Evaluation of financial soundness of Indian auto Ancillary industries using Altman Z-rate model

The automobile industry is an obvious indication of a country's economic development. Because it requires high performance and quality parts, it is also an innovation and comprehension intensive sector. Because of its deep forward and backward links with many key segments of the economy, the automobile sector is also prominent in India. Because of the strong supply support provided by various auto ancillary manufacturing companies, this sector has a strong multiplier effect and has the potential to be a driver of economic growth. The auto ancillary market is focused on the production and sale of transitional equipment and automotive parts used in the manufacture of automobiles. It is an important part of India's automotive industry. Such industries allow vehicle manufacturers to concentrate on their core competencies. The auto ancillary manufacturing Industry, with its high growth prospects, is one of the emerging industries in Indian markets. The Altman Z rating is a beneficial expedient for identifying a company's economic resilience and the probability of insolvency. The Z rating method was once used in this to find out to check the economic fitness of Indian auto ancillary manufacturing companies. The economic facts of 10 auto ancillary manufacturing companies listed groups on the National Stock Exchange (NSE) have been used to study each unique and rising market Altman Z rating formulae. The findings point out that not all the enterprises listed on the NSE are financially healthy. According to the study, some of the Indian auto ancillary manufacturing companies are sound and dependable without few companies, and some of the auto ancillary manufacturing companies are not likely to face monetary misery or insolvency soon.