Project Report on Linde

India Ltd (Learning Team-E-

04)
by Akhil Raturi

Submission date: 18-Sep-2021 05:05PM (UTC+0530)

Submission ID: 1651374937
File name: 3726_Akhil_Raturi_Project_Report_on_Linde_India_Ltd Learning_Team-E-
04 25514_1925835526.docx (1.06M)
Word count: 5635
Character count: 29773
Making our world
more productive

PROJECT
REPORT

Prepared by Learning Team-

4
 6

1
1

1
1) Aiming to be the market leader in Global Industrial Gases and £np/neer/np works
2) Mok/np our world more productive.
3) Safety is their first priority and always strive to achieve the goals ethically,
working for the communities and top into the best talent pool and build a
team of
erfo

1) Linde Recognised as One of the 2021 World’s Most Ethical Companies by

the Ethisphere Institute, Scottsdale, Arizona.
2) Linde Recognised by Standard & Poor’s Global in the Sustainability Yearbook
(2020- 2021) and received a Bronze Medal O/sr/nct/on.
3) MSCI Upgrades Linde’s Environmental, Social and Governance (ESG) rating to A.
4) Linde was named a top 25 company on the 100 Best Corporate Citizens of 2020.
 Linde India ltd deals with manufacturing of oxygen gases for healthcare and industrial
portf’oIio. L inde India can generate one third of the whole oxygen demand throughout
the year. As third wave is going to hit India soon Government implies in manufacturing
15000 tons of medical oxygen per day, Linde itself is focusing on monU/octUr/nq
13,500 tons of medical oxygen per day. L inde has additionally been in contact with the
Government of Madhya Pradesh and Andhra Pradesh to help organizing of further
oxygen storage capacities and manufacturing models.

As discussed, Linde India Ltd deals with production of oxygen which means it is a
manufacturing industry there are various company which deals with oxygen. We are
here to discuss to the position of Linde India in that industry

Companies dealing with manufacturing of oxygen gas

• National oxygen Ltd.

• Bhagwati Oxygen Ltd.
! !
• Gagan Gases Ltd.
''
• /tefex industries Ltd.

Data below shows the increase in Nifty 50 by 2.6% from last year that is 19" March 2021
to 19"April 2021

Company 19-03-2018 J9-03-2021

Bhagwati Oxygen Ltd. 31.25 14.6

Gagan gases Ltd. 7.9

Linde India Ltd. 458.6 1718.45

National Oxygen Ltd. 28.05

1
14
 " ""“"“"" "" "“"“".
Analysis of financial Performance in the Year 2020
: .
Income Statement:

Revenue from Operations fin CroresJ

The company reported Revenue from Operations as 41471.12 Cr and witnessed a decline
in the Revenue from Operations of 16.5%, compared to the Revenue from Operations
for the year ended Oec 20J9, which is Y1761.8 Cr.

i4, 71 1.24 1/,L1/.bL

Notes to Accounts:

24. Itevenuc from operations

t *I II fi u |J L't \ I III I liu I \ Year ended Yeai ended ,
31 Dec.2020 310ec.2019 ,

Sale ol pr0duc is (gases) \ \,949.83 13,0S2.89

I1,332.J3

fi uv ciiue I i u iii ter is li uc mm i cm it i i c1s 4,560.1 7

S.2b J.80

There is decline observed in the revenues from the Gases business of 8.4SX, and the
decline in the revenue from other items of 88fi›, which b«”^9 a significant dec//ne in the
revenue from the Gases division.

On the other hand, the Construction divisian faced a massive decline of39.56% which brings
a substantial impact in the overall revenue from construction contracts.

' 9|Pag c
 Comparative Oata for the Revenue from Operations for the 5 years.

REVENUE FROM OPERATIONS

• 202D

, 2019

' 20lB

i 2017

2016

i 0 50 100 150 200 250 i

' Expenses (in Crores) ''

For the year ended 2020, there had been a” decrease in the fig”ure of total eKpenses
omountin g to R1278.5 Cr compared to the//gure5 /or the total exp’enses reported.in 2019,
i.e., .T1608.4

t2.4J
I./t0.UU

Such decrease in the Expenses is the effect of the reduction in the cost of materials consumed,
Employees benefit eKpenses, Finance Costs, and other eKpenses.

