Acknowledgement

I would like to express my sincere gratitude to all those who supported me

in the successful completion of this project on the Analysis of Financial
Capital Structure.
First and foremost, I extend my heartfelt thanks to my mentor/guide
AMAN SINGH, whose guidance, encouragement, and constructive
feedback were invaluable throughout this study.
I am also grateful to JEEVANDEEP MAHAVIDYALAYA for providing me
with the resources and support necessary to conduct this research. The
access to financial data and academic materials greatly enriched the
quality of my analysis. My thanks also go to my peers and colleagues,
who offered insightful suggestions and moral support during the course of
this work.
Last but not the least, I express my deep appreciation to my family and
friends for their unwavering support, patience, and motivation, which
helped me stay focused and dedicated throughout the project.
This project has been a valuable learning experience, and I am thankful
for the opportunity to explore and analyze the capital structure of firms,
its impact on financial performance, and its strategic implications in
corporate finance.
SHUBHAM PANDEY
DATE-30/06/2025

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 Declaration Certificate
I hereby declare that the project report titled “Analysis of Financial
Capital Structure” submitted by me to JEEVANDEEP
MAHAVIDYALAYA is a genuine work carried out by me under the
guidance of AMIT SINGH [FACULTY OF COMMERCE]
This project has been submitted in partial fulfillment of the
requirements for the award of the degree of Bachelor of Commerce
and it has not been submitted previously for the award of any degree,
diploma, or certificate.
All the information presented in this report has been collected and
presented by me from authentic sources and is purely for academic
purposes.

NAME-SHUBHAM PANDEY
ROLL NO:13223840239
ENROLL NO.:KA2K23/132840239
COLLEGE NAME:JEEVANDEEP MAHAVIDYALAYA
COURCE -BCOM
YEAR-2022-25
DATE-30/06/2025

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Summary
This project/report presents an in-depth analysis of the financial capital
structure of a business, focusing on the composition and balance between
debt and equity financing. The capital structure is a critical aspect of
financial management, as it directly influences a company's risk, cost of
capital, profitability, and long-term sustainability.
The analysis includes a review of key financial ratios such as the debt-to-
equity ratio, interest coverage ratio, and leverage ratios, along with an
evaluation of how different capital structures affect the firm's performance
and valuation. Through both theoretical insights and practical case studies
(or real financial data), the report examines how companies make
financing decisions and the impact of external factors like market
conditions, interest rates, and investor expectations.
The findings suggest that an optimal capital structure balances risk and
return, minimizes the cost of capital, and supports strategic growth.
However, the ideal structure may vary depending on the industry,
company size, and business cycle stage.
This study concludes by emphasizing the importance of strategic financial
planning and flexibility in managing the capital structure to ensure
financial stability and long-term value creation for stakeholders.

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 JEEVANDEEP MAHAVIDYALAYA
(AFFILIATED TO MGKVP)

BADALALPUR VARANSI 221002

SESSION 2022-2025

RESEARCH PROJECT REPORT

ON
ANALYSIS OF FINANCIAL CAPITAL STRUCTURE

IN PARTIAL FULLFILLMENT OF BACHELOR IN COMMERCE

SUBMITED BY SUPERVISED
BY
NAME OF STUDENT:-SHUBHAM PANDEY TEACHERS
NAME:AMIT SINGH
ROLL NO:-13223840239 FACULTY OF
COMMERCE

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ENROLL NO:KA2K23/132840239 JEEVANDEEP
MAHAVIDYALAYA
BADALALPUR
VARANSI

PREFACE

Education becomes more meaningful when its theoretical aspects are combined with
practical experience this provide an opportunity to the student to improve their
understanding of the studies.

Summer training is an integral part of our academic curriculum. During the training t,
students get an opportunity to understand the practical aspects of various functional domain in an
organization. This builds a better understanding of practical challenges that bone phase during his
performance of task.

This project is the outcome of summer training that I have undergone

At “HINDALCO INDUSTRY LMITED” and the topic suggested to me by my company guide is
“ANALYSIS OF CAPITAL STRUCTURE, ECONOMICAND MARKET VALUE ADDED BY
HINDALCO INDUSTRY LIMITED”. The project emphasizes on the
financial aspects of the company. I have tried to my best to make a good project report, which
would be further used for any reference work. However no one can claim perfection in it’s
entirely. So I apologize for the discrepancy, if any, crept in.

Preparation of project requires perseverance, initiatives,proper

guidance and direction. Therefore, it is mandatory to take aids of various departments.

CONTENT

5
NO. Categories Page
No.
1 Preface 2
2 Introduction of Aditya Birla Group 4-5
3 Introduction Of Chairman 6
4 About The Company 7-8
5 Board Of Directors List 9
6 Company Leadership Teams 9
7 Business Outlooks 10
8 Products 11
9 11
10 Competitor Share 12-
13
11 Cash Flow Statement 14
12 Balance Sheet 15
13 Profit And Loss Statement 16
14 SWOT Analysis Of Hindalco 17

6
 HISTORY

7
The Aditya Birla group enjoys a front runner position:

Globally:-
A metals powerhouse among the world’s most cost efficient Aluminum and copper producers. Hindalco –
Novelist from its fold in fortune 500 company. It is the largest Aluminum 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





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 

IN ASIA:-



IN INDIA:-








“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”

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 HINDALCO INDUSTRIES LTD.
• INTRODUCTION:-
An industry leader in aluminums and copper An industry leader in aluminums and copper, Hidalgo Industries
Limited, the metals flagship company of the Adyta Birla Group is the world's largest aluminums rolling company
and one of the biggest producers of primary aluminums in Asia. The visionary — late Mr. G.D. Birla set up India's
first integrated aluminums 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 aluminums
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 nonferrous 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
valueadded 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 Centre, Florida.
• Operations in 5 continents, reaching customers in more than 50 countries.
• One of the world’s leading low cost producers of aluminium.
• One of the world’s 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.

