FINANCING DECISIONS: A CASE STUDY OF SELECTED CEMENT COMPANIES OF INDIA

Since, last two decades of Indian economy, there is a continues research on company financing activities, particularly aimed at understanding how companies finance their investments and what source they used to finance. In practice, it is observed that finance managers use different combinations of debt and equity to meet the various financial requirements of the company at least cost, and risk and for the long term benefit of the company. Therefore, this study is aimed to make analyse of capital structures pattern of various companies for the period of 2008-09 to 2013-14 and analyse the effect of changes in capital structure on its investment pattern over the period of time. This study also attempts to make an intra-company analysis with the objective to determine the importance of debt-equity mix for the effective investment policy. Similarly, To study the financing decisions, this paper includes the trend analysis for analyzing the detail financial information of five most reputed cement companies, that are, ACC cement Ltd, Ultratech cement Ltd, Ambuja Cement, J.K. Cement, and Chettinad cement for the period of five year i;e 2008-09 to 2013-14.