ACADEMICIA: An International Multidisciplinary Research Journal

  • Year: 2017
  • Volume: 7
  • Issue: 4

AN empirical study and analysis of the capital structure & working capital of indian textile industry {with specific reference for the period 2006–07 to 2015–16}

  • Author:
  • Diwahar Sunder Nadar, Nidhi Navalkha, Priyadharshini Nair, Akshay Damani
  • Total Page Count: 9
  • Page Number: 179 to 187

Professor, NMIMS University, India.

Abstract

The Indian Textile sector has proven to be one of the major sectors driving the Indian Economy in terms of varied economic factors including employment and exports amongst others. The paper aims to undertake an empirical study of the BSE-listed Indian textile companies' Capital structure and Working capital covering seventy one percent of the market capitalisation. They are considered as two goliath financial elements in the financial statements that drives the existence of an entity. An analysis is done on the trend and driving force of Capital structure and Working capital of the Indian textile Sector. Eight companies were selected on the basis of market capitalisation and their key financials were extracted for a period of ten years i.e. (2006–07 to 2015–16). With the help of the key indicators the sector was analysed which led to various findings about the requirement of fund, preferred source of fund, proportion of Debt to Equity, major component of working capital, prime application of working capital amongst others.

Keywords

Capital Structure, Debt-Equity, Indian Textile industry, Working Capital