Project Report On: "Analysis of Capital Structure & Its Impact On Eps With Refrence To Automobile Industry"

“ANALYSIS OF CAPITAL STRUCTURE & ITS IMPACT ON EPS WITH REFRENCE TO
AUTOMOBILE INDUSTRY”
Project Report
On
“ANALYSIS OF CAPITAL STRUCTURE & ITS IMPACT ON EPS

WITH REFRENCE TO AUTOMOBILE INDUSTRY”
A report submitted to Rashtrasant Tukadoji Maharaj Nagpur University, in

partial fulfillment of the requirements for award of the degree of Bachelor of
Business Administration, Specialization in Marketing Management
Academic Session 2020-21
Submitted By:
Tanushree Patel
Under the Guidance of:

Prof. Atul Gavhane
BBA- Year III- Semester VI
Tirpude Institute of Management Education

1, Balasaheb Tirpude Marg, Civil Lines, Sadar,
Nagpur - 440001
Tirpude Institute of Management Education, Nagpur [TIME] Page No.1

CERTIFICATE
This is to certify that Tanushree Patel is a bonafide student of Tirpude Institute of

Management Education, Nagpur, and is studying Bachelor of Business Administration course
(B.B.A) –III year. she has completed her project titled “Analysis of capital structure & its
impact on EPS with refrence to Automobile Industry ”.
This project is submitted to Rashtrasant Tukdoji Maharaj Nagpur University in partial

fulfillment of academic requirements for the degree of Bachelor of Business Administration,
for the session 2020-21.
I find the work comprehensive, complete and of sufficiently high standard to warrant its
presentation.
Prof. Atul Gavhane Dr. Lalit Khullar

Guide Director
Place: Nagpur
Date:

ACKNOWLEDGEMENT
I take this opportunity to convey my gratitude to those who provided me help during the
course of my study.
It is indeed a great pleasure to express my sincere thanks and sense of gratitude to Prof. Atul
Gavhane for his valuable guidance, timely help and suggestions and constant encouragement
during my project work.
I am deeply indebted and grateful to the people who shared their opinion & experience with
me in order to bring out this research project successfully one.
There are many who offered me help and support in numerous ways. I wish to express my
gratitude to all those who have helped me throughout this research work to complete it
successfully.
However, I accept the sole responsibility for any possible errors of omission and commission.
Place - Nagpur Tanushree patel
Date - BBA - III

DECLARATION
The work presented in this project report titled “Analysis of capital structure & its impact
on EPS with refrence to Automobile Industry ” has been carried out by me under the
guidance of Prof.Atul Gavhane during the academic year 2020-21.
I solemnly declare that this work has not been submitted in part or full for other course
conducted by Rashtrasant Tukdoji Maharaj Nagpur University or any other University for
any other purpose.
Place - Nagpur Tanushree Patel
Date - BBA - III


INTRODUCTION OF TOPIC
Capital Structure refers to the way a corporations finances itself through some
combination of equity sales, equity options, bonds, and loans. Optimal capital structure refers
to the particular combination that minimizes the cost of capital while maximizing the stock
price. Capital structure is the mix of the various types of debt and equity capital maintained
by a firm. The more debt capital a firm has in its capital structure, the more highly leveraged
the firm is considered to be. The permanent long term financing of a company, including
long- term debt, common stock and preferred stock, and retained earning.
One of the key issues in the capital structure decision is the relationship between the
capital structure and the value of the firm. The capital structure or financial leverage decision
is examined from the point of view of its impact on the value of the firm. The optimum
capital structure is one that maximizes the market value of the firm.
Analysis of capital structure is an important task which financial managers of every

organization go through before formulating capital structure decisions of their company.
Even the investors and promotors has to take every important measure so as to lead their
organization towards growth as well as reap maximum profit alongwith maximization of
company’s value. These all actions need careful watch of their company, which is helped by
capital structure analysis.
Capital structure analysis even helps an organization to decide whether it should go

for debt financing or whether it should it finance itself with their own sources of reserves and
surplus.
CAPITAL STRUCTURE

DEFINITION
Capital Structure refers to the way a corporations finances itself through some
combination of equity sales, equity options, bonds, and loans. Optimal capital structure refers
to the particular combination that minimizes the cost of capital while maximizing the stock
price. . A capital structure that is leveraged more has a greater proportion of debt versus
equity. Capital structure refers to a mixture of a variety of long term sources of funds and
equity shares including reserves and surpluses of an enterprise.
The two principal sources of finance for a company are equity and debt. Capital
structure is the mix of the various types of debt and equity capital maintained by a firm. The
more debt capital a firm has in its capital structure, the more highly leveraged the firm is
considered to be. The permanent long term financing of a company, includes long- term debt,
common stock and preferred stock, and retained earning. It differs from financial structure,
which includes short– term debt and accounts payable. It is the mix of long-term debt and
equity used to finance or capitalize a business enterprise. This may include long-term debt,
common stock, preferred stock, warrants, pension, and lease liabilities. It hardly takes in its
structure, all the complex quantitative factors as well as qualitative attributes affecting
investment decisions. One of the key issues in the capital structure decision is the relationship
between the capital structure and the value of the firm. The capital structure or financial
leverage decision is examined from the point of view of its impact on the value of the firm.
The optimum capital structure is one that maximizes the market value of the firm.
Capital structure is the mix of long-term debt and equity used to finance or capitalize
a business enterprise. This may include long- term debt, common stock, preferred stock,
warrants, pension, and lease liabilities. A capital structure that is leveraged more has a greater
proportion of debt versus equity. The permanent long-term financing of a company, including
long-term debt, common stock and preferred stock, and retained earnings. It differs from
financial structure, which includes short-term debt and accounts payable.
Capital structure normally includes common and preferred stock, long-term debt and
retained earnings. It does not include accounts payable or short-term debt.

Capital structure is by definition the cumulative outcome of past financing decisions.

