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Industrial sickness

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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".[who said this?]

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1 Meaning for people 2 Meaning for companies 3 Industrial Sickness In India 4 Causes of sickness in small scale industry
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4.1 Internal causes for sickness 4.2 External causes for sickness

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5 References 6 Further reading

Meaning for people [edit]
Main article: Occupational disease Industrial sickness is an umbrella term applied to various things associated with industry that make people ill and cause them to miss work. The solutions will have to be tailored to the specific industry, and only in that way can any real effect be made on improving the health and productivity of the industrial workforce. The key is an aggressive work-up on the health issues for a given segment of the industrial workforce, and usually broken down by type of work (which makes sense). Even as coal miners face overpoweringrespiratory threats, and foundry and mill workers have to confront major physical threats from large (heavy) quantities of extremely hot materials, each facet of industrial production has its hot-button health issues.

The bank amount which was outstanding in case of large industries for the same period also increased from Rs. This sickness arises due to internal disorder in the areas justified as following: .900 crores to Rs.1071 crores to Rs. And this position also remain same in the next decades. As per an estimate 300 units in the medium and large scale sector were either closed or were on the stage of closing in the year 1976.1306 at the end of the year 1986.Industrial health managers need training and experience identifying and remediating conditions that present major health threats to their respective workforces. About 10% of 4 lakhs unit were also reported to be ailing. 3287 crores at the end of year 1986 Dues of Small Scale sector also increased from Rs. Sugar.      Where the total number of large Industries which are sick were 637 units at the end of year 1985 increased to 714 units in the end of next year 1986. the member of sick units in the portfolio of scheduled commercial banks stood at 1.740 involving an out standing bank credit of Rs. 4874 crores. Likewise on the other hand the number of sick small scale units were also increased 1. 740 sick industrial units which contains large medium as well as small scale involving the total bank loan (credit) of Rs. 2002 "'Sick Industrial Company' means an industrial company which has i) The Accumulated losses in any financial year equal to 50 per cent or more of its average net worth during four years immediately preceding such financial year. Jute. or ii) Failed to repay its debts within any three consecutive quarters on demand made in writing for its repayment by a creditor or creditors of such company. 4874 at the end of the year 1986. Then they can train the rest of management and can teach the workers themselves about the best way to carry out their jobs with minimum threats to their health." Industrial Sickness In India [edit] Industrial sickness specially in small-scale Industry has been always a demerit for the Indian economy.2. Textiles small steel and engineering industries are being affected by this sickness problem. At the end of year 1986. Of the 147. Meaning for companies [edit] According to Companies (Second Amendment) Act.46 lakhs at the end of 1986. because more and more industries like – cotton.47. Causes of sickness in small scale industry [edit] The different types of industrial sickness in Small Scale Industry (SSI) fall under two important categories. They are as follows: Internal causes for sickness [edit] We can say pertaining to the factors which are within the control of management.18 lacks at the end of 1985 to 1.

delay in disbursement of loan by govt. shortage of power. d) Finance Constraints: The another external cause for the sickness of SSIs is lack of finance. wrong market research methods. c) Production Constraints: This is another reason for the sickness which comes under external cause of sickness. This arises due to shortage of raw material. inefficient working capital management. lack of coordination and control etc.. b) Marketing Constraints: The second cause for the sickness is related to marketing. and market recession. selection of inappropriate product mix. changes in global marketing scenario. import-export restrictions. lack of quality control. b) Bad Production Policies : The another very important reason for sickness is wrong selection of site which is related to production. bad maintenance of Plant & Machinery. inappropriate plant & machinery. absence of costing & pricing. lack of integrity in top management. lack of standard research & development and so on. excessive tax policies by govt. and bad sales promotions. bad labour relations. The sickness arrives due to liberal licensing policies. c) Marketing and Sickness : This is another part which always affects the health of any sector as well as SSI. restrain of purchase by bulk purchasers. External causes for sickness [edit] a) Personnel Constraint: The first for most important reason for the sickness of small scale industries are non availability of skilled labour or manpower wages disparity in similar industry and general labour invested in the area. fear ofnationalization. absence of product planning. This including wrong demand forecasting. fuel and high prices. lack of behavioural approach causes dissatisfaction among the employees and workers. .a) Lack of Finance: This including weak equity base. e) Ineffective Corporate Management: Another reason for the sickness of SSIs is ineffective or bad corporate management which includes improper corporate planning. unfavorable investments. poor utilization of assets. absence of planning and budgeting and inappropriate utilization or diversion of funds. This arises due to credit restrains policy. d) Inappropriate Personnel Management: The another internal reason for the sickness of SSIs is inappropriate personnel management policies which includes bad wages and salary administration.