Aanchal Singhal Final 1

Dissertation Report
“Financial Stability of top 30 companies of sensex

through Z Score and Springate score”
Submitted in partial fulfillment of the requirements for the award of the two
Years full time
POST GRADUATE DIPLOMA IN MANAGEMENT
By
AANCHAL SINGHAL
BM - 020068
Under the guidance
Dr. Amit Bhati

Professor Finance
Institute of Management Studies, Ghaziabad

May, 2022
Faculty Guide Certificate
This is to certify that the dissertation titled “Financial Stability of top 30 companies of sensex
through Z Score and Springate model” is an original work of Ms. Aanchal Singhal Bearing Roll
Number BM-020068 and is being submitted in partial fulfillment for the award of a two-year, full-
time Post-Graduate Diploma In Management from the Institute of Management Studies,
Ghaziabad.
The report has not been submitted earlier to this University /Institution for the fulfillment of the
requirement of a course of study.
Signature of Faculty Guide
Date
I
DECLARATION
I hereby declare that “Financial Stability of top 30 companies of sensex through Z Score and
Springate model” is the result of the project work carried out by me under the guidance of Dr.
Amit Bhati in partial fulfillment for the award of a two-year full-time Post-Graduate Diploma in
Management from the Institute of Management Studies, Ghaziabad.
I also declare that this project is the outcome of my own efforts and that it has not been submitted
to any other university or institute for the award of any other degree or Diploma or Certificate.
Place: Ghaziabad
Name: Aanchal Singhal
Date: 28/03/2022
Roll No BM-020068
II
ACKNOWLEDGEMENT
Every project big or small is successful largely due to the efforts of a number of wonderful people
who have given their valuable advice. I sincerely appreciate the support and guidance of all those
people who were instrumental in making my Dissertation successful. I would like to extend my
heartfelt gratitude to our Director, Prof. Dr. Urvashi Makkar, Dr. Ajay Kumar Patel, Dean
Student Affairs, and my guide Dr. Amit Bhati, Professor Finance for their kind support.
I would also like to thank librarian Ma’am and all other staff of my esteemed institute for their
time to time assistance.
I would also like to thank all my family members, friends, relatives who are directly or indirectly
associated with the completion of this project.
III
Certificate of Plagiarism
IV
Table of Content
S.no Chapters Page No.
1 Chapter 1 Introduction 1
2 Chapter 2 Literature Review 4
2.1 Altman Z Score 5
2.2 Springate Score 7
3 Chapter 3 Research Objective and research 11
methodology
3.1 Objective Of the Study 12
3.2 Research Methodology 13
3.2.1 Research Design 13
3.2.2 Sample 13
3.2.3 Data Collection 18
3.2.4 Tools and Techniques 19
4 Chapter 4 Data Analysis and Findings 22
4.1 Altman Z Score 23
4.2 Springate Score 38
5 Chapter 5 Conclusion 53
6 Chapter 6 Recommendation 55
7 Chapter 7 Limitation and Future Scope 57
8 References 59
List of Tables
S.no Table Page no.
1 Table 2.1 literature review of Altman Z score 7
2 Table 2.2 literature review of Springate model. 11
3 Table 4.1 Asian Paints Altman Z score 23
4 Table 4.2 TATA Communication Altman z score 23
5 Table 4.3 Bajaj Finance Altman Z score 24
6 Table 4.4 Bajaj Finserv Altman Z score 24
7 Table 4.5 Bharti Airtel Altman Z score 25
8 Table 4.6 Dr. Reddy lab Altman Z score 25
9 Table 4.7 HCL Technologies Altman Z score 26
10 Table 4.8 HDFC Altman Z Score 26
11 Table 4.9 DLF Altman Z score 27
12 Table 4.10 HUL Altman Z Score 27
13 Table 4.11 Indigo Altman Z score 28
14 Table 4.12 Gujrat Gas Altman Z score 28
15 Table 4.13 Infosys Altman Z score 29
16 Table 4.14 ITC Altman Z score 29
17 Table 4.15 Dabur Altman Z score 30
18 Table 4.16 L&T Altman Z score 30
19 Table 4.17 M&M Altman Z score 31
20 Table 4.18 Maruti Suzuki Altman Z score 31
21 Table 4.19 Nestle Altman Z score 32
22 Table 4.20 NTPC Altman Z score 32
23 Table 4.21 Power Grid Altman Z score 33
24 Table 4.22 Reliance Ind. Altman Z score 33
25 Table 4.23 BPCL Altman Z score 34
26 Table 4.24 Sun pharma Altman Z score 34
27 Table 4.25 TATA Steel Altman Z score 35
28 Table 4.26 TCS Altman Z score 35
29 Table 4.27 Tech Mahindra Altman Z score 36
30 Table 4.28 Titan Altman Z score 36
31 Table 4.29 Ultratech Cement Altman Z score 37
32 Table 4.30 Wipro Altman z score 37
33 Table 4.31 Asian Paints Springate model 38
34 Table 4.32 TATA Communication Springate model 38
35 Table 4.33 Bajaj Finance Springate model 39
36 Table 4.34 Bajaj Finserv Springate model 39
37 Table 4.35 Bharti Airtel Springate model 39
38 Table 4.36 Dr. Reddy Lab springate model 40
39 Table 4.37 HCL Technologies Springate model 40
40 Table 4.38 HDFC springate model 40
41 Table 4.39 DLF springate model 41
42 Table 4.40 HUL springate model 41
43 Table 4.41 Indigo springate model 41
44 Table 4.42 Gujrat Gas springate model 42
45 Table 4.43 Infosys springate model 42
46 Table 4.44 ITC springate model 42
47 Table 4.45 Dabur springate model 43
48 Table 4.46 L&T springate model 43
49 Table 4.47 M&M springate model 43
50 Table 4.48 Maruti Suzuki springate model 44
51 Table 4.49 Nestle springate model 44
52 Table 4.50 NTPC springate model 45
53 Table 4.51 Power Grid springate model 45
54 Table 4.52 Reliance Ind. Springate model 46
55 Table 4.53 BPCL springate model 46
56 Table 4.54 Sun pharma springate model 46
57 Table 4.55 TATA Steel springate model 47
58 Table 4.56 TCS springate model 47
59 Table 4.57 Tech Mahindra springate model 48
60 Table 4.58 Titan springate model 48
61 Table 4.59 Ultratech cement springate cement 48
62 Table 4.60 wipro springate model 49
CHAPTER 1
INTRODUCTION
1
Introduction
Measurement analysis is used in different parts of the world to measure financial accuracy as well the
suitability of firms, however, Academician appears to be approaching the completion of rate analysis as a
means of evaluating business performance. Theorists downplay the sixth standard rules, such as
comparing company rates, widely used by staff. As the attack on the validity of the measurement analysis
arises in many respected members of the academic world, which means that analytics is limited and the
consequences and the significance of such a method is closed in an undesirable way. The gap should be
closed, between the "analysis" of the traditional scale and solid statistics strategies. Acquisition of
company operations and financial difficulties is a topic we have to be more flexible in the analysis of the
financial ratio (Chouhan et. al, 2010, 2011a, b). Previously in the development of corporate performance
measurement standards, agencies have established to provide the kind of information quality that assesses
credit validity certain vendors. Integrated systematic studies related to the symptoms of business failure
appeared in the 1930's.
Altman (1968) was the first researcher to use the Multiple Discrimination Analysis (MDA) is a domain for
predicting financial stress. We got a Z-score deficit model and determined Z-score cut point (2.675) for
healthy planning and depressed firms. The results showed that the Z-score model had reasonable
predictions working for one year and two years before financial stress, but did not show any good is a
prediction tool for three to five years before financial stress. A handful of writers followed atman, and
used the Z-score model in different markets, different times and various industries, such as, Taffler (1982,
1984), Pantalone and Platt (1987), Betts and Belhoul (1987) and Piesse and Wood (1992).
1.1 Multiple Discrimination Analysis
The MDA assumes that covariance matrices for two people are the same and both communities need
to be defined by a standard multivariate distribution. Obviously, these imagination does not always
reflect the real world. Deakin (1976) asserts that even after it is over by performing a standard
conversion process, the measurement data does not follow the normal distribution. In addition, Hamer
(1983) examined the sensitivity of predicting financial stress models according to four different sets of
previous studies (Altman, 1968; Deakin, 1972; Blum, 1974; Ohlson, 1980) also pointed out that
matrices of covariance in each the dynamic set was mathematically different. Beaver (1967) was the
first to identify features of failing companies compared to a consistent paired sample of healthy firms.
Using a consistent discriminatory assessment also found that financial estimates appear to be helpful
forecasts also found that certain financial estimates can be useful predictions of even failure five
2
years before it happened. This research can be considered as a pioneer project that started a series of
steps works in the same place. Following this initial study two major mathematical methods, Multiple
Discriminant Analysis (MDA) and Regression Analysis (RA), used by many authors predicting
future collapse. E. Altman (1968, 1978) was the first to use the MDA the approach to the problem of
predicting failure and his model (known as Ζ Analysis of points) was 90% correct in properly
separating firms one year before failure. In some ways, The regression analysis was used by Edmister
(1971) who found the results of high segregation.
The main drawback, however, was that he did not use his immature variables but, instead, he
converted each. MDA was also used by Deakin (1972) who discovered it that his models were at
least 95% accurate in the first three years before the collapse. These two approaches (MDA and RA)
are compared in a study by Collins (1980) who concluded that both methods provide good predictive
results. In Japan many lessons (e.g., Nikkei-Business, Takahashi and Ko) have acquired top class
performance (85% or more). Von Stein (1981) in Germany, Weibel (1973) in Switzerland, Taffler et
al. and Tissaw (1977) and Marais (1979) in England, Bilderbeek (1977) in the Netherlands and
Altman and Lavallee (1981) in Canada used the MDA. In all of these studies the ratings models have
high success rates ranging from 70% to 90%. Similar studies of Altman (1973) in France and
Castagna and Matolcy (1981) in Australia found moderate results. Ordinary line models or multiple
retrospective models are also popular. Ohlsons O-Score (Ohlson, 1980) is based on the standard
models that have a link to the entry function, also called log analysis. Neural network models are
powerful and popular alternatively, with the ability to incorporate a very large number of features
into the adaptive indirect model, Wilson and Sharda (1994). In India speculation models have been
developed by Gupta (1979), Kaveri (1980), Srivastava (1981), and Yadav (1986). Gupta (1979) has it
made an effort to test the various scales and decided on the best set of scales. Yadav (1986) modeled
discriminatory modeling using financial measures that include finance company features. Rekha Pai
et al (2006) performed PCA-MDA comparisons Neutral network model and strategies to predict
industrial illness and prove that a standard mathematical model seems to work as a better predictor
than comfort computer model. Regardless of the advantages or disadvantages of the predictive
model, the very idea of developing such models to predict financial stress and failure itself Welcome
allover, because the model can help determine the chances of future illness as well thus it is easier to
prevent its attack early. Dissolving models can be used as early warning signs, so that corrective
action can be taken immediately managers.
3
CHAPTER 2
LITERATURE REVIEW
4
2.1 Altman Z Score:
Altman (1968) developed the Altman Z-score model, also called the multiple discriminant analysis model
(MDA), as a statistical measure to predict a company’s financial failure. He used various analyzes as this
allowed him the use of a model that can manage binary variables as a dependency to define both behaviors
different groups. At that time various analyzes were used only for ethics and biology science. Altman's
Zscore is one of the models used to predict the company's future collapse.
S.No Author and Year Description

