Saturday, September 9 2006 11:32 Hrs (IST) - World Time -

Mumbai: Kanpur-based two wheeler manufacturer LML Ltd has been declared a sick company under the Sick Industrial Companies Act following the prolonged lockout of its production unit.

In a filing on the Bombay Stock Exchange, the company said under the present prevailing condition and the uncertainty over profit generation in the near future, its Board has decided to reverse the provision of Deferred Tax Asset (DTA) and noted that as a result of the aforesaid causes, the net worth of the company has eroded as on August 31.

The decision comes after a meeting of company's board of directors that considered the continued lock-out of its two wheeler operations, the present conditions at the company and the uncertainty over profit generation in near future.

The board consequently concluded that LML has become a sick industrial company and decided to refer the matter to the Board for Industrial and Financial Reconstruction (BIFR).