IJA Dec 2023

Volume 55
No. 02 December, 2023
Indian Journal of
Accounting
A National Bi-annual Double Blind Peer Reviewed Refereed Journal of IAA
Indian Accounting Association (IAA)

www.indianaccounting.org
INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 1
Message from the Chief Editor
The year 2022 saw India bringing about major reforms in education, industry and allied
sectors. Reforms in higher education is fast catching up in terms of policy formulation
and implementation. India is manifesting Economic resilience, being on the path of con-
sistent industrial development, this has made the nation an emerging economy of the
future.
Digital technology and innovation are widely in use as developmental models that will
serve our growth aspirations. The unprecedented impact of technology, on not just in-
dustry, but all walks of human life is indeed phenomenal. Transforming challenges into
opportunities and working under the emerging New Normal is what we need to learn
and adopt.
Higher education in India is undergoing a shift in terms of reforms and Adoption of the
National Curriculum framework. NEP 2020 seeks to make education holistic, trans- dis-
ciplinary and flexible. A host of innovative academic programmes and courses are being
planned in terms of skill- embedded learning and tech-driven learning methodologies. A
very pertinent question that emerges is how to stay relevant in terms of Academics and
Research. A deeper and insightful understanding of the demanding environment and
up-skilling and upgrading to meet the emerging needs is crucial.
Research in finance and Accounting is turning to be all the more relevant in terms of
making it inferential and analytical such that it addresses disruptiveness in terms of the
emerging technology. Professionals and researchers need to ponder over this issue With
the intention encourage good research in the domains of Accounting, Finance and Fi-
nancial services, as well as trans-disciplinary research, Indian Journal of Accounting is
bringing out the next issue of IJA .
I take this opportunity to thank all the contributors of research papers to this issue and
sincerely request all my friends to come up with more research work and research pub-
2 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023
lications, which we would gladly welcome. I also thank all our subscribers and the edito-
rial team. I acknowledge with sincere gratitude the timely intellectual support from our
reviewers. I request all our readers and well-wishers to kindly give us suggestions and
valuable inputs on improving the journal.
Gabriel Simon Thattil

Professor & Head
Department of Commerce
Dean , Faculty of Commerce
University of Kerala
Chief Editor – Indian Journal of Accounting

Message from the President
Dear Friends,
It is a matter of pride to pen down my message as President of Indian Accounting Asso-
ciation (IAA) for the bi- Annual Research Journal -The IndianJournal of Accounting. My
heart fills with immense pleasure as I perceive the progress being made by IAA. I wish to
tell that I am eternally grateful for getting the privilege to serve you. The IAA, in its illus-
trious journey, was founded by academicians and professionals in accounting on March
15, 1969, and was inaugurated on February 14, 1970 by the Accountant General of Uttar
Pradesh at Banaras Hindu University, Varanasi.
It is a member organisation of International Association of Accounting Education and Re-
search (IAAER). It is also held in high esteem by American Accounting Association (AAA).
This year I am going to attend AAA conference in USA representing all IAA fraternity. At
present, IAA has a network of 59 branches in India with more than 7700 life members,
and a Research Foundation as an affiliate at Kolkata. It also brings out a biannual research
journal ‘Indian Journal of Accounting’ in the months of June & December to give wider
publicity to research findings. The Association also gives IAA Young Research Award and
IAA fellowship.
IAA Annual conference is a flagship program to disseminate knowledge and create a
platform for discussion on Accounting education and research in allied areas. Past con-
ference have attracted a large number of delegates from across the country and abroad.
This year IAA is going to organise its 45th annual conference at Thiruvananthapuram,
Kerala on 9-10th December 2023 I invite each one of you to participate in this mega ac-
ademic event.
I am sure we all meet in this conference in big number, I appreciate the efforts made
by Prof. Gabriel Simon Thattil, Head,& Dean,Faculty of Commerce, University of Kerala
for putting all possible efforts to make this conference a grand success and memorable
one and bringing the issue of this journal in time. As I drive off and set my GPS for Vision
2025 of IAA becoming the world’s leading accounting body, All the best to everyone! Best
wishes,
Prof. Jas raj Bohra

President, Indian Accounting Association (IAA)
Former Dean & Head, Faculty of Commerce & Management
Studies, Jai Narain Vyas University, Jodhpur



Volume 55 EŽ͘ϬϮ
No. 02
December, 2023

PREDICTING CORPORATE FINANCIAL DISTRESS USING ALTMAN’S Z-

1 SCORE MODEL – A STUDYOF SELECTED PUBLICLY TRADED TEXTILE 1-20
COMPANIES OF BANGLADESH- Dr. Bidhan Chandra Mazumder & Mrs.
Khadiza Akter
2 AN OVERVIEW OF SECURITY ISSUES AND CHALLENGES RELATING TO
21-33
BLOCKCHAINTECHNOLOGY- Himalaya Singh & Dr. Shilpa Vardia
A STUDY ON IMPACT OF ARTIFICIAL INTELLIGENCE IN
3 ACCOUNTANCY: A CASESTUDY OF SMALL SCALE INDUSTRIES OF 34-44
ODISHA- Dr. Samira Patra
THE IMPACT OF ETHICAL ACCOUNTING PRACTICES (EMPOWERMENT-
4 E’S) ANDCULTURAL ASPECTS ON ORGANIZATIONAL PERFORMANCE- 45-54
Dr. Asha Sharma
5 ASSESSING PERCEPTION AND AWARENESS OF GREEN BONDS: A
55-70
QUALITATIVE STUDY- Dr. Dileep Kumar S. D & Ms. Jyothi G. H
A STUDY ON BENEFICIARIES’ OPINIONS REGARDING PRADHAN
6 MANTRA JAN DHAN YOJNA(PMJDY) SCHEME: WITH SPECIAL
REFERENCE TO FINTEC TECHNOLOGY (MOBILE BANKING) IN CENTER
71-85
GUJARAT REGION- Dr. Gaurangkumar C. Barot
INVESTMENT OBJECTIVES AND SATISFACTION: A STUDY ON RETAIL
7 86-100
INVESTORS OF DELHI-NCR- Dr. Tek Chand
8 COMPARISON OF DAIRY UNITS OF PUNJAB USING VARIOUS
101-122
FINANCIAL HEALTH INDICATORS- Dr. Hetal Bhatia & Dr.Kamini Shah
FINANCIAL OVERVIEW OF SELECT DEFENCE MANUFACTURING
9 COMPANIES: AN INTER-FIRMCOMPARISON FROM INDIAN 123-130
PERSPECTIVE -Mr. Sougata Mondal & Dr. Sanjib Mitra
10 CARBON DISCLOSURE PRACTICES: A BIBLIOMETRIC ANALYSIS- Ms.
131-144
Prabhuti Rathore & Dr.
Dr.aG.G.Soral
Soral
11 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTING OF
145-156
THE LISTED CORPORATES IN INDIA- Dr. Somnath Ghosh
12 DETERMINANTS OF QUALITY IN RESEARCH PUBLICATIONS- A
FRAMEWORK- Dr. V. Usha Kiran, Ms V. Shravya Sree & Mr. Bunga Dinesh 157-173
å 13 PERCEPTION ANALYSIS OF THE NON-BANKING SERVICE INDUSTRY AS

A FINANCIAL INTERMEDIARY IN KERALA: UNDERSTANDING CUSTOMER 174-188
SATISFACTION AND SERVICE QUALITY - Anjali K P & Dr. Usha A.A

PREDICTING
CORPORATE CORPORATE
GOVERNANCE FINANCIAL
SCORE AND DISTRESS USING
FINANCIAL METRICS
ININDIAN
ALTMAN’S MEDIA
Z-SCORE AND ENTERTAINMENT
MODEL INDUSTRY
– A STUDY OF SELECTED PUBLICLY
TRADED TEXTILE COMPANIES OF BANGLADESH
Dr. SUBHASISH ROY CHOWDHURY*
Dr. Bidhan Chandra Mazumder*

Mrs. Khadiza Akter**
ABSTRACT
The aim of this study is to predict the financial distress of the listed textile companies ofBangladesh
using Altman’s Z-score model. The data for 5 recent years from 2016-17 to 2020-21, covering the
COVID-19 aggression period 2019-20 to 2020-21, have been collected from 5samples which were
chosen purposively from the textile companies listed in both Dhaka Stock Exchange and
Chittagong Stock Exchange Ltd. The study reveals that although most of the samples had a turned
around tendency in their financial performance measured by Z-score during the COVID-19
aggression period, some poor financial ratios caused two-fifth of the samples to fall in distress
zone and the remaining samples in gray zone during the study period. In this context, the study
assumes that in addition to covering various key issues in a strategic plan, the samples should
consider other issues like cost-cutting, optimizing operational efficiency and the like that can help
manage cash flows and keep the business a-going and avoid the risk of financial distress.
Eventually, both the current and potential investors are assumed to have some insights from this
study as to the financial health of relatively older listed textile companies of Bangladesh and also
to easily adopt the technique used in this study to predict the financial health of the companies
under the textile industry of Bangladesh. The study also assumes that it might create scope to
further research for exploring the cause(s) behind its results.
Keywords: Financial distress prediction, publicly traded textile companies, Bangladesh, Altman
Z-score
*Professor of Accounting, University of Chittagong, Chittagong - 4331, Bangladesh

[email protected]
**MBA Graduate, Department of Accounting, University of Chittagong,

[email protected]
ϭ

Introduction
The ultimate aim of all firms is to maximize the wealth of shareholders and the
management of the companies strives in all aspects to maximize shareholders’ wealth. But
sometimes the firms fail to achieve this objective due to poor financial health. Poor financial
health causes financial distress and thereafter threatens the survival of the firm; these
eventually lead to corporate failure.
Financial distress or bankruptcy is a phenomenon where the business is not able to
generate adequate revenue to meet its financial obligations (Korath and Nayak, 2022). From
a balance sheet analysis, if total assets of a firm are found to fall short of total liabilities,
particularly due to shortage of cash or excess debt, financial distress occurs. Financial distress
can also be expressed in terms of a negative cash flow from operations (CFO) and a greater
decline in return on assets (ROA) in the year prior to default (Rahman et al., 2021). Neither
the Bankruptcy Act 1997 nor the Companies Act 1994 defined corporate bankruptcy in
Bangladesh, but Alam and Azim (n.d.) referred corporate bankruptcy as the financial crisis
of corporate entities, rather than individual businessmen.
The failure of internal support system, such as effective utilization of funds, labor,
material, land, equipment, etc. and external support system, such as economic, political, and
socio cultural conditions results in bankruptcy of a firm (Joshi, 2019). Lapse in management
control under these conditions finally causes the collapse of firms. Giant companies like Tyco,
Global Crossing, WorldCom, Enron, etc. (Anthony and Govindarajan, 2007) are the
examples of global bankrupt companies in such cases, onthe other hand, Bangladesh Industrial
Finance Company (Alo, 2017) is the local bankrupt company and Beximco Group, MR Group,
SA Group, Ratanpur Group, and Keya Group are the top five businesses which are adjudged
defaulters despite repeated loan restructure in Bangladesh (Sakib, 2017). The recent economic
turmoil due to COVID-19 also caused many firms for filing bankruptcy. For example, Silicon
Valley Bank and Avaya Inc. in the USA, Altera Infrastructure and Cineworld Group in the
UK, Modern Land Ltd. in China, Americanas S.A. in Brazil, Endo International in Ireland, and
Garuda Indonesia
Ϯ

(Ventura, 2023) are worth-mentioning. Bangladesh seems to have navigated the Covid- 19
pandemic better than many of its peers, but its luck won’t last unless it brings in some big,
meaningful reforms (Pesek, 2022) in both service and manufacturing sectors.
In Bangladesh’s manufacturing sectors, among others, textile industry starting its
journey in 1972 (Momen, 2007), immediately after the independence of the country on December
16, 1971, and producing woven and non-woven materials, such as cotton, jute, silk, synthetics,
wool, etc. for clothing, industrial, and household applications proved as an important segment
that plays a vital role in its rapidly growing economy generating more than 13% of GDP (MI
(Mordor Intelligence), 2023), where, total industry contribution was 33.32% in 2021 (Business
Inspection BD, 2022) and contributing over 84% of the export earnings by producing textiles and
textile -related products (MI, 2023). But it faced and is still facing the negative impact of COVID
-19 crisis due to shortage of labor supply and other supportive ambiences, viz. working condition,
safety standards, environment pollution, etc. and closing of many local and foreign buyers. So
in order to keep the growth potential, protect investors’ and creditors’ interest, and avoid
bankruptcy, it is necessary to predict financial distress and adopt strategic plans thereof for
textile companies of Bangladesh, world’s second largest textile producers and exporters.
According to Muller et al., early prediction of financial distress is necessary for investors
and other lending institutions (Muller et al., 2009). Ascertaining the probable insolvency in the
earlier stage may help avoid the worse cases in the near future and protect the firm from going
bankruptcy (Sajjan, 2016). Altman’s multivariate discriminate analysis (MDA) model, commonly
known as Altman’s Z-score model, has been popularly using worldwide for the prediction of
corporate financial distress of publicly traded companies with high level of accuracy since 1968,
when Professor E. Altman introduced this model first in his article, Financial Ratios,
Discriminant Analysis, and the Prediction of Corporate Bankruptcy, published in the journal
named Journal of Finance 22, September 1968, pp. 589-609. Later on in 1983, he incorporated
a new model in his book, Corporate Financial Distress (New York: John Wiley, 1983), pp. 120
-124, revising the earlier one with no measurable effect on prediction performance applicable for
both publicly traded and non-publicly traded companies (Wild et al., 2007). As a matter of
fact, this study attempts to predict the financial distress of selected listed textile companies of
Bangladesh using Altman’s earlier Z-score model.
Under the above circumstances, the study aims to examine whether the publicly traded
textile companies of Bangladesh have a healthy financial position or not during the study
ϯ

period covering the period of COVID-19 aggression. To this, the study also calculates and
analyzes relevant financial ratios used to determine Altman’s Z -score. Finally, the study tries
to highlight its implications based on findings.
In fact, there are some generalized limitations of Altman Z-score, such as dependency
only on database, not working well for new or emerging companies, failing to incorporate the
benefits of good cash flow management, working on garbage in garbage out (GIGO) method,
etc. This study also is not free from some limitations as to sample selection, sample database, and
data analysis techniques. The study also could have considered using other financial distress
prediction models, viz. Grover model, Taffler model, Zmijewski model, etc. with high level of
accuracy (Indriyanti, 2019). Moreover, a number of studies, viz. Korath and Nayak (2022), Pranav
et al. (2020), Adriatico (2019), Joshi (2019), Panigrahi (2019), Wesa and Otinga (2018), Akhtar et
al. (2017), Mohammed (2016), Sajjan (2016), and Oyedokun et al. (2015), Muller et al. (2009),
etc. have already been conducted so far focusing on financial distress prediction of different
manufacturing industries in several countries outside Bangladesh using Altman’s earlier Z-score
model. However, this study claims to be different from them in several reasons, for example,
the study has been conducted in Bangladesh context, exclusively on t extile industry of Bangladesh,
there has been no such study conducted so far in Bangladesh specially in the textile industry, the
textile companies used as samples in the study are 100% export oriented, data used in the
study were taken from very recent ye ars including the years of severe COVID-19 attack, the
samples are enlisted in both Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE),
and the samples have been selected purposively from those whose establishments and enlistments
were taken
place at least twelve and five years respectively before the beginning of the study period.
The study also assumes that further research can be taken place to explore the cause(s) behind its
results.
The organization of this paper is structured by placing introduction in the first, followed by its
scope, literature review, methods, data analysis and findings, and conclusion in the end.
Scope of the Study
The study takes textile industry of Bangladesh as its area of research. Total 5 textile companies listed
in DSE and CSE have been selected as sample to conduct this study. This selection process was
purposive and it has been made after considering the span of time the companies have passed since
ϰ

their establishment as well as enlistments till the beginning of the study period. The study period
consists of 5 consecutive years from 2016-17 to 2020-21, covering the period of frightening effect of
COVID-19 aggression, 2019-20 to 2020-21. A short profile of the sampleshas been presented in Table
1.
Table No 1: Profile of the samples
Samples Establi- Listin Product Locatio Financial

shing g n Performance**
Year Year*
Envoy 1995 2012 100% export Mymen- EPS = 2.05, 2.01, 3.31, 1.63,
0.56
Textiles Ltd. oriented shingh P/E = 19.26, 17.29, --, 12.97,
52.04
denim fabrics D/Y (%) = 1.77, 2.88, 4.27, 2.36,
1.70
Malek 1991 2010 Yarns for local Gazipur, EPS = --, 1.17, 0.76, - 1.68, 3.36
and
Spinning international Dhaka P/E = --, 14.64, 21.73, --, 9.28
Mills markets
Ltd. D/Y (%) = --, 5.85, 6.02, --, 3.21
Argon 2006 2013 100% export Gazipur, EPS = --, 3.18, 3.06, 1.53, 0.71
Denims
Ltd. oriented denim Dhaka P/E = --, 8.21, 8.25, 12.57, 38.15
fabrics D/Y (%) = --, 5.75, 3.97, 2.60,
3.69
Prime 1989 1995 100% export Narayan EPS = --, 1.05, 0.54, - 2.67, 0.62
Textile -
Spinning oriented cotton Ganj P/E = --, --, 63.42, --, 36.40
Mills yarn
Ltd. D/Y (%) = --, 2.84, 1.45, 0.63,
0.89
Square 1997 2002 Cotton yarns for Gazipur, EPS = --, 2.43, 2.18, 0.27, 3.41
local
Textile Ltd. and Dhaka P/E = --, 20.84, 20.95, 107.26,
internationa 13.95
l
markets D/Y (%) = --, 3.94, 4.38, 3.45,
4.21
Source. Samples’ websites and DSE website.
* Since the CSE has started its functioning in 1995, much later than the functioning of
the DSE in 1964, the listing year means here the year of enlistment of the samples in
DSE.
** Financial performances have been reported showing earning per share (EPS),
price-earning (P/E) ratio, and dividend yield (D/Y) on the basis of data available for
the study period of 2016-17, 2017-18, 2018-19, 2019-20, and 2020-21.
‘--‘ indicates empty due to unavailability of data.
ϱ

Literature Review
Financial distress analysis of different types of companies using Altman’s Z-score model is a
well-studied topic in different countries in the world. But research in Bangladesh on the same issue
has not been found so far coming out any significant way either in the same pace with the research
abroad or at a lower rate. However, a review of some of those researches is made herein on the basis
of their availability.
Korath and Nayak (2022) studied on financial distress prediction using Altman’s Z-score in the case
of Indian listed manufacturing companies. Using a sample of 5 unhealthy companies and 5 healthy
companies which were admitted for bankruptcy under the Insolvency and Bankruptcy Board of India
(IBBI) covering a period of 5 years from 2017 to 2021 for data, the study revealed that all the 5
unhealthy companies showed a low Z-score which proved that they were distressed and 4 out of 5
healthy companies showed a high Z-score which was an indication of their financial soundness.
Rahman et al. (2021) studied on predicting financial distress of American listed firms using F- score
model and its components instead of Altman’s Z-score model. Extracting 81 financially distressed
firms from the Florida UCLA-LoPucki Bankruptcy Research Database during 2009– 2017, the study
found that firms which were at risk of distress tended to record a negative cash flow from operations
(CFO) and showed a greater decline in return on assets (ROA) in the year prior to default.
Adriatico (2019)’s study sought to predict companies that were listed on the Philippine Stock
Exchange and potential to corporate financial distress using the Altman’s Z-score model and current
ratio. The study revealed that 35 randomly selected companies out of 45 companies had been chosen
potential for becoming financially distressed based on Altman’s Z-score model analysis, and 12
companies were also found experiencing financial difficulties based on current ratio analysis.
As to the prediction power of models, Indriyanti (2019)’s study showed that among 7 financial distress
prediction models, namely Altman, Grover, Taffler, Zmijewski, Springate, Ohlson, and Fulmer,
Grover (96%) and Altman (86.6%) models were two top graded models of accuracy in predicting
financial distress of global 25 biggest Tech Companies in 2015–2016 Forbes’s version.
As to the prediction power of Altman’s Z-score model, Joshi (2019) made a case study of a
communication company in India, which has filed for bankruptcy in the month of February 2019. By
analyzing the financial statement and the market data of the sample, the study found that the model
was successful in predicting the upcoming financial distress of the sample, and concluded that the
sample was making losses since long and was under the gray area (i.e. distress zone) 3 years before
they filed for bankruptcy.
ϲ

Panigrahi (2019) in his study took selected 4 pharmaceutical companies in India to test their financial
distress using Altman's Z-score Model covering a period of 5 years from 2012-2013 to 2016-2017,
and after analyzing the secondary data, he commented based on his findings that the industry had a
healthy financial position because of a strong Z-score of 5.9 on an average which was much above
the cut-off score of 1.8 (as per the standard of measurement used by the author).
Mohammed (2016) also made a case study about the prediction of bankruptcy using the same model,
i.e. Altman’s Z-score model, of an Omani cement company and its subsidiaries. Using annual report’s
data for the period from 2007 to 2014, the study revealed that the samples were financially sound as
measured by a Z-score higher than the benchmark of 2.99 during almost the entire period of the study.
Sajjan (2016)’s study covered 3 listed manufacturing and 3 listed service companies in India to
predict the likelihood of bankruptcy of those firms for a period of 5 years from 2011 to 2015. The
study revealed that most of the firms were in distress zone with a Z-score below 1.81 for
manufacturing firms and below 1.1 for service firms (as per the standard of measurement used by the
author).
Mahmud (1987) in an article titled ‘Ratios as indicators of financial health’ asserted that Altman’s
Z-score and related ratios are powerful tools to predict financial health of a firm.
Under the above background, it is seen that most of the studies conducted outside Bangladesh have
used Altman’s Z-score to predict financial distress of different manufacturing and service sector
enterprises, of which some were listed and some were unlisted firms, taking several study periods. In
Bangladesh, except for a very few, no such remarkable studies have been found so far that have been
conducted using Altman’s MDA model either in manufacturing or service sector enterprises. This
almost unaddressed task in Bangladesh thus seen to be a research gap which has led the authors to
conduct this study of predicting financial distress of Bangladesh’s listed textile companies. The period
covering COVID-19 attack was also seemed to be an important point of study.
Methods of the Study
This is a predictive research study based on entirely secondary data collected from the annual
reports of the sample. The sample consists of 5 listed textile companies (100% export oriented)
selected from a total of 58 companies of said categories (as of 30 June 2021) in Bangladesh. Before
this selection, an eliminating process is applied on total number on the basis of the date of
establishment and enlistment of the samples. Further, it takes samples having comparatively older age
of operations assuming that the Altman’s model will not work properly on newly established and
enlisted companies. As such, the companies which have been established at least 12 years (i.e. an era)
ϳ

before and at the same time enlisted at least 5 years before the year of the beginning of the study
period (i.e. 2016-17) are chosen purposively as samples (see Table 1). The study takes into account a
period of 5 consecutive years from 2016-17 to 2020-21 (5- year period in many prior studies found
to consider as reasonable period for study) specially covering the period of frightening effect of
COVID-19 aggression, 2019-20 to 2020-21.
The main focus of the study is to predict the financial distress of the selected samples during
the study period. There are various models in practice to predict firms’ financial distress. However,
many studies proved that Altman’s Z-score is a powerful model of prediction of financial distress. In
fact, for the purpose of financial distress prediction irrespective of publicly traded and nonpublicly
traded manufacturing and non-manufacturing firms, this model is seen to have a first level of accuracy
rate (over 80%) over the world. Against such backdrop, this study also chooses Altman’s Z-score
model to predict corporate financial distress of the sample firms.
Altman’s Z-score model, developed by Professor E. Altman, has two dimensions using the
same (5 in numbers) financial ratios, viz. 1) liquidity, 2) age of firm and cumulative profitability, 3)
profitability, 4) financial structure, and 5) capital turnover rate (Wild et al., 2007). First, in 1968, the
model has been suggested to use for the prediction of corporate financial distress of publicly
traded companies only. Next, in 1983, modifying the coefficient values only and having no
measurable effect on prediction performance, the model has been suggested to use to generalized way
for all sorts of firms, both publicly traded and non-publicly traded companies. Since the samples are
manufacturing publicly traded companies, this study uses first model (Wild et al., 2007) to serve its
purpose. The model is as follows.
Z = 1.2 X1 + 1.4 X2 + 3.3X3 + 0.6X4 + 1.0 X5
Five financial ratios included in the above Z-score model are shown in Table 2.
Table No : Description of the financial ratios used in Altman’s Z-score model
Symbols used for Name of the ratios Formula of the ratios
the ratios
X1 Liquidity Working capital ÷ Total assets
Age of firm and cumulative profitability Retained earnings ÷ Total assets
ϴ

Profitability Earnings before interest and taxes (EBIT) ÷ Total assets
Financial structure Market value of preferred and common equity ÷ Total liabilities
In Table 2, the liquidity ratio comparing working capital to total assets used in the model will
measure the samples’ ability to meet short-term obligations; the age of firm and cumulative
profitability ratio comparing retained earnings to total assets will measure the long-term profitability
of the samples and also will give the samples an idea of how much they rely on debt for the funding
of their total assets; the profitability ratio comparing EBIT to total assets will the long-term
profitability of the samples; the financial structure ratio comparing the market value of preferred and
common equity to total liabilities will measure long-term solvency of the samples; and the capital
turnover rate comparing sales to total assets will measure the capacity of the samples’ assets to
generate sales and the capacity of their managements’ to deal with competitive conditions as well.
Based on the above discussion and taking the model into consideration, the collected data
were used to calculate the said financial ratios included in the Z-score model and combine the values
in a specific way of the model to produce a single number (i.e. an overall index), and then predict and
analyze the financial health of the sample companies as per the guidelines provided
by Professor Altman. The guidelines are shown in Table 3. Moreover, Microsoft Excel Spreadsheet
Software (MESS) was used to do all sorts of relevant calculations in this respect.
Table No 3: Altman’s guidelines to classify firms as either financially sound or bankrupt
Situations Zone of Discriminations Results

Z < 1.20 Distress or bankruptcy zone High probability of bankruptcy or failure
1.20 < Z < 2.90 Gray or ambiguous zone May or may not fail
Z > 2.90 Safe or healthy zone Low probability of bankruptcy or failure
Source. Wild et al. (2007), Joshi (2019), and Panigrahi (2019)
Table 3 indicates Altman’s guidelines to measure the corporate firms as to their financial
health based on an overall index of Z-score. A Z-score of less than 1.20 suggests that the samples will
fall in a distress zone and will have a high probability of bankruptcy, while Z-scores above 2.90 imply
that the samples will be in a safe or healthy zone and will have a low probability of bankruptcy. Scores
between 1.20 and 2.90 will be the indication of the samples staying in the gray or ambiguous zone
and they may or may not fail.
Further, in analyzing the data (i.e. Z values) over the study period, some descriptive statistics
tools, viz. mean, standard deviation, and coefficient of variation along with a graphical presentation
ϵ

are used.
Data Analysis and Findings
At the very outset of this section, data relating to Altman’s Z-score of the sample listed textile
companies for the study period are analyzed using average, standard deviation, and coefficient
of variation. Table 4 contains these positions.
Table No 4: Analysis of Z-score data by sample during the period from 2016-17 to 2020-21
Name of the Companies 2020- 2019- 2018- 2017- 2016- Mean Standard Coefficient
of
21 20 19 18 17 Deviation Variation
Envoy Textiles Ltd. 0.95 0.89 1.13 0.89 0.53 0.88 0.22 0.25
Malek Spinning Mills 2.18 1.32 1.92 2.49 3.19 2.22 0.70 0.31
Ltd.
Argon Denims Ltd. 1.98 2.05 2.42 2.61 2.85 2.38 0.37 0.16
Prime Textiles Ltd. 0.79 0.44 0.95 0.93 0.91 0.80 0.21 0.26
Square Textile Ltd. 2.37 1.66 2.39 2.80 5.28 2.90 1.39 0.48
Source. Appendices 6-10. Calculations have been done by the authors.

Table 4 shows the year-wise as well as average position of Z-score of the samples during the
study period 2016-17 to 2020-21. After putting the respective values of suggested financial ratios (see
Appendices 1-5) in the equation of the Z-score model (see the Section 4: Methods of this study), the
values of Z-score have been estimated. The average values of Z-score of the samples were 0.88
(Envoy Textiles Ltd.), 2.22 (Malek Spinning Mills Ltd.), 2.38 (Argon Denims Ltd.), 0.80 (Prime
Textiles Ltd.), and 2.90 (Square Textile Ltd.) and the coefficient of variations of their Z-score were
25%, 31%, 16%, 26% (the lowest), and 48% (the highest) respectively [here the low Z-score of Envoy
and Prime were likely to be the results of poor working capital, earnings before interest and taxes
(EBIT), and debt management (see Appendices 1, 3, and 4)]. As per Altman’s guidelines to classify
firms as either financially sound or bankrupt (see Table 3), the average values of Z-score of the
samples indicate that the financial health of Malek, Argon, and Square remained in gray/ambiguous
zone, on the other hand, the financial health of Envoy and Prime remained in distress/bankruptcy
zone. However, using the calculated values of Altman’s Z-score associated with the sample textile
firms during study periods, a classification of the firms has been made in Table 5 showing their
financial soundness according to the zone of discriminations suggested by Altan (See Table 3).
ϭϬ

Table No 5: Firms’ classification based on Altman’s Z-score
Name of the Company Period Z-score Zone of Discrimination

Envoy Textiles Ltd. 2020-21 0.95 Distress zone
2019-20 0.89 Distress zone
Malek Spinning Mills Ltd. 2020-21 2.18 Gray zone

2019-20 1.32 Gray zone
2018-19 1.92 Gray zone
2017-18 2.49 Gray zone
2016-17 3.19 Safe zone
Argon Denims Ltd. 2020-21 1.98 Gray zone
2019-20 2.05 Gray zone
2018-19 2.42 Gray zone
2017-18 2.61 Gray zone
2016-17 2.85 Gray zone
Prime Textiles Ltd. 2020-21 0.79 Distress zone
Square Textile Ltd. 2020-21 2.37 Gray zone
2019-20 1.66 Gray zone
2018-19 2.39 Gray zone
2017-18 2.80 Gray zone
2016-17 5.28 Safe zone
Source. Appendices 6-10 and Table 3.
Table 5 reveals the status of the sample companies with regard to their financial health during
the study period including the period of pandemic caused by COVID-19. Both Envoy Textiles Ltd.
and Prime Textiles Ltd. fell in financial distress zone over the entire study period from 2016-17 to
ϭϭ

2020-21 indicating a high probability of bankruptcy or failure of these two firms. On the contrary,
Argon Denims Ltd. for entire study period and Malek Spinning Mills Ltd. and Square Textile Ltd. for
the last four years from 2017-18 to 2020-21 stayed in gray zone indicating their moderate position in
terms of financial soundness that brings a meaning that they may or may not fail financially. Among
them only Malek Spinning Mills Ltd. and Square Textile Ltd. showed their financial soundness
staying in safe zone which indicates a low probability of bankruptcy or failure at the very outset of
the study period, i.e. in 2016-17. Although after 2016-17, none of the sample companies were able to
change their position from the prevailing zone of discriminations, it is observed that most of them
were able to improve their financial performance measured by Z-score during the period of COVID-
19, i.e. from 2019-20 to 2020-21. Figure 1 shows the trend of Z-score of the sample companies during
study period including the COVID-19 aggression period.
Figure No 1: Distribution of Z-score of the sample companies by years
ͲƐĐŽƌĞ
ϲ

ϱ

ϰ

ϯ

Ϯ
ͲƐĐŽƌĞ
ϭ

Ϭ

ϮϬϮϬͲϮϭ
ϮϬϭϵͲϮϬ
ϮϬϭϴͲϭϵ
ϮϬϭϳͲϭϴ
ϮϬϭϲͲϭϳ
ϮϬϮϬͲϮϭ
ϮϬϭϵͲϮϬ
ϮϬϭϴͲϭϵ
ϮϬϭϳͲϭϴ
ϮϬϭϲͲϭϳ
ϮϬϮϬͲϮϭ
ϮϬϭϵͲϮϬ
ϮϬϭϴͲϭϵ
ϮϬϭϳͲϭϴ
ϮϬϭϲͲϭϳ
ϮϬϮϬͲϮϭ
ϮϬϭϵͲϮϬ
ϮϬϭϴͲϭϵ
ϮϬϭϳͲϭϴ
ϮϬϭϲͲϭϳ
ϮϬϮϬͲϮϭ
ϮϬϭϵͲϮϬ
ϮϬϭϴͲϭϵ
ϮϬϭϳͲϭϴ
ϮϬϭϲͲϭϳ

ŶǀŽǇdĞǆƚŝůĞƐ DĂůĞŬ^ƉŝŶŶŝŶŐ ƌŐŽŶĞŶŝŵƐ WƌŝŵĞdĞǆƚŝůĞƐ ^ƋƵĂƌĞdĞǆƚŝůĞ
>ƚĚ͘ DŝůůƐ>ƚĚ͘ >ƚĚ͘ >ƚĚ͘ >ƚĚ͘
Source. Appendices 6-10.

Figure 1 provides a clear picture of Z-score calculated for the sample companies for the period
from 2016-17 to 2020-21. Revealing the significant variations, as calculated in Table 4, in year- wise
Z-score of the samples, Figure 1 exhibits that Z-score of Malek Spinning Mills Ltd., Argon Denims
Ltd., and Square Textile Ltd. exceeded 2-point line, but that of Envoy Textiles Ltd. and Prime Textiles
Ltd. did not exceed 1-point line, except for Envoy’s Z-score in 2018-19. This is also an explicit
revelation of Professor Altman’s guidelines about the firm’s classification as to either it is financially
ϭϮ

sound or bankrupt. Under the circumstances, it is also seen that except for Argon denims, the Z-score
of all other samples uplifted during the COVID-19 aggression period, i.e. from 2019-20 to 2020-21.
Under the above backdrop, the findings of this study can be summarized as per below.
• In terms of average Z-score during the study period, the majority samples, viz. Malek Spinning
Mills Ltd. (2.22), Argon Denims Ltd. (2.38), and Square Textile Ltd. (2.90), were found to be
performed above the distress zone and the other samples, viz. Envoy Textiles Ltd. (0.88) and Prime
Textiles Ltd. (0.80), within the distress zone.
• Although Envoy Textiles Ltd. and Prime Textiles Ltd. were in high risk of being bankrupt, their
Z-score tended to have an increasing tendency at the end of the study period, particularly in The period
of COVID-19 aggression (i.e. 2019-20 to 2020-21). Among other samples, Malek SpinningMills Ltd. and
Square Textile Ltd. also had their Z-score increased during the same period.
• Having comparatively a high rate of coefficient of variation in Z-score and staying at safe zone
in 2016-17 and then at gray zone from 2017-18 to 2020-21, Malek Spinning Mills Ltd. and Square
Textile Ltd. began to descend from 2017-18 to 2019-20 and thereafter started moving up from 2019-
20 to 2020-21, the period of COVID-19 aggression.
• Despite staying at gray zone, the Z-score of Argon Denims Ltd. showed a tendency to decrease
consistently over the study period along with the lowest rate of coefficient of variation.
Implications and Concluding Remarks
Any business firm usually has an inherent tendency to grow. But different key success factors,
both financial and nonfinancial or controllable and uncontrollable, influence its smooth growing.
Although many past researches used Altman’s Z-score model as a better means of predicting financial
distress, Wild et al. (2007) suggest that it should not be blindly applied without informed and critical
analysis of a company’s fundamentals. However, in the context of Altman’s Z-score model, this study
finds that the sample textile companies were not satisfactorily performing over the study period. Some
of the samples (viz. Malek Spinning Mills Ltd. and Square Textile Ltd.) with high degree of
coefficient of variation in their financial performance, measured by selected ratios in Altman’s Z-
score, were found to be gone down from safe zone to gray/ambiguous zone; some others (viz. Envoy
Textiles Ltd. and Prime Textiles Ltd.), on the other hand, with comparatively less variations in their
Z-score were found to be improved slowly, though staying in distress zone. Moreover, almost all of
the samples, except only for Argon Denims Ltd., showed a turned around in Z-score, irrespective of
their zone of discriminations, in the second year of COVID-19 aggression (i.e. 2020-21).
Eventually, it can be noted that although the Altman’s Z-score is not only the measure of
ϭϯ

predicting financial distress, the results obtained by using this model cannot be totally ignored. That
is the model can be used as an early warning to determine the financial status of a textile company.
Therefore, despite a glim of improving financial performance of the majority sample listed textile
companies is revealed by their increased Z-score amidst the COVID-19 aggression period, they must
have a strategic plan covering various key issues like bank loan, trade credit, invoice financing, long-
term borrowings, etc. that can help manage cash flows and keep the business afloat and avoid the risk
of financial distress. In fact, along with strategic planning, some other measures, such as cost-cutting,
optimizing operational efficiency, exploring new revenue streams, etc. are worth consideration to
strengthen the financial position of the textile companies in Bangladesh. Taking all these facts into
consideration, it is assumed that this study might carry some insights to the users as to the financial
health of relatively older listed textile companies of Bangladesh during a critical period, when the
corona pandemic has destroyed the global economy drastically. Moreover, both current investors in
particular and potential investors in general associated with the textile industry in Bangladesh also
may be able to choose and decide their investment options after reviewing the financial performance
of the concern as applied in this study.
References
Adriatico, Cerenio (2019). Predicting corporate failures using multi discriminant analysis and current
ratio: an empirical application to Philippines Stock Exchange. International Journal of Science
and Research (IJSR), April, 8(4):644-648. Retrieved on April 27, 2023 from
https://www.ijsr.net/archive/v8i4/ART20196831.pdf
Akhtar, Muhammad Naeem, Rehman, Kashif-ur-, and Irfan, Muhammad (2017). An empirical
investigation about the suitable financial distress prediction methods: a case from Pakistan’s
manufacturing sector. Journal of Managerial Sciences, May, XI(3):453-470.
Retrieved on May 4, 2023 from
https://www.qurtuba.edu.pk/jms /default_ files/JMS/special_edition/1%20E IEF/26%20453-
470%20Mohammad%20Naeem%20Akhtar%20EIEF-526.pdf
Alam, Md. Khurshid and Azim, Fowzul (n.d.). Law of bankruptcy in Bangladesh: a legal examination.
http://journal.library.du.ac.bd/index.php?journal=DULJ&page=article&op=viewFile&path[]=1557
&path[]= 1466
Alo, Jebun Nesa (2017). BIFC on the verge of collapse. The Daily Star, November 14. Retrieved on
April 29, 2023 from https://www.thedailystar.net/business/bifc-the-verge-collapse-1490989
ϭϰ

