Application of Altman Z score model on listed companies applied for CIRP for period of January 2017 to November 2022 with IBBI

Abstract The paper investigates the application of the Altman Z-Score model as a predictive tool for assessing the financial health and bankruptcy risk of Indian listed companies that underwent the Corporate Insolvency Resolution Process (CIRP) between January 2017 and November 2022 under the Insolvency and Bankruptcy Board of India (IBBI). Using key financial ratios derived from company financial statements, the study analyzes the effectiveness of the Z-Score in forewarning corporate insolvency events within this timeframe. The findings indicate that companies with low Z-Scores consistently exhibited financial distress signals prior to their referral to CIRP, substantiating the model's utility as an early warning measure in the Indian insolvency context. However, the study also highlights sector-specific limitations and suggests that the model may require recalibration to better suit India's diverse corporate environment. Overall, the Altman Z-Score proves to be a valuable quantitative tool for risk assessment and creditor decision-making in the evolving Indian insolvency framework.