Ratio Analysis of a Private Limited Company with Relevance to Change in Type of Enterprise-A Case Study of Write Fine Products Pvt. Ltd. Umbragam, Gujarat

Abstract

Capital structure talks about relative magnitude and proportion .each component of capital structure has a different cost of firm. Though capital structure talks about long term sources of finance. Generally proprietary firm refers to owners of firm i.e. capital and long term creditors. This paper examines the relation between capital structure and a firm's performance with reference to change in organization type. The main aim of this study is to know the relationship between capital structure and performance of a private limited company turned registered firms. It's a very interesting and unique change. Generally firms get registered from unregistered form of partnership. But in Gujarat now days many firm in different sector are changing their format. To get the result, ratios are used as tools to know value maximization, cost minimization, future investment and growth pattern of a registered firm which is turned in to a private limited company. This paper contains multiple hypothesis to cross verify overall financial health of write fine pvt ltd. Gujrat with effects of before and after as a private company.