Friends
When going is good , everything
looks good. The society, Relatives, Friends, Peers, Employees and Colleagues
give lot of respect and applause. Everything goes so smooth and fast that it is
impossible to imagine about the possible tough time. As called quite often ‘the
Charity and challenges begin from home’, exactly same thing happens in business
too when the turbulent time starts. Our own people start doubting the capabilities and even the past
achievements. The promoters gradually get replaced by new set of people who are
not very positive. Everything is doubted and non communication becomes the most
popular tool. Generally it is experienced that the doubts on the capabilities
of the promoters lead to fear and hence the situation starts deteriorated day
by day. The Bankers ask certain information, Data and explanation which are perceived
to be potential threat for the borrower , who , out of fear , either avoids or
gives wrong information. The cascading effects of one misinformation is so much
that very soon both borrower and lender who are basically partners part ways
and start taking actions which is in their short term interest. No one is
concerned about the unit, its’ employees and other stake holders. The situation
becomes so worse that the unit which was bread & Butter for all becomes a
liability and planning starts for getting rid of that poor sick unit.
Family members of the promoter
are one of the key stake holders and hence their role is very important in
deciding the fate of the stressed units. It is very easy to discard an ailing
unit which is not generating any more revenues but to revive, a lot of guts and
hard decisions needed. An ailing unit , if treated as family member by the
promoter, has great potential to revive. In general, it is noticed that the
wealth generated by the unit which is not doing well now, has only one way.
Neither promoter nor his family would ever return back ,even a very small part
of such wealth, to revive the unit. No one would ever part with the luxury for
a short period and that is the basic reason in lot many NPA cases. If the promoters’
family alongwith other stake holders put complete faith in the troubled entrepreneur,
the probability of revival is very high. There is no system to involve the
family members in ailing unit as the communication is always in legal language
by the lenders and hence nothing revives.
Although mistakes are bound to happen but Nobody is going to repeat the same mistakes
next time if chance given. Business has uncertainty as its’ basic character but
that given fun too.
In my view, the recovery process
should be avoided to the maximum possible and the lenders should start communicating
with other stake holders. If proactively handled, the unit has some probability
of revival. Family members if ascertained properly can play a very important
role in coming out of the tough situation. A promoter with established track of
entrepreneurship can definitely bounce back if chance given and intentions are
good.
Please don’t mistake me that all
the promoters have good intentions.
CP
No comments:
Post a Comment