FORMAT FOR SCHEME/OUTLINE FOR PROPOSALS TO BE PRESENTED BEFORE THE BOARD OF RECONSTRUCTION FOR PUBLIC SECTOR ENTERPRISES (BRPSE)

1.     Background and Executive Summary

1.1. Basic details about company: establishment / incorporation / location / manpower etc. (besides history of company include present details of location and products of all units).

1.2. Details of top management team – append CV, track record, statement regarding appointment and tenure of Chief Executive, all functional directors and executives of and above the rank of General Managers.

1.3. Details of other Board members (part-time) along with tenure, etc.

1.4. Capital base-Authorised and Paid-up as also Net worth and liabilities

1.5. The products and services, market and technology analysis: Include information on main competitors (domestic and global) and how they are doing vis-à-vis the market. Comment on the general industrial environment of the sector and the place and market share of the PSE vis-à-vis that sector.

1.6. Brief mention of revised strategy and competitive advantage post-restructuring

2. Reference to BIFR/Disinvestment (if any)

2.1.  When Net worth eroded completely

2.2.  Earlier Rehabilitation schemes if any

2.3.  Present Status in BIFR

2.4.  Draft Rehabilitation Scheme if circulated –stand of Govt. on it.

2.5.  Company’s reference to DODI (if any)

3. Working results and financial position

3.1.  Physical and financial performance for the last five years (Production, Capacity Utilization, Turnover, Profit and Loss, Order Booking) accompanied by the comments on the changing financial performance along with ratio analysis like Return on Investment (ROI), current ratios, sales/asset ratio, wages/salaries/sales ratio, capacity utilization, etc.

3.2.  Capital investment if any and result thereupon

3.3.  Position on Loans and Interest repayments

3.4.  Employees and Statutory dues if any

4.      Reasons for sickness or sub-optimal performance

4.1.  Strategic issues (i.e. Why earlier strategy failed)

4.2.  Organisational/Management issues

4.3.  Operational issues

4.4.  Marketing issues

4.5.  Technology and market access issues

4.6.  Taxes and Duty (Customs, Excise etc.) Structure issues (if any)

5. Remedial action taken in the past, if any

5.1.  Manpower rationalisation

5.2.  Product diversification

5.3.  Improvement in marketing

5.4.  Attempt at optimisation of resources etc.

6.     Draft Rehabilitation scheme (including any on-going scheme circulated by BIFR/Financial Restructuring Package of the company.)

6.1.  Details of scheme in abstract form

6.2.  Summary of recommendations and options for the enterprise

6.3.  Gist of change in process or improvement in process or product if any envisaged in the scheme,

6.4.  How is the new strategy seen to be different or better

7.     Fund requirements and means of finance (in tabular format):

7.1.  Item or Unit (physical) - Requirement (Financial)

7.2.  Waivers, if any

7.3.  Sacrifices by GOI

7.4.  Sacrifices by State Govt., if any (confirmation letter for such sacrifices from State Govt./its agencies to be enclosed)

7.5.  Sacrifices by FIs/Banks, if any (confirmation letter for such sacrifices from FIs/Banks, etc. to be enclosed)

7.6.  Grant/loan from GOI

7.7.  Money to be raised from market against govt. guarantee

7.8.  Sale of assets, if any (confirmation of permission letter from State Govt., if required, to be attached)

8. Exemptions/relaxations required

8.1. Income Tax liability on waiver of interest/loan/Govt. guarantee fee/sale of assets

8.2. Revision of Pay Scales

8.3. Enhancement of superannuation age

8.4. Extension of Board level appointees. 

9.      Future prospects

9.1.  Projection of profitability after implementation of scheme over next five years accompanied by detailed description of assumptions made, basis of such assumptions and should be compared with the best performance achieved anytime in the past or with other units in the industry

9.2. Competitive advantages of the company after restructuring

9.3. Sustainability of the profits and responsibility of management and staff in ensuring it

9.4. Comments on how present proposal addresses the failures of earlier restructuring packages

10.     Proposal(s) seeking approval of the Board

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