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6. 7.
REMEDIAL MEASURES
1. 2. 3. 4. Establishment of a proper management information system for providing early warning signal from within. Financial institutions and banks should initiate necessary corrective action for sick or prone to be sick units based on diagnostic studies. Attempt should be made to restore sick units to financial health. If not it should be wound up. Excessive concern over unemployment resulting from the closure of sick unit is unwarranted. In such case setting up of national fund for the purpose and providing retraining for the workers. Setting up special institution The Broad for Financial and Industrial Reconstruction a single window clearing agency. Responsible management for mismanagement of a firm must not be given any assistance from financial institutions even for new venture.
5. 6.
REMEDIAL MEASURES
7. In any scheme of reconstructing of sick units all the stock holders should bear sacrifice on equitable and just basis. 8. Company taking over a sick unit must have the technology, capital and skill to save it. 9. Debt-equity ratio ought to be realistic. Fiscal policy, too, requires rationalization. 10. Incentives should be provided to professional managers helping in reviving sick units. 11. Treatment of capital-intensive units prone to sickness has to on a different footing than tackling of sickness in industry in general.
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