Effect of financial structure variable on Profitability of Soya Processing Units

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 6

Year of Publication : 2019

Authors : Dr. Meenal Sharma, Dr. Pooja Shrivastava

10.14445/23939125/IJEMS-V6I6P110

How to Cite?

Dr. Meenal Sharma, Dr. Pooja Shrivastava, "Effect of financial structure variable on Profitability of Soya Processing Units," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 6, pp. 59-64, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I6P110

Abstract:

Soybean is known as the “golden bean” and “miracle crop”, because of its several uses. It is an excellent source of protein, oil and vitamins which have tremendous potential to meet the protein-calorie malnutrition of the ever increasing Indian population. Soybean crop of India has an important place in world's agricultural scenario due to high productivity, profitability and contribution towards maintaining soil fertility. Soyabean Processing is one of the potential sectors of Indian economy. It is one of the sectors which can be developed to improve the livelihood of farmers. Approximately 85% of the world's soybeans are processed annually into soybean meal and oil. Indian soybean processing units has capabilities to process soybean for food, feed, pharmaceutical and industrial applications. In view of dominance of soybean crop in the cropping pattern, besides the low yield and infrastructural problems that the industrial units face such as inadequacy of power, lack of efficient and quick transport, non–availability of proper market for these soy products, consumer acceptability and availability of funds and low margin share amongst major problems faced by these processing units in India. Very few soya processing units are engaged in making value added products indicating apprehensions on viability of investments in soybean value added products. The present study deals with t he study of capital structure of soya processing companies and its impact on company’s profitability. The financial data is collected through annual reports of the company. Descriptive Statistical Analysis, Correlation and Multiple Regression are done to interpret the results of the study. Results of the study indicate that there is a significant effect of financial structure variables on profitability of soya processing units.

Keywords:

Soyabean Processing Companies, Profitability, Financial Structure, Financial Restructuring, Viability.

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