Summer Training Project Report on

SUGGESTIONS TO STIMULATE FINANCING UNDER

MICRO & SMALL ENTERPRISES

Undertaken at

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF

POST GRADUATE DIPLOMA IN MANAGEMENT

UNDER THE GUIDANCE OF: UNDER THE SUPERVISION OF:

Ms. Sumedha Shandilya Mr. Ashok Dangayach

SUBMITTED BY:

Ayushi Saxena

PGDM- III SEM

INTERNATIONAL SCHOOL OF INFORMATICS & MANAGEMENT, JAIPUR

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 ACKNOWLEDGEMENT

“Successful passage and outcome of every work comes with dedication,

determination and team work. All these turn futile in the absence of a
visionary guidance”

I sincerely wish to acknowledge a deep debt gratitude to Bank of Baroda, Zonal

Office, Jaipur for giving me the opportunity to do summer training in their
organization.

I feel great joy and pleasure in thanking my supervisor Mr. ASHOK

DANGAYACH, Chief Manager, SME Loan Factory without whose constant
encouragement and ever guiding spirit, this project would not have been
completed at all. I convey my special thanks and warm regards to Mr. [Link]
Senior Manager(Processing Head) who supported me throughout the course of
the project. I would also like to thank Mr. Ramawatar Meena (Senior Manager,
Processing), Mr. Veerendra Bohra (Senior Manager, Processing),Mr. Vishal Jain
(Manager, Marketing) and Mr. Dileep Arya (Senior Manager, Marketing) and Ms.
Parvati Khandelwal (Computer Operator) without their wholehearted co-operation
my training wouldn‘t have been successful.

I am indebted to Sumedha Ma‘am and all the faculty members, who have
disciplined my mode of work and have been pillars of great strength to me. The
love and affection of my beloved parents that has brought me to this stage are
the most valuable ingredients of my life. I wish convey my love and respects to
them. Finally I convey my heartfelt thanks to friends and all my well-wishers.

AYUSHI SAXENA

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 PREFACE

The foundation idea for this work rooted in the intent to work on the criteria of
assessing a company‘s financial position before sanctioning loan. As it includes
all practical application of financial aspects viz. Financial Ratios, Fund Flow
Statement, B/s, P&L A/c, Cash Flow Statement etc. So to gain all practical
knowledge in the SME, this project is undertaken.

For preparing the Project Report, I was given various loan proposals to avail the
necessary information. The blend of learning and knowledge acquired during my
practical studies at the company is presented in this Project Report.

Various Inspections in the various industries were also done which gave
exposure related to checking of security and other documents given by the
borrower party.

The rationale behind preparing the Project Report is to study the credit appraisal
basics, history and development of MSME‘s ,major players in MSME‘s ,
contribution of MSME‘s in the growth of Bank &economy and its functional areas
like relationship managing, credit managing, marketing etc.

The Project Report starts with the introduction & history of bank of Baroda, basic
concepts of MSME‘s, importance of MSME‘s and suggestions to support
financing under micro and small enterprises..

The information presented in this Project Report is obtained from sources like
Bank Personnel, Bank websites, other websites, Bank reports, and Other
literature works.

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 DECLARATION

I hereby declare that the project report on “ Suggestions to stimulate

financing under Micro and Small enterprises " is my original work as a part of
the summer training undertaken at SME department of Bank of Baroda, Zonal
office, Jaipur region.

All the information contained in the report has been obtained from the primary
research and data available and searching through internet and books which
provided in depth knowledge about the topic undertaken.

I also declare that all the data presented is true to best of my knowledge which is
fully and specifically acknowledged.

AYUSHI SAXENA

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 Executive Summary

The Small and Medium Enterprises (SMEs) play a vital role in the industrial
development of any country. The importance of the SME sector is well
recognized worldwide due to its significant contribution to gratifying various
socio-economic objectives, such as higher growth of employment, output,
promotion of exports and fostering entrepreneurship.

Outlook towards the SMEs is very much important to strengthen it. The premises
for such an outlook that is essential for Indian SMEs to combat the challenges
ahead, are outlined below:

a) SMEs continued to be the thrust area for government policies.

b) The growing economy and the tremendous market potential of the country
promise well for the sustained growth of SMEs in a country.
c) Avenues for employment and decentralized industrial development.
d) Latest policy package for SMEs and envisages 20 percent annual growth
in credit to SME sector from FY 2005, to be doubled by 2012.
e) With the enactment of MSME Act, the sector is set to emerge as the most
vital contributor to the national economy.
f) SIDBI as the apex institution will continue to play its key role in facilitating
timely and adequate credit besides meeting the developmental needs of
the sector.
The constraints come across by the SMEs in India to be export competitive
include product reservations , regulatory hassles- both at the entry and exit
stages , insufficient finance at affordable terms , inflexible labor markets and
infrastructure related problems- like high power tariffs, and insufficient export
infrastructure.

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 CONTENTS

Acknowledgement 2

Preface 3

Declaration 4

Executive Summary 5

1. Micro, Small & Medium Enterprises – Introduction 8-29

2. Introduction to Bank of Baroda 30-45

3. Bank of Baroda – SME Loan Factory 46-68

4. Research Methodology 69-71

5. Data Analysis and Interpretation 72-81

6. Findings of the research 82

7. Suggestions 83-85

8. Limitations 86

9. Conclusion 87-88

10. Learning during the Training 89-111

11. Summary 112

12. Bibliography 113

13. Questionnaire 114-117

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MSME–Micro,
Small and
Medium
Enterprises

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The micro, small and medium enterprises (MSME) sector plays an important role
in the economic growth of India. The sector offers a great contribution to the
manufacturing output, employment, and exports of the country. It was estimated
that the MSMEs contribute for 45% of the manufacturing output and 40% of the
exports of the country.
It was estimated that through the fiscal year of 2009-2010, in over 26 million units
throughout the country, about 59 million people were employed in the MSME
sector. The highest growth rate was observed in the MSME sector than that of
the industrial sector. The MSMEs in India are involved in manufacture of about
6000 products that range from traditional goods to high-tech items. The
contribution of goods in MSME sector includes 22% from food products, 12%
from chemical products, 10% from basic metal industry, 8% from metal products,
6% from electrical machinery parts, 6% from rubber plastic products, and 36%
from other products.
Maximum opportunities are provided by the MSME sector for both self-
employment and jobs after agriculture sector. According to the 4th Census with
reference year 20 06-07, employment to about 595 lakhs persons was given
by about 261 lakhs enterprises. During the fiscal year of 2008-09, employment
was given for about 659 lakhs persons by 285 lakhs enterprises. The percentage
growth rate of the number of MSMEs from 2008 to 2009 was found to be 4.53.
An increase in employment growth rate of 5.35% was observed in 2009
compared to the previous year. There has still been a rise in the development of
MSME sector in India.