Past financing decisions are known to depend on past market valuations. Therefore it is
possible that capital structure itself depends on the historical path of market valuations. We
find this to be the case. We find that unlevered firms tend to be those that raised funds when
their market valuations were high, as measured by the market-to-book ratio. Levered firms
tend to be those that raised funds when their market valuations were low.
FACTORS AFFECTING CAPITAL STRUCTURE

Firms can choose whatever mix of debt and equity they desire to finance their assets,
subject to the willingness of investors to provide such funds. And, there exist many different
mixes of debt and equity, or capital structures - in some firms, such as Chrysler Corporation,
debt accounts for more than 70 percent of the financing, while other firms, such as Microsoft,
have little or no debt.
A firm should attempt to determine what its optimal, or best, mix of financing should
be. Determining the exact optimal capital structure is not a science, so after analyzing a
number of factors, a firm establishes a target capital structure it believes is optimal, which is
then used as a guide for raising funds in the future. This target might change over time as
conditions vary, but at any given moment the firm's management has a specific capital
structure in mind, and individual financing decisions should be consistent with this target. If
the actual proportion of debt is below the target level, new funds will probably be raised by
issuing debt, whereas if the proportion of debt is above the target, stock will probably be sold
to bring the firm back in line with the target debt/assets ratio.
Capital structure policy involves a trade-off between risk and return. Using more debt
raises the riskiness of the firm's earnings stream, but a higher proportion of debt generally
leads to a higher expected rate of return; and, we know that the higher risk associated with
greater debt tends to lower the stock's price. At the same time, however, the higher expected
rate of return makes the stock more attractive to investors, which, in turn, ultimately increases
the stock's price. Therefore, the optimal capital structure is the one that strikes a balance
between risk and return to achieve our ultimate goal of maximizing the price of the stock.

Four primary factors influence capital structure decisions:
1. The first is the firm's business risk, or the riskiness that would be inherent in the firm's
operations if it used no debt. The greater the firm's business risk, the lower the amount
of debt that is optimal.
2. The second key factor is the firm's tax position. A major reason for using debt is that
interest is tax deductible, which lowers the effective cost of debt. However, if much of
a firm's income is already sheltered from taxes by accelerated depreciation or tax loss
carry- forwards, its tax rate will be low, and debt will not be as advantageous as it
would be to a firm with a higher effective tax rate.
3. The third important consideration is financial flexibility, or the ability to raise capital
on reasonable terms under adverse conditions. Corporate treasurers know that a steady
supply of capital is necessary for stable operations, which, in turn, are vital for long-
run success. They also know that when money is tight in the economy, or when a firm
is experiencing operating difficulties, a strong balance sheet is needed to obtain funds
from suppliers of capital. Thus, it might be advantageous to issue equity to strengthen
the firm's capital base and financial stability.
4. The fourth debt-determining factor has to do with managerial attitude (conservatism

or aggressiveness) with regard to borrowing. Some managers are more aggressive
than others; hence some firms are more inclined to use debt in an effort to boost
profits. This factor does not affect the optimal, or value- maximizing, capital
structure, but it does influence the target capital structure a firm actually establishes.
These four points largely determine the target capital structure, but, operating
conditions can cause the actual capital structure to vary from the target at any given time.

Empirical Determinants - Capital Structure
There is a direct kinship between the debt equity ratio of a firm and the
collateralization of its debt. Since all projects are seldom collateralized, firms often go in for
equity finance rather than borrowed capital. The issue of debt buttressed by assets with
known values, do away with the costs associated with the issue of new shares. A firm can
maximize the value of its equity by disposing secured debts to unsecured creditors. At a
higher debt level a firm that is exposed to the threat of bankruptcy is burdened with rising
agency costs. This cripples its ability to garner additional funds. The collateral value attribute
is captured by the ratio of intangible assets to total assets, and the ratio of inventory (plus
gross plant and equipment in money terms) to total assets. The first ratio is negatively related
to the collateral value of assets while the second is positively related to it.
Enterprises with large tax benefits relative to their expected cash inflows, prefer less
debt in their capital structure. When a levered firm prospers, owing to its increasing agency
costs, its growth will have a negative relationship with the long term debt. To mitigate the
effect of bulging agency costs, when enterprises mobilize short term debts, growth will
cultivate a positive relationship with it. Convertible debentures can also cut agency costs to
size. Hence growth will assume a direct relationship with convertible debt ratios. Capital
expenditure to total assets, and the increase in total assets measured by its percentage change,
can also be indicators of growth. Since progressive enterprises earmark more funds for R&D
to innovate and generate new investment opportunities, the ratio of the above to sales too can
be a proxy for growth..
Firms manufacturing specialized products to meet the specific needs of the customers
normally go for equity financing. In such cases a negative relationship between equity and
debt is plausible. In certain empirical studies the ratios of selling expenses to sales and R&D
to sales are treated as proxies for uniqueness of a firm. Larger firms with greater degree of
diversification are less prone to bankruptcy and liquidation. Such firms are hence highly-
levered. The size of a firm is often gauged by the natural log of sales. Some financial analysts
believe that the optimum debt level is a decreasing function of the volatility of earnings. Such
firms prefer more equity and less debt. The Standard Deviation of the percentage of change in
operating income can capture this attribute.

When debt level is low at higher profitability, promising firms rely more on equity
and less on debt for their expansion and diversification, since they can easily mobilize equity
funds on attractive terms. Even debt on a massive scale with soft terms can knock at their
doors. The relationship between profitability and debt hence can be both direct as well as
indirect. Profitability is measured by the ratio of operating income to sales, and operating
income to assets. Thus determinants of capital structure of a firm are governed by a myriad of
factors which make the identification of optimal capital structure an uphill task.
OPTIMUM CAPITAL STRUCTURE
Theoretically, the financial manager should plan an optimum capital structure for his
company. The optimum capital structure is one that maximises the market value of the firm.
There are significant variations among industries and among companies within an industrry
in terms of capital structure. Since a number of factors influence the capital structure decision
of a company, the judgement of the person making capital structure decision plays a crucial
part. Two similar companies may have different capital structures if the decision- maker
differ in their judgement of the significance of various factors.
The Board of Directors or the Chief Financial Officer (CFO) of a company company
should develope an appropriate or target capital structure, which is most advantageous to the
company. This can be done only when all those factors, which are relevent to the company’s
Capital structure decision, are properly analysized and balanced. The capital structure should
be planned generally keeping in view the interests of the equity shareholders and the financial
requirements of a company. The equity shareholders, being the owners of the company and
the providers of risk capital ( equity), would be concerned about the ways of financing a
company’s operations. However, the interests of otgher groups, such as employees,
customers, creditors, society, and government, shopuld also be iven reasonable consideration.
When the company lays down its objective in terms of the shareholder’s wealth maximization
it is generally compatible with the interest of other groups. Thus, while developing an
apprpriate capital structure for its company, the financial manager should inter- alia aim at
maximizing the long term market price oer share.

