Final Project On Cash Flow Statement

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Final project on cash flow statement
INTERNATIONAL BUSINESS MANAGEMENT- (Bangalore University)
Studocu is not sponsored or endorsed by any college or university

Downloaded by Kishore kumar Kirubakaran (kkishorekumar2601@gmail.com)
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CHAPTER 1
INTRODUCTION ABOUT INTERNSHIP
The internship experience is designed to provide students working towards certificate and
Associate in Bangalore University with an opportunity to develop insight into the practical
application of academic knowledge. Through observing the work activities of the members of a
Toyoda Gosei South India Pvt Ltd and by working under supervision helps us to know our
potential, capability, communication, problem solving skills, responsibilities etc. The main objective
of the project is to get an exposure working environment in an organization.
This project provides a real world experience for those who are looking forward to explore or gain
relevant knowledge and skill required to enter into a particular carrier field. The main purpose of the
project is to gain the practical knowledge of the company and also to learn new strategies , ideas
and methodologies in dealing the situations. This study helps us to know the financial health, risk
profile and compatibility with specific investment or acquisition strategies.
This was an opportunity getting to related concepts learned by me to the practical

application in the organization. This project helped me in interacting with highly experienced
manager’s which helped me to improve my practical knowledge.
OBJECTIVES OF INTERNSHIP
 Develop and improve business skills in communication, technology, quantitative reasoning,

and team work.
 Observe and participate in business operations and decision-making.
 Meet professional role models and potential mentors who can provide guidance, feedback,
and support.
 Apply business concepts and theories to real world decision making.

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TOPIC SELECTED FOR THE STUDY
‘’Analysis of capital structure and financial performance of TOYODA GOSEI SOUTH INDIA PVT
LTD’’
INTRODUCTION ABOUT THE TOPIC
The term capital structure refers to the relationship between the various long-term source financing
such as equity capital, preference share capital and debt capital. Deciding the suitable capital
structure is the important decision of the financial management because it is closely related to the
value of the firm. A company may raise its total capital from various sources such as shares,
debentures and other long term borrowings. There is no fixed charge on equity shares but no
preference shares and debentures it is compulsory to pay dividend or interest respectively. Thus
debentures and preference shares create fixed charge.
Capital structure is one of the most vital and complex areas of decision making to any
organization due to its relationship with other financing variable and its closely related to the value
of the firm. Therefore it’s very important for a finance manager to understand the company’s capital
structure and its relationship with returns and wealth maximization. A company's proportion of
short and long-term debt is considered when analyzing capital structure. When people refer to
capital structure they are most likely referring to a firm's debt-to-equity ratio, which provides
insight into how risky a company is. Usually a company more heavily financed by debt poses
greater risk, as this firm is relatively highly levered.
Financial performance is a subjective measure of how well a firm can use assets from its primary
mode of business and generate revenues. The term is also used as a general measure of a firm’s
overall financial health over a given period. The study of actual financial performance is to
understand the ideal criteria provided with input data from the empirical reality of the firm.
Financial performance is the achievement of the company’s financial performance for a certain
period covering the collection and allocation of finance measured by capital adequacy, liquidity,
solvency, efficiency, leverage and profitability. Financial performance, the company’s ability to
manage and control its own resources. Cash flow, balance sheet, profit-loss, capital change can be
the basis of information for corporate managers to make decisions. It is important to understand
fundamental analysis and technical analysis, it is necessary to learn finance to understand the
company’s financial behaviour through economics, financial management and accounting.

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The company can issue equity capital, preference capital and debentures. In theoretically we know
the separate capital system. But in practical the company will issue all three types of securities. It’s
necessary in a company, because three securities having its own merits and demerits. The
management of capital structure is not an easy task. The every need of capital structure is maximize
profit and reduces the cost of capital. It is the fact that every company should not follow the same
structure; definitely it is differ from company to company, firm to firm, industry to industry. The
capital structure is mainly depends upon its size, nature of the firm. It’s the duty to Financial
Manager to arrange proper Capital structure in the company. He has to be deciding the structure of
capital of a firm; he has to form the capital mix in appropriate proportion. But it is not an easy task
to arrange the best mix of equity and debt. If he fails to arrange proper capital structure company
can lose its position in the market and it is directly or indirectly effects the company growth and
objectives.
Financial performance is a fundamental issue in the economic entities and all businesses must try to get
the highest financial performance. There are many factors that affect the financial performance of a
business. These factors may be either internal factors or external ones. Currently, there have been many
studies proving the impact of capital structure on the financial performance of businesses, however the
results are not the same. In addition, each business sector has its own characteristics as well as capital
management, so the impact level is also very diversified. This research aims to explore the effect of capital
structure on the financial performance of pharmaceutical companies which are listing on the stock market
of Vietnam. Based on literature review we build the model with data from pharmaceutical companies
listing on Vietnam’s stock exchange from 2015 to 2019. The results will help firms to enhance
performance and government to improve business environment.

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THEORITICAL BACKGROUND OF THE STUDY
CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE DEFINITION:
The assets of a company can be financed either by increasing the owners claim or the
creditors claim. The owner’s claims increase when the form raises funds by issuing ordinary shares
or by retaining the earnings, the creditors’ claims increase by borrowing. The various means of
financing represents the “financial structure” of an enterprise. The financial structure of an
enterprise is shown by the left hand side (liabilities plus equity) of the balance sheet. Traditionally,
short-term borrowings are excluded from the list of methods of financing the firm’s capital
expenditure, and therefore, the long term claims are said to form the capital structure of the
enterprise .The capital structure is used to represent the proportionate relationship between debt and
equity .Equity includes paid-up share capital, share premium and reserves and surplus.
The financing or capital structure decision is a significant managerial decision .It influences
the shareholders returns and risk consequently; the market value of share may be affected by the
capital structure decision. The company will have to plan its capital structure initially at the time of
its promotion.
About the firm financial performance, it is widely accepted that the financial performance is the effect of
mobilizing, using and managing capital in an enterprise. Business performance of enterprises is an
aggregate economic indicator reflecting the level of use of factors of the production process. Therefore,
business efficiency is an integrated economic indicator to reflect the level of the use of material and
financial resources of the enterprise to achieve the highest efficiency.
Assessing and measuring corporate financial performance is one of the most controversial and discussed
issues in financial management. The use of any tool to assess the enterprise financial performance is
important. There are many indicators of measuring the financial performance of enterprises, but the most
commonly used criteria in studies can be divided into two main groups: (i) Using accounting tools used by
many authors used in previous studies, it is the ratio between the results achieved and the inputs like ROA,
ROE.

