Mil Presetation

7/31/2019 Mil Presetation

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Presenters:Kashyap Kansara

Pranav PatelAmit Chandani

Dhaval PatelDeep Patel


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Industrial Sickness is a unit or a firm which

continuously making losses and theaccumulated losses equal or exceeds itsassets.

The impact of sickness has been cause ofconsiderable concern to Workers,Government, Financial Institutions and Banks,

and also to the Community at large.


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A) which has accumulated losses in any financialyear equal to fifty percent or more of its averagenet-worth during four years immediatelypreceding the financial year in question , or

B) Which has failed to repay its debts within anythree consecutive quarters on demand forrepayment by its creditors An examination of the

above definitions suggests that financialperformance of a particular company gives anidea whether a company is sick or not.


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Internal Factors1. Production Decision

2. Marketing Decision

3. Financial Decision

4. Personnel Decision External Factors

1. INDUSTRY SPECIFIC FACTORS

2. GOVERNMENT RELATED FACTOR

3. FINANCIAL INSTITUTIONS RELATEDFACTORS

4. OTHERS


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Delay or default in payment to suppliers Irregularity in the bank account Continuous irregularity in cash credit accounts Delay or default in payment to banks and financial institutions Non-submission of information to banks and financial institutions. Frequent requests to banks and financial institutions for additional

credit. Decline in capacity utilisation. Poor maintenance of plant and machinery Low turnover of assets profit fluctuations, downward sales and fall in profits followed by

contraction in the share market Accumulation of inventories Inability to take trade discount Excessive turnover of personnel Extention of accounting period


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Company can revive from GovernmentMeasure which provide by Government todeal with Problems of Sickness

Company can Use various REVIVALPROGRAMME which will help company torevive by its own effort.

The company can take help of Board for

Industrial and Financial Reconstruction (BIFR)for the turn around of bad situation.


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Settlement with Creditors Provision of Additional Capital

Divestment and Disposal

Modernisation of Plant and Machinery Reduction in Manpower

Strict Control over Cost

Improvement in Managerial Systems

Change of Management


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providing Quality fabrics, with latest fashiontrends and in the finest tradition, catering tobroad product spectrum consisting ofShirting's, Bottom Weights, Children Wear,

Uniforms, Voiles, Lawns and sleepwear aswell as specialty fabrics.

Mafatlal Industries Ltd has two operatingplant, out of which one is at Nadiad andsecond is at Navsari.


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Nadiad plant was started in 1913 one of the largest composite textile mills in

the country.

This fabrics exported to the most demandingbuyers of Europe, U.K. , U.S.A. and MiddleEast.

Navsari plant was started in 1931.

installed capacity of 63,000 Spindles and210 Looms.


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In the year 1999, the total loss of MIL ( Rs.

326.49 Cr) was the higher than the net worth ofthe company ( Rs. 268.38 Cr.).

Also the total loan of the MIL like term loan,other loans are higher than the comapnies totalinvestment.

As a result company had only one option for therevival of company to approach BIFR to declare asick unit


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The company had closed to around 15000workers at its five Textile units in Mumbaiand Gujarat in early 1980s.

As the government had increased the Importduty on imported raw materials, resultsincrease in cost of production, which wouldlead to export losses to the company.


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The Board for Industrial & FinancialReconstruction (BIFR) had sanctioned theRehabilitation Scheme,

Company demerged in three: Navin Fluorine

International Limited, Sulakshana SecuritiesLimited, Mafatlal Industries Ltd.

Share Capital of the Company was written downby reducing the face value of the equity shares by

90 % i.e. from Rs.100/- to Rs. 10/- per Share. NFIL contributed to the Company Rs.90 Crores

for the rehabilitation of the Company.


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Company had entered into an arrangementfor joint development of land at Lower ParelUnit with M/s. Marathon Realty Ltd., on theterms of percentage sharing of sale proceeds

at the rate of 56.50 % to the Company and43.50 % to the said Developer. The Company has entered into an Agreement

for Sale with Annapurna Polymers Pvt. Ltd.,

(APPL) for the sale of Ahmedabad Unit at anaggregate consideration of Rs.6.77 Crores tofinance the VRS cost of the Unit.

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