Assessment of select BSE/ NSE companies under the parameters of the likelihood of manipulation and bankruptcy

Abstract

In the advent of recent years, where the firms have not picked up the early signs to changing the environment, they have seen their end before they could realize. Various factors like: ● Absence of Enterprise Risk Management ● Oversight by auditors and regulators ● Failure of critical controls ● Fraud through collusion at firms, etc. have resulted in firms’ slow response to the early signs of a firm’s decline. Some firms, have also filed bankruptcy due to their inability to cope up with the changing business factors and inability to comprehend the effects of interdependent of businesses. Whereas, other firms have tried to sustain the bad blows through tweaking their financials to sustain shareholders’ and stakeholders’ comfort and trust, with a bullish belief on industry demand and profitability.