Home |MSME SSI Registration | What is the definition of a sick unit in MSME?

What is the definition of a sick unit in MSME?

Answer Notify Me - 1 Notifying - 2



Ajith Ajith
Answered on February 03,2020

As per the extant guidelines, a Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if Any of the borrower account of the enterprise remains NPA for three months or more. OR There is erosion in the net worth due to accumulated losses to the extent of 50% of its net worth during the previous accounting year. This criterion enables banks to detect sickness at an early stage and facilitate corrective action for revival of the unit.

Clap Clap 13
Share Share Answer Share Share
Views 635 views
tesz.in
Hey , can you help?
Answer this question

    • Related Questions