• Dr Gurnam Singh Rasoolpur

This empirical paper attempts to study a desirable capital structure of Plastic, thermoplastic & rubber industry of the Indian corporate sector. The study is limited to top 20 firms from Plastic, thermoplastic & rubber industry out of top 500 manufacturing firms selected on the basis of the turnover for the year 2004-2005 which covers the time span of eleven years commencing from 1995-96 to 2005-06. The study reveals that slightly more than two-fifth of the companies (45.24 percent) in Plastic, thermoplastic & rubber industry are in 100-200 percent capital structure range. It means that in this industry, such companies are following liberal and safe approach of financing through debt. These companies are using more amount of debt in their capital structure than their own capital but less than the well established standard range of 200 percent (2:1). It has also been observed that two-fifth of the companies (40 percent) are in 0-100 percent capital structure range during the period under study. These companies are using lesser amount of debt in their capital structure as compared to even their own capital during the study period. So such companies are following conservative approach of financing through debt during the period under study, although, it is a cheaper source of finance. Overall, in the present study, use of combined form of conservative and liberal approach by Plastic, thermoplastic & rubber industry for financing through debt in the composition of their desirable capital structure in the Indian Corporate Sector is observed during the study period

Conservative, Liberal, Aggressive, Capital Structure, Shareholders

"A DESIRABLE CAPITAL STRUCTURE: A CASE STUDY FROM INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 12, page no.1116-1123, December 2018, Available :http://www.jetir.org/papers/JETIR1812D60.pdf

"A DESIRABLE CAPITAL STRUCTURE: A CASE STUDY FROM INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 12, page no. pp1116-1123, December 2018, Available at : http://www.jetir.org/papers/JETIR1812D60.pdf