ANALYSIS AND PROGNOSTICATION OF BANKRUPTCY AMONG BSE (BOMBAY STOCK EXCHANGE INDIA) LISTED COMPANIES

Authors

  • Ravichandran Murugan Assistant professor, Department of Management studies, University College of Engineering, BIT Campus, Anna university Tiruchirappalli
  • Senthoorya Ragupathi PG student, Department of Management studies, Department of Management studies, University College of Engineering, BIT Campus Anna university Tiruchirappalli

DOI:

https://doi.org/10.29121/ijetmr.v9.i8.2022.1180

Keywords:

Bankruptcy, Safe zone, Distress zone, Gray zone, Non-Banking Financial Companies

Abstract

When a company faces difficulty in maintaining stability in financial performance of the company, there is a vast chances of bankruptcy occurrence. There are two possible ways when the company cannot financially survive, one is debt restructuring and another one is proceeding for bankruptcy. The objective of the research is to predict the sample companies which have the chance of bankruptcy or not. The research design and sampling method for this project is descriptive research and non-probability sampling method. Using Sample size of 186 Non-Banking Financial companies’ secondary data that is five years financial report, the Altman Z score analysis (Multi Discriminant Analysis) was conducted with a help of Microsoft office Excel 2021. Based on the analysis results, 11 out of 186 companies were in unsafe zone in 2021. Similarly, 14 out of 186 companies were in unsafe zone in 2020, and 8 out of 186 companies were in unsafe zone in 2019.

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Author Biography

Ravichandran Murugan, Assistant professor, Department of Management studies, University College of Engineering, BIT Campus, Anna university Tiruchirappalli

Assistant Professor, Head of the Department, Department of Management Studies

References

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Published

2022-08-26

How to Cite

Murugan, R., & Ragupathi, S. (2022). ANALYSIS AND PROGNOSTICATION OF BANKRUPTCY AMONG BSE (BOMBAY STOCK EXCHANGE INDIA) LISTED COMPANIES. International Journal of Engineering Technologies and Management Research, 9(8), 1–15. https://doi.org/10.29121/ijetmr.v9.i8.2022.1180