Considering the growth potential of Indian SMEs, the Government of India has
asked public sector banks to achieve a minimum 20 per cent year-on-year
growth in the funding of SMEs that will lead to double the flow of credit to the

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sector from Rs.67,000crore in 2004-2005 to Rs.1,35,000 crore by 2009-2010.A
small-scale unit is defined as one having original investment in plant and
machinery not exceeding Rs.1 crore. While recognizing the needs for larger
investment in some of the more important segments of small scale industries
(SSIs), the Government has enhanced this to Rs.5 crore for specified industries.

The Government felt that a separate category of medium enterprises (MEs)

needs to be recognized and, accordingly, the new policy package clearly defined
the medium enterprises as those units having investment in plant and machinery
above the small-scale industry limit and up to Rs.10 crores, as recommended by
the Working Group on Flow of Credit to the SSI sector, headed by Mr. A. S.
Ganguly. Across the world different context and definitions are there for small
businesses. However, in India a standard definition for small and medium
enterprises (SMEs) is given in 2006. The Micro, Small and Medium Enterprises
(MSMED) Act, 2006 was imposed by the Ministry of Micro, Small and Medium
Enterprises, Government of India in 2006. A change in economic scenario
changes the definition of SME. The definition of SME for manufacturing sector is
different from that of service sector.

Definition of SME in Manufacturing Sector:

Manufacturing sector includes the firms and businesses which involve
production, processing, or preservation of goods. The definition for SME in
manufacturing sector according to the MSMED Act 2006 is described below. The
cost of land, building and the items specified by the Ministry of Small Scale
Industries are excluded in this description.

When the investment in plant and machinery of the firm does not exceed Rs. 25
lakh, then it is called a micro enterprise. A small enterprise is that having
investment in plant and machinery ranging between Rs. 25 lakh and Rs. 5 crore.

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If the investment in plant and machinery is between Rs. 5 crore and Rs. 10 crore,
then it is said to be a medium enterprise.

Definition of SME in Service Sector:

When the investment in equipment is not above Rs. 10 lakh, then it is called a
micro enterprise. A small enterprise is that one which has the investment in
requirement between Rs. 10 lakh and Rs. 2 crore. When the investment in
equipment is in the range between Rs. 2 crore and Rs. 5 crore, then it is called a
medium enterprise.

The Importance of Small and Medium Enterprises (SMEs) in any economy

cannot be overlooked as they form a major chunk in the economic activity of
nations. They play a key role in industrialization of a developing country like
India.

They have unique advantages due to:-

• Their size.

• Their comparatively high labor-capital ratio.

• need a shorter gestation period.

• focus on relatively smaller markets

• need lower investments.

• ensure a more equitable distribution of national income.

• facilitate an effective mobilization of resources of capital and skills which

might otherwise remain unutilized.

• Stimulate the growth of industrial entrepreneurship.

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According to a UNIDO report,supports for SMEs are generally based on three
assumptions.

• It sustains a broad and diversified private sector and creates employment

and thus benefits the country as a whole.

• Second, a strong SME sector will not emerge without support from the state,
but they suffer disadvantages in the markets because of their size.

• The programs aimed at smallest enterprises, have been justified more in

terms of their welfare impact than their economic efficiency.

Composition of SMEs in India

16%

service
44%
maufacturing
repairs and maintenance

40%

Indian SME at a Glance

In India, SME sector accounts for around 95% of the industrial units, 40% of the
value added in the manufacturing sector output, 34% of exports and provides
direct employment to 20 million persons in around 3.6 million registered SME

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units. Now, the question is, Can it overtake the invasion of foreign companies
through their innovative, quality, affordable/reasonable and readily available
products?

In developing countries like India, making the SMEs more competitive is

particularly pressing as trade liberalization and deregulation increase the
competitive pressures and reduce the direct subsidies and protection that
Governments offer to SMEs. If our SMEs are to be competitive enough to
withstand and fight back the foreign MNC products, they have to be nurtured.

According to Porter, ―the only meaningful concept of competitiveness at the

national level is Productivity, which is the value of output produced by a unit of
labor or capital. Productivity in turn depends on both the quality and features of
products (which determines the prices that they can command) and the efficiency
with which they can be produced. Productivity is the prime determinant of a
nation‘s long-run standard of living; it is the root cause of national per capita
income‖.

International trade and foreign investment can both improve a nation‘s

productivity as well as threaten it. They expose the nation‘s industries to the test
of international standards of productivity. An industry will lose out if its
productivity is not sufficiently higher than its rivals to offset any advantage in the
local wage rates. As wage rates in India are sufficiently less to attract multi-
nationals, the only way is to increase the productivity of local small industries.
This means, the increase in the productivity of labor i.e. human resources, the
productivity of capital and that of the process, which in turn relates to the use of
technology that yields quality and innovative products.

As every coin has two sides, similarly, even SME financing has a share in the
overall financing. The following are the issues of SME financing:

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 • They are unable to capture market opportunities, which require large
production facilities and thus could not achieve economies of scale,
homogenous standards and regular supply.

