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    Turnaround Management Unit - II: DR - Mrunmayee R.Thatte

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    Aniket Pashte
    The document discusses industrial sickness in companies. It defines a sick industrial company as one that has accumulated losses exceeding its net worth for a given financial year according to the Sick Industrial Companies Act of 1985. It lists several common signals of industrial sickness like major shareholding changes, liquidity problems, and failing to pay statutory liabilities. The causes of sickness are divided into internal causes like lack of financing and incompetent management, and external causes such as infrastructure constraints, finance constraints, and government policy changes. Industrial sickness progresses through different stages from normal to incipient sickness to tending towards sickness and finally the last stage. The impacts of sickness affect employees, society, resources, related units, investors, entrepreneurship activities, banks and financial

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    Turnaround Management Unit - II: DR - Mrunmayee R.Thatte

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    Aniket Pashte
    23 views9 pages
    The document discusses industrial sickness in companies. It defines a sick industrial company as one that has accumulated losses exceeding its net worth for a given financial year according to the Sick Industrial Companies Act of 1985. It lists several common signals of industrial sickness like major shareholding changes, liquidity problems, and failing to pay statutory liabilities. The causes of sickness are divided into internal causes like lack of financing and incompetent management, and external causes such as infrastructure constraints, finance constraints, and government policy changes. Industrial sickness progresses through different stages from normal to incipient sickness to tending towards sickness and finally the last stage. The impacts of sickness affect employees, society, resources, related units, investors, entrepreneurship activities, banks and financial

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    Turnaround Management

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    The document discusses industrial sickness in companies. It defines a sick industrial company as one that has accumulated losses exceeding its net worth for a given financial year according to the Sick Industrial Companies Act of 1985. It lists several common signals of industrial sickness like major shareholding changes, liquidity problems, and failing to pay statutory liabilities. The causes of sickness are divided into internal causes like lack of financing and incompetent management, and external causes such as infrastructure constraints, finance constraints, and government policy changes. Industrial sickness progresses through different stages from normal to incipient sickness to tending towards sickness and finally the last stage. The impacts of sickness affect employees, society, resources, related units, investors, entrepreneurship activities, banks and financial

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    23 views9 pages

    Turnaround Management Unit - II: DR - Mrunmayee R.Thatte

    Uploaded by

    Aniket Pashte
    The document discusses industrial sickness in companies. It defines a sick industrial company as one that has accumulated losses exceeding its net worth for a given financial year according to the Sick Industrial Companies Act of 1985. It lists several common signals of industrial sickness like major shareholding changes, liquidity problems, and failing to pay statutory liabilities. The causes of sickness are divided into internal causes like lack of financing and incompetent management, and external causes such as infrastructure constraints, finance constraints, and government policy changes. Industrial sickness progresses through different stages from normal to incipient sickness to tending towards sickness and finally the last stage. The impacts of sickness affect employees, society, resources, related units, investors, entrepreneurship activities, banks and financial

    Copyright:

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    Download as PPTX, PDF, TXT or read online from Scribd
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    of 9

    Turnaround Management

    Unit –II

    Dr.Mrunmayee R.Thatte
    Chapter 3- Industrial Sickness
    Sick company…. State of being unhealthy

    Sick Industrial Companies Act 1985(SICA) “ a unit or a company


    which is found at the end of any financial year to have incurred
    accumulated losses equal to or exceeding its entire net worth”

    Net worth= Total paid up capital and free reserves less provisions
    and expenses.
    signals or symptoms of industrial Sickness

    1. Major changes in shareholding


    2.increasing consumer complaints
    3.liquidity problems
    4.failure to pay statutory liabilities
    5.incompetent and unbalanced management team
    6.falling reputation of the company in the market
    7.decrease in working capital
    Causes of sickness
    Internal causes-

    Bad production Marketing and


    Lack of finance
    policies sickness

    Inappropriate Ineffective
    Personnel corporate Mismanagement
    management management

    Incompetent
    Entreprenuers
    External Causes of Industrial Sickness

    Personnel Marketing Production


    constraints Constraints Constraints

    Infrastructure Finance Recession


    constraints
    constraints

    Government
    Competition Policy
    Stages of Sickness

    Final
    Stage
    Incipient
    Tending Sickness
    Normal/ towards
    healthy sickness
    Impact or Effects of Industrial sickness

    Employees Society Resources

    Entrepreneurship
    Related Units Investors
    Activities

    Banks and
    Financial Government Industrial Unrest
    Institutions
    Thank you

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