Assignment

Basics Information about the Company (2)

1.What is the company’s business? Explain in about 50 words.

L&T is a major in technology like Engineering, Construction & Financial services. It's
headquartered is in Mumbai, India.

It is in various businesses like Construction, Hydrocarbon Engineering, Power,

Metallurgical & Material Handling, Heavy Engineering, Defence, Shipbuilding, Electric
automation, Construction & Mining Machinery, L&T Valves, LTI, L&T Metro Rail, L&T
Finance, L&T Realty, L&T-NxT, Mindtree

Two danish Engineers founded it, Henning Holck-Larsen and Soren Kristian Toubro
with an Indian financing partner, hence Larsen & Toubro. L&T is a professionally
managed company, i.e., a family or a person does not own it.

2.What are its main products and services? Name some of the company’s brands, if any.

Larsen and toubro provides these key products and services

-Construction and project related activity
-Manufacturing and trading activity
- Engineering services

Company has no brands

3.State the high and the low share prices of the company during the F.Y. 2018-19.

High share prices- 1501.99 low share price - 661

4.Who is the Board of Directors of the Company?

Following are the board of directors of the company :

MR. A. M. NAIK
Group Chairman
MR. S. N. SUBRAHMANYAN
Chief Executive Officer and Managing Director
MR. R. SHANKAR RAMAN
Whole-time Director & Chief Financial Officer
MR. SHAILENDRA NARAIN ROY
Whole-time Director & Sr. Executive Vice President
(Power)
MR. D. K. SEN
Whole-time Director & Sr. Executive Vice President
(Infrastructure)
MR. M. V. SATISH
Whole-time Director & Sr. Executive Vice President
(Buildings, Minerals and Metals)
MR. JAYANT DAMODAR PATIL
Whole-Time Director & Sr. Executive Vice President
(Defence & Smart Technologies)
MR. M. M. CHITALE
Independent Director
MR. SUBODH BHARGAVA
Independent Director
MR. M. DAMODARAN
Independent Director
MR. VIKRAM SINGH MEHTA
MR. ADIL SIRAJ ZAINULBHAI
Independent Director
MRS. SUNITA SHARMA
Nominee of Life Insurance Corporation of India
MR. SUBRAMANIAN SARMA
Non-Executive Director
MRS. NAINA LAL KIDWAI
Independent Director
MR. SANJEEV AGA
Independent Director
MR. NARAYANAN KUMAR
Independent Director
MR. HEMANT BHARGAVA
Nominee of Life Insurance Corporation of India
The Balance Sheet (10)

List two assets having the highest proportion in the total assets of the company. Write their
percentage weight in the total assets.
pg-43

What is the proportion of Intangible assets in the total assets of the company?
As at 31st March 2018 the gross property, plant and equipment, investment property and other intangible assets including leased
assets, stood at R 10,935.39 crore and the net property, plant and equipment, investment property and other intangible assets,
including leased assets, at R 7,593.40 crore. Capital Expenditure during the year amounted to R 1,136.78 crore.

What is the proportion of Non-current investments in the total assets?

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

What is the proportion of current assets in the total assets? What is the change in this
proportion as compared to the previous year?

What is the proportion of the trade receivables in relation to the revenue of the company?
What percentage of the company’s receivables is due for more than six months? What is
the proportion of Inventories in the current assets? What is the change in this proportion
as compared to the previous year?

What is the proportion of current liabilities to current assets? What are the company’s
contingent liabilities? List at least 2
 Basics Information about the Company (2)

What is the company’s business? Explain in about 50 words.

What are its main products and services? Name some of the company’s brands, if any.
State the high and the low share prices of the company during the F.Y. 2018-19.

Who is the Board of Directors of the Company?

Auditors (2)

Who are the company’s auditors?

In view of the mandatory rotation of auditors’ requirement and in accordance with the provisions of
Companies Act, 2013, M/s. Deloitte Haskins & Sells LLP were appointed as Statutory Auditors for a
period of 5 continuous years from the conclusion of 70th Annual General Meeting (AGM) till the
conclusion of 75th Annual General Meeting of the Company.

How much was the auditor’s remuneration? Give the detailed breakup of the same.

