Premium Essay

Finance Structure

In: Business and Management

Submitted By biranchip17
Words 2640
Pages 11
Submitted to Prof. Kousik Guhathakurta By Bharat Subramony PGP/16/012 Ranjan Kumar Sharma PGP/16/040 Utkarsh Rastogi PGP/16/056

A-1. There appears to be a significant trend in the Capital Structure of Indian Inc. as reported by the Reserve Bank of India, which can be seen from the table below. By aggregating the data from the RBI reports provided from 2001 to 2010, we can extrapolate and determine its asymptotic value of the Debt-Equity ratio, which signifies the Capital structure to an approximate value of 40. Industry | 2001-02 | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 | 2008-09 | 2009-10 | Target | Debt-Equity ratio in % | 67.3 | 61.1 | 55.5 | 51.3 | 46.8 | 47.3 | 45.6 | 44.3 | 43.6 | 40 |

Although there is some inconsistency in the values reported by RBI for the same accounting period, in different reports, with some generalization, of the values, the approximate Debt-Equity ratio can be inferred by careful observation of the reports. Based on such moderations, the above table has been generated. The following graph helps us to realize the short-term target ratio of D-E for Indian Inc. as 40%, while it turns out to be close to 30%, assuming a long-term period of 25-30 years.

If we chart the trend of the Debt-Equity ratio based on the size of the firms, we get the following table Scale | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 | 2008-09 | 2009-10 | < 25 cr | 126 | 128.5 | 113.2 | 73.4 | 45.1 | 28.9 | 32.3 | 30.6 | 25-50 cr | 107.1 | 95.7 | 84.5 | 74.5 | 65.6 | 53.2 | 48.5 | 54.7 | 50-100 cr | 90.3 | 83.9 | 60.1 | 55.7 | 52.3 | 51.9 | 41.1 | 39.5 | 100-500 cr | 76.7 | 71.6 | 64.6 | 59.7 | 56.6 | 52.4 | 49.6 | 46.3 | 500-1000 cr | 55.2 | 57.5 | 53.2 | 50.4 | 51.6 | 53.6 | 54.6 | 51.3 | > 1000 cr | 47.8 | 44 | 35.4 | 39.7 | 43.3 | 42.5 | 44.1 | 42.4 |

A-2. Some of the...

Similar Documents

Premium Essay

Hgchgfjhfjhgf

... | | | | |Date issued | Hand in deadline |Submitted on | | | | | | | | |Assignment title(s) |Legal and organisational structures | | |Stakeholders and their influence...

Words: 1348 - Pages: 6

Premium Essay

Btec Level 3 National Diploma Business Studies 2015/16

...Introduction The business environment is the internal and external factors that affect how the company functions including employees, customers, management, supply and demand and business regulations. I will be explaining two different businesses (Tesco’s and Chloe’s corner shop) that what their purposes are, what kind ownership are they and what is the type of their business. Then I will be going to describe the different stakeholders who influence the purpose of Tesco and Costcutter. This article will cover the purpose, ownership, organisational structure and strategic planning of both Tesco’s and Chloe’s corner shop. Tesco’s Tesco started in 1919 when Jack Cohlen started selling surplus grocery from a stall in east London. Mr Cohen who is the founder of Tesco made a profit of £1 from a sale of £4 on his first day. And today Tesco is the UKs biggest supermarket company by employing about 89000 people internationally and still expanding. Tesco is an international company they got their branches in over 14 countries which includes china, japan, Malaysia, Thailand, Mexico and many more. They got over 2500 stores internationally all around the world. Tesco is a public limited company or PLC that’s national (spread all over the parts of UK) and is also in every local borough in London. Tesco’s belong to the tertiary sector because it does not make products as such but it mainly provides a valuable service that consumers and other business are prepared to pay for and/ or......

Words: 4213 - Pages: 17

Premium Essay

Characteristics of Organisation 2

...own productive place. Management issues in organizational structure Line and staff employees The first management consideration is to examine !low employees are distinguished from each other in terms of how they' fit in' to a typical organizational structure - the issue of line and staff employees. Different specialist divisions and departments within an organization contain a predominance of either line or staff employees. Line employees Those those are directly responsible for achieving the organiza­tion's objectives. Line employees are therefore found in departments that are responsible for producing, selling or servicing the organization's products (E.g. in oper­ations, marketing and after-sales servicing). Staff employees Are responsible for supporting the line employees in their tasks. Staffs are therefore found in departments that advise, support or provide expertise, such as personnel, research and development and finance. Example: A business producing cars is known for its car-making activities. Its primary objective is to produce and market cars in order to make profit. The company needs its staff func­tions because of its line function; The personnel and finance functions would have no purpose at all unless they were in support of the company's primary (car-making) activities - performed by the line employees. Nissan is not known primarily for the quality of its finance function (important though this is), but for the output of......

