The financial statements have been prepared on the going concern basis. This assumes that the company will continue in operational existence for the foreseeable future.
At the balance sheet date, the company's liabilities for the year ended 30th November 2019 exceed its assets. The directors of the company have sought assurance from the creditors that their debts will not be called in within the next twelve months.
The directors have therefore deemed it appropriate that the financial statements be prepared on the going concern basis.