Journal Press India^®

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Capital structure is the most significant discipline of company’s operations. To understand how companies finance their operations, it is necessary to examine the determinants of their financing or capital structure decisions. Company financing decisions involve a wide range of policy issues. The relationship between capital structure and financial performance is one that received considerable attention in the finance literature. How important is the concentration of control for the company performance or the type of investors exerting that control are questions that authors have tried to answer for long time prior studies show that capital structure has relating with corporate governance, which is the key issues of state owned enterprise. To study the effects of capital structure or financial performance, will help us to know the potential problems in performance and capital structure. The analyze has been made the capital structure and its impact on Financial Performance during 2002 to 2012 (10 years) financial year of Steel Authority of India Limited. This point of study considered Capital structure is dependent variable and financial performance parameters i.e. Gross Profit ratio, Net Profit Ratio, Return on Capital Employed, Return on Equity, Return on Total Assets and Return on Fixed Assets are independent variables.

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