Words: 1425 - Pages: 6

Premium Essay

Book Review

...Critical Book Review: States and Markets Susan Strange 1993 Susan Strange wrote States and Markets in 1994 and it was amazingly predictive of the future of the Internal Political Economy or Global Political Economy (IPE or GPE). Although there are some blind spots in her theory and mode, and she was not able to predict many things. She was still able to accurately describe the four main structures, which affect structural and relational power structures thereby directly affecting IPE. * The model she proposes in this book is not based on rigid theories of international relations that give no room for debate, which are erroneously based on some preconceived assumptions. First, one must understand how the author defines certain ideas and concepts differently. According to Strange “ Firstly a great deal of social theory is no more then description” (Strange, 10, 1994). She expands with the facts are well known but are arranged in a different order or category (Strange, 10, 1994). Susan Strange’s security structure is not rigid, like most other security models and it does not dictate a set of conditions nor does it bias itself to one nation. It is not a uniquely American perspective that assumes military dominance nor is it a British Empire that demands subjugation. It is more easily applied to developing nations that lack the military might of a super power due to its assumption of conventional forces only and lack of military. She theorizes that without......

Words: 2356 - Pages: 10

Premium Essay

Explain How Their Style of Organisation Helps Them to Fulfil Their Purposes

...to different positions so that Apple would have experts in every subdivision. Apple would be nothing without their loyal customers who worship the company. Because the company is exclusive, things such as a new store opening attracts fans from all around the world. Apple ensure that whatever they do is done at the biggest and best it can be but insist to give away as little as possible information about new projects. This secrecy manages to keep the exclusivity that Apple maintain on upholding. Having this sort of custom allows Apple to become world dominant and helps them succeed their goal to be the best. Similarly, Tesco has a hierarchical structure because it has many layers. Many people are included in different sectors and they report back to more than one person before that information get to the boss. A hierarchical structure has different...

Words: 732 - Pages: 3

Premium Essay

Theoritical Framework Analysis

...Theoritical Framework Communication Channels * The medium selected by the sender through which the message travels to the receiver Types of Channels * Formal Channels * Are established by the organization and transmit messages that are related to the professional activities of members * Informal Channels * Used to transmit personal or social messages in the organization. These informal channels are spontaneous and emerge as a response to individual choices Direct of Communication Downward Communication is the communication that flows from one level of a group or organization to a lower level. Group leaders and managers use it to assign goals, provide job instructions, explain policies and procedures, point out problems that need attention, and feedback about performance. When engaging in downward communication, managers must explain the reason why a decision was made. Upward Communication flows to a higher level in the group or organization. It’s used to provide feedback to higher-ups, inform them of progress toward goals, and relay current problems. Upward communication keeps managers aware of employees feel about their jobs, co-worker, and the organization in general. Managers also rely on upward communication for ideas on how conditions can be improved. Lateral Communication Communication take place among members of the same work group, members of work groups at the same level, managers at the same level, or any other horizontally......

Words: 1839 - Pages: 8

Premium Essay

Jiminy Peak Wind Turbine

...Corporation, though profitable was lousily managed. It lacked structure and would sooner or later lose control of its laxed work force and eventually lose profits. The problems facing Apex lay in several areas. (1) Customer serviced needed much improvement; customers found Apex to be slow in responding or not responding at all. (2) The hours that key employees kept were not in tune with customer needs. (3) Apex functioned as a reactionary company rather than a potential leader in the cellular carrier industry. Some alternative actions Apex Corporation needed were restructuring of its organizational structure, in an attempt to achieve maximum proficiency, the CEO implemented a circular structure to create a non hierarchal organization so information could flow freely between the organization and its environment. However employees could not relate to the circular structure. The circular structure confused current and new employees because it lacked clarity as to who made decisions; employees didn’t know how they were being evaluated. It did not improved customer service or the view employees had of the customer. The Horizontal structure was nonresponsive with regards to employees and it was inadequate. What was needed was the ability to control all departments of the company. Innovative structures would not work. Apex needed to return to traditional business management of the Hierarchical Functional Structure. Hierarchy protects subordinates by clearly outlining......

