The following actions of the unit indicate that the unit is sick or going to be sick:
·
Continuous irregularity in cash credit accounts ;
·
Low capacity utilization;
• Profit fluctuations, downward sales and fall in
profits followed by contraction in the share market;
·
Failure to pay statutory liabilities;
·
Larger and longer outstanding in the bills accounts;
·
Non submission of periodical financial data /stock
statement etc. in time;
·
financing capital expenditure out of funds provided for
working capital purposes;
·
Rapid turnover of key personnel;
·
Existence of large no. of law suits against a company;
·
Rapid expansion and too much diversification within a
short time;
·
Any major change in the share holdings.