A A

SUMMER TRAINING REPORT SUMMER TRAINING REPORT

TO STUDY IMPACT OF FINANCIAL LEVERAGE OF TO STUDY IMPACT OF FINANCIAL LEVERAGE OF
JSL ON THE BASIS OF DEBT EQUITY STRUCTURE JSL ON THE BASIS OF DEBT EQUITY STRUCTURE
ON SHAREHOLDER ON SHAREHOLDER S WORTH & PROFFITABILITY S WORTH & PROFFITABILITY
(200!0"# (200!0"#
OF
JSL LTD, HISAR
`In the Partial Fulfillment for the Degree of
MBA (Master of Business Administration)
(SESSION 2008-10)-MBA-3
rd
Semester
SUBMITTED TO:
KURUKSHETRA UNIVERSITY,KURUKSHETRA

Tilak Raj Chadha Institute of Management & Technology (TIMT)
(Affiliated to Kurukshetra Uniersity! Kurukshetra & A""roed #y AICT$)
M%&%'% College $ducational Com"le(! )amuna 'agar*+,-..+ (/aryana)
0h% .+1,2 3 22.+.,! 2,4++.% 5a(6 78+*+1,2 3 22.+.,
$*mail6 Info@timt.a.in! 9e# :ite6 """.time.a.in

S#$mitted $%&
;yoti :aini <=> :h%?al@an :ingh :aini
Uni% Registration 'o%.,*:</*,,A
Roll 'o%++-.=.B
:ession6 2..B*+.
'nder S#(er)ision of&
***********
Fa#+t%
,E-.A/A0ION
I 1%oti Saini! Roll 'o%++-.=.B! M?A (,
rd
:em) of the 0i+a2 /a3 -4ad4a Instit#te of
Mana5ement and 0e4no+o5%! 6am#nana5ar here#y declare that the summer
Training Re"ort entitled7TO STUDY IMPAT OF FI!A!IA" "#$#%A&# OF TO STUDY IMPAT OF FI!A!IA" "#$#%A&# OF
'S" O! T(# BASIS OF D#BT #)UITY ST%UTU%# O! S(A%#(O"D#% 'S" O! T(# BASIS OF D#BT #)UITY ST%UTU%# O! S(A%#(O"D#%* *S S
+O%T( , P%OFFITABI"ITY +O%T( , P%OFFITABI"ITY- is an original @ork and the same has not #een
su#mitted to any other Institute for the a@ard of any other degree%
A seminar "resentation of the Training Re"ort @as made on CCCCCCCCCCCCCC and the
suggestions as a""roed #y the faculty @ere duly incor"orated%

(1%oti Saini)
A.!O+"#D&#M#!T A.!O+"#D&#M#!T
7All /rogress is 0orn of in1uir23 Dou0t is often 0etter then 4onfiden4e for it leads to
in1uir2 , in1uir2 leads to in5ention3-
Fulfillment of an2 /ro6e4t 7or8 is the 4onse1uen4e of a num0er of /eo/le3 (en4e
the o//ortunit2 4omes to than8full2 a48no7ledge the sin4ere 4oordination , the
re1uired assistan4e of res/e4ted 9&uides- 7ho s/ared their /re4ious time for
resear4h 7or83
This /ro6e4t re/ort has 0een made /ossi0le through the dire4t , indire4t 4o:
o/eration of 5arious /eo/le 7hom I 7ish to e;/ress m2 than8s and gratitude*s3
I am sin4erel2 than8ful to Dr3 $i8as Dar2al< Dire4tor< Tila8 %a6 hadha Institute of
Management and Te4hnolog2< Yamunanagar for gi5ing me an o//ortunit2 to 7or8
7ith 'indal Stainless Steel "td3 and /ro5ided me the guidan4e and su//ort in the
4om/letion of the /ro6e4t3
I 7ould also li8e to e;/ress m2 than8s to Ms3 Dim/le Yada5< "e4turer (MBA) <
TIMT< Yamunanagar for his 8ind 4o:o/eration , 5alua0le guidan4e throughout the
training3
I 7ould also li8e to than8 the other Fa4ult2 mem0ers of the institute and m2 friends
for their ad5i4e and guidan4e along 8indled ins/iration in the fa4e of diffi4ulties
en4ountered in the 4ourse of this 7or8 and to 4reate this /ro6e4t re/ort3
M2 e;/erien4e 7ith 'S" is 1uite unforgetta0le3
I am es/e4iall2 grateful to Mr3&o/al Baser(A&M)< the 4ommer4ial staff mem0ers ,
all de/t3 of 'S" 7ho /ro5ided me 7ith /re4ious ideas 7hi4h assisted me in the
/re/aration of this Pro6e4t %e/ort3
I 7ould li8e to than8 m2 fa4ult2 mem0ers < m2 famil2 , m2 friends 7hose
moti5ation < affe4tion , hel/ 7hi4h 4an*t 0e e;/ressed in 7ords3+ith 0lessings of
m2 /arents and 7ho are a sour4e of strength and ins/iration for me in this
endea5or3
('2oti Saini)
P%#FA# P%#FA# 6
M?A is a ste""ing*stone to the management carrier and to deelo" good managers! it
is necessary that the theoretical kno@ledge must #e su""lemented @ith the e("osure
to the real enironment%
Theoretical kno@ledge just "roides the #ase and itDs not sufficient to "roduce a good
manager thatDs @hy the "ractical kno@ledge is needed%
Therefore the research "roduct is an essential reEuirement for the student of M?A%
This research "roject not only hel"s the students to utiliFe their skill "ro"erly and
learn field realities #ut also "roide a chance to the organiFation to find out talent
among the #idding managers in the ery #eginning%
In accordance @ith the reEuirement of M?A course IDe done my final "roject on the
to"ic GCa"ital :tructure of ;:& &imited in s"ecial reference of 0rofita#ility & Return
on Ca"ital $m"loyed%H
#=#UTI$# SUMMA%Y
The "rime o#jectie of my "roject @as to study a#out the Ca"ital :tructure in
the #usiness unit%
>n the a/ital Stru4ture front! my ultimate aim @as to study @hich are the main
sources of ca"ital the unit @as utiliFing% 9hat is the ratio #et@een different sources &
the o"timality% 9hich kind of changes has #een #rought in last fie years & their
im"act "rofita#ility & other as"ects%
I got the "riilege to learn ho@ effectiely a unit can manage their Ca"ital
reEuirements @ith the funding "roided to them on different #asis% 5or this
"ur"ose! a fund "osition statement had to #e "re"ared on a Euarterly #asis in
order to do the estimation%
9ith the hel" of the findings a roadma" for the success of the Unit @as
constructed @hich included certain re4ommendations from my side @hich @ere
readily acce"ted and a""reciated #y the Manager of the 5inance <e"artment in
the Unit%
O!T#!TS> O!T#!TS>
Sr. No 0o(i 8a5e No.
1. ,e+aration
2. -ertifiate from t4e or5ani9ation
3. -ertifiate from Instit#te S#(er)isor
:. E;e#ti)e S#mmar%
<. Introd#tion
a. 8rofi+e of t4e -om(an%
$. 8rofi+e of t4e St#d%
=. O$3eti)es of st#d%
>. 04eortia+ frame"or2
8. .iterat#re /e)ie"
?. /esear4 Met4odo+o5%
(a)/esear4 ,esi5n
($)Sam(+in5 and Sam(+in5 ,esi5n
()@%(ot4esis 0estin5
(d),ata o++etion
(e)Ana+%tia+ and Statisa+ 0oo+s
(f)/atio Ana+%sis
10. Aor2in5 -a(ita+ Mana5ement
11. .imitations of t4e St#d%
12. St#dies of ot4er ,e(artments
13. Findin5s B /eommendations
1:. -on+#sion
1<. Bi$+io5ra(4%
1=. Anne;#re
OMPA!Y P%OFI"#
?@
>
'S" 'S" "imited "imited
8.O. Bo; No. =! 8.O. Bo; No. =!
O.8.1inda+ Mar5! O.8.1inda+ Mar5!
@isar @isar* *12<00<. (@ar%ana) 12<00<. (@ar%ana)
AA de4ade of li0eraliBation has redefined 0usiness /arameters3 'indal
Stainless< the flagshi/ 4om/an2 of the 'indal organiBation has harnessed
these 7inds of 4hange 02 offering 7orld 4lass /rodu4ts and ser5i4es
not onl2 in India 0ut around the 7orld3A
'I!DA" STAI!"#SS
C?
>
STAI!"#SS ST##"
In +8+2! an $nglish metallurgist! /arry ?rearly! accidentally discoered :tainless
:teel% In the "rocess of discoering an alloy to "rotect cannon #ores in $ngland! @hat
came into e(istence @as stainless steel% $er since! the magic of this material has
#ecome an integral "art of our lies%
5rom underground "i"es to s"ace! dairy eEui"ment to "harma eEui"ment! coins to
automo#iles% :tainless :teel is eery@here% &ike @e like to say!
ATomorro7 definitel2 0elongs to stainless steel-

I!T%ODUTIO!
?D
In the @orld of #usiness! the >%0%;indal Irou" is a cele#rity% Ranked si(th amongst
the to" Indian #usiness houses in terms of assets%The >%0% ;indal Irou" @as set u" in
+8-2 #y the steel isionary Mr% >%0% ;indal% It has gro@n from an indigenous single*
unit steel "lant in /isar! /aryana to the "resent multi*#illion! multi*locational and
multi*"roduct steel conglomerate% The organiFation is e("anding! integrating!
amalgamating and gro@ing% 'e@ directions! ne@ o#jecties #ut the ;indal motto
remains the same*
9+e are the future of steel3-
The grou" has #een technology*drien and has a #road "roduct "ortfolio% )et! the
focus at ;indal has al@ays #een steel% 5rom mining of iron*ore to the manufacturing of
alue added steel "roducts! ;indal has a "re*eminent "osition in the flat steel segment
in India and is on its @ay to #e a major glo#al "layer! @ith its oerseas manufacturing
facilities and strategic manufacturing and marketing alliances @ith other @orld
leaders% >%0%;indal Irou" aims to #e a glo#al "layer% In "ursuance of its o#jecties! it
is committed to maintain @orld class Euality standards! efficient deliery schedules
com"etitie "rice and e(cellent after sales serice% The Irou"Ds strength lies in its
constituent com"anies% $ach one is committed to consolidating its core strengths and
e(celling in their res"ectie chosen area of o"eration% ?esides iron and steel! the
>%0%;indal Irou" has a significant "resence in areas such as industrial gases! "o@er
generation! mining and maritime infrastructure% The Irou" has arious constituent
com"anies @ith the su#*grou"s #eing headed #y four sons of &ate :hri >%0%;indal%
O P 'I!DA" &%OUP>
O 'indal Sa7 "imited
- Sa7 Pi/es
- Pi/e oating
- Stainless Tu0es
- S/iral Pi/es
- DI Pi/es
O 'S+ Steel "imited
O 'S+ Infrastru4ture and logisti4s ltd3
O $i6a2nagar minerals /5t3 "td3
O 'indal Pra;air o;2gen 4o3 ltd3
O 'Soft solutions /5t3 "td3
O 'S+ energ2 ltd3
O 'S+ holdings ltd3
O 'S"
O PT3 'indal Stainless< Indonesia
O 'indal Stainless Steel7a2 "td3
O Art*dino;
O A%
O &reen Delhi B)S "td3
O PA%I$A%TA! it2 Infrastru4ture "td3
O 'SS Steelitalia
O 'S" #s/ana
O 'indal steel and /o7er ltd3
O 'indal /o7er ltd3
O !al7a steel and /o7er ltd3
'S" 'OU%!#Y
?D
>
After Inde"endence! a young man @ith a fiery am#ition to start life afresh! left his
illage for Kolkata in +8-. only to return to his natie soil to start an industrial grou"%
/is only asset then @as a dee" understanding of "i"e manufacturing and an innoatie
mind% The man @as Mr% >%0%;indal%
Mr% >%0%;indal! in 1?<2! started his first unit to manufacture steel "i"es! #ends and
sockets in Kolkata% ;indal Industries sets u" "i"e mill at /isar in 1?=0% After four
decades it continues to #e a ?rand &eader%
1?>0& ?irth of ;indal >rganiFation% A mini steel "lant esta#lished as ;indal stri"s &td%
At /issar%
1?>>& /issar "lant started manufacturing stainless steel #ased on in 3house R&<%
/ence! the #eginning of a 28 year "eriod I @hich ;indal :tri"s forged ahead as one of
the largest steel "roducer in India%
1?>?& ;indalsDs efforts heralded first indigenously manufactured stainless steel at
/issar "lant% This year marked the installation of IndiaDs first ARI>' >J)I$'
decar#uriFation (A><) conerter at the factory*a major #reakthrough in stainless steel
technology%
1?8>& :u""lies of 5erro chrome! the im"ortant ingredient for stainless
steel! @ere still de"endent on agaries of e(ternal factors% This cou"led @ith erratic
"rice escalation of 5erro chrome affected "roduction at /issar "lant% Thus! leading of
setting u" of the 5$RR> A&&>): <IKI:I>' at Kothaalasa! Kishakha"atnam%
1??1& Manufacturing of #lade stainless steel started at /issar% The com"any ste""ed
on the road to #ecome an e(clusie "roducer of stainless steel stri"s for making raFor
and surgical #lades in India%
2002& Restructuring of ;indal stri"s and the manufacturing o"erations s"un off to #e
called ;I'<A& :TAI'&$::% Art <Dino( launches! a designer! stainless steel lifestyle
"roducts in the market%
2003& arc!the architecture diision launches "ioneering "roducts @ith innoatie use
of steel in architecture! #uilding and construction segment%
200<& RATA' ;I'<A& at the helm of affairs% The com"any acEuires Mas"ion
stainless steel "lant in I'<>'$:IA%:T$$&9A)! Italy to "roide customiFed
"roducts to its customers through its ne@ serice centre%
2008 and $e%ond& 0he /issar "lant is under e("ansion! steel melting and rolling
ca"acity #eing augmented to 8..!... t"a Cold Rolling ca"acity to 21-!... t"a% ;:&Ds
joint enture in :outh Korea
-,ai 6an5 o. +td.! markets stainless steel from India and the Indonesian "lant% ;oint
enture in :"ain! ;:& $s"ana! offers custom tailored stainless steel formats for the
:"anish market and serices customers in other $uro"ean countries%
$ISIO! ?EFE
GE
>
+ To be amongst the top 10 stainless steel producers in the world
+ To gain international recognition for cost leadership, Product innovation &
Customer Satisfaction.
+ To be admired as a socially responsible Corporate and a sustained value
creator for all its staeholders
O%# $A"U#S >
1 !ntegrity
1 "ynamic Thining
1 #espect for !ndividual
1 Creativity & !nnovation
1 $eritocracy
1 Social #esponsibility
T(# &%OUP>
;indal >rganiFation! set u" in +81. #y the steel isionary Mr% >%0% ;indal! has gro@n
from an indigenous single*unit steel "lant in /isar! /aryana to the "resent multi*
#illion! multi*national and multi*"roduct steel conglomerate% The organiFation is still
e("anding! integrating! amalgamating & gro@ing% The grou" "laces its commitment
to sustaina#le deelo"ment! of its "eo"le and the communities in @hich it o"erates! at
the heart of its strategy and as"ires to #e a #enchmark for "layers in the industry the
@orld oer%
The ;indal >rganiFation today is a glo#al "layer% ItLs relentless Euest for e(cellence
has rea"ed rich #enefits and it is today one of the @orlds most admired and res"ected
grou"s @ithin the steel fraternity%
'indal Stainless< (isar
;indal :tainless is in many @ays ery much like the material it "roduces% &ike
stainless steel the com"any is ersatile in its thought "rocess! strong and unrelenting
in its o"erations! enironment friendly in its manufacturing "rocess! #right! shining
and #eautiful in its community su""ort actiities% The list of the "ro"erties of stainless
steel is endless! just as our alues are all encom"assing%
;indal :tainless has al@ays #een committed to innoation and "rogression! research
and deelo"ment% >ur innoations are admired #eyond the geogra"hical #oundaries of
our country% 'o @onder @e are the strategic "artners of glo#al leaders #y choice% >ur
achieements narrate a story of our determination to succeed and our "assion to @in%
9e @ill continue to leerage our o""ortunities in creating e(cellence that the @orld
cannot een think a#out% Today @e are the largest integrated stainless steel "roducer in
India! tomorro@ @e @ill rule the @orld%
;indal :tainless is a I:>6 8..+ & I:>6 +4..+ com"any is the flagshi" com"any of the
;indal >rganiFation% The com"any today! has come a long @ay from a single factory
esta#lishment! started in +81.% As the numero uno it has taken on the task of making
stainless steel a "art of eery#odyLs life #y taking a ,A. degrees a""roach from
"roduction of ra@ materials to su""ly of architecture and lifestyle related "roducts%
1S.!Orrisa
Man#fat#rin5
1S.!,e+4i
-or(orate Offie
:trategy &
?usiness
<eelo"ment
+%A MT0A ::
0roject
Mines!
Chrome! >re!
Coal
Austentic
Creations (0) &td%
;indal
Architecture &td%
:"eciality
0roducts
Utilities
:ales And
Marketing
&egal! Cor"orate
Affairs
:ourcing &
:u""ly
Management
0o@er
Ieneratoin
5e * Alloys
Iron & :teel
/ot Rolling
Cold Rolling
;indal :tainless
:teel@ay &td%
0T ;indal
:tainless!
Indonesia
;:: :teelitalia
&td%
Ireen <elhi ?M:
Assoiate
-om(anies
1S.!@isar
Man#fat#rin5
>"erations
:teel Melting &
CC:
Cold Rolling
/ot Rolling
0rojects
/R 0rojects
00C
CR 0rojects
Research &
<eelo"ment
Muality &
$nironment
Management
/R Actiities & Co*
ordination
Cor"orate :ocial
Res"onsi#ility
5 i n a n c e ! ? a n k i n g
A n d A c c o u n t s
Mines & Minerals
Cor"orate /uman
Resources
Coke >en
00C
/r Admin &
Co *
ordination
0ariartan City
Infrastructure &td%
1S.
:"eciality
0roducts
Utilities
:ales And
Marketing
&egal! Cor"orate
Affairs
:ourcing &
:u""ly
Management
0o@er
Ieneratoin
5e * Alloys
Iron & :teel
/ot Rolling
Cold Rolling
;indal :tainless
:teel@ay &td%
0T ;indal
:tainless!
Indonesia
;:: :teelitalia
&td%
Ireen <elhi ?M:
CRM/:
MA!UFATU%I!& P"A!TS >
(isar Plant< India
At /isar! ;indal :tainless has IndiaLs only com"osite stainless steel "lant for the
manufacture of :tainless :teel :la#s! ?looms! /ot rolled and Cold Rolled Coils!A.N
of @hich are e("orted @orld@ide%
Pre4ision Stri/s
The com"any "roduces stainless steel "recision stri"s in arious grades% These stri"s
are "roduced in narro@ 2.*/i mills in the "recision cold rolling unit%
Blade Steel
The com"any is the e(clusie "roducer of stainless steel stri"s for making raFor and
surgical #lades in India%
oin Blan8s
?esides su""lying CR :tri"s to the Ioernment of India! the "lant at /isar houses a
coin #lanking line for su""ly of coin #lanks to the Indian Mint and Mints in the glo#al
markets%
@isar 8+ant (@ar%ana)
%D at (isar
(%D at
(isar
At /isar lies IndiaLs only fully integrated :tainless :teel "lant% The "resent "roduction
ca"acity of "lant is A!..!... T0A @hich is e("anded to 1!2.!... T0A% :uccess of
;indal :tainless &td% is the fact that eerything from the conersion of ra@ material
into #looms and sla#s to hot rolling of stri"s and "lates and cold rolling is done in*
house% An e(clusie com"le( for manufacturing stainless steel for raFor and surgical
#lades has #een created% A coin #lanking line has also #een installed% The "roduction
ca"acity of the "recision stri" unit is also #eing increased from +-!... tonnes to
,.!... tonnes%
Ci9a5 8+ant (And4ra 8rades4)
The 5erro Alloys "lant is situated at ;indal 'agar! Kothaasala! <istt% KiFianagaram!
Andhra 0radesh% The installed ca"acity is 4.!... metric tonnes "er annum of high
Car#on 5erro Chrome% ?esides su""lying to the domestic market! the com"any also
e("orts 5erro Chrome to arious deelo"ed countries% The "lant is also eEui""ed @ith
an ultra modern testing la#oratory to ensure @orld*class Euality standards%
Dreenfie+d 8ro3et at Orissa

