Hi friends its verrrry urgent so do reply plzzzzz.
I need to know what are the provision presently aaplicable to a company where its losses are more than 50% of net worth. Also confirm whether that is required to be mentioned in Compliance Certificate or not.
Regards
Please clarify the follwoing queries:-
whether the Company has been registered for a period of more than 5 years?
Whether the accounts have been finalised and audited?
If the answer to above queries is yes, then as per my knowledge the Company has become a Sick Industrial Company as the accumulated losses have exceeded the net worth of the Company and teh Board is required to refer the case to BIFR, within 60 days of the finalisation of the Accounts.
The BIFR shall enquire and decide whether the Company has become SIck Industrial COmpany and may provide revival plans.
Secondly, the fact that a Company has become a Sick Industrial Company is not required to be mentioned in CC, however it is the duty of the Auditor to mention about the sickness of the Company in Auditor's Report.
Dear experts please correct me if I am wrong.
Regards
Priya Sharma
CAclubindia
