MIRA
INFORM REPORT
|
Report Date : |
18.10.2007 |
IDENTIFICATION DETAILS
|
Name : |
LARSEN AND TOUBRO LIMITED |
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Registered Office : |
L and T House, Ballard Estate, Mumbai – 400 001, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
07.02.1946 |
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Com. Reg. No.: |
11-4768 |
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CIN No.: [Company
Identification No.] |
L99999MH1946PLC004768 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUML04455D |
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PAN No.: [Permanent
Account No.] |
AAACL0140P |
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Legal Form : |
A public limited
liability company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers and
Sellers of earthmoving machinery including bulldozers, dumpers, scrappers,
loaders, shovels, vibratory compactors and drag lines. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 228677200 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established, diversified and highly respectable company. It is a
professionally managed company having fine track. Fundamentals of the company
are very strong. Trade relations are fair. Financial position is healthy and
comfortable. The company is progressing well. The company's payments are
always correct and as per commitments. The company can
be considered for any normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered
Office / Head Office : |
L & T House,
Ballard Estate, Mumbai – 400 001, |
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Tel. No.: |
91-22-22618181,
22618182, 22685656 / 67525656 |
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Fax No.: |
91-22-22620223, 22617480,
22685893, 67525858 / 67525893 |
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E-Mail : |
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Website : |
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Regional
Office : |
Tel. No. :
91-44-2232 6348 Fax No. :
91-44-2234 2317 E-mail : itcg@giasmd01.vsnl.net.in NCL Bandra
Premises, Plot No. C/6, Bandra – Kurla Complex, P. O. Box No.
8119, Bandra (East), Mumbai - 400 051, 2, 1/FL,
Laxminarayan Complex, 10/1, Also located at |
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Overseas Office : |
·
·
·
Sultanate
of ·
·
·
·
·
·
·
UAE |
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Factory : |
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Branches : |
·
L
& T Limited, Tel. No. 91-33-2282
8406/8413/8439 Also located at
Jaipur, Bhopal, Nagpur, Durgapur, Jamshedpur, Guwahati, Bhubaneswar,
Vishakhapatnam, Coimbatore, Kochi, Madurai and Surat |
DIRECTORS
|
Name : |
Mr. A. M. Naik |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr. Jagadish
Pandurang Nayak |
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Designation : |
Whole-time Director & President – Operations |
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Name : |
Mr. Y. M.
Deosthalee |
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Designation : |
Whole-time Director & Chief Financial Officer |
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Name : |
Mr. K.
Venkataramanan |
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Designation : |
Whole-time Director & President – Operations |
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Name : |
Mr. R. N. Mukhija |
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Designation : |
Whole-time Director & Senior Vice President – Operations |
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Name : |
Mr. K V Rangaswami |
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Designation : |
Whole-time Director & President |
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Name : |
Mr. S Rajgopal |
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Designation : |
Nominee (UTI) |
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Name : |
Mr. B. P.
Deshmukh |
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Designation : |
Nominee (GIC) |
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Name : |
Ms. Kranti Sinha |
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Designation : |
Nominee (LIC) |
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Name : |
Mr. S N Talwar |
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Designation : |
Nominee (LIC) |
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Name : |
Mr. M M Chitale |
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Designation : |
Director |
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Name : |
Mr. A B Saharya |
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Designation : |
Director |
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Name : |
Mr. Surinder Nath |
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Designation : |
Director |
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Name : |
Mr. U Sundararajan |
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Designation : |
Director |
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Name : |
Mr. V. K. Magapu |
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Designation : |
Executive Director |
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Name : |
Mr. A K Shukla |
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Designation : |
Director |
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Name : |
