This study tries to give the evidences of companies which manipulate their earnings through financial shenanigans. Financial shenanigans are the gimmicks used to misrepresent the financial statement through wrong accounting practices and cleverly changing the accounting policies to show a better financial health of companies when actually they do not have sound financial health. This study specifically gives evidence of companies which were using aggressive accounting practice to cheat the investors and other stakeholders. This study also states the measures to be taken by investors or analysts while analysing the financial statement. This study has also given a case study of Indian Oil Corporation as an illustrative purpose. In this study some advanced models like M score and Z score are used to predict possibility of earnings management and financial distress of companies. This study finds empirical evidence that companies are cleverly manipulate the accounting GAAPs to misrepresent the company’s position and fulfil the expectation of the stakeholders. This study specifically analyses the warnings signs to be checked with a case study of IOCL. Though this study we conclude that up to a certain extent we can predict the financial distress of companies and take measures accordingly to save us from financial loss. The findings of the study also suggest the companies to use these techniques to know about their real position and take appropriate decisions to save company from collapse. The main purpose of the study to apply the advance measures of financial statement analysis in Indian context as there are very few studies have been done and some area are still remain as grey area like study of the Indian corporate which are likely to be earnings management through wrong accounting practices.