Do you think the balance sheet presented by a company in connection with a credit application reflects the real situation ?

Based on the authenticity of the information that is provided by the applicant entity and on the basis of the credit analysis ratios such as current asset / liability ratios, Debt Equity ratios and various other key ratios we can derive a good picture on the credit borrowing capacity of the applicant. So in a nutshell we can take a decision on the applicant based on the balance sheet provided by them.