FINANCIAL RISK ANALYSIS OF SELECTED AUTOMOBILE INDUSTRIES IN INDIA

This paper set out with the aim of answering the question to what extent the financial risks are bearded by the select automobile industries. A theoretical framework describing risk management approach to captives is discussed. The study suggests that observed changes in risk among automotive manufacturers can to a large extent be attributed to their captive activities. The proposed model helps to evaluate financial risk, by using discriminate analysis, which integrates five of the most important financial indicators: current risk, return on investment, Debt to equity, total assets turnover, working capital to total assets.