IndiaHs largest full2 integrated &reen field Stainless Steel /lant< .alinganagar<
Orissa
;indal :tainless is setting u" a Ireenfield integrated :tainless :teel "roject in the state
of >rissa @hich @ould inole mining of Iron! Manganese & chrome ore for
"roduction of ferroalloys and :tainless :teel in the melt sho" and rolling mills% To
meet the full reEuirement of "o@er! ;indal :tainless @ill also #e setting u" a -.. M9
ca"tie "o@er "lant% This stainless steel "lant @ill ultimately hae a ca"acity of +%A
million tones "er annum% The o"eration of JJ A. MKA 5erro*chrome furnace hae
already started and the "roduction has sta#iliFed% ;:& e("ects to start the ((+2- M9
"o@er "lants soon follo@ed u" #y setting u" of other 5erro alloys units of 5erro*
manganese and silico* manganese%
STAI!"#SS I!!O$ATIO!, A+A%DS>
;indal :tainless has #een striing to make stainless steel a "art of eery#odyLs life #y
taking a ,A. degrees a""roach from "roduction of ra@ materials to su""ly of
architecture and lifestyle related "roducts% Meeting this ery o#jectie! are arc and art
dL ino( * "romoted #y ;indal :tainless! uniEuely su""orting & "romoting a""lications
of :tainless :teel in eery conceia#le creatie "ossi#ilities% arc (;indal Architecture
&td%) focuses on a""lication of :tainless :teel "roducts and technology solutions
across architecture! #uilding and construction segments and is inoled in ur#an
deelo"ment making ersatile use of :tainless :teel% art dL ino( (Austenitic Creations
0t% &td%) has "roed to #e a "ioneer in the manufacture of "remium lifestyle "roducts
in stainless steel! #reaking ne@ grounds @ith its innoations% ;indal :tainless has also
instituted the > 0 ;indal :tainless Chair for research and "roduct innoation in
stainless steel at the "restigious 'ational Institute of <esign! Ahmeda#ad! to
encourage innoation and creatie a""lications of stainless steel! in design led
"roducts% :tainless :teel is an esta#lished material in international design% ItLs
contem"orary! stylish yet its neutral look is gaining immense "o"ularity among all
kinds of users and to"s as a material of choice for its e(cellent #lending a#ility @ith
any other material! iF% glass! ceramics! @ood or leather% The material has #een
"roiding great o""ortunities and ins"iration to generations of designers% Today its use
is #eing taken to ne@ leels of e("ression and technical so"histication%
:tainless Innoation A@ards is a testament of our continued su""ort to the design
fraternity%
0o 2ee( eno#ra5in5 reati)it% in t4e #sa5e of t4e materia+! 1inda+ Stain+ess
or5ani9ed t4e fo#rt4 edition of E04e Stain+ess Inno)ation A"ardsE to re"ard
e;e++ene in #se of stain+ess stee+. 04e A"ards "ere 4e+d on 10t4 Mar4! 200> in
Ne" ,e+4i.
The t4ree ate5ories for the a@ards @ere 6
-ate5or% 1 & Innoation in a""lication of :tainless :teel in ?uilding and Architecture
-ate5or% 2 & Creatie ideas of a""lication of :tainless :teel in Interior <esign
-ate5or% 3 & $(cellence in usage of :tainless :teel in 0roduct <esign
)UA"ITY ASSU%A!#>


.eo Ana+%sis in 8ro5ress

S(etrometer
Understanding Customers reEuirement and ensuring to su""ly as "er these
reEuirements is realiFed @ith the hel" of Muality Assurance and Muality Control grou"
at ;indal :tainless &imited% Across the entire #usiness chain of su""lies! o"erations
and marketing a""ro"riate Euality assurance systems are in "lace to ensure correctness
at each ste" of the cycle% I:>*8..+*2... Certification of the 0lant is a testimony to
this% Alongside I:>+4..+ and >/:A: +B..+ :ystems certification of the "lan assure
concern and "rotection to@ards enironment and for "roiding a safe @orking for the
em"loyees%
5or ensuring the Euality at eery ste" @ell eEui""ed &a#oratories are in "lace @ith a
#attery of modern eEui"ments such as J*Ray Analysers! :"ectrometers! &eco
Analysers! Metallurgical Microsco"es! Image Analyser! Uniersal Testing Machines
etc to name a fe@% 9ell*documented "rocedures ensure correctness in testing and
certification of the "roducts% The "roduction "rocess are constantly monitored and
controlled to ensure the finished "roducts as "er customerLs reEuirements%
0ES0IND EF'I8MEN0S B FA-I.I0IES IN F'A.I06 ASS'/AN-E
.ABO/A0O/IES&
N#m$er of FA .a$oratories& :G
0"o -4emia+ Ana+%sis .a$oratories and 02 Meta++#r5ia+ 0estin5 .a$oratories.
-4emia+ Ana+%sis .a$orator% No.1&
:%'o% $Eui"ments <etails
+
>"tical $mission
:"ectromOtres
Model6 Thermo AR& 44A.!
:@itFerland Model6 :"ectro &a# M1
modified to MB! Iermany
2
J*Ray 5luorescence
AnalyFer
Model 8B..J0 22A! AR&! :@itFerland%
Model J*met*BB. >utokumm"u
Instrument% 5inland
,
Car#on :ul"hur
analyFer
Model C: 4.. &$C>! U:A
4 /ydrogen analyser! Model R/ 4.2! &$C>! U:A
-
'itrogen & >(ygen
Analyser
Model TC 4,A! A%R% &$C> Analysis
-4emia+ Ana+%sis .a$orator% No.2
:%'o% $Eui"ments <etails
+
>"tical $mission
:"ectromPtrie
Model 3 0olyac 2...! 21
Channels! /ilger Analytical &td%!
$ngland
2 Car#on :ul"hur Analyser Model C: 244! &$C>! U:A
,
'itrogen & >(ygen
Analyser
Model TC 2,A! &$C>! U:A
Meta++#r5ia+ 0estin5 .a$orator% (@ot /o++in5 ,i)ision)
:%'o% $Eui"ments <etails
+
Uniersal Testing
Machine
+.. T! 5I$ make! Model 3 UTM
2 :tereo Microsco"e CIT>KA& 2! Iermany
, Metallurgical Microsco"e%
'eo"hot 2+!ModelM/03+..4! Carl
Qeiss ;ena! @ith Cleme( Image
Analysis :ystem
4 Ultrasonic Testing unit
Modsonic make! Model Ialileo +..
KrautKramer! U:' -2 (Iermany)
- Im"act Testing Machine Model6 IT ,.! 5I$
A
?rinnel cum Kickers
/ardness Tester
Model6 /M> ++11 &ei"Fig Alfred
1 Rock@ell /ardness Tester Model6 RA:! 5I$
B :urface Roughness Tester Model6 :;2.+0! Mitutoya! ;a"an
Meta++#r5ia+ 0estin5 .a$orator% (-o+d /o++in5 ,i)ision)
:%'o% $Eui"ments <etails
+ Uniersal Testing Machine
+. T! :himadFu make! model
autogra"h +. T 5I$ make! model 3
UTM
2 Metallurgical Microsco"e%
Model6 >lym"us I<R 0'$, @ith
Cleme( Image Analysis :ystem
,
$*Cu""ing Testing
Machine
:uita#le for Cold Rolled :tainless
:teel
4 Kickers /ardness Tester Model6 KM*-. 5I$ make
- :urface Roughness Tester Model6 :;2.+0! Mitutoya! ;a"an
%#S#A%( , D#$#"OPM#!T>
'+trasoni 0estin5

'+trasoni test dis(+a% (ane+
%esear4h , De5elo/ment a4ti5ities At 'S"< (isar
The R&< diision at ;:&! /isar "lays a "iotal role in retaining and consolidating
com"anyLs leadershi" role in stainless steel #usiness #y continuous u" gradation of
Euality! "rocess and serices! and innoating deelo"ment strategies to come u" @ith
ne@ "roducts @ith cost com"etitieness% Cross*fertiliFation of kno@ledge #et@een
"roduction! Euality control and commercial units in order to maintain @orld class
standard has #een the guiding "rinci"le of R&< functions%
Ma6or tas8s>
+% <eelo"ments of high alue "roducts to sere niche market%
2% Muality u" gradation of e(isting "roducts ena#ling glo#al acce"tance%
,% Cost reduction #y "rocess deelo"ment! o"timiFation and refinement to im"roe
com"etitie edge
4% Technology enhancement to increase "roduction @ith Euality%
-% Market segment im"roement #y interacting and sharing kno@ledge @ith
customers and assisting them in trou#le shooting o"eration%
In addition to the a#oe! R&< diision closely interacts @ith re"uted national and
international la#oratories=scientific institution=uniersities to aail e("ert serices for
critical inestigation%
O%PO%AT# SOIA" %#SPO!SIBI"ITY>
:hri >0 ;indal! had a ision of a "rogressie state * a state @here men and @omen
@orked shoulder to shoulder to@ards a ha""ier tomorro@% ;indal :tainless constantly
echoes those thoughts and takes its role a res"onsi#le cor"orate citiFen ery seriously%
Iiing #ack to the community at large has #een an o#jectie from the ery #eginning%
:chools at arious leels hae #een set u" to educate the s"ecifiers of the future% The
Kidya <ei ;indal and The ;indal Modern :chool! at /isar! is fully child oriented and
ensures Rholistic deelo"mentD of a studentDs mental and "hysical "otential%
Ado"ting illages and thus contri#uting to the deelo"ment of a region has also #een
"art of the oerall ;indal "lan% Im"roing of medical facilities is yet another field of
endeaor% 'C ;IM Care! at /isar offers the entire range of diagnostic! treatment and
surgical facilities% ImmuniFation dries and free healthcare cam"s on different
medical as"ects are also conducted from time to time%
#O F%I#!"I!#SS>
At our :tainless :teel "lants! the challenge faced is to make and "rocess stainless steel
@ithout adersely im"acting the enironment% ;indal :tainless has a formal
enironmental "rotection "rogram in "lace since ince"tion% 9e recogniFe the
im"ortance of "rotecting our enironment! and that of our children and our
commitment is un@aering in this res"ect% ;indal :tainless &td% com"lies @ith the
reEuirements of the :tate 0ollution Control ?oard% /aing receied the I:> +4..+
certification%
SUBSIDIA%I#S OF 'S"
CG
>
80 1inda+ Stain+ess Indonesia
;indal :tainless has acEuired :tainless :teel Cold Rolling "lant in
Indonesia from Mas"ion :tainless :teel%
1inda+ Stain+ess Stee+"a% .imited
Another first! another feather * ;indal :tainless &imited has taken a leading ste"
for@ard to #ring conenient! customiFed! @orld class! just * in * time serice in
stainless steel to doorste"s of its alued customers%
The com"any has "artnered @ith a leading Italian com"any in #usiness of distri#ution
and "rocessing of steel! :teel@ay s%r%l% to serice its customers @ith e(act slit! cut*to*
siFe! "olished stainless steel sheets! coils and #lanks in different grades @ith highest
standards of "rocessing tolerance%
The facilities in Iurgaon (/aryana) include state of the art! high end "recision
:litting! cutting to length! #lanking and "olishing lines @hich are su""lied #y the
leading steel finishing eEui"ment manufacturers! 5IMI & IM$A:! Italy%
:ome of the serices offered are customiFed "roducts! inentory management
serices! technical alue engineering serices! @arehousing and material testing%
A#steniti -reations 8ri)ate .imited
Art dLino( is the e(citing ne@ form of ultimate style% The name translates into Lthe art
of stainless steelL% And thatLs "recisely @hat it is% 9orks of art in stainless steel% :et u"
@ith the o#jectie of creating e(clusie stainless steel lifestyle "roducts! these are
synonymous @ith Euality! #eauty and functionality% The "rofessionally Eualified in*
house design team is dedicated to e("loring the frontiers of design% The "roduct range
is a cele#ration of #oth form and function% The range encom"asses ta#le@are! sering
@are! gifts! home accessories and office accessories%
1inda+ Ar4itet#re .imited
:tainless steel is a material "ar e(cellence! @hich no@ seeks to "ermeate through
Indian Architecture% The Architectural <iision launched #y ;indal :tainless &td has
taken the initiatie to "romote :tainless steel "roducts and technology solutions to
cater to the emerging market of :tainless :teel for Architecture! ?uilding and
Construction (A?C) in India% The Architectural <iision of ;indal :tainless is ca"a#le
of "roiding a full range of technical su""ort serices including design! engineering
@ork! fa#rication of Euality material and finishes! and jo# site su"erision #y trained
"ersonnel% The diision has com"leted many "rojects s"ecially that of street furniture!
cafeteria furniture! lighting and signages a"art from other architectural reEuirements%
?esides these other com"anies are as follo@s 6
'indal Stainless U. "imited< "ondon
'indal Stainless FI#< Du0ai
'indal Stainless Ital2 S3r3l3
OU% MAI! FAI"ITI#S
CG
>
04e E+etri Ar F#rnae

