Discussion
Which one of the following criteria defined by Kohali Committee as a criteria to identify sick unit in third census ?
Answer: A
The Kohli Committee criterion is erosion in net worth to the extent of 50%.
The Working Group headed by S.S. Kohli (2000) defined a small-scale unit as sick if any of its borrowal accounts remained substandard for more than six months, or if there was erosion in its net worth due to accumulated cash losses to the extent of 50 percent of its net worth during the previous accounting year, the unit having been in commercial production for at least two years. These criteria were used in the Third All India Census of Small Scale Industries.
An 80 percent erosion, a three-month delay in repayment and a one-year decline in output are not the Kohli criteria.
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