Business Environment

1. SICA
BIFR

2. SICA 1985
✌️ SICA stands for Sick Industrial Companies(SpecialProvison)Act.
✌️ 1981 – GOI set-up committee under Shri.T.Tiwari
✌️ 1983September-Report submitted
✌️ “Need for special legislation ,Needforsetting up exclusive quasi Judicial body
✌️ 1985-SICA act Passed
✌️ 1987-BIFR Established

3. SICKNESS
• Sick Industrial company indicates an industrialcompany (Registered
for not less than 7years) which is showing Accumulated losses equal
to or exceeding it’s networth at the end of any financial year and
has suffered cash losses also during that financial year and the
immediate proceeding year
=> Sick Industrial Companies(SpecialProvison)Act 1985

4. CAUSES
✌️ Born (or) Internal Sickness (i.e.) Wrong planning,Lack of promotors
knowledge,Wrong location and etc
✌️ AchievedSickness(i.e) Bad management, Inventory mismanagement,
Marketing
failure and etc
✌️ External factors(I.e) Shortageofenergy,raw material,Unfavorable govt
policies and etc

5. OBJECTIVES
✌️ It is public interest deal with the problems ofthe industrial sickness was
regards to the crucial sectors where public money locked up.
✌️ It contains special provisions for timely detection sick and potentially Sick
Industrial company speedy determination and enforcement
preventive,remedial and other measures was respect to each company.
✌️ Those measures are to be taken by a body experts.
=>Legal
=>Financial restructuring
=>Managerial.

6. SPECIAL FEATURES
✌️ Act extended to wholeindia.
✌️ Act is not applicable to SSI’s
✌️ All govt company are brought under this act
✌️ Act provides establishment of BIFR and AAIFR
✌️ BIFR- Board for Industrial and Financial Reconstruction
✌️ AAIFR-Appellate Authority for Industrial and Financial Reconstruction

7. IMPORTANCE
✌️ Constitution of Two quasi body
✌️ Procedure of the board and the appellate authority
✌️ Filling of reference u/s15 and criteria of sickness
✌️ Provision of enquiry u/s1
✌️ Appointment of special director and OA’s u/s16(4) and17(3)

8. Contd
✌️ Preparation of sanctioned schemes u/s17(2),17(3) &18(4)
✌️ Provison of monitoring schemes u/s18(12)
✌️ Rehabilitation by giving financial assistance u/s19
✌️ Winding up of sick industrial companies u/s20
✌️ Penalty u/s33 for violation of act

9. Finally
✌️ SICA 1985 replaced by Sick Industrial Companies (special Provison)
Repeal act 2003
✌️ Fully repealed 2016 because it’s Provison overlapped with companies
act 2013
Repeal-Revoke

10. BIFR
✌️ Agency of GOI( GOVERNMENT OF INDIA
✌️ Part of ministry Finance
✌️ Set up 1987 January by RAJIVGANDHI as per SICA act 1985
✌️ Functional 15 MAY 1987
✌️ Objective :Determine and assist sickness

11. ✌️ Dec 2016 NARRENDRA MODI Govt dissolvd it
✌️ NCLT and NCLAT established as per provisions In solvency and bankruptcy
code 2016. ( V.BalaKrishna eradi)
✌️ NCLT-National Company Law Tribunal
✌️ NCLAT-National Company Law Appellate Tribunal
✌️ The companies (Amendment) bill 2001 introduced it

12. STRUCTURE OF BIFR
✌️ One chairman
✌️ 2 to 14 members (They are Highcourt judges or 15
year experience in banking, labour,
accountancy,economics and etc)
✌️ Board handles medium size sick companies.

13. SCHEMES
✌️ Financial reconstruction
✌️ Proper management( changing management,Take over management)
✌️Amalgamation of sick companies
✌️Sale or lease part(or) whole sick companies..