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FACTORS INFLUENCING CAPITAL STRUCTURE:

In a company number of factors will be influenced the formation of capital structure, some may be
favorable, some other not. So we can classify 3 factors:
 Internal Factor.
 External factor.
 General factor.
 Internal factors
Below are the internal factors which are directly affecting the business. For a proper direction we
can avoid below factors.
a. Cost of capital: Cost is the major problem in every business, if company adopts scientific
methods to avoid cost it will better to estimate present and future plan.
b. Risk: Risk is everywhere, usually in a company debt securities are more risk comparing to
other like equity. Measuring gearing up and times-interest earned are the risk measuring
concepts.
c. Acceptability: Investors are the main stakeholders of the company, there acceptance also
necessary to lend the money.
d. Transferability: Most of the companies put their securities in a stock exchange because to
improve their transferability.
e. Increasing owners profits: If we barrow debt then only we can raise the owners profit or
else we cannot raise their profit.
 External Factors
These factors which are affect the company externally or indirectly.
a. Level of business activity: Company wants expanding its business then its level of
activities will rise.
b. Level of Interest rate: If interest rate rise the company should avoid debt financing
otherwise it is burden.
c. Availability of funds in the money market: The availability of funds in the money
market also affects the debt and equity financing.
d. Tax policy on Interest and Dividends: Tax policy is totally different from business to
business, but general factors are same.
 General Factor

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These are factors which generally affect the business.

a. Size of the business: New and big industries needs huge money, usually they will issue
securities like bonds and preferred stock to the public without diluting equity stock holders
interest.
b. Operation characteristics: The operation activities within the business really take issue.
In enterprise some should earn excessive margin of income or some business much less.
c. Earn profit continuously: Business is a continuous process. The earning of profit should
be stable. Otherwise it is difficult to handle the expenditure in the business.
d. Market Information: Company should know about market activities because it is
changing day to day and considers them carefully in constructing of capital structure.
e. Government Policy: Fiscal policy of the government is very important. Heavy taxation
will reduce the net income of the companies.
FACTORS AFFECTING THE CAPITAL STRUCTURE:
 LEVERAGE: The use of fixed charges of funds such as preference shares, debentures and
term-loans along with equity capital structure is described as financial leverage or trading
on. Equity. The term trading on equity is used because for raising debt.
 DEBT /EQUITY RATIO-Financial institutions while sanctioning long-term loans insists that
companies should generally have a debt –equity ratio of 2:1 for medium and large scale
industries and 3:1 indicates that for every unit of equity the company has, it can raise 2 units
of debt. The debt-equity ratio indicates the relative proportions of capital contribution by
creditors and shareholders.
 EBIT- EPS ANALYSIS-In our research for an appropriate capital structure we need to
understand how sensitive is EPS (earnings per share) to change in EBIT (earnings before
interest and taxes) under different financing alternatives.
 The other factors that should be considered whenever a capital structure decision is taken
are:
 Cost of capital
 Cash flow projections of the company
 Size of the company
 Dilution of control
 Floatation costs
Profitability Ratio

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Profitability ratios compare income statement accounts and categories to show a company's ability
to generate profits from its operations. Profitability ratios focus on a company's return on
investment in inventory and other assets. These ratios basically show how well companies can
achieve profits from their operations. Investors and creditors can use profitability ratios to judge a
company's return on investment based on its relative level of resources and assets. In other words,
profitability ratios can be used to judge whether companies are making enough operational profit
from their assets. In this sense, profitability ratios relate to efficiency ratios because they show how
well companies are using thier assets to generate profits. Profitability is also important to the
concept of solvency and going concern.
Correlation matrix
A correlation matrix is a table showing correlation coefficients between sets of variables.

Each random variable (Xi) in the table is correlated with each of the other values in the table (X j).
This allows you to see which pairs have the highest correlation. The correlation matrix is simply a
table of correlations. The most common correlation coefficient is Pearson’s correlation coefficient,
which compares two ratio variables. But there are many others, depending on the type of data you
want to correlate.
ANOVAs
An ANOVA test is a way to find out if survey or experiment results are significant. In
other words, they help you to figure out if you need to reject the null hypothesis or accept
the alternate hypothesis. Basically, you’re testing groups to see if there’s a difference between
them.
One-way or two-way refers to the number of independent variables (IVs) in your Analysis of
Variance test. One-way has one independent variable (with 2 levels) and two-way has two
independent variables (can have multiple levels).
FEATURES OF AN OPTIMAL CAPITAL STRUCTURE:

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An optimal capital structure should have the following features,
1. PROFITABILITY: - The Company should make maximum use of leverages at a minimum cost.
2. FLEXIBILITY: - The capital structure should be flexible to be able to meet the changing
conditions .The company should be able to raise funds whenever the need arises and costly to
continue with particular sources.
3. CONTROL: - The capital structure should involve minimum dilution of control of the company.
4. SOLVENCY: - The use of excessive debt threatens the solvency of the company. In a high interest
rate environment, Indian companies are beginning to realize the advantage of low debt.
NEED OF THE STUDY
 The equation of capital structure in TGSIN PVT LTD.

 To understand the financial risk business risk and trade off between them.
 To know whether their is a balance between debt and equity.
 The main purpose of the study is to analyse the growth and working of the company for the
financial period.
The purpose is to assess the company’s short term and long term financial stab

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CHAPTER 2
INTRODUCTION ABOUT THE COMPANY:
TOYODA GOSIE SOUTH INDIA PVT.LTD (TGSIN) manufacturing mainly rubber and
plastic products. Their main work is to produce injection moulding. They produce,
 Weather-strips
 Functional components
 Interiors and Exterior
 Safety systems
 LEDs
It is a Japanese company and head quarter located in Japan. They have branches in India, Europe,
China, Africa and Southeast Asia. TOYODA GOSEI mainly focuses about safety of workers and
quality products. The company provides caps, helmet, shoes, mask and safety needs for the
workers. The main aims of the company are:
 Happy employee
 Happy customer
 Happy company

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The company has adopts 5S in all departments. It helps to work easily and quickly. They
are:
 Sort
 Set in order
 Shine
 Standardize
 Sustain
COMPANY PROFILE:

