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    Apil Bhattarai
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    8 views11 pages

    Apil

    Uploaded by

    Apil Bhattarai

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 11
    UCTURE ANALYSIS OF CAPITAL ST PAT LUBE O1L LIMEFEDINEO) A project work Proposal Ssutenitted by GAURAT KHATIWADA 1.U, Registration No: 7-2-920-38-2016 DANPHE COLLEGE Submitted to: The Faculty of Management Tribhuvan University Kathmandy In Partial Fulfillment of the Requirements forthe Degree of BACHELOR OF BUSINESS STUDIES (BBS) Kathmandu, Nepal January, 2023 INTRODUCTION Lt Background of Study: term source of find inches lng term deb, prefered sock and equity capital. Ths apa structs the mare ob capa prefered tock and aut apt denotes the proportion of fng-erm eb, refered stock nd equity capital in lon erm acing The capital sacar show a firm's Fines its overall operations and growth by us ites sources of fands. In finance, capita stare refers to the way 1 corporation Finance its assets thrugh some combination of equity, debt or hid securities. A fies “apt stractre is then the composition or sructre of sible Foc example, ims tht ses R-20,000 in equity and Rs 800,000 jn debs sald 0 be 20% equity financed and HO% deb anced. The Bes ao of deb 0 tta ancing, 0% in this example is refered to as the finns leverage, In reality, capital structre may behighly complex and include tens of sources. Gearing ati the proportion ofthe capital employed ofthe fim which come from outside ofthe business finance, eg by taking & shorter loan ete. Debt comes inthe form of ond issues or long-term notes payable while equity is classified as common sock, preferred stock or retained earings. Shar- term debt such as working capital requiement is also considered to be part oF the capil sinicture. A. company’s proportion of short and longteem debis is considered when snalyzing capital structure. When people refer to capital structure, they se most ikely ‘refering toa firm’s Debt-equity ratio, which provide insight into how risky company is Usually « company more heavily Financed by debt poses greater risk, asthe frm relatively highly levered, The long-term creditors would judge the soundness ofthe fem on the basis ‘ofthe long-term financial strength measured in terms of ability to pay the interest regularly 4s well s repay the installment ofthe pineal on due dates on one jump sum athe time ‘of maturity. Accordingly, there are two different, but mutually dependentandintereated, 12 Profle ofthe company and the market scenario: res Nepal Lae Oi Lint une Nepal Company Ae 1 to stong and ever-expanding dsbution newark: nd ide ary of prodects inthe ‘Nepal Lube Ol Limited (NLO) is oe ofthe ling lubricants sling company of Nepal forlast years and also runing uy rm in current fal yea For the last years company ‘Neal Le Oi Limited sone of he manufacturing companies which i regu pa Aividend to ts schol ders. For the la 5 ars company has distributed 88% of Cash Jong with 30% Bonus share a a dividend. 1.3 Statement of Problem: Tho use of dob as pat ofthe capital of company could ether help or worsen the sivation ‘ofa fiam depending on how well the debt vas used. Generally, Jong-tern borrowing is requied for purchase of naw Tked ase or expansion of production capacity, Equally, a Firm may use its retained earnings, which is sharcholders money ofr within the organization through the issve of new shares If oud credits more than equity

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