World health organization regional office for europe summary sick building syndrome sbs describes a medical condition where people in a building suffer from. The analysis pinpoint mismanagement of units as the prime reason for industrial sickness. Therefore, the identification and detection of sickness at the incipient stage is the first and foremost measure to detect and reduce industrial sickness. The causes of sickness differ from industry to industry is major problem in now a days. Industrial sickness is not an overnight occurrence but it is a gradual process taking from 5 to 7 years corroding the health of a unit beyond cure.
It includes the concept of types of sickness, reasons, adverse effect of sickness along with preventives measure which is provided by the government in india. The chapter also presents some common causes and remedial measures alongwith various predictive models of industrial sickness developed earlier. Industrial sickness is a part of the process of industrialization. Remedial measures of of industrial sickness problems of. Industrial sickness is defined all over the world dubious discuss 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 year immediately preceding such financial year. Sickness in small scale industries are not a sudden phenomenon but it is a gradual process taking 5 to 7 years eroding the health of a unit beyond cure.
Against this backdrop, it is essential to develop a forewarning system, so that timely remedial measures can be undertaken to combat the menace of sickness. Tiwari opined that t he remedies as available in terms of various existing statutes for reviving and rehabilitation of sick industrial units are. Notes on the remedial measures of poverty in rural india. Flawed or tardy identification would decrease the effectiveness of the remedial actions. It leads to unemployment, blockage of capital, loss of state revenue and nonutilization of assets. To suggest the remedial measures that may be helpful in reviving the sick industrial units and. This launches an element of risk for every business. Firms that cannot maintain competitive efficiency face the reality of getting sick. Patients with wilsons sickness may hold expanded measures of copper in the liver amid childhood. It applies to industrial undertakings both in the public and private sectors. Causes of sick industrial units and their remedial. It is thus necessary for firms to get a signal that there is a threat to the existing business so that they take up strategies for a turnaround.
Chapter 7 rehabilitation measures to remove industrial. Lecture 27 language conflicts causes, consequences and. One of the adverse trends observable in the corporate private sector of india is the growing incidence of sickness. Major causes of sickness in small scale industries and. It is clear from the table that the number of sick units among. In october 1989, the government introduced the scheme for the grant of excise loan to sickweak industrial units. An overview sankalp jain introduction sick industrial unit is defined as a unit or a company having been in existence for not less than five years which is found at the end of any financial year to have incurred accumulated losses equal to or exceeding its entire net worth. However, it may be stated that all the causes are interconnected and remedial action for one cause may not bring any overall relief to sickness 1.
Sickness is not detected in the initial stages and large amount of funds are locked in them. Industrial sickness is a continuing process with district stages taking some years to corrode the health of a unit beyond cure. The new approach puts emphasis on prevention of sickness rather than resorting to remedial measures after the unit becomes sick. The sine qua non of industrial sickness is that production fails to maintain costeffectiveness, so much so that the firm fails to meet the sunk cost. Some of the remedial measures to curb and overcome sickness in industrial undertakings are as follows. Hence it is necessary to take proper steps in order to rehabilitate the sick industries. The real or root causes have not been identified and corrective measures. Here, we discuss some measures that have been taken by government both central and state and reserve bank of india as remedial steps which have been the basis of formulating. In this present paper an attempt has been made to explore the quantum of sickness in small scale industries in india. Introduction every company commences a variety of operational activities in the business. Industrial unrest like strikes, lockouts, unemployment, social unrest etc. Industrial sickness one of the adverse trends observable in the corporate private sector of india is the growing incidence of sickness.
Index terms industrial sickness, discriminant analysis, ratio analysis i. All possible remedial measures should be taken at this stage rather than making a hue and cry when the unit is actually dead. Sickness in small scale industries economics essay. The earlier the detection of sickness, the earlier will be the remedy for sickness. It is causing considerable concern to planners and policymakers.
The worsening signals of industrial sickness may be discernible quite early in. The most important piece of legislation dealing with industrial sickness was the sick industrial companies special provisions act,1985 sica. This document is highly rated by b com students and has been viewed 3749 times. Meaning, definition, causes, consequence, remedial measures of. What are the problems faced by small scale industries in. The side effects typically show up between the ages of. Major provisions of factories act relating to health, welfare, safety, accidents, hours of work, employment of women 10. Let us make indepth study of the policy measures and reserve bank guidelines for checking industrial sickness. Loss of interest on borrowings by financial institutions. It is also putting a severe strain on the economic system, particularly on. Nearly two and a half lakh ssi units are sick and as on 2001 and nearly rs. Let us make indepth study of the definition, extent, causes, consequences and remedial measures of industrial sickness in india. There are some activities of the business whose outcomes are unpredictable. However, before discussing the remedial measures of.
May 18, 2020 remedial measures of of industrial sickness problems of growth, business environment b com notes edurev is made by best teachers of b com. Loss to economy and government remedial measures steps taken by banks. Industrial sickness is the key event of modern industrial age. It is also putting a severe strain on the economic system, particularly on the banks. Sickness in micro, small and medium enterprises msmes in. A case study of hayatabad industrial estate, peshawar. It may not be effectives in terms of restoring the financial viability of sick.
Sickness among small scale industries is widespread. Sick industrial companies special provisions act, 1985. In the postindependence period, when the problem of industrial sickness has gained a serious proportion then various organisations like rbi, sbi and other termlending institutions defined this problem of sickness. Remedial measures industry sickness is a social problem as its like a burden on the society.
Industrial sickness reserve bank of india banks free. The second cause for the sickness is related to marketing. There are 50 samples are selected units from the industrial area of aurangabad district for the. Pdf detection and remedies for industrial sickness in small. The government has initiated a number of measures for the revival of the sick industrial units as well as to prevent the incidence of industrial sickness. Threats of small industries and the remedial measures to overcome them 5. The present paper highlights the causes and remedies of industrial sickness of small scale industries in manipur. Sickness of such a magnitude causes loss of employment in these industrial units which further aggravates the acute unemployment problem prevailing in the country.
The sick companies special provisions act defines sick company as a company which is registered for not less than five years which has at the end of any. Identifying the sick units at initial stages and avoiding sickness. Wikipedia defines industrial sickness 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. There may be instances in which you wish to discuss remedial measures or specific recommendations in a separate document. Chapter 4 causes of industrial sickness shodhganga. The first for most important reason for the sickness of small scale industries are non availability of skilled labour or manpower wages disparity in similar industry and general labour invested in the area. Causes of sick industrial units and their remedial measures. Pdf small industrial units are the seedbed on industrial development in. Industrial sickness sick units entrepreneurship bba. The number of sick units in msme sector is presented in the table no.
Industrial sickness free download as powerpoint presentation. Industrial sickness in india an empirical analysis. A comprehensive social security measures should be taken by the government as in the developed countries of the world like u. Industrial sickness problems and remedial measures. Financial institutions and management should focus on prevention of sickness, to save the business world. However, before discussing the remedial measures of industrial sickness we should know the concept of.
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