State Of Emergency: Can A Business Stay Shut Down?
Businesses have been told by the government not to remain closed on Friday and Saturday. This has caused a great deal of inconvenience to people. There is a general consensus that the government is trying to help the economy rather than hurt it. Yet, businesses are saying that they cannot operate on such parameters. This has been caused by financial problems faced by the majority of companies.
The majority of Indian businesses have suffered in the past two years. The two-year recession has left the country with no source of funds. As a result, the government has implemented an emergency rule that all businesses must remain shut on Friday and Saturday. Even if your business has not closed down, you must ensure that its doors remain shut until further notice.
The reason for businesses being told not to stay shut is simple. The banks want their money to be lent to these businesses. If the business does not produce profits for the banks within the specified time, the money will be refused. This means that the businesses have no option but to remain shut. This has caused a lot of inconvenience for the people as well. You cannot run your business or get essential public services done during a state of suspension.
You cannot operate your office, school, shop, cinema etc. Unless the state approves it, you cannot do these things. Moreover, there is no one to look after your business when you are away from the office. You cannot take your children to school or attend to your clients or customers. All these activities bring in revenue and are therefore essential for the survival of a business.
On the other hand, if your business operates during such suspension period, you have no guarantee of funds coming in. If there is no revenue coming in, your business will not survive. It will either be forced to close shop or go out of business. If you have any investment into your business, you may be forced to give it up if your business does not come up during the suspension period. Your capital is invested in your business and this is an essential part of it.
If your business is shut down, you have lost all your capital, even if you have kept the books of the business. Your account details and the balance sheet will not be able to be shown in the books. What is more, your business will not be recognized by the state as it is not being operated. This makes it difficult for you to start up another business. Hence, it is advisable to keep your business running during a state of emergency.