Anthony, Robert N and Govindarajan, Vijay (2007). Management control systems, New Delhi: Tata
McGraw-Hill, 12e:2.
Business Inspection BD (2022). Industry wise GDP contribution in Bangladesh. Business Inspection,
September 6. Retrieved on April 29, 2023 from https://businessinspection.com.bd/industry-
wise-gdp-contribution-in- bd/
DSE website: https://www.dsebd.org/company_listing.php
Indriyanti, Mia (2019). “The accuracy of financial distress prediction models: empirical study on the
world’s 25 biggest tech companies in 2015–2016 Forbes’s version” in International Conference
on Economics, Education, Business and Accounting. KnE Social Sciences, March 24, 442–450.
doi: 10.18502/kss.v3i11.4025. Retrieved on May 5, 2023 from
file:///C:/Users/user/Downloads/4025- Article%20Text-18381-1-10-20190324.pdf
Joshi, Dhara (2019). A study on application of Altman’s Z-score model in predicting the bankruptcy
of Reliance Communication. International Journal of 360 Management Review, July, 7(2):35-
47. Retrieved on April 28, 2023 from https://www.ij360mr.com/docs/vol7/ju19(4).pdf
Korath, Maya and Nayak, Surekha (2022). Financial distress prediction using accounting variable: a
revisit to Altman Z-score in the case of Indian listed companies. Journal of Positive School
Psychology, 6(3):7507- 7516.Retrieved on April 27,2023 from
file:///C:/Users/user/Downloads/FINANCIAL+DISTRESS+PREDICTION+USING+ACCOU
NTING+VARIABLE%20 (1).pdf
Mahmud, Monjur Morshed (1987). Ratios as indicators of financial health. Chittagong University
Studies (Commerce), 3.
MI (Mordor Intelligence) (2023). Bangladesh textile manufacturing market – growth, trends, COVID-
19, and forecast (2023 - 2028). Retrieved on April 29, 2023 from
https://www.mordorintelligence.com/industry- reports/bangladesh-textile-manufacturing-
industry-study-market
Mohammed, Shariq (2016). Bankruptcy prediction using the Altman Z-score model in Oman: a case
study of Raysut Cement Company SAOG and its subsidiaries. Australasian Accounting,
Business and Finance Journal, 10(4):70-80. doi:10.14453/aabfj.v10i4.6. Retrieved on April 28,
2023 from file:///C:/Users/user/Downloads/BankruptcyPredictionbyUsingtheAltmanZ-
scoreModelinOman_.pdf
Momen, Md. Nurul (2007). Implementation of privatization policy: lessons from Bangladesh. The
Innovation Journal: The Public Sector Innovation Journal, 12(2). Retrieved on April 29, 2023
ϭϱ

from https://www.innovation.cc/scholarly-style/2007_12_2_4_momen_privatization.pdf
Muller, G.H., Steyn-Bruwer, B.W., and Hamman, W.D. (2009). Predicting financial distress of
companies listed on the JSE – a comparison of techniques. South African Journal of Business
Management, March, 40(1):21- 32. file:///C:/Users/user/Downloads/Predicting_financial_
distress_of_companies_listed_.pdf
Oyedokun, Agbeja, Johnson, Adelakun O., and Blessing, Fateru E. (2015). Investigating the impact
of using accounting ratios SS a tool for measuring performance. Scholars Journal of Economics,
Business and Management, 2(9):899-907. doi: 10.36347/sjebm.2015.v02i09.001. Retrieved on
April 27, 2023 from https://www.saspublishers.com/media/articles/SJEBM_29899-907.pdf
Panigrahi, Ashok (2019). Validity of Altman's “Z” Score model in predicting financial distress of
pharmaceutical companies. NMIMS Journal of Economics and Public Policy, January,
IV(1):65-73. Retrieved on April 27, 2023 from file:///C:/Users/user/Downloads/SSRN-
id3326312%20(1).pdf
Pesek, William (2022). Bangladesh: the uphill battle begins. ASIAMONEY, April 27. Retrieved on
April 29, 2023 from https://www.asiamoney.com/article/29v99sjl7h2gd6ny8a6m8/south-
asia/bangladesh-the-uphill-battle- begins
Pranav, Nittala S V N Sai Pavan Raghava, Krishna, Ummidi Siva, Ahmad, Zeeshan, Chauhan, Anjali,
Bansal, Rohit, and Kashyap, Suresh Kumar (2020). Altman and Ohlson model in predicting
distress of Indian companies: a comparison of models. European Journal of Molecular &
Clinical Medicine, 7(8):4158-4167. Retrieved on April 28, 2023 from
https://ejmcm.com/article_6800_ad6d6e3dac5790719811164c7d5162ce.pdf
Rahman, Mahfuzur, Sa, Cheong Li, and Masud, Md. Abdul Kaium (2021). Predicting firms’ financial
distress: an empirical analysis using the F-score model. Journal of Risk and Financial
Management, 14(199):1-16. https://doi.org/10.3390/jrfm14050199.
file:///C:/Users/user/Downloads/Predicting_Firms_Financial_Distress_An_Empirical_.pf
Sajjan, Rohini (2016). Predicting bankruptcy of selected firms by applying Altman’s Z-score model.
International Journal of Research – Granthaalayah, April, 4(4):152-158. doi:
10.29121/granthaalayah.v4.i4.2016.2767. Retrieved on April 28, 2023 from
file:///C:/Users/user/Downloads/20_IJRG16_B04_67.pdf
Sakib, Sanaullah (2017). 5 top businesses default again despite loan restructure. The Prothom Alo
English, July 25. Retrieved on April 29, 2023 from https://en.prothomalo.com/business/5-top-
businesses-default-again- despite-loan
ϭϲ

Ventura, Luca (2023). The World's Biggest Bankruptcies 2023. Global Finance, April 30. Retrieved
on April 29, 2023 from https://www.gfmag.com/global-data/economic-data/worlds-biggest-
bankruptcies
Wesa, E. W. and Otinga, H. N. (2018). Determinants of Financial Distress among listed firms at the
Nairobi Securities Exchange, Kenya. The Strategic Journal of Business & Change Management,
October 29, 5(4):1057-1073. Retrieved on May 4, 2023 from
file:///C:/Users/user/Downloads/933-2746-1-PB.pdf
Wild, John J., Subramanyam, K. R., and Halsey, Robert F. (2007). Financial Statement Analysis, New
Delhi: Tata McGraw-Hill, 9e:540.
Samples’ Annual Reports:

Argon Denim Textile Ltd., 2016-17 to 2020-21
Envoy Textile Ltd., 2016-17 to 2020-21
Malek Spinning Mill Ltd., 2016-17 to 2020-21
Prime Spinning Mill Ltd., 2016-17 to 2020-21
Square Textile Ltd., 2016-17 to 2020-21
Websites:
Argon Denim Ltd.,
http://www.argondenims.com/ Envoy Textile
Ltd., https://envoytextiles.com/
Malek Spinning Mill Ltd., https://www.newasiabd.com/malekspinni
ng.php Prime Spinning Mill Ltd,
http://primegroup.com.bd/index.php?menu_id=57• Square Textile Ltd.,
https://textile.squaregroup.com/
ϭϳ

Appendices
Appendix 1. X1 = Working capital ÷ Total assets

Name of the Company 2020-21 2019-20 2018-19 2017-18 2016-17
Envoy Textiles Ltd. 0.043342321 0.038214967 0.026511314 -0.025652132 -0.058351616
Malek Spinning Mills 0.206246275 0.207418595 0.23266575 0.263102471 0.259096296
Ltd.
Argon Denims Ltd. 0.322119728 0.333577881 0.310269096 0.35205955 0.335685861
Prime Textiles Ltd. 0.100156539 0.064156617 0.022019065 0.004541985 -0.005333188
Square Textile Ltd. 0.215072244 0.01259757 0.069659844 0.055161726 0.222273168
Source. Calculations have been done by the authors using data from the annual reports of the
sample firms.
Appendix 2. X2 = Retained earnings ÷ Total assets
Envoy Textiles Ltd. 0.099677626 0.10860007 0.108669763 0.082778136 0.08049107
Ltd.
Argon Denims Ltd. 0.192803796 0.2188758 0.2217734 0.199809366 0.1764472
Prime Textiles Ltd. 0.020873041 0.008898676 0.032691743 0.025459747 0.014287193
sample firms.
Appendix 3. X3 = Earnings before interest and taxes (EBIT) ÷ Total assets
Malek Spinning Mills 0.037641698 -0.008606411 0.010862352 0.021840949 0.021637349
Ltd.
Argon Denims Ltd. 0.016133451 0.041852713 0.081612853 0.086088619 0.087552004
Prime Textiles Ltd. 0.006682857 -0.019515857 0.007897721 0.012570297 0.013739704
sample firms.
Appendix 4. X4 = Market value of preferred and common equity ÷ Total liabilities
Ltd.
Argon Denims Ltd. 1.293886848 1.056415248 1.375945365 1.573262024 2.156394485
sample firms.
ϭϴ

Appendix 5. X5 = Sales ÷ Total assets
Ltd.
Argon Denims Ltd. 0.497289256 0.566013988 0.645224027 0.678805263 0.616623672
sample firms.
Appendix 6. Calculation of Z-score: Envoy Textiles Ltd.
2020-21 2019-20 2018-19 2017-18 2016-17
X1*1.2 0.052010786 0.045857961 0.031813577 -0.030782558 -0.070021939
X2*1.4 0.139548676 0.152040097 0.152137668 0.115889391 0.112687498
X3*3.3 0.051309209 0.052593307 0.121078228 0.067523458 0.072153851
X4*0.6 0.239521979 0.184487674 0.311003898 0.305316043 0.036539162
X5*1 0.464637478 0.45400553 0.512517547 0.432784955 0.378493769
Z-score 0.947028128 0.88898457 1.128550918 0.890731288 0.529852342
Z-score (0.00 0.95 0.89 1.13 0.89 0.53
places)
Appendix 7. Calculation of Z-score: Malek Spinning Mills Ltd.
2020-21 2019-20 2018-19 2017-18 2016-17
X1*1.2 0.24749553 0.248902314 0.2791989 0.315722965 0.310915555
X2*1.4 0.090573332 0.043456567 0.074096629 0.097779962 0.105310931
X3*3.3 0.124217604 -0.028401155 0.035845761 0.072075131 0.071403252
X4*0.6 1.341133711 0.683608168 1.117756127 1.542716093 2.309393029
X5*1 0.380712185 0.367052171 0.410748931 0.464473513 0.396729638
Z-score 2.184132363 1.314618065 1.917646348 2.492767664 3.193752404
Z-score (0.00 2.18 1.32 1.92 2.49 3.19
places)
Appendix 8. Calculation of Z-score: Argon Denims Ltd.
2020-21 2019-20 2018-19 2017-18 2016-17
X1*1.2 0.386543674 0.400293457 0.372322915 0.42247146 0.402823034
X2*1.4 0.269925314 0.306426119 0.31048276 0.279733112 0.24702608
X3*3.3 0.053240388 0.138113954 0.269322416 0.284092443 0.288921613
X4*0.6 0.776332109 0.633849149 0.825567219 0.943957215 1.293836691
X5*1 0.497289256 0.566013988 0.645224027 0.678805263 0.616623672
Z-score 1.983330741 2.044696667 2.422919338 2.609059493 2.849231089
Z-score (0.00 1.98 2.05 2.42 2.61 2.85
places)
ϭϵ

Appendix 9. Calculation of Z-score: Prime Textiles Ltd.
2020-21 2019-20 2018-19 2017-18 2016-17
X1*1.2 0.120187847 0.07698794 0.026422878 0.005450382 -0.006399825
X2*1.4 0.029222257 0.012458146 0.04576844 0.035643646 0.02000207
X3*3.3 0.022053428 -0.064402328 0.026062479 0.041481982 0.045341024
X4*0.6 0.212712968 0.153320761 0.401259902 0.398005462 0.372176045
X5*1 0.408750403 0.26395248 0.447360199 0.445277624 0.47993514
Z-score 0.792926904 0.442316999 0.946873899 0.925859095 0.911054454
Z-score (0.00 0.79 0.44 0.95 0.93 0.91
places)
Appendix 10. Calculation of Z-score: Square Textile Ltd.
2020-21 2019-20 2018-19 2017-18 2016-17
X1*1.2 0.258086693 0.015117084 0.083591813 0.066194072 0.266727801
X2*1.4 0.484236855 0.484302002 0.567573862 0.520972966 0.682880531
X3*3.3 0.15689989 0.020962727 0.111042471 0.121855704 0.130743058
X4*0.6 0.692902561 0.469598911 0.943897192 1.41471648 3.530672172
X5*1 0.773382443 0.66985912 0.686727479 0.675522626 0.668380745
Z-score 2.365508442 1.659839845 2.392832817 2.799261847 5.279404307
Z-score (0.00 2.37 1.66 2.39 2.80 5.28
places)
ϮϬ

AN OVERVIEW OF SECURITY ISSUES AND CHALLENGES
RELATING TO BLOCKCHAINTECHNOLOGY
Himalaya Singh*
Dr. Shilpa Vardia **
ABSTRACT
Blockchain technology (BT) is one of the most popular problems in the recent years, it has already changed
people’s lifestyle in some specific area due to its hugeeffect on many organizations or institute, and What itcan
do will still continue to cause impact in many places. Although the characterization of (BT) blockchain
technologies can bring us more reliable and suitable services, the security issues and challenges behind this
modern technology are also an importanttopic that we need to worry about.
Keywords: Blockchain, Technology, Security issue, risks, Cryptocurrency, Ethereum, Smart contract.
Introduction
Bitcoin, Cryptocurrency, Ethereum, Smart contract is the initial application of blockchain, it’s a types of
digital currency based on (BT) blockchain technology, using for trade things on the internet like money as we
do in the real world. Because the success of Bitcoin, Cryptocurrency, Ethereum, Smart contract citizens now can
use blockchain technology in a lot of area and service, such as financial market,IT, supply chain, voting, medical
treatment andstorage.
But as we use these tools or services in our daily lives, cyber criminals also have the opportunity to
engage in cyber-crime. For example, 70-75% ofattacks are a classic security issue in Bitcoin, Cryptocurrency,
Ethereum, Smart contract that hackers try to control the system's mechanisms using the same technology base.
In this paper, we will have a pilot study about 1, what is blockchain technology in Section 2, then we’ll discuss
different application in blockchain 3, and what service do they offer in Section 4, at the end, we shall talk about
the security issues and those challenges we need to overcome in Section 5, The paper is concluded in Section.
*Research Scholar, Department of Accountancy and Business Statistics, University College of Commerce
and Management Studies (Mohanlal Sukhadia University, Udaipur, Rajasthan),
[email protected]
**Assistant Professor, Department of Accountancy and Business Statistics, University College of Commerce
and Management Studies(Mohanlal Sukhadia University, Udaipur, Rajasthan), [email protected]

Concept of Blockchain
It is not presently only single individual technique, but contains Cryptography, mathematics, Algorithm
and economic financial model, combine (P2P) peer- to-peer networks and using distributed consensus algorithm
to solve traditional distributed database coordinate problem, it’s an integrated multifield infrastructure
construction.
The blockchain technology expressed of six key fundamentals.
Decentralized
The essential attribute of blockchain, means that blockchain doesn’t have to rely on centralized node
anymore, the data can be collection, classification, record, store.
Transparent
The data’s record by blockchain system is transparent to each node, it also transparent on update the
data, that is why blockchain can be trusted.
Open Source
Most blockchain system is open to everyone, record can be check publicly and people can also use
blockchain technologies to create any application they want.
Autonomy
Because of the base of consensus, every node onthe blockchain system can transfer or update data safely,
the idea is to trust form single person tothe whole system, and no one can intervene it.
Immutable
Any records will be reserved forever, and can’tbe changed unless someone can take control morethan 70%
node in the same time.
Anonymity
Blockchain technologies solved the trust problem between node to node, so data transfer or even transaction
can be anonymous, only need to knowthe person’s blockchain address.

Figure No 1: The structure of block chain
How Blockchain Works?
The main working processes of blockchain are asfollows:

1 The sending node records new data and broadcasting on the network.
2 The receiving node checked the message from thedata it received, if the message was correct it would be
stored in a block.
3 Execute the Proof of Work (PoW) or Proof of Share (PoS) algorithm for all received nodeblocks in the
network.
4 After executing the consensus algorithm theblock will be stored in the series, each node in thenetwork
accepts this block and will continuously expand the chain base on this block.
The Structure of Blockchain
Normally in the block, it contains main data, hash ofprevious block, hash of current block, timestamp and
other information. Figure 1 shows the structure of block.
Main data. Depending on what service is this blockchain applicate, for example: transactionrecords, bank
clearing records, contract records or IT data record.
Hash.
When a transaction was executed, it was hashed in a code and then transmitted to each node. Because it
can contain thousands of transaction records in each node's block, the blockchain used the Merkle Tree
function to generate the final hash value, which is also the Merkal Tree Root. This final hash value will be
recorded in the block header (the hash of the current block), using the Merkle tree function, data transmission
and computing resources canbe significantly reduced.
Time stamp. Time of generated block.

Other Information. The block defines signatures, Nonce values, or other data like that the user.
How to Get Consensus?
The consensus function is a mechanism that consentsall blockchain nodes in a single message, can ensure
that the latest block is added correctly to the chain, guarantee that the message stored by the node was thesame
and will not be a 'fork attack', even protecting against malicious attacks.
Proof of Work (PoW)
Proof of work is a piece of data that is difficult (expensive or time-consuming) to produce but easy to
verify for others and that meets certain requirements. Preparing a proof of work can be a random process with
little probability so that on average a lot of trialand error is required before valid proof of work can begenerated.
Bitcoin uses hashcash proof of the work system.
When calculating a POW, it is called 'mining'. Eachblock has a random value called 'nones' in the
blockheader, by changing this nons value, the POW mustgenerate a value that makes this block header hash
value less than the 'difficulty target' that has alreadybeen set. The difficulty means how long it will take
when the node calculates the hash value less than thetarget value. In order for network participants to accept
a block, miners must complete a proof of work that covers all the data in the block. The difficulty ofthis work
is adjusted so as to limit the rate at which anew block can be generated every 5 minutes by the network. Due
to the very low probability of successfulgeneration, it makes it unpredictable which worker computer in the
network will be able to generate thenext block.
Proof of Stake (PoS)
Because the proof method of work will waste a lot ofelectrical power and computing power, the proof of
the stakes does not require expensive computing power. With proof of stake, the resource that is compared
is the amount of bitcoin that a miner owns, someone holding 2% of bitcoin can mine 2% of the'proof of stake
block'. Proof of the stake method canprovide increased protection from malicious attacks on the network.
Additional security comes from two sources:
1 Carrying out an attack would be much moreexpensive.

2 Less incentive for attack. The attacker must own almost the majority of all bitcoins. Therefore, theattacker
suffers severely from his own attack.

Figure No 2: Public blockchain Figure No 4: Private blockchain
Figure No 3: Consortium blockchain
Type of Blockchain
Blockchain technologies can be roughly divided intothree types.

1 Public blockchain:Everyone can check and verify transactions, as well as participate in the process of
achieving consensus. Eg: Both Bitcoin and Ethereum are public blockchains. Figure 2 shows a public
blockchain
2 Consortium blockchains: This means that the nodes that have authority can be chosen in advance,
usually there is a business-to-business- like partnership, data in the blockchain can be open or private, it
can be seen as partially decentralized Is. Like Hyperledger and R3CEV are both consortium blockchains.
Figure 3 shows the consortium blockchain.
3 Private blockchain: Node will be restricted, not every node can participate in this blockchain, there is
strict authorization management on data access. Figure 4 shows a private blockchain.
Application of Blockchain Technology
Blockchain technologies can be used in many areas, not only in financial applications, but also in other
industries.

Digital Currency: Bitcoin
Bitcoin's data structure and transaction system were created by blockchain technology, making bitcoin a
digital currency and online payment system. By using encrypted technology, money transfers can be achieved
and there is no need to depend on a central bank.
Bitcoin used public key addresses to send and receive bitcoins, record transactions, and personal IDs were
anonymous. The process of verifying a transaction requires the computing power of other users to achieve
consensus, and then record the transaction in the network.
Smart Contract: Ethereum
Smart contract is a digital contract that controls the digital assets of the user, formulates the rights
and obligations of the participant, will be automatically executed by the computer system. It is not just a
computer process, it can be seen as one of the contract participants, it will respond to receive messages and
store data, and it can also send messages or valuesout. The smart contract is like a person that can be trusted,
temporarily hold the asset and will follow the orderthat has already been programmed. Ethereum is an
open source blockchain platform that combines smart contracts, offering a decentralized virtual machine to
handle contracts, using its own digital currency called ETH, people can run many different services,
applications or contracts on this platform.
Hyperledger
Hyperledger is an open source blockchain platform, focused on ledgers designed to support global
business transactions, including major technology, financial and supply chain companies, with the goalof
improving multiple aspects of performance and reliability. The project aims to bring together several
independent efforts to develop open protocols and standards by providing a modular framework that
supports different components for different uses. It will consist of different types of blockchains with
their own consensus and storage models, and services for identity, access control, and contracts.
Other Applications
There are still many use cases for blockchain technologies, such as protection of intellectualproperty,
traceability in supply chains, identity authentication, insurance, international payments, IOT, medical
treatment or patient privacy in prediction markets.

Security Issues and Challenges
So far, blockchain has been paid a lot of attention in various fields, however, it also exists some
problemsand challenges need to be addressed.
The Majority Attack (51% Attacks)
With Proof of Work, the probability of mining a blockdepends on what the miner does (e.g. CPU/GPU
cycles spent checking hashes). If it holds 51% of thecomputing power, it will be able to take control of this
blockchain. Obviously, this causes security issues. If someone has more than 51% computing power, he
can find the nonce value faster than others, which means he has the right to decide which block is acceptable.
What can it do?
• In the case of modified transaction data, adouble spending attack may occur.
• The block verifying transaction should bestopped.
• The goal is to stop the miner from mining anyavailable block.
A majority attack was more feasible in the past whenmost transactions were significantly higher than the
block reward and when the network hash rate was very low and prone to reorganization with the advent of new
mining techniques.
Fork Problems
Another problem is the fork problem. The fork issue is related to the decentralized node version,
compromised when software is upgraded. This is a very important issue as it covers a wide range of
blockchains.
Types of Forks
When a new version of the blockchain software is published, the new agreement on the consensus rules is
also changed in the nodes.

Figure No 5: Hard Fork
Therefore, nodes in the blockchain network can be divided into two types, new nodes and old nodes. so
here comes the four situations.
3 New nodes agree to the transaction of theblock that is being sent by the old nodes.
4 New nodes do not agree to the transaction ofthe block that is sent by the old nodes.
5 Old nodes agree to the transaction of theblock that is sent by the new nodes.
6 The old nodes do not agree with the transaction of the block that is being sent bythe new nodes.
Due to these four different cases in achieving consensus, fork problems occur, and according to these
four cases, fork problems can be divided into two types, hard fork and soft fork. In addition to
separating new nodes and old nodes,we have to compare the computing power of new nodes with old
nodes, and assume that the computing power of new nodes is greater than 50
• Hard Fork
Hard fork means that when the system comes to a new version or new agreement, and it was not
compatible with the previous version, the old nodes could not agree to the mining of the newnodes, so
a series became two series. Althoughthe new nodes computing power was stronger than the old nodes,
the old nodes would still continue to maintain the chain which though it was correct. Figure 5 shows the
hard fork problem.
When there is a hard fork, we have to request allnodes in the network to upgrade the, agreement, nodes
that have not been upgraded will not continue to work normally. If the more old nodes were not
upgraded, they would continue to work on other completely different series, meaning that the ordinary

Figure No 6: Hard Fork happens because the old node verification requirement is much
stricter than the new node
Figure No 8: Soft Fork happens because the new node verification requirement ismuch stricter
than the old node
Figure No 7: Compatible hard fork

series would split into two series. Figure 6 shows the reason why there would be a hard fork.
Soft Fork
Soft fork means that when the system comes to a new version or new agreement, and it was not compatible
with the previous version, the new nodes could not agree to the mining of the old nodes. Because the computing
power of new nodes is stronger than that of old nodes, blocksmined by old nodes will never be approved by
new nodes, but new nodes and older nodes willstill continue to operate on the same chain. Figure 7 shows the
soft fork problem. When there is a soft fork, the nodes in the network do not need to upgrade to the new
agreement at thesame time, it allows to upgrade gradually. Not likehard fork, soft fork will only have one chain,
it willnot affect the stability and effectiveness of the system when nodes are upgraded. However, soft fork
makes the old node unaware that the consensus rule has changed, contrary to the theory that everynode can verify
somewhat correctly. Figure 8 showsthe reason why there would be a soft fork.
Scale of Blockchain
As the blockchain grows, the data becomes biggerand bigger, the loading of stores and computing will
also become harder and harder, it takes a lot of time to synchronize the data, at the same time, the data still
grows, bringing a big problem to the customerwhen running the system
Simplified Payment Verification (SPV)
This is a payment verification technique, without maintaining complete blockchain information, onlythe
block header message has to be used. This technology can greatly reduce user storage in blockchain payment
verification, reducing user pressure if there is a huge increase in transactions inthe future.
Time Confirmation of Blockchain Data
Compared to traditional online credit cardtransactions, usually take 2 or 3 days to confirm thetransaction,
only 1 hour has to be used to verify bitcoin transactions, it is much better than usual, but it is still not enough what
we want. Lightning network is a solution to solve this problem. Lightning Network is a proposed
implementation of hashed timelock contracts (HTLC) with bidirectional payment channels that allow payments
to be safely routed across multiple peer-to-peer (P2P). payment channels. This allows the formation of a
network where any coworker on the network can pay another coworker, even if they do not have a channel
directlybetween each other.

Current Regulations Problems
For example, use the characteristics of a decentralized system, will weaken the central bank's ability to
control economic policy and the amount of money,which alerts the government to blockchain technologies,
the authorities will have to research this new issue, accelerate the formulation of new policy,otherwise it will
put the market at risk.
Integrated Cost Problem
Of course it will cost a lot, including time and money,to replace the existing system, especially when it is an
infrastructure. We have to ensure that this innovative technology not only produces economic benefits, meets
the requirements of supervision, but also bridges with the traditional organization, and it always faces
difficulties from the internal organization that now exists.
Conclusions
There is no doubt that blockchain is a hot issue in recent years, although it has some topics that we need
to pay attention to, with the development of new technology on the application side as well as some problems
already improved, which is becoming more and more mature and stable.
The The government must make relevant laws for thistechnology, and the enterprise must be prepared to
embrace blockchain technologies, preventing that it has too much impact on the current system.
While we enjoy the benefits of blockchain technologies, at the same time, we still have to be cautious
on its impact and security issues that it mayhave.
References
A. Gervais, G. O. Karame, K. Wu¨st, V. Glykantzis, H. Ritzdorf, and S. Capkun, “On the security and
performance of proof of work blockchains,” in Pro- ceedings of ACM SIGSAC Conference on
Computer and Communications Security (CCS’16), pp. 3–16, New York, NY, USA, 2016.
A. Gervais, G. O. Karame, V. Capkun, and S. Cap- kun, “Is bitcoin a decentralized currency?,” IEEE
Security Privacy, vol. 12, pp. 54–60, May 2014.
A. Gervais, H. Ritzdorf, G. O. Karame, and S. Cap- kun, “Tampering with the delivery of blocks and
transactions in bitcoin,” in Proceedings of the 22Nd ACM SIGSAC Conference on Computer and
Com- munications Security (CCS’15), pp. 692–705, New York, NY, USA, 2015.
A. Kosba, A. Miller, E. Shi, Z. Wen, and C. Pa- pamanthou, “Hawk: The blockchain model of cryp-
tography and privacy- preserving smart contracts,” in 2016 IEEE Symposium on Security and Privacy

(SP’16), pp. 839–858, May 2016.
E. Heilman, A. Kendler, A. Zohar, and S. Goldberg, “Eclipse attacks on bitcoin’s peer- to-peer network,”
in 24th USENIX Security Symposium, pp. 129–144, Washington, D.C., 2015.
G. Karame, “On the security and scalability of bitcoin’s blockchain,” in Proceedings of ACM SIGSAC
Conference on Computer and Communications Secu- rity (CCS’16), pp. 1861– 1862, New York, NY,
USA, 2016.
G. O. Karame, “Two bitcoins at the price of one? double-spending attacks on fast payments in bitcoin,”
in Proceedings of Conference on Computer and Communication Security, pp. 1–17, 2012.
H. Watanabe, S. Fujimura, A. Nakadaira, Y. Miyazaki, A. Akutsu, and J. Kishigami, “Blockchain contract:
Securing a blockchain applied to smart contracts,” in IEEE International Conference on Consumer
Electronics (ICCE’16), pp. 467– 468, Jan. 2016.
I. Eyal and E. G. Sirer, “Majority is not enough: Bitcoin mining is vulnerable,” CoRR, vol.
abs/1311.0243, 2013.
I. Bentov, A. Gabizon, and A. Mizrahi, “Cryp- tocurrencies without proof of work,” CoRR, vol.
abs/1406.5694, 2014.
J. Bonneau, A. Miller, J. Clark, A. Narayanan, J. A. Kroll, and E. W. Felten, “Sok: Research perspectives
and challenges for bitcoin and cryptocurrencies,” in IEEE Symposium on Security and Privacy, pp.
104– 121, May 2015.
J. Garay, A. Kiayias, and N. Leonardos, The Bit- coin Backbone Protocol: Analysis and Applications, pp.
281–310, Springer Berlin Heidelberg, Berlin, Hei- delberg, 2015.
J. Singh, “Cyber-attacks in cloud computing: A case study,” International Journal of Electronics and In-
formation Engineering, vol. 1, no. 2, pp. 78–87, 2014.
L. Luu, V. Narayanan, C. Zheng, K. Baweja, S. Gilbert, and P. Saxena, “A secure sharding protocol for
open blockchains,” in Proceedings of ACM SIGSAC Conference on Computer and Communica-
tions Security (CCS’16), pp. 17– 30, New York, NY, USA, 2016.
M. Rosenfeld, “Analysis of hashrate-based double spending,” CoRR, vol. abs/1402.2009, 2014.
N. T. Courtois and L. Bahack, “On subversive miner strategies and block withholding attack in bitcoin
digital currency,” CoRR, vol. abs/1402.1718, 2014.
S. King and S. Nadal, Ppcoin: Peer-to-peer Crypto-Currency with Proof-of-Stake, 2012.
(https://archive.org/stream/PPCoinPaper/ ppcoin-paper_djvu.txt)
S. Nakamoto, Bitcoin: A Peer-to-Peer Electronic Cash System, Feb. 24, 2013. (http://bitcoin.org/
bitcoin.pdf) security, exploits, and vulnerabilities,” International Journal of Electronics and
Information Engineering, vol. 3, no. 1, pp. 10–18,2015.
W. T. Tsai, R. Blower, Y. Zhu, and L. Yu, “A system view of financial blockchains,” in IEEE Symposium
on Service-Oriented System Engineering (SOSE’16), pp. 450–457, Mar. 2016.
Y. Sompolinsky and A. Zohar, Secure High- Rate Transaction Processing in Bitcoin, pp. 507–527, Springer
Berlin Heidelberg, Berlin, Heidelberg, 2015.

A STUDY ON IMPACT OF ARTIFICIAL INTELLIGENCE IN
ACCOUNTANCY: A CASE STUDY OF SMALL SCALE INDUSTRIES OF
ODISHA
Dr. Samira Patra*
ABSTRACT
Introduction: Paperless accounting presenting the aspects of accounting with artificial intelligence
or technology. The accounting industry is one of the industries that has been seen to have a growth in
digitalization and is expected to grow even more. The technology brought up changes in recent times
through traditional book-keeping method was once characterized manually sitting over hour-long to
up gradation without any visual presentation. All most all typesof business organisation now find easy
and hassle-free uses of digital accounting for recording and interpretation of results of business
transactions.
Research Gap: A good no. of researches have been conducted in the area of digital accounting and
accounting industry in India as well as the whole world, but no remarkable study has been made as
regards to impact of artificial intelligence on accountancy and accountant for small scale industries of
Odisha.
Objectives: This paper attempts to understand the impact of digitalization or Artificial Intelligence of
accounting profession on Small Scale Industries of Odisha. This paper also study the relationship
between the status quo (present state of affairs) and developmental trends of digitalisation or Artificial
Intelligence in accounting.
Research Methodology:
a. Nature and Sources of Data: The study is based on primary and Secondary Data. The primary
data have been collected through well design questionnaire and indirect interviews. The
secondary data have been collected from various secondary sources like journals, magazines,
and from various reputed websites. The collected data have been classified and tabulated
according to the requirements of the study.
b. Tools of Analysis: There are various tools like percentage calculations; chi-square test, t-Test
have been used for analysis and interpretation of results.
*Assistant Professor, PG Department of Commerce, Rajdhani College, Bhubaneswar, Odisha

Conclusions: Artificial intelligence systems can be very powerful and are improving quickly. They
provide outputs that can be extremely accurate, replacing and, in some cases, far superseding human
efforts. However, they do not replicate human intelligence. We need to recognise the strengths and
limits of this different form of intelligence, and build understanding of the best ways for humans and
computers to work together.
Keywords: Artificial intelligence, Digitalisation of Accounting, Technology, traditional book-

keeping, accountancy and accountant.
JEL Classification: M40, M41, M42, O33
INTRODUCTION
Artificial intelligence (AI) is one of the most important technologies for the future; alongside
with Internet of Things, cloud computing, block-chain. It is considered the ability of a machine to
imitate human actions like communication, decision taken. Some benefits of implanting Artificial
Intelligence solutions, such as the possibility of obtaining more accurate results and time saving while
processing a large amount of data are already known in different fields of activity. Artificial
Intelligence solutions does not represent a new subject for researchers or a common practice for
advanced companies in technology but is an interesting topic for study cases, mainly their impact on
the accounting filed.
Accountants are already using the technology in their daily activities to improve the results and
reduce the time spend. In this case AI systems implementation will not be an unknown step in their
career. But this comes with considerable benefits as achieving objectives using data-driven decision
making, can find insights on the results of the business using data analytics and can save significant
amount of time, that would normally be spend on repetitive activities.
It is also the first step in developing a guide for accounting professionals of the best common
practices needed to survive on the new work environment. The recent academic interest on the impact
of AI in accounting profession is represented by a limited number of studies. On the last years
researchers observed the increasingly trend of integrating new AI solutions in the business but in the
accounting profession there is still a need for more in depth researchers in this area. The target audience
of this research is represented by the companies willing to implement AI in their accounting activities
and by the accounting specialists which will be forced to adapt to the new working conditions.

In order to offer help in this scope the objective of this research is to conduct an in-depth
analysis of the existing papers about AI in the accounting profession This paper is organized on the
following way: it begins with an overview of the current literature on the impact of AI solutions in the
accounting professions. Next section is presenting the implications of AI solutions on accounting
profession and the necessary steps to be followed by companies and employees in order to get the
best results. In the final part this paper we are disclosing conclusions, study limitations and some
directions for a future investigation on the topic.
REVIEW OF LITERATURE
The extensive literature review provides the platform for the fundamentals and the researches
have been undertaken by the various researchers in the particular and related area.
Toshniwal, R. (2016), in the paper “E- Accounting: The Necessity of Modern Business” studied E-
accounting practices adopted by the modern businesses and concluded that E- accounting is new
development in the field of accounting. In this system, every document and records exist in digital
form instead of on paper. All major institutions and organizations at national and international level
are in the favour of e-accounting.
Mancini and et. el. (2017) in the paper “Trends of Digital Innovation Applied to Accounting
Information and Management Control Systems” studied about the trends of digital innovation applied
to accounting information and management control system and concluded that the digitalisation of
data, information and flows requires an additional effort of research, especially in the field of
accounting information and management control systems.
Gulin and et. el. (2019), in the paper “Digitalization and the Challenges for the Accounting
Profession”, analysed and systematized the key challenges that digitalization brings for the accounting
profession and concluded that Digitalization and the development of information technologies
represent a great opportunity for companies.
Begum, D. (2019), in the paper “Digital Transformation of Accounting in India” studied how digital
accounting businesses could set up a general business model, in order to be a successfully digitalized
business and concluded that the development of technology is required for the development of digital
accounting and finance across the country and helped to transform the country into knowledge of
digitalization heaven.
Khanom, T. (2020), in the paper “The Accountancy Profession in the age of Digital Transformation:
Challenges and Opportunities” studied the theoretical basis for them who are somehow connected or
will be attached to the world of accounting in future and concluded that Accounting professionals who
are knowledgeable in international standards, regulations, and processes will thri

Kruskopf, S. and et. el. (2020), in the paper “Digital accounting and the human factor: Theory and
Practice” studied the technological disruptions shaping these fields and also look at how they might
influence future jobs and required skills and concluded that a promising and innovative future, where
human-machine cooperation will be key and the individuals with the right skillsets will be set to
prosper in this future.
Bhlmanl, A. (2020), in the paper “Digital Data and Management Accounting: Why We Need to
Rethink Research methods” explored the continued applicability of conventional methodological
thinking when carrying out investigations within digital data environments to inform management
accounting studies and by highlighting the necessity, where digitalisation exists, to question modes of
posing questions and to reconsider the applicability of methodological precepts deployed by
management accounting researchers to date.
Syrtseva, S. and et. el. (2021) in the paper “Digital Technologies in The Organization of Accounting
and Control of Calculations for Tax Liabilities of Budgetary Institutions”, examined the main tools of
digital technologies in the organization of accounting and control, which can be effectively applied at
all stages of tax administration and optimize activities all participants in tax relation and concluded
that the digitalization in the organization of accounting and control of settlements for tax liabilities and
the process of servicing taxpayers will increase the level of tax culture.
Trisnadewi and et. el. (2021), in the paper “Determinants of the use of Digital-Based Accounting
Information Systems Micro, Small and Medium Enterprises in Denpasar City”, studied about the
Digital-Based Accounting Information Systems Micro, Small and Medium Enterprises in Denpasar
City and concluded that that computer anxiety can be overcome by developing self-control from within
the individual, in this case the student MSME managers must feel confident in their personal abilities
that the use of information systems can be achieved if MSME managers are increasingly developing
internal locus of control.
Isbil, N. and et. el. (2021), in the “Digital Reporting in Accounting: XBRL and Integration to
Accounting Department Curriculum”, analysed the necessity of integrating XBRL into the accounting
curriculum in Turkey and makes some practicable suggestions on how XBRL can be integrated into
accounting curriculum and concluded that the courses in the curriculum do not incorporate information
about XBRL. Thus, the study suggests how XBRL can be integrated into the existing curriculum at the
compulsory courses.
Hasam, A. R. (2022), in the paper entitled “Artificial Intelligence (AI) in Accounting & Auditing: A
Literature Review”, reviewed the application of Artificial Intelligence (AI) in Accounting and
Auditing and concluded that AI development and implementation in the accounting and auditing
profession can be viewed as a double-edged sword
RESEARCH GAP
The above review of literature shows that a good no. of researches have been conducted in the
area of artificial intelligence and accounting, but no remarkable study has been made as regards to the
opportunities and challenges brought by AI solutions to the accounting profession for the Small Scale
Industries in Odisha.
OBJECTIVES
The objectives of the study are as follow:
➢ To understand the impact of digitalization or Artificial Intelligence of accounting profession

on Small Scale Industries of Odisha.
➢ To Study the relationship between the status quo (present state of affairs) and developmental
trends ofdigitalisation or Artificial Intelligence in accounting.
RESEARCH METHODOLOGY
i) Nature and Sources of Data: The study is based on primary data and Secondary Data.
ii) Sources of Data: The primary data have been collected through well design questionnaire and
indirect interviews. The secondary data have been collected from various secondary sources like
journals, magazines, and from various reputed websites. The collected data have been classified
and tabulated according to the requirements of the study.
iii) Sample Size: The sample data consists of 200 respondents comprises Businessman, accounting
professional, accounting educator, accounting students and Chartered Accountant.
iv) Time of Study: Data have been collected during July-December, 2022.
v) Tools of Analysis: There are various tools like percentage calculations; chi-square test, t-Test
have been used for analysis and interpretation of results.
RESEARCH HYPOTHESIS
➢ There is a significant relationship between accounting industry and impact of digital

accounting on the small scale business of Odisha.
➢ There is no significant relationship between the status quo (present state of affairs) and
developmental trends of digitalisation in accounting.
DATA ANALYSIS AND INTERPRETATION
The sample data consists of 200 respondents comprises Businessman, accounting professional,
accounting educator, accounting students and Chartered Accountant of Odisha.
The table no. 1 shows that out of 200 respondents 35% are from rural/semi-rural area and 65%
belongs to city/town area. The test statistics χ² show that null hypothesis there is no difference between
rural/semi-rural and town/city respondents has rejected as calculated value is greater than
the table value /P value. So, there is a significant difference between rural/semi-rural and town/city
respondents. Out of 200 respondents 58% are male and 42% female. Out of 200 respondents 25% are
below 25 age groups, 35 % are 26-40 age groups and 40% belongs to above 40 age groups. Out of 200
respondents 09% have educational qualification up Graduation, 06 % have UG-PG qualification and
85% have above Post-Graduation. 55 % respondents have capital contribution up to ₹ 5 lacs
contribution and 45% respondents have above ₹ 5 lacs capital contribution.
Table No 1: Profile of Sample

No. of % to Test No. of % to Test
Profile Profile
Respondents Total Statistics Respondents Total Statistics
Location χ²=18 Gender χ²=5.12
Rural/Semi-Rural 70 35 P= 3.814 Male 116 58 P= 3.814
Town/city 130 65 df=1 Female 84 42 df=1
Age Education
Up to 25 50 25 χ²= 7 Up to Graduation 18 9 χ²=240.52
26-40 70 35 P= 5.991 UG- PG 12 6 P= 5.991
Above 40 80 40 df=2 Above PG 170 85 df=2
Amount of Capital Invested No. of Years’ Experience
Up to ₹ 2 Lac 22 11 χ²=44.92 Up to 20 Years 66 33 χ²=13.24
₹ 2 Lac- ₹ 5 Lac 88 44 P= 5.991 20-30 years 88 44 P= 5.991
₹ 5 Lac above 90 45 df=2 Above 30 46 23 df=2
Sample Size 200 100 Sample Size 200 100
(Source: Collected and compiled from Field Study)
Results and discussions

