Application of Z score analysis in evaluating steel industry in India

The paper is an empirical study to understand the financial soundness of steel industry in India. For this purpose twenty large and medium steel units which are listed are taken. A sample period of 2001 - 2010 was selected for the study. The financial performance of the Steel industry was monitored and measured by using Altman's Z-score model which was extensively used by practitioners and researchers in the past. This study analyses the possibility of business failure with reasonable accuracy by using the z-score model. The research findings are that the steel industry is in good financial performance inspite of the impact of sluggish demand and global economic slowdown with an exception of two companies in the study period.