Mr. M V Kotwal |
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Designation : |
Whole time Director |
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Name : |
Mr. Thomas Mathew |
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Designation : |
Nominee |
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Name : |
Mr N Mohan |
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Designation : |
Nominee |
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Name : |
Mr. Subhodh Bhargava |
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Designation : |
Director |
KEY EXECUTIVES
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Name
: |
Mr. H Holck –
Larsen |
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Designation
: |
Chairman Emeritus |
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Age
: |
93 years |
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Qualification
: |
Master’s Degree
in Chemical Engineering |
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Date of
Joining : |
30th
December, 1989 |
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Name : |
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Designation : |
Company Secretary |
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Name
: |
Mr. A M Naik |
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Designation
: |
Managing Director
& Chief Executive Officer |
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Age
: |
60 years |
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Qualification
: |
B E Mechanical |
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Experience
: |
37 years |
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Date of
Joining : |
15th
March, 1965 |
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Previous
Employment : |
Engineer in
Charge-Fab Shop, Nestler Boiler Private Limited |
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Name
: |
Mr. Jagadish
Pandurang Nayak |
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Designation
: |
Senior Vice
President |
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Age
: |
58 years |
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Qualification
: |
B E Mechanical
and Post Graduate Diploma in Production Engineering |
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Experience
: |
37 years |
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Date of
Joining : |
1st
October, 1975 |
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Previous
Employment : |
Production
Manager in L&T Drilling Equipment Limited |
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Other
Directorship : |
Ř
LTM
Limited Ř
Narmada
Cement Company Limited Ř
L&T
Finance Limited Ř
L&T
Information Technology Limited Ř
L&T
Equipment Leasing Company Limited Ř
L&T
Cement Limited Ř
Tractor
Engineers Limited Ř
Audco
India Limited Ř
Ewac
Alloys Limited Ř
Gujarat
Leather Industries Limited Ř
L&T
–Komatsu Limited Ř
L&T
–John Deere Limited Ř
L&T
–Case Equipment Limited Ř
L&T
–Demag Plastics Machinery Private Limited |
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Name
: |
Mr. Yeshwant
Moreshwar Deosthalee |
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Designation
: |
Senior Vice
President |
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Age
: |
55 years |
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Qualification
: |
B.Com, LLB, ACA |
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Experience
: |
32 years |
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Date of
Joining : |
4th
February, 1974 |
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Previous
Employment : |
Junior Officer in
Crompton Greaves |
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Other
Directorship : |
Ř
Narmda
Cement Company Limited Ř
L&T
Finance Limited Ř
L&T
Information Technology Limited Ř
L&T
Infocity Limited Ř
L&T
Capital Company Limited Ř
L&T
Trade.Com Limited Ř
L&T
Cement Limited Ř
Bhilai
Power Supply Company Limited Ř
L&T
–Komatsu Limited Ř
L&T
–John Deere Limited Ř
Dhamra
Port Company Limited Ř
L&T
–Case Equipment Limited Ř
L&T
Communications Limited Ř
International
Seaports Pte Limited Ř
Larsen
& Toubro Ceylinco (Private) Limited |
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Name
: |
Mr. D V Kapur |
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Designation
: |
Director |
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Age
: |
73 years |
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Qualification
: |
B E Electrical |
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Other
Directorship : |
Ř
Reliance
Industries Limited Ř
Reliance
Power Limited Ř
Reliance
Salgaocar Power Company Limited Ř
Reliance
Utilities & Power Limited Ř
Jacobs
H&G Limited Ř
GKN
Driveshafts ( Ř
Tata
Chemicals Limited Ř
Honda
Seil Power Products Limited Ř
Zenith
Limited Ř
DLF
Power Limited Ř
DCM
Hyundai Limited Ř
Drivetech
Accessories Limited |
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Name |
Mr. S S Marathe |
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Designation |
Director |
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Age |
79 years |
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Qualification |
M A Economics |
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Other
Directorship |
Ř
Sandvik
Asia Limited Ř
Automotive
Axles Limited Ř
Bajaj
Tempo Limited Ř
Bharat
