Industrial sickness refers to poor performance of industrial firms over several years with losses and debt repayment defaults. It can be caused by external factors like economic downturns, high input prices, and policy changes, or internal factors like poor project planning, technology issues, management deficiencies, and more. Suggestions to rehabilitate sick units include cooperation between lenders and banks, coordination between government agencies, modernizing machinery, improving management, and adopting sympathetic policies during recovery.
Sick industries: The reasons and remedies for it (A case study in Bangladesh)Masum Hussain
Small industrial units are the seedbed on industrial development in underdeveloped economy for its less capital involvement and more employment generation capability. But this sector cannot contribute expectedly for infection to sickness that ultimately prevents the entrepreneurial bases of economy. Sickness can be occurred in the inception period, in operation and /or in macro environment. Without the growth and development of entrepreneurship the development of country would always be unattained. It is a study through which we try to analyze the forces behind the spirit of entrepreneurship development. The study tried to explore the ambitions, compulsions, facilitations and expectations which lead them to industry, the idea generation process and motivators in that process of entrepreneurships and also the primary obstacles in entrepreneurships in Industrial estates. In this context an extensive survey is made and data have been collected from some entrepreneurs in five BSCIC industrial estate of Sylhet division in Bangladesh. From that study it is revealed that the leading ambition is making profits, compulsions are dissatisfaction in present job and unemployment and facilitating factors are technical skill and experience. The main source of idea is the entrepreneur himself and he is also the motivator in that process. Obstacle in emergence of entrepreneurship in industrial estates is revealed as the procedural hazards. Therefore it is suggested that proper counselling in presence of family members and minimizing the procedural hazards in facilitating supports should be emphasized in entrepreneurial development program. The problem of industries becoming sick, both in public and private sectors, has turned to be alarming in Bangladesh in recent years. Although the causes for closure or divestment might be many but in most of the cases continued loss played a major role. Thus the problem of industries becoming sick deserves to be treated more seriously at Government policy level as it is related to the national economy and development.
Nature and Purpose of Business || Part-1 || Business Study Class 11 ||KAIM
Concept of Business, Characteristics of Business, Objectives of Business: Economic Objectives, Social Objectives, Role of Profit in Business, comparison of business, profession and employment etc.
व्यवसाय की अवधारणा, व्यवसाय के लक्षण, व्यवसाय के उद्देश्य: आर्थिक उद्देश्य, सामाजिक उद्देश्य, व्यवसाय में लाभ की भूमिका, व्यवसाय, पेशे और रोजगार की तुलना आदि।
This is the First part of this topic.
Second Part coming soon....
Make sure to like, and share the video. Your support and love is very important to me.
Disclaimer- Some contents are used for educational purpose under fair use. Copyrights Disclaimer under Section 107 of the Copyright Act 1976, allowance is made for: fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. All credit for copyright material used in video goes to respected owner.
Sick industries: The reasons and remedies for it (A case study in Bangladesh)Masum Hussain
Small industrial units are the seedbed on industrial development in underdeveloped economy for its less capital involvement and more employment generation capability. But this sector cannot contribute expectedly for infection to sickness that ultimately prevents the entrepreneurial bases of economy. Sickness can be occurred in the inception period, in operation and /or in macro environment. Without the growth and development of entrepreneurship the development of country would always be unattained. It is a study through which we try to analyze the forces behind the spirit of entrepreneurship development. The study tried to explore the ambitions, compulsions, facilitations and expectations which lead them to industry, the idea generation process and motivators in that process of entrepreneurships and also the primary obstacles in entrepreneurships in Industrial estates. In this context an extensive survey is made and data have been collected from some entrepreneurs in five BSCIC industrial estate of Sylhet division in Bangladesh. From that study it is revealed that the leading ambition is making profits, compulsions are dissatisfaction in present job and unemployment and facilitating factors are technical skill and experience. The main source of idea is the entrepreneur himself and he is also the motivator in that process. Obstacle in emergence of entrepreneurship in industrial estates is revealed as the procedural hazards. Therefore it is suggested that proper counselling in presence of family members and minimizing the procedural hazards in facilitating supports should be emphasized in entrepreneurial development program. The problem of industries becoming sick, both in public and private sectors, has turned to be alarming in Bangladesh in recent years. Although the causes for closure or divestment might be many but in most of the cases continued loss played a major role. Thus the problem of industries becoming sick deserves to be treated more seriously at Government policy level as it is related to the national economy and development.
