WITH THE FOLLOWING DATA CAN YOU CONFIRM WHETHER THE COMPANY IS A SICK COMPANY OR NOT-
AS PER PROFIT & LOSS ACCOUNT
LOSS BEFORE TAX 1400 LAKHS
DEFFERRED TAX ASSET 260 LAKHS
LOSS AFTER TAX 1140 LAKHS
LOSS BROUGHT FORWARD
FROM PREV YEAR 1074 LAKHS
LOSS TO BE CARRIED TO
BALANCE SHEET 2214 LAKHS
BALANCE SHEET
SHARE CAPITAL 2732 LAKHS
RESERVES&SURPLUS:
INVESTMENT AND CAPITAL
SUBSIDY 424 LAKHS
GENERAL RESERVE 800 LAKHS
LOSS IN P&L A/C -2214 LAKHS
TOTAL RESERVES&SURPLUS -990 LAKHS
A)WHETHER WE CAN INCLUDE INVESTMENT AND CAPITAL SUBSIDY IN CALCULATION OF NETWORTH
B)AS PER SICK INDUSTRIAL COMPANIES ACT-IF ACCUMULATED LOSSES EXCEEDS NETWORTH OF THE COMPANY IT BECOMES SICK COMPANY
IN THIS CASE ACCUMULATED LOSSES AMOUT IS 2214 LAKHS AND NET WORTH IS 1742 LAKHS (SHARE CAPITAL 2732 LAKHS-RESERVES SURPLUS -990 LAKHS)-WHETHER NET WORTH CALCULATION IS CORRECT
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