Ta//ing from ASM on5erter in /rogress

"adle %efining
ST##" MA.I!&
Ma3or EH#i(ment
The t@o :teel Melt :ho"! :M: I & :M: II! com"rises of Ultra /igh 0o@er* $lectric
Arc 5urnace! Argon :econdary Metallurgy Conerter! &R5 (&adle Refining 5urnace)%
:M: I is eEui""ed @ith a continuous sla# caster @hile :M: II is eEui""ed @ith t@in
strand #loom caster% In addition to a#oe :M: I is also eEui""ed @ith K>< (Kacuum
>(ygen <ecar#urisation) unit to "roduce steel @ith lo@ inclusion and gas content%
The "resent installed ca"acity of #oth :M: "ut together is --.!... MT "er year% The
:la#s are su#jected to surface conditioning in a sla# grinding section% The :la#s are
then /ot Rolled into /R Coils in :teckel Mill! @hich are then used to "roduce /RA0
'o+ Coils and 0lates% /R coils are transferred to Cold Rolling Unit! to "roduce CR
Coils and :heets% The ?looms are hot rolled in Tandem :tri" Mill to narro@ coils and
flat #ars% % In addition! s"ecial steels like raFor #lade steel is cast into ingots @hich are
su#seEuently forged to sla#s & rolled in tandem stri" mill%
P%O#SS >
The "roduction of stainless steel #egins @ith melting of ferrous scra" and ferroalloys
in U/0 $lectric Arc 5urnace! follo@ed #y secondary refining in A><=K>< units% The
liEuid steel thus o#tained! is cast into sla#s in a continuous sla# caster @ith Auto
Mould &eel Control (AM&C) :ystem% ;:& "roduces stainless steel in 2..! ,.. &
4.. series% 5urther the on*going efforts of a dedicated R&< Team along @ith
>"erations and Muality Assurance de"artment are constantly innoating in fields of
cost reduction! "roduct deelo"ment and addition of niche "roducts such as <u"le(
:tainless :teel! Controlled e("ansion alloys as like I'KAR*,A and :"ecial 5inish
Cold Rolled :tainless :teel and :tainless :teels for critical a""lications%
@ot /o++in5
04e @ot Ste2e+ Mi++
/ot rolling com"rises of /ot :teckel Mill and Tandem :tri" mill% The hot steckel mill
com"rises of sla# reheating @alking #eam furnace! 4 /i reersing roughing mill! 4 /i
reersing :teckel Mill eEui""ed @ith /ot Coilers on #oth sides and a do@n coiler%
:la#s are rolled to hot rolled coils and "lates% The mill is eEui""ed @ith leel*2
automaton system consisting of automatic hydraulic ga" setting! roll #ending system!
automatic "ass scheduling and mill setu"! automatic seEuencing! mill su"erisory
system and automatic gauge control% The mill is ca"a#le of rolling "lates and coils
u"to +2-. mm @idth @eighing u"to +BMT%The Tandem :tri" mill com"rises of
reheating furnace! 2*/i roughing stand! fie finishing stands and do@n coiler to hot
roll stainless steel #looms into flat #ars and narro@ coils%
The "resent rolling ca"acity of #oth the mills "ut together is 1..!...
T0A%
Finis4in5 (@/ 8rod#t)
/R coils are cut to length! annealed and "ickled to "roduce "lates in /RA0 'o% +
finish% 5or thickness +.%.mm and a#oe "lates are directly "roduced from steckel
mill! @hich are annealed and "ickled to "roduce /RA0 'o% + finish "lates%
-o+d /o++in5
04e -oi+ 8re(aration .ine
The cold rolling mill com"le( com"rises of the four units CR< I! CR< II & CR< III
& CR< IK % CR< I ! CR< III & CR< IK com"rises a com#ination of 2. /i
:endFimer mills! annealing and "ickling lines and arious so"histicated associated
eEui"ments and "rocessing lines to "roduce Cold Rolled Coils and :heets @ith Euality
surface finishes! "recise dimensional control and good flatness control in @ider coils
(SA..mm @idth)% The facilities at /isar is eEui""ed to "roduce and su"*"ly material
in 2<! 2?! 'o%,! 'o%4 and ?A surface finishes% CR< II is engaged in "roduction of
"recision stri"s in thinner siFes (.%.-mm to .%-.mm thick) e%g% RaFor ?lade! other
ferritic and Martens tic stainless steel%
The "resent installed ca"acity of cold rolled "roducts is +!-.!... T0A%
oil Buildu/ line
Coil #uildu" line is used to attach leader ends in hot rolled coils for increasing the
oerall yield of coils% It is also eEui""ed @ith edge trimming to im"roe "roduction
for further o"erations%
S2in (ass Mi++
The skin "ass mill is designed and installed in dust "roof housing% It is used to gie
cold rolled "ass #y "olished ground @ork roll on 2< finish dull material to conert to
2? #right surface finish% The mill is designed to meet reEuirements in A.. to +A..mm
@idth coils in .%4. to ,%..mm thickness%
S+ittin5 .ine
:litting lines are used to side trim the coils and cater the market reEuirements in
smaller @idth coils @ith a thickness from .%4-mm to AMM%
Stri( Drindin5 .ine
The stri" Irinding line is used to "roduce 'o%,! 'o%4 and some s"ecial finishes
reEuiring grinding @hich is used for decoratie "ur"oses in architectural a""lications!
restaurant eEui"ments! dairy eEui"ments! lifts! eleators etc%
S4earin5 .ine
The flying shearing line @ith Koss &eeller is used to "roduce sheets @ith good
flatness @hich is the first and foremost reEuirement of customers%
Annea+in5 and 8i2+in5 +ine
The annealing and "ickling line is used to anneal and "ickle /ot Rolled stainless and
Cold rolled stainless steel coils% The continuous annealing and "ickling line is
eEui""ed @ith a neutral electrolyte tank for "ickling #y Ruthner "rocess using sodium
sul"hate for the neutral electrolyte! scanacon system for acid recoery and remoal of
metal content%
Bri54t Annea+in5 +ine
The #right annealing (?A) line at ;indal /isar @orks is one of its kind in India% The
annealing in ?A line is done in controlled atmos"here of cracked ammonia to aoid
any o(idation of metal @hich ensures a #right finish called as ?A finish%
/AIO/ AN, S'/DI-A. B.A,E S0EE.
;indal :tainless is an e(clusie "roducer of stainless raFor #lade steel in India% % The
microstructure of our stri"s is designed to o"timiFe = facilitate hardening! shar"ening
and honing o"erations at customers end and to deelo" ideal characteristic for
intended end a""lication% These are achieed @ith stringent Euality checks utiliFing
modern and so"histicated testing eEui"ments such as Metallurgical microsco"e @ith
adanced image analyFer! digital micro*hardness tester! micro"rocessor controlled
Tensile testing machine and scanning electron microsco"e% 0ersistent R & < actiity
had led to the im"roement in Euality of "roduct ena#ling us! not only to cater to the
Indian raFor #lade steel reEuirement #ut also to e("ort a su#stantial Euantity on a
regular #asis%
The current ca"acity for "recision stri" "roduction is +2!... T0A
-OIN B.ANJS
;indal :tainless has #een su""lying AI:I 4,. grade ferritic stainless steel coils &
#lanks to India Iot% Mint & 5oreign mint for making coins on regular #asis% To
diersify its "roduct range! coin #lanking and associated "rocessing facilities of
@orld*class Euality has #een installed and commissioned% %
At "resent ;indal :tainless is su""lying 5erritic :tainless :teel coin #lanks of
denomination of 2- 0aise! -. 0aise and + Ru"ee to Iot% of India! Mint% In addition to
these @e hae deelo"ed Cu"ro*'ickel coin #lanks of 2 and - ru"ees denomination%
The "resent installed ca"acity for coin #lanking is +.!... MT0)%
The cold rolled and #right annealed coils are "rocessed at coin #lanking lines% This
com"rises of a #lanking "ress! de#urring machine! edge rimming machine! annealing
furnace and "olishing machines% :u#seEuently the coin #lanks are ins"ected on
Ins"ection Coneyors! then counted #y counting machine and "acked in drums for
des"atch%
-#(ro-Ni2e+ -om(+e;
In order to e("and the #usiness for coin #lanks! an inde"endent "roduction line has
#een installed to "roduce high alue co""er*#ase non*ferrous alloys im"ortantly
cu"ro*nickels% The "roduction facility includes induction melting! continuous
horiFontal stri" casting! cold rolling! annealing! "ickling and slitting% The installed
melting and casting ca"acity is A...T "er annum% A"art from Cu""ro*'ickels! the
unit can "roduce Aluminum*?ronFe! 0hos"horus ?ronFe! 'ickel*:iler and Tin
#earing co""er for arious engineering and je@ellry a""lications% Aluminum*?ronFe
along @ith Cu"ro*'ickel is used to manufacture du"le( coins%
FI!A!IA" S+OT A!A"YSIS
CC
>
SAO0 stands for
S K Stren5t4
A K Aea2ness
O K O((ort#nit%
0 K 04reats
ST%#!&T(>
;:& is a com"osite firm in /aryana%
It is a financially sound firm%
5acilities gien to em"loyees & em"loyers on time and u" to date
0roduct Euality is great and uniEue for all (9holesalers! Retailers)
9orking enironment is "eacefully%
They do hae a good relation @ith the Iot% of India as they su""ly Coins to Indian
Iot% Mint for "rinting%
They do hae good re"utation in the market as they get loans ery easily in less time %
They take good resere in the firm for the future "ur"ose & use it for
inestment "ur"oses%
$(cellent gro@th "ros"ects @ith significant additions! modifications and
re"lacements%
They do hae good relation @ith internal #usiness "arties%
+#A.!#SS>
?asic salary structure is not u" to date%
Kery much de"endence u"on de#t has increased financial risk%
OPPO%TU!ITI#S>
They do hae 4 mills right no@! F+! F2! F,! :0<% ?ut they "roduce ery limited
"roduct as "er need of their limited customer% :o they do hae good @ays to go if
they increase their no% of customers then they can hae more sta#ility in their sale%
T(%#ATS>
There is al@ays direct & indirect effect on the firm of got% "olicies @hich kee"s on
changing%
'USTIFIATIO! OF T(# STUDY>
,#rin5 t4e S#mmer 0rainin5! in 1IN,A. S0AIN.ESS .IMI0E,! @isar
I ana+%9ed t4e a(ita+ str#t#re ! s(eifia++% t4e ro+e of ,e$t in -a(ita+ Str#t#re
B itLs re+ation "it4 t"o im(ortant indiators of t4e firm I.e.Earnin5 (er s4are B
,i)idend (er s4are.
And to ana+%9e t4eir Finania+ 8osition I 4oose t4is (ro3et to $e st#died in
detai+ B t4ere$% ana+%9in5 t4eir finania+ (osition "it4 t4e 4e+( of )ario#s ratios
as "4ere t4e% at#a++% stand in t4eir 8rofita$i+it%! So+)en%! and Mar2et S4are.
T 0roject @ill #e hel"ful to organiFation to kno@ their actual financial
"osition%
T :tudy @ill #e useful for the management students%
T Researchers and scholars can carry on the further study%
T It analysis the financial frame@ork for its key #usiness areas
T It studies the im"act of de#t on its $0: & <0:%
T It also gies an insight of the regulatory frame@ork of the ;:&%
T It studies the "rofita#ility%
T To find out the "osition of the com"any in terms of the :9>T
Analysis%
OB'#TI$# B#(I!D T(# STUDY >
Ca"ital :tructure is ery im"ortant in modern #usiness% The analysis of Ca"ital
:tructure is also ery useful for long term decisions of funds% Ca"ital #asically refers
to the inestment done in the #usiness% The follo@ing are o#jectie of study of Ca"ital
:tructure 6
- To :tudy the im"act of 5inancial &eerage on Return on Ca"ital $m"loyed!
0rofita#ility! $0: & <0:
- To :tudy the Ca"ital :tructure As Relation #et@een <e#t & $Euity%
- To :tudy the Recent Changes In Ca"ital :tructure in terms of Nage

"IT#%ATU%# %#$I#+
>nce the "ro#lem is formulated a #rief summary of it should #e @ritten do@n% The
researcher should undertake e(tensie literature surey connected @ith the
"ro#lem%5or this "ro#lem! the a#stracting and inde(ing journals and "u#lished or
un"u#lished #i#liogra"hic are the first "lace to go to% Academic journals! conference
"roceedings! goernment re"orts! #ooks etc must #e ta""ed de"ending u"on nature of
"ro#lem%
-one(t#a+ +iterat#re&-
Conce"tual literature is that @hich relates @ith conce"ts and theories% /el" from
different #ooks should #e taken for different conce"ts and theories%
Em(iria+ +iterat#re&-
$m"irical literature consists of study made #y other in the same field% The "u#lished
data in ne@s"a"ers #ooks & magaFines aaila#le for discussion @ith "eo"le of
organiFation%
BOOJS&
M8ande%! I.M%
(+)
G5inancial ManagementH! ,
rd
edition! 'e@ <elhi! Kikas 0u#lication
/ouse 0t% &td% 0*1,to81(long term financial "osition or solency in this I studied
a#out de#t ratio! fund de#t to total ca"italiFation ratio! eEuity ratio etc%)
MMa4es4"ari! 7S.N
(2)
! Adanced AccountingH!4
th
edition :ultan Chand & :ons
0u#lication! 'e@ <elhi! 2..4! 0%'o% (#4.*#4B)(tools of financial analysis)
MD#(ta S4as4i.2
(,)
!HManagemenet AccountingH! -
th
edition! Kalyani 0u#lishers! 'e@
<elhi! 0%'o 2,%+*2,%8(@orking ca"ital management and finance)
MDoe+ ,.J
(4)
! GAnalysis of financial statementH! +.
th
edition! Aichal 0u#lishing
Com"any 0%'o 2%+*2%,B(ratio analysis)
M,ona+d /. -oo(er and 8ame+a S. S4ind+er
(-)
! G?usiness Research MethodologyH
$ighth $ditionD Tata McIra@ /ill 0u#lishing Com"any &imited! 'e@ <elhi% Cha"ter
,! 0age B2! BA! B1% Cha"ter 4! 0age +.+!+.2 (hel"ed in research design& sources of
data colection)
MJot4ari -./%
(A)
! GResearch Methodology Methods and TechniEuesH (:econd
$dition) 'e@ Age International 0u#lishers! Ansari Road! <aryaganj! 'e@ <elhi*
++...2% Cha"ter 4! 0age --*-B% Cha"ter A! 0age 8-!+..!+++% (Methods of data
collection! collection of data! and collection of secondary dataH are referred #efore the
data collectionH%)
M1ain! !0./.! and A55ar"a+! ,r. S.-.
(7)
! G:tatistics 5or M%?%AH!KK "u#lication!
00+, 0art #!2
nd
$dition !00 +,+*+,4 0art (GCorrelationH is studied to use these test in
study%
MD#(ta S.8. and D#(ta M.8%
(B)
! G?usiness :tatisticsH! T@elth $dition! :ultan Chand
and :ons 0u#lications% 00 2,1*24+!A2B*A28 (test hy"otheses testing)
MM#rra% /. S(ie5e+
(8)
! GTheory and 0ro#lem of :tatisticsH! Third edition! Tata
McIra@ /ill 0u#lication! Cha"ter +2! 0g 'o%4-*4B (correlation and regression)
M.e). Bar#4
(+.)
& In this ho@ analysis of financial statements of organiFation is done
and on the #asis of that comment u"on the financial "osition of the organiFation%
MJ4an M.6. B 1ain 8.J.
(++)
7Finania+ Mana5ementN 3
rd
edition! the information
regarding the ratio analysis etc%
MJot4ari -./.
(+2)
! 2
nd
edition 7/esear4 met4odo+o5% met4ods B te4niH#esN
Ne" A5e Internationa+ 8#$+is4ers! Ansari /oad! ,ar%a5an3! Ne" ,e+4i-110002&
Kno@ledge a#out research "rocess! sam"le design! research design etc% The
information regarding the #asics of research and research methodology! @hat are the
different ty"es of research designs! "ro#lem statement! sources of data collection and
methods of data collection are gien in this section%A
MJot4ari -./. %
(+,)
! 2
nd
edition 7/esear4 met4odo+o5% met4ods B te4niH#esN
Ne" A5e Internationa+ 8#$+is4ers! Ansari /oad! ,ar%a5an3! Ne" ,e+4i-110002& I
hae taken the information a#out the A'>KA and 0rinci"al Com"onent
Analysis(0CA)! a""lication of these tools and inter"retation of these tools
M.#2 1. ,a)id
(+4)
! 7Mar2etin5 /esear4N& from this #ook I got light on the
meaning of the marketing research & data collection%
MMitta+./.J
(+-)
!7Mana5ement Ao#ntin5 B Finania+ Mana5ementN&- The
kno@ledge I hae taken is e("lanation a#out the "re"aring of ca"ital structure and
@ay of inter"reting it%
MBeri D.-%
(+A)
! 7Mar2etin5 /esear4N& Marketing Research ,
rd
edition6 This #ook
hel"ed in understanding the different research designs and analytical tools used here%
M-iaran Aa+s4
(+1)
! 7Je% Mana5ement /atiosN &- I hae taken the kno@ledge a#out
the analysis of liEuidity of any firm #y calculating current & liEuid ratio%
M1ain 0./
(+B)
! 7Statistis for MBAN