1 Hayes et al They evaluated the effectiveness of Altman's Z-score in
(2010) predicting the collapse of retail firms USA also found Z-score
effective in predicting financial stress as it accurately predicted
collapse to fill 94% of the time and accurately predict financial
stress over 90% of the time. Researchers explain construction
and description of the Z-Score and apply it to several pairs of
firms from a variety of specialized marketing industries that last
two years in a row. This research paper provides evidence of the
effectiveness of Altman Z School in Predictability of Corporate
Disruption
2 Sajjan (2016) He examined the use of Altman's Z-score in predicting the
collapse of selected factories in India and found that it is
effective in predicting financial stress in India. The researcher
used the model to understand Chances of the fall of selected
firms 5 years ago from 2011 to 2015 are listed on BSE & NSE.
Companies are selected in the manufacturing and non-
manufacturing sectors. Research shows that he is not of the
companies are wholly owned by Safe Zone except for a few
years. Most firms are in the Distress Zone which clearly
indicates that these companies may run out of money in the
future.
3 Babatunde, They investigated the disappearance of 10 companies listed

Akeju, and once concluded that Z-score is an important tool in finding
Malomo (2017) unemployed production companies in Nigeria. Researchers have
5
studied Altman's z-score efficiency in predicting the decline in
quoted production Nigerian companies. The study was
conducted using a sample of 10 production companies quoted
from the Nigeria Stock Exchange (NSE) for the 2015 financial
year. Data obtained for the purpose of the study was analyzed
using Altman's Z-score model. Research evidence suggests that
Z-score is very important an important tool in identifying
companies with declining performance in Nigeria.
4 M. M. Swalih et The Altman Z School is an effective tool for measuring a

al (2021) company's financial strength and potential for liquidity. In this
study, the Z result formula was used to measure the financial
stability of the Indian automotive industry. The financial data of
ten car companies listed on the National Stoke Exchange (NSE)
was taken to analyze both the initial and emerging market
formulas of the Altman Z school. The results suggest that the
industry companies listed on the NSE are financially sound. The
study concluded that the Indian auto industry is healthy and
strong, and that car companies are less likely to have financial
problems or to collapse in the near future.
5 Zeynep Cındık This paper aims to predict the state of corporate financial stress
and Ismail H. through four various models; Altman Z School, Altman Z
Armutlulu (2021) Revised School (Line Discrimination Analysis) and Quadratic
Discriminant Analysis, Random Forest Machine Learning
Model with the same usage variables suggested by Altman
Table 2.1 literature review of Altman Z score
6
Springate Score
Developed by Gordon Springate in 1978, this model selects four of the nineteen common financial
estimates to determine the probability of firm failure. This model also uses successive discriminatory
analysis to result in points for each particular company.
Companies with a Springate effect below .862 are classified as "failed". The model was originally
Springate in 40 companies with an accuracy rate of 92.5%. In the latest tests conducted by other academic
researchers, 50 Company tests (with average assets of 2.5 million) showed 88% accuracy and 24
Company tests (with average assets of 63.4 million) showed 83% accuracy.
Z = 1.03A + 3.07B + .66C + .4D
A = Working Capital / Total Assets

B = EBIT / Total Assets
C = EBT / Current Liabilities
D = Sales / Total Assets
Sprinate Score in Financial Depression. Ben et.al (2015) conducted a study on real estate companies,
which showed that there were eight companies in the non-fraudulent category, nine potential collapses,
and five transitioners from the poorest to the poorest, five in a variety of shifts from the poorest to the
poorest. Meiliawati (2016) his research showed that the Springate and Altman Z Score model has
significant differences in predicting possible financial stress on cosmetics companies listed on the
Indonesia Stock Exchange due to the use of a different scale. in calculating the extent of the financial
crisis. The following result shows that the Springate model is the most accurate model for predicting
possible financial stress in the cosmetics sector listed on the Indonesia Stock Exchange with an accuracy
rate of 91.66%, of which Altman's accuracy is only 60.41%. This is due to the Springate model using the
Earnings before taxes to Current Liabilities (EBT/CL) model, where this rating is considered to be the
largest for cosmetic companies listed on the Indonesia Stock Exchange Abadi (2017), and his research
showed that the accounting effect of the calculation is calculated. Using the Springate S-Score during the
2013-2014 research period, the results showed that there were 19 construction companies that
demonstrated the potential for collapse. Therefore, it can be concluded that there are companies in the
field of demolition that have a model for analyzing springate points.
7
S.No Author and Year Description
1 AlAli, Musaed, Alshamali, They used the zmijewski model evaluating the
Mansour, Alawadhi, financial performance of oil companies in Kuwait and
Khuloud & AlSabah, finding that as more companies go down about the
AlDana. (2018) financial crisis that those companies filed for
bankruptcy. They operate oil and gas companies a
sector listed on the Kuwait stock exchange. As oil
and gas companies are vital to the Kuwaiti economy,
predictions of the collapse of oil and gas companies
are vital to the Kuwaiti economy. Companies used in
research on major government contractors there.
2 Sudjiman, L. S., & They used the springate and zmijewski model to
Sudjiman, P. E. (2019) predict the accuracy of financial stress on cosmetics
and household companies and get zmijewski model
accurate forecaster. The authors used 5 companies
listed on the Indonesian stock exchange to conduct
research .Research is made from real estate
companies and cosmetics listed on the stock
exchange to demonstrate the accuracy of model.
3 Sinarti, Tia (2015) They used altman z score, springate and zmijewski to
determine the financial life of the metal and
Indonesian stock exchange production company also
found that Sprinate and Altman z points predict in a
clear decline in companies. The authors also aim to
find out if there is a significant difference in the
prediction of all three models .The study paper
provides clear evidence of the effectiveness of
Altman Z points and Sprinate Score in predicting the
collapse of steel and manufacturing companies. Yet
in comparison zmijewski model showed more healthy
8
companies in relation to what Altman and springate
showed models.
4 Muthukumar, G., & M., S. They used the springate and altman Z results model
(2014) to evaluate financial performance car companies in
India where they came to a conclusion on average
prices in the industry a safe place but the performance
of most selected companies was below the industry
standard. Lesson it is done as the automotive industry
is considered as an economic measure and the data
used for research it has been 10 years .One of the
main reasons for doing the analysis as the authors say
is that as a global recession. has affected the
automotive industry.
5 Marcinkevičius, They determines that the extinction model as altman z
Kanapickienė (2014) score and springate is working on a breakdown in the
Lithuanian construction industry and came to the
conclusion that the accuracy level of the springate
and altman model was 86.94% and 74.47%
respectively performed on 521 companies their
decommissioning process ran between 2009-2013
find out if the fallout models apply to the construction
industry .The study uses 3 specific ones
discriminatory analysis model and 2 retrospective
model to assess construction financial viability sector
in Lithuania.
6 Mackevičius, They examined different models of extinction and
Silvanavičiūtė, (2006) came to the conclusion that the line discriminatory
models such as Altman, Springate, Taffler and
Tisshaw were more suitable for demolition.
Forecasting companies 11 years before the actual
collapse by analyzing selected financial data. These
are models easy to use and deliver results. The
authors state the effectiveness of models such as
9
Altman Z school, Sprinate School, Taffler and
Tisshaw for corporate bankruptcy.
7 Mira Munira et al (2021) This study aims to determine the probability of an

annual collapse using Altman Modified Z-Score and
Sprinate methods and to obtain a five-year accuracy
using Altman Z-Score and Sprinate methods in
estimating the potential collapse of mining companies
listed on I. Indonesia Stock Exchange 2015-2019.
This study uses a quantitative descriptive method
based on the Altman Z-Score and Sprinate models
used to predict company collapse.
Table 2.2 literature review of Springate model.
10
CHAPTER 3
RESEARCH OBJECTIVE AND

