SYNOPSIS ON

A STUDY ON CAPITAL STRUCTURE AT KARNATAKA

POWER CORPORATION LIMITED

Dissertation Submitted In Partial Fulfillment of the Requirements for the

Award of the Degree Of
MASTER OF BUSINESS ADMINISTRATION
Of
BANGALORE UNIVERSITY

By
RAPALLI.SURENDRA BABU
Reg. No. 12UHCMA074
Under The Guidance Of
Dr .R. RANGANATH
EAST WEST COLLEGE OF MANAGEMENT
#63, off Magadi road, Vishwaneedam post, Bangalore-560091
2014

CERTIFICATE FROM FACULTY GUIDE

This is to certify that Mr. Rapalli.Surendra babu has successfully

completed his Dissertation project at "KARNATAKA POWER CORPORATION
LIMILITED", Bangalore. He has submitted this report under my guidance and
supervision towards the partial fulfillment of the requirements of MBA course of
Bangalore university, Bangalore during April -May 2014.

Date:

Dr.Raganatha

Place: BANGALORE

(ASST. Professor)

DECLARATION

I hereby declare that CAPITAL STRUCTURE is the result of the project work carried out by
me under the guidance of Dr.RANGANATHA in partial fulfillment for the award of Masters
Degree in Business Administration by Bangalore University.
I also declare that this project is the outcome of my own efforts and that it has not been submitted
to any other University or Institute for the award of any other degree or Diploma or Certificate.

Place: BANGALORE

Rapalli.Surendra Babu

Date:

(Reg.No:12UHCMA074)

ACKNOWLEDGEMENT

The satisfaction that accompanies the successful completion of any task would be
incomplete without the mention of the people who made it possible and whose
constant encouragement and guidance has been a source of inspiration throughout
the course of the project.
I acknowledge my heartful thanks and profound gratitude to Dr.Ranganatha
faculty guide for his whole hearted support and valuable guidance during the
period of completion of the dissertation report.
I express my profound sense of gratitude to Mr. Sunil V Mudrabettu (Asst.
General Manager Finance), Mr. Anand (General Manager) and Mr.
Chadersheker (Assistant Manager) Karnataka Power Corporation Limited,
Bangalore for sharing their precious time and imparting their invaluable
knowledge and expert advice, guidance and inspiration
I praise the Lord, The Almighty for his abundance of grace in giving me health,
knowledge and strength to take up this dissertation and complete it in time.
Finally I would like to express my sincere thanks to My Parents and Friends who
provided the moral support required to complete the project.

Place: Bangalore

Rapalli,Surendra Babu

Date:

(Reg.No: 12UHCMA

CHAPTERS

TITLE

PAGENO.

Chapter-One

INTRODUCTION

1-22

Chapter-Two

PROFILE OF THE ORGANIZATIONS

23-38

Chapter-Three

RESEARCH DESIGN

39-52

Chapter-Four

DATA ANALYSIS AND INTERPRETATION

53-84

Chapter-Five

SUMMARY OF FINDINGS, CONCLUSIONS AND

SUGGESTIONS

85-87

BIBLIOGRAPHY

88

ANNEXURE

89-97

TABLE OF CONTENTS

LIST OF TABLES
TABLE
NO

TABLES

1.

SHARE CAPITAL AND RESERVES AND SURPLUS

PAGE
NO

54-55
2.

DEBT AND EQUITY

3.

EARNING PER SHARE

58-59
61-62
4.

EQUITY AVAILABLE TO EQUITY SHARE HOLDERS

5.

NUMBER OF OUTSTANDING SHARES

66-67
69-72
6.

FINANCIAL PERFORMANCE
81

7.

CASH MANAGEMENT

8.

CASH FLOW STATEMENT

83
82-84
9.

BALANCE SHEET
89-97

LIST OF CHARTS
CHART
NO.

CHART SHOWING

1.

CAPITAL STRUCTURE

PAGE
NO.
13

2.

PROCESS OF CAPITAL STRUCTURE

15

3.

SHARE CAPITAL AND RESERVES AND SURPLUS

56-57

4.

DEBT AND EQUITY

60

5.

EARNING PER SHARE

63-65

6.

EQUITY ABAILABLE TO EQUITY SHARE HOLDERS

78

7.

FINANCIAL PLAN
80

EXECUTIVE SUMMARY

Short-term survival is a perquisite to long term success". One of the most important
areas in the day to day management of the firm is the proper management of capital
structure. Capital Structure is the functional area of the firm.
The basic aim of Capital Structure is to manage each of the firm's current assets and
current liabilities on such a way that an appropriate level of net Capital Structure is
always maintained in the business. each current asset must be maintained efficiently
in order to maintain the liquidity of the firm and not to keep too high a level of any
one of them. In ultimately helps increasing the profitability of the firm flense the
problem of the efficient management of Capital Structure is to establish a proper
balance between liquidity and profitability. For any business house capital structure
is a matter of top priority as it has a bearing on credit worthiness liquidity solvency
and profitability. capital structure refers to the funds invested in current assets i.e.
investment in stock debtors cash and other. It is also concerned with the management
of the level of individual current assets as well as the most of total capital structure.
one aspect of capital structure is the tradeoff between profitability and liquidity.
The present study in KPCL is intended to study the current practice in capital
structure and to evaluate the performance of the capital structure.
The basic aim of capital structure management is to manage each of the firm's current assets and
current liabilities on such a way that an appropriate level of net capital structure is always
maintained in the business. Each current asset must be maintained efficiently in order to maintain
the liquidity of the firm and not to keep too high a level of any one of them. In ultimately helps
increasing the profitability of the firm flense the problem of the efficient management of capital
structure is to establish a proper balance between liquidity and profitability

Name of the college and address

EAST WEST COLLEGE OF MANAGEMENT, BANGALORE
MBA Dissertation 2014
Registration Form
1. Name of the Student: RAPALLI.SURENDRA BABU
2. Name of the Guide: Prof, DR.RANGANATHA
3. Proposed research area: FINANCE
4. Proposed research topic: FINANCE
5. Write a brief note on your topic: A STUDY ON CAPITAL STRUCTURE AT
KARNATAKA POWER CORPORATION LIMITED
Capital structure
The term capital structure refers to the percentage of capital (money) at work in a business by
type. Broadly speaking, there are two forms of capital: equity capital and debt capital. Each has
its own benefits and drawbacks and a substantial part of wise corporate stewardship and
management is attempting to find the perfect capital structure in terms of risk / reward payoff for
shareholders. This is true for Fortune 500 companies and for small business owners trying to
determine how much of their start-up money should come from a bank loan without endangering
the business.

Students Signature:
Approval of the guide

Guides Signature with date