A

SYNOPSIS ON

“AN ANALYTICAL STUDY OF LEVERAGES OF TATA

CAPITAL FINANCIAL SERVICES LTD” (FOR THE PERIOD
OF 2017-2020)

SUBMITTED TO

R.T.M Nagpur University, Nagpur

In partial fulfillment of the requirements for the award of degree of

SUBMITTED BY
SACHIN PATEL
Enroll No: 20193025506344

GUIDANCE BY

PROF.REENU MEHTA

MBA., M.COM., NET., (MANAGEMENT-COMMERCE)

VMV COMMERCE, JMT ARTS, JJP SCIENCE COLLEGE,

WARDHMAN NAGAR,
NAGPUR-08
2020-2021
 INDEX

Sr. no Description Page No.

Introduction
1 o Introduction of Topic 1-2
o Company Profile

2 Objectives 3

Research Methodology 4-5

3
o Definition
o Research Design
 Research Technique
 Research Method
o Sample Design
 Sample Technique
 Sample Method
 Sample Area
 Sample Unit
o Limitation
o Method of Data Collection
 Primary Data
 Secondary Data

4 Data Analysis & Interpretation 6

5 Conclusion & Suggestion 7

6 Bibliography 8
Chapter-1

Introduction

CAPITAL STRUCTURE DEFINED:

The assets of a company can be financed either by increasing the owners claim or the
creditors claim. The owners claims increase when the form raises funds by issuing ordinary
shares or by retaining the earnings, the creditors’ claims increase by borrowing .The various
means of financing represents the “financial structure” of an enterprise .The financial
structure of an enterprise is shown by the left hand side (liabilities plus equity) of the balance
sheet. Traditionally, short-term borrowings are excluded from the list of methods of financing
the firm’s capital expenditure, and therefore, the long term claims are said to form the capital
structure of the enterprise .The capital structure is used to represent the proportionate
relationship between debt and equity .Equity includes paid-up share capital, share premium
and reserves and surplus.

The financing or capital structure decision is a significant managerial decision .It influences
the shareholders returns and risk consequently; the market value of share may be affected by
the capital structure decision. The company will have to plan its capital structure initially at
the time of its promotion.

NEED AND IMPORTANCE OF CAPITAL STRUCTURE:

The value of the firm depends upon its expected earnings stream and the rate used to discount
this stream. The rate used to discount earnings stream it’s the firm’s required rate of return or
the cost of capital. Thus, the capital structure decision can affect the value of the firm either
by changing the expected earnings of the firm, but it can affect the reside earnings of the
shareholders. The effect of leverage on the cost of capital is not very clear. Conflicting
opinions have been expressed on this issue. In fact, this issue is one of the most continuous
areas in the theory of finance, and perhaps more theoretical and empirical work has been
done on this subject than any other.

If leverage affects the cost of capital and the value of the firm, an optimum capital structure
would be obtained at that combination of debt and equity that maximizes the total value of
the firm or minimizes the weighted average cost of capital. The question of the existence of
optimum use of leverage has been put very succinctly by Ezra Solomon in the following
words.
PROFILE OF THE ORGANISATION
Tata Capital Limited is a subsidiary of Tata Sons Limited. The Company is registered with
the Reserve Bank of India as a Systemically Important Non Deposit Accepting Core
Investment Company and offers through itself and its subsidiaries fund and fee-based
financial services to its customers.

Tata Capital Financial Services Limited ("TCFSL") is a subsidiary of Tata Capital Limited.
The Company is registered with the Reserve Bank of India as a Systemically Important Non
Deposit Accepting Non Banking Financial Company (NBFC) and offers fund and fee-based
financial services to its customers, under the Tata Capital brand.

A trusted and customer-centric, one-stop financial services provider, TCFSL caters to the
diverse needs of retail, corporate and institutional customers, across various areas of business
namely the Commercial Finance, Infrastructure Finance, Wealth Management, Consumer
Loans and distribution and marketing of Tata Cards. 

TCFSL has over 100 branches spanning all critical markets in India.

‘We only do what’s right for you’

The Tata are amongst the most respected business houses in the world. Tata Capital aims to
bring the trust and expertise of the Tata to an economically and socially relevant sector like
financial services.

The essence of brand Tata Capital is encapsulated in our brand proposition – ‘We only do
what’s right for you'. The proposition reflects our strong resolve to deliver financial solutions
that are ‘right’ for our customers and the society at large.

Tata Capital seeks to build strong relationships with its customers and deliver superior and
consistent customer experience across all products and touch-points.
Chapter-2 OBJECTIVE OF THE STUDY

The objective of study is to understand the financial prospective of the firm.

1. To analysis leverage of Tata Capital Financial Services Limited.

2. To analyze the impact of leverages.

3. To Study the Growth of Tata Capital Financial Services Limited

Chapter-3 Research & Methodology

RESEARCH METHODOLOGY

Definition of research Methodology:

Research is a diligent and systematic inquiry or investigation into a subject in order to
discover or revise fact, theories, application etc. Methodology is the system of methods
followed by particular discipline. Thus, research methodology is the way of conducting the
research.

Research Design:
Research Design is Pre-Planned sketch for the explanation of a problem. It is the first step to
start the whole research. Study will conduct on the basis of this research design. It gives us an
idea of how the further process will be done. It also shows how the research study will be
done under various classifications, interpretation and suggestion. This is a guideline for the
whole work.
Research Technique
A researcher is using descriptive research for the research.
Research Method
A researcher is using analytical research method for the research

Sample Design:-
Researcher is using sampling method in which some elements of the population are included
in the sample
Sample Technique
A researcher is using non-probably sampling research method for the research.
Sample Method
Random sampling method is used by the researcher. This probability method is often used
during preliminary research efforts to get a gross estimate of the result, without incurring the
cost or time required to select a random sample.
Sample Area:-
Sample area for the research is Nagpur City.
Need for the study:
The problems, which are common to most of the public sectors under taking, are materials
scarcity Capacity utilization and mainly working capital requirements. Thus the importance of
the study reveals as to how efficiently the risk analysis has been used so far in the
organization.

Scope of the study:

The scope of the study is limited to collecting financial data published in the annual reports of
the company every year. The analysis is done to suggest the possible solutions. The study is
carried out for 5 years

Data sources:

The study is based on secondary data. However the primary data is also collected to fill the
gap in the information..

 Primary data will be through regular interaction with the officials of Various
Companies.
 Secondary data collected from annual reports and also existing manuals and like company
records balance sheet and necessary records.

Limitations:-
1) The time duration for the study is limited to one month.

2) The study is limited to Nagpur only.

3) The data is limited to Tata financial service & company only.

4) The study ignored the factor of combined leverage.

5) The data may vary as there is fluctuation in decimal fractions.

Chapter-4 Data Analysis & Interpretation

Data Analysis and Interpretation

The proposed chapter will deal with detail analysis of the data collected for the project
entitled “A study capital structure of TATA financial services ltd. and analysis of the data
will be done with the help of charts, diagram etc.

Chapter-5 Conclusion & Suggestion

Conclusion and Suggestion

Conclusion and suggestions will be drawn on the basis of data analysis and interpretation.

.
 Chapter-6 Bibliography

Bibliography

1) Financial Management : Khan & Jain

2) Financial Management : I.M PANDEY

3) Financial Management : PRASANNA Chandra

4) News Papers : Financial Express

Economic Times

Websites:

 www.wikipideia.com

 www.slideshare.co.in

 http://www.scribd.com

 http://www.gobookee.org

 www.zestcreative.in/

 www.tatacapital.com