XAVIER INSTITUTE OF

MANAGEMENT AND RESEARCH

Capital Structure Analysis

An Industry-Company Comparison Report
A corporate finance evaluation of capital structure of three company
in comparison to three different industries and their respective
sectors. Graphical representation of their various components and
composition of the capital structure.

PREPARED BY
ELITA PAULA DSOUZA
1316
 DABUR INDIA LTD.
INDUSTRIAL :

DESCRIPTION 18-Mar 17-Mar 16-Mar 15-Mar 14-Mar 13-Mar

Share Capital 65.05 912.2 941.39 901.69 910.36 979.61

Capital Reserves 125.89 295.89 296.63 287.21 256.38 201.55
Profit & Loss Account Balance 134.99 13574.48 10821.64 6814.47 5316.65 4406.7
General Reserves 452.82 6067.4 5795.41 5504.45 5001.26 4277.28
Other Reserves 64.98 31.75 2.23 2.51 2.51
Other Long Term Liabilities 700.43 520.79 405.57 510.57 557.4
Long Term Trade Payables 5.33 6.17 12.83 16.13 20.3
Long Term Provisions 8.86 3074.16 2667.34 2422.03 2166.43 2609.25
Trade Payables 685.92 10655.69 9866.41 9150.25 9263.88 8541.65
Other Current Liabilities 242.41 3010.21 2815.82 2980.21 2867.12 2606.6
Total 1715.94 38360.77 33763.35 28480.94 26311.29 24202.85
Reserves 0.26 0.16 0.17 0.19 0.19 0.18
P&L 0.08 0.35 0.32 0.24 0.20 0.18
100%
Other Current Liabilities
90%
Trade Payables
80%
Long Term Provisions
70%
Long Term Trade Payables
60%
Other Long Term Liabilities
50%
Other Reserves
40%
General Reserves
30%
Profit & Loss Account
20% Balance
Capital Reserves
10%
Share Capital
0%
13-Mar 14-Mar 15-Mar 16-Mar 17-Mar 18-Mar

Here we see that there is no proper trend. The INDUSTRY focuses more on the trade payable for
their debt and it ranges from minimum of 45% in 2018 to 91% . this can be due to increase in the
increased confidence level in the market.
COMPANY:

DESCRIPTION 18-Mar 17-Mar 16-Mar 15-Mar 14-Mar 13-Mar

Share Capital 176.15 176.15 175.91 175.65 174.38 174.29
Capital Reserves 26.92 26.92 26.92 26.92 26.92 26.92
Profit & Loss Account Balance 3187.07 2592.66 2169.17 1597.04 1335.02 1090.03
General Reserves 513.43 513.43 413.52 318.62 239.15 169.19
Other Reserves 0.44 29.39 18.53
Other Long Term Liabilities 4.25 3.71 4.96
LONG TERM TRADE PAYABLES
Long Term Provisions 50.04 306.63 317.76 315.52 312.87 312.01
Trade Payables 960.62 907.16 931.34 756.64 704.67 573.61
Other Current Liabilities 120.08 152.29 139.51 168.10 147.30 135.62
Total 5039.00 4708.34 4197.62 3358.49 2940.31 2481.67
Reserves 0.10 0.12 0.10 0.09 0.08 0.07
P&L 0.63 0.55 0.52 0.48 0.45 0.44
100%

90%

80%
Other Current Liabilities
70% Trade Payables
Long Term Provisions
60%
LONG TERM TRADE PAYABLES

50% Other Long Term Liabilities

Other Reserves
40% General Reserves
Profit & Loss Account Balance
30%
Capital Reserves
20% Share Capital

10%

0%
13-Mar 14-Mar 15-Mar 16-Mar 17-Mar 18-Mar

Here Dabur India Ltd. the highest proportion of funds employed through equity belonged to Profit and
Loss account. More profits were retained during the period where the company went through a
slowdown as compared to the period of high growth.
MANUFACTURING INDUSTRY
PARTICULARS Mar-18 Mar-17 Mar-16 Mar-15 Mar-14 Mar-13
DEBT 0 2524.15 2665.78 2644.18 3244.61 5635.57
EQUITY 1837.63 47777.18 41759.38 32672.94 28053.1 24619.03
D/E 0.00 0.05 0.06 0.08 0.12 0.23
60000

