Finance Service For Sick Units

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August 30, 2016
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August 30, 2016
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Finance Service For Sick Units

Industrial Sickness
does not occur all of a sudden in the life of an industrial unit. In fact, it is a gradual process with distinct stages taking from 5 to 7 years to corrode the health of a unit beyond cure and making the unit sick. To put in simple words, it starts with downturn in the industry whose continuation ultimately leads to setting in of industrial sickness (Kortial 1997).
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 worth and has also suffered cash losses in such financial year and the financial year immediately preceding such financial year”