Deepika Dinesh Gowdar (P02CU21M0008)

“A STUDY ON LEVERAGES AND ITS EFFECT ON
PERFORMANCE OF THE COMPANY AT

FASTENERS AND ALLIED PRODUCTS PVT LTD”
Report submitted to
GEN Society’s,
GLOBAL BUSINESS SCHOOL, HUBLI
(Affiliated to Karnatak University, Dharwad & Recognized by AICTE, New Delhi)
By
Deepika Dinesh Gowdar

P02CU21M0008
Under the guidance of
Prof.Arun Kubsad Goudar Ms. Vani P Sonnad

(Internal Guide) (External Guide)
NOVEMBER 2023
GLOBAL BUSINESS SCHOOL

HUBLI-580025
GEN Society’s,
GLOBAL BUSINESS SCHOOL, HUBLI

(Affiliated to Karnatak University, Dharwad & Recognized by AICTE, New Delhi)
CERTIFICATE
This is to certify that the Major Concurrent Project-2023 entitled “A study on

leverages and its effect on performance of the company at Fasteners and
allied products Pvt Ltd” is the bonafide record of independent research work
conducted by Miss Deepika Dinesh Gowdar (Reg.No:P02CU21M0008)under
my supervision, submitted to Karnatak University, Dharwad for the partial
fulfillment for the award of the Degree of Master of Business Administration
and that the project has not previously formed the basis for the award of any
degree, diploma, associateship, fellowship or title.
Place: Hubli Prof. Arun Kubsad Goudar

Date: 18-11-2023 Institution Guide
Dr. Prasad Roodagi
DIRECTOR
Global Business School,
Hubli - 580025
ACKNOWLEDGEMENT
No work is said to be complete without thanking the people who have helped me
in perceiving any job. So, this acknowledgement is for those people who have
played their role in completion of my major concurrent project. The project would
not have been completed without the kind co-operation and help of certain
individual to whom I owe this heartfelt gratitude.
I extend my sincere thanks for my beloved Director Dr. Prasad Roodagi
I would like to express my sincere gratitude to my internal guide Prof. Arun
Kubsad Goudar and my external guide Ms. Vani P Sonnad for this valuable
guidance in the completion of this project successfully.
I also express thanks to the all-faculty members for their valuable suggestions,
encouragements, guidance and support, I would also like to thank all the
respondents for extending the required timely help. I would like to thank my
family who were a constant source of encouragement and provided me with
necessary resources. I would lastly thank non-teaching Staffs and all my friends
who are directly indirectly in involved with their help and guidance in the
successful completion of my study.
DECLARATION
I, Deepika Dinesh Gowdar (P02CU21M0008) hereby declare that the Project
titled “A study on leverages and its effect on performance of the company at
Fasteners and allied products Pvt Ltd” submitted by me in partial fulfillment
of the requirement for the award of the degree of “Master of Business
Administration” by Karnatak University, Dharwad; this is not submitted
elsewhere for the award of any other degree or diploma.
Date: 18-11-2023 Deepika Dinesh Gowdar

Place: Hubli M.B.A IV semester
" A study on leverages and its effects on performance of the company at Fasteners and allied
products Pvt Ltd"
Table Of Contents
Executive Summary .................................................................................................2
Industry profile.........................................................................................................4
Company Profile.......................................................................................................9
Literature Review...................................................................................................28
Research Methodology ..........................................................................................34
Theoretical Framework .........................................................................................36
Data Analysis and Interpretation .........................................................................46
Findings ...................................................................................................................59
Suggestions ..............................................................................................................61
Conclusion...............................................................................................................62
Bibliography ...........................................................................................................63
Annexure .................................................................................................................64
Global Business School,Hubli 1

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Executive Summary

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As a part of our course, Major Concurrent Project during IVsemester is a must, as it gives us a
practical exposure and helps to understand the work culture of an organization. As we will be
entering the corporate world, we have to prepare ourselves very well and we should know how
organization works.
The undergone project which was held from 19-09-2023 to18-11-2023 is a part of the Summer
Internship Project focused on title “A study on leverages and its effect on performance of the
company at fasteners and allied products Pvt Ltd”. conducted at Fasteners and Allied Products Pvt.
Ltd, under the guidance of my internal guide Prof. Arun Kubasad Goudar (Global Business School,
Hubli)
This study tries to explore the impact of Leverages and effects at Fasteners and Allied Products
Pvt. Ltd. Which is one of the Fasteners manufacturing companies in Hubli, Karnataka. Description
of the company includes history, products, mission, vision, organization structure etc. of the
company.
The project tries to find out and understand the leverages and its effect of the company and project
study is based on five-year balance sheet, profit & loss account, other manuals & annual reports
of the company. The information is collected through discussion with concerned departmental
persons. The discussion in this report is focused on debt performance of the business. Financial
reports are the diagnostic instruments, they indicate whether the current strategies of the business
are satisfactory or whether a decision should be made to do something about the business unity
may reveal that current plan for new strategies. Even though each separate decision seamed at the
time it was made.

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Industry profile

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The global industrial fasteners market size was valued at USD 86.12 billion in 2020 and isexpected
to grow at a Compound Annual Growth Rate (CAGR) of 4.1% from 2021 to 2028. Increasing
production of industrial machinery and components is expected to increase over the forecast
period.
Fasteners have demand across major sectors including automotive, construction, machine
manufacturing, electronics, shipbuilding, and railways. A rise in production of commercial aircraft
owing to an increase in the number of air passengers across the globe has pushed the demand for
specialty-grade fasteners.
The major reason for this growth can be attributed to the increasing number of construction
activities and growing automobile manufacturing in countries like China and India. Europe is one of
the largest markets for industrial fasteners apart from being the second largest industrial fasteners
manufacturing region in the world. However, lack of product differentiation and elasticity of prices
of raw materials such as alloys, stainless steel and copper are hindering the growth of the market.
The industry is strongly tied to the production of automobiles, aircrafts, appliances, agriculture
machinery, commercial construction, and infrastructure. More than billion fasteners are used each
day in the US with over 26 billion by the automotive industry. Increasing sale of automobiles in
India is driving the growth of the auto ancillary market in the country, including automobile sector-
specific fasteners. Growing usage of fasteners for manufacturing automotive parts such as engines,
chassis, molding, suspension system and wheels amongothers, is expected to drive the growth of
the Indian industrial fasteners market during theforecast period.
Introduction
A fastener is a hardware device that mechanically joins or affixes two or more objects together.
Fasteners can also be used to close a container such as bag, box, or an envelope or they may involve
keeping together the sides of an opening of flexible material, attaching a lid to a container etc.
There are also special purpose closing devices e.g., bread clip. Fasteners used in these manners
are often temporary; they may be fastened and unfastened repeatedly.

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There are three major steel fasteners used in industries:

• Stainless steel
• Carbon steel
• Alloy steel
Fastener Standards & Traceability:
• Socket cap, shoulder, set screws, and Hex keys.
• Wood Screws (inch series).
• Slotted head cap screws, square head set screws, and slotted headless set screws.
• Machine screws, tapping screws, and metallic drive screws.
• Quality assurance for fasteners.
Brief History of the Fasteners

▪ 1840 - Rugg and Blames of Marion Connecticut is the pioneer of the North American fastener
industry.
▪ 1969 - North American fasteners had grown about 450 fasteners companies producing two
billion fasteners a year.
▪ 1984 - Only 250 fasteners companies remained due to major invasion of foreign fasteners at
significantly lower prices.
▪ In 2005, it was estimated that the United States fastener industry runs 350 manufacturing
plants and employs 40,000 workers. The industry is strongly tied to the production of
automobiles, aircraft, appliances, agricultural machinery, commercial construction, and
infrastructure. More than 200 billion fasteners are usedper year in the U.S, 26 billion of these
by the automotive industry. The largest distributor of fasteners was North America. When
selecting a fastener for industrial applications, it is important to consider a variety of factors.
The threading, the appliedload on the fastener, the stiffness of the fastener, and the number of
fasteners needed should all be taken into account.

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Fasteners Quality Act-(FQA)
Fasteners Quality Act (FQA), Public Law 101-592, was signed by President Bush on November
16th 1990. The FQA enactment has been amended three times to furtherclarify and define the
requirements of the original act. They protect the public safety by:
1. Requiring that certain fasteners sold in comers conform to the specification to which they
are represented to be manufactured
2. Providing for accreditation of laboratories engaged in fasteners testing
3. Requiring inspection, testing and certification in accordance with standardized methods.
Introducing India’s Fasteners Industry

1. The fasteners industry is complex, global collective of diverse business that together
supply much of the fasteners consumed by almost all the industries of the world.
2. The fasteners industry is one of the faster growing industries in India.
3. It is booming in term of production consumption, export and expected growth. The
industrial fasteners market in India is growing at a CAGR of 6% and is majorly driven
bythe growing automotive industry.
Industrial Fastener Materials

There are three major steel fasteners used in industries: stainless steel, carbon steel, and alloy steel.
The major grade used in stainless steel fasteners: 200 series, 300 series, and 400series. Titanium,
aluminum, and various alloys are also common materials of construction for metal fasteners.
In many cases, special coatings or plating may be applied to metal fasteners to improve their
performance characteristics for example, enhancing corrosion resistance.
When choosing a fastener for a given application, it is important to know the specifics ofthe
application to help select the proper material for the intended use.
Advancements or recent trends in Fasteners Manufacturing: - Fasteners have

undergone a number of drastic changes in the last few decades. Some of the upcoming trends in
fastener manufacturing are:

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Top Fasteners Companies in BSE

COMPANY NAME MARKET
CAPITALIZATION
Sterling Tools 577.47
Simmonds-Marsha 68.43
Lakshmi Precision 6.84

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Company Profile

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FASTENERS AND ALLIED PRODUCTS Pvt. Ltd

Fasteners and Allied Products Pvt. Ltd, a progressive company, has experience in manufacturing
of fasteners and various other precision engineering components. They specialize bolts for a wide
range of applications in the oil, and petrochemical power, and thermal power, heavy and light
industries.
They have qualified team of engineers to assist the design and manufacture of fasteners tomeet
specific requirements. Over the years, their products have established high reputation for quality
and reliability in various fields with leading customers/ consultants. Fasteners and Allied Products
Pvt. Ltd is committed to manufacture quality products. Fasteners and Allied Products Pvt.Ltd,
management system ensures that quality objective is achieved through the efforts of all the
employees.
Fasteners and Allied Products Private Limited (FAPPL), is a leading manufacturer of high tensile
carbon steel, alloy steel, stainless steel and high temperature special alloys fasteners, industrial
valve components, as per various national and international standards and also as per specific
requirements of numerous customers to their specifications and design. They also manufacture
Precision Engineering Sub-Assemblies for various engineering sectors, since 1975.