ELEMENTS OF CAPITAL STRUCTURE
A company formulating its long term financial policy should, first of all, analyse its
current financial structure. The following are the important elements of the company’s
financial 6structure that need proper scrutiny and analysis.
Capital Mix
Firms have to decide about the mix of debt and equity capital. Debt capital can be
mobilized from a variety of sources. The firms and analysts use debt ratios, debt service
coverage ratios, and the fund flow statements to analyse the capital mix.
Maturity and Priority

The maturity of securities used in the capital mix may differ. Equity is the most
permanent capital. Within debt, commercial paper has the shortest maturity and public debt
longest. Similarly, the priorities of securities also di=ffer. Capitalize Debt like lease or hire-
purchase finance is quiet safe from the lender;s point of view and the value of assets backing
the debt provides the protection to the lender. Colleteralised or secured debts are relatively
safe and have priority over unsecured debt in the event of insolvency. A firm may obtain a
risk- neutral position by matching the maturity of assets and liabilities; that is, it may use
current liabilitries to finance current assets and short- medium and long- term debt for
financimg the fixed asstes in that order of maturities. In practice, firms do not perfactly match
the sources and uses of funds. They may show preference for retained earnings. Within debts,
they may use long- term funds to finance current assets and assets with shorter life. Some
firmas are more aggresive, and they use short- term funds to finance long- term assets.

Terms & Conditions
Firms have choices with regard to the basis of interest payments. They may obtain
loans either at fixed or floating rates of interest. In case of equity, the firm may like to return
income either in the form of large dividends or large capital gains. The firm’s choice of the
basis of payments indicates the management’s assessment about the future interest rates and
the firm’s earnings.
Currency
Firms in a number of countries have the choice of raising funds from the overseas
markets. Overseas financial market provide opportunities to raise large amount of funds.
Accessing capital internationally also helps company to globalize it’s operations fast.
Because international financial markets may not be perfect and may not be fully integrated,
firms may be able to issue capital overseas at lower costs than in the domestic markets.
Financial Innovations
Firms may raise capital either through the issues of simple securities or through the
issues innovative securities. Financial innovations are intended to make the security issue
attractive to investors and reduce cost of capital. A firm can issue varieties of option- linked
securities; it can also issue tailor- made securities to large suppliers of capitals.

INTRODUCTION TO THE COMPANY
The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a
wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home
appliances, lighting, iron and steel, insurance, travel and finance. The group's flagship
company, Bajaj Auto, is ranked as the world's fourth largest two- and three- wheeler
manufacturer and the Bajaj brand is well-known across several countries in Latin America,
Africa, Middle East, South and South East Asia. Founded in 1926, at the height of India's
movement for independence from the British, the group has an illustrious history.
The integrity, dedication, resourcefulness and determination to succeed which are

characteristic of the group today, are often traced back to its birth during those days of
relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close
confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This
close relationship and his deep involvement in the independence movement did not leave
Jamnalal Bajaj with much time to spend on his newly launched business venture.
His son, Kamalnayan Bajaj, then 27, took over the reigns of business in 1942. He too was
close to Gandhiji and it was only after Independence in 1947, that he was able to give his full
attention to the business. Kamalnayan Bajaj not only consolidated the group, but also
diversified into various manufacturing activities. The present Chairman of the group, Rahul
Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj
Auto the flagship company has gone up from INR.72 million to INR. 120 billion, its product
portfolio has expanded and the brand has found a global market. He is one of India’s most
distinguished business leaders and internationally respected for his business acumen and
entrepreneurial spirit.

GROUP OF COMPANIES
Bajaj Auto is the flagship of the Bajaj group of companies. The group
comprises of 34 companies and was founded in the year 1926.
The companies in the group are:
 Bajaj Auto Ltd.  Bajaj Sevashram Pvt. Ltd.

 Bajaj Holdings & Investment Ltd.  Jamnalal Sons Pvt. Ltd.
 Bajaj Finserv Ltd.  Rahul Securities Pvt Ltd.
 Bajaj Housing finance Ltd.  Shekhar Holdings Pvt Ltd.
 Bajaj Allianz Life Insurance Co. Lt  Madhur Securities Pvt Ltd.
 Bajaj Finance Ltd.  Niraj Holdings Pvt Ltd.
 Bajaj Allianz Financial Distributors  Rupa Equities Pvt Ltd.
Ltd.  Kamalnayan Investments & Trading
 Bajaj Auto Holdings Ltd. Pvt Ltd
 P T Bajaj Auto Indonesia (PTBAI)  Sanraj Nayan Investments Pvt. Ltd.
 Bajaj Auto International Holdings BV  Hercules Hoists Ltd.
 Bajaj Electricals Ltd.  Hind Musafir Agency Pvt. Ltd.
 Hind Lamps Ltd.  Bajaj International Pvt. Ltd.
 Bajaj Allianz General insurance  Bachhraj Factories Pvt. Ltd.
co.Ltd.  Baroda Industries Pvt. Ltd.
 Mukand Ltd.  Jeewan Ltd.
 Mukand Engineers Ltd.  Bachhraj & Co Pvt Ltd
 Mukand International Ltd.  The Hindustan Housing Co. Ltd.
 Hospet Steels Ltd

BAJAJ TEAM

ACHIEVEMENTS
 In December 2020, Bajaj Auto crossed a market capitalisation of ₹1 lakh crore (US$
13.6 billion), making it the world's most valuable two-wheeler company.
 On 26 November 2019, Bajaj Auto invested about ₹57 crore ($8 million) in bicycle
and electric scooter rental startup Yulu. In this deal, Bajaj would also manufacture
customised electric scooters for Yulu.
 The Forbes Global 2000 list for the year 2012 ranked Bajaj Auto at 1,416.
 In May 2015, its market capitalisation was ₹64,000 crore (US$9.0 billion), making it
India's 23rd largest publicly traded company by market value.
Awards and recognitions
 Bajaj Pulsar 135 LS received Bike of the Year 2010 award from BBC TopGear and
Bike India.
 Pulsar 220 DTS-Fi received the Bike of the Year 2008 award by all major Indian
automobile magazines like Overdrive, Autocar, Business Standard Motoring and Bike
Top Gear.
 In 2006, Bajaj Auto won the Frost & Sullivan Super Platinum Award for
manufacturing excellence in its Chakan Plant.
 It received award for The Most Customer Responsive Company in Automobiles
category in a survey conducted by Economic Times for the years 2004, 2006 and
2008.
 Bajaj Auto received the Bike Maker of the Year award in ICICI Bank Overdrive
Awards 2004.

 Bajaj Pulsar 180 DTS-i won the BBC World Wheels Viewers Choice Two Wheeler of
the Year 2003 award.
KEY POLICY

FACTORY
 Plants
Bajaj Auto's has plants in,

Chakan (pune)
Waluj (near Aurangabad)

And Patnagar in uttrakhand.