• They are experiencing difficulties in purchase of inputs such as raw

materials, machinery and equipment, finance, consulting services, new
technology, highly skilled labor etc.

• Small size hinders the internalization of functions such as market research,

market intelligence, supply chain, technology innovation, training, and
division of labor that impedes productivity.

• Emphasis to preserve narrow profit margins makes the SMEs myopic about
the innovative improvements to their product and processes and to
capture new markets.

• They are unable to compete with big players in terms of product quality,
range of products, marketing abilities and cost.

• And most importantly, absence of a wide range of Financing and other

services those are available to raise money and sustain the business.

• Absence of Infrastructure, quality labor, Business acumen and limited

options / opportunities to widen the business.

The micro, small and medium enterprises face problems at every stage of their
operation, whether it is buying of raw materials, manufacture of products,
marketing of goods or raising of finance. These industries are therefore not in a
position to secure the internal and external economies of scale.

The major problems confronting the sector have been identified as:

 Technology obsolescence
 Managerial inadequacies
 Delayed Payments

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  Poor Quality
 Incidence of Sickness
 Lack of Appropriate Infrastructure
 Lack of Marketing Network
 Problem of raw material & power
 Export difficulties
 Problem of industrial relations
 Growing sickness and mortality among these units.

There is lack of trained and experienced employees because small firms cannot
pay high salaries and cannot spend much on training their employees. Small
scale firms find it difficult to recruit and motivate skilled managerial and technical
personnel as they look for better opportunities in the large scale industries.
Therefore, they get the second rate talent or have to depend on family members
who do not have diversified skills.

Although, the primary responsibility for promotion and development of MSMEs

lies with the concerned State/ Union Territory (UT) Governments. But, the
Central Government has always taken active interest in supplementing the efforts
of State/UT Governments through its various regulations, as MSMEs have huge
potential both in terms of creation of wealth and employment as well as for the
proper growth of related sectors of the economy. In India, the Ministry of Micro,
Small and Medium Enterprises are the main central authority which assists the
States/UTs in their efforts to promote growth and development of MSMEs. It has
been implementing several schemes/programs and policies so as to enhance the
global competitiveness of the MSMEs. These relate mainly to simplified systems
and procedures, easy access to capital, positioning the MSMEs in the global
value chain by enhancing their productivity, technology up gradation, quality
improvement, skill development, access to both domestic and international
markets, etc.

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Risks Faced by SME Units

training / attitudes

echnology Risks (Scope / Costs / Quality)

In India Micro, Small and Medium Enterprises in agriculture, industry and

services sectors have key role in value addition, employment generation, export
earnings, equitable distribution of national income, regional dispersal of the
industries, productive utilization of entrepreneurial skilland capital. Micro, Small
and Medium enterprise [MSME] sector is heterogeneous, highly dispersed and

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Mostly in the unorganized sector. It includes diverse types of production units,
ranging from traditional crafts too modern high-tech industries and ancillaries that
supply components to most modern large-scale industries. Segments such as
power looms, handlooms, handicrafts, food processing, coir, sericulture, khadi&
village industries and wool, which are mostly unorganized, are fragmented
across various Ministries and are often seen only as rural livelihoods.

However, since these enterprises have been thriving in many prominent cities,
they indeed deserve focused attention of all stakeholders for development and
growth.

This MSME sector in particular contributes about 8% of the country‘s GDP, about
45% of manufactured output and about 40% of exports. This, coupled with a high
labor to capital ratio, high growth and high dispersion makes them crucial for
achieving the objectives of inclusive growth. The 11th Five Year Plan [2007-12]
says ―MSMEs are more than just GDP earners; they are instruments of inclusive
growth which touch upon the lives of the most vulnerable, the most marginalized
people. Yet this sector in successive Five Year Plans has not received its due‖.

It is against this background an attempt is made here to understand the broad

based definition of MSME sector, its contribution to country‘s economy, enabling
measures initiated by RBI to boost its development & growth, review credit
Operations and need to optimally utilize the institutional infrastructure already
created since 1970s at enormous cost to further accelerate its planned growth.

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Profile of Indian MSME Sector

S. No. Particulars Value

1.
Number of micro and small 130 Lakhs
enterprises
2.
Employment 410 Lakhs
3.
Share in GDP 8-9%
4.
Share in manufacturing output 45%
5.
Share in exports 40%

Growth in number of SME units

Registered Unregistered Total

Financial Year
(In Lacs) (In Lacs) (In Lacs)

FY‘ 03 16 93 109

FY‘04 17 97 114

FY‘05 18 100 119

FY‘06 19 104 123

FY‘07 P 20 108 128

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SIZE OF THE MSME SECTOR

Sr. No.
Details Micro Small Medium Total

Manufacturing
1 9,74,609 57,666 2,828 10,35,103
enterprises

Service
2 5,01,072 15,915 402 5,17,380
enterprises

Total number
3 1,475,681 73,581 3,230 15,52,492
of MSMEs

% distribution
4 95.05 4.74 0.21 100
of total units

% share of
5 manufacturing 94.16 5.57 0.27 66.67
units

% share of
6 96.85 3.08 0.08 33.33
service units

MICRO, SMALL, MEDIUM ENTERPRISES DEVELOPMENT (MSMED)ACT,

2006

Government of India has set up a new governing body for promotion and
development of Micro, Medium and Small Scale Enterprises via ―MSME
Development Act‖, which came into force from 2nd October 2006. The President
under Notification dated 9th May 2007 amended the Government of India
(Allocation of Business) Rules, 1961 by which, Ministry of Agro and Rural
Industries (Krishi Evam Gramin Udyog Mantralaya) and Ministry of Small Scale

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Industries (Laghu Udyog Mantralaya) have been merged into a single Ministry,
namely, ―Ministry of Micro, Small and Medium Enterprises‖.

