ABSTRACT
India is the second fastest-growing economy in the world. The construction sector is an integral part of the Indian economy and the second-largest economic activity after agriculture. With operations spread across the Middle East, Africa, the Caspian, Asia-Pacific and South Asia, Punj Lloyd provides EPC services in oil and gas, process, civil infrastructure and thermal power. It can be seen from the data presented in above tables that the share capitals form a very small percentage of the total capital of the construction companies in India, and they rely heavily on reserves and surplus, secured loans and unsecured loans for long-term capital. The long-term debt to equity ratio is shown in It can be seen from that the debt to equity ratio depends on the scale of operations of the construction company. The high risk associated with these firms also increases the cost of debt capital, which in turn again reduces the interest cover making it even more risky.