50000

40000

30000 EQUITY
DEBT

20000

10000

0
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Given that the debt-to-equity ratio measures a company’s debt relative to the value of its net assets, it
is most often used to gauge the extent to which a company is taking on debt as a means of leveraging
its assets. A high debt/equity ratio is often associated with high risk; it means that a company has been
aggressive in financing its growth with debt.
There has been a spike in its equity in 2017 and the debt has been constantly low.
 DABUR
PARTICULARS Mar-18 Mar-17 Mar-16 Mar-15 Mar-14 Mar-13
DEBT 0 2524.15 2665.78 2644.18 3244.61 5635.57
EQUITY 7445.71 6961.45 5830.93 4393.35 3452.46 2806.99
D/E 0.00 0.36 0.46 0.60 0.94 2.01
10000

9000

8000

7000

6000

5000 EQUITY
DEBT
4000

3000

2000

1000

0
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
Given that the debt-to-equity ratio measures a company’s debt relative to the value of its net
assets, it is most often used to gauge the extent to which a company is taking on debt as a means of
leveraging its assets. A high debt/equity ratio is often associated with high risk; it means that a
company has been aggressive in financing its growth with debt.
The debt that the company has taken have gradually reduced in the year 2017-18. Changes in long-
term debt and assets tend to have the greatest impact on the D/E ratio because they tend to be larger
accounts compared to short-term debt and short-term assets.
HDFC ASSET MANAGEMENT
INDUSTRIAL:

DESCRIPTION 18-Mar 17-Mar 16-Mar 15-Mar 14-Mar 13-Mar

Share Capital 3750.52 3574.29 3654.54 3735.69 4269.36 4129.19
Capital Reserves 2477.06 2616.65 2641.47 968.31 1383.87 1416.03
Profit & Loss Account Balance 4198.4 3898.35 2685.77 1058.68 974.6 848.03
General Reserves 6066.41 6071.51 5914.21 5814.48 5804.24 5830.28
Other Reserves 475.64 30.84 26.44 79.9 105.74 92.08
Other Long Term Liabilities 133.04 128.38 294.41 161.3 251.6 249.11
Long Term Trade Payables 130.86 4.64 14.06 14.16 14.34 14.61
Long Term Provisions 1542.54 1828.27 2269.76 2042.02 2267.52 2244.48
Trade Payables 489.98 1244.97 496.12 514.99 495.77 1083.56
Other Current Liabilities 1162.89 1707.71 1156.09 2267.01 1752.24 1193.87
Total 20427.34 21105.61 19152.87 16656.54 17319.28 17101.24
Reserves 0.32 0.29 0.31 0.35 0.34 0.35
P&L 0.21 0.18 0.14 0.06 0.06 0.05
100%

90%

80% Other Current Liabilities

Trade Payables
70%
Long Term Provisions
60% Long Term Trade Payables
50% Other Long Term Liabilities
Other Reserves
40%
General Reserves
30% Profit & Loss Account Balance

20% Capital Reserves

Share Capital
10%

0%
13-Mar 14-Mar 15-Mar 16-Mar 17-Mar 18-Mar

General reserves: as suggested by the name, general reserves are not kept aside for any particular
purpose, but for the general financial strengthening of the company.

