, which are durable, lighter,
cheaper, and better than the ones, they replace. To meet up the growing market demands, industry is
slowly and gradually shifting its base to Asia Pacific countries, which is now the prominent source of
electronic components and is soon going to turn out to be the primary destination for consumer
electronics. There is an estimation that within 20 years, two third of the electronics industry will be
four times as big as today and half of it will move into Asia.

Foreign collaborations and mergers are on a rise. A new wave of industrialization is throwing up
several business opportunities for electrical and electronics market to further its market. There is a
vast growth in the sales of computers, software and networking products. Younger generation is
Increasing becoming tech savvy and spending huge amount of money on digital products such as
MP3 players, DVD players, CD players, mobile phones, speakers, headphones.

The future seems prosperous for this electrical & electronics industry in terms of the expected surge
in global demand and upsurge in investments. Many trends such as over-capacity in developed

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markets, globalization, technology advances, regulation and environmental consideration, market
fragmentation and product proliferation will lead to the accelerated growth of this sector.

1.6 COMPETITORS INFORMATION

Electrical and electronic has stiff competition from many leading brands. If faces competition from
the brands like, HPL Secure meters, Landis +GYR give competition in manufacturing electric meters
and have a share of 40 to 45% market value.

HPL Socomec-It is regarded as “the technology brand of India” and is one of the premium
manufacturers of reliable Electrical Protection, Equipment, Switchgears, Electronic Energy Meters
and Energy management system. HPL Socomec commanded 10% market share in Indian market.

Secure Meters- Secure-Is a promise to everyone who touches us, and to everyone we touch. Our
sense of responsibility should give confidence to those around us that they are truly secure by doing
business with us Secure Meters Pvt Ltd operates as an energy metering company. It offers metering
system, such as multi-feeder, digital single phase prepayment, three phase multifunctional
prepayment, and maximum demand controller. And meter grid home, industrial and commercial, and
domestic application secure meter commanded 18% of the market share in the Indian market.

Landis + GYR-We are world’s leader in smart metering, energy management solution, and related
services. Since 1896 we have been committed to managing energy better.

Landis + GYR is global industry leader in total metering solution for electricity, glass, heat/cold and
water for energy measurement solution for utilities. Focused on quality, reliability and innovation,
the group offers a complete portfolio of energy meters and integrated smart metering solutions.
Siemens: Automation system, identification system, process control system, industrial controls and
sensor system are the products offered by the company.

ABB ltd: TheCompany offer a complete solution for automation and some of its automation product
include substation automation and power automation products. These automation products delivered
high Performance every time has it uses the best technology.

Honeywell Automation: Honeywell Automation India ltd has a manufacturing facility in Pune,
which is equipped with the state of the art technology. The company of a its products for various
application like energy management, gas detention, Automatic identification. Rockwell automation:
Motor control devices, control system.

CHAPTER 2

2.ORGANISATION PROFILE

2.1 LARSEN &TOUBRO LIMITED

L&T is US$15 billion technology engineering, construction, manufacturing and finance service conglomerate.
It addresses critical needs and key sector like infrastructure, construction, hydrocarbon, defense, power and
aerospace. It works across seven country including India. It has sustained in major leadership over 80 years.

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L&T has rated 22nd most innovative by Forbes international. It was voted among the most admired
companies in country by fortune in 7th most Powerful Brand in India by Brand Finance.

2.2BACKGROUND

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10
 Henning Holck Larsen Soren Christian Toubro

The evolution of L&T into a major engineering and construction organization is among the more remarkable
success stories in Indian industry. It was founded in Mumbai (then Bombay) in 1938 by two Danish
engineers, Henning Holck-Larsen and Soren Kristian Toubro. Beginning with the import of machinery from
Europe, L&T took on engineering and construction assignments of increasing sophistication. Today, the
company sets engineering benchmarks in terms of scale and complex.

Together, Holck–Larsen and Toubro founded the partnership firm of L&T in 1938, which was converted into
a limited company on February 7, 1946. Today, this has metamorphosed into one of India's biggest success
stories. The company has grown from humble origins to a large conglomerate spanning engineering and
construction. ECC was conceived as Engineering Construction Corporation Limited in April 1944 and was
incorporated as wholly owned subsidiary of Larsen & Toubro Limited. L&T's founders Holck

– Larsen and Toubro

In 1944, ECC was incorporated. Around then, L&T decided to build a portfolio of

Foreign collaborations. By 1945, the Company represented British manufacturers of equipment used to
manufacture products such as hydrogenated oils, biscuits, soaps and glass. In 1945, L&T signed an agreement
with Caterpillar Tractor Company, USA, for marketing earthmoving equipment. At the end of the war, large
numbers of war–surplus Caterpillar equipment were available at attractive prices, but the finances required
were beyond the capacity of the partners. This prompted them to raise additional equity capital, and on 7th
February 1946, Larsen & Toubro Private Limited was born. Independence and the subsequent demand for
technology and expertise offered L&T the opportunity to consolidate and expand. Offices were set up in
Kolkata (Calcutta), Chennai (Madras) and New Delhi. In 1948, fifty–five acres of undeveloped marsh and
jungle was acquired in Powai. Today, Powai stands as a tribute to the vision of the men who transformed this
uninhabitable swamp into a manufacturing landmark.