Due to the implementation of Artificial Intelligence solutions is a myth, the business of losing
the human control, for the accounting profession. AI represents a complement to human intelligence,
and this will bring benefits to the accounting profession, enabling the accounting domain to interact
better and support more the management functions of the business.
In order to be prepared to integrate the solutions provided by artificial intelligence into the
regular activity’s accountants need to focus on developing new skills and abilities. The first set of skills
to be impacted professional skills, every accountant needs to constantly improve his/her professional
capabilities throughout their career. Secondly the focus should be on enhancing the

management skills. Even if an accountant will not become manager, if these skills, are available, it
will increase the chances to reach a management position when available and wanted.
Decision making skills will help an accountant to correctly evaluate a project’s quality and the
necessary resources. The finance team should be able to understand the impact of a project for the
company, the way competitors are performing similar activities and to be able to support with evidence
the decisions making process on a long run or short run.
Nowadays companies started to hire accountants which know how to work with information
technology, on the top of a good professional education. Being able to use and implement AI in one’s
work/activity is a competitive advantage that matters.
Accountants and accounting companies need to focus on developing and strengthening their
knowledge on AI and be able to integrate the positive impact of these technologies, into their activities
and strategies. AI will improve accountants’ activities if they will be able to work closely with
researchers and developers of AI solutions, to design the best product and processes. While
implementing AI solutions companies needs to focus on strengthening cyber-defence systems to be
able to protect the systems
TESTING OF HYPOTHESIS
Hypothesis 1:
H0: There is a significant relationship between accounting industry and impact of digital accounting
on the small scale business of Odisha.
H1: There is no significant relationship between accounting industry and impact of digital accounting
on the small scale business of Odisha.
Table No 2: Data for Hypothesis 1
Situations Small Scale Industry Medium Scale Industry Total
Traditional Accounting 37 12 49
Artificial Accounting 63 88 151
Total 100 100 200
(Source: Collected and compiled from field study)
The table no. 3 shows the t-Test: Paired Two Sample for Means.
Table No 3: t-Test: Paired Two Sample for Means

Traditional Accounting Digital Accounting
Mean 24.5 75.5
Variance 312.5 312.5
Observations 2 2
Pearson Correlation -1
Hypothesized Mean
Difference 0
df 1
t Stat -2.04
P(T<=t) one-tail 0.1450773
t Critical one-tail 6.3137515
P(T<=t) two-tail 0.2901546
t Critical two-tail 12.706205
(Source: Author’s Calculation on the basis of field study)
The above table no 3 shows that the calculated value of t test. = - 2.04 and the degree of freedom
is 1. With reference to the 1 degree of freedom at 5% level of significance, the critical value of the t
test is obtained as P(T<=t) one-tail is 0.145 less than the t Critical one-tail 6.313752 and P(T<=t) two-
tail is 0.290 less than the t Critical two-tail is 12.70.
Decision: Hence decision is that Accept H0 i.e. There is a significant relationship between
accounting industry and impact of digital accounting on the small scale business of Odisha and Reject
H1 i.e. There is no significant relationship between accounting industry and impact of digital
Hypothesis 2:
H0: There is a significant relationship between the status quo (present state of affairs) and
H1: There is no significant relationship between the status quo (present state of affairs) and
Table No 4: Data for Hypothesis 2
Sl. No. Statement Present Status Future Aspiration
Low Medium High Low Medium High
No. 30 170 -- -- --- 200
1 Paperless Accounting
% 15% 85% --- -- --- 100%
Uniformity of No. 30 140 30 --- --- 200
2 Systems and creation
of Transparency % 15% 70% 15% ---- --- 100%
No. --- 100 100 ---- 10 190
3 Process Automation
% --- 50% 50% ---- 5% 95%
Integrated No. 70 30 100 ---- 10 190

4
Consolidation System % 35% 15% 50% ---- 5% 95%
No. 30 170 --- ---- --- 200
5 Big data Analysis
% 15% 85% --- ---- --- 100%
No. --- 170 30 --- 10 190
6 Real-time Reporting
% --- 85% 15% --- 5% 95%
Tools For No. 70 130 --- --- --- 200
7
Visualization % 35% 65% --- --- --- 100%
8 Cloud Accounting No. 200 ---- --- --- 10 190

% 100% ---- ---- --- 5% 95%
No. 170 30 ---- 30 130
9 Block Chain
% 85% 15% --- ---- 35% 65%
No. 190 10 --- ---- 10 190
10 Artificial Intelligence % 95% 5% --- --- 5% 95%
No. 100 100 --- --- --- 200
11 Fibre Connectivity
% 50% 50% ---- --- ---- 100%
No. --- 190 10 --- ---- 200
12 Making Tax Digital
% --- 95% 5% --- --- 100%
(Source: Author’s Calculation on the basis of field study)
Decision: The decision is that Accept H0 i.e. there is a significant relationship between the status
quo (present state of affairs) and developmental trends of digitalisation in accounting and Reject H1
i.e. there is no significant relationship between the status quo (present state of affairs) and
developmental trends of digitalisation in accounting
The second hypothesis concluded that the business house should be very careful regarding more
dependent on artificial intelligence, but one day will come where the value of human accountant will
be required by discarding all the uses of artificial intelligence in business. So, one should understand
the benefits of artificial intelligence as well as the value of human talent and goodwill.
KEY FINDINGS:
➢ Due to the impact of Artificial Intelligence on the accounting profession it started to appear a
real need for a dedicated education in this field.
➢ There is need of change on the curricula in order to assure that the graduates will be better
prepared for their future jobs.
➢ AI will not replace the jobs of accountants, but it will improve their work, by reducing the time
spend on repetitive tasks.
➢ There is a significant relationship between accounting industry and impact of digital
➢ There is a significant relationship between the status quo (present state of affairs) and
CONCLUSIONS:
Computer skills are becoming more and more important in the era of Big Data. An
accountant should be able to work not only with regular software, but he/she needs to be highly

software literate, in order to easily adapt to the on-going changing business environment. An
accountant which can understand the logic behind the IT system provides value-added for the
IT team working on the development of these solutions. Analytical skills are important, due to
the need to analyse financial information and to correctly evaluate the risks of some actions
and decisions, based upon available information.
REFERENCE:
Begum, D. (2019), “Digital Transformation of Accounting in India”, Emperor International

Journal of Finance and Management Research, Volume - V Issue – 10 October – 2019, ISSN:
2395-5929, Pp. 6-12
Bhlmanl, A. (2020), “Digital Data and Management Accounting: Why We Need to Rethink
Research methods”, Journal of Management Control (2020) Issue 31, Pp. 9–23, Springer
Publication Pp. 9-22. https://doi.org/10.1007/s00187-020-00295-z
Gulin and et. el. (2019), “Digitalization and the Challenges for the Accounting Profession”,
ENTRENOVA 12-14, September 2019, pp. 502-511.
Hasam, A. R. (2022), in the paper entitled “Artificial Intelligence (AI) in Accounting & Auditing:
A Literature Review”, Open Journal of Business and Management, 2022, 10, 440- 465, ISSN
Online: 2329-3292, ISSN Print: 2329-3284
Isbil, N. and et. el. (2021), “Digital Reporting In Accounting: XBRL And Integration To
Accounting Department Curriculum”, Gazi İktisat ve İşletme Dergisi, 2021; Volume 7, Issue
3, Pp. 188-202, ISSN: 2548-0162
Khanom, T. (2020), “The Accountancy Profession in the age of Digital Transformation:
Challenges and Opportunities” International Journal of Creative Research Thoughts (IJCRT),
Volume 8, Issue 2, February, 2020, ISSN: 2320-2882, Pp. 1525-1533.
Kruskopf, S. and et. el. (2020), “Digital accounting and the human factor: Theory and Practice”,
ACRN Journal of Finance and Risk Perspectives, issue 9, Pp. 78-89, ISSN 2305- 7394.
Mancini and et. el. (2017), “Trends of Digital Innovation Applied to Accounting Information and
Management Control Systems”, Reshaping Organizations through Digital and Social
Innovation, Springer International Publishing AG 2017, Volume 20, pp. 1-20.
Syrtseva, S. and et. el. (2021), “Digital Technologies in The Organization of Accounting and
Control of Calculations for Tax Liabilities of Budgetary Institutions”, Studies of Applied
Economics, Volume 39, Issue 7, July 2021, ISSN 1133-3197, Pp. 1-19.
Toshniwal, R. (2016), “E- Accounting: The Necessity of Modern Business”, 41th International
Conference on science, Technology and Management, India international centre, New Delhi,
ISBN No-978-81-932074-8-2, 15.05.2016, pp. 579-583
Trisnadewi and et. el. (2021), “Determinants of the use of Digital-Based Accounting Information
Systems Micro, Small and Medium Enterprises in Denpasar City”, American Research Journal
of Humanities Social Science (ARJHSS), E-ISSN: 2378-702X, Volume- 04, Issue-08, pp-01-
07

THE IMPACT OF ETHICAL ACCOUNTING PRACTICES
(EMPOWERMENT-E’S) ANDCULTURAL ASPECTS ON
THE IMPACT OF ETHICAL ACCOUNTING PRACTICES
ORGANIZATIONAL PERFORMANCE
(EMPOWERMENT-E’S) ANDCULTURAL ASPECTS ON
ORGANIZATIONAL PERFORMANCE
Dr. Asha Sharma*
ABSTRACT Dr. Asha Sharma*
Accounting ethics has become a big issue in the recent era of Industry 4.0. Now, it is far easy to
ABSTRACT
manipulate data and create scams. The relevancy of accounting ethics and organizational culture
Accounting
are importantethics has
factors to become
give the aright
big path
issuetoinmanagement
the recent eraforofachieving
Industry the
4.0.motto
Now,ofit shareholders'
is far easy to
manipulate
wealth. Anydata and createsuccess
organization's scams. is
The relevancy
based of accounting
on the level ethics and
of commitment, organizational
values, culture
ethics, and culture
are important
inside factors to
it. To further give the right
understand path to management
the impact of culture andforempowerment
achieving the motto
E's onoforganizational
shareholders'
wealth. Any organization's
performance, successthrough
data was gathered is basedaon the level questionnaire.
structured of commitment,Respondents'
values, ethics, and culture
responses to
inside it. To questionnaires
standardized further understand
were the
usedimpact of culture
to gather primaryand empowerment
data. E's252
However, only on out
organizational
of the 300
performance,
were completedata
andwas
havegathered through
been used a structured
for further questionnaire.
research. A five-pointRespondents'
Likert scale responses to
was used to
standardized
analyze questionnaires
the findings. were
To assess used
how to gather primary
organizational culturedata. However,
affects only 252
performance, this out of focuses
study the 300
were
on complete
ethical and have
accounting been (six
practices usedkey
forEmpowerment-
further research. A The
E's). five-point Likerthave
hypotheses scale wasputused
been to
to the
analyze
test thethe
using findings. To assess test.
Kruskal-Wallis how organizational culture affects
It can be concluded performance,
that there this study
is a significant focuses
impact of
on ethical accounting
empowerment aspectspractices (six keyaspects
and cultural Empowerment- E's). The
on financial hypothesesas
performance have beenasputmarket
well to the
test using the Kruskal-Wallis test.
performance. It can be concluded that there is a significant impact of
empowerment
Keywords: aspects andperformance,
Organizational cultural aspects
Ethicalonaccounting
financial practices,
performance as well as Cultural
Empowerment, market
performance.
aspects
Keywords: Organizational performance, Ethical accounting practices, Empowerment, Cultural
aspects
Introduction
The quality of a company's vision and organizational culture is the only factor that
Introduction
determines whether or not it will be successful. It is emphasized that factors such as values, culture,
efforts, The quality ofand
effectiveness, a ethical
company's visioncontribute
behaviour and organizational culture isgood
to an organization's the performance
only factor and
that
determines
success whether
(Sharma or not it will be successful. It is emphasized that factors such as values, culture,
2012).
efforts, effectiveness, and ethical behaviour contribute to an organization's good performance and
success (Sharma 2012).
*Assistant Professor, Department of Accountancy and Business Statistics University College of

Commerce & Management Studies Mohanlal Sukhadia University, Udaipur (Rajasthan), E-mail:
*Assistant Professor, Department of Accountancy and Business Statistics University College of
[email protected]
Commerce & Management Studies Mohanlal Sukhadia University, Udaipur (Rajasthan), E-mail:
[email protected]
Globally, ethical problems have emerged. The ultimate objective of regulatory bodies like
The PIOB is to guarantee
Globally, pertinenthave
ethical problems audit,emerged.
assurance,
Theand ethicalobjective
ultimate standardsofthat are responsive
regulatory to
bodies like
the
ThePublic
PIOBInterest to increase
is to guarantee confidence
pertinent audit,inassurance,
the capital
andmarkets.
ethical Strengthening
standards that the
are International
responsive to
Audit and Ethics
the Public Standard-Setting
Interest System was
to increase confidence advised
in the bymarkets.
capital the International Foundation
Strengthening for Ethics
the International
and Audit's
Audit board Standard-Setting
and Ethics of trustees. System was advised by the International Foundation for Ethics
and Audit's board of trustees.
Satyam case, the Goutam Adani case, recently collapsing of two sizable banks, Silicon
Valley Bank andcase,
Satyam Signature Bank in
the Goutam the USA
Adani case, are examples
recently of notoffollowing
collapsing ethical
two sizable practices.
banks, Silicon
Ethical
Valley accounting practices always
Bank and Signature lead
Bank in thetoUSA
good are
corporate performance.
examples of not following ethical practices.
Ethical accounting practices always lead to good corporate performance.
The most crucial factors in every corporate enterprise are not properly adopting ethics,
aesthetics,
Theand spiritual
most crucialpractices causes
factors in everytocorporate
damage brand value.
enterprise areBusinesses nowadopting
not properly aim to target
ethics,
overseas markets
aesthetics, to expand
and spiritual their client
practices causesbase as the trend
to damage brandof internationalization
value. Businesses nowhas
aimimproved
to target
across industries.
overseas marketsThe majoritytheir
to expand of businesses
client baseworldwide areofbecoming
as the trend global organizations
internationalization for
has improved
this reason.
across The most
industries. Theimportant
majority prerequisite forworldwide
of businesses any firm inare
thebecoming
world to become an international
global organizations for
organization is workplace
this reason. The diversity.
most important prerequisite for any firm in the world to become an international
organization is workplace diversity.
Application of Empowerment-E’s and Cultural Aspects
Application of Empowerment-E’s
The success and
of an organization Cultural
is largely Aspects on its organizational culture. It is the
dependent
most important component
The success because, depending
of an organization ondependent
is largely how an organization's management
on its organizational handles
culture. it,
It is the
itmost
can have a favourable
important or bad
component impactdepending
because, on the performance
on how anof the organization.
organization's management handles it,
it can have a favourable or bad impact on the performance of the organization.
Figure No 1: 5 E’s: Key Features of Sustainable Business Performance The figure present
◆ INDIAN
46 Figure NoJOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023
1: 5 E’s: Key Features of Sustainable Business Performance The figure present
The figure shows that basically organization performance is based on two aspects i. e.
Empowerment E’s + Culture
Organizational Performance= Empowerment E’s (Ethical Accounting Practices) + Culture

Empowerment E’s (ethical accounting practices) consisting of esteem, efficiency,
effectiveness, efficacy, efforts.
Empowerments E’s (ethical accounting practices) consist of esteem, efficiency,
effectiveness, efficacy, and efforts. Accounting ethics refers to the professional ethics of an
organization. In the same manner, accounting ethics are part of business ethics and human
ethicscollectively. The empowerment process is initiated efforts. An Effort is a continuous process.
It is not a one-time process. Apply the best recording and reporting process for sustainable
reporting and strong financial performance and success. Efforts should be made for setting
goals, missions, and visions and to achieve them. Once efforts have been put in, it should be
measured to check the changeand value addition in the form of performance. The more the levels
of effort made, the more success. An effort is weighted in the form of physical, mental, intellectual,
aesthetic, and spiritual equally.
Efficacy is the capacity to enhance the ability to understand the maintaining group
dynamics, optimum use of resources, and make strategic policies and decisions.
Efficacy leads to effectiveness. Effectiveness is always required in setting benchmarking,
brand image, managing customer profitability, and maintaining the quality of products, strong
supply chain management. So, it is not only the step to be a physical presence but registered in the
mind of people, clients, and stakeholders for a long time, sustainable survival.
Effectiveness increases the efficiency of taking advantage of the opportunity and makes a place
among other firms in the industry.
The efficient firm can take place as esteemed, and reputed, build image and gain super
profit; maintain CSR and social responsibility by its position and goodwill.
The self-esteemed firm can be the benchmark for its competitor and other firms by its values and
ethical behavior.
Cultural characteristics include things like trends, customs, culture, and values.
Organizational culture has an impact on success and strong financial performance. An important
factor that must be considered in the study that may impact an organization's success is ethics in
its accounting. The professional ethics of an organization are its accounting ethics.
Similar to business and human ethics, accounting ethics are a subset of both. Accounting ethics,
with its emphasis on accounting, can be correctly described as the study of moral standards and
judgments in an organization. Multicultural teams must deal with cultural and ethical problems,
hence it is the management of these teams' primary responsibility to create and implement effective
resolution techniques for multicultural teams. Culture has a direct and indirect impact on
performance, according to correlation analysis. The study concludes that an organization's ability
to perform at its very best is enhanced when its organizational culture is in line with its vision,
goals, and business strategy (Okwata, Wasike, and Andemariam 2022). To avoid any employee
from abusing their managerial position, firms must establish and implement strong accounting
ethics in this situation. Ensuring the security and accuracy of an organization's financial data is
another objective of accounting ethics.
Review of literature
Based the review of the literature, it is tried to present the need for triple entry that goes to
Ethical Accounting Practices (Empowerment-E's) and organization cultural aspects of
Organizational performance. Most of the papers agreed with the importance of ethics and culture
on a firm's performance.
The relevancy of accounting ethics and organizational culture are important factors
(Sharma 2012). Organizational commitment favorably influences work ethics. The performance
of employees is significantly and favorably affected by work ethics (Pratama, Lumbanraja, and
Zarlis 2022).
When employees are dedicated and share the same values as the organization, performance
may improve in the direction of accomplishing the organization's ultimate goals (Akpa, Asikhia,
and Nneji 2021).
The moral culture and commercial integrity established in the firm are the primary factors
determining the occurrence of fraud. Corporate governance standards and prerequisites for the
creation of an uncorrupted workplace environment with a proactive approach to fighting fraud are
its review and continual improvement (Sabau, Şendroiu, and Sgardea 2013)
The results show a link between organizational culture and job performance that is
favourable. Additionally, four organizational culture sub-elements—managing change, achieving
goals, coordinating teamwork, and cultural strength—were discovered to have a favourable impact
on job performance, but with different degrees of severity.(Saad and Abbas 2018)
Regardless of the employees' diverse countries and cultural backgrounds, there is a significant
impact on their work performance, attitudes, and behaviors in the two companies that were chosen
(Cherian et al. 2021)
Now the research questions come to mind
48 ◆ Do accounting ethical practices (empowerment) aspects influence financial performance?

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023
Do cultural aspects influence financial performance?

Research methodology
The research methodology comprises the research design, sample design, sources of data,
selection of data, and various designs and techniques used for analyzing the data.
Primary data has been collected through structured questionnaires from respondents. But out of
300, only 252 were found complete and have been used for further study purposes. Likert's Five-
Point scale was applied to analyze the results.
Kolmogorov–Smirnov test was applied to check the normality of data. Due to the non-
normality of data, Kruskal Wallis Test has been used to test the hypotheses.
Variable of the study
Independent Variables: Empowerment aspects- Efforts, efficacy, effectiveness,

Efficiency, Esteem, and Ethics, Cultural Aspects- Trends, tradition, culture, and values Dependent
Variables: Organisational Performance Table 1 presents the list of variables used in this study.
Table No 1: Variable used for Impact of Empowerment and Cultural Aspects on Firms’
Performance
Variable Symbols Name of the variables
Dependent Variables
Organizational Performance FP1 Financial performance

FP2 Market performance
Experimental Variables
E1 Efforts
E2 Efficacy
Empowerment Aspects E3 Efficiency
E4 Effectiveness
E5 Esteem
E6 Ethics
C1 Trends
Cultural Aspects C2 Tradition
C3 Culture
C4 Value

The objective of the study
The
• objective
To knowof the
the study
impact of empowerment aspects on financial performance
•• To know
To know the
the impact
impact of
of empowerment
cultural aspectsaspects on financial
on financial performance
performance
To know the impact of cultural aspects on financial performance

•Hypotheses
Hypotheses
Certain hypotheses have been framed based on the gap in a review of the literature.
Certain
H01 There is nohypotheses
significanthave been
impact of framed based on
empowerment the gap
aspects oninfinancial
a reviewperformance
of the literature.
H02 There
H01 There is
is no
no significant impact of
significant impact of cultural
empowerment
aspectsaspects on financial
on financial performance
performance
H
H02 There is no significant impact of cultural aspects on financial performance
03 There is no significant impact of empowerment aspects on market performance
H
H03 There is no significant impact of empowerment aspects on market performance
04 There is no significant impact of cultural aspects on market performance
H04 There is no significant impact of cultural aspects on market performance
Result and Discussion
Result and Discussion
To apply the test to prove the hypothesis, the normality of data has been checked with the
Kolmogorov-Smirnov test
To apply the test to prove the hypothesis, the normality of data has been checked with the
Tests of Normality test
Kolmogorov-Smirnov
Tests of Normality Kolmogorov-Smirnova Shapiro-Wilk
Kolmogorov-Smirnov
Statistic df
a
Sig. Shapiro-Wilk
Statistic df Sig.
Efforts Statistic
.262 df 252 Sig. .000 Statistic
.880 df 252 Sig. .000
Efforts
Efficacy .262
.220 252
252 .000
.000 .880
.876 252
252 .000
.000
Efficacy
Efficiency .220
.245 252
252 .000
.000 .876
.861 252
252 .000
.000
Efficiency
Effectiveness .245
.236 252
252 .000
.000 .861
.880 252
252 .000
.000
Effectiveness
Esteem .236
.214 252
252 .000
.000 .880
.870 252
252 .000
.000
Esteem
Ethics .214
.209 252
252 .000
.000 .870
.883 252
252 .000
.000
Ethics
trends .209
.238 252
252 .000
.000 .883
.857 252
252 .000
.000
trends
tradition .238
.194 252
252 .000
.000 .857
.876 252
252 .000
.000
tradition
culture .194
.237 252
252 .000
.000 .876
.865 252
252 .000
.000
culture
value .237
.227 252
252 .000
.000 .865
.873 252
252 .000
.000
value
financial .227
.227 252
252 .000
.000 .873
.870 252
252 .000
.000
financial
performance .227 252 .000 .870 252 .000
performance
market performance .233 252 .000 .876 252 .000
market performance .233 252 .000 .876 252 .000
a. Lilliefors Significance Correction
50 a.◆Lilliefors Significance
INDIAN JOURNAL Correction
OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023
The result shows that P < .05 shows data is not found normal. Here, data is found not
normal, so instead of one-way ANOVA, Kruskal Wallis Test has been used for testing the
hypotheses. The null hypothesis of the Kruskal-Wallis test is that the mean ranks of the groups are
the same.
H01 There is no significant impact of empowerment aspects on financial performance
Table No 2: Test Statistics a,b
Efforts E2 Efficiency E4 E5 Ethics
Chi-Square 19.519 71.574 41.402 75.561 91.114 75.132

df 4 4 4 4 4 4
Asymp. Sig. .001 .000 .000 .000 .000 .000
a. Kruskal Wallis Test
b. Grouping Variable: Financial performance
The results of the Kruskal-Wallis test are shown in Table 3 and show that, when the
influence of cultural factors on financial performance is accepted (as p 0.05) at the 5% level of
significance, thereis a significant discrepancy between the hypothesized test value and the
calculated sample statistics. The results reveal that the majority of the time, the p-value is less
than 0.05. It declares that the null hypothesis is rejected. It implies that cultural factors have a
considerable impact on financial performance. The outcome coincides with The research that
examines the effects of corporate culture, organizational structure, and leadership on business
performance (Luki Karunia 2020).
H02 There is no significant impact of cultural aspects on financial performance
Trends Tradition Culture Value
Chi-Square 46.396 37.197 22.725 41.319
df 4 4 4 4
Asymp. Sig. .000 .000 .000 .000
b. Grouping Variable: Financial performance

The results of the Kruskal-Wallis test are shown in Table 3 and show that, when the
influence of cultural factors on financial performance is accepted (as p 0.05) at the 5% level of
significance, there is a significant discrepancy between the hypothesised test value and the

calculated sample statistics. The results reveal that the majority of the time, the p value is less
than 0.05. It declares that the null hypothesis is rejected. It implies that cultural factors have a
considerable impact on financial performance. The outcome coincides with The research that
examines the effects of corporate culture, organisational structure, and leadership on business
performance.(Luki Karunia 2020)
H03 There is no significant impact of empowerment aspects on market performance
Efforts E2 Efficiency E4 E5 Ethics
Chi-Square 19.493 76.394 54.353 75.277 94.762 80.319
df 4 4 4 4 4 4
Asymp. Sig. .001 .000 .000 .000 .000 .000
b. Grouping Variable: Market performance
The Kruskal-Wallis test results are shown in Table 4 and demonstrate that there is a
significant discrepancy between the hypothesized test value and the sample statistics calculated to
accept the impact of accounting ethical practices (empowerment aspects) on market performance
(p 0.05) at the 5% level of significance. According to the findings, the p-value is typically less than
0.05. It says that the null hypothesis is rejected. It means there is a significant impact of
empowerment aspects on market performance.
H04 There is no significant impact of cultural aspects on market performance
Trends Tradition Culture Value
Chi-Square 48.381 44.190 33.215 44.028
df 4 4 4 4
Asymp. Sig. .000 .000 .000 .000
b. Grouping Variable: Market performance

The output of the 'Kruskal Wallis Test' in table-3, reveals that a significant gap exists
betweenThe
theoutput
hypothesized test value
of the 'Kruskal withTest'
Wallis the in
calculated sample that
table-3, reveals statistics for accepting
a significant the
gap exists
influence the
between of cultural aspectstest
hypothesized on market performance
value with (as p < sample
the calculated 0.05) atstatistics
a 5% levelforofaccepting
significance.
the
influence
The resultof
influence cultural
ofshows thataspects
cultural the p-on
aspects market
value
on performance
in most
market (as
(as p
of the cases
performance pis< 0.05)
< less at
at aa0.05.
0.05)than 5%
5% level
level of
of significance.
It says that the null
significance.
The result
result shows
hypothesis
The that
that the
is rejected.
shows It
the p- value
means
p- in
in most
valuethere is a of
most the
the cases
ofsignificant is
is less
less than
cases impact 0.05.
0.05. It
of cultural
than says
says that
Itaspects on the
that null
market
the null
hypothesis
performance.
hypothesis is
is rejected.
rejected. It
It means
means there
there is
is aa significant
significant impact
impact ofof cultural
cultural aspects
aspects on
on market
market
performance.
performance.
Conclusion
Conclusion
Conclusion
The study explored major recommendations based on gathered information and analysis to
The study explored major recommendations based on gathered information and analysis to
enhanceThe
organizational
study exploredculture and accounting based
major recommendations ethics on
with a primary
gathered goal and
information of analysis
enhancingto
enhance organizational culture and accounting ethics with a primary goal of enhancing
organizational
enhance performance.
organizational According
culture to the report,
and accounting strong
ethics accounting
with ethics
a primary aid of
goal companies in
enhancing
organizational performance. According to the report, strong accounting ethics aid companies in
enhancing
enhancing their
organizational financial success.
theirperformance.
financial success. Thisto means
According
This means that strong
the report,
that to improve
to improve their ethics
accounting
their financial performance,
aid companies
financial in
performance,
businesses
businesses must
enhancing their develop
must andsuccess.
financialand
develop put into
put intoThis
placemeans
place strong policies
strong policies that
that to that accommodate
improve effective
their financial
accommodate accounting
performance,
effective accounting
ethics.
ethics. The
businesses study
Themust also
also shows
studydevelop and that
shows organizations
put into
that should
place strong
organizations enhance
policies
should their management
that accommodate
enhance approaches
effective
their management or
accounting
approaches or
leadership
ethics. Thephilosophies to enhance
study also shows their performance,
that organizations as an organization's
should enhance management
their management style or
approaches is
directly related
leadership to its organizational
philosophies culture
to enhance their (Wong andasGao
performance, 2014). An efficient
an organization's and successful
management style is
leadership
leadership
directly style can
canitsaid
style to
related aid organizations in
in enhancing
organizationsculture
organizational (Wong their
enhancing their organizational
2014). Anculture,
organizational
and Gao efficientaccording
culture, according to
to the
the
and successful
study
study of
of the
the
leadership results.
results.
style The exploratory
Theorganizations
can aid method
exploratory in
method is
is used
theirin
used
enhancing this
this investigation.
inorganizational
investigation. Based
Based
culture, on
on the
thetodata
according data
the
gathered for the study, it is clear that organizational culture and accounting ethics have good effects
gathered
study of for
thethe study,The
results. it is clear that organizational
exploratory culture
method is used inand
thisaccounting ethicsBased
investigation. have good effects
on the data
on organizational performance. It implies that organizations must prioritize organizational culture
on organizational
gathered performance.
for the study, It implies
it is clear that that organizations
organizational must
culture and prioritize
accounting organizational
ethics have good culture
effects
and accounting ethics to improve performance. Businesses can benefit from the study's insightful
andorganizational
on accounting ethics to improve
performance. It performance. Businesses can
implies that organizations benefit
must fromorganizational
prioritize the study's insightful
culture
recommendations for enhancing their organizational cultures and accounting ethics. The role of
recommendations
and for enhancing
accounting ethics to improvetheir organizational
performance. cultures
Businesses canand accounting
benefit from theethics. The
study's role of
insightful
every ethical accounting practice factor, including respect, efficacy, efficacy, and efforts, as well
every ethical accounting
recommendations practice their
for enhancing factor, including respect,
organizational efficacy,
cultures efficacy, and
and accounting efforts,
ethics. The as well
role of
as the beneficial effects of cultural factors like trends, customs, culture, and values, is what matters
as thein
every
most beneficial
ethical effects ofpractice
accounting
this context. culturalfactor,
factorsincluding
like trends, customs,
respect, culture,efficacy,
efficacy, and values,
and is what matters
efforts, as well
most
as thein this context.
beneficial effects of cultural factors like trends, customs, culture, and values, is what matters
References
most in this context.
References
References
Akpa, Victoria, Olalekan Asikhia, and Ngozi Nneji. 2021. “Organizational Culture and
Akpa,Organizational Performance:
Victoria, Olalekan A Review
Asikhia, and of Literature.”
Ngozi Nneji. International Journal
2021. “Organizational Culture of
andAdvances
Akpa,in Engineering
Organizational
Victoria, and
Olalekan Management
Performance:
Asikhia, and 3(1).
A Review of Literature.”
Ngozi Nneji. International Journal
2021. “Organizational Culture of
andAdvances
in Engineering
Cherian, Jacob, Vilasand
Organizational Management
Performance:
Gaikar, Raj Paul,3(1).
A Review of Literature.”
and Robert International
Pech. 2021. “CorporateJournal
Culture of
andAdvances
Its
in Engineering
Impact and Management
on Employees’ 3(1).
Attitude, Performance, Productivity, and Behavior: An Investigative
Cherian, Jacob, Vilas Gaikar, Raj Paul, and Robert Pech. 2021. “Corporate Culture and Its
Analysis from Selected Organizations of the United Arab Emirates (UAE).” Journal of
Impact
Cherian, on Employees’
Jacob, Vilas Gaikar,Attitude,
Raj Paul,Performance, Productivity,
and Robert Pech. and Behavior:
2021. “Corporate An and
Culture Investigative
Its
Open Innovation: Technology, Market, and Complexity 7(1).
Analysisonfrom
Impact SelectedAttitude,
Employees’ Organizations of the United
Performance, Arab Emirates
Productivity, (UAE).”An
and Behavior: Journal of
Investigative
Damayanti, Vadira,
Analysis and Technology,
Open Innovation: Khoirul
from Selected Aswar. 2021.
Market,
Organizations “Performance
ofand
the ComplexityMeasurement
United Arab7(1). in Local
Emirates (UAE).” Journal of
Open Innovation: Technology,INDIAN
Market, and OF
JOURNAL Complexity (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆
ACCOUNTING7(1). 53
Damayanti, Vadira, and Khoirul Aswar. 2021. “Performance Measurement in Local
Damayanti, Vadira, and Khoirul Aswar. 2021. “Performance Measurement in Local
Governments: An Analysis of Organizational Factors.” Information Management and
Business Review 13(2(I)).
Luki Karunia, R. 2020. “The Influence of Leadership, Organisational Structure, and

Organisational Culture on the Company Performance of PT NK TBK.” International
Journal of Innovation, Creativity and Change 11(2).
Okwata, Phoebe Akoth, Susan Wasike, and Kifleyesus Andemariam. 2022. “Effect of
Organizational Culture Change on Organizational Performance of Kenya Wildlife Service
Nairobi National Park.” Administrative Sciences 12(4).
Pratama, Rizhar Solihin, Prihatin Lumbanraja, and Muhammad Zarlis. 2022. “The Influence of
Organizational Culture and Organizational Commitment Towards Employee Performance
Through Work Ethics at PT. PLN (Persero) UPDK Belawan.” International Journal of
Researchand Review 9(8).
Saad, Ghazi Ben, and Muzaffar Abbas. 2018. “The Impact of Organizational Culture on Job
Performance: A Study of Saudi Arabian Public Sector Work Culture.” Problems and
Perspectives in Management 16(3).
Sabau, Elena Monica, Cleopatra Şendroiu, and Florinel Marian Sgardea. 2013. “Corporate Anti-
Fraud Strategies – Ethic Culture And.” Cross-Cultural Management Journal XV(2).
Sharma, Dr. (Mrs. .. Asha. 2012. “Impact Of Human Resources Accounting On Organizational
Performance.” IOSR Journal of Business and Management 5(1).
Wong, Ip Kin Anthony, and Jennifer Hong Gao. 2014. “Exploring the Direct and Indirect Effects
of CSR on Organizational Commitment: The Mediating Role of Corporate
Culture.” International Journal of Contemporary Hospitality Management 26(4).
Website
https://www.ethicsandaudit.org/news-events/2023-03/new-international-foundation-ethics-and-
audit- strengthens-independence-standard-setting-
system?mc_cid=a63242fcdc&mc_eid=9a7c950e88

ASSESSING PERCEPTION AND AWARENESS OF GREEN
BONDS: A QUALITATIVE STUDY
Dr. Dileep Kumar S. D*

Ms. Jyothi G. H**
ABSTRACT
The green bonds issuance in India in 2021 was exceptional and is to set a new record in 2022. India
issued $6.11 billion of green bonds in 11 months of 2021. It has been the strongest issue since the
first issue in 2015. Indian Companies have become increasingly conscious of their carbon footprint.
Banks will step up issuance of green debt to fund their growing lending program to accelerate India’s
energy transition. More Indian issuers will also turn to the offshore bond market to access the wider
and deeper capital pool outside their home country. Green bonds issued by emerging markets such
as India have a strong appeal to foreign investors due to relatively attractive valuation and decent
economic growth prospects. However, it is a long way to go as the gap is $3.546 trillion between the
total investment required to achieve net-zero and the amount that can be reasonably contributed by
domestic banks, NBFCs and capital markets. India will need $10.103 trillion by 2070 to be carbon-
neutral. The cumulative investments needed for net-zero societies may be bigger than India’s current
size of the economy. In this background, green bonds are receiving importance world over. Even in
India, a few guidelines have been issued by the authorities. However, the current regulations are not
adequate and therefore, there is a diversity in the green bonds and issuance practices. Further, two
important powerful tools in this regard are the perception and level of awareness for the effective
promotion and uptake of green bonds. In this backdrop, the present paper makes an attempt to analyze
the opinions of different stakeholders’ about a few aspects of green bonds and other related issues.
Keywords: Green Finance, Sustainable Development, Green Bonds, Green Initiatives, Green
Investments etc.
*Assistant Professor and Coordinator, PG Department of Commerce, PES Institute of Advanced
Management Studies, Shivamogga, (Karnataka State), email: [email protected]
**Asssistant Professor, Department of MBA, PES Institute of Technology and Management,
Shivamogga, (Karnataka State), email: [email protected]

Introduction
“A Green Bond: The Responsible Way to Invest”
The first green bond was put out in 2007 by the European investment bank and it is named
as the “Climate Awareness Bond” its finance was dedicated to renewable energy and energy
efficiency project. In 2012 the first corporate green bond was put away. Green bonds are mostly
specified as fixed income securities that produce capital for a project with specific environmental
benefits. In 2017 over 200 issuers, among them sovereigns, corporates, development banks and other
financial institutions raised more than $ 150 billion through green bonds. Yet, A Green bond has
been specifically earmarked to be used for climate and environmental project. These alliances are
typically asset-linked and backed by the issuer’s balance sheet, and are likewise referred to as climate
bonds. This is designated bonds intended to further sustainability and to support climate-related or
other types of special environmental project. More specifically, the green bond finance project aimed
to at energy efficiency, contamination prevention, sustainable agriculture, fishery and forestry, the
protection of aquatic and terrestrial ecosystems, clean transportation, sustainable water management
and the cultivation of environmentally friendly technologies.
Green bonds come with tax incentives such as tax exemption and tax credits, making them a
more attractive investment compared to a comparable “Taxable bonds”. This provides a monetary
inducement to use up on prominent social issues such as climate change and a movement to
renewable sources of energy. To qualify for green bond states, they are frequently verified by a third
party, such as the climate bonds standard board, which certified that the bond will fund projects that
include benefits to the environment A Green bond is a bond whose yield is applied to fund
environmental friendly projects. Although they're a relatively new segment of the bond market,
investors are sure to hear in the year ahead about the environmentally conscious offerings that define
green bonds.
The green bond market has seen explosive development in the past decade and presenting an
unrivaled opportunity in climate finance. Annual issuance has now grown from nothing to more than
$ 155 billion globally, with more development before. But in emerging market green bond area is
only starting out. Also, these alliances are taking in greater acceptance and endorsements in
Indian financial markets and International multilateral organizations such as the World Bank,
International Finance Corporation (IFC), European Bank for Reconstruction and Development


(EBRD) and global banking institutions such as Credit Agricola CIB have issued green bonds in
Indian currency. Domestic companies too issued green bonds both in USD and INR denominations.
Some issuers have even listed green bond on international stock exchanges.
Statement of the Problem

Green bonds are one of the innovative financial tools; In India green bonds are not more
popular. Factually, green bonds have led the same risk and same return as conventional bonds and
additional cost are associated with the issue of green bonds. One of the biggest critics when investing
in green bonds is a lack of fluidity. Being a little market, getting into and exiting positions is not
equally easy as more popular investments. In green bond investment the investor might need to hold
until maturity. Another hazard is a deficiency of a clear definition for a green bond; investors might
not experience precisely where their money running short. Green bond issuance implies additional
cost and risk for a firm and their issuance is not optimal from a price perspective. In this setting, all
the above mentioned problems require a bigger attention to establish a comprehensive survey on the
present case.
Literature Review
The literature review pointed out that most of the research work in this area done till now has
been exclusively limited to developed countries like the United States and other developing nations.
But research is still insufficient in case of India. It is also absorbed that, hardly any extensive work
has been held out in India to study the Green Bonds Market. Hence, getting after the earliest written
accounts have been undertaken for the study more comprehensive and meaningful one. They are:
Dupont et. al., (2015), in their article entitled "Green Bonds and land conservation: The Evaluation
of a new financing tool" highlighted that the investors still view them as an instate product in the
overall fixed income market. There is a rapidly grown in green bonds nearly $ 37 billion in 2014.
They pointed out that current and potential future role of the green band in financing sustainable
land usage and conservation projects around the world and

draws on consultations with land conservation practitioners, bond issuers, investors and financial
analysts, etc. The next few years will prove vital in finding out whether or not; A green band will
become a significant new instrument for the land preservation system. Land conversation
organizations and issuers need to generate success stories and continue to build market momentum
for this financing coming.
Jacqueline Yujia Tao (2016), in his article entitled "Utilizing green bonds for financing renewable
energy projects in developing Asian countries" examined that the strengths, weaknesses,
opportunities, and threats (SWOT) of using green bonds to finance renewable energy projects in
Asia. The potential for green bonds to become viable financing instruments for renewable energy
projects. Even thus, there remain several challenges that can be tacked together with a key support
mechanism. Taking into account that internal and external challenges in building a green bond market
in the region, one might reason that the creation of such a market is redundant. As such the
strengthening or a creation of both markets in parallel while likely reap maximum benefits. Policy
instruments to facilitate green bond growth and a potential road map for development are also
proposed.
Lake Trampeter (2017), in his article entitled “Green is Good: How Green Bonds Cultivated into
Wall Street's Environmental Paradox” described that in 2007 the first green bond issued by a
European investment bank, few imagined that this debt instrument would attack mainstream
investors. These are finance projects ranging from climate change prevention to clean transportation
development, green bonds were geared for socially responsible investors concerned with our planet's
sustainability. In 2015 green bonds were released by major corporations like Apple and
municipalities like New York City. It has the tax-exempt status. This subject also discussed how
green bonds were first created their original roles and how they matured into a mainstream of
investment instrument.
Panda Pradiptarathi (2017), in his article entitled "Green Bond: A Socially Responsible Investment
(SRI) Instrument" reveals that the organization of green bond, and it is a new concept and also
innovative financial instrument, issued in the year 2008 by the World Bank to the investors with
their request. Green bond attracts and help a specific group of investors as well as to the economy
which is bigger in size. In India, it is not more popular, but

nowadays this financial tool is gaining popularity around worldwide. Since the World Bank has made
130 issues in 18 currencies in total, of US $ 5.7 billion. This legal document is brought out by various
establishments; it is especially applied to "Financial Environment Friendly Projects" and Tax exempt
financial instrument.
In the above discussion of critiques of literature, a variety of agents are counted which are an
evolution of green bonds, socially responsible instruments, effectiveness of financial operation,
evaluation of danger and returns of bonds, use of green bonds in Sustainable development and
corporate alliances, etc. Hence, the present work tries to assess the perception and awareness of green
bonds for financial support of sustainable development along with the basis of above review
literature.
Objectives of the Study

The main aim of this research paper is to evaluate the perception and awareness of Green
Bonds. In summation to the main target, the supportive objectives are set to produce the study more
comprehensive and which are presented as below:
1. To study the conceptual framework of Green bonds.
2. To examine the level of awareness about the green bonds.
3. To evaluate the functional effectiveness of Green bonds.
Hypotheses of the Study
Ho1: There is no significant relationship between Gender and level of awareness about Green Bonds.
Ho2: There is no significant relationship between Age and level of awareness about Green Bonds.
Scope of the Study
The present work is confined to evaluate the perception and awareness of Green Bonds. And
the study is delimited in Karnataka State only. The work mainly focused on important elements of
green bonds such as benefits of bonds, major issues of green bonds prevailing in the Indian economy
and recent trends and development of green bonds market and so on,

Research Methodology
Research methodology which mainly explains the flow of research is concerned. It is an
important part of the study, which particularly throws light on the study area followed by adoption
of the sampling process, sources of information, statistical tools and techniques applied to data
analysis and hence along.
Research Design
The present study is purely a descriptive research as it analyses, describes and evaluates the
data related to the perception and awareness of Green Bonds and also the measures initiated or taken
by the government for the management and promotion of Green Bonds.
Research Approach: Quantitative approach has been applied in the research field
Descriptive and inferential analysis is employed for identifying the characteristics of the
population and to try out the hypotheses formulated for the present work.
Sources of Data Collection
For obvious reasons, this survey is primarily founded on the primary and secondary data.
a) Master Data: The primary data has been gathered through direct interview of the
concerned respondents with structured Questionnaire.
b) Secondary Data: The secondary data has been collected from published sources such as
textbooks, journals, newspapers, periodicals, websites, annual reports submitted by various
committees or departments and commissions, etc.
Sampling Design
a) Target Population: The population for the research is Students, Government Employees,
Businessmen and Chartered Accountants etc.
b) Sampling Technique: Simple random sampling has been used in the selection of the
respondents.
c) Sample Size: Total sample size 55.
d) Tools used for Data Analysis: For the analysis of the data, a few statistical tools are used such
as Simple, Graphical Presentation, Percentage Analysis and the hypotheses are tested by using
Chi-Square Test with the help of IBM SPSS Statistics version 29.0

Results and Discussions
In the light of the above, and keeping in mind the objectives and hypotheses, a few relevant
parameters are identified below for the purpose of evaluating the level of awareness and perception
towards green bonds and the corresponding hypotheses are, as stated above. The research has been
conducted based on the Survey Data collected from 55 respondents with a structured questionnaire.
The questionnaire consists of questions with different parameters. Every question is different in
nature and includes all the points of the objective of the study. Each question is given in the
appropriate option accordingly.
Table No 1: Demographic Profile of the respondents
SI. No. Variables No. of Respondents Percentage (%)
1 Gender Male 43 78.2

Female 12 21.8
Total 55 100
PUC 2 3.6
2 Education
Graduate 17 30.9
Post Graduate 29 52.7
Others 7 12.7
Total 55 100.0
Less Than Rs.
3 Monthly Income (in
15,000 16 29.1
Rs.) Rs. 15,001-
Rs. 25,000 15 27.3
Rs. 25,001-
Rs. 35,000 10 18.2
14 25.5
More Than
Rs. 35,001
Total 55 100.0
Source: (Survey data)
1. Gender
Gender relates to the biological differences between male and female, whereas gender relates
to the roles assigned to male and female in the society. Therefore, gender is a socioeconomic
variable involving roles, obligations, constraints, opportunities and needs of males and females in an
economic system.