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HISTORY:
TOYODA GOSIE SOUTH INDIA PVT.LTD (TGSIN) is one of the world’s largest
automobile manufactures. This company was established in June 15, 1949 in Japan. Company was
founded by SAKICHI TOYODA. Its capital is nearly ¥28 billion according to March 31 2018
report. This is located in Aichi Japan. This company has 65 groups all over the world. At present
38,234 people are working in this company. Net income and sales of this company is ¥21.1 billion
and ¥806.9 billion respectively. The company started manufacturing rubber and plastic products in
1949. They started research and development in 1957 and is one of their core strengths to date.
Their main focus is to manufacture automatic components, interior, safety system, body sealing,
functional parts etc. The company also manufactures safety parts like Air bags, Horn pad and
Steering wheel. The company has the following certifications:
 ISO 14001:2015
 IATF 16949:2016
 OHSAS 18001:2007
AWARDS:
2018:
MAY 03 : Gold award winner in CCQC convention in Mysore.
AUGUST 4 : Gold winner in CCQC convention award in Bangalore.
DECEMBER PAR : Excellence award in NCQC Convention in Gwalior.
2019:
January gold award winner in TKSA Bangalore.
February The economic times polymer award excellence in plastic

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Mr.BIJAY KRISHNA SHRESTHA
Managing Director
Mr.SURESH R
Executive Director
Mr.Hiroshi Yasuda
Mr.Toshio Goto
Director
Mr.SAKICHI TOYODA
Founder
Mission statement:
 Create customer oriented happy employees with the ability to face the business challenges.
 Promote ownership through kaizen culture, respect for people and team work.
Vision statement:
Enhance individual capability to global standards and encourage one team one TOYODA
GOSEI.
TGSIN 2025 VISION: “Create Quality Cultured Stable, Sustainable and Self- Reliant
Company.

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TG SPIRIT:
The spirit of the company can be conceptualized into,
 Customer orientation
 Challenge
 Ownership
 Continuous Kaizen
 Respect
 Teamwork
Customer satisfaction is an important element in their business, and satisfying customer

needs and wants become crucial to their business. They welcome all challenges and set
themselves up for higher goals, and take high risk. Every employee takes ownership and work
in unison to meet company objectives and goals. Such an ownership attitude will be crucial for
the development of the company. Change is the only constant and changing for good requires
continuous improvement. They make it a point to improve their processes and activities daily in
the company. All employees believe in mutual respect and work as a team to support each other
in the company.
Company Location:

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Company has 5 branches in India. They are located in
 Haryana
 Rajasthan
 Gujarat
 Delhi
 Bangalore
Business Plan 2025:

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Products of Toyota:
 Piston cups
 Flocked glass runs
 Plastic plated products
 Bumpers
 White LED’s
 Plastic water pipes
 Weather strips
 Brake hose
 New rubber recycling technology
 Steering wheel
 Rear seated center air bags
 Low noise resister
 Plastic radiator grilles

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Structure:
Structure represents how the company is

organized with other interrelated components, how organization units relate to each other and
Organization arrangements for performing tasks as well as activities. It is defined as the skeleton of
the organization. TGSIN finance department structure is shown below with the help of diagram,
Department:
Department is a process of resulting out of option to group tasks according to some criterion. The
resultant operation of departments includes decisions concerning separate organizational work,
assign the work to workers, revealing all involved who in charge and contribute for the support
require by those. Given the nature of these choice and decisions departments and the criteria or
bases used for generate departments can have significant impact on the organization’s effectiveness.
TGSIN Company included the certain important department. They are listed below:

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 Finance department
 Commercial department
 Human Resource development
 Production department
 Quality department
 Purchase department
 Training Development department
 R&D department
 Tool development
 Maintenance department
 Molding department
 Assembly department
Staff:
Staffs help in categorizing the members and their capabilities present in the organization.
The staffs of a company play a significant contribution to the company’s growth and also to achieve
competitive advantages. The staffs are very flexible and dynamic to adapt to the changes which
helps to achieve the strategic goals of the company.
TGSIN categorized their workers in two groups. They are
 Permanent employees
 Contract or temporary employees
Permanent employees:
In TGSIN organization has around 930 out of 425 permanent employees are working. They
worked for the organization goals. These employees are engaged by the management.
Temporary employees:
Company also has temporary employees and their strength is 930 out of 505. In production
section these workers are working in shift basis. They are working in first shift, second shift, night
shift and general shift.
Details of facilities provided to the staff:

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The well facilities are provided by the TGSIN to its staff. The staffs are contributed with the
intention of creating a healthy environment and motivate them to perform well at their work place.
 Canteen facilities within the campus of the organization.

 Safety mask and equipment’s to employee.
 Medic line facility.
 Insurance Facilities.
 Employees also get a PF facility.
 Bonus
Quality commitments in TGSIN:
 Zero accident
 Standardized work
 In all parts inspection criteria
 Use stop look & go
 Completing the job
 Kanban check
 No talking during working
 3 point check
 Maintain clean in work area
Main rules inside the campus of TGSIN:
 Stop-Where stop look go stickers are there and also where ever there is crossing.
 Look: Look and say yosh yosh yosh 3 times by seeing left right and straight, do at last
which side your working.
 Go: All side ok than move which side you want to movie.
System:

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The whole organization is connected through a strong information system. They are in use if
Management Information System which are reachable to the all departments’ present in the
company. The information will be updated time to time which helps other department to know
about all the issues related to their and other department.
In TGSIN organization they use a six sigma technology. It helps to reduce the wastage in the time of
manufacturing process. The some important systems are:
 Communication System.
 Quality system.
 Attendance system.
McKinsey 7S Framework
It was evaluated in the early 1980s by Tom Peters and Robert Waterman, two consultants
working at the McKinsey & Company consulting firm, the key assumption of the version is that
there are seven inner feature of company is essential to be situating if it is to be achieve a desired
result.
The 7-S type can be used in an extensive range of conditions where an alignment
perspective is helpful, for example:
 Improve the business of a company.

 Investigate the possible result of future changes within a company.
 Align departments and activity during a merger and acquisition.
 Decide how optimum to execute and achieve a proposed strategy.
The Seven Elements:

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The McKinsey 7-S model involves seven interdependent elements. They are classified into
two important elements called "hard" and "soft" elements:
Hard Elements Soft Elements
Strategy Shared values
Structure Skills
System Style
Staff
"Hard" component are easier to define or identify and management can personally influence
them: These are strategy statements; organization charts and reporting lines; and formal processes
and IT systems.
“Soft” elements are tougher to express, and are less tangible and more influenced by culture.
However, these soft elements are as supreme as the hard elements if the organization is going to be
successful.
 Strategy: Those frameworks concocted on look after Also make aggressive advantage
again the rivalry.
 Structure: The route the organization will be organized what's more who reports to whom.

