Meaning of Capital Structure

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.
DISSERTATION REPORT ON CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD. Submitted for the partial fulfilment of the degree of MASTER OF FINANCIAL MANAGEMENT
SUPERVISED BY: Professor C.P.Mall Faculty of commerce

Banaras Hindu university
SUBMITTED BY: KANCHAN JAISWAL

MFM 4th sem (2012-2014) Enrollment no.312223
Faculty of commerce Banaras Hindu university Varanasi- 221005
PREFACE
The Dissertation report on Capital structure of Hindalco Industries ltd. has been an honest reflection of various dimensions of a detailed study conducted by me recently to address a relevant curriculum requirement in our MFM programme. The work contents to explore the various pertinent issues in; Capital structure of Hindalco Industries ltd. This project emphasizes on the financial aspect about the company and its financing mix. I have tried my level best to make a good dissertation report which could be further used for any reference work. However no one can claim perfection in it entirely. So I apologize further discrepancy, if any crept in . Preparation of project requires perseverance, initiative, proper guidance and direction. So it mandatory to take aids from various departments.
ACKNOWLEGMENT
Life of human beings is full of interactions. No one is self-sufficient by himself whenever anyone is doing some work. I cannot forget acknowledging them in few words as without the guidance and co-ordination of them in my dissertation report would not have been possible. A large no. of individual contributed to this project. I am thankful to all of them for their help and encouragement. My writing in this project report has also been influence by a no. of websites and standard text book. As far as possible they have been fully acknowledgment at the appropriate place. I place my gratitude to all of them. First of all I owe my heartful thanks to Prof.A.R.Tripathi, DEAN, Commerce Faculty BHU for providing me a golden oppourtunity to carry out with the Dissertation as a part of partial fulfillment of MFM Degree for the session 20122014. I would like to express a sense of indebtness to my supervisor Professor. C.P. Mall Commerce Faculty, BHU. It had been a great privilege to work under his able guidance. His all accommodating nature, cooperative attitude and personal affectionate care have been the true guiding force behind this work. I am also thankful to all staff of Faculty of Commerce BHU for their kind cooperation during completion of this dissertation.
GUIDE CERTIFICATE
TO WHOMSOEVER IT MAY CONCERN This is to certify that project report titled CAPITAL STRUCTURE has been presented by KANCHAN JAISWAL,a student of M.F.M. Session (2012-2014) of B.H.U.. The study was conducted with special reference to Hindalco Industries Ltd. Aluminium division Renukoot,Sonebhadra.I recommend this project for evaluation.
C.P.MALL
DATE:25/04/2014
TABLE OF CONTENT
Particulars
Chairmans Foreword Profile of the company Introduction of Aditya Birla group Group Vision,mission and values Product profile Indian roots Joint venture General overview of Renukoot Introduction of Hindalcos Industries LTD. Management team Organisational structure History, organisational profile of Hindalco Research and development centre Awards and recognitions Projects undertaken by Hindalco Products of Hindalco Production capacity Sales ratio, competitors, significance of study and research methodology Introduction of financial management Meaning of Capital Structure Factors Determining the Capital Structure Optimal Capital Structure & Essentials, considerations in planning & framework of capital structure Hindalcos Capital Structure Ratio Analysis & Cash Flow Statement Balance Sheet & SWOT Analysis Findings, Suggestion and Conclusion, current news Bibliography
Page no.
6 7 8-9 10 11 12 13-16 17 18 19-26 27-28 29-30 31 32 33-37 38-39 41 42-43 44-47 48-52 52-76 77-80 82-83 84
Chairmans Foreword
Time and again,the supermacy of the human element cannot be over emphasized.The success of failure of an organisation depends on people,on human beings,on their talent,on their initiatives,on their ability to lead and co-ordinate with others,to work as a team.It also depends on the ability of the organisation,to motivate them to a greater heights.
We carry forth this vision of the people
(KUMAR MANGALAM BIRLA)
ADITYA BIRLA GROUP

Aditya birla group, with the turnover of over US $ 40 billion and 136,000 employees, is among top three leading business houses in India. The Group has been ranked Number 4 in the global Top Companies for Leaders survey and ranked Number 1 in Asia Pacific for 2011. Top Companies for Leaders is the most comprehensive study of organizational leadership in the world conducted by Aon Hewitt, Fortune Magazine, and RBL (a strategic HR and Leadership Advisory firm).The Aditya birla group is Indias first truly MNC whose over 30% of revenues flow from its operations across the world. The group is transactional conglomerate with 72 state-of-the-art manufacturing units and sectoral span, in India, Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia, China. (36 countries) Over 66 units in India as well as abroad (in Thailand, Indonesia, Malaysia, Philippines, Egypt, Canada, Australia, China) and international trading operations spanning several countries included Singapore, Dubai, Russia, Vietnam, Myanmar, and China make it Indias first truly multinational conglomerate.
GROUP VISION
To be the premium metals major, global in size and reach, with a passion for excellence
GROUP MISSION
To relentlessly pursue the creation of superior shareholder value by exceeding customer expectations profitability, unleashing employee potential and being a responsible corporate citizen adhering to our values.
GROUP VALUES
Integrity, Commitment, Passion, Seamlessness, Speed
Aditya Birla group enjoys a front runner position:

Globally:A metals powerhouse among the worlds most cost efficient Aluminium and copper producers. HindalcoNovelis from its fold in fortune 500 company. It is the largest Aluminium rolling company. It ranks as No.1 in viscose staple fiber The largest single location palm oil producer The third largest producer of insulators The third largest producer of carbon black The eleventh largest producer of cement and the largest in single geography The largest single location copper smelter Among the worlds top 15 BPOs and among Indias top three Among the best energy efficient fertilizer plants The largest Indian MNC with manufacturing operations in the USA
IN ASIA: The largest integrated aluminum producer Among the best energy-efficient fertilizer plants in Asia
IN INDIA: A premier branded garment player The second largest chore alkali sector Among the top five mobile communication company Among the top three supermarket chains in the retail market Second largest player of viscous filament yarn Second largest private sector insurance company and a leading assests management company Among the top 6 BPO companies
Product Profile
Indian roots
COMPANY
GRASIM
PRODUCTS/SERVICES
Viscose staple fiber,Rayon grade pulp,Cement,chemicals,Sponge iron,Textiles
Ordinary Portland Cement,Portland blast furnance slag cement,portland pozzolana cement and grey portland cement Cement and Clinker Aluminium and copper Aluminium Foils Caustic soda Cellular telecommunications Insulators Garments,Textiles,Carbon black,Viscose filament yarn Insurance Investment planning services Flourine chemicals Mutual funds Application development maintenance and enhancement solutions CRM services Asset based finance,Corporate finance and investment banking Non life advisory services Multi format stores Carbon black Garments
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ULTRA TECH CEMENT LTD.
SHREE DIGVIJAY CEMENT HINDALCO INDUSTRIES LTD. INDIAN ALUMINIUM COMPANY LTD. BIHAR CAUSTIC AND CHEMICALS LTD. IDEA CELLULAR LTD. ADITYA BIRLA INSULATOR LTD. ADITYA BIRLA NUVO BIRLA SUN LIFE INSURANCE CO. LTD. BIRLA SUN LIFE DISTRIBUTION CO.LTD. TANFAC INDUSTRIES LTD. BIRLA SUN LIFE ASSET MANAGEMENT CO.LTD. PSI DATA SYSTEMS TRANS WORKS BIRLA GLOBAL FINANCE LTD. BIRLA INSURANCE ADVISORY SERVICES LTD. ADITYA BIRLA RETAIL HI TECH CARBON MADURA GARMENTS
Joint ventures
COMPANY Birla sun life insurance co.Ltd. Tanfac industries Ltd. Birla sun life asset management co.Ltd. Birla sun life distribution co. Ltd. PARTNERS Sun life(CANADA) Tamilnadu industrial development corporation(TIDCO) Sun life(CANADA) Sun life (CANADA) PRODUCTS Insurance solutions Flourine
Mutual funds Investments planning solutions
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INTRODUCTION OF HINDALCO INDUSTRIES LTD.
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HINDALCO INDUSTRIES LTD.

INTRODUCTION:An industry leader in aluminium and copper An industry leader in aluminium and copper, Hindalco Industries Limited, the metals flagship company of the Aditya Birla Group is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. the visionary late Mr. G.D. Birla set up India's first integrated aluminium facility at Renukoot, in the eastern fringe of Uttar Pradesh, India. It was backed by a captive thermal power plant at Renusagar in 1967. Hindalco attained its leadership position in the aluminium industry under the dynamic leadership of the late Mr. Aditya Vikram Birla a formidable force in the Indian industry. In 1958, The Company was Incorporated on 15th December, at Mumbai to manufacture alumina, aluminium and aluminium fabricated items. The Company was formed by the house of Birlas in collaboration with the Kaiser Organisation of U.S.A. Manufacturing Location:- The Kollur foil plant ( Andhra Pradesh). In 2008, consequent to the acquisition of Indal by Hindalco. Other locations are:- Belur(west Bengal), Dahej, Hirakud(Orissa), Belgaum, Silvassa(orissa), Taloja(maharashtra), Alupuram(kerala), Renukoot(u.p) , Muri(Jharkhand). And it was through the vision and guidance of Mr. Kumar Mangalam Birla, the Group Chairman that the business segments of aluminium and copper are consolidated to make Hindalco the non-ferrous metals powerhouse it is today. Later acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt. Gordon copper mines in Australia, strengthened our position in value-added alumina, aluminium and copper products. The acquisition of Novelis Inc. in 2007 positioned us among the top five aluminium majors worldwide and the largest vertically integrated aluminium company in India. Today we are a metals powerhouse with high-end rolling capabilities and a global footprint in 13 countries. Our consolidated turnover of USD 15.85 billion (Rs. 72,078 crore) places us in the Fortune 500 league. Nearly 1,000 aluminium panels make up the outer shell of 'Spaceship Earth', the world's most famous geodesic dome, at the Walt Disney World's Epcot Center, Florida. Operations in 5 continents, reaching customers in more than 50 countries. One of the worlds leading low cost producers of aluminium. One of the worlds leading largest custom copper smelters at a single location. Birla Copper is the only manufacturer of the 19 mm diameter copper rod in India.
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This rod is used for groove conductors and profiles. Largest integrated aluminium producer in the world.
OUR VISION , MISSION AND VALUES