RESEARCH METHODOLOGY
11
3.1 Objective of the study
As discussed above, the main objectives to study this project is to know about the financial stability of the
Sensex Companies through Z-Score and Springate Score.
The main objectives in this study are:-
1. To determine the financial health of selected companies through z score and springate models for
investment perspective.
2. To identify companies in distress among selected companies through z score and springate models
for investment perspective.
12
3.2 Research Methodology
3.2.1 Research Design:
The research in this dissertation is descriptive. Research Design helps us to give understanding about the
research that will be done in the study. It can be defined as an information source regarding actions done
to collect and analyze data as per requirement of research. The research design is considered to be
descriptive as we collect secondary data of financial annual reports of companies.
3.2.2 Sample: - we take sample as a stock market and for the sample population is “Sensex 30”
companies.
Following companies Listed in Sensex 30 are used for this study: -
1. Asian Paints: - Asian Paints is an Indian multinational paint company. It’s headquartered is in
Mumbai. Asian Paints founded in 1st February 1942 and its founders are Champaklal Choksey,
Chimanlal Choksi, Suryakant Dani and Arvind Vakil.
2. Bajaj Finance: - Bajaj Finance Limited, owned by Bajaj Finserv, is a non-banking Indian banking
company headquartered in Pune, India. The company deals with consumer finance, SMEs (small
and medium enterprises) and commercial lending, as well as asset management. Headquartered in
Pune, Maharashtra, the company has 294 customer branches and 497 rural areas with more than
33,000+ distribution points. The company reported a pre-tax profit of Rs.626 crores and a post-tax
profit of Rs.408 crores of ROA of 0.8% and ROE of 5.1% of Q2 FY17. It was originally merged as
Bajaj Auto Finance Limited on March 25, 1987, which is not a bank that focuses on two-wheeler
financing. After 11 years in the automotive market, Bajaj Auto Finance Ltd presented its first
public equity issue and was listed on the BSE and NSE. At the beginning of the 20th century, the
company entered the durables financial sector. In the years that followed, Bajaj Auto Finance
expanded into business and real estate loans. In 2006, the company's assets under management
reached Rs.1,000 crore mark and currently stands at Rs.52,332 crore. In 2010 the registered
company name was changed from Bajaj Auto Finance Limited to Bajaj Finance.
3. Bajaj Finserv: - Bajaj Finserv Limited is an Indian nonbanking financial services company
headquartered in Pune, India. It focuses on borrowing, asset management, asset management and
insurance. The company employs more than 20,154 employees in 1,409 locations, and trades in
consumer finance businesses, health insurance, and general insurance. In addition to financial
services, it is also active in generating wind power of 65.2 MW. Financial services and wind
turbines have been transferred to Bajaj Finserv Limited (BFS) as part of the recent completion of
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Bajaj Auto Limited, which was approved by the Bombay High Court on its terms of 18 December
2007. 31 March 2007.
Bajaj Holdings is registered as a Non-Bank Finance Company (NBFC) under Registration Number
N – 13.01952 dated 29 October 2009 with the State Bank of India (RBI). The company is
classified as a NBFC Non-Profit Non-Deposit in terms of RBI Regulations.
4. Bharti Airtel: - Bharti Airtel is an Indian Multinational Telecommunication services company. It
operates around in 18 countries across South Asia and Africa. It founded in 7th July 1995. Its
founder is Sunil Bharti Mittal.
5. Dr. Reddy Labs: - Dr. Reddy Laboratories is an Indian multinational pharmaceuticals company. It
is located in Hyderabad, Telangana, India and its founders is Kallam Anji Reddy. It founded in
1984.
6. HCL Technology:- HCL technology is an Indian Multinational Information Technology sevices
and consulting company. It’s headquarter in Noida, Uttar Pradesh. HCL Technology founded in
11th August 1976. Its founder is Shiv Nadar.
7. HDFC: - HDFC Bank Limited is an Indian banking and financial services company headquartered
in Mumbai, India. India's largest asset bank and the 10th largest bank in the world with market
capitalization since April 2021. [12] It is the third largest market with $ 122.50 billion in Indian
stock markets. It is also the 15th largest employer in India with approximately 120,000 employees.
8. Tata Communication: - Tata Communications Limited is an Indian telecommunications company
formerly known as Videsh Sanchar Nigam Limited (VSNL). Previously it was a state-owned
telecommunications service provider and under the ownership of the Department of
Communications, Department of Communications, Government of India. It was sold by the
Ministry of Communications, the Ministry of Communications, and the Government of India to the
Tata Group during the reign of Atal Bihari Vajpayee-Bharatiya Janta Party-National Democratic
Alliance. The company is currently part of the Tata Group
9. HUL: - Hindustan Uniliver Limited is a consumer goods company. It’s headquartered in Mumbai,
India. HUL founded in 1933.
10. Gujrat Gas: - Gujarat Gas Company Limited (GGCL) was founded in 1980, and is in the business
of buying and distributing natural gas. The company went public in October 1991, and was listed
on the Bombay Stock Exchange and the National Stock Exchange. BG Group acquired a large
portion of the company in 1997. In October 2012, the main owner of the firm, BG Group, sold
65% of the shares for an estimated $ 470 million. The buyer was GSPC Gas, a unit of the state-
14
owned Gujarat State Petroleum Corporation (GSPC). GSPC Gas and GGCL were merged in 2015
and the new company was renamed Gujarat Gas Limited.
11. Dabur: - Dabur Ltd India's international consumer goods company, founded by S. K. Burman also
has headquarters in Ghaziabad, Uttar Pradesh. It manufactures Ayurvedic medicines and natural
consumer products, and is one of the largest fast-moving consumer goods companies (FMCG) in
India. Dabur derives about 60% of its revenue from the consumer care business, 11% from the
food business and the rest of the international business unit.
12. Infosys: - Infosys Limited is an Indian information technology company that provides business
consulting, information technology and export services. The company was founded in Pune with
its headquarters in Bangalore. Infosys is India's second largest IT company after Tata Consultancy
Services with 2020 revenue figures and 602 largest public company in the world according to
Forbes Global 2000.The company's credit rating is CRISIL AAA / Stable / CRISIL A1 + (CRISIL
rating).
13. ITC: - ITC Limited is an Indian conglomerate company headquartered in Kolkata. ITC has a
diverse presence in all industries such as FMCG, hotels, software, packaging, paper boards, special
paper and agribusiness. The company has 13 businesses in 5 units. It exports its products to 90
countries. Its products are available in 6 million stores. Founded in 1910 as the Imperial Tobacco
Company of India Limited, the company was renamed India Tobacco Company Limited in 1970
and later became the I.T.C. Rated 1974. The company is now renamed ITC Limited, where "ITC"
today is no longer an acronym.
14. BPCL: - Bharat Petroleum Corporation Limited (BPCL) is an oil and gas corporation owned by
the Indian government. It is owned by the Ministry of Petroleum and Natural Gas, Government of
India, headquartered in Mumbai, Maharashtra. It operates two major refineries in Kochi and
Mumbai. India's second-largest oil company, ranked 309th in the 2020 Fortune list of the world's
largest companies, and 792nd in the Forbes 2021 "Global 2000" list.
15. Larsen and Toubro: - Larsen & Toubro Ltd, commonly known as L&T, is an Indian corporation,
with business interests in engineering, construction, manufacturing, technology and financial
services, headquartered in Mumbai. The company is one of the five leading construction
companies in the world. It was developed by two Danish engineers who flew to India. As of 2020,
L&T Group has 118 subsidiaries, 6 subsidiaries, 25 co-operatives and 35 co-operatives, working in
all basic and heavy engineering, construction, real estate, manufacturing, information technology ,
and financial services.
15
16. M&M: - Mahindra & Mahindra Limited (M&M) is an international Indian automotive company
headquartered in Mumbai. It was founded in 1945 as Mahindra & Muhammad and later renamed
Mahindra & Mahindra. Part of the Mahindra Group, M&M is one of the largest car manufacturers
in India. Its subsidiary Mahindra Tractors is the largest producer of tractors in the world. It is
ranked 17th in the list of top companies in India by Fortune India 500 in 2018. Its main
competitors in the Indian market include Maruti Suzuki and Tata Motors.
17. Maruti Suzuki: - Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an
Indian car manufacturer based in New Delhi. It was established in 2001 and owned by the
Government of India until 2003, when it was sold to Japanese automaker Suzuki Motor
Corporation. As of September 2021 Maruti Suzuki has a market share of 49 percent in the Indian
passenger car market.
18. Nestle: - It is a Swiss Multinational food and drink processing combination of corporation. Its
main headquatered in Vevey, Vaud, Switzerland. Its include baby food, water, cereals, tea etc. It
has 447 factories and operates in 189 countries. It founded in 1905 by the merger of “Anglo-Swiss
Milk Company” and “Farine Lactee Henri Nestle”.
19. NTPC: - NTPC Limited, formerly known as National Thermal Power Corporation Limited, is a
legal entity in India. It was involved in power generation and integrated operations. It is a legal
entity incorporated under the Companies Act 1956 and under the ownership of the Department of
Energy, Government of India. The company's headquarters are in New Delhi. The main function of
the NTPC is to generate and distribute electricity to the Provincial Electricity Boards of India. The
body also contracts for consultancy and turnkey project contracts that include engineering, project
management, construction management, and operations and power plant management.
20. Power Grid: - Power Grid Corporation of India Limited is an official Indian corporation under the
Department of Energy, Government of India and headquartered in Gurugram, India and is actively
involved in the transfer of power to various provinces of India. Power Grid transfers about 50% of
all India's generated power to its transmission network. It is also certified PAS 99.
21. Reliance Industries: - Reliance Industries Limited is an Indian multinational conglomerate
company, headquartered in Mumbai, India. It has a variety of industries including energy,
petrochemicals, natural gas, retail, telecommunications, mass media, and textiles. Reliance is one
of the most profitable companies in India, India's largest publicly traded company with market
capitalization and India's largest company as measured by revenue. It is also the tenth largest
employer in India with over 236,000 employees.
16
22. DLF: - Delhi Land & Finance (DLF Limited) is a real estate developer. It was founded by
Chaudhary Raghvendra Singh in 1946 and is based in New Delhi, India. DLF formed Delhi
settlement colonies such as Model Town, Rajouri Garden, Krishna Nagar, South Extension,
Greater Kailash, Kailash Colony, and Hauz Khas. DLF builds residential, office, and retail space.
With the passing of the Delhi Development Act in 1957, local government took control of the
development of real estate in Delhi and banned private housing developers. As a result, DLF began
acquiring land at a lower cost compared to the Delhi Development Authority, in the Gurgaon
region, near Haryana. In the mid-1970s, the company began developing their DLF City project in
Gurgaon. Its plans included hotels, infrastructure and special economic related development
projects.
23. Indigo: - InterGlobe Aviation Ltd., doing business like IndiGo, is a cheap Indian airline with
headquarters in Gurgaon, Haryana, India. It is India's largest airline with passenger and shipping
size, with a domestic market share of 53.5% since October 2021. It is also the largest Asian low-
cost airline in terms of airline and portable passengers, and is the sixth largest in Asia with more
than 6.4 crore (64 million) passengers carried in the 2018-19 financial year. The airline has
operated 1,500 daily flights from 2019 to 96 - 71 domestic and 25 international destinations. It has
its headquarters at IGI Airport, Delhi. The airline was founded as a private company by Rahul
Bhatia of InterGlobe Enterprises and Rakesh Gangwal in 2006. It took delivery of its first aircraft
in July 2006 and started operating a month later. The airline became the largest airline in India
with a passenger market share in 2012. The company appeared in public in November 2015.
24. Sun Pharma: - Sun Pharmaceutical Industries Limited (d / b / a Sun Pharma) is an Indian
pharmaceutical company headquartered in Mumbai, Maharashtra, which manufactures and sells
pharmaceutical formulations and active pharmaceutical ingredients (APIs) in more than 100
countries around the world general. It is the largest pharmaceutical company in India and the
fourth largest company in the world, with a total profit of more than US $ 4.5 billion as of June
2021. The products cover a wide range of medical fields including psychiatry, anti-infective,
neurology, cardiology, orthopedic, diabetology, gastroenterology, ophthalmology, nephrology,
urology, dermatology, gynecology, respiratory, oncology, dentistry and diet.
25. Tata Steel: - Tata Steel Limited is an Indian international manufacturing company based in
Jamshedpur, Jharkhand, with its headquarters in Mumbai, Maharashtra, India. It is part of the Tata
Group. Formerly known as Tata Iron and Steel Company Limited (TISCO), Tata Steel is one of
the world's leading steel producers weighing 34 million tons a year of crude steel.
17
26. TCS: - Tata Consultancy Services (TCS) is an Indian information technology (IT) service
company with consulting company headquartered in Mumbai, Maharashtra, India [6] [7] with its
largest campus located in Chennai, Tamil Nadu, in India. As of February 2021, TCS is the world's
largest IT services company with a market capitalization ($ 200 billion). It is part of the Tata
Group and operates in 149 locations in 46 countries.
27. Tech Mahindra: - Tech Mahindra is an Indian information technology company and consulting
company. Part of the Mahindra Group, a company headquartered in Pune and owning Tech
Mahindra is a $ 5.2 billion company with 125,236 employees in 90 countries. The company is
ranked # 5 in Indian IT firms and # 47 in the overall Fortune India 500 list for 2019.
28. Titan: - Titan Company Limited is an Indian luxury Goods Company. Its headquartered in
Bangalore, India. It produces fashion accessories such as jewelry, watches and eyewear. Part of
Tata Group also started as a joint venture with TIDCO, the company has its business headquarters
in Electronic City, Bangalore and a registered office in hosur, Tamil Nadu.
29. Ultratech Cement: - UltraTech Cement Limited is an Indian cement company based in Mumbai,
and is part of the Aditya Birla Group. UltraTech is the largest producer of gray cement, ready-to-
mix concrete (RMC) and white cement in India with a installed capacity of 116.75 million tons per
year. It is the only company in the world capable of carrying more than 100 million tons in one
country, outside of China.
30. Wipro: - Wipro Limited, formerly known as Western Indian Vegetable Products Limited, is an
Indian multinational corporation headquartered in Bangalore, Karnataka, India. Its various
businesses include FMCG, lighting, information technology, and consultation. The Fortune India
500 ranks it as the 29th largest Indian company in terms of revenue. It is also ranked 9th in India's
largest employer with over 221,000 employees
3.2.3 Data Collection:
Data used in this research is secondary data and is of companies listed in Sensex 30 companies like Asian
Paints, TATA Communication, Bajaj Finance, Bajaj Finserv, Bharti Airtel, Dr. Reddy Labs, HCL
Technology, HDFC, DLF, HUL, Indigo Aviation, Gujrat Gas, Infosys, ITC, Dabur, Larsen and Turbo,
M&M, Maruti Suzuki, Nestle, NTPC, Power Grid, Reliance Industries, BPCL, Sun pharma, Tata Steel,
TCS, Tech Mahindra, Titan, Ultratech Cement and Wipro. The financial data has been extracted from
Companies Financial Annual Reports, Thomson Reuters Eikon, National Stock Exchange Website and
Bombay Stock Exchange Website.
18
3.2.4 Tools and Techniques:
Altman Z Score Model: Altman’s Z score is one of the models used for forecasting a firm’s upcoming
bankruptcy. The model was developed by Edward Altman, a financial economist and professor at New
York’s stern school of Business in 1968.
The original Z-score model for manufacturing firms is:
Z= 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 +0.999X5
Where,
X1 = Working Capital / Total assets
This measures liquid assets in relation to the firm’s size. Working capital is a common measure of a
company's liquidity, efficiency, and overall health. Total assets show the overall assets of company
including both short and long-term. The WC/TA ratio is a sign of a company’s liquidity and ability to
meet creditor's short-term obligations.
X2 = Retained earnings / Total assets
X2 measures a firm’s earning power; failure rates are closely related to this ratio.
X3 = EBIT / Total assets
X3 ratio measures operating efficiency separated from leverage effects. This part of the equation
recognizes operating earnings are a key to long-run viability. EBIT to Total Asset measures the operating
efficiency of an organization. The value of this ratio indicates the capacity of the firm to generate
satisfactory earnings to pay off its fixed obligation like interest.
X4 = Market Value of Equity / Total liabilities
This is the ratio of Market value of shareholder’s Equity to total liabilities. This ratio indicates the long-
term financial soundness of the organizations. Having 1:1 equity debt mix is considered as quite good,
whereas excessive debt represents the danger of insolvency.
X5 = Sales / Total assets
This is the standard capital-turnover ratio illustrating the sales generating ability of the assets of a firm. It
refers to the capability of management in dealing with competitive conditions.
19
The zones of Discrimination are:
Z > 2.99 Safe zone
1.81 < Z < 2.99 Grey zone
Z < 1.81 Distress zone
Springate Model :
Springate Score or Springate Model was created by Gordon Springate in the year 1978. The model uses
four financial ratios to predict the failure of the firms or chances to step into bankruptcy. The model was
developed to predict the failure of the firms of after Altman Z score model. The formula for Springate
Score is:
SS = 1.03X1 + 3.07X2 +0.66X3+0.4 X4
X1 = Working Capital/Total Asset
This measures liquid assets in relation to the firm’s size. Working capital is a common measure of a
company's liquidity, efficiency, and overall health. Total assets show the overall assets of company
including both short and long-term. The WC/TA ratio is a sign of a company’s liquidity and ability to
meet creditor's short-term obligations.
X2 = Earnings before Interest and Taxes (EBIT)/ Total Asset
EBIT/ TA ratio measures operating efficiency separated from leverage effects. This part of the equation
recognizes operating earnings are a key to long-run viability. EBIT to Total Asset measures the operating
efficiency of an organization. The value of this ratio indicates the capacity of the firm to generate
satisfactory earnings to pay off its fixed obligation like interest.
X3 = Earnings before Taxes/Current Liabilities
This ratio shows profitability with respect to short term liabilities of the companies and shows that
whether a firms earning is good enough to pay off its current liability creditors.
X4 = Sales/Total Asset
This is the standard capital-turnover ratio illustrating the sales generating ability of the assets of a firm. It
refers to the capability of management in dealing with competitive conditions. If the score of a firm is less
20
than or equal to 0.862, the firm is heading towards failure or bankruptcy and if it is greater than 0.862 we
can say that firm is safe.
SS > 0.862 Healthy
SS < 0.862= Bankrupt
21
CHAPTER 4
DATA ANALYSIS AND
FINDINGS
22
Data Analysis
4.1 Altman Z score
Asian Paints
Years X1 X2 X3 X4 X5 Total Zone