In December 1950, L&T became a Public Company with a paid–up capital of Rs.2 million. The sales turnover
in that year was Rs.10.9 million. Prestigious orders executed by the Company during this period included the
Amul Dairy at Anandand Blast Furnaces at Rourkela Steel Plant. With the successful completion of these
jobs, L&T emerged as the largest erection contractor in the country. In 1956, a major part of the company's
Bombay office moved to ICI House in Ballard Estate. A decade later this imposing grey–stone building was
purchased by L&T, and renamed as L&T House – its Corporate Office.Top–25 Indian companies. In 1976,
Holck–Larsen was awarded the Magsaysay Award for International Understanding in recognition of his
contribution to India's industrial development. He retired as Chairman in 1978. In the decades that followed,
the company grew into an engineering major under the guidance of leaders like N. M. Desai, U. V. Rao, S. D.
Kulkarni and A. M. Naik. Today, L&T is one of India's biggest and best known industrial organizations with a
reputation for technological excellence, high quality of products and services, and strong customer orientation.
It is also taking steps to grow its international presence.

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 overseas manufacturing footprint, with facilities in China and the Gulf
region. 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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Larsen & Toubro, Mysore

L&T‟s 40 acre Mysore Campus located in the state of Karnataka in South India houses the manufacturing
facility and warehouse of E&A‟s Metering & Protection Systems (MPS) business unit - a market leader in
electronic energy meters, tri-vector meters and protective relays. The building area is around 18,244 sq.
meters spread across five modules.

The campus has a NABL-accredited test laboratory and is certified for ISO 9001:2008 (Quality Management
System), ISO 14001:2004 (Environmental Management System), OHSAS 18001:2007 (Occupational Health
& Safety Assessment Series), ISO 13485, BIS, CE, FDA, AS9000& CMMI. The campus is eco-friendly and
works on the conservation of natural resources with several green initiatives like solar heaters, rain water
harvesting, carbon foot mapping, kitchen waste bio gas plant, vermin composting, etc.

Mysore also houses L&T‟s Technology Services and L&T InfoTech offices.

2.3 NATURE OF BUSINESS

Electrical and Electronics Division (EBG) is one of the divisions of Larsen and Toubro Limited at Mysore.
This division is engaged in manufacturing of switch gear products, metering and protection system and
medical equipment.

L&T follows best manufacturing practice and meet international regulatory and safety requirements. Some of
the good manufacturing practice being followed is six sigma tools, lean manufacturing and value engineering.

L&T promotes sustainability development within the organization and the community through good ethical
business practice.

Electrical and electronics division (EBG) is one core businesses of L&T India’s largest engineering and
construction conglomerate.

The division has operations at different location in India (two in Mumbai and one each in Ahmendnagar,
Mysore and Coimbatore) and one unit for manufacturing operations in China. Another manufacturing facility
in Saudi Arabia.

2.3.1 BRANCH OFFICES AREA OFFICE

KARNATAKA

BHOPAL

AHMEDABAD

BANGLORE

COIMBATORE

CHANDIGARH

CHENNAI
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BHUBANESWAR

NEW DELHI

KOLKATA

VADODARA

HYDERABAD

PUNE

JAIPUR

NAGPUR

JAMSHEDPUR

2.3.2 AREA OF OPERATION

The kind of market segmentation followed by Larson & Larsen in full coverage.This means that all products
manufacturing by the company are sold in various markets.

 Global
 National
 Regional

2.3.2.1 GLOBAL:

L&T now has growing presence in export to market to various counties across the globe. The company has
built a strong base of customers. It exports meters and relays to Africa, South Asia and neighboring counties.

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2.3.2.2 NATIONAL

L&T has acquired leadership position in electric and electronics segment of low tension switchGear in India
and rapidly establishing itself in international market even the revenue from thisSegment is high wile compare
to other division and even in the medical equipment’s is growingRapidly in international market. L&T
currently maintains production plant in India(Karnataka- Mysore, Tamil Nadu –Coimbatore, Maharashtra-
Mumbai)

2.3.2.3 REGIONAL

The company also operates within local market. It has dealer and distributors within Karnataka, the
distributors are followed by dealer and ultimately to customers.

3.0 VISION, MISSION, QUALITY and POLICY

3.1 VISION
L&T shall be professionally managed Indian multinational, committed to total customer satisfaction and
enhancing shareholder value.

L&T-its shall be an innovative entrepreneurial and empowered team constantly creating value and attaining
global benchmarks.

L&T shall foster a culture of caring trust and continuous learning while meeting expectations of employees’
stakeholders and society.

3.2MISSION
To become India’s preferred solution provider for energy measurement monitoring & conservation with an
international presence through a team of engaged employees and business partners

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3.3 CORPORATE HUMAN RESOURCE POLICY
We believe that people are our most valuable resource and play a pivotal role in helping us realize our vision.
We are committed to:

 Acquiring, developing and retaining a pool of high-caliber talent

 Enabling and empowering our employees to be creative and innovative
 Establishing systems and practices for maintaining transparency, fairness and equity
 Creating a culture of continuous learning , competitiveness and excellence through change
management, respecting ethics , values and good governance
We will protect our environment and uphold in letter and spirit the United Nations universal
Declaration of human Rights and the fundamental Human Rights Conventions of the International
Labor Organization.

3.4 QUALITY, ENVIRONMENT, OCCUPATIONAL HEALTH AND SAFETY POLICY

We shall consistently Endeavour to:

 Deliver products and services that meet or exceed customer requirements and expectations
while increasing value to stakeholders.
 Retain leadership position in the domestic market and increase our global presence.
 Develop environmentally sound Products and Services by identifying and addressing relevant
risks and opportunities.
 Prevent or reduce pollution, unsafe instances, ill health along with related risks and hazards.
 Company with statutory, regulatory and other applicable requirements relevant to our
products, services, environment, occupational health and safety.
 Encourage involvement, participation and consultation of our direct and indirect employees,
to improve the overall effectiveness of Quality, Occupational Health and safety management
sys

3.WORK FLOW MODEL

The flow of the work in the organization is the customer to customer approach. The figure shows work flow
model.

