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Preventing Sickkness and Rehabilitation of Business Units

Preventing Sickkness and Rehabilitation of Business Units

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Published by murugesh_mbahit

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Published by: murugesh_mbahit on Jul 22, 2010
Copyright:Attribution Non-commercial


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A sick industrial unit may be defined as one whenit fails to generate surplus on a continuous basisand depends on frequent infusion of external fundsfor its survival.
According to RBI, a sick industrial unit should beconsidered so if it has ³incurred cash loss in the previous accounting year and is likely to continue toincur cash losses to the extent of 50% of those of its net worth.´ 

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