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 Systems: Those normal exercises also methodology that disappointments and outrage on
his/her staff parts procure on to get the operation completed.
 Shared Values: called "super ordinate goals" when the framework was initially developed,
these need aid the key values of the shares of the organization that are confirm in the
company culture and the universal work ethic.
 Style: The style for authority embraced.
 Staff: The representatives and their widespread abilities.
 Skills: The successful abilities Furthermore competencies of the workers attempting for the
organization.
Competitors of TGSIN:
For TGSIN there is only one competitor in Bangalore. That is MOTHERSON
AUTOMATIVE TECHNOLOGIES & ENGEERING (MATE) is located in Bangalore.
Clients for TGSIN:
There are only 3 clients for TGSIN. TOYOTA is main client for TGSIN.
 TOYOTA KIRLOSKAR MOTOR PVT LTD

 NISSAN MOTOR INDIA PVT LTD
 RENAULT NISSAN AUTOMATIVE INDIA PVT LTD
 TOYOTA KIRLOSKAR AUTO PARTS PVT LTD

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SWOT Analysis:
This SWOT examination is an investigation embraced over an applied structure to a precise

examination that equals those outward dangers and chances with those inward shortcoming and
quality of the association. It need been as a relatable point should recommend that the organizations
distinguish their quality furthermore shortcoming and in addition the chances dangers in the outer
earth nut the thing that may be frequently ignored is that joining together these factors might oblige
different vital decision. Should outline the idea about SWOT need been suggested.
STRENGTHS:
 It’s purely a Japanese based company.

 Effective utilization of six sigma concept in production.
 Cost reduction activity.
 Limited competitors in market.
 Good safety system inside the campus.

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 Vendor development.
 Kaizen activity.
WEAKNESSES:
 Less number of customers.

 Currently less number of projects.
 Dependence on suppliers.
OPPORTUNITIES:
 Growing Automobile sector.

 Rise in domestic demand.
 Quality certifications like ISO 14001:2015, IATF 16949:2016, OHSAS 18001:2007.
THREATS:
 Government policy changes.

 Political instability
 Technology change
CHAPTER 3
RESEARCH METHODOLOGY
LITERATURE RIVIEW:
 Pandey, (2004) explains the connection between (capital shape and market structure) and (Capital
structure and Profitability). The outcomes propose that the capital structure and market place
structure have cubic association that at lower and high range of Tobin Q ratio (sum of market cost of
equity and e book fee of long term debt and net assets divides by way of book fee of equity and e-
book cost of long time debt and net contemporary assets) corporations are using high debt and at
medium variety they useless debt. This is because of organization price and financial ruin costs due
to the fact when corporations take extra debt there are possibilities of bankruptcy because the firms
might not capable of repay the debt in future. Regarding courting among profitability and capital
structure they conclude that there is a saucer shape association between capital shape and
profitability due to the interaction of business enterprise prices, prices of outside financing and the

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interest/tax protect. Further to this, additionally they conclude that the other independent variables
like length and tangibility has a positive have an effect on whilst boom, threat and ownership have a
terrible have an effect on capital structure.
 Stewart C Myers, (2001) explains the trade off pecking order and free cash flow theories of capital
structure. The theories are not designed to be general. They are conditional theories of capital
structure. Most of the research on capital structure has focused on the proportions of debt vs
equity observed on the right hand sides of corporations balance sheet. Financing with debt instead
of equity increases the total after tax dollar return to debt and equity investors and should increase
firm vale. Firms may find it convenient to use these new products, but only the first users will
increase value or lower the cost of capital by doing so.
 Modigliani and Miller conducted a groundbreaking study on the theory of capital structure, and
proposed that the theory that the capital structure of the company has nothing to do with the
company value in the complete market is the MM theory. The problem of the company’s capital
structure has been widely studied by scholars.
 Dailida and Novikov (2004) in their examination wear down capital structure offered a clarification
to the question whether the corporate money related utilize decisions differentiate inside and out
amongst making and made countries and the commitment extents in making countries are influenced
by a vague segments from they are in made countries. The survey has found that exact parts like
GDP advancement, extension rates and the change of capital markets contort the way the
commitment extents are affected by the components in the making countries. The reaction to the
essential question about Ukraine in association with the substance variable was incredibly colossal in
their backslides and certified the doubts of the critical hypotheses striven for non-move economies.
Their assumption is that substitute variables could turn gigantic if the case were more prominent.
The high importance level of the coefficient on the variable confirms the assumption that nature with
discharged era limits and over the top generous assets are used to cover current sponsoring needs and
along these lines, the biological parts show their noteworthiness if there ought to be an event of a
move economy. Disregarding the way that the outcomes are unsurprising with the wishes however
the space for question is left after examination is in perspective of the low broad impact (useful
power) of the elements. This can be relied upon to outcomes of verifiable and estimation botches,
shifting institutional settings of the countries, the way cash related enunciations are prepared and the
availability of different sorts of financing.
 Ross first incorporated asymmetric information into the study of capital structure. Ross assumed that
corporate managers have internal information about the company’s future earnings and investment

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risks, while investors do not, but know the incentive system for managers, so Investors can only
indirectly evaluate the market value of the company through the information sent by the manager.
Corporate debt ratio or asset-liability structure is a signal tool that conveys internal information to
the market. Since the probability of ruin is negatively correlated with the quality of the firm and is
positively related to the level of debt, external investors regard the higher debt ratio as a signal of
high quality, that is, the value of the firm and the proportion of debt are positively correlated.
 Frank and Goyal (2007) analyzes the relative significance of different calculates the us choices of
traded on an open market American firms from 1950 to 2003. The most dependable variables were
middle industry use (beneficial outcome on use), market-to-book proportion (negative), substance
(positive), benefits (negative), log of advantages (positive) and anticipated swelling (positive).the
exact confirmation appears to be sensibly reliable with a few forms of the Trade-off
hypothesis of capital structure.
SCOPE OF THE STUDY
A study of the capital structure involves an examination of long term as well as short term sources
that a company taps in order to meet its requirements of finance. The study of capital structure and its impact
on profitability at TGSIN PVT LTD for the year 2018 to 2021.
STATEMENT OF THE PROBLEM
The owners of a company will not like to loose the control they have in their company by issuing more
shares to the public in order to finance their capital projects. Instead, they to borrowing, this means using
debt instrument like debenture stock. These owners of the business should not fail to know that whether
there is profit or not that the debentures should be settle their interest. Nobody can perfectly predict the
future, there can be business boom and there can equally be stump in business.
a. Whether the firm’s performance is good quality or bad quality for the investor?
b. Is the company is really gainful or profitable?
c. Is there any impact of return on total asset, Net Profit Margin?
d. How much debt a company has taken?
e. What are the Determinants that influencing in capital Structure.