Our vision:To strengthen our position as a premium Aluminium company, sustaining Domestic Leadership and Global Competitiveness through Innovation, Quality and Value Added Growth
Our mission:To pursue the creation of value for our Customers, Shareholders, Employees and society at large
Our values Path to excellence:INTEGRITY
Honesty in every action
COMMITMENT
Deliver on the promise PASSION
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Energized action.
SEAMLESSNESS
Boundary less in letter and spirit SPEED
One step ahead.
QUALITY POLICY
We, at Hindalco, shall aim to achieve and sustain excellence in all our activities. We are committed to total customer satisfaction by providing products and services, which meet or exceed the customers expectations. Modernization of the manufacturing facilities, stress on technological innovation and training of employees at all levels shall be a continuous process in Hindalco. A motivated workforce with a sense of pride in the organization shall lead us towards total quality.
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MANAGEMENT TEAM
Board of Directors
Mr. Kumar Mangalam Birla, Chairman Mrs. Rajashree Birla Mr. C. M. Maniar Mr. M. M. Bhagat Mr. K. N. Bhandari Mr. A. K. Agarwala Mr. N. J. Jhaveri Mr. Ram Charan Mr. Jagdish Khattar Mr. D. Bhattacharya, Managing Director Mr. M. Damodaran
CHEIF FINANCIAL OFFICER

Mr. Praveen Maheshwari
Head Corporate Projects & Procurement Cell

Mr. B.B Jha
Company Secretary
Mr. Anil Malik
Chief People Officer

Mr. Vineet Kaul
Business / Unit Head

Mr. Dinesh Kumar Kohly, Chief Operating Officer (Renukoot & Renusagar Unit)
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ORGANIZATION STRUCTURE-FINANCE AND COMMERCIAL
Head Finance & Commercial
DULI KABRA
joint president
Secretary to Head K C ANTONY
Head Finance and Accounts AJAY JOSHI VP
Secretary MN SHASHIDHARA N
Acc. OH,Sales Accounts SHREYANS KAVDIA AGM
SH-Procurement Acc.& System RAJESHWAR SHARMA Sr.Mgr.
SH-Taxation,Audit & FG Clearance DEEPAK GARG GM
SHERP/Banking/Ins./F A CO. VIMAL RAHEJA MANAGER
SH-PF & Retirals PUSHKAR SINGH MANAGER
AH-Contract Cell M K SRIVASTAVA Asst. Mgr.
FLE-Contract Technical cell RAJESH PAL Sr. Engr. 17
HISTORY OF HINDALCO INDUSTRIES LIMITED:Hindalco embarked on its journey in 1958. Its first real contribution to the vision of an industrial India occurred four years later, when the visionary late Mr. G.D. Birla set up India's first integrated aluminium facility at Renukoot, in the eastern fringe of Uttar Pradesh, India. It was backed by a captive thermal power plant at Renusagar in 1967. Hindalco attained its leadership position in the aluminium industry under the dynamic leadership of the late Mr. Aditya Vikram Birla a formidable force in the Indian industry. And it was through the vision and guidance of Mr. Kumar Mangalam Birla, the Group Chairman that the business segments of aluminium and copper are consolidated to make Hindalco the non-ferrous metals powerhouse it is today. This was achieved in part by expansion through mergers and acquisitions with companies such as Indal and Birla Copper. Hindalco also secured copper reserves and amplified its operating base by acquiring the Australian Nifty and Mt. Gordon copper mines. Over the years, Hindalco has grown into the largest vertically integrated aluminium company in the country and among the largest primary producers of aluminium in Asia. Its copper smelter is today the world's largest custom smelter at a single location. In 2007, the landmark acquisition of Novelis Inc., the world's largest aluminium rolling company, placed Hindalco's footprint across the globe, securing it a rank amongst the top five global aluminium majors and also placing it in the Fortune 500 league. Nearly 1,000 aluminium panels make up the outer shell of 'Spaceship Earth', the world's most famous geodesic dome, at the Walt Disney World's Epcot Center, Florida. Operations in 5 continents, reaching customers in more than 50 countries. One of the worlds leading low cost producers of aluminium. One of the worlds leading largest custom copper smelters at a single location. Birla Copper is the only manufacturer of the 19 mm diameter copper rod in India. This rod is used for groove conductors and profiles. Largest integrated aluminium producer in the world.
1958 -The Company was Incorporated on 15th December 1958, at Mumbai to

Manufacture alumina, aluminium and aluminium fabricated items. The Company was formed by the house of Birlas in collaboration with the Kaiser Organization of U.S.A. According to the Company's agreement with Kaiser Aluminium
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and Chemical Corporation, the Collaborators agreed to allot to the Collaborators 4,80,000 fully paid-up equity shares of Rs 10 each.
1962 -Commencement of production at Renukoot (Uttar Pradesh) with an initial capacity

of 20,000 MTPA of aluminum metal and 40,000 MTPA alumina
1965 -Downstream capacities commissioned (rolling and extrusion mills at Renukoot) 1967 - Commission of Renusagar Power Plant- a strategic and farsighted move. 1991 -Beginning of major expansion programme. 1995 -Mr. Kumar Mangalam Birla takes over as chairman of Hindalco board. 1998 - Foil Plant at Silvassa goes on stream. 1999 - Aluminium alloy wheels production commenced at Silvassa.
Brownfield expansion of metal capacity at Renukoot to 2,42,000 TPA
2000 - Acquisition in controlling stake in Indian Aluminum Company Limited (Indal)

with 74.6% equity holding.
2002 - The amalgamation of Indo Gulf Corporation Limited copper business, the Birla
Copper with Hindalco with the effect of 1st April 2002
2003 -Hindalco acquires Nifty copper mine in March 2003 through Aditya Birla Minerals
Ltd (ABML, formally Birla Minerals Pvt Ltd. Equity stake in Indal increased to 96.5% through an open offer. Brownfield expansion of aluminum smelter at Remukoot to 3,45,000 TPA 2004 - Copper smelter expansion to 2,50,000 TPA
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MOU signed with state government of Orissa and Jharkahand for setting up Greenfield aluminua refining, smelter and power plant.
2006 - Hindalco announces 10:1 stock split . Each share with face value of Rs 10 per
share split into 10 shares of Re.1 each. Hindalco completes largest Right issue in the history of Indian capital market with total size of Rs 22,266 million. Equity offering and subsequent lisition of birla Minarals Ltd. On Australia stock Exchange. Joint venture with Alumex USA for manufacture of high strength aluminium alloys or application in aerospace, sporting goods and surface transport industries.
2007 - The acquisition of Novelis Inc. a world leader in aluminium rolling and can
recycling, marked a significant milestone in the history. The aluminium industry in India. With Novelis under its fold Hindalco ranks among the global top five aluminium majors, as as integrated producer with low-cost alumina and aluminium facilities combined with high-end rolling capabilities and a global footprint in 13 countries. Hindalco awarded the CII - Sorabji Green Business Centre National Award for Excellence in Water Management 2007 Novelis becomes a Hindalco subsidiary with the completion of the Acquisition process. The transaction makes Hindalco the world's largest aluminum rolling company and one of the biggest producers of primary aluminum in Asia, as well as being India's leading copper Producer.
2008 The company has issued rights in the ratio of 3:7at a premium of Rs.95/- Per
Share.
2009 - Hindalco Industries, Aditya Birla group flagship firm, has decided to cut its
overseas operations and is restructuring its capital expenditure in India in an effort to stabilize operations. As part of this overall plan, Novelis, which Hindalco acquired for billion in 2007, is closing its sheet mill at Rogers tone in the UK, involving 440 job losses.
2010 - Hindalco ranked ninth across industries on Forbes Asia's Fab 50 Companies list
of Asia's 50 most valued companies. Hindalco and Birla White declared winners in the Golden Peacock Awards for Corporate Social Responsibility 2010 by an eminent international jury, headed by Justice P.M. Bhagwati, the erstwhile Chief Justice of India.
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Hindalco wins Amity International Business Schools, Amity Corporate Excellence Award for Corporate Social Responsibility. Hindalco has entered into an agreement with Coal India Ltd (CIL) pecific coal supplies to the Renukoot facility of Hindalco at 10 % premium over the agreed price.
2011- Hindalco Industries Ltd, Utkal Alumina International Ltd. (UAIL), 100%
subsidiary of Hindalco, is setting up a 1.5 MPTA alumina Refinery in Rayagada district of Orissa. The project will feed the alumina requirements of the Mahan and the Aditya smelters presently Under construction. The Company is setting up a Greenfield Aluminium Smelter Project in Madhya Pradesh (Mahan Project) with a capacity of 359,000 TPA of aluminium supported by 900 MW captive power plant at a cost (Including financing cost) of Rs. 10,500 Crs. Hindalco Industries, an integral part of the Aditya Birla Group announced it is expecting to commence its 1.5 million tons per Annum (MTPA) alumina refinery by January 2013, located in Orissa. Moving against the trend of avoiding any plan by companies amid global economic slowdown, Hindalco Industries has achieved financial closure for Rs 9,896 crore debt for its Greenfield smelter project at Lapanga in Odissa in one of the largest syndication in Recent times.
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ORGANISATIONAL PROFILE OF HINDALCO INDUSTRIES LIMITED