The Ministry of ―Micro, Small and Medium Enterprises‖ (MSME) is the

administrative Ministry in the Government of India for all matters relating to Micro,
Small and Medium Enterprises. It designs and implements policies and
programmes through its field organizations and attached offices for promotion
and growth of MSME sector. The Office of the Development Commissioner
(MSME) is an attached office of the Ministry of MSME, and is the apex body to
advise, coordinate and formulate policies and programmes for the development
and promotion of the MSME Sector. The office also maintains liaison with Central
Ministries and other Central/State Government agencies/organizations financial
institutions.

In accordance with the provision of Micro, Small & Medium Enterprises

Development (MSMED) Act, 2006 the MSMEs are classified in two classes.

Manufacturing Enterprises: - The enterprises engaged in manufacturing or

Production of goods pertaining to any industry specified in the first schedule to
the Industries (Development and Regulation Act, 1951). The Manufacturing
Enterprise is Defined in terms of investment in Plant & Machinery.

Service Enterprises: - The enterprises engaged in providing or rendering of

services and are defined in terms of investment in equipment.

While for enterprises engaged in the manufacture or production, processing or

preservation of goods:

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  Micro Enterprise: A micro enterprise is where the investment in plant and
machinery does not exceed Rs. 25 lacs.

 Small Enterprise: A small enterprise is where the investment in plant and

machinery is above 25 lacs but does not exceed Rs. 5 crore.

 Medium Enterprise: A medium enterprise is where the investment in

plant and machinery can be more than Rs. 5 crore but should not exceed
Rs. 10 crore.

Service Enterprises are further classified as under:

 Micro Enterprises :A micro enterprise is where the investment in

equipment does not exceed Rs. 10 lakh .

 Small Enterprises : A small enterprise is where the investment in

equipments more than Rs. 10 lakh but does not exceed Rs. 2 crore .

 Medium Enterprises : A medium enterprise is where the investment in

equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.

India SME exports

SME‘s constitute an important segment of India‘s industrial production with a

contribution to 33% of its exports. During FY‘ 03-06, India‘s total merchandise

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exports in US dollar terms witnessed a CAGR growth of 25%, while in the same
period SME exports grew at a CAGR of 24%. The remarkable contribution of
SME‘s in generating employment in the country has been instrumental in
addressing issues pertaining to poverty and inequality of income. As per the

Third All India Census on Small Scale Industries-2001-02, highly populated

states such as Madhya Pradesh, Uttar Pradesh, West Bengal, Maharashtra,
Karnataka and Jharkhand together contributed to around 55.4% of the total
exporting units in India. In terms of distribution of value of exports from the SME
sector, states like Punjab, Haryana, Uttar Pradesh, Tamil Nadu and Maharashtra
together contributed 64.75% of total exports.

Composition of SSI export basket from India

The composition of export basket of SME‘s in India has both traditional and non-
traditional commodities in nature. There are few commodity groups which are
exclusively exported by SME‘s such as sports goods, cashew etc. In the
commodity group of engineering goods, SME‘s constitute around 40% of the total
exports of this commodity group.

Similarly, SME‘s in basic chemicals & pharmaceuticals finished leather and

leather products and marine products account for around 44%, 69% and 50% of
the export share in their respective commodity groups. In view of the
Government of India‘s ambitious target of average GDP growth rate of 9% during
the 11th Five Year Plan, SME‘s have to play a vital role in achieving this target. It
is imperative for the government to address the major issues plaguing the sector
and take further inclusive growth oriented policy initiatives to boost the sector.

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This includes measures addressing concerns of credit, fiscal support, cluster-
based development, infrastructure, technology, and marketing among others. As
mentioned earlier, SME‘s constitute 34% of India‘s merchandise exports and in
order to increase India‘s export share to the global trade, SME‘s are expected to
enlarge their scope manifold.

Why SME Loan Factory is called a Factory?

As it provides hassle free and faster sanctioning of credit to SME segment. This
is the hub for Centralized Processing of SME proposals. That is why it is called
as Loan factory.

PREAMBLE

It is a veritable race to the bottom of the pyramid. Just a decade ago, banks on
an aggressive growth path used to eliminate small &medium enterprises (SMEs)
from their portfolio. Then, economic and corporate reform, falling interest rate
and a booming capital market changed the game. The best companies aimed for
global competitiveness, restructured operations, cut costs, reduced borrowings
and met funding needs from the capital market leaving banks to find new
customers.

SME is fast growing sector in the Indian Economy. Every Bank has given highest
importance to financing to SMEs in their strategically growth plan. It has become
necessary to bring policy shift and create free market environment from
regulations & interventions in economic activity. Growth resulting from
globalization and liberalization are visible most profoundly in the SME segment.
The relationship between the banker and the customer has become most crucial
and competitive. The technology has entered the scene almost as a natural

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corollary of liberalization. Liberalized policies provide ample opportunities to
Indian Market to compete with developed and developing countries. The
clearance of the Micro, Small & Medium Enterprises Indian industry, as it
addresses and streamlines entire frame work along with key governance 7
operational issues being faced by the SMEs.

Outstanding Bank Credit to Micro & Small Enterprises

Percentage
All
Public Private of MSE
As on Foreign scheduled
sector Sector credit to
March Banks commercial
Banks Banks Net Bank
Banks
Credit
2005 67,800 8,592 6,907 83,498 9
82,434 10,421 8,430 101285
2006 7.5
(21.6) (21.3) (22.1) (21.3)
102,550 13,136 127,323
2007 11,637 (38) 7.2
(24.4) (26.1) (25.7)
151,137 46,912 15,489 213,538
2008 11.6
(47.4) (257.1) (33.1) (67.7)
191,408 46,656 (- 18,064
2009 156,128 (20) 11.4
(26.6) 0.5) (16.6)
278,398 64534 21,069 364,001
2010 (p) 13.4
(45.4) (38.3) (16.6) (42.1)

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OBJECTIVES

The SME Loan Policy is framed with the following objectives:

 To improve flow of credit to SME Sector so as to double the credit to the
Sector in 5 years, i.e. by the year 2012.
 To formulate liberal norms of lending to SME sector, to ensure availability
of adequate and timely credit to the sector.
 To provide guidelines to the branches to dispense credit to SME Sector on
liberalized terms.
 To devise an organizational structure at all levels for handling SME credit
portfolio in a more focused manner.
 To comply with terms of Policy package announced by Hon‘ble Union
Finance Minister on 10.08.2005 and further guidelines received from
Reserve Bank of India from time to time for implementation of the Policy
Package.