The above table gives the gender wise distribution of the respondents selected for the survey.
The gender is classified as male and female. It is clear that 21.8% (12) of the respondents are female
and 78.2% (43) of the respondents are male. The majority of the respondents are male (78.2 percent).
2. Educational Qualification
Total 55 100.0
Source: (Survey data)
1. Gender
Gender relates to the biological differences between male and female, whereas gender relates
to the roles assigned to male and female in the society. Therefore, gender is a socioeconomic
variable involving roles, obligations, constraints, opportunities and needs of males and females in an
economic system.
The above table gives the gender wise distribution of the respondents selected for the survey.
The gender is classified as male and female. It is clear that 21.8% (12) of the respondents are female
and 78.2% (43) of the respondents are male. The majority of the respondents are male (78.2 percent).
2. Educational Qualification
Education is an integral part of any demographic profile. Educated people are considered
elite. Education gives better jobs and better income. Education is considered the foundation for
character and liveliness. Educated people command more respect than other groups.
The above table highlights education wise distribution of the respondents selected for the
survey. The pedagogy of the respondents is classified as PUC education, Degree level, Post-
Graduation and others.
It is clear that the educational level of the respondents is PUC education level 3.6% (02),
Degree 30.9% (17), Post-Graduation 52.7% (29) and another 12.7% (07) of the respondents are
others respectively. Consequently, the Majority of the respondents go to the Post-Graduation
education level (52.7 per cent).
3. Monthly Income
Income is an indicator of the lives of people. Higher income groups are more often than not
in the higher strata of the smart set. Lower income people too possess their own methods of
depending and saving money.
The above table describes monthly income wise distribution of the respondents selected for

the survey. The monthly income of the respondents is classified as less than Rs. 15,000, Rs. 15,001
- Rs. 25,000, Rs. 25,001 - Rs.35,000, and Rs. 35,001 & Above. It is clear that the income level of the
respondents is to less than Rs. Rs. 15,000, 29.1% (16), Rs. 15,001 - Rs. 25,000, 27.3% (15), Rs.
25,001 - Rs.35,000, 18.2% (10) and another 25.5% (14), of the respondents are Rs. 35,001 & Above
respectively. It can be seen that the majority (29.1 per cent) of the respondents has less than Rs. Rs.
15,000.
Table No 2: Gender and Level of Awareness about Green Bonds
Awareness Total
Highly Somewhat Aware Highly
Unaware aware Aware
Count 2 12 24 5 43
Male
% of Total 3.6% 21.8% 43.6% 9.1% 78.2%
Gender
Count 2 3 7 0 12
Female
% of Total 3.6% 5.5% 12.7% 0.0% 21.8%
Count 4 15 31 5 55
Total
% of Total 7.3% 27.3% 56.4% 9.1% 100.0%
Source: (Survery Data)
The table shows that highlights that the percentage of level of awareness of the respondents
about green bonds. Out of 55 respondents, (78.2%) of the male respondents and the same was the
(21.8%) of the female respondents. Followed by this, (56.4%) of the respondents aware and also
(7.3%) of the respondents not aware. In order to find the relationship between gender and the level
of awareness about green bonds, a chi-square test was implied to test the hypothesis given below:
Hypothesis
Ho1: There is no significant relationship between the Gender of the respondents and level of
awareness about Green Bonds.
Table No 3: Chi-Square Test

Pearson Chi- Calculated Chi- DF Table Value Remarks
Square Square value
Gender 3.297 3 7.815 Accepted
Source: Table No. 2

It is observed from the above table that the calculated chi-square value is (3.297) less than
the table value (7.815) and the result is not significant at the 5% level. Hence, the null hypothesis
(Ho) is accepted. The hypothesis “Gender of the respondents and overall opinions about the
awareness level of green bonds are not associated”.
From the analysis, it can be concluded that there is no relationship between gender of the respondents
and overall opinions towards the level of awareness about green bonds.
Table No 4: Age and Level of Awareness about Green Bonds
Awareness Total
Highly Somewhat Aware Highly
Unaware aware Aware
Count 2 5 15 0 22
Below 25 Years
% of Total 3.6% 9.1% 27.3% 0.0% 40.0%
Count 2 10 5 5 22
26-35 Years
% of Total 3.6% 18.2% 9.1% 9.1% 40.0%
Age Count 0 0 9 0 9
36-45 Years
% of Total 0.0% 0.0% 16.4% 0.0% 16.4%
Count 0 0 2 0 2
Above 45 Years
% of Total 0.0% 0.0% 3.6% 0.0% 3.6%
Count 4 15 31 5 55
Total
% of Total 7.3% 27.3% 56.4% 9.1% 100.0%
Source: (Survey Data)
The above table highlights that the percentage of the level of awareness about green bonds of
the respondents. Out of 55 respondents, (27.3) of the respondents aware and the same was the lowest
(3.6%) highly unaware under the age group below 25 years of the respondents. Followed by this
group, (18.2%) of the respondents somewhat aware age group between 26–35 years, (16.4%) of
them aware fall under 36–45 years and the remaining (3.6%) of the respondents aware age
group belong to 45 years and above respectively. However, the majority of the respondents aware
about the green bonds.
In order to find the relationship between age and the level of awareness about green
bonds of the respondents, a chi-square test was implied to test the hypothesis given below:

Hypothesis
Ho1: There is no significant relationship between age and level of awareness about green
bonds.
Table No 5: Chi-Square Test

Pearson Chi- Calculated Chi- DF Table Value Remarks
Square Square value
Age 23.011 6 16.919 Rejected
Source: Table No. 4, Significant at 5 % level
It is observed from the above table that the calculated chi-square value is (23.011) and the
table value (16.919) is greater than the table value and the result is significant at the 5% level. Hence,
the null hypothesis (Ho) is rejected and the alternative hypothesis (H1) is accepted. The hypothesis
“Age of the respondents and overall opinion towards the level of awareness about green bonds are
associated” and holds good.
From the analysis, it can be concluded that there is a significant relationship between age of
the respondents and overall opinion towards the level of awareness about green bonds of the
respondents.
Table No 6: Presentation of Investment Types in Green Bonds by the Respondents

Particular No. of Respondents Percentage (%)
No Response 16 29.1
Green Use of Process Bonds 3 5.5
Green Use of Revenue Bonds 11 20.0

Green Project Bonds 20 36.4
Green Securitized Bonds 5 9
Total 55 100.0
The table above shows the analysis of respondents about type of green bonds investment
pattern. Among 55 respondents, 29.1% (16) of the respondents is not invested any kinds of green
bonds instrument, 5.5% (3) they invested in green use of process bonds, 20% invested in green use
of revenue bonds, 36.4% (20) invested in green project bonds and the remaining 9% (5) of them
invested in green securitized bonds. Therefore, it can be interpreted that most of the respondents
invest in green project bonds, because it has, the more awareness compare to other types of green
bonds investment.
Table No 7: Presentation of Respondents Reason for Selecting Green Bonds as Investment

Avenue
Particular No. of Respondents Percentage (%)
No Response 16 29.1
Tax Benefit 20 36.4
Moderate Risk 2 3.6
Fixed Return 5 9.1
Environmental 12 21.8
Friendly
Total 55 100.0
Above table highlights the analysis of respondents about the reason for selecting green bonds
as an investment avenue. Out of 55 respondents, 29.1% (16) of them not given any response, 36.4%
(20) of them given the reason as tax benefits, 3.6% (2) of them agreed with the reason of moderate
risk, 9.1% (5) they mentioned that the fixed return and another 21.8% of them indicated that the
environmentally friendly. So, it can be interpreted that themajority of the respondents given the
reason as it is an instrument which has tax benefit and it is also an environmentally friendly
investment.


Summary of major Findings and Suggestions
✓ It is found that most of the respondents are male.

✓ It is found that a greater number of respondents belong to the age group of more than 46 years.
✓ The Majority of the respondents (52.7%) are having Educational qualification of Post-
Graduation.
✓ It is noted that most of the professional people experience an awareness about Green Bonds.
✓ Most of the respondents (29.1%) belong to the Income level of less than Rs. 15000 and
incomes between Rs. 15001- 35000.
✓ Most of the respondents (45.5%) favor a secure investment in the society compared to high
risk and moderate danger.
✓ It is observed that the majority of the respondents are not properly aware about Green Bond
Investment.
✓ Most of the respondents (36.4% & 25.5%) obtained information about Green Bonds from
friends and family.
✓ Approximately 36.4% of the respondents are investing in green project bonds.
✓ It is noted that most of the respondents (47.3%) have the invested in green bonds with the level
between 6-10%.
✓ The Majority of the respondents (36.4%) given the intellect as it is an official
document which has tax benefit and it is also an environmentally friendly investment.
✓ The Majority of the respondents (32.7%) are invested in green bonds through brokers and
agents.
✓ Most of the respondents (45.5%) are holding a neutral view on high risk linked with green
bonds.
✓ About 45.5% agreed that there is a lack of methodologies and frameworks regarding green
bonds for evaluating diverse project in the Indian context.
✓ The Majority of the respondents (47.3%) agree that there is no proper awareness about green
bonds market.
✓ The highest number of the respondents (56.4%) agreed that green bonds are the new investment
which offers an opportunity for the new investor to put.
✓ Most of the respondents (52.7%) agreed that the green bonds are tax credit instrument and the
investors of green bonds can enjoy tax benefits.
✓ A larger number of the respondents (47.3%) agreed that there must be a proper public
intervention.
✓ The larger part of the respondents (54.5%) opined that there must be a proper framework to
enhance market transparency.
➢ The Green Bonds are not recognized by the majority of the citizenry and it is not much popular,
thus there must be a necessity of awareness program regarding green bond investment and its
✓ The Majority of the respondents (47.3%) agree that there is no proper awareness about green
bonds market.
✓ The highest number of the respondents (56.4%) agreed that green bonds are the new investment
which offers an opportunity for the new investor to put.
✓ Most of the respondents (52.7%) agreed that the green bonds are tax credit instrument and the
investors of green bonds can enjoy tax benefits.
✓ A larger number of the respondents (47.3%) agreed that there must be a proper public
intervention.
✓ The larger part of the respondents (54.5%) opined that there must be a proper framework to
enhance market transparency.
➢ The Green Bonds are not recognized by the majority of the citizenry and it is not much popular,
thus there must be a necessity of awareness program regarding green bond investment and its
marketplace. With this plan, there must be an increase in popularity about green bonds
instrument.
➢ The Majorly the students are not aware about the Green Bonds and its office, so the Educational
Institutions must give the awareness and knowledge about this instrument and make the Green
Bonds as a division of the syllabus for post-grad students so that they can gather the information
about the Green Bonds instrument.
➢ There must be a proper sector diversification in green bond issuances, this must help the market
participants to know and analyses the complex sectors and broaden out the use of proceeds
particularly in the sector other than renewable energy.
➢ The government role is also important to the development of green Bonds, the government must
adopt proper steps to enable the climate finance or Green Bonds finance.
➢ There is a necessity of maintaining particular methodologies and framework for domestic green
bonds to enhance market transparency and its help for evaluation of divers’ project in the Indian
context.
➢ The Majority of the investors are invested in Green Project Bonds and the other types of Green
Bonds (i.e. Green use of proceeds bonds, Green use of revenue bonds andGreen securitized
bonds) are not properly known by the investors, so the other bonds also known by the investor to invest.
➢ There no proper source and channel of investment to the investor, so there must be a proper


measure to improve the source and channel of investment.
Conclusion and Notes
Green bonds are an efficient means for a society to demonstrate its dedication to
environmental causes to demonstrate their green certification. Green bonds proposition potential cost
advantages with wider investor base both domestically and internationally, thus creating better
pricing for green bonds than regular bonds. Policy initiatives such as tax reduction, interest subsidies
and credit guarantees can reduce the support costs for green bonds. Green finance in India is not so
much popular. So far, the World Bank has invested in 5 green projects and International Finance
Corporation has put in one green project in India. There are indirect investments in green projects
from organizations. This research study has targeted to resolve various questions concerning green
bonds and preferences. Thither are many potential drivers behind the changes in preferences,
financial and non-financial, green and non-green. It can be reasoned that both types are contributing
to changing preferences among investors and issuers. An increased focus on climate change and
challenges ahead, from regulators, the media and through multi-national agreements such as the Paris
Agreement, reinforces incentives to integrate sustainability concerns into investment strategies. For
corporations it is becoming more important to demonstrate dedication to sustainable and green,
where green issuances of bonds can reap valuable reputation benefits and send a potent sign to
investors with ESG or SRI mandates. Research has demonstrated that investors are paying a premium
to obtain green bonds.
References
Anna- Laskowrka (2017) "The Green Bond as a prospective instrument of the global debt marker”,
Copernican Journal of Finance & Accounting, Vol. 6, Issue 4.
Carolyn M. duPont, James N. Levitt, Linda J. Bilmes (2015) "Green Bonds and land conservation:
The Evaluation of a new financing tool".
Dragon Yongjun Tang and You Zhang (2018) “Do Shareholders benefit from green bonds?”
Echo Kaixi Wang (2018) "Financing Green: Reforming Green bond regulation in the United States",
Brooklyn Journal of corporate, Financial & Commercial Law, Vol. 12, Issue 2.
Fedi Wulandari, Dorothea Schafer, Andreas Stephan & Chen Sun (2018) "Liquidity risk and yield
spreads of green bonds.
Jacqueline Yujia Tao (2016) "Utilising green bonds for financing renewable energy projects in


developing Asian countries", pp,343-381.
Lake Trampeter (2017) “Green is Good: How Green Bonds Cultivated into Wall Street's
Environmental Paradox”, Vol. 17, Issue 2.
Panda Pradiptarathi (2017) "Green Bond: A Socially Responsible Investment (SRI) Instrument", Vol.
43, NO I. pp. 97-113

A STUDY ON BENEFICIARIES’ OPINIONS REGARDING PRADHAN
MANTRA JAN DHAN YOJNA(PMJDY) SCHEME: WITH SPECIAL
REFERENCE TO FINTEC TECHNOLOGY (MOBILE BANKING) IN CENTER
GUJARAT REGION
Dr. Gaurangkumar C. Barot*
ABSTRACT
Financial inclusion in the formal financial system of the under banked population could lead to
improvement of their financial circumstances and living standards, empowering them to create financial
assets, generate income and build resistance to meet macroeconomic and livelihood shocks. Indian
Government and RBI are making enormous efforts to bring every section of the country into the
mainstream financial system ever since the Nationalization of banks in 1969 and 1980 till today's
adaptation of fintech, still there is a significant disparity between the growth expectations and the ground
realities. The Indian banking sector today is dealing with the issue of financial inclusion. Operating cost
of providing financial inclusion and charges levied on the users are important dimensions of the process
of financial inclusion. Technology is playing an important role in reducing the operating cost of
providing banking services, particularly in rural and unbanked areas. There are Banking technologies
that could drive the growth in financial inclusion. The present study aims to examine the impact of
Banking Technology and government initiatives towards financial inclusion conducted in selected
villages and city of center Gujarat Area, surveying 400 rural households through a structured
questionnaire. Descriptive research illustrating the extent of adaptation of Banking technology was
mixed in nature still there is a long road ahead to achieve the desired results through technological
advancement. No doubt it is playing a significant role and is working in a positive direction as the
government is also pushing towards digitalization.
Key Words: Fintec, Mobile Banking, PMJDY, Financial Inclusion, Rural Population, Banking
Technology.
*Assistant Professor (Commerce with Accountancy), Dr. APJ Abdul Kalam Government College,
(Affiliated to Gujarat University, Ahmedabad, Gujarat, India), E-mail: [email protected]

Introduction
"Financial inclusion is the delivery of banking services at an affordable cost ('no frills' accounts,)
tothe vast sections of disadvantaged and low-income groups. Unrestrained access to public goods and
services is the sine qua non of an open and efficient society. As banking services are a public good,it is
essential that the availability of banking and payment services to the entire population without
discrimination is the prime objective of the public policy. According to the World Bank report “Financial
inclusion, or broad access to financial services, is defined as an absence of price or non-price barriers in
the use of financial services.” India is growing towards rapid financial sector expansion in terms of the
strong growth of existing financial services businesses and new entities emerging in the market. The
sector comprises commercial banks, insurance firms, nonbanking financial corporations, co-operatives,
pension funds, mutual funds, and other smaller financial entities. The banking mechanism has allowed
new entities such as payments banks to be created recently thereby adding to the types of entities operating
in the sector. Though, the financial sector inIndia is primarily a banking sector with commercial banks
accounting for more than 64 percent of the total assets held by the financial arrangement.
Review of Literature
Here, in article only few reviews are considered and details reviews to justify the subject.
Olayinka O. Adegbite, Charles L. Machethe (2020)i analyzed a mixed method review from secondary
sources (Global Findex Databases 2011, 2014, 2017, Nigeria CGAP Smallholder Household Survey
2016 and literature) to investigate the trend in FIGG in smallholder agriculture in Nigeria. The causes
and effects of FIGG on sustainable development were also identified and the strategies to bridge the gap
and found that the FIGG in smallholder agriculture was 12% in 2016 while considering the whole
population; it increased from 7% in 2011 to 20% in 2014 and24% in 2017. The causes of FIGG were
ascribed to socioeconomic, socio-cultural, institutional, legal, and regulatory factors which affect the
demand and supply of formal financial services and FIGG in smallholder agriculture has interlinked
negative effects like high cost on agricultural productivity, income inequality, food insecurity, limited
market access and povertywhich retards sustainable development.
Laura Cabeza-Garcíaa, Esther B. Del Briob, and Mery Luz Oscanoa-Victorious (2019)ii Investigate
the effects of female financial inclusion on inclusive economic development through women's
participation in the financial system as the inequality gap decreases, increases both physical and social
wellbeing. In this research an instrumental variable analysis is conducted on a sample

of 91 countries, comprising both developed and emerging countries, using data from the GlobalFindex
(2015) database and the World Bank Databank, and the results effectively provide evidence attesting to
the fact that greater financial inclusion of women, measured as access to a bank account and access to
credit cards, has a positive effect on economic development.
Dr. Soumyendra Kishore Datta and Dr. Krishna Singh (2019)iii attempted to analyze the financial
inclusion scenario across several developed or developing countries of the world, for the period2011 and
2014 focused on developing a financial inclusion index (FII) and found its associationwith the value of
human development index. Adding explanation of variation in observed FII. here, Principal Component
Method has been applied to calculate the three-dimension indices (availability, access, and usages) and
finally FII. A pooled OLS with clustered standard error regression model has been used to explain the
factors influencing financial inclusion across thecountries of the world.
Thai-Ha Le, Anh Tu Chuc, and Farhad Taghizadeh-Hesary (2019)iv examined the trend of financial
inclusion in Asia and its impact on financial efficiency and financial sustainability by taking asample of
31 Asian countries during the period spanning from 2004 to 2016. using principal component analysis
(PCA) based on normalized variables Composite indicators for the three financial dimensions are
constructed and found that the trends are fluctuating across countries and there was no clear pattern in
several cases. the second analysis to find the impact of financial inclusion on financial efficiency and
sustainability is analyzed using Feasible Generalized Least Squares (FGLS) and the estimation results
indicate that growing financial inclusion negatively affected financial efficiency but it favorably
influences financial sustainability.
The research was undertaken by the research to understand the effect of technological aspects of
banking on low-income group customers with a structured questionnaire. As the literature studied here
has shown emphasize on technology and fintec (Mobile Banking) as the future of financial inclusion.
The Problem Area
As earlier discussed financial inclusion is a very wide aspect. For this study purpose, the
government schemes Pradhan Mantra Jan Dhan Yojna is taken and those who are using banking through
mobile their/ respondents / beneficiaries primary survey done through structured questionnaire. This
kind

survey is much needed that how effectively people using and paying for their daily needs. For that this
study is very useful.
Significances of the Study
While doing a study on financial inclusion and specially governmentsschemes reaches to all area
of the country and get the benefits of it idea available for the same.
Research Gap
This kind of study in this selected region is not done by anyone till date
Research Design
Descriptive type
1. To study the role of banking technology in financial inclusion.
2. To know the bank account holding and PMJDY among low-income individuals.
3. To identify the usage and satisfaction of services provided by the bank.
4. To find out the use of mobile banking and various reason.
5. To study the frequency of mobile banking usage.
Universe of the Study and Sample Design
Keeping in view the limitation of time, efforts and cost it is not possible to study all beneficiaries
of using Government Schemes and Fintec in Financial Inclusion hence, a structured questionnaire through
goggle survey sheet sent to the users and their replies secured in excel sheet. Researcher has received
around 400 responses.
Sampling collection method
The convenient sampling method.
Sampling collection Area
sampling collecting 400 respondents from a rural household fromselected villages which are center
Gujarat Area.
Sampling collection time period
Year 2021 to 2022
Research Instrument
A structured questionnaire is used for data collection from the beneficiaries of using
GovernmentSchemes and Fintec in Financial Inclusion.
Collection of Data
Primary Data
• The Primary data is collected through questionnaires from 400 beneficiaries of using Government
Schemes and Fintec in Financial Inclusion.
• The questionnaire is prepared and present personally in all English languages for the beneficiaries
to collect the required information.
Secondary Data
The secondary data is collected from various sources like Books, journals, Website data etc.
Hypotheses
Hypothesis testing is a predictive statement capable of being tested by scientific methods.
Hypotheses of study are mention as under:
Table No. 1: Hypotheses
Hypothesis Particulars
No.
1 H0 = There would be no significant difference in the scheme of PMJDY bank accountholders’
responses towards various services they are aware of and using.
2 H0 = There would be no significant difference in the scheme of PMJDY bank accountholders’
responses towards their satisfaction level rate.
3 H0 = There would be no significant difference in the Respondents’ response towardsfrequently use
of mobile banking.
4 H0 = There would be no significant difference in the beneficiaries’ numbers or growth
at rural and urban area of PMJDY schemes.
Limitations of the Study

Every social science research study has its limitation
1.) Lacks proper response from respondents.
2.) Higher cost in data collection
3.) The research studyis conducted in the selected area.
4.) The samples received for the research study are 400 only
Data Analysis and Presentation

Data analysis is done manually. All data collected through a structured questionnaire. Data are
presented by using tables, charts, selected region and categories wise, hypothesis formulating,
calculation test, testing of hypotheses, and Interpretation of Result. Hypotheses tested at a significant
level of 5% And Applicable Require Degree of Freedom. As par suitability of collected data for this
study various statistical tests applied for hypotheses testing.
Data analysis and interpretation
According to the questionnaire, the collected data are analyzed in a given pattern. First, data
transferred into table form. According to hypotheses, various applicable tests were applied for the study.
After hypotheses testing appropriate interpretation was given. Also, findings and suggestions are given
in the last chapter.
Table No 2: Classification of respondent on basis of gender

Gender Frequency Percentage
Male 252 63%
Female 148 37%
Total 400 100%
Table No 3: Classification of respondent on basis of education
Education Frequency Percentage
Illiterate 80 20%
SSC or Low 124 31%
HSC 80 20%
Graduate 100 25%
Postgraduate 16 4%
Total 400 100%
Table No 4: Classification of respondent on basis of Annual Income

Annual Income Frequency Percentage
<100000 184 46%
100000-200000 108 27%
200000-300000 68 17%
>300000 40 10%
Total 400 100%
Table No 5: Classification of respondent on basis of landholding

Land Holding Frequency Percentage
Yes 220 55%
No 180 45%
Total 400 100%
Table No 6: on Respondents response towards having bank in their village

Bank in Village Frequency Percentage
Yes 384 94%
No 16 6%
Total 400 100%
Table No 7: on Respondent responses towards having an Account in the bank

Account in bank Frequency Percentage
Yes 316 79%
No 84 21%
Total 400 100%
Table No 8: Respondent response towards their bank account in types of bank

Type of bank Frequency Percentage
Public Sector 130 41%
Private Sector 85 27%
Micro Finance 13 4%
Cooperative 75 24%
Community 13 4%
Total 316 100%
Table No 9: Respondent response towards type of bank account

Account Frequency Percentage
Current account 38 12%

Saving account 218 69%
Fixed account 47 15%
Loan account 13 4%
Total 316 100%
Table No 10: On Respondent response towards zero balance a/c with your bank (PMJDY)
Zero balance account Frequency Percentage
Yes 167 53%
No 149 47%
Total 316 100%
Table No 11: on Respondent response towards frequently visit to bank

Bank visit Frequency Percentage
Daily 9 3%
Weekly 98 31%
Monthly 158 50%
Yearly 51 16%
Total 316 100%
Hypothesis testing
Hypothesis No. 1: H0 = There would be no significant difference in the scheme of PMJDY bank
account holders’ responses towards various services they are aware of and using.
Table No 12: PMJDY bank account holders’ responses towards various services they are aware of
and using.
Services Aware Using Unaware Total
Loan 169 133 14 316
Mobile banking 195 88 33 316
Debit card 182 100 34 316
Credit card 178 108 30 316
Deposit of cash 167 134 15 316
Withdrawal of cash 156 148 12 316
Cheque book 162 125 29 316
Over draft 186 80 50 316
Insurance 177 111 28 316
Kisan CC 216 66 34 316
ATM 214 22 80 316
Hypothesis testing result reveal that the beneficiaries of PMJDY account holders experience with
various services received that are not par and different with satisfactions they have with the services like
Loan, Mobile banking, Debit card, Credit card, Deposit of cash, Withdrawal of cash, Cheque book,over
draft, Insurance, Kisan CC and ATM facilities. Here the most important thing is that when government
providing services to beneficiaries it should be at par. here researcher from the study recommend to
provide services at par to all the categories including Male & female, in all the areas including rural and
urban, to all the persons weather educated or not. All deserve equal facilities a satisfaction with same
services provider.
For testing of above hypothesis Kruskal-Wallis Test (H test) is applicable following is given
calculation of the same test.
Table No 13: Kruskal-Wallis Test
Median n Avg. Rank
Aware 178.00 11 28.00
Using 108.00 11 16.14
Unaware 30.00 11 6.86

Total 108.00 33
H (corrected for ties) 26.420

d.f. 2
p-value 1.83E-06
P value comparison
P test value < P value
0.00000183 < 0.05
Hence, H0 = Rejected
H1 =Accepted
Interpretation of Result
The table value of h test for 2 degree of freedom at 5% level of significanceis 5.991 (H table
value) and the calculated value of H is 26.420 (H calculation) which is higher than the table value, hence
the result of the experiment does not support the null hypothesis. So, null hypothesis is rejected and
alternative hypothesis is accepted. It means there would be no significant difference in the scheme of
PMJDY bank account holders’ responsestowards various services they are aware of and using.
Hypothesis No. 2: H0 = There would be no significant difference in the scheme of PMJDY bank
account holders’ responses towards their satisfaction level rate.
Table No. 14 Respondent response towards Satisfaction From the following and Kindly rate.(Their
responses in appropriate option from the given 5 likert scale)

Statement Highly Highly
Dissatisfied Dis- satisfied Neutral Satisfied satisfied Total
Services provided bybank
58 66 97 69 28 316
Distance to the bankCost
incentives 13 87 117 82 17 316
Bank employees
Attitude and behavior 17 68 137 74 20 316
Branch timing 22 55 122 96 21 316
Bank charges 16 65 129 84 22 316
Banking KYC 17 73 111 84 22 316
Quick access to loan and
deposits 16 68 122 88 22 316
Availability of ATM 11 49 140 82 34 316
Insurance services 23 48 134 89 22 316
Mobile banking 20 55 136 85 20 316
Internet banking 19 43 129 94 31 316
Overall satisfaction 11 38 103 118 46 316
Table No 15: Kruskal-Wallis Test calculation

Median n Avg. Rank
Highly Dissatisfied 17.00 12 9.50
Dis- satisfied 60.00 12 30.50
Neutral 125.50 12 54.17
Satisfied 84.50 12 42.17
Highly satisfied 22.00 12 16.17
Total 61.50 60
d.f. 4
p-value 9.03E-11
P value comparison
0.0000000000903 < 0.05
H1 =Accepted

The table value of h test for 4 degree of freedom at 5% level of significanceis 9.488 (H table value)
and the calculated value of H is 52.879 (H calculation) which is higher than the table value, hence the
result of the experiment does not support the null hypothesis. So, null hypothesis is rejected and
alternative hypothesis is accepted. It means there would be significant difference in the scheme of
PMJDY bank account holders’ responses towards their satisfaction level rate.
Table No 16: Respondent response towards having a mobile phone.
Particular Frequency Mobile phone

Yes 344 86%
No 56 14%
Total 400 100%
Table No 17: Respondent response towards use of mobile banking
Particular Frequency Mobile banking
Yes 252 63%
No 148 37%
Total 400 100%
Table No 18: Purpose of using Mobile Banking
Particular No. of people use Percentage
Time Saving 88 35%
Easy Transfer 58 23%
24*7 Service 49 19%
Impress People 14 6%
Secured Transection 29 12%
Cost effective 14 6%
Total 252 100%
Table No 19: Reasons not using Mobile Banking

Particular No. of people not using Percentage
Difficult to use 31 21%
Trust Issue 23 16%
Low internet connectivity 12 8%
Not finding any need 32 22%
Do not have smart phone 22 15%
Do not know how to use 23 16%
Small screen makes it difficult to view 5 3%
Total 148 100%

Hypothesis No. 3: H0 = There would be no significant difference in the Respondents’ response
towardsfrequently use of mobile banking.
Table No 20: Respondent response towards frequently use of mobile banking
Particular Daily Monthly Yearly Never Total

Balance inquiry 26 89 41 96 252
Mobile recharge 5 90 52 105 252
DTH recharge 0 68 64 120 252
Bill payment 4 71 56 121 252
Stock payment 4 24 59 165 252
Fund transfer 5 24 62 161 252
ATM 28 60 53 111 252
Debit card Request 14 35 68 135 252
Cheque book Request 9 39 73 131 252
To book hotel 5 24 57 166 252
Flight booking 0 11 58 183 252
Bus booking 0 18 56 178 252
Making Investment 3 16 44 189 252
Table No 21: Kruskal-Wallis Test

Median n Avg. Rank
Daily 5.00 13 8.00
Monthly 35.00 13 23.50
Yearly 57.00 13 28.50
Never 135.00 13 46.00
Total 56.00 52

d.f. 3
p-value 4.74E-09
P value comparison

0.00000000474 < 0.05
H1 =Accepted

The table value of h test for 4 degree of freedom at 5% level of significanceis 7.815 (H table value)
and the calculated value of H is 41.659 (H calculation) which is higher than the table value, hence the
result of the experiment does not support the null hypothesis. So, null hypothesis is rejected and
alternative hypothesis is accepted. It means there would be significant difference in the Respondents’
response towards frequently use of mobile banking.
Hypothesis No. 4: H0 = There would be no significant difference in the beneficiaries’ numbers or
growth at rural and urban area of PMJDY schemes.
Table No 22: Number of Beneficiaries at rural and urban area of Pradhan Mantri Jan - Dhan
Yojanaas on 16/03/2022 (All figures in Crore)
Number of Beneficiaries Number of Beneficiaries Number of
at rural/semi urban at urban metro center Total
Banking sector Frequency center bank branches bank branches Beneficiaries
Public Sector Observed 22 13 35
Banks Expected 23.63 11.79 35.42
Regional Rural Observed 7 1 8
Banks
Expected 5.49 2.74 8.23
Private Sector Observed 1 1 1

