Published Online:July 2025
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP160725
DOI:10.71329/IUPJARAP/2025.24.3.331-354
Author Name:Deepanjali Sinha, Sharan Shivram Iyer, Yashika Rane and Abhay Kumar
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:331-354
This paper examines the credit risk position of companies from entertainment and media industry, providing invaluable insights to stakeholders. To assess financial instability and distress, multimodal analysis is performed using three credit risk models: Springate, Grover and Zmijewski. Six Indian listed companies—PVR INOX Ltd., Sun TV Network Ltd., Zee Entertainment Enterprises Ltd., Saregama India Ltd., DEN Networks Ltd., and Prime Focus Ltd.—were selected for financial health assessment. With the help of financial ratios derived from balance sheets and profit-and-loss statements of these companies for the past 10 years (2015-2024), the study offers a comparative examination of these companies’ creditworthiness based on the abovementioned three models, and uses descriptive and regression analysis to identify the most suitable model for predicting financial distress across companies. The findings provide insights on the insolvency/bankruptcy position of these companies and the sector-specific financial vulnerabilities. While these models are extensively employed in industries such as manufacturing and banking, this empirical study applies them to India’s entertainment sector.
The Indian entertainment industry is a rapidly evolving sector, influenced by technological advancements, shifting consumer preferences, and the emergence of new distribution channels (Barathi et al., 2011).