Customer
requirement

Design New product Design team Quality Assurance

Pro-type sample

Design Purchase Production

Manufacturing
cycle

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Manufacturing Demand Placing Shortage List Procurement

Production
Demand Quality Control

Sub-contracting
Assembly Issue Stores

Finished goods
Final Assembly Customers

2.4 PRODUCT& SERVICES

2.4.1 RELAYS:

L&T offers wide range of protection, controlling and monitoring relay. These are numerical relay suitable for
low voltage and medium voltage power distribution system. These are manufactured at L&T Mysore works
equipped with modern infrastructure and employing latest testing equipment.

2.4.3 METERS:

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L&T is leading player in electricity meter segment in India. Having entered into market in early 90‟s on the
strength of its indigenously single phase and poly phase meter, it has over a decade experience in design,
manufacturing and supply of electric electronic meter in India utilities.

2.4.4 AUTOMOTIVE PRODUCTS AND SYSTEMS

Industrial Automation Products

Building Automation Products

x2000 Series AC Drives

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2.4.5 LOW VOLTAGE PRODUCT

Electrical & Automation (E&A), leaders in the low voltage switchgear category, is one of the key business
portfolios of Larsen & Toubro Limited, a major Indian multinational in technology, engineering, construction,
manufacturing andfinancial services, with global operations.

2.4.6 MEDIUM VOLTAGE PRODUCTS

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L&T‟s Medium Voltage (MV) products comprise Vacuum Contactor Units (VCU) & Vacuum Circuit
Breakers (VCB). Sub cubicles, half panels, full panels assembled with these products, are together referred to
as MV Assemblies. A wide range of VCBs and VCUs for various voltage levels ease customization of any
particular assembly. These VCBs and VCUs are manufactured and tested at L&T‟s state of the art facility
located at Ahmednagar in Maharashtra. All processes deployed at Ahmednagar Switchgear Works (ASW), are
at par with international guidelines.

2.4.7 MARINISED PRODUCTS

L&T is India’slargest switchgear manufacturer, offering a wide product range for virtually every application.
Our products are technically competent and cost competitive. The wide product range provides single window
solution for bettering services required throughout the life time of equipment. Engineering support is provided
from design of Electrical power distribution systems to commissioning and trials.

2.4.9LOW VOLTAGE SYSTEMS

L&T is one the world’s largest manufacturers of switchgear assemblies. We associate with customers at the
project conceptualization stage and our association continues even after the project is commissioned.

2.4.10 MEDIUM VOLTAGE SYSTEMS

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L&T completes its product basket with a range of MV switchboards. All medium voltage switchgear, ranging
from 3.3kV to 36kV are manufactured, assembled & tested at L&T’s advanced Switchgear Works – the
Works are equipped with a SF6gas handling laboratory. All the operations & processes implemented at our
Works are in accordance with international norms.

2.4 PRODUCT/SERVICE PROFILE

• Product or services are manufacture or provided by the company • Information about their clients or
who are their customer
1) Precision industrial components
2) Keynes technology India pvt ltd
3) Cols& Transformer India pvt ltd
4) Innovative electronic manufacture
5)Vinyas innovative technology pvt ltd
6)S S Technology
7)Dai manufacture pvt ltd
8)Nippon express
9)DHL
10)Hellman
11)ADVENT

2.5 OWNERSHIP PATTERNS:

Shareholders are owners of the company. The L&T group price as of 28.07.2017 is 1159.10 RS. Share

1
2
3
4
5
6

S.No. Description percent of shares

1 Non-institution 42.17

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 2 Banks/insurance 21.89
3 mutual funds 16.59
4 Government 0.26

L&T Board of Directors comprises of chairman and managing directors, 7 whole time directors. The externals
directors are respected professionals in the area of business strategy financial law and policy .L&T shares are
0listed in both BSE (Bombay Stock Exchange) BSE code 500510 and NSE (National Stock Exchange) and
global depository receipts are listed on Luxembourg Stock Exchange.

NAME DESIGNATIONS
A.M. NAIK GROUP EXECUTIVE CHAIRMAN
R. SUBRAMANYAM CHIEF EXECUTIVE OFFICER AND
MANAGING DIRECTOR
R.SHANKAR CHEF FINANCIAL OFFICERS OFFICER
RAMAN
SHAILANDRA. ROY EXECUTIVE VICE PRESIDENT (POWER,
HEAVY AND ENGINEEARING ,NUCLEAR)
D.K. SEN EXECUTIVE VICEPRESIDENT
(INFRASTRUCTURE)
M.V SATHISH EXECUTIVE VICEPRESIDENT (BUILDING,
MINERALS AND METALS)
J.D PATIL J.D PATIL EXECUTIVE VICEPRESIDENT (DIFFENCE)

BOARD OF DIRECTORS AND INDIPENDENT

S. NAME DESIGNATION

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21
 NO.
1 MR.A.M NAIK Group of chairman
2 MR. S.N SUBRAHMANYAN Chief executive officer
3 MR.R.SHANKAR RAMAN Whole time Director and
Chief financial officer
4 MR.SHILENDRA NARAIN ROY Whole time Director &Sir
Executive
Vice President(power)
5 D.K SEN Whole time Director &Sir
Executive vice president
(Infrastructure)
6 M.V SATHISH Whole time Director &sir
Executive Vice President
7 JAYANT DAMODHAR PATIL Whole time Director & sir
Executive Defence (L&T)

INDIPENDENT DIRECTORS

S.NO.
8. M.M CHITALE Independent Director
9. SUBODH BHARGAVA Independent Director
10. M.DAMODARAN Independent Director
11. VIKRAM SINGH METHA Independent Director
12. ADIL ZAINULBHAI
13. AKHILESH KRISHNA GUPTA
14. THOMAS MATHEW.T
15. AJAY SHANKAR
16. NAINA LAL KIDWAI
17. SANGEEV AGA
18. NARAYANA KUMAR