The oldest plant at Akrudi (pune) houses the R&D centre ‘Ahead’.
 Plant Locations
Bajaj Auto has plants located at the following places:
1. Mumbai-Pune Road, Akurdi, Pune 411 035 (Maharashtra)
2. Bajaj Nagar, Waluj, Aurangabad 431 136 (Maharashtra)
3. MIDC, Plot No. A1, Mahalunge Village, Chakan 410 501 Dist. Pune (Maharashtra)
4. Plot No. 2, Sector-10, IIE Pantnagar, Udhamsinghnagar 263 531 (Uttarakhand)

CODE OF CONDUCT


This code of conduct shall apply to the directors and members of the senior management of
Bajaj Auto Limited (referred to hereinafter as BAL or the Company). For this code, members
of the senior management (hereinafter referred to as 'senior managers') shall mean those
personnel of the company, who are members of the core management team, but shall exclude
the whole-time directors. Directors and senior managers shall observe the highest standards
of ethical conduct and integrity and shall work to the best of their ability and judgement.
Directors and senior managers shall be governed by the rules and regulations of the company
as are made applicable to them from time to time. Directors and senior managers shall affirm
compliance with this code on an annual basis as at the end of each financial year.
Directors and senior managers shall ensure that they use the company's assets, properties and
services for official purposes only or as per the terms of appointment.
Directors and senior managers shall not receive directly or indirectly any benefit from the
company's business associates, which is intended or can be perceived as being given to gain
favour for dealing with the company.
Directors and senior managers shall ensure the security of all confidential information
available to them in the course of their duties No director or senior manager, other than the
designated spokespersons shall engage with any member of press and media in matters
concerning the company.In such cases, they should direct the request to the designated
spokespersons.
Directors and senior managers shall not engage in any material business relationship or
activity, which conflicts with their duties towards the company.
Directors and senior managers shall declare information about their relatives (spouse,
children and parents) employed in the company. Senior managers shall follow all prescribed
safety and environment-related norms.

OBJECTIVES OF STUDY
 To know the Capital Structure & its impact to Automobile Industry analysis.
 To learn & understand capital structure and its Impact on EPS of Automobile
Industry.
 To know relation between capital structure and firm value.
 To examine the relationship between firm financial characteristics and capital

structure.
 To know relation between capital structure and firm value.
 To analyze the EPS from 2016-20

SCOPE OF THE STUDY
 The business risk is constant over time and is assumed to be independent of its capital
structure.
 The study is aimed to the know the growth of Capital Structure & its impact on EPS
with Reference to Automobile Industry and the increased the demand for the products
that have been manufacturing during seasonal and un seasonal period.
 The scope of the study is limited for a period of five years.
 Understanding the organizational structure and functioning of Bajaj Automobile

industry.
 Identifying and analysing the capital structure of Bajaj Automobile industry.

LIMITATIONS
Following limitations were encountered while preparing this project

Limited data:-
 The data of study of project collected of investor or capital structure may not
applicable in the situations.
 The study of capital structure analysis of company financial position may be affected
or not.
 The calculations and methods adopted in my study may be carried an appropriately.
 It is dipped to judge the results-valve due to the change market valves of the firm.
 This project has completed with annual reports; it just constitutes one part of data
collections i.e., secondary. There were limitations for primary data collections
because of confidentiality.
Limited period:-
 This project is based on five years annual reports, conclusions and recommendations
are based on such limited data. The trend of last five years may / may not reflect the
real Capital Structure & its impact on EPS with reference position of the company
Limited area:-
 Also it was difficult to collect the data regarding the competitors and their financial
information. Industry figures were also difficult.

RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying now research is done systematically. In that various steps,
those are generally adopted by a researcher in studying his problem along with the logic
behind them.
Data collection is important step in any project and success of any project will be largely
depend upon now much accurate you will be able to collect and how much time, money and
effort will be required to collect that necessary data, this is also important step.
Various Steps for Research Methodology
This project requires a detailed understanding of the concept – “Capital Structure & its
impact on EPS with Refrence to Bajaj Automobile Industry”. Therefore, firstly we need to
have a clear idea of what is working capital, how it is managed in Coal India Limited what
are the different ways in which the financing of working capital is done in the company.
The management of working capital involves managing inventories, accounts receivable and
payable and cash. Therefore one also needs to have a sound knowledge about cash
management, inventory management and receivables management.
Data Collection Method:
The data collection for research collection work is one the crucial ventures to be done. In
order to come out with the strengths & weakness of the market by the way of data in term of
communication & observation.
In order to reach some accurate & reliable conclusion, we require some set of
information. This information is nothing but the systematically processed & relevant ideas.
So, in other words we can say that, “Information is outcome of processed Data”

There are mainly two types of data:
 Primary data:
The primary data is that data which is collected fresh or first hand, and for first
time which is original in nature. Primary data can collect through personal
interview, questionnaire etc. to support the secondary data.
Primary Data:
Data collected from financial statements of the company;
 Balance Sheet of Bajaj Auto
 Profit & Loss account of Bajaj Auto
 Capital Structure (Bajaj Auto)
 Yearly Results of Bajaj Auto, etc.
 Secondary data:
Secondary data means data that already available i.e. they refers to the data which have
already been collected & analyzed by some else. When the researcher utilizes secondary
data he has to look in to various sources from where he can obtain them.
Secondary data:
This is the existing data, collected from known sources. Some of the
secondary means of data collection are:
 Website
 Company data sources
 Newspapers

DATA ANALYSIS AND INTERPRETATION
BALANCE SHEET OF BAJAJ MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

AUTO (in Rs. Cr.)
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 289.37 289.37 289.37 289.37 289.37
TOTAL SHARE CAPITAL 289.37 289.37 289.37 289.37 289.37
Reserves and Surplus 24,912.89 19,636.1 21,490.53 18,814.49 16,744.76

2
TOTAL RESERVES AND 24,912.89 19,636.1 21,490.53 18,814.49 16,744.76

SURPLUS 2
TOTAL SHAREHOLDERS 25,202.26 19,925.4 21,779.90 19,103.86 17,034.13

FUNDS 9
NON-CURRENT LIABILITIES
Long Term Borrowings 0.00 0.00 0.00 120.77 119.90
Deferred Tax Liabilities [Net] 522.14 346.38 542.66 323.42 313.62
Other Long Term Liabilities 160.61 167.72 169.59 47.96 56.53
Long Term Provisions 1.98 80.50 14.56 112.19 78.13
TOTAL NON-CURRENT 684.73 594.60 726.81 604.34 568.18

