YMT COLLEGE OF MANAGEMENT

NEELAM PATIL SAREEKA

PATIL

SHITAL PAWAR VINAYAK RAJIV

PATIL

RATH

BOARD OF INDUSTRIAL AND FINANCIAL RECONSTRUCTION

SICK INDUSTRIAL COMPANY ACT 1985(SICA)

ENACTMENT OF SICA Seventeen Century Reserve Bank of India Appointment of 3 committees Tandon Committee, in 1975  H.N. Ray Committee,In 1976  Tiwari Committee ,in 1981 Recommendation of the committee

OBJECTIVE OF SICA,1985
Public Interest Special Provision Remedial Measures  Legal  Financial Restructuring  Managerial

BOARD OF INDUSTRIAL AND FINACIAL RECONSTRUCTION

y y y y y y

Established by Set up in January 1987 Functioning from 15t may,1987 BIFR deals Role of BIFR Structure of BIFR

FACTORS IN SICKNESS
y
        

Internal Factors
Mismanagement Wrong location Wrong Dividend Policy Poor implementation of Project Poor Inventory Management Unwarranted Expansion Change in product mix Poor labour Management Strikes

FACTORS IN SICKNESS
y
    

External Factors
Energy Crisis-Power cuts or shortage of coal or oil Failure to achieve Optimum capacity Infrastructural problems like transport Situations like market recession International Pressure

REPORTING REPORTING TO BIFR ENQUIRY BY BIFR REVIVAL PACKAE

BIFR PROCEDURE
References received Registered

(4000)

Registration declined

(3000)
Inquiry

950

Recommended for closure

(6506 37)

Rehab. Scheme sanctioned

670(6 57)

Dismissed

Monitoring

(476)

Failed & reopened

(249) 300

Discharged on revival

Disadvantages of BIFR

 Exorbitant delay in decision making.  BIFR has no right to enforce its decision

Thank you