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<p>Share Capital = 27</p> <p>current Account = 11</p> <p>Accumulated Losses = -183</p> <p>Revaluation Reserves = 316</p> <p>Term Loan = 138</p> <p>Current Borrowings = 35</p> <p>Creditors = 12</p> <p>Accrued exp & other</p> <p>payables = 37</p> <p><strong>Total = 395</strong></p> <p>Assets</p> <p>Land and Building =377</p> <p>Investment in Subsidiary = 8</p> <p>Debtors = 8</p> <p>Investory, bank etc = 2</p> <p><strong>Total =395</strong></p>
1. Very Low investment by the promoters and Very High amount of Term Loan: Servicing interest is very tough.
2. It has diverted the funds in its subsidiary -when this it self find it difficult to operate.
3. Strong chances of a Window dressing as the accumulated losses tried to wipe-off with revaluation of assets and reserve build up.
4. The chances of the Term Loan siphoned to other activities.
5. It faces a threat of Compulsory winding up.
6. No working capital: Even there is no building up of Inventory when the figures of Creditors and Payable are compared.
7.Seems to be not genuine because of negative intentions.
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