Vol. 3, Issue 2 (2016)
Causes of industrial sickness in Textile units in Coimbatore district- an analytical study
Author(s): Ms. Nagalaxmi A, Dr. Sethurajan S
Abstract: The business failure is an event which has always been painful to entrepreneurs, managers, investors, customers and all others concerned. It increases unemployment and decreases the availability of goods and services. The shareholders and creditors lose their savings and future business. Industrial sickness may be termed as 'technical insolvency' which occurs when a firm is found unable to meet its maturing obligations. It may also refer to 'real insolvency' where the total value of the firm's assets is found smaller than its liabilities. In a strict legal sense, industrial sickness is interpreted as 'bankruptcy or liquidation when its ceases its operations’. However, bankruptcy or liquidation is the ultimate conclusion of sickness and, therefore, the two are quite identical.