Download - role of BIFR
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Role of BIFR
Monirba {Allahabad university} Supported by – Manish kanojia (MBA III sem} Presenter : Ritesh Pal MBA (III rd sem.)
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Agenda
Introduction
Objectives
Process flow chart of BIFR’s working
Functions of operating agency under SICA
BIFR – organizational structure
Facts and Figures
Constraints faced by BIFR
Suggestions to make BIFR more effective
Conclusion
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Introduction
In the wake of sickness in the country’s industrial climate prevailing in the 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
The 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
To evaluate the techno-economic viability of sick industrial companies with a view to either rehabilitating them or to closing them down
To stop continued drain of public and private resources
To protect employment as far as practicable
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Process flow chart of BIFR’s working
Enquiry▼
Net worth positive through its own efforts▼
It is in public interest to rehabilitate▼
Preparation of techno-economic viability report ▼
Possibilities of merger or change of mgt.▼
BIFR draws scheme of rehabilitation▼
Consensus of parties called upon ▼
Fresh funds are released▼
Advertisement inviting comments and objections▼
Scheme is sanctioned by BIFR
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Functions of operating agency under SICA
Conducting inquiry
Preparation of scheme
Recommendation to BIFR
Implementation of scheme
Appointment of liquidator by high court
To 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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Facts & Figures
Year wise performance
List of operating agencies
Registration of PSUs
No. of cases registered (state wise)
No. of cases registered (industry wise)
Filing of reference
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Constraints and Problems
Delay in submission of reports by operating agencies
Lack of prompt and final response in matters of relief and concessions
Reluctance on the part of banks and FIs
Prolonged delay from promoters side
Appeals registered with the AAIFR against BIFR
Several appeals against BIFR in High Courts
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Suggestions to make BIFR more effective
One time settlement of existing dues
Substituting weak promoters by strong and resourceful promoters
Concessional interest rates where time resorted is less
Sale of units by BIFR instead of passing winding orders to be implemented by High Courts
Restriction over addition of new units unless the earlier ones are either closed after due scrutiny by BIFR or Rehabilitated
Concurrence of majority of workers to be availed
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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:
Entrepreneurship and Small Business Management by M.B. Shukla
www.bifr.in
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