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Abstract
The Hindustan Petroleum Corporation had shown an inclination in strengthening long term funds consisting of both shareholders funds as well as long term borrowed funds in order to finance its assets requirement. Hindustan Petroleum Corporation generally depended on equity financing. So, the financial risk of the company is low, but it could fail to enjoy the advantages of financial gearing. Hindustan Petroleum Corporation should raise the debt funds to bring the optimum capital structure for improving the financial performance of the company. A higher interest coverage ratio is advantageous, but too high ratio is some of the years of the study specify that the Hindustan Petroleum Corporation is very conservative in using debt, and it is not using debt to the best gain of the shareholders.This paper analysed the “Capital Structure Pattern of Hindustan Petroleum Corporation”. A study on long-term solvency, assessment of debt-equity, debt to total fund and justification for the employ of debt in Hindustan Petroleum Corporation through the appliance of ratio analysis and statistical test has been undertaken. The time period considered for evaluating the study is five years i.e. from 2015 to 2019. It is discovered that the long term funds had contributed more on an average of total funds when compared to short term funds in Hindustan Petroleum Corporation. Long term funds had apportioned almost two-third of total funds. Shareholders’ funds had occupied major chunk of the total funds when compared to the borrowed funds.