The assets of Standard Sugar Co. were acquired by the Government on1st April , 2000 and the company received a compensation of Rs.10 crores . The also not ventured into any otherbusiness as on the date of acquisition and has also not ventured into any other business after aquisition of assets . The company placed the amount so received in a fixed deposit with a bank , whichis a lying deposited with the as on date also . It has also filed a case in the Court seeking higher compensation. Is the company a going concern?

The assets of Standard Sugar Co. were acquired by the Government on1st

1.	The assets of Standard Sugar Co. were acquired by the Government on1st April , 2000 and the company received a compensation of Rs.10 crores . The also not ventured into any otherbusiness as on the date of acquisition and has also not ventured into any other business after aquisition of assets . The company placed the amount so received in a fixed deposit with a bank , whichis a lying deposited with the as on date also . It has also filed a case in the Court seeking higher compensation. Is the company a going concern?
Answer» Solution :The company is not a going concern because it has not commenced anybusiness post acquisition . The company is only seeking higher compensation and not quashing the acquisition order of the GOVERNMENT . It has invested thecompensation RECEIVED in the FIXED DEPOSIT which remains deposited as on DATE also . Thus , the company does not have intentions to conduct the business .

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