Forge Limited Ř
Deepak
Fertilisers & Chemicals Limited Ř
Finolex
Industries Limited Ř
Glaxo
India Limited Ř
Indian
Organic Chemicals Limited Ř
Kinetic
Motors Limited Ř
Kirloskar
Brothers Limited Ř
Kirloskar
Electric Limited Ř
Mandovi
Pellets Limited Ř
Tata
Assets Management Company Limited Ř
P P
Holding Private Limited Ř
Accord
Solutions Private Limited Ř
GDA
Trust Management Private Limited Ř
Pan
Gulf Group Limited |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Financial Institution |
89813157 |
31.71% |
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Foreign Institutional Investor |
51715308 |
18.26% |
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Shares Underlying GDRs |
6888179 |
2.43% |
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Mutual Funds |
15910274 |
5.61% |
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Bodies Corporate |
9295290 |
3.28% |
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Director and Relatives |
3364304 |
1.19% |
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L and T Employees Welfare Foundation |
37196136 |
13.13% |
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General Public |
69088100 |
24.39% |
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Total
|
283270748 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and
Sellers of earthmoving machinery including bulldozers, dumpers, scrappers,
loaders, shovels, vibratory compactors and drag lines. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Scrapper,
bulldozer, ripper and loader attachments |
Nos. |
250 |
250 |
-- |
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Road Rollers, hot
mix plants and other road construction and bridge construction machinery |
Nos. |
150 |
150 |
-- |
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Dairy machinery and
equipment – various items in aggregate |
Nos. |
35584 |
35584 |
-- |
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Chemical plant
and machinery including pharmaceutical, dyestuff, distillery, brewery and
solvent extraction plants, evaporators and crystalliser plants and pollution
control equipment in aggregate |
Tones |
6067 |
6567 |
5052 |
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Equipment for
food processing industry |
Tones |
65 |
65 |
-- |
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Complete cement
making machinery including rotary kilns and fluxo packers in aggregate |
Nos. |
2 |
2 |
-- |
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Sugarcane and beet
diffusion, beet preparation and beet pulp dehydration plants |
Nos. |
2 |
2 |
-- |
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Nuclear purpose
equipment, deaerators, ultra high pressure vessels including multiwall
vessels, high pressure heat exchangers and high pressure heaters in aggregate
|
Tonnes |
5000 |
3950 |
22 |
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Plant and
equipment and modules for nuclear power projects, heavy water projects,
nuclear and space research and allied projects including items for chemical,
oil and gas, etc., industries |
Tones |
10000 |
10000 |
21457 |
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Complete high
speed bottling plants |
Nos. |
6 |
6 |
-- |
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Pulp and paper
making plants |
Nos. |
2000 |
800 |
-- |
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Suspended
particles drying plants |
Nos. |
6 |
6 |
-- |
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Containers for
liquefied gases and chemicals |
Nos. |
Not Applicable |
1000 tones carrying capacity |
-- |
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Steel plant
valves |
Nos. |
40 |
40 |
-- |
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Ship auxiliaries
and components of mechanised sailing vessels |
Tones |
1000 |
1000 |
-- |
|
Rubber Processing
Machinery |
Nos. |
109 |
109 |
211 |
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Switchgear, all
types |
Nos. |
2678500 |
3174750 |
4403446 |
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Miscellaneous
electrical items |
Nos. |
1049100 |
1039100 |
-- |
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Petrol dispensing
and metering pumps |
Nos. |
4800 |
4800 |
7898 |
|
Press tools, jigs,
fixtures, dies for pressure, castings, moulds for plastic injection and
bakelite |
Rs./Nos. |
22.00 millions |
29.50 millions |
226 NOS. |
|
Glass bottles and
jars |
Nos. in Million |
Not Applicable |
[400] |
[107.9] |
|
Industrial
Machinery |
Tones |
12000 |
12000 |
11953 |
|
Industrial
Electronic Control Panels |
Nos. |
2500 |
2500 |
559 |
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Electronic
Devices |
Nos. |
30000 |
30000 |
6930 |
|
Electro surgical
unit and accessories |
Nos. |
Not Applicable |
1250 |
492 |
|
Ultrasound equipment
and accessories |
Nos. |
Not Applicable |
1000 |
658 |
|
Patient
monitoring system and accessories |
Nos. |
Not Applicable |
7000 |
6872 |
|
Relays |
Nos. |
Not Applicable |
60000 |
58341 |
|
Control &
relay panels |
Nos. |
Not Applicable |
100 |
-- |
|
Electricity
meters |
Nos. |
Not Applicable |
700000 |
660383 |
|
Transmission line
tower |
Tones |
51000 |
51000 |
54615 |
|
Steel structural
fabrication |
Tones |
12000 |
12000 |
36223 |
|
Steel re-rolling |
Tones |
40000 |
40000 |
14101 |
|
Ready mix concrete |
M3 |
4166600 |
4166600 |
2737523 |
GENERAL INFORMATION
|
No. of Employees : |