NON-EXICUTIVE DIRECTORS

S.NO.
19. SUBRAMAIAN SARMA
20. SUNITHA SHARMA Nominee of LIC
21. HEMANT BHARGAVA Nominee of LIC
22. ARVIND GUPTA Nominee of SUTTI

2.6 INFRASTUCTURAL FACILITY

2.6.1 MEDICAL FACILITIES- Ambulance room is provider to employees who have the entire
medicine and a full time nurse in attendance

2.6.2 CANTEEN FACILITIES-The Company has canteen functioning, from where the employees can
breakfast and lunch. Apart from these they can get coffee/tea at reasonable price

2.6.3 SPORTS FACILITIES- The process of developing a sport complex, currently the company has a
good cricket ground, two badminton court and 4 TT tables. Competition are kept on time to time
bases. Well-equipped gymnasium with the state of the are equipments where in people can work out
and relaxed

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 2.6.4 LIBRARY- The Company provide a landing library stocked with essential management and
other books. To avail this facility the employees has to become member by filling the membership
form.

2.6.5 COMMUNICATION-The communication channel that in place is via

2.6.6 INTERNET AND E-MAIL FACILITY.The in-house mails can be sent through the Pigeon holes
kept at various points within the building. E-mail ID will be provided to employees based on the
profile and requirements. The company has out look has there E-mail network.

2.6.7 TRANSPORTATION-Is provided to and from major points through the city both day and night
shifts. The details of stops are provided to employees in intranet.
2.6.8 CONFERENCE HALL- The Company provides three conference hall in the campus. The hall is
equipped with AC with timer fixed to it.

2.7 ACHIEVENMENTS AND AWARDS

2019
• L&T have won the prestigious Dun & Bradstreet (D&B) Corporate Awards 2019 in the Construction -
Infrastructure Development category. • L&T construction vertical recognized as ‘Best Performing Power
transmission & Distribution Organization’.

2018
• L&T is Ranked among world’s best employers by Forbes. • L&T received a Special Recognition Awards in
the 2018 Employer Brand research survey conducted in India by the global HR services provider Randstad.
L&T received the award in the infrastructure and construction sector.

2017
• L&T won the prestigious ‘Best Capital Project’ and Infrastructure risk management award at the India

2.8 FUTURE PROSPECTS

“We look forward with optimism to political leadership with the vision, maturity and resolve to usher in a
resurgent era of inclusive growth and prosperity”

2.8.1 FOLLOWING ARE THE FUTURE PROSPECTORS OF L& T COMPANY:

 L&T Company is aiming to build or expand an international business across the world

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  Now they are producing electronic meters, but they want to improve it by adding new
 Features like, the new Filmcard will be inserted to a meters, by inserting the new sum card
 We can get to know the amount of bill through our self. We need not want for the manual
 Electronic bill and also we can pay these bills of amount through online.

CHAPTER 3

3.0 MCKINSEY’S 7S FRAMEWORK

McKinsey 7s model is a tool that analyses firm’s organizational design by looking at 7 key internal elements:
strategy, structure, systems, shared values, style, staff and skills, in order to identify if they are effectively
aligned and allow organization to achieve its objectives.

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 7S FACTORS

HARD SSOFT S

Strategy Style

Structure Staff

Systems Skills

Shared value

Hard" elements are easier to define or identify and management can directly influence them: These are
strategy statements; organization charts and reporting lines; and formal processes and IT systems "Soft"
elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by
culture. However, these soft elements are as important as the hard elements if the organization is going to be
successful.

In McKinsey model, the seven areas of organization are divided into the „soft‟ and „hard‟ areas. Strategy,
structure and systems are hard elements that are much easier to identify and manage when compared to soft
elements. On the other hand, soft areas, although harder to manage, arethe foundation of the organization and
are more likely to create the sustained competitive advantage.

Strategy is a plan developed by a firm to achieve sustained competitive advantage and successfully compete in
the market. What does a well-aligned strategy mean in 7s McKinsey model? In general, a sound strategy is the
one that’s clearly articulated, is long-term, helps to achieve competitive advantage and is reinforced by strong
vision, mission and values. But it’s hard to tell if such strategy is well-aligned with other elements when
analyzed alone. So the key in 7s model is not to look at your

company to find the great strategy, structure, systems and etc. but to look if its aligned with other elements.
For example, short-term strategy is usually a poor choice for a company but if its aligned with other 6
elements, then it may provide strong results.

Structure represents the way business divisions and units are organized and includes the information of who is
accountable to whom. In other words, structure is the organizational chart of the firm. It is also one of the
most visible and easy to change elements of the framework.

Systems are the processes and procedures of the company, which reveal business‟ daily activities and how
decisions are made. Systems are the area of the firm that determines how business is done and it should be the
main focus for managers during organizational change.

Skills are the abilities that firm’s employees perform very well. They also include capabilities and
competences. During organizational change, the question often arises of what skills the company will really
need to reinforce its new strategy or new structure.

Staff element is concerned with what type and how many employees an organization will need and how they
will be recruited, trained, motivated and rewarded.

Style represents the way the company is managed by top-level

Managers, how they interact, what actions do they take and their symbolic value. In other words, it is the
management style of company’s leaders.

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Shared Values are at the core of McKinsey 7s model. They are the norms and standards that guide employee
behavior and company actions and thus, are the foundation of every organization.

3.1 7S OF L&T STRUCTURE

Structure refers to the organization structure which provides information about who reports to whom and how
task, are divided and integrated. The policy and procedures which govern the way in which the organization
acts within itself and within its environment.

