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SICKNESS IN INDIAN INDUSTRIES.

INTRODUCTION
• Industrial sickness has been growing
from the last decade.

• Many traditional and modern industries


are now being effected by industrial
sickness.

• Persisting problems are been faced by


the industrial sector of the country.


DEFINITION

 “ A company where the accumulated


losses at the end of any financial year
results in erosion of 50% or more of its
peak net worth during the immediately
preceding five financial years ”.
WARNING SIGNALS OF INDUSTRIAL
SICKNESS
• SHORTAGE OF LIQUID FUNDS

• GROWING OF EXCESSIVE INVENTORIES.


• UNDER – UTILISATION OF CAPACITY.



• RETURN ON INVESTMENT

• MAINTENANCE OF CERTAIN FINANCIAL


RATIOS

CAUSES OF SICKNESS

• LACK OF INFRASTRUCTURE FACILITIES


• MISMANAGEMENT

• LABOUR UNREST

• LACK OF MODERNISATION

• GOVERNMENT POLICY

• SLACKNESS OF FINANCIAL INSTITUTION

• FAULTY PLANNING
Society Workers Management

Consequences of industrial sickness


Consumers Share holders

Government Suppliers Financial Institutions


MEASURES TO PREVENT SICKNESS/REVIVE
LARGE AND MEDIUM SCALE SICK UNITS.
• TAKEOVER POLICY

• REDUCING LIABILITIES

• GRANT LOANS AT CONCESSIONAL RATES

• PRIORITY IN SUPPLY OF RAW MATERIAL

• PROFESSIONAL SERVICES

• TAX EXEMPTION

• MERGER
GOVERNMENT POLICY ON
INDUSTRIAL SICKNESS
• SUITABLE ARRANGEMENT OF MONITORING

• GROUP OF PROFESSIONAL DIRECTORS

• SCREENING COMMITTEE

• REMEDIAL MEASURES IN RESPECT OF
INDUSTRIAL UNITS

• TACKLE THE PROBLEM OF INDUSTRIAL
SICKNESS

SICKNESS IN SMALL SCALE
INDUSTRIES .
SICKNESS IN SMALL SCALE
INDUSTRIES

 Definition of Sick SSI Units:-


 A small scale industrial unit is considered as sick when

1. Any of its borrowal accounts has become “doubtful”


advance i.e. principal or interest in respect of
any of its borrower accounts has remained overdue
for a period exceeding 2-1/2 years, and
2.
3. There is erosion the net worth due to accumulated
cash loses to the extent of 50% or more of its
peak net worth during the preceding two
accounting years.


Measures to improve the effiency of SSIs
and prevent sickness

1.
2. Success of any business unit depends upon
Role
3. of state in improving
4.Introduction of Research and Development.
5. Promoting.
6.
Small-scale
7. industries must provide proper attention
Working group on rehabilitation of sick units
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