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General query on accounts

RAJESH KHANNA (SALES CUM ACCOUNT EXECUTIVE) (148 Points)

13 September 2016

In case any Partnership firm is going in loss for the last three years . Can this firm be continued or it can be closed. Please advise. Please advise what remedies can be available for partnership firm to continue in case it does not yield any profit. In case of Closure, is it at the discretion of the Partners or it is mandatory to wind up this company asper directives from RBI in case any company/partnership firm curtails financial loss continuously for three consecutive year, it must be wound up. Please advise

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Unnikrishnan B (Forex In Charge) (740 Points)
Replied 14 September 2016

There is no law in india to closr the partnership to close it manadorily whan it make losses

For making the partnership firm profitable in the initial stages 100% focus is require

.when i was posted as Branch head when i had only 3 years experience as an officer at the branch .what i had done is i went to every housrholds near to our branch and the services provided by us and soght theur help

Afterwards the business improved

Now the branch is making very good profit with miniscule NPA

What i am telling you is in the initial stages you have to put 100 % devition is required you have to treat is as your child .the child requires care and support in the childhood stage

Thank you