Words: 923 - Pages: 4

Premium Essay

Organizational Structure

...Organizational Structure Paper Courtney Fryer MGT 230 January 6, 2015 Ms. B. Alston Organizational Structure Paper Fast food chains such as McDonald’s, Burger King, and Chick-fil-a, all have an interest in making growing profits and enlarging their companies’ name. Although each company has their own unique and different set of requirements for functioning, the organizational structure has given these companies chance and opportunity to expand to outside parties. Using this paper, I will show the different ways in which these companies use the organizational structures. Every structured organization is run differently. When you compare and contrast more than one company it can show how they may be similar in their structured organization but also show how they differ. The human resources and finance part of the different franchises might favor but the organizational design might be total opposite between the franchises. Chick-fil-a is known for their one of kind chicken sandwiches. The company was started back in the 1960s when its founder, Truett Cathy, invented the original chicken sandwich. The company’s first in-store restaurant was located in the Greenbrier Mall in Atlanta, Georgia in 1967. Since then the Chick-fil-a franchise has grown enormously with over 500 restaurants over the United States and still continuing to grow. Chick-fil prides themselves in handpicking their employees and giving their employees opportunities......

Words: 1200 - Pages: 5

Premium Essay

Facilitating Change

...possible. Activities, for example such as task allocation, coordination, and supervision directed toward the attainment of organizational aims are the elements of organizational structure. In conjunction with structure is organizational design, the plan. According to Hearst Communications, Inc.  (2013),  “When a company's leaders develop plans for how their company should function or would perform better, they undertake the business of organizational design. Good design takes inventory of all the tasks, functions and goals of a business, and then develops groupings and orderings of job positions; departments and individuals to best and most efficiently achieve those ends. Usually, designs are expressed through an organizational chart, which helps players throughout an organization understand functions and power relationships” As a business’s environment changes it is vital to identify, reassess, and possibly change one’s organizational structure and design. Knowing how to respond to the environment aids the company as economic, legal, political, and social circumstances change. Virgin America Airlines is expanding into China, and management realizes recommended changes in strategy may affect its current organizational structure and design. This discourse summarizes its existing organizational structure and describes the existing organizational design with specific discussion of how work is divided among people and departments as well as how Virgin America Airlines uses......

Words: 1983 - Pages: 8

Premium Essay

Organisational Structure

...Organisation structure Structure relates to a skeletal framework of activities and processes in an organisation and specifies the roles of these in achieving goals and objectives of the organisation. According to (Mullins, 2009), a good structure is highly important due to the fact that decisions on structure are primary strategic decisions which can make or break an organisation. One important aspect of a good structure is the human element. Organisation structure should be designed so as to encourage employees and increase the morale and job satisfaction of organisation members which will result to overall organisation efficiency. (Mullins, 2006) describes nine basic considerations in the design of organisation structure. The fundamental step is to define organisational objectives to enable further analysis and comparisons of other forms of structure. Clarification of objectives A clear definition of objectives is vital to provide a framework for the design of structure of an organisation. Organisation objectives provide fundamental schemes for division of labour and creation of group units and sub units. Clearly stated aims and objectives will assist in decisions on the strategy and structural dimension to employ to achieve organisational objectives. Task and element functions Certain functions must be performed in order to produce a good or service, from the development of the good or service to finance of resources used in the complete processing. These functions...

Words: 1510 - Pages: 7

Free Essay

Critical Information Systems

...BSA 310 May 15, 2011 Rich Harrell Critical Information Systems An Information System is an organizations framework for efficiency, productivity, and functionality. It “is a collection of hardware, software, data, people and procedures that are designed to generate and disseminate information and data that supports the activities of an organization” (International Graduate, 2011). Kudler Fine Foods is an organization specializing in providing domestic and imported sustenance to consumers. This paper clarifies an information system critical to their business process and examines how this system has an effect on the organization’s intricate structure. Information Systems Information systems used by organizations often follow a “traditional hierarchical structure” (Turban & Volonino, 2010. p.42). The structure commonly consists of seven functional types (1) Personal and Productivity Systems, (2) Transaction Processing Systems, (3) Functional and Management Information Systems, (4) Enterprise Systems, (5) Inter-organizational Systems, (6) Global Systems, and (7) Special Systems. Each category plays an essential role in the overall function of an organization when utilized. The development of an application program is used to execute or support a specific organization task or business process through the use of that information system. Although system types and applications can be independent of each other, most systems and programs are often reliant on......

