LML declares itself sick, to approach BIFR

Dogged by prolonged lockout of its manufacturing unit and inability to make a turnaround, Kanpur- based two-wheeler manufacturer LML Ltd today declared itself a sick unit and decided to approach the Board for Industrial and Financial Reconstruction (BIFR).

The board of directors of LML, which met today after approving the audited accounts of the Company for the period April 1, 2005 to August 31, 2006, has decided to refer the company to BIFR.

The company informed the Bombay Stock Exchange that after taking into consideration the continued lock-out of two wheeler operations and the present prevailing condition coupled with the uncertainty of generation of profits in near future, the Board decided to reverse the provision of Deferred Tax Asset (DTA).

As a result, the net worth of the company as on August 31, 2006 has been completely eroded and consequently it has become a sick industrial Company under Sick Industrial Companies (Special Provisions) Act, 1985, it said.

Company officials, including managing director Deepak Singhania, were not available for comments despite repeated attempts.