SICA defined a sick industrial unit as one that had existed for at least five years and had incurred accumulated losses equal to or exceeding its entire net worth at the end of any financial year.
As per SICA, 2003 Net worth means sum total of paid up capital & free reserves less of provisions and expenses
My doubt-
1. To arrive at the net worth can accumulated losses be reduced ??
2. Will Foreign currency translation reserve which is not a free reserve form a part in calculation of net worth ??
Please help
CAclubindia
