Financial Distress is the stage before Bankruptcy where the firm finds itself in difficult situation to pay obligation to its creditors and other stakeholders.The early recognition of it helps firm to get relaxation from its danger zone.The prediction of financial distress and corporate insolvency has been the matter of talk throughout the world. A lot of publication has been issued and lots of results have been represented. New techniques and methodology are created constantly. But very few studies are conducted considering Indian context due to limitation of scare of information available. Raising rate of in-debtness of Indian Companies directing towards corporate leverage is one of the leading motivating factor for researcher. Therefore the basic purpose of the research is to come up with the model that can estimate the probability of failure or distress of Indian companies by evaluating its occurrence of failure using multiple discriminant analysis. Researcher has re estimated the coefficient for developing the model.