There is an element of Covid impact on the reduction of the various elements of the total cost,
as the operations during the pandemic were limited to a great extent.
 Notes to Accounts:

' 26. Cost ol materials consumed

in Rupees million
Year ended Year ended
i 31 Oet 200
31 Oec 219
, I 0l materials al the beqinin§ 0I lhe veai
13.25
' Puf‹ hases
Less : InventDiy ol malefials at the end DI the yeaf 7.98
, 1,712.M

There is a decline of 44.26% in the cost of material consumed because of the limited
purchase of Raw material in view of the limited operation during pandemic, compared to
the purchase taken place in the year 2019.

i 19. employee bene#ts expenses

, in Ru{›eei million Star ended year ended
JlDec.Z020 Det.2019 ,

' Saiaues and wages, intluflin0 hon us 6Y3S4

' Conlrihuiion io Ofovidert and othei funds 43â0
, Workmen and vta# welfare expenses 10, 79

! ... .. :: !
During the year 2020, Linde India reduced its emPloyee ”benefits expenses by bringing a
reduction of 37.14%, in the Salary, wages, and bonus. Also, there was a reduction of around

' 50% in the Contributian ta pravident and atherfunds, and welfare expenses. It was part af the

\' measures to deflate its expenses during the pandemic to ease its business operations,

10. Finance tosts

, in Rupees million
tear ended ¥ear ended ,
3t Oec. Z020 3 I Oec. 201s ,

, lntefe t expense
34.57 842.22 •
' 0n lonu and shaft leim followings fiom danks 34.S7 28?.74 '
i
On external tomnefcial boifowinqs and othef s“ 21.40
Interest expense on un\minding 21.40
I 0I dismantling cos\
Interest expense On Lease Liability 862. 50 i

Linde India managed to 6r/ng a which is a positive sign that

company wishes to make itself a debt-free corporation. The company was able to settle the
ExLerno/ borrowings in full, thus nullifying the interest cost for the respective segment.
Also,
associated with the long-term
, andshart-term barrawings from Banks. '‘

' 11 | P a g e
1
2
 ! .

from the divestment business which is influencing the reported figures of the PBT after
Extraordinary Items.

t £ \t ! ’ JII tJI LII I!•. I I' I ' '. I ' ’' '' 'I I il''." ’I ' 111! ’I I' !:' I \'::'.. II i fi' ; .' I I . . - : * " ’ !EU * I It• S’.. I ”' ! ’ JI I) II' : JI l/ \ .”. •) !.? '' 1 3 I I' I ;]I
i .!” ' ! III :!5I t

, ’y’ -.II /! !' ’.' III ' ' I ' ”' ' il NJ' I’ ' 'i ' \ i i :) III '' ' " I. I' i '' ’' ' ' ” ‘ ' ” ' NJ .1 '' ''' ' lItJI I.1 : NJ 'f hlI I' ' ' UI I I r ': * ’I '. ” ' ' ' ” " ’ :J‘ '.’.' 'I DII it ,

i ' :! !I''\.l ' : I''.“ '''' ’ . I,' ''. ^ ''!'II.!'› I:II.I’ll It l'I'›!. ''".''If ' I' I !.'']I JI”''.".! . i
i ›

' '
The figures rePortedfor the year ended 2019 has or element of proceeds from the Divestment
business amounting to T840. 7 Cr, which forms part of the Profit Before Tax after
Extraordinary Items, thus inflating the overall figure to a substantial /eveJ.
 "" "“" """"“”“"" ""““""" """" """""""“" "" "“" """""““"" "" """" """" """")
Balance Sheet:
Equities and Liabilities (in Crores).

Equity Capital: Linde /ndio ltd has managed to maintain constant Equity of Y8S.28 Cr in the

' past 5 years. It is a positive sign to maintain a constant Equity throughout in comparison to
increasing the equity.

