- Frequent request for exceeding limit
- Frequent request for ad hoc
- Inward cheque return
- Outward Cheque return
- Stop payment of cheques
- Non routing of sales through the account
- Poor operation
- Short fall in DP
- Devolvement of L/C
- Invocation of BG
- DPG installment not paid in time
- Non service of interest
- Nonpayment of installments
- No operation-dormant
- Operating with other bank / other non-consortium banks
- Bills send for collection returned unpaid
- Delivery of documents free of payment
- Non retiring of inward bills in time
- Return of inward bills
- Insurance expired
- Overdue packing credit
- Frequent request for extension of Packing credit
- Family feud
- Quarrel among directors /partners
- Lack of succession plan
- Adverse market report
- Fall in turn over
- Fall in DER
- Fall in NWC
- Fall in current asset turnover ratio
- Piling of finished stocks
- High intangible assets
- Increase in non-current assets
- Investment in associate concern
- High loans and advances given
- Cash losses
- Bad debts
- Unplanned expansion
- Fall in market share
- Change in govt policies
- Non submission of stock/BD statement
- Non co-operation for stock inspection
- Non-cooperation for stock audit
- Non-cooperation for inspection collaterals and valuation thereof
- Submitting different statements to different lenders
- Non supply of proper information on stock statements
- Obsolete goods
- Disproportionate/ huge spares and stores
- Valuation of collaterals old
- Noncompliance of terms and condition
- Acceptance of terms and conditions not taken
- Imperfection of mortgage
- Vetting of documents not done
- Credit rating delayed
- ROC not filed
- Guarantor not signed documents
- Overdue for renewal
- Non submission of MSOD/QIS
- Non submission of financial papers
- Non submission of renewal papers despite reminders
- Diversion of funds
- Siphoning of funds
- Willful defaulters
- Frequent change in balance sheet dates
- Frequent change of auditors
- Changing focus on business
- Long ailment of key person/family members
- Non achieving targeted turn over
- Fall in current ratio
- Erosion of Net worth
- Fall in interest coverage ratio
- Stretched receivables
- High WIP
- Increase in investments
- Frequent revaluation of assets
- Investment in non-business related activities
- Operating losses
- Accumulated losses
- Low capacity utilization
- Job work
- Natural calamities
turning bank aspirants into bankers
Suggestive List of Early Warning Signals (EWS)
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