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    Capital Structure of DLF: BY Deepika Sahoo Under The Guidance of Himansu Bhusan Gochhayat Presented

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    This document discusses the capital structure of DLF Limited, a major real estate developer in India. It defines capital structure and explains why it is important for companies to plan an optimal structure. It then outlines several theories of capital structure, including the Net Income Theory, Net Operating Income Theory, Traditional Theory, and Modigliani-Miller Theory. It provides details on DLF's business operations and profiles its capital structure over several years, showing that it relies heavily on debt financing through secured and unsecured loans while maintaining a relatively small amount of equity capital.

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    Capital Structure of DLF: BY Deepika Sahoo Under The Guidance of Himansu Bhusan Gochhayat Presented

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    poojasahooooo
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    This document discusses the capital structure of DLF Limited, a major real estate developer in India. It defines capital structure and explains why it is important for companies to plan an optimal structure. It then outlines several theories of capital structure, including the Net Income Theory, Net Operating Income Theory, Traditional Theory, and Modigliani-Miller Theory. It provides details on DLF's business operations and profiles its capital structure over several years, showing that it relies heavily on debt financing through secured and unsecured loans while maintaining a relatively small amount of equity capital.

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    This document discusses the capital structure of DLF Limited, a major real estate developer in India. It defines capital structure and explains why it is important for companies to plan an optimal structure. It then outlines several theories of capital structure, including the Net Income Theory, Net Operating Income Theory, Traditional Theory, and Modigliani-Miller Theory. It provides details on DLF's business operations and profiles its capital structure over several years, showing that it relies heavily on debt financing through secured and unsecured loans while maintaining a relatively small amount of equity capital.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    200 views17 pages

    Capital Structure of DLF: BY Deepika Sahoo Under The Guidance of Himansu Bhusan Gochhayat Presented

    Uploaded by

    poojasahooooo
    This document discusses the capital structure of DLF Limited, a major real estate developer in India. It defines capital structure and explains why it is important for companies to plan an optimal structure. It then outlines several theories of capital structure, including the Net Income Theory, Net Operating Income Theory, Traditional Theory, and Modigliani-Miller Theory. It provides details on DLF's business operations and profiles its capital structure over several years, showing that it relies heavily on debt financing through secured and unsecured loans while maintaining a relatively small amount of equity capital.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 17

    CAPITAL STRUCTURE OF DLF

    PRESENTED BY Deepika Sahoo Under the Guidance of Himansu Bhusan Gochhayat

    Capital structure

    Capital structure defined as the mixture of resources of company in which include equity share capital, pref. shares capital and long term debts.

    Why capital Structure


    For the real growth of the company the financial manager of the company should plan an optimum capital for the company. The optimum capital structure maximize the market value of the firm. It also minimize the cost of capital.

    Theory of capital structure Net Income (NI) Theory Net Operating Income (NOI) Theory Traditional Theory Modigliani-Miller (M-M) Theory

    Net Income (NI) Theory


    This theory was propounded by David Durand. According to this theory a firm can increase the value of the firm and reduce the overall cost of capital by increasing the proportion of debt in its capital structure to the maximum possible extent.

    Net Operating Income Theory

    Traditional Theory
    This theory was propounded by Ezra Solomon. According to this theory, a firm can reduce the overall cost of capital or increase the total value of the firm by increasing the debt proportion in its capital structure to a certain limit. Because debt is a cheap source of raising funds as compared to equity capital.

    Modigliani-Miller Theory
    This theory was propounded by Franco Modigliani and Merton Miller. MM theory or approach is fully opposite of traditional approach. This approach says that there is not any relationship between capital structure and cost of capital. There will not effect of increasing debt on cost of capita

    COMPANY PROFILE
    DLF Limited or DLF (Delhi Land and Finance) is the India's biggest

    real estate developer based in New Delhi, India. It is a famous builder group.
    The DLF Group was founded by Raghuvendra Singh in 1946.
    Now the company is headed by Indian billionaire Kushal Pal Singh. He is a richest billionaire in 2009 and now 98th richest man in world.

    Business

    Retails

    Houses

    Offices

    Golf Course

    CAPITAL STRUCTURE OF DLF LTD


    TABLE-1 SOURCE OF FUND
    Equity fund Mar2010 Equity share capital Share application money Preference share capital Total 339.48 Mar2009 339.44 Mar2008 340.96 Mar2007 305.88

    (In crores)
    Mar2006 37.77

    _ _

    _ _

    _ _

    _ _

    _ _

    339.48

    339.44

    340.96

    305.88

    37.77

    TABLE-2 Deb capital


    Loan fund Mar2010 Mar2009 Mar2008

    (In crores)
    Mar2007 Mar2006

    Secured loan

    11590.19

    7979.79

    4942.91

    6242.81

    3010.93

    Unsecured loan

    1047.67

    1635.00

    3440.49

    526.48

    2.99

    Total

    25467.86

    21989.79

    19655.55

    7422.10

    3658.85

    Table-3
    Financial year 09-10 08-09 07-08 Total equity 339.48 339.44 340.96 Total Debt 25467.86 21989.79 19655.55 Equity+Debt 25807.34 22329.23 19997.51

    06-05
    05-06

    305.88
    37.77

    7422.10
    3658.85

    7727.98
    3646.62

    FY / TOTAL CAPITAL
    30000

    25000

    20000

    15000

    Series1

    10000

    5000

    0 2010-Mar 2009-Mar 2008-Mar 2007-Mar 2006-Mar

    30000

    25000

    20000

    15000

    Series1 Series2

    10000

    5000

    0 2010-Mar 2009-Mar 2008-Mar 2007-Mar 2006-Mar

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