SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES VOL. 1 NO. 2 PAPER 10
 
EDWARD ALTMAN “Z” SCORE MODEL PREDICTING CORPORATE SOLVENCY
 
V.Balachandran* and M.Sriram**
*   Reader in Corporate Secretaryship, Alagappa University, Karaikudi, India
** Faculty in Management Sciences, D.J Academy for Managerial Excellence, Coimbatore., India
 
The Indian Textile Machinery Industry is one of the leading machinery manufacturing industries in Asia. The Lakshmi group of companies of Coimbatore has been the most successful of these companies. Lakshmi’s success is attributable to its longevity in the sector and its ability to offer a range of textile machinery. The industry has been in recession during the period 1995-99. The reasons may be due to relaxation in import of second hand machinery, introduction of technologically advanced products in the market by global players, WTO and opening of the production capacities, strain due to lot of imported machinery etc. The players in this industry have become very cost conscious and price sensitive and have resorted to various cost cutting measures for their survival. However, the industry is making a turnaround and the future looks bright for used textile machinery. An attempt has been made to study the financial health of one of the leading manufacturers of textile machineries in Tamil Nadu
 
KEYWORDS: Z Score Model, Financial Ratio, Corporate Solvency JEL CLASSIFICATIONS: G30, M41 FULL TEXT