2021 0.367 0.63 0.97 0.19 1.07 3.22 Safe Zone
2020 0.232 0.54 1.08 0.18 1.29 3.33 Safe Zone
2019 0.193 0.48 0.87 0.21 1.21 2.97 Grey Zone
2018 0.217 0.43 0.91 0.20 1.24 3.00 Safe Zone
2017 0.295 0.43 0.95 0.19 1.24 3.04 Safe Zone
Table 4.1 Asian Paints Altman Z score
Interpretation: - This Company has been in safe zone from 2017-2018 and 2020-2021 and in 2019 it has
been in “Grey zone” because it’s score has been between 1.81 to 2.99 as per Altman Z Score.
TATA COMMUNICATION
Year X1 X2 X3 X4 X5 Total Zone

2021 -0.37 0.34 0.27 0.22 0.438 1.23 Distress Zone
2020 -0.12 0.27 0.18 0.23 0.426 0.98 Distress Zone
2019 -0.12 0.29 0.10 0.21 0.427 0.90 Distress Zone
2018 -0.09 0.34 0.18 0.19 0.396 1.03 Distress Zone
2017 -0.09 0.34 0.10 0.18 0.385 0.91 Distress Zone
Table 4.2 TATA Communication Altman z score
Interpretation: - This Company has been in “Distress Zone” since 2017-2021 because its total score has
been less than 1.81. This company has been in alarming stage since 2017 as per Altman Z Score.
23
BAJAJ FINANCE

2021 0.92 0.14 0.13 0.44 0.168 1.81 Distress Zone
2020 0.84 0.10 0.16 0.46 0.171 1.75 Distress Zone
2019 1.15 0.10 0.18 0.49 0.159 2.09 Grey Zone
2018 0.20 0.08 0.16 0.48 0.146 1.07 Distress Zone
2017 0.19 0.08 0.15 0.51 0.145 1.07 Distress Zone
Table 4.3 Bajaj Finance Altman Z score
Interpretation: - This Company has been in “Distress Zone” from 2017-2018 and 2020-2021 and in 2019
company is in Grey Zone because its total score has been less than 1.81. This company has been in
alarming stage since 2017 as per Altman Z Score.
BAJAJ FINSERV

