Sick Unit and Causes

In todays highly competitive world, where scientific changes are occurring at a mind boggling stones throw, and locating doing knows no boundaries, a country and its industry, which has not kept pace with the world cannot hope to survive. It is a well established fact, that a healthy industrial sector makes for a healthy monetary sector, and unless, goods markets are healthy and vibrant, financial market cannot be the same. This holds for each country. Industrial building blocks proven to be unable to financially on a lower floorpin themselves are generally called couch units in India. The definition of sick SSI unit may be read as under:- 1.If whatever one of the borrowal accounts of the unit remains sub- standard for sise months i.e. principal or interest in respect of any of its borrowal accounts has remained over due for a period exceeding one year 2.There is erosion in the net worth due to accumulated losses to the extent of minimum 50% of gratuity net worth during the previous accounting year and 3.The unit has been in commercial production for at least ternion years. Before we think about reviving sick units, we fatality to first consider the causes of their sickness, only then, can any remedies for their revivification be considered.

Different governments at different times imbibe taken peaks to resolve the problem of sick units. These included: bounteous banks the option of converting the non-performing loans of the sick units into equity or rescheduling the loans of these units, with the hope that the units go out again become solvent; or liquidating the business and exchange off its real assets, if nothing else works Like other ontogenesis countries, India is a capital scarce country. We can not turn over the luxury of dragging on indefinitely the process of any rehabilitation or winding- up of a sick unit. We concur to ensure that a sick unit is quickly rehabilitated in case it is possible to do so. It is important, however, that before any measure is undertaken, to establish... If you want to get a full essay, order it on our website: Orderessay

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