Nature and Purpose of Business || Part-1 || Business Study Class 11 ||KAIM
Concept of Business, Characteristics of Business, Objectives of Business: Economic Objectives, Social Objectives, Role of Profit in Business, comparison of business, profession and employment etc.
व्यवसाय की अवधारणा, व्यवसाय के लक्षण, व्यवसाय के उद्देश्य: आर्थिक उद्देश्य, सामाजिक उद्देश्य, व्यवसाय में लाभ की भूमिका, व्यवसाय, पेशे और रोजगार की तुलना आदि।
This is the First part of this topic.
Second Part coming soon....
Make sure to like, and share the video. Your support and love is very important to me.
Disclaimer- Some contents are used for educational purpose under fair use. Copyrights Disclaimer under Section 107 of the Copyright Act 1976, allowance is made for: fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. All credit for copyright material used in video goes to respected owner.
Industrial Sickness || Industrial Sickness in Hindi ||KAIM
Meaning, Which type of units are sick, Definition, Signals of Industrial Sickness, Features, Types of sick Companies, Magnitude of Industrial Sickness, Causes of Industrial Sickness, Causes of born sickness, Suggestions To Prevent And Cure Industrial Sickness etc.
मतलब, कौन-कौन सी इकाइयाँ बीमार हैं, परिभाषा, औद्योगिक बीमारी के संकेत, सुविधाएँ, बीमार कंपनियों के प्रकार, औद्योगिक बीमारी के आयाम, औद्योगिक बीमारी के कारण, पैदा होने वाली बीमारी के कारण, औद्योगिक बीमारी को रोकने या ठीक करने के सुझाव आदि।
Make sure to like and share the video. Your support and love is very important to me.
Follow me on slideshare: https://www.slideshare.net/GitanjaliJindal
Disclaimer- Some contents are used for educational purpose under fair use. Copyrights Disclaimer under Section 107 of the Copyright Act 1976, allowance is made for: fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. All credit for copyright material used in video goes to respected owner.
Industrial sickness and Industrial relationsSoham Gupta
INDUSTRIAL SICKNESSAND INDUSTRIAL RELATIONS
PRESENTED BY-
SWAYAM GUPTA
08-BBA-13
INDUSTRIAL SICKNESS
In simple term a sick unit may mean a unit which is not healthy in terms of yielding profits and fetching returns on investments.
According to SICA Act,1985, industrial company defined as sick if:-
It was registered for at least seven years;
It incurred cash losses for the current and the preceding year and
It had eroded 50% more of its peak net worth during any of preceding five financial years.
CAUSES OF SICKNESS
Industrial units may become sick at different stages and due to different reasons. Indeed, some industrial units are-
born sick,
some units achieve sickness.
CAUSES FOR BORN SICKNESS
Wrong Location- It has been observed that “high-technology based units are established in areas without skilled labour or supporting infrastructure; industries based on imported raw materials are founded in regions without adequate transport and communication system.”
Inexperienced Promoters-They may go for wrong selection of project and may make faulty project planning. This may give birth to sick units.
Technological Factors-If plant and machinery finally selected by entrepreneur turns out to be defective or obsolete, then units are bound to be sick.
Faulty Demand Forecasting-Wrong assessment of market potential or faulty demand forecasting, change in the market conditions, including the change in the consumer tastes and preferences, etc. Can also cause birth of sick units.
CAUSES OF ACHIEVED SICKNESS(INTERNAL CAUSES)
Labour Problems-In some cases, acute labour problems have resulted in strikes, lock-outs and even closure of industrial units. If these problems are not tackled in time, these problems can cause sickness.
Diversion of Resources-It means investing funds of the business unit in some new ventures. Some entrepreneurs divert their resources in the new ventures without in-depth analysis of such new ventures. if these new ventures do not succeed then it results in losses and lead the unit towards sickness.
Failure to Modernise-If the business unit fails to adopt the advanced technology, fails to change the product mix and other elements of marketing mix to suit the changing environment, then such unit may lag behind and in the long run, it may lead to sickness.