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The unit is located at Hubli (Karnataka), which is well connected by train, road and air. The
products manufactured by Fasteners and Allied Products Pvt. Ltd caters to the needs of leading oil
refineries, petrochemicals, nuclear power plants, industrial valves, pumps and process equipment’s
manufacturers, automobile and various other sectors.
The organization is well equipped with full-fledged in- house facility for manufacturing, heat
treatment, inspection, testing, calibration of measuring instruments and testing
equipment’s.Fasteners and Allied Products Pvt. Ltd is having most modern infrastructure,
communication facility and latest equipment’s and has dedicated team of executives, engineers
and workmen who have contributed to the organization growth in a profound manner and
consistently ensure quality, customer requirements and satisfaction.
Fasteners and Allied Products Pvt. Ltd was started in the year 1975. After continuous periodical
assessment the unit today has established as a leading special purpose fasteners manufacturer.
During the course of existence, the unit has been able to specialize in manufacture of fasteners for
valve industry and fasteners required by Nuclear Power Corporation. It has established good
business relation with leading manufacturers of various equipment’s.
It is now felt that unit has to modernize in order to say competitive. A scheme has been drawn up
involving testing equipment as a part of quality assurance and total revamping heat treatment
facility.At present unit has electricity section load of 95 HP. As the total power needed for heat
treatment together with existing manufacturing. It will exceed 100 HP. We therefore proposed to
install the heat treatment facility in the building opposite to existing factory N-8 industrial estate,
Gokul Road, Hubli- we proposed to install the equipment there.
Fasteners and Allied Products Pvt. Ltd has no other loan outstanding with financial institution or
banks except working capital loan for Axis Bank Limited; Hubli quotation received for supply of
equipment is also enclosed.FAPPL has accredited ISO 9001 – 2001 Certification for Quality
System Management. FAPPL is approved by Engineers India Limited, New Delhi and Nuclear
Power Corporation of India Limited. – MUMBAI

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Company vision: -
To achieve & sustain market leadership, Fasteners and Allied Products Pvt. Ltd. shall aim for
complete customer satisfaction, by combining its human and technological resources, to provide
world class quality services. In the process shall Fasteners and Allied Products Pvt. Ltd strive to
meet and exceed customer's satisfaction and set industry standards.
Company mission: -
“Our mission is to be a leading, preferred service provider to our customers, and we aim to achieve
this leadership position by building an innovative, enterprising and technology driven organization
which will set the highest standards of service and business ethics.”
Quality Policy
“We in our endeavor for excellence shall understand the requirements of our costumers” “We in
association with our suppliers shall consistently produce and deliver qualityproducts in time
through continual improvements of the quality management system”
Quality Objectives: -
The overall quality objectives of the company:
• To increase overall market share through quality products.
• To educate and motivate all employees to achieve desired quality and improved
productivity levels.
• To make continuous improvement in production and take appropriate corrective and
preventive actions.
• To instill quality consciousness in our suppliers and vendors to ensure supply of desired
quality of products.

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Organisational profile: -
Name of the organization FASTENERS AND ALLIED
PRODUCTSPRIVATE
LIMITED
Type of Firm Private Limited
Office & Manufacturing Plant M-3, Industrial Estate, Gokul Road,

Hubli 580 030(Karnataka) India.
Ph:
2330062/233
0132Fax:
(0836)
2330431
Website: www.fappl.com
E-mail: sales@fappl.com
Year of Establishment 1975
SSI Registration No. 08/09/00830/

PMT/SSI
Date:
25.05.1976
Factory Licence No. MY/DWR/773
NSIC Registration No. NSIC/KAR/GP/RS/KT/F-36/2005

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ECC No. AABCP-1893Q-XM001
Sales Tax Registration No. TIN NO. 29690002591

CST 4035604-5 Date 25.02.1975
Income Tax Pan No. AABCP – 1893Q
Bankers INDIAN OVERSEAS BANK

Gokul
Road,
HUBL
I 580
030
(Karnataka) India.

" A study on leverages and its effects on performance of the company at Fasteners and allied products Pvt Ltd"
Global Business School, Hubli 15

Brief about organization structure

Nature of Business
Fasteners and Allied Products Pvt. Ltd are reputed manufacturer of stainless steel and High Tensile
Fasteners. We have been in the market over two decade and accepted by all Government of India
Undertakings. We manufacture Fasteners as per ASTM, IS, BSW and other standards. We shall also
manufacture Non-Standard and special purpose Fasteners as per customers’ specifications and drawings.
The organization has all the test facilities installed with FAPPL we are approved by and Engineers India
Limited for supply of Fasteners. We are also supplying Fasteners with Lloyds Inspection and other third-
party inspectors of repute.
We have successfully executed orders of various clients like Nuclear Power Corporation of India Limited,
Gas Authority of India Limited, Bharat Heavy Electricals Limited, Indian Oil Corporation Limited, Indian
Petrochemicals Corporation Limited, Bharat Petroleum Corporation Limited, Bharat Heavy Plates &
Vessels Limited, Bharat Pumps& Compressors Limited, BRPL, MRPL, Audco India Groups, KSB Groups,
Fishers Groups and Punj Lloyds Limited., etc.
We are Accredited ISO 9001-2000 Certification for Quality System Management and also, we are registered
with Nuclear Power Corporation of India Limited, for supply of Hardware Fasteners.
Organization’s Strengths
• Committed service levels.
• Attention to customer urgency.
• Good product line.
• Dedicated team to take up challenging work.
• Reliable source of vendors.
• Accessibility to technical information.

Product Details Introduction of Fasteners:

Definition:
Fasteners are connecting device or material that attaches objects together manufactured. In simple terms
fasteners means Devices that are used to join and assemble parts together. Usually manufactured from metal
with various designs. Fasteners play an almost un-parallel job in all industries. Almost all the appliances
which we use are made up of fasteners.
Product profile
The Fasteners and Allied Products Pvt. Ltd Company produces different types of fasteners products:
• Adjusting Bolts
• Roto Cap Assembly
• Threaded Rods and Tie Rods
• U Turn Bolts
• Fully Thread Stud Bolts
• Special Fasteners
• Industrial Valve Spindles (Stems)
• Available Coatings
• Screws
• Stud Bolts
• Double Ended Studs
• Hex & Square Nuts
• Special Fasteners as per customer requirements
• Precision Engineering Sub Assembles for Automobile and other sectors

Adjusting Bolts Roto Cap Assembly (Automobile Components)
Hexagonal Bolts & Screws Hexagonal Nuts
Thread Rod and Tie Rod Fully Threaded Stud Bolts
Industrial Valve Spindles (Stems)

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Directors and Executives: -

PHONE NUMBERS
NAME DESIGNATION MOBILE OFFICE
VEERENDRA
Managing Director 9845250807 2330184
KOUJALAGI
RAJASHRI
Director 9845250807 2330184
KOUJALAGI
V.C. DODDAMANI Executive 9343411225 2330062
Manpower
SI.NO. PARTICULARS TOTAL

NO.
1. MANAGER 2
2. SUPERVISOR 6
3. TECHNICAL 6
4. WORKERS 112
5. DIRECT WORKERS 90
6. OTHER WORKERS 16
TOTAL 232

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Departmental Study
Accounts: FAPPL having seven unique departments with effective

performance they are: -
• Account and administration Department
• Packing & Dispatch Department
• Store Department
• Sales & Planning Department
• Production Department
• Purchase Department
• Quality Assurance Department

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Department:
All transactions related to Receipts & Payments of the whole Organization is done only in the
Account’s dept. It deals with preparation of Balance Sheet, P/L A/C & other necessary A/C’s,
maintaining cash & bank transactions, pay slips, preparation of Payment, Receipt & Journal
Vouchers File, dealing with Loans and other financial matters, dealing with T.D.S, Monthly
Trial Balance, and Framing Annual Report Etc.
Objectives of the A/C’s Department.
a) Maintenance of books of accounts and finalization of Accounts at management level.
b) Preparation of annual budgets for every month & submitting the various analysis
reports.
c) Preparation of Cash flow and Fund flow Statements.
Responsibilities: -
• Finalization and audit of accounts
• Compliance of tax laws
• Plan and arrange funds for short-term and long term
• Implementation and compliance of industrial and labor statutory and

regulatory lawsconcerned to the business.
• Conducting board meetings
• Prepare and submit reports to directors
• To ensure no defaults occur under any laws.
Sales and Planning Department

• “Marketing is a social process by which individuals and groups obtain what they need
and want through creating, offering and freely exchanging products and services of
value with others.
Functions of Sales Department
1. Sales officer is responsible for selling the products.
2. To look after dispatch of the ordered products.

