Beneish

Beneish M score

Components of
1. Days’ Sales in Receivables In
DSRI = (Net Receivablest / Sal

2. Gross Margin Index (GMI)

GMI = [(Sales t-1– COGS t-1) / Sales t-

3. Asset Quality Index (AQI)

AQI = [1 – (Current Assetst +

4. Sales Growth Index (SGI)

SGI = Salest / Salest-1

5. Depreciation Index (DEPI)

DEPI = (Depreciation t-1/ (PP&E

6. Sales, General, and Admin

SGAI = (SG&A Expense t / Sal

7. Leverage Index (LVGI)

 LVGI = [(Current Liabilities 

8. Total Accruals to Total Assets (TA

TATA = (Income from the C
 Beneish M-Score 
Beneish M score is the mathematical model which was created by Profes

onents of Beneish M-Score

les in Receivables Index (DSRI)
Net Receivablest / Salest) / Net Receivables t-1 / Sales t-1)

rgin Index (GMI)

– COGS t-1) / Sales t-1] / [(Salest – COGSt) / Salest]

ality Index (AQI)

– (Current Assetst + PP&Et + Securitiest) / Total Assetst] / [1 – ((Current Ass

wth Index (SGI)

 / Salest-1

ion Index (DEPI)

epreciation t-1/ (PP&E t-1 + Depreciation t-1)) / (Depreciation t / (PP&E t + Dep

General, and Administrative expenses Index (SGAI)

G&A Expense t / Sales t) / (SG&A Expense t-1/ Sales t-1)

dex (LVGI)
[(Current Liabilities t + Total Long Term Debt t) / Total Assets t] / [(Current L

s to Total Assets (TATA)

(Income from the Continuing Operations t – Cash Flows from the Operations
as created by Professor Messod Beneish and it is used for the purpose of find

] / [1 – ((Current Assetst-1+ PP&E t-1 + Securities t-1) / Total Assets t-1)]

ion t / (PP&E t + Depreciation t))

Assets t] / [(Current Liabilities t-1 + Total Long Term Debt t-1) / Total Assets t-

from the Operations t) / Total Assets t

or the purpose of finding out that whether the company has done any sort of m

otal Assets t-1)]
bt t-1) / Total Assets t-1]
as done any sort of manipulation with its earning with the help of the differen
e help of the different financial ratios and the eight mentioned different varia
ioned different variables.
 Beneish M-Score Of Apollo Hospitals Enterprises Ltd. - The Detection Of Earnings Manipulation

Parameaters
Years 2017 2018 2019 2020 2021
Net sales 7255.70 8243.47 9617.44 11246.80 10560.00
Cost of goods sold 5951.10 6811.90 7812.20 9313.80 9115.30
Net Receivables 750.53 825.19 1023.20 1027.20 1331.10
Current Assets 2129.22 2220.13 2281.73 2646.60 3641.20
Property, Plant and Equipment 4591.66 5138.86 5457.18 7321.50 6636.90
Depreciation 314.04 359.03 395.53 619.70 573.10
Total Assets 8119.29 8612.79 9183.07 11338.40 12416.70
SGA Expenses 1366.21 1460.97 1644.88 1809.20 1623.30
Net Income 88.73 59.33 199.19 434.80 136.00
Cash Flow From Operations 622.55 536.96 904.95 12292.80 1273.40
Current Liabilities 963.36 1567.23 1955.36 2337.30 20037.90
Long term Dept 2953.38 2923.80 2952.13 2852.00 2473.40

Derived Variables
Other L/T Assets [TA-{CA+PPE}] 1398.41 1253.80 1444.16 1370.30 2138.60
DSRI 0.96773211985 1.06281372 0.85846974 1.38013232
GMI 1.03536988655 0.92518177 1.09212558 1.25628776
AQI 0.84521644804 1.0802966 0.7684869 1.42514643
SGI 1.136137106 1.16667374 1.16941723 0.93893374
DEPI 0.98027807633 0.96630064 0.86601828 0.98174844
SGAI 0.94122422024 0.96503596 0.94055213 0.95560247
LVGI 1.08092461852 1.02487153 0.85641739 3.9612968
TATA -0.05545589757 -0.07685447 -1.04582657 -0.09160244

2018 2019 2020 2021

M-SCORE (8 Variable Model) -1.84366059676 -1.79240659 -6.60802923 -2.40188617
M-SCORE (5 Variable Model) -2.91179793529 -2.7735745 -2.98416479 -2.16957998

Interpretation :

1. The M- Score for the FY 2020 & 2021, under 8 Variable model is below -2.22 hence, it is Suggested the Company i
2. The M-score for the FY 2018 & 2019, under 8 Variable model is higher, hence the firm is likely to be manipulator.
3. The M-score for the FY 2021 under 5 Variable model is higher, hence the firm is likely to be mainpulator.
nings Manipulation