LIABILITIES
CURRENT LIABILITIES
Short Term Borrowings 0.00 0.00 0.00 0.00 0.00
Trade Payables 4,573.81 3,199.70 3,786.73 3,244.32 2,235.73
Other Current Liabilities 917.03 895.54 946.33 741.37 855.92

Short Term Provisions 152.37 157.97 140.62 125.60 120.93
TOTAL CURRENT LIABILITIES 5,643.21 4,253.21 4,873.68 4,111.29 3,212.58
TOTAL CAPITAL AND 31,530.20 24,773.3 27,380.39 23,819.49 20,814.89

LIABILITIES 0
ASSETS
NON-CURRENT ASSETS
Tangible Assets 1,680.91 1,602.03 1,688.69 1,821.22 1,898.61
Intangible Assets 0.00 43.09 19.75 0.00 44.65
Capital Work-In-Progress 0.00 46.54 11.54 11.15 10.64
Other Assets 0.00 53.90 55.50 57.11 58.53
FIXED ASSETS 1,680.91 1,759.21 1,811.96 1,934.80 2,043.96
Non-Current Investments 14,602.84 15,416.2 17,582.88 11,822.89 8,681.39

0
Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00 0.00
Long Term Loans And Advances 31.43 32.46 31.63 30.64 29.74
Other Non-Current Assets 1,039.89 968.47 891.26 795.53 668.43
TOTAL NON-CURRENT 17,355.07 18,176.3 20,317.73 14,583.86 11,423.52

ASSETS 4
CURRENT ASSETS
Current Investments 8,028.11 2,779.75 1,576.48 5,765.41 6,050.08
Inventories 1,493.89 1,063.50 961.51 742.58 728.38
Trade Receivables 2,716.85 1,725.10 2,559.69 1,491.87 953.29
Cash And Cash Equivalents 527.36 308.27 922.81 778.00 293.68
Short Term Loans And Advances 5.74 6.11 6.34 6.26 6.47

OtherCurrentAssets 1,403.18 714.23 1,035.83 451.51 1,359.47
TOTAL CURRENT ASSETS 14,175.13 6,596.96 7,062.66 9,235.63 9,391.37
TOTAL ASSETS 31,530.20 24,773.3 27,380.39 23,819.49 20,814.89

0
OTHER ADDITIONAL
INFORMATION
CONTINGENT LIABILITIES,
COMMITMENTS
Contingent Liabilities 0.00 1,803.85 1,853.88 2,248.64 2,019.79
CIF VALUE OF IMPORTS
Raw Materials 0.00 0.00 0.00 0.00 0.00
Stores, Spares And Loose Tools 0.00 0.00 0.00 0.00 0.00
Trade/Other Goods 0.00 0.00 0.00 0.00 0.00
Capital Goods 0.00 0.00 0.00 0.00 0.00
EXPENDITURE IN FOREIGN
EXCHANGE
Expenditure In Foreign Currency 0.00 908.51 973.07 673.41 697.92
REMITTANCES IN FOREIGN
CURRENCIES FOR DIVIDENDS
Dividend Remittance In Foreign -- -- -- -- --

Currency
EARNINGS IN FOREIGN
EXCHANGE
FOB Value Of Goods -- -- -- -- --
Other Earnings -- 11,872.3 11,434.23 9,281.46 7,336.49

7
BONUS DETAILS

Bonus Equity Share Capital -- 258.85 258.85 258.85 258.85
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted -- 4,028.29 5,600.71 5,393.32 3,594.99

Market Value
Non-Current Investments -- 14,167.6 13,560.83 12,198.87 11,149.49

Unquoted Book Value 9
CURRENT INVESTMENTS
Current Investments Quoted -- -- -- -- --

Market Value
Current Investments Unquoted -- -- -- -- --

Book Value

PROFIT & LOSS ACCOUNT OF MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

BAJAJ AUTO (in Rs. Cr.)
12 mths 12 mths 12 mths 12 mths 12 mths
INCOME
REVENUE FROM OPERATIONS 27,132.90 29,111.5 29,567.25 25,098.64 22,694.87

[GROSS] 4

Less: Excise/Sevice Tax/Other 0.00 0.00 0.00 398.34 1,321.35

Levies
REVENUE FROM OPERATIONS 27,132.90 29,111.5 29,567.25 24,700.30 21,373.52

[NET] 4
TOTAL OPERATING 27,741.08 29,918.6 30,249.96 25,164.92 21,766.68

REVENUES 5
Other Income 1,276.46 1,733.56 1,649.31 1,347.25 1,221.97
TOTAL REVENUE 29,017.54 31,652.2 31,899.27 26,512.17 22,988.65

1
EXPENSES
Cost Of Materials Consumed 18,308.09 19,484.6 20,301.35 15,999.16 13,285.36

2
Operating And Direct Expenses 0.00 0.00 0.00 0.00 0.00
Changes In Inventories Of -219.48 -63.01 -56.42 9.68 -43.68

FG,WIP And Stock-In Trade
Employee Benefit Expenses 1,285.96 1,389.21 1,255.40 1,069.09 997.07
Finance Costs 6.66 3.16 4.48 1.31 1.40
Depreciation And Amortisation 259.28 246.43 265.69 314.80 307.29

Expenses
Other Expenses 1,916.99 2,454.90 2,218.33 1,926.38 1,745.38
TOTAL EXPENSES 23,078.54 25,072.0 25,538.11 20,697.60 17,653.02

1
PROFIT/LOSS BEFORE 5,939.00 6,580.20 6,361.16 5,814.57 5,335.63

EXCEPTIONAL,
EXTRAORDINARY ITEMS AND
TAX
Exceptional Items 0.00 0.00 342.00 -32.00 0.00
PROFIT/LOSS BEFORE TAX 5,939.00 6,580.20 6,703.16 5,782.57 5,335.63

TAX EXPENSES-CONTINUED
OPERATIONS
Current Tax 1,384.41 1,547.26 1,818.59 1,646.36 1,455.92
Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00 0.00
Deferred Tax 0.00 -67.04 209.39 68.11 50.41
Tax For Earlier Years 0.00 0.00 0.00 0.00 1.74
TOTAL TAX EXPENSES 1,384.41 1,480.22 2,027.98 1,714.47 1,508.07
PROFIT/LOSS AFTER TAX AND 4,554.59 5,099.98 4,675.18 4,068.10 3,827.56

