{
  "url": "https://openlegislation.uk/eu-decision-2012-838/annex/division-2/division-4/division-4.2/division-4.2.1/division-4.2.1.1",
  "json_url": "https://openlegislation.uk/eu-decision-2012-838/annex/division-2/division-4/division-4.2/division-4.2.1/division-4.2.1.1.json",
  "legislation": "eudn/2012/838",
  "legislation_title": "Commission Decision of 18 December 2012 on the adoption of the Rules to ensure consistent verification of the existence and legal status of participants, as well as their operational and financial capacities, in indirect actions supported through the form of a grant under the Seventh Framework Programme of the European Community for research, technological development and demonstration activities and under the Seventh Framework Programme of the European Atomic Energy Community for nuclear research and training activities (Text with EEA relevance) (2012/838/EU, Euratom) (revoked)",
  "legislation_url": "https://openlegislation.uk/eu-decision-2012-838",
  "path": "annex/division/2/division/4/division/4.2/division/4.2.1/division/4.2.1.1",
  "kind": "division",
  "number": "4.2.1.1",
  "heading": "For legal persons",
  "text": "This more in-depth financial analysis will consist of an extended analysis of the financial viability of the legal entity.\nThe 5 following ratios will be used:\nAccording to the results obtained for each of the abovementioned ratios, the following quotes are given:\nExceptions:\nThe following rules are applied for the special cases where the ratio contains a zero denominator or numerator:\nFinancial autonomy:\nIf GOP ≤ 0, the result shall be -1 with weak qualifications.\nThe Interest paid cannot be negative.\nProfitability (2):\nIf NOP = 0, the result shall be 0 with weak qualifications.\nIf the Turnover = 0, the Operating income shall be used for the calculation.\nIf the Operating Income = 0 or negative, the result shall be 0 with weak qualifications.\nTurnover cannot be negative.\nAny legal entity subject to a verification of its financial capacity who obtains under a more in depth financial analysis a minimum of 4 points as a result of its financial viability check will be considered to have a ‘positive’ financial capacity, unless it is subject to one (or several) of the situations mentioned in section 4.1.",
  "extent": "E+W+S+N.I.",
  "status": "repealed",
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Decision revoked (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Revocation and Sunset Disapplication) Regulations 2023 (S.I. 2023/1143), reg. 2(3), Sch. 2 Pt. 2"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eudn/2012/838/annex/division/2/division/4/division/4.2/division/4.2.1/division/4.2.1.1",
    "retrieved_at": "2026-11-01T15:15:13.177377+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}