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As we know the industry is producing products which are selling into the market so the
company is to keep one responsible person who handle the marketing of the products named
as marketing manager who follow the instructions of the management.
The sales and planning department includes mainly two sub departments they are: -
• Packing and Dispatch In charge

• Stores In charge
Packing and Dispatch Department
Objectives:
The main objective of the packing is to carry the proper packing before dispatch.
Responsibility:
Sales & planning officer will study the packing slip through with respect to work order. Sales
&planning officer decides the size of the box depending on quantity. Sales & planning officer
will collect the products numbers from quality assurance department against packing slip.
Products will be segregated as per packing slip and sales & planningofficer will ensure that all
products have undergone final inspection before packing. They are properly identified with
respect to purchase order. While checking the packing the following details are taken care.
1. Packing Box Markings.
2. Destination Box Markings.
3. Estimation of Address.
4. Name of the Transporter
5. Identification Numbers (invoice number).
6. Supplier Number.
7. Number of Boxes.

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Stores Department
Introduction: -
Stores Department holds the entire inventory required in the Organization.
Functions: -
• Receipt of materials.
• Inspect of order quantity, quality and any specifications.
• Maintain minimum level of materials.
Objectives: -
• To ensure all materials are stored properly
• To ensure control over the stock
• To verify the stock periodically
• To ensure the materials are based on requisition
Production Department:
Production management refers to the application of management principles to the production
function in a factory. In other words, production management involves application of planning,
organization, directing and controlling the production process. A well-organized production
functions can offer competitive advantage to a firm in the following area.
• Higher quality.
• More inventory turns
• Shorter new productions lead time.
• Greater flexibility
• Shorter manufacturing lead time
• Better customer satisfaction
Purchase Department:
Purchase Department’s heads are divided into two: One for purchase of capital assets and
another is for regular purchase.In this department they purchase the materials, which are
required for production and also for the office work. Its main function is purchasing the
materials. It receives the requisition letter from the store department to know what type of

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materials is required. After receiving this letter, they make enquiry and then place the order.
“Purchasing refers to the act of buying an item by price”. Purchasing means procurement of
goods and services from some outside agencies the object of purchasing is to supply materials,
semi-finished goods etc. to the production department.
Objective:
To evaluate & select Sub-Contractors on the basis of their liability to meet specified
requirement, to maintain records of approved Sub Contractors and to ensure quality
requirement are fulfilled consistently.
Quality Assurance Department:

The main function of the QA department is to check whether the raw materials purchased and
goods manufactured are better quality or not. Here quality means the totality of the features
and characteristics of a products or services. The quality policy of this department is to be
world class leader in designing and manufacturing quality value of products for the process
industry worldwide.
Customers profile
Fasteners and Allied Products Pvt. Ltd Company has major customers. They sell manufactured
goods to both House country as well as they export to foreign country. They classified their
customers in to 4 groups they are as follows:
• Oil Refineries and Petrochemicals
• Power Plants
• OEM's and Projects
• Automobile
Oil Refineries & Petrochemicals

• Bharat Petrochemicals Corporation Ltd.
• Gas Authority of India Ltd.
• Indian Oil Corporation Ltd.
• Indian Petrochemicals Ltd.
Powers Plants
• Nuclear Power Corporation of India Ltd.
• National Thermal Power Corporation Ltd.

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OEM’s & Projects

• AUDCO India Ltd. – Chennai, Kancheepuram & MM. Nagar.
• Asia Brown Boveri Limited (Introl Valves), Nasik.
• BDK Group of Companies, Hubli.
• Bharat Forge Limited, Pune.
• Bharat Heavy Electrical Limited – Ranipet & Trichy.
• Bharat Pumps & Compressor Ltd. – Naini.
• Bharat Heavy Plates & Vessels Ltd. – Vishakpatnam.
• Chemtrol Valves Pvt. Ltd. – Goa.
Other Customers
• Fact – Udyogamandal & Ambalamedu.
• Indo Gulf Fertilizers Ltd – Jagadishpur.
• Gea Energy Systems Limited Chennai.
• Godrej & Boyce Limited – Mumbai.
• Instrumentation Limited – Palghat.
• K S B Pumps & Valves Ltd. Coimbatore,
• Nasik and Pune.
• Kirloskar Ebara Pumps Ltd. Kirloskarwadi.
• Kirloskar Pneumatics Limited, Pune.
Automobile:
• Force Motors Limited (Bajaj Tempo), Pune.
• Bharat Earth Movers Limited.
• Greaves Cotton Limited, Pune.
Overseas Customers List:

• Cam Pacific Pty Ltd (Hoffman Eng) - Australia.
• CCI Valve Tech. A B – Sweden.
• CCI Korea [AM IMI CO] – South Korea
• CCI – USA.

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• CCI Valve Tech GMBH – Austria.

Suppliers of Raw Materials
FAPPL has purchase raw material from both Indian companies as well as they import
from foreign company. The major raw material suppliers of FAPPL are as follows:
Indian company
➢ Rishat steel, Mumbai.
➢ Steel line, Mumbai.
➢ Padmavati Bright Bars, Mumbai.
➢ N.M. Shah & Co., Mumbai.
➢ Vora Industries, Mumbai.
➢ Apollo Engineers, Mumbai.
➢ Bansali metal corporation, Mumbai.
➢ Goutam Steels, Mumbai.
➢ Sunflags Iron & Steels Co. Ltd, Chennai.
Foreign companies
➢ Carpenter Technology Corporation.
➢ Reading P, A (U.S.A).
➢ Maher Ltd. Sheffield (U.K).
➢ Valbruna Gulf Fze, Dubai.

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✓ STRENGTHS:
1. Committed service levels.
2. Attention to customer urgency.
3. Good product line.
4. Capacity to meet OEM’s requirements.
5. Dedicated team to take up challenging work.
6. Reliable source of vendors.
7. Accessibility to technical information’s.
✓ WEAKNESS:
1. Reducing demand.
2. Small Industry.
✓ OPPORTUNITIES:
1. Potential market for spare parts is growing high.
2. Export order received is greater than what they are able to produce, so opportunity to
increase production capacity for which ready market is available
3. International Customers shows more interest to buy FAPPL products.
✓ THREATS:
No threat in the sense, because it has no competitors

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Literature Review

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1.Impact of leverage on profitability of selected companies in Indian cement

industry.
Autor: - REKHA MOCHI
Journal: - BBSSES
Year: - 2018
The primary goal of the study was to determine whether financial leverage had a favourable
association. For the data analysis in the study, correlation analysis was performed. In this study,
financial performance—as measured by ROA, ROE, sales growth, net profit, margin, and
EPS—serves as the dependent variable and financial leverage serves as the independent
variable. Using debt can have either a beneficial or bad effect on financial performance. Debt
equity ratio and earnings per share have a negative connection, indicating that when debt
grows, interest costs rise along with it, lowering earnings per share. The company's net profit
margin demonstrates how any new revenue has an impact on its bottom line. Because most of
the company's income are utilized to pay off the loans, the negative relationship between the
debt equity ratio and net profit margin ratio shows that as debt increases, net profit decreases.
(MOCHI, 2018)
2.A Study on Leverage Analyses and its Impact on Profitability of Select Steel
Companies Traded in BSE.
Autor: - V. KALPANA
Journal: - Indian Journal of Applied Research
Year: - 2014
This study examines the effect of leverage on the earnings per share (EPS) of certain steel
companies listed on the BSE. Leverage is a crucial element that influences the firm's
profitability, which in turn impacts the wealth of the shareholders. According to this study's
findings, there is a bad relationship between DOL, DFL, and DCL and EPS. Companies may
use a greater proportion of fixed costs and debt in their capital structures and business
operations. Only after that, regardless of the many conditions impacting the firms, can they
increase size and sales. (V.KALPANA, 2014)

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3.“Leverage” – An Analysis and Its Impact on Profitability with Reference

to Selected Oil and Gas Companies.
Autor: - Khushbakht Tayyaba
Journal: - International Journal of Business and Management Invention
Year: - 2013
This study aims to investigate and comprehend how leverage affects the oil and gas industry's
profitability. It demonstrates the connection between this sector's EPS and leverage (financial,
operating, and combined). It examines how operating expenditures and fixed financial charges
affect this sector's ability to earn money. Additionally, it demonstrates how well this industry
uses debt financing by demonstrating the connection between the Debt Equity Ratio and
Earnings Per Share (EPS). (Tayyaba, 2013)
4.The impact of liquidity and leverage on profitability: evidence from

selected pharmaceutical companies of India.
Autor: - CA Haresh Kothari
Journal: - An International Peer-Reviewed Open Access Journal of Social
Sciences
The objective of the current study is to examine the effects of financial leverage and liquidity
on financial performance and to explore the relationship between liquidity and profitability.
The study's findings indicate that a company's capital structure is influenced by its liquidity,
which is reflected in its continued capacity to meet financial obligations. The firm's leverage
decreases as its liquidity increases and vice versa. (Kothari)
5.The effect of profitability and leverage on cost of debt with firm size as a
moderating variable.
Autor: - Siska Widia Utami
Journal: - South East Asia Journal of Contemporary Business, Economics and
Law
Year: - 2021
The Cost of Debt is not much impacted by profitability. This can happen because businesses
would rather employ internal cash (their own capital) than loans. The corporation chooses

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internal funding, which forces it to use little or no external capital at all. The Cost of Debt is
significantly influenced by leverage. This is possible because a company's debt service costs
increase in direct proportion to its DER ratio. Companies that borrow money are responsible
for paying both the interest and the loan's principal. (Utami, 2021)
6.The Determinants of Leverage of the Listed-Textile Companies in India.

