Thursday, December 20, 2018

Open Letter to Telangana Industrial Health Clinic Ltd


News Letter
Open Letter to Telangana Industrial Health Clinic Ltd
Date: 19/12/2018
I have read with interest the article "TIHCL Revives Ailing Small Business and Leverages Microsoft's Digital".
As all my readers may be aware that M/S Growth Idea Lab is also working for the revival of sick MSME Units and I agree with TIHCL about the need for stressed asset resolution is not charity work rather it has the potential to deliver viable remuneration returns is handled effectively.
Our strategy is in 4 pillars and the steps required to be taken are to be induced in controlled dosages like medicines and every step of its effect are to be measured for its effectiveness.
One pillar which we feel is the application of behavioural science as every stakeholder is human and emotional involvement and dilemma resolution is very critical in crisis phase.
Also, the application of Lean Manufacturing in case of manufacturing MSME will also create a lot of value for MSME.
Our suggestion is to create Alternative Investment fund kind of model for the revival of sick MSME or equity kind of Crowdfunding also may be used(at present, it is not permitted in India) and there is a possibility to appeal to all social entrepreneurs or HNI's to look in this sector.
Happy Christmas
Regards,
N.P. Desai

Wednesday, December 12, 2018

" Take Care of Penny and Pound will take care by itself"

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News Letter 
" Take Care of Penny and Pound will take care by itself"  
Most of the educated people must have heard above proverb.
No doubt "Ease of Doing Business" rank of India has improved but we can achieve more.
All efforts of govt for developing Roads, Aviation, Housing, Electricity etc are laudable but the missing link in all above is MSME.
11cr people work in MSME and everybody says it is a backbone of economy Right? All efforts of govt are towards creating new MSME.
But my question is who has the responsibility to take care of Sick MSME? It is a very big task and highly specialised. Corporate urn around specialist may not be able to do.
Only people who have breathed in the MSME sector are more suitable and it is not high paying jobs.
So How can it be done?
It can be done by fresh equity investment by Social fintech innovation by an organisation like us who have developed the skill for this in last 36 months by research and procedures.
With this, I appeal to all please give your support to this cause and save 1cr jobs.
Please contribute your might by ideas, suggestions, talent and any others
Regards,
N.P. Desai

Sunday, December 9, 2018

Sri Uday Kotak's press meet


News Letter
Sri Uday Kotak's press meet
I agree fully with Shri Uday Kotak that India needs a 9% GDP growth rate for the next 20 years to eliminate poverty.
All intelligent politicians and bureaucrats are applying their brain for a sustainable solution.
My feeling is that if all sick MSME units are revived by whatever method, will yield govt various taxes and if we take money multiplier effect of 1cr jobs(which are at stake) which are saved itself, may add 0.5% to1% to GDP on a sustainable basis.
Pvt sector, Social entrepreneurs, CSR funds, various foundations can be used to fund but it requires different management style which people who have worked in MSME can do this as they understand dilemmas of entrepreneurs of MSME and this effort requires to "Take care of penny and pound will take care of itself" kind of philosophy.
Happy Christmas  
Regards,
N.P. Desai

Open Letter to Shri Krishnamurthy Subramanian, new CEA


News Letter
Open Letter to Shri Krishnamurthy Subramanian, new CEA

Sir, As a new CEA and a strong advocate for financial sector reform, I dare to bring the following:
1. 90000cr blocked in NPA from sick MSME if revived by any method, will add 0.5% to 1% to India's GDP on sustainable basis as 1cr jobs, which are at stake along with contribution by unit to govt tax and this 1cr employee will(with money multiplier effect) will put in India in 7.9% to 8.5% bracket.
2. As mentioned by Shri Uday Kotak, India needs to have 9% GDP growth for the next 20 years to eliminate poverty why can we not hold the thrones of bull?
3. A lot of value creation is possible by reviving these units by proper handholding in all three stages of life cycle i.e., Crisis, Stabilization & Growth.
4. As a committee member on Narayan Murthy committee for AIF, can we think to the lower limit of say 10lacs for special AIF for the revival of sick MSME with Udyog Aadhar number?
Happy Christmas
Regards,
N.P. Desai

Saturday, December 8, 2018

News Letter: MSME Ombudsman Suggested


News Letter
MSME Ombudsman Suggested
For the creation of healthy MSME sector, Banks are supposed to follow, RBI guidelines/Directives/Circulars in the right spirit but it is not happening and unnecessary delay by banks are harming MSME sectors growth.
SLIIC and EC, we have experimented but it did not yield the desired result.
Can we have MSME Ombudsman for MSME at RBI or any other institution can be created?  
If govt or RBI can think in this direction will help to create healthy MSME and create a sustainable ecosystem.


