ANALYSIS AND PROGNOSTICATION OF BANKRUPTCY AMONG BSE (BOMBAY STOCK EXCHANGE INDIA) LISTED COMPANIES
DOI:
https://doi.org/10.29121/ijetmr.v9.i8.2022.1180Keywords:
Bankruptcy, Safe zone, Distress zone, Gray zone, Non-Banking Financial CompaniesAbstract
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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Copyright (c) 2022 Ravichandran Murugan, Senthoorya Ragupathi
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