Z-SCORE AS PREDICTOR OF FINANCIAL DISTRESS IN NSE AUTO INDEX COMPANIES, INDIA

Abstract

The impact of Brexit in Indian auto mobile industry during the year 2015-2018 dilute auto industry profitability and sustainability. 16 automobile companies are listed in Indian NSE auto Index.

Financial distress of automobile companies affects India GDP and hence the study aims to probe the financial health among these companies.

Altman Z-score multiple discriminant analysis (MDA) model is used to investigate potential default on the auto sector companies listed in NSE auto index, India within 2015 to 2018.

Companies under study will be dividing into safe, grey and distress zone. The 5 financial ratios from Z”-score will be review and analyze as to how it will impact the company financial health.