Page 5 - Crisil Sme Tracker

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

Self-declaration on labour to boost entrepreneurship, employment

A CRISIL survey of 5,800 rated MSMEs shows the employment generating potential of a start-up is around 38 employees per enterprise

Pro-MSME schemes to boost potential of North East region

CRISIL's analysis of over 500 MSMEs in these states shows they face major challenges to growth in the form of lack of access to technology, concentrated operations and weak infrastructure