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Monirba {Allahabad university}
Supported by – Manish kanojia (MBA III sem}
Presenter : Ritesh Pal 1
MBA (III rd sem.)
Agenda
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qIntroduction
qObjectives
q
qProcess flow chart of BIFR’s working
q
qFunctions of operating agency under SICA
q
qBIFR – organizational structure
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qFacts and Figures
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qConstraints faced by BIFR
qSuggestions to make BIFR more effective
q 2
qConclusion
q
q
Introduction
qIn the wake of sickness in the country’s industrial climate prevailing in the
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eighties, the Government of India set up in 1981, a Committee of Experts under
the Chairmanship of Shri T.Tiwari to examine the matter and recommend
suitable remedies therefore. Based on the recommendations of the Committee, the
Government of India enacted a special legislation namely, the Sick Industrial
Companies (Special Provisions) Act, 1985 (1 of 1986) commonly known as the SICA
q
qThe Board of experts named the Board for Industrial and Financial
Reconstruction (BIFR) was set up in January, 1987 and functional with effect from
15th May 1987
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Objectives
qTo evaluate the technoeconomic viability of sick industrial companies with a
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view to either rehabilitating them or to closing them down
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qTo stop continued drain of public and private resources
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qTo protect employment as far as practicable
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Process flow chart of BIFR’s working
Enquiry
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Net worth positive through its own efforts
▼
It is in public interest to rehabilitate
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Preparation of technoeconomic viability report
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Possibilities of merger or change of mgt.
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BIFR draws scheme of rehabilitation
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Consensus of parties called upon
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Fresh funds are released
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Advertisement inviting comments and objections 5
▼
Scheme is sanctioned by BIFR
Functions of operating agency under SICA
qConducting inquiry
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q
qPreparation of scheme
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qRecommendation to BIFR
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qImplementation of scheme
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qAppointment of liquidator by high court
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qTo prepare list of assets, liabilities, shareholders
All books of accounts, registers, maps, plants, records, documents of title or
ownership of property
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q 6
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Facts & Figures
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qYear wise performance
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q List of operating agencies
qRegistration of PSUs
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qNo. of cases registered (state wise)
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qNo. of cases registered (industry wise)
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qFiling of reference
Ø
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Constraints and Problems
qDelay in submission of reports by operating agencies
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q
qLack of prompt and final response in matters of relief and concessions
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qReluctance on the part of banks and FIs
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qProlonged delay from promoters side
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qAppeals registered with the AAIFR against BIFR
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qSeveral appeals against BIFR in High Courts
q
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Suggestions to make BIFR more effective
Ø
qOne time settlement of existing dues
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q
qSubstituting weak promoters by strong and resourceful promoters
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qConcessional interest rates where time resorted is less
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qSale of units by BIFR instead of passing winding orders to be implemented by
High Courts
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qRestriction over addition of new units unless the earlier ones are either closed
after due scrutiny by BIFR or Rehabilitated
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qConcurrence of majority of workers to be availed
q
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Conclusion
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Once again, it will require lot of expertise and exposure to plan and extend
counseling on all these areas. For this pooling of resources will be necessary.
A tall order indeed, but there seems to be no shortcut.
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References:
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qEntrepreneurship and Small Business Management by
M.B. Shukla
q
qwww.bifr.in
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