C.J (#$+iation6* ?y going through this #ook I
got information a#out ho@ to calculate Regression Analysis and its a""lication in the
#usiness studies%
MJ4an M.6! 1ain 8.J
(+8)
! 7Mana5ement Ao#ntin5N&- It descri#es and e("lains the
formulation of arious ratios @hich gie kno@ledge a#out the financial soundness of
the #usiness organiFation and their inter"retation%
MD#(ta -.B.
(2.)!
EMana5ement t4eor% and (ratieN&- ?y studying this te(t #ook! I
come to kno@ a#out the "ersonnel at arious leels in the organiFation &
res"onsi#ilities of the key "ersonnel to@ards these em"loyees and #asic kno@ledge
a#out the arious de"artments of the manufacturing unit%
1O'/NA.S B MADAIINES&
MI-FAI 'ni)ersit% 8ress

1#ne 2008
(2+)
!"ractical issues in a""roaches of ca"ital
structure
MFinania+ (+annin5 3o#rna+

Mar 200>
(22)
! "ractical issues on financial ratios%
MI-FAI /eader

Ma% 0=
(2,)
! Critical analysis of #alancesheet 2..A*.1!"g 2+*21%
MFinane India

,e 08
(24)
! I hae study a#out the "reailing ta( structure! ol JJI*
no I "g +42-* +4,.
MMar2etin5 /esear4! s#mmer 200>
(2-)
! use of statistical tools! " no% ,.*,,%
MIndian 1o#rna+ of Finane

A(ri+ 200?
(2A)
! study the case on "rofita#ility and
financial "osition of com"anies! " no% +8*21
SI0ES&
M4tt(&OO""".;+stat.omOdemo-(a.4tm
(21)
6It gae me information a#out tools%
M""".3s++imited.om
(2B)
this @e#site "roided me @ith the information a#out the
com"any%
M4tt(&OO3s+.inOa$o#tP3..$.+.as(
(28)
6 This @e# site is the official site of the organiFation
gies the information related to #ackground! com"anyDs "rofile history! mission of the
com"any etc%
M4tt(&OOmone%.rediff.omOmone%O3s+O$a+anes4eet.3s+Qom(an%-odeK1=03002>
(,.)
6
?alance :heet for the year 2..,*2..4 to 2..1*2..B%
M4tt(&OOmone%.rediff.omOmone%O3s+O(P+.3s(Qom(an%-odeK1=03002>
(,+)
0rofit and loss Account for the year 2..,*2..4 to 2..1*2..B%
M4tt(&OO(i$.ni.inOfeat#reOfe%r?8Ofe11?8Of2>11?81.4tm+ %
(,2)
6 5rom this site I hae
taken the "rofile of steel industry of India
M4tt(&OO""".india-rafts.omO$#siness-re(ortsOindian-stee+-ind#str%Os"ot-
ana+%sis.4tm
(,,)
6 5rom this site I hae taken :9>T analysis of the industry
M4tt(&OO3s+.inOinfrastr#t#rePfai+ities.as(
(,4)
6 5rom this site I hae taken the
information regarding grou" com"anies and there locations%
M4tt(&OO3s+.inOin)estorPfinania+(erformane.as(
(,-)
6 5rom this site data a#out grou"
"erformance has #een taken%
M4tt(&OO3s+.inOa$o#tPe(s.as(
(,A)
6 5rom here I hae taken fluctuation in $0: of the
com"any%
M4tt(&OOm%iris.omOs4aresOom(an%Osna(S4otS4o".(4(QiodeKMA@S8IMI
(,1)
6
5rom here I get the ratio analysis of the com"any%
-ASE S0',IES&
MBr#ner F. /o$ert! 0ata M Dra" @i++
(,B)
! -
th
edition ratio analysis! financial
analysis
MI-FAI -entre for mana5ement resear4
(,8)
! case studies in 5inance ol II!
ealuation of "roject
ANN'A. /E8O/0&-
U?alance :heet & 0=& account of the year 2..4 & 2..B%
(4.)
%
%#S#A%( M#T(ODO"O&Y
J
>
Research is a "rocedure of logical and systematic a""lication of the fundamentals of
science to the general and oerall Euestions of a study and scientific techniEue #y
@hich "roide "recise tools! s"ecific "rocedures and technical! rather than
"hiloso"hical means for getting and ordering the data "rior to their logical analysis
and mani"ulation%
9All /rogress is 0orn of in1uir23 Dou0t is often 0etter than o5er4onfiden4e< for it
leads to in1uir2 and in1uir2 leads to in5ention3-
<ifferent ty"e of research designs is aaila#le de"ending u"on the nature of research
"roject! aaila#ility of a#le man"o@er and circumstances
Iss#es re5ardin5 resear4 are&
- To gain familiarity @ith the "henomenon or to achiee ne@ insight into it%
- To "ortray accurately the characteristics of a "articular indiidual! situation or
grou"%
- To determine the freEuency @ith @hich something occur%
%#S#A%( D#SI&!
F?
>
This "art contains releant information "ertaining to research design and methodology
used in the research "roject% The research design has #een distinctie descri#ed to the
o#jectie of the study% There are three ty"es of research design that are used
freEuently used #y the arious researchers% These are6
$("loratory research
<escri"tie research
Causal research
SAMP"I!& , SAMP"I!& D#SI&!
F?
>
:am"ling method is that method in @hich data is collected from the sam"le of items
selected from the "o"ulation and conclusions are dra@n from them% The method of
selecting a sam"le out of a gien "o"ulation is called sam"ling% In other @ords!
sam"ling denotes the selection of a "art of the aggregate statistical material @ith a
ie@ to o#taining information a#out the @hole% 'o@adays! there are arious methods
of selecting a sam"le from a "o"ulation in accordance @ith arious needs%
DATA O""#TIO!
FG
>
The data of ;:& &td% 5or the fie years has #een used in this study hae #een taken
from com"any% $diting! classification and ta#ulation of the financial data! @hich are
collected from the different sources such as
annual re"orts% <ata hae #een taken as "er the reEuirement of the study%
S#O!DA%Y DATA O""#TIO!
K
>
:econdary data means that data that are already aaila#le i%e% refers to data @hich has
already #een collected and analyFed #y someone else% The sources used in this case
are*
- Ma5a9ines
- 1o#rna+s
- Ae$sites
- -om(an% (rofi+e
- Ann#a+ re(orts
I!T%ODUTIO! TO APITA" ST%UTU%#
FK
>
In order to run & manage a com"any ! funds are needed% Right from the "romotional
stage u" to the end! finances "lay a ery im"ortant in any com"anyDs life% If the funds
are inadeEuate! the #usiness suffers & if the funds are "ro"erly managed! the entire
organiFation @orks "ro"erly % It is therefore! necessary that correct estimate of the
need the com"any has to #e made%
$stimating the ca"ital needs of the firm is necessary! #ut Ca"ital :tructure decision is
ery im"ortant% According to Ieresten#eg! GCa"ital :tructure of a com"any refers to
the com"osition or the make u" of its Ca"italiFation & it includes all long term
sources as 6 loans! shares & de#entures %H
The ca"ital :tructure is made u" of <e#t & $Euity :ecurities & refers to the
"ermanent financing of the firm! it is com"osed of the long term funds%
FO%MS OF APITA" ST%UTU%#>
- #1uit2 onl2
- #1uit2 , /referen4e shares
- #1uit2 < /referen4e shares , de0entures
- #1uit2 shares , de0entures
SOM# BASI T#%MMI!O"O&I#S
FD
>
APITA"> -a(ita+ the dictionary meaning of the term ca"ital is @ealth ca"ital is the
total account inested in #usiness the ca"ital of a #usiness is the claim of the o@ner to
the #usiness is the claim of the o@ner to the #usiness% It #asically refers to total funds
inested in any #usiness%
APITA" ST%UTU%#> It is the MUA&IT) >5 5U'<: in the #usiness% In this @e
determine the "ro"ortion in @hich funds should #e raised from different sources as
securities% In this @ay CA0ITA& :TRUCTUR$ decisions are related to the mutual
ratio of long term sources of CA0ITA&%
"O!& T#%M SOU%#S> These are the sources from @hich ca"ital can #e made
aaila#le for more than three years @hich can #e OANE, B BO//OAE, funds%
TYP# OF "O!& T#%M SOU%#S>
OANE, F'N,S6 These are o@ned #y the !firm 9hich includes :/AR$
CA0ITA& & R$:$RK$ & :UR0&U:%
BO//OAE, F'N,S& These are the de#ts taken #y the firm on @hich the firm has
to "ay Interest at a fi(ed rate 9hich includes <$?$'TUR$: & &>'I T$RM
&>A': from 5inancial Institutions%
S(A%# APITA"> The @hole CA0ITA& is diided in to :/AR$ of small alues%
:uch as the @hole ca"ital of Re%+...... is diided in to +.... shares of Re%+..
each%
S(A%#(O"D#%S> These are the "arties @ho inest in the shares%
DI$ID#!D> This is that "art of '$T 0R>5IT @hich is to #e distri#uted to the
:hareholders%
V TYP#S OF S(A%#S> There are t@o ty"e of :hare $MUIT) &0R$5$R$'C$
EF'I06 S@A/ES6 These shares are the shares on @hich <iidend is "aid after
meeting all o#ligations to other "arties are re"aid only at the time of 9inding U" of
the com"any after meeting the &ia#ility to@ards all other "arties %$Euity :hareholders
are the Real >@ners of the com"any % They hae Koting Rights & Right to "artici"ate
directly in the decision making "rocess of com"any% <iidend "aid is not fi(ed &
com"any is not #ound to "ay <iidend%
8/EFE/EN-E S@A/ES6 These shares are like the <e#enture #ecause <iidend is
"aid at a fi(ed rate & these shareholders are gien 0riority oer $Euity :hareholders%
?ut they donDt hae Koting Right #ut in some s"ecial cases right can #e gien% They
are also gien "riority oer the assets at the time of 9inding U"%
%#S#%$# ,SU%P"US> This is the U'<I:TRI?UT$< 0R>5IT: remained for
some s"ecific "ur"ose or for meeting uncertainties% These are the I'T$R'A&
:>URC$: of "roiding 5U'<: %
D#B#!TU%#S> These are the like the Certificate @hich are #asically the
ACK'>9&$<I$M$'T >5 <$?T issued in the faour of <e#enture holder %These
can #e :$CUR$< >R U':$CUR$<% They are "aid I'T$R$:T at a fi(ed rate %It is
a kind of agreement in @hich all terms & conditions are decided in adance such as
lifetime of <e#entures! Rate of Interest etc%
"OA!S F%OM FI!A!IA" I!STITUT#S> These are the loans in @hich 5inancial
Institutes get interest on decided rate % In this an agreement is set u" in adance%
OST OF APITA"> This is the minimum GRate of ReturnH the com"any has to "ay
to arious su""liers of funds%As <iidend to :hareholders & Interest to <e#t
"roiders%
OPTIMA" APITA" ST%UTU%#>A ca"ital :tructure is said to #e o"timal @here
the KA&U$ >5 5IRM can #e MAJIMI:$< & C>:T >5 CA0ITA& can #e
MI'IMI:$<%
T+O BASI PU%POS#> 5urther t@o are the #asic aims considered @hile deciding
the ratio 6
7MARIM'M CA.'E OF FI/MN
7MINIM'M -OS0 OF -A8I0A.N
F'A.I0IES OF A SO'N, B O80IM'M -A8I0A. S0/'-0'/E
5ollo@ing are the 5$ATUR$: of an >0TIMA& Ca"ital :tructure6
+% SIM8.I-I06& :o far as "ossi#le! the Ca"ital :tructure of the firm should #e
sim"le% It means that! there must #e minimum num#er of securities to #e issued% If it
#ecomes com"licated in #eginning! it can #e difficult to maintain in future%
2% F.ERIBI.I06& The Ca"ital :tructure of the firm should #e fle(i#le so that it can
#e changed as & @hen needed% As 'e@ sources can #e added to Ca"ital :tructure at
the time of e("ansion & can #e re"aid easily at the time of reduction%
,% MINIM'M -OS0 OF -A8I0A. & As descri#ed earlier that this is one of the
ultimate aim of the 5inancial Manager%The Cost of Ca"ital Is in the form of Interest
& <iidend % Thus the com#ination should #e the chea"est as "ossi#le and Aerage
cost of ca"ital is to #e considered %
4%A,EF'A0E .IF'I,I06 & The term &iEuidity refers to the firmDs A#ility to
meet itDs :/>RT term >?&IIATI>': & <A) T> <A) @orking% There is an
inerse relation #et@een &IMUI<IT) & 0R>5ITA?I&IT)% :o a manager should #e
a#le to set u" that Ratio @hich #alances the #oth%
-%MINIM'M /ISJ & Risk is one of the most im"ortant factor to #e considered% As
The more use of ?orro@ed 5unds @ill increase the Risk as they hae to #e "aid
?efore the claims of shareholders% :o Risk & Return must #e #alanced%
A%.EDA. /EF'I/EMEN0S & Ca"ital :tructure should #e maintained in
Conformity @ith the &egal ReEuirements of the country% As under the Ca"ital Issue
Control Act! the ratio of <e#t to $Euity must #e 26+ in any firm% :imilarly! related to
Interest Rate on <e#entures% Thus all such kinds of Rules to #e studied @ell%
1%MARIM'M /E0'/N & Ca"ital :tructure must facilitate ma(imum return to the
Inestors% And al@ays Return on Ca"ital must #e greater than Cost of ca"ital% >nly
than any firm can surie%
B%-ON0/O. & The Control of the firm lies in the hands of the :hareholders #ecause
they are haing the oting rights in the meetings of the Com"anies% ?ut in some
s"ecial cases! 0reference :hareholders & <e#enture holder may also get these rights
:o it should #e considered that control must lie in fe@ hands for ?etter control%
FATO%S AFF#TI!& APITA" ST%UTU%#
?
>
Initially! at the time of "romotion of the com"any !ca"ital structure "lan is to #e
"re"ared ery carefully% 5irst of all! the o#jectie of the ca"ital structure should #e
determined & then the financing decisions should #e taken accordingly% Com"any has
to arrange for funds for its actiities continuously% Therefore! ca"ital structure
decisions hae to #e taken on continuous #asis% 5ollo@ing factors must #e taken in to
consideration @hile taken decisions regarding the ca"ital structure6
+% SII# OF BUSI!#SS> :mall #usiness hae to face great difficulty in raising
long Term finance% If! it is all a#le to get &ong Term &oan ! it has to acce"t
unreasona#le conditions & has to "ay high interest% Therefore! 9hile "re"aring ca"ital
structure "lan! com"any should make "ro"er use of its siFe%
2%FO%M OF BUSI!#SS O%&A!ISATIO!> RC>'TR>&D is much significant in the
case of "riate com"anies! sole traders & "artnershi" firms #ecause in such #usinesses
! o@nershi" is @idely s"read% Therefore! control canDt #e restricted%
,%STABI"ITY OF #A%!I!&S> The sale & sta#ility of income affects the Euantum
of leerage% The com"anies @hich hae sta#ility in income sales! can use more of de#t
in their ca"ital structure% The industries "roducing consumer goods face more
fluctuations #ut in the case of "u#lic utility institutions are more safe% Thus sta#ility is
a good factor for deciding the ratio of funds%
4%D#&%## OF OMP#TITIO!> If in an industry! the degree for com"etition is
high! such com"anies in the industry should use greater degree of share ca"ital as
com"ared to de#t ca"ital%
-%STA&# OF "IF# Y"#> :tage of life cycle of a firm is also an im"ortant factor%
As if a firm is in the initial stage then there are more chances of failure so share
ca"ital is a good o"tion%
A%O%PO%ATIO! TA=> <ue to the current "roision of ta( ! the use of de#t is
chea"er as com"ared to share ca"ital% >n the other hand! if the shareholder fall in lo@
income ta( #racket! they @ill like to get high diidend & in such case the com"any
@ill meet its financial reEuirement from e(ternal source%
1%STAT# %#&U"ATIO! $ Ca"ital :tructure should #e maintained in Conformity
@ith the &egal ReEuirements of the country% As under the Ca"ital Issue Control Act!
the ratio of <e#t to $Euity must #e 26+ in any firm% :imilarly! related to Interest Rate
on <e#entures% Thus all such kinds of Rules to #e studied @ell%
B%STAT# OF APITA" MA%.#T> Ca"ital :tructure decisions of the com"any are
also affected #y the state of ca"ital Market% :ometimes Com"any @ants to issue
ordinary shares #ut inestors are not ready to inest due to high risk %In such a
situation ! com"any should issue other securities for raising the funds ! #ut not the
ordinary share%
8%ATTITUD# OF MA!A&#M#!T> The Attitude of management to@ards the factors
affecting the ca"ital structure also affects the Ca"ital :tructure% :ome managers do not
@ant to #ear risk% In such case ordinary share ca"ital should #e used in "lace of de#t
& if managers are not in a situation to #ear risk then #orro@ed funds should #e more%
+.%T%ADI!& O! #)UITY> To arrange funds for acEuiring com"anyDs assets! the use
of 5i(ed Cost sources like 0reference share ca"ital & de#t funds is called as Trading
>n $Euity or 5inancial &eerage% If the return on assets acEuired from the de#t funds
is greater than the cost of de#t ! $arning "er :hare @ill increase% Therefore! a
com"any should use such sources of funds @hich @ill lead to increase in $0:%
++%"#$#%A&# %ATIO OF OT(#% FI%MS I! T(# I!DUST%Y> 9hile taking
ca"ital structure decisions ! de#t*eEuity ratio of other firms in the industry should #e
com"ared % <e#t*eEuity ratio of the industry acts as a standard% If de#t*eEuity ratio of
the firm is not similar to the de#t*eEuity ratio of the Industry! its reasons should #e
ascertained%
+2% F"#=IBI"ITY : The Ca"ital :tructure of the firm should #e fle(i#le so that it can
#e changed as & @hen needed% As 'e@ sources can #e added to Ca"ital :tructure at
the time of e("ansion & can #e re"aid easily at the time of reduction%
+,%O!T%O" : The Control of the firm lies in the hands of the :hareholders #ecause
they are haing the oting rights in the meetings of the Com"anies% ?ut in some
s"ecial cases! 0reference :hareholders & <e#enture holder may also get these rights
:o it should #e considered that control must lie in fe@ hands for ?etter control%
+4%F"#=IBI"ITY : The Ca"ital :tructure of the firm should #e fle(i#le so that it can
#e changed as & @hen needed% As 'e@ sources can #e added to Ca"ital :tructure at
the time of e("ansion & can #e re"aid easily at the time of reduction%5le(i#ility in the
ca"ital structure de"ends u"on the follo@ing6
(+) 5le(i#ility in the 5i(ed Assets (2) Restrictie conditions in the de#t agreement
(,) Terms of redem"tion (4) <e#t Ca"acity
+-%F"OATATIO! OST> These are the costs incurred at the time of issue of the
securities % These costs include commission! stationary & other e("enses % 'ormally
the cost of de#t is less than the cost of shares% Therefore! the com"anies are attracted
to@ards the #orro@ed funds% If the amount of issue is increased ! the "ercentage of
floatation costs can decrease%
APP%OA(#S TO APITA" ST%UTU%# D#ISIO!S
?F
6Introduction6 The t@o "rinci"al sources of finance for a com"any are eEuity and de#t%
9hat should #e the "ro"ortion of eEuity and de#t in the ca"ital structure of the firmW
>ne of the key issues in the ca"ital structure decision is the relationshi" #et@een the
ca"ital structure and the alue of the firm% There are seeral ie@s on ho@ this
decision affects the alue of the firm%
-a(ita+ str#t#re t4eories&
Basi ass#m(tions&
There are only t@o kinds of funds used #y a firm i%e% de#t and eEuity%
Ta(es are not considered%
The "ayout ratio is +..N
The firmDs total financing remains constant
?usiness risk is constant oer time
The firm has "er"etual life%
Net Inome A((roa4 (NI)
According to this a""roach! the cost of de#t and the cost of eEuity do not change @ith
a change in the leerage ratio% As a result the aerage cost of ca"ital declines as the
leerage ratio increases% This is #ecause @hen the leerage ratio increases! the cost of
de#t! @hich is lo@er than the cost of eEuity! gets a higher @eightage in the calculation
of the cost of ca"ital%
The formula to calculate the aerage cost of ca"ital is as follo@s6
Ko X Kd (?= (?7:)) 7 Ke (:=(?7:))
9here6
Ko is the aerage cost of ca"ital
Kd is the cost of de#t
? is the market alue of de#t
: is the market alue of eEuity
Ke is the cost of eEuity
NI a((roa4 in (ratia+.
6EA/ E8S BOOJ
CA.'E
Je Jd Jo
200:
+A%4+ 22%,1 28%4 +, +2%A1
200<
--%11 12%+, ,+%.+ +, +,%24
200=
+2%2, 11%, +-%B +, +,%.,
200>
2-%82 +.+%42 2-%-A +, +,%+,
2008
+-%A ++-%A1 +,%4 +, +,
6EA/ C#
200:
2+,.%11
200<
2+84%8-
200=
+14+%84
200>
,1B4%42
2008
4A++%B4
Net O(eratin5 inome A((roa4 (NOI)
According to this a""roach6
The oerall ca"italisation rate remains constant for all leels of financial
leerage
The cost of de#t also remains constant for all leels of financial leerage
The cost of eEuity increases linearly @ith financial leerage
The formula to calculate the cost of ca"ital is KoXKd(?=(?7:))7Ke(:=(?7:))
Ko and Kd are constant for all leels of leerage% Iien this! the cost of eEuity can #e
e("ressed as follo@s6
Ke XKo7(Ko*Kd)(?=:)
0raditiona+ or Intermediate A((roa4
This a""roach is mid@ay #et@een the 'I and the '>I a""roach% The main
"ro"ositions of this a""roach are6
The cost of de#t remains almost constant u" to a certain degree of leerage #ut rises
thereafter at an increasing rate%
The cost of eEuity remains more or less constant or rises gradually u" to a
certain degree of leerage and rises shar"ly thereafter%
The cost of ca"ital due to the #ehaiour of the cost of de#t and cost of eEuity
o <ecreases u" to a certain "oint
o Remains more or less constant for moderate increases in leerage
thereafter
o Rises #eyond that leel at an increasing rate%
MM A((roa4
A@EN 0@E/E IS NO 0ARES
According to this a""roach! the ca"ital structure decision of a firm is irreleant% This
a""roach su""orts the '>I a""roach and "roides a #ehaioural justification for it
Additional assum"tions of this a""roach include6
Ca"ital markets are "erfect% All information is freely aaila#le and there are no
transaction costs
All inestors are rational
5irms can #e grou"ed into R$Euialent risk classesD on the #asis of their
#usiness risk
There are no ta(es
This a""roach indicates that the ca"ital structure is irreleant #ecause of the ar#itrage
"rocess @hich @ill correct any im#alance i%e% e("ectations @ill change and a stage
@ill #e reached @here further ar#itrage is not "ossi#le%
A@EN 0@E/E IS 0ARES
According to this a""roach ca"ital structure decision hae a significant effect on the
"rofita#ility of shareholder due to the ta( deducti#le nature of the interest% According
to this alue of leered firm is al@ays more than the unleered firm%
According to this
C# K EA0OJo
A4ere Ku is alue of unleered firm
$AT is earning after ta(
Ko is oerall cost of ca"ital
And C+ K C#( 1-t ) S tTd
A4ere Kl is alue of unleered firm
t is ta( in N
d is total de#t
This a""roach is more realistic in nature as in reality ta(es e(ist%
MM A((roa4 in (ratia+
6EA/ E8S BOOJ
CA.'E
Je Jd Jo
200:
+A%4+ 22%,1 28%4 +, +2%A1
200<
--%11 12%+, ,+%.+ +, +,%24
200=
+2%2, 11%, +-%B +, +,%.,
200>
2-%82 +.+%42 2-%-A +, +,%+,
2008
+-%A ++-%A1 +,%4 +, +,

