project priya l

8/17/2019 Project Priya l

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PROJECT REPORT ON

WORKING CAPITAL APPRAISAL AND TERM DEBT ASSESSMENT

PRACTICES FOLLOWED IN BANKS FOR MSME LENDING

BY

PRIYAL CHOWKHANI

GUIDE

Shri I.K AGARWAL

AT

ALLAHABAD BANK, RASH BEHARI AVENEUE,KOLKATA

SUMMER INTERNSHIP PROJECT REPORT SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF

POST GRADUATE DIPLOMA in MANAGEMENT

(2013-2015)

AT

NATIONAL INSTITUTE OF BANK MANAGEMENT,PUNE

1


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CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

This is to certify that MS !IYA" #$%&'$AI st*+e,t of GDM

(2013-15) atio,a I,stit*te of Ba,. Ma,a/ee,t has s*ccessf*y

coete+ her S*er I,ter,shi roect o, WORKING CAPITAL

APPRAISAL AND TERM DEBT ASSESSMENT PRACTICES FOLLOWED

IN BANKS FOR MSME LENDING fro 30404201 to 224064201 for the artic*ar f*fie,t of the re7*iree,ts for the a8ar+ of ost

Gra+*ate Dioa i, Ma,a/ee,t 9y atio,a I,stit*te of Ba,.

Ma,a/ee,t *,e *,+er y /*i+a,ce4 She ha+ ta.e, i,terest i, the

roect a,+ 8or.e+ si,cerey +*ri,/ her stay here4 This is her 9o,afi+e

8or.4

DATE:

(Shri I4'4 AGA!&A")

#hief Ma,a/er

!ash Behari Bra,ch

Aaha9a+ Ba,. .o.ata

PREFACE

2


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This roect !eort has 9ee, reare+ i, artia f*fie,t of the re7*iree,t for

the a8ar+ of ost Gra+*ate Dioa i, Ba,.i,/ a,+ ;i,a,ce i, the aca+eic year

2013-154

The ratio,ae 9ehi,+ reari,/ this roect reort 8as to ay y theoretica

.,o8e+/e a9o*t &or.i,/ caita assesse,t a,+ ter oa, assesse,t i,to

ractices a,+ to .,o8 the stes foo8e+ 9y the 9a,. to iss*e oa,s4 The o9ecti


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SL.N! CONTENTS P". NO

PROFILE OF THE BANK #$%

1.INTRODUCTION &

2. OBJECTIVES '(

3. DETAILED UNDERTANDING OF MSME ''$)'

4. LITERATURE REVIEW )*$+

5. RESEARCH - METHODOLOGY +

6. ANALYSIS - INTERPRETATION +%$#

7. CONCLUSION - RECOMMENDATION $%

8. SUGGESTION FOR FUTURE RESEARCH &

9. E/ECUTIVE SUMMARY (

10. BIBLIOGRAPHY '

INDE/

4


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>ISI%: To *t the Ba,. o, a hi/her /ro8th ath 9y 9*i+i,/ a Stro,/ #*stoer-9ase thro*/h

Tae,t Ma,a/ee,t i,+*ctio, of State-of-the-art Tech,oo/y a,+ thro*/h Str*ct*ra !e-

or/a,i?atio,4

MISSI%: To e,s*re a,y8here a,+ a,ytie 9a,.i,/ for the c*stoer 8ith atest state-of-the-art

tech,oo/y a,+ 9y +e


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120Cs The Ba,. 9ecae a art of % Ba,.i,/ #ororatio,Cs /ro*

8ith a 9i+ rice of !s4436 er share

123 The $ea+ %ffice of the Ba,. shifte+ to #ac*tta o, B*si,ess

co,si+eratio,s4

*y 1 16 atio,ai?e+ ao,/ 8ith 13 other 9a,.s Bra,ches - 151

Deosits - !s411 crores A+


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The /o


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- Gross #re+it s*r/e+ to !s41005 #rore fro !s413036 #rore ast year4 Year-o,-Year 9asisthe Gross #re+it i,crease+ 9y 461 F4 - #re+it Deosit !atio stoo+ at 426F as at March 2014 - !etai #re+it /re8 to !s4130@ #rore fro !s4165 #rore ast year 8ith a, Y-%-Y /ro8th of