Autor: - Liaqat Ali
Journal: - European Journal of Business and Management
Year: -2011
According to the study's findings based on fixed effect estimation, all five of the model's
explanatory variables—firm size, growth, non-debt tax shields, profitability, and asset
tangibility—have a substantial and significant impact on a company's level of leverage. The
positive impact of business size and tangibility and the negative impact of firm growth and
profitability on leverage support earlier studies' findings as well as the predictions of capital
structure theories. The findings of this study have provided some new information about the
financing practices of Indian textile companies. (Ali, 2011)
7.Determinants of leverage decision of Indian firms: an empirical study
Autor: - Asha Rani

Journal: - Business Analyst
Year: - 2016
The capital structure choices made by 107 Indian non-financial listed companies are the main
subject of this study. It has been noted that a firm's capital structure is significantly influenced
by its profitability, size, potential for growth, and degree of uniqueness. Nonetheless, it is not
discovered that liquidity or solvency influence leverage choices. Remarkably, judgements
about corporate taxes and collateral capacity—measured by the tangibility of assets—were
likewise found to have no discernible impact on capital structure choices. Additionally, it is
emphasised that a large-sized company will have lower leverage since, if necessary, it can
access the equity market at a much more affordable rate. (Rani, 2016)

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8.The impact of firm leverage on investment decisions: The new approach of

hierarchical method
Autor: - Mo Tran Thi

Journal: - Taylor and fransic online
Year: - 2023
The effect of a firm's leverage on its investing activities is examined in this research. The
research is particularly carried out in the context of the developing Vietnamese market, which
is an underdeveloped market in South East Asia with the presence of inefficient market issues
like agency conflicts and information asymmetry, which are the main causes of the relationship
between corporate leverage and investment. There are noticeable and detrimental repercussions
on investment at all three hierarchical levels of leverage. In particular, under the moderation of
industry leverage, the impact of leverage on investment increases at the first level of data
clustering. (Thi, 2023)
9.Financial leverage, firm growth and financial strength in the listed

companies in Sri Lanka
Autor: - W. P Wijewardana
Journal: - Social and Behavioral Sciences
Year: - 2012
There are noticeable and detrimental repercussions on investment at all three hierarchical levels
of leverage. In particular, under the moderation of industry leverage, the impact of leverage on
investment increases at the first level of data clustering. This study set out to look into the
relationship between FL and growth as well as FS of the listed companies that are part of the
CSE in Sri Lanka. First, there is a positive correlation between a higher rate of profit growth
and the TD/TA FL ratio; however, this relationship does not hold true for other FL ratios or
profit growth. Secondly, it is common for the listed companies with a higher sales growth rate
and FS to have a lower TD/TA FL ratio. (Wijewardana, 2012)

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10.Impact of leverage ratios on indicators of financial performance: evidence

from Bahrain.
Autor: - Abdul Aziz Abdul Rahman
Journal: - Academy of Strategic Management Journal
Year: - 2021
The purpose of the study is to investigate how leverage affects the performance of various
Bahraini industrial firms. As independent variables, we used the financial (DFL), operating
(DOL), and combined leverages (DCL). Three financial ratios—net income on assets (ROA),
return on equity (ROE), and net profit margin (NPM)—are used to assess the financial
performance that is taken into account as a dependent variable. In the companies under
investigation, profit margin ratios, return on equity, and return on assets are the three financial
performance indicators that are not impacted by financial leverage.2. There is no correlation
between operating leverage and any of the financial performance metrics examined in the
research companies, including return on equity, return on assets, and net profit margin ratios.
(Rahman, 2021)

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Research Methodology

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Title of the project: -

A study on leverages and its effects on performance of the company at
Fasteners and allied products Pvt Ltd.
Objective: -
❖ To study the leverages and its impact on the organisation.
❖ Evaluate and measure the company's financial performance using
leverages.
❖ To examine the leverages analysis in Fasteners and Allied Products Pvt
Ltd for the period of 5 years
Research Type: - Descriptive Research
Data Collection: -
Primary Data: -
It includes information through discussion with the concerned person and our external guide.
Secondary Data: -
Secondary Data is collected for the five years, this data is collected from annual report provided
by the company. Balance sheets of 5 Years.
Statistical tools used:

MS-Excel, Graphs, Tables

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Theoretical Framework

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Leverage
A company can raise the fund required for investment either by increasing owner's claims or
the creditor's claim or both. The claims of the owner's increases when the company raises the
fund buy issuing equity shares or ploughs back its earnings. The claims of the creditors increase
when the funds are raised by borrowings. The various means used to raise the funds represent
the financial or the capital structure of the company.
The financing or capital structure decision is of tremendous significance for the management,
since it influences the debt-equity mix of the company, which ultimately affect shareholder's
return and risk. In case the borrowed funds are more as compared to the owner’s funds, it results
in increase in shareholder's earning together with increase in their risk. This is because the cost
of borrowed fund is less than that of shareholder's fund on account of the cost of borrowed fund
being allowable as a deduction for income tax purpose. But at the same time, the borrowed
fund carries a fixed interest, which has to be paid whether the company is earning profit or not.
Thus, the risk of the shareholders increases in case there is high proportion of borrowed funds
in the total capital structure of the company. In a situation where the proportion of the
shareholder's fund is more that the proportion of the borrowed fund, the return as well as the
risk of shareholders will be much less.
MEANING OF LEVERAGES
The dictionary meaning of the term leverage refers to "an increased means of accomplishing
some purpose." For example, leverages help us in lifting heavy objects, which may not be
otherwise possible. However, in the area of finance, the term leverage has special meaning. It
is used to describe the firm's ability to use fixed cost asset or funds to magnify the return to its
owners.
James Horne has defined leverage as "The employment of an asset or funds on which the firm
pays a fixed cost or fixed return". Thus, according to him, leverage is the result of the firm
employing an asset or a source of fund which has a fixed cost or return is the fulcrum of
leverage. If a firm is not required to pay fixed cost or fixed return, there will be no leverage.

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Since fixed cost or return has to be paid or incurred irrespective of the volume of output or
sales, the size of such cost or return has considerable influence over the amounts of profit
available for the shareholders When the volume of sales changes, leverage helps in quantifying
such influence. It may, therefore, be defined as the relative change profit due to change in sales.
A high degree of leverage implies that there will be a large change in profit due to relatively
small change in sales and vice-versa. Thus, higher the leverage, higher is the risk and higher is
the expected return.
TYPES OF LEVERAGES
Leverages are of three types:
1. Operating leverage
2. Financial leverage
3. Composite leverage/Combined leverage
1.Operating Leverage
Operating leverage may be defined as the tendency of the operating profit to vary
disproportionately with sales. It is said to exist when a firm has to pay the fixed cost regardless
of volume of output or sales. The firm is said to have a high degree of operating leverage if it
employs a greater amount of fixed cost and a smaller amount of variable costs. On the other
hand, a firm will have a low operating leverage when it employs a greater amount of variable
costs and smaller amount of fixed cost. On the other hand, a firm will have a low operating
leverage when it employs a greater amount of variable cost and a smaller amount of fixed costs.
Thus, the degree of operating leverage depends upon the amount of fixed element in cost
structure.
Operating leverage in a firm is a function of the following three factors:

1. The amount of fixed cost
2. The contribution margin
3. The volume of sales
Of course, there will be no operating leverage, if there are no fixed operating costs.