Regards,
N.P. Desai

Thursday, December 6, 2018

Stressed Assets in MSME-RBI move on 5/12/2018

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News Letter
Stressed Assets in MSME-RBI move on 5/12/2018
I do not know to Welcome or criticize the move. It is too late as 1cr jobs in MSME sector are at stake.
But, When RBI is forming a Committee for looking into and submit a report by June 2019 may be a good move.
I will suggest that all professionals and academicians who may pack this committee have no exposure or very little exposure to problems of sick MSME more particularly in loan range up to  5cr to 10cr. They should be treated differently.
RBI/Central Government/State Government shall form local committees consisting of entrepreneurs, MSME associations and others so that local problems also get into the report.
But my question to RBI/Central Government/State Government has given excellent circular in March 2016 but the implementation by bankers are never monitored and in EC meeting, it gets only lip services.
Immediately RBI should have MSME Ombudsman where non-adherent banks and if staff should be punished for not following.
Entrepreneurs cum Consultant like me should have representation and innovative model like equity kind and Value creation can be thought in such a way that Pvt entrepreneurs or social entrepreneurs can look this as a business opportunity.

Regards,
N.P. Desai

Sunday, December 2, 2018

Revival of Sick MSME Units:- CSR Way

News Letter
Date:02/12/2018
Revival of Sick MSME Units:- CSR Way

It is well known that the MSME sector is the second largest employer after agriculture and employ 11 to 12cr people.
As per MSME pulse, 90000cr is in NPA in MSME but they do not project proable jobs in this sick MSME. Our estimate shows that 1cr jobs are at stake.
As, all social and welfare of society, Govt alone can not do, so they made CSR compulsory for many corporate companies and about 10000cr (as per last year) was spent on this initiative.
As one of the desires activity is employed by law, I would suggest that CSR funds should be permitted in this sick MSME as it is retaining jobs.
If today's laws, of this, is not included, can it be included in the amendment of CSR laws?


Regards,
N.P. Desai
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Chief Consultant
Mob: 9885326553

!!Save the Earth. Go Paperless!!

Date: 02/12/18 Equity kind of stake for the revival of sick MSME

News Letter 
Date: 02/12/18
Equity kind of stake for the revival of sick MSME
Sri Ajay Shankar Prof at TERI has advocated for creating a fund by various methods to bring equity kind of investment in many large corporates for the revival with either change in investment or supporting existing by value creation.
We are proposing the same for last 2years for MSME and have already made 3 investment and in next 3 to 4 years, expect 15 to 25% return year on year basis.
As the fund required to turnaround for MSME in loan range of 1cr to 10cr will be around 5lacs for running units and cost of job retained will be @15000 against creating one job by capital investment 50000 to 300000lacs.
Handholding is very critical and the process will be a crisis, stabilization & growth management. 
In the Crisis phase, our person will monitor daily activity with a focus on operational efficiency and utilization of idle capacity and focus on troubled activity solution, mainly accounts management. Our back office will prepare a marketing plan and various hurdles which can be predicated and resolving it. This phase can be 2 to 6 months.
The second phase will be stabilization which can be 3 to 12 months, where systems like MIS will be introduced, inventory management, data mining HRM and controls will be established and watched with great care to its effect on operational efficiency and increase in idle capacity utilization and cost cutting or cost efficiency.
If bankers agree, with or without further finance, growth plan will be made and implemented.
This will require 2 round of equity infusion. One of crisis stage where valuation of the asset will be very low and after stabilization where valuation can be higher than the first round. In 3 years to 5years, exit can be listing on SME Exchange, promoters buyback or other investors entering or replacing as the case may be.
Funding can be done by social entrepreneurs who are looking to change the landscape for employment or by crowdfunding, or creating an SPV for an alternative investment fund and 10 to 15% return can be generated on this.
Govt can facilitate this and no budgetary support is required.
Request all stakeholder to comment/give a suggestion.
Regards,
N.P. Desai
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Chief Consultant
Mob: 9885326553

!!Save the Earth. Go Paperless!!

