This document presents a study on the capital structure and leverage analysis of Swiss Glascoat Equipments Limited. It analyzes the company's capital structure using the net income and net operating income approaches over the last 5 years. The degree of operating leverage has decreased by 0.20% while the degree of financial leverage has increased by 0.11%. Overall, the analysis finds that the company's current capital structure and profits are lower than the previous year, suggesting room for improvement.

1. A
PRESENTATION
ON
“ A STUDY ON CAPITAL STRUCTURE & LEVERAGE ANALYSES”
FOR
“ SWISS GLASCOAT EQUIPMENTS LIMITED”
Prepared by:
IMRAN VHORA
(Enrollment No.177020592012)
ANAND INSTITUTE OF MANAGEMENT-702
(MBA SEM -3)

2. OVERVIEW OF MACHINERY INDUSTRY
 Machinery Industry in India
 High demand in Domestic & International market
1)Agriculture Machinery Industry
 Help to increase Productivity of Land and Labor. E.g. Cropping
2)Textile Machinery Industry
 India is the 2nd largest in the world. E.g. sophisticated machinery
3) Construction Machinery Industry
 Huge Govt. Construction Projects E.g. Larsen & Toubro, Telco
4) Industrial Machinery Growth Rate
 Growth – rise 5% in last 4year
 Revenue - $ 2 trillion in 2018

3. SWISS GLASCOAT EQUIPMENT LIMITED
Name SWISS GLASCOAT EQUIPMENT LIMITED
Establishment Year 1992
Incorporation Year 1994
Form Public Limited Company
Director Mr. Sudarshan Amin
Location G.I.D.C., ANAND
Website www.Glascoat.com
Strength Ability to look into the actual need of the
customers and design the USER FRIENDLY
product. E.g. Pharmaceutical , Chemical

4. OVERVIEW OF FUNCTIONAL DEPARTMENT
1)Production Department
 Glaslined Reactor 1600 litters
2) Marketing Department
 Product & Price planning
 Advertisement & Promotion
3) H.R. Department
 Recruitment & Selection
 Training & Development
4) Finance Department
 Finance
 Accounting

5. TOPIC-“ A STUDY ON CAPITAL STRUCTURE &
LEVERAGE ANALYSES”
 Capital Structure – Equity and Debt securities
 Importance
1) Value Maximization
2) Cost Minimization
 Method
 1) Net income approach (NI)
 2) Net operating income approach (NOI)
o Leverage Analyses - Use of assets and sources of funds
 Method
 1) Operating Leverage
 2) Financial Leverage
 3) Combine Leverage

6. OBJECTIVE OF STUDY
 To understand the capital structure of Swiss Glascoat
company.
 To identify the share capital and debt of the company
under Net income (NI) and Net Operating Income (NOI)
Approach.
 To analyze the impact of leverage on profitability.
 To evaluate the trend of the determinants of the capital
structure during last five years of manufacturing firm.

7. METHODOLOGY OF STUDY
Method of Data collection Secondary Data
Sources of Data Financial statement of last five year
2013-12 to 2017-16.
Time period of study 6 week
Other tools Annual Report , Books ,Journal

8. ANALYSIS AND INTERPRETATION
NET INCOME APPROACH
12.71
12.02 11.95 12.08
11.83
11.2
11.4
11.6
11.8
12
12.2
12.4
12.6
12.8
2017-16 2016-15 2015-14 2014-13 2013-12
7.5 7.94 7.95 7.95 7.99
0
1
2
3
4
5
6
7
8
9
2017-16 2016-15 2015-14 2014-13 2013-12
NET OPERATING INCOME APPROACH

9. 1.4
1.72
0.43
0.8
1.2
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
2017-16 2016-15 2015-14 2014-13 2013-12
Operating Leverage
1.65
1.54
1.58
1.49
1.63
1.4
1.45
1.5
1.55
1.6
1.65
1.7
2017-16 2016-15 2015-14 2014-13 2013-12
2.31
2.65
0.68
1.4
2.43
0
0.5
1
1.5
2
2.5
3
2017-16 2016-15 2015-14 2014-13 2013-12
Combine Leverage
Financial leverage

10. FINDING
 Degree of leverage shows good condition of the
company and shareholders also.
 Value of firm increase by 1.5 % in 2017-16 in
respect to 2015-16, so it is a positive signal.
 Sales reduction is directly impact on overall
profitability.
 Changes in capital structure is also inversely
affected to value of firm & leverage.

11. CONCLUSION
 Reduction of profit directly affect the overall
performance of the company.
 Company’s Current capital structure is negative in
respect to previous year.
 Earning after tax (EAT) is lower at Rs.3.06 Crore
In 2017 against Rs. 4.15 Crore in 2016.
 Degree of operating leverage is decrease by0.20%.
 Degree of financial leverage is increase by 0.11%.

12. REFERENCE
 WEBSITE
 www.glascoat.com
 www.managementstudyguide.com
 www.managementparadise.com
 BOOKS
 “I.M. Pandey” – Financial Management, 10thedition,vikas
publication.
 JOURNAL
 Annual report of Swiss Glascoat last 5 year 2013-12 to
2017-16.

13. Thank you