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OBJECTIVE OF THE STUDY
a. To study and analyse the financial performance of the company.

b. To analyse various profitability ratios.
c. To understand the value of the firm with variations in capital structure.
d. To understand the leverage of the firm.
RESEARCH METHODOLOGY:
By taking into consideration all the facts and data, research methodologies have been developed by
us, which is very appropriate to our research study.
RESEARCH DESIGN:
As this study is based on both primary and secondary data, the research design which have been
adopted is descriptive research as it describes the data collected and answers the question what, where,
when and how.
SOURCES OF THE DATA
Primary Data
The primary data is taken through conducting direct interview through face to face, open ended Questions
with the Accountants, Manager and Administrator of the company.
Secondary data
 Annual report of the company

 Records of the company
 Company website
Tools:

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Ratio Analysis: Various ratio analyses are done to find the profitability and capital structure.
The following are,
 Profitability Ratio
 Gross profit Ratio
 Net Profit Ratio
 Operating Margin Profit
 Cash Profit Ratio
Cash profit

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Cash profit ratio =

Sales
 Return on Assets
 Return on Equity
 Return on Capital Employed

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 Debt-Asset Ratio
 Debt-Equity Ratio
 Earnings per share

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CHAPTER- 4
DATA ANALYSIS AND INTERPRETATION
4.1 PROFITABILITY RATIO:

A profitability ratio is a degree of profitability, which is a way to measure Companies
overall performance. Profitability is the capacity to make earnings, and an income is what is left
over from profits earned after you have got deducted all prices and expenses associated with
earning the profits. The formulas you are approximately to research can be used to judge a business
enterprise's overall performance and to examine its performance in opposition to different similarly
situated organizations.
An efficiency extent is a level of advantage, which is a way to deal with evaluate Organizations
general execution. Profitability is the capacity to make benefit; besides, a pay is what is over from
benefits earned after you have deducted all expenses and costs related with getting the payback. The
formulas you are around to research can be used to judge a business attempt's as a rule execution and
to review its execution in opposition to different comparably arranged affiliations.
GROSS PROFIT MARGIN RATIO:
Gross margin quantitative relation could be a profit quantitative relation that
compares the earnings of an enterprise to net sales. This ratio measures how profitable an enterprise
sells its stock or merchandise. In different phrases, the gross profit ratio is basically the proportion
mark-up on products from its cost. This is the pure benefit from the sale of inventory that can go to
paying operating prices. Gross margin ratio has confused with the profit margin ratio, however the
two ratios are completely different. Gross margin ratio best considers the value of products offered
in its calculation as it measures the profitability of selling stock. Profit margin ratio then again
considers other costs. Gross margin ratio is a profitability ratio that establishes how worthwhile an
employer can sell its stock. It best makes feel that better ratios are more favorable. Better ratios
mean the employer is promoting their stock at a better profit per cent. An organization with an
excessive gross margin ratio is that the business enterprise will have more money to pay working
prices like salaries, utilities, and hire. When you consider that this ratio measures the profits from
selling inventory, it additionally measures the share of income that may be used to assist fund
different elements of the commercial enterprise.

lOMoARcPSD|32859758
Table showing Gross Profit Margin Ratio: (Amount: INR in crores)

Year Sales Cost of goods sold Gross profit margin
ratio
2017-18 491.70 294.54 40.09
2018-19 423.80 262.28 38.11
2019-20 479.90 298.39 37.82
(Source: Annual reports of the company)
Analysis:
In the above table shows Gross Profit Margin Ratio of TGSIN. In 2016-17 ratio is
40.09, in 2017-18 in decreases to 38.11, and in 201-19 it goes down to 37.82. So in 3 years GP ratio
goes decresing last 3 years.
Graph showing Gross Profit Ratio:

lOMoARcPSD|32859758
GROSS PROFIT PERCENTAGE

491.7 479.9
500 423.8
450
400 294.54 298.39
350 262.28
300
250
200 2017-18
150 40.0938.1137.82 2018-19
100 2019-2020
50
0
s d o
le ol ra
ti
Sa ss
od g in
f g o ar
to tm
s ofi
Co r
sp
os
Gr
Interpritation:
Normally there is no standard for this ratio. But usually more than 25% margins it can be
anticipated. A higher rate of gross income indicates the good place of the company and vice versa.
In this graph tells decresing in GP ratio in last 3 years. But the company have more than 25% GP.
So company have good position and they maintain this ratio in future also.
NET PROFIT MARGIN RATIO

lOMoARcPSD|32859758
The net profit margin shows how much net profit can earn by company with total sales of
the year. It is also known as profit margin. Net profit margin analysis is totally different from the
gross profit margin. In the gross profit fixed costs are not considered in calculation.Net profit
margin ratio includes all costs to find know final performance of the income of a company. Net
profit margins called by different names like net profit, net profit margin percentage, net margin, net
profit ratio and more. The higher ratio indicates the effective cost control of the company. The
industry average shows to the investors about how the management and company operation fighting
against its competitors. To know about the different industries performance simply we can compare
with the net profit of different industries, this result shows investors which industries are relatively
great profitable than others. This analysis is using as a common methods for business valuation.
Table showing Net profit Margin Ratio: (Amount: INR in crores)

Year NPAIT* Sales Net profit margin
ratio
2017-18 39.51 491.70 8.03
2018-19 24.12 423.80 5.69
2019-20 37.25 479.90 7.76
NPAIT*=Net Profit Affter Income Tax
Analysis:
Above table tells about NP ratio. In 2017-18 NP is 8.03, in 2018-19 NP is 5.69 and in 2019-20 NP is
7.76. So the company’s NP ratio is goes up and down during 3 years.
Graph showing Net Profit Margin Ratio