Wednesday, November 28, 2018

Newsletter RBI Board Meeting on 19/11/2018

Newsletter


RBI Board Meeting on 19/11/2018

RBI has given press release at 9'o clock in the night about board meeting on 19/11/2018.
One point which attracted my attention was stress asset of MSME below 25cr. I was waiting for 3 days to hear for further announcements. At this moment, I could not lay hands on.
So, I am writing here my view.
1. According to me, stressed asset below 25cr, means job retention in MSME and as on today, all public sector banks have delegated powers to the level of regional manager and or Deputy General Manager.
2. During the last 3 years, I hear that often under pressure from their higher up's, the only job of this regional manager or DGM is to recover. It is very convenient for them to transfer the file from the operations department to stressed asset department and once the file goes from operations to stress asset, no way it can come back & officers in stresses assets are not trained for revival. So when RBI announces new measures for resolving stress assets, they should see that it is implemented in right earnest.
3. In March 2.016, RBI has instructed for resolving MSME loans but my discussion with banks at the branch and regional level indicates their attitude only for recoveries and they prepare files in such a way that entrepreneur is killed and employment is lost.
Once again I request RBI, Bank boards and chairman to consider the ground level realities before formulating guidelines/directives.
I also, request Secretary DIPP who is a nodal officer for ease of doing Business to look into this as it will not only retain jobs but will help govt to get taxes.
Regards,
N.P. Desai
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Newsletter (28/11/ 18) Ease of doing business

NEWSLETTER

Ease of Doing Business

Date:28/11/18

About a couple of days back, Honorable Prime Minister Narendra Modi called few industrialists and govt officials and praised for improvement and said that now it has to go to the district level. Percolating down to district level will definitely help to improve.

But I do not understand why we should worry about EODB? Is it to increase employment in the economy? Or to increase per capita income? Or any other motive. As the net saving rate is falling, dependence on foreign capital is the need of the hour.

Shri Narendra Modi has to restructure the old mindset of the middle level of govt staff and I can assure that by reducing old mindset of babushahi and efficient working using modern technology like Blockchain will definitely improve EODB by at least by 10%.

Regards,
N.P. Desai
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Wednesday, November 21, 2018

Open Letter in response to the article published on Business Line (19.11.2018)- Unorthodox approach to resolving NPAs

Open Letter in response to the article published on Business Line (19.11.2018)- Unorthodox approach to resolving NPAs

An unorthodox approach to resolving NPAs
I have read with a lot of interest the article in the business line of 19.11.2018
You have covered a gamut of large borrowers and as per RBI & IBC, this may be the need of the hour and every senior person, in all stakeholders are working for 500cr and above assets. For the last 36 months, I am working for the revival of sick MSME and now for the last 12 months, I am investing in these sick MSME in the form of equity.
My study shows that on average of 5lacs investment, it will be possible to revive one MSME with 20 workers (in operation). As you have mentioned, it will be difficult challenge to create such fund for large corporations but for small MSME unit, we can depend on CSR funds, impact investors, philanthropic foundations, equity kind of crowdfunding.
I am suggesting following Tax incentives:
1. As of now 90 to 95% MSME are proprietary or partnership, they are not permitted to carry forward losses, if govt permit these losses to be carried forward, merger and acquisition will become easy.
2. As most of MSME depend to raise money from friends & relatives govt can formulate some tax incentives so that pressure on the banking sector will reduce say 30% investment allowance.
3. The government can permit special mutual fund for investment in MSME with some tax incentives so that Growth Capital to growing MSME can be provided.

