whether a company is a sick company or not

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