An industry leader in aluminium and copper An industry leader in aluminium and copper, Hindalco Industries Limited, the metals flagship company of the Aditya Birla Group is the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the worlds largest custom smelter at a single location. Established in 1958, we commissioned our aluminium facility at Renukoot in eastern Uttar Pradesh, India in 1962. Later acquisitions and mergers, with Indal, Birla Copper and the Nifty and Mt. Gordon copper mines in Australia, strengthened our position in value-added alumina, aluminium and copper products. The acquisition of Novelis Inc. in 2007 positioned us among the top five aluminium majors worldwide and the largest vertically integrated aluminium company in India. Today we are a metals powerhouse with high-end rolling capabilities and a global footprint in 13 countries. Our consolidated turnover of USD 15.85 billion (Rs. 72,078 crore) places us in the Fortune 500 league. Hindalco's businesses creating superior value units across the globe encompass the entire gamut of operations, from bauxite mining, alumina refining and aluminium smelting to downstream Hindalco is one of the leading producers of aluminium and copper. Our aluminium rolling, extrusions, foils, along with captive power plants and coal mines. Our copper unit, Birla Copper, produces copper cathodes, continuous cast copper rods and other by-products, such as gold, silver and DAP fertilizers. Our units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified. Several units have gone a step further with an integrated management system (IMS), combining ISO 9001, ISO 14001 and OHSAS 18001 into one business excellence model. We have been accorded the Star Trading House status in India. Hindalco's aluminium metal is accepted for delivery under the High Grade Aluminium Contract on the London Metal Exchange (LME). Our copper quality standards are also internationally recognized and registered on the LME with Grade A accreditation. Aluminium Hindalco's major products include standard and specialty grade alumina and hydrates, aluminium ingots, billets, wire rods, flat rolled products, extrusions and foil.
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The integrated facility at Renukoot houses an alumina refinery and an aluminium smelter, along with facilities for the production of semi-fabricated products; namely, redraw rods, flat rolled products and extrusions. The plant is backed by a co-generation power unit and a 742 MW captive power plant at Renusagar to ensure the continuous supply of power for smelter and other operations. A strong presence across the value chain and synergies between operations has given us a dominant share in the value-added products market. As a step towards expanding the market for value-added products and services, we have launched various brands in recent years Ever last roofing sheets, Freshwrapp kitchen foil and Freshpakk semi-rigid containers. Copper Birla Copper, Hindalcos copper unit, is located at Dahej in Gujarat, India. The unit has the unique distinction of being the largest single-location copper smelter in the world. The smelter uses state-of-the-art technology and has a capacity of 500,000 TPA. Birla Copper also produces precious metals, fertilizers and sulphuric and phosphoric acid. The unit has captive power plants for continuous power generation and a captive jetty to facilitate logistics and transportation. Birla Copper upholds its longstanding reputation for quality copper cathodes and continuous cast copper rods by assuring its management processes meet the highest standards. It has acquired certifications such as ISO-9001:2000 (Quality Management Systems), ISO-14001:2004 (Environmental Management System) and OHSAS-18001:2007 (Occupational Health and Safety Management Systems).
Mines Hindalco acquired two Australian copper mines, Nifty and Mt. Gordon, in 2003. The Birla Nifty copper mine consists of an underground mine, heap leach pads and a solvent extraction and electro winning (SXEW) processing plant, which produces copper cathode.
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The Mt. Gordon copper operation consists of an underground mine and a copper concentrate plant. Until recently, the operation produced copper cathode through the ferric leach process. In 2004, a copper concentrator was commissioned to provide concentrate for use at Hindalco's operations in Dahej. Cornerstones of growth Our well-crafted growth and integration hinges on the three cornerstones of cost competitiveness, quality and global reach. We are also committed to the triple bottom line accountability of economic, environment and social factors. Care for the community around our operating units is best exemplified by our deep-rooted social commitment.
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RESEARCH AND DEVELOPMENT CENTRES Technology defining the competitive edge Research and Development at Hindalco in India is spearheaded by its two R&D centres at Belgaum and Taloja, both recognised by the Department of Scientific & Industrial Research, DSIR, Government of India. Both centres are ISO 9001:2000 certified, and Taloja has also been accredited in accordance with the standard ISO/IEC 17025:2005 by the National Accreditation Board for Testing and Calibration Laboratories (NABL). Every manufacturing plant in turn has its own R&D labs, which work on quality assurance, process efficiencies, environmental standards and new product development. The Belgaum R&D centre conducts research in the field of bauxite, Bayer process and alumina, while the Taloja R&D centrespecialises in the field of oil and lube and aluminium related metallurgical services. Developmental and analytical services over the years have earned both R&D centres national and international recognition, including the National Award for R&D efforts. Hindalco offers industry leading technology and operating expertise to a large global customer base. Its network of technology centres around the world has over 200 employees dedicated to R&D and encompass the full spectrum of research and development, applied technology, market-led innovation and customer technical services.
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RECENT AWARDS WON Hindalco has won several awards for community welfare, environment protection, and also for quality and export performance.
Hindalco bagged the prestigious CII EXIM Bank Business Excellence Award 2011 for its "strong commitment to excel on the journey towards business excellence". Birla Copper, a division of Hindalco, won the IMC Ramkrishna Bajaj Quality Award Commendation Certificate. HindalcoRenusagar won the Greentech Safety Gold Award 2011 in power sector for outstanding achievement in safety management, by Greentech Foundation, New Delhi.
Renukoot "NIPM Gold Award for Best HR Practices" for the year 2010 by National Institute of Personal Management (NIPM). "NIPM Gold Award for Best HR Practices" for the year 2010 by National Institute of Personal Management (NIPM). Greentech Gold Safety Award 2010 for Occupational Health and Safety Management in the Mining & Metals sector by Greentech Foundation, New Delhi. Greentech Environment Excellence Gold Award 2010 in the metals sector for its efforts towards environment management, by Greentech Foundation, New Delhi. The Golden Peacock Award for Corporate Social Responsibility for the year 2010. Greentech HR Excellence Silver Award for 2010 for excellence in training. "Best Exporter Award" for 2010 by the Container Corporation of India for contributing to India's economic progress through significant volume of exports. National Energy Conservation Award (Second Prize) 2010, in the metals sector, presented by the Ministry of Energy, Government of India. Silver Certificate of "Indian Manufacturing Excellence Award 2010" by Economic Times and Frost & Sullivan.
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Birla Copper Dahej Greentech Environment Excellence Gold Award 2010 in the mining and metals sector for its efforts towards environment management by Greentech Foundation, New Delhi. Greentech Silver Safety Award 2010 for Occupational Health and Safety Management in the mining and metals sector, by Greentech Foundation, New Delhi. Renusagar Greentech Gold Award 2010 in thermal power sector for outstanding achievement in environment management, by Greentech Foundation, New Delhi. "Commendation for Safety Innovation Award 2010," by the Institution of Engineers (India). "Special Commendation for the Golden Peacock Environment Management Award 2010," by the Institute of Directors, New Delhi. Hirakud Hirakud Power Plant awarded Third Prize in the state-level CII Orissa Award for Best Practices in Environment, Safety and Health 2010. Hirakud Power awarded the Greentech Environment Excellence Gold Award 2010 in the thermal power sector category. Muri National Award for Excellence in Water Management 2010 "Beyond the Fence" category, for the indigenous work being done by the unit .
PROJECTS UNDERTAKEN BY HINDALCO :( I ) BROWNFIELD PROJECTS :Committed to sustaining and further enhancing its already prominent standing in the aluminium industry, Hindalco continues to be involved in multiple projects to expand its current facilities and establish new ones.
Corporate Projects and Procurement Cell, Mumbai
The Corporate Projects and Procurement Cell is the central and nodal cell for the evaluation, monitoring, control and implementation of all brownfield expansion projects
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and for procurement of major raw materials for all units of Hindalco.
Head: B. B. JHA Brownfield expansion projects include:
PrimaryMetal :-Hirakud
Hirakudsmelter production was ramped up in phases from 30 ktpa to 155 ktpa and power plant was ramped up from 60 MW to 367.5 MW from 2002 to 2009.Expansion of smelter from 155 ktpa to 213 ktpa and power plant expansion from 367.5 MW to 467 MW will be commissioned in FY 2012. Project is underway for transfer of all key equipments for flat rolled products, from Novelis plant at Rogerstone, United Kingdom to Hirakud. This will enable Hindalco to produce Can body stock for the local and export market.
Business head: Mr. R.S. Dhulkhed Alumina capacity: Belgaum

Conversion from standard alumina to special alumina is being taken up. On completion this project will catapult Hindalco to the position of the second-highest producer of specials in the world. The specials alumina production from Belgaum will be ramped up to 316 ktpa from 138 ktpa. A cogen power plant (steam and power production), railway facility etc. are also being taken up as a part of the project to substantially reduce the production costs.
Business head: Mr. Sanjay Sehgal
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Alumina capacity: Muri

The expansion of the Muri alumina refinery from 110 ktpa to 450 ktpa, and the cogen plant expansion from 9 MW to 30 MW was completed in 2008 and stabilisation and production ramp up is in progress. The expansion at Muri has resulted in alumina production going up by over 100 per cent at Muri.
( ii ) GREENFIELD PROJECTS :At Hindalco, we value quality, safety, and environmental consciousness and implement the same in all our projects.Site work on all the greenfield projects has gained momentum and are in various stages of progress.
Corporate Projects and Procurement Cell, Mumbai

