A STUDY ON CORPORATE FINANCIAL DISTRESS AND BANKRUPTCY REFERENCE TO ITC LIMITED

Financial Management

Financial distress is a condition of financial position of a corporate. If high debt burden is the cause of financial distress, the company can undergo a debt restructuring. The purpose of study examines the relation between financial distress and financial position of ITC limited. Most of the business failure are made on the unfair liquidation analysis, which leads to bankruptcy and distress. Distress prediction are made using Edward Altman's Z score financial analysis. The research work is based on the secondary data collection from last five year financial reports of Indian Tobacco Company. This research analysis carries following measures like liquidity, profitability, return on asset (ROA), solvency and capital turnover. The statistical tools are included for a consideration of bankruptcy prediction for future pre-emptive. The study is useful for maintaining constant relationship with current asset and revenue management. This research is mainly focused on the continuous flow of monetary requirement through liquidity acquisition.

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