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.
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