SRI KRISHNA INSTITUTE OF MANAGEMENT SUGUNAPURAM, COIMBATORE 641008

PROJECT REPORT 2013 This is to certify that the internship training report entitled A STUDY ON CAPITAL STRUCTURE ANALYSIS OF ROOTS INDUSTRIES INDIA LIMITED, COIMBATORE. Is a bonafide record of work done by K.S.SATHYABHARATHI Register No: 713711631085 Of MBA Degree during the year 2012-2013

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Project Guide

Director

Submitted for the Viva-Voce examination held on ______________

----------------------------Internal Examiner

---------------------------External Examiner

DECLARATION

I affirm that the project report titled A STUDY ON CAPITAL STRUCTURE OF ROOTS INDUSTRIES INDIA LIMITED, COIMBATORE being submitted in partial fulfillment of the requirements of Anna University, Chennai for the award of MBA degree is the record of original work carried out by me. It has not formed the part of any other project work submitted for award of any degree or diploma, either in this or any other University.

K.S. SATHYABHARATHI 713711631085

I certify that the declaration made above by the candidate is true

G.NITHYA PROJECT GUIDE

ACKNOWLEDGEMENT
Every step that we take and every mile that we cover leaves its mark on our wake in this difficult journey. I express my heartfelt thanks to Dr. C. Ramakrishnan, Director, Sri Krishna Institute of Management, Coimbatore, for providing necessary facilities and instructions to do the project successfully. It is my great pleasure to acknowledge my deep sense of gratitude and heartfelt thanks to G.NITHYA, Assistant Professor, Sri Krishna Institute of Management, Coimbatore for the encouragement. I am immensely thankful to her for her guidance and excellence support, utmost motivation and valuable suggestions during the project. I express my profound thanks to G. Balasubramaniam, Secretary, Dr.Kavidasan, Director and Mr. N.Sampathkumar, Associate Head, Training & Development, and Roots Industries Limited India, Coimbatore for his support during my project. I am thankful to all the staff members of Sri Krishna Institute of Management whose guidance helped me to complete my project. Finally I thank the almighty for the successful completion of my project. K.S.SATHYABHARATHI

TABLE OF CONTENT S.NO TITLE Abstract List of tables List of charts Introduction 1.1 Scope of the study 1.2 objective of the study 1.3 Limitation of the study 1.4 period of the study Review of literature Profile of the company 3.1 Industry profile 3.2 Company profile Research methodology 4.1 Research design 4.2 Method of data collection 4.3 Tools and techniques Analysis and interpretation Findings and suggestion References PAGE NO i ii iii 1 11 11 11 11 13 17 19 27 27 27 29 41 43

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ABSTRACT

ABSTRACT

The study A STUDY ON CAPITAL STRUCTURE AT ROOTS INDUSTRIES INDIA LIMITED, COIMBATORE. The major objective of the project is to study about the Capital structure of the company. Find out the optimal capital structure i.e. Debt-Equity mix. Secondary data for the study was collected through annual report of the company. The collected data were analyzed using various tools like ratio. The findings based on the analysis and suitable suggestions to the organization have been presented in the report.

LIST OF TABLES

TABLE NO 5.1 5.2 5.3 5.4 5.5

TABLE NAME Proprietary ratio Capital to reserve ratio Capital Gearing Ratio Fixed assets turnover Ratio Total debt equity ratio

PAGE NO 30 32 34 36 38

LIST OF CHARTS CHART NO 5.1 5.2 5.3 5.4 5.5 CHART NAME Proprietary ratio Capital to reserve ratio Capital Gearing Ratio Fixed assets turnover Ratio Total debt equity ratio PAGE NO 31 33 35 37 39