It can be observed that by and large, SMEs in India MET expectations of the
Government in this respect. SMEs developed in a manner, which made it
possible for them to, achieve the following objectives:

 High contribution to domestic production

 Significant export earning
 Operational flexibility
 Location wise mobility
 Capacities to develop appropriate indigenous technology
 Import substitution

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CHARACTERISTICS OF SMEs

 Concentration of functions in one/two persons

 Relatively low level of investments, production, sales etc
 Lack of professionalism
 Low efficiency in business operations
 Inadequate R&D
 Infrastructural inadequacies
 Limited market access
 Inadequate exposure to international environment

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 Governmental Measures

Recognizing the importance of small and medium enterprises in the growth of

Indian economy in terms of their contribution to country's industrial production,
exports, employment and creation of entrepreneurial base, the Central and State
Governments are undertaking several policy measures and incentives as well as
implementing schemes and programs for promotion and development of these
enterprises. For this, entrepreneurship development and training is one of the
key steps, particularly, for the first generation entrepreneurs.

Entrepreneurship Development Programs (EDPs) of various durations are being

organized on regular basis by a number of organizations, such as, National and
State level Entrepreneurship Development Institutes (EDIs);Micro, Small and
Medium Enterprises Development Institutes (MSMEDIs) - formerly called Small
Industries Service Institutes (SISIs); National and State level Industrial
Development Corporations, Banks and other training institutions/agencies in
private and public sector; etc. These EDPs aims to create new entrepreneurs by
cultivating their latent qualities of entrepreneurship and enlightening them on
various aspects necessary for setting up micro and small enterprises. Besides,
skill development programs (SDPs) and entrepreneurship-cum-skill development
programs (ESDPs) are also being organized by various public as well as private
training institutions. However, there are still wide spread variations in the success
rate, in terms of actual setting up and successful running of enterprises, by the
EDP/SDP/ESDP trained entrepreneurs. Also, new entrepreneurs generally face
difficulties in availing full benefits under available schemes of the Governments /
financial institutions, completing and complying with various formalities and legal
requirements under various laws/regulations, in selection of appropriate
technology, etc.

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In order to bridge the gap between the aspirations of the potential entrepreneurs
and the realities, there is a need to support and nurture the potential first
generation entrepreneurs by giving them handholding support during the initial
stages of setting up and managing their enterprises.

Accordingly, the scheme called 'Rajiv Gandhi Udyami Mitra Yojana (RGUMY)'
has been launched to provide handholding support and assistance to the
potential first generation entrepreneurs, who have already successfully
completed EDP/SDP/ESDP or vocational training from ITIs, through the selected
lead agencies, like 'Udyami Mitras'. This helps such entrepreneurs in the
establishment and management of the new enterprise, in dealing with various
procedural and legal hurdles as well as in completion of various formalities
required for setting up and running of the enterprise, etc.

The work profile of Udyami Mitras include networking, coordinating and follow up
with various Government departments/ agencies/ organizations and regulatory
agencies for channelizing the benefits available under various schemes to the
first generation entrepreneurs and help them in setting up their enterprise.

Some of the other governmental measures for small and medium enterprises
include:-

 The Ministry of Micro, Small and Medium Enterprises has been

implementing the 'Scheme of Surveys, Studies and Policy Research' with
a view to regularly/periodically collect, from primary, secondary and other
sources, relevant and reliable data on various aspects and features of
micro, small and medium enterprises (MSMEs) engaged in manufacturing
and services (whether in the category of tiny/small scale industries, khadi,
village industries or coir) as a composite group or specific segments
thereof. It aims to study and analyze, on the basis of empirical data or
otherwise, the constraints and challenges faced by the MSMEs as well as
the opportunities available to them, in the context of liberalization and

- 27 -
 globalization of the economy. It further aims to use the results of these
surveys and analytical studies for policy research and designing
appropriate strategies and measures of intervention by the Government,
by itself or in public private partnership mode, to assist and enable these
enterprises in facing the challenges and availing of the opportunities with a
view to enhancing their efficiency and competitiveness as well as
expanding generation of sustainable employment by them.

 Micro, Small and Medium Enterprises Development Act, 2006 has been
enacted to facilitate the promotion and development as well as enhance
the competitiveness of micro, small and medium enterprises and for
matters connected therewith or incidental thereto. For this, it included the
establishment of specific funds, notification of particular
schemes/programs, progressive credit policies and practices, preference
in Government procurements to products and services of these
enterprises, following more effective mechanisms for mitigating their
problems, etc. It provides the first-ever legal framework for recognition of
the concept of 'enterprise' which comprises both manufacturing (those
engaged in the manufacture/production of goods pertaining to any
industry) and service (those engaged in providing/rendering of services)
entities. Under the Act, three tiers of enterprises, namely 'micro, small, and
medium' have been defined for the first time. The Act also provides
statutory consultative mechanism at the national level with balanced
representation of all sections of stakeholders, particularly, these
enterprises, and with a wide range of advisory functions.

 The progressive de-reservation of products in the MSMEs aimed at

providing opportunities for technological up gradation, promotion of
exports and economies of scale, with a view to encourage modernization
and enhance competitiveness in the sector. As on 13 March 2007, 125
items were de-reserved. As on 8th February, 2008, 79 items more were

- 28 -
 de-reserved. At present, the total number of items reserved for exclusive
manufacture in the micro and small scale sector is 35.

 The National Manufacturing Competitiveness Program (NMCP) has been

launched to provide support to the manufacturing sector, particularly small
and medium enterprises sector, in their endeavor to become competitive.
It consists of 10 components and programs as the initiatives for
development and promotion of MSMEs.

