Page 4 - Crisil Sme Tracker

Crisil SME tracker: Asymmetric Mudra loan disbursals have risk implications

Cumulative sanctions by lenders under scheme topped Rs 3 lakh cr in past two financial years

Crisil SME tracker: GST bodes short-term pain but long-term gain for MSMEs

As things stand the regime could take a couple of quarters to stabilise

Crisil SME Tracker: GST bodes short-term pain but long-term gain for MSMEs

A simplified tax structure and a unified market will improve operational efficiencies in long run

CRISIL SME Tracker: GST to make MSMEs in small cities more competitive

MSMEs with manufacturing units based in small cities spending more on materials

Non-conventional funding sources help MSMEs reduce cash conversion cycle

Cash conversion cycle refers to time taken to sell inventory, collect receivables and pay suppliers

CRISIL SME Tracker: There is more to creditworthiness than size of an MSE

Creditworthiness is not a function of absolutes, but of relative size and performance

CRISIL SME TRACKER: Benchmarking can ensure effective deployment of CGTMSE

MSEs have limited finances. Any move to boost flows of capital to them augurs well for the sector

CRISIL SME TRACKER: Housing gets a policy push, but challenges remain

Developers stand to benefit from grant of infrastructure status to affordable housing

CRISIL SME TRACKER: Digital push for MSE lending needs more teeth

Traditionally, banks make lending decisions based on the borrowers' financials and collaterals

TReDS can boost MSMEs' liquidity, with some tweaks

The TReDS proposed by the RBI is expected to provide much-needed liquidity to MSMEs

CRISIL SME Tracker: Diversification makes MSMEs more attractive for lenders

Such MSMEs are more attractive to lenders, having almost twice the leverage over their peers

Better margins, claim settlement can boost bank lending under PMMY

Microfinance Institutions (MFIs) account for over a third of the loans

MSEs with credit rating increase debt by 70%

Currently, less than one per cent of MSEs in India are rated

MSMEs reap benefits from investments in brand-building

The demonetisation of high-denomination currency notes has resulted in a liquidity crunch and a short-term dip in retail consumption

CRISIL SME Tracker: Diversification drives growth for auto component MSMEs

Industry has seen a slowdown in revenue growth over the past 4 financial years due to lacklustre demand from automobile manufacturers

Amend MSMED Act to ensure faster payments to MSEs

Delays in receipt of dues from corporates remain a major challenge for micro and small enterprises (MSEs) in India, along with high cost of working capital finance and collateral requirements of lenders.The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 stipulates that receivables of MSE suppliers must be paid within 45 days and accordingly disclosed in the buyer company's annual financial statements.However, CRISIL's study of receivables of its rated MSEs in four large industries - engineering & capital goods, chemicals (including pharmaceuticals), electrical components & equipment, and steel products - reveals that receivables are nearly twice the stipulated period. MSEs constitute three-fourths of the working enterprises in these industries and face the common challenge of sizeable working capital requirement because of their high receivables and inventory positions, accentuated by low bargaining power with principal customers.CRISIL believes two quick ame

Growth of MSMEs in IT/ITeS constrained by lack of funds

An analysis of 4,000 CRISIL-rated MSMEs shows that those focused on IT/ITeS grew by 12 per cent per annum between FY13 and FY15

Enterprise-level IT spawns many efficiencies

Enterprises having a business process management system improved their operating margin by 200 basis points because of better inventory control

Among MSMEs, services sector outpaces manufacturing

Rrising incomes have meant improving demand for health care, entertainment, and education, which, in turn, helped the services sector thrive

Product and process quality are key to increase in reach, exports

CRISIL's analysis of over 3,500 MSMEs from these sectors shows that over a quarter of them are quality-oriented