What are the preventive measures for industrial sickness?
The rehabilitation packages provided to the sick units consist of only financial measures such as rescheduling of debts, sanction of additional term loans for installation of new machineries, enhancement of working capital limit, etc.
What are the measures adopted by the Government to rehabilitate sick units?
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 is industrial sickness PDF?
II. DEFINITION OF INDUSTRIAL SICKNESS. “Industrial sickness is defined in India 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.
What is industrial sickness and write three causes for industrial sickness?
Mismanagement – Faulty management decisions and actions are a common cause of sickness in the small scale sector. Poor maintenance of plant and machinery, lack of quality control system, absence of inventory management, lack of cost control, and non-replacement of obsolete machinery are some examples of mismanagement.
What are the causes of industrial sickness and remedial measures taken by the Government?
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 …
What are causes of industrial sickness and remedial measures taken by the Government?
What provides the remedial measures in India to revive and rehabilitate sick units?
The Industrial Reconstruction Bank of India (IRBI) set up in 1985 has initiated various steps for checking the growth of industrial sickness and helping in industrial revival.
What are the indications of industrial sickness?
Symptoms of Industrial Sickness Decrease in the company’s sales. Decline in capacity utilization. Shortage of cash to meet the day to day obligations. Frequent proposals to extend the credit limit.
What are the causes of industrial sickness?
Improper level and use of working capital can also ruin the firm. Similarly, poor industrial relations, lack of human resources planning, faulty wage and promotional policies can cause problems for the existence of the firm. So incompetent management is the most important reason behind industrial sickness.
What are the causes of industrial sickness explain how do you overcome it?
Causes of Industrial Sickness
- Technical feasibility. Inadequate Technical Knowhow.
- Economic Viability. High cost of inputs.
- Production Management. Underutilization of production capacity.
- Labour Management. Poor performance and productivity of labour.
- Marketing Management.
- Financial Management.
- Administrative Management.
What are the two main types of causes of industrial sickness?
Causes of Industrial Sickness
- External Causes: External causes are the causes which relate to external factors. Such factors cannot be controlled by management.
- Internal Causes: Internal causes are the causes that relate to internal factors of an enterprise. These factors can be controlled to a large extent.
What is industrial sickness What are the factors that are responsible for industrial sickness in India?
The internal factors which contribute to sickness are wrong planning in relation to location, technology, capital cost, technological obsolescence, management deficiencies and industrial unrest.
How can industrial sickness be prevented and cured?
Both prevention and cure of industrial sickness would depend on our ability to identify sickness as early as possible and analyze its causes. Faulty or delayed identification would reduce the effectiveness of the remedial action such as restoring the financial viability of sick units and protecting units which would become sick.
What is the new approach to sick/weak industrial units?
The new approach puts emphasis on prevention of sickness rather than resorting to remedial measures after the unit becomes sick. In October 1989, the Government introduced the scheme for the grant of excise loan to sick/weak industrial units.
What are the effective measures for revival of sick units?
SUGGESTED REMEDIES The effective measures which may be taken for revival of sick units are technical help, professional counseling and improved management. Also, the role of professionals and experienced management becomes more important in times of sickness.
What is the effect of poor identification of sick units?
Faulty or delayed identification would reduce the effectiveness of the remedial action such as restoring the financial viability of sick units and protecting units which would become sick. The problem of industrial sickness is nothing peculiar to our economy or any developing country.