Abstract:
The financial position of listed companies is an issue that every stakeholder is concerned about very
much. The management of the companies tries every means to improve the company’s financial position,
and hopes to maintain good trends in the future. Investors also pay close attention to companies’
financial position and the investment decisions they make are based on this. The study is about the
investigation of financial soundness of listed manufacturing companies for a period of 5 years, i.e. from
2003 to 2007. The test of soundness as revealed by Z score (Altman’s model) showed that the selected
companies were on the verge of failure. In order to save the companies from total bankruptcy, their
financial position should be improved without any further delay. To this aim, therefore, the necessity of
qualified trained and experienced management personnel, government realistic measure, participative
management, supply of adequate working capital, setting realistic goals, rectifying the accountability,
motivating the achievement of performance and imposing penalty for non-achievement must be ensured in
the sample of selected listed companies. Hence, the appropriate authority should take immediate
measures for the removal of bankruptcy.
