SR. No.

Particulars

Introduction of L&T Info Tech

Balance sheet of the L&T

Profit and loss account of L&T

Ratio Analysis

Interpretations on the basis of ratio

analysis

Balance sheet - Larsen & Toubro Ltd.

(RS . In CR.)

Particulars

Mar'11

Mar'10

Mar'09

Mar'08

Mar'07

Liabilities

12 Months

12 Months

12 Months

12 Months

12 Months

Share Capital

490.08

145.53

117.14

58.47

56.65

Reserves & Surplus

21,334.05

18,142.82

12,317.96

9,470.71

5,683.85

Net Worth

21,846.26

18,311.64

12,459.69

9,555.08

5,768.43

Secured Loans

1,063.04

955.73

1,102.38

308.53

245.40

Unsecured Loans

6,098.07

5,845.10

5,453.65

3,275.46

1,832.35

TOTAL LIABILITIES

29,007.37

25,112.47

19,015.72

13,139.07

7,846.18

Assets
Gross Block

8,897.02

7,235.78

5,575.00

4,188.91

2,876.30

(-) Acc. Depreciation

2,220.82

1,727.68

1,421.39

1,242.47

1,122.83

Net Block

6,654.07

5,484.81

4,129.02

2,920.54

1,725.54

Capital Work in
Progress.

785.00

857.66

1,040.99

699.00

471.22

Investments.

14,684.82

13,705.35

8,263.72

6,922.26

3,104.44

Inventories

1,577.15

1,415.37

5,805.05

4,305.91

3,001.14

Sundry Debtors

12,427.61

11,163.70

10,055.52

7,365.01

5,504.64

Cash And Bank

1,730.35

1,431.87

775.29

964.46

1,094.43

Loans And Advances

19,499.23

12,662.55

7,198.85

3,861.10

2,449.14

Total Current
Assets

35,234.34

26,673.49

23,834.71

16,496.48

12,049.35

Current Liabilities

26,139.56

19,443.77

15,211.04

11,892.75

8,362.01

Provisions

2,233.43

2,188.36

3,066.53

2,035.42

1,180.13

Total Current
Liabilities

28,372.99

21,632.13

18,277.57

13,928.17

9,542.14

NET CURRENT
ASSETS

6,861.35

5,041.36

5,557.14

2,568.31

2,507.21

Misc. Expenses

0.00

0.00

0.26

3.06

9.84

TOTAL ASSETS
(A+B+C+D+E)

29,007.37

25,112.47

19,015.72

13,139.07

7,846.18

INTERPRETATION ON THE BASIS OF RATIO ANALYSIS

Interpretation of the ratios calculated from financial statements is a tool used to draw comparative
and significant conclusions which can be helpful in decision making.

Interpretation of different ratios of L&T info tech signifies various facts about company.

From the Liquidity ratios of the company it seems that company is not having a lot many current
assets.

Companys Current and Quick ratio are below the standard.

But its absolute quick ratio meets the standard in all years.

= CURRENT ASSETS
CURRENT LIABILITY

YEAR

RATIO

2007

1.16

2008

1.09

2009

1.22

2010

1.19

2011

1.20

1.25
1.2

CURRENT
RATIO

1.15
1.1
1.05
1
200720082009 2010 2011

= CURRENT ASSETS INVENTORY

CURRENT LIABILITY
YEAR

RATIO IN (%)

2007

0.93

2008

0.86

2009

0.97

0.8

2010

1.15

2011

1.18

1.2

QUICK RATIO

0.6
0.4
0.2

0
2007 2008 2009 2010

2011

= COST OF GOODS SOLD

AVERAGE INVENTORY

30

YEAR

RATIO

25

2007

6.03

20

2008

6.00

2009

6.01

2010

28.74

2011

29.73

15
10
5
0

INVENTORY
RATIO

= _DEBT__
EQUITY
0.6

YEAR

RATIO

0.5

2007

0.36

0.4

2008

0.38

0.3

2009

0.53

0.2

2010

0.37

0.1

2011

0.33

0
2007

2008

2009

2010

2011

= _____EBIT__________
INTEREST EXPENSES
30
YEAR

INTEREST
COVERAGE
RATIO

2007

25.07

2008

28.57

2009

13.09

2010

11.17

2011

10.01

25
20
INTEREST
COVERAGE
RATIO

15
10
5

0
2007 2008 2009 2010

2011

= GROSS PROFIT
NET SALES

13.5

YEAR

GROSS PROFIT
(%)

2007
2008
2009
2010
2011

13.24
12.19

12.5

11.39
12.74
12.14

12

13

GROSS
PROFIT (%)

11.5
11

10.5
10
2007 2008 2009 2010 2011

= __NET PROFIT_
NET SALES

NET PROFIT RATIO

14

YEAR

NET PROFIT
RATIO

12

2007

7.72

10

2008

8.54

2009

10.09

2010

11.56

2011

8.20

2
0
2007 2008 2009 2010

2011

So, Overall analysis of the financial statements of L&T using ratio

analysis indicates that performance of the company is good and is
Improving.

Its liquidity, solvency, efficiency and profitability all are improving

relatively.