With the change in asset class allocation by the younger generation, there may not be a problem of fundraising.
To give you an idea, NPA in MSME is in range of 96000cr against total funding or 11lac crore but at some ratio, 1cr jobs are at stake and at our estimate total funding required can be of 15000cr but by reviving these units, govt.  may collect the tax of 5000to 8000cr/month with 2months / 3months gap and it will put few lacs crore of underutilized asset into use.
 These are my views. 
Thanks.
N.P. Desai
Chief Consultant
Growth Idea Lab

Saturday, November 17, 2018

MSME Senerio in India

News Letter
Date:17/11/18
MSME Senerio in India


In 1969, Indira Gandhi nationalised the banks. one of the agenda may be to tackle unemployment by directional lendings. From that time, until today, in one form or the other same is continuing. As of today, 1 job can be created by 50000 to 300000 capital investment.
Few pointers I would like to bring out:

1. All these years, a lot of entrepreneurs are created but there are failures in ventures. This has created a lot of social disorders like entrepreneur's kids are not ready to join the venture as succession.
At some stage in their life, children ask "What did you do for me" and they desert parents.
For the last 30 to 40 years, I am trying to inform academia and scholars to study the impact of failed entrepreneurs and its social effect.

2. We have created app 6cr MSME employing 11cr people i.e., 44cr lives. During the last 3 years, the rate of growth of MSME may be 15-20% year on year. But if we take NPA(as per MSME Pulse) app 90000cr, I feel most of this enterprise can be revived by spending 15000cr thus saving 1cr jobs.

3. The article by your team is indicating faith in small entrepreneurs like microfinance but why all NBFC/Fintech in this space, a fund for sick MSME. All NPA in MSME may not be making of entrepreneurs. It can be other stakeholders like Banks, Govt market.
Example, because of the plastic ban in many states, a lot of these units are going to close. One estimate says app 7.5lacs jobs are stake. Can any alternative be thought?
From 2011-2013/14, in Andhra, severe power cut was there. Only 3 to 4 days in a week, power was available which has forced many at least 40% of MSME to became weak/sick and lakhs of jobs are lost.

4. During the last 40/50 years, govt has thought of EDP and various training programmes but it has not reached to lakhs of entrepreneurs as it has not been made compulsory and it has not been marketed well.

5. I also feel, because of NPA many entrepreneurs have started milking banking system or played with all stakeholders.
If they make more profit, they would like to suppress and create black money and if they make a loss, they inflate and hope to recover.
Their CA'S are to be blamed.

6. During 3 to 5 years journey, all entrepreneurs shall understand their own balance sheet(original or fudged) and derive corrective steps. This will increase their operating profit and thus repaying capacity.

These are few points to be considered by all stakeholders in this area.
Regards,
N.P. Desai

Sunday, November 11, 2018

12 Point Agenda for MSME

News Letter
12 Point Agenda for MSME
Date:11/11/2018
Sri Modi announced new MSME policy on 2nd NOV
One Point which attracted my attention is an effort to create deep bill discounting culture which is a need of the hour.
As the requirement any corporate above 500cr do not register on Tradex, bill discounting platform, what happens to MSME?
From Independence we have gone on the penalty based system, can we change to the incentive-based system so that the real impact to all MSME can come.
Let policymakers think and work out ways for it.
Regards,
N.P. Desai

2nd Nov Announcement by Honourable Prime Minister for MSME

News Letter
2nd Nov Announcement by Honourable Prime Minister for MSME
Date:11/11/2018

It was good to hear 12 points Diwali Bananza announced by Sri Narendra Modi.
The policy makers seating in A/C cabins and Chairman of Banks on whom the Prime Minister depend to give this Diwali Bananza. Let the Chairman or Executive director of Banks directly interact with their Own Small customers and Understand.
Sri Modi said that 6.3cr MSME is giving employment to 11cr people which means app 44cr lives and the top of the system, Sri Narendra Modi is seating, there are a lot of filters and he is not getting any ground level pictures.
Every Minister in both Central & States bureaucrats at both Centre and States, various Commissioner in Industry departments are only giving lip sympathy to these new entrepreneurs.
Let us see the problem from 10 to 20 years perspective. We are creating Social disorder by the children of these entrepreneurs. They do not want to join this and they blame "What did you do for me?" when they have grown up and they desert the parents.
The suicide of farmers get coverage in media but suicide by these entrepreneurs are not reported anywhere. So these MSME's are only left to their fates?
Korea and other developing countries had at one time 80% NPA in MSME and they trusted these entrepreneurs for their contribution and given chance for coming back in their lives.
With IBC, all big cases are getting the attention of Chairman and ED and General managers but MSME's are the pursued legal course of recovery.
Whether Country gets any economic output or social output?
Let Sri Modi think and correct this as a statesman or as Politician.