Banks Expected 0.87 0.43 1.30
Observed 30 15 45
Total Expected 29.99 14.96 44.95
Calculation of χ² Test
• Level of Significance = 0.05 or 5%
chi-square 1.91
df 2
p-value .3852
P value comparison
P test value > P value
0.3852 > 0.05
Hence, H0 = Accepted
H1 = Rejected
The table value of h test for 2 degree of freedom at 5% level of significanceis 5.99 (x2 table value)
and the calculated value of H is 1.91 (x2 calculation) which is lower than the table value, hence the result
of the experiment is supporting the null hypothesis. So, null hypothesis is

acceptedand
accepted andalternative
alternativehypothesis
hypothesis isisrejected.
rejected. ItItmeans
meansthere
therewould
wouldbe
beno
no significant
significant difference
difference in
in the
the
beneficiaries’numbers
beneficiaries’ numbersor
orgrowth
growthatatrural
ruraland
andurban
urbanarea
area of
ofPMJDY
PMJDYschemes.
schemes.
After interpretations
After interpretations and
and analysis
analysis of
of above
above all
all hypotheses,
hypotheses, following
following various
various findings
findings and
and suggestions
suggestions
are
areconstructed.
constructed.
Conclusion
Conclusion
The
Theabove
above data
data illuminates
illuminates the
the major
major issues
issues on
on financial
financial inclusion
inclusion as
as most
most respondents
respondents were
weremale
male
and
andhaving
having aa low
low educational
educational level
leveland
and itit has
has been
beenalso
alsodiscovered
discoveredthat
that financial
financial literacy
literacy isis low
low among
among
them.
them. About
About 384
384 respondent
respondent has
has aa bank
bank in
in their
their village
village out
out of
of itit 316
316 has
has aa saving
saving bank
bank account
account and
and
there is 167 respondent who has a zero-balance account (PMJDY). The majority of them are farmers
there is 167 respondent who has a zero-balance account (PMJDY). The majority of them are farmers
and they were having Kisan credit card and was financially inclusive thus PMJDY includes half of
and they were having Kisan credit card and was financially inclusive thus PMJDY includes half of
them in inclusion. Almost 259 respondents are using facilities provided by the bank. They are aware of
them in inclusion. Almost 259 respondents are using facilities provided by the bank. They are aware of
services like a loan; mobile banking, debit card, credit card, and deposit of bank, withdrawal of cash,
services like a loan; mobile banking, debit card, credit card, and deposit of bank, withdrawal of cash,
checkbook, insurance, Kisan CC, overdraft and ATM, so respondents were aware of various financial
checkbook, insurance, Kisan CC, overdraft and ATM, so respondents were aware of various financial
services but were using few. They were positive toward use of services like income, bank charge,
services but were using few. They were positive toward use of services like income, bank charge,
employment status, etc. asking on usage of mobile phone is 86% were having mobile phone and 63%
employment
were using a status,
mobileetc. asking(male
banking on usage of mobile
majority), phone
hence thereisis86% were
a gap of having
22% andmobile
thesephone
coverand 63%
female
were using aas mobile
respondents literacy banking (malefemale
level among majority),
is low.hence there
Mainly the is a gap of was
respondent 22%using
and these cover
mobile female
banking to
respondents
save as services,
time, 24*7 literacy level
ease among
of usingfemale is low.
draw them Mainly
to one handthe respondent
stop. Whether was
someusing
weremobile banking
not using to
mobile
save time,
banking 24*7 services,
because easefind
they do not of using drawfor
any need them
the to one and
same handthey
stop. Whether
find some
difficult were
to use not using
mobile mobile
banking.
banking because they do not find any need for the same and they find difficult to use mobile banking.
Findings
Findings
• Hypothesis testing result reveal that the beneficiaries of PMJDY account holders who experience
• with varioustesting
Hypothesis services received
result revealthat
thatare
thenot par and different
beneficiaries with satisfactions
of PMJDY theywho
account holders have with the
experience
services like Loan,
with various Mobile
services banking,
received Debit
that are notcard, Credit
par and card, Deposit
different of cash, Withdrawal
with satisfactions of cash,
they have with the
Cheque
servicesbook, over draft,
like Loan, Mobile Insurance,
banking,Kisan
Debit CC and
card, ATMcard,
Credit facilities.
Deposit Here themost
of cash, importantofthing
Withdrawal cash,
is that when government providing services to beneficiaries it should be at par. here researcher
Cheque book, over draft, Insurance, Kisan CC and ATM facilities. Here themost important thing
from the study recommend to provide services at par to all the categoriesincluding Male & female,
is that when government providing services to beneficiaries it should be at par. here researcher
in all the areas including rural and urban, to all the persons weather educated or not. All deserve
from the study recommend to provide services at par to all the categoriesincluding Male & female,
equal facilities and satisfaction with same services provider.
in all the areas including rural and urban, to all the persons weather educated or not. All deserve
equal facilities and satisfaction with same services provider.
with of various services satisfaction rate received that are not par and different withsatisfactions
they have with the various statements of facilities like Services provided by bankDistance to the
with of various services satisfaction rate received that are not par and different withsatisfactions
bank Cost incentives, Bank employees Attitude and behavior, Branch timing, Bank charges,
they haveKYC,
Banking with the various
Quick statements
access to loan of facilities
and likeAvailability
deposits, Services provided by Insurance
of ATM, bankDistance to the
services,
bank Cost
Mobile incentives,
banking, InternetBank employees
banking Attitude
and Overall and behavior,
satisfaction. Branch
Here the timing, Bank
most important thingcharges,
is that
Banking KYC, Quick access INDIAN
to loan and deposits,
JOURNAL Availability
OF ACCOUNTING of: 55ATM,
(IJA) VOLUME Insurance
(2) DECEMBER, 2023 services,
◆ 83
Mobile banking, Internet banking and Overall satisfaction. Here the most important thing is that
when government providing various much needed facilities to beneficiaries it should be at par.
here researcher from the study recommend to provide servicesat par to all the categories including
Male & female, in all the areas including rural and urban,to all the persons weather educated or
not. All deserve equal facilities and satisfaction with same services provider.
• Hypothesis testing results reveal that the beneficiaries of PMJDY account holders who
experience of frequent use of mobile banking on a daily, Monthly, and yearly bases are not par
and have a significant difference in comparison to other beneficiaries with reference to servicesof
Balance inquiry Mobile recharge, DTH recharge, Bill payment, Stock payment, Fund transfer,
ATM, Debit card Request, Cheque book Request, To book a hotel, Flight booking, Busbooking,
Making Investment. . Here the most important thing is that when the government provides various
much-needed facilities to beneficiaries it should be at par. Here, the researcherfrom this study
recommends using mobile banking regularly. It will save their cost, time and energy. Moreover,
the government would easily track all transactions, preventing tax embezzlement by any assesse.
This should be adopted by all the categories including Male & female, in all the areas including
rural and urban, to all the person's whether educated or not.
• Hypothesis testing results reveal that the beneficiaries of PMJDY account holders
experience the same for all three formats of banks i.e. Public Sector Banks, RegionalRural Banks
and Private Sector Banks with reference to rural and urban areas of the schemes. Day by day
number of beneficiaries increases in a very good manner. It is proof that this schemeof government
has a good response and people getting benefiting from it.
Suggestions
Few suggestions are given below details are included in thesis:
• Lack of physical and digital connectivity is posing a major hurdle in achieving financial inclusion
for rural India. Technological Issue- The technological issues affecting banks from poor connectivity,
networking and bandwidth problems to managing costs of maintain infrastructure especially in rural
areas. By providing good network this problem should solve by the government.
• Jan Dhan Account withdrawal limit: The withdrawal limit under PMJDY is Rs 10,000 per month.
Jan Dhan Account Limit: Account Holders can deposit a maximum of Rs 1, 00,000 in the account, under
the scheme. This limit must increase by the Government
• Government should open and provide more branches of bank with all facilities in rural and village
area.
• Jan Dhan Account holders get accidental insurance coverage of up to 2 lakhs that should be
• Jan Dhan Account holders get accidental insurance coverage of up to 2 lakhs that should be
increase
increase
• Jan Dhan Account ATM Card: The accountholders also get a Rupay debit card, with an overdraft
• Jan Dhan Account ATM Card: The accountholders also get a Rupay debit card, with an overdraft
facility of up to Rs 10,000. And that should be increase
facility of up to Rs 10,000. And that should be increase
• PMJDY Account-holders also get a life insurance cover of Rs 30,000. It will be given to the
PMJDY
•nominee Account-holders
in case of the death also getaccount
of the a life insurance cover
holder and that of Rsshould
also 30,000. It will by
increase be the
given to the
nominee in case of the death of the account holder and that also should increase by the
government.
government.
• Age limit should increase by the government for getting benefits of this schemes
• Age limit should increase by the government for getting benefits of this schemes
• and income tax return filling persons also include in this schemes
• and income tax return filling persons also include in this schemes
Biblography
Biblography
Adegbite, O. O., & Machethe, C. L. (2020). Bridging the financial inclusion gender gap in
smallholder
Adegbite, O. O., &agriculture
Machethe,inC.
Nigeria: An untapped
L. (2020). Bridging potential for sustainable
the financial gap in World
development.
inclusion gender
Development, 127, 104755.
smallholder agriculture in Nigeria: An untapped potential for sustainable development. World
Development, 127, 104755.
Barot G.C. (2015), Banking sector in India, Hemchandracharya International Publishing House, ISBN
978-15-08949- 72-5 pp 25-40
Barot G.C. (2015), Banking sector in India, Hemchandracharya International Publishing House, ISBN
978-15-08949- 72-5 pp 25-40
Cabeza-García, L., Del Brio, E. B., & Oscanoa-Victorio, M. L. (2019). Female financial inclusion
and its impacts on inclusive economic development. In Women's Studies International Forum
Cabeza-García, L., Del Brio, E. B., & Oscanoa-Victorio, M. L. (2019). Female financial inclusion
(Vol. 77, p. 102300). Pergamon.
and its impacts on inclusive economic development. In Women's Studies International Forum
Datta,(Vol. 77,&p.Singh,
S. K., 102300). Pergamon.
K. (2019). Variation and determinants of financial inclusion and their
association with human development: A cross-country analysis. IIMB Management Review,
Datta, 31(4),
S. K., 336-349.
& Singh, K. (2019). Variation and determinants of financial inclusion and their
association with human development: A cross-country analysis. IIMB Management Review,
Le, T.31(4), 336-349.
H., Chuc, A. T., & Taghizadeh-Hesary, F. (2019). Financial inclusion and its impact on
financial efficiency and sustainability: Empirical evidence from Asia. Borsa Istanbul Review,
Le, T. 19(4), 310-322.
H., Chuc, A. T., & Taghizadeh-Hesary, F. (2019). Financial inclusion and its impact on
Maheshwari
financialS.N.(2006)
efficiency“Fundamentals of financial
and sustainability: Empiricalmanagement” Sultanchand
evidence from &Istanbul
Asia. Borsa sons publication,
Review,
New Delhi
19(4), Nazneen Shaikh (2021) “To study the role of Banking Technology towards Financial
310-322.
Inclusion
Maheshwari in Selected
S.N.(2006) Villages of of financial management” Sultanchand & sons publication,
“Fundamentals
Ahmedabad” Globalization
New Delhi and sustainable
Nazneen Shaikh (2021) “ToDevelopment:
study the roleDynamics of Technology
of Banking Trade, Industry and Society”
towards Financial
ISBN: 978-93-89652-977-0
Inclusion in Selected Villages of
Ahmedabad” Globalization and sustainable Development: Dynamics of Trade, Industry and Society”
ISBN: 978-93-89652-977-0
INVESTMENT OBJECTIVES AND SATISFACTION: A STUDY ON RETAIL
INVESTORS OF DELHI-NCR
Dr. Tek Chand*
ABSTRACT
In this article, an attempt has been made to study the retail investors’ investment objectives and
satisfaction. For the assembling of the data, a well-framed close-ended google survey
questionnaire link was forwarded through email to 130 targeted retail investors of Delhi-NCR.
Out of which, 120 were responded. The analysis was carried out by using descriptive and
inferential statistics (Suwardi & Rahardjo, 2022; Sharara & Nkomo, 2022). This study explores
the components of investment objectives that contribute to the satisfaction level of retail
investors (Kothari et al., 2020). The study has drawn the inference that there is an insignificant
difference between population mean of age, education and income groups pertaining to their
investment objective, except in a few cases it shows the significant results, which means there
is at least one group mean is different from the others. Further, the study ascertains that a sizable
proportion of retail investors are highly stratified with their investment objectives of wealth
creation, additional source of income, long-term investment growth and so on.
Keywords: Stock Market, Retail-Investor, Objective, Satisfaction
JEL Classification: G1, G10, G11

ȗǡǤ ǡȋǤȌǡǡͳͳͲͲ͵ʹǡ
ǣǦ ͳʹ͵̷Ǥ ǤͻͺͳͲͳͷ͵ͷͲͲ

[1]
Introduction
Over the years, India has become one of the quickest-rising economies in the world and
offers a growing and lucrative environment for investment. India's investment policy is
continuously reviewed on a regular basis to ensure that India remains an attractive and investor-
friendly destination (The Economic Times, 2022) for domestic and overseas investors. And it
has also been successful in attracting investors to a large extent. Today, investment is the basic
need for the financial well-being of every individual (Chaurasia, 2017; Jain et al., 2019).
Investment has been broadly defined as the acquisition of valuable asset with the aim of
receiving a return (Rosemary et al., 2017). It can also be viewed as the employment of surplus
money in financial assets with the objective of achieving additional income (Revathy &
Suthendren, 2012) or capital appreciation. Financial assets come in different forms, such as
shares, bonds, mutual funds, ULIP, fixed deposits, and many more. However, the primary goal
behind all investments remains the same, i.e., to increase the value of the invested money.
Investing in the stock is not an easy task, and it requires sufficient financial knowledge,
investment skills, ability and willingness to take up risks (Shankar & Bhatt, 2022). The
investment objectives of an investor refer to what the investor (Rosemary et al., 2017) hopes
to achieve with his or her investment. Objectives define the purpose of investing and these
objectives may vary from one investor to another (Raveendran & Kanakaraj, 2015). Some of the
key objectives of investment are the protection of the principal amount, capital growth,
generation of regular additional income, wealth creation, tax savings, the need for liquidity,
and quick returns (Chaurasia, 2017; Jain et al., 2019). Once an investor knows his objective, it
can guide him towards certain asset classes or securities. These classes of assets help investors
to create a portfolio. Many financial experts recommend that investors rebalance their
portfolios on a regular time interval (www.sec.gov) to reach out their investment objectives
and satisfaction. Satisfied investors are a necessary element of the stock market. They help to
finance rapid expansion in developing countries (Rashid & Nishat, 2009) like India. Satisfied
investors bring new investors (Anderson et al., 1994) to the market, educate themselves on
trading and information management, make the market competitive, and bring new issuers
(borrowers) to the market (Rashid & Nishat, 2009).

An Overview of the Existing Research
A review of previous research articles can give a researcher an understanding of different

aspects and potential future research areas.
Bishnoi (2014) stated that the insurance scheme is the most picked avenue for investment and
it is pursued by bank deposits, PPF, NSC, and postal savings plan. Likewise, Bond is followed
by equity investment and debenture is the least preferred instrument for investment.
Furthermore, he has found that demographic variables have a significant relationship with
investment objectives.
Peng et al., (2015) in their study stated that customer satisfaction is a valuable intangible asset
and it generates positive abnormal returns. They said that even when the share market exhibits
negative sentiments, investors who invest in the market confirm customer satisfaction.
Furthermore, the authors clarified that customer satisfaction is value-relevant, not even for
investors but also for firm management, especially in pessimistic periods.
Raveendran and Kanakaraj (2015) noticed that there is no influence of family members on
investment objectives and the level of satisfaction of investors, but most of the investors
(respondents) strongly believe that the efforts of regulatory bodies are essential to educate and
aware the investors for capitalizing investing goal.
Chaurasia (2017) analyzed that investors’ investment objectives of the Protection of Principal
amount, Capital Growth, and Regular Income have a significant relationship with the
demographic variable of gender, while it shows an insignificant relationship in the case of age.
The investment objectives of Quick Returns and Liquidity have also established a significant
relationship with regard to age and gender. Further, he has found that the safety of the principal
is the most preferred and liquidity is the least preferred by investors.
Jain et al., (2019) concluded that the primary objective of women investors was to earn high
returns, the Tax-saving objective attracted them towards the tax-saver mutual fund, assured
return attracted them towards the bank FD and then NSS/PPF, and the Liquidity objective
fulfilled by investing in Gold. The overall investment objective of the investors was to get the
maximum return with the minimum risk by investing in stocks.
Mayilvaganan & Suganthi (2020) observed that the market was led by male investors in the
age group of twenty-to-forty years. They found that more than half of the respondents

invest their hard-earned money in the stock market. Authors stated that investors were satisfied
with their investments having features of safety, tax benefits, dividends, quick gain, and
liquidity. They concluded that in-depth market knowledge gave them an increasing return.
Paulraj & Viji (2021) found that the majority of investors were male and age-wise investors
represent the thirty-one to forty-year age group and most of these investors were master-level
academically qualified. The authors found that liquidity and a high rate of return made the
investor highly satisfied to invest in shares. They also found that investors were happy with
their broker’s advice for making investment decisions.
Khan (2022) observed that loss aversion acts as an arbitrator to indirectly influence investment
objectives due to earlier perceived losses. He also found that for high-risk investors, prior
realised losses indirectly influence individuals to invest more in order to achieve a higher
projected return aim and less in order to achieve the goal of creating a fund reserve for potential
future expense. Further, he claimed that despite having previously suffered losses and being
loss-averse, risk-tolerant investors carry on to invest in order to gain a higher expected return.
Research Gap
In India, Retail investor participation is increasing rapidly. Especially, it has been noticed
during the COVID pandemic and after the pandemic. As a result, retail investors are now
accounting for more than fifty percent of daily market transactions, which shows their
aggressive participation in the market. Although lots of studies have been carried out on retail
investors, but as per existing research and the present scenario of the market, it is not sufficient
to reveal investors' situations, because with the passage of time either these figures have been
changed or outdated. In addition, population growth, Income level, Age, Job status, Experience,
Financial Literacy, etc. always remained significant factors, and these factors are also
transformed rapidly. On the basis of aforesaid factors, the research gap has been identified and
proposed for the study, so it could reveal worthwhile results as per the present scenario of the
market.
Significance of the Study
The significance of this research is to understand the retail investors’ perspective about
the importance of investment objectives and satisfaction. It will give insights into the awareness
and assess their investment objectives not only of retail investors but also of existing and
prospective high-net-worth individual investors too. Moreover, the study

will be valuable to fund managers, brokers, and other financial institutions, who manage the
investors’ hard-earned money as per their aims and expectations.
Scope of the Study
The scope of this research was limited to identify the importance of investment objectives
and the satisfaction of individual investors. Geographically, the study was restricted to the
Delhi-NCR.
Period of the Study
One of the most important parts of the study was the collection of the primary data, which
took place over a six-month period from September 2021 to March 2022.
Research Objectives
ͳǤ To study the level of importance of the investment objectives.
ʹǤ To know the level of satisfaction of investment objectives.
Hypotheses
The study is based on the formulation of the following hypotheses:
H1 – There is no significant difference among the age groups with regards to importance of
H2 – There is no significant difference among the academic groups with regards to importance of
H3 – There is no significant difference among the income groups with regards to importance
of investment objectives.
Limitations
The present study covers only three investment objectives i.e. Long-term investment
Growth, Wealth Creation, and Additional source of income. Further, the study is confined to
120 retail investors of Delhi-NCR only. Therefore, the results can’t be generalized to other
parts of India.
In nature, the present study is an empirical study and it is devoted to know the retail
investors' importance of investment objectives and their satisfaction.
Data Source
This study relied exclusively on primary data. Data collection was ensured through a well-
framed google survey questionnaire.

[5]
Sample Size
In total 130 digital questionnaires were sent through email, out of which, 120 respondents
were responded. Thus, the qualified sample size was 120 and it used for the further
study.
Sampling Technique
The essential information was collected exclusively from retail investors, who invest in
the stock market, using the simple random sampling method.
Questionnaire
For this research, a well-structured closed-ended google survey questionnaire was
constructed by using scaling approaches such as Nominal and Ordinal scales at five point Likert-
Rating scale (Shankar & Bhatt, 2022).
Variables under Study
In the present study the demographic factors are considered as independent variables and
the importance of investment objectives and satisfaction are considered as dependent variables.
Tools and Techniques
In order to achieve the objectives of the study, collected data were processed by the
statistical software of SPSS and analysed by using descriptive and inferential statistics (Suwardi
& Rahardjo, 2022; Sharara & Nkomo, 2022). As per the need of the objectives and nature of
the data Mean, Standard Deviation, Skewness, Rank, Tukey Post Hoc Test, and One-way
Anova statistical tools had been applied.
ANALYSIS AND INTERPRETATION
After collecting the data, it was systematically tabulated and analysed by using
appropriate statistical measures.
Table No 1: Age Group-wise Responses: One-way Anova Test
Dependent Sum of Mean
Groups Df F Sig.
Variables Squares Square
Between Groups 11.788 3 3.929
Long term
Within Groups 105.137 116 .906 4.335 .006
Investment Growth
Total 116.925 119
Between Groups .401 3 .134
Wealth Creation Within Groups 71.924 116 .620 .215 .886
Total 72.325 119
Additional Source of
Within Groups 128.768 116 1.110 6.816 .000

[6]
◆ 91
Income Total 151.467 119
Source: Computed from Primary Data
One-way anova has been applied to measure the significance of mean difference among
the age groups of retail investors with regard to the importance of investment objectives in the
stock market. The analysis shows the P-value is insignificant at 0.05 for the dependent variable
of wealth creation, which means there is no difference between age groups of the respondents
with regard to the importance of the investment objective of wealth creation. Likewise, a
significant P-value specifies that at least one of the age group mean is different from the others
in case of investment of objectives of long-term investment growth and additional source of
income. The one-way anova does not tell where the difference exists. For this, Tukey Post Hoc
test has been applied.
Table No 1a:Tukey Post Hoc Results
Investment
Age Groups Below 30 30-45 45-60 Above 60
Objectives
Below 30 0.852 0.821 0.051
30-45 0.852 0.191 0.005*
Investment
Long-term
45-60 0.821 0.191 0.145

o Growth
Above 60 0.051 0.005* 0.145

Below 30 0.721 0.003* 0.888
30-45 0.721 0.009* 0.432
Additional
45-60 0.003* 0.009* 0.006*

fIncome
Source
Above 60 0.888 0.432 0.006*

Tukey post hoc test results shown in Table demonstrate that the age group below 30 has a
significant value (0.005) with the age group above 60 and vice-versa above 60 with below 30.
This illustrates that age groups below 30 and 45-60 have a different opinion as compared to other
groups for investing in the share market with a long-term investment perspective. Similarly,
values are also found significant for age groups of below 30 and 45-60 years, 30-45 and 45-60
years, 45-60 and above 60 years, and vice-versa all with its selves. Which signify that the above
mentioned age groups have a different opinion as compared to others for investing in the stock
market with the opinion of additional source of income.
[7]
Table No 2: Academic Group-wise Responses: One-way Anova Test

Groups Df F Sig.
Long term
Within Groups 94.457 116 .814 9.198 .000
Investment Growth
Total 116.925 119
Wealth Creation Within Groups 67.510 116 .582 2.758 .045
Total 72.325 119
Additional Source
Within Groups 144.257 116 1.244 1.932 .128
of Income
Total 151.467 119
One-way anova result highlights that a significant value is greater than 0.05 for the
investment objective of additional source of income. It signifies that there is no significant
difference in the responses of retail investors from different academic groups. Further,
significant results for long-term investment and Wealth Creation signify that there exists at least
one of the population mean is different from the others.
Table No 2a: Tukey Post Hoc Results
Investment Academic
Graduate Master Professional Other
Objectives Group
Graduate 0.678 0.008* 0.257
Master 0.676 0.101 0.014
Investment
Long-term
Professional 0.008* 0.101 0.000*

Growth
Other 0.257 0.014 0.000*

Graduate 0.983 0.429 0.582
Master 0.983 0.201 0.764
Creation
Wealth
Professional 0.429 0.201 0.030*
[8]
Other 0.582 0.764 0.030*
It is quite clear from the above table that values are found significant for respondents
having academic qualifications of graduate and professional, and vice-versa. Similarly,
professionals and others, and others and Professional. It exhibits that their opinions differ from
the other regarding investing in the share market for long-term investment growth. Further, retail
investors having professional qualifications and others are found statistically significant, which
ascertains that there exists a difference in their opinion as compared to other groups for
investing in the share market for wealth creation. Therefore, it is concluded that the aforesaid
groups’ opinions slightly differ as compare to other.
Table No 3: Income Group-wise Responses: One-way Anova Test

Groups Df F Sig.
Long term
Within Groups 112.657 116 .971 1.465 .228
Investment Growth
Total 116.925 119
Between Groups .797 3 .266
Wealth Creation Within Groups 71.528 116 .617 .431 .731
Total 72.325 119
Additional Source
Within Groups 140.594 116 1.212 2.990 .034
of Income
Total 151.467 119
Table depicts the one-way anova result, it shows the significant P-value for investing
objective of additional source of income at 5 percent level of significance. Hence, the
alternative hypothesis is accepted. So, it is inferred that retail investors from different income
groups are having different opinions with regard to investing objective of additional source of
income. In order to make it clear, which income group is different from the others, Tukey Post
Hoc test has been applied.
[9]
Table No 3a: Tukey Post Hoc Results
Investment
Income Groups < 3 Lakh 3-6 Lakh 6-9 Lakh > 9 Lakh
Objectives
< 3 Lakh 0.347 0.983 0.286
o 3-6 Lakh 0.347 0.012* 1.000

Additional
6-9 Lakh
fIncome 0.983 0.012* 0.068
Source
> 9 Lakh 0.286 1.000 0.068
The Table reflects the Tukey Post Hoc results for investing objective of additional source
of income on the basis of income groups. And it is found that mean difference is highly
significant in the case of people having incomes of 3-6 and 6-9 lakh per annum.
Thus, it can be concluded that retail investors from the 3-6 lakh and 6-9 lakh income groups
have a different opinion as compared to other income groups for investment objective of
additional source of income.
Level of Satisfaction of Retail Investors
The satisfaction level of Retail Investors about their Investment Objectives was measured
through a five-point Likert scale.
HD= Highly Dissatisfied, D= Dissatisfied, N= Neutral, S= Satisfied, HS= Highly Satisfied,
Table No 4:Investors Satisfaction about their investment Objectives
Satisfaction HD D N S HS Total Mean S.D. SK Rank
Wealth 1 2 27 62 28 120 -
3.95 .776 1
Creation (.8%) (1.7%) (22.5%) (51.7%) (23.3%) (100%) .571
Additional
13 22 39 40 120 -
Source of 6 (5%) 3.78 1.168 2
(10.8%) (18.3%) (32.5%) (33.3%) (100%) .757
Income
Long-term 5 42 34 33 120 -
6 (5%) 3.70 1.058 3
Growth (4.2%) (35%) (28.3%) (27.5%) (100%) .497
[10]
The satisfaction of long-term investment objective, 27.5 percent of retail investors are
found highly satisfied, 28.3 percent of investors are satisfied and 4.2 percent of investors are
highly dissatisfied with their long-term investment objective. The mean value is 3.70, which is
above the average value. The Standard Deviation is 1.058, which indicates high variations
among the responses of the respondents. Skewness represents the data is negatively skewed.
On the basis of the mean score, the third rank is assigned for the investment objective of long-
term growth.
Likewise, satisfaction about the wealth creation, the highest percent that is 51.7 of
respondents are found highly satisfied about the investment objective of wealth creation. The
mean value is 395, which is above average value. The standard deviation is 0.776, which
indicates less variation in the responses of retail investors. Skewness is -0.571, which reveals
that the data is negatively skewed towards the left side. On the basis of mean value, the first
rank is assigned for the investment objective of wealth creation.
In case of additional source of income, 33.3 percent of respondents have shown a high
level of satisfaction about the income earned from share market as additional source of income.
18.3 percent of respondents have remained neutral. And 10.8 percent and 5 percent of the retail
investors have found dissatisfied and highly dissatisfied. The mean score is 3.78, which is above
average value. The standard deviation is 1.168, which means there is high variation among the
responses of retail investors. Skewness is -.757, which reveals that data is negatively skewed
towards the left side. The second rank is assigned for the investment objective of additional
source of income. The investment objective of additional source of income has the second
highest mean score, therefore, second place is assigned to additional source of income.
Findings of the Study
• The study finds that there is a significance of mean difference among the age groups of retail
investors with regard to investment objectives of long-term investment growth and
additional source of income. This indicates that there exists at least one age group mean is
different from the others.
• It is evident from the analysis section that academic-wise analysis shows the insignificant
result for additional source of income and significant for long-term
[11]
▪ investment growth and wealth creation objectives. This point out that there is at least one of
the academic group population mean is different from the others.
• One-way anova result shows the significant result for investing objective of additional
source of income, which means there exists at least one of the income- wise group mean is
different from the others.
• It is quite clear from the analysis section that the maximum number of retail investors are
either satisfied or highly satisfied with their investment objectives (Shrivastava, 2018;
Mayilvaganan & Suganthi, 2020). On the basis of mean score, wealth creation is assigned
first rank, additional source of income is placed second, and long-term investment growth is
assigned third rank respectively.
Conclusion
Over the years, India has emerged as one of the fastest-growing economies in the world.
Especially, after the COVID-19 pandemic, India's economy showed great signs of recovery
in (www.ibef.org) the financial year 2022. India has always provided an investor-friendly
environment for investors. For an investor, investment helps in achieving his financial goals.
And when these financial goals are met, the investor expresses satisfaction towards his
investment. The study concludes that the maximum number of retail investors give equal
importance to their investment objectives and they are highly satisfied (Shrivastava, 2018;
Mayilvaganan & Suganthi, 2020) with their investment objectives of wealth creation,
additional source of income, and long-term investment growth.
Scope for Further Study
In the future, researchers may consider other investment objectives for the study, such as the
safety of the principal amount, tax savings, liquidity, quick returns etc. The study is restricted
to retail investors in Delhi-NCR and cannot be generalized to other parts of the nation. Thus,
the respondents may also be extended to other than retail investors, and similar research can
be conducted in other parts of India.
[12]
References
Anderson, E.W., Fornell, C., & Lehmann, D.R. (1994). Customer Satisfaction, Market
Share, and Profitability: Findings from Sweden. Journal of Marketing, 58, 53-66.
Bishnoi, S. (2014). Relation between Investment Objectives and Demographic

Variables. Journal of General Management Research, 1(1), 91-107.
Chaurasia, P. (2017). A Study of Investment Objectives of Individual Investors.

International Journal of Research in Finance and
Marketing (IJRFM), 7(6), 131-142.
https://ssrn.com/abstract=3032942
Jain, M., Chopra, P.K., & Khare, A. (2019). A Study of Investment Objectives of Women
Investors.International Journal of Creative Research Thoughts
(IJCRT), 7(2), 1337-1326. https://ijcrt.org/papers/IJCRT2003180.pdf
Khan, M.T.I. (2022). Prior perceived losses and investment objectives after stock market
crisis: a moderated-mediation model of risk tolerance and loss aversion. SN
Business & Economics, 83, 1-22. doi: 10.1007/s43546-022-00259-6
Kothari, D., Singh, V., & Pandey, S.K. (2020). An Empirical Analysis of Influential Factors
on Investment Behaviour of Retail Investors towards Indian Equity Market at
Raipur City-Chhattisgarh. Parishodh Journal, 9(3), 5815-5830.
DOI:09.0014.PARISHODH.2020.V9I3.0086781.57597
Mayilvaganan, S., & Suganthi, N., (2020). A Study on the Satisfaction of Stock Market
Investors with Reference to Chennai City. International Journal of Management (IJM),
11(12), 2675-2681. DOI: 10.34218/IJM.11.12.2020.251
Paulraj, G., & Viji, B. (2021). Investors Satisfaction Towards Stock Market In
Thoothukudi City. Turkish Journal of Computer and
Mathematics Education, 12(10), 7041-7044.
https://turcomat.org/index.php/turkbilmat/article/view/5578/4681
[13]
Peng, C., Lai, K., Chen, M., & Wei, A. (2015). Investor sentiment, customer satisfaction
and stock returns. European Journal of Marketing, 49(5/6), 827-850.
https://doi.org/10.1108/EJM-01-2014- 0026
Rashid, M., & Nishat, M.A. (2009). Satisfaction of retail investors on the structural
efficiency of the market: evidence from a developing country context. Asian
Academy of Management Journal, 14(2), 41-64.
https://ejournal.usm.my/aamj/article/view/aamj_vol14-no-2-2009_3
Ravindran, G., & Kanakaraj, N. (2015). Equity Investors Level of Satisfaction on

Investment Objectives in the Capital Market with Reference to Coimbatore District.
International Journal of CKPIM Business Review, 3(7), 1-11.
https://oaji.net/articles/2015/877-1449297542.pdf
Revathy, B., & Suthendren, N. (2012). Investment analysis and portfolio construction.
International Journal of Physical and Social Sciences, 2(2), 318-335.
Rosemary, I.N., Kaku, M.S., & Hashimu, B. (2017). Investment Objectives and Strategies
of Individual Investors in the Nigerian Capital Market. Journal of Poverty,
Investment and Development, 40, 82-87.
https://iiste.org/Journals/index.php/JPID/article/view/40482
Shankar, M.G., & Bhatt, K. (2022). A study of the level of stock market investment
awareness among young entrepreneurs, with a focus on the Mumbai Region. Journal
of Positive School Psychology, 6(2), 4947-4953.
https://journalppw.com/index.php/jpsp/article/view/3007
Sharara, K., & Nkomo, D. (2022). Customer Satisfaction as a Tool for Product
Development: A Case of Online Stock Trading Platforms used by Retail Investors
to Trade on the Zimbabwe Stock Exchange. Business and
Economics Journal, 13(5), 1-6.
https://www.hilarispublisher.com/open-access/customer-satisfaction-as-a-tool-for-
product-development-acase-of-online-stock-trading-platforms-used-by-retail-
investors.pdf
[14]
Shrivastava, A.K. (2018). Investment Behavior towards Different Financial Products.
International Journal of Innovative Knowledge
Concepts, 6(5), 57-62.
https://core.ac.uk/download/pdf/233155281.pdf
Suwardi & Rahardjo, D.A.S. (2022). Impact of Covid-19 on Retail Investor Investment
Preferences. Akuntansi’45:Jurnal Ilmiah
Akuntansi, 3(2), 156–175.
https://jurnaluniv45sby.ac.id/index.php/akuntansi/article/view/628
The Economic Times (2022, March 23). FDI inflow to India declines to $74.01 billion
in 2021. https://economictimes.indiatimes.com/news/economy/finance/fdi-inflow-
to-india- declines-to-74-01-billion-in-
2021/articleshow/90400950.cms?utm_source=contentofinterest&utm_medium=tex
t&utm_c ampaign=cppst (Accessed on Dec., 2022)
https://www.ibef.org/economy/investments (Accessed on Dec., 2022)
https://www.sec.gov/investor/pubs/tenthingstoconsider.htm. 2008, Dec. 01. Investor Alerts
and
Bulletins: Financial Navigating in the Current Economy. (Accessed on Nov., 2022)
Author details
Dr. Tek Chand, Assistant Professor, Department of Commerce, Shyam Lal College (Eve.), University
of Delhi, Delhi-110032, India.
Author’s contributions
Manuscript fully developed by corresponding individual independent author.
Funding
The study received no external funding.
Competing interests
The author declares that he has no competing interests.
[15]
COMPARISON OF DAIRY UNITS OF PUNJAB USING VARIOUS
FINANCIAL HEALTH INDICATORS
Dr. Hetal Bhatia*
Dr.Kamini Shah**
ABSTRACT
In the year 2022, the Punjab dairy sector worth was Rs. 491 billion. The Punjab dairy sector was
projected to grow at a compound annual growth rate of 14.7%. (Dairy Industry in Punjab: Market
Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement and Distribution) The
study aims to analyze the financial performance of selected dairy units in Punjab by using two
selected financial health models such as the Springate Score Model and the Zmijewski Score
Model.Data was gathered from the selected dairy units' annual reports, which covered the eleven-
year period from 2010–2011 to 2020–21. It was concluded from the study that Bathinda and the
Sangrur dairy units were in a financial distress zone and would go to bankruptcy in the near future.
From the Zmijewski score, Patiala, Sangrur and Ludhiana dairy units were in the financial distress
zone. Thus, the Sangrur dairy unit was a financially distressed zone as per both health models.
Keywords: Financial Performance, Financial Health, Punjab, Bankruptcy Scores
*Assistant Professor, Smt J B Patel College of Commerce Studies & Research. Email:
[email protected], Mob.: 7016120122
**Research Guide &Corresponding Author, Professor & Dean, Sardar Patel University, Vallabh
Vidyanagar-388120. Email: [email protected], Mob.:9825271629

INTRODUCTION
The Dairy Industry of India contributed 5% to the development of the Indian national
economy. The dairy industry of India is employing directly 8 crores farmers. The dairy sector
will grow 6% in the year 2023-24. (Das) The Punjab State Co-operatives Milk Producers
Federation (Milk Fed) works at a three-tier system level including village level, district level
and state level, which comprises 6,474 milk producers working at the three-tier levels.
(IMARC Services Private Limited., 2022)The Punjab State Co- operative Milk Producers
Limited also known as Milk Fed was established in the year 1973 with two main purposes:1)
to provide qualitative milk to their consumers at reasonable prices and 2) for the better
economic development of the milk producers' various activities carried out such as to hike up
milk production, procurement and processing of milk so milk producers will receive enough
prices for their milk. (The
Punjab State Cooperative Milk Producer's Federation Ltd., 2022)
REVIEW OF LITERATURE
The present review of literature is based on the study conducted in the research area of the
dairy industry in India.
(Santhosa, Gaddi, & Gracy, 2020), analyzed the physical and financial performance of the
Shivamogga dairy unit from the period 2008-09 to 2017-18 with the help of selected financial
ratios. The result was found that there was a positive annual compound growth rate (CAGR)
and current ratio was greater than 2 and quick ratio was greater than 0.95 and the inventory
turnover ratio was 39.93. These results suggested that the union working at its satisfactory
level and the gross profit ratio and net profit ratio were earned at their satisfactory level.
(Bhandari, 2020),examined the main implications of the COVID-19 predicament on a firmly
consolidated dairy supply chain. From the study, it was concluded that dairy farmers have
borne heavy losses due to the impracticability of entirely adjusting supply to demand. Dairy
farmers, as well as dairy processors, have done hard work the minimize the losses during
lockdown by accepting the different master plans. They have converted liquid milk into long-
lasting dairy products such as ghee, curd, and paneer. They have also provided dairy products
as soon as possible to the doorsteps of the consumers. It was suggested to take special measures
for the unavailability of cattle feed and fodder which may have adversely affected the cost of
production.
(Bhagyalakshmi, 2020), conferred on the problems of the Indian dairy sector and also
explored problems by the ‘SWOT’ analysis and Porter Five Force Model’. From the study, it
was observed that India’s milk production capacity was higher than other nations but per
capita, milk manufacturing capacity was less than other nations. Indian milky animals’
production capacity was too low so the cost of milk in India was very high. It was also seen in
the study that Indian farmers do have not proper information about the health of their milky
animals and related to their vaccination. A very big problem faced by the Indian dairy sector
was not only the proper supply chain but also, they brought up their animals by ancient methods
so fruitful results were not achieved.
(Bose, 2018),inspected the outcomes of microfinance on the dairy industry for reducing
poverty in India. The primary data was examined by interviewing 150 members of the Kerala
district and secondary data was also used for the study. The data was collected in the context
of savings and expenditure relation, debt, assets and income. It was concluded that
microfinance contributed to the area of income, education, and progress of farmers and it was
also helpful for the farmers in the field of decreasing poverty, upgrading their income, and
increasing their living standard.
Research Gap
In India, various types of studies are being conducted such as physical and financial
performance, comparative financial health analysis, financial leverage and financial
performance, capital structure and financial performance and business performance etc. Thus,
various research work took place to examine the financial performance analysis of dairy co-
operatives in India and outside India but the researcher could not trace any study on the
comparative financial performance analysis for the dairy cooperatives in the state of Punjab.
Taking this as a research gap, the study has been undertaken to analyze and compare the
financial performance of selected dairy units from 2010-11 to 2020-21. The majority of the
past studies employed the financial health model Altman’s Z score. We did not come across
any literature that includes other financial health scores so taking it as a research gap, an
attempt was made to analyze the financial health of Punjab dairy units using two selected
financial health models, the Springate score model and the Zmijewski score model.
There are eleven cooperative dairy units registered in Punjab state, out of which the
researcher has selected five dairy units based on a convenient random sampling method. The
selected dairy units are Bathinda, Patiala, Gurdaspur, Ludhiana and Sangrur. This study is
based on secondary data which were drawn from the published annual reports for eleven years
2010-11 to 2020-21. The data is then analyzed using two financial health scores; Springate and
Zmijewski scores. Problem Statement
‘Comparison of Dairy Units of Punjab using various Financial Health Indicators’.
Significance of the study
The Indian economy mainly depends on Agricultural and Animal Husbandry and it is also dependent
on cooperatives' dairy units. The dairy sector has played an important role in the development of the
Indian economy. This study may assist in understanding the financial health of selected five dairy
units in Punjab. The study is also helpful for the dairy authorities andthe Government of India to
formalize polices and willtake proper steps for strengthen the financial health of the selected dairy
units in Punjab.
Objectives of the study
1. To examine the financial performance of the district milk producers’ unions of Punjab
using Springate and Zmijewski score models.
2. To compare the overall financial performance of selected dairy units of Punjab.
Research Design and Sampling Techniques
A descriptive research design has been selected to analyze the financial health of dairy units
in Punjab. Out of 11 dairy units in Punjab, five dairy units were selected based on a convenient
sampling method. The selected dairy units are as follows:
Dairy Units of Punjab
1. Bathinda District Co-operative Milk Producers’ Union Ltd., Bathinda.
2. Patiala District Co-operative Milk Producers’ Union Ltd., Patiala.
3. Gurdaspur District Co-operative Milk Producers’ Union Ltd., Gurdaspur.