43F4

- o,-;*,+ o, I,terest I,coe +*ri,/ the ;i,a,cia Year e,+i,/ March 201 stoo+ at!s410@5

#rore as a/ai,st!s41@ #rore ast year4

- #aita A+e7*acy !atio stoo+ at 10426 F as o, 314034201 *,+er Base-II ,ors a,+ at 46F*,+er Base-III ,ors4 - Gross A to Gross A+


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'. INTRODUCTION

A +e


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*. OBJECTIVE

The ai, o9ecti


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3. DETAILED UNDERSTANDING OF MSME

DEFINITION OF MSME

I, ters of MSMED A#T 2006 the MSME sector corises of icro E,terrises Sa

E,terrises a,+ Me+i* E,terrises i, Ma,*fact*ri,/ Ser


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(SE!>I#E) ser


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(SE!>I#E)ser


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ris.s faci,/ their 9*si,ess tha, their e,+ers) eists e,+ers ay reso,+ 9y i,creasi,/

e,+i,/ ar/i,s to er:

'. I, ters of the recoe,+atio,s of the rie Mi,ister=s Tas. ;orce o, MSMEs 9a,.s are

a+


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A. Manufacturing Activities: B. Service Activities:

i. $edical %ip'ent and ()#rvedic*rod#ct

ii. +o'posite #nit of acon

*rocessin! and *i!!er) -ar'

iii. To"acco *rocessin!

iv. eedi+i!arette 'an#fact#rin!and other to"acco prod#cts

v. %/traction of (!ave pirit fro'(!ave #ice i'ported 'edicinal plant e/traction of (!ave

vi. $an#fact#re of io-ertilier

i. anitation ervices irin! of eptic

Tan +leaner

ii. +linical *atholo!ical a"oratories

and cannin! , $: Tests

iii. ospitals

iv. (!ri+linic and (!ri#siness

v. esta#rants ith ar

vi. +anteens

vii. otels

viii. $otel :nd#str)

ix. +ons#ltanc) ervices incl#din!

$ana!e'ent ervices.

x. +o'posite roer ervices in is

and ins#rance $ana!e'ent.

xi. Third *art) (d'inistration T*(

ervices for 'edical ins#rance +lai's

of *olic) olders.

xii. eed ;radin! ervices.

xiii. Trainin!c#'inc#"ator +entre.

xiv. %d#cational :nstit#tions.

xv. Trainin! :nstit#tes.

xvi. -air price shops.

xvii. +ons#'er cooperative stores.

xviii. *rivate etail Trade oan #ptos.20 lac

xix. *ractice of a, i.e. le!al

services

xx. Tradin! in 'edical instr#'ents

15


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"rand ne.

xxi. *lace'ent and $ana!e'ent

+ons#ltanc) ervices.

xxii. (dvertisin! a!enc) and Trainin!

centres.

xxiii. (n) other eli!i"le activities.

C The folloin! cate!ories ill not "e classied #nder 'an#fact#rin! or as ervice %nterprises<

i. Piggery ar! itho#t "acon processin! as this is a far'in! activit).

2. The activit) of =Bee-"ee#ing> "ein! far'in! allied activit).

COMMON GUIDELINESINSTRUCTIONS FOR LENDING TO MSME;

' L!0n

A6i10:i!n;

• ;or oa, 9eyo,+ !s425"acs 9ra,ches ay o9tai, a++itio,a

i,foratio, fro the 9orro8er as +eee+ ,ecessary as

i,cororate+ i, the chec.ist e,cose+ to the oa, aicatio,

for4

• Before ha,+i,/ o


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Di;!;06 !5 A6i10:i!n;:

I, case of "oa,s * to !s425000- : &ithi, 2 8ee.s

I, case of "oa,s a9o


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) M0r"in F3n4>4 Li4 Li


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ar/i, sti*ate+4

• I, case of oa, acco*,ts ,ot co R0:in" A">n1i>;:

Ba,. has e,tere+ i,to M%U 8ith #!ISI" %I#!A SME!A

I#!A B!I#' &%!'S a,+ #A!E for rati,/ of MSME 9orro8ers

a,+ the sae 8i 9e ta.e, i,to co,si+eratio, for aroriate e,+i,/

+ecisio, aart fro i,ter,a 4To roote ore eter,a rati,/ 8hich

ro


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sa,ctio, of ,e8 co,,ectio, ay eercise the a*thority4

Pri1in" R0:> !5

In:>r>;:

The rate of i,terest to the 9orro8er cassifie+ *,+er Micro Sa a,+

Me+i* E,terrises 8i 9e /*i+e+ 9y 9a,.=s oicy o, i,terest rate

iss*e+ fro tie to tie4

•C!n1>;;i!n; !n R0:> !5 In:>r>;: :

#o,cessio, of 0450F 9eo8 the aica9e rate s*9ect to i,i*

of Base !ate i, case of $i/hest a,+ $i/h rate+ acco*,ts for rati,/

+o,e 9y o*tsi+e rati,/ A/e,cies4

#o,cessio, of 0450F 9eo8 the aica9e rate s*9ect to i,i*

of Base !ate i, case of oa, ao8e+ to &oe, 9e,eficiaries4 A,y

other co,cessio, i, i,terest rate ay 9e ao8e+ as er i,terest rate

oicy of the 9a,. iss*e+ fro tie to tie4

R>0=n:

M!r0:!ri3<

• !eaye,t sche+*e sho*+ 9e fie+ ta.i,/ i,to acco*,t the

s*ste,a,ce re7*iree,ts s*r*s /e,erati,/ caacity the 9rea.-

en: !5

L!0n

The +is9*rsee,t of the oa, 8i 9e a+e i, hases +ee,+i,/ o,

the ro/ress o, iee,tatio, of the roect a,+ aye,t to8ar+s

cost of a,t a,+ Machi,ery E7*ie,t a,+ other fie+ assets 8i 9e

a+e i, fa


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caita co*te+ o, the 9asis of t*r,o


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'' Di;1r>:i!n0r=

A3:h!ri:=

Discretio,ary a*thority for sa,ctio, of cre+it faciities as 8e as

sa,ctio, of a+hoc cre+it faciities 8i 9e as er Discretio,ary

A*thority circ*ari?e+ 9y the Ba,.4

'* R>@i>9 !5

P!r:5!6i!

At the o,a %ffice e


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co*,icatio,4

(e) E,co*ra/e ar.et forces thro*/h coetitio, to achie


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Mar.eta9iity or the ar.et share of the firCs ro+*ct is


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#re+it "iit

C6>0n A+r5!r4i: S1h> of the 9a,. if sa,ctio,e+ for

erso,a *se(,ot for 9*si,ess acti1:) ha1:) ha


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CRG$ C? ;or a+ehice Schee4

CRG$D ;or a+n4in" 6i2> PMRY, SGSY >:1. 9i66 1!n:in3> :! 7> 1!@>r>4

3n4>r :h3 "3i4>6in>; !5 CRG$('.

Th> :hr>> ;:0"> r!1>;; in 10;> !5 RAM - CRG$* :! CRG$ ; 0r> 0; 3n4>r:

(a) !ati,/ Mo+*es hes isoate ris. eee,ts *si,/ a to-+o8, aroach4 The *ser is re7*ire+

to score the coa,y o, ris. factors o,y (8hich are a*toaticay 9*it * sta/e 9y sta/e i,to

the fi,a /ra+i,/)4

S:0"> I The *ser scores each ris. factor4>ario*s !is. ;actorsaraeters 8ithi,

III The scores for ris. araeters are f*rther a//re/ate+ to arri


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#!ISI"=S

!AMQ

I,+*stry

Acti Gr04> D>5ini:i!n;?