Regards,
N.P. Desai

Friday, October 26, 2018

News Letter: Injustice for MSME done by all stakeholders Vijaya bank in Particular

News Letter
Date:26/10/2018
Injustice for MSME done by all stakeholders Vijaya bank in Particular

Last few News Letter, I am trying to bring to the notice of all my readers, that how Vijayabank is behaving in case of Adhya Industries, Balanagar, Hyderabad financed by Somajiguda, Hyderabad.
For the last two months, Growth Idea Lab has moved the various proposal to ED and AGM (recovery) Vijayabank but they are not Keen to resolve.

In thousand of the case, they all public sector banks, pursue two prolonged approaches, even not respecting, Reserve Bank of India and Honorable high court (AP&Telangana) guidelines/orders.
So lefthand does not know, what right hand is doing.

The situation is similar to If the pencil falls on paper or paper falls on a pencil, Paper only gets punctured.

Similarly, in the above case, 30 workers are getting punished for no fault of them and MSME entrepreneur.

Can Sri Giriraj Singh, Dr Pandya, MSME Secretary Development Commissioner Sri Mishra who are supposed to take care of MSME or Sri Urjit Patel of Reserve Bank of India, can notice so that this kind of Situation is avoided or reduced.
           
This is not good for Make in India movement.

Also Chief Manager, Vijaya Bank disconnect phone without full discussion.

Many officers, under various pressures, work without using their fair judgements.
Can Six cr MSME join against this?

                   Happy Diwali
Regards,
N.P. Desai

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Chief Consultant
Mob: 9885326553

News Letter: Injustice for MSME done by all stakeholders Vijaya bank in Particular


Tuesday, February 13, 2018

Giriraj Singh Says 80000 cr NPA in MSME

A recent statement made by the honourable minister of MSME (Independent charge) in parliament.
The point which is not brought out is 1cr jobs are at stake, i.e., if govt can save this by any measures capital cost/job is only 80000/-.
They are promoting “Make in India” “manufacturing 4”, Digital technology penetration for improving “efficiency” etc.
It is time for govt and RBI to become proactive.
This may require policy changes but if they implement existing policies also 40% problem can be resolved.
Banks, at a lower level, want to become unit NPA and transfer the file to their stressed asset management branch. While RBI has classified SMA0, SMA1, SMA2 and corrective action plan with timelines.
I would be happy to know, which bank has followed a timeline? Can the survey be done? Can the official concern be punished?

Thursday, February 8, 2018

Newsletter

RBI Governor and Deputy Governor say increase in NPA may be because of entrepreneurs fault or banks negligence or external factor.

In Telangana from 2008 to 2014, there was severe power cut and because of bifurcation agitation, we had more non-working days than working days.

Some units with thinner equity had no reliance power and stamina.No other financial instruments being available except debt (both from boxes and PVT) has eroded they are staying power.

All India forums for small and medium enterprise have raised their voice but banks have their own agenda to pursue SARFAESI and recovery without hearing the plight of the same unit.

RBI, time to time have given policy corrections but it does not read the operation levels i.e; chief manager of branch or field officer.

For a 5000 crore NPA in MSME sector involving some 10 to 12 lakhs accounts, but employer 1 to 2 crore jobs are treated very badly.

Time has come to revolt against the existing system of NPA classification in the manufacturing sector where their advances are reasonably secured but banks are hesitating to take actions in time.

RBI has stipulated time limit for every possible revival efforts, but it is neglected or/are not adhered to.

Please reply your opinion which will be very useful to push the remedies for the cause.


Also known as the mother of all engineering, it is the oldest, broadest, most simple and useful of all engineering sciences.

