ISSN: 2349-5677 Volume 1, Issue 11, April 2015 45 Capital Structure Analysis of Software Company with Special Reference to TCS Dr. Kavitha Shanmugam Professor, Management Studies, J. J. College Of Engineering & Technology, Ammapettai, Trichy - 09 J.Tamilselvi B.Com,M.B.A,M.Com,M.Phil,D.Co.Op,, Research Scholar, Research And Development Center, Bharathiyar University, Coimbatore 46 Abstract This paper analysed the “Capital Structure Pattern of Tata Consultancy Services”. A study on long-term solvency, assessment of debt-equity, debt to total fund and justification for the use of debt in Tata Consultancy Services through the application of ratio analysis and statistical test has been undertaken. The time period considered for evaluating the study is four years i.e. from 2011 to 2014. It is revealed that the long term funds had contributed more on an average 77.25 percent of total funds when compared to short term funds (17.57 percent) in Tata Consultancy Services. Long term funds had apportioned nearly two-third of total funds. Shareholders’ funds had occupied on an average 75.33 percent major chunk of the total funds when compared to the borrowed funds (1.91 percent). The Tata Consultancy Services 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. Tata Consultancy Services mostly depended on equity financing. So, the financial risk of the company is low, but it could fail to enjoy the advantages of financial gearing. Tata Consultancy Services 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 desirable, but too high ratio is some of the years of the study indicate that the Tata Consultancy Services is very conservative in using debt, and it is not using debt to the best advantage of the shareholders. KEYWORDS: Debt-equity ratio, Debt to total fund ratio, Interest coverage ratio and Quantum and structure of total funds Tata Consultancy Services. Introduction One of the most critical areas of the finance function is to make decisions about the firm’s capital structure. Capital is required to finance investments in plant and machinery, inventory, accounts receivable and so on. Capital structure is the part of financial structure, which