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Nilanjan Bhowmick AIR 3, CSIR NET (Earth Science)
Eduncle Best Answer
Definition of incipient sickness as per RBI guidelines (2008) :
An account may be treated to have reached the stage of incipient sickness/ potential sickness, if any of the following events are triggered.
(a) There is delay in commencement of commercial production by more than six months for reasons beyond the control of promoters and entailing cost overrun.
(b) The company incurs losses for two years or cash loss for one year, beyond the accepted timeframe on account of change in economic and fiscal policies affecting the working of MSEs or otherwise.
(c) The capacity utilization is less than 50% of the projected level in terms of quantity or the sales are less than 50% of the projected level in terms of value during a year.