 Credit is one of the critical inputs for the promotion of small and medium
enterprises. It is a part of the priority sector lending policy of the banks.
Accordingly, several schemes and policies have been undertaken to
provide adequate credit to such enterprises. One of such scheme is
the Credit Linked Capital Subsidy Scheme (CLCSS) which was launched
to facilitate technology up gradation by upfront capital subsidy to small,
micro and medium enterprises, including tiny, khadi, village and coir
industrial units, on institutional finance (credit) availed by them for
modernization of their production equipment (plant and machinery) and
techniques in specified sub-sectors/ products approved under the
Scheme.

Besides, the State and Union Territories (UTs) Governments are executing
several promotional and developmental projects/schemes as well as providing a
number of supporting incentives for development and promotion of MSME sector
in their respective States/UTs. These schemes/ projects are executed
through State Directorate of Industries, who has District Industries Centers
(DICs) under them to implement Central/State level schemes. Around 30 MSME-
DIs and 28 Branch MSME-DIs have been set up in State capitals and other
industrial cities all over the country, with a view to provide assistance/consultancy
to prospective entrepreneurs as well as to existing units; conduct EDPs,
Management Development Programs, Skill Development Programs, etc.

- 29 -
Bank of Baroda
(An Introduction)

- 30 -
Bank of Baroda is a public sector bank established on July20, 1908. It is one of
the largest banks in India and known as India‘s International Bank. It has a
network of over 3411 branches and offices & about 1596 ATMs. Bank of Baroda
offers a wide range of banking products and financial services to corporate and
retail customers through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the area of investment banking, credit
cards and assets management, in its international expansion Bank of Baroda
followed the Indian Diaspora, and especially
that of the Gujratis. The bank has received
RBI approval to open various offices in the
overseas territory. Its products includes
loans, Credit cards, Savings, Investment
vehicles etc. The Corporate office is situated
in Mumbai. Its shares are listed in BSE and
NSE.

Backed by the great vision of the founding father, Maharaja Sayajirao Gaekwad
III, Bank has a rich heritage of many flagship achievements, pioneering
endeavors and an undisputedly strong place in the Indian Banking industry
today. The Bank of Baroda has seen many ups and downs over a period of 100
years but stood undaunted to surmount all hurdles, coming out with flying colors
and reinforcing its strong fundamentals. The world was convinced time and again
that this is the Bank with impregnable foundation and immense potential to forge
ahead to contribute to the nation‘s economic growth.

Bank of Baroda is one of the oldest banking institutions in India, having been
established in 1908 from a small building in Baroda, Gujarat State. It was set up
with a paid up capital of Rs.20 lakhs by the then ruler of Baroda, Maharaja
Sayajirao Gaekwad.

- 31 -
PROFILE

Bank of Baroda (BOB), India‘s third largest bank and prominent among the global
top 200, has a century‘s financial experience backing it. Bank of Baroda offers a
wide range of banking products and financial services to more than 70 million
global corporate and retail customers, through various delivery channels, its
specialized subsidiaries and affiliates in the areas of investment banking, credit
cards and asset management. Today, the Bank has significant international
presence with a network of 85 branches/offices in 26 countries including 53
branches/offices of the Bank, 28 branches of its 8 Subsidiaries and 3
Representative Offices in Malaysia, Thailand & Australia.

The Bank also has a Joint Venture in Zambia with 12 branches. During the
current year bank has opened branch at IIford, U.K. & Auckland, New Zealand of
its wholly owned subsidiary-Bank of Baroda (new Zealand) Ltd and 3 Electronic
Banking Service Units in UAE at RAKIA, Ras Al Khaimah, Al Quasis, Dubai and
Sh. Zayed Road, Dubai.

Growing its presence across new geographies and strengthening its equity in
existing markets, Bank of Baroda is on the path to establish itself 'round the clock
around the globe‘. The bank is exploring out-of-the-box means to identify novel
ways to tailor its growing repertoire of products and services to meet segment-
specific requirements across geographies. Automation-led process and cost
optimization, orchestration of the offices network and greater attention to
compliance with global regulations are aggressively being focused on to help the
bank achieve its ambitious goals.

- 32 -
HISTORY

Bank of Baroda is having a long, eventful and glorious history of 100 years. HH
Sir Maharaja Sayajirao Gaekwad-III founded the Bank. The Bank made a humble
beginning in 1908 in a small building in Baroda. On 20th July 1908 Bank of
Baroda Limited was registered under the Baroda Companies Act of 1897, with a
paid up capital of Rs.20 lacs and Shri Vithaldas Damodar Thackersey as the first
Chairman.

1908-1959

1908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda (BOB).

1910: BoB established its first branch in Ahmadabad.

1953: BoB established a branch in Mombasa and another in Kampala.

1954: BoB opened a branch in Nairobi.

1956: BoB opened a branch in Dar-es-Salaam.

1957: BoB established a branch in London.

1959: BoB acquired Hind Bank.

1960s

1961: BoB merged in New Citizen Bank of India. This merger helped it increase
its branch network in Maharashtra. BOB also opened a branch in Fiji.

1962: BoB opened a branch in Mauritius.

1963: BoB acquired Surat Banking Corporation in Surat, Gujarat.

1964: BoB acquired two banks, Umbergaon People‘s Bank in southern Gujarat
and Tamil Nadu Central Bank in Tamil Nadu state. BoB lost its branch in

- 33 -
Narayanganj (East Pakistan) due to the Indo-Pakistan war. It is unclear when
BOB had opened the branch.

1965: BoB opened a branch in Guyana.

1967: The Tanzanian government nationalized BoB‘s three branches there and
transferred their operations to the Tanzanian government-owned National
Banking Corporation.

1969: The government of India nationalized 14 top banks, including BoB. Bob
incorporated its operations in Uganda as a 51% subsidiary, with the government
owning the rest.

1970s

1972: BoB acquired The Bank of India‘s operations in Uganda.