6EA/ C# Cl
200:
2+,.%11 2,A.%,2
200<
2+84%8- 2-8B%8A
200=
+14+%84 24..%.B
200>
,1B4%42 4-B.%B8
2008
4A++%B4 -B8B%BA
I!T#%P%#TATIO!>
/ere alue is sho@ing that alue of leaered firm is al@ays greater than the
unleaered firm% :o com"any should use de#t to increase the alue of firm and so the
"rofita#ility of shareholders% This sho@s that the MM a""roach "roe to #e true for
the ;:&%
APITA" ST%UTU%# OF 'S"
GE
>
SOU%#S OF FU!DS(I! %O%#)>
MA/0: MA/0< MA/0= MA/0> MA/08
0O0A.
S@A/E-A8I0A.
1?.?8 21.?8 2=.11 2>.=: 30.?2
EF'I06 S@A/E
-A8I0A.
1?.?8 21.?8 2=.11 2>.=: 30.?2
8/EFE/EN-E
S@A/E-A8I0A.
00.00 00.00 00.00 00.00 00.00
/ESE/CES <3>.2< >>0.>? ?83.10 13>:.13 1><>.1:
SE-'/E, .OAN =<=.<? 102<.?0 1?0<.01 2228.?< 3820.3:
'NSE-'/E,
.OAN
108.<< 320.82 288.81 :2>.3> :=?.>1
0O0A. ,EB0 >=<.1: 13:=.>0 21?3.82 2=<=.32 :2?0.0<
TOTA" FU!DS US#D (I! %3)
)$AR: >9$'$< 5U'<: ?>RR>9$< 5U'<:
MarD.4 --1%2, 1A-%+4
MarD.- 182%11 +,4A%1.
MarD.A +..8%2+ 2+8,%B2
MarD.1 +4.+%11 2A-A%,2
MarD.B +1BB%.A 428.%.-
STAT#M#!T OF (A!&# I! FU!DS (I! L)>
)$AR: C/A'I$ I' C/A'I$ I'
>9$'$< 5U'<: ?>RR>9$< 5U'<:
MarD.4 ******** ********
MarD.- 742%21 71A%..
MarD.A 721%,. 748%8A
MarD.1 7,B%8. 72+%.B
MarD.B 721%-A 7A+%-.
I!T#%P%#TATIO!>
If @e make a com"arison then @e can see that eery year the "ro"ortion of de#t is
greater than the o@ned funds% $ery year the amount of #oth funds is increased% ?ut
increase in #orro@ed funds is more than the increase in o@ned funds%
T(#O%#TIA" F%AM#+O%. >
O!ST%UT >9To Stud2 the im/a4t of FI!A!IA" "#$#%A&# on #PS< DPS<
Shareholder*s +ealth , Profita0ilit2 of 'S"-
$A%IAB"#S>
I!D#P#!D#!T> D#BT< #)UITY
D#P#!D#!T>DPS , #PS< %#TU%! O! APITA" #MP"OY#D
STATISTIA" TOO"S
?K
>
I!T%ODUTIO!>
An educated citiFen needs an understanding of #asic statistical tool to function in a
@orld that is #ecoming increasingly de"endant on Euantitatie information% :tatistics
means numerical descri"tion to most "eo"le% In fact the term statistics is generally
used to mean numerical facts and figures such as agriculture "roduction during a year!
rate of inflation and so on% /o@eer as a su#ject of study! statistics refers to the #ody
of "rinci"les and "rocedures deelo"ed for the collection! classification!
summariFation and inter"retation of numerical data and for the use of such data%
M#A!I!&>:
?roadly s"eaking! the term statistics has #een generally used in t@o senses6*
+ 8+#ra+ Sense
+ Sin5#+ar Sense
8+#ra+ sense refers to the n#meria+ data% Sin5#+ar Sense refers to a Siene in
@hich @e deals @ith the techniEues of collecting! classifying! "resenting! analyFing
and inter"reting the data! the conce"t in its singular sense! refers to Statistia+
Met4od.
PU%POS#> 9ithout the assistance of :tatistical Method! an organiFation @ould find
it im"ossi#le to make sense of the huge data% The "ur"ose of statistics is to6*
AnalyFe
:ummariFe
Inestigate
Record
TOO"S US#D>:
:tatistical tools are the #asic measures! @hich hel"s in defining the relation #et@een
different items! "resent! "ast and future trend of the future trend of the "articular
#usiness etc% A @ide ariety of statistical tools are aaila#le and any of them can #e
used #y any #usinessman de"ending u"on the nature of his trade% Karious statistical
tools are6*
V Correlation
V /y"othesis Testing
B
Multi"le Regression
T*Test
-O//E.A0ION
>
6
According to -ro;ton and -o"den! G@hen the relationshi" is of a Euantitatie
nature! the a""ro"riate statistical tool for discoering and measuring the relationshi"
and e("ressing it in a #rief formula is kno@n as correlation
068ES OF -O//E.A0ION
Correlation is classified in seeral different @ays% Three of the most im"ortant @ays
are6*
8ositi)e and Ne5ati)e -orre+ation6 9hen t@o aria#le J and ) moe in same
direction is 0ositie Correlation and @hen #oth aria#les moe in o""osite direction
that is 'egatie Correlation%
Sim(+e! 8artia+ and M#+ti(+e -orre+ations6 9hen @e study the relationshi"
#et@een t@o aria#les only that is :im"le Correlation% 9hen three or more aria#les
are taken #ut relationshi" #et@een any t@o of the aria#le is studied! assuming other
aria#les as constant that is 0artial Correlation and @hen @e study the relationshi"
among three or more aria#les that is Multi"le Correlation%
.inear and -#r)i-.inear -orre+ation6 @hen the ratio of change of t@o aria#les
J and ) remains constant throughout! then they are said to #e &inear Correlated and
@hen the ratio of change #et@een the t@o aria#les is not constant #ut changing! then
it is said to #e Curi*&inear%
,ED/EE OF -O//E.A0ION&-
Sr. No. ,e5ree of
orre+ation
8ositi)e Ne5ati)e
+ 0erfect correlation 7+ *+
2 /igh <egree of
correlation
?et@een 7%1-
to7+
?et@een *%1- to*+
, Moderate <egree
of Correlation
?et@een 7%2-
to7%1-
?et@een *%2-
to*%1-
4 &o@ <egree of
Correlation
?et@een .
to7%2-
?et@een . to*%2-
- A#sence of
Correlation
. .
-OEFFI-IEN0OF -O//E.A0ION IS DICEN B6&
/KU;.%vUx
2
.Uy
2
Bet"een ,e$t B ,8S Bet"een ,e$t B ,8S&
6EA/ ,EB0(IN -/.) ,8S(IN /S.)
200: >=<.1: 2.00
200< 13:=.> 2.:0
200= 21?3.82 1.=0
200> 2=<=.32 1.=0
2008 :2?0.0< 2.00
I!T#%P%#TATIO!>
If @e look at the alue of correlation @e hae found !then it can #e clearly seen that
there is a *e moderate degree correlation #et@een the diidend "er share & de#t
#een used in the firm% As if de#t increases then the diidend "er share decreases%
Bet"een ,e$t B E8S Bet"een ,e$t B E8S&
6EA/ ,EB0(IN -/.) E8S(IN /S.)
200: >=<.1: 1=.:1
200< 13:=.> 22.3>
200= 21?3.82 12.23
200> 2=<=.32 2<.?2
2008 :2?0.0< 1<.=0
I!T#%P%#TATIO!>
If @e look at the alue of correlation @e hae found !then it can #e clearly seen that
there is a *e lo@ degree correlation #et@een the earning "er share & de#t #een used
in the firm% As if de#t increases then the earning "er share decreases%
Bet"een EH#it% B E8S Bet"een EH#it% B E8S&
6EA/ EF'I06(IN -/.) E8S(IN /S.)
200: 1?.?8 1=.:1
200< 21.?8 22.3>
200= 2=.11 12.23
200> 2>.=: 2<.?2
2008 30.?2 1<.=0
I!T#%P%#TATIO!>
If @e look at the alue of correlation @e hae found !then it can #e clearly seen that
there is a *e lo@ degree correlation #et@een the earning "er share & de#t #een used
in the firm% As if eEuity increases then the earning "er share decreases%
Bet"een EH#it% B ,8S Bet"een EH#it% B ,8S&
6EA/ EF'I06(IN -/.) ,8S(IN /S.)
200: 1?.?8 2.00
200< 21.?8 2.:0
200= 2=.11 1.=0
200> 2>.=: 1.=0
2008 30.?2 2.00
I!T#%P%#TATIO!>
If @e look at the alue of correlation @e hae found !then it can #e clearly seen that
there is a *e lo@ degree correlation #et@een the earning "er share & de#t #een used
in the firm% As if eEuity increases then the diidend "er share decreases%
Bet"een EH#it% B ,e$t Bet"een EH#it% B ,e$t&
6EA/ EF'I06(IN -/.) ,EB0(IN -/.)
200: 1?.?8 >=<.1:
200< 21.?8 13:=.>
200= 2=.11 21?3.82
200> 2>.=: 2=<=.32
2008 30.?2 :2?0.0<
I!T#%P%#TATIO!>
If @e look at the alue of correlation @e hae found !then it can #e clearly seen that
there is a 7e high degree correlation #et@een the eEuity & de#t #een used in the
firm% As if eEuity increases then the eEuity also increases%
T:T#ST >
t*test is a small sam"le test% It @as deelo"ed #y 9illiam Iosset in +8.B% /e
"u#lished this test under the "en name of G:tudentH% Therefore! it is kno@n as
:tudentDs t*test%
A((+iations of t-test&
0est of 4%(ot4esis a$o#t t4e (o(#+ation mean.
0est of 4%(ot4esis a$o#t t4e differene $et"een t4e t"o means in ase of
inde(endent sam(+es.
0est of 4%(ot4esis a$o#t t4e differene $et"een t4e t"o means in ase of
de(endent sam(+es.
0est of 4%(ot4esis a$o#t an o$ser)ed oeffiient of orre+ation.
0ES0 OF @68O0@ESIS ABO'0 0@E 8O8'.A0ION MEAN
Ae #se t-test and t4e a((ro(riate test statisti t to #sed is &