BEFORE EXTRAORDINARY
ITEMS
PROFIT/LOSS FROM 4,554.59 5,099.98 4,675.18 4,068.10 3,827.56

CONTINUING OPERATIONS
PROFIT/LOSS FOR THE 4,554.59 5,099.98 4,675.18 4,068.10 3,827.56

PERIOD
OTHER ADDITIONAL
INFORMATION
EARNINGS PER SHARE
Basic EPS (Rs.) 157.50 176.30 161.60 140.60 132.30
Diluted EPS (Rs.) 157.50 176.30 161.60 140.60 132.30
VALUE OF IMPORTED AND

INDIGENIOUS RAW
MATERIALS STORES, SPARES
AND LOOSE TOOLS
Imported Raw Materials 0.00 0.00 0.00 0.00 0.00
Indigenous Raw Materials 0.00 0.00 0.00 0.00 0.00
STORES, SPARES AND LOOSE

TOOLS
Imported Stores And Spares 0.00 0.00 0.00 0.00 0.00

Indigenous Stores And Spares 0.00 0.00 0.00 0.00 0.00
DIVIDEND AND DIVIDEND

PERCENTAGE
Equity Share Dividend 0.00 5,208.60 1,736.20 1,591.52 144.68
Tax On Dividend 0.00 1,049.33 337.49 296.50 29.45
Equity Dividend Rate (%) 1,400.00 1,200.00 600.00 600.00 550.00

YEARLY RESULTS OF MAR '21 MAR '20 MAR '19 MAR '18 MAR '17
BAJAJ AUTO (in Rs. Cr.)
Net Sales/Income from 27,132.90 29,111.5 29,567.25 24,700.3 21,373.52

operations 4 0
Other Operating Income 608.18 807.11 682.71 464.62 393.16
Total Income From 27,741.08 29,918.6 30,249.96 25,164.9 21,766.68

Operations 5 2
EXPENDITURE
Consumption of Raw 18,308.09 19,484.6 20,301.35 15,999.1 13,285.36

Materials 2 6
Purchase of Traded Goods 1,521.04 1,586.67 1,579.38 1,401.25 1,382.47
Increase/Decrease in Stocks -219.48 -63.01 -56.42 9.68 -43.68
Power & Fuel -- -- -- -- --
Employees Cost 1,285.96 1,389.21 1,255.40 1,069.09 997.07
Depreciation 259.28 246.43 265.69 314.80 307.29
Excise Duty -- -- -- -- --
Admin. And Selling Expenses -- -- -- -- --
R & D Expenses -- -- -- -- --
Provisions And Contingencies -- -- -- -- --
Exp. Capitalised -12.27 -29.97 -30.10 -- --
Other Expenses 1,929.26 2,454.90 2,218.33 1,902.31 1,723.11
P/L Before Other Inc. , Int., 4,669.20 4,849.80 4,716.33 4,468.63 4,115.06
Excpt. Items & Tax
Other Income 1,276.46 1,733.56 1,649.31 1,347.25 1,221.97
P/L Before Int., Excpt. Items 5,945.66 6,583.36 6,365.64 5,815.88 5,337.03

& Tax
Interest 6.66 3.16 4.48 1.31 1.40
P/L Before Exceptional Items 5,939.00 6,580.20 6,361.16 5,814.57 5,335.63

& Tax
Exceptional Items -- -- 342.00 -32.00 --
P/L Before Tax 5,939.00 6,580.20 6,703.16 5,782.57 5,335.63
Tax 1,384.41 1,480.22 2,027.98 1,714.47 1,508.07
P/L After Tax from Ordinary 4,554.59 5,099.98 4,675.18 4,068.10 3,827.56
Activities
Prior Year Adjustments -- -- -- -- --
Extra Ordinary Items -- -- -- -- --
Net Profit/(Loss) For the 4,554.59 5,099.98 4,675.18 4,068.10 3,827.56

Period
Equity Share Capital 289.37 289.37 289.37 289.37 289.37
Reserves Excluding 24,912.89 19,636.1 21,490.53 18,814.4 16,744.76

Revaluation Reserves 2 9
Equity Dividend Rate (%) 1,400.00 1,200.00 600.00 600.00 550.00
EPS BEFORE EXTRA

ORDINARY
Basic EPS 157.50 176.30 161.60 140.60 132.30
Diluted EPS 157.50 176.30 161.60 140.60 132.30
EPS AFTER EXTRA

ORDINARY
Basic EPS. 157.50 176.30 161.60 140.60 132.30
Diluted EPS. 157.50 176.30 161.60 140.60 132.30

PUBLIC SHARE HOLDING
No Of Shares (Crores) -- -- -- -- --
Share Holding (%) -- -- -- -- --
PROMOTERS AND
PROMOTER GROUP
SHAREHOLDING
A)
PLEDGED/ENCUMBERED
- Number of shares (Crores) -- -- -- -- --
- Per. of shares (as a % of the -- -- -- -- --

total sh. of prom. and
promoter group)

total Share Cap. of the
company)
B) NON-ENCUMBERED
- Number of shares (Crores). -- -- -- -- --

total sh. of prom. and
promoter group).
- Per. of shares (as a % of the -- -- -- -- -

total Share Cap. of the
company).

KEY FINANCIAL RATIOS MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

OF BAJAJ AUTO (in Rs.
Cr.)
PER SHARE RATIOS
Basic EPS (Rs.) 157.50 176.30 161.60 140.60 132.30
Diluted EPS (Rs.) 157.50 176.30 161.60 140.60 132.30
Cash EPS (Rs.) 166.36 184.76 170.75 151.46 142.89
Book Value 870.94 688.58 752.67 660.19 588.66

[ExclRevalReserve]/Share
(Rs.)
Book Value 870.94 688.58 752.67 660.19 588.66

[InclRevalReserve]/Share
(Rs.)
Dividend / Share(Rs.) 140.00 120.00 60.00 60.00 55.00
Revenue from 958.67 1,033.92 1,045.37 869.65 752.21

Operations/Share (Rs.)
PBDIT/Share (Rs.) 214.43 236.02 229.16 211.86 195.06
PBIT/Share (Rs.) 205.47 227.51 219.98 200.98 184.44
PBT/Share (Rs.) 205.24 227.40 231.65 199.83 184.39
Net Profit/Share (Rs.) 157.40 176.24 161.56 140.58 132.27
PROFITABILITY RATIOS
PBDIT Margin (%) 22.36 22.82 21.92 24.36 25.93
PBIT Margin (%) 21.43 22.00 21.04 23.11 24.51
PBT Margin (%) 21.40 21.99 22.15 22.97 24.51
Net Profit Margin (%) 16.41 17.04 15.45 16.16 17.58
Return on Networth / Equity 18.07 25.59 21.46 21.29 22.46

