A Measure Of Deceitful Fiscal Transactions In Indian Steel Companies By Using Beneish M- Score

Abstract

Profit or financial performance give stakeholders of a firm/company/organization information about its growth and positive output. Management decision making is fully demanded on the data provided by finance and accounting procedures. Financial results motivates employees as well as outsiders of a company, therefore management of profitability and disclosure is the most confrontational and important activity globally. The purpose of this paper is to find out financial data from a company's result, which has been manipulated and its degree of changes. Data is collected from the Steel sector in India. Analysis has been done on top 10 steel companies and for a period of 5 years (2017-22). The Beneish Model has been used to calculate the mal-practicing in accounting reports in these companies. This model is based on various financial  ratios.  The paper screens the development of the operation with earnings in the given sector (enterprises tend to manage earnings upwards), and analyzes the influences of macroeconomic factors on the phenomenon of earnings management. The detection of earnings management by M-score helps protect business partners of an enterprise against fraudulent behaviour, especially in the global environment.