Assignment on Altman Z score application with special reference to Indian Companies.

Select two listed Indian companies one from manufacturing and another from service
Download 5 yr historical financial data (upto Mar 2011) from www.moneycontrol.com
Paste it in MS excel. (You may need to convert to number format using copy and paste spl. Option)
Kindly carry out calculations for all 5 yrs.
Note you have to calculate market value and book value as on 31st Mar every year and apply
correspondingly.
Using the following formula find out bankruptcy condition. Submit on or before 20 Mar 2012
1. for manufacturing firm
Z=1.2 T1+1.4 T2 + 3.3 T3 + 0.6 T4 + 0.999 T5

if Z > 2.99 Safe

1.81 < Z < 2.99 Grey
Z < 1.81 Distress

Where
T1 = current assets current liabilities
Total Assets
T2 = Retained earnings
Total assets
T3 = EBIT (earnings before interest and taxes)
Total Assets
T4 = Market value of equity
Total Liabilities
T5 =

Sales
Total assets

2. For Non manufacturing and emerging markets firm

Z = 6.56 T1 + 3.26 T2 + 6.72 T3 + 1.05 T4
Where
T1 = current assets current liabilities
Total Assets
T2 = Retained earnings
Total assets
T3 = EBIT (earnings before interest and taxes)
Total Assets
T4 = Book value of equity
Total Liabilities

if Z >2.6 safe
1.1 <Z< 2.6 Grey
Z< 1.1 Distress