Increasing the stock holding would dilute the value.of tbe existing shareholding, which pinches
' value investors. Another aspect af increasing capital balding could be that the funds raised
•' could support the corporation to eKpaftd and grow.

15. Equity Whale

Capital in Rupees
mai *sé
million 3]De< 1020 310et10l9

author ixed:
86, 000,000 fiquily S har es of fis. l0 eat h 860.00 860.0D
ti i 0e‹ ?01s. 86,000,000 Equity Char es of Rs. i 0
each)
860.00 86D00
Issued:
85,286,209 Equity Shales o| Rs. 10 852.86 832.86
each
( it OOT 7019. BS.286.20’J £qui[v Shales cl Rs. i 0 each}

i Subscribed and paid vp :

;, 85,264,223 Equity Shares of Rs. 10 each '
, (3 \ 0e‹ zo s 8S,28a,273 Lquily Shares ol Rs. 7 0 ea‹li) 852.t4 852.84
BSl8d 852 84 '

' 15 | P a g e
2
 i 16. Other equity
, in Rupees million
As at

, Secufitim Pftmium 6,972.52 ,

' General Reserve
! Retaiiied Earnings I 2,547.17 !
' Lquily instruments \h‹ough other comprehensive income 0.29 0.19 '
20,515.55 i

A constant increase cou)d be observed in the sum of other Equity considering the data
from the past 5 years.

Comparative study a the other Equity for the past S learn

OTHER EQUITY
i 25CD

i 2Q0Q

, 15a

, 1OOO

soo

i 0
i 2020 2019
2018 2017 2016 i

' = Othe r Equ iLy (In Cr) ,

II
! !
,' liabilities: ,'

Non-Current 1iobfJ/t/es are the Jiob/J/t/es that have a settlement period beyond 1 year. ' '’'
roe reported figures for the Non-Current Jio6iJities stood at Y344.8 Cr against the
previous year’s Y293.5 Cr, which is a hike of 17.48% over the previous year’s
reported figures.

' 17 | P a g e
 8az-oiienlIiabIities
fiaarcialliaLilitizs
5D9f
19 6#.08 DD1%D
Otfglftd ldc llâ#llIttI°t (Ntt)
Obgf fI0fI-t0ffgfII lI6#ilitU t15.72 311.04 '

' This hike could be associated with an increase in the Lease 1io¿tiJir/es and Deferred Tax

' liabilities (Net), and other liabilities for the year ended 3020.

Current Liabilities are J/o6/J/ties that have a settlement period Jim/red to 1 year.
The reported figures for the quantum of Current J/ob/J/ries stood at R696.38 Cr as against the
figure reported for the year ended 2019, i.e., T784.46-Sphere is a decline of 12.65% in the

17 84. 72 '
i tease liabilihes JO.08

' {A) total oulsiandinq dues ol mi«o and smaIleril«yiises

23 3.3J

18 é09.87 1. 706.30

' Cuiren! lax habililes (Net) 21

,' Othef cMirent liabilites 22 1,439.68 1,542.93 '
T0tdI furfent lid6iliM 6,963.89 7,844.67 ,

a. Othes financial
liabilnes As at
' in Rupees million t. 204.9 ;i
Mon cunent tunent non Current
current

Current malui ities of long-teim hot ioni t refer noie i 7 i - 1.000. uu .

I nteresi a ccrued but not due on boirnwings - 7.40
ua‹lziroea dividends sss
crediiors for capital su0pI i es and services - a66.37
security depoxiis from customers - 106.91 104.53
Other employee liabilities - 10.79 - 32.88
 The repayment of current maturities of term borrowings amounting to fi:100 Cr brought
a significant impact in the overall figure of the other financial liabilities of the Linde India
Ltd. As a result, there was a decline of 64% observed in the other financial
liabilities of the
,'' company. ,''

Non-Current Assets:

Non-Current Assets are assets having a realisation period beyond 1 year.

