Predicting the Corporate Default: A study of companies listed by RBI for default

With RBI referring around 40 firms to NCLT for bankruptcy hearing, one important question can be raised is “were there any signals that could have predicted this situation before hand?” This paper tries to answer the above question. Using the same set of companies that were referred by RBI, using their financial data in two different time frames the study tries to analyze five important financial ratios and their role in prediction of corporate failure. The paper also comes up with a model for the same.