641 A Sta,+ar+ Assets 8i 9e /ra+e+ 9et8ee, AB1 to AB +ee,+i,/ *o, scores o9tai,e+

8hereas a As 8i 9e /ra+e+ as AB@4 >ario*s cate/ories of As >I- SST DT "oss 8i

f*rther 9e s*9cate/ori?e+ as AB@A AB@B AB@# resectiery "o8 5410-6400 A9o


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AB- ;air Beo8 34@0

* to 340

A9o

Ri;2

Gr04>

Gr04> D>;1ri:i!n

5410 - 6400 AB 1 The f*,+ae,tay stro,/ +e9t ser


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2450 - 3400 AB 6 A+


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CMA DATA

I, or+er to assess the re7*iree,ts of 8or.i,/ caita o, the 9asis of ro+*ctio, ,ee+s it is

,ecessary to /et the +ata fro the 9orro8ers re/ar+i,/ their astroecte+ saes cost of

ro+*ctio, cost of saes oerati,/ rofit etc4 I, or+er to ascertai, the fi,a,cia ositio, of the

9orro8ers a,+ the ao*, of 8or.i,/ caita ,ee+s to 9e fi,a,ce+ 9y 9a,.s it is ,ecessary to cafor the +ata fro the 9orro8ers re/ar+i,/ their ,et8orth o,/ ter ia9iities fie+ assets

c*rre,t assets etc4 A searate of fors has 9ee, +esi/,e+ for tra+ers a,+ ercha,t eorters4

The #MA +ata are *se+ for coecti,/


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FORM$ VC!

%, the 9asis of the +etais of the c*rre,t assets a,+ c*rre,t ia9iities /i

MB; is cac*ate+ i, this for to fi,+ o*t the cre+it iits to 9e ao8e+ to the 9orro8ers4

FORM$VI F3n4; 56!9 ;:0:>n:

I, this for f*,+s fo8 of o,/ ter so*rces a,+ *sers is /i


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+.LITERATURE REVIEW

#re+it Araisa is a hoistic eercise 8hich starts fro the tie a rosecti


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The


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III) ;*,+e+ +e9t ratio

This ratio is cac*ate+ 9y +i


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>II) Tota Assets to ,et 8orth ratio:

This ratio 8i i,+icate the ete,t to 8hich the o8,e+ f*,+s are i,


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RIII) et rofit ar/i, (9t,et saes)

This ratio 8i i,+icate the rofita9iity of the cororate i, reatio, to the


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#. Ar0i;06 !5 1:.

The i+e,tificatio, of the 9orro8er is +o,e roery thro*/h scr*ti,y of his a,tece+e,ts

eerie,ce coete,ce i,te/rity etc4 This ay 9e +o,e 9y o9tai,i,/ stat*s reorts fro

rer@i;i!n 0n4 5!66!9$3

ost sa,ctio, s*er


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;or-3(haf yeary):oeratio,a a,+ fi,a,cia i,foratio, i, resect of saescost of /oo+s so+

rofitossositio, 8ith re/ar+ to i,fo8 a,+ o*tfo8 of f*,+s

MEANS OF FINANCE?

A;;>;;n: !5 9!r2in" 10i:06

8or.i,/ caita is re7*ire+ to s*stai, +ay to +ay f*,ctio,i,/ of a,y i,+*stria *,it4 >ario*s

i,fo8s o*tfo8s of cash co,stit*te the 8or.i,/ caita cyce(as +eicte+ 9eo8) of the

coa,y4 Ba,.s fi,a,ce for this re7*iree,t of 8or.i,/ caita e,s*ri,/ a i,i* ar/i, that

is to 9e arra,/e+ 9y 9orro8er hisef4 Ba,.s 8ith their


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A T3rn!@>r :h!4?

This is aica9e to a 9orro8ers e,oyi,/ f*,+-9ase+ 8or.i,/ caita cre+it iits * to a,+

i,c*si


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cash fo8 statee,ts

Borro8ers ha


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The effecti;;? >a*e of Bis +isco*,te+ 9y the 9a,. factors +*y a++i,/ 9ac. the

ar/i, (o, the +ate of stoc. statee,t) a+


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The tota +ra8i,/ o8er+ra8i,/ iit a/ai,st stoc.s a,+ 9oo. +e9ts sha 9e EV or sa,ctio,e+

iit 8hiche


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iii) *artery s*ary of cash 9oo. ertai,i,/ to re