22,922 |
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Bankers : |
˜
State
Bank of ˜
Bank
of ˜
Central
Bank of and several other banks. |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Sharp & Tannan Chartered
Accountants |
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Joint Ventures: |
· International Metro Civil Contractors Joint Venture · The Dhamra Port Company Limited · L and T-Valdel Engineering Limited (Formerly, L and T-Valdel Engineering Private Limited) · Desbuild-L and T Joint Venture · Larsen and Toubro Limited-Shapoorji Pallonji and Company Limited 10 · Joint Venture (Les Palles Exhibition Centre) · L and T-AM Tapovan Joint Venture 12 (Tapovan Vishnugarh Hydro Project) |
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Associates: |
· Tractor Engineers Limited · L and T Finance Limited · L and T Capital Company Limited · Larsen and Toubro Infotech Limited · Larsen and Toubro Infotech GmbH · L and T Transportation Infrastructure Limited · HPL Cogeneration Limited · Narmada Infrastructure Construction Enterprise Limited · L and T Western India Tollbridge Limited · India Infrastructure Developers Limited · Larsen and Toubro LLC · Larsen and Toubro International FZE · L and T Infrastructure Development Projects Limited · L and T Infocity Limited · Hyderabad International Trade Expositions Limited · Andhra Pradesh Expositions Private Limited · L and T-ECC Constiuction (M) SON. BHD. · Bhilai Power Supply Company Limited ·
Larsen and Toubro ( · Raykal Aluminuri Company Private Limited ·
· L and T-Sargent and Lundy Limited ·
Larsen and Toubro · L and T Overseas Projects Nigeria Limited · L and T Infocity Infrastructure Limited · Wholly Owned Subsidiary · Wholly Owned Subsidiary · Subsidiary of L and T Finance Limited* · Wholly Owned Subsidiary · Wholly Owned Subsidiary of Larsen and Toubro Infotech Limited · Subsidiary of L and T Infrastructure Development Projects Limited · Subsidiary of L and T Infrastructure Development Projects Limited · Subsidiary of L and T Infrastructure Development Projects Limited · Wholly Owned Subsidiary · Wholly Owned Subsidiary · Subsidiary of L and T Urban Infrastructure Limited · Subsidiary of L and T Infocity Limited ·
Wholly Owned Subsidiary of · Expositions Limited · Subsidiary of Larsen and Toubro International FZE · Subsidiary of Larsen and Toubro International FZE ·
Subsidiary of · Subsidiary of Larsen and Toubro International FZE · Wholly Owned Subsidiary of Larsen and Toubro International FZE · Subsidiary of L and T Infocity Limited · Larsen and Toubro Electromech LLC · L and T Infocity Lanka Private Limited ·
L and T
( · International Seaports Pte. Limited ·
International Seaports ( · L and T Panipat Elevated Corridor Private Limited · L and T Tech Park Limited · L and T Krishnagiri Thopur Toll Road Limited · L and T Western Andhra Tollways Limited · L and T Vadodara Bharuch Tollway Limited · LandT Interstate Road Corridor Limited · Spectrum Inlotech Private Limited · L and T Urban Infrastructure Limited · Larsen and Toubro Information Technology · Canada Limited · L and T Infrastructure Finance Company Limited · L and T Power Projects Limited · International Seaport Dredging Limited · L and T Modular Fabrication Yard LLC ·
L and T
· Larsen and Toubro Readymix Concrete Industries ·
L and T
Electricals · Larsen and Toubro Kuwait Construction General · Contracting Company WLL ·
Larsen
and Toubro ( · Company Limited ·
Larsen
and Toubro ( · L and T Boilers Private Limited · L and T Uttaranchal Hydropower Limited · L and T Bangalore Airport Hotel Limited · L and T Turbo Generator Private Limited · L and T Vision Ventures Limited · L and T Phoenix Infoparks Private Limited · L and T South City Projects Limited · GDA Technologies Inc. · GDA Systems Private Limited · GDA Technologies Limited · CSJ Infrastructure Private Limited · Audco India Limited · L and T -Chiyoda Limited · L and T -Ramboll Consulting Engineers Limited ·
Voith Paper Technology ( · International Seaport (Haldia) Private Limited · II Vishakhapatnam Industrial Water Supply Company Limited · L and T -Ascendas Private Limited · Ewac Alloys Limited · L and T -Komatsu Limited · L and T -Case Equipment Private Limited · Kakinada Seaports Limited · Second Vivekananda Bridge Tollway Company Private Limited · GVK Jaipur Kishengarh Expressway Private Limited |
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Membership : |
Confederation of
Indian Industry |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1625000000 |
Equity shares |
Rs. 2/- each |
Rs. 3250.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
283270748 |
Equity shares |
Rs.2/- each |
Rs.566.500
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
566.500 |
274.800 |
259.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
56602.800 |
45777.000 |
33431.500 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
57169.300 |
46051.800 |
33691.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2454.000 |
4657.900 |
7937.200 |
|
|
2] Unsecured Loans |
18323.500 |
9877.800 |
10653.400 |
|
|
TOTAL BORROWING |
20777.500 |
14535.700 |
18590.600 |
|
|
DEFERRED TAX LIABILITIES |
2048.800 |
2097.900 |
0.000 |
|
|
Employee Stock options Outstanding |
515.000 |
349.900 |
|
|
|
|
|
|
|
|
|
TOTAL |
80510.600 |
63035.300 |
52281.900 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
17052.600 |
12927.000 |
10172.400 |
|
|
Capital work-in-progress |