The Corporate Projects and Procurement Cell is the central and nodal cell for the evaluation, monitoring, control and implementation of all greenfield expansion projects and for procurement of major raw materials for all units of Hindalco.
Head: Mr. B.B Jha Greenfield expansion projects include:Project head: Mr. Ratan Somani ( I ) Orissa: Aditya Alumina and Aluminium Project
Aditya Alumina and Aluminium Project is a greenfield integrated aluminium complex. The project includes a 4.2 million-tpa bauxite mine, 1.5 million-tpa alumina refinery at Kansariguda and 359-ktpa smelter at a 900-MW captive power plant at Lapanga. A major portion of the total land required for the project has been acquired. Most of the important clearances have been obtained, and major orders have been placed for the
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smelter and power plant.
( ii ) Madhya Pradesh: Mahan Aluminium Project The Mahan Aluminium Project is a smelter-power plant complex that boasts of a 359-ktpa aluminum smelter and a 900-MW captive thermal power plant. The project has access to the Mahan coal block (off the main basin in the Singrauli coal fields) through a joint venture with Essar Power. Hindalcos share in the coal block is about 3.6 million mtpa. Site work has already started and is in full swing. Engineering and ordering of packages for both smelter and power plant are moving ahead of schedule. All the major approvals are in place and site activities are progressing well. Major contractors have mobilised at site. A major chunk of land is already acquired. Project head: Mr. Bibhu Prasad Mishra
Orissa: Utkal Alumina Project
The Utkal Alumina Project (Utkal Alumina) is a greenfield project, a wholly owned subsidiary of Hindalco. Construction of 1.5 million-tpa alumina refinery at Rayagada, Orissa is in full swing. Over 85 per cent of the project cost has already been committed. Land and all statutory clearances required for the project have been obtained. Engineering for the project is nearing completion.site work is going on in full swing with large contractors like L & T , Gannon Dunkerley and others, and major equipment like boilers, evaporators, turbines have started arriving at site. All the major orders have been placed.
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PRODUCTS
Billets:-these are top quality billets with a smooth surface

finish. Billets are used mainly for producing extrusion products and forgings. Hindalcos metal is aregistered brand at London Metal Exchange.
Alloy Ingots:-these products are used in automobile

industry as well as electrical applications. These are further melted and processed into a large number of products for various downstream applications.
Alloy Wheels:- hindalco manufactures world class alloy

wheels. Branded as aura alloy wheels , these high performance wheels are available for nearly all vehicles running on the Indian roads.maruti Suzuki, tat motors, fiat india and HM-Mitsubhisi. Hindalco was awarded the prestigious ISO/TS 16949:2002 certification by RWTUV.
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PRODUCTION CAPACITY
ALUMINA 700000 TPA 350000 TPA 450000 TPA ALUMINIUM 345000 TPA 161400 TPA EXTRUSIONS 230000 TPA 8000 TPA
RENUKOOT BELGAUM MURI
RENUKOOT HIRAKUD
RENUKOOT ALUPURAM
FLAT ROLLED PRODUCTS 80000 TPA RENUKOOT 45000 TP BELUR 50000 TPA TALOJA 30000 TPA MOUDA REDRAW RODS 56400 TPA FOIL & PACKING 30000 TPA 4000 TPA CAPTIVE POWER 742 MW 638 MW 84 MW 30 MW
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RENUKOOT
SILVASSA KOLLUR
RENUKOOT HIRAKUD RENUKOOT COGEN MURI
SALES RATIO Domestic Market

Aluminum Catheter Ingot Wire Rod Extrusion Rolled Vanadium Total .12% 44.20% 23.38% 7.48% 13.56% 1.78% 90.00%
Export Market
Ingot Wire Rod Extrusion Rolled Total 1.26% .35% .01% 7.84% 10.00%
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FY13 PERFORMANCE OF HINDALCO
NET SALES
9100 9050 9000 8950 8900 8850 8800 8750 8700 8650 8600 9041
8779
NET SALES
FY12
FY13
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COMPETITORS
NATIONAL ALUMINIUM COMPANY LIMITED(NALCO)
Incorporated in 1981 as a public sector enterprise government of india , NALCO is Asias largest integrated aluminium , encompassing bauxite , alumina , refining , aluminium smelting and casting, power generation , rail and port operations .Commissioned during 1985-87,NALCO has emerged to be a star performer in production and export of aluminium, and more significantly , in propelling in self-sustained growth.
MADRAS ALUMINIUM COMPANY LTD(MALCO)

MALCO is a part of Vedanta resources, a London listed metals and mining major with aluminium with copper and zinc in operations in U.K, india and Australia. MALCO is a primary aluminium producer in south india with operations emcompasses mining , refining, smelting and power generation, MALCO is surging ahead to achieve global recognition in aluminium production.
JINDAL ALUMINIUM LIMITED Largest manufacture of aluminium extruded profile in India having six extrusion presses under one roof, manufacture bars, rods and tubes, structure, architectural, moulding, transport, industrial and general product, located in Banglore.
BHARAT ALUMINIUM COMPANY LIMITED (BALCO) BALCO has been closely associated with the Indian aluminium industries, playing a pivot role in making aluminium a leading metal with various uses ranging form household and industrial requirement to aero-space application. BALCO is a part of Vedanta Resources; a London listed metals and mining measures with aluminium, copper and zinc operation in U.K. , India and Australia.
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SIGNIFICANCE OF THE STUDY

The study basically aims to find out the financial performance of the hindalco industries ltd. Knowledge of the current financial position are vital for a companys future course of action. It includes familiarizing with the various financial management policies, standards, accounting system, financial practices, internal control system and other salient features of the company.
OBJECTIVES OF THE STUDY

To obtain a true insight into financial position of the company To know the financial efficiency and weakness of the company To study the different aspects related to capital structure of the company which contributes to make this company one of the lowest cost producers organization in the world. To analyze and interpret the various financial ratios affecting the financial position and profitability. To identify the areas of improvement, if any in the financial management practices of the company
To make suggestions for developing strategies for improvement and growth of the company.
PRIMARY OBJECTIVE
To have detailed overview of appropriate capital structure of the company including deep insight over the various ratios associated with the capital structure of the organization. To know about the combination of debt and equity.
SECONDARY OBJECTIVE To get a practical experience of the job environment of the organization.
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RESEARCH METHODOLOGY
RESEARCH DESIGN
The study was carried on a explorative basis using accounting and financial data. the procedure followed in this study consist of following steps; The research include figurative and diagrammatic interpretation for the ease of comparison. Understanding of aluminium industry in global and domestic scenario. Determining the demand and supply in near future to understand the future prospect of the industry. Evaluating hindalcos position in aluminium industry.
RESEARCH METHODOLOGY
Research methodology used here is purely explorative.it is used when one is seeking into the general nature of the problem, possible decision alternatives and relevant variables that need to be considered.this resistance is also useful for establishing priorities among research questions and learning about practical problems of carrying out research. The research methodology is highly flexible,unstructured and qualitative. Exploratory research hypothesis are either vague or ill defined,or they do not exist at all.
SAMPLING PLAN
There has been no sampling plan as such as the study involved understanding the various process and analysing them .The study involve the detailed analysis of secondary data calculated from various sources and therefore no sample size and plan has been considered.
DATA SOURCE:
Data has been collected through literature survey and expert opinion. Literature survey includes the collection of data from various sources like books and study material. The part of data is collected from primary sources and other from secondary sources.
PRIMARY SOURCES:
Information gathered by interview and discussing with the head and employees of departments and my project guide.
SECONDARY SOURCES:
Company annual report. Company websites. Published information on the related topics.
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Internal circulation booklets.
DATA ANALYSIS:
Different statistical tools are used like ms- word and ms-excel used for the analysis of data and also consulted by some related books.
INTRODUCTION:FINANCIAL MANAGEMENT
Finance refers to the management of flows of money through an organization. Finance is defined as the provision of money at the time when it is required. Every enterprise, need finance to carry on its operations and to achieve its target. Without adequate finance no enterprise can possibly accomplish its objectives. Therefore, here we are going to analyze the capital structure of the hindalco industries ltd. Finance is regarded as the lifeblood of a business enterprise. This is because in the modern money oriented economy, finance is one of the basic foundations of all kinds of economic activities. It is the master key, which provides access to the entire source for being employed in manufacturing and merchandising activities. It has rightly been said that business needs money to more money. However, it is also true that money begets more money, only when it is properly managed. Hence, efficient management of every business enterprise is closely linked efficient management of its finances. In this study, an attempt has been made to conduct an analysis and interpretation of the financial performance of the Hindalco Industries Limited for the period from 2008-2009 to 2012-2013. The study includes an attempt to analyze the annual report of Hindalco Industries Ltd. for evaluating its physical, financial and operating performance. The researcher intends to cover the working capital management, capital structure, financial management and accounting policies and practices of the company. The methodology adopted in this study includes ratio analysis, comparative balance sheets, cash flow statements, schedule of working capital changes and trend analysis using secondary data. Therefore, to measure the profitability, identifying the trends and achievements and assessing the growth potential of Hindalco Industries Ltd. will reveal its
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overall strength and competency. Hence, the researcher intends to cover the financial an indepth study of financial management system of the company for the reference period The way in which the study is conducted and the interpretations drawn gives room for real and practical experience of financial practices that guides the industry and economy in general. The test of success of a business enterprise is its ability to earn profit and continue its operation and growth. Profit may be considered as an index of success. Financial planning results in the formation of the financial plan. It is primarily a statement estimating the amount of capital and determining its composition. Financial analysis is the process of identifying the financial strength and weakness of the firm by properly establishing relationship between the item of balance sheet and P/L account. According to Kennedy and Memuilez, "The analysis and interpretation of financial statement are an attempt to determine the significance and meaning of the financial statements data so that a forecast may be made of the prospects for future earning capacity, ability to pay interest and debt maturities and profitability of a sound dividend policy.
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For the establishment of a firm, assets are required and assets of the company can be financed either by increasing owners claim or creditors claim. The owners claim increase when firm raises fund by issuing ordinary shares or by retaining the earning ; the creditors claims increases by borrowing. The various means of financing represent the financial structure of the enterprise.
Meaning of Capital Structure