@68O0@ESIS 0ES0IND
/.6There is no significant difference #et@een 0?T & 0AT
/+6 There is a significant difference #et@een 0?T & 0AT%
I!T#%P%#TATIO!>
If @e look at the alue of significance & com"are it to the mean that is the calculated
alue then @e find that mean is greater than sig% leel then it can #e inter"reted that
the null hy"othesis is to #e rejected @hich "roes that there is a significant difference
#et@een 0?T & 0AT%
MU"TIP"# %#&%#SSIO!
D,F@
>
$A%IAB"#S>
I!D#P#!D#!T>D#BT<#)UITY
D#P#!D#!T>#PS
(YPOT(#SIS T#STI!&>
/.6There is no significant im"act of <e#t & $Euity on $0:%
/+6There is a significant im"act of <e#t & $Euity on $0:%
I!T#%P%#TATIO!> I!T#%P%#TATIO!>
In the a#oe com"uter generated ta#le of model summary !@e consider the alue of R
:Euare to kno@ the leel to @hich $Euity & <e#t effect the alue of $arning 0er
:hare in last four year & the com"uter generated alue is %.4. @hich sho@s that u"to
4N of fluctuations take "lace due to the alues of de#t & $Euity%
A!A"YTIA" TOO"S
FJ
>
TOO"S APP"I#D
MA!O$A
M %#"IAB"ITY A!A"YSIS
A!O$A>
Caria$+es& Inde(endent Caria$+e ,EB0!EF'I06
,e(endent Caria$+e ,8S
@68O0@ESIS 0ES0IND&
/.6There is no significant im"act of <e#t & $Euity on <0:%
/+6 There is a significant im"act of <e#t & $Euity on <0:%
I!T#%P%#TATIO!>
If @e look at the alue of significance leel then it is more than %.- so @hich "roes
that there is a no significant im"act of <e#t & $Euity on <0: as /. ('ull /y"othesis)
is acce"ted% As on the other hand the calculated alue is lo@er than ta#le alue% :o!
the alternate hy"othesis is rejected%
$aria0les>
Inde(endent Caria$+e ,EB0!EF'I06
,e(endent Caria$+e E8S
@68O0@ESIS 0ES0IND
/.6There is no significant im"act of <e#t & $Euity on $0:
/+6 There is a significant im"act of <e#t & $Euity on $0:%
I!T#%P%#TATIO!>
If @e look at the alue of significance leel then it is more than %.- so @hich "roes
that there is a no significant im"act of <e#t on $0: as /. ('ull /y"othesis) is
acce"ted% As on the other hand the calculated alue is lo@er than ta#le alue% :o! the
alternate hy"othesis is rejected%
%#"IAB"ITY A!A"YSIS>

Reliability Statistics
Cronbach'sAlpha N of Items
.008 5
I!T#%P%#TATIO!>
If @e look at the alue of Cronbach'sAlpha then it is lesser than %.- so @hich "roes that
the study of the factors & alues is relia#le%
%ATIO A!A"YSIS
G,FF
>
A#solute figures e("ressed in monetary terms in financial statements #y themseles
are meaningless% These figures often do not coney much meaning unless e("ressed
in relation to other figures%
M#A!I!& OF %ATIO>
Relationshi" #et@een t@o figures e("ressed in arithmetical terms is called a ratio%
"ASSIFIATIO! OF %ATIOS>
*
"I)UIDITY , SO"$#!Y %ATIO
*
MA!A&#M#!T #FFII#!Y %ATIO
FN
*
I!$#STM#!T $A"UATIO! %ATIO
22
*
P%OFITABI"ITY %ATIO
*
AS( F"O+ I!DIATO% %ATIO
"I)UIDITY , SO"$#!Y %ATIO
F
>
4 D#BT #)UITY %ATIO>
Standard %atio F>F
This ratio esta#lishes relationshi" #et@een the shareholderDs fund & de#t funds%
,E/K+on5 0erm ,e$tOS4are4o+derLs f#nd
6EA/ ,E/
MarD.4 +%,1
MarD.- +%1.
MarD.A 2%+1
MarD.1 +%B8
MarD.B 2%4.
I!T#%P%#TATIO!>
If @e make a com"arison of these ratios inde"endently @ith the standard ratio it can
#e concluded that from MarD.4 to MarD.A ratio has gone u" #ut then again decline in
MarD.1 #ut again goes u" in MarD.B% If @e make a com"arison among all these ratios
then Mar!.4 is the #est #ut still these are not e(actly eEual to +6+%:o itDld #e
maintained to this leel%
4 P%OP%I#TO%Y %ATIO>
This ratio indicates the "ro"ortion of total funds "roided #y o@ners
or shareholders%
Pro/rietar2 ratioO #1uit2P #1uit2QDe0t

6EA/ 8/ (IN V)
MarD.4 2%-4
MarD.- +%A+
MarD.A +%+B
MarD.1 +%.,
MarD.B .%12
I!T#%P%#TATIO!>
ID#A" P%OP%I#TA%Y %ATIOO CCL or more than that3
A higher "ro"rietary ratio is an indicator of sound financial "osition% It means firm is
less de"endent on e(ternal sources of finance% &o@er "ro"rietary ratio is a danger
signal for long term lenders as it indicates a lo@er margin of safety aaila#le to them%
As @e can see that there is a huge difference #et@een the ideal & actual so there is
higher RI:K%
4 D#BT TO TOTA" FU!D %ATIO>
In this ratio! de#t is e("ressed in relation to total funds! i%e% #oth eEuity and de#t%
De0t to total fund ratioO De0tPDe0tQ #1uit2
6EA/ ,0F/ (IN V)
MarD.4 81%4-
MarD.- 8B%.,
MarD.A 8B%B-
MarD.1 8B%81
MarD.B 88%2B
I!T#%P%#TATIO!>
ID#A" D#BT TO TOTA" FU!D %ATIOO JN L or less
The "ro"ortion of long term loans should not #e more than A1N of total funds% A
higher ratio than this is generally treated as indicator of risky financial "osition from
the long term "oint of ie@! #ecause it means that the firm de"ends too much u"on
outside loans from its e(istence%
The lo@er the ratio! the #etter it is from the long term solency "oint of ie@% /ere @e
can see that the ratio sho@s higher risk%
4 U%%#!T %ATIO>
It is the most common and "o"ular measure of*studying the liEuidity
of a firm% It is calculated as follo@s6 *
O urrent Assets P urrent "ia0ilities
The total current assets include those assets @hich are in form of cash! near cash or
conerti#le into cash @ithin a "eriod of one year% The term current assets also include
"re"aid e("enses and short*term inestments! if any% The total current lia#ilities
include all ty"es of lia#ilities @hich @ill mature for "ayment @ith in a "eriod of one
year like! #ank oerdraft! #ills "aya#le! trade creditors! outstanding e("enses! etc%
)$AR: CR
MarD.4 .%1,
MarD.- +%.4
MarD.A +%.,
MarD.1 .%84
MarD.B +%.1
I!T#%P%#TATIO!>
I,EA. -'//EN0 /A0IO& 2&1
The higher the ratio! the #etter it is! #ecause the firm @ill #e a#le to "ay its current
lia#ilities more easily% /ere! current ratio is less than the ideal ratio & It indicates lack
of liEuidity% It Ds not a good sign #ut if @e com"are then situation in 2..B is the #est
one%

