Causes for Sick Industrial Company.

"`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; 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." The above definition tell us that, one may say that moratorium period has after all not been done away with — if anything, it has been retained at the same level of five years. It is clear that the moratorium period has been completely done away with. For, had the four-year moratorium period been intended that would have been made a common factor for both clauses. In the event, every industrial company would inevitably and invariably have to press the panic button needlessly in vast majority of cases and a trifle prematurely in others. This would happen because no industrial company can start making profit from year one. Gestation period ranges from a couple of years to a decade.

 Example

A power manufacturer has a capital of Rs 100 crore and in the first year it incurs a loss of Rs 50 crore, bulk of it thanks to huge start-up expenses that it is unable to capitalize in his books of account.

It would be unfair to brand it sick especially if there is nothing inherently wrong in its business plan and it is sure of turning the corner in a couple of years.

One may still contend that on the touchstone of accumulated losses, the moratorium period of five years has been retained. They may buttress their argument by pointing to absence of provisions similar to those contained in Section 43C of the Income-Tax Act which albeit in a totally different context says that if a company has been in existence for lesser number of years, the average figure would be found out by aggregating the total income for the years the company was in existence and dividing the same by those many number of years.

 Industrial sickness specially in small-scale Industry has been always a demerit for the Indian economy, because more and more industries like – cotton, Jute, Sugar, Textiles small steel and engineering industries are being affected by this sickness problem.

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. About 10% of 4 lakhs unit were also reported to be ailing. And this position also remain same in the next decades. At the end of year 1986, the member of sick units in the portfolio of scheduled commercial banks stood at 1.47,740 involving an out standing bank credit of Rs. 4874 crores.

Classification and Tabulation.

In any statistical investigation, the collection of the numerical data is the first and the most important matter to be attended. Often a person investigating will have to collect the data from the actual field of inquiry. For this he may issue suitable questionnaires to get necessary information or he may take actual interviews; personal interviews are more effective than questionnaires, which may not evoke an adequate response. Another method of collecting data may be available in publications of Government bodies or other public or private organizations. Sometimes the data may be available in publications of Government bodies or other public or private organizations. Such data, however, is often so numerous that one’s mind can hardly comprehend its significance in the form that it is shown. Therefore it becomes, very necessary to tabulate and summarize the data to an easily manageable form. In doing so we may overlook its details. But this is not a serious loss because Statistics is not interested in an individual but in the properties of aggregates. For a layman, presentation of the raw data in the form of tables or diagrams is always more effective.

Tabulation

It is the process of condensation of the data for convenience, in statistical processing, presentation and interpretation of the information.

A good table is one which has the following requirements:

It should present the data clearly, highlighting important details.

It should save space but attractively designed.

The table number and title of the table should be given. +

Row and column headings must explain the figures therein.

Averages or percentages should be close to the data.

Units of the measurement should be clearly stated along the titles or headings.

Abbreviations and symbols should be avoided as far as possible.

Sources of the data should be given at the bottom of the data.

In case irregularities creep in table or any feature is not sufficiently explained, references and foot notes must be given.

The rounding of figures should be unbiased.

Classification

"Classified and arranged facts speak of themselves, and narrated they are as dead as mutton" This quote is given by J.R. Hicks.

The process of dividing the data into different groups (viz. classes) which are homogeneous within but heterogeneous between them is called a classification.

It helps in understanding the salient features of the data and also the comparison with similar data. For a final analysis it is the best friend of a statistician.

Open office and Private office.

Open Office

A large room where all the departments, men and equipments are accommodated without partition wall is called an open office. In this case, staff is put in big hap instead of separate rooms. In that hall every department is allotted a separate space and the departmental demarcation is done through filing cabinets or shelves. Open office makes fullest utilisation of space and ensures better control. The greatest drawbacks of open offices are absence of privacy and impersonal atmospphere.

Private Office

Private offices denote small rooms separated from similar other rooms. In private office, small group of staff sit in a small room, which may be constructed by using pucca walls, or a part of open office converted into cubicles through partitions. These are allotted to top executives and important persons in the management like managing director, general manager and departmental managers.

Private office ensures greater privacy in work and create personal atmosphere in work. These are also uneconomical and create a stale of decentralization.

Warranty and Guarantee.

The necessity of a guarantee emerged as a means of protection to safeguard the right of the consumer. With the strength of the guarantee, a seller is liable to make the complete replacement of the purchased item, in case it was found to be below the prescribed standard. This is given by the seller or the manufacturer of a product to the customer and remains valid for a fixed period. The guarantee is a legal instrument irrespective of whether the customer paid for the article or not. Likewise, the warranty is also an instrument to safeguard the rights of a consumer. It requires payment on the part of the customer to make it legally viable as in the case of an insurance policy. With the strength of the warranty, the seller or the manufacturer is liable to face the judicial courts if the seller or the manufacturer fails to comply with the provisions of the warranty on their part. Warranty is only relevant to the repairing of articles.

A guarantee is generally given by manufacturers whereas the warranty is provided by most of the retail sellers or distributors. In a case of motorcycle purchase, there is the guarantee from the manufacturer and the seller has to provide the warranty on the vehicle from his part.

The main difference between guarantee and warranty lies in the dissimilarity of expectations in both the cases. Generally, it is believed that one can get his money back with the strength of a guarantee, if the product is defective or does not provide the assured standard. Warranty, on the other hand implies the provision of getting the article repaired if the product is defective. The most common in the recent period is the use of a limited warranty, which places conditions on the parts of an article, the quality of damage incurred and the time period of validity of the document. Naturally, the expectation in a warranty is reduced by the expression they use in the warranty document and hence the expectations are minimal. Therefore there is a vast difference in the essence and spirit of guarantee and warranty which the consumer must understand before expecting the benefit of such a document on the purchase he makes.

1. A guarantee is always free. A warranty attracts charges as the insurance policy.

2. The guarantee is a commitment to make good defects of a product or a service in a fixed period. A warranty looks after the repairing of a new article within the validity period.

3. A guarantee is a legal contract without any payment. A warranty received on payment is also a legal instrument with which the seller can be brought to books.

4. A guarantee is an addition to the legal consumer rights. A warranty does not affect the rights under the consumer act.

5. A guarantee is applicable irrespective of the provision of the warranty. A warranty is free to go together with a guarantee issued on the same article.

Public limited company and Co-operative organization .

A public limited company (legally abbreviated to plc with or without full stops) is a limited liability company that sells shares to the public in United Kingdom company law, in the Republic of Ireland and Commonwealth jurisdictions. It can be either an unlisted or listed company on the stock exchanges. However, certain public limited companies (mostly nationalised concerns) incorporated under special legislation are exempted from bearing any of the identifying suffixes. Some companies in Finland, referred to as "Osakeyhtiö (julkinen)" in Finnish, are called "plc"s in English, which is nothing more but a direct translation of the fact that an "Oyj" is a company listed on the stock exchange

A cooperative (also co-operative or co-op) is a business organization owned and operated by a group of individuals for their mutual benefit.[1] A cooperative is defined by the International Cooperative Alliance's Statement on the Cooperative Identity as "an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through jointly owned and democratically controlled enterprise".[2] A cooperative may also be defined as a business owned and controlled equally by the people who use its services or by the people who work there. Various aspects regarding cooperative enterprise are the focus of study in the field of cooperative economics.