CASIRJ Volume 9 Issue 4 [Year - 2018] ISSN 2319 – 9202 International Research Journal of Commerce Arts and Science http://www.casirj.com Page 273 AccuracyofBankruptcy Prediction Models in Indian Context-A Study Mohmad Mushtaq Khan 1 , Dr. Syed Khaja Safiuddin 2 1 Ph.D Research Scholar MANUU, 2 Sr. Asst. Professor, Department of Management Studies MANUU,Hyderabad Email: mushtaq42@gmail.com Abstract Bankruptcy affects your income, employment and business, so what if we could know well in advance if a business is going bankrupt? There are many financial models available for prediction of corporate bankruptcy and among these Altman Z-score and Zmijewski are two popular models even today despite being developed decades ago. These models have gained importance because of the increasing bankruptcy filings. The present study aims to know the accuracy of these two models in Indian context by using the financial data of kingfisher airlines, which will be compared with the other airline company i.e. Indigo. We know that Kingfisher airlines does not exist anymore and Indigo is a leading airline company in Indian aviation sector. The study will use the financial data of one bankrupt company (Kingfisher) and one non bankrupt company (Indigo) to know the applicability of these two popular models in Indian context. The study aims at knowing the accuracy of these two models in predicting bankruptcy. Key words: Bankruptcy, Insolvency, Altman model, Zmijewski model. Introduction Being able to know if a company is going bankrupt will be of great help to various stake holders associated with the company. Historically many bankruptcy models have been developed and many models are popular even today despite being developed decades ago. Two popular models of bankruptcy prediction Altman Z-score and Zmijewski models were developed long ago but there are still used widely all over the world especially in academic field. The reason for selecting these two models for checking their predicting capability is their popularity. The study aims at knowing the bankruptcy predicting capability of these two models in Indian context. Both these models differ on input variables, statistical methods and weight of different parameters. In order to do so, a sample of two Indian airline companies is selected, one company which is already liquidated and other is running smoothly. This research applies bankruptcy predicting models to a sample of two companies. The purpose is to see if these models hold well in Indian context.