4 )UI. %ATIO>
9hile calculating Euick ratio @e need to calculate liEuid assets @hich includes6
&iEuid assetsXCurrent Assets*stock*"re"aid e("enses
F#i2 /atio K.iH#id AssetsO-#rrent .ia$i+ities
6EA/ F'I-J /A0IO
MarD.4 .%4B
MarD.- .%1,
MarD.A .%BA
MarD.1 .%A.
MarD.B .%1+
I!T#%P%#TATIO!>
Muick ratio is a more rigorous test of liEuidity than the current ratio%
ID#A" )UI. %ATIO> F> F
If it is more! it is considered to #e #etter% /ere! @e conclude that the liEuid ratio has
declined from 2..A to 2..B% ?ut It is less than the ideal liEuid ratio% It means liEuidity
"osition of the firm is not good%
MA!A&#M#!T #FFII#!Y %ATIO>
4 D#BTO% TU%!O$#% %ATIO>
A4i+e a+#+atin5 ,e$tors 0#rno)er /atio "e need to a+#+ate&
Sa+es and A)era5e de$tor
A)era5e ,e$torKO(enin5 S -+osin5 de$torsO2
,0/ KNet -redit Sa+esOA)era5e de$tors
6EA/ ,0/
MarD.4 +A%BB
MarD.- +,%-,
MarD.A 8%,,
MarD.1 +.%41
MarD.B 1%A-
I!T#%P%#TATIO!>
/igher the ratio! the #etter it is! since it indicates that amount from de#tors is #eing
collected more Euickly%
A lo@er de#tors turnoer ratio @ill indicate the inefficient credit sales "olicy of the
management% It means that credit sales hae #een made to customers @ho do not
desere much credit% /ere! de#tors turnoer ratio of the firm has decreased no@ from
last year% It indicates that credit sales "olicy of the firm is #ecoming less efficient &
collected @ith lo@ s"eed%
4 I!$#!TO%Y TU%!O$#% %ATIO>
This is the ratio of cost of goods sold to aerage inentory%
A)era5e In)entor%K-+osin5 Sto2 S O(enin5 storeO2
I0/K -ost of Doods So+dOA)era5e In)entor%
6EA/ I0/
MarD.4 -%AB
MarD.- A%+B
MarD.A 4%AA
MarD.1 4%A-
MarD.B 2%11
I!T#%P%#TATIO! >
/igher the ratio! #etter it is! since it indicates that stock is selling Euickly% In a
#usiness! @here stock turnoer ratio is high! goods can #e sold at lo@ margin of "rofit
& een then "rofita#ility may #e Euite high%
A lo@ stock turnoer ratio indicates that stock does not sell Euickly & remains lying
in the godo@n for Euite a long time%
/ere! fall in stock turnoer ratio as com"ared to the "reious year indicates that there
is fall in the efficiency of stock #eing conerted into cash% $en then! the ratio is
satisfactory! #ut it needs to #e im"roed%
4 TOTA" ASS#T TO D#BT %ATIO>
This ratio is a ariation of de#t eEuity ratio & gies the same indication as de#t eEuity
ratio%
Total assets to de0t ratioO De0tPTotal assets
6EA/ 0A,/
MarD.4 +%1,
MarD.- +%A.
MarD.A +%4A
MarD.1 +%-,
MarD.B +%4,
I!T#%P%#TATIO! >
ID#A" %ATIO> less than KEL is satisfa4tor23
The lo@er the ratio! the #etter it is from long term solency "oint of ie@% /igher ratio
indicates risky financial "osition #ecause it means firm de"ends too much u"on
outside loans & a #urden of "ayment of large amount of interest charged "eriodically%
As @e can see it is al@ays greater than +.. N so it indicates the #ad "osition of the
firm%
4 TOTA" ASS#T TU%!O$#% %ATIO>
It s"ecifies the relation #et@een Cost >f Iood :old & Total asset o@ned #y the firm %
0A0/K-ost Of Dood So+d O0ota+ asset
6EA/ 0A0/
MarD.4 +%B,
MarD.- +%48
MarD.A .%88
MarD.1 +%2.
MarD.B .%B,
I!T#%P%#TATIO!>
This ratio is of "articular im"ortance in manufacturing concerns @here the inestment
in fi(ed assets is Euite high% This ratio reeals ho@ efficiently the total assets are #eing
utiliFed% Com"ared @ith "reious year! if there is increase in this ratio! it @ill indicate
that there is #etter utiliFation of fi(ed assets%
/ere! decrease in total assets turnoer ratio as com"ared to the "ast indicates the "oor
utiliFation of total assets%
4 FI=#D ASS#T TU%!O$#% %ATIO>
It s"ecifies the relation #et@een Cost >f Iood :old & 5i(ed asset o@ned #y the firm %
FA0/K-ost Of Dood So+d OFi;ed asset
6EA/ FA0/
MarD.4 +%8-
MarD.- 2%+.
MarD.A +%-,
MarD.1 +%-B
MarD.B +%22
I!T#%P%#TATIO!>
This ratio is of "articular im"ortance in manufacturing concerns @here the inestment
in fi(ed assets is Euite high% This ratio reeals ho@ efficiently the fi(ed assets are
#eing utiliFed% Com"ared @ith "reious year! if there is increase in this ratio! it @ill
indicate that there is #etter utiliFation of fi(ed assets%
/ere! decrease in fi(ed assets turnoer ratio as com"ared to the "ast indicates the
"oor utiliFation of fi(ed assets%
4 I!$#STM#!T TU%!O$#% %ATIO>
It s"ecifies the role of total inestment in #usiness in cost of goods sold%
I0/K-ost of 5ood So+dOA)era5e In)estment
A)era5e In)estmentK O(enin5 S -+osin5 In)estmentO2
6EA/ I0/
MarD.4 A%1
MarD.- 1%.1
MarD.A -%A2
MarD.1 -%2A
MarD.B 2%11
I!T#%P%#TATIO!>
This ratio is of "articular im"ortance in manufacturing concerns @here the inestment
is Euite high% This ratio reeals ho@ efficiently the inestments are #eing utiliFed%
Com"ared @ith "reious year! if there is decrease in this ratio! it @ill indicate that
there is "oor utiliFation of inestment%
/ere! decrease in inestment turnoer ratio as com"ared to the "ast
indicates the "oor utiliFation of fi(ed inestment%
I!$#STM#!T $A"UATIO! %ATIO>
4 FA# $A"U# OF #)UITY >
It is the face alue of eEuity share of ;:&%
6EA/ FC
MarD.4 2%..
MarD.- 2%..
MarD.A 2%..
MarD.1 2%..
MarD.B 2%..
4 DI$ID#!D P#% S(A%#>
It is the relation #et@een diidend distri#uted & total no% of shares issued #y the firm%
,8SK ,i)idend ,istri$#tedONo. of S4ares
6EA/ ,8S
MarD.4 2%..
MarD.- 2%4.
MarD.A +%A.
MarD.1 +%A.
MarD.B 2%..
I!T#%P%#TATIO!>
This ratio is of "articular im"ortance in manufacturing concerns @here o@ners fund
has #een used% It hel" to maintain an image in the mind of inestors & also contri#ute
to alue of the firm% As it can #e seen that it has come do@n from 2..- #ut im"roed
in last year if it is com"ared to .1% ?ut still it needs to #e im"roed for the long term
#enefits of the firm%
4 OP#%ATI!& P%OFIT P#% S(A%#>
O88SKO(eratin5 (rofitONo. of S4ares
6EA/ O88S
MarD.4 4.%.,
MarD.- 4A%,B
MarD.A ,2%2.
MarD.1 A+%+.
MarD.B -.%B1
I!T#%P%#TATIO!>
This ratio is of "articular im"ortance in manufacturing concerns @here o@ners fund
has #een used% It hel" to maintain an image in the mind of inestors & also contri#ute
to alue of the firm% As it can #e seen that it has come do@n from 2..1 #ut im"roed
in last year if it is com"ared to .4!.-%.A% ?ut still it needs to #e im"roed for the long
term #enefits of the firm%
4 !#T OP#%ATI!& P%OFIT P#% S(A%#>
NO88SKNet O(eratin5 8rofitONo. of S4ares
6EA/ NO88S
MarD.4 24+%8.
MarD.- 2B8%B-
MarD.A 24+%8,
MarD.1 ,-2%48
MarD.B ,,.%2A
I!T#%P%#TATIO!>
This ratio is of "articular im"ortance in manufacturing concerns @here o@ners fund
has #een used% It hel" to maintain an image in the mind of inestors & also contri#ute
to alue of the firm% As it can #e seen that it has come do@n from 2..- #ut im"roed
in last year if it is com"ared to .1% ?ut still it needs to #e im"roed for the long term
#enefits of the firm%
4 F%## %#S#%$#S P#% S(A%#>
F/8SKFree /eser)esONo. of S4ares
6EA/ F/8S
MarD.4 -.%AB
MarD.- A1%++
MarD.A A8%,A
MarD.1 8+%-4
MarD.B +.-%+B
I!T#%P%#TATIO!>
This ratio is of "articular im"ortance in manufacturing concerns @here reseres has
#een used% It hel"s to "roide funds in the time of need & also hel"s to make ne@
"rojects% In the of contingencies the firm need not to get funds from the e(ternal
sources% The amount of free reseres are going u" & u" ! @hich is good for the firmDs
long term #enefits%
4 BO!US I! #)UITY APITA">
6EA/ BE-
MarD.4 ******
MarD.- ******
MarD.A +8%1,
MarD.1 +B%A4
MarD.B +A%AA
I!T#%P%#TATIO!>
This ratio is of "articular im"ortance in manufacturing concerns @here $Euity has
#een used% ?onus refers to amount "aid to the shareholders other than <iidend% It
hel"s to make the shareholders ha""y% As it can #e seen that it has #een decreased #ut
it de"ends u"on the "olicies of the firm%
P%OFITABI"ITY %ATIO>
4 OP#%ATI!& P%OFIT MA%&I! (L) >
O8MK O(eratin5 8rofitONet Sa+esT100
6EA/ O8M
MarD.4 +A%24
MarD.- +A%..
MarD.A +,%,.
MarD.1 +1%,,
MarD.B +-%4.
I!T#%P%#TATIO!>
This ratio is of "articular im"ortance in manufacturing concerns of all ty"es% As it can
#e seen that situation has #een im"roed .4 to .1
#ut decreased in .B % There has #een higher fluctuations in all the years%
4 P%OFIT B#FO%# TA= , I!T#%#ST MA%&I! (L)>
8B0I/K8rofit Before Int. B 0a;O Net Sa+esT100
6EA/ 8B0I
MarD.4 ++%BA
MarD.- ++%1-
MarD.A B%B1
MarD.1 +2%A4
MarD.B +.%2-
I!T#%P%#TATIO!>
This ratio is of "articular im"ortance in manufacturing concerns of all ty"es% As it can
#e seen that situation has #een im"roed .4 to .1
#ut decreased in .B % There has #een higher fluctuations in all the years%
4 &%OSS P%OFIT MA%&I! (L)>
D8MKDross (rofitONet Sa+esT100
6EA/ D8M
MarD.4 +-%A4
MarD.- +-%4.
MarD.A +2%.4
MarD.1 +A%.+
MarD.B +.%4-
I!T#%P%#TATIO!>
This ratio is of "articular im"ortance in manufacturing concerns of all ty"es% As it can
#e seen that situation has #een im"roed .4 to .1
#ut decreased in .B % There has #een higher fluctuations in all the years%
4 AS( P%OFIT MA%&I! (L)>
6EA/ -8M
MarD.4 +.%81
MarD.- ++%A8
MarD.A 8%24
MarD.1 ++%--
MarD.B +.%+-
I!T#%P%#TATIO!>
This ratio is of "articular im"ortance in manufacturing concerns of all ty"es% As it can
#e seen that situation has #een im"roed .4 to .1
#ut decreased in .B % There has #een higher fluctuations in all the years%
4 !#T P%OFIT MA%&I! (L)>
N8MKNet 8rofitO Net Sa+esT100
6EA/ N8M
MarD.4 A%A4
MarD.- 1%A,
MarD.A 4%8B
MarD.1 1%2.
MarD.B 4%A,
I!T#%P%#TATIO!>
This ratio is of "articular im"ortance in manufacturing concerns of all ty"es% As it can
#e seen that situation has #een im"roed .4 to .-
#ut decreased in .B % There has #een higher fluctuations in all the years%
4 %#TU%! O! APITA" #MP"OY#D (L)>
/O-KNet 8rofit $efore Int. B 0a;OA)era5e -a(ita+ Em(+o%edT100
A)era5e -a(ita+ em(+o%edKO(enin5 S-+osin5 a(ita+O2
6EA/ /O-
MarD.4 2A%++
MarD.- +8%,1
MarD.A +.%2
MarD.1 +1%B,
MarD.B +.%,-
I!T#%P%#TATIO!>
It measures ho@ efficiently the ca"ital em"loyed in the #usiness is #eing used% The
higher the ratio! the more efficient is the use of ca"ital em"loyed%
/ere! fall in the return on inestment as com"ared to the "reious year indicates that
the ca"ital em"loyed in the firm is not used "ro"erly%
4 %#TU%! O! ASS#TS (L)>
6EA/ /OA
MarD.4 --%-1
MarD.- 1+%8B
MarD.A 11%+-
MarD.1 +.+%2-
MarD.B ++4%A4
I!T#%P%#TATIO!>
It measures ho@ efficiently the assets em"loyed in the #usiness is #eing used% The
higher the ratio! the more efficient is the use of assets em"loyed%
/ere! increase in the return on inestment as com"ared to the last years indicates that
the assets em"loyed in the firm is used "ro"erly%
AS( F"O+ I!DIATO% %ATIO>
4 DI$ID#!D PAYOUT %ATIO>
,8SK0ota+ ,i)idend (aid to EH#it% @o+derONet (rofit After 0a; B InterestT100
6EA/ ,8/
MarD.4 +,%,-
MarD.- +2%+B
MarD.A +4%8+
MarD.1 B%BB
MarD.B +-%14
I!T#%P%#TATIO!>
0rofits remaining after "ayment of ta( and "reference diidend are aaila#le to eEuity
shareholders% ?ut all of these are not distri#uted among them as diidend% >ut of these
"rofits! a "ortion is retained in the #usiness and the remaining is distri#uted among
eEuity shareholders as diidend% <0: is the diidend distri#uted to eEuity
shareholders diided #y the num#er of eEuity shares% /ere! there is fall in the diidend
"er share from .A to .1 #ut it im"roed in .B% It indicates good "osition%
4 #A%!I!& %#T#!TIO! %ATIO>
#%%OF:DP%(Di5idend Pa2out %atio)
6EA/ E//
MarD.4 B8%.-
MarD.- B1%18
MarD.A B-%,,
MarD.1 8+%,8
MarD.B BA%2-
I!T#%P%#TATIO!>
0rofits remaining after "ayment of ta( and "reference diidend are aaila#le to eEuity
shareholders% ?ut all of these are not distri#uted among them as diidend% >ut of these
"rofits! a "ortion is retained in the #usiness and the remaining is distri#uted among
eEuity shareholders as diidend% There has #een an increase from .4 to .1 #ut there is
fall in .B from .1%
4 #A%!I!& P#% S(A%#>
E8SK Net 8rofit After 0a; B (referene ,i)idendONo. of EH#it% S4ares
6EA/ E8S
MarD.4 +A%4+
MarD.- 22%,1
MarD.A +2%2,
MarD.1 2-%82
MarD.B +-%A.
I!T#%P%#TATIO!>
It refers to the net earning "er share% 'et 0rofits remaining after "ayment of ta( and
"reference diidend are aaila#le to eEuity shareholders% ?ut all of these are not
distri#uted among them as diidend% >ut of these "rofits! a "ortion is retained in the
#usiness and the remaining is distri#uted among eEuity shareholders as diidend%
There has #een an increase from .4 to .1 #ut there is fall in .B from .B% ?ut situation
needs to #e im"roed %
%
+O%.I!& APITA" MA!A&#M#!T
C
>
T2/es of 7or8ing 4a/ital
The ty"e! kinds of a thing are de"ending u"on the different utiliFation of @orking
ca"ital% It "rominently @orks in the direction of "erforming different functions in
different situation and in the conte(t of diergent aria#les% :o follo@ing are some
im"ortant ty"es of @orking ca"ital%
1) Net Aor2in5 -a(ita+& Term 'et @orking ca"ital can #e define in t@o @ay It is the
difference #et@een current assets and current lia#ilities%
Amount left for o"erational reEuirement%
2) Dross Aor2in5 -a(ita+& Iross @orking ca"ital means the total current assets%
3) 8ermanent Aor2in5 -a(ita+& It is the minimum amount of the current assets!
@hich are needs to conduct the #usiness een during the dullest season of the year%
This amount aries from year to year de"ending u"on the gro@th of a com"any and
stage of the #usiness cycle in @hich it o"erates% It is the amount of funds reEuired to
"roduce the goods and serices! @hich are necessary to satisfy demand at a "articular
"oint% It re"resents the current assets! @hich are reEuired on a continuing #asis oer
the year% It is maintain as the medium to carry on o"eration at any time% 0ermanent
@orking ca"ital has follo@ing features6
It is +assified on t4e $asis of t4e time fator.
Its si9e inrease "it4 t4e 5ro"t4 of t4e $#siness.
It constantly shifted from one assets o another and continues to remain in
0em(orar% Aor2in5 -a(ita+&
It re"resents the additional assets! @hich are reEuired at different times during the
o"erating year% :easonal @orking ca"ital is the additional amount of current assets
"articularly cash! receia#les! and inentory @hich is reEuired during the more actie
#usiness seasons of the year% It is the tem"orary inestment in the current assets and
"ossesses he follo@ing features6 It is not al@ays gainfully em"loyed! though is May
also shift from one asset to another as "ermanent @orking ca"ital does% It is
"articularly suited to #usiness of seasonal on cyclical nature%
Ba+ane S4eet Aor2in5 -a(ita+6
The #alance sheet @orking ca"ital is one! @hich is calculated from the items
a""earing in the #alance sheet% Iross @orking ca"ital! @hich is re"resented #y the
e(cess of current assets oer current lia#ilities! is e(am"le of the #alance sheet
@orking ca"ital%
-as4 Aor2in5 -a(ita+&
It is one! @hich is calculated from the items a""earing in he 0rofit and &oss Account%
It sho@s the real flo@ of money or alue at a "articular time and considered to #e
most realistic a""roach in @orking ca"ital management% It is the #asic of he o"eration
cycle conce"t! @hich has assumed a great im"ortance in financial management in
recent year% The reason is that the cash @orking ca"ital indicates he adeEuacy of he
cash flo@ @hich is an essential "re reEuisite of a #usiness%
Ne5ati)e Aor2in5 -a(ita+&
It emerges @hen current lia#ilities e(ceeds current assets! such a situation is
a#solutely theoretical and occurs @hen a firm is nearing a crisis of some magnitude%
OMPO!#!TS OF +O%.I!& APITA">
-#rrent Assets&
Sto2 of /a" Materia+ (for*mont4 ons#m(tion)
Aor2 In 8roess (for*Mont4)
/a" Materia+s
,iret .a$o#r
O)er4eads
Sto2 of Finis4ed Doods (for*mont4 sa+es)
S#ndr% ,e$tors or /eei)a$+es (for*mont4 sa+es)
8a%ments in Ad)ane (if an%)
Ba+ane of -as4 (reH#ired to meet da%-to-da% E;(enses)
An% Ot4er (if an%)
&ess6 -#rrent .ia$i+ities&
-reditors (for*mont4 (#r4ase of ra" materia+s)
O#tstandin5 E;(enses (for mont4)
Ot4ers (if an%)
Aor2in5 -a(ita+ (-A W -.)
Add& 8ro)isionO Mar5in for ontin5enies
Net Aor2in5 -a(ita+ /eH#ired
Amo#nt
******
******
******
******
******
******
******
******
******
******
*********
******
**********
0a$+e I - Statement of Aor2in5 -a(ita+ /eH#irement
8arti#+ars MarD.A
Rs%(in lacs%)
MarD.1
Rs%(in lacs%)
MarD.B
Rs%(in lacs%)
A) -#rrent Assets& -
In)entories
S#ndr% ,e$tors
-as4 B Ban2
.oans and Ad)anes
0ota+ -#rrent Assets&
B) -#rrent .ia$i+ities&
.ia$i+ities
8ro)isions
0ota+ -#rrent
.ia$i+it%&
Net Aor2in5 -a(ita+
/eH#irement(A-B)
=8!>3<.8:
3<!0:2.<<
1?!>0>.0>
:8!?:3.<8
1>2!:2?.0:
?=!33=.<0
1>!<<3.?<

113!8?0.:<

<8!<38.<?
10=!?>2.??
<8!0:1.3?
1?!=23.=?
=<!30<.>1
2:?!?:3.>8
1>>!8?3.0:
21!133.1>
1??!02=.21

<0!?1>.<>
21?!:=:.?8
><!3=<.=3
>:!031.<<
8>!828.==
:<=!=?0.82
2<3!?80.:8
28!><<.1>
282!>3<.=<
1>3!?<<.1>
Ta0le II : Statement of hanges in +or8ing a/ital
Increase <ecrease
A) Current Assets6
*Inentories
:undry <e#tors
Cash & ?ank
&oans & Adances

0ota+
?) Current &ia#ilities6
&ia#ilities
0roisions
0ota+
Aor2in5 -a(ita+(A-B)
-!.A2!.B4!BB,%-,
,!48+!,.+!8A2%+A
88!181!+4B%--
A.-!AA-!,A2%,.
?!2<8!8:?!3<=.<:
+!-2B!+.A!88-%A-