The Non-Current Assets for the year ended 2020 stood at fi:220 Cr, while the figures
for the year ended 20y9 depicted '229.33 Cr.

' Non(v#la*eh
' ñupF+ly /tdlfl dlv t§ulQlFtld
kml›lolUcA tl

10
22,00804 22,93305 ,

There is a slight decline of 4% in the amount of Non-Current Assets owing to a

significant reduction in Property, Plant & Equipment, and Capital work-in-progress.

' 19 | P a g e
5. Property, plant and equipment and Capital worL- in- p‹ogiess
in Rupees million rreehdd 8uiIdingx Plant and furniture vehicles othe iotal capital rural tangible
land Equipment and tqvipmnt Tangible work in assets including
Fixtures Assets progress capital work in

I.Cost/0eetned cost as al 212.27 930.2s 25.864.27 47.36 20.OO T8188 27,257.07 S2s.3s 27,7ZR*6
1 jawaiy 202o
Additions 39.Z 3 1,Ot 1.26 0. T 9 29.91 19. T 5 T,O99.74 86T.8 8
I T t9) f108 1I) {1.7 7) (0.9 7) f3 5.271 f I d7,76)
( t020.69} (t0)069)
lhowa
GD*l/0eemedcmlaia 71227 9&B33 2&t6K42 A1#3 uB9* 1&&76 7B,2O9.55 170B8
3l0ecemher2020

depreciation and

Balances e at I january 226.94 6.497.30 25.40 13.11 t46.28 6,909.03

2020
Oep eciabon expense for - 44.5 B 1,657.80 5.2 5 10.0 4 2 Z.£17 T, 739.2 4

I I l8) 187.30) il 7 ?1 f0.9SI f32.3d I (4 71.d9)

270.34 8,06 7.30 28.93 22.20 4 36.0 4 8,5 24.78 8,524.78

net carrying value as at z Tz.77 ss7.ss 1s,zoo.12 1s.9o is.74 30.75 T 9,6B4.7 7 T 70.58
3T Oecembei 207g
Net £8ffyi0g value as at 1 217.27 70a.35' 19,566.97 71.96 6.89 J6.60 20,3d8.04 529.39
januaf y 2020

:' ..... ”- .. ... - :'

There is a reduction observed in the.figure Pertaining to the Capital work in progress. During
the year, there was an addition in thefigure of Capital Work in Progress by fi 66 Cr. Also, during
''
the same periad, the Capital Wark in Pragress af fi:102 Cr was capitalized, thus bringing a net
'
decJine of fi36 Cr in the figure pertaining to ttie Capital work in Progress.” 1.

Current assets are assets having a realisation period limited to 1 year.

The figures for the current assets for the year ended 2020 stood at 71024.5 Cr as against
' 4902.3 Cr for the year ended 2019. ''

Other LaIanres wilt Want

' Other ti antial z\sels
10 I,7 \.85 l,f5t.0/ I
10,2t5.G4 9,07J.07 I

There is an addition of 13.54% in the value of Current Assets owing to a significant

increase in Trade Receivables, and Cash and Cash Equivalents.

' 20 | P a g e
 Debt-Equity ratio: It returns the magnitude o( the extent to which a company is
/inoncing its business operations using Debt and Equity. Figure greater tion1
indicates thot a company is dependent more on Debt funds to finance its
business operations, thus increasing thefinancial burden on the company, which is
not a desirable cond/tion for longer period.
Whereas, a Debt-Equity ratio less than 1 indicates that company is dependent more
on the Equity funds to finance its business operations, which reduces the/inoncio/
burden of the company by way of limiting the finance costs.

The Debt-Equity ratio/or 1inde India ltd could be worked as under.'

-- 1041.27/ 2203.72
-- 0.47

Return on Equity: Return on Equity can determine the percentage return on the
equity invested. Higher the returns,.the better it makes the company worth
investing.