Over-capitalisation-It means capital invested in the business owned or borrowed is more than the required capital. It put burden in the form of interest and dividend. It affects profitability and leads to sickness.
EXTERNAL CAUSES
Government Policy-Sudden changes in the govt. policy relating to import, export, industrial licensing, taxation etc. can make viable units sick.
Shortage of Raw Material-In a number of cases, the units are not able to achieve optimum capacity due to shortage of raw material. This results in disturbing the production schedule, causing losses to the unit.
Recession in the Market-It may cause steep declin
LPG stands for Liberalization, Privatization, and Globalization. India under its New Economic Policy approached International Banks for the development of the country. These agencies asked the Indian Government to open its restrictions on trade done by the private sector and between India and other countries.
Presentation by Diego Useche, Associated Professor at the University of Rennes 1 (France), at the FogGuru training Business Modeling and Development in November 2019.
Industrial Sickness || Industrial Sickness in Hindi ||KAIM
Meaning, Which type of units are sick, Definition, Signals of Industrial Sickness, Features, Types of sick Companies, Magnitude of Industrial Sickness, Causes of Industrial Sickness, Causes of born sickness, Suggestions To Prevent And Cure Industrial Sickness etc.
मतलब, कौन-कौन सी इकाइयाँ बीमार हैं, परिभाषा, औद्योगिक बीमारी के संकेत, सुविधाएँ, बीमार कंपनियों के प्रकार, औद्योगिक बीमारी के आयाम, औद्योगिक बीमारी के कारण, पैदा होने वाली बीमारी के कारण, औद्योगिक बीमारी को रोकने या ठीक करने के सुझाव आदि।
Make sure to like and share the video. Your support and love is very important to me.
Follow me on slideshare: https://www.slideshare.net/GitanjaliJindal
Disclaimer- Some contents are used for educational purpose under fair use. Copyrights Disclaimer under Section 107 of the Copyright Act 1976, allowance is made for: fair use" for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. All credit for copyright material used in video goes to respected owner.
Industrial sickness and Industrial relationsSoham Gupta
INDUSTRIAL SICKNESSAND INDUSTRIAL RELATIONS
PRESENTED BY-
SWAYAM GUPTA
08-BBA-13
INDUSTRIAL SICKNESS
In simple term a sick unit may mean a unit which is not healthy in terms of yielding profits and fetching returns on investments.
According to SICA Act,1985, industrial company defined as sick if:-
It was registered for at least seven years;
It incurred cash losses for the current and the preceding year and
It had eroded 50% more of its peak net worth during any of preceding five financial years.
CAUSES OF SICKNESS
Industrial units may become sick at different stages and due to different reasons. Indeed, some industrial units are-
born sick,
some units achieve sickness.
CAUSES FOR BORN SICKNESS
Wrong Location- It has been observed that “high-technology based units are established in areas without skilled labour or supporting infrastructure; industries based on imported raw materials are founded in regions without adequate transport and communication system.”
Inexperienced Promoters-They may go for wrong selection of project and may make faulty project planning. This may give birth to sick units.
Technological Factors-If plant and machinery finally selected by entrepreneur turns out to be defective or obsolete, then units are bound to be sick.
Faulty Demand Forecasting-Wrong assessment of market potential or faulty demand forecasting, change in the market conditions, including the change in the consumer tastes and preferences, etc. Can also cause birth of sick units.
CAUSES OF ACHIEVED SICKNESS(INTERNAL CAUSES)
Labour Problems-In some cases, acute labour problems have resulted in strikes, lock-outs and even closure of industrial units. If these problems are not tackled in time, these problems can cause sickness.
Diversion of Resources-It means investing funds of the business unit in some new ventures. Some entrepreneurs divert their resources in the new ventures without in-depth analysis of such new ventures. if these new ventures do not succeed then it results in losses and lead the unit towards sickness.
Failure to Modernise-If the business unit fails to adopt the advanced technology, fails to change the product mix and other elements of marketing mix to suit the changing environment, then such unit may lag behind and in the long run, it may lead to sickness.