A capital reserve is an account on the balance sheet that can be used for contingencies or to offset
capital losses. It represents the accumulated capital surplus of a company, created out of capital profit,
such as the upward revaluation of its assets to reflect their current market value after appreciation or
profits on the sale of assets. Sums allocated to a capital reserve are permanently invested and cannot
be used to pay dividends.
COMPANY:

DESCRIPTION 18-Mar 17-Mar 16-Mar 15-Mar 14-Mar 13-Mar

Share Capital 105.28 25.17 25.16 25.24 25.24 25.24
Capital Reserves
Profit & Loss Account Balance 1483.80 1239.81 1023.26 937.12 760.04 590.04
General Reserves 174.97 102.81 47.79 103.31 61.76 31.87
Other Reserves 2.60 2.60 2.60 2.60 3.36
Other Long Term Liabilities
Long Term Trade Payables
Long Term Provisions 0.78 0.80 15.00 15.00 15.00 15.00
Trade Payables 111.58 96.06 171.98 95.09 147.72 59.74
Other Current Liabilities 98.19 79.69 84.52 81.77 57.36 52.70
Total 1974.59 1546.95 1370.31 1260.13 1069.72 777.96
Reserves 0.09 0.07 0.04 0.08 0.06 0.05
P&L 0.75 0.80 0.75 0.74 0.71 0.76

100%

90%

80% Other Current Liabilities

Trade Payables
70%
Long Term Provisions
60% Long Term Trade Payables

50% Other Long Term Liabilities

Other Reserves
40%
General Reserves
30%
Profit & Loss Account Balance
20% Capital Reserves

10% Share Capital

0%
13-Mar 14-Mar 15-Mar 16-Mar 17-Mar 18-Mar

The highest proportion of funds employed through equity belonged to Profit and Loss account.
INDUSTRY

PARTICULARS Mar-18 Mar-17 Mar-16 Mar-15 Mar-14 Mar-13

debt 2933.29 2061.47 1218.8 1123.11 2185.64 2193.77
equity 52899.48 48839.43 47662.56 40820.59 42679.78 41896.8
D/E 0.06 0.04 0.03 0.03 0.05 0.05

60000

50000

40000

30000 equity
debt
20000

10000

0
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Given that the debt-to-equity ratio measures a company’s debt relative to the value of its net assets, it
is most often used to gauge the extent to which a company is taking on debt as a means of leveraging
its assets. A high debt/equity ratio is often associated with high risk; it means that a company has been
aggressive in financing its growth with debt.
The equity is increasing gradually with its highest in 2018 and the debt takes is constantly low
showing it is financially stable.
COMPANY

PARTICULARS Mar-18 Mar-17 Mar-16 Mar-15 Mar-14 Mar-13

debt 309.91 0 0 0 0 0
equity 2572.94 2768.3 2224.87 2162.92 1725.62 1327.28
D/E 0.12 0.00 0.00 0.00 0.00 0.00
3500

3000

2500

2000
equity
1500 debt

1000

500

0
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Given that the debt-to-equity ratio measures a company’s debt relative to the value of its net assets, it
is most often used to gauge the extent to which a company is taking on debt as a means of leveraging
its assets. A high debt/equity ratio is often associated with high risk; it means that a company has been
aggressive in financing its growth with debt.
Debt has been constantly near zero and a gradual increase in its equity.
MT EDUCARE LTD.
INDUSTRY:

INDUSTRY COMPONENTS OF CAPITAL

DESCRIPTION 18-Mar 17-Mar 16-Mar 15-Mar 14-Mar 13-Mar
Share Capital 344.51 268.46 266.25 246.28 256.66 223.09
Capital Reserves 2.63 2.63 2.63 2.63 5.18 4.34
Profit & Loss Account Balance 163.48 208.92 317.49 264.25 194.15 155.08
General Reserves 94.94 235.59 224.89 205.21 188.74 174.19
Other Reserves -2.98 0.59 1.44
Other Long Term Liabilities 81.24 18.52 25.06 27.56 21.34 24.26
Long Term Trade Payables 0.94 4.17 3.73 0.03
Long Term Provisions 22.6 28.34 24.59 20.95 19.1 3.94
Trade Payables 116.68 95.2 81.03 100.93 86.9 93.11
Other Current Liabilities 549.33 311.08 186.88 215.27 181.71 287.19
Total 1373.37 1172.91 1132.55 1083.11 954.37 966.64
Reserves 0.07 0.20 0.20 0.19 0.20 0.18
P&L 0.12 0.18 0.28 0.24 0.20 0.16
100%

