Networth Calculation for Sick Industrial Companies act

Sastry (Vice President Finance) (24 Points)

27 October 2010  

For  the purpose of calculation of networth to see if a company is sick in view of the provisions of the SICA

Networth = Equity +Free Reserves and surpluses - Accumulated losses

Question : In the above is the amount in Securities Premium Account (i.e amount recieved as premium when shares are issued) to be included along with Equity + Free reserves?

 

Sastry