Over-capitalisation-It means capital invested in the business owned or borrowed is more than the required capital. It put burden in the form of interest and dividend. It affects profitability and leads to sickness.
EXTERNAL CAUSES
Government Policy-Sudden changes in the govt. policy relating to import, export, industrial licensing, taxation etc. can make viable units sick.
Shortage of Raw Material-In a number of cases, the units are not able to achieve optimum capacity due to shortage of raw material. This results in disturbing the production schedule, causing losses to the unit.
Recession in the Market-It may cause steep declin
LPG stands for Liberalization, Privatization, and Globalization. India under its New Economic Policy approached International Banks for the development of the country. These agencies asked the Indian Government to open its restrictions on trade done by the private sector and between India and other countries.
Presentation by Diego Useche, Associated Professor at the University of Rennes 1 (France), at the FogGuru training Business Modeling and Development in November 2019.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
2. Industrial Sickness
Industrial sickness usually refers to a situation when
an industrial firm performs poorly, incurs losses for
several years and often defaults in its debt repayment
obligations.
According to the criteria accepted by the Reserve Bank
of India “a sick unit is one which has reported cash
loss for the year of its operation and in the
judgment of the financing bank is likely to incur
cash loss for the current year as also in the
following year.”
3. The State Bank of India has defined a sick unit as one
“which fails to generate an internal surplus on a
continuous basis and depends for its survival
upon frequent infusion of funds.”
4. Nature of Sickness:
Sickness in industry can be classified into:
(a) Genuine sickness which is beyond the control of the
promoters of the concern despite the sincere efforts by
them,
(b) Incipient sickness due to basic non-viability of the
project, and
(c) Induced sickness which is due to the managerial
incompetence and wrong policies pursued deliberately
for want of genuine stake.
5. Causes of industrial sickness
Causes of sickness are both internal and external,
often operating in combination.
External factors are government policies on pricing,
duties, taxes, high interest rates, taxes on profit,
slackness in demand, sluggishness in export markets,
high labour cost, inadequate availability of inputs, lack
of infrastructure and the like.
The internal factors which contribute to sickness are
wrong planning in relation to location, technology,
capital cost, technological obsolescence, management
deficiencies and industrial unrest.
6. External Factors
(i) General Recessionary Trend:
Sometimes a general depression hits industrial units.
This is reflected in lack of demand for industrial
products in general. An overall slowdown in economic
activities affects the performance of individual
projects. Improper demand estimation for the
products to project lands the industrial units in
difficulties.
7. (ii) High Prices of Inputs:
When the costs of manufacture are high and sales
realisation low, the industrial unit cannot stand in the
market. This happens when the prices of inputs such
as price of fuel such as petroleum during energy crisis
goes up whereas the competitive forces keep down the
prices of the products.
8. (iii) Non-Availability of Raw Materials:
When the supplies of raw materials are not available
regularly or in good quality, the industrial units are
bound to be in trouble. This often occurs in case of
supply of imported raw materials.
9. (iv) Changes in Government Policies:
The industrial sickness is also caused by certain
changes in policy designs of the government. These
frequent changes affect the long-term production,
financial and marketing planning of an industrial unit.
Changes in Government policies regarding imports,
industrial licensing, taxation can make viable units
sick. For example, liberal import policy since 1991 has
rendered many small-scale industrial units sick.
10. (v) Infrastructure Bottlenecks:
Often the infrastructure difficulty is responsible for
industrial sickness. No industrial unit can survive
prolonged transport and power bottlenecks.
11. Internal Factors:
(i) Project Appraisal Deficiencies:
The industrial unit becomes sick when the unit has
been launched without a comprehensive appraisal of
economic, financial and technical viabilities of the
project.
12. (ii) Industrial Unrest and Lack of Employee
Motivation:
When there is labour discontent, no industrial unit
can function smoothly and efficiently. When labour
lacks motivation no good results can be expected and
this results in sickness and non-viability of several
industrial units.
13. (iii) Wrong Choice of Technology:
If the promoters use wrong technology, results are
bound to be unsatisfactory. Many industrial units,
especially in the small-scale sector, do not seek
professional guidance in installing the correct
machinery and plant. If the machinery and plant
installed turn out to be defective and unsuitable, they
are bound to suffer losses and become sick and non-
viable.