Glossary
SGA Selling, General and Administrative Expenses
CA Current Assets
DSRI Days Sales in Receivables Index
GMI Gross Margin Index
AQI Asset Quality Index
SGI Sales Growth Index
DEPI Depreciation Index
SGI Sales, General and Administrative Expenses Index
LVGI Leverage Index
TATA Total Accruals to Total Assets

5 Variable eM = -6.065+ .823 DSRI + .906 GM+ .593 AQI + .717 SGI +.107 DEPI
8 Variable eM = -4.84+ .920 DSRI + .528 GMI+ .404 AQI+ .892 SGI + .115DEPI - .172 SGI+

ggested the Company is not a manipulator.

kely to be manipulator.
e mainpulator.
593 AQI + .717 SGI +.107 DEPI
I+ .892 SGI + .115DEPI - .172 SGI+ $.679 TATA- .327 LVGI
Beneish M-Score Of Aster DM Healthcare Ltd. - The Detection Of Earnings Manipulation

Parameaters
Years 2017 2018 2019 2020
Net sales 5931.29 6721.16 7962.71 8738.50
Cost of goods sold 5567.83 6090.19 7108.04 7609.82
Net Receivables 1287.62 1546.39 2028.70 2366.44
Current Assets 2472.46 2868.98 3616.69 4095.67
Property, Plant and Equipment 3135.46 3431.66 3998.90 6790.82
Depreciation 322.44 297.74 306.47 585.94
Total Assets 6807.28 7484.24 8936.41 12437.84
SGA Expenses 2002.16 2160.43 2524.97 2864.28
Net Income 97.76 279.39 367.56 314.85
Cash Flow From Operations 360.79 537.35 600.92 1223.25
Current Liabilities 2201.22 2223.49 2667.59 3722.68
Long term Dept 1826.50 1577.85 1965.72 1892.24

Derived Variables
Other L/T Assets [TA-{CA+PPE}] 1199.36 1183.60 1320.82 1551.35
DSRI 1.0598300846463 1.10734291574 1.06292269 0.86607152
GMI 0.6527441478731 0.87463512797 0.83100497 0.88685049
AQI 0.8975968189166 0.93459466979 0.84388696 0.95292304
SGI 1.1331700186637 1.18472257765 1.09742789 0.98511529
DEPI 1.1679876893161 1.12155539687 0.89616916 0.93223773
SGAI 0.9522398304148 0.98650515304 1.0336732 0.86366255
LVGI 0.8584269681062 1.02079671251 0.87070359 0.94181727
TATA -0.034467093519 -0.0261133945 -0.07303519 -0.11979343

2018 2019 2020 2021

M-SCORE (8 Variable Model) -1.585285758904 -1.4296670126 -2.01289349 -2.3982096
M-SCORE (5 Variable Model) -3.133641142607 -2.8395701996 -3.05615327 -3.17957613

Interpretation :

1. The M- Score for the FY 2021 under 8 Variable model is below -2.22 hence, it is Suggested the Company is not a m
2. The M-score for the FY 2018, 2019 & 2020 under 8 Variable model is higher, hence the firm is likely to be manipu
3. The M- Score for the FY 2018, 2019, 2020 & 2021 under 5 Variable model is below -2.22 hence, it is Suggested the
arnings Manipulation

2021 Glossary
8608.43 SGA
7354.69 CA
2019.00 DSRI
3629.01 GMI
6630.55 AQI
617.57 SGI
11643.46 DEPI
2436.95 SGI
174.31 LVGI
1569.12 TATA
3195.62
1754.86
5 Variable eM = -6.065+ .823 DSRI + .906 GM+ .593 AQI + .717 SG
8 Variable eM = -4.84+ .920 DSRI + .528 GMI+ .404 AQI+ .892 SGI + .115
1383.90

ggested the Company is not a manipulator.

the firm is likely to be manipulator.
-2.22 hence, it is Suggested the Company is not a manipulator.
 Selling, General and Administrative Expenses
Current Assets
Days Sales in Receivables Index
Gross Margin Index
Asset Quality Index
Sales Growth Index
Depreciation Index
Sales, General and Administrative Expenses Index
Leverage Index
Total Accruals to Total Assets

5 Variable eM = -6.065+ .823 DSRI + .906 GM+ .593 AQI + .717 SGI +.107 DEPI
8 Variable eM = -4.84+ .920 DSRI + .528 GMI+ .404 AQI+ .892 SGI + .115DEPI - .172 SGI+ $.679 TATA- .327 LVGI
79 TATA- .327 LVGI
Beneish M-Score of Dr. Lal PathLabs Ltd. - The Detection Of Earnings Manipulation