2021 1.24 0.61 0.21 0.01 0.83 2.03 Grey Zone
2020 1.12 0.58 0.63 0.01 0.21 2.56 Grey Zone
2019 0.32 0.41 0.33 0.01 0.13 1.21 Distress Zone
2018 0.28 0.32 0.19 0.01 0.08 0.89 Distress Zone
2017 0.08 0.25 0.12 0.01 0.05 0.52 Distress zone
Table 4.4 Bajaj Finserv Altman Z score
Interpretation: - This Company has been in “Distress Zone” from 2017-2019 after that company is in
Grey Zone because its total score has been between 1.81 to 2.99. This company has been in Growth stage
since 2020 as per Altman Z Score.
24
BHARTI AIRTEL

2021 -0.13 -0.02 0.36 0.04 0.23 0.48 Distress zone
2020 -0.01 0.01 0.02 0.00 0.01 0.04 Distress zone
2019 -0.21 0.27 0.19 0.03 0.22 0.50 Distress zone
2018 -0.16 0.58 0.29 0.03 0.26 1.00 Distress zone
2017 -0.10 0.61 0.42 0.03 0.32 1.27 Distress zone
Table 4.5 Bharti Airtel Altman Z score
Dr. REDDYS LAB

2021 0.35 9.15 0.47 0.13 0.61 10.71 Safe Zone
2020 0.36 8.98 0.47 0.13 0.60 10.56 Safe Zone
2019 0.43 8.57 0.35 0.13 0.65 10.13 Safe Zone
2018 0.30 7.43 0.13 0.19 0.54 8.60 Safe Zone
2017 0.31 7.58 0.31 0.18 0.58 8.97 Safe Zone
Table 4.6 Dr. Reddy Lab Altman Z score
Interpretation: - This Company has been in “Safe Zone” since 2017-2021 because its total score has been
more than 2.99. This company has been in Growing stage since 2017 as per Altman Z Score.
25
HCL TECHNOLOGIES

2021 0.38 1.04 0.74 0.13 0.64 2.93 Grey Zone
2020 0.21 0.95 0.69 0.18 0.60 2.65 Grey Zone
2019 0.39 1.10 0.87 0.11 0.69 3.18 Safe Zone
2018 0.39 1.04 0.92 0.10 0.67 3.12 Safe Zone
2017 0.45 0.83 0.84 0.12 0.59 2.84 Grey Zone
Table 4.7 HCL Technologies Altman Z score
Interpretation: - This Company has been in “Grey Zone” from 2017 and 2020-2021 and in between
2018-2019company is in “Safe Zone” because its total score has been between 1.81 to 2.99. This company
has been in neutral stage since 2017 as per Altman Z Score.
HDFC

2021 0.93 0.04 0.09 0.49 0.08 1.63 Distress Zone
2020 0.90 0.04 0.13 0.50 0.11 1.69 Distress Zone
2019 0.94 0.04 0.09 0.50 0.09 1.67 Distress Zone
2018 1.00 0.03 0.11 0.50 0.10 1.74 Distress Zone
2017 -0.32 0.03 0.10 0.53 0.09 0.43 Distress Zone
Table 4.8 HDFC Altman Z score
26
DLF

2021 0.10 -1.83 0.12 0.19 0.09 -1.33 Distress Zone
2020 0.26 -4.95 0.18 0.22 0.05 -4.23 Distress Zone
2019 0.29 -11.3 0.07 0.23 0.08 -10.7 Distress Zone
2018 0.38 1.64 0.07 0.17 0.08 2.35 Grey Zone
2017 0.22 3.09 0.11 0.29 0.12 3.84 Safe Zone
Table 4.9 DLF Altman Z score
Interpretation: - This Company has been in “Distress Zone” from 2019-2021 and in 2017 company is in
safe zone also in 2018 company is in Grey Zone. This company growth has been declining from 2017 as
per Altman Z Score.
HUL

2021 0.04 0.14 0.52 0.18 0.66 1.56 Safe Zone
2020 0.17 0.55 1.56 0.35 1.95 4.59 Distress Zone
2019 0.20 0.57 1.62 0.34 2.10 4.84 Distress Zone
2018 0.17 0.37 1.41 0.35 2.01 4.33 Distress Zone
2017 0.19 0.38 1.38 0.34 2.29 4.58 Distress Zone
Table 4.10 HUL Altman Z score
Interpretation: - This Company has been in “Distress Zone” in 2021 but from 2017-2020 company is in
safe zone.
27
INDIGO

2021 0.00 -0.14 -0.05 0.06 0.03 -0.09 Distress Zone
2020 0.17 0.53 -0.02 0.52 0.84 2.04 Grey Zone
2019 0.48 1.51 -0.02 0.43 1.12 3.54 Safe Zone
2018 0.48 1.87 0.49 0.40 1.06 4.31 Safe Zone
2017 0.36 1.90 0.47 0.45 1.21 4.39 Safe Zone
Table 4.11 Indigo Altman z score
Interpretation: - This Company has been in “Distress Zone” in 2021. In 2020 company is in Grey Zone
and from 2017-2019 company is in safe zone. This company growth has been declining since 2020 as per
Altman Z Score
GUJRAT GAS

2021 -0.11 0.21 0.67 0.28 1.18 2.23 Grey Zone
2020 -0.05 0.21 0.50 0.35 1.32 2.34 Grey Zone
2019 -0.10 0.08 0.28 0.42 1.11 1.79 Distress Zone
2018 -0.14 0.06 0.23 0.43 0.94 1.53 Distress Zone
2017 -0.16 0.05 0.16 0.44 0.81 1.30 Distress Zone
Table 4.12 Gujrat Gas Altman Z score
Interpretation: - This Company has been in “Distress Zone” since 2017-2019 after that from 2020-2021
company is in grey zone. This company started growing from 2020.
28
INFOSYS

2021 0.39 0.86 0.86 0.14 0.91 3.17 Safe Zone
2020 0.42 0.91 0.83 0.14 0.97 3.28 Safe Zone
2019 0.46 0.96 0.83 0.12 0.92 3.31 Safe Zone
2018 0.51 1.03 0.87 0.10 0.81 3.32 Safe Zone
2017 0.53 0.78 0.78 0.09 0.74 2.94 Grey Zone
Table 4.13 Infosys Altman Z score
more than 2.99.
ITC

2021 0.36 0.55 0.79 0.11 0.67 2.48 Grey Zone
2020 0.43 0.50 0.85 0.09 0.61 2.49 Grey Zone
2019 0.34 0.67 0.87 0.10 0.64 2.64 Grey Zone
2018 0.30 0.49 0.87 0.11 0.70 2.47 Grey Zone
2017 0.39 0.45 0.94 0.10 1.01 2.90 Grey Zone
Table 4.14 ITC Altman Z score
Interpretation: - This Company has been in “Grey Zone” since 2017-2021 because its total score has
been between 1.81 to 2.99. This company has been in neutral stage since 2017 as per Altman Z Score.
29
DABUR

2021 0.12 0.78 0.74 0.17 0.95 2.77 Grey Zone
2020 0.35 0.78 0.76 0.15 1.02 3.07 Safe Zone
2019 0.13 0.72 0.89 0.17 1.10 3.02 Safe Zone
2018 0.14 0.77 0.78 0.16 0.95 2.82 Grey Zone
2017 0.13 0.70 0.82 0.18 1.02 2.85 Grey Zone
Table 4.15 Dabur Altman Z score
Interpretation: - This Company has been in “Grey Zone” and “Safe Zone” since 2017-2021.
L&T

2021 0.26 0.23 0.16 0.36 0.48 1.50 Distress Zone
2020 0.17 0.17 0.15 0.38 0.57 1.39 Distress Zone
2019 0.20 0.17 0.20 0.36 0.65 1.58 Distress Zone
2018 0.19 0.17 0.20 0.34 0.63 1.55 Distress Zone
2017 0.25 0.15 0.19 0.33 0.63 1.57 Distress Zone
Table 4.16 L&T Altman Z score
30
M&M

2021 0.10 0.68 0.28 0.25 0.74 2.07 Grey Zone
2020 0.09 0.81 0.34 0.19 0.88 2.32 Grey Zone
2019 0.08 0.77 0.40 0.21 1.00 2.47 Grey Zone
2018 0.07 0.74 0.39 0.22 1.01 2.45 Grey Zone
2017 0.08 0.76 0.34 0.20 1.08 2.48 Grey Zone
Table 4.17 M&M Altman Z score
Interpretation: - This Company has been in “Grey Zone” since 2017-2021 because its total score has
been between 1.81 to 2.99. This company has been in neutral stage since 2017 as per Altman Z Score.
MARUTI SUZUKI

2021 0.04 9.11 0.24 0.16 0.94 10.50 Safe Zone
2020 -0.05 9.68 0.37 0.14 1.14 11.28 Safe Zone
2019 -0.03 9.05 0.55 0.16 1.31 11.05 Safe Zone
2018 -0.15 8.56 0.61 0.18 1.31 10.51 Safe Zone
2017 -0.10 8.56 0.64 0.17 1.30 10.57 Safe Zone
Table 4.18 Maruti Suzuki Altman Z score
more than 2.99. This company has been in growth stage since 2017 as per Altman Z Score.
31
NESTLE

2021 0.01 1.91 1.25 0.45 1.78 5.41 Safe Zone
2020 0.25 1.80 1.80 0.45 1.68 5.36 Safe Zone
2019 0.27 5.40 5.40 0.40 1.71 9.06 Safe Zone
2018 0.42 4.34 4.34 0.33 1.38 7.47 Safe Zone
2017 0.39 4.50 4.50 0.32 1.35 7.40 Safe Zone
Table 4.19 Nestle Altman Z score
NTPC

2021 -0.00 0.02 0.15 0.39 0.28 0.85 Distress Zone
2020 0.00 0.02 0.15 0.39 0.29 0.85 Distress zone
2019 -0.04 0.01 0.14 0.38 0.30 0.80 Distress Zone
2018 -0.03 0.01 0.16 0.37 0.31 0.82 Distress Zone
2017 -0.05 0.01 0.18 0.36 0.32 0.83 Distress Zone
Table 4.20 NTPC Altman Z score
32
POWER GRID

2021 -0.01 0.02 0.20 0.44 0.14 0.79 Distress Zone
2020 -0.05 0.02 0.16 0.45 0.13 0.71 Distress Zone
2019 -0.07 0.01 0.15 0.46 0.13 0.68 Distress Zone
2018 -0.01 0.02 0.16 0.45 0.13 0.65 Distress Zone
2017 -0.11 0.02 0.16 0.45 0.13 0.65 Distress Zone
Table 4.21 Power Grid Altman Z score
RELIANCE IND.