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L>::>r !5 1r>4i:

A etter of cre+it ofte, a99re


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VARIOUS TYPES OF WORKING CAPITAL FACILITIES

&or.i,/ caita fi,a,ce is ete,+e+ i, +iffere,t fors 9ase+ o, the re7*iree,ts as

foo8s:

I) ;*,+ Base+

a) %e, cash #re+it

9) %


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#.RESEARCH AND METHODOLOGY

0 Pri1!n40r= 40:0

i) >ario*s *9ishe+ so*rces i.e 9a,.=s oicy4

ii) Aaha9a+ Ba,. a,+ !BI 8e9site

iii)Mi,istry of MSME 8e9site

DATA PROCESSING

!e7*ire+ +ata has 9ee, coecte+ fro +iffere,t so*rces rocessi,/ a,+ a,aysis of the sae has

9ee, +o,e to reach at the co,c*sio,s a,+ to s*//est certai, recoe,+atio, for f*t*re

rosects4

SAM"E %; B%!!%&E!S ;I"ES USED I STUDY:

;or the *rose of st*+y a sae 9orro8er fie of De.ee E,/i,eeri,/P of MSME sector 8ere

seecte+ for the st*+y of cre+it araisa &or.i,/ caita assesse,t a,+ a fie of Ms Sar+aye

Sice Mi for ter oa, assesse,t

47


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#.ANALYSIS AND RESULTS - INTERPRETATION

14There are o


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2) The ,*9er of e,terrise i, MSME sector is +eicte+ as 9eo8:

24 The ,*9er of eoye,t i, MSME sector is +eicte+ 9eo8:

49


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34 The fie+ i,


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ANALYSIS OF THE CASE?

14 C0;> ;:34= : #!EDIT APPRAISAL OF DEKEM ENGINEERING PVT. LTD

BACKGROUND?

De.e E,/i,eeri,/


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3 Diti '*ar M*.heree( a/e 6@ years)

$a


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2 ist

1413 #o,sorti* M*tie

9a,.i,/ arra,a/e,et

soey 8ith Aaha9a+ 9a,.

141 ## iit !s4 50 acs

1415 !%I B!V405F

PRESENT PROPOSITION?

Pr>;>n: r!!;06 i; 5!r 5in0n1i06 r>@i>9 0n4 >nh0n1>n: !5 >i;:in" 10;h 1r>4i: 6i !5 1h0r"> D0:> !5

@0630:i!n

V063> inR;

601

'. Pri10:i!n !5 5366= 0i4 3 ;:!12

0n4 7!!2 4>7:; 3:! &( 40=;

H=!:h>10:i!n )'()*('+ '#&.+

*. C!660:>r06

Un4>r CGTMSE NA NA NA

III. B060n1> Sh>>: 602h

Y>0r >n4>4 )';: M0r1h *('* *(') *('+ *('# *('

A34i:>4 A34i:>4 A34i:>4E;:i4

Pr!>1:>4

53


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'. FI/ED ASSETS

141 Gross Boc. 2341 21465 145 2145 2460

1414

1 M43 345 34@0 42 42

1414

2 %thers140 1@410 1545 1455 2240

142 Dereciatio, 146 240 2425 2400 2400

143 et Boc. 21465 145 1450 145 22460

14 #aita 8or. i, ro/ress - - - - -

'.# NET FI/ED ASSETS *'.# '&.# '.#( '&.# **.(

*. CURRENT ASSETS

241 #ash Ba,. 9aa,ce 0401 0455 241 24@0 2400

242 S*,+ry De9tors 1046 @341 120400 131453 210400

243 Misc4 #*rre,t Assets 26431 2460 5642 5420 51425

245 I,: C3rr>n: A;;>:; +).( +*.*( *.% +.+) &'.'+

CURRENT RATIO '.)+?' '.)+?' '.+(?' '.* '.+(

#. In@>;:n: - N!n$C.A;. $ $ $

TOTAL $ $ $

;IA#ED BY :- - - -

. LONG TERM LOANS

641 Sec*re+ "oa,s 24@ 24@ 341@ 3451 42@642 U,sec*re+ "oa,s 2340@ 1@42 242 - -

.) SUB$TOTAL *.( *'.* .'( ).#' +.*%

. SHARE HOLDERS FUND

41 E7*ity Share #aita 1400 1400 2460 2460 2460

42 ref4 Share #aita - - - - -

43 Share Aicatio, Mo,ey 23460 23460 i i i

4 !eser


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Y>0r >n4>4 )';: M0r1h A34i:>4

