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This study aims to examine the impact of intellectual capital (IC) on default risk in Indian companies listed on the National Stock Exchange.

This study applies panel data regression analysis to derive a relationship between IC and default risk for the sample period 2013–2022. The value-added intellectual coefficient (VAIC) of Pulic (2000) has been applied to measure IC performance, and default risk is estimated using the revised Z-score model of Altman (2000).

The results revealed a positive association between Z-score and VAIC. It implies that a higher value of VAIC improves financial stability and leads to a lower likelihood of default. The findings further suggest that new default forecasting models can be experimented with IC indicators for better default prediction.

The findings can have implications for investors and banks. This paper provides evidence of IC performance in improving the financial solvency of firms. Investors and financial institutions should invest their resources in a healthy firm that effectively manages and invests in their IC. It will eventually award investors and creditors high returns through efficient value-creation processes.

This study provides evidence of IC performance in improving the financial solvency of Indian high-defaulting firms, which lacks sufficient evidence in this domain of research. Numerous studies exist examining the relationship between firm performance and IC value, but this area is inadequately focused and underresearched. This study, therefore, fills the research gap from an Indian perspective.

Through this case, participants will be able to:

▪ understand the different approaches to preparing operating budgets;

▪ classify the costs based on traceability to its cost centres;

▪ understand the difference in budget preparation and its analysis under different cost centres;

▪ put together the required information, identify the format and prepare major operating budgets; and

▪ evaluate operating budgets and give suggestions to the company based on budget analysis.

This case is about a manufacturing company that is going to introduce a budgeting system. It highlights the process of information collecting from key employees for budget preparation. This case also deals with various decisions to be made during the implementation of the new system such as the context of budgets, cost units and sequence of budgets.This case will help students to enhance their understanding of the operating budgets. The students will able to visualize the difficulty faced by companies to implement a new system.

This case is applicable in the courses such as Master of Business Administration, Master of Commerce or other postgraduate studies. This can also be discussed in professional courses such as Chartered Accountants, Certified Management Accountants, Company Secretaries, Institute of Cost and Works Accountants of India and Chartered Financial Analysts.

Teaching Notes are available for educators only.

CSS 1: Accounting and Finance.

The purpose of this study is to learn how the incorporation and use of leanness, agility and innovation in Indian manufacturing micro, small and medium enterprises (MSMEs) affect their bottom lines and how much these factors contribute to the MSMEs’ ability to meet their long-term sustainability goals.

The suggested model was subjected to data validation and additional empirical validation using a sample of 411 Indian manufacturing MSMEs. The analysis of construct measures is conducted through the utilization of confirmatory factor analysis, a statistical technique that is grounded in the theoretical framework of structural equation modeling (SEM). In addition, path model analysis was applied for the purpose to validate the assumptions that were included in the structural models.

Consistent with the proposed model, the findings of this study demonstrate that leanness, agility and innovation have a substantial favorable impact on the sustainability of a company’s performance. These findings may be helpful in gaining professionals, academics and policymakers to acknowledge the significance of leanness, agility and innovation in enhancing the long-term sustainability of MSMEs and enhancing the overall performance of a particular company. This research excluded the service industries-based research papers.

Many research in the field of manufacturing industries that have adopted leanness, agility, innovativeness and sustainability as individual approaches or as a collective methodology of two or more were considered in the current study. This research excluded the service industries-based research papers.

This literature review has recognized and analyzed various dimensions and roles of leanness, agility, innovativeness and sustainability that are prevalent in manufacturing industries that include the positive and negative effects on the performance of the industries. The research enlightens the path and shows future directions for research to develop efficient, effective and sustainable manufacturing industries.

By promoting the concept of focusing on the “human factor”, namely, stakeholder perspectives, the MSME sector is propagating a strategy that moves away from an excessive focus on technology and toward a more humane one. Through the application of the three key concepts of leanness, agility and innovation, this work aims to create a framework for measuring the sustainability performance of micro-, small- and medium-sized enterprises (MSMEs), with the ultimate goal of assisting the country in achieving the Sustainable Development Goals in the fields of industry, innovation and infrastructure by supporting environmentally friendly and resource-conserving businesses that give back to society and the natural environment.

The objective of this research is to assess the importance and effectiveness of integrating various approaches such as leanness, agility, innovativeness and sustainability within the framework of manufacturing micro, small, and medium enterprises (MSMEs). The authors hope that by going further into these concepts, they will be able to broaden their understanding and get a more comprehensive insight into the role that these concepts play and how they might be successfully used within this environment.