NOLEGEIN-Journal of Financial Planning and Management

Evaluating Financial Performance: A Comparative Study of Selected Indian IT Companies

Vinamra Nayak — Thu, 17 Jul 2025 00:00:00 +0000

During the last 20 years, India's IT sector has been vital to the country's progress. It has helped tremendously in giving India a global standing that has improved people's lives by directly or indirectly supporting a wide range of business services, employment, top-notch technology, and a high standard of life. India's information and technology sector has expanded rapidly in recent years which makes it essential to understand how the IT companies are financially managed. The paper focuses on studying the financial performance analysis which offers a way to assess a company's capacity, stability, and profitability using its financial statements as a foundation. The main aim is to attempt examining the financial records of a selected Indian IT business, mostly via the use of specific ratios. The study is based on a secondary source of data and looks at the performance and financial status of three Indian IT companies (TCS, Infosys and HCL) during a five-year period (2018-19 to 2022-23). By examining key financial ratios—including those related to profitability, liquidity, solvency, and operational efficiency—this study aims to uncover the strengths and weaknesses of the selected companies, as well as potential areas for enhancement. The insights gained are intended to support investors, stakeholders, and policymakers in making well-informed decisions grounded in the financial performance of these prominent IT firms.

Investor Confidence in Finance: Challenges of Earnings Management and Accounting Manipulation

Nasika Lakshmi, Rukma Ramachandran — Mon, 15 Sep 2025 00:00:00 +0000

Investor confidence forms the cornerstone of any financial market, and in India, this trust has been repeatedly challenged by episodes of earnings management, corporate fraud, and accounting manipulation. Despite advances in regulatory mechanisms and corporate governance, recent scandals from 2023 to 2025 reveal persistent vulnerabilities that compromise market integrity. This study investigates prominent Indian cases, including the IndusInd Bank derivative accounting lapse, the cooperative credit fraud at DMCSL in Beed, the large-scale real estate fraud in the Nexa Evergreen scheme, and multi-level investment scams across states. Together, these scandals demonstrate how financial misreporting, deceptive practices, and weak oversight continue to cause significant investor losses and erode trust in institutions. The paper examines how managers manipulate earnings to project financial stability, how auditors fail to identify irregularities, and how regulatory enforcement remains slow and reactive. For example, IndusInd Bank overstated profits by nearly ₹1,960 crore, while cooperative and real estate scams wiped out savings of tens of thousands of small investors. These incidents highlight systemic weaknesses, ranging from poor financial literacy among retail investors to inadequate technological surveillance by regulators. By synthesizing literature and case evidence, the study identifies recurring patterns of manipulation and investor exploitation. It emphasizes the urgent need for reforms, such as strengthening auditor independence, deploying artificial intelligence and blockchain for real-time monitoring, and enhancing whistleblower protection. The findings highlight that investor education is equally important, as many victims are lured by unrealistic promises of high returns. The study concludes that protecting investor confidence in India requires collective responsibility: regulators must tighten enforcement, auditors must uphold integrity, corporations must adopt transparent reporting, and investors must be better informed. Only through these coordinated measures can the credibility of India’s financial markets be safeguarded in the long run.

Green Bonds: Performance Analysis of Investment Potential and Environmental Contribution

Abha Gupta, Sanskriti Gupta — Sat, 26 Jul 2025 00:00:00 +0000

This study explores the dual aspects of green bonds: their investment potential and environmental contributions. Green bonds, financial instruments designed to fund environmentally sustainable projects, are evaluated for their role in aligning financial growth with sustainability objectives. By analyzing the financial performance of green bond-issuing companies through a detailed ratio analysis, focusing on profitability, liquidity, and operational efficiency. Using data from Utique Enterprises Ltd., Toyota Financial Services India Ltd., and Tesla Transformers Ltd., the research evaluates key metrics such as Return on Capital Employed (ROCE), Current Ratio, Net Profit Margin, Return on Net Worth (RONW), and Return on Total Assets (ROTA) over a five-year period (2019–2024). The findings reveal significant variability across the companies. Utique Enterprises Ltd. demonstrated severe financial distress with declining profitability and asset efficiency, despite improved liquidity. Toyota Financial Services India Ltd. exhibited inconsistent performance, struggling with liquidity but showing signs of recovery in profitability. Tesla Transformers Ltd. showed. high volatility in all ratios, indicating financial instability despite achieving some gains in sustainability investments. The analysis highlights the challenges companies face in maintaining financial stability while aligning with sustainability goals. The results emphasize the need for robust financial management and strategic planning to balance profitability with environmental commitments, ensuring the long-term success of green bond-funded initiatives.

The Effect of Corporate Social Responsibility Practices on Financial Performance: Evidence from Selected Star Hotels in Hawassa

