Industrial sickness is defined all over the world as “an industrial company
(being a company registered for not less than five years) which has, at the end of any financial year, accumulated losses equal to, or exceeding, its entire net worth and has also suffered cash losses in such financial year and the financial
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What is the meaning of sick industrial companies?
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[(o) “sick industrial company” means
an industrial company (being a company registered for not less than five years) which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth
.
What is the meaning of sick industry?
The act defined a sick industrial unit as
one that had existed for at least five years and had incurred accumulated losses equal to or exceeding its entire net worth at the end of any financial year
.
What are sick industries in India?
The 17 sick PSUs include
Tungabhadra Steel Products
, under the ministry of heavy industries; STCL Ltd (formerly Spice Trading Corporation of India), under the ministry of commerce and industries; Central Inland Water Transport Corporation, under the ministry of shipping; and Hindustan Photo Films and Manufacturing ...
What are the main causes of sickness of the industry?
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(i) Recession in the Market:
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(ii) Decline in Market Demand for the Product:
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(iii) Excessive Competition in the Market:
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(iv) Erratic Supply of Inputs:
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(v) Government Policy:
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(vi) Unforeseen Circumstances:
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(i) Faulty Planning:
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(ii) Incompetent Entrepreneurs:
Who can declare a sick company?
Under the Sick Industrial Companies Act, the Board of a sick industrial company is legally obliged to report it to
the BIFR
, and the BIFR has the power to make whatever inquiries are needed to determine if the company is in fact sick.
What is incipient sickness?
In a nutshell, it may be seen that incipient industrial sickness is
that stage where the unit incurs cash losses
; however the position of financial structure may not be very much alarming. ... The condition of 7 years have reduced to 5 years and the condition regarding cash losses has been omitted by the 1993 Amendment.
What is industrial sickness and its causes?
The industrial sickness is also caused by
certain changes in policy designs of the government
. These frequent changes affect the long-term production, financial and marketing planning of an industrial unit. Changes in Government policies regarding imports, industrial licensing, taxation can make viable units sick.
What are symptoms of industrial sickness?
Some of the important symptoms which characterize industrial sickness are given below:
persisting shortage of cash, deteriorating financial ratios, widespread use of creative accounting, continuous tumble in the prices of the shares, frequent request to banks and financial institutions for loans, delay and default in
...
What are the remedies of industrial sickness?
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Identifying sickness at initial stage. ...
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Financial assistance. ...
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Improving Infrastructure. ...
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Technology Up-gradation. ...
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Marketing assistance. ...
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Liquidation. ...
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Government Interventions. ...
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Training.
How can we protect the sick industrial units in India?
The Government also announced
a ‘margin money’ scheme
(effective from January 1, 1982) for reviving viable sick small-scale units. Under the scheme, a sick small-scale unit was sanctioned a minimum loan of Rs. 1, 000 and a maximum of Rs. 20,000.
What are the reasons for sick industries in India?
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(a) Certain initial thing may go wrong:
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(b) Faulty Financial Planning:
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(c) Gestation Period:
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(d) Wrong Location:
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(e) Technology:
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(f) Collaboration:
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(g) Demand Forecast:
Why did Sica fail?
Failure of SICA
SICA
lacked in many aspects
– the Act was made applicable only to industrial undertakings, section 22 of the SICA which dealt with moratorium was misused to defer action by creditors. The institutional machinery was not being able to serve the expected purpose.
What are the two major causes of industrial sickness?
The primary one seems to be (i) “lack of experience of the promoters in the line of activity.” The other causes are: (ii)
differences among various persons associated with the promotion and management of the enterprise
; (iii) mechanical defects and breakdown; (iv) inability to purchase raw materials at an economic ...
Which is not a cause of industrial sickness?
Lack of skilled and trained labour
is not an external cause of sickness of small businesses. Small Scale Industries (SSIs) play vital role in the economic development of a country. Some SSIs turn out to be sick due to various reasons.
Which of the following factors are the internal causes for sickness?
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Mismanagement: The most important internal cause of sickness is mismanagement. ...
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Faulty Initial Planning: Wrong location of an industrial unit might lead to its ruin. ...
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Financial Problems: A growing shortage of working capital appears to be a real constraint. ...
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Improper Choice of Technology: ...
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Labour Problems:
