INDUSTRIAL SICKNESS OF MSMEs UNITS

Abstract Sickness in industrial units is a gradual process and does not develop suddenly. In the initial stages, it gets reflected in the form of defects and mistakes in the unit’s functional areas like production, finance and management. Later it is observed in the form of symptoms like irregular or unsatisfactory turnover in the account, slow and unsatisfactory movement of stocks, decline in production, sales and profitability, frequent violation of terms and conditions and asking for additional grants. The other common problems faced by MSME towards the creation of excess capacity: absence of comprehensive data. Under-utilization of installed capacity, inadequate planning production, persistent recessionary condition, shortage of raw material. In this chapter an attempt is made to review the sickness in MSMEunits at all India level and Andhra Pradesh state level.