4. Sangrur District Co-operative Milk Producers’ Union Ltd., Sangrur.
5. Ludhiana District Co-operative Milk Producers’ Union Ltd., Ludhiana.
Tools and Techniques used
For the present study, data has been analyzed by the use of two selected financial health
models.
1. SpringateScore Model
2. Zmijewski Score Model
Springate Score Model
In the year 1978, Springate formulated a bankruptcy prediction model in which a

Multiple Discriminant Analysis (MDA) method was used. Four financial ratios were used from
a total of nineteen financial ratios. The Springate method according to (Primasari, 2017) can
be computed with the following formula:
S=1.03× A+3.07× B+ 0.66×C + 0.4×D
In this score, four financial ratios are used such as working capital to total assets×100
(A), earnings before interest and tax to total assets×100 (B), profit before tax to current
liabilities×100 (C), and revenue to total assets×100 (D). (Putri, Badri, Pranyoto, Susanti, &
Lestari, 2020)
If the S- score is greater than 0.862, the dairy unit is predicted to be a potentially healthy
unit. If the S- score is less than 0.862, the results indicate that the dairy unit is predicted to
experience bankruptcy.(Putri, Badri, Pranyoto, Susanti, & Lestari, 2020)
Zmijewski Model
The Zmijewski model was created by Zmijewski in 1984. In this model, ratios are used
such as net income to total assets (X1), total liabilities to total assets (X2), and current
assets to current liabilities. The formula used to examine the ‘Zmijewski’ scores:
-4.3- 4.5×(X1) + 5.7×(X2) - 0.004× (X3)
In this model, if X score is greater than 0 the dairy unit is not predicted to go into bankruptcy
and if X score is less than 0 the dairy unit is likely to go into bankruptcy.
RESULTS AND DISCUSSION
Table no 1, examined the financial health of the Bathinda dairy unit. The highest
springate score was 3.57 was observed in the year 2012-13 which indicated that the unit was
in a stable condition in the year 2012-13 as working capital and revenue against total assets
were in improved condition. The lowest spring score was 0.19 in the year 2010-11.In the year
i.e. 2012-13 and 2020-21 the springate score was greater than 0.862 and in the remaining years,
it was in the distress zone which predicts the Bathinda dairy unit will go to bankruptcy in near
future.
Table no 2, displayed the financial health of the Patiala dairy unit. It was observed that
in the eleven years study in 2010-11, 2017-18 and 2018-19, the springate score was lower than
0.862 i.e. 0.75,0.49 and 0.44 so in these years dairy unit was under distress zone because EBIT
to total assets and profit before tax to current liabilities is in negative in these years. During
the year 2018-19, the working capital is negative. Patiala dairy unit's highest springate score
was 17.68 which indicates the financial health was stable in the year 2016-17.
Table no 3, analyzed the financial health of the Gurdaspur dairy unit the highest
springatescore was 1.58 observed in 2012-13 which indicated that the unit was in a stable
condition in the year 2012-13.During the study period, it was observed that the springate score
was less than 0.862 in the year 2010-11which was 0.57, 0.34 in the year 2017-18, 0.28 in the
year 2018-19 and 0.71 in the year 2020-21. It was found that in the year 2010-11, the EBIT to
total assets and profit before tax to current liabilities was not in improved condition. It was
found that in the year 2018-19, the working capital against total assets was negative so in
thisfour-year study period the Gurdaspur dairy unit was in the distress zone.
The above table no 4, demonstratesthe financial health of the Sangrur dairy unit. The
highest springate score was 1.79 was examined in 2010-11 which indicated that the unit was
in a stable condition in the year 2010-11. It was observed that in the study period, the Springate
score was less than 0.862 in 2012-13 and 2014-15 to 2019-20 and 202021 because working
capital to total assets was not in improved condition indicating the unit was in the distress zone.
The dairy unit is likely to experience bankruptcy in the near future as last sevenyears; the dairy
unit was inconstant distress.
Table no 5, examined the financial health of the Sangrur dairy unit. The springate score
was lower than 0.862 in the year 2011-12 i.e. 0.28 and in the year2017-18 i.e. 0.70 and in the
year 2018-19 i.e. 0.36. The highest springate score was 21.89 in the year 2015-
16. The highest springate score was 21.89 in the year 2015-16. Ludhiana dairy unit was
financially strong in seven years out of ten years because the Springate score was higher than
0.862. In the years 2011-12, 2017-18 and 2018-19, the Ludhiana dairy unit was in the distress
zone because the EBIT against total assets ratio was very low percent and working capital
against total assets was negative.
Table no 6, examined the financial health of the Bathinda dairy unit. Here it can be said
that the Bathinda dairy unit had the highest Zmijewski score i.e. 1.59 in the year 201112 and
the lowest score in the year 2019-20, i.e.-1.26. From the above table, it was examined that in

theeleven-year study period out of four years, i.e. 2010-11, 201718and 2018-19 and 2019-20
the Zmijewski score was lower than 0. The Zmijewski scores in these four years i.e. -0.08,-
0.92, -1.15 and -1.26 respectively because in the year 2010-11 and 2018-19, current assets to
current liabilities ratio was low. In the year 2017-18, the net income to total assets ratio is
negative so in these four years, the Bathinda dairy unit was in the distress zone.
Table no 7, examined the financial health of the Patiala dairy unit. Theimproved financial
health of the Patiala dairy unit was only observed in two years 2017-18 & 2018-19 having
scoresof 0.59 and 0.49 which indicated that the unit was stable inthese two years but the unit
struggled from 2010-2011 to 2016-17 and 2019-20 which is a huge red flag for the unit as the
score predicted bankruptcy in near future.
Table no 8, examined the financial health of the Gurdaspur dairy unit.It was observed
during the entire study period from 2010-11 to 2019-20, that the Gurdaspur dairy unit financial
health was stable asZmijewskiscoredabove 0. The score predicts that the chances of the dairy
unit going bankrupt is very low.
Table no9,observed, the financial health of the Sangrur dairy unit. It was found in the
eleven years study period, seven years from 2010-11 to 2016-17, the financial health of the
Sangrur dairy unit was steady and in improved condition, as the score was above 0, but
following three years, i.e. from 2017-18 to 2019-20 the score was negative due to reduction in
the current assets. The dairy unit is required to improve its current assets to avoid bankruptcy
in the near future.
Table no 10,studies the financial health of the Ludhiana dairy unit. It was observed that
the dairy unit was struggling to maintain its financial health from the years 2010- 11 to 2019-
20, except in the years 2010-11, 2016-17 and 2020-21 the score was greater than 0.
Table11, demonstrates an average of the financial health of selected five dairy units of
Punjab on the basis of the Springatemodel and Zmijewski models. The Springate score model
suggests that out of five dairy units, the three dairy units Patiala, Gurdaspur and Ludhiana
scored more than the standard score while the Bathinda and Sangrur dairy units scored less
than the standard score.As per theZmijewski score model, among the five dairy units of Punjab,
it was concluded that the Bathinda, Patiala, Sangrurand Ludhiana dairy units' financialhealth
was in the distressed zone because the averages of Zmijewski score of these dairy units was
less than 0 and Gurdaspur dairy unit financial health was good.
FINDINGS OF THE STUDY
• It was found during the study period, that the average springate score of the Bathinda
dairy unit was 0.78 while the Sangrur dairy unit score was -4.62 which indicated that as
per the springate score, both these two dairy units were in financial distress zone.
• According to the Zmijewski model, the Bathinda, Sangrur and Ludhiana dairy units are
in under financial distress zone because the score was less than 0 in these three dairy
units. The Patiala dairy unit score was in a negative mode.
SUGGESTIONS FOR THE STUDY
• Bathinda, Patiala, Gurdaspur, Sangrur and Ludhiana dairy units should use their funds
to maintain current assets and current liabilities so that ultimately their working capital
is utilized in the proper manner to meet the short-term and long- term obligations. The
dairy units should invest their funds in the current assets to fulfill the needs of the current
liabilities of their business operations.
• The Patiala and Sangrur dairy units should plan for increasing sales implement proper
distribution channels, and effectively utilization of their working capital and in that way,
profit gained by the dairy unit should increase their total assets
• for the maximum generation of their sales. Increased sales will ultimately increase the
profit of the dairy unit.
CONCLUSIONS
Every associate contributor of any business unit must be aware of the financial health of
an organization. Financial health plays a crucial role in the development of the business unit.
A financially sound unit can run its business operations in the long run. The present study is
carried out with an aim to know the financial health of selected Punjab dairy units with the
help ofthe Springate and Zmijewski score models. The study examined that as per the models,
the Bathinda and the Sangrur dairy units were not financially healthy so proper steps should
be taken to improve the financial health of the dairy units.
LIMITATION OF THE STUDY
• The data taken for the study was based on the annually published reports of the selected
dairy cooperatives.
• The study is based on only two health models out of various others.
• The study was limited to a period of eleven years.

FURTHER SCOPE OF THE STUDY
• This study observed selected ten samples so more samples can be taken for further study.
• For future research, various dairy units can be selected as per the geographical zone for
the advancement of the study.
• The study has covered the financial performance of the dairy units from the year 2010-
11 to 2019-20 so, the researcher can study for further years.
REFERENCES
(n.d.). Retrieved May 15, 2022, from imarcgroup: https://www.imarcgroup.com/dairy-

industry- punjab
(n.d.). Retrieved May 22, 2022, from trading view:

https://www.tradingview.com/support/solutions/43000597848-springate-score/
SR Publications. (2022, May 2). Milk production In India reaches 210 MMT in 2021-22.
Retrieved July 5, 2022, from SR Publications: https://www.srpublication.com/milk-
productionin-india- reaches-210-mmt-in-2021-
22/#:~:text=According%20to%20data%20from%20Food,percent%20of%20the%20global
%20output
(2010-11 to 2019-20). Annual report of Bathinda Co- operative Milk Producers Union Ltd.
Bathinda: Bathinda Dairy Unit.
(2010-11 to 2019-20). Annual report of Gurdaspur Co-operative Milk Producers Union Ltd.
Gurdaspur: Gurdaspur Dairy Unit.
(2010-11 to 2019-20). Annual report of Ludhiana Dairy Co-operative Milk Producers Union Ltd.
Ludhiana: Ludhiana Dairy Unit.
(2010-11 to 2019-20). Annual report of Sangrur Co-operative Milk Producers Union Ltd. Sangrur
Dairy Unit.
Bhagyalakshmi, M. (2020, APRIL). A STUDY ON MAJOR ISSUES AND CHALLENGES
OF
DAIRY. Science, Technology And Development Journal, IX(IV), 7. Retrieved from
http://journalstd.com/gallery/20-april2020.pdf
Bhandari, G. (2020, May). Implications of COVID-19 for Indian Dairy. Division of Dairy

Economics, Statistics & Management. Karnal: Food and Scientific Report. Retrieved May
2021, from https://foodandscientificreports.com/
Bose, B. (2018). The effect of microfinance on dairy sector for uplifting backward sector in
Kerala.
International Journal of Commerce and Management Research, 5.
Dev, G. A. (2022, June 6). Dairy farming: Policy intervention needed to prop up farmers. (G. A.
Dev, Producer, & The Tribune) Retrieved July 7, 2022, from
https://www.tribuneindia.com:
https://www.tribuneindia.com/news/features/policyintervention-needed-to-prop-up-
farmers-401450
IMARC Services Private Limited. (2022). Dairy Industry in Punjab: Market Size, Growth, Prices,
Segments, Cooperatives, Private Dairies, Procurement and Distribution. (IMARC Services
Private Limited) Retrieved July 7, 2022, from imarc:
https://www.imarcgroup.com/dairy-industry-punjab
Invest India. (n.d.). Dairy Industry in India-Growth, FDI,Companies, Exports. Retrieved July
7, 2022, from Invest India National Investment Promotion and facilitation Agency:
https://www.investindia.gov.in/sector/food-processing/dairy
Khan, N., Fahad, S., Naushad, M., & Faisal, S. (2020, June 2). COVID-2019 Locked down
Impact on Dairy Industry in the World. Retrieved May
2021, from
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3616325
(2010-11 to 2019-20). Patiala Co-operative Milk Producers Union Ltd. Patiala: Patiala Dairy
Unit.
Primasari, N. S. (2017, July 28). Analisis Altman Z-Score, Grover Score, Springate,
danZmijewski sebagai Signaling Financial Distress. Accounting and Management
Journal, 1(1), 1-21.
PUNJAB NEWS EXPRESS. (2022, May 27). Harpal Singh Cheema hands over appointment
letters to 21 Senior Executive of Milkfed. Retrieved 07 22, 2022, from punjabnewsexpress:
https://www.punjabnewsexpress.com/punjab/news/harpal-singhcheema-hands-over-
appointment- letters-to-21-senior-executive-of-milkfed-167267
Putri, A. S., Badri, R. E., Pranyoto, P., Susanti, & Lestari, W. R. (2020, December 8). Predicting
Financial Distress; Springate, Zmijewski, and GroverMethod. Proceeding of 6th ICITB
2020 (pp. 1- 8). Indonesia: Institut Informatika dan Bisnis Darmajaya.
Santhosa, K. M., Gaddi, G. M., & Gracy, C. P. (2020, July 18). Physical and Financial
Performance Analysis of Shivamogga Milk Union Limited (SHIMUL). Asian Journal of
Agricultural Extension, Economics & Sociology, 38(7), 45-54.
doi:10.9734/ajaees/2020/v38i730374
The Punjab State Cooperative Milk Producer's Federation Ltd. (2022, April 15). THE PUNJAB
STATE COOPERATIVE MILK PRODUCERS FEDERATION LIMITED. Retrieved
July 7, 2022, from punjabcooperation.gov.in:
https://punjabcooperation.gov.in/html/milkfed

FINANCIAL OVERVIEW OF SELECT DEFENCE MANUFACTURING
COMPANIES: AN INTER-FIRM COMPARISON FROM INDIAN
PERSPECTIVE
Mr. Sougata Mondal*
Dr. Sanjib Mitra**
ABSTRACT
The study has been undertaken to show the liquidity position, profitability and financial health
of the major defence manufacturing companies as per the IBEF report published in February
2023. As India’s defence industry is becoming lucrative to the domestic as well as foreign
investors with a market size of 11.3 Billion USD, this study delivers its usefulness towards its
potential stakeholders.
Keywords: Defence companies, liquidity, profitability, financial health, India.
INTRODUCTION
Government of India (GOI) has pushed defence industry to be a part of the ‘Atmanirbhar
Bharat’ initiative to reduce the dependency on import of defence products and technologies and
be the self-reliant. It encourages research and development to build favourable infrastructure
facilities. The government has targeted to achieve the turnover of aerospace anddefence goods
and services of 25 Billion USD (including export of 5 Billion USD) by 2025. [1]For the first time
ever, the defence productions have touched the benchmark of one lakh crore in the financial
year 2022-23. [2] In India’s annual budget 2022-23, it was declared that twenty-five percent of
defence research and development budget must be devoted for private industry and start-ups.
This decision will lead to innovation of more defence technologies in India. [3] FDI in this sector
has grown up at 74% from 49% through automatic route. [4] Latest report published by IBEF in
February 2023 has revealed that six public sector units namely Bharat Earth Mover Ltd.
(BEML), Bharat Electronics Ltd. (BEL), Hindustan Aeronautics Ltd. (HAL),Mazagon Dock
Shipbuilders Ltd. (MDL), Bharat Dynamics Ltd. (BDL) and Garden Reach Shipbuilders &
Engineers Ltd. (GRSE) are the key players of defence manufacturing in India. A brief
description of these companies is enumerated below in Table 1: [5]
*UGC-JuniorResearch Fellow, Department of Commerce, University of Calcutta, Kolkata,

[email protected]
**Associate Professor, Department of Commerce, Sarsuna College,Kolkata,
[email protected]
Page 1 of 8
Table No 1:
PSU Formation Headquarter Key Defence Products Revenue
Name for F.Y
2021-22 (in
crores)
BEML 1964 Bangalore Multipurpose weapon loaders, ₹3556.64
Trolley to load aircraft weapons,
Aarmoured recovery and repair
vehicle, military rail coaches and
military wagons etc.
BDL 1970 Hyderabad Indigenous missiles (Prithvi, Agni, ₹2901
Akash, Konkurs-M, Invar etc.),
Heavy weight torpedoes and some
products such as Amogha-III,
CMDS Mk-II enabled with AI
feature are in research and
development stage.
BEL 1954 Bangalore Different kinds of radars (Weapon ₹ 15313
Locating Rader, Indian Doppler
Rader, Battel Field Surveillance
Rader etc.), C41 systems for Indian
Air Force, Akash missile,
electronic devices for tanks, Indian
Navy’s combat management
system etc.
GRSE 1884 Kolkata Naval vessels (guided-missile ₹1757.51
(Nationalised frigates, fleet tankers, corvettes,
in 1960) fast patrol vessels, hovercraft etc.),
recently an order is received for
manufacturing of 15 warships of
the Indian Navy by 2027-28.
124 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 Page 2 of 8
HAL 1940 Bangalore Fighter aircrafts (Tejas MK1, ₹ 24620
(Nationalised Tejas MK2, TEDBF etc.), trainer
in 1963) aircraft (HAL-26 Pushpak, HJT-36
Sitara etc.), helicopters (Rudra,
Dhruv etc.), RTOS for Indira
Gandhi Centre for Atomic
Research.
MDL 1934 Mumbai Various warships (Godavari-class ₹ 5733
(Nationalised frigate, Delhi-class destroyers,
in 1960) Shivalik-class frigates, Kolkata-
class destroyers etc.), Coast guard
vessels, Floating police stations,
Submarines (Shishumar-class
submarine, Kalvari-class
submarine etc.).
LITERATURE REVIEW
Das (2019) analysed the major aspects and fault lines existing in the defence industry of India.
He discussed the needs to achieve autonomy in the defence sector. Some recommendations and
suggestions were also provided by him to arrive at strategic autonomy in this sector.
Chibber & Dhawan (2013) identified the growth in inventories of defence sector from 2000
to 2011. It was also estimated that nearly 150 Billion USD would be spent on purchasing of
defence equipment by 2017. The study identified that India’s local defence industry could fulfil
domestic demand and support export demand also.
Jindal, Jain & Vartika (2017) analysed how the receivables management was impacted by
profitability of India’s commercial vehicle industry for the period 2009-2016. A significant
positive relationship between profitability and debtors-turnover ratio was found in this study.
Saleem & Rehman (2011) explored the relationship between liquidity and profitability of oil
and gas companies of Pakistan for the period of 2004 to 2009. The results had reveled that
financial position had been significantly impacted by each of the variables.

Page 3 of 8
◆ 125
Prasad & Rajput (2021) forecasted monetary distress using Altman Z score of four Indian IT
companies for the period 2015-2016 to 2017-2018. The results indicated that Wipro faced
financial distress during the 2017-2018 only.
Research Gap
From the above review of literatures it is observed that hardly any comparativestudy has
been conducted so far analysing the financial performance and financial health of the major
defence manufacturing companies in India. Present study is a humble attempt to fill thisgap.
OBJECTIVES
➢ To investigate and review the liquidity, profitability and financial health of the selected
defence manufacturing companies in India.
➢ To identify the company, that is most efficient in terms of the above parameters.
LIMITATIONS
➢ The study concentrated only on six defence manufacturing companies in India with a
limited study period from 2013 to 2022.
The study focuses on financial overview of defense manufacturing companies in India

which is based on secondary data collated from Capitaline database. [6] The study period is from
2012-13 to 2021-22. Relevant data have been analysed with the help of proper charts and tables
usingMS Excel. To examine the liquidity, current ratio (CR) is taken as a proxy (Saleem &
Rehman, 2011), Return-on-Capital-Employed (ROCE) is used to measure the profitability
(Jindal, Jain, & Vartika, 2017) and Altman Z score is considered as to show the monetary
distress risks (Prasad & Rajput, 2021) for measuring financial health of the companies.
ANALYSIS AND INTERPRETATION
Collected data have been examined and explained as below:
126 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 Page 4 of 8
CHART 1
CURRENT RATIO

Ϯ͘ϱ
ϭ͘ϱ
Ϭ͘ϱ

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
BEML Ltd Bharat Dynamics Bharat Electron
Garden Reach Sh. Hind.Aeronautics Mazagon Dock
Authors’ own calculation
Sufficient liquidity ensures a company to meet up its short-term obligations whereas

excessiveliquidity can cause reduction of profit also. If CR remains 1 time or more, it ensures
that the company can meet its short-term obligations with the help of current assets. Chart 1
depicts theCR of the companies during the study period of ten years. It shows that BEML is
the only company which enjoyed a higher liquidity position (CR 2 times or more) compared to
others during these periods. On the other hand, BDL, BEL, HAL and MDL also had a good
liquidityposition (CR being more than 1 throughout the period). Only GRSE faced liquidity
crisis (CRless than 1) in 2016-17 to 2018-19, 2020-21 and 2021-22.
CHART 2
ROCE
Ϭ͘ϱ

Ϭ͘ϰ

Ϭ͘ϯ

Ϭ͘Ϯ

Ϭ͘ϭ

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
BEML Ltd Bharat Dynamics Bharat Electron
Garden Reach Sh. Hind.Aeronautics Mazagon Dock
ROCE is used to show the overall profitability of the companies. Higher ROCE reflects
that company is enjoying more profitability. Chart 2 shows ROCE of the companies during
the
Page 5 of 8
study period of ten years. BDL is more profitable compared to others during most of the years
under study. BEML, which is highly liquid also remains less profitable (ROCE less than 10%)
throughout the period. In the years 2014-15 and 2016-17 only, GRSE earns a ROCE less than
10% whereas other companies earn more than 10% ROCE during all-over the period.
TABLE 2
Altman Z Score
COMPANY
NAME 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
BEML
2.63 2.92 3.06 3.25 3.29 3.59 3.68 2.90 2.87 3.13
BDL
54.11 152.76 7.50 12.85 26.28 5.02 4.33 3.71 2.95 3.40
BEL
5.09 5.12 5.10 3.90 3.91 3.79 4.03 3.78 3.85 3.74
GRSE
20.55 21.18 33.95 36.91 13.87 2.98 4.41 4.42 2.61 3.30
HAL
2.82 3.08 2.80 2.69 2.70 2.92 2.87 2.91 3.21 3.08
MDL
6.07 6.71 7.22 4.10 3.64 3.29 3.24 3.29 3.12 3.70
Altman Z score measures the risk of financial distress of a company. The score of 2.99
and above implies ‘safe zone’, when the score is higher than 1.81 but less than 2.99 it is
consideredas ‘grey zone’ and the score less than 1.81 is marked as ‘distress zone’ (Altman,
1968). From table 2, it can be interpreted that BEL and MDL are staying in the ‘safe zone’ during
the wholeperiod of study. BEML has enjoyed safe position in 2014-15, 2019-20 and 2020-21
while in rest of the years the company is in the ‘grey zone’. BDL, on the other hand, faces ‘grey
zone’ only in the year 2020-21 but during the rest of the period it enjoys safe position. GRSE
has faced the grey area only in the years 2017-18 and 2020-21. Again, HAL stays in the safe
area only in the years 2013-14, 2020-21, 2021-22 and grey area for rest of the period.
TABLE No 3:AVERAGE RESULTS
COMPANY AVERAGE AVERAGE AVERAGE RISK OF

NAME LIQUIDITY PROFITABILITY FINANCIAL DISTRESS
VALUES RANK VALUES RANK VALUES RANK
BEML 2.25 I 0.04 VI 3.13 V
BDL 1.46 III 0.28 I 27.29 I
BEL 1.66 II 0.22 III 4.23 IV

Page 6 of 8
GRSE 1.01 VI 0.17 IV 14.42 II
HAL 1.40 IV 0.15 V 2.91 VI
MDL 1.12 V 0.23 II 4.44 III
Table 3 shows the average liquidity, profitability and financial distress risk of the
selected companies. In terms of liquidity BEML is in the most favourable position with an
average valueof 2.25 followed by BEL, BDL, HAL, MDL and GRSE. Considering the average
profitability,it can be stated that BDL is more profitable company compared to the others and
BEML comesat the last position. On the other hand, the most profitable company BDL also
enjoys least average risk of financial distress as it has the higher average z score compared to
others and HAL is the only company which stays in grey area as it has average z score value
higher than 1.81 but lower than 2.99.
Thus, out of the six defence companies it has been identified that in terms of overall
liquidity,profitability and risk of financial distress, BDL is the most efficient one, followed by
BEL, BEML, GRSE, MDL and HAL.
CONCLUSION
Near about 80% of India’s defence industry is owned by the Government of India. In
2021-22,2.1% of GDP had been spent on defence. With a market size of 11.3 Billion USD, the
industryhas become more lucrative to investors. In this study the liquidity position, profitability
position and risk of financial distress situation of the top six government-owned defence
manufacturingcompanies have been evaluated. It has been found that liquidity position of BEML
is favourablethan others, whereas in terms of profitability measure and low financial distress
risk BDL is performing well compared to others. On the other hand, least liquid company is
GRSE, lower profitable company is BEML and HAL is facing high risk of financial distress.
Finally, it has been observed that BDL is the most efficient company and HAL is the least
efficient companycompared to others in terms of the parameters taken together. Thus, this study
delivers its usefulness towards potential stakeholders of this industry.
References:
Altman, E. I. (1968). Financial Ratios, Discriminant Analysis and the Prediction of

Corporate Bankruptcy.American Finance Association, 23, 589-609.

Page 7 of 8
Chhibber, B., & Dhawan, R. (2013). A Bright Future for India's Defence Industry? McKinsey
on Government, Spring 2013, 44-55.
Das, S. P. (2019). An Overview of Indian Defence Industry: A Transformative Perspective.

CLAWS Journal, 123- 137.
Indian Brand Equity Foundation (2023, February). DEFENCE MANUFACTURING accessed

from https://www.ibef.org/industry/defence-manufacturing
Jindal, D., Jain, S., & Vartika. (2017). Effect of Receivables Management on Profitability: A
Study of Commercial Vehicle Industry in India. International Journal of Applied Sciences
and Management, 2(2), 246-255.
Prasad, G., & Rajput, A. (2021). Indian IT Companies Path Forwards (Using Altman Z Score).
Indian Journal of Accounting (IJA), 53(2)(December, 2021), 106-117.
Saleem, Q., & Rehman, R. U. (2011). Impacts of liquidity ratios on profitability (Case of oil
and gas companies of Pakistan). Interdisciplinary Journal of Research in Business, 1(7),
95-98.
Page 8 of 8
CARBON DISCLOSURE PRACTICES: A BIBLIOMETRIC ANALYSIS
Ms. Prabhuti Rathore*

Dr.
Dr.aGG.
Soral
Soral**
ABSTRACT
An increasing interest in Carbon Disclosure study has been generated in recent years as a result of
the phenomenon of climate change and its effects on the worldwide market. This study's goal is to
conduct a bibliometric examination of prior research. We looked at research papers that used the
keywords "Carbon Disclosure" and "Carbon Accounting Disclosure" and were available on the
Dimensions Database. The current study makes use of VOSviewer software. Le Luo was
discovered to be the author with the most influence, receiving 1802 citations. The most active
contributor is Western Sydney University, Australia, with 30 articles and 1852 citations. The most
active contributor is Western Sydney University, Australia, with 30 articles and 1852 citations.
With 3958 citations, the USA is the most influential nation, followed by Australia (3328 citations).
Business Strategy is ranked second with 33 publications, while SSRN Electronic Journal is first
with 104 publications and 585 citations. Finally, it was discovered that between 2018 to 2022, the
number of researchers studying carbon disclosure dramatically rose.
*(Senior Research Fellow), Department of Accountancy and Business Statistics Mohanlal Sukhadia
University, Udaipur
**(Former Professor), Department of Accountancy and Business Statistics Mohanlal Sukhadia
University, Udaipur

Introduction
The whole world is facing a problem of Global Warming, changing climate and ecological
preservation. The United Nations developed the Intergovernmental Panel on Climate Change
(IPCC) in response to rising gas emissions, and the Kyoto Protocol, which had been signed by at
least 55 nations, was published at an international conference as a means of stabilising the
concentration of greenhouse gases. Emission Trading (ET), the Clean Development Mechanism
(CDM), and Joint Implementation(JI) are the three instruments used to carry out the Kyoto
Protocol . Renewal of the 1997 Kyoto Protocol was agreed upon at the 21st Conference of Parties
(COP) with the Paris Agreement, which demonstrates the countries' commitment to keep the
earth's temperature increase below 2°C. In response to curb this problem and control carbon
emissions, Kyoto Protocol under United Nations Framework Convention on Climate Change was
adopted and from here carbon trading and carbon emission allowances came into picture. Absolute
gas emission production in Indonesia equals 1.2% of global emissions, placing Indonesia in the
21st position globally. (Saraswati, 2020)
Figure No 1: Annual Co2 Emissions from Fossil Fuels and Industry in world
Source: https://ourworldindata.org
Ϯ

Because it is now a valuable commodity, carbon credit must be financially accounted for at
various stages (i.e. when received for free, when purchased, when used, when sold & when
surrendered). Firms require instructions on how to account for carbon at each phase because the
setting is voluntary and there is no standard accounting practice. Organizations must understand
how carbon accounting and disclosure function, which firm-specific factors define the disclosure
method, and how disclosure is generated and improved over time in order to highlight climate risks
and opportunities. (Borghei, 2021) Additionally, it will improve the preparation of financial
statements and their comparability for use in decision-making by accountants, auditors, financial
report preparers, investors, and other stakeholders. The significance of revealing carbon emissions
is anticipated to encourage businesses to be more open about environmental data so that
stakeholders may gauge how seriously they take climate change. (Ernst & Young, 2011)
Due to the lack of clear advice on financial accounting for carbon, companies affected by
emission trading systems or companies that produce carbon offsets are not required to disclose
carbon information in a consistent manner. Therefore, the disclosure setting is optional. Guidelines
are lacking, which results in inconsistent carbon financial accounting and opaque carbon disclosure
procedures. This makes it difficult for investors and stakeholders to compare financial accounts
and make educated decisions.
Various researches have been conducted in order to study the scope and effects of carbon
disclosure practices. (Bazhair et al., 2022) assessed the literature that is currently accessible on
corporate carbon reporting by evaluating the themes that have been covered in the field, current
research trends, and theoretical viewpoints. (Choi et al., 2013) intended to disclose the extent of
the voluntary disclosures of the disclosure of the disclosure of the major major Australian majors,
from between 2006 to 2008 majors. (Borghei, 2021) tries to address the current expansion and
fragmentation of the carbon disclosure literature by identifying significant study areas and
upcoming research trends. (Saraswati, 2020) done systematic literature review of 17 articles to
support Sustainable Development Goals for reducing carbon emission We set out to conduct a
bibliometric study of prior studies in order to determine the trends in the literature that is currently
accessible on carbon disclosure procedures. The purpose of the study was to learn how scientists
are investigating the subject of carbon disclosure. To understand the current state of the existing
literature, we made an effort to identify the most productive author, organisation, nation, and
journal in the relevant topic. The present study has been divided in three parts i.e. Introduction of
ϯ

the topic, the research Methodology for defining the research layout and lastly the Analysis and
Findings
Research Gap
As we previously indicated, the topic of corporate carbon disclosure has grown in
importance, and researchers are expressing a keen interest in it. Many studies have been done to
examine the reasons for and limitations of voluntary disclosures, as well as the voluntary carbon
declarations made by businesses or the systematic review of literature has been done of limited
research studies. We aim to carry out a bibliometric analysis to provide an overview of the literature
that is currently available in this area.
Objectives of Study
Following are the objectives of the study:
1. To identify the most significant author on the basis of citations.
2. To identify the organisation with highest number of publications.
3. To identify the most productive nation on the basis of citations.
4. To identify the most productive journal on the basis of number of publications.

Research Questions
Following research questions have been formed to help in bibliometric analysis:
RQ1: According to the total amount of citations, which researcher is the most significant?
RQ2. Which organisation has produced the most publications overall?
RQ3: Based on the total number of citations, which nation is the most productive?
RQ4: According to the volume of publications in each journal, which journals are the most
productive?
RQ5: How have studies on carbon disclosure changed over time, as evidenced by the number of
publications from one year to the next?
ϰ

Data collection
Data from the dimension database was gathered. VOSviewer is a piece of software that
allows academics to conduct bibliometric analysis in addition to offering many other features
including data mining and graphical presentation.
We searched for the information using the terms "Carbon Disclosure" and "Carbon
Accounting Disclosure." After removal of duplicate papers, 786 articles were included which were
taken into account for this bibliometric analysis.
Analysis and Findings:

Research Question 1: According to the total amount of citations, which researcher is the most
significant?
Table No 1: Most Cited Authors

S.NO. AUTHOR CITATION TOTAL
PUBLICATION
1. Le Luo 1802 24
2. Qingliang Tang 1780 27
3. Michael W. Toffell 700 03
4. Elizabeth Stanny 477 04
5. Frank Schiemann 362 05
6. Dennis M. Pattern 222 04
7. Kuo Lopin 218 03
8. Abeer Hassan 201 09
The top researchers are listed in Table 1 together with the number of citations they have
received. The most cited researcher is Le Luo, who has 1802 citations. 2015 saw the publication
of a paper by Le Luo and two other writers, Lin Liang and Qingliang Tang, titled "Gender
Diversity, Board Independence, Environmental Committee, and Greenhouse Gas Disclosures."
The maximum number of citations for this publication was 638. Le Luo is a senior lecturer and
academic researcher at Macquaire University's Department of Accounting and Corporate
Governance. Transparency, CSR, carbon accounting, corporate governance, and greenhouse gases
ϱ

are some of his research interests. The H-index for her is 17. Qingliang Tang holds to the second
spot. He presently holds the position of Accounting Professor at Western Sydney University.
International accounting, carbon accounting, and management have been his areas interest in
research. He has 5025 citations overall, and his H-Index is 31. The two of his of works that have
received the most citations in this area are "Corporate Incentives to Disclose Carbon Information:
Evidence from CDP Global 500 Report" and "Gender Diversity, Board Independence,
Environmental Committee & Greenhouse Gas Disclosure." The third most influential author is
Michael W. Toffell followed by Elizabeth Stanny at fourth position.
Figure No 2: Bibliometric analysis of Authors on the basis of citations
Research Question 2. Which organisation has produced the most publications overall?
Table No 2: Most Productive Organisation

S.NO. ORGANISATION DOCUMENTS CITATIONS COUNTRY
1 Western Sydney University 30 1852 Australia
2. Macquaire University 15 192 Australia
3. University of New Castle Australia 09 384 Australia
4. Universtat Hamburg 08 386 Germany
ϲ

5. University of South Australia 07 405 Australia
6. Standford University 07 86 California
7. University of Otago 06 215 New Zealand
8. Swinburne University of 06 155 Australia
Technology
Table 2 lists the institutions with the highest productivity. The most prolific institution is
Western Sydney University of Australia, which has 30 publications and 1852 citations. Table 2
ranks Macquaire University second with 15 publications and 192 citations. With 9 publications
and 384 citations, University of New Castle Australia takes third place. The majority of the
studies—5—are conducted in Australia, followed by 2 in New Zealand, 1 in Germany, 1 in
California, and 1 in the United Kingdom (Table 2). Therefore, it may be said that Australian
institutions have made the biggest contributions to carbon disclosure practises. It is important to
note that the two most prominent authors in Table 1, Le Luo and Qinglang Tang, are professors at
Macquaire University and Western Sydney University, respectively.
Figure No 3: Bibliometric analysis of Organisations on the basis of Publications
ϳ

S.NO. COUNTRY CITATIONS
1. United States 3958
2. Australia 3914
3. United Kingdom 1901
4. China 1113
5. Netherlands 746
6. Germany 702
7. Canada 690
8. New Zealand 486
Research Questions 3: Based on the total amount of citations, which nation is the most
productive?
Table 3: Most Cited Countries
With 3958 citations, the United States has the highest level of influence. Australia is second
with 3914 citations. With 190 citations, the United Kingdom is third. In this field, other nations
like China, the Netherlands, Germany, Canada, and New Zealand have also made significant
contributions. It is clear that the USA, Australia, and the UK have made the biggest contributions
to the carbon disclosure sector.
Figure No 3: Bibliometric Analysis of Most Cited Countries
ϴ

Research Question 4: According to the volume of publications in each journal, which
journals are the most productive?
S.NO. JOURNAL PUBLICATION CITATION

1. SSRN Electronic Journal 104 585
2. Business Strategy & the Environment 33 1542
3. Sustainability 32 210
4. Social & Environmental Accountability 12 122
Journal
5. Environmental Science & Pollution 12 95
Research
6. Sustainability Accounting Management 11 197
and Policy Journal
7 International Journal of Environmental 11 72
Research and Public Health
8. Corporate Social Responsibility and 10 820
Environmental Management
Leading the pack with 104 publications and 585 citations, SSRN Electronic Journal secures
the first spot. This journal's H-index is 129 and its impact factor is 1. "With 33 publications,
Business Strategy and the Environment was ranked in second place. This journal's current impact
factor is 10.811. The Journal is listed in the UGC CARE, SCOPUS, and Web of Science indexes
(SSCI). The third-placed Sustainability Journal had 32 publications. The Journal is listed in the
UGC CARE, Scopus, Web of Science, and DOAJ indexes. Journal has a 3.889 Impact Factor.
Other noteworthy journals include the International Journal of Environmental Research & Public
Health, the Social & Environmental Accountability Journal, Environmental Science & Pollution
Research, Sustainability Journal and Accounting, Management & Policy Journal, Corporate Social
Responsibility and Environment Management, Accounting Research Journal and lastly Meditari
Accounting Research.
ϵ

Figure No 4: Bibliometric analysis of Journals on the basis of Publications
Research Question 5: How have studies on carbon disclosure changed over time, as
evidenced by the number of publications from one year to the next?
Table No 5: Number of Publications in last 10 years

Year Number of Publications
2022 154
2021 135
2020 87
2019 62
2018 40
2017 49
2016 34
2015 37
2014 37
2013 36
2012 22
Figure shows that there have been more publications on carbon disclosures over time. Only 40
academic publications were published in 2018; in 2019, 62 articles were published. This number
ϭϬ

increased to 87 academic articles in 2020. From 2018 to 2022, there is a noticeable increase of
214.3% in the number of publications in the topic of carbon disclosure. The conclusion is that
academics are expressing interest in carbon disclosure procedures. As climate change has emerged
as a pressing issue that requires rapid attention, carbon disclosure and accounting have gained
attention.
Figure No 6: Graph depicting the number of Publications per year
EŽ͘KĨŽĐƵŵĞŶƚƐ
ϮϬϬ
ϭϱϬ
ϭϬϬ
EŽ͘KĨ
ϱϬ ŽĐƵŵĞŶƚƐ
Ϭ
ϮϬϮϮ
ϮϬϮϭ
ϮϬϮϬ
ϮϬϭϵ
ϮϬϭϴ
ϮϬϭϳ
ϮϬϭϲ
ϮϬϭϱ
ϮϬϭϰ
ϮϬϭϯ
ϮϬϭϮ
Conclusion
The idea of disclosure in the context of global environmental governance has changed since
it was first introduced. Carbon Disclosure has caused an organisational field where organisations
undertake tasks that are partially complementary and partially overlapping to emerge.
Businesses must track and report information about their environmental performance and effects
so that investors can judge its significance for “Company’s Future”. This is known as “Carbon
Disclosure”.
Investors now support climate related disclosures because they recognise that in order to
make informed investments decisions, they need reliable information about climate risks, and that
climate can pose significant financial risks to businesses.
Academicians and researchers are examining the approaches taken by businesses for their
voluntary carbon disclosures, the transparency of these disclosures, the elements that affect their
veracity and the problems associates with these disclosures. Accounting academicians have
performed research to go deeply into this area and attempt to uncover the benefits and drawbacks
of carbon disclosure policies and well as how they would impact the accounting industry.
ϭϭ

We sought to conduct a bibliometric study on prior research studies because these studies
are accelerating and becoming more numerous every year. The analysis of this study will provide
a summary of the literature produced by different scholars in this subject.
Six research questions were formed to find the most significant researcher, most productive
nation, most frequently used keywords, most productive organisation and the trend of publications
over years. Dimensions database and VOSviewer software were used to analyse these questions.
It was found that Le Luo is the most prominent author. He is a senior lecturer and academic
researcher at Macquaire University in Australia in the Department of Accounting and Corporate
Governance. Qingliang was placed second. He is presently an accounting professor at Western
Sydney University, Australia. Western Sydney University in Australia emerged as the most
productive organisation with 30 papers published. With 15 publication Macquaire University in
Australia came in second. On the basis of citations, the United states had the highest influence with
3958 citations followed by Australia 3914 citations. SSRN Journal leads the table with highest
number of published articles (104 articles) followed by Business Strategy and Environment in
second place with 33 publications. An increasing growth rate of 214.3% can be seen in the number
of publications from year 2018 to 2022. This suggests that more academics and scholars are
becoming interested in this subject. Accounting researchers are attempting to expose the current
disclosure methods and the problems associated with them. This study will be useful to future
researchers because it identifies the most productive authors, nations, organisations, and journals.
This will enable them to concentrate entirely on producing high-quality work. Researchers who
want to review papers can find high-quality papers by doing a direct search for the most prolific
journals and authors from our analysis.
This research study has a disadvantage that we only used data from one database, the
Dimensions Database. Data can also be retrieved from other databases, such as Scopus and Web
of Science. These two are regarded as the two biggest databases in the world. Research that
incorporates information from these databases can produce more precise results.
ϭϮ

References
Bazhair, A. H., Khatib, S. F., & Amosh, H. A. (2022). Taking Stock of Carbon Disclosure
Research While Looking to the Future: A Systematic Literature Review. Sustainaibility
.
Borghei, Z. (2021). Carbon disclosure: a systematic literature review. Accounting & Finance , 1-
26.
Choi, B. B., Lee, D., & Psaros, J. (2013). An analysis of Australian company carbon emission
disclosures. Pacific Accounting Review , 58-79.
Das, C., & Jharkharia, S. (2018). Low Carbon Supply Chain: a state of the art literature review.
Journal of Manufacturing Technology mangaement .
Giannarakis, G., Konteos, G., Sariannidis, N., & Chaitidis, G. (2017). The relation between
voluntary carbon disclosure and environmental performance: The case of s&p 500.
International Journal of Law & Management, 59(6). doi: 10.1108/IJLMA-05-2016-0049
Grauel, J., & Gotthardtt, D. (2017). Carbon disclosure, freedom and democracy. Social
Responsibilty Journal, 13(7). doi: 10.1108/SRJ-08-2016-0151
Montero, P. M., Calderon, E. P., & Dias, A. I. L. (2020). Transparency of financial reporting on
greenhouse gas emissions allowances: The influence of regulation. International Journal of
Environmental Research and Public Health.
Oker, F., & Adiguzel, H. (2017). Reporting of carbon trading & international accounting standards.
Auditing & Corporate Reporting - Today & Tomorrow. doi: 10.5772/intechopen.68959
Saha, A. K., Saha, B., Choudhary, T., & Jie, F. (2019). Quality versus volume of carbon
disclosures and carbon reduction targets: Evidence from uk higher education institutions.
Pacific Accounting Review.
ϭϯ

Saraswati, E. (2020). Carbon Accounting, Disclosure and Measurement : A Systematic
Literature Review. The International Journal of Accounting and Business Society , 69-
96.
Velte, P., Stawinoga, M., & Lueg, R. (2020). Carbon performance and disclosure: A systematic
review of governance-related determinants and financial consequences. Journal of Cleaner
Production .
ϭϰ

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTING
OF THE LISTED CORPORATES IN INDIA
Dr. Somnath Ghosh*
The term Corporate Sustainability (CS) is much deliberated at present among the corporates,
academics, social activists, governments and international intergovernmental organisations,
like the United Nations (UN), Organization for Economic Co-operation and Development
(OECD), etc.
CS refers to the attainment of long term growth and profitability, by a corporate, through
positive business practices, in the following three areas:
ϭ͘ Environment: Negative impact of the business operations should be minimum on the

environment, e.g. carbon emission should be minimised to the extent possible, efforts
should be made for conservation of water and biodiversity, safe and recyclable products
should be produced and there should be proper waste management.
Ϯ͘ Society: Proper care should be taken by a corporate entity for its people, both within and
outside, like its employees, customers and local community. Corporates should also have
respect and commitment for promotion of human rights.
ϯ͘ Economic Performance: Corporates have to generate surplus, otherwise in the long run,
survival will be at stake. Sustainable business practices should be the objectives of the
corporates, otherwise promotion of long term profitability will not be possible. Only a
corporate which is profitable in the long run can make positive contributions towards the
environment and society.
*WƌĂĐƚŝĐŝŶŐŚĂƌƚĞƌĞĚĐĐŽƵŶƚĂŶƚΘ'ƵĞƐƚ&ĂĐƵůƚǇDĞŵďĞƌŽĨƚŚĞĞƉĂƌƚŵĞŶƚŽĨŽŵŵĞƌĐĞ͕
ĐĂůĐƵƚƚĂhŶŝǀĞƌƐŝƚǇ͕ĐĂƐŐŚŽƐŚϱϵΛŐŵĂŝů͘ĐŽŵ

However, a corporate should not compromise with the following to achieve profitability:
• Healthy corporate governance.
• Ethical business practices.
• Transparent business activities.
• Compliance with the laws of the countries.
• Respectability and responsiveness towards the interests of all the stakeholders.
• Promotion of inclusive growth and equitable development.
• Utilization of the scarce resources of the society in the best possible manner.
• Investment towards sustainable business practices.
All the above three elements of sustainable business practices are equally important; no one
should overshadow the others.
Objectives of CS are to ensure, long term values for the stakeholders of a corporate without
compromising the long term interests of the environment and society, and also at the same time,
the economic interests of itself. CS is concerned with the business practices which will ensure
present profitability of the corporates without compromising the ability of the future
generations to fulfil their needs. The objectives of CS are to ensure a healthy planet, safe and
secure societies, and prosperous economies for the future generations through long term
initiatives.
Corporate Social Responsibility and Corporate Sustainability
On the other hand, Corporate Social Responsibility (CSR) may be defined as the
accountability of a corporate towards its stakeholders and the public at large. CSR denotes
accountability of a corporate to the society, and is a broad multidimensional concept. CSR does
not focus only on sustainability. CSR includes CS. Hence, CSR is a broader concept than CS.
So, both CSR and CS focus on the positive contributions of a corporate towards society
and environment. The two terms CSR and CS are closely interconnected, yet they are not the
same. However, very often these two terms are confused with one another and used
interchangeably, though these two terms are not similar.
Environmental, Social and Governance (ESG) Norms
Environmental, Social and Governance (ESG) norms are a set of standards for the
business practices of a corporate. Presently, the socially conscious investors evaluate the
performances of the proposed investee corporates against the ESG standards to take their
economic decisions. ESG norms assist investors in identifying corporates with values, which
match with their desired values.
ESG is a broader term, and CS comes under ESG. CS emphasizes compliance with ESG
norms. Each element of the ESG norms includes the following:
• Environmental Norms: Environmental norms include the qualities of performances of a

corporate on, managing environmental risks, energy usage, water management, waste
management, pollution control, conserving natural resources, biodiversity, and compliance
with government environmental rules.
• Social Norms: Social norms include the qualities of performances of a corporate in,
managing relationship with the employees, health and safety measures undertaken for the
employees, satisfaction of the customers for safe and eco friendly products, inclusion of
value evaluation criterion for selecting the suppliers and aligning such values with the
values of the corporate, and welfare activities for the local community.
• Governance Norms: Governance norms include the qualities of performances of a

corporate in compliance with, laws of the land, ethical business practices, transparent
accounting practices, fair audit practices, adequate internal controls, avoidance of conflicts
of interest in choosing board members and respect for the rights of the shareholders.
Now, another much deliberated term in this respect, ‘Sustainable Development’ may also
be looked into, as the principal purpose of complying with ‘ESG Norms’ is ‘Sustainable
Development’. So, what is meant by ‘Sustainable Development’?

