Contemporary Business: Problems and Prospects

This paper explores the challenges faced by the corporate world in light of increasing frauds and failures, specifically focusing on the case of Dewan Housing Finance Corporation Limited (DHFL). By analyzing DHFL's financial statements over a five-year period (2015-2020), the study evaluates the company’s financial health and the role of corporate governance in preventing distress. The paper delves into the fiduciary responsibilities of the board, corporate fraud, and the risks posed to investors. The analysis is enriched with theoretical perspectives on corporate ethics, governance, and the application of Altman’s Z-score as a predictive tool for bankruptcy risk.

In recent years, corporate frauds and failures have highlighted significant gaps in corporate governance and financial reporting, raising questions about the legitimacy of published financial statements. This paper examines the financial health of Dewan Housing Finance Corporation Limited (DHFL) over a five-year period (2015-2020), assessing its performance using Altman’s Z-score to predict bankruptcy risk. The study discusses the fiduciary responsibilities of the board, ethical issues, and the impacts of corporate fraud on stakeholders, particularly investors. Drawing from literature on corporate governance and ethics, the paper offers insights into the prevention of financial distress and the importance of transparent financial practices.

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