Abstract: Retail homebuyers usually end up making erroneous buying decisions due to a lack of financial awareness. The case introduces the example of one of India’s leading multinational firms in the Indian real estate sector – Jaypee Infratech Limited. It discusses the issues that led to the downfall of the company and the dramatic sequence of its CIRP along with the pain & mistake of homebuyers in analyzing the company’s financial statements and other key parameters.

Learning Objectives

The students will be able to develop an understanding of the below-mentioned concepts after going through this case:

1. Review the reasons behind the failure of Jaypee Infratech.
2. Identification of insolvency indicators through financial statement analysis.
3. Application of the Altman Z Score and Merton model to assess the probability of default by a firm.
4. Examining the role of rating agencies in the case of NPAs.
5. To do fundamental and technical analysis of a company