Capital Structure is referred to as the ratio of different kinds of securities raised by a firm as long-term finance.Capital structure decides upon the ratio of various securities in total capitalisation. Equity(or owned funds) and Debt (borrowed funds) are the two main sources of capital funds and hence such a decision virtually implies fixing levels of equity and debt in the plan or design of capital structure. In other words, it is an issue concerned with the determination of debt equiy mix or debt equity ratio. The basic patterns of a capital structure may take anyone of these forms: Only equity shares Equity and preference shares, Equity shares and debentures and Equity shares,preference shares and debentures.
In the case of an ongoing firm ,retained earnings or past accumulated profits also constitute an integeral part of its capital structure,as these are internally generated funds which are long term in nature. The capital structure involves two decisionsa. Type of securities to be issued are equity shares, preference shares and long term borrowings (Debentures). b. Relative ratio of securities can be determined by process of capital gearing. On this basis, the companies are divided into twoi. Highly geared companies - Those companies whose proportion of equity capitalization is small. ii. Low geared companies - Those companies whose equity capital dominates total capitalization.
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DEFINITIONS OF CAPITAL STRUCTURE: The term capital structure is frequently used to indicate the long term sources of fund employed in a business enterprise. R.H.WESSEL Capital structure includes long term financial sources i.e., debentures, long term debts, preference share capital, reserves, surplus, etc.
I.M.PANDEY
FACTORS DETERMINING CAPITAL STRUCTURE:There are a number of other considerations of varied nature which should also be kept in mind before taking a financial decision. Some of them are being discussed below: 1.Nature of Industry- It is also one the important determinants of capital structure. Some industries, by their very nature suffer from wide income fluctuations and hence cannot afford a high degree of financial leverage in their capital structure. Most of the industry turning out luxury items (such as electrical appliances, T.V. sets, etc.) come in this category. 2. Purpose of finance- An important factor determining the type of capital to be raised is the purpose for which it is required. If funds are needed for some productive purpose directly adding to the profitability of the company, capital may be raised by issuing securities bearing fixed interest charges like preference shares and debentures. On the other hand, retained earning or equity share capital will be the better source of financing if funds are needed for such purposes as betterment, maintenance, etc. which do not directly add to the earnings of the company. 3.Choice of investors- The companys policy generally is to have different categories of investors for securities. Therefore, a capital structure should give enough choice to all kind of investors to invest. Bold and adventurous investors generally go for equity shares and loans and debentures are generally raised keeping into mind conscious investors. 4.Capital market condition- In the lifetime of the company, the market price of the shares has got an important influence. During the depression period, the companys capital structure generally consists of debentures and loans. While in period of boons and inflation, the companys capital should consist of share capital generally equity shares.
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5.Period of financing- When company wants to raise finance for short period, it goes for loans from banks and other institutions; while for long period it goes for issue of shares and debentures. 6.Cost of financing- In a capital structure, the company has to look to the factor of cost when securities are raised. It is seen that debentures at the time of profit earning of company prove to be a cheaper source of finance as compared to equity shares where equity shareholders demand an extra share in profits. 7.Stability of sales- An established business which has a growing market and high sales turnover, the company is in position to meet fixed commitments. Interest on debentures has to be paid regardless of profit. Therefore, when sales are high, thereby the profits are high and company is in better position to meet such fixed commitments like interest on debentures and dividends on preference shares. If company is having unstable sales, then the company is not in position to meet fixed obligations. So, equity capital proves to be safe in such cases. 8.Sizes of a company- Small size business firms capital structure generally consists of loans from banks and retained profits. While on the other hand, big companies having goodwill, stability and an established profit can easily go for issuance of shares and debentures as well as loans and borrowings from financial institutions. The bigger the size, the wider is total capitalization.
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OPTIMAL CAPITAL STRUCTURE OR FINANCIAL PLAN

These two terms capital structure and financial plan are used interchangebely. These are indicative of a structure or plan of long term. An optimum capital structure can be defined as a financial plan having an appropriate debt-equity mix which minimises overall cost of capital of the firm amd maximises the market price per share or the total value of the firm.. The optimal capital structure
for a company is one which offers a balance between the ideal debt-to-equity range and minimizes the firm's cost of capital. In theory, debt financing generally offers the lowest cost of capital due to its tax deductibility. However, it is rarely the optimal structure since a company's risk generally increases as debt increases Goal: Maximize Value of Firm Optimal Capital Structure - that mix of debt and equity which maximizes the value of the firm or minimizes the cost of capital Operating leverage is the use of fixed costs rather than variable costs. If most costs are fixed, and therefore do not decline when demand falls, then the firm has high operating leverage. Examples: Nuclear plant, UM-Flint, GM and Ford, Automated Equipment vs. LowTech Equipment General Rule: Higher the operating leverage, the greater the business risk, lower optimal debt
ESSENTIALS OF AN OPTIMAL CAPITAL STRUCTURE;An optimal capital structure should have the following features :1.Simplicity:- capital structure in the beginning should be kept simple.A complicated capital structure will create doubts in the minds of investors regarding the project.Normally whenever a new company is set up,it is financed through equity and preference share capital.Debt is introduced in capital structure at a later date by issuing bonds or debentures. 2.Profitability:- The company should make maximum use of leverage at a minimum cost. Capital structure plays an important role in maximising the profitability of the company.sourcing of capital at minimum cost and timely utilisation of capital reduces any type of losses and maximises profitability. 3.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 also retire debts whenever it becomes too costly to continue with that particular source. 4.Control:- The capital structure should involve minimum dilution of control of the company.A capital structure should be such that it is least affected by by all type of
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risks whether natural or financial .There should be enough provisions in a capital structure to take care of atleast business and financial risks. 5.Solvency:- The use of excessive debt threatens the solvency of the company in a high interest rate of environment, Indian companies are beginning to realise the advantage of low debt. Companies are now launching public issues with the sole purpose of reducing debt. 6.Full Utilisation;- optimum utilisation of the available financial resources is an important objective of a balanced financial structure. An ideal financial structure enables the company to make full utilisation of available capital by establishing a proper co-ordination between the quantum of capital and the financial requirements of the business. 7.Liquidity:- liquidity in excess of requirements increases solvency by reducing risk but reduces profitability.Similarly inadequate liquid assets may increase the risk by reducing solvency.Hence investment in liquid assets should br kept at an optimum level. 8.Minimisation of cost:- Each source of funds has its own cost and cost of different sources of funds may show wide variations. Some sources of capital may be cheaper while others could br costlier. Therefore, while desigining a capital structure such a capital mix should be choosen so that the total cost of capital is the minimum.
SOURCES OF FUNDS:
Internal financing:-This includes financing through shares including both equity and preference shares and debentures. Security financing:-This includes financing through depreciation funds and retained earnings. Loan financing:-This includes both short-term and long-term loans.
MAJOR CONSIDERATIONS IN CAPITAL STRUCTURE PLANNING:

There are three major considerations, i.e. risk, cost of capital and control, which help the finance manager in determining the proportion in which he can raise funds from various sources.
RISK:
Risk is of two kinds, i.e. financial risk and business risk. Here we are concerned primarily with the financial risk. Financial risk also is of two types:45
risk of cash insolvency risk of variation in the expected earning to equity shareholder
COST OF CAPITAL:
Cost is an important consideration in capital structure decisions. It is obvious that a business should be at least capable of earning enough revenue to meet its cost of capital and finance its growth. Hence, along with a risk as a factor; the finance manager has to consider the cost aspect carefully while determining the capital structure.
CONTROL:
Along with cost and risk factor , the control aspect is also an important consideration in planning the capital structure. When a company issues further equity shares it automatically dilutes the controlling interest pf the present owners. Similarly, preference shareholders voting right and thereby affect the composition of the board of directors in case dividend on sub share is not paid for two consecutive years.
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FRAMEWORK OF CAPITAL STRUCTURE

THE FRICT ANALYSIS
A financial structure may be evaluated from various perspectives from owners point of view, return; risk and value are important consideration. From the strategic point of view, flexibility is an important concern and flexibility assumes great significance. A sound capital structure will be achieved by balancing all these consideration: FLEXIBILITY:- The capital structure should be determine within the debt capacity of the company and this capacity should be flexible and it should be possible for a company to adapt its capital structure within a minimum cost and delay if warranted by a changed situation. RISK:- It depend on the variability in the firms operation. It may be caused by macro-economic factor and industry and firm specific factor. The excessive use of debt magnifies the variability of shareholders earning and threatens the solvency of the company INCOME:- The capital structure of the company should be most advantageous to the owners of the firm. It should create value, subject to other consideration. It should generate maximum return to the shareholders with minimum additional cost. CONTROL: - The capital structure should involve the minimum risk of loss of control of the company. The owner of closely held companies is particularly concerned about dilution of control TIMING: - The capital structure should be feasible to implement the given current and future condition of the capital market. The sequencing of source of financing is important. The current decision influences the future option oif raising capital.
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5
0.42 31.58 Loan Funds 68 Reserves Share Capital
EBIT-EPS ANALYSIS:
The design of an appropriate capital structure is one of the major decision areas in financial management . A widely used financial technique to design an appropriate capital structure is EBITEBS analysis .As a method of capital structure planning , it essentially involves the comparison of alternative methods of financing under various assumptions of EBIT . the choice of combination sources with the capital structure would be one that , for a given level of EBIT would ensure the largest EPS alternatively , the choice of combination should ensure a maximum market price per share . MPS=EPS*PRICE EARNING RATIO Particulars EBIT Interest Charges PBT and extraordinary items Extra ordinary items PBT Provision for current tax Provision for deferred tax PAT No. of shares outstanding EPS (PAT/shares outstanding) 2010-2011 2815 (220) 2595 2595 (555.68) (97.86) 2137 191.48 11.16 2011-2012 3031 (294) 2737 2737 (562.68) (62.93) 2237 191.48 11.69
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ECONOMIC VALUE ADDED
EVA is defined to be operating profit subtracted with capital charges .EVA is thus one variation of residual income with adjustment as to how one calculates income and capital . ALFRED MARSHALL defined the economic profit as total net gains less the interest on invested capital at the current rate . The EVA concept called the economic profit .The name EVAis so popular and well know that often all residual income concept are often called EVA . Put simply ,EVA is net operating profit an appropriate charge for the opportunity cost of all capital invested in an enterprises According to PETER DRUCKER , until a business returns a profit that is greater than its cost of capital , it operates as loss. EVA is the after tax cashflow generated by a business cost of capital. It has deployed to generate cashflow . It is increasingly becoming the main target of the leading companys strategy EVA measures whether the operating profit is enough compared to the total cost of capital employed. It is defined as net operating profit after tax subtracted with a capital cost or cost of capital.
LEVERAGE ANALYSIS:Degree of Financial Leverage