Sustainable Development (SD)
In simple words, ‘Sustainable Development’ refers to a concept of development, where

the quantum of natural resources consumed at present for the purpose of development, should
not exceed the capacity of the planet to regenerate adequately, such resources for future supply,
to be used by the future generations, to fulfil their needs. Under such a situation, only the
indefinite supply of natural resources, for fulfilling the needs of the generations to come, can
be ensured.
However, if the opposite happens, i.e. consumption of natural resources for the present
development exceeds the capacity of the earth to regenerate consumed natural resources, then
the present development will be at the cost of the future generations, and the same cannot be
acceptable as sustainable.
The United Nations Development Programme (UNDP) published a report titled,

‘Sustainable Development Goals’ (SDGs). The UNDP adopted the SDGs in the year, 2015.
The SDGs comprise of 17 goals to be achieved. The UNDP vows to achieve those 17 SDGs by
the year 2030.
Present Scenario of Sustainability Reporting
Now, we may look into the present panorama of the ‘Sustainability Reporting’ of the
corporates. The corporates at present publish annual sustainability reports mostly voluntarily.
However, till date, there are no internationally accepted measurement and disclosure standards,
on the bases of which sustainability reports can be prepared by the corporates. In the absence
of such internationally accepted standards, corporates are preparing their sustainability reports,
following different measurement and disclosure frameworks, according to their choice.
Resultantly, information published by the corporates through those sustainability reports often
are devoid of desired quality, consistency, and are also not globally comparable. Resultantly,
investors are also unable to assess the sustainability risks of the corporates from those
sustainability reports. Under such a situation, economic decisions of the investors on the bases
of such corporate sustainability reports are bound to be sub-optimal.

IFRS Foundation, the investor focused international organization responsible for setting
IFRS Standards is competent enough to take initiative in this regard. IFRS Foundation can set
internationally accepted sustainability reporting standards, and the sustainability reports
prepared by the corporates on the bases of those standards will be consistent, transparent, and
comparable around the world.
Initiatives of IFRS Foundation
Trustees of the IFRS Foundation, on October 21, 2021, revised its Constitution with the
aim to accommodate the formation of a new standard setting board, responsible for developing
a set of sustainability disclosure standards within its structure, to address the demands of the
socially conscious international investors.
On November 03, 2021, the Trustees of the IFRS Foundation announced the formation
of a new standard setting board, viz. ‘International Sustainability Standards Board’ (ISSB). The
objective of forming the ISSB is to deliver a set of comprehensive international sustainability
related disclosure standards. Such standards will provide investors and other capital market
participants with the following information about the corporates to assist them in making
informed economic decisions:
• Sustainability related risks.
• Sustainability related opportunities.
The ‘Objectives’ section of the Constitution of the IFRS Foundation provides that the
responsibility of the ISSB will be to develop a set of sustainability disclosure standards,
referred to as ‘IFRS Sustainability Disclosure Standards’.
So, at present the two standard setting bodies of the IFRS Foundation are the following:
• International Accounting Standards Board (IASB), for developing ‘IFRS Accounting

Standards’.

• International Sustainability Standards Board (ISSB), for developing ‘IFRS Sustainability
Disclosure Standards’.
The ‘IFRS Accounting Standards’ and ‘IFRS Sustainability Disclosure Standards’ are
collectively referred to as, ‘IFRS Standards’.
Issuance of Global Sustainability Disclosure Standards by the IFRS Foundation
On Monday, June 26, 2023 the ISSB has issued the following two ‘IFRS
Sustainability Disclosure Standards’:
Serial International Title
No. Standard No.

1. IFRS S1 General Requirements for Disclosure of Sustainability-related
Financial Information
2. IFRS S2 Climate-related Disclosures
We can expect that this will usher in a new era in international corporate reporting.
Indian Perspective of Sustainability Reporting
CSR Under the Companies Act, 2013, of India
The Section 135(5) read with the Section 135(1) of the Companies Act, 2013, mandated
CSR activities with respect to the following classes of companies:
• Companies having net worth of Rupees Five Hundred Crore or more; or
• Companies having turnover of Rupees One Thousand Crore or more; or
• Companies having net profit of Rupees Five Crore or more during the immediately
preceding financial year.
Any company, covered under any one of the above mentioned three criteria, has to spend
in every financial year, at least two per cent of the average net profits of the company made
during the three immediately preceding financial years, or where the company has not
completed the period of three financial years since its incorporation, during such immediately
preceding financial years, in pursuance of its corporate social responsibility policy.
CSR Reporting Under the Companies Act,

2013 Rules and Schedule
The Companies (Corporate Social Responsibility Policy) Rules, 2014, has been
promulgated to regulate the CSR policies, activities, expenditure and reporting of the
companies. An ‘ANNEXURE’ has been provided in the said Rule, prescribing a detailed
format for the annual report on the CSR activities which are to be included in the report of the
board of directors of a company.
The Companies (Corporate Social Responsibility Policy) Rules, 2014, is applicable to

companies to which Section 135(1) of the Companies Act, 2013, is applicable.
Rule 9 of the Companies (Accounts) Rules, 2014, has prescribed that the disclosure of
contents of the corporate social responsibility policy in the report of the board of directors and
on the website, if any, of the company shall be as per the ‘ANNEXURE’ attached to the
Companies (Corporate Social Responsibility Policy) Rules, 2014.
‘Schedule VII’ of the Companies Act, 2013, has prescribed the activities which may be
included by the companies in their corporate social responsibility policies.
Business Responsibility Reporting Under the Securities and Exchange Board of India
(SEBI) Regulation
Under Clauses 34(1)(a) and 34(2)(f) of the ‘Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015’, it has been made
mandatory for the top one thousand listed companies (based on the market capitalisation to be
calculated as on March 31 of every financial year) to publish annual reports containing
‘Business Responsibility Reports’ (BRR) describing the initiatives taken by them from the
‘Environmental, Social and Governance’ (ESG) perspectives. Such annual reports have to be
submitted to the stock exchanges, and also have to be published on the websites of the
companies. In the case of other listed companies, publishing of the annual reports containing
‘Business Responsibility Reports’ is optional.
Business Responsibility and Sustainability Reporting Under the SEBI Regulation
SEBI has amended Clause 34(2)(f) of the ‘Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015’ vide Gazette
Notification dated May 05, 2021 and vide Circular dated May 10, 2021 replaced ‘Business
Responsibility Report’ (BRR) by ‘Business Responsibility and Sustainability Report’ (BRSR)
to report the performances of a corporate on ESG parameters, because of increased focus of
the investors and other stakeholders seeking businesses to be responsible and sustainable
towards the environment and society. This ‘Business Responsibility and Sustainability
Reporting’ has been made mandatory by SEBI for the top 1000 listed companies (based on the
market capitalisation to be calculated as on March 31 of every financial year) with effect from
the financial year 2022-2023.
Again, based on the recommendations of the ESG Advisory Committee and pursuant to
public consultation, vide Circular dated July 12, 2023 SEBI has revised the existing BRSR
format and decided to introduce ‘BRSR Core’ and mandated disclosure and assurance (i.e.
audit) by specified listed companies as per the updated format. SEBI has further decided to
introduce disclosure and assurance (i.e. audit) as per the ‘BRSR Core’ for the value chain (both
for purchases and sales) of specified listed companies. This ‘BRSR Core’ is a sub-set of the
BRSR and consists of a set of Key Performance Indicators (KPIs)/Metrics under 9 ESG
attributes.
The provisions of the ‘Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015’ has been amended vide Gazette Notification
dated June 14, 2023 to implement the aforesaid changes.
The disclosures as per the revised BRSR format including ‘BRSR Core’ is mandated for
top 1000 listed companies (based on the market capitalisation to be calculated as on March 31
of every financial year) as part of their Annual Reports from the financial year 2023-2024.
However, the reasonable assurance (i.e. reasonable audit) of the ‘BRSR Core’ is mandated in
the following staggered manner:

Financial Applicability of Reasonable Assurance of BRSR Core to Top Listed
Year Companies (Based on the Market Capitalisation to be Calculated as on
March 31 of Every Financial Year)
2023-2024 Top 150 listed companies.

SEBI has gone a step further, and made mandatory disclosures as per ‘BRSR Core’ for
its value chain by a specified listed company, as part of its Annual Reports. Here, value
chain has been referred to as top upstream and downstream partners of a specified listed
company, cumulatively comprising 75% of its purchases/sales (by value) respectively.
Specified listed companies must have to report the KPIs in the ‘BRSR Core’ for their
value chain to the extent it is attributable to their businesses with a value chain partner. This
reporting may be segregated for upstream and downstream partners or can be reported on an
aggregate basis.
The disclosures as per the said ‘BRSR Core’, i.e. ESG disclosures, for the value chain
has been mandated to top 250 listed companies (based on the market capitalisation to be
calculated as on March 31 of every financial year) on a comply-or-explain basis from the
financial year 2024-2025. The limited assurance (i.e. limited audit) of such ESG disclosures
has been mandated on a comply-or-explain basis from the financial year 2025-2026.
SEBI has also mandated the procedural/disclosure requirements and obligations for the
‘ESG Rating Providers’ vide ‘Master Circular for ESG Rating Providers’ dated July 12, 2023
and made it applicable from the date of notification of this Master Circular.
‘ESG Reporting’ and ‘ESG Risk Rating & Gradation’ of the Listed Companies in India
Now, to have an understanding of the status of ‘ESG Reporting’ and ‘ESG Risk Rating
& Gradation’ of the listed companies in India, the pattern of ‘ESG Reporting’ by the top 10
listed companies (by market capitalization on September 18, 2023 in the BSE and NSE Stock
Exchanges) and their ‘ESG Risk Rating & Gradation’ (provided by ‘Sustainalytics’) are
furnished in the Table below:
Sl. Name of the Particulars of ESG ESG Risk Rating ESG
Company Reporting for the Financial Risk
No.
Year Grade
2022-2023
01. Reliance Published combined ‘Business 41.0 Severe
Industries Responsibility & Sustainability Risk
On June 24, 2023
Limited Report’ (BRSR) and ESG
Report.
02. Tata Published ‘Integrated Annual 11.4 Low Risk

Consultancy Report’ which contains
On August 18, 2023
Services Limited (a) Corporate Governance
Report, (b) Corporate Social
Responsibility Report, (c) BRSR
and (d) Sustainability
Disclosures.
03. HDFC Bank Published ‘Integrated Annual 30.6 High

Limited Report’ which contains Risk
On May 11, 2023
(a) Responsible Business
Disclosures, (b) Corporate
Governance Report and (c)
BRSR.
04. ICICI Bank Published separately BRSR and 24.0 Medium

Limited ESG Report. Risk
On September 02,
2023
05. Infosys Limited Published separately 13.1 Low Risk
‘Integrated Annual Report’
On September 02,
which contains
2023
(a) Corporate Governance
Report and (b) BRSR, and ESG
Report.

06. Hindustan Published separately 23.0 Medium
Unilever ‘Integrated Annual Report’ Risk
On September 14,
Limited which contains
2023
(a) BRSR and (b) Corporate
Governance Report, and ESG
Report.
07. ITC Limited Published separately BRSR and 28.0 Medium
Sustainability Report. On April 13, 2023 Risk

08. State Bank of Published separately ‘Annual 27.1 Medium
India Report’ which contains Risk
On May 19, 2023
(a) Corporate Governance
Report and (b) BRSR, and
Sustainability Report.
09. Bharti Published ‘Integrated Report’ 19.5 Low

Airte which contains (a) BRSR Risk
On April 13, 2023
l Limited and
(b) Report on Corporate
Governance.
10 Bajaj Finance Published separately ‘Annual 18.8 Low
Limited Report’ which contains BRSR, Risk
On May 28, 2023
and ESG Report.
Note 1: The ‘ESG Risk Rating’ and ‘ESG Risk Grade’ have been provided by ‘Sustainalytics’,
which is a part of ‘Morningstar, Inc.’ of 22 Washington Street, Chicago, Illinois 60602, United
States of America. ‘Morningstar Sustainalytics’ provides high-quality, analytical
‘Environmental, Social and Governance’ (ESG) research, ratings and data to institutional
investors and companies. ‘Morningstar’ and ‘Sustainalytics’ announced strategic partnership in
the year 2015. Later on, in the year 2017 ‘Morningstar’ acquired 40% ownership stake in
‘Sustainalytics’.

Note 2: Scale of ‘Sustainalytics’ for Determining ESG Risk Grade
Negligible Low Risk Medium High Severe Risk

Risk Risk Risk
0 - 10 10 - 20 20 - 30 30 - 40 40+
Conclusion
Investors at present, specially leading institutional investors and large portfolio holders,
are not only concerned with financial performances of their investees, but also with the ESG-
driven risks and opportunities of their investee corporates. For this purpose, the investors need
adequate ESG related data of their investee corporates, so that they can build up meaningful
ESG insights of their targeted investees.
India is moving at the right direction in this regard, as by the time to time amendments
of the ‘Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015’, India has ensured disclosures of ESG related data through
BRSR which includes ‘BRSR Core’, by the specified listed companies, for themselves and also
for their upstream and downstream value chain partners (i.e. suppliers and customers). SEBI
has also mandated reasonable/limited audit of such ‘BRSR Core’ disclosures according to a
prescribed timeframe.
References
ǁǁǁ͘ŝĨƌƐ͘ŽƌŐ
ǁǁǁ͘ƐĞďŝ͘ŐŽǀ͘ŝŶ
www.morningstar.com
ǁǁǁ͘ƐƵƐƚĂŝŶĂůǇƚŝĐƐ͘ĐŽŵ
ǁǁǁ͘ŵŽŶĞǇĐŽŶƚƌŽů͘ĐŽŵ

DETERMINANTS OF QUALITY IN RESEARCH
PUBLICATIONS- A FRAMEWORK
Dr. V. Usha Kiran*

Ms V. Shravya Sree**
Mr. Bunga Dinesh***
Abstract
Publication of research work is the most important aspect in research. The work carried out in
the research reaches various people interested in that particular field of research if published in
a very good subject related journal. Users of the research work understand the contribution
made by the researcher, the research methodology adopted, statistical tools used and
conclusions emerging out of the study. For the academicians doing research and publishing is
further important as they can abreast themselves with the latest updates in the field of research,
helps them in establishing as an appraisal tool and also for the organization as a credential. In
this context, all the research publications have to be assessed for their conceptual clarity, method
of research and result analysis. The assessment is generally taken up with the help of citation
analysis, number of downloads, textual analysis and so on. The present study aims at bringing
out the quality of research papers published in journal by name "Indian Journal of Accounting
". An analysis of 154 papers published in the past 5 years have been assessed for their quality
by considering the various parameters of quality such as abstract, key words, review of
literature, research gap, statement of problem, research questions, research methodology, data
presentation, structure of the report, referencing style and bibliography.
*Senior Professor of Commerce (Retd), Osmania University, Hyderabad, [email protected]

** Research Scholar, Osmania University, Hyderabad, [email protected]
*** Research Scholar, Osmania University, Hyderabad, [email protected]

The study concludes that any research paper to be called as the best quality must have certain
ingredients and the researcher should incorporate all such things so that the quality of the paper
remains the best. The journals publishing the research work should mandatorily insist on
fulfilling the criteria suggested by the researchers.
Key words: Quality of research publication, assessment, clarity, overview, scope, research
writing style
Introduction
Research in various academic fields disseminates the knowledge in that particular field.
Research output is expanding day by day as the number of journals is growing. Peer reviewed
journals, open access journals, online and off line journals are contributing more to the spread
of knowledge and growing percentage of research publications. Thanks to the various bodies
such as UGC and AICTE for formulating the rules that all academicians should engage
themselves in research, further to UGC, ICMR, ICSSR etc. for funding research proposals.
Academic research involves more than just choosing a topic, collecting and analyzing
data. To be considered as a good study, research must meet certain criteria. It is the prime
responsibility of researchers to adhere to the quality of research and help in spreading the true
knowledge. With wide usage of internet and search engines, no doubt, many of the researchers
are producing good research output at the same time they are being misused by majority of
researchers. Though the research methodology workshops are conducted and majority of the
researchers teach and learn the research methodology, still a big vacuum exists in the theory
and practice. The quality research papers are very insignificant in the total research output. In
this context, it is necessary for the researchers to assess the quality of their research papers.
Though certain metrics such as citation analysis, impact factor, number of downloads, textual
analysis are used in the assessment of the quality of research publication, it is still necessary
that a framework is to be identified with the various parameters to assess the quality of the work.
Review of Literature
Dirk Schoonbaert, Gilbert Roelants (1996) conclude that citation analysis, even when based on
Journal impact factors, can be a worthwhile criterion for evaluating publication records of
individual scientists or research units, as long as some of the problems discussed are sufficiently

taken into account. However, this conclusion in no way implies that citation analysis may be
considered as the one and only evaluation criterion.
Jim Taylor (2010) in his research investigated the extent to which the outcomes of the 2008
Research Assessment Exercise in the UK, determined by peer review, can be explained by a set
of quantitative indicators. Three cognate units of assessment are examined in detail: business and
management, economics and econometrics, and accounting and finance. The main finding is that each of
the three components of research activity (namely, research output, esteem and research environment)
is highly correlated with various quantitative indicators. A further finding is that the judgment of the
Research Assessment Exercise panels was biased and there is also evidence of bias by the economics and
econometrics panel. The results support the use of quantitative indicators in the research assessment
process, particularly a journal quality index.
Lutz Bornmann et all (2011) discussed misuses of journal impact factor to assess impact of
separate journal articles and the effect of several manuscript versions on JIF. It also presents some
newer alternative journal metrics such as SCIMAGO Journal Rank and the h-index and analysed
examples of their application in several subject categories.
According to Alan Reinstein James R and Hasselback, (2014) many of the studies often use
three methods to assess faculty research productivity: ‘counting’ articles written, surveying
faculty members or administrators, and using citation analysis. The study titled ‘A Literature
Review of Articles assessing the productivity of accounting faculty members’ has been taken
up to help decision-makers make more informed conclusions when relying on studies that assess
their colleagues' research productivity.
Raymond Talinbe Abdulai et all (2014) state that the research journey commences with the
selection of a research topic and the preparation of a proposal on the selected topic. A research
study should have ingredients such as (a) demonstrate knowledge and understanding of what
research is all about and its challenging nature; (b) display an enlarged comprehension of research
gap, aim, objectives, and hypotheses as well as their distinguishing characteristics; (c)
demonstrate a good understanding of the relevant elements to be considered in the constituent
sections of a good research proposal; and (d) comprehend the elements of a research proposal
that should feature in the final written dissertation or thesis.
Andrea Giovanni et all (2018) in their research discussed that alternative metrics are gaining
increasing interest in the scientometrics community as they can capture both the volume and
quality of attention that a research work receives online. Nevertheless,

there is limited knowledge about their effectiveness as a mean for measuring the impact of
research if compared to traditional citation-based indicators. The work aimed at investigating if
any correlation exists among indicators, either traditional such as citation count and h-index or
altmetrics and which of them may be effective for evaluating scholars. The study is based on the
analysis of real data coming from the National Scientific Qualification procedure held in Italy.
Lutz Bornmann and Robin Haunschid (2018) evaluated alternative metrics to analyze the
research quality. The research interest was to find out whether alternative metrics do measure the
impact and influence of specific research or just represent background noise. To this end, the
authors suggest that one could correlate various alternative metrics with traditional metrics, such
as citations, or analyze their correlation with expert opinions. In addition, the manifesto addresses
a major drawback of altmetrics, namely the susceptibility to manipulation; for instance, the
difference between a good or bad indicator value based on Twitter often comes down to just a
few tweets.
Abhishek Behl, Pankaj Dutt and Pratima Amol Sheorey (2019) in their article ‘Bench marking
publication metrics for Indian business researchers: Exploring the role of collaborations’found
that the rate of collaboration with researchers from the home country is low for top rated
publications. Majority of publications were listed in Scopus indexed journals, whereas a handful
featured in A and A* journals. A and A* journals were predominantly co-authored with
academics from universities outside the country. Tradeoff was achieved by majority of authors
by getting published in B, followed by C category journals to achieve research.
According to Firdissa Aga (2023), research results in quality when research process/researching
quality and research groundedness quality were highly valued as determinants of academic
research quality. Proper interplay of the three guarantees rightfully situating research
undertakings, and ascertaining soundness of the process to produce quality results relevant to
policies and practices. It is, therefore, desirable to put in place systemic installation of ensuring
proper research planning, implementation, and reporting by guaranteeing all inclusive quality;
going beyond the quantitative-driven research reports, publications, and citations

Josephine C. Igbokwe et all(2019) have provided empirical evidence in research skills, editors’
competency / areas of specialization and mentor-mentee relationship as determining factor for
quality of research outputs by librarians.
A.Shanta et all (2013) opined that the quality of a publication should be judged by its usefulness
and acceptability evident in subsequent publications. A new, time dependent, factor for impact
of individual published papers could be thought about and recommend this factor as the criteria
to evaluate the merit of the publication or that of the researcher. This factor could be easily based
on the citation of the paper (number of times referred by other researchers in the specific period)
or by generating a system of rating by readers.
Muthu Madhan et all (2018) discussed that the regulatory and funding agencies give too much
importance to the number of papers published and use indicators such as average IF, cumulative
IF and IF aggregate in the selection of researchers for awards, the selection and promotion of
faculty, awarding fellowships to students and grants to departments and institutions, and thus
contribute to the lowering of standards of academic evaluation, scholarly communication, and
the country’s research enterprise. Impact factors, provided by Clarivate Analytics in their Journal
Citation Reports (JCR), are applicable to journals and not to individual articles published in the
journals. Nor is there such a thing as impact factors of individuals or institutions. One cannot
attribute the IF of a journal to a paper published in that journal, as not all papers are cited the
same number of times; and the variation could be of two to three orders of magnitude. This
metonymic fallacy is the root cause of many ills.
Research Gap
Most of the research studies used various metrics such as counting of articles, citation
analysis, H-index, impact factor of the journal, cite score, collaborations and other alternative
metrics such as social media, Twitter, Facebook. Further earlier researchers have used survey
analysis of faculty members or administrators, reviewers and editorial practices to assess the
quality of research publications or the journal in which such works have been published.
However, the researchers could not find any literature on what kind of weightage can be
assigned to the various components of a research paper, whether they can be segregated into
various clusters. Hence the researchers have taken up the present study which uses the

analysis of research papers published in the journal ‘Indian Accounting Journal’ using various
parameters of quality segregated into four clusters namely 1) Overview 2)Scope 3) Research
Methodology 4) Writing style
Statement of Problem
Off late many journals online and print are publishing the research works of
academicians by considering the quality of the papers by applying various parameters.
However, there are certain journals which publish the papers without looking into the quality
just to earn. Nowadays many journals are emerging which are cloned. It is a need of the hour to
bring out a strong framework with the help of which the quality of research works can be
assessed.
Research Questions
1. How can a journal classify the research works based on the quality?
2. What are the various parameters that can assess the quality of the research papers?
Based on the review of literature, research gap and research questions raised the
following objectives are famed.
1. To establish clusters of parameters of quality of the research publications and build a
framework of assessment.
2. To evaluate research works published in Indian Accounting Journal by obtaining a paper
score index.
Research methodology
Research Methods
The study uses library method of research where in documentary analysis is taken up. The
available past five year issues on the website of “Indian Accounting Association” have been
analyzed for the quality assessment with the suggested framework.
Data Sources
The data required for the study have been collected from secondary source that is the
published research papers in the last years by the journal “Indian Accounting Journal”.
Population
The study takes into consideration all the past issues of “Indian Accounting Journal” that is
10 issues that have been published. All the research works published in all the 10 journals

numbering to 154 have been selected for the analysis.
Quantitative techniques used
This study uses percentages, averages that is mean and weighted average and quality index
score and Chi-Square test.
For the purpose of calculating paper quality index various parameters identified as
abstract clarity, keywords identification, review of literature, research gap, statement of
problem , formulation of research questions, research methods, data sources, collection
methods, scientific sampling method, scientific sample size determination, hypothesis testing
and statistical tool usage, referencing style, bibliography, structure of report and conceptual
clarity. All these parameters are clustered into four viz., 1) Overview 2) Scope of the research
3) Research Methodology and 4) Writing style. Over all cluster weights are determined on the
basis of components in each cluster. The overview is assigned 5%, scope of the research 25%,
Research methodology 35% and writing style 35% each respectively.
Table No 1: Calculations in Weightage Assignment in cluster and score for each component
Component wise Overall Effective

weightage in a Cluster percentage Score out of
cluster Weightage 100
Overview
Abstract Clarity 70% 5% 3.500% 3.5
Keywords
Identification 30% 5% 1.500% 1.5
Scope
Literature Reviewed 30% 25% 7.500% 7.5
Literature Review
Clarity 10% 25% 2.500% 2.5
Research Gap 30% 25% 7.500% 7.5
Statement of Problem 10% 25% 2.500% 2.5
Research Questions 20% 25% 5.000% 5
Research
Methodology
Statistical Tool Usage 20% 35% 7.000% 7
Scientific Sampling
Method 20% 35% 7.000% 7
Scientific Sample Size 20% 35% 7.000% 7
Research Method 20% 35% 7.000% 7
Hypothesis Testing 20% 35% 7.000% 7
Writing Style
Citation Style 30% 35% 10.500% 10.5
Report Structure 30% 35% 10.500% 10.5
Conceptual Clarity &
articulation 40% 35% 14.000% 14
Source: Calculated by Researchers

Components in each cluster are further assigned weights such as in overview, abstract
clarity is assigned 70% and keywords identification 30% respectively. The same process of
assigning weights to the individual components is proceeded with and effective percentage is
calculated which further reduced to score for each component out of 100. Based on the marks
for all components in each paper, the total score for the paper is calculated. All the papers
securing marks above 80 are classified as the Best, 60 to 80 as Good, 40 to 60 as Average and
below 40 as Below average respectively.
Period of the study
A five year study period is chosen for the analysis. All the issues published by “Indian
Accounting Journal” during 2015 to 2020 are considered for the study.
Scope of the study
The study takes into consideration the various elements of research publication that is
abstract, key words, review of literature, research gap, statement of problem, research
questions, research methodology, data presentation, structure of the report, referencing style
and bibliography.
Results and Discussion
The study takes 154 research publications published in select 5 years and analyzed
subject wise. The “Indian Accounting Journal” publishes research works relating to accounting,
finance, taxation mainly and other fields of commerce too. A subject-wise classification of the
papers is given in Table 2:
Table No 2: Subject-wise Research Paper Classification
Year Accounting Taxation Finance Multi- Total
Direct Indirect
disciplinary
Stock Working
Education Research Others Total Others Total CSR Others Total
tax tax markets capital
2016 2 0 5 7 0 0 1 1 6 0 1 8 15 6
2017 3 0 9 12 0 1 0 1 6 1 2 2 11 11
2018 2 0 15 17 0 0 0 0 6 0 0 5 11 5
2019 0 1 13 14 0 1 0 1 6 2 2 6 16 3
2020 2 0 5 7 2 0 0 2 8 1 0 1 10 4
Total 9 1 47 57 2 2 1 5 32 3 5 22 63 29 154
% 16 2 82 37 40 40 20 3 51 6 8 35 41 19 100

Source: Compiled from Indian Accounting Journal.
It is evident from the Table – 2 that 41% of the research papers are in the area of Finance
followed by 37% in Accounting, 19% in multi-disciplinary research works and just 5% in
Taxation. In Finance area 51% of the research work is related to stock market, 8% on working
capital, 6% on CSR and 35% is related to other areas of finance. In accounting area, 16% of
research work is related to accounting education, 2% accounting research and 82% in the other
fields of accounting. In Taxation area, there are very few research papers published of which
40% is related to direct tax, other 40% is related to indirect tax and 20% is related to the other
fields of taxation.
Table 3 indicates the clarity of the abstract and identification details of key words.
Abstract gives an overall view of the paper whereas key words reflect the concepts discussed
in the paper. Abstract generally summarize, describe and highlight important points from major
sections of the paper. They help the editors to classify the research interest. A preliminary probe
into the abstract will give an idea about the research interest. The appraisal of the paper is done
mostly on the basis of the abstract.
Table No 3:Abstract clarity and identification of key words
Accounting Taxation Finance Multi-disciplinary

Clear picture 53 (93%) 4(80%) 54(86%) 28(97%)
No clear picture 4(7%) 1(20%) 9(14%) 1(3%)
Total 57 5 63 29
Keywords:
Identified 54(95%) 4(80%) 63(100%) 29(100%)
Not identified 3(5%) 1(20%) 0(0%) 0(0%)
57 5 63 29
Note: Figures in the brackets indicate percentage.
The clarity in abstract can be achieved by recognizing the elements of the research such
as background of the study, methods and discussions. It is appreciable that in most of the papers
analyzed the abstract is giving a clear picture about the research. The clarity is almost 97% in
multi-disciplinary, 93% in accounting, 86% in finance and 80% in taxation.
The keywords in a research paper help other researchers in finding the research paper
when they are conducting a search on the topic. They help in finding the content of research.
Short

keywords, specific keywords and using 5 to 7 keywords is most considerable. The key words
are identified and reflecting the content perfectly 100% in multi-disciplinary and finance,
whereas in accounting it stands at 95% and 80% in taxation.
Table No 4:Review of Literature
Accounting Taxation Finance Multi-Disciplinary
Mentioned clearly 38(90%) 3(75%) 41(82%) 16(94%)
Not mentioned clearly 4(10%) 1(25%) 9(18%) 1(6%)
Total review of literatures mentioned 42 4 50 17
A total of 113 papers are analyzed for the review of literature whether they are clearly
conveying the earlier research done in the area or not. In Accounting and multi disciplinary
papers, more than 90% of the papers very clearly mentioned the findings and conclusions of the
research. In case of Finance and Taxation, more clarity is required. Too many reviews without
proper explanation or too less reviews make the research work below average. The remaining
papers under analysis have not included review of research.
Table No 5: Statement of Problem
Identified 7(12%) 1 (20%) 5 (8%) 3 (10%)
Not identified 50(88%) 4 (80%) 58 (92%) 26 (90%)
57 5 63 29

A research problem is a statement about an area of concern, difficulty to be eliminated,
a condition to be improved, or a troubling question that exists in scholarly literature, in theory,
or in practice that points to the need for meaningful understanding and deliberate investigation.
The ultimate goal of a statement of the problem is to transform a generalized problem into a
targeted, well-defined problem which can be resolved through focused research and careful
decision-making. In accounting area, the statement of problem is not identified in 88% of the
research papers and identified in 12% of papers. In taxation area, the statement of problem is
not identified in 80% of the research papers and identified in 20% of papers. In finance area,
the statement of problem is not identified in 92% of the research papers and identified in
8% of papers. In multi-disciplinary area, the statement of problem is not identified in 90% of
the research papers and identified in 10% of papers. Not identifying the statement of the
problem affects the scope of research.

Table No 6: Research Questions
Raised 4(7%) 0(0%) 2(3%) 1(3%)
Not raised 53(93%) 5(100%) 61(97%) 28(97%)
57 5 63 29

The research question will helps in setting out what is that one wants to answer through
the research. It pinpoints exactly what the researchers want to find out and sets a clear focus
and purpose. In the accounting area, the research questions are raised only in 7% of research
papers whereas in remaining 93% of papers research questions are not raised. In the taxation
area, in 100% of papers research questions are not raised. In the finance and multi-disciplinary
area, the research questions are raised only in 3% of research papers whereas in remaining 97%
of papers research questions are not raised.
Other parameters in Research methodology
Almost all the papers have adequately described the data sources and similarly the
sampling methods have been discussed. The sampling method and determination of size are the
key factors in deciding the scientific nature of the research work. In the analysis of 154 papers,
it is found that probability and non probability sampling methods have been used. Considering
the method of sampling the scores have been assigned. However, one should remember that
the data sources, data collection techniques and sampling methods become parameters in
assessment of the quality of research papers.
Table No 7: Statistical tools
Subject Accounts Taxation Finance Multi-Disciplinary
Descriptive 6(19%) 0(0%) 12(26%) 2(11%) 20
Inferential 20(63%) 2(67%) 26(55%) 7(39%) 55

Both 6(19%) 1(33%) 9(19%) 9(50%) 25
Total & % 32 3 47 18 100

Source: Compiled from Indian Accounting Journal
Statistical tools show the maturity of the researcher in analyzing and interpreting the
data. Use of appropriate tool of research helps in bringing out the conclusions accurately.
Researchers use the tools which are required based on the objectives of the study. Tools are
applicable in all fields of research. Descriptive statistics helps the researchers in describing the

data where as the inferential statistics helps in inferring conclusions from the sample and
generalize to the population. Researchers tend to use descriptive statistics, inferential statistics
or both or may not use tools at all depending on the type of research and objectives of research.
It is clear from the Table that 100 out of 154 papers used statistical tools. Inferential statistics
are used more in the analysis and all most the use of tools is same across the fields. In Finance
area 122 types of tools, in Accounting 60 types of tools and in Multi-Disciplinary 40 and in
Taxation 14 types of tools have been used. The tools most used in these papers are: regression
in 38 research papers followed by measures of central tendency in 32 papers correlation in 30
papers, t tests in 23 papers and variance analysis in 20 papers.
Table No 8: Research Methods
EXPLANATORY 1(2%) 0(0%) 1(2%) 1(3%)
DESRCIPTIVE 9(16%) 3(60%) 23(37%) 8(28%)
EXPLORATORY 5(9%) 0(0%) 0(0%) 4(14%)
NOT MENTIONED 42(74%) 2(40%) 39(62%) 16(55%)
Total 57 5 63 29
There are three types of research methods followed by the researchers they are
explanatory, descriptive and exploratory. Exploratory research is defined as the initial research
into a hypothetical or theoretical idea. This is where a researcher has an idea or has observed
something and seeks to understand more about it. Descriptive research focuses on throwing
more light on current issues through a process of data collection. Descriptive studies are used
to describe the behaviour of a sample population. In descriptive research, only one variable
(anything that has quantity or quality that varies) is required to conduct a study.

