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2011

Sickness causes in cooperative sugar factories in Andhra Pradesh a case study

Author:K.Srinivas and V.Apparao

Abstract:
Industrial sickness is a universal phenomenon, over the years the problem of the industrial sickness has grown not only in developing countries but also in developed countries. In India, the problem of sickness in industries has become very acute. It adversely affected the health of the industrial sector in particular and the economy of the country in general. This paper covers the causes of sickness in the cooperative sugar factories in Andhra Pradesh with reference to NCSF and to examine the revival / closure strategy of NCSF. The present study is based on secondary data and is substantiated by discussions and interviews with the officials of NCSF. The data is analysed by using appropriate statistical tools like averages, trend analysis and percentages. In order to identify the forewarning indicators of industrial sickness in Cooperative sugar factories, L.C. Gupta model of four financial ratios such as (1) EBDIT NS (2) EBDIT GTA (3) OCF NS (4) OCF GTA are also applied. It concludes that the originating factor was management ineffectiveness. The management could not make the farmers understand the importance of survival of NCSF. The management could not convince the farmers to continue to produce sugarcane for their survival vis-Ã -vis the NCSFs survival. EBT was negative for all the years but for 1998-99 it was positive due to interest waived. All these indications show that the organization was never sound, ultimately leading to sickness.