(%)
Return on Capital Employed 22.96 32.08 28.28 29.50 30.32

(%)
Return on Assets (%) 14.44 20.58 17.07 17.07 18.38
Total Debt/Equity (X) 0.00 0.00 0.00 0.01 0.01
Asset Turnover Ratio (%) 87.98 120.76 110.48 105.64 104.57
LIQUIDITY RATIOS
Current Ratio (X) 2.51 1.55 1.45 2.25 2.92
Quick Ratio (X) 2.25 1.30 1.25 2.07 2.70
Inventory Turnover Ratio (X) 18.57 28.13 31.46 33.89 29.88
Dividend Payout Ratio (NP) 0.00 102.12 37.13 39.12 3.77

(%)
Dividend Payout Ratio (CP) 0.00 97.42 35.13 36.31 3.49

(%)
Earnings Retention Ratio 0.00 -2.12 62.87 60.88 96.23

(%)
Cash Earnings Retention 0.00 2.58 64.87 63.69 96.51

Ratio (%)
VALUATION RATIOS
Enterprise Value (Cr.) 105,720.62 58,286.26 83,429.99 78,887.6 81,066.85

9
EV/Net Operating Revenue 3.81 1.95 2.76 3.13 3.72

(X)
EV/EBITDA (X) 17.04 8.53 12.58 12.87 14.36
MarketCap/Net Operating 3.83 1.96 2.79 3.16 3.73

Revenue (X)
Retention Ratios (%) 0.00 -2.12 62.86 60.87 96.22

Price/BV (X) 4.22 2.94 3.87 4.16 4.77
Price/Net Operating 3.83 1.96 2.79 3.16 3.73

Revenue
Earnings Yield 0.04 0.09 0.06 0.05 0.05

Capital Structure (Bajaj Auto)

Period Instrument Authorized Issued -PAIDUP-
Capital Capital
From To (Rs. cr) (Rs. cr)
Shares (nos) Face Value Capital
2019 2020 Equity Share 300.0 289.4 289367020 10.0 289.4
2018 2019 Equity Share 300.0 289.4 289367020 10.0 289.4
2017 2018 Equity Share 300.0 289.4 289367020 10.0 289.4
2016 2017 Equity Share 300.0 289.4 289367020 10.0 289.4

Earning Per Share (Rs)
Year Mar '17 Mar '18 Mar '19 Mar '20 Mar '21
Earning Per 132.30 140.60 161.60 176.30 157.50
Share (Rs)
200
180
176.3
160
161.6 157.5
140
140.6
132.3 march'17
120
march'18
100
march'19
80 march'20
60 march'21
40
20
0
earning per share
Interpretation:
From the above graph it shows that the Earning Per Share (Rs) of the company is fluctuating.
In 2017 Earning Per Share (Rs) is 132.30, but it increased in 2018 and went to 140.60 and
again it increased in 2019 and went to 161.60, now it has increased to 176.30 in 2020, but in
2021 it was decreased to 157.50.

Dividend Per Share
Dividend 55.00 60.00 60.00 120.00 140.00
Per Share
160
140
140
120
120
100 march'17
march'18
80
march'19
60 march'20
60 60 march'21
55
40
20
0
dividend per share
Interpretation:
From the above graph it shows that the Dividend Per Share of the company is fluctuating. In
2017 Dividend Per Share is 55, but it increased in 2018 and went to 60 and again it was same
in 2019, again it increase in 2020 and went to 150, but in 2021 it was decreased to 140.

Operating Profit Per Share (Rs)
Operating 165.25 152.83 165.31 172.17 176.12

Profit Per
Share (Rs)
180
175 176.12
170 172.17
march'16
165
165.25 165.31 march'17
160
march'18
155 march'19
152.83
150 march'20
145
140
Operating profit per share
Interpretation
From the above graph it shows that the Operating Profit Per Share (Rs) of the company is
fluctuating. In 2016 Operating Profit Per Share (Rs) is 165.26, but it decreased in 2017 and
went to 152.83 and it increases in 2018 and went to 165.31, now it has increase to 172.17 in
2019, but in 2020 it was increased to 176.12.

.
Net Profit Per Share (Rs)
Net Profit Per 132.27 140.58 161.56 176.24 157.40
Share (Rs)
200
180
176.24
160
161.56 157.4
140
140.58
132.27 march'17
120
march'18
100
march'19
80 march'20
60 march'21
40
20
0
net profit per share
Interpretation:
From the above graph it shows that the Net Profit Per Share (Rs) of the company is
fluctuating. In 2017 Net Profit Per Share (Rs) is 132.27, but it increases in 2018 and went to
140.58 and it increases in 2019 and went to 161.56, now it has increased to 176.24 in 2020,
but in 2021 it was decreased to 157.4.

Net operating income Per Share (Rs)
Net operating 780.55 752.22 869.65 1,045.38 1,033.93
income Per
Share (Rs)
1200
1000 1,045.38 1,033.93
800 869.65 march'16

780.55 752.22 march'17
600
march'18
march'19
400
march'20
200
0
Net operating income per share
Interpretation:
From the above graph it shows that the Net operating income per share (Rs) of the company
is fluctuating. In 2013 Net operating income Per Share (Rs) is 780.55, but it decreases in
2017 and went to 752.22. and again it increases in 2018 and went to 869.65, now it has
increased to 1,045.3 8 in 2019, but in 2020 it was increased to 1,033.93.

FINDINGS
 The Earning Per Share (Rs) of the company is fluctuating. In 2017 Earning Per Share
(Rs) is 132.30, but it increased in 2018 and went to 140.60 and again it increased in
2019 and went to 161.60, now it has increased to 176.30 in 2020, but in 2021 it was
decreased to 157.50
 The Dividend Per Share of the company is fluctuating. In 2017 Dividend Per Share is
55, but it increased in 2018 and went to 60 and again it was same in 2019, again it
increase in 2020 and went to 150, but in 2021 it was decreased to 140.
 The Operating Profit Per Share (Rs) of the company is fluctuating. In 2016 Operating
Profit Per Share (Rs) is 165.26, but it decreased in 2017 and went to 152.83 and it
increases in 2018 and went to 165.31, now it has increase to 172.17 in 2019, but in
2020 it was increased to 176.12.
 The Net Profit Per Share (Rs) of the company is fluctuating. In 2017 Net Profit Per
Share (Rs) is 132.27, but it increases in 2018 and went to 140.58 and it increases in
2019 and went to 161.56, now it has increased to 176.24 in 2020, but in 2021 it was
decreased to 157.4.
 The Net operating income per share (Rs) of the company is fluctuating. In 2013 Net
operating income Per Share (Rs) is 780.55, but it decreases in 2017 and went to
752.22. and again it increases in 2018 and went to 869.65, now it has increased to
1,045.3 8 in 2019, but in 2020 it was increased to 1,033.93.