4387.800 |
2585.200 |
658.200 |
|
|
|
|
|
|
|
|
Fixed asset held for sale |
0.000 |
1.000 |
|
|
|
INVESTMENT |
31044.400 |
19195.200 |
9609.300 |
|
|
DEFERREX TAX ASSETS |
1646.900 |
1325.100 |
0.000 |
|
|
INTANGIBLE ASSETS |
806.500 |
533.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
30011.400
|
22102.700 |
23108.400
|
|
|
Sundry Debtors |
55046.400
|
48141.600 |
39636.000
|
|
|
Cash & Bank Balances |
10944.300
|
5832.000 |
8280.200
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
22579.300
|
19105.600 |
18597.200
|
|
|
Interest accrued on Investment |
265.200
|
172.600 |
0.000
|
|
Total
Current Assets |
118846.600
|
95354.500 |
89621.800 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
81571.300
|
58889.000 |
50232.300
|
|
|
Provisions |
11801.300
|
10216.500 |
7946.400
|
|
Total
Current Liabilities |
93372.600
|
69105.500 |
58178.700 |
|
|
Net Current Assets |
25474.000
|
26249.000 |
31443.100 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
98.400 |
219.800 |
398.900 |
|
|
|
|
|
|
|
|
TOTAL |
80510.600 |
63035.300 |
52281.900 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
|
|
|
|
|
|
Sales Turnover |
175788.400 |
147348.000 |
141015.300 |
|
|
Other Income |
353.200 |
292.300 |
0.000 |
|
|
|
4269.700 |
4346.000 |
0.000 |
|
|
Total Income |
180411.300 |
151986.300 |
141015.300 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
20048.900 |
13136.500 |
12853.900 |
|
|
Provision for Taxation |
6018.700 |
3015.100 |
3015.400 |
|
|
Profit/(Loss) After Tax |
14030.200 |
10121.400 |
9838.500 |
|
|
|
|
|
|
|
|
Export Value |
0.000 |
0.000 |
26673.700 |
|
|
|
|
|
|
|
|
Import Value |
0.000 |
0.000 |
14813.700 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing construction and operating
expenses |
130782.400 |
115603.400 |
|
|
|
Staff expenses |
12582.100 |
8925.400 |
|
|
|
|
14991.500 |
12444.300 |
|
|
|
Interest and Brokerage |
339.300 |
750.700 |
126001.900 |
|
|
Depreciation, Obsolescence and impairment |
1615.700 |
1086.100 |
|
|
|
Amortization of intangible assets |
98.800 |
73.700 |
|
|
Total Expenditure |
160409.800 |
138883.600 |
126001.900 |
|
QUARTERLY RESULTS
|
Year |
30.06.2007 |
31.03.2007 |
|
Type
|
2nd Quarter |
1st Quarter |
|
Sales Turnover |
45052.100
|
62482.400
|
|
Other Income |
2114.700
|
2041400
|
|
Total Income |
47166.800
|
64523.800
|
|
Total Expenditure |
40821.600
|
54384.000
|
|
Operating Profit |
6345.200
|
10139.800
|
|
Interest |
157.200
|
63.300
|
|
Gross Profit |
6188.000
|
10076.500
|
|
Depreciation |
424.100
|
698.100
|
|
Tax |
2014.000
|
2601.500
|
|
Reported PAT |
3768.500
|
7007.700
|
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.34 |
0.42 |
0.52 |
|
Long Term Debt-Equity Ratio |
0.25 |
0.31 |
0.35 |
|
Current Ratio |
1.23 |
1.35 |
1.35 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
7.01 |
6.90 |
6.54 |
|
Inventory |
6.88 |
6.71 |
6.56 |
|
Debtors |
3.48 |
3.39 |
3.64 |
|
Interest Cover Ratio |
15.56 |
7.85 |
8.40 |
|
Operating Profit Margin(%) |
12.83 |
9.74 |
8.25 |
|
Profit Before Interest And Tax
Margin(%) |
11.94 |
9.02 |
7.60 |
|
Cash Profit Margin(%) |
8.72 |
6.35 |
5.82 |
|
Adjusted Net Profit Margin(%) |
7.82 |
5.64 |
5.16 |
|
Return On Capital Employed(%) |
30.92 |
24.16 |
22.12 |
|
Return On Net Worth(%) |
27.11 |
21.27 |
22.70 |
LOCAL AGENCY FURTHER INFORMATION
DIRECTOR REPORTS:
YEAR IN RETROSPECT
The gross sales
and other income for the financial year under review were Rs.183630.000
millions as against Rs.154290.000 millions for the previous financial year
registering an increase of 19%. The Profit before tax and extraordinary items
(after interest and depreciation charges) of Rs.20050.000 millions and the
Profit after tax (before extraordinary items) of Rs.14030.000 millions for the
financial year under review as against Rs.13140.000 millions and Rs.9420.000
millions respectively for the previous financial year, improved by 53% and 49%
respectively.
SUBSIDIARY
COMPANIES
During the year
under review, the Company subscribed to the following equity shares in various
Subsidiary Companies:
1] 2,50,00,000
equity shares of Rs.10 each in L and T Finance Limited at a premium of Rs.30
per share.
2] 24,30,00,000
equity shares of Rs.10 each in L and T Infrastructure Finance Company Limited
at par.
3] 4,19,90,585
equity shares of Rs.10 each in L and T Infrastructure Development Projects
Limited at a premium of Rs. 45.34 per share.
4] 67,69,518
equity shares of Rs.10 each (Re.1 paid-up) in L and T Infrastructure
Development Projects Limited.
5] 200 equity
shares of Dhs. 550,500 each in Larsen and Toubro International FZE for
Rs.1366.600 milloins (including outstanding application money of Rs.4.500
millions converted into equity during the year).
6] 50,000 equity
shares of Rs.10 each in L and T Power Projects Limited at par.
7] 8,600 equity
shares of Rs.10,000 each in International Seaport Dredging Limited at par
8] 22,50,000
equity shares of Rs.5 each (Rs.2.20 paid-up) in Larsen and Toubro Infotech
Limited at a premium of Rs.233.35 per share.
The Company was allotted
2,10,60,000 equity shares of Rs.10 each in India Infrastructure Developers
Limited at par pursuant to the scheme of amalgamation of L and T Power
Investments Private Limited with India Infrastructure Developers Limited.
The Company also
acquired 11,267 13% preference shares of Rs.10,000 each in International
Seaport Dredging Limited, at par during the year under review.