2021 0.01 0.02 0.09 0.27 0.28 0.68 Distress Zone
2020 -0.20 0.04 0.15 0.36 0.34 0.69 Distress Zone
2019 -0.07 0.05 0.20 0.29 0.47 0.95 Distress Zone
2018 -0.12 0.07 0.24 0.29 0.46 0.95 Distress Zone
2017 -0.10 0.08 0.25 0.28 0.44 0.95 Distress Zone
Table 4.22 Reliance Ind. Altman Z score
33
BPCL

2021 -0.03 0.16 0.38 0.37 2.13 3.01 Safe Zone
2020 -0.17 0.02 0.10 0.44 2.58 2.97 Grey Zone
2019 -0.00 0.06 0.30 0.41 2.90 3.67 Safe Zone
2018 -0.09 0.07 0.37 0.40 2.76 3.51 Safe Zone
2017 -0.12 0.08 0.40 0.41 2.62 3.39 Safe Zone
Table 4.23 BPCL Altman Z score
Interpretation: - This Company has been in “Grey Zone” and “Safe Zone” since 2017-2021
SUN PHARMA

2021 0.11 5023 0.19 0.21 0.32 6.08 Safe Zone
2020 0.02 5.10 0.28 0.22 0.30 5.94 Safe Zone
2019 -0.06 4.60 0.17 0.24 0.25 5.20 Safe Zone
2018 -0.09 4.28 0.11 0.24 0.23 4.76 Safe Zone
2017 -0.16 5.16 0.00 0.23 0.21 5.44 Safe Zone
Table 4.24 Sun Pharma Altman Z score
34
TATA STEEL

2021 -0.04 -24.5 0.30 0.27 0.38 -23.6 Distress Zone
2020 -0.08 -29.2 0.18 0.29 0.39 -28.4 Distress Zone
2019 -0.07 -31.3 0.39 0.28 0.50 -30.2 Distress Zone
2018 -0.08 -36.3 0.26 0.29 0.46 -35.2 Distress Zone
2017 -0.03 -9.63 0.18 0.32 0.42 -8.74 Distress Zone
Table 4.25 TATA Steel Altman Z score
TCS

2021 0.59 0.91 1.27 0.19 1.24 4.21 Safe Zone
2020 0.63 0.95 1.32 0.17 1.25 4.33 Safe Zone
2019 0.72 1.09 1.35 0.12 1.23 4.52 Safe Zone
2018 0.71 1.14 1.16 0.10 1.06 4.18 Safe Zone
2017 0.77 1.03 1.11 0.08 1.03 4.02 Safe Zone
Table 4.26 TCS Altman Z score
35
TECH MAHINDRA

2021 0.50 8.43 0.55 0.13 0.88 10.49 Safe Zone
2020 0.48 8.50 0.58 0.13 0.96 10.66 Safe Zone
2019 0.39 7.93 0.59 0.17 0.89 9.99 Safe Zone
2018 0.41 7.86 0.60 0.13 0.88 9.90 Safe Zone
2017 0.42 7.13 0.54 0.14 0.97 9.21 Safe Zone
Table 4.27 Tech Mahindra Altman Z score
TITAN

2021 0.40 0.38 0.29 0.31 1.20 2.58 Grey Zone
2020 0.39 0.40 0.53 0.29 1.49 3.10 Safe Zone
2019 0.40 0.44 0.57 0.28 1.64 3.35 Safe Zone
2018 0.40 0.43 0.58 0.27 1.64 3.33 Safe Zone
2017 0.40 0.32 0.45 0.29 1.54 3.00 Safe Zone
Table 4.28 Titan Altman Z score
Interpretation: - This Company has been in “Safe Zone” from 2017-2020 and in 2021 company is in
Grey Zone.
36
ULTRATECH CEMENT

2021 0.05 0.10 0.33 0.28 0.53 1.29 Distress Zone
2020 0.00 0.10 0.24 0.28 0.55 1.19 Distress Zone
2019 -0.03 0.11 0.17 0.31 0.56 1.12 Distress Zone
2018 -0.01 0.13 0.21 0.31 0.54 1.19 Distress Zone
2017 0.13 0.17 0.32 0.23 0.60 1.46 Distress Zone
Table 4.29 Ultratech Cement Altman Z score
WIPRO

2021 0.49 8.24 0.64 0.19 0.76 10.33 Safe Zone
2020 0.53 8.66 0.56 0.17 0.77 10.69 Safe Zone
2019 0.56 9.28 0.49 0.16 0.71 11.20 Safe Zone
2018 0.57 9.73 0.56 0.17 0.76 11.79 Safe Zone
2017 0.66 9.93 0.56 0.16 0.72 12.03 Safe Zone
Table 4.30 Wipro Altman Z score
37
4.2 SPRINGATE SCORE
ASIAN PAINTS
Years X1 X2 X3 X4 TOTAL ZONE

2021 0.32 0.90 0.74 0.42 2.39 Healthy
2020 0.20 1.01 0.92 0.51 2.65 Healthy
2019 0.17 0.80 0.62 0.48 2.08 Healthy
2018 0.19 0.85 0.62 0.49 2.15 Healthy
2017 0.25 0.88 0.68 0.50 2.32 Healthy
Table 4.31 Asian Paints Springate Model
Interpretation: - This Company has been in “Healthy Zone” since 2017-2021 because its total score has
been more than 0.862. This company has been in growth stage since 2017 as per Springate Score.
TATA COMMUNICATION

2021 -0.03 0.25 0.22 0.17 0.62 Bankrupt
2020 -0.11 0.16 0.11 0.17 0.34 Bankrupt
2019 -0.11 0.10 0.07 0.17 0.22 Bankrupt
2018 -0.08 0.17 0.15 0.15 0.40 Bankrupt
2017 -0.08 0.09 0.08 0.15 0.25 Bankrupt
Table 4.32 TATA Communication Springate model
Interpretation: - This Company has been in “Bankrupt Zone” since 2017-2021 because its total score has
been less than 0.862. This company has been in growth stage since 2017 as per Springate Score
38
BAJAJ FINANCE

2021 0.80 0.12 0.12 0.06 1.11 Healthy
2020 0.73 0.15 0.12 0.06 1.06 Healthy
2019 0.99 0.17 1.83 0.06 3.06 Healthy
2018 0.17 0.15 0.12 0.05 0.50 Bankrupt
2017 0.17 0.14 0.10 0.05 0.46 Bankrupt
Table 4.33 Bajaj Finance Springate model
Interpretation: - This Company has been in “Healthy Zone” and “Bankrupt” in 2017-2021.
BAJAJ FINSERV

2021 0.96 0.19 4.74 0.03 5.94 Healthy
2020 0.96 0.58 13.00 0.08 14.63 Healthy
2019 0.28 0.31 7.39 0.05 8.03 Healthy
2018 0.24 0.18 7.17 0.03 7.62 Healthy
2017 0.07 0.11 2.36 0.02 2.56 Healthy
Table 4.34 Bajaj Finserv Springate model
BHARTI AIRTEL

2021 -0.12 0.34 2.81 0.09 3.12 Healthy
2020 -0.01 0.02 1.58 0.00 1.60 Healthy
2019 -0.18 0.18 1.39 0.08 1.47 Healthy
2018 -0.14 0.27 2.74 0.10 2.97 Healthy
2017 -0.09 0.39 4.44 0.13 4.87 Healthy
Table 4.35 Bharti Airtel Springate model
39
DR. REDDYS LAB

2021 0.30 0.43 0.44 0.24 1.43 Healthy
2020 0.31 0.44 0.44 0.24 1.43 Healthy
2019 0.37 0.32 0.36 0.26 1.32 Healthy
2018 0.26 0.13 0.10 0.21 0.70 Bankrupt
2017 0.27 0.29 0.24 0.23 1.03 Healthy
Table 4.36 Dr. Reddy Lab Springate model
HCL TECHNOLOGY

2021 0.33 0.69 0.82 0.25 2.09 Healthy
2020 0.18 0.64 0.53 0.24 1.60 Healthy
2019 0.34 0.81 1.03 0.27 2.46 Healthy
2018 0.34 0.85 1.28 0.26 2.74 Healthy
2017 0.39 0.78 0.92 0.23 2.34 Healthy
Table 4.37 HCL Technologies springate model
HDFC

2021 0.80 0.08 0.08 0.03 1.00 Healthy
2020 0.78 0.12 0.11 0.04 1.05 Healthy
2019 0.81 0.09 0.09 0.03 1.03 Healthy
2018 0.86 0.10 0.15 0.04 1.15 Healthy
2017 -0.28 0.10 0.05 0.03 -0.10 Bankrupt
Table 4.38 HDFC Springate model
Interpretation: - This Company has been in “Healthy Zone” and “Bankrupt” in 2017-2021
40
DLF

2021 0.09 0.11 0.10 0.03 0.34 Bankrupt
2020 0.23 0.17 0.13 0.02 0.54 Bankrupt
2019 0.25 0.06 0.05 0.03 0.40 Bankrupt
2018 0.33 0.06 0.08 0.03 0.51 Bankrupt
2017 0.20 0.10 0.07 0.04 0.42 Bankrupt
Table 4.39 DLF springate model
been less than 0.862. This company has been in growth stage since 2017 as per Springate Score.
HUL

2021 0.04 0.48 0.65 0.26 1.44 Healthy
2020 0.15 1.45 0.67 0.78 3.06 Healthy
2019 0.17 1.50 0.69 0.84 3.21 Healthy
2018 0.15 1.32 0.56 0.80 2.83 Healthy
2017 0.17 1.28 0.56 0.91 2.93 Healthy
Table 4.40 HUL springate model
INDIGO

