A STUDY ON FINANCIAL INSOLVENCY POSITION OF SELECTED PHARMA COMPANIES IN INDIA WITH ALTMAN’S Z SCORE

Abstract

Perfect financial health of the company is required to survive in the globalized
competitive world. If it is not succeed to maintain it has to face many consequences.
Shareholders, Prospective investors, government, creditors, financial institutions, creditors are
more focused on the financial position of the companies to with which they deal. Financial
statements may not reveal complete financial health of the company. Various tools like
comparative statements, common size statements, trend analysis, funds flow statements, cash
flow statements, decision tree analysis are helpful to analyze the financial health but absolute
result can be provided by the ‘Z Score Model”. It was developed by Edward I Altman to predict
solvency position of the company. This model is helpful for early prediction of Industrial
sickness. The present paper is an attempt for comparative study on predicts the corporate
failure in selected pharma companies i.e. Ankur Drug and Pharma Ltd. and Maneesh Pharma
Ltd.