1!24-!814%..
1!<3<!3<2!?=?.=<
>!>23!:?=!38=.8?
2!BB1!+.,!4A4%A+
2!8+8!812!+1,%BB
2A!-++!-+1%-A
1-+!B.2!4B2%A+
=!<8<!38?!=38.==
+!4B2!+,8!2A.%12
B!AA8!,,4%..
1!:?0!808!<?:.>2
<!0?:!<81!0:3.?:
+4A!+,1!+2.
+!42,!,A.
2!+14!8B+!4+8
-1+!,28!1B8
1,!2B-!A,.%88
4-!8A1!1,-
2!=28!?1<!3:3
"IMITATIO! OF STUDY>
These are fe@ limitations @hich I face in organiFation during data collectionG-
0ime -onstraints&
Time @as only 42 days @hich @as ery short for the study% ?ut still all efforts to the
#est "ossi#le e(tent hae #een made to collect the data%
-o)era5e -onstraints&
It @as not "ossi#le to coer all the em"loyees in the organiFation so I hae selected -.
as sam"le for my study%
,ata o++etion -onstraints&
The data used is #oth "rimary and secondary in natureY this "oses the constraints on
the alidity and relia#ility of the data%
.imited #se&-
The conclusions and inferences dra@n are a""lica#le for this "articular organiFation
only%
STUDY OF OT(#% D#PA%TM#!TS>
(UMA! %#SOU%# D#PA%TM#!T
?E
>
(@ead of t4e de(t& - Mr. S#ni+ Ja(oor)

;:& #eliees in ):S(# i3e )ualit2< Safet2 and (ealth2 #n5ironment% /uman needed
desire! e("ectation etc% are changing constantly #ecause of the change in enironment
condition% This ha""ens mainly #ecause of the "resence of these factors of influence
heart! #rain & mind% /uman #eings needed to #e maintained at eery cost% They are
considered as through indiiduals @hich aried characteristics! attitude etc
Management is to GMA'AI$ * M$' 3 TACT5U&&)H% Though there are
other major organiFational function such as financial management! "roduction
management! material & marketing management etc% it is undou#tedly the
management of the human resources that "roides all other organiFational function%
In short human resources de"artment is that "art of the total management of an
organiFation @hich s"ecifically deals @ith human resources in res"ect of6
Their /ro4urement
Their De5elo/ment in terms of s8ills< 8no7ledge , attitude
Their Moti5ation to7ards the attainment of organiBational o06e4ti5e
02 4reating and maintaining an organiBational limit 4ondu4i5e to
su4h de5elo/ment3
FU!TIO! OF (UMA! %#SOU%#S D#PA%TM#!T #MP"OYM#!T
- To 4ulti5ate , maintain ade1uate sour4e of la0or su//l2
- To get information regarding 6o0 re1uirements , /re5ailing 7age rates3
- To hire through the effe4ti5e use of a//li4ation 0lan8s< tests< /h2si4al
e;aminations< inter5ie7s , 4he48ing referen4es< re4ords< su/er5isor*s
a//ro5als and 4am/us /la4ements3
- To maintain 7ords of /ros/e4ti5e em/lo2ers< /resent em/lo2ers , former
em/lo2ees3
- To introdu4e the ne7 em/lo2ee to 4om/an2 /oli4ies so that he P she 4an ad6ust
in the ne7 en5ironment 5er2 soon3

O%I#!TATIO! , I!DUTIO!
This is the attractie "rogram conducted #y the /R <e"tt% ;:& "roides a t@o year
induction "rogramme to the ne@ recruited em"loyees! haing no @ork e("erience%
And! a si( months induction "rogramme is for those one @ho has @ork e("erience%
P%OMOTIO! ,T%A!SF#%S
- To aid the esta0lishment of lines of /romotion , to follo7 u/ as for as /ossi0le
in order to see that 4om/an2 /oli4ies are follo7ed3
- To aid in the esta0lishment of 4om/an2 /oli4ies regarding transfer for the
4on5enien4e of the 4om/an2 , em/lo2ee3
- To aid the formation of the 4om/an2 /oli4ies regarding termination as 7ell as
res/iration initiated 02 the em/lo2ee3
- To remo5e as mu4h as /ossi0le the 4ause for dis4harges3
T%AI!I!&
- To aid in the formulation of /oli42 go5erning training of ne7 em/lo2ees3
- To /ro5ide for training in safet2 , 4om/an2 /oli4ies3
- To 4o:o/erate in the /re/aration of a s/e4ial annual re/ort for em/lo2ee3
+A&#S , OT(#% I!#!TI$#S
- To 4olla0orate 7ith others or 0e res/onsi0le for 7age /lan3
- To 7rite 6o0 s/e4ifi4ation , e5aluate all 6o0s3
- To /arti4i/ation in the formation of /oli4ies go5erning /a2ment for suggestions<
/ension /lans /rofit:sharing /rograms< mutual sa5ing /rogram< insuran4e< loan
to em/lo2ees3
S#%$I# ATI$ITI#S
- To su/er5ise restaurant , re4reation fa4ilities3
- To /ro5ide 4ounseling 4on4erning /ersonal affairs3
- To /u0lish the /lant magaBine3
O""#TI$# BA%&AI!I!& , #MP"OY##S %#P%#S#!TATIO!
- To 4ondu4t union negotiation , to 4o:o/erate 7ith union re/resentati5es3
- To 4o:o/erate neither 7ith an em/lo2ers 6o0 7hi4h is nor on union le5el3
- To /arti4i/ate a4ti5el2 in handling grie5an4es3
MA%.#TI!& D#PA%TM#!T
((ead of the De/tt >: Mr3 Pan8a6 Aggar7al)
The de"artment "erforms many of the tasks "ro"erly% ;:& &td% has eight domestic
#ranches in India% These are Chennai! ?anglore! Mum#ai! ?aroda! 0une! /ydera#ad!
<elhi and Kolkata% And has the seen international #ranches% These are Kietnam!
China! Russia! Turkey! Italy! :"ain and U%:%A%
The de"artment takes care of the "erformance as @ell as conformance Euality of the
material% The stainless steel has many of the major a""lications%
- Po7er Se4tor
- Indian %ail7a2s
- Indian &o5ernment Mints
- Blades
Also! it is useful in industrial a""lications 6*
- Food Pro4essing
- lean %ooms
- Pharma4euti4als
- Ar4hite4ture
'o@*a*days! stainless steel is ery much useful in daily a""lications i%e utensils and
grealings%
FI!DI!&S>
There has #een a "ositie im"act of <e#t & $Euity oer $0: & <0: if other factors
are taken Constant%
The Com"any should reduce the "ro"ortion of <e#t to reduce the 5inancial Risk%
?ut on the >ther hand it sho@s that they hae a good re"utation in the Market as they
get &oan ery easily%
SU&&#STIO!S , %#OMM#!DATIO!S>
5irm is largely using outsiderDs funds @hich is undou#tedly a good "olicy for ta(
saing #ut it leaes lesser sco"e for the firm to raise its funds through shares as it
increases the risk "erce"tion in the minds of shareholders%
>n the other hand the ratio analysis does not dra@ a satisfactory 0ictures of ;:& &td% %
The leel of Risk is Euite higher #ecause of more use of de#t%
It has used only long term sources in the #usiness #ut it can also use some short term
sources for "roiding funds%
It has also made inestment outside the #usiness @hich is good for the $arning of
#usiness% ?ut there should #e lesser risk% The main suggestions are as follo@s6
<iersify the "roduct range6 ;:& should diersify the "roduct range% As ;:& is
"roducing the ariety of "roducts #ut it is still less as com"are to its com"etitor TATA
steel% :o its share in market is less% :o to increase the market share ;:& should
diersify its "roduct range%
Reduce the de"endency on de#t6 ;:& should reduce the de"endency on de#t% As @e
hae seen that ;:& is using 88%2BN de#t in its ca"ital structure @hich leads to increase
the "rofita#ility of shareholder at a time #ut at time of contingencies it can #e
disastrous%
Im"roe the salary structure6 ;:& #asic salary structure needs an im"roement%
After coming in contact @ith the staff of ;:& I come to kno@ that there salary
structure is less% :o they are not satisfied @ith there salary and that reason they are not
motiated%
O!"USIO!>
;:& &td% is gro@ing at a fast "ace as its 0roduction Ca"acity has #een increased to
12.... t"a%
The Com"any is effectiely using its resources of men! material and machinery! @hich
has led to increase in "roduction%
The statement of change in ca"ital structure sho@s higher rate of increase of increase
in the olume of de#t used % The firm has made more use of de#t @hich sho@s more
de"ends u"on the #orro@ed funds%
>n the other hand it also re"resents the good re"utation of ;:& that it it is getting
more & more &oans easily eery year for inestment%
?ut as "er the result of Ratio Analysis the situation is not satisfactory%All the ratios
are not meeting the ideal ratios! @hich is not a good sign%
?ut from the "oint of ie@ of a n shareholder it is a satisfied #ecause there is increase
in <iidend "er share @hich is a good sign%
$ery year there is increase in 5ree Reseres @hich is a ery im"ortant source for
funds "rocurement & meeting the contingencies in future @hich re"resents that they
are haing strong financial "osition for future "rojects%
;:& &td% Is using #orro@ed funds for financing its actiities rather than o@ned funds
@hich hel" in ta( saings%
;:& "roduce different kinds of "roduct in different sector%
The 0roduction "rocess in ;:& &td% is systematic #ecause of lots of testing of
mechanism%
All de"artments haing their o@n res"onsi#ilities% These de"artments are ery @ell
coordinated & each de"artment "erform its jo# in an efficient manner%
Transaction system is #ecome ery easy to all em"loyees in ;:& &td% #y using :A0
system%
BIB"IO&%AP(Y>
+% 8ande%! I.M% G5inancial ManagementH! ,
rd
edition! 'e@ <elhi! Kikas 0u#lication
/ouse 0t% &td%
2% Ma4es4"ari! 7S.N! Adanced AccountingH!4
th
edition :ultan Chand & :ons
0u#lication
,% D#(ta S4as4i.2!!HManagemenet AccountingH! -
th
edition! Kalyani 0u#lishers
4% Doe+ ,.J! GAnalysis of financial statementH! +.
th
edition! Aichal 0u#lishing
Com"any
-% ,ona+d /. -oo(er and 8ame+a S. S4ind+er! G?usiness Research MethodologyH
$ighth $ditionD Tata McIra@ /ill 0u#lishing Com"any &imited
A%Jot4ari -./%! GResearch Methodology Methods and TechniEuesH (:econd $dition)
'e@ Age International 0u#lishers
1% 1ain! !0./.! and A55ar"a+! ,r. S.-.! G:tatistics 5or M%?%AH!KK "u#lication
B% D#(ta S.8. and D#(ta M.8%! G?usiness :tatisticsH! T@elth $dition! :ultan Chand
and :ons 0u#lications
8% M#rra% /. S(ie5e+! GTheory and 0ro#lem of :tatisticsH! Third edition! Tata Mc
Ira@ /ill 0u#lication
+.%.e). Bar#4! Tata McIra@ /ill 0u#lication
++%J4an M.6. B 1ain 8.J. G5inancial ManagementH ,
rd
edition
+2%Jot4ari -./.! 2
nd
edition GResearch methodology methods & techniEuesH

'e@
Age International 0u#lishers
+,%Jot4ari -./.! 2
nd
edition GResearch methodology methods & techniEuesH 'e@
Age International 0u#lishers
+4%.#2 1. ,a)id! 7Marketing ResearchH ! Tata McIra@ /ill 0u#lication
+-%Mitta+./.J! 7Management Accounting & 5inancial ManagementH!K%K
0u#licatons
+A%Beri D.-% ! 7Marketing ResearchHTata McIra@ /ill 0u#lications
+1%-iaran Aa+s4! GKey Management RatiosH
+B%1ain 0./! G:tatistics for M?AH

K%K "u#lication
+8%J4an M.6! 1ain 8.J! GManagement AccountingH
2.%D#(ta -.B.
!
EManagement theory and "racticeH
2+%I-FAI 'ni)ersit% 8ress

1#ne 2008
22%Finania+ (+annin5 3o#rna+

Mar 200>
2,%Mar2etin5 /esear4! s#mmer 200>
24%Indian 1o#rna+ of Finane

A(ri+ 200?
2-%I-FAI /eader

Ma% 0=
2A%Finane India

,e 08
21%4tt(&OO""".;+stat.omOdemo-(a.4tm
2B%""".3s++imited.om
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,+%4tt(&OOmone%.rediff.omOmone%O3s+O(P+.3s(Qom(an%-odeK1=03002>
,2%4tt(&OO(i$.ni.inOfeat#reOfe%r?8Ofe11?8Of2>11?81.4tm+
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,-%4tt(&OO3s+.inOin)estorPfinania+(erformane.as(6
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,1%4tt(&OOm%iris.omOs4aresOom(an%Osna(S4otS4o".(4(QiodeKMA@S8IMI6
,B% Br#ner F. /o$ert! 0ata M Dra" @i++! <
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edition
,8.I-FAI -entre for mana5ement resear4
4.%?alance :heet & 0=& account of the year 2..4 & 2..B%
%

A!!#=U%#
GE
>
Balance Sheet of
JSL
------------------
- in Rs. Cr.
------------------
-
Mar '04 Mar '05 Mar '06 Mar '07 Mar '08
Sources Of Funds
Total Share Capital !.!8 ".!8 "6. "7.64 #0.!"
$%&it' Share Capital !.!8 ".!8 "6. "7.64 #0.!"
Share Application Mone' 0.00 0.00 0.00 5.4 5".6
(reference Share Capital 0.00 0.00 0.00 0.00 0.00
)eser*es 5#7."5 770.7! !8#.0 +#74.# +757.4
)e*al&ation )eser*es 0.00 0.00 0.00 0.00 0.00
Net,orth 557."# 7!".77 +00!." +46.! +840.67
Sec&re- .oans 656.5! +0"5.88 +!05.0 "+""8.!5 #+8"0.#4
/nsec&re- .oans 08.55 #"0.8" "88.8 4"7.#7 46!.7
Total 0ebt 765.4 +#46.70 "+!#.8" "+656.#" 4+"!0.05
Total .iabilities +#"".#7 "+#!.47 #+"0#.0# 4+07#."# 6+#0.7"
Mar '04 Mar '05 Mar '06 Mar '07 Mar '08
Application Of Funds
1ross 2loc3 +46.#4 +70#.84 "+!6.70 #+#"5.!7 4+"0!.0!
.ess4 Acc&m. 0epreciation !0.07 #"0.5! 4!.67 60"."8 7!7."
Net 2loc3 +""6."7 +#8#."5 +777.0# "+7"#.6! #+4.!7
Capital 5or3 in (ro6ress 85.! #4!.#4 6"8.50 +057.0! +#7#.77
In*estments #." !#.00 #0."" 88.56 !#."!
In*entories 4##.88 5"0.!8 687.#6 +06!.7# "+!4.65
S&n-r' 0ebtors 44.46 #"6.5! #50.4# 580.4 75#.66
Cash an- 2an3 2alance "".07 !.44 5.57 !0."! 7.06
Total C&rrent Assets 600.4 857.0 +05#.#6 +740.4# #+0!.#7
.oans an- A-*ances "4".48 450.67 687.## 655.85 8!#.#
7i8e- 0eposits !.70 47.## 8.50 05.!5 66!."6
Total CA+ .oans 9 A-*ances 85".5! +#55.0 +!"".! "+50"."# 4+58.!4
0effere- Cre-it 0.00 0.00 0.00 0.00 0.00
C&rrent .iabilities 8#!.77 +08.50 +"6.#! "+8!.#0 #+058.56
(ro*isions #5.84 "4."# 75.54 ".## "87.55
Total C. 9 (ro*isions 875.6 +4".7# +4#6.!# "+400.6# #+#46.
Net C&rrent Assets :"#.0" ""."8 485."6 0.60 +"#5.8#
Miscellaneo&s $8penses ".00 .6 ".04 ".# 5.88
Total Assets +#"".#7 "+#!.48 #+"0#.05 4+07#."5 6+#0.74
Contin6ent .iabilities #40.6 !6".8# +4#!.70 !68.8# "+75.05
2oo3 ;al&e <)s= 55.77 7".# 77.#0 0.4" 5.67
JSL
Capital Structure
(erio- Instr&ment ::: CA(ITA. <)s. cr=
:::
: ( A I 0 / ( :
7rom To A&thorise- Iss&e- Shares
<nos=
7ace
;al&e
Capital
"007 "008
$%&it'
Share !5 #0.!" 54584!#" " #0.!"
"006 "007
$%&it'
Share 54.! "7.64 #8"""06 " "7.64
"005 "006
$%&it'
Share 54.! "6. #055856 " "6.
"004 "005
$%&it'
Share 54.! ".!8 0!!0!844 " ".!8
"00# "004
$%&it'
Share 54.! !.!8 !!!"#"0 " !.!8
"00" "00#
$%&it'
Share 54.! 0.05 50700 0 0.05
"00 "00"
$%&it'
Share 0.! 0 700 0 0