The Company
further invested Rs.166.000 millions in Larsen and Toubro (
Subsequently with
a view to consolidate its investments in overseas Companies, the Company sold
its stake in Larsen and Toubro (
The statement
pursuant to Section 212 of the Companies Act, 1956, containing details of
subsidiaries of the Company, forms part of the Annual Report. In view of the
exemption received from Central Government vide letter no. 47/167/2007-CL-lll
dated April 17, 2007, the Audited Statement of Accounts, the Reports of the
Board of Directors and Auditors of the Subsidiary companies are not annexed as
required under Section 212(8) of the Companies Act, 1956. Shareholders who wish
to have a copy of the full report and accounts of the subsidiaries will be
provided the same on receipt of a written request from them. These documents
will be put up on the Company's Website viz. www.larsentoubro.com and will also
be available for inspection by any shareholder at the Registered Office of the
Company on any working day during business hours.
Management
Discussion and Analysis
Review of the
Economy
The Indian
economy, characterized by strong macro-economic fundamentals, has drawn the
world's attention as one of the fastest growing economies with future promise.
The nation has continued on its high growth trajectory registering an
impressive growth of 9.4% during fiscal year 2006-2007. The average GDP growth
rate reported for the last 4 years is a record 8.6 percent. The industrial
sector remained buoyant, driven by robust performances from manufacturing,
services and construction sectors. Foreign trade has been growing at an average
rate of 27% during the past 3 years. Savings and investment rates are estimated
at a healthy 32.4% and 33.8% of GDP respectively. It is heartening to note that
foreign direct investment during the fiscal year 2006-2007 has doubled to USD
15 billion and is expected to scale up with further opening up of core and
infrastructure sectors.
Inflation has been
moderate and is expected to be contained at the present level of around 5%,
supported by a strong rupee, timely monetary policy measures of the RBI and a
buoyant economy. International credit rating agencies S and P and Moodys have
raised
The global economy
recorded a growth of 5.4% during the year 2006 with an improved
Infrastructure and
Capital Goods Industry
In 2006-2007,
Indian industry had a strong growth of over 11%, ably supported by a 12% growth
in manufacturing. Reflecting the buoyant capacity addition in the economy, the
capital goods industry grew by a healthy 17%.
A notable feature
of the current growth phase is the significant rise in the rate of capital
formation which has moved from 25% in 2002- 2003 to 32% of GDP in 2005-2006.
However, the rate of capital formation needs to further accelerate so as avoid
capacity constraints. The government has planned a series of measures to
encourage private sector participation and increase spending on infrastructure.
Efforts have been made to streamline procedures and introduce innovative
schemes to exploit the country's surging foreign exchange reserves.
In the core
sectors, power generation has grown by 7.3% during 2006-2007. In the ensuing
year, output would be higher with many mega projects in the offing under both
private and public sectors. Crude oil production and throughput by refineries
have increased over the previous year by 6% and 12% respectively. Capacities
are being ramped up in Railways, Roads, Ports, Airports and Urban
infrastructure to sustain the momentum of double digit growth in the industrial
sector.
The estimated
investment requirement for infrastructure has now been pegged at around USD 450
billion against the earlier estimate of USD 320 billion during the 11th five
year plan. This is both a challenge and an opportunity for the government and
the private sector. Sustained efforts are required to improve every segment of
infrastructure to sustain the growth momentum of the economy.
Business
Performance
Buoyed by economic
growth, within
Strategic
Initiatives
The Company and
the Group have consolidated growth oriented initiatives under the "LAKSHYA"
program during the year. Creation of new facilities and expansion in
existing manufacturing facilities have been initiated across all business
divisions. Divisions have undertaken many operational excellence programs so as
to improve margins and become more competitive through product positioning in
international markets. In order to scale up the business in hydrocarbon mid and
down stream sector, a separate vertical has been formed, which combines the
entire gamut of engineering, procurement, construction and project management
services. Creation of similar business verticals in other business lines of the
Company is underway. Initiatives for talent attraction and retention have also
been accelerated during the year to capitalize on emerging business
opportunities.
The Company has
successfully completed the amalgamation of residual electrical business taken
over from Datar Switchgear Limited, thereby adding new product portfolio in the
medium tension switchgears. With a view to building a large capital base in the
infrastructure subsidiaries, the Company infused fresh capital during the year.
Power has emerged a thrust area for Subject which has built expertise in power
plant construction and erection. In order to establish a strong presence in the
international and local power space, the Company has entered into a joint
venture with Mitsubishi Heavy Industries Limited for manufacture of super
critical boilers. In order to reap the benefits of manufacturing and easy
access to new markets, the Company has set up facilities for manufacture of
industrial valves and rubber processing machinery in
All the above strategic initiatives will
ensure that the Company is able to harness emerging growth potential.
Considering the impressive track record of the Company during the past few
years, the confidence level of the businesses in achieving the challenging"LAKSHYA"
targets has soared.