Parameaters
Years 2017 2018 2019 2020 2021
Net sales 912.38 1056.92 1203.42 1330.40 1581.27
Cost of goods sold 513.90 591.50 687.30 823.10 968.10
Net Receivables 41.80 41.16 53.22 52.40 66.70
Current Assets 466.56 623.02 813.63 892.70 1145.17
Property, Plant and Equipment 142.07 189.17 184.13 347.20 371.51
Depreciation 27.54 33.06 38.22 72.80 77.20
Total Assets 690.00 915.55 1090.50 1374.40 1661.33
SGA Expenses 197.08 226.03 262.35 298.70 397.26
Net Income 155.59 171.75 200.47 227.60 296.48
Cash Flow From Operations 171.31 197.07 218.54 283.90 398.15
Current Liabilities 84.84 115.96 138.30 227.26 274.29
Long term Dept 7.30 7.95 1.22 93.00 110.16

Derived Variables
Other L/T Assets [TA-{CA+PPE}] 81.37 103.36 92.74 134.50 144.65
DSRI 0.85002701 1.13559742 0.89061787 1.07095384
GMI 0.99180855 1.02676123 1.12473663 0.98334918
AQI 0.95731576 0.75330524 1.15071485 0.88972008
SGI 1.15842083 1.1386103 1.10551595 1.18856735
DEPI 1.0914713 0.86545923 0.99167978 1.00746632
SGAI 0.9900501 1.01938884 1.02988597 1.11896324
LVGI 1.01350331 0.94533668 1.82128854 0.99310325
TATA -0.02765551 -0.01657038 -0.04096333 -0.06119796

2018 2019 2020 2021

M-SCORE (8 Variable Model) -1.65436411 -1.62997656 -1.94918831 -1.71305203
M-SCORE (5 Variable Model) -2.95378582 -2.84645992 -2.73387154 -2.80708494

Interpretation :

1. The M- Score for the FY 2018, 2019, 2020 & 2021, under 8 Variable model is higher, hence it is Suggested the Com
2. The M- Score for the FY 2018, 2019, 2020 & 2021 under 5 Variable model is below -2.22 hence, it is Suggested the
 Glossary
SGA Selling, General and Administrative Expenses
CA Current Assets
DSRI Days Sales in Receivables Index
GMI Gross Margin Index
AQI Asset Quality Index
SGI Sales Growth Index
DEPI Depreciation Index
SGI Sales, General and Administrative Expenses Index
LVGI Leverage Index
TATA Total Accruals to Total Assets

5 Variable eM = -6.065+ .823 DSRI + .906 GM+ .593 AQI + .717 SGI +.107 DEPI
8 Variable eM = -4.84+ .920 DSRI + .528 GMI+ .404 AQI+ .892 SGI + .115DEPI - .172 SGI+

e it is Suggested the Company is not a manipulator.

ence, it is Suggested the Company is not a manipulator.
17 SGI +.107 DEPI
+ .115DEPI - .172 SGI+ $.679 TATA- .327 LVGI
 Beneish M-Score of Fortis Healthcare Ltd. - The Detection Of Earnings Manipulation

Parameaters
Years 2017 2018 2019 2020 2021
Net sales 4573.71 4560.81 4469.36 4632.32 4030.12
Cost of goods sold 3876.00 3819.00 3707.10 3742.80 3458.50
Net Receivables 472.94 470.19 542.42 470.19 472.94
Current Assets 1774.83 1281.51 1666.58 940.48 1036.80
Property, Plant and Equipment 3361.29 3169.32 5205.74 3169.32 3361.29
Depreciation 222.18 238.96 232.92 291.73 290.60
Total Assets 9716.97 8621.69 11951.27 11347.82 11154.69
SGA Expenses 999.86 1004.08 918.14 985.49 974.48
Net Income -6.77 -987.58 -588.13 79.32 -103.73
Cash Flow From Operations 966.45 492.90 -178.53 171.54 485.49
Current Liabilities 1926.45 2134.04 3590.98 2578.93 1233.04
Long term Dept 1278.70 948.13 637.08 954.05 967.73

Derived Variables
Other L/T Assets [TA-{CA+PPE}] 4580.85 4170.86 5078.95 7238.02 6756.60
DSRI 0.99699731 1.17722357 0.8363431 1.15614747
GMI 0.93789802 0.95365856 0.88817926 1.3538412
AQI 1.0261669 0.87846947 1.50088515 0.94964954
SGI 0.99717953 0.97994874 1.0364616 0.87000035
DEPI 0.88432366 1.63709948 0.50809118 1.05924225
SGAI 1.00706097 0.93311943 1.03559537 1.13658333
LVGI 1.08379387 0.98960732 0.88003847 0.63370686
TATA -0.17171575 -0.03427251 -0.00812667 -0.05282262

