![]() ![]() The study concluded that poor corporate governance contributes to financial distress and that smaller board size negatively affects corporate performance. The Altman Z-Score and Boone Indicator were the main techniques of analysis. Data used for the study spanned from 2008 to 2014. This study aims at predicting financial distress and bankruptcy on selected listed banks on the stock exchange of a developing West African country, Ghana. The frequent cases of corporate failures within the financial sector raises the need to employ models to predict forehand the financial distressed or bankruptcy state of the financial sector. S.A.L Steel and Hisar Metal Industries are the two safe companies, though they don’t work at a scale as large as other but still it is able to look after its liquidity and profitability which drives the company towards growth. The two large scale companies which are the oldest in the industry are also in distress zone but one can see the rise of JSW steel which will soon overtake the two big giants. It was found that only two of ten companies were in the safe zone that too they just entered the safe zone during the FY 2017-18. This study has been undertaken for ten sample companies form Indian steel industry by applying Altman Z score model which consists of working capital / total assets ratio, retained earnings/ total assets ratio, profit beforeinterest and tax / total assets ratio, market value of equity / debt book value ratio and sales / total assets ratio. They are to identify the company’s degree of closeness to bankruptcy and to deduce the various parameters involved in influencing the inferred values to a large extent. In this back ground the Researchers have made an attempt to predict the bankruptcy for the Indian Steel Industry by considering two objectives. To supportthe same, a business organisation should have certain analytical models and using itfor predicting unwanted financial and business risks or bankruptcy. The stakeholders of the company especially the shareholders and creditors often want to know financial soundness of the company in short and long term and to take the necessary steps at present accordingly so as to maintain an ideal situation.
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