Urgent

I don't remember exactly, but as per SICA I think if the accumulated losses exceed 50% of net worth, then the company is sick.  I am not sure if anything has changed or not.

MAT doesn't come until the year after the company wipes off its losses.

Sick Industrial Undertaking:  3  Conditions prescribed -U/s 3(1) (o) of SICA 

1. It should be Industrial Comapny

2. Registered for 5 years or more.

3. Accumulated losses > Net worth ( Paid up Capital + Free Reserves.

For such companies its Board of Directors ( or RBI, CG, State Govt Financial Institute etc. ) may make a reference to BIFR. BIFR after making such inquireis and carrying on procedures decides whether the undertaking is sick or not.

If  a company owns a sick industrial undertaking it is not required to consider the profits . if any , of the sick utkg for the purpose of calculating MAT.  

When the company as a whole is sick undertaking , it is not required to pay MAT.