Financial indications(a) high gearing or a net liability...

Financial indications

(a) high gearing or a net liability position;
(b) fixed-term borrowings approaching maturity without realistic prospects of renewal or repayment;
(c) reliance on short-term borrowings to finance long-term assets;
(d) adverse key financial ratios: working capital ratio, gross profit ratio, times interest earned, return on equity, inventory turnover etc.;
(e) lack of sustainable operating profits or cash flows from core business activities;
(f) arrears or discontinuance of dividends;
(g) inability to pay creditors on due dates;
(h) excessive reliance on transactions with related parties;
(i) potential losses on long-term contracts or other uneconomic long-term commitments;
(j) difficulty in complying with the terms of loan agreements or the need to restructure debt;
(k) denial of usual trade credit from suppliers;
(l) inability to obtain financing for necessary new product development or other necessary investments, or conversely, over-investment in new products, ventures or research which are not yet successful;
(m) need to seek new sources or methods of financing or to dispose of substantial assets; and
(n) reduced funding from government.