Wednesday, February 7, 2018

SICKNESS IN MSME


  • Mr.S.A Raghu(Independent Consultant)has written in BUSINESS LINE on 18/04/2016 that 99% of loan accounts are in MSMe, Retail and Home loan.
  • But amount wise it is 4 to 5% total advances that are aprx. 6000 to 8000cr.This is very small compared to one large corporate loan.
  • The loans were given by directions by Govt. of India, and RBI for social welfare and upliftment of society.Also employment.
  • On 16/04/2016, another article in BUSINESS LINE, says 1.8 lac court cases are a field for the loan amount of 1.2 lac cr.
  • RBI time to time comes out with various guidelines/directives but the same is not followed by bank branch managers and they are either arrogant/negligent.
  • As there is no personal penalty for non.performance, Branch managers and credit officers take things very lightly.
  • But this creates social disorder as entrepreneur family is first causality and employment is second big causality.

I request all to react and give their opinion and if you like, you may share with your friends for opinions


Also known as the mother of all engineering, it is the oldest, broadest, most simple and useful of all engineering sciences.

Sunday, February 4, 2018

Budget and MSME-2018- 2019

Lot of good news are coming from this budget and FM has announced
more details, more particularly for NPA resolutions shortly.
I hope the policy should take care of 1 Cr jobs in Sick MSME
units.
I am not demanding to write offs for sick MSME but strict
actions/implementations of existing RBI guidelines in its spirit and well
defined penalties to those bank officers who are not following timelines
as per RBI policies/directions.
If govt wants, a lot of things can be done without fiscal
interventions.


Also known as the mother of all engineering, it is the oldest, broadest, most simple and useful of all engineering sciences.

Avoid being another Vijay Mallya


  • Lot can be learned from above Episode
  • Understand your balance sheet and do not over-leverage then beyond a point.(I hope you understand leveraging the finance).
  • Understand value brand and nature it to be a value creator.
  • Stick to your core competency and make your strategy around the same.
  • Keep your lenders/suppliers in good humour and develop good repo.
  • Only invest long-term funds for other use, means do not withdraw longterm funds from business,and work out longterm plan.
  • Stabilize the business and check the parameters on risk profiles regularly.


Also known as the mother of all engineering, it is the oldest, broadest, most simple and useful of all engineering sciences.

Saturday, February 3, 2018

Digital Marketing

You may be well aware that GENERATION ‘X’ and GENERATION ‘Y’ are now in vogue.But by 2025 we will have GENERATION ‘C’.What does it mean?


  • GENERATION ‘C’ stands for GENERATION CONNECTED

World Economic Forum Predicts that by 2025,INTERNET PENETRATION AND SMARTPHONE

PENETRATION will be 90% of the world population.It means People will not read news papers and magazines in today’s format.So how will you advertise and reach your Targeted Customers?


  • We will have to use social media to promote our products.

Surprisingly it costs practically nothing.

Please start using Facebook,Google,Twitter and Many other platforms to promote your products.

You may take online course on Digital Marketing for free from OPEN MIND AGENCY or other many more companies.


Also known as the mother of all engineering, it is the oldest, broadest, most simple and useful of all engineering sciences.

Digital Marketing

You may be well aware that GENERATION ‘X’ and GENERATION ‘Y’ are now in vogue.But by 2025 we will have GENERATION ‘C’.What does it mean?


  • GENERATION ‘C’ stands for GENERATION CONNECTED

World Economic Forum Predicts that by 2025,INTERNET PENETRATION AND SMARTPHONE

PENETRATION will be 90% of the world population.It means People will not read news papers and magazines in today’s format.So how will you advertise and reach your Targeted Customers?


  • We will have to use social media to promote our products.

Surprisingly it costs practically nothing.

Please start using Facebook,Google,Twitter and Many other platforms to promote your products.

You may take online course on Digital Marketing for free from OPEN MIND AGENCY or other many more companies.



Also known as the mother of all engineering, it is the oldest, broadest, most simple and useful of all engineering sciences.

Friday, February 2, 2018

“OUT OF SITE IS OUT OF MIND.”