3.1.1 The various departments are:

 Material department
 Marketing department Human resources department
 Accounts department
 Quality assurance department
 Production department
 Stores department
 Administrative department.

3.1.1STRATEGY
The integrated vision and direction of the company, as well as manner in which it derives, articulates
communication and implements that vision and direction.

• The main strategy is to ensure maximum utilization of available resources.

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26
• The setup also allows them to take advantages of common pool of technical and marketing talent of the
highest quality.

• Penetration strategy

• Social responsible like health education and environment portion.• Response to natural calamities

• LAKSHA – It is a process making Larsen and turbo of tomorrowEmployee volunteering.

3.1.2 SYSTEM
All the rules inSystem in 7’s framework Regulation, methods and procedures (both formal and informal) that
complement to the organizational structure.

o The system is decentralization

o Software used is SAP (System application program)

o The decision making system within the organization can range from management intuition to manual
policies and procedures, to structure computer system to Complex expert system and artificial intelligence.

o The level of rigors of system can range from rigid and bureaucratic to more laissez faire and flexible.
System can be modern and efficient or out of date

3.1.3 STYLE
o Style refers to way of working and the report relationship. Style means how manager collectively spend
their time and attention and how they use symbolic behavior. How management acts is more important then
what management says. The working of the management is democratic in style.

Kaizen which reduces the effort of the employees mainly used in the production process.

SAP with the help of which the work burden of the employees is reduced up to 50%.

SAP is applicable in various departments like excise, financial and costing material management and
production planning quality management and sales and distribution.

3.1.4 STAFF
Staffing is referred as human resources of an origination where they contribute to the fullest extent to achieve
the organizational goal within a stipulated period. Staffing represents the development of employees in terms
of selection, placement, training, promotion and performance. It includes two process and developing in them
the abilities and skills they need to be effective and efficient.

o Staff means that the company has hired able people, trained them well assigned them to the right jobs. o
Selection, training, rewards, and recognition, retention, motivation and assignment to appropriate work are
key issues.

o Rewards based on performance and potential.

o Transparency.

o The company has presently 2000 employees.

Staffs of Larsen and Turbo are provided the following incentives

• Bonus • Provident fund • Annual increment • Medical facilities

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3.1.5 SKILLS
Refers to one the important attributes or capabilities possessed by the organization are skills. The term skills
include that strength which most of the people used to describe the company.

Skills refer to the fact that employees have the skills needed to carry out the company’s strategyTraining and
development – ensures people know how to do their jobs and stay up to date with the latest techniques.

3.1.6 STRUCTURE
Given the size of the organization, it is important that there is a proper structure, and so a product
classification has been made; each branch has its own training managers, representatives and subject teachers.
This hierarchy is clear to both employees and students. In addition, there are many supporting departments
such as ICT, administration and planning.

3.1.7 SHARED VALUES

You are friendly to one another within the organization, birthdays are celebrated with cake and a small gift,
drinks every Friday afternoon and a teacher’s day twice a year. The student always remains top priority, both
in and outside the office.

4.0 PORTER FIVE FORCES MODEL:

4.1 THREATS OF NEW ENTRANTS:
Low threat of new entrant due to Economies of scale

• Labor intensity
• High capital requirement
• Lack of knowledge and experience
• Access to input
• Access to market

4.2 SUPPLIERS BARGAINING POWER:

High Bargaining power of supplier.Suppliers of construction materials are fragmented and are extremely
critical for this industry since most of the construction work is outsourced. Proper supply chain management
is a costly yet critical need.

4.3 BUYERS BARGAINING POWER:

The bargaining power of buyer is low/moderate. Buyers in Engineering and construction sector have less
choice due to limited number of players. The market forces haven’t empowered the buyers to a large extent.

4.4 INDUSTRY RIVALRY:

The industry rivalry is high. This instinct of the industry is primarily driven by the technical capabilities
acquired over years of gestation under the technical collaboration with international players and the
completion of project on time.

4.5 SUBSTITUTE:
There is no perfect substitute to this industry. It will be affected only when the country is fully developed
than the company needs to look forward towards the emerging economies.

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CHAPTER 4

5.0 SWOT ANALYSIS

SWOT analysis (alternatively SWOT matrix) is an acronym for strengths, weaknesses, opportunities, and
threats and is a structured planning method that evaluates those four elements of an organization, project or
business venture. A SWOT analysis can be carried out for a company, product, place, industry, or person. It
involves specifying the objective of the business venture or project and identifying the internal and external
factors that are favorable and unfavorable to achieve that objective. Some authors credit SWOT to Albert
Humphrey, who led a convention at the Stanford Research Institute (now SRI International) in the 1960s and
1970s using data from Fortune 500 companies. However, Humphrey himself did not claim the creation of
SWOT, and the origins remain obscure. The degree to which the internal environment of the firm matches
with the external environment is expressed by the concept of strategic fit.

• Strengths: characteristics of the business or project that give it an advantage over others.
• Weaknesses: characteristics of the business that place the business or project at a disadvantage
relative to others.
• Opportunities: elements in the environment that the business or project could exploit to its advantage.
• Threats: elements in the environment that could cause trouble for the business or project.
Identification of SWOTs is important because they can inform later steps in planning to achieve the
objective. First, decision-makers should consider whether the objective isAttainable, given the
SWOTs. If the objective is not attainable, they must select a different objective and repeat the process.

Users of SWOT analysis must ask and answer questions that generate meaningful information for each
category (strengths, weaknesses, opportunities, and threats) to make the analysis useful and find their
competitive advantage.

