Is the company 'sick'

The net worth is calculated as sum total of paid up capital and free reserves of a company less the provisions and expenses, as may be prescribed. However, an industrial unit is also regarded as potentially sick or weak unit: if at the end of any financial year, it has accumulated losses equal to or exceeding 50 per cent of its average net worth in the immediately preceding four financial years and has failed to repay debts to its creditor(s) in three consecutive quarters on demand made in writing for such repayment.

Preet

Thanks for your response. Please comment in this case if it is a sick company.

I dont think it is sick company in ur case. U can check whthr net wrth is +ve or -ve by deducting expenses nd provisions