1.

Assignment Details:-
a) Identify the listed company (TITAN COMPANY LIMITED) (NSE listed only) that
has raised funds using long term sources of finance methods. From the published
information, list the reasons for using the various long term finances by the
company and evaluate whether the financing option opted by the company is
appropriate. Also, explore the other long term sources of finance which was not
opted by the company so far and suggest which option shall be preferred which
proves to be worthful with appropriate justification. The student shall rely upon the
latest annual reports of the company (for the last 5 years).
b) The students is expected to conduct the performance analysis of the company using
the ratios as available from the reading resources with appropriate justification for
the trend. For the purpose of the analysis, the student shall use the annual results of
the company and can also use the descriptive statistics followed by OLS regression
(with ROE as dependent variable). To conduct the performance analysis of the
company, the student shall use the data for the last 5 years.
c) The student is also expected to determine the weighted average cost of capital (book
value and market value weights) using the resources available. In case, if the
necessary data is not available, the student can make the relevant assumptions. The
assumptions shall be valid and justifiable with appropriate references. The
determination of cost of each specific source of finance should be presented.
d) The student shall also analyse the capital structure of the company and its
relationship to the profitability of the company. Refer the research papers published
for the treatment of the independent variables and dependent variable (ROE). The
student shall also use OLS Regression to determine the impact of capital structure
on the profitability of the company. Also the analysis shall highlight, in detail,
which of the theories of capital structure is relevant.

e) Company = TITAN COMPANY LIMITED.

Course Outcome Mapped: CO1: To evaluate the company’s performance in line with the
objectives of the firm. CO2:To assess the relationship between long term investment decisions,
cost of capital and value of firm. CO3:To estimate the relationship between the optimal capital
structure, dividend decisions and value of firm.

Evaluation Parameters: a) Identification of long term sources from the annual reports, explain
the reasons for opting the existing sources and not opting the other sources. (10 Marks) Suggest
the appropriate sources with justification (5 marks)
b) Analyse the performance of the company using the ratios using descriptive statistics (10
marks) Analyzing the effect of leverage, liquidity, turnover, profitability and capital structure
ratios on return on equity using OLS Regression (10 Marks) c) Determining the cost of each
specific source of finance (10 marks) Determining the weighted average cost of capital (book
value and market value weights) (5 marks) d) Identify the capital structure determinants (5
marks) OLS Regression results to determine the impact of capital structure determinants on
profitability of the firm (10 marks) Link the relevant theories of capital structure and the results
(5 marks)