This measures the percentage change in earnings per share over the percentage change in EBIT. This is known as "degree of financial leverage" (DFL). It is the measure of the sensitivity of EPS to changes in EBIT as a result of changes in debt. A shortcut to keep in mind with DFL is that, if interest is 0, then the DFL will be equal to 1. DFL= percentage change in EPS or EBIT/percentage change in EBIT- Interest EVA= (RATE OF RETURN-COST OF CAPITAL)*CAPITAL PARTICULARS Net sales & operating income Total expenditure Operating profit Other income Depreciation EBIT Interest charges PBT Degree of financial leverage 2010-2011 23860 (20705) 3155 347 (687) 2815 (220) 2595 0.73
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2011-2012 26597 (23492) 3105 616 (690) 3031 (294) 2737 1.40
DFL
1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2011 2012 0.73 DFL 1.4
DETERMINING WETHER HINDALCO IS TRADING ON EQUITY Trading on Equity:A company may raise funds either by issue of shares or by debentures. Trading on equity may be defined as operating with a smaller equity capital and a higher debt capital(a high debt equity ratio)with a view to maximize the rate of return on shareholders fund. In case, the rate of return on the capital employed is more than the rate of interest on debentures. it is said that the company is trading on equity. Limitation: Trading on equity is profitable as long as rate of return on total capital (ROI) is more than the rate of interest payable on debt capital. Rate of return on equity shareholders fund=PAT/Equity shareholders fund =(1699/33972.39)*100=5.00% General rate of return=(PAT+ Interest)/Total capital employed =(1699+436/59671.12)*100=3.50% The general rate of return is only 3.50% while the return on equity shareholders fund is 5%. Thus, we can say that Hindalco is trading on equity.
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What factors influence how much debt a company uses?

1. Growth rate in sales and income: The higher the growth rate , the most debt that can be utilized 2. Stability of sales: The more stable the sales, the more debt that can be employed. The probability of being unable to service the debt is smaller. 3. Profit margin: A larger profit margin allows for more of a cushion if sales falls. 4. Asset structure: A capital intensive firm relies more upon debt than noncapital intensive firm. The fixed assets are better collateral for debt. 5. Management attitudes: There is a trade off between the risk of debt and loss of control of the firm if equity is sold instead. 6. Lender attitude: Lenders are concerned with risk and may not be willing to lend.
FY13: Standalone Results
Rs. In CRORE Net sales EBITDA PBITDA PBT PAT EPS (rs.)
FY13 22650 2204 3187 2047 1699 8.88
FY12 26597 3105 3721 2737 2237 11.69
CHANGE(%) (2.0) (29.0) (14.3) (25.2) (24.0)
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RATIO ANALYSIS
It is a widely used tool of financial analysis. It implies the process of computing, determining and presenting the relationship of items or group of items of financial statements. It also involves the comparison and interpretation of these ratios and use of them for future projections. Alexander Wall is considered to be pioneer of ratio analysis. He presented after a serious thinking a detailed system of ratio analysis in 1909.An accounting ratio is defined as quantitative relationship between two or more items of the financial statements connected with each other.
USEFULNESS OF RATIO ANALYSIS
Ratio analysis serves the purpose of various parties interested in financial statement. The object of ratio analysis is to help management in analysing and interpreting the financial statements, to get adequate information useful for the performance of various functions like planning, co-ordination, control, communication and forecasting etc. Trends in costs, sales, profits and other related facts and revealed by the past ratios and future events can be forecasted on the basis of such trends. Ideal Ratios may be constructed and the relationship found between strategic ratios can be used for achieving the desired co-ordination Ratios may be used as an instrument of management control particularly in the areas of sales and costs. It helps in investment decisions to make profitable investment STAGES OF RATIO ANALYSIS Arrangement of data; Classification and calculation of ratios; Interpretation of calculated ratios; Projections through ratios.
Ratios to be used for a capital structure analysis :

Earning per share Dividend per share P/e ratio Dividend pay-out ratio Debt equity ratio Interest coverage ratio Return on investment ratio
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1.OPERATING MARGIN RATIO:Significance:- this ratio helps to judge the operational efficiency of the business. In this ratio we try to find out the percentage of sale which is absorbed by the cost of sale and its operating expenses. Operating margin ratio=(operating profit/ net sales)*100 particulars
Operating profit Net sales Operating margin ratio
2013
1499 25784 5.81
2012
3105 26597 11.67
2011
3155 23859 13.22
2010
2950 19522 15.11
2009
3036 18220 16.66
OMR
18 16 14 12 10 8 6 4 2 0 2013 2012 2011 2010 2009 5.81 OMR 13.22 11.67 15.11 16.66
Interpretation:-- From the above data it is cleared that operating margin ratio is continuously decreasing, so lower the ratio of the Hindalco, the better will be the position of the concern which means a higher margin of profit on sale to meet its fixed obligation like interest and also shows the margin for dividends etc.
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2. NET MARGIN RATIO:A ratio of profitability calculated as net income divided by revenues or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings. Profit margin is very useful when comparing companies in similar industries. A higher profit margin indicates a more profitable company that has better control over its costs compared to its competitors. Net margin ratio=(PAT/ net sales)*100 particulars PAT Net sales NPM 2013 1699 25784 6.59 2012 2237 26597 8.41 2011 2137 23895 8.96 2010 1916 19522 9.81 2009 2230 18220 12.24
NPM
14 12 10 8 6 4 2 0 2013 2012 2011 2010 2009 6.59 NPM 8.49 8.96 9.81 12.24
Interpretation:- , if a company has costs that have increased at a greater rate than sales, it leads to a lower profit margin. This is an indication that costs need to be under better control. Hindalcos NPM is being lowered from previous year.
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3. INETREST COVERAGE RATIO:Significance:- A ratio used to determine how easily a company can pay interest on outstanding debt. The lower the ratio, the more the company is burdened by debt expense. An interest coverage ratio below 1 indicates the company is not generating sufficient revenues to satisfy interest expenses. Interest coverage ratio=EBIT/interest
Particulars EBIT Interest

ICR
2013 2482 436

5.69
2012 3031 294

10.30
2011 2815 220

12.80
2010 2543 278

9.15
2009 3028 337

8.98
ICR
14 12 10 8 6 4 2 0 2013 2012 2011 2010 2009 5.69 ICR 10.3 9.15 8.98 12.8
INTERPRETATION:-Hindalco is having 5.69 Interest Coverage ratios, which is adequate to cover the interest expenses.
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4. EARNING PER SHARE

Earning per share(EPS) shows profitability of the firm on a per share basis, it does not reflect how much is paid as dividend and how much is retained in the business. EPS = profit after tax/No. Of shares Significance EPS help in determining the market price of the equity shares of the company. List of a comparison of EPS of the company with another company will also help in deciding whether the equity share capital is being effectively used or not. It helps in estimating the companys capacity to pay dividend to its equity shareholder.
Particulars PAT No. of equity share EPS
2013 1699.20 191.48
2012 2237 191.48
2011 2137 191.48
2010 1916 177.08
2009 2230 150.47
8.87
11.69
11.17
10.82
14.82
EPS
16 14 12 10 8 6 4 2 0 2013 2012 2011 2010 2009 8.87 EPS 11.69 11.17 14.82 10.82
Interpretation:- As we can see that FY13 has a low EPS ratio than FY12 so Hindalco is having not so good prospects and capacity to declare dividends on equity shares .
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5. DIVIDEND PER SHARE:Significance:- It indicates the amount of profit distributed to shareholder per share. It is calculated as: DPS= proposed dividend/no. Of shares particulars Proposed Dividend No. Of shares
DPS
2013 259.65 191.48

1.36
2012 296.76 191.48

1.55
2011 287.17 191.48

1.50
2010 238.95 177.0

1.35
2009 203.13 150.47

1.35
DPS
1.6 1.55 1.5 1.45 1.4 1.35 1.3 1.25 2013 2012 2011 2010 2009 1.36 DPS 1.35 1.35 1.55 1.5
Interpretation:- Higher the ratio the better is the position for the company, as we can see DPS of hindalco industries has decreased from last year years DPS.
6.PRICE TO EARNING RATIO:This ratio indicates the no. of times the earning per share is covered by its market price. Significance:- It is used in financial forecasting and to know whether the shares of the company are undervalued or overvalued. This ratio is of much help to the investors in deciding whether to invest in the equity shares of a company at a particular market price or not.
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P/E ratio= market price of share/EPS particulars 2012 P/E ratio 11.1 2011 18.7 2010 16.8 2009 3.5
Interpretation:- A high price earning ratio increases the faith of the investors in the companys strength and appreciation of its earnings.
7.BOOK VALUE PER SHARE:Book value per share= particulars BVPS 2012 167.31 2011 155.14 2010 145.87 2009 139.73
RATIOS FOR SHAREHOLDERS:8.CAPITAL GEARING RATIO