The Debt-Equity ratio for Linde /ndio Ltd could be worked as under.°

Aetrm on zqulty: net tncome/ hotel shorehoidePs Emit:y

-- (153.84/ Z2O3. '} n TOO

-- US.S2'K›

Current Ratio: Current Ratio determines the ability of the company to pay its
current liabilities which are due within one year. Figure greater than 1 indicates
that current assets are in excess over the current liabilities. Whereas/igured less
than 1 indicates that current liabilities are in excess over the current assets.

The Current ratio far Linde lndia cauld be worked as under.

Current Motto: Totol Current on/ Total Current Liabilities

--1024.56/ 696.38
--1.57
 13

11
3
 I"
"
I"”"""""""" """""" """ """“"""" """""""""""""""""""""”"
”
"
” Cash flows from financing
"
”
" activities
”
" Proceeds mom borrowings 6,863.29
”
" Repayment of borrowings (1,084.72) (17,652.99)
”
"
” Repayment ol Lease Liability (21.17)
"
” Finance cost paid (41.97) (981.82)
"
" Finance cost on Lease (6.46)
"
” payment
”
" Dividends paid to owners of (852.88) (127.93)
the
Company
Tax paid on dividend (z4.IO)

' Proceeds fi’om borrowing.'As company sale was on peak 2019 during covid period to '”
meet the demand requirements company has taken some loan from market. As '
' situation is stable and company earns enough profit to meet the demand now. so, it '
decided not to have any borrowings in 2020.

i' Repayment of boffowirtg.- Comp any.is reducing its liability by repaying his debt. In bath the i'
years company have made payin””ent ”against its debt, that's a good sign for company and
shareholders.

. ”.
T•inonce cost paid: It refers to the interest.and’other cost i’ncurred by ca’mpan.y on its
' borrowings. Timely payment offinance cost increases the company's reputation in market. '”'

Dividend paid to owners: As in previous year profit was higher than 2020. But dividend paid
is higher in F.Y 2020 — 21 mainly because campany had scape af develapment sa it's retained

I his earnings in previous year 2019-20 to meet its future requirements.

' 24 | P a g e
 11

3
5 3
5

1
 1

1
5

1
 1

1
 10

2
8

12

9
 1

2
 2

5
he Leornin iect

While making this annual report, our team came across various aspect of the business
and the phases business goes througn. We got an in-depth study of business and how it
deals with its finances. A busi ness not only has to make profit but also should serve the
society. Li nde India is multinational company having its ope ations also in India. With
an outbrea x of Covid- 19 pandemic, there was an oxygen crisis nurled upon Indians. Linde
India served India through immense devotion and catered to the Oxygen needs and
came out as a hero.

Through this p roject, we team member of lea Eni ng team 4 got to learn the practical
aspects ot accounting, and how companies use it to refect their true
fnancial position and communicate necessary information and value to its
stakeholder.

Thanking you!

Learning team 4
Gaurang Marwah JL21F5004
Prince Abhijeet JL21F50 \9
hil Raturi JL2 1FS001
Arpan Gupta J L21FS037
hashish Kesarwani JL21FS012
Pragya Goswami JL21FSO18
Project Report on Linde India Ltd (Learning Team-E-04)
ORIGINALITY REPORT

15
SIMILARITY
% 15%
INTERNET SOURCES
5%
PUBLICATIONS
%
STUDENT PAPERS
INDEX

PRIMARY SOURCES

6%
1 bsmedia.business-standard.com
Internet Source

2%
2 www.linde.in
Internet Source

1%
3 www.thermaxglobal.com
Internet Source

1%
4 www.forbes.com
Internet Source

1%
5 www.bseindia.com
Internet Source

1%
6 www.business-standard.com
Internet Source

<1 %
7 www.accountingtools.com
Internet Source

<1 %
8 www.mahindrafinance.com
Internet Source

<1 %
9 www.shreecement.com
Internet Source
 ir.auriniapharma.com
10 Internet Source
<1 %
www.infosys.com
<1 %
11
Internet Source

www.moneycontrol.com
<1 %
12
Internet Source

www.batsa.co.za
<1 %
13
Internet Source

markets.ft.com
<1 %
14
Internet Source

Exclude quotes On Exclude matches < 14 words

Exclude bibliography On