Project Report_L&T - Corporate Financial Reporting...

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Corporate Financial Reporting & Analysis – FI 101 Project Report Analysis of Financial Statements of L&T (NCC & Gammon India - Competitors) Submitted By: Team - 8 M. Praveen Kumar 177/50 Maharatta Sainath 180/50 Manchala Bharadwaj 184/50 P. Jayant 228/50 Partha Pratim Paramanik 234/50
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1. Name of the Company : Larsen &Toubro (L&T India) 2. Name of the Chairman/MD/CEO : Mr. A. M. Naik 3. Listed in : Bombay Stock Exchange (BSE) & National Stock Exchange (NSE) 4. Brief company background: Two Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro founded Larsen & Toubro in Mumbai in 1938. L & T started as a representative of Danish manufacturers of dairy equipment for a modest retainer. However, at the time of Second World War in 1939, due to restriction on imports, the partners started a small workshop to undertake jobs and provide service facilities. In 1940, Germany invaded Denmark. That stopped supplies of Danish products. This situation made them to think differently and innovate. They started manufacturing dairy equipment indigenously and it was a seen as success. L&T gained its fame and was seen as reliable. Due to the war, L&T got ample opportunities to restructure themselves and this led to the formation of a new company, Hilda Ltd., to handle these operations. L&T also started to repair and fabrication shops signalling the expansion of the company. L&T took the advantage of German Engineers’ imprisonment in India. These engineers who were put up a soda ash plant for the Tatas, gave them the required opportunity to enter the field of installation. L&T Engineering Construction & Contracts (ECC) was integrated by the partners in 1944.They were focused on construction projects and planned to build a portfolio of foreign collaborations. By 1945, the company represented British manufacturers of equipment used to manufacture products like hydrogenated, biscuits, soaps, oils and glass. Then in 1945, L&T signed an agreement with Caterpillar Tractor Company of USA, for marketing earth moving equipment. After the war, huge war-surplus weapons, equipment were available at high prices, but the capital required were out of reach of the partners. This resulted in additional equity capital. Larsen & Toubro Private Limited was then born on 7 February 1946. After Independence, the demand for technology and expertise increased. This gave L&T the opportunity to unite and expand. They had set up offices in Kolkata, Chennai and New Delhi. In 1948, 55 acres of undeveloped marsh and jungle was acquired in Mumbai. Today, Powai stands as manufacturing landmark of L&T. 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. The Company worked with Amul Dairy at Anand and Blast Furnaces at Rourkela Steel Plant. These were seen as huge success. After that L&T emerged as the largest contractor in this sector in India.
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