1974: BoB opened a branch each in Dubai and Abu Dhabi.

1975: BoB acquired the majority shareholding and management control of

Bareilly Corporation Bank (est. 1928) and Nainital Bank (est. in 1954), both in
Uttar Pradesh. Since then, Nainital Bank has expanded to Uttarakhand State.

1976: BoB opened a branch in Oman and another in Brussels. The Brussels
branch was aimed at Indian firms from Mumbai (Bombay) engaged in diamond
cutting and jewellery having business in Antwerp, a major center for diamond
cutting.

1977: BoB Opened a branch in Imphal .

1978: BoB opened a branch in New York and another in the Seychelles.

1979: BoB opened a branch in Nassau, The Bahamas.

- 34 -
1980s

1980: BoB opened a branch in Bahrain and a representative office in Sydney,

Australia. BoB, Union Bank of India and Indian Bank established IUB
International Finance, a licensed deposit taker, in Hong Kong. Each of the three
banks took an equal share.

1985: BoB (20%), Bank of India (20%), Central Bank of India (20%) and ZIMCO
(Zambian government; 40%) established Indo-Zambia Bank (Lusaka). BoB also
opened an Offshore Banking Unit (OBU) in Bahrain.

1988: BoB acquired Traders Bank, which had a branch network in Delhi.

1990s

1990: BoB opened an OBU in Mauritius, but closed its representative office in
Sydney.

1991: BoB took over the London branches of Union Bank of India and Punjab &
Sind Bank (P&S). P&S‘s branch had been established before 1970 and Union
Bank‘s after 1980. The Reserve Bank of India ordered the takeover of the two
following the banks' involvement in the Sethia fraud in 1987 and subsequent
losses.

1992:BoB incorporated its operations in Kenya into a local subsidiary with a small
tranche of shares quoted on the Nairobi Stock Exchange.

1993: BoB closed its OBU in Bahrain.

1996: BoB Bank entered the capital market in December with an Initial Public
Offering (IPO). The Government of India is still the largest shareholder, owning
66% of the bank's equity.

1997: BoB opened a branch in Durban.

- 35 -
1998: BoB bought out its partners in IUB International Finance in Hong Kong.
Apparently this was a response to regulatory changes following Hong Kong‘s
reversion to the People‘s Republic of China. The now wholly owned subsidiary
became Bank of Baroda (Hong Kong), a restricted license bank.

BoB also acquired Punjab Cooperative Bank in a rescue.

BoB also incorporate wholly owned subsidiary BOB Capital Markets [Link]
Broking Business.

1999: BoB merged in Bareilly Corporation Bank in another rescue. At the time,
Bareilly had 64 branches, including four in Delhi.

In Guyana, BoB incorporated its branch as a subsidiary, Bank of Baroda Guyana.

BoB added a branch in Mauritius, but closed its Harrow Branch in London.

2000s

2000: BoB established Bank of Baroda (Botswana).

2002: BoB acquired Benares State Bank (BSB) at the Reserve Bank of India‘s
request. BSB was established in 1946 but traced its origins back to 1871 and its
function as the treasury office of the Benares state. In 1964, BSB had acquired
Bareilly Bank (est. 1934), with seven branches; it also had taken over Lucknow
Bank in 1968. The acquisition of BSB brought BOB 105 new branches.

2002: Bank of Baroda (Uganda) was listed on the Uganda Securities Exchange
(USE).

2003: BoB opened an OBU in Mumbai.

2004: BoB acquired the failed Gujarat Local Area Bank, and returned to
Tanzania by establishing a subsidiary in Dar-es-Salaam. BoB also opened a
representative office each in Kuala Lumpur, Malaysia, and Guangdong, China.

- 36 -
2005: BoB built a Global Data Centre (DC) in Mumbai for running its centralized
banking solution (CBS) and other applications in more than 1,900 branches
across India and 20 other counties where the bank operates. BoB also opened a
representative office in Thailand.

2006: BoB established an Offshore Banking Unit (OBU) in Singapore.

2007: In its centenary year, BoB‘s total business crossed 2.09 lakh crores, its
branches crossed 1000, and its global customer base 29 million people.

2008: BoB opened a branch in Guangzhou, China (02/08/2008) and in Kenton,

Harrow United Kingdom.

2008: BoB opened a joint venture life insurance company with Andhra Bank and
Legal and General (UK) called India First Life Insurance Company

2009: The Bank of Baroda registered with the Reserve Bank of New Zealand,
enabling it to trade as a bank in New Zealand (2009/09/01)

2010: Malaysia awarded a commercial banking license to a locally incorporated

bank to be jointly owned by Bank of Baroda, Indian Overseas Bankand
AndhraBank. The new bank, India BIA Bank (Malaysia), will reside in Kuala
Lumpur, which has a large population of Indians. Andhra Bank will hold a 25%
stake in the joint-venture, Bank of Baroda will own 40% and IOB the remaining
35%.

- 37 -
BANK NETWORK

OVER SEAS SUBSIDIARIES

Bank of Baroda (Botswana) Ltd.

Bank of Baroda (Kenya) Ltd.

Bank of Baroda (Uganda) Ltd.

Bank of Baroda (Guyana) Inc.

Bank of Baroda (Trinidad & Tobago) Ltd.

Bank of Baroda (Tanzania) Ltd.

Bank of Baroda (Ghana) Ltd.

Bank of Baroda (New Zealand) Ltd.

Joint Venture

India-Zambia Bank Ltd. (Lusaka)

Representative Offices

Australia, Malaysia, Thailand.