2021 0.00 -0.04 -0.20 0.01 -0.23 Bankrupt
2020 0.15 -0.02 -0.01 0.33 0.45 Bankrupt
2019 0.42 -0.02 -0.01 0.45 0.84 Bankrupt
2018 0.41 0.45 0.34 0.42 1.63 Healthy
2017 0.32 0.43 0.30 0.48 1.53 Healthy
Table 4.41 Indigo Springate model
41
GUJRAT GAS

2021 -0.10 0.62 0.51 0.47 1.50 Healthy
2020 -0.05 0.47 0.44 0.53 1.39 Healthy
2019 -0.09 0.26 0.24 0.44 0.86 Healthy
2018 -0.12 0.21 0.20 0.37 0.68 Bankrupt
2017 -0.14 0.15 0.14 0.32 0.48 Bankrupt
Table 4.42 Gujrat Gas springate model
INFOSYS

2021 0.34 0.80 0.92 0.36 2.42 Healthy
2020 0.36 0.78 0.89 0.39 2.42 Healthy
2019 0.40 0.78 0.85 0.37 2.40 Healthy
2018 0.44 0.81 1.13 0.32 2.70 Healthy
2017 0.46 0.73 1.06 0.29 2.55 Healthy
Table 4.43 Infosys springate model
ITC

2021 0.31 0.74 1.11 0.26 2.43 Healthy
2020 0.38 0.79 1.40 0.24 2.81 Healthy
2019 0.29 0.81 1.27 0.25 2.63 Healthy
2018 0.26 0.81 1.23 0.28 2.57 Healthy
2017 0.34 0.88 1.50 0.40 3.12 Healthy
Table 4.44 ITC springate model
been more than 0.862. This company has been in growth stage since 2017 as per Springate Score
42
DABUR

2021 0.11 0.69 0.55 0.38 1.72 Healthy
2020 0.31 0.71 0.64 0.40 2.07 Healthy
2019 0.11 0.83 0.65 0.44 2.04 Healthy
2018 0.13 0.73 0.73 0.38 1.97 Healthy
2017 0.11 0.76 0.71 0.41 1.99 Healthy
Table 4.45 Dabur springate model
L&T

2021 0.23 0.15 0.07 0.19 0.64 Bankrupt
2020 0.10 0.14 0.05 0.23 0.52 Bankrupt
2019 0.17 0.19 0.07 0.26 0.69 Bankrupt
2018 0.17 0.18 0.07 0.25 0.68 Bankrupt
2017 0.22 0.18 0.08 0.25 0.73 Bankrupt
Table 4.46 L&T springate model
M&M

2021 0.09 0.26 0.22 0.29 0.87 Healthy
2020 0.09 0.31 0.31 0.35 1.06 Healthy
2019 0.07 0.37 0.29 0.40 1.14 Healthy
2018 0.07 0.37 0.28 0.40 1.12 Healthy
2017 0.08 0.32 0.29 0.43 1.12 Healthy
Table 4.47 M&M springate model
43
MARUTI SUZUKI

2021 0.04 0.23 0.21 0.37 0.85 Healthy
2020 -0.05 0.35 0.41 0.45 1.17 Healthy
2019 -0.03 0.51 0.49 0.52 1.50 Healthy
2018 -0.13 0.57 0.47 0.52 1.44 Healthy
2017 -0.09 0.60 0.50 0.52 1.53 Healthy
Table 4.48 Maruti Suzuki springate model
NESTLE

2021 0.02 1.17 0.79 0.71 2.69 Healthy
2020 0.22 1.09 0.74 0.67 2.73 Healthy
2019 0.23 1.14 0.81 0.68 2.87 Healthy
2018 0.37 0.92 0.86 0.55 2.71 Healthy
2017 0.34 0.77 0.81 0.54 2.46 Healthy
Table 4.49 Nestle springate model
44
NTPC

2021 -0.01 0.14 0.17 0.11 0.41 Bankrupt
2020 0.00 0.14 0.17 0.11 0.42 Bankrupt
2019 -0.04 0.13 0.15 0.12 0.36 Bankrupt
2018 -0.03 0.15 0.18 0.12 0.42 Bankrupt
2017 -0.04 0.17 0.22 0.13 0.47 Bankrupt
Table 4.50 NTPC springate model
POWER GRID

2021 -0.02 0.19 0.26 0.05 0.50 Bankrupt
2020 -0.05 0.15 0.21 0.05 0.37 Bankrupt
2019 -0.07 0.14 0.18 0.05 0.32 Bankrupt
2018 -0.09 0.15 0.21 0.05 0.32 Bankrupt
2017 -0.10 0.15 0.21 0.05 0.32 Bankrupt
Table 4.51 Power Grid springate model
45
RELIANCE IND.

2021 0.01 0.08 0.07 0.11 0.28 Bankrupt
2020 -0.17 0.14 0.09 0.13 0.19 Bankrupt
2019 -0.07 0.19 0.15 0.19 0.47 Bankrupt
2018 -0.11 0.23 0.16 0.18 0.46 Bankrupt
2017 -0.09 0.23 0.18 0.17 0.49 Bankrupt
Table 4.52 Reliance Ind. Springate model
BPCL

2021 -0.03 0.35 0.19 0.85 1.38 Healthy
2020 -0.15 0.09 0.04 1.03 1.02 Healthy
2019 -0.01 0.28 0.15 1.16 1.58 Healthy
2018 -0.08 0.35 0.17 1.10 1.54 Healthy
2017 -0.10 0.37 0.17 1.05 1.48 Healthy
Table 4.53 BPCL springate model
SUN PHARMA

2021 0.10 0.18 0.18 0.12 0.58 Bankrupt
2020 0.02 0.26 0.19 0.12 0.60 Bankrupt
2019 -0.06 0.16 0.10 0.10 0.30 Bankrupt
2018 -0.08 0.10 0.06 0.09 0.18 Bankrupt
2017 -0.14 0.00 0.00 0.08 -0.05 Bankrupt
Table 4.54 Sun pharma springate model
46
been less than 0.862. This company has been in growth stage since 2017 as per Springate Score
TATA STEEL

2021 -0.03 0.28 0.34 0.15 0.74 Bankrupt
2020 -0.07 0.17 0.18 0.15 0.43 Bankrupt
2019 -0.06 0.36 0.42 0.20 0.92 Healthy
2018 0.07 0.25 0.26 0.18 0.76 Bankrupt
2017 -0.03 0.17 0.17 0.16 0.48 Bankrupt
Table 4.55 TATA Steel springate model
TCS

2021 0.51 1.18 0.97 0.79 3.17 Healthy
2020 0.54 1.23 1.15 0.50 3.42 Healthy
2019 0.62 1.26 1.42 0.49 3.80 Healthy
2018 0.61 1.08 1.50 0.42 3.62 Healthy
2017 0.66 1.03 1.85 0.41 3.96 Healthy
Table 4.56 TCS springate model
been more than 0.862. This company has been in growth stage since 2017 as per Springate Score
47
TECH MAHINDRA

2021 0.43 0.51 0.61 0.35 1.91 Healthy
2020 0.42 0.54 0.62 0.38 1.96 Healthy
2019 0.34 0.55 0.46 0.35 1.71 Healthy
2018 0.36 0.56 0.64 0.35 1.92 Healthy
2017 0.37 0.50 0.55 0.48 1.80 Healthy
Table 4.57 Tech Mahindra springate model
TITAN

2021 0.34 0.27 0.13 0.48 1.22 Healthy
2020 0.34 0.49 0.26 0.59 1.69 Healthy
2019 0.35 0.53 0.26 0.65 1.80 Healthy
2018 0.35 0.54 0.27 0.65 1.82 Healthy
2017 0.35 0.42 0.19 0.61 1.57 Healthy
Table 4.58 Titan springate model
ULTRATECH CEMENT

2021 0.04 0.31 0.27 0.21 0.84 Bankrupt
2020 0.01 0.22 0.24 0.22 0.69 Bankrupt
2019 -0.03 0.16 0.16 0.22 0.52 Bankrupt
2018 -0.01 0.20 0.21 0.21 0.62 Bankrupt
2017 0.12 0.30 0.31 0.24 0.96 Healthy
Table 4.59 Ultratech Cement springate model
48
WIPRO