14. (iv) Marketing Problems:
The industrial unit becomes sick due to product
obsolescence and market saturation. The industrial
unit becomes sick when its product-mix is not attuned
to the consumers’ demand.
(v) Wrong Location:
If the location of an industrial unit happens to be
defective either from the point of the market or the
supply of inputs, it is bound to experience
insurmountable difficulties.
15. (vi) Lack of Finance:
Inadequate financial arrangements or in the absence
of timely financial aid an industrial unit is bound to
come to grief. It will not be able to withstand
operational losses.
(vii) Improper Capital Structure:
If capital structure proves to be unsound or unsuitable
especially on account of delayed construction or
operation, it will result in cost overruns or unduly large
borrowing and create financial trouble for the unit
concerned.
16. (viii) Management Deficiencies:
The biggest cause of industrial sickness is the managerial
inefficiency. Lack of professional management or
experienced management and the existence of hereditary
management is an important cause of industrial sickness.
Inefficient management results in inability to perceive
things in proper perspective devoid of routine
considerations. Inefficient management is also unable to
build up good team and inspire confidence for an organised
collective effort and takes autocratic and high-handed
decisions.
17. (ix) Voluntary Sickness:
There is some sickness which is voluntarily invited by
the entrepreneurs for various motives like getting
government concession or aid from financial
institutions.
18. Suggestions for Rehabilitation of
Sick Units
(i) Cooperation between Term-Lending Institutions
and Commercial Banks:
Since commercial banks provide working capital, they
are in a position to know about the working of
industrial concern. But assistance from term-lending
institutions is also essential for rescue operations.
19. ii) Coordination between Various Government
Agencies:
All government agencies, both regulatory and
promotional, must join hands to restore sick units to
health.
(iii) Full cooperation from various suppliers,’
unsecured creditors and other stakeholders,
particularly from the employees, is also essential to
take the concern out of the difficulties in which it is
involved.
20. (iv) Willing Cooperation and Clear Understanding
with the Project Promoters:
Generally there is a lack of trust and confidence among
the various interests concerned. It is found that
government agencies and dealing institutions are more
worried about their money and are anxious to recover
them instead of curing of the health of the sick units.
21. (v) Checking Over-Valuation of Inventories:
The banks should verify on a regular basis the
valuation of inventories both in terms of quantity and
price. This would prevent over-borrowing on the
hypothecation of inventories.
22. (vi) Marketing:
There should be well organised and scientific
marketing by the project promoters otherwise
launching of a project will be a leap in the dark. Good
marketing arrangements will prevent industrial
sickness.
(vii) Recovery of Outstanding:
Every effort should be made to realize outstanding
advances so that the concern is able to gather funds to
avoid sickness.
23. (viii) Modernisation of Machinery:
If the sick unit is to be restored to health, old and
obsolete machinery and outdated technology should
be discarded at the earliest.
(ix) Improving Labour Relations:
Restrictive labour and unreasonable trade unions are
great obstacles. Improving labour relations will go a
long way in curing industrial sickness.
24. (x) Efficient Management:
If necessary inefficient management should be
replaced. The key to industrial health lies in alert and
efficient management. The management should show
a calm approach, patience and perseverance, courage
and ability to steer in bad weather.
(xi) Performance Incentives:
It is necessary to offer performance incentives to the
executives and the workers to induce them to put in
their best efforts. This will be quite helpful in curing
industrial sickness.
25. (xii) Sympathetic Government Attitude:
During periods of industrial illness the government
agencies should adopt a sympathetic and understanding
attitude so that the problem is not aggravated but moves
towards a solution instead.
(xiii) Austerity and Economy:
Austerity and disciplines should be enforced at all levels.
Every effort should be made in raising funds internally
through the sale of excess assets, surplus machinery, etc.
Uncalled for tours, lavish entertainments, unnecessary
personal expenses should be ruthlessly cut down.
26. FORMAT OF A CASE STUDY
TITLE OF THE CASE
INTRODUCTION
THE PROBLEM
THE THEORY TO THE CASE (If Any)
SOLUTION
RECOMMENDATION/ CONCLUSION
ANSWER TO THE QUESTIONS (If Given)