80%
Other Current Liabilities
Trade Payables
60% Long Term Provisions
Long Term Trade Payables
Other Long Term Liabilities
40%
Other Reserves
General Reserves
20% Profit & Loss Account Balance
Capital Reserves
Share Capital
0%
13-Mar 14-Mar 15-Mar 16-Mar 17-Mar 18-Mar

-20%

There has been a constant trend through the years with highest current liabilities in 2018. Current
liabilities are a company's debts or obligations that are due within one year or within a normal
operating cycle. Furthermore, current liabilities are settled by the use of a current asset, such as cash,
or by creating a new current liability. Current liabilities appear on a company's balance sheet and
include short-term debt, accounts payable, accrued liabilities, and other similar debts.
COMPANY:

COMPANY COMPONENTS OF CAPITAL

DESCRIPTION 18-Mar 17-Mar 16-Mar 15-Mar 14-Mar 13-Mar
Share Capital 71.79 39.82 39.82 39.79 39.78 39.55
Capital Reserves
Profit & Loss Account Balance 0.02
General Reserves -57.47 84.66 73.96 54.35 42.45 30.93
Other Reserves
Other Long Term Liabilities 3.25 2.11 5.46 7.14 3.00 8.40
Long Term Trade Payables
Long Term Provisions 2.75 2.12 1.46 0.86 0.75 0.55
Trade Payables 19.72 15.82 3.72 3.42 3.12 2.01
Other Current Liabilities 72.16 39.79 45.38 34.91 35.04 47.54
Total 112.21 184.32 169.80 140.48 124.14 128.98
Reserves -0.51 0.46 0.44 0.39 0.34 0.24
P&L 0.00 0.00 0.00 0.00 0.00 0.00
100%

80%

Other Current Liabilities

60% Trade Payables
Long Term Provisions
Long Term Trade Payables
40%
Other Long Term Liabilities
Other Reserves
20%
General Reserves
Profit & Loss Account Balance
0% Capital Reserves
13-Mar 14-Mar 15-Mar 16-Mar 17-Mar 18-Mar Share Capital

-20%

-40%

Here there is a negative general reserve in 2018, Reserves are created out of profits of the Co and
forms part of net worth together with the Equity Capital of the unit and is part of liabilities of the
business .But losses accumulated become negative Reserves and will erode the net worth of the Co.
and accumulated losses when exceed the reserves held it becomes negative and is deducted from
Capital and at one stage it fully erodes the capital with the net worth resulting into negative position
and speaks of bad state of the Co.
Industry:

PARTICULARS Mar-18 Mar-17 Mar-16 Mar-15 Mar-14 Mar-13

debt 313.88 151.44 211.22 161.49 208.62 127.15
equity 3635.06 3458.96 3428.06 3225.74 2451.45 2026.58
D/E 0.09 0.04 0.06 0.05 0.09 0.06
4500
4000
3500
3000
2500
equity
2000
debt
1500
1000
500
0
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Given that the debt-to-equity ratio measures a company’s debt relative to the value of its net assets, it
is most often used to gauge the extent to which a company is taking on debt as a means of leveraging
its assets. A high debt/equity ratio is often associated with high risk; it means that a company has been
aggressive in financing its growth with debt.
The debt is constantly low and the equity is increasing to its highest in 2108
Company:

PARTICULARS Mar-18 Mar-17 Mar-16 Mar-15 Mar-14 Mar-13

debt 58.76 22.11 5.46 7.14 3 8.4
equity 208.31 156.26 145.22 125.84 113.89 101.47
D/E 0.28 0.14 0.04 0.06 0.03 0.08
300

250

200

150 equity
debt
100

50

0
Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

Given that the debt-to-equity ratio measures a company’s debt relative to the value of its net assets, it
is most often used to gauge the extent to which a company is taking on debt as a means of leveraging
its assets. A high debt/equity ratio is often associated with high risk; it means that a company has been
aggressive in financing its growth with debt.
There has been a sudden rise in debt beginning from the year 2016-17-18. The equity is rising from
2017.