STUDY OF FINANCIAL DISTRESS OF PUBLIC SECTOR UNDERTAKINGS COMPANIES IN INDIA

This paper analyses financial distress of two group of public sector undertakings of companies in India. The present study using the Kolmogorov-Smirnove for testing if a variable follows a given distribution in a population. This “given distribution” is usually -not always- the normal distribution. The data collected from the journals, reports bse.com and money control.com and other websites. 15 companies were selected for this present study based on the convenient sampling method. SPSS and MS-excel software used for the present paper. Moreover 15 financial ratios have been taken for analysis that is net cash, total assets, total debt, sales, net worth, net income, long term liability, current assets, current liability, working capital, cash flow from operating activities, cash flow from financial activities, total external source, dividend and cash flow in investment activities. The selected companies are grouped based on the total debt ratio financial ratio. Based on the ratio, the company classified into seven distress companies and eight non-distress companies. It is resulted that the distress and non-distress companies has been identified based on the z value. It is equal to the proportion of the total variance in the discriminant scores, not explained by differences among the distressed and non-distressed companies.