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NET PROFIT MARGIN RATIO

491.7 479.9
500 423.8
450
400
350
300
250
200
150
100 39.51 24.12 37.25
8.03 5.69 7.76
50
0
NPAIT* Sales Net profit margin ratio
2017-18 2018-19 2019-20
Interpretation:
The standard ratio NPM is usually 20% minimum. If it is less than 20% then it is less
productivity. If it is higher than 20% then it is more productivity. In TGSIN NP ratio is less than
20%. So the company has very low productivity.
OPERATING PROFIT MARGIN RATIO:

lOMoARcPSD|32859758
The Operating Profit Margin ratio also known in the name of operating margin ratio. It is also one
of the Profitability Ratio. It calculates what proportion of total revenues is formed up by operative
financial gain.The operating profit ratio is vital to each creditors and investors as a result of it helps
show however sturdy and profitable a company's operations. Weather an organization that receives
thirty percentages of its profits from its sales excluding all expenses, implies that organization work
is going smoothly and this is very helpful to firm to achieve its goal. Every company should
depends their income, if it starts to decline it must be adopt new things or activities to gain the
income or else to start find some other way to replace to gain income. A greater operative margin
shows good progress or favorable to company so it has enough money to repay its variable and
fixed cost The lower rate of operative margin is not possible to pay its cost.
Operating margin ratio is nothing but Net profit before interest and tax. The operating expenses,
depreciation are subtracted by total sales or revenue of the year to get EBIT
Table showing Operating Margin Ratio: (Amount: INR in crores)

Year EBIT Sales Operating Marging
ratio
2017-18 166.10 491.70 23.61
2018-19 122.60 423.80 28.93
2019-20 155.00 479.90 32.30
Analysis:
In the above table show OP ratio of TGSIN. In 2017-18, 2018-19 and 2019-20 company
has 23.61, 28.93 and 32.30 OP ratio respectively. OP is increasing year to year by 3 to 4 %.
Graph showing Operating Profit Margin Ratio

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OPERATING PROFIT MARGIN RATIO

491.7 479.9
500
423.8
450
400
350 2017-18
300 2018-19
2019-20
250
166.1 155
200
122.6
150
100
23.6128.93 32.3
50
0
EBIT Sales Operating Marging ratio
Interpritation:
The standard ratio is minimum 30% and if the profit is high, then more cash can be
managed for variable cost and fixed cost. So in 2017, 2018 it has less than 30% OP. But in last year
it goes more than minimum ratio.
CASH PROFIT RATIO:

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The cash profit ratio is extra dependable indicator of overall performance wherein there are
sharp fluctuations the profit before than tax and net make the most of year to year due to variations
in depreciation charged. Cash earnings magnitude relation evaluates the performance of operations
in terms of money technology and isn't stricken with the strategy of depreciation charged. It
additionally facilitates inter firm comparison of overall performance owing to the very fact that
completely different methods of depreciation may be adopted via different firms. It measure the
cash generation in business.
Cash profit
Cash profit ratio =
Sales
Cash profit= Net profit+ Depreciation
Table showing Cash Profit ratio: (Amount: INR in crores)
Year Cash profit Sales Cash profit ratio

2017-18 62.44 491.70 12.70
2018-19 54.52 423.80 12.86
2019-20 76.78 479.90 16.00
Analysis:
In above table tells about Cash Profit of the company. The ratio 12.70, 12.86 and 16
company has in 2017-18, 2018-19 and 2019-20 respectively. The cash profit of the company goes
up in last 3 years.It tells profit of the company raises in 3 years.
Graph showing Cash Profit ratio:

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CASH PROFIT RATIO

600
491.7 479.9
500
423.8
400 2017-18
2018-19
300 2019-20
200
100 62.4454.5276.78
12.7 12.86 16
0
Cash profit Sales Cash profit ratio
Interpritation:
There is no Standard ratio, but high ratios better the Cash Transaction of the business. Ratio
goes high in last 3 years. So cash transaction and profit of the company goes high in that last year.

lOMoARcPSD|32859758
RETURN ON ASSET:
The Return on Asset ratio, often known as the Return on total asset, is a profitability ratio
that measures the net profits produced by using overall property throughout duration by way of
evaluating net profits to the common overall property. In other words, the return on asset ratio or
ROA measures how efficaciously an agency can perform its property to produce profits during a
year. On account that business enterprise assets' sole reason is to generate revenues and convey
profits, this ratio allows each control and investors see how well the enterprise can convert its
investments in property into earnings.
It makes sense that a better ratio is extra favorable to traders as it indicates that the firm is
more effective dealing with its assets to supply more amounts of internet earnings. A nice ROA ratio
commonly suggests an upward earnings trend as well. ROA is most useful for comparing
organizations within the equal enterprise as distinctive industries use assets in a different way.
This ratio also can be represented as a manufactured from the profit margin and the total
asset turnover. Either formula may be used to calculate the return on total property. When use of
primary components, common overall property are typically used because asset totals can vary at
some stage in the year. In reality add the start and finishing assets together at the balance sheet and
divide with the aid of to calculate the common belongings for the year. It might be apparent, but it is
crucial to mention that common overall assets are the ancient price of the assets at the balance sheet
without deliberating the gathered depreciation.
Table showing Return on Asset Ratio: (Amount: INR in crores)

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Year NPAIT Total assets ROA ratio

2017-18 39.51 226.92 17.41
2018-19 24.12 222.85 10.82
2019-20 37.25 213.04 17.48
Analysis:
In the above table showing 3 years ROA ratio of TGSIN. In 2017-18 ratio is 17.41, in
2018-19 ratio is 10.82 and in 2019-20 it goes again 17.48. So ratio goes fluctuating in 3 years.
Graph showing Return on Asset Ratio:

lOMoARcPSD|32859758
Return On Asset Ratio

250 226.92
222.85
213.04
200
2017-18
150 2018-19
2019-20
100
39.51 37.25
50 24.12 17.4110.8217.48
0
NPAIT Total assets ROA ratio
Interpretation:
In the above chart shows Return on Asset ratio. It goes up and down in last 3 years. In 3 years this
ratio was up and down by 7%. The company maintained good asset ratio in the company.
RETURN ON EQUITY OR RETURN ON NET WORTH OR RETURN ON

SHAREHOLDERS FUND:

lOMoARcPSD|32859758
The ROE or return on equity ratio or is a profitability ratio that calculates the ability of a
firm to generate income from its shareholders investments inside the company. In different words,
the return on equity ratio suggests how a whole lot income each rupees of commonplace
stockholders' equity generates.
That is a critical measurement for capacity traders due to the fact they need to look how
efficiently an enterprise will use their money to generate net earnings. ROE is also a hallmark of the
way how powerful management is at using their equity financing to fund performance and develop
the company.
Traders need to see an excessive return on equity ratio due to the fact this shows that the
employer is the usage of its traders' budget efficaciously. Great ratios are almost always better than
decrease ratios.
Table showing Return on Equity Ratio: (Amount: INR in crores)

Year NPAIT Net worth ROE
2017-18 39.51 159.05 24.84
2018-19 24.12 171.55 14.06
2019-20 37.25 152.91 24.36
Analysis:
The above table shows return on equity ratio. In the year 2017-18, 2018-19 and 2019-20 it shows
24.04, 14.06 and 24.36 ROE ratio.
Graph showing Return on Equity Ratio:

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Return On Equity Ratio

171.55
180 159.05
152.91
160
140
120 2017-18
2018-19
100
2019-20
80
60 39.51 37.25
40 24.12 24.84 24.36
14.06
20
0
NPAIT Net worth ROE
Interpretation:
In the above graph tells ROE of TGSIN. The higher the rate shows is the proper use of
shareholders fund to earn more profit. The standard ratio here should be minimum of 20%. In 2017-
18 and 2019-20 they maintained more than minimum ratio. And in 2018-19 it goes below than 20%.
So it shows fluctuating ratio.
Return on Capital Employed (ROCE)

It is a profitability ratio that measures how efficaciously an organization can earn profits
from its capital employed with the aid of comparing net operating income to capital employed.

