271 corporations shut operations in Northern area amid pandemic


Vijay C Roy
Tribune News Service
Chandigarh, September 3

As many as 271 corporations in Punjab, Haryana and Chandigarh have closed their operations prior to now 4 months of the present fiscal. Further, 1,698 corporations are within the technique of being struck off from the checklist of Ministry of Corporate Affairs (MCA) for not submitting their annual returns, steadiness sheets and different violations.

The most variety of corporations which ceased to exist have been in Punjab (136), adopted by Haryana (70) and Chandigarh (65). As many as 1,002 corporations in Haryana are in technique of being struck off from the MCA checklist, adopted by Punjab (451) and Chandigarh (245).

According to sources, the pandemic affected all sectors and led to say no in industrial manufacturing, leading to closure of many corporations. For the month of April and May, the Index of Industrial Production (IIP) witnessed a steep damaging progress (year-on-year) of -57.6% and -33.9%, respectively. However, as the commercial exercise resumed, the expansion for June stood at -16.6% as in comparison with June 2019. Among the worst-impacted sectors have been auto elements, textiles, clothes, hand instruments and sports activities items.

In addition to this, the startups have been additionally hit badly as they’d restricted money reserves to fulfill the fastened bills. “Lack of working capital and cash flows led to layoffs initially and later closure of units,” stated an official related to a startup.

As on July 31, 116 corporations within the area have achieved “dormant” standing u/s 455 of the Companies Act.



Be the first to comment on "271 corporations shut operations in Northern area amid pandemic"

Leave a comment

Your email address will not be published.


*


%d bloggers like this: