sakshi (CS) (261 Points)
06 April 2011Dear All
I have a query about sick industrial company.
One of our Company is going into huge losses and the borad is of the opinion that it is just and equitable to close the company.
I wanted to know what is the procedure for declaring that the company has become sick or is potential to be called sick.
Kindly provide is there is any check list.
Regards
SkDash
(CS (Member) CWA (Final))
(909 Points)
Replied 06 April 2011
Sakshi- pl have a look to the SICA (Sick Industrial Companies Act, 1985).
To declare a co as sick or potential sick, u must have to come under the crieteria set by the Act. Then u can refer the co to BIFR. or simply advise yr promoters to amalgamate the co with any of yr earning co so that the accumulated loss can be adjusted with the profit of the other co and u will get the tax advantages.
CAclubindia