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Return on Capital Employed is an extended-term profitability ratio because it shows how efficiently
properties are executing when deliberating long-term financing. Therefore return on capital
employed is more precise than return on net worth ratio for evaluate the carry on performance of the
firm. A better ratio could be greater favorable because it means that greater earnings are generated
through each dollar of capital employed.
Here we add share capital, long term liability, and reserves and surplus to get capital employed
Table showing Return on Capital Employed ratio: (Amount: INR in crores)

Year NPAIT Capital employed ROCE
2017-18 39.51 163.48 24.17
2018-19 24.12 178.41 13.51
2019-20 37.25 160.19 23.25
Analysis:
In this table it shows ROCE of TGSIN. In 2017-18 they have 24.17, 2018-19 they have
13.51 and 2019-20 they have 23.25 ROCE.
Graph showing Return on Capital Employed ratio:

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Return On Capital Employed Ratio

178.41
180 163.48 160.19
160
140
120 2017-18
2018-19
100 2019-20
80
60 39.51 37.25
40 24.12 24.17 23.25
13.51
20
0
NPAIT Capital employed ROCE
Interpretation:
The standard rate of return on capital employed is 30% for manufacturing companies if
the rate of ratio is more or equal to 30% indicates that there is more productivity in consumption of
capital employed to make profit. So their ROCE is below 30% in all year. So it tells company has
less productivity.
Debt-Asset Ratio:

lOMoARcPSD|32859758
The debt to asset ratio is a leverage ratio that that measures the amount of overall assets
which can be financed by lenders in favorite to investors. In different phrases, it indicates what
proportion of assets is funded via borrowing compared with the share of resources that area unit
funded through the investors. Essentially it represents how an organization has developed and gains
its assets for the years. Organizations can motivate investor to invest their capital, support them to
produce profits to accumulate its own property, or else debt. Almost, both options are preferable in
maximum cases. This is a critical calculation because it indicates how leveraged the employer by
means of looking at how an awful lot of assets are owned through the shareholders inside the shape
of net worth and creditors inside the form of debt. Both buyers and creditors utilize this find to
make conclusion about the employer. Analysts, investors, and lenders use this measurement to
assess the general danger of an enterprise. Firms with a higher parent are taken into consideration
huge risk to put money into and credit to because they're high leveraged. That means the
organization has to pay most of the percentage of its profit for principle amount and interest than a
business enterprise of a same size with lesser ratio.
Table showing Debt to Asset ratio: (Amount: INR in crores)

Year Total Debt Total Asset DOA Ratio
2017-18 5.43 226.92 2.39
2018-19 4.78 222.85 2.14
2019-20 5.40 213.04 2.54
Analysis:
In the above graph show Debt to Asset ratio. The ratio is 2.39, 2.14 and 2.54 in 2017-18,
2018-19 and 2019-20 respectively. It is based on total Debt and Asset of the company.
Graph showing Debt to Asset ratio:

lOMoARcPSD|32859758
Debt to Asset Ratio

250 226.92
222.85
213.04
200
2017-18
150 2018-19
2019-20
100
50
5.43 4.78 5.4 2.39 2.14 2.54
0
Total Debt Total Asset DOA Ratio
Interpretation:
The higher rate of Debt-asset ratio is negative impact of the company. Most of the profit
has to be paid for the debt as interest so it’s more risky, if it is higher rate and vice-versa. Normally
the ratio is less than or equal to 50% that means 0.5%. So they maintained good DOA ratio in the
company.
DEBT-EQUITY RATIO:

lOMoARcPSD|32859758
The debt to equity ratio is an economic, liquidity ratio that compares an organization’s on
the whole debt and total net worth or equity. The debt to equity ratio suggests the proportion of
organization financing that invest from creditors and investors. A better debt to equity ratio
indicates that extra creditor financing (bank loans) is used than investor financing (shareholders).
Every industry has extraordinary debt to equity ratio benchmarks, as a few industries tend to apply
extra debt financing than others.
A debt ratio of 0.5 approach that there are 1/2 as more liabilities as there is equity. In other
phrases, the property of the business enterprise is funded 2:1 via buyers to creditors. A decrease debt
to equity ratio usually indicates an extra financially strong commercial enterprise. Firms with a
more debt to equity ratio are considered extra unstable to lenders and traders than firms with a
decrease ratio. In contrast to equity financing, debt must be repaid to the lender. Since debt
financing additionally requires debt servicing or everyday interest bills, debt may be a far extra
steeply-priced form of financing than equity financing. Firms leveraging huge amounts of debt may
not be able to make the bills.
Table showing Debt to Equity Ratio: (Amount: INR in crores)
Year Total Debt Total Equity DOE Ratio

2017-18 5.43 159.05 3.41
2018-19 4.78 171.55 2.78
2019-20 5.40 152.91 3.53
Analysis:
They maintained DOE in 2017-18 3.41, 2018-19 2.78 and 2019-20 3.53 respectively. It
goes increased and decreased ratio in last 3 years.
Graph showing Debt to Equity Ratio:

lOMoARcPSD|32859758
Debt to Equity Ratio

180 171.55
159.05
160 152.91
140
120 2017-18
2018-19
100
2019-20
80
60
40
20 5.43 4.78 5.4 3.41 2.78 3.53
0
Total Debt Total Equity DOE Ratio
Interpretation:
High ratio shows higher risk it means that the debt is more, then the company has to
pay higher amount of interest. If the debt is less than the equity, then it indicates there is lower sum
of interest and the risk is low. Here debt is lower than the equity. So company has low risk.
Earnings Per Share:

lOMoARcPSD|32859758
Earnings per share or EPS are an important financial measure, which indicates the
profitability of a company. It is calculated by dividing the company’s net income with its total
number of outstanding shares. It is a tool that market participants use frequently to gauge the
profitability of a company before buying its shares.
EPS is the portion of a company’s profit that is allocated to every individual share of
the stock. It is a term that is of much importance to investors and people who trade in the stock
market. The higher the earnings per share of a company, the better are its profitability. While
calculating the EPS, it is advisable to use the weighted ratio, as the number of shares outstanding
can change over time.
Earnings per share can be calculated in two ways:
1) Earnings per share: Net Income after Tax/Total Number of Outstanding Shares
2) Weighted earnings per share: (Net Income after Tax - Total Dividends)/Total Number of
Outstanding Shares
Table showing Earnings Per Share: (Amount: INR in crores)