2018 2019 2020 2021

M-SCORE (8 Variable Model) -2.57333707 -1.03238328 -2.06669913 -1.49339754
M-SCORE (5 Variable Model) -2.97861828 -2.83540507 -2.8864656 -2.58863916

Interpretation :

1. The M- Score for the FY 2018 under 8 Variable model is below -2.22 hence, it is Suggested the Company is not a m
2. The M-score for the FY 2019, 2020 & 2021 under 8 Variable model is higher, hence the firm is likely to be manipu
3. The M- Score for the FY 2018, 2019, 2020 & 2021 under 5 Variable model is below -2.22 hence, it is Suggested the
gs Manipulation

Glossary
SGA Selling, General and Administrative Expenses
CA Current Assets
DSRI Days Sales in Receivables Index
GMI Gross Margin Index
AQI Asset Quality Index
SGI Sales Growth Index
DEPI Depreciation Index
SGI Sales, General and Administrative Expenses Index
LVGI Leverage Index
TATA Total Accruals to Total Assets

5 Variable eM = -6.065+ .823 DSRI + .906 GM+ .593 AQI + .717 SGI +.107 DEPI
8 Variable eM = -4.84+ .920 DSRI + .528 GMI+ .404 AQI+ .892 SGI + .115DEPI - .172 SGI+

ted the Company is not a manipulator.

firm is likely to be manipulator.
2 hence, it is Suggested the Company is not a manipulator.
593 AQI + .717 SGI +.107 DEPI
+ .892 SGI + .115DEPI - .172 SGI+ $.679 TATA- .327 LVGI
 Beneish M-Score of Healthcare Global Enterprises Ltd. - The Detection Of Earnings Manipu

Parameaters
Years 2017 2018 2019 2020 2021
Net sales 700.11 830.69 978.67 1095.64 1013.44
Cost of goods sold 558.60 657.50 719.30 948.10 817.20
Net Receivables 103.22 128.44 156.89 185.66 186.61
Current Assets 244.18 220.09 272.96 303.79 434.96
Property, Plant and Equipment 772.04 892.35 1013.50 1582.83 1316.05
Depreciation 56.83 71.46 85.09 148.45 159.22
Total Assets 1226.44 1443.66 1653.55 2253.17 2035.61
SGA Expenses 175.92 196.64 221.49 236.35 238.17
Net Income 23.04 18.34 -19.89 -113.13 -220.74
Cash Flow From Operations 91.26 97.81 98.50 130.14 120.52
Current Liabilities 365.53 358.76 547.31 575.75 465.25
Long term Dept 283.38 372.43 516.91 529.61 346.17

Derived Variables
Other L/T Assets [TA-{CA+PPE}] 210.22 331.22 367.09 366.55 284.60
DSRI 1.04873012 1.03680641 1.05704014 1.08664179
GMI 0.96947591 0.78668408 1.96807465 0.69542837
AQI 1.33851704 0.96761723 0.73279761 0.85941129
SGI 1.18651355 1.17814106 1.11951935 0.92497536
DEPI 0.92474002 0.95725733 0.9032958 0.79448697
SGAI 0.94207168 0.95605959 0.95316894 1.08943491
LVGI 0.95725393 1.27071678 0.76224696 0.81253364
TATA -0.05504759 -0.07159747 -0.10796789 -0.16764508

2018 2019 2020 2021

M-SCORE (8 Variable Model) -1.57303091 -1.98795235 -1.55074733 -2.74684645
M-SCORE (5 Variable Model) -2.58213194 -2.98002185 -2.08008333 -3.28478736

Interpretation :

1. The M- Score for the FY 2021, under 8 Variable model is below -2.22 hence, it is Suggested the Company is not a
2. The M-score for the FY 2018, 2019 & 2020 under 8 Variable model is higher, hence the firm is likely to be manipu
3. The M-score for the FY 2020, under 5 Variable model is higher, hence the firm is likely to be mainpulator.
n Of Earnings Manipulation

Notes

Glossary
SGA Selling, General and Administrative Expenses
CA Current Assets
DSRI Days Sales in Receivables Index
GMI Gross Margin Index
AQI Asset Quality Index
SGI Sales Growth Index
DEPI Depreciation Index
SGI Sales, General and Administrative Expenses Index
LVGI Leverage Index
TATA Total Accruals to Total Assets

5 Variable eM = -6.065+ .823 DSRI + .906 GM+ .593 AQI + .717 SGI +.107 DEPI
8 Variable eM = -4.84+ .920 DSRI + .528 GMI+ .404 AQI+ .892 SGI + .115DEPI - .172 SGI+

sted the Company is not a manipulator.

firm is likely to be manipulator.
to be mainpulator.
17 SGI +.107 DEPI
+ .115DEPI - .172 SGI+ $.679 TATA- .327 LVGI