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 OUR VISION , MISSION AND VALUES
Our Vision
“To strengthen our position as a premium Aluminum 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

Missionary zeal arising out

On the foundation of of an emotional
integrity, doing what it takes engagement with work
to deliver, as promised
 Responding to stakeholders with a sense of urgency
Thinking and working together across functional silos,
hierarchy levels, businesses and geographies

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Board of Directors

Mr. Kumar Mangalam Birla Non-Executive Chairman

Mrs. Rajashree Birla Non-Executive Director
Mr. Satish Pai Managing Director Mr. Praveen Kumar Maheshwari Whole time Director & CFO
Mr. Askaran Agarwala Non-Executive Director RMC SRC CSRC RMC FC
Mr. Kailash Nath Bhandari Independent Director AC SRC NRC RMC

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 Mr.
Satish
Pai
Ms. Alka Marezban Bharucha Independent Director
Mr. Sudhir Mital Independent Director

Managing director, Hindalco industries

Mr.

Mazharullah Beig, Unit Head – Utkal Alumina International Limited

Mr. Bibhu Mishra Head – Manufacturing Centre for Excellence
Mr. Saurabh Khedekar Head – Chemicals Business
Mr. Anil Malik Company Secretary
Mr. Rohit Pathak CEO, Copper Business
Mr. Aniruddha Kulkarni Chief Strategy Officer
Mr. Anil Mathew Head – Policy Advocacy and Chief Risk Officer
Mr. Samik Basu Chief Human Resources Officer
 BUSINESS OUTLOOKS
This Company has successfully demonstrated benefit of integrated approach with low cost upstream operations and
significant abilities and reach in downstream business. The robustness of Novelis’ de-risked business model by virtue
of its geographic spread – strong presence in emerging markets, product portfolio – with a strong proportion of
recession proof and yet high potential beverage cans in the product mix and focused approach to leverage the status
of preferred vendor to global auto majors have withstood these uncertain times. Hindalco’s aggressive expansion
programme has made a significant headway, despite tough ground conditions at its project locations

Greenfield Projects:-- Greenfield Projects have made significant progress during the year despite tough ground
conditions at the project locations.

Utkal Alumina International Ltd (Uail):- The construction of the alumina refinery, along with a 90
MW captive co-generation plant is in progress at UAIL, a 100% subsidiary of the Company. The output from UAIL
would be sufficient to feed alumina to the Mahan and the Aditya Smelters.

Mahan Aluminium Project:-This 359 KTPA Aluminium Smelter, along with 900 MW CPP, is coming up in
Bargwan, Madhya Pradesh. The project is on the verge of commissioning. Mahan Aluminium project and Utkal
Alumina project are now close to the stage of commissioning. These projects will re-define Hindalco’s aluminium
business since all these projects will have a world beating cost structure. The Group of Ministers constituted by the
Government of India to consider environmental and developmental issues related to coal mining etc, has reported to
have recommended granting of forest clearance by the Ministry of Environment &Forest [MoEF] for Mahan Coal
block on certain conditions

The Aditya Aluminium And Refinery Project:-A 359 ktpa, Aluminium smelter along with a 900
MW captive power plant, identical to the Mahan Project, is coming up in Odisha. The project is slated for completion
in 2013. A coal block has been allotted for this project jointly with Mahanadi Coal Fields Limited and Neyveli Lignite
Corporation Limited. Alumina Refinery along with a cogen plant, is also coming up.

The Jharkhand Aluminium Project:- Aluminium smelter along with a captive power plant is coming up in
Sonahatu, Jharkhand. The land acquisition process has already begun. For this project the Tubed coal mine has been
allotted to the project jointly with Tata power.

15
Brownfield Projects:- There were important developments in India w.r.t. your Company’s strategic goal of higher

16
VAP proportion.

The Hirakud FRP project has made a significant progress. This project, which involved relocation of some equipments
from a closed facility of Novelis, will be the first and the only facility that will have the capability to produce canbody
stock in India. This facility will take Hindalco’s FRP play on a higher plateau in terms of capability and profitability
in the coming years

17
Products

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 1. Building sheets
2. Ingots
3. Fin stock
4. Closure stock
5. Hot rolled plates
6. Cable wraps stock
7. Cold rolled coils

COMPETITORS

power generation, MALCO is surging ahead to achieve global recognition in aluminium

production.

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Maan Aluminum

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The company is one of the pioneers in the Aluminium extrusion industry in India; its plant in central India was one
of the first to be commissioned in the year 1989. In the year 2009, the company was rebranded as Maan Aluminium
Ltd.; the new entity now includes trading and manufacturing operations, having industry experience and knowledge
of over 32 years.

The company had a humble beginning in manufacturing Aluminium extrusions, in a record time of eleven months
commenced commercial operations, and today has the distinction of being one of the nation's largest manufacturers
and exporters of Aluminium extruded products from central India.

What is Capital Structure?

Capital Structure refers to the amount of debt and/or equity employed by a firm to fund its operations and finance its
assets. The structure is typically expressed as a debt-to-equity or debt-to-capital ratio.

Debt and equity capital are used to fund a business’ operations, capital expenditures, acquisitions, and other
investments. There are tradeoffs firms have to make when they decide whether to raise debt or equity and managers
will balance the two try and find the optimal capital structure.

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SWOT ANALYSIS OF HINDALCO

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