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The Operating Leverage can be calculated by following formula:
Formula:
Operating Leverage = 𝐂𝐨𝐧𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧 ÷ 𝐄𝐁𝐈𝐓
Or
𝐃𝐎𝐋 = 𝐏𝐞𝐫𝐜𝐞𝐧𝐭𝐚𝐠𝐞 𝐜𝐡𝐚𝐧𝐠𝐞 𝐢𝐧 𝐩𝐫𝐨𝐟𝐢𝐭 ÷ 𝐏𝐞𝐫𝐜𝐞𝐧𝐭𝐚𝐠𝐞 𝐜𝐡𝐚𝐧𝐠𝐞 𝐢𝐧 𝐬𝐚𝐥𝐞𝐬
Utility: -
Operating leverage indicates the impact of change in sales of operating income. If a firm has
high degree of operating leverage, small changes in sales will have large effect on operating
income. In other words, the operating profit (EBIT) of such a firm will increase at a faster rate
than the increase in sales. Similarly, the operating profit of such a firm will suffer a greater loss
as compared to reduction in its sales.
Generally, the firm does not like to operate under condition of high degree of operating
leverage. This is a very risky situation Can be excessively damaging to the firm's effort to
achieve profitability.
2.Financial Leverage
Financial leverage may be defined as the tendency residual net income to very
disproportionately with operating profit. It indicates the change that takes place in the taxable
income as a change of result in operating income. It signifies the existence of fixed interest
fixed dividend bearing securities in the total capital structure of the company. Thus, the use of
fixed interest/dividend bearing securities such as debt & preference capital along with the
owner's equity in the total capital structure of the company, the fixed interest/dividend bearing
securities are greater as compared to the equity capital, the leverage is said to be larger. In a
reverse case the leverage will be said to be smaller.
Formula:
Financial Leverage = 𝐄𝐁𝐈𝐓 ÷ 𝐄𝐁𝐓

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OR
𝐃𝐅𝐋 = 𝐏𝐞𝐫𝐜𝐞𝐧𝐭𝐚𝐠𝐞 𝐜𝐡𝐚𝐧𝐠𝐞 𝐢𝐧 𝐄𝐏𝐒 ÷ 𝐏𝐞𝐫𝐜𝐞𝐧𝐭𝐚𝐠𝐞 𝐜𝐡𝐚𝐧𝐠𝐞 𝐢𝐧 𝐄𝐁𝐈𝐓
Utility:
Financial leverage helps the financial manager considerably while devising the capital structure
of the company. A high financial leverage means high fixed financial cost and high financial
risk. A Financial manager must plan the capital structure in a way that the firm is in a position
to meet its fixed financial costs. Increase in the fixed financial cost requires necessary increase
in EBIT level. In the event of failure to do so, the company may be technically forced
into liquidation.
3. Composite leverage
As explained in the preceding pages, operating leverage measures percentage changes in

operating profit due to percentage changes in sales. It explains the degree of operating risk.
Financial leverage measures the percentage change in taxable profit (or EPS) on account of
percentage change operating profit (i.e., EBIT). Thus, it explains the degree of financial risk.
Both these leverages are closely concerned with the firm's capacity to meet its fixed costs (both
operating & financial). In case both the leverage is combined, the result obtained will disclosed
the effect of change in sales over change in taxable profit (or EPS).
Composite leverage thus expresses the relationship between revenue on account of sales (i.e.
contribution or sales less variable cost) and the taxable income. It helps in findings out the
resulting percentage change in taxable income on account of percentage change in sales.
Formula:
Composite Leverage = Operating Leverage × Financial Leverage

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Operating
Financial leverage Effect/conclusion
leverage
HIGH HIGH Very risky, high interest outflow
Sales still unsatisfactory in relation to the

HIGH LOW
fixed costs to be absorbed
LOW HIGH Ideal situation for profit maximization
Management over cautious

LOW LOW
Significance of leverage
Operating leverage and financial leverage are the two quantitative tools used by the financial
expert to measure the retums to the owners (viz EPS) and the market price of the equity shares.
The financial leverage is considered to be the superior of these tools, since it focuses the
attention on the market price of the shares which the management always tries to increase by
increasing the Net worth of the Firm. The management for this purpose resorts to trading on
equity because when there is increase in EBIT then there, I corresponding increase in the price
of equity shares. However, a firm cannot go on indefinitely raising the debt content, in the total
capital structure of the company, if a firm goes on employing greater proportion of debt capital,
the marginal cost of debt will also go on increasing because the subsequent lenders will demand
higher rate of interest. The company's inability to offer the subsequent assets as security will
also stand in the way of further employment on debt capital. Moreover, a firm with widely
fluctuating cannot afford to employ a high degree of financial leverage.
A company should try to have balance of the two leverages because they have got tremendous
acceleration deceleration effect on EBIT and EPS. It may be noted that a right combination of
these leverages is a very big challenge for the management. A proper combination of both
operating & financial leverages is a blessing for firm's growth, while an improper combination
may prove to be curse.

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A high degree of operating leverage makes the position of firm very risky. This is because on
the one hand on the one hand it is employing excessively assets for which it has to p pay fixed
cost and at the same time it is using a large amount of debt capital. The fixed cost towards using
assets and fixed interest charges bring a greater risk to the firm. In case the earning falls, the
firm may not be in a position to meet its fixed cost. Moreover, greater fluctuation in earnings
is likely to occur on account of the existence of a high degree of operating leverage. Earnings
to the equity shareholders will also fluctuate widely on account of existence of a high degree
of financial leverage. The existence of a high degree of operating leverage will result in a more
than proportionate change in EPS even on account of small changes in EBIT. Thus, a firm has
high degree of financial leverage and high degree of operating leverage has to face the problems
of inadequate liquidity or insolvency in one or the other year. It does not, however, mean that
a firm should opt for low degree of operating & financial leverage.
Of course, such lower leverages indicate the caution policy of the management. But the firm
will be losing many profit earnings opportunities. A firm should, therefore, make all possible
efforts to combine operating & financial leverage in a way that suits the risk bearing capacity
of the firm.
It may be observed that the firm with the high operating leverage should not have a high
financial leverage. Similarly, a firm having low operating leverage will stand to gain by having
a high financial leverage provided it is enough profitable opportunities for the employment of
borrowed fund. However, low operating leverage is considered to be an ideal situation for the
maximization of profit with minimum of risk.
LEVERAGE RATIO
1. Interest Coverage Ratio:
Creditors and investors use this computation to understand the profitability and risk of a
company. The interest coverage ratio is a financial ratio that measure a company’s ability to
make a interest payments on its debt in a timely manner. Unlike the debt service coverage ratio
this liquidity ratio rally has nothing to do with being able to make principle payments on the
debt itself instead in calculates the firm ability to afford the interest on the debt.

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Formula:
𝐄𝐁𝐈𝐓
𝑰𝑪𝑹 =
𝐈𝐍𝐓𝐄𝐑𝐄𝐒𝐓
2. Return on Equity (ROE) Ratio
Return on equity or return on capital is the ratio of a business during a year to its stockholder’s
equity during that year. It is a measure of profitability of stockholder’s investments. It shows
net income as percentage of shareholders equity.
ROE is indicators of how effective management is using equity financing to fund operations
and grow the company. Return on equity is an important measure of the profitability of a
company. Higher value of generally favorable meaning that the company is efficient in
generating income on new investment.
Formula:
𝐏𝐀𝐓
𝑹𝑶𝑬 =
𝐒𝐇𝐀𝐑𝐄 𝐂𝐀𝐏𝐈𝐓𝐀𝐋
3. Debt-Equity Ratio:
Debt to equity ratio is long term solvency ratio that indicates the soundness of long-term
financial policies of a company. Its shows the relation between the portion of assets financed
by creditors and the portion of assets financed by stock holders. As the debt-to-equity ratio
express the relationship between external equity (liabilities) and internal equity (stock holders’
equity) it is also known as external-internal equity ratio.
Formula:
𝐋𝐎𝐍𝐆 𝐓𝐄𝐑𝐌 𝐃𝐄𝐁𝐓
𝑫𝑬𝑩𝑻 =
4. Shareholder’s equity ratio

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Shareholders equity is the difference between total assets and total liabilities. It is also the share
capital retained in the company in addition to the retained earnings minus the treasury shares.
Shareholders equity is the amount that shows how the company has been financed with the
help of common shares and preferred shares. Shareholders equity is also called share capital,
stockholder’s Equity or Net worth.
There are two important sources from which you can get shareholder’s equity. The first source
is the money originally invested in the company and all the other investments that are made in
the company has retained over a period of time though its operations.
Formula:
𝐒𝐇𝐀𝐑𝐄𝐇𝐎𝐋𝐃𝐄𝐑𝐒 𝐄𝐐𝐔𝐈𝐓𝐘
𝐒𝐇𝐀𝐑𝐄𝐇𝐎𝐋𝐃𝐄𝐑𝐒 𝐄𝐐𝐔𝐈𝐓𝐘 𝐑𝐀𝐓𝐈𝐎 =
𝐓𝐎𝐓𝐀𝐋 𝐀𝐒𝐒𝐄𝐓𝐒
5. Return on total assets ratio
The return of on total asset (ROTA) is a ratio the measure a company’s earnings before interest
and taxes (EBIT) again its total net assets. The ratio is considered to be an indicator of how
effectively a company is using its assets to generate earnings before contractual obligation must
be paid. The return on assets ratio is a profitability ratio that measures the net income produced
by total assets. In other words, the return on assets ratio or ROA measure how efficiently a
company can manage its assets to produce a profit during a period.
Formula:
ROA = NET PROFIT ÷ TOTAL ASSETS×100
1. Liquidity Ratios
The liquidity ratios measure the liquidity of the firm and its ability to meet its maturing
short-term obligations. Liquidity is defined as the ability to realize value in money, the
most liquid of assets. It refers to the ability to pay in cash, the obligations that are due.
Types of liquidity ratios are,
• Current Ratio
• Quick Ratio

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➢ Current Ratio
This ratio measures the solvency of the company in the short-term. Current assets are those
assets which can be converted into cash within a year. Current liabilities and provisions are
those liabilities that are payable within a year. A current ratio of 2:1 indicates highly solvent
position.
Formula
𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐑𝐚𝐭𝐢𝐨 = 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐀𝐬𝐬𝐞𝐭𝐬 ÷ 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬
➢ Quick Ratio
Quick ratio is used as a measure of the company’s ability to meet its current obligations. Since
bank overdraft is secured by the inventories, the other current assets must be sufficient to meet
other current liabilities. A quick ratio of 1:1 indicates highly solvent position. This ratio serves
as a supplement to the current ratio in analysing liquidity.
Formula
𝐐𝐮𝐢𝐜𝐤 𝐑𝐚𝐭𝐢𝐨 = 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐀𝐬𝐬𝐞𝐭𝐬 − 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 ÷ 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲

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Data Analysis and Interpretation

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Comparative Income Statement

Particulars 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Sales 23,41,96,885 36,59,67,388 19,76,36,968 29,87,36,692 36,12,66,676
Variable 16,94,20,585 7,48,72,159 4,04,33,948 6,11,17,635 6,97,44,932

Cost
Contribution 6,47,76,300 29,10,95,229 15,72,03,020 23,76,19,057 29,15,21,744
Fixed Cost 4,80,87,866 4,98,18,278 4,98,18,278 4,98,18,278 4,98,18,278
EBIT 1,66,88,434 24,12,76,951 10,73,84,742 18,78,00,779 24,17,03,466
Interest 1,64,27,187 2,37,17,720 1,91,30,952 1,64,90,968 1,79,42,999
EBT 2,61,247 21,75,59,231 8,82,53,790 17,13,09,811 22,37,60,467
Tax 2,10,000 2,95,000 1,90,000 2,60,000 3,80,000
EAT 51,247 21,72,64,231 8,80,63,790 17,10,49,811 22,33,80,467
1.Degree of Operating Leverage

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Formula:
Degree of Operating Leverage = 𝐂𝐨𝐧𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧 ÷ 𝐄𝐁𝐈𝐓
Degree of Operating Leverage

Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Contribution 6,47,76,300 29,10,95,229 15,72,03,020 23,76,19,057 29,15,21,744
EBIT 1,66,88,434 24,12,76,951 10,73,84,742 18,78,00,779 24,17,03,466
DOL 3.8815 1.2065 1.4639 1.2653 1.2061
DOL
4.5000
3.8815
4.0000
3.5000
Operating Leverage
3.0000
2.5000
2.0000
1.4639
1.5000 1.2065 1.2653 1.2061
1.0000
0.5000
0.0000
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Year
Interpretation:
The above analysis shows the Degree of combined leverage of Fastners and allied Product Pvt
Ltd. In the year 2018-2019 DOLis greater than 1 indicates that the company has high
operating leverage.In the year 2019-2020 and 2021-2022 DOL decreased slightly. DOL
suggests fluctuations in the company's sensitivity to changes in sales over the years. A higher
DOL indicates higher operating leverage and greater sensitivity to changes in sales, while a
lower DOL suggests lower operating leverage and reduced sensitivity to sales changes. The
company seems to have experienced variations in its operating leverage during the given years.
2.Degree of Financial Leverage

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Formula:
Degree of Financial Leverage = 𝐄𝐁𝐈𝐓 ÷ 𝐄𝐁𝐓
Degree of Financial Leverage

Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
EBI
1,66,88,434 24,12,76,951 10,73,84,742 18,78,00,779 24,17,03,466
T
EBT 2,61,247 21,75,59,231 8,82,53,790 17,13,09,811 22,37,60,467
DFL 63.8799 1.1090 1.2168 1.0963 1.0802
DFL
70.0000 63.8799
60.0000
Financial Leverage
50.0000
40.0000
30.0000
20.0000
10.0000
1.1090 1.2168 1.0963 1.0802
0.0000
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Year
INTERPRETATION: The above analysis shows the Degree of Financial leverage of Fastners
and allied Product Pvt Ltd. In the year 2018-2019 DFLis greater than 1 indicates that the
company has high operating leverage. In the year 2019-2020 and 2021-2022 DOL decreased
slightly. DFL suggests fluctuations in the company's sensitivity to changes in EBIT over the
years. A higher DFL indicates higher financial leverage and greater sensitivity to changes in
EBIT, while a lower DFL suggests lower financial leverage and reduced sensitivity to EBIT
changes. The company seems to have experienced variations in its financial leverage during
the given years.
3.Degree of Composite leverage

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Formula:
Degree of Composite Leverage = Operating Leverage × Financial Leverage
Composite Leverage
Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Operating Leverage 3.8815 1.2065 1.4639 1.2653 1.2061
Financial Leverage 63.8799 1.1090 1.2168 1.0963 1.0802
DCL 247.9504 1.3380 1.7813 1.3871 1.3028
DCL
300.0000
247.9504
250.0000
200.0000
150.0000
100.0000
50.0000
1.3380 1.7813 1.3871 1.3028
0.0000
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Interpretation: - The above analysis shows the Degree of combined leverage of Fastners
and allied Product Pvt Ltd.In the year 2018-2019 The company has high operating and financial
leverage, resulting in a very high degree of combined leverage. This suggests that the
company's earnings are highly sensitive to changes in both sales and financing costs.
Composite Leverage suggests changes in the company's risk profile over the years, with
variations in the sensitivity of earnings to changes in sales and financing costs. It's essential for
investors and analysts to consider these leverage metrics when evaluating the company's
financial health and risk exposure.

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LEVERAGE RATIO
1. Interest Coverage Ratio:

𝐄𝐁𝐈𝐓
𝑰𝑪𝑹 =
𝐈𝐍𝐓𝐄𝐑𝐄𝐒𝐓
Interest Coverage Ratio

Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
1,66,88,434 24,12,76,951 10,73,84,742 18,78,00,779
EBIT 24,17,03,466
1,64,27,187 2,37,17,720 1,91,30,952 1,64,90,968
Interest 1,79,42,999
Ratio 1.0159 10.1729 5.6131 11.3881 13.4706

16.0000
13.4706
14.0000
12.0000 11.3881
10.1729
10.0000
8.0000
5.6131
6.0000
4.0000
2.0000 1.0159
0.0000
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Year
Interpretation: -
The above analysis shows the Interest Coverage Ratio of Fastners and allied Product Pvt Ltd.In
the year 2018-2019. The company's EBIT is just slightly higher than its interest expense,
indicating a relatively tight ability to cover interest payments. It is advisable for the company
to have a higher buffer to comfortably meet its interest obligations. In the year 2022-2023. The
company's earnings are more than thirteen times its interest expense, indicating a robust and
healthy financial position. Interest Coverage Ratio over the years shows an improvement in the
company's ability to cover its interest obligations. This is a positive sign, as it indicates a
stronger financial position and reduced financial risk associated with servicing debt.

products Pvt Ltd"
2. Return on Equity (ROE) Ratio
Formula:
𝐏𝐀𝐓
𝑹𝑶𝑬 =
Return On Equity
Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
6,42,197
PAT 5,25,098 11,52,415 11,33,645 15,61,479
Share
3,50,00,000
Capital 3,50,00,000 3,50,00,000 3,50,00,000 3,50,00,000
ROE 0.0150 0.0329 0.0183 0.0324 0.0446
ROE
0.0500
0.0446
0.0450
0.0400
0.0329
Return On Equity
0.0350 0.0324
0.0300
0.0250
0.0183
0.0200 0.0150
0.0150
0.0100
0.0050
0.0000
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Year
Interpretation:
The above analysis shows the Return on equity of Fastners and allied Product Pvt Ltd. The
company generated a return of 1.50% on its equity during the fiscal year 2018-2019. This is a
relatively low return and may indicate that the company needs to improve its profitability or
find ways to use its equity more efficiently. In the year 2022-2023 return on equity has further
increased to 4.46%, suggesting improved profitability and more efficient utilization of
shareholder equity. This is a positive trend for shareholders.

products Pvt Ltd"
3. Debt-Equity Ratio:
Formula: 𝐋𝐎𝐍𝐆 𝐓𝐄𝐑𝐌 𝐃𝐄𝐁𝐓

𝑫𝑬𝑩𝑻 =
Debt to Equity Ratio

Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Debt Capital 3,57,61,712 2,54,69,171 2,32,02,000 2,42,05,832 1,98,85,918

Shareholders
fund 5,01,02,705 5,12,55,120 5,18,97,317 5,30,30,962 5,45,92,441
Debt to Equity
Ratio 0.71377 0.49691 0.44708 0.45645 0.36426

0.80000
0.71377
0.70000
0.60000
0.49691
0.50000 0.44708 0.45645
0.40000 0.36426
0.30000
0.20000
0.10000
0.00000
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Year
Interpretation: The above analysis shows the Debt to equity ratio of Fastners and allied
Product Pvt Ltd.In the year 2018-2019 The company has a Debt-to-Equity Ratio of 0.71377,
indicating that for every rupee of equity, there is approximately 71.4 paise of debt. This
suggests a moderate level of financial leverage. In the year 2022-2023 he Debt to Equity Ratio
has decreased further to 0.36426, indicating a lower level of financial leverage. The company
has reduced its reliance on debt compared to equity. Debt to Equity Ratio shows a reduction in
financial leverage over the years, suggesting a more conservative capital structure.

products Pvt Ltd"
4. Shareholder’s equity ratio

Formula:
𝐒𝐇𝐀𝐑𝐄𝐇𝐎𝐋𝐃𝐄𝐑𝐒 𝐄𝐐𝐔𝐈𝐓𝐘
𝑺𝑯𝑨𝑹𝑬𝑯𝑶𝑳𝑫𝑬𝑹𝑺 𝑬𝑸𝑼𝑰𝑻𝒀 𝑹𝑨𝑻𝑰𝑶 =
𝐓𝐎𝐓𝐀𝐋 𝐀𝐒𝐒𝐄𝐓𝐒
Share Holders Equity Ratio

Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Share Holders
Fund 5,01,02,705 5,12,55,120 5,18,97,317 5,30,30,962 5,45,92,441
Total Assets
(Tangible
assets) 6,56,64,013 6,04,30,711 5,83,65,292 5,26,51,190 5,06,11,310
Share Holders
Equity Ratio 0.7630 0.8482 0.8892 1.0072 1.0787
Share Holders Equity Ratio

1.2000 1.0787
1.0072
Share holders equity ratio
1.0000 0.8892
0.8482
0.7630
0.8000
0.6000
0.4000
0.2000
0.0000
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Year
Interpretation: -
The above analysis shows the Shareholders equity ratio of Fastners and allied Product Pvt
Ltd.In the year 2018-2019 For every rupee of assets, approximately 76.3 paise are financed by
shareholders' equity. This indicates a relatively healthy equity position in the company's capital
structure. In the year 2022-2023 ratio has further increased to 1.0787, indicating a robust
financial position where shareholders' equity exceeds total assets. This suggests a strong capital
structure. Shareholders' Equity Ratio trend shows an increasing reliance on shareholders' equity
to finance the company's assets.

products Pvt Ltd"
5. Return on total assets ratio
Formula:
ROA = NET PROFIT ÷ TOTAL ASSETS×100
Return On Total Assets

Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
EAT 51,247 21,72,64,231 8,80,63,790 17,10,49,811 22,33,80,467

Total
Asstes 32,69,99,579 30,84,43,363 26,35,11,004 30,98,74,595 27,79,96,145
Return On
Total
Assets 0.0002 0.7044 0.3342 0.5520 0.8035
Return On Total Assets

0.9000
0.8035
0.8000
0.7044
Return on total assets
0.7000
0.6000 0.5520
0.5000
0.4000 0.3342
0.3000
0.2000
0.1000
0.0002
0.0000
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Year
Interpretation: -
The above analysis shows the Return on total Assets of Fastners and allied Product Pvt Ltd. A
higher ROTA indicates better efficiency in utilizing assets to generate profits. A positive ROTA
suggests that the company is making profits from its assets. Fluctuations in ROTA from year
to year should be analysed in conjunction with other financial metrics to get a comprehensive
understanding of the company's financial performance. Return on Total Assets has shown
improvement over the years, indicating increasing efficiency in generating profits from its total
asset base.

products Pvt Ltd"
6.Liquidity Ratios
➢ Current Ratio
Formula
𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐑𝐚𝐭𝐢𝐨 = 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐀𝐬𝐬𝐞𝐭𝐬 ÷ 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬
Current Ratio
Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Current
Assets 26,11,30,566 24,78,07,652 20,49,40,712 25,70,18,405 22,71,79,835
Current
Liabilities 24,11,35,162 23,17,19,072 18,84,11,687 23,26,37,801 20,35,17,786
Current
Ratio 1.0829 1.0694 1.0877 1.1048 1.1163
Current Ratio
1.1200 1.1163
1.1100 1.1048
1.1000
Current Ratio
1.0877
1.0900 1.0829
1.0800
1.0694
1.0700
1.0600
1.0500
1.0400
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Year
Interpretation:
The current ratio for the FY 2018-19, 2019-20, 2020-21, 2021-22 & 2022-23 are 1.0829,
1.0694, 1.0877, 1.1048 & 1.1163 respectively. The company's current ratio of 1.0829 is below
the ideal standard of 2:1. This suggests that, at that point in time, the company may have had a
relatively lower ability to cover its short-term liabilities with its current assets. Based on the
standard current ratio of 2:1, the company has been consistently below the ideal benchmark
throughout the given years

products Pvt Ltd"
➢ Quick Ratio
.
Formula
𝐐𝐮𝐢𝐜𝐤 𝐑𝐚𝐭𝐢𝐨 = 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐀𝐬𝐬𝐞𝐭𝐬 − 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 ÷ 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲
Quick Ratio
Year 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Current
Assets 26,11,30,566 24,78,07,652 20,49,40,712 25,70,18,405 22,71,79,835
Inventory 13,67,25,932 8,59,99,356 10,49,59,144 10,43,56,386 10,76,50,972

Current
Liabilities 24,11,35,162 23,17,19,072 18,84,11,687 23,26,37,801 20,35,17,786
Quick
Ratio 0.52 0.70 0.53 0.66 0.59
Quick Ratio
0.80
0.70
0.70 0.66
0.59
0.60 0.53
0.52
Quick Ratio
0.50
0.40
0.30
0.20
0.10
0.00
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Year
Interpretation:
The above analysis shows the Quick Ratio of Fastners and allied Product Pvt Ltd.In the year
2018-2019 A quick ratio of 0.52 indicates that the company may have some difficulty covering
its short-term obligations with its most liquid assets, excluding inventory. In the year2022-2023
The quick ratio decreased slightly, indicating that the company's ability to cover short-term
liabilities with liquid assets, excluding inventory, has decreased. the company's quick ratio
fluctuates over the years, and while it has shown improvement at times, it consistently remains

products Pvt Ltd"
below 1, suggesting a reliance on inventory to meet short-term obligations. It's important to

consider industry benchmarks and other financial metrics for a comprehensive analysis of the
company's liquidity position.

products Pvt Ltd"
Findings
• The company's operating leverage has changed over the years, with a high DOL in 2018-
2019 and a subsequent decrease in the other years. These variations in operating leverage
indicate potential shifts in the company's risk exposure and sensitivity to changes in its
sales performance.
• The fluctuations in DFL over the years it indicates that Fasteners and Allied Products Pvt
Ltd has undergone variations in its sensitivity to changes in EBIT. The company's financial
leverage seems to have experienced adjustments during the specified time frame.
• The analysis of Fasteners and Allied Products Pvt Ltd for the year 2018-2019 reveals that
the company exhibited high operating and financial leverage, leading to a very high degree
of combined leverage. This implies that the company's earnings are significantly sensitive
to changes in both sales and financing costs. There have been variations in the company's
risk profile, as reflected in changes in the degree of combined leverage.
• The analysis of Fasteners and Allied Products Pvt Ltd. Interest Coverage Ratio (ICR) in
the year 2018-2019 reveals a relatively tight ability to cover interest payments, as the
company's Earnings Before Interest and Taxes (EBIT) is just slightly higher than its interest
expense.
• Fasteners and Allied Products Pvt Ltd has experienced a positive shift in its Return on
Equity, with an increase from 1.50% in 2018-2019 to 4.46% in 2022-2023. This
improvement reflects enhanced profitability and more efficient utilization of shareholder
equity, signaling positive outcomes for shareholders and indicating positive trends in the
company's financial performance.
• The company has experienced a notable decrease in its Debt-to-Equity Ratio over the years,
from 0.71377 in 2018-2019 to 0.36426 in 2022-2023. This reduction indicates a shift
towards a more conservative capital structure, reflecting a lower reliance on debt for
financing.
• Fasteners and Allied Products Pvt Ltd has experienced a positive trend in its Shareholders'
Equity Ratio over the specified period. In the year 2018-2019, the ratio was 0.763,
indicating that for every rupee of assets, approximately 76.3 paise were financed by
shareholders' equity. This already suggests a healthy equity position. This may be viewed
positively by investors and creditors, as it signifies a strong capital structure.
• Fasteners and Allied Products Pvt Ltd has experienced an improvement in Return on Total

products Pvt Ltd"
Assets, indicating increased efficiency in generating profits from its total assets.
• The ideal current ratio is 2:1. The Current Ratio of Fasteners and Allied Products for 5 years
is found to be not satisfactory because the company has been consistently below the ideal
benchmark throughout the given years.
• In the year 2018-2019, the quick ratio was 0.52, that the company may face challenges in covering
short-term obligations without relying on inventory. The statement notes a slight decrease in the
quick ratio in the year 2022-2023, further indicating a potential reduction in the company's ability
to cover short-term liabilities with liquid assets excluding inventory.

products Pvt Ltd"
Suggestions
• Company must work on balance of debt to equity because we can see that continuous
fluctuation in debt equity ratio. It is not good for organization so management need to
maintain constant debt to equity ratio.
• Evaluate the impact of operating leverage on overall business risk and explore strategies to
optimize the balance between risk and profitability.
• Company needs to work on maintaining its quick assets and quick liability because
company is not in position to meet its quick obligations.
• Company must revise its existing “cost control policy” so as to maximize operating profits
and there by increase its market value.
• Periodically assess working capital needs to maintain liquidity and meet short-term
obligations comfortably.

products Pvt Ltd"
Conclusion
During the study period of 5 years project work following conclusion are made to the best
knowledge and satisfaction:
• Operating leverage is quite acceptable that is company is having profits of meets its
fixed operating efficiency expenses.
• Even company is having enough capability of meeting its internal expenses.
• Debt fund is less than internal equity fund, it might be affected in long run.
Thus, company is operating efficiency and effectively as regards growth, stability and
performance.
The management has also maintained a good relation with its employees and all the employees
are quite satisfied with the management. Thus, there is a sound industrial relationship
maintained between the employee and employer. The organisation has also maintained
favourable relationship with client and suppliers.
According to me Fasteners and Allied Product Private Ltd, Hubli. The finance Department is
carrying out its responsibilities efficiently. All the major departments are co-operating and
synchronizing their efforts for the progress of company.