A34i:>4

A34i:>4

E;:i

4

Pr!>1:>

14 Gross saes 310422 22242 145 0402 1000400

Growth 354@F (-)2@43F 6436F 145F 1400F

24 et saes 310422 22242 145 0402 1000400

4 Gross rofit 5411 043 504@ 34@ 15422 54 Gross rofitet saes (F) 14F 1@415F 1242F 1041F 1452F

64 %erati,/ A+i,istrati


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A)

*('* *(') *('+ *('# *('

#*rre,t

!atio

143 143 140 1426 140

et &or.i,/#aita

340 2420 6246@ 643 141

1 Ti 201 the c*rre,t ratio is a9o


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#*rre,t

"ia9iities

The ao*,t of c*rre,t ia9iity ,ee+e+ to f*,+ its i,: Pr!5i:

L!;;

).)+ '.+) +.#& ').'& +.&

57


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2012 2013 2014 2015 2016

0

5

10

15

20

25

30

3540

45

50

'et Pro%t ( )oss

@et *rot oss

The ,et rofit has i,crease+ o


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(other tha,

9a,. 9orro8i,/s 64@3 5@436 664 04 11542

34&or.i,/ #aita Ga(G) (1-2) 245@ 10@456 15142 136463 202433

4

Mi,4 sti*ate+ ,et 8or.i,/

caita: (25F of G ec*+i,/

eort recei


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64 Ite-3 i,*s Ite- 504225 664@3 6465 45 12246

4 Ite-3 i,*s Ite-5 451 66436 @@4 042 11141

@4Ma4 erissi9e 9a,.fi,a,ce

(ite-6 or 8hiche4i: P>ri!4 5!r R09 M0:>ri06; -

S:!r>; 40=; %( ( ( ( (

Cr>4i: P>ri!4 5!r E>n;>; 40=; ( #( #( +( +(

S3n4r= D>7:!r; H!64in" P>ri!4 &( &( &( &( &(

The ho+i,/ erio+ of ra8 aterias is sta9e thro*/h o*t 8hie ho+i,/ erio+ for fi,ishe+ /oo+s

has +ecrease+4 B*t aso the cre+itor erio+ has +ecrease+ a,+ this cas for ore of 8or.i,/

caita4

COMPUTATION OF RISK GRADE(Base+ o, a*+ite+ 9aa,ce sheet as o, 313201

S4,o !is. #ate/ory Ma4

score

Ei/i9e

score()

Score

o9tai,e+(y)

!is.

8ei/ht(F)

(?)

!is.

A+*ste+

Score(yQ?

)

A4 ;i,a,cia !is. 36 36 1@ 35 1450

B4 B*si,ess !is. 26 26 13 20 10400

#4 Ma,a/ee,t !is. 36 30 2 35 334@3

D4 I,+*stry !is. 10 10 @ 10 @400

E4 Tota Mar.s 10@ 100 6433

R0:in" A90r4>4: AB- a,+ !is. at*re :;air

D>0r:n: Vi>9;, C!1!


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2 The coa,y is ha


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Ms 4Ma Sara+ayee Sice Mi a icro sa scae i,+*stria iit re/istere+ 8ith the

Dearte,t of #otta/e a,+ Sa Scae I,+*stries ha M0r2>:?

Sices ay a, iorta,t roe i, e,ha,ci,/ the fa


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I,+ia is o,e of the ea+i,/ eorters of sices4 The eort ear,i,/s fro sices ca, 9e i,crease+

7*ite co,si+era9y if the eort of sices is e,co*ra/e+ i, rocesse+ for 8hich 8i 9ri,/ ore

?

The rocess of a,*fact*re i, r!r?