In this backdrop,
the management is pleased to present the analysis of Division-wise performance
for the year 2006-2007 and its outlook for the future. This outlook is based on
the present assessment of the current business environment. It may vary
depending on the changes in the underlying economic environment, both in
The Company's
businesses have been classified in to 6 Operating Divisions:
(i) Engineering,
Construction and Contracts,
(ii) Engineering
and Construction - (Projects),
(iii) Heavy
Engineering,
(iv) Electrical
and Electronics,
(v) Machinery and Industrial
Products and
Year 2006-2007 at
a Glance
• New Order inflow
at Rs. 306020.000 millions in Current Year as against Rs. 223700.000 millions
in Previous Year (USD 7.55 Billion and USD 5.52 Billion respectively) -
37% growth year-on-year.
• Order Book as at
March 31, 2007 Rs. 368820.000 millions as against Rs. 248570.000 millions as at
March 31, 2006 (USD 9.10 Billion and USD 6.13 Billion respectively) -'48%
growth year-on-year.
• Gross Sales at Rs.
179010.000 millions in Current Year as against Rs. 149660.000 millions in Previous
Year (USD 4.42 Billion and USD 3.69 Billion respectively) - 20% growth
over previous year
• Segment wise
composition of revenues: Engineering and Construction Segment - 73.5% in Current
Year as against 75.8% in Previous Year Electrical and Electronics
Segment - 11.3% in Current Year as against 70.2% in Previous Year
Machinery and Industrial Products Segment - 70% in Current Year as
against 9.6% in Previous Year
Others Segment -
5.2% in Current Year as against 4.4% in Previous Year
• PBDIT excluding
extra-ordinary items at Rs. 22090.000 millions in Current Year as against Rs.
15030.000 millions in Previous year (USD 545 Mio and USD 371 Mio
respectively) - up by 47%
• PAT including
extra-ordinary items at Rs. 14030.000 millions in Current Year as against Rs.
10120.000 millions in PY (USD 346 Mio and USD 250 Mio respectively) - up by
39%
• Gross Debt Equity
ratio of 0.36 : 1 as against 0.32 : 1 in Previous Year
L and T Group
• Gross Sales at
Rs. 207000.000 millions in Current Year as against Rs. 167470.000 millions in Previous
Year (USD 5.11 Billion and USD 4.13 Billion respectively) - 24% growth
over Previous Year
• PAT including
extra-ordinary items at Rs. 22400.000 millions in Current Year as against Rs.
13170.000 millions in Previous Year (USD 553 Mio and USD 325 Mio
respectively) - up by 70%
Financial analysis
and review 2006-2007 L and T Independent Financial Performance review
Encouraging financials
The Company has
yet again produced an impressive financial performance in all its parameters,
namely, revenue growth, operating margins and resource utilization. It is
heartening to note that all the business segments have withstood the
competition from established international players and succeeded in generating
an improved performance. Almost all the businesses have achieved a comfortable
Return on Capital Employed (ROCE) and have reported positive Economic Value
Added (EVA). This was achieved both by improving profitability as well as
containing capital employe in the business. This is reflected in the Company's
ROCE, which increased significantly from 18.7% to 20.4%. The Return on Net
Worth (RONW) smartly increased from 25.7% to 27.2%. Economic Value Added at the
Company level at Rs. 5700.000 millions
is higher by 56% over the previous year.
Order Inflow and
Sales
The Company
secured fresh orders worth Rs. 306020.000 millions during the year, registering
a growth of 37% over the previous year. Orders secured in infrastructure and hydro
carbon sectors have grown in size and complexity, some of them exceeding Rs.
10000.000 millions. The mega scale of projects called for detailed planning,
engineering and execution skills. Despite stiff competition from some of the
international and national players, the quality of orders bagged during the
year is promising. The growth in orders has been sustained both in product and
equipment businesses, being in the range of 31% to 34%.
Sales and service
income for the year at Rs.179010.000 millions increased by 20% as compared to
the previous year at Rs. 149660.000 millions. New orders have generated healthy
margins, largely due to judicious selection of project orders, adherence to a
risk management process, improved product positioning and maintenance of high
standards of quality and delivery commitments. in the business. This is
reflected in the Company's ROCE, which increased significantly from 18.7% to
20.4%. The Return on Net Worth (RONW) smartly increased from 25.7% to 27.2%.
Economic Value Added at the Company level at Rs. 5700.000 millions is higher by 56% over the previous year.
Order Inflow and
Sales
The Company
secured fresh orders worth Rs. 306020.000 millions during the year, registering
a growth of 37% over the previous year. Orders secured in infrastructure and
hydro carbon sectors have grown in size and complexity, some of them exceeding
Rs. 10000.000 millions. The mega scale of projects called for detailed
planning, engineering and execution skills. Despite stiff competition from some
of the international and national players, the quality of orders bagged during
the year is promising. The growth in orders has been sustained both in product
and equipment businesses, being in the range of 31% to 34%.