products Pvt Ltd"
Bibliography
Ali, L. (2011). The Determinants of leverage of the Listed -Textile Companies in India.
European Journal of Business and Management.
Kothari, C. H. (n.d.). The impact of liquidity and keverage on profitability : evidence from
selected pharamaceutical compnies of India. An International Peer-Reviewed open
access journal of social Science.
MOCHI, R. (2018). Impact of leverage on profitability of selected companies in Indian
cement industry. BBSSES.
Rahman, A. A. (2021). IMPACT OF LEVERAGE RATIOS ON INDICATORS OF .
Academy of Strategic Management Journal.
Rani, A. (2016). DETERMINANTS OF LEVERAGE DECISION OF INDIAN FIRMS:.
Business Analyst.
Tayyaba, K. (2013). Leverage - An Analsis and its Impact on profitability withReferance to
selected oil and gas companies. International Journal of Business and Managemnt
Invention.
Thi, M. T. (2023). The impact of firm leverage on investment. Taylor and fransic online.
Utami, S. W. (2021). The effect of profitablity and leverage on cost of debt with firm size as a
moderating variable. South East Asia Journal of Contemporary Business,Economies
and Law.
V.KALPANA. (2014). A study on leverage analyses and its impact on profitability of selected
steel companies traded in BSE. Indian Journal of Applied Research .
Wijewardana, W. P. (2012). Financial leverage, firm growth and financial strength in . Social
and Behavioral Sciences.

products Pvt Ltd"
Annexure

products Pvt Ltd"

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products Pvt Ltd"

products Pvt Ltd"

products Pvt Ltd"

products Pvt Ltd"

products Pvt Ltd"

products Pvt Ltd"

products Pvt Ltd"

products Pvt Ltd"

As on date:19-09-2023
Weekly report –MCP 2023 Report No:1
To
The Director,
Global Business School, Hubli
Through Internal Guide: Prof. Arun Kubasad Goudar
Project Title: " A study on leverages and its effects on performance of the company at
Fasteners and allied products Pvt Ltd"
Student Name: Deepika Dinesh Gowdar USN: P02CU21M0008

Email ID: deepikagowdar2000@gmail.com Student Contact No: 9481740373
FROM 19-09-2023 TO 25-09-2023

DATE DATE
DATE DESCRIPTION OF ACTION
Day1 19-09-2023 Visited the firm and had an interaction with the Manager and met
the external Guide.
Day2 20-09-2023 Took a look over the organization.
Day3 21-09-2023 Got some information about the firm from the external guide.
Day4 22-09-2023 Took information about the heads of the organization.
Day5 23-09-2023 Had a visit to the manufacturing unit.
Day6 24-09-2023 Looked over the different products that are manufactured
Day7 25-09-2023 Collected the information regarding the fasters industry.
Comments of Internal MCP guide:
Deepika Dinesh Gowdar Prof. Arun Kubasad Goudar

Internal Guide(Signature)
Student Name with Signature
As on date:26-09-2023
To
The Director,

FROM 26-09-2023 TO 2-10-2023

DATE DATE
Day1 26-09-2023 Had an glance on literature review
Day2 27-09-2023 Went through previous reports
Day3 28-09-2023 Collected the information regarding the industry
Day4 29-09-2023 Updated the industry information in word document
Day5 30-09-2023 Collected a set of literature review
Day6 1-10-2023 Working on literature review
Day7 2-10-2023 Deciding the appropriate title
Student Name with Signature Internal Guide (Signature)

As on date:03-10-2023
To
The Director,

FROM 03-10-2023 TO 09-10-2023

DATE DATE
Day1 03-10-2023 Finding the information related to the objective
Day2 04-10-2023 Working on the articles which were found related to objective
Day3 05-10-2023 Finalizing the objective
Day4 06-10-2023 Working on literature review
Day5 07-10-2023 Preparing the outcome of literature review
Day6 08-10-2023 Updated information about the title in report
Day7 09-10-2023 Went through some research papers .

Internal Guide (Signature)
As on date:10-10-2023
To
The Director,

FROM 10-10-2023 TO 16-10-2023

DATE DATE
Day1 10-10-2023 Started Working on Literature Review
Day2 11-10-2023 Started Working on Research Methodology
Day3 12-10-2023 Started preparing for MCP Mid Review
Day4 13-10-2023 Preparing MCP mid review PPT

Day5 14-10-2023 Mid Review
Day6 15-10-2023 Interact with external guide
Day7 16-10-2023 Interact with internal guide

Internal Guide (Signature)
As on date: 17-10-2023
To
The Director,

FROM 17-10-2023 TO 23-10-2023

DATE DATE
Day1 17-10-2023 Started with research methodology.
Day2 18-10-2023 Interaction with company production department.
Day3 19-10-2023 Started of theoretical Framework.
Day4 20-10-2023 Calculation of Operating Leverages.
Day5 21-10-2023 Interaction with internal guide about calculation.
Day6 22-10-2023 Calculation of Financial Leverage.
Day7 23-10-2023 Preparing Report.

As on date: 24-10-2023
To
The Director,

FROM 24-10-2023 TO 30-10-2023

DATE DATE
Day1 24-10-2023 Calculation of combined leverage.
Day2 25-10-2023 Calculation of Interest coverage ratio.
Day3 26-10-2023 Discussion with external guide.
Day4 27-10-2023 Calculation of Return on equity ratio.
Day5 28-10-2023 Calculation of debt-to-equity ratio.
Day6 29-10-2023 Discussion with internal guide.
Day7 30-10-2023 Report work.

As on date: 31-11-2023
To
The Director,

FROM 31-10-2023 TO 06-11-2023

DATE DATE
Day1 31-10-2023 Report Work.
Day2 01-11-2023 Calculation of shareholders equity ratio.
Day3 02-11-2023 Calculation of Return on asset ratio.
Day4 03-11-2023 Calculation of liquid ratio.
Day5 04-11-2023 Report Work.
Day6 05-11-2023 Discussion with Internal Guide.
Day7 06-11-2023 Discussion with External Guide.

As on date: 7-11-2023
To
The Director,

FROM 7-11-2023 TO 13-11-2023

DATE DATE
Day1 7-11-2023 Putting Graph for calculation.
Day2 8-11-2023 Interpretation for all graphs.
Day3 9-11-2023 Report work.
Day4 10-11-2023 Findings.
Day5 11-11-2023 Suggestions.
Day6 12-11-2023 Conclusion.
Day7 13-11-2023 Meeting with Internal guide for final evaluation

As on date: 14-11-2023
To
The Director,

FROM 14-11-2023 TO 18-11-2023

DATE DATE
Day1 14-11-2023 Correction of report with the help of Internal and Extremal guide
Day2 15-11-2023 Correction of report with the help of Internal and Extremal guide
Day3 16-11-2023 Certification,
Day4 17-11-2023 Conclusion and approval
Day5 18-11-2023 Submission of Final report


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“A STUDY ON LEVERAGES AND ITS EFFECT ON

PERFORMANCE OF THE COMPANY AT

Deepika Dinesh Gowdar

Under the guidance of

Prof.Arun Kubsad Goudar Ms. Vani P Sonnad

GLOBAL BUSINESS SCHOOL

GLOBAL BUSINESS SCHOOL, HUBLI

This is to certify that the Major Concurrent Project-2023 entitled “A study on

Place: Hubli Prof. Arun Kubsad Goudar

Dr. Prasad Roodagi

I, Deepika Dinesh Gowdar (P02CU21M0008) hereby declare that the Project

titled “A study on leverages and its effect on performance of the company at

Fasteners and allied products Pvt Ltd” submitted by me in partial fulfillment

of the requirement for the award of the degree of “Master of Business

Administration” by Karnatak University, Dharwad; this is not submitted

elsewhere for the award of any other degree or diploma.

Date: 18-11-2023 Deepika Dinesh Gowdar

Research Methodology ..........................................................................................34

Theoretical Framework .........................................................................................36

Data Analysis and Interpretation .........................................................................46

Global Business School,Hubli 1

Global Business School,Hubli 2

Global Business School,Hubli 3

Global Business School,Hubli 4

Global Business School,Hubli 5

There are three major steel fasteners used in industries:

Brief History of the Fasteners

Global Business School,Hubli 6

Fasteners Quality Act-(FQA)

Introducing India’s Fasteners Industry

Industrial Fastener Materials

Advancements or recent trends in Fasteners Manufacturing: - Fasteners have

Global Business School,Hubli 7

Top Fasteners Companies in BSE

Lakshmi Precision 6.84

Global Business School,Hubli 8

Global Business School,Hubli 9

FASTENERS AND ALLIED PRODUCTS Pvt. Ltd

Global Business School,Hubli 10

Global Business School,Hubli 11

• To increase overall market share through quality products.

Global Business School,Hubli 12

Office & Manufacturing Plant M-3, Industrial Estate, Gokul Road,

SSI Registration No. 08/09/00830/

NSIC Registration No. NSIC/KAR/GP/RS/KT/F-36/2005

Global Business School,Hubli 13

ECC No. AABCP-1893Q-XM001

Sales Tax Registration No. TIN NO. 29690002591

Income Tax Pan No. AABCP – 1893Q

Bankers INDIAN OVERSEAS BANK

Global Business School,Hubli 14

Global Business School, Hubli 15

Brief about organization structure

• Attention to customer urgency.

• Good product line.

• Dedicated team to take up challenging work.

• Reliable source of vendors.

• Accessibility to technical information.

Global Business School, Hubli 16

Product Details Introduction of Fasteners: