• Dr Gurnam Singh Rasoolpur

The present study, although an exploratory effort, is limited to 298 out of top 500 private sector manufacturing firms selected for eleven years on the basis of sales turnover for the year 2004-2005, published in Business Today. The study reveals that number of companies is higher in 0-100 percent and 200-300 percent capital structure ranges during the year 2005-06 as compared to the number of companies in the same ranges during the year 1995-96 for the variable under study. The number of companies is lower in 100-200 percent and more than 300 percent capital structure ranges during the year 2005-06 as compared to the number of companies in the same ranges during the year 1995-96 for the variable under study. Around 92 percent are lying in 0-200 percent during 1995-96 while around 89 percent are also lying in same capital structure range for the variable under study during 2005-06, respectively. In concise, it has been observed that with the rise in net sales ranges, the number of companies is moving from higher capital structure ranges towards lower capital structure ranges under the four broader categories of capital structure ranges during 1995-96. Overall, it has been observed that rise in net sales results in the shrinkage of number of capital structure ranges as well as decline in the distribution of companies to the higher capital structure ranges during 1995-96. As a result, it emerges that at lower net sales, there exists lower capital structure ranges and vice-versa, which represents positive relationship between capital structure and net sales ranges during 1995-96. It shows that higher sales are generating higher internal resources implying less dependency of companies upon debt capital. That is why the companies are using lesser amount of debt for financing purposes. However, during 2005-06, rise in net sales results in the expansion of number of capital structure ranges.

Capital Structure, Net Sales, Shrinkage

"CAPITAL STRUCTURE PRACTICES IN INDIAN CORPORATE SECTOR: A VARIABLE-SPECIFIC ANALYSIS ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 4, page no.1168-1176, April-2018, Available :http://www.jetir.org/papers/JETIR1804415.pdf

"CAPITAL STRUCTURE PRACTICES IN INDIAN CORPORATE SECTOR: A VARIABLE-SPECIFIC ANALYSIS ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 4, page no. pp1168-1176, April-2018, Available at : http://www.jetir.org/papers/JETIR1804415.pdf