  • This issue, I am writing to you on intangible asset what you have created during your entrepreneurial journey.
  • You are creating a brand, customer’s base, supplier’s base, workforce base and many such contacts.Thay are lying scattered either in your brain, visiting cards, computer etc.
  • This is GOLDMINE.Please keep your data organized and start E-mail contacts.It will keep relation alive.

Please understand the following.

“OUT OF SITE IS OUT OF MIND.”


  • Organized data increases your efficiency and make you run for success.
  • Please understand the value you have created, use it.
  • Make This Year resolution to dig your data and take advantage.


Also known as the mother of all engineering, it is the oldest, broadest, most simple and useful of all engineering sciences.

Wednesday, January 31, 2018

Do Not Ignore early Signals

This fortnight, I would like to write about early signals which can be identified by entrepreneurs himself for vibrant growth of the enterprise.

1.Return of cheques: When your first cheque bounces, it gives an indication that some long-term correction is required.Some analysis has to be done.It may be possible that your unit is under cash flow problems.Please try to find reasons and do not look short-term solution, Sit with CMA data and work out possible solutions and act immediately and monitor the actions.

2.Non-submission of a stock statement: First understand why the stock statement is required by the bank. The bank is always conscious that unit shall have enough liquidity to meet day to day needs.And if collections are not concentrated, or stock pileup is there, it will not be healthy for the unit.

So while preparing a stock statement, review your liquidity.

If you are not submitting, you are avoiding to review your own fears and do firefighting.It is better to face in your own interest.

3.Talent turnout: If your talent is leaving or absenting, it is time to think “why” and you have to relook at your working.

These are few early warning signals and better to discuss with either your bankers, your own confidence in the unit, your mentor or consultant.

If you ignore early warning you are likely to reduce your growth projections or you can enter into the negative zone of growth and be heading towards sickness or closure of the unit in few years.

Timely correction is need of the hour and monitoring and initiating the action is in your domain.

Neglecting this is suicidal.



Also known as the mother of all engineering, it is the oldest, broadest, most simple and useful of all engineering sciences.

Monday, January 29, 2018

Increasing NPA risk

Increasing NPA is worrying all Stake Holders at various levels. But Sickness in MSME has large unemployment which is Cancer to our social environment.

At this movement, both states of Telangana and Andhra are seriously trying to put policy for incipient sickness in place.

But before that many of my industry friends may not be aware that at both commissioner of Andhra and Telangana has got mechanism of SLIIC(State Level Inter Institutional Committee)which tries to resolve the problem between unit holder and in many case banks, so that some solution can be found.This is known as SLIIC subcommittee.

Once in 3 months, at RBI, these units are discussed and action followed are reviewed.

This is a very useful mechanism to resolve certain issues.

As both commissioners of industry are proactive and hands-on, please avail the opportunity.

M/s.Growth Idea Lab and association of incipient Sick SME Telangana also can guide you.

So feel free and discuss your dilemmas so that early action can be taken.


Also known as the mother of all engineering, it is the oldest, broadest, most simple and useful of all engineering sciences.

Tuesday, January 16, 2018

NPA

Growth Idea Lab is the Business Management Consultancy at Hyderabad. We will provide the services like cost reduction techniques to the Entrepreneurs at Hyderabad, Telangana, A.P.



Also known as the mother of all engineering, it is the oldest, broadest, most simple and useful of all engineering sciences.

Sunday, January 7, 2018

TEV Study

Growth Idea Lab is the Business Management Consultancy at Hyderabad. We will provide the services like cost reduction techniques to the Entrepreneurs at Hyderabad, Telangana, A.P.



Also known as the mother of all engineering, it is the oldest, broadest, most simple and useful of all engineering sciences.

Thursday, January 4, 2018

Free Financial Health CheckUp

Growth Idea Lab is the Business Management Consultancy at Hyderabad. We will provide the services like cost reduction techniques to the Entrepreneurs at Hyderabad, Telangana, A.P.



Also known as the mother of all engineering, it is the oldest, broadest, most simple and useful of all engineering sciences.

Presenting the book, "The Unexplored Goldmine-The Opportunities in the revival of sick MSME" to Deepak Rao. Joint Development Commissioner.

Presenting the book, "The Unexplored Goldmine-The Opportunities in the revival of sick MSME" to Deepak Rao. Joint Development C...