The document discusses the working principles and construction of a transformer. It explains that a transformer works on the principle of mutual induction, where a changing magnetic field in one coil induces an electric current in the other coil. It describes the basic components of a transformer including the primary and secondary coils wound around an iron core. It also discusses how transformers can be used to step up or step down voltages and explains the ratio between input and output voltages depends on the number of turns in each coil. Losses in a transformer like copper and iron losses are also summarized.