Sales and service
income for the year at Rs.179010.000 millions
increased by 20% as compared to the previous year at Rs. 149660.000
millions. New orders have generated healthy margins, largely due to judicious
selection of project orders, adherence to a risk management process, improved
product positioning and maintenance of high standards of quality and delivery
commitments.
FIXED ASSETS:-
Land – Freehold
· Shops
· Buildings
· Plant and machinery
· Furniture and fixtures
· Vehicles
· Aircraft
· Plant and machinery
PRESS RELEASE:
Mumbai, October 11, 2007
Subject’s leading engineering, construction and technology company, has
entered into a share sale agreement with Malaysia-based Tamco Corporate
Holdings Bhd towards the acquisition of the latter’s de-merged switchgear business,
Tamco Switchgear Malaysia Sdn Bhd.
The two parties propose to enter into three other share sale agreements
for acquisition of three of Tamco’s switchgear manufacturing subsidiaries -
Tamco Shanghai Switchgear Co Limited in China, Tamco Electrical Industries
Australia Pty Ltd in
The deal was signed today in
Speaking on the buyout, Mr. Mukhija said, "This is a significant
move forward in L and T’s plans of reinforcing its position as a major player
in switchgear business. Tamco has a strong presence in the medium voltage (MV)
category. With this acquisition, L and T will be able to offer a comprehensive
range of MV switchgear in
Tamco is a major player in MV Switchgear in
With this acquisition, The company will have access to the fast growing
MV Switchgear markets like the
The domestic MV Switchgear market is currently growing at 15% per annum.
This growth rate is expected to increase further in the next five years on
account of initiatives like the Electricity Bill of 2003, and power sector
reforms. The national focus on the fast tracked incremental power generation
programme will provide a strong impetus to spur the demand for MV switchgear
leading to an increase in the growth rate of these products.
Besides natural growth in
The company is one of the leading global manufacturers of low voltage
switchgear, with the scale, sophistication and product range that meet
international standards. It has a track record that includes the supply of
intelligent switchboards, systems and service to major industrial projects. In
addition to its leadership position in the Indian market, The company has a
growing presence in overseas markets. It has four manufacturing facilities for
switchgear operations in
Subject is a USD 5 billion technology, engineering and construction
company, with global operations. It is one of the largest and most respected
companies in
A strong, customer-focussed approach and the constant quest for
top-class quality have enabled The company to attain and sustain leadership in
its major lines of business over seven decades.
TAMCO
Tamco Corporate Holdings Bhd is part of the
Tamco is a leading producer of MV switchgear products in
Mumbai, October 10, 2007
The company
Chemanol (earlier known as Saudi Formaldehyde Chemical Company Limited)
is a private sector enterprise, operating grass roots, second-generation
petrochemical complex located in the Al Jubail Industrial City, Saudi Arabia,
manufacturing formaldehyde and its derivative products.
Davy Process Technology, UK (DPT), has provided the process technology
for the 50,000 MTPA Methyl Amines and 60,000 MTPA Dimethyl Formamide plants
incorporating advance design elements and elaborate environment control
measures.
The company’s scope of work comprises residual process design, detailed
engineering, project management and procurement of the equipment and materials
for the plant. The company will also provide the technical services for the
erection and commissioning of the plant.
The company is already executing 700 tonnes per day (TPD) of methanol
and 100 TPD of carbon monoxide plant for Chemanol as part of its backward
integration project. Both Methanol and Co are raw materials for the Methyl
Amines and DMF plant. The company’s proven EPC capabilities will ensure timely
completion and successful commissioning of this integrated complex meeting
international standards.
Mumbai, Oct 09, 2007
Indian Oil Corporation Limited (IOCL) has awarded to company leading
engineering, technology and construction organisation, a large project order
comprising two trains of 300 tonnes per day Sulphur Recovery Units (EPCC- 5)
along with associated facilities such as Amine Regeneration Unit, Sour Water
Stripper and Tail Gas Treatment Unit for enhanced Sulphur recovery up to 99.9%.
This would enable IOCL in the production of low
IOCL, which operates one of its biggest refineries located at Koyali on
the outskirts of Vadodara city in the state of
This prestigious EPC order comprises residual process design, detailed
engineering, procurement, supply, transportation, storage, fabrication,
inspection, construction, installation, testing, mechanical completion,
pre-commissioning, commissioning and performance guarantee test runs for the project.
The order was bagged by The company against keen competition on the
strength of its track record in meeting refinery project quality requirements
and conforming to fast track schedules.
OTHER INFORMATION:
Plant Locations:
Manufacturing facilities of the Company and its group are located at
Ahmednagar, Bangalore, Chennai, China, Coimbatore, Faridabad, Hazira,
Kansbahal, Mumbai, Mysore, Oman, Pithampur, Pondicherry, Pune, Ranoli (Baroda)
and Visakhapatnam.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.79 |
|
|
1 |
Rs.81.41 |
|
Euro |
1 |
Rs.56.87 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
10 |
|
PAID-UP CAPITAL |
1~10 |
10 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
10 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
10 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
86 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|