Financial Indicators for evaluating Going Concern assumption


  • Negative Net Worth
  • Negative Working Capital
  • Fixed Term borrowings approaching maturity without realistic prospects
  • Adverse Key Financial Ratios
  • Substantial Operational Losses
  • Substantial Negative Cash Flow from operations
  • Arrears of discontinuance of dividends
  • Inability to pay creditors on due date
  • Difficulty in complying with terms of loan agreement
  • Change from credit to cash on delivery system with suppliers
  • Inability to obtain financing for essential new product development
  • Entering into scheme of arrangement with creditors for reduction of liability

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