RECOMMENDATION
 The Capital Structure & its impact to Automobile Industry analysis is one of the
private sector Bajaj Automobile Company in India. It is a profitable Company.
 The company should need to include more debt contents in its capital structure in
order to get the advantage of tax benefits as debt is a cheaper source of financing.
 The business environment of the company is reasonably good. The company’s track
record is always oriented towards profitable growth and with strong fundamentals.
 Smooth functioning will release locked up capital and improve the cash flow.
 The capital should be used effectively with the improvement in manufacturing

activity and minimizing cost.
 Acquisition of new assets of heavy costs should be done with proper capital budgeting
supported by payback period.

CONCLUSION
 After analyzing the financial position of Capital Structure & its impact to Automobile
Industry analysis and evaluating its Capital Structure Analysis in respect of Ratio
Analysis and source and utilization of founds. The following conclusions are drawn
from the project preparation.
 Capital structure may be defined as the mixture of debt and equity that comprises the
financing of its assets. Hence, the total balance of capital and liabilities is financial
structure, not a capital structure. The main objective of financial manager behind
capital structure management is to minimize the overall cost of capital and risk, and
take the advantage of favorable financial leverage and corporate tax. So while
maintaining the proportion between debt and equity, their merits and demerits should
be evaluated relatively.
 It is not possible to have an ideal capital structure, however, the management should
target capital structure and initial capital structure should be framed with subsequent
changes in initial capital structure to have it like target capital structure. Some
companies do not plan capital structure but they are still achieving a good prosperity.

BIBLIOGRAPHY
Book’s
 Kothari C R, “ Research Methodology “, Second Revised edition, Chennai,

New Age International (P) Ltd. Publishers, 1985
 M Y Khan, P K Jain, “Management Accounting “, 4th edition, New Delhi, Tata

McGraw-Hill Publishing Company Ltd., 1984
Web Site Referred

 http://www.bajajauto.com/bajaj_corporate.asp
 http://www.moneycontrol.com/financials/bajajauto/balance-sheet/
BA10#BA10
 http://www.capital-structure.com/index/aboutus
 http://www.managementstudyguide.com/capital-structure.htm
 https://money.rediff.com/companies/Bajaj-Auto-Ltd/10540026/ratio
 https://en.wikipedia.org/wiki/Bajaj_Autohttp://www.moneycontrol.com/news-
topic/automotive-industry/

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“ANALYSIS OF CAPITAL STRUCTURE & ITS IMPACT ON EPS WITH REFRENCE TO

“ANALYSIS OF CAPITAL STRUCTURE & ITS IMPACT ON EPS

A report submitted to Rashtrasant Tukadoji Maharaj Nagpur University, in

Academic Session 2020-21

Under the Guidance of:

BBA- Year III- Semester VI

Tirpude Institute of Management Education

Tirpude Institute of Management Education, Nagpur [TIME] Page No.1

This is to certify that Tanushree Patel is a bonafide student of Tirpude Institute of

This project is submitted to Rashtrasant Tukdoji Maharaj Nagpur University in partial

Prof. Atul Gavhane Dr. Lalit Khullar

Tirpude Institute of Management Education, Nagpur [TIME] Page No.2

Place - Nagpur Tanushree patel

Date - BBA - III

Tirpude Institute of Management Education, Nagpur [TIME] Page No.3

Place - Nagpur Tanushree Patel

Date - BBA - III

Tirpude Institute of Management Education, Nagpur [TIME] Page No.4

Tirpude Institute of Management Education, Nagpur [TIME] Page No.5

Analysis of capital structure is an important task which financial managers of every

Capital structure analysis even helps an organization to decide whether it should go

Tirpude Institute of Management Education, Nagpur [TIME] Page No.6

Tirpude Institute of Management Education, Nagpur [TIME] Page No.7

Capital structure is by definition the cumulative outcome of past financing decisions.

FACTORS AFFECTING CAPITAL STRUCTURE

Tirpude Institute of Management Education, Nagpur [TIME] Page No.8

Four primary factors influence capital structure decisions:

4. The fourth debt-determining factor has to do with managerial attitude (conservatism

Tirpude Institute of Management Education, Nagpur [TIME] Page No.9

Empirical Determinants - Capital Structure

Tirpude Institute of Management Education, Nagpur [TIME] Page No.10

OPTIMUM CAPITAL STRUCTURE

Tirpude Institute of Management Education, Nagpur [TIME] Page No.11

ELEMENTS OF CAPITAL STRUCTURE

Maturity and Priority

Tirpude Institute of Management Education, Nagpur [TIME] Page No.12

Terms & Conditions

Tirpude Institute of Management Education, Nagpur [TIME] Page No.13

INTRODUCTION TO THE COMPANY

The integrity, dedication, resourcefulness and determination to succeed which are

Tirpude Institute of Management Education, Nagpur [TIME] Page No.14

 Bajaj Auto Ltd.  Bajaj Sevashram Pvt. Ltd.

Tirpude Institute of Management Education, Nagpur [TIME] Page No.15

Tirpude Institute of Management Education, Nagpur [TIME] Page No.16

Awards and recognitions

Tirpude Institute of Management Education, Nagpur [TIME] Page No.17

Tirpude Institute of Management Education, Nagpur [TIME] Page No.18

Bajaj Auto's has plants in,

Tirpude Institute of Management Education, Nagpur [TIME] Page No.19

And Patnagar in uttrakhand.

Bajaj Auto has plants located at the following places:

1. Mumbai-Pune Road, Akurdi, Pune 411 035 (Maharashtra)

2. Bajaj Nagar, Waluj, Aurangabad 431 136 (Maharashtra)

4. Plot No. 2, Sector-10, IIE Pantnagar, Udhamsinghnagar 263 531 (Uttarakhand)

Tirpude Institute of Management Education, Nagpur [TIME] Page No.20

Tirpude Institute of Management Education, Nagpur [TIME] Page No.21

Tirpude Institute of Management Education, Nagpur [TIME] Page No.22

Tirpude Institute of Management Education, Nagpur [TIME] Page No.23

 To know relation between capital structure and firm value.

 To examine the relationship between firm financial characteristics and capital

 To know relation between capital structure and firm value.

 To analyze the EPS from 2016-20