The three main purposes of descriptive research are describing, explaining and validating
the findings. Explanatory research or causal research is conducted to understand the impact of
certain changes in existing standard procedures. Conducting experiments is the most popular
form of casual research. In accounting area, 74% of the research papers have not mentioned the
type of research method, 16% followed descriptive method, 9% exploratory and 2%
explanatory. In the Taxation area, 60% followed descriptive method, 40% has not mentioned
the method of research. In the Finance area, in 62% of papers no research method is followed,
in 37% of the papers descriptive method is used and 2% of the papers are explanatory in nature.
In multi- disciplinary area, in 55% of the papers no method is mentioned the research paper, in
28% of the papers descriptive method is used, in 14% of the papers are exploratory and 3% is
explanatory.
Table No 9: Hypothesis
Framed & tested 26(59%) 4(80%) 37(59%) 13(31%)
Not framed & tested 1(2%) 0(0%) 2(3%) 1(2%)
Framed & not tested 2(5%) 0(0%) 0(0%) 0(0%)
Non hypothesis 15(34%) 1(20%) 24(38%) 28(67%)
Total 44 5 63 42
Hypothesis is a logical prediction of the occurrences without any support of empirical
evidence or confirmation. The most commonly used hypotheses are null and alternative
hypothesis. These are used basically to test whether any difference exists in sample statistics
and population parameters. In the research papers, researchers commit mistakes such as not
framing hypothesis but giving conclusions over it or framing the hypothesis but not testing it.
Both these errors make the papers as of below the quality. In accounting area, in 59% of research
papers the hypothesis is framed and tested, in 2% it is not framed but directly tested, in 5% of
papers the hypothesis is framed but not tested and there is no hypothesis in 34% of papers. In
taxation area, in 80% of research papers the hypothesis is framed and tested and there is no
hypothesis in 20% of papers. In finance area, in 59% of research papers the hypothesis is
framed and tested, in 3% it is not framed but directly tested, and there is no hypothesis in
38% of papers. In multi-disciplinary area, in 31% of research papers the hypothesis is framed
and tested, in 2% it is not framed but directly tested and there is no hypothesis in 67% of papers.
One has to remember that hypothesis may not be required in all kinds of research works.

Table No 10: Structure of Report
Followed 39(70%) 5(100%) 52(83%) 23(79%)
Not followed 17(30%) 0(0%) 11(17%) 6(21%)
56 5 63 29
The structure of a report has a key role to play in communicating information and
enabling the reader to find the information they want quickly and easily. Each section of a report
has a different role to play and a writing style suited to that role. Therefore, it is important to
understand what the readers are expecting in each section of a report and put the appropriate
information in the appropriate sections. The structure of report includes abstract, introduction,
review of literature, research gap, statement of problem, research questions, objectives,
hypothesis, research methodology, results and conclusions and references. In accounting area,
the structure of report is followed in 70% of research papers whereas it is not followed in 30%
of papers. In taxation area, the structure of report is followed in 100% of research papers.In
finance area, the structure of report is followed in 83% of research papers whereas it is not
followed in 17% of papers. In multi-disciplinary area, the structure of report is followed in 79%
of research papers whereas it is not followed in 21% of papers.
Table No 11: Bibliography Style
Correct 41 (76%) 3 (60%) 53 (87%) 23 (79%)
Not correct 13 (24%) 2 (40%) 8 (13%) 6 (21%)
54 5 61 29
Source: Compiled from Indian Accounting Journal

Bibliography is the list of sources that are used during the research. It generally includes
the name of the author, the title of works. The bibliography style is 76% correctly followed and
24% not followed correctly in the area of accounting. In the taxation area, it is followed 60%

correctly and remaining 40% of the papers have not followed the style correctly. The papers of
finance area (87%) followed the style correctly and rest 13% is incorrect. In multi- disciplinary
area, the bibliography is followed correctly in 79% of the papers and 21% is incorrect.
Table No 12:Classification of research papers on the basis of score obtained
Subject Best Quality Good Quality Average Quality Below Average Grand Total
Quality
Accounting 1 38 11 7 57
Taxation 5 5
Finance 1 49 12 1 63
Multi disciplinary 20 7 2 29
Grand Total 2( 1%) 86 (56%) 37 (24%) 29(19%) 154
Source: Compiled by the researchers
As explained in research methodology each paper is assigned scores and accordingly
classified into four types. It is observed that the best papers constitute 1%, Good quality papers
56%, Average quality papers 24% and below average 19%.
Table No 13: Paper quality index
Subject Count of Min.Paper Quality index Max. Paper Average of Paper
Research papers Quality index Quality index
Accounting 57 7.0 83.1 54.3
Taxation 5 60.5 72.1 65.7
Finance 63 22.5 86.4 58.7
Multi 29 0.0 75.9 55.2
disciplinary
Grand Total 154 0.0 86.4 56.6
Table 13 indicates the average, minimum and maximum paper quality index in each subject.
Table No 14: Average Score of Papers
Metric Average Score out of 1
Scope: Research Questions 0.045454545
Scope: SOP 0.077922078
Scope: Literature Reviewed 0.112323846
Scope: Research Gap 0.116883117
RM: Scientific Sampling Method 0.123376623
RM: Research Method 0.357142857
RM: Statistical Tool Usage 0.405844156
Scope: Literature Review Clarity 0.636363636
Writing Style: Citation Style 0.733766234
Writing Style: Report Structure 0.772727273
RM: Scientific Sample Size 0.850649351
Overview: Abstract Clarity 0.876623377
RM: Hypothesis Testing 0.954545455
Overview: Keywords Identification 0.961038961
Writing Style: Conceptual Clarity 0.980519481

Table – 14 indicates the average score for the papers analysed for the quality. All the
scores above 0.6 are considered to be taking care of the quality. However, in case of
identification of scope of research and research methodology, authors have to take care.
The individual points of consideration in improving the quality are identified as formulation of
research questions, statement of problem, literature reviewed, establishment of research gap,
methods used in sampling, writing about research methods and usage of statistical tools.
The editorial board while accepting the papers may keep this point in mind. The
reviewers may be given a hint about these parameters, so that they can suggest improvement in
papers. By adapting to such practices, the impact factor may increase.
Conclusion
Any research work carried out by the researchers is to be assessed for its quality and
accuracy. By calculating the paper score index, one can assess the quality of the publication. If
all the authors understand this logic, the research output becomes more qualitative. Based on
the paper score, journals can identify the subject wise quality, and areas of improvement. In this
context, the researchers suggest that a minimum 10 review of literature with a greater quality
help the researcher with defining the scope of research. The framework suggested finding out
the paper score should be tested further to popularize as a model by taking into consideration
the research publications in other journals too. If this model is validated by further research, it
stands as a great tool for the researchers to assess the quality of papers published and journals
in which the papers are to be submitted.
References
A Shanta, AS Pradhan and SD Sharma, Impact factor of a scientific journal: Is it a measure of quality of
research? Journal of Medical Physics Vol 38(4), Oct – Dec, 2013
Abhishek Behl, Pankaj Dutt and Pratima Amol Sheorey ‘ ‘Bench marking publication metrics for Indian
business researchers: Exploring the role of collaborations’ International journal Bench Marking,
2019
Alan Reinstein. James R, Hasselback ‘A literature review of articles assessing the productivity of
accounting faculty members’ Journal of Accounting Education,Volume 13, Issue 3,
1997, accessed on https://www.sciencedirect.com/science/article/pii/S0748575197000158

Andrea Giovanni, Palolo Ciancarini, Aldo Gangemi, Silvio Peroni, Francessco Poggi, Valentina Presutti
, Do altmetrics work for assessing research quality? Computer Science, posted in 2018, Cornell
University, Accessed on https://arxiv.org/abs/1812.11813
Dirk Schoonbaert, Gilbert Roelants (1996) in their article on ‘Citation Analysis for measuring the value
of scientific publications: quality assessment top or comedy of errors? Tropical medicine &
international health, Vol 1, No 6:, 1996
Firdissa Jebessa Aga, Determinants of academic research quality: The case at three Ethiopian public
universities, Social Sciences and Humanities Open, Vol 7,Issue,1, 2023
Jim Taylor, The Assessment of Research Quality in UK Universities: Peer Review or Metrics? British
Journal of Management, Vol 22, Issue 2 , accessed on SSRN
Josephine C. Igbokwe, Oyemike Victor Benson, Fidelia Ngozi Enem, Determinants of the quality of
research outputs by librarians in selected university libraries in south east Nigeria, Information
Impact: Journal of Information and Knowledge management, Vol 10,No.1. 2019
Lutz Bornmann · Werner Marx · Armen Yuri Gasparyan · George D. Kitas , Diversity, value and
limitations of the journal impact factor and alternative metrics, Springer, 2011, accessed
on https://www.ease.org.uk/wp- content/uploads/2016/05/diversity_of_impact_factors_-_h-
index-_armen_yuri_gasparyan-2012.pdf
Lutz Bornmann and Robin Haunschid, Alternative article – level metrics – the use of alternative metrics
in research evaluation, Science & Society, 2018 accessed on https://www.embopress.org/doi/full
/10.15252/embr.201847260
Muthu Madhan, Subbiah Gunasekaran, Subbiah Arunachalam, Evaluation of research in India – are we
doing it right? , Indian Journal of Medical Ethics Online March 23, 2018
Raymond Tailinbe Abdluai, Anthony Owueu – Ansah, ‘Essential ingredients of a good research
proposal for undergraduate and postgraduate students in the social sciences’ Sage Open Vol 4,
Issue- 3 published in 2014

PERCEPTION ANALYSIS OF THE NON-BANKING SERVICE INDUSTRY
AS A FINANCIAL INTERMEDIARY IN KERALA: UNDERSTANDING
CUSTOMER SATISFACTION AND SERVICE QUALITY
Anjali K P*
Dr. Usha A.A**
ABSTRACT
Kerala is a state with decades of tradition of financial intermediaries either organized or unorganized.
The first registered NBFC in Kerala started its business in 2007. This paper aims to examine the
perception of services availed by customers of NBFCs (Non-Banking Financial Companies) in Kerala.
Primary data are collected using a personal interview method, directly from customers selected using
stratified random sampling and convenience sampling methods from three districts of Kerala.
Correlation and multiple regression analysis are used to analyze the result. The results imply
significance of NBFCs in financial needs among common people is positively correlated to their
perception of NBFC as a financial intermediary. Perception as a financial intermediary and the attitude
of customers towards NBFC’s lending policies are positively correlated with the overall satisfaction
of common people towards NBFC services. This study provides insight into the Significance of NBFC
as a financial intermediary among common people at times of financial needs in society and their
perceptions towards this parallel banking system.
Keywords: Financial intermediary, Lending policies, Non-Banking Financial Companies, Perception,

Attitude, Customers
*Research Scholar, Fatima Mata National College, Kollam, Kerala, [email protected],

Ph: 8156880512
** Associate Professor, Department of Commerce, St. Joseph’s College for Women, Alappuzha,
[email protected], Ph: 8547554642

INTRODUCTION
It is commonly understood that ‘banking is the pillar that upholds the entire financial system
in an economy’. The co-existence of several institutions which facilitate the flow of funds is the key
feature of the Indian banking sector. Financial intermediation by organized as well as unorganized
gives blood to the veins of the financial system. Unbanked financial sectors may ensure the growth of
informal and semi-formal financial intermediaries. In Kerala, NBFCs (non-banking Financial
Companies) cater to all types of financial needs of common people with various products and services.
Normally, they don’t accept public deposits, but they do provide services governed by banking
regulations such as loans to the public, retirement planning, underwriting, and more(Chetan et al.,
2022). It is universally accepted that customers have more difficulty in evaluating quality when it
comes to services. Since, services are intangible, perishable, and have no preset physical standards,
the customer may form perception based on ideal expectations.
The role of the NBFCs is reflected in the relative combined asset position of the NBFCs-D
(NBFCS accepting Deposits) and NBFCs-ND-SI (Non-Deposit accepting Systematically Important
NBFCS). These two sets of class-held assets amounted to almost a fifth of that held by the scheduled
commercial banks as of the end of March 2019. The lending and investment activities of the NBFCs
were quite concentrated and focused on infrastructure, retail lending, and real estate(Chandrasekhar,
2020). More importantly, the services practiced in the NBFCs can be hugely influential in establishing
a positive mindset among consumers. Any change in perception or sentiment about these companies
that happens in the market affects the perception of customers elsewhere(Kumar-Director, 2018). It is
the customer satisfaction which drives the activities and services of every organization. Attitude and
perception are more difficult to analyze and study. However, it can give more insight into what
customers expect and what they perceive (Mudholkar & Dr. Gajanan P, 2014). And it is relevant for
organizations providing services.
In light of these considerations, this study aims to delve into the perceptions and attitudes of
customers availing themselves of services from NBFCs in Kerala. By employing a methodological
blend of purposive sampling and convenience sampling, primary data is meticulously collected
through personal interviews with participants across three distinct districts. This approach facilitates
a comprehensive exploration of customer insights, which are subsequently analyzed through a
combination of correlation analysis, multiple regression, and ANOVA techniques.

The focal point of this research is the pivotal role of customer perception in shaping the
efficacy and appeal of NBFCs as financial intermediaries. Given the service-oriented nature of
financial intermediation, customer perceptions are influenced by a myriad of factors, including but
not limited to, the accessibility of services, the transparency of lending policies, and the institution's
responsiveness to customer needs. This study posits that a positive correlation exists between the
perception of NBFCs as effective financial intermediaries and the overall satisfaction of customers
with the services provided.
Through an examination of these dynamics, the study endeavours to shed light on the
significance of NBFCs in fulfilling the financial aspirations and needs of the common people in
Kerala. The insights garnered from this research aim to contribute to the broader discourse on financial
inclusion, emphasizing the crucial role of alternative financial institutions in enhancing the economic
well-being of individuals and communities beyond the reach of traditional banking networks.
In essence, this introduction sets the stage for a nuanced exploration of the perceptions and
attitudes of customers towards NBFCs in Kerala, aiming to contribute valuable insights into the role
of these institutions in the financial landscape of the region.
THEORETICAL BACKGROUND
Non-Banking Financial Companies

Today our Indian financial sector comprises a magnificent coexistence of banks and financial
institutions along with a wide variety of financial instruments. A significant increase in all indicators
of financial development indicates the growing importance of financial institutions in the financial
system and the growth of the flow of funds concerning economic activity. As banks and other financial
institutions mobilize the savings of the public, they have an important role in assisting trade and
industry and in promoting the economic development of the country to fulfill the financial goals of
the people and extend financial facilities to a larger cross-section of the people and rural
areas(Resource Commission, 1993). Several aspects have accelerated the rapid growth of NBFCs in
the country, especially in Kerala. The comprehensive regulatory framework covered on the banking
system by the RBI along with the absence of moderate regulations over NBFCs, has contributed to
their rapid growth to a significant extent. Further, high customer orientation, low collateral and
approval requirements, and simple and speedy services have assured them a loyal clientele despite
high cost (State Planning Board, 2005). The role of the NBFCs is reflected in the relative combined

asset position of the NBFCs-D and NBFCs-ND-SI. These two sets of class-held assets amounted to
almost a fifth of that held by the scheduled commercial banks as of the end of March 2019. The lending
and investment activities of the NBFCs were quite concentrated and focused on infrastructure, retail
lending, and real estate (Chandrasekhar, 2020). More importantly, the services practiced in the NBFCs
can be hugely influential in establishing a positive mindset among consumers. Any change in
perception or sentiment about these companies that happens in the market affects the perception of
customers elsewhere (Kumar-Director, 2018). It is the customer satisfaction which drives the activities
and services of every organization. Attitude and perception are more difficult to analyse and study.
However, it can give more insight into what customers expect and what they perceive (Mudholkar &
Dr. Gajanan P, 2014). And it is relevant for organizations providing services.
Financial intermediaries
It is widely acknowledged that there has been an unprecedented amount of financial
innovation in recent years (Miller M.H., 1986). However, financial innovation has been occurring for
many centuries albeit at a slower pace. (Allen F. & Gale D., 1994)offer a detailed historical account
of financial innovation. They point out that numerous different types of instruments have been
developed over time but relatively few have survived. By the 1930s, the so-called traditional financial
instruments had developed and demonstrated some rigidity. Our understanding of the role or roles
played by these intermediaries in the financial sector is found in the many and varied models in the
area known as intermediation theory. These theories of intermediation have been built on the models
of resource allocation based on perfect and complete markets by suggesting that it is frictions such as
transaction costs and asymmetric information that are important in understanding intermediation
(Allen & Santomero, n.d.). (Gorton & Winton, 2003) concentrate on research addressing why bank-
like financial intermediaries exist, and the implications for their stability. By bank-like financial
intermediaries, they mean firms with the following borrowing characteristics: (1) They borrow from
one group of agents and lend to another group of agents (2) The borrowing and lending groups are
large, suggesting diversification on each side of the balance sheet. (3) The claims issued to borrowers
and lenders have different state-contingent payoffs. The terms “borrow” and “lend” mean that the
contracts involved are debt contracts. So, to be more specific, financial intermediaries lend to large
numbers of consumers and firms using debt contracts and they borrow from large numbers of agents
using debt contracts as well.
A financial institution is an intermediary between a deficit unit and a surplus unit in an
economy. The difference between banks as financial intermediaries and Non-bank Financial

Intermediaries (NBFIs) is that the financial instruments created by banks (deposits) are treated as
money or near-money while those created by NBFIs are not treated as money. To maintain the
financial health of NBFCs, it is also necessary to fix the limits of the debt-equity ratio. The Shah
Committee recommends that the ceiling on total debt should be 15 times the Net Owned Fund for all
NBFCs. Although there have been comprehensive regulatory constraints on banks, the NBFCs have
so far enjoyed a lesser degree of control that probably explains their rapid growth (Mody RJ., 1994).
They are the middlemen between two parties in a financial transaction (CFI Team, 2022).
Lending policies
For all organizations where economic activities are taking place, an important role belongs to
financial aspects. According to M. Weber, the policy is “striving for participation in authority or
influencing the distribution of authority, be it between states or within a state between groups of
people”. It is also opinionated that the financial policy of an economic subject is developed according
to the corporate ideology. An evocative representative of such approach by H. Ulrich, who thinks that
the stages of formation of financial policy “are the formulation of financial and economic goals,
determination of enterprise’s potential, and development of strategies of development” (Makarova et
al., 2016). It is the policy relating aspects of regulation, supervision and oversight of the financial and
payment systems, including markets and institutions, intended for promoting financial stability,
market efficiency and client–asset and customer protection (IMF, 2000). It can also be explained as
rules or principles of business accounting and financial practices. It should reflect businesses’ values
and culture (State government of Victoria, 2022).
Attitude and Perception
Some researchers argued that “the concept of attitude is probably the most distinctive and
indispensable concept in social psychology” (Allport, 1935). Operationally, we can define an attitude
in a three-dimensional approach. First, as a completely personally positive or negative psychological
evaluation or judgement toward an evaluated object- the “attitude object” in attitude theory. Second;
as a set of mental beliefs, we hold in relation to it. Finally, they provide a subjective value to it, from
a scale of values (Herzoy, 2017). The closing decades of the 20th century put an end to the
controversies on the measurements of attitudes with the development of a new class of indirect attitude
measures (Russell H Fazio, 2003). These measures differ from traditional measures of the self-report
that require explicit evaluation of an attitude object. Attitudes inferred from these measures are, rather
based on participants’ performance on experimental paradigms, such as sequential timing or response
interference tasks (Sylvan Kornblum et al., 1990). Perception can be explained as a primary form of
cognitive contact with the world. This primary form of awareness is the base from which all

conceptual knowledge is derived. The study of perception has always had a unique significance for
philosophy and science(Efron, 1969). Perceptions are formed by the individual all the time and are
stored away for future reference. Perceptions so formed will come into play when the individual has
to make any consumption decisions. Therefore, perceptions about a product or service that are formed
in the mind of the customer are vital factors for the success of the product or service in the market.
PURPOSE
Kerala is a state with decades of tradition of financial intermediaries. All of them started as
informal financial intermediaries serving society with their funds. This paper aims to examine the
perception of services availed by customers of NBFCs (Non-Banking Financial Companies) from
these financial intermediaries.
STATEMENT OF PROBLEM
In Kerala, a state renowned for its rich tradition of financial intermediaries evolving from
informal setups, the emergence of Non-Banking Financial Companies (NBFCs) marks a significant
shift in financial service provisioning. However, there remains a gap in understanding the perception
of services among customers availing themselves of NBFC facilities. This study seeks to investigate
the nuances of customer perceptions regarding the services provided by NBFCs in Kerala, delving
into factors such as satisfaction levels, service quality dimensions, and the influence of traditional
financial intermediaries' legacies on these perceptions.
OBJECTIVES:
1. To assess customer satisfaction levels with services provided by Non-Banking Financial
Companies (NBFCs) as a financial intermediary in Kerala.
2. To identify key factors influencing customer perceptions of service quality offered by NBFCs
in Kerala.
Originality/Value: This study provides insight into the Significance of NBFC as a financial
intermediary among common people at times of financial needs in society and their perceptions
towards this parallel banking system.

HYPOTHESIS
H01: There is no significant positive correlation between the perception of NBFC as a financial
intermediary and overall satisfaction towards NBFCs.
H02: There is no significant positive correlation between attitude toward lending policies and overall
satisfaction towards NBFC services.
H03: There is no significant positive correlation between the perception of NBFC as a financial
intermediary and attitude towards lending policies.
H04: The perception of NBFC as a financial intermediary and attitude towards lending policies do not
significantly explain the variance in Overall satisfaction with NBFC services.
The present paper researches the overall satisfaction of customers of NBFCs towards the
services provided by them. The study is descriptive.
Data collection: A direct interview was conducted among customers of Non-Banking Financial
Companies in Kerala during February 2023. Participants were asked to respond specifying their
perception of NBFC services, provided as a financial intermediary, and their attitude towards the
lending policies of NBFCs in the lending process. Responses were entered in a five-point Likert type.
Respondents were also requested to identify whether they availed loans from NBFCs. The interview
schedule also includes data on the demographic profile of participants including gender, age, level of
education, monthly income, and occupation. Individual customers of NBFCs from urban and rural
regions of Kerala participated in the survey.
Sampling unit: Customers of three pioneers of NBFCs registered with RBI operating their business
in Kerala for more than 70 years are selected for the study as sampling units. Muthoot Finance,
Manappuram Finance, and Kosamattam Finance represent them.
Participants: 120 useful responses were obtained from randomly selected two districts of Kerala
where many branches of selected NBFCs operate.
Variables used: Perception of NBFC as a financial intermediary, and Attitude towards lending policy
are used as independent variables. Overall satisfaction towards NBFCs is the dependent variable.
DATA ANALYSIS
Product, service, and relationship-related value-based drivers are selected to study the
perception of customers (Lapierre, n.d.). ACCION’s financial assistance model (Nelson, 1999)

identifies six major lessons of informal finance with wide applicability. Some of them are also applied
here as they fit under the context of the study, i.e., get to know your borrowers, do not supervise loans,
provide appropriate credit, charge commercial interest rates, and be tough on defaulters. Correlation
and multiple Regression Analysis were used to analyze the result with the help of MS Excel and SPSS
software packages.
Table No 1: Demographic Profile of Respondents
Age Group Number of Respondents Percentage (%)
25-35 23 19.16
36-45 32 26.67
46-55 53 44.17
56-65 12 10.00
Total 120 100
Note. Data represent the distribution of respondents' age groups in the study.
Table No 2: Educational Qualification of Respondents
Qualification Number of Respondents Percentage (%)
SSLC and below 42 35
Up to graduation 39 33
PG 11 9
Others 28 23
Total 120 100
Note. Data represent the educational qualifications of the respondents.

Table No 3: Occupation of Respondents
Occupation Number of Respondents Percentage (%)
Self-employed 53 44
Professional 7 6
Government employee 5 4
Employed in a private firm 38 32
Not employed 17 14
Total 120 100
Note. Data represent the occupation distribution among the respondents.
Table No 4: Level of Income of Respondents
Income Level Number of Respondents Percentage (%)
<20,000 82 68
20,000-40,000 31 26
40,000-60,000 7 6
>60,000 0 0
Total 120 100
Note. Data represent the monthly income levels of the respondents.
Table No 5: Emergency Finance Lender of Common People in Emergency
Financial Institution Number of Respondents Percentage (%)
NBFCs 96 80
Banks 12 10
Self Help Groups 6 5

Chit funds 4 3
Local money lenders 2 2
Total 120 100
Note. Data represent the preference for emergency financial assistance.
Table No 6: Attractive Factor of NBFC Loans
Factor Number of Respondents Percentage (%)
Quick loan disbursement 66 55
Least collateral requirements 30 25
Minimum documentation 12 10
Relaxation in credit score 4 3
Customized services 8 7
Total 120 100
Note. Data represent the factors contributing to the attractiveness of NBFC loans.
RESULTS
Percentage analysis, Correlation, and Multiple regression are used to test the hypothesis and
analyze the results.
Percentage
The higher the percentage, the more valid the model seems to be (Lorenzo-Seva, 2013). In this
result, 80 percent of people go for NBFCs in their emergency financial needs. It indicates the
significance of NBFC in the lives of common people in deciding the financial institution they want to
owe money from when they are in a financial emergency. The largest portion constituting 35 percent
of customers falls into the category of SSLC and below qualified, and have relatively lower levels of
formal education, which could have implications for the type of financial products and services they
seek, as well as the strategies NBFCs employ in serving this demographic.

A significant proportion of NBFC customers derive their income from self-employment,
highlighting the importance of NBFCs in catering to the financial needs of this segment of the
population, which may have unique financial requirements compared to salaried individuals.
A large segment of NBFC customers belongs to the lower-income strata, emphasizing the
importance of NBFCs in catering to the financial needs of this demographic. It also indicates the
potential focus of NBFCs on providing accessible and inclusive financial services to individuals with
lower incomes.
NBFCs stand out to a significant portion of their customer base due to their ability to provide
fast and efficient access to financial resources, highlighting the importance of speed and efficiency in
the financial services industry, especially in loan disbursement, in comparison with others.
Correlation
The quantities, necessarily numerical quantities, whose relations desired to be investigated,

will be spoken of, as the variables, since their magnitude varies. Instead of speaking “causally related
quantities”, we will use the term “correlation”, or “correlated quantities”. This definition is provisional
and subject to numerical measures (Yule G. Udny & Udny, 1897). Co-efficient of correlation was
computed to find the significant relationship between the variables.
Table No 7: Correlation between Variables
Variable Perception on NBFC Attitude towards Overall satisfaction

as a financial lending policy towards NBFCs
intermediary
Perception on NBFC - .000 .012

as a financial
intermediary
Attitude towards .000 - .000

lending policy
Overall satisfaction .012 .000 -

towards NBFCs
Note. Correlation is significant at the 0.05 level (2-tailed). P values are presented to indicate the
significance of the correlations.

From the figures in Table 7, all the P value are lesser than 0.05. it is difficult to accept the
hypotheses. It indicates the positive correlation between these variables (H01, H02). Perception of
NBFC as a financial intermediary and Attitude toward lending policy is positively related to overall
satisfaction towards NBFCs (H04). Perception of NBFC as a financial intermediary and Attitude
towards lending policies are also correlated positively (H03). Hence all the null hypotheses (H01, H02,
H03, H04) are rejected.
Regression
The regression test is applied to test how far the perception of NBFC as a financial
intermediary and attitude towards lending policy impact the overall satisfaction towards services of
NBFCs.
Table No 8: Regression Analysis Summary
Model R R Square Adjusted R Std. Error of the

Square Estimate
1 .902 .813 .769 .13929
Note. The regression analysis summary, indicates the relationship between predictor variables and
the outcome variable.
R is correlation between predictor and outcome variable. The value indicates how much the
dependent variable, overall satisfaction of NBFC services, is correlated with the independent
variables, attitude of customers towards lending policies of NBFCs and perception of customers on
NBFC as a financial intermediary. Here, the R2 value is .813, which indicates 81.3 percent variance
on the Overall satisfaction on NBFCs services explained by the perception of NBFC as a financial
intermediary and attitude towards lending policies. Only the rest is explained by Other external
factors.
Findings
Here examined the overall satisfaction of customers towards the NBFC services, using three
variables: the significance of NBFC in the financial needs of common people, the perception of
customers towards NBFC as a financial intermediary, and the attitude of customers towards lending
policies of NBFCs.

80 percent of the respondents consider NBFC as their first option for borrowing, which
explains the significance of NBFCs in their financial needs. The correlation values of both
independent variables i.e., perception of NBFC as a financial intermediary and attitude of customers
towards lending policies of NBFCs, with the overall satisfaction of NBFC services are 0.012 and
0.000 respectively which is lesser than 0.05, indicate they have a positive statistically significant
influence on overall satisfaction on the services of NBFCs.
It is noted that 44.17 percent of respondents are between the age of 46-55 and the majority are
not well educated. 44 percent of respondents are self-employed with local domestic work and
unorganized sector workers. They are extremely relying on the descriptions given by the employees
of NBFCs and are satisfied with them.
Quick disbursement of loans with minimum collaterals is considered as the key attraction of
NBFC loans, by common people. People are also of the opinion that the organization will provide
time-to-time information, which helps to increase credibility in society.
Conclusion
Non-Banking Financial Companies are considered the best alternative to banks by common
people. These are the institutions in emergencies, providing adequate credit for the people without
any delay and at the convenience of hassle-free procedures. They also treat customers with utmost
care and trust. These unique features make NBFCs a significant institution that caters to the financial
needs of the common public. While keeping the higher interest rates and unethical modes of recovery
procedures apart, customers have a positive perception and attitude towards the services provided by
the NBFCs and agree that they can serve society as a better parallel banking institution.
References
Allen, F., & Gale, D. (1994). Financial Innovation and Risk Sharing. MIT Press.
Allen, F., & Santomero, A. M. (n.d.). The theory of financial intermediation.
Allport, G. (1935). Attitudes. In C. Murchison (Ed.), Handbook of Social Psychology (pp. 798–
844).
CFI Team. (2022, December 7). Financial Intermediary. Retrieved from https://www.CFI.In.
Chandrasekhar, C. P. (2020). Revisiting the NBFC crisis. Economic and Political Weekly, 55(2),
10–11.

Chetan, P., Bhutada, J., & Shivanandsanmath, D. (2022). Review of Literature on the Nonbanking
Financial Sector in India. International Journal of Business and Management Invention
(IJBMI), 11(9), 70–74. https://doi.org/10.35629/8028-11097074
Efron, R. (1969). What is Perception? In Proceedings of the Boston Colloquium for the Philosophy
of Science (Vol. 4, pp. 137–173). Springer, Dordrecht. https://doi.org/10.1007/978-94-010-
3378-7_4
Gorton, G., & Winton, A. (2003). Financial intermediation. In Handbook of the Economics of
Finance (Vol. 1, Issue SUPPL. PART A, pp. 431–552). Elsevier B.V.
https://doi.org/10.1016/S1574-0102(03)01012-4
Herzoy, S. (2017). Experimental Analysis of Attitudes: The Factorial Survey Approach. Open
Journal of Social Sciences, 5(1).
International Monetary Fund. (2000, July 24). Code of Good Practices on Transparency in Monetary
and Financial Policies: Declaration of Principles.
Kumar-Director, S. (2018). A STUDY ON CUSTOMER PERCEPTION TOWARDS SERVICE

QUALITY MEASURED OF NBFC’S OPERATING IN MUMBAI REGION. Retrieved from
http://www.ijcrt.org
Lapierre, J. (n.d.). Customer-perceived value in industrial contexts. Retrieved from

http://www.emerald-library.com
Makarova, N. N., Zubko, E. I., Bestuzheva, L. I., Chusov, I. A., & Surkova, V. V. (2016).
Institutional Tool of Financial Policy: Contractual Policy. European Research Studies: XIX(2).
Miller, M.H. (1986). Financial Innovation: the last twenty years and the next. Journal of Financial
and Quantitative Analysis, 459–471.
Mody, R.J. (1994). Reforms in Non-bank Financial Intermediaries. Vikalp, 41–48.
MS Raju, D. X. (2014). Consumer Behavior.
Mudholkar, & Dr. Gajanan P. (2014). The Study Of Customer Attitude In Banking And NBFCs.
Conference on Emerging Frontiers in Management, 70–77.
Nelson, E. R. (1999). FINANCIAL INTERMEDIATION FOR THE POOR: SURVEY OF THE

STATE OF THE ART.

Resource Commission, K. (1993). Report of Resource Commission.
Russell, H. Fazio, & M. A. Olson (2003). Implicit measures in social psychological research: their
meaning and use. Annual Review of Psychology, 297–327.
State government of Victoria. (2022, July 4). Business Victoria. Retrieved from
https://www.business.vic.gov.au
State Planning Board. (2005). Report of the Study Report of the Working Group on Non-Banking
Financial Institutions in Kerala.
Sylvan Kornblum, Thierry Hasbroucq, & Allen Osman. (1990). Dimensional Overlap: Cognitive
Basis for Stimulus-Response Compatibility—A Model and Taxonomy. Psychological Review,
97(2), 253–270.
Yule, G. Udny, & Udny. (1897). On the Theory of Correlation. Journal of the Royal Statistical
Society, 812–854.

45th ALL INDIA ACCOUNTING CONFERENCE AND
INTERNATIONAL SEMINAR
ON ACCOUNTING EDUCATION & RESEARCH
9th to 10th December 2023
Organised by
Department of Commerce
University of Kerala,
Thiruvananthapuram &
Indian Accounting Association,
Kerala Branch
Technical Session One:

Voluntary Disclosures in the Corporate Sector
Technical Session Two:

Tax Incidence, Evasion, Avoidance and Detection
Technical Session Three:

Technology 4.0 and Accounting
International Seminar I
Accounting Education and National Education Policy
International Seminar II
Accounting Research
Prof. Gabriel Simon Thattil

Conference Secretary
Head, Department of Commerce
Dean, Faculty of Commerce
School of Business Management and Legal Studies,
University of Kerala, Thiruvananthapuram
Kerala- 695 581
Email: [email protected]
Mob: 9496275305
INDIAN
INDIAN JOURNAL
JOURNAL OFOFACCOUNTING
ACCOUNTING(IJA)
(IJA)VOLUME
VOLUME: :55
53(2)
(2)DECEMBER,
DECEMBER,2023
2021 ◆ 189
President Vice President (Sr.) Vice President (Jr.)
Prof. V. Appa Rao Prof. K. S. Thakur
Former Head and Dean Chairman, Board of Studies in Commerce Head, School of Commerce and Business
Department of Commerce & Executive Member Studies, Jiwaji University
Osmania University, Hyderabad-500007, Telangana Gwalior- 474011, Madhya Pradesh

PRESIDENT VICE PRESIDENT (Sr) VICE PRESIDENT (Jr)
Prof. Jasraj Bohra Prof. V. Appa Rao Prof. K. S. Thakur
Former Head & Dean, Chairman, Board of Studies in Commerce, Head,
Faculty of Commerce & Management Department of Commerce & Executive Member, School of Commerce and Business Studies,
Studies, Osmania University, Jiwaji University,
Jai NarainVyas University, Hyderabad- 500007, Telangana Gwalior- 474011, Madhya Pradesh
Jodhpur- 342011, Rajasthan
GENERAL SECRETARY TREASURER CHIEF EDITOR

Prof. Sanjay Bhayani Prof. Arindam Gupta Department of Prof. Gabriel SimonThattil
Dean, Professor and Head, Commerce,Vidyasagar University, Head, Department of Commerce,
Department of Business Management, Midnapore-721 102, West Bengal Dean, Faculty of Commerce,
Saurashtra University, University of Kerala,
Rajkot-360 005, Gujarat Thiruvananthapuram-695 581, Kerala
JOINT SECRETARY JOINT SECRETARY

Prof. Prakash Sharma Prof. Ashok Agrawal
Department of Accountancy and Department of Accountancy andBusiness
Business Statistics (ABST), Statistics (ABST),
PG School of Commerce University of PG School of Commerce
Rajasthan, Universityof Rajasthan,
Jaipur-302 004, Rajasthan Jaipur-302 004, Rajasthan
Prof. B. Banerjee Prof. Sudipti Banerjea Prof. K. Sasikumar

President Retired Professor Former Professor, Head & Dean
IAA Research Foundation Department of Commerce Department of Commerce
Kolkata (WB) University of Calcutta, Kolkata (W.B.)
University of Kerala
Thiruvananthapuram- 695581 (Kerala)
Jodhpur Elected
East Zone West Zone North Zone
Dr. Dharen Kumar V Pandey, Patna Prof. Shiv Prasad, Ajmer Result Not Declared due to technical issue
Prof. Satyajit Dhar, Kolkatta Dr. Shivraj Singh, Jaipur
South Zone Central Zone
Dr. G. Naresh Reddy, Hyderabad Dr. Ashish Mathur, Amarkantak
Dr. Ajesh S. R., Thiruvananthapuram Dr. Anshu Gupta, Gorakhpur
Hyderabad Elected
East Zone West Zone Nort Zone
Prof. Ashish Kumar Sana, Kolkata Prof. Abhay Upadhyay, Jaipur No Any Nomination Received
Dr. Sabat Kumar Digal, Bhubaneswar Dr. Ashish Mathur, Jodhpur
No Any Valid Nomination Received Dr. Gautam Prasad, Sagar
Prof. Entesham Ahmad, Lucknow

Gwalior Elected
Mr. Varun Kumar Rai, Patna Dr. Meenu Maheshwari, Kota Aamir Khan - 02 years, NCR
Prof. Manas Naskar, South Bengal Dr. Manish Vadera, Jodhpur Dr. Surender Singh - 02 Years, Delhi
Prof. Anil Kumar - 03 Years, Delhi
Dr. J. L. Gupta - 03 Years, NCR
Mr. Vishnu Gopal - 02 Years, Kerala Dr. Niraj Shukla, Lucknow
Dr. Swapana K. - 02 Years, Alappuzha Dr. Lakshi Narayan Koli, Gwalior
Dr. Komal S. - 03 Years, Karnataka
Prof. V. Ushakiran - 03 Years, Hyderabad
Gwalior Co-opted
Dr. Dilip Kumar Karak, Kolkata Dr. Manguram, Jodhpur Dr. J. K. Sharma , Shimla
Dr. Baneswar Kapasi, South Bengal Prof. K. A. Goyal, Jodhpur Dr. Sunil Gupta, Delhi
Dr. Rabindra Kumar Swain, Bhubaneswar Dr. Shailesh Ransaria, Saurashtra Dr. Kamal Kant, Chandigarh
South Zone Central Zone 45th IAA Conference Secretary
Dr. Indrakanti Sekhar, Hyderabad Prof. S.S. Bhakar, Gwalior Prof. Gabriel Simon Thattil, Thiruvananthapuram
Mr. Venkatesh Maddeni, Hyderabad Prof. Pushpendra Mishra, Lucknow
Dr. Nimmi Dev, Kerala Dr. Anuja Bhaduria, Gwalior
Special Invitee
Prof. Arindam Das, South Bengal Dr. (CA) K. Ch. AVSN Murthy, Hyderabad (Accounts)
Dr. Shilpa Varadia, Udaipur Dr. Anurag Agarwal, Lucknow
Dr. Barkha Rani, Jaipur Prof. Pramod Saxena, Agra
Dr. Anil Rathod, Akola Prof. Shurveer Bhanavat, Udaipur (NATSE)
Dr. R. P. Meena, South Harayana




43. Prof. M. L. Vadera, Jai Narain Vyas University Jodhpur

IJA Dec 2023

Uploaded by

Copyright:

Available Formats

IJA Dec 2023

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

IJA Dec 2023

Uploaded by

Copyright:

Available Formats

Volume 55

No. 02 December, 2023

Indian Accounting Association (IAA)

Gabriel Simon Thattil

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 1

Prof. Jas raj Bohra

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 3

PREDICTING CORPORATE FINANCIAL DISTRESS USING ALTMAN’S Z-

å 13 PERCEPTION ANALYSIS OF THE NON-BANKING SERVICE INDUSTRY AS

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 5

Dr. Bidhan Chandra Mazumder*

*Professor of Accounting, University of Chittagong, Chittagong - 4331, Bangladesh

**MBA Graduate, Department of Accounting, University of Chittagong,

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 1

2 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 3

4 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023

Samples Establi- Listin Product Locatio Financial

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 5

6 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 7

8 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023

Situations Zone of Discriminations Results

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 9

Source. Appendices 6-10. Calculations have been done by the authors.

10 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023

Name of the Company Period Z-score Zone of Discrimination

Malek Spinning Mills Ltd. 2020-21 2.18 Gray zone

Source. Appendices 6-10 and Table 3.

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 11

Source. Appendices 6-10.

12 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 13

14 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 15

16 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023

Samples’ Annual Reports:

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 17

Appendix 1. X1 = Working capital ÷ Total assets

18 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 19

20 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 21

22 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023

How Blockchain Works?

The main working processes of blockchain are asfollows:

The Structure of Blockchain

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 23

Proof of Work (PoW)

1 Carrying out an attack would be much moreexpensive.

24 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023

Figure No 3: Consortium blockchain

Blockchain technologies can be roughly divided intothree types.

Application of Blockchain Technology

INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023 ◆ 25

Smart Contract: Ethereum

26 ◆ INDIAN JOURNAL OF ACCOUNTING (IJA) VOLUME : 55 (2) DECEMBER, 2023

The Majority Attack (51% Attacks)

• The block verifying transaction should bestopped.