Significance This ratio reflects the degree of equity financing in the total capital structure of a concern. If the proportion of equity capital in total finance is less than preference share capital and/or debentures, it is called high-geared capital. As against this low geared capital is one where major portion of total capital is in the form of the equity share capital. If the total capital of a concern consist of only equity share capital there will be no capital leverage. Capital-gearing ratios=(equity share capital+ reserve)/(pref. Share capital+ debenture) particulars Equity share Debt CGR 2013 33972 24144 1.40 2012 32032 14572 2.19 2011 29700 9038 3.28 2010 27911 6357 4.39 2009 23758 8324 2.85
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CGR
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 4.39 3.28 2.85 2.19 1.4 CGR
2013
2012
2011
2010
2009
9.DIVIDEND COVER RATIO:It is the reciprocal of pay-out ratio and is calculated by:Dividend cover ratio= profit after interest & tax/dividend Significance:- It reveals the ability of the concern to maintain the dividend in future. particulars PAT dividend DCR 2013 1699.20 259.65 6.54 2012 2237 296.76 7.54 2011 2137 287.17 7.44 2010 1916 238.95 8.01 2009 2230 203.13 10.97
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DCR
12 10 8 6 4 2 0 2013 2012 2011 2010 2009 7.54 6.54 7.44 8.01 10.97
DCR
10.RETURN ON CAPITAL EMPLOYED:Significance:- this ratio helps in judging the overall efficiency and profitability of an enterprise. ROCE should always be higher than the rate at which the company borrows; otherwise any increase in borrowing will reduce shareholders earnings. ROCE=(EBIT/Capital employed) particulars EBIT Capital employed ROCE 2013 2483 59671 4.16 2012 3031 47829 6.34 2011 2835 40025 7.03 2010 2543 35634 7.14 2009 3028 33493 9.04
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ROCE
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 4.39 3.28 2.85 2.19 1.4 ROCE
2013
2012
2011
2010
2009
Interpretation:- The future maintainable profits have not matched the pace with the increase in companys capital employed. Since capital employed comprises of shareholders funds, reserves and surplus and loans, it has been observed that shareholders fund has increased a little and the loans has also increased but resulting in blocking of funds.
11.RETURN ON EQUITY:Significance:- The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporations profitability by revealing how much profit a company generates with the money shareholders have invested. ROE=(PAT/net worth)*100 Net worth =share capital+ general reserve-miscellaneous expenditure
PAT Net worth ROE
1699 33972 5.00
2237 32032 6.98
2137 29700 7.19
1916 27911 6.86
2230 23758 9.39
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ROE
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 4.39 3.28 2.85 2.19 1.4 ROE
2013
2012
2011
2010
2009
Interpretation:- Due to decrease in financial leverage Net Worth of company has increased. Also the future maintainable profit has not increased in the same proportion as the Net Worth of the company thus ROE for the company has gone down.
12.DEBT-EQUITY RATIO:Significance:- Debt to equity ratio is the ratio of total liabilities of the business to its shareholders equity. It is a leverage ratio and its measures the degree to which the assets of the business are financed by the debts and the shareholders equity of a business. A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense. If more debt is used to finance increased operations (high debt to equity), the company could potentially generate more earnings than it would have without this outside financing. Debt equity ratio=debt/equity=total liabilities/shareholders equity Particulars Debt Equity Debt-equity ratio 2013 24144.77 33972.39 0.71 2012 14571.91 32032 0.45 2011 8910 29700 0.30 2010 6419.53 27911 0.23 2009 8315.3 23758 0.35
62
debt equity ratio

0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2013 2012 2011 2010 2009 0.45 0.3 0.23 0.35 debt equity ratio 0.71
Interpretation:Lower values of debt-to-equity ratio are favourable indicating less risk. Higher debtto-equity ratio is unfavourable because it means that the business relies more on external lenders thus it is at higher risk, especially at higher interest rates. Hindalco has a debt equity ratio lower than 1 means that more assets are financed by shareholders' that those financed money by debt. An increasing trend in of debt-to-equity ratio is also alarming because it means that the percentage of assets of a business which are financed by the debts is increasing.
13.CURRENT RATIO
This ratio measures the solvency of the company in the shoert term. Current assests are those asssets which can be convereted into cash within a year. Current liabilities and provisions are those liabilities that are payable within a year. A current ratio 2:1 indicates a highly solvent position . A current ratio of 1.33:1 is considered by banks as the minimum acceptable level fotr providing working capital finance. Current ratio=current assets/current liabilities particulars C.A C.L C.R 2013 20150.03 9736.76 2.06:1 2012 16479.44 10035.04 1.64:1 2011 15929.20 9842.64 1.61:1 2010 8864.29 6148.42 1.44:1 2009 7739.9 2672.1 2.90:1
63
C.R
3.5 3 2.5 2 1.5 1 0.5 0 2013 2012 2011 2010 2009 2.06 1.64 1.61 1.44 C.R 2.9
14. QUICK RATIO

Quick ratio is used as a measure of the company ability to meet its current obligations.since bank overdraft is secured by the inventories the other current assets must be sufficient to meet other current liabilities.
Quick ratio = liquid assets / current liability Liquid assets = current assets - inventories PARTICULARS 2013 Liquid assets Current liabilities Quick ratio 12447.42 9736.76 1.27:1 2012 8736.58 10035.04 0.87:1 2011 8277.8 9842.64 0.84:1 2010 2942.88 6148.42 0.47:1 2009 3669.77 2672.07 1.37:1
64
Q.R.
1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2013 2012 2011 2010 2009 0.47 0.87 0.84 Q.R. 1.27 1.37
65
STATEMENT OF CHANGES IN WORKING CAPITAL
66
Statement of changes in working capital
Particulars
Previous year( 20082009)
Current year (2009 2010)
Effect on working capital Increase Decrease
(A)Current assets Inventories Sundry debtors Loans and advances Cash and bank balance Other CA TOTAL(A) (B)Current liabilities Liabilities Provisions TOTAL(B) Working capital Increase/Decrease working capital 1868.91 803.16 2672.07 5067.84 5426.93 721.49 6148.42 2715.87 2351.97 2045.24 2351.97 4397.21 81.67 4070.14 1201.22 1573.05 843.72 51.78 7739.91 5921.41 1311.87 1437.37 140.21 53.43 8864.29 1.65 1851.27 110.65 135.68 703.51
3558.02
5067.84
5067.84
4397.21
4397.21
67
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 year 2008-09 2009-10 current assets current liabilities working capital
68
Particulars
(A)Current assets Inventories Sundry debtors Loans and advances Cash and bank balance Other CA TOTAL(A) (B)Current liabilities Liabilities Provisions TOTAL Working capital Increase/Decrease working capital 2715.87 2963.91 5426.93 721.49 6148.42 7194.10 644.68 7838.78 76.81 1767.17 5921.41 1311.87 1437.37 140.21 53.43 8864.29 7652.19 1268.99 1527.63 233.39 120.49 10802.69 90.26 93.18 67.06 1730.78 42.88
2058.09
1810.05 248.04
248.04
2963.91
2963.91
2058.09
2058.09
69
12000 10000 8000 6000 4000 2000 0 year 2009-10 2010-11 current assets current liabilities working capital
70
Particulars
(A)Current assets Inventories Trade receivable Loans and advances Cash and bank balance Other CA Current investment TOTAL(A) (B)Current liabilities Liabilities Provisions Short-term borrowings Trade payable TOTAL(B) WORKING CAPITAL(A-B) Increase in working capital 3726.60 1499.79 4112.70 10433.39 19772.48 12651.29 4140.27 1377.10 3731.34 11052.18 20300.89 12716.29 65 2261.88 2196.88 122.69 381.36 618.79 13742.01 7541.05 1721.87 2539.95 1350.89 5528.00 32423.77 13246.03 8017.17 2158.19 3295.99 1440.24 4859.56 33017.18 476.12 436.32 756.04 89.35 668.44 495.98
413.67
12716.29
12716.29
2261.88
2261.88
71
35000 30000 25000 20000 15000 10000 5000 0 year 2010-11 2011-12 current assets current liabilities working capital
72
Particulars
Previous year (20112012)
(A)Current assets Inventories Investments Loans and advances Cash and bank balance Other CA Trade receivables 7742.86 4583.40 1647.65 722.30 355.78 1427.45 16479.44 7702.61 6431.96 2272.42 1497.82 730.18 1515.04 1848.56 624.77 775.52 374.4 87.59 40.25
TOTAL(A) (B)Current liabilities Short term borrowings Trade payables Other CL Provisions
20150.03
3456.78 4659.77 998.61 919.88
3701.72 3051.52 1924.09 1059.43
244.94 1608.25 925.48 139.55
TOTAL(B) WORKING CAPITAL(A-B) Increase in working capital
10035.04 6444.40 3968.87
9736.76 10413.27
5319.09
1350.22
3968.87
10413.27
10413.27
5319.09
5319.09
73
25000
20000
15000
10000
5000
current assets current liabilities
0 year 2011-12 2012-13
working capital
74
CASH FLOW STATEMNT FOR THE YEAR ENDED 2012-2013

