Abstract
The transport industry is one of the key industries of the nation‟s economy. It transports people, goods, and so on. Movement from one place to another place is a must even in everyday life. Generally, private transport services are given between two towns; where there is more demand to make a profit. But transport is needed in every nook and corner of the country. So the government of Tamilnadu provides transport facilities through transport corporations. TNSTC (Villupuram) Limited is the biggest transport corporation in the state. Long-term solvency is one of the most important in the transport industry. Hence the researcher has studied the Long-term Solvency position of TNSTC (Villupuram) Limited. The present study is based on secondary data. The secondary data were collected from annual reports of TNSTC (Villupuram) Limited for the period of ten years from 2004-2005 to 2013-2014. The collected information was analyzed with the help of appropriate tools like ratio analysis, percentage, and CAGR. The study found that the debt of the corporation increased considerably during the study period, on the other hand, their equity went down at a high rate and it became negative for the last three years of the study period, showing erosion of its retained earnings over the study period. The results of the debt-equity ratio and proprietary ratios indicated unsatisfactory long-term solvency of the corporation.
References
- Annual reports from the TNSTC (Villupuram) Limited.
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