2021 0.43 0.59 0.46 0.30 1.79 Healthy
2020 0.46 0.52 0.44 0.30 1.73 Healthy
2019 0.49 0.45 0.40 0.28 1.63 Healthy
2018 0.49 0.53 0.44 0.30 1.76 Healthy
2017 0.57 0.52 0.51 0.28 1.89 Healthy
Table 4.60 wipro springate model
49
FINDINGS
1. According to Altman Z score in 2021 Asian Paints, Dr. Reddy Lab, Infosys, Maruti Suzuki, Nestle,
BPCL, Sun Pharna, TCS, Tech Mahindra and Wipro are the companies which come under in safe
zone i.e., Alaman z score is greater than 2.99
2. According to Altman Z score in 2020 Asian Paints, Dr. Reddys Lab, HUL, Infosys, Dabur, Maruti
Suzuki, Nestle, Sun Pharma, TCS, Tech Mahindra, Titan and Wipro are the companies which
come under in safe zone.
3. According to Altman z score in 2019 Dr. Reddy lab, HCL Technologies, HUL, Indigo, Infosys,
Dabur, Maruti Suzuki, Nestle, BPCL, Sun Pharma, TCS, Tech Mahindra, Titan and Wipro are
three companies which come under in safe zone.
4. According to Altman z score in 2018 Asian Paints, Dr. Reddy Lab, HCL Technologies, HUL,
Indigo, Infosys, Maruti Suzuki, Nestle, BPCL, Sun Pharma, TCS, Tech Mahindra, Titan and
Wipro are three companies which come under in safe zone.
5. According to Altman z score in 2017 Asian Paints, Dr. Reddy Lab, DLF, HUL, Indigo, Infosys,
Maruti Suzuki, Nestle, BPCL, Sun Pharma, TCS, Tech Mahindra, Titan and Wipro are three
companies which come under in safe zone.
6. According to Altman z score in 2021 Bajaj Finserv, HCL Technologies, Gujrat Gas, ITC, Dabur,
M&M and Titan are the companies which come under in Grey Zone i.e., z score between 1.81 to
2.99.
7. According to Altman z score in 2020 Bajaj Finserv, HCL Technologies, Indigo, Gujrat Gas, ITC,
M&M and BPCL are the companies which come under in Grey Zone i.e., z score between 1.81 to
2.99.
8. According to Altman z score in 2019 Asian Paints, Bajaj Finance, ITC and M&M are the
companies which come under in Grey Zone.
9. According to Altman z score in 2018 DLF, ITC, Dabur and M&M are the companies which come
under in Grey Zone.
10. According to Altman z score in 2017 HCL Technologies, Infosys, ITC, Dabur and M&M are the
companies which come under in Grey Zone.
11. According to Altman z score in 2021 TATA Communication, Bajaj Finance, Bharti Airtel, HDFC,
DLF, HUL, Indigo, L&T, NTPC, Power Grid, Reliance Ind., TATA Steel and Ultratech Cement
are the companies which come under in Distress Zone i.e., z score is less than 1.81.
50
DLF, L&T, NTPC, Power Grid, Reliance Ind., TATA Steel and Ultratech Cement are the
companies which come under in Distress Zone i.e., z score is less than 1.81
DLF, Gujrat Gas, L&T, NTPC, Power Grid, Reliance Ind., TATA Steel and Ultratech Cement are
the companies which come under in Distress Zone i.e., z score is less than 1.81
14. According to Altman z score in 2018 TATA Communication, Bajaj Finance, Bajaj Finserv, Bharti
Airtel, HDFC, Gujrat Gas, L&T, NTPC, Power Grid, Reliance Ind., TATA Steel and Ultratech
Cement are the companies which come under in Distress Zone i.e., z score is less than 1.81
15. According to Altman z score in 2017 TATA Communication, Bajaj Finance, Bajaj Finserv, Bharti
Airtel, HDFC, Gujrat Gas, L&T, NTPC, Power Grid, Reliance Ind., TATA Steel and Ultratech
Cement are the companies which come under in Distress Zone i.e., z score is less than 1.81
16. According to Springate Score in 2021 TATA Communication, Bajaj Finance, Bharti Airtel,
HDFC, DLF, HUL, Indigo, L&T, NTPC, Power Grid, Reliance Ind., TATA Steel and Ultratech
Cement are the companies which come under in healthy zone i.e., score is more than 0.862.
17. According to Springate Score in 2020 TATA Communication, Bajaj Finance, Bharti Airtel,
HDFC, DLF, L&T, NTPC, Power Grid, Reliance Ind., TATA Steel and Ultratech Cement are the
companies which come under in healthy zone i.e., score is less than 0.862.
18. According to Springate Score in 2019 TATA Communication, Bajaj Finserv, Bharti Airtel, HDFC,
DLF, Gujrat Gas, L&T, NTPC, Power Grid, Reliance Ind., TATA Steel and Ultratech Cement are
the companies which come under in healthy zone i.e., score is more than 0.862.
19. According to Springate Score in 2018 Asian Paints, Bajaj Finserv, Bharti Airtel, HCL
Technologies, HDFC, HUL, Indigo, Infosys, ITC, Dabur, M&M, Maruti Suzuki, Nestle, BPCL,
TCS, Tech Mahindra, Titan and Wipro are the companies which come under in healthy zone i.e., z
score is more than 0.862.
20. According to Springate Score in 2017 Asian Paints, Bajaj Finserv, Bharti Airtel, Dr. Reddys Lab,
HCL Technologies, HUL, Indigo, Infosys, itc, Dabur, M&M, Maruti Suzuki, Nestle, BPCL, TCS,
Tech Mahindra, Titan, Ultratech Cement and Wipro are the companies which come under in
healthy zone i.e., score is more than 0.862.
21. According to Springate Score in 2021 TATA Communication, DLF, Indigo, L&T, Maruti Suzuki,
NTPC, Power Grid, Reliance Ind., Sun Pharma, TATA Steel and Ultratech Cement are the
companies which come under in bankrupt zone i.e., score is less than 0.862.
51
22. According to Springate Score in 2020 TATA Communication, DLF, Indigo, L&T, NTPC, Power
Grid, Reliance Ind., Sun Pharma, TATA Steel and Ultratech Cement are the companies which
come under in bankrupt zone i.e., score is less than 0.862.
23. According to Springate Score in 2019 TATA Communication, DLF, Indigo, Gujrat Gas, L&T,
NTPC, Power Grid, Reliance Ind., Sun Pharma and Ultratech Cement are the companies which
come under in bankrupt zone i.e., score is less than 0.862.
24. According to Springate Score in 2018 TATA Communication, Bajaj Finance, Dr. Reddy Lab,
DLF, Gujrat Gas, L&T, NTPC, Power Grid, Reliance Ind., Sun Pharma, TATA Steel and Ultratech
Cement are the companies which come under in bankrupt zone i.e., score is less than 0.862.
25. According to Springate Score in 2017 TATA Communication, HDFC, DLF, Gujrat Gas, L&T,
NTPC, Power Grid, Reliance Ind., Sun Pharma and TATA Steel are the companies which come
under in bankrupt zone i.e., score is less than 0.862.
52
CHAPTER 5
CONCLUSION
53
CONCLUSION
According to the data analysis and findings I would like to conclude that:-
1. In both the model Maruti Suzuki, Nestle, BPCL, TCS, Tech Mahindra and Wipro are the
companies which are in safe zone and healthy.
2. There are some companies who are in growing stages from 4 and 3 years like Infosys, titan, indigo
and Asian Paints. In this stage we have to wait for one more year if that year company is in
growing stage.
54
CHAPTER 6
RECOMMENDATION
55
Recommendation
1. In both the model Maruti Suzuki, Nestle, BPCL, TCS, Tech Mahindra and Wipro are the
companies which are in safe zone and healthy and we should invest in these companies.
2. There are some companies who are in growing stages from 4 and 3 years like Infosys, titan, indigo
and Asian Paints. In this stage we have to wait for one more year if that year company is in
growing stage. At this situation we have wait for next year if that companies are in growing that
state then we will invest in next year.
56
CHAPTER 7
LIMITATIONS AND FUTURE
SCOPE
57
Limitations
Following are the limitations of this research paper are: -
1. Banks are not included.

2. People don’t have the knowledge.
Future Scope
Through this research paper people can take the decisions in which company they can invest.
58
References
AlAli, Musaed & Alshamali, Mansour & Alawadhi, Khuloud & AlSabah, AlDana. (2018). The
use of Zmijewski Model in Examining the Financial Soundness of Oil and Gas Companies Listed
at Kuwait Stock Exchange. 1. 15-21.
Altman, E.I. (1968) Financial Ratios, Discriminant Analysis and the Prediction of Corporate
Bankruptcy. Journal of Finance, 23 (4), 589-609.
Babatunde, A. A., Akeju, J. B., & Malomo, E. (2017). The effectiveness of Altman’s Z-Score in
predicting bankruptcy of quoted manufacturing companies in Nigeria. European Journal of
Business, Economics and Accountancy, 5(5), 74-83.
Hayes, S. , Hodge, K. & Hughes, L.W. (2010) A Study of the Efficacy of Altman’s Z-Score to
Predict Bankruptcy of Specialty Retail Firms doing Business in Contemporary Times. Economic
and Business Journal: Inquiries and Perspectives, 3 (1).
Jr, Joseph. (2007). Considering the Utility of Altman's Z-Score as a Strategic Assessment and
Performance Management Tool. Strategy & Leadership. 35. 10.1108/10878570710819206.
Kasilingam, R., & Ramasundaram, G. (2012). Predicting Solvency of Non-Banking Financial

Institutions in India Using Fulmer and Springate Model. Journal of Services Research, 12(1), 65–
88.
Mackevičius, J., & Silvanavičiūtė, S. (2006). Evaluation of suitability of bankruptcy prediction

models. Business: Theory and Practice, 7(4), 193–202.
Manaseer, S., & Al-Oshaibat, S.D. (2018). Validity of Altman Z-Score Model to Predict Financial
Failure: Evidence From Jordan.
Muthukumar, G., & M., S. (2014). Fiscal Fitness of Select Automobile Companies in India:
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Riyana Sari & Mokhamad Anwar & Leni Susanti, (2019). "Analysis of Financial Distress Model
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Dissertation Report

“Financial Stability of top 30 companies of sensex

POST GRADUATE DIPLOMA IN MANAGEMENT

Under the guidance

Dr. Amit Bhati

Institute of Management Studies, Ghaziabad

Signature of Faculty Guide

Name: Aanchal Singhal

1.1 Multiple Discrimination Analysis

S.No Author and Year Description

3 Babatunde, They investigated the disappearance of 10 companies listed

4 M. M. Swalih et The Altman Z School is an effective tool for measuring a

Z = 1.03A + 3.07B + .66C + .4D

A = Working Capital / Total Assets

7 Mira Munira et al (2021) This study aims to determine the probability of an

RESEARCH OBJECTIVE AND

The main objectives in this study are:-

3.2.1 Research Design:

Following companies Listed in Sensex 30 are used for this study: -

3.2.3 Data Collection:

The original Z-score model for manufacturing firms is:

Z= 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 +0.999X5

X1 = Working Capital / Total assets

X2 = Retained earnings / Total assets

X3 = EBIT / Total assets

X4 = Market Value of Equity / Total liabilities

X5 = Sales / Total assets

Z > 2.99 Safe zone

1.81 < Z < 2.99 Grey zone

Z < 1.81 Distress zone

SS = 1.03X1 + 3.07X2 +0.66X3+0.4 X4

X1 = Working Capital/Total Asset

X2 = Earnings before Interest and Taxes (EBIT)/ Total Asset

X3 = Earnings before Taxes/Current Liabilities

SS > 0.862 Healthy

SS < 0.862= Bankrupt

4.1 Altman Z score

Years X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Dr. REDDYS LAB

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone

Year X1 X2 X3 X4 X5 Total Zone