Financial Health of Ambika Cotton Spinning Mills Limited- Pre and Post Financial Crisis: A Case Study

Abstract

The performance of spinning mill is severely affect by a number of problems such as high raw material cost, frequently power cut, high fuel cost and high interest charges and as a result will fail to earn any Profit for owner. It is also affected in the current global crisis and it is absolutely imperative for the government to prepare a long term strategy for the growth and export of textiles. This article deals with financial distress, if which not tackled on time, will leads to bankruptcy. This article aims at using bankruptcy prediction model developed by Edward Altman, Professor of Finance, Stern school of business, New York University, the application of Z score method to Ambika cotton spinning mill ltd., for the purpose of predicting its financial health. The conclusions Drawn could provide effective guidelines to the management of that company spinning mills and their stakeholders