Manag., January-2017-Q45
0. Which one of the following is the most insignificant reason for sickness in the SSI sector?
- Option : C
- Explanation : The latest definition of Sickness given by the Working Group on Rehabilitation of Sick Units set up by the RBI (Kohli Committee)
is given below:-
“A small scale industrial unit is considered sick when
(a) If any of the borrowal accounts of the unit remains substandard for more than six months, i.e., principal or interest, in respect of any of its borrowal accounts has remained overdue for a period exceeding one year will remain unchanged even if the present period for classification of an account as substandard is reduced in due course; OR
(b) There is erosion in the net worth due to accumulated losses to the extent of 50 percent of its net worth during the previous accounting year, and
(c) The unit has been in commercial production for at least two years.”