Strengths Weaknesses


Knowledge: Our competitors are pushing
boxes. But we know systems, networks,
programming, and data management.
 Relationship selling: We get to know our
customers, one by one.
 History: we have been in our town forever.
We have the loyalty of customers and
vendors.
Opportunities
 Price and volume: The major stores pushing
boxes can afford to sell for less.
 Brand power: We can’t match the
competitor’s full- page advertising in the
Sunday paper. We don’t have the national
brand name.
Threats

 Training: The major stores don’t provide
training, but as systems become more
complex, training is in greater demand.
 Service: As our target market needs more
service, our competitors are less likely than
ever to provide it.
 The larger price-oriented store: When they
advertise low prices in the newspaper, our
customers not giving them good value.
 The computer as appliance: Volume buying
of computers as products in boxes. People
think they need our services less.

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5.1 STRENGTH:
1. Market leadership providing competitive edge - The Company can leverage its strong brand name and
market leadership position to gain competitive advantage and also expand into international markets

2. Strong technical expertise reinforce leadership position - L&T has set up an engineering and project
management centre in Abu Dhabi to undertake oil and gas related projects as well as engineering and
consultancy services.

3. Diversified revenues providing resilience - In FY2017, the company’s revenues were distributed among
business divisions as follows: engineering and construction, electrical and electronics, machinery and
industrial products, financial services, developmental projects and others. This enables L&T to alleviate its
business risk as fluctuations in a single offering have lesser impact on diversified offerings and provide
resilience to its revenues

4. Over 45,000 employees form a part of its workforce

5. It has offerings like Construction, Heavy equipment, Electrical equipment, Power, Shipbuilding, Financial
services and IT Services

5.2 WEAKNESS:
1. Dependence on domestic operations for revenue generation - In FY2017, the company's domestic (India)
operations contributed more than 80% of the total revenues.

2. Increasing debt impacting financial flexibility - L&T‟s interest and brokerage expenditure over the period
increased.

5.3 OPPORTUNITY:
1. Strategic joint ventures strengthening business - L&T has formed a strategic partnership with Cyan
Holdings plc, a UK-based integrated system design company. L&T and Cascadian entered into a partnership
in February 2017, to become an electronics house for defense and security.

2. Strong project pipeline ensures revenue growth.

3. Growing Indian construction & engineering industry - In 2015, the Indian construction & engineering
industry is forecast to grow.

5.4 THREATS:
1. Rise in cost of construction may affect margins - The rise in crude prices, will increase the cost of
transportation.

2. Challenges in land acquisition likely to affect business - in 2017, Indian government introduced .The Land
Acquisition, Rehabilitation and Resettlement Bill, 2011. As per the bill, compensation for the owners of the
acquired land shall be four times the market value in rural areas and twice in urban areas.

3. Intense competition may reduce profitability – few competitors have substantially greater resources and
superior capabilities than L&T

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5.1 SWOT ANALYSIS OF L&T MYSORE
Larsen & Toubro Limited (L&T) is a giant in the field of construction and manufacturing in India. L&T also
has ventured into electronic and electrical equipment, financial services and information technology. L&T has
observed impressive growth in revenue in the past few years and has many projects in the pipeline currently.

5.1.1 STRENGTHS

5.1.1.1 Strong Brand Name in construction and manufacturing in India: L&T has a strong brand
name in India in the field of construction and manufacturing which enhances its trust on its clients. L&T has
handled various large scale projects in India and has successfully created a trustworthy brand name which is
very important especially in the construction industry.

5.1.1.2 Competitive advantage: L&T is one of the most respected companies in India for engineering for
its custom made technology-intensive equipment and systems. With the strong brand name and strong
manufacturing facilities, L&T holds a competitive advantage.

5.1.1.3 Technical expertise: L&T’s technological capabilities support its design and manufacturing
capabilities and provide an expertise in engineering and project management. L&T’s Technical expertise
provides a competitive advantage to the company.

5.1.1.4 Strong financial position: L&T’s financial position has been improving from the past few years
with company’s total assets growing at a CAGR of 18% and its total capital grew at a CAGR of 12% from
FY2011-15. Improving financial conditions provides a cushion at the time of adverse market conditions.

5.1.2 WEAKNESSES
Dependence on Indian market: Indian market contributes over 65% of its total revenues and thus makes L&T
largely dependent on the Indian market. Overdependence on a particular market makes the company
vulnerable to any fluctuations in the Indian market.

Increasing debt: L&T’s debts have been increasing steadily for the past few years. L&T’s debt has increased
from INR 98960 million in FY2011 to INR 136090 in FY2016. Increasing debts impact company’s financial
flexibility.

5.1.3 OPPORTUNITIES
Growth in Indian construction and engineering industry: The Indian construction and engineering industry
grew by 8% year on year. With expected high government and private spending on infrastructure in the next
10 years on smart cities, metro projects etc. L&T is well placed to leverage the opportunity created in the
industry.

Strong order book position: L&T has won various contracts in the recent past and secured new orders worth
more than $20000 million in the year 2015-16 which showed a growth of over 7% over the year.

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5.1.4 THREATS
Extensive environmental regulations: L&T is subject to follow extensive environmental regulations relating to
health, pollution, waste disposal etc. These regulations increase compliance cost for the company.

Low Oil prices affect the industry: With oil prices decreasing, various drilling projects have been stopped and
expansion plans have been scaled back. This affects growth opportunity for the company and the industry.

GST impact can be negative: The cost of under construction buildings are expected to increase with GST and
it will have an overall negative impact on the construction industry.