(In crore)

Sr No. Particulars 2017-2018 2016-2017

a. Paid as auditors
(i) Statutory audit fees 1.90 2.45
(ii) Limited review of standalone and consolidated financial statements on a 1.50 1.30
quarterly basis

b. For taxation matters 0.46 0.48

c. For company law matters 0.30 0.25

d. For other services including certification work 0.52 0.58

e. For reimbursement of expenses 0.20 0.27

The Balance Sheet (10)

List two assets having the highest proportion in the total assets of the company. Write their
percentage weight in the total assets.

What is the proportion of Intangible assets in the total assets of the company?

What is the proportion of Non-current investments in the total assets?

What is the proportion of current assets in the total assets? What is the change in this
proportion as compared to the previous year?

What is the proportion of the trade receivables in relation to the revenue of the company?
What percentage of the company’s receivables is due for more than six months? What is
the proportion of Inventories in the current assets? What is the change in this proportion
as compared to the previous year?

What is the proportion of current liabilities to current assets? What are the company’s
contingent liabilities? List at least 2

IV

The Statement of Profit and Loss (4)

What are the company’s major items of revenues? How have these items changed in
percentage terms as compared to the previous financial year?

The company’s major revenue items comes under revenue from operations which has seen a
growth of 12.53% from past year. The major parts are:

Construction and project related activity which has increased by 14%

Manufacturing and trading activity which has seen a decrease by 2.71 %

Servicing activities which has seen a 12% increase from past year

State Company’s PBDIT (Profit before Depreciation, Interest and Tax), PBIT (Profit
before Interest and Tax), PBT (Profit before Tax) and PAT (Profit After Tax).

PDBIT - 7429 cr , PBIT-7881.19 cr , PBT - 6831.85 cr , PAT - 5387.30

Pbit- 6214 cr, pbt- , pat- 5387 Profit after Tax (PAT) at R 7370 crore

Income tax- 3199 cr, int. - 2471

What was the total amount spent on employees?

The total amount spent on employees was 5713.59 cr

What is the absolute amount and proportion of finance costs (Interest) to the total
revenues? What is the percentage of depreciation/amortization expense in relation to the
gross block value of the fixed assets and total expenses? What is the depreciation method
and accounting estimates involved in charging depreciation in fixed assets?

Absolute amount- 74612 cr, ratio of finance cost to the total revenue - 1.87.

the percentage of depreciation/amortization expense in relation to the gross block value of the
fixed assets = 1.5 %

the percentage of depreciation/amortization expense in relation to the gross block value of the
total expense - 16%

The Depreciation method used here is a straight line method in the case of assets where the
useful life was determined by technical evaluation, over the useful life so
determined.Depreciation method is reviewed at each financial year end to reflect the expected
pattern of consumption of the future economic benefits embodied in the asset.

Where cost of a part of the asset (“asset component”) is significant to the total cost of the asset
and useful life of that part is different from the useful life of the remaining asset, useful life of
that significant part is determined separately and such asset component is depreciated over its
separate useful life.Depreciation on additions to/deductions from, owned assets is calculated in
proportion from the date it is ready for use. Extra shift depreciation is provided on a location
basis. Depreciation charge for impaired assets is adjusted in future periods in such a manner that
the revised carrying amount of the asset is allocated over its remaining useful life.

Statement of Cash Flow (2)

What is the proportion of change in working capital to the total cash from operating
activity?

Comment on cash flow statement with respect to cash flow from operating, investing and
financing activities from the current and previous year.

Prepare common size Balance Sheet for 2018-19 and 2017-18 (5)
https://www.equitymaster.com/research-it/annual-results-analysis/LART/LT-2017-18-
Annual-Report-Analysis/12
Another 15 marks as explained above

Sr Particular 2017- 2016-

No 2018 2017
. (values in (values in
Crores) crores)
a. Paid as auditors 1.90 2.45
(i)Statutory audit 1.50 1.30
fees
●
(ii) Limited review
of standalone and
consolidated
financial
statements on a
quarterly basis
b. For taxation 0.46 0.48
matters
c. 0.30 0.25
For company law
matters
d. 0.52 0.58
For other services
including
certification work
e. 0.20 0.27
For reimbursement
of expenses