Words: 830 - Pages: 4

Free Essay

Mr Nihal Ahmed

...pay and benefits for all jobs, whether as assistants or managers in stores and depots. More specialised roles such as finance and HR, are based at its head offices based in Hertfordshire. Bsix college is a sixth form college located in Upper Clapton, London in the United Kingdom. It officially opened in September 2002, giving students in Hackney the opportunity to study at a college close to where they live. It provides student courses for the right appropriate level. It provides a-level courses such as chemistry, maths and business. Tesco has a hierarchical structure because it has a lot of layers and a lot of people reporting into more than one person before that information get to the boss. A hierarchical structure has many levels. Each level is controlled by one person. A hierarchical company tends to be a very big company just like Tesco is. In a hierarchy instructions are generally passed down from one person to another until it gets to the bottom of the hierarchical structure. If there was a problem in a hierarchical structure it would move up through the structure again from one person to another until it gets to where it is supported to be. Strengths of a Hierarchical structure are that there is a close control of workers. Workers in Tesco will know exactly what they have to do so they don't wait around until they are told. This sort of structure allows the workers in Tesco to know precisely what they have to do so they don't hang around until they are told.......

Words: 1198 - Pages: 5

Premium Essay

Adodis

...Adodis Technologies: Tracking Structural Evolution of a Web-Startup A report submitted to tejas@iimb This report captures the insights derived from the study of internal and external factors of Adodis Technologies along with the interaction between the two and role played in determining structure. This report aims at applying classroom concepts to tackle real life situations in an organization. 1 Table of Contents Abstract 1 Introduction 2 Strategy & Other factors affecting Structure 2.1 Strategy 2.2 Environment 2.3 Stage in the Life Cycle 3 Evolution of Structure 3.1 Problems in the Current Structure 4 Culture and Control 4.1 Preliminary Observations 4.2 Survey Analysis Results 4.3 Team Wise Trends 5 Structural Recommendations 6 Conclusion Author Details Appendix References 2 2 3 3 4 4 5 5 5 5 6 6 6 7 7 8 13 2 Abstract This article contains the brief analysis of the evolution of structure and culture of a rapidly growing entrepreneurial venture-Adodis Technologies, founded in 2008. The vision and mission perceived by the CEO has helped this web technology start-up to quickly carve a niche for itself in the market and to go international within only 3 years of its inception. Low start-up and operational costs for companies operating in the web development area have created an extremely competitive market, in which Adodis is still a new player. Thus, although its primary role and image in the market is still that of a low-cost player, the CEO has been taking......

Words: 3144 - Pages: 13

Premium Essay

Financial Decision Making

...response, agree the structures and processes required to coordinate activity, and develop stakeholder engagement skills. Whilst not necessarily overriding the political imperatives that can make a crisis response dysfunctional, these actions can help mitigate their impact. These events, however, were criticised – for their content rather than their form – by a number of stakeholders. Some critiqued the performance of the spokespeople. Others found fault in the absence of ‘new news’ being offered. These criticisms do not undermine the argument in favour of communicating early, quickly and regularly with stakeholders. But they do pose questions about precisely how an organisation should engage with them when the operational reality is unchanging or when the information available is limited. The use of third parties to manage expectations about the operational challenges being faced is one option. Another is to paint a picture of what is happening and what your organisation is doing so that key stakeholders can fully grasp the scale of the crisis and understand the endeavours of those on the frontline. This will not compensate for the lack of new information but can demonstrate that the organisation is trying to resolve the situation as quickly and effectively as it can Organisations will need to consider their position and anticipate the challenges that they may encounter, seeking input from HR colleagues, as well as other key disciplines such as Communications, Finance,......

Words: 464 - Pages: 2

Free Essay

Gtcl Business Structure and Strategy

...This report outlines the acquisition of GTCL, issues relating to market share increase, the launch of new products and improvement of quality of service rendered in order to reduce external failure costs such as warranty etc. Human resource issues such as appraisal of staff and performance, motivation and reward as well. The flow of information from top management to operational areas and how they are implemented shows the type of hierarchy the organization is practicing however with GTCL it is highly bureaucratic hence the challenges it is facing. However GTCL has a lot of goodwill this can be anlysed by the use of the SWOT analyses. Strength: This gives the Organization a competitive advantage over others. - A large number of loyal customers and the range of services it provides. - A wide coverage area of operations. - A loyal customers and a good reputation due to many years of operations. Weakness: This shows weaknesses within the organization. - Poor quality of service. - Poor employee relations and lack of specific skills - Lack of funds due to over-reliance on government for subsidies. - A highly bureaucratic system being operated by the organization Opportunities: In the organization’s external market. - A large market ready to consume the organization’s services. Threats: This may be from outside the organization such threats Include: - Political interferences - Competition from other......

Words: 690 - Pages: 3