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 CHAPTER 5

6.0 FINANCIAL STATEMENT

6.1 GROUP PROFIT AND LOSS EXTRACTS
Particulars Rs. In IT&TS Fin. Devl. L&T&O L&T Group
Billion Servic Project Others (Incl
es s Eliminations
)
FY19 FY18 % Var

Income from 143.7 126.4 50.7 1089.3 1,089.3 1,198.6 18%

operations
EBITDA 30.7 27.5 5.3 99.7 163.2 136.4 20%
Other Income 2.6 3.5 (0.1) 12.5 18.5 13.4 38%
Interest expenses (0.2) - (2.2) (15.7) (18.1) (15.4) 17%
Depreciation
Provision for taxes (2.5) (0.5) (2.1) (15.8) (20.8) (19.3) 8%
Share in (7.8) (7.8) (0.6) (27.3) (43.4) (32.0) 36%
Profits/(loss)of JVs/
Associates - - (0.9) 0.7 (0.2) (4.4)
Adjustments for Non
controlling Interest in
S&A (4.6) (8.2) 0.0 (0.3) (13.1) (6.3)
Exceptional Items - - - - 2.9 1.2 140%

Net PAT 18.2 14.5 (0.5) 56.8 89.1 73.7 21%

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6.2 BALANCE SHEET
Particulars Rs. In Billion Mar-19 Mar-18 Incr/(decr)

Equity & Reserves 624 549 75

Non Controlling Interest 68 52 16
Borrowings - Financial Services 915 752 163
Development Projects 191 178 14
Others 149 145 4

Sources of funds 1,948 1,676 271

Fixed Assets 134 128 6
Intangible assets and Investment property 217 192 25
Loans towards Financing Activities 913 772 141
Finance lease receivable 90 93 (3)
Net Non Current Assets 180 142 38
Current Investments, cash &cash Equivalents 257 175 82
Net current Assets 156 175 (18)

Application of Funds 1,948 1,676 271

Gross Debit/Equity Ratio 1.8 1.8

Net Debt/Equity Ratio (Net of cash, bank & current 1.5 1.5
Investment)

6.3CASH FLOW
FY19 FY18 Particulars Rs. In Billion FY19 FY18
58.4 49.0 Operating Profit 164.1 132.5
15.3 18.3 Changes in working capita (27.0) (42.3)
(11.9) (9.1) Direct taxes paid (45.8) (34.0)

61.8 58.2 Net cash Operation(A) 91.3 56.2

(10.7) (1.0) Net investment in Fixes assets(incl. Intangible) (34.7) (20.2)
(40.2) 2.0 Net (Purchase)/Sale of Long term investments (52.8) 1.3
79.0 57.0 Net (Purchase)/Sale of Current investments (31.8) 29.1
0.4 (2.0) Loans/Deposits made (0.5) (3.9)
4.1 23.0 Investment and Dividend received 9.9 32.8
32.6 78.9 Net Cash from (used in) Invest. Act.(B) (110.0) 39.1
(0.7) 12.1 Issue of share capital/Minority 29.0 14.6
(8.9) (23.9) Net Borrowings 181.7 127.7
(58.4) (89.3) Disbursements towards financing activities (138.5) (156.5)
(8.0) (6.5) Interest and Dividend paid (56.3) (48.6)

(76.1) (107.7) Net Cash from Financing Activities(C) 15.9 (62.8)

18.4 29.5 Net (Dec)/Inc in Cash and Bank(A+B+C) (2.8) 32.5

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6.4 SHARE IN PROFIT/LOSS OF JVS/ ASSOCIATES:

FY18 FY19 Particulars Rs. In Billion FY18 FY19

0.43 0.55 MHPS JVs 1.54 1.68
(1.35) (1.98) IDPL & Subs. (4.14) (0.90)
(0.44) (0.32) Special Steels and Heavy Forgings (2.23) (1.40)
0.19 0.47 Others 0.46 0.41

(1.17) (1.27) Total (4.36) (0.21)

6.5 STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2019
Particulars Note 2018-19 In Crores

INCOMES:
Revenue from operations 31 86,987.86
Other Incomes 32 2,768.84

Total Income 89,756.70

EXPENSES:
Manufacturing, construction and operating expenses 33
Cost of raw materials components consumed 7832.79
Excise duty -
Construction materials consumed 29099.38
Purchase of stock-in-trade 1786.14
Stores, spares and tools consumed 2341.99
Sub-contracting charges 22021.74
Changes in inventories of finished goods, stock-in-trade
and work in progress (1296.12)
Other manufacturing, construction and operating 8117.47
expenses
69903.39
34 6082.49
Employee benefit expense 35 2319.78
Sales, Administration and other expenses 36 1641.39
Finance cost 1067.95
Depreciation, amortization, impairment and 81015.00
obsolescence 1.54
81013.46
Less: Overhead capitalized 8743.24
Total expenses 46 474.93
Profit before exceptional items and tax 9218.17
Exceptional item
Profit before tax 49(a) 2687.22
Tax expenses 49(a) (146.75)
Current tax 2540.47
Deferred tax 6677.70
Profit after tax (31.30)
10.94

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Other Comprehensive Income
A. Items that will not be reclassified to profit or loss: 20.36)
Gain/(loss) on re-measurements of the defined benefits (78.85)
plan Income tax (expenses)/income on measurements of 16.68
the defined benefits plan

B. items that will be reclassified to profit and loss

Debt instruments through Other Comprehensive income.
income tax (expenses)/income on exchange difference in (62.17)
translating the financial statements of foreign operations

9.31

(3.25)

Exchange difference in translating the financial

statements of foreign operations (89.27)
Income tax (expenses) /income on exchange difference 6.06
in translating the financial statements of foreign 30.59
operations

Effective portion of gains/(losses) on hedging 25.39

instruments in a cash flow hedge (8.87) (58.68)
Income tax (expenses)/income on effective portion of
gains/(losses) on hedging instruments in a cash flow
hedge

16.52
Cost of hedging reserve
Income tax (expenses) /income on cost og hedging (118.63)
reserve
6559.07

Other Comprehensive Income for the year (net of tax)