(A) Cash flow from operating activitiesNet profit before tax Adjustment for : Finance costs Depreciation and amortization Impairment loss/(reversal) (net) Loss/(gain) on derivative transactions (net) Unrealized foreign exchange(gain)/loss(net) Employees stock option scheme Provisions/(provisions returned back) net Loss/(gain) on derivative transactions(net) Provision/(write back) for diminution in carrying cost of investment(net) Investing activities (net) Operating profit before w.c changes Changes in w.c :Change in inventories Change in trade and other recievables Change in trade and other payables Cash generation from operations Payament of direct taxes(net of refunds) Net cash generated/(used)-operating activities (B) cash flow from investment activitiesPurchase of fixed assets Sale of fixed assets Purchase of share of subsidiaries(net) Return of capital from subsidiaries(net) Sale of investments(net) Loans/repayment of advances& loans from subsidiaries (net) Interest received Dividend received Net cash generated/(used)-investing activities (C) cash flow from financing activitiesPrepayment of long-term borrowings
75
31st march,2013 31st march,2012 2046.03 2736.95 435.98 686.95 17.25 17.87 6.03 0.27 14.24 17.87 293.63 689.97 52.38 1.29 39.92 (3.34)
(935.54 ) 2289.68 40.24 407.48 1638.03 284.41 636.75 352.34
(562.01) 3168.95 (91.46) (1018.06) 532.12 2591.55 (469.48) 2122.07
(5530.84) 20.69 (541.58) (1454.91) (1249.09) 254.01 259.65 (8242.07)
(7168.16) 11.20 (520.94) 66.86 623.67 70.04 94.09 456.28 (6366.69)
(5142.99)
Proceeds from issue of shares(net of expenses) Proceeds from issue of share warrants Capital subsidy received Proceeds of long-term borrowings Repayment of long-term borrowings Proceeds/(repayment) of short-term borrowings(net) Finance costs paid Dividend paid(including dividend tax) Net cash generated/(used)-financing activities Net increase/(decrease)in cash & cash equivalent Add:-opening cash & cash equivalents Closing cash & cash equivalents
0.40 4.50 14818.09 (1.53) 258.55 (1519.85) (331.01) 8086.16 (508.25) 713.63 205.38
1.46 541.31 5969.11 (1.53) (433.58) (1019.18) (324.03) 4733.56 488.67 224.96 713.63
76
BALANCE SHEET OF HINDALCO INDUSTRIES LTD.

(RS. In crore)
Particulars
EQUITY & LIABILITIES Shareholders funds
Note no.
2013
2012
2011
share capital Reserve & surplus Money received against share warrants
2 3 4
191.48 33239.60 541.31 33972.39
191.48 31299.68 541.31 32032.47
191.46 28831.83 29700.10
Non-current liabilities long-term borrowings Deferred tax liabilities(net) Other long-term liabilities long-term provisions
5 6 7 8
20443.05 1191.14 974.28 300.94 22909.41
11115.13 1224.56 953.10 287.32 13580.11
5147.54 1287.49 290.50 268.07 6993.60
Current liabilities
Short-term borrowings Trade payables Other current liabilities Short-term provisions
9 10 11 12 3701.72 3051.52 1924.09 1059.43 9736.76 3456.78 4659.77 998.61 919.88 10035.04 3890.35 4082.95 1053.91 815.43 9842.64
77
66618.56
55647.62
46536.34
ASSETS NON-CURRENT ASSETS Fixed assets :Tangible assets Intangible assets Capital work-in-progress Intangible assets under development non-current investments Long-trem loans & advances Other non-current assets
13 14
7071.00 26.65 23605.11 0.01
7125.95 24.25 16256.70 0.24
7560.69 23.69 6030.32 0.09
15 16 17
14050.17 1681.08 34.51 46468.53
13503.70 2249.53 7.81 39168.18
13049.66 3942.59 0.10 30607.14
current assets
Current investments Inventories trade receivables Cash & bank balances Short-term loans & advances Other current assets
18 19 20 21 22 23 6431.96 7702.61 1515.04 1497.82 2272.42 730.18 20150.03 66618.56 4583.40 7742.86 1427.45 722.30 1647.65 355.78 16479.44 55647.62 5197.09 7651.40 1255.49 233.39 1344.75 247.08 15929.20 46536.34
78
SWOT ANALYSIS
79
SWOT Analysis of Hindalco

STRENGTH A global leader in value-added high-end aluminium flat rolled products and aluminium can recycling. It is the largest manufacturer of the entire range of flat rolled products in India & enjoys nearly 60 per cent of market share. The company exports about 40 per cent of its total sales volume of aluminium. The company has been accorded the Five Star Trading House status in India. The company's metal is accepted for delivery under the high grade aluminium contract on the London Metal Exchange (LME). WEAKNESS Technology is not upgraded to mark as compare to global giants in aluminium industry.
OPPORTUITIES Takeover of Indal is taking Hindalco to the way of increased production to meet the Importers requirements without any delay in time and it also giving the opportunities to export marketing department to secure as much export order due to increased capacity of production. Acquisition of Novelis giving the opportunities to the Hindalco to expand more its global market, since, Novelis has the unrivaled capability to provide its customers with a regional supply of technologically sophisticated rolled aluminium products throughout Asia, Europe, North America and South America. THREATS Due to high International Inflation rate, price of the Aluminium is increasing in the International Metal Market. As a result, the Aluminium, which was said as the product of poor peoples, now it has been gone far from the hands of a middle class people. Now, it becomes a product of high class society. So, poor and middle class peoples are searching and getting the alternatives of the Aluminium metal i.e. Iron and Steel which is low in cost as comparison to Aluminium now-a-days. Innovative revolution in plastic and steel industry.
80
FINDINGS SUGGESTIONS & CONCLUSION
81
FINDINGS
The rate of return on equity share holders fund is more than general rate of return.hence , Hindalco is trading on equity. The debt equity ratio of 0.71 indicates that company is considering the interest of investors. The earning per share of Hindalco is showing upward trend. The proportionate increase in long term loan fund is more than proportionate increase in share capital. The dividend pay out ratio of Hindalco is decreasing year by year.it reflects that company has ploughed back major portion of earnings.
SUGGESTIONS
The debt equity ratio of Hindalco is 0.71 .the company has ample scope to raise further loan capital. The management should try to maintain trade off between risk and return for determining the appropriate amount of debt in capital structure. The company should take the advantage of financial leverage very carefully as it also increases the financial risk. The management should try to substitute lpng term funds used to finance current assets with short term funds are generally cheaper. This will positively improve efficiency.
82
CONCLUSION
Hindalco industries ltd. has an appropriate capital structure. Hindalco is taking the full advantage of financial leverage. The endeavour of company is to maximise earning per share i.e, achieving wealth maximization objective.
Hindalco is retaining lions share of earning for expansion purpose.
On the whole,it can be said that Hindalco enjoys a sound financial position from the point of view of all concerned parties the corporate management,the leading institutions and the investors. The overall performance of the company is satisfactory and it will further improve when the facilities at the disposal of company are fully utilised . however , the management must remain cautious towards the financial position of the company. The management should take all possible steps in the near future to improve the financial position of the company.
CURRENT NEWS OF HINDALCO INDUSTRIES
Indias Hindalco Industries gains 2.5% on expectations global aluminium premiums would be supported after London Metal Exchange suffered a legal setback in its plan to free up metal more quickly from its warehouses. Shares in Indias Hindalco Industries ltd. fall 1.2% after its global peer Alcoa Inc, the largest U.S. aluminium producer, reported a massive quaterly loss on Thursday and gave a stagnant outlook on global aluminium demand. Indias Hindalco Industries ltd., an aluminium and copper producer being investigated for a coal block jointly allocated to it, reported a smaller-than-expected quarterly profit as prices fell due to production outpacing demand.
83
BIBLIOGRAPHY
BOOKS REFERENCES:
FINANCIAL MANAGEMENT, I.M.PANDEY FINANCIAL ANALYSIS, NISHA GUPTA CORPORATE ACCOUNTING,S.M.SHUKLA
WEBSITES: www.hindalco.com www.aditya-birla.com www.moneycontrol.com www.investopedia.com www.wikipedia.com
84

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CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

SUPERVISED BY: Professor C.P.Mall Faculty of commerce

SUBMITTED BY: KANCHAN JAISWAL

Faculty of commerce Banaras Hindu university Varanasi- 221005

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

We carry forth this vision of the people

(KUMAR MANGALAM BIRLA)

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

ADITYA BIRLA GROUP

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

Aditya Birla group enjoys a front runner position:

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

ULTRA TECH CEMENT LTD.

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

Mutual funds Investments planning solutions

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

INTRODUCTION OF HINDALCO INDUSTRIES LTD.

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

HINDALCO INDUSTRIES LTD.

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

OUR VISION , MISSION AND VALUES

Our values Path to excellence:INTEGRITY

Honesty in every action

Deliver on the promise PASSION

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

Boundary less in letter and spirit SPEED

One step ahead.

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

CHEIF FINANCIAL OFFICER

Head Corporate Projects & Procurement Cell

Chief People Officer

Business / Unit Head

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

ORGANIZATION STRUCTURE-FINANCE AND COMMERCIAL

Head Finance & Commercial

Secretary to Head K C ANTONY

Head Finance and Accounts AJAY JOSHI VP

Acc. OH,Sales Accounts SHREYANS KAVDIA AGM

SH-Procurement Acc.& System RAJESHWAR SHARMA Sr.Mgr.

SH-Taxation,Audit & FG Clearance DEEPAK GARG GM

SHERP/Banking/Ins./F A CO. VIMAL RAHEJA MANAGER

SH-PF & Retirals PUSHKAR SINGH MANAGER

AH-Contract Cell M K SRIVASTAVA Asst. Mgr.

FLE-Contract Technical cell RAJESH PAL Sr. Engr. 17

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

1958 -The Company was Incorporated on 15th December 1958, at Mumbai to

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

1962 -Commencement of production at Renukoot (Uttar Pradesh) with an initial capacity

2000 - Acquisition in controlling stake in Indian Aluminum Company Limited (Indal)

Copper with Hindalco with the effect of 1st April 2002

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.

CAPITAL STRUCTURE OF HINDALCO INDUSTRIES LTD.