Abstract: In this research paper author have attempted to analyse the solvency aspect of growing sector of plastic industry of Gujarat (India) during 2001- 2010 by taking a sample of 15 public limited listed companies which are working in the Gujarat state region of India on the basis of different size, age, area etc.
Then the researchers have collected 10 years financial data of these 15 companies for the period 2001- 2010 and found out 02 composite ratios out of it. From all 02 ratios author have worked out composite ratios using ` paid-up capital` as weight and found out weighted mean of these ratios for 10 years.
Researcher have applied Mann- Kendall Trend detection test to test the hypothesis. Debt-equity ratio had linear rising trend. Plastic industry in Gujarat was able to generate borrowed capital reasonably well. The plastic industry of Gujarat had poor ability to offer assured payment of interest to the lenders .Long term solvency strength of plastic industry of Gujarat is exposed to serious strain.
Keywords: Plastics Industry, Financial Analysis, Composite Ratios, Weighted Mean, Mann-Kendall Test, Solvency Ratios.
Title: Long Term Solvency Strength in the Plastic Industry of Gujarat during 2001-2010
Author: Dr. Harshad M. Tandel
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Research Publish Journals
