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Financial distress for a company is the decisive affirmation of its incapability to protract existing operations given its current debt obligations. In the midst of several studies highlighting multifarious dimensions of distress, this research effort endeavors to investigate the monetary wellbeing of selected manufacturing sectors in India under a well known distress prediction framework and investigates whether Altman's Z score model can predict appropriately the corporate financial distress of the selected manufacturing sectors in Indian context for the study period, 1991-92 to 2009-10. The Z score from the analysis shows that it is less than 1.81 in all most all the years entailing that these sectors under the banner of manufacturing industries have increased their debts and will be confronting bankruptcy in upcoming years unless regulatory procedures are taken to combat the adverse situation.
About the author
Dr.Sarbapriya Ray is an Assistant Professor in Commerce at Shyampur Siddheswari Mahavidyalaya, under University of Calcutta, India and a guest professor, department of Commerce, University of Calcutta, India. He has obtained M.com, MBA, M.Phil &Ph.D and published two books, several articles in reputed national as well as international journals.