Abualem Mengistu — Sat, 19 Jul 2025 00:00:00 +0000

This research investigated the effect of Corporate Social Responsibility (CSR) on the financial performance of selected star hotels in Hawassa City, employing an explanatory research design and quantitative methods. The study focused on five CSR dimensions: Environmental Sustainability Practices (ESP), Community Engagement Practices (CEP), Philanthropy and Charity Practices (PCP), Employee Well-being Practices (EWBP), and Ethical Business Practices (EBP). Data were collected through questionnaires from seven selected star hotels, achieving a high response rate of 97.75% (87 out of 89 distributed), with 85 valid responses analyzed, representing a completion rate of 95.50%. Correlation analysis revealed strong positive relationships between financial performance (FP) and the CSR dimensions, with Pearson correlations of 0.792 (ESP), 0.646 (CEP), 0.497 (PCP), 0.868 (EWBP), and 0.792 (EBP), all significant at p < 0.01. Regression analysis showed the model explained 90.3% (R² = 0.903) of the variance in financial performance, identifying Ethical Business Practices (EBP) as the only significant predictor (β = 0.468, t = 2.357, p = 0.021). Other dimensions like ESP (p = 0.168), CEP (p = 0.149), PCP (p = 0.806), and EWBP (p = 0.161) were not statistically significant. The findings highlighted that while various CSR practices were positively correlated with financial performance, Ethical Business Practices (EBP) had the most substantial impact. Thus, hotel managers should have emphasized ethical practices to improve financial outcomes while maintaining social responsibility. Recommendations included incorporating CSR into strategic planning, investing in sustainability, enhancing community engagement, supporting philanthropy, and improving employee well-being to achieve better financial performance and fulfill CSR commitments effectively.

Assessing the Development, Effectiveness, and Sustainability of SBI in the Post-Epidemic Era

P. Venkataiah — Sat, 27 Sep 2025 00:00:00 +0000

This study examines the financial performance of the State Bank of India (SBI) over the recent five‐year period (FY2020–FY2025), focusing on profitability, asset quality, capital adequacy, efficiency, and growth. Using secondary data from SBI’s annual reports and industry publications, key financial ratios are analysed to evaluate trends in Return on Assets (ROA), Return on Equity (ROE), Net Interest Margin (NIM), Non‐Performing Asset (NPA) ratios, Cost‐to‐Income ratio, and other indicators. The study finds that SBI has shown substantial improvement in asset quality (declining gross and net NPAs), strong growth in profitability and capital adequacy, though efficiency and margin pressures remain. Major challenges such as rising deposit costs, competition, regulatory compliance, and digital transformation are identified. The paper concludes with suggestions for sustaining growth and improving efficiency. The study also identifies several enduring challenges that continue to affect SBI’s performance. Operational efficiency, reflected through the cost-to-income ratio, remains under strain due to increasing operating expenses and compliance requirements. In addition, margin pressures arising from higher deposit costs and competitive lending rates limit the growth of interest income. The fast-paced digital transformation within the banking sector, coupled with mounting competition from private banks and emerging fintech firms, further intensifies the strategic hurdles SBI must address to preserve its market leadership. In conclusion, the paper emphasizes the necessity for SBI to enhance its digital infrastructure, implement advanced risk management frameworks, and pursue cost rationalization strategies in order to ensure sustained profitability and long-term growth. Broader policy implications for public sector banks are also highlighted, stressing the importance of continuous innovation, customer-centric approaches, and regulatory preparedness in a rapidly evolving financial environment. Overall, the study offers a nuanced understanding of SBI’s financial performance and provides valuable recommendations for policymakers, regulators, and industry stakeholders

AI in Finance: Fraud Detection and Risk Assessment

Kuldeep Singh , Sukhwinder kaur, Manpreet Kaur — Sat, 05 Jul 2025 00:00:00 +0000

Artificial Intelligence (AI) is changing how the financial world spots scams and handles risks. It acts like a super-smart helper, catching trouble fast—whether it’s crooks stealing money or loans going sour. This paper explores how AI helps banks and companies stay safe, digs into what experts have learned, and look at what’s coming next. We also ask a big question to guide future work, all in simple words anyone can follow. This study examines the expanding role of Artificial Intelligence (AI) in enhancing the security of financial institutions, with a particular emphasis on its use in fraud detection, risk evaluation, and overall financial protection. It explores fundamental AI techniques such as machine learning, neural networks, and predictive modeling that drive innovation in the financial sector. The paper also showcases real-world applications and findings from both Indian and international research efforts. In addition, it underscores the need for transparency, fairness, and accountability in deploying AI to ensure ethical practices. By analyzing current developments and emerging challenges, the paper offers insights into the future potential of AI in finance and presents a key question to steer further research, aiming to ensure that AI continues to serve the interests of both financial entities and their clients.

Effect of Artificial Intelligence (AI) on Financial Management: A Review

Showkat Ali Ganai — Sat, 19 Jul 2025 00:00:00 +0000

Financial decision-making methods, predictive analysis, and risk management are the focal points of this study's examination of artificial intelligence's (AI) impact on financial control. This research uses a systematic literature review approach to look at the major shifts that have occurred because of AI's implementation in the banking industry, namely in terms of operational performance, financial decision-making, and customer experience. While there are clear benefits to using AI in financial management, this research also highlights some of the risks, ethical difficulties, and concerns related to data protection and adoption, as well as the need for changes to regulations and policies. Organizations and governments may use the findings of this research to better navigate the revolutionary changes in financial management brought about by the digital era. While the advantages of AI in financial control are evident, this study also brings attention to several significant challenges. These include ethical dilemmas, concerns over data security, potential biases in algorithms, and the opaque nature of AI-driven decision-making processes, all of which hinder its broader acceptance. The research further emphasizes the urgent need for updated regulations and policy frameworks to guide the ethical and effective use of AI in financial systems. The study concludes that for AI to be successfully integrated, both corporate entities and government bodies must strike a careful balance between promoting technological advancement and ensuring transparency, fairness, and public confidence. Ultimately, this research offers an in-depth analysis of both the potential benefits and inherent risks of AI in the realm of financial management. It provides valuable recommendations for policymakers, financial organizations, and tech developers as they work to adapt to and shape the evolving digital landscape of financial control