The fir has +esi/,e+ a +etai a, for this ea,+e+ oeratio, a,+ the *,i7*e art of this a, is

that it has e,/a/e+ eerie,ce+ a,+ 7*aifie+ rofessio,as to hea+ the foo8i,/ +earte,ts:

A4 ro+*ctio, a,+ *rchase Dearte,tB4 Saes a,+ Mar.eti,/ Dearte,t

#4 ;i,a,ce a,+ Acco*,ts Dearte,t

Mr4 T*shar .a,ti Si.+ar 8ho ha+ 9ee, assisti,/ his father i, this B*si,ess ie+iatey after his

/ra+*atio, 8hich is o


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2KTer oa, iit: !s 3 42acs

RISK GRADING

U,+er #!G-02 o+*e the Ac is a8ar+e+ as AB- i4e ;air !is. at*re

A;;>;;n: O5 T>r< L!0n R>3ir>n:

The coa,y has a+e a re7*est for sa,ctio, of teroa, of !s4 3 ac 4to 9*y the

achi,es i.e *


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4 S>13ri:=? o sec*rity for ter oa, as co0r:n: C!9;

The 9orro8er is a 8e esta9ishe+ fir 8hich has eorte+ its ro+*cts thro*/h

GoAT !et*r,4e) Estiate of c*rre,t year a,+ roectio, of t8o years fi,a,cia statee,ts ao,/ 8ith

#MA +ata4f) The fir *st co,fi,e its e,tire +eai,/s 8ith the 9a,. o,y a,+ 8i ,ot a.e a,y

fi,a,cia arra,/ee,t 8ith a,y other Ba,. 8itho*t the rior co,se,t of the 9a,.4/) aeate of the Ba,. 8i 9e +isaye+ i, roi,e,t aces at the 9*si,ess site of

the 9orro8ers4

.CONCLUSIONS - RECOMMENDATION:The foo8i,/ are soe of the ractica recoe,+atio,s that ay 9e aroriate for

a+otio, as they +eee+ fit4

A. STRATEGIES FOR E/PANSION OR DIVERSIFICATION OF APPROPRIATE

FINANCING FOR SME.

'. I !3:;>0r1h !5 1r>4i: "30r0n:>> 1h0ni;<

I, a,y of the co*,tries 8ith s*ccessf* fi,a,ci,/ ro/raes (s*ch as aa, #hi,a

Gerr,a,y) cre+it /*ara,tee echa,is are a stro,/ feat*re of the +e


66/71

frae8or.4 These /*ara,tee schees are *s*ay 8e s*orte+ 9y /o


67/71

To e,co*ra/e e,+i,/ to the sector 9a,.s(that are ,ot seciai?e+ i, SME

e,+i,/) co*+ co,si+er setti,/ * a, SME +i1hni3>#re+it scori,/ ca, re+*ce +efa*t ris. 9*t if this 8i iro4 C60;;i5i10:i!n !5 SME.I, I,+ia tho*/h the +efi,itio,s of SME is co,siste,t a,+ 8e +rafte+ i,

MSMED Act 2006 ho8e


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24 Pr!>r n0n1> !5 B!!2; !5 A11!3n:;: SMEs sho*+ ai,tai, the

roer 9oo.s of acco*,ts eseciay the ti,y icro *,its4 This 8i

e,a9e SME to ro


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I,+*stry a,aysis 9y the cre+it rati,/ a/e,cies i.e I#!A ;IT#$ #!ISI" etc ca, 9e

+o,e to oo. +eeer i,to the i,+*stry ersecti


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My a,aysis co,sist of t8o cases: &or.i,/ #aita assesse,t a,+ Ter oa, Assesse,t their

eE!I

*. $ADB%%' % "EDIG T% MI#!% SMA"" MEDIUM ETE!!ISES BY

D4 4 SA!DA

WEBSITES

14 8884r9i4or/4i,

24 8884s9i4co4i,

34 8884i,+ia,9a,.associatio,4co4 88849a,.ersi,+ia4co

54 88848i.ie+ia4co

64 8884ii9f4co4i,4 8884se4/o


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project priya l

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