Year Total Profit Total No. of shares EPS
2017-18 39.51 5 7.90
2018-19 24.12 5 4.82

lOMoARcPSD|32859758
2019-20 37.25 5 7.45

Analysis:
Table shows Earning Per Share of TGSIN for 3 years. In 2017-18 7.90 EPS, in 2018-
19 4.82 EPS and in 2019-20 EPS respectively. In 2016-17 very high EPS and 2017-18 very low
EPS at TGSIN.
Table showing Earnings Per Share:
Earnings Per Share

39.51
37.25
40
35
30
24.12 2017-18
25 2018-19
2019-20
20
15
7.9 7.45
10 5 5 5 4.82
5
0
Total Profit Total No. of shares EPS
Interpretation:
In the above pie diagram shows 3 EPS of last 3 years. In 2018-19 very low EPS
compared to last and next year. So shareholders may or may not invest money to this
company. Because it is decreased to 4.82.
CHAPTER 5
FINDINGS SUGGESTIONS AND CONCLUSIONS
MAJOR FINDINGS
Particulars 2017-18 2018-19 2019-20

Gross Profit 40.09 38.11 37.82

lOMoARcPSD|32859758
Net Profit 8.03 5.69 7.76

Operating Profit Margin 23.61 28.93 32.30
Cash Profit 12.70 12.86 16.00
Return on Asset 17.41 10.82 17.40
Return on Equity 24.84 14.06 24.36
Return on Capital 24.17 13.57 23.25
Employed
Debt on Asset 2.39 2.14 2.54
Debt on Equity 3.41 2.78 3.53
Earning Per Share 7.09 4.82 7.45
 The manufacturing company has to maintain minimum gross profit ratio is 25% to 30%.
 The manufacturing company has maintain 20% minimum standard, there is very less
productivity which is below than 20%. A higher rate of gross profit indicates the good
position.
 The standard of this ratio is 30% minimum. If it is below then there is no sufficient money
to spend for its operating expenses.
 This analysis is used to know about condition of cash transaction of the company. There is
no standard for this ratio.
 The companies must have to maintain the standard ROE of minimum 20%. If the ROE is
more so the company has high Profitability.
 The standard ratio of a Company has to maintain minimum 30% to utilize the capital
employed.
 The standard Debt-Equity is to be in 2:1 ratio.
SUGGESTIONS:
 It’s more important to stabilize and improve profit to increase ROCE with rising EAT.
 Gross Profit must be increased.
 Return on Asset and Equity must be maintained stable.
 Net profit must be maintained in stable.
 They must maintain Return on Equity is more than 20%.

lOMoARcPSD|32859758
5.3 CONCLUSIONS:
Capital arrangement and Profitability have been taken for analysis in this study. The
company has shown dissimilarity in their ratio in all 3 years.
 In TGSIN the profitability ratio for 2017-2019 has shown very well.
 They maintained minimum ratio in the company.
 The company has good EPS in 2017 and 2019.
From the ratio we can conclude that the above said variables play a significant role in the
capital structure. Hence it is concluded that the financial variables like return on total assets and net
profit margin are the major variables of the capital arrangement and the profitability ratios have
been used by the company to know the profit for all the 3 years. The profitability ratio for 2017-
2019 has shown excellent where it has performed well during this period.
Finally I can conclude that company’s performance is good in all the three years but to make
more profit company has to concentrate more to decrease cost while manufacturing the goods.
BIBLIOGRAPHY
REFERENCE WEBSITES:
 www.tgsin.com
 www.toyotabharat.com
 www.capital-structure.com

lOMoARcPSD|32859758
OTHER REFERENCE:
 Annual report of the company.

 Financial management by Hanumanthaiah.R and Umesh Nayak.

Final Project On Cash Flow Statement

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Final project on cash flow statement

INTERNATIONAL BUSINESS MANAGEMENT- (Bangalore University)

Studocu is not sponsored or endorsed by any college or university

INTRODUCTION ABOUT INTERNSHIP

This was an opportunity getting to related concepts learned by me to the practical

 Develop and improve business skills in communication, technology, quantitative reasoning,

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TOPIC SELECTED FOR THE STUDY

INTRODUCTION ABOUT THE TOPIC

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THEORITICAL BACKGROUND OF THE STUDY

CAPITAL STRUCTURE AND FINANCIAL PERFORMANCE DEFINITION:

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FACTORS INFLUENCING CAPITAL STRUCTURE:

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These are factors which generally affect the business.

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A correlation matrix is a table showing correlation coefficients between sets of variables.

FEATURES OF AN OPTIMAL CAPITAL STRUCTURE:

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An optimal capital structure should have the following features,

NEED OF THE STUDY

 The equation of capital structure in TGSIN PVT LTD.

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INTRODUCTION ABOUT THE COMPANY:

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MAY 03 : Gold award winner in CCQC convention in Mysore.

AUGUST 4 : Gold winner in CCQC convention award in Bangalore.

DECEMBER PAR : Excellence award in NCQC Convention in Gwalior.

January gold award winner in TKSA Bangalore.

February The economic times polymer award excellence in plastic

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Mr.BIJAY KRISHNA SHRESTHA

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The spirit of the company can be conceptualized into,

Customer satisfaction is an important element in their business, and satisfying customer

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Company has 5 branches in India. They are located in

Business Plan 2025:

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Structure represents how the company is

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TGSIN categorized their workers in two groups. They are

Details of facilities provided to the staff:

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 Canteen facilities within the campus of the organization.

Quality commitments in TGSIN:

Main rules inside the campus of TGSIN:

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 Improve the business of a company.

The Seven Elements:

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Hard Elements Soft Elements

Strategy Shared values

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Clients for TGSIN:

 TOYOTA KIRLOSKAR MOTOR PVT LTD

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This SWOT examination is an investigation embraced over an applied structure to a precise