This study examines financial distress and earnings manipulation among selected non-financial companies listed on the National Stock Exchange (NSE) during the period 2020–2025. The analysis is conducted using the Altman Z-Score model to assess financial stability and the Beneish M-Score model to detect potential earnings manipulation. The sample consists of ten large-cap companies selected based on consistent market presence and availability of financial data. The results indicate that most companies, particularly in the IT and FMCG sectors, demonstrate strong financial stability and fall within the safe zone. However, companies in capital-intensive industries such as steel, telecom, and infrastructure exhibit moderate financial risk. The findings from the Beneish M-Score reveal that while the majority of firms maintain transparent financial reporting, a few companies show signs of potential earnings manipulation. The study concludes that financial strength does not necessarily ensure reporting transparency and highlights the importance of using multiple models to evaluate both financial health and earnings quality.
Bharath Raj M (Thu,) studied this question.