Total Comprehensive Income for the year

Basic earnings per Equity share (Rs) 47.63

Diluted earnings per equity share (Rs) 47.54
Face value per equity share (Rs) 2.00

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6.6 BALANCE SHEET AS AT MARCH31, 2019
Particulars Note As at 31-03-2019

Assets:
Non-current assets
2 6571.93
Property, plant and equipment 2 580.92
Capital work in progress 3 381.26
Investment property 4 228.52
Intangible assets 4 171.69
Intangible assets under development
Financial assets 5 20139.47
Investments 6 1732.65
Loans 7 577.00
Other financial assets 22449.12
49(e) 841.86
Deferred tax assets (net) 8 3347.25
Other non-current assets
Current assets: 9 3220.44
Inventories
Financial assets 10 4694.98
Investments 11 26216.82
Trade receivables 12 2733.41
Cash and cash equivalents 13 4866.08
Other bank balances 14 1293.86
Loans 15 1995.18
Other financial assets 43800.33
16 44090.65
Other current assets 42 41.72
Groups of assets classified as held for sale 125725.69

EQUITY AND LIABILITIES:

Equity 17 280.55
Equity share capital 18 52270.17
Other equity 52550.72
Total equity
Liabilities
Non-current liabilities
Financial liabilities 19 2391.87
Borrowings 20 53.75
Other financial liabilities 2445.62
21 497.62
Provisions 22 0.58
Other current liabilities
Current liabilities
Financial liabilities 23 3668.25
Borrowings 24 4131.45
Current maturities of long term
borrowings 201.86
Trade payables: 25 36076.36
Due to micro enterprises and small 26 1857.85

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 enterprises 45935.77
Due to others
Other financial liabilities 22550.64
27 1423.83
28 320.91
Other current liabilities 125725.69
Provisions
Current tax liabilities(net)
TOTAL EQUITY AND LIABILITIES
CONTINGENT LIABILITIES
COMMITMENTS (capital and others)

CHAPTER 6

7.0 ANALYSIS AND INTERPRETATION:

7.1 RETURN ON CAPITAL EMPLOYED:
It is a financial ratio that measures a company’s profitability and the efficiency which its capital is used. This
measure provides insight into how much profit is being produced of sales. During the year 2018-2019 ratio on
sales is 38.02%

It shows company how efficiently management is using the resource to generate revenue and earn profit.

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7.2 RETURN ON ASSETS:
It shows the relationship between the earning and asset base of the company, during the year 2018-2019 return
on asset is 230.88 times. It indicates that the company can produce relatively higher earning in comparison to
assets.

7.3 FIXED ASSETS TURNOVER RATIO:

The fixed asset turnover ratio is in general, used by analysist to measure operating performances. During the
year 2018-2019 the rate of equity is 18.32.

It shows company was able to successfully utilize the resources provided by its equity investor and the
company profit.

7.4 CURRENT RATIO:

Current ratio is a liquidity ratio that measures whether or not a firm as enough resources to meet its company
short term obligation. During the year 2018-2019the current ratio is 2.29, it indicates the company investment
in current ratio is not a Good sign, it reflects improper utilization.

7.5 QUICK RATIO:

Quick ratio provides a measure of the capacity of the business to meet its short term obligation without any
flow. The standard quick ratio is 1:1. During the year 2018-2019 the quick ratio is 2.54,and so company as
suggest unnecessary deployment of resource.

7.6 DEBT EQUITY RATIO:

It expresses the relationship between total debt and shareholder’s equity debt refers to long term liability.
Equity refers to owners. During the year 2018-2019, the debt equity is 0.02 this clearly shows that the
organization depends heavily on debt as source of capital.

7.7 TOTAL ASSETS TURNOVER RATIO:

This ratio measures how efficiently the firm employs asset. It shows the firm abilities in generating sales from
all financial resource committed to total asset. The firm’s total assets turnover ratio which implies asset of the
firm are well utilized. During the year 2018-2019 the current asset turnover ratio is 2.30 ratio has been
increased, it implies that the company is generating more revenue of assets

CHAPTER 7
8.0 LEARNING EXPERIENCE
My learning experience in the company was very pleasant. The response and support I got from the
management and staffs were appreciable.This training helped me to know practicalities. I learned about
management from practical perspective and I learn about organization as to how it works in management
aspects and the policies and procedures. Totally it was a highly useful training for me in the company.

During the first week, it was new experience entering into the organization. The training was very informative
and useful as if enabled us to have a corporate look over the functioning of each and every department of the
company apart from the theoretical knowledge.During the training I have been working in accounts and HR

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department, where I learnt about data mining and analysis, asset verification, inventory management,
processing of the bill payment, procurement process and organization study in brief.

During the training I also learnt about purchase order and sales orders made by the company and practical
implication of inventory techniques in the company and I also learnt about recruitment Human resource
management document collecting data collecting interview process

9.0 BIBLIOGRAPHY:
9.1 BOOKS
Financial Ratio and Financial Statement analysis by – Jag dish R Aryan

“Operations and Supply Chain Management”, Richard Chase, Ravi Shankar, F. Robert Jacobs

https://www.amazon.in/Nationalist-M-Overcame-Transform-Powerhouse-ebook/dp/B0772F783Q?
tag=googinhydr18418-21&tag=kindlecontentin24-21&ascsubtag=_k_CjwKCAjwnrjrBRAMEiwAXsCc420n-
1lGj-yFLSXNrVV7-ckbnKmEd9UUhV4mnYSh2Akbu9DSfVnizhoCD18QAvD_BwE_k_

9.2 WEBSITES

http://www.sap.com

http://www.larsentoubro.com/corporate/media/#

https://investors.larsentoubro.com/

https://investors.larsentoubro.com/Financials.aspx

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