28, May 2025

An Analysis of Accounts Payable and Third–party Balance Confirmation with Reference to Larsen and Toubro Ltd.

VOLUME-11; ISSUE-5; MAY-2025

Author(s): ANNAPOORANI KATHIRESAN , A. JOSPHINE SELSIA

Authors Affiliations:

[1]Student, Master of Business Administration, Prince Shri Venkateshwara Padmavathy Engineering College, Chennai, Tamil Nadu, India.

[2] Assistant professor, Department of Management Studies, Prince Shri Venkateshwara Padmavathy Engineering College, Chennai, Tamil Nadu, India.

DOIs:10.2015/IJIRMF/202505032     |     Paper ID: IJIRMF202505032


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ABSTRACT:  The study focuses on analysing accounts payable and the third-party balance confirmation process within L&T. Accounts payable is the short-term liability component of organizations, involving payments due to vendors and suppliers.  This study examines how efficiently L&T can manage its payables effectively and efficiently, and the part of third-party balance confirmation is icing the delicacy and transparency of financial reporting, which eases the process of auditing.  The study was undertaken over five financial years, ranging from 2019-20 to 2023-24, to examine how L&T records, verifies, and reconciles vendors’ outstanding to ensure internal control and financial integrity of the organization. The primary aim of the study is to analyse the accounts payable and third-party balance confirmation. The study utilizes various financial metrics to assess the company’s financial health, efficiency, and vendor management. The findings suggest that L&T follows a robust and transparent procedure in dealing with vendor accounts and balance confirmation, helping maintain accurate records and building supplier confidence. This paper provides a detailed understanding of how L&T ensures financial accuracy, fosters vendor trust, and upholds corporate governance through accounts payable and confirmation practices. It offers insights for businesses seeking to optimize financial control mechanisms, mitigate risk, and enhance the overall efficiency of their financial ecosystem.
Accounts payable, vendor balance, third-party balance confirmation, L&T, accuracy, transparency, reconcile, integrity, internal control, robust, auditing.

ANNAPOORANI KATHIRESAN , A. JOSPHINE SELSIA (2025); An Analysis of Accounts Payable and Third–party Balance Confirmation with Reference to Larsen and Toubro Ltd., International Journal for Innovative Research in Multidisciplinary Field, ISSN(O): 2455-0620, Vol-11, Issue-5, Pp.198-202.          Available on –   https://www.ijirmf.com/

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