Indian Subsidiaries:

1. BOB Assets Management Co. Ltd.

2. BOBCARDS Ltd.

3. BOB Capital Market Ltd.

- 38 -
International Net work

At present, the Bank has an overseas network of 72 branches / offices in the

following 26 countries as under:

(1) Bahamas (2) Belgium (3) Botswana (4) Bangkok (5) China (6) Fiji Island (7)
Guyana (8) Hong Kong (9) Kenya (10) Mauritius (11) Malaysia(12) South Africa
(13) Seychelles (14) Sultanate of Oman (15) Singapore (16) Tanzania (17)
Uganda (18) UAE (19) UK (20) USA (21) Zambia (22) Australia (23) Bahrain (24)
Ghana (25) Trinidad & Tobago (26) New Zealand

- 39 -
BOARD OF DIRECTORS OF BANK OF
BARODA

NAME DESIGNATION

1. Shri M.D. Mallya Chairman & Managing

Director
2. Shri N. S. Shrinath Executive Director
[Link] Rajiv Kumar Executive Director
Bakshi

4. Shri Alok Nigam Director

5. Shri R. Gandhi Director
6. Shri Ajay Mathur Director
7. Shri V.B. Chavan Director
[Link].(Smt.) Masarrat Director
Shahid
9. Shri Satya Dev Director
Tripathi
[Link]. Dharmendra Director
Bhandari
11. Dr. Deepak B. Director
Pathak
12. Shri Maulin Vashnav Director

- 40 -
POSITION

Bank of Baroda is at 3rd position in India‘s top 5 Public sector banks after State
Bank of India and Punjab National Bank. After BOB are IDBI and Bank of India.

BANK’S MISSION STATEMENT of 2011-12

―Business Growth through sales and service excellence.‖

BANK’S VISION

1. To regain the leadership spot among the public sector Banks in India.

2. To acquire at least 2 million customers every year.

3. To double the retail assets and fee based income

4. To bring at least 300 to 400 of the top 500 Corporate in the Bank‘s Loan book

5. To transform the top 500 branches into best-of-the-breed sale and service
centers, through improved ambience, processes, people and technology.

6. To pursue best global practices for delivering best value to the customers.

- 41 -
PRODUCTS AND SERVICES

Given below is the list of services offered by the Bank of Baroda:

 Retail Banking

 Rural / Agri Banking

 Wholesale Banking

 SME Banking

 Wealth Management

 De mat account

 Product Enquiry

 Internet Banking

 NRI Remittances

 Baroda e-trading

 Interest Rates

 Deposit Products

 Loan Products

 ATM / Debit cards

- 42 -
International Services

 NRI Services

 FGN Currency Credits

 ECB (External Communication Borrowings)

 FCNR (B) Loans

 Offshore Banking

 Finance in Export and Import

 Correspondent Banking Facility

 International Treasury

- 43 -
 ―ACCOLADES AND AWARDS WON BY THE BANK‖

Sr. No Name of the Year Area Organization

Award conferring the
award
1 Excellence in 2006 Outstanding contribution Association of
Finance in financial Business
Communication communications Communications of
Award India (ABCI)
2 Golden Peacock 2007 Innovation Golden Peacock
Innovation Award
3 Outlook Money 2007 Best Bank in Home Loan Outlook Money
NDTV Money Category NDTV Money
Award
4 Employer Branding 2007 Managing Health at work ITM Business
Award School

- 44 -
5 Amity Leadership 2007 Sectoral Excellence Amity Business
Award School
6 SKOCH 2007 Change Management SKOCH Consultants
Challenger Award Pvt. Ltd.
7 MIDAS Award 2007 Marketing Effectiveness MIDAS Awards,
New York
8 Bank of the Year 2009 Urban Development Workhardt
Foundation
9 Silver Award 2010 Rendering Financial Dainik Bhaskar
Services Group

10 Best Bank Award 2010 Significant progress in all Business India

fields Magazine
11 Bank of the Year 2010 Continuous progress Banker Magazine,
2010 UK
12 Financial Inclusion 2011 For tap the potential SKOCH
Award asset of unskilled Consultancy Pvt.
unemployed youth of Ltd.
India to impart them
training by setting up
Baroda Swarojgar Vikas
Sansthan(BSVS) Baroda
R-SETI Centers.

- 45 -
Bank of Baroda –
SME Loan Factory

- 46 -
ORGANIZATIONAL SET UP

Bank of Baroda has set up SME Department at Corporate Office headed by the
General Manager with a view to take quick decisions. Bank of Baroda has 60
Specialized SME branches all over India.

SME LOAN FACTORY- Objectives

 To grab vast business opportunities available and with an aim to extend

focused attention to Industries & Service Sector, Bank Of Baroda has
come out an unique model in the form of SME LOAN FACTORY
exclusively for SMEs.
 It is a revolutionary step taken by Bank of Baroda amongst the
nationalized Banks. Is envisages setting up of Centralized Processing Hub
to ensure speedy appraisal and sanctioning of proposals of SME Sector
within a time bound schedule.
 The models works on assembly line principles with simplified processes
using latest technology and in-house skilled men power to deliver focused
services to SME customers.
 A team of relationship Officers / Relationship Managers have been
stationed at different key places spread over the micro segment of the city
who will reach out to SME customers.
 At present 36 SME Loan Factories have already been operationalised all
over India with deployment of team of experts.

FEATURES OF THE MODEL

 Team of officers having expertise in the area of credit with positive

approach is selected.

- 47 -
  Instead of appointing DSAs (Direct Selling Agents), bank has appointed
officers from existing dedicated team only.
 The hubs main role is ensuring speedy appraisal & sanctioning of
proposals pertaining to SME Sector in a time bound program.
 The team members reach out to different market segments.
 It‘s important feature is working of the SME Loan Factory on assembly line
principles with simplified processes.
 We have two nodes to take care of the marketing/ sales (SALES HUB)
and credit processing/ sanction (CREDIT HUB), under a single umbrella of
the SME Loan Factory.

ELIGIBLE ENTITIES

Manufacturers Hospitals Dressmakers

Traders Hotels Coaching classes
Educational institutions Auto dealers Repairers etc.

The total outstanding in MSME Sector works out to Rs 27,365 crore as on 31st
March 2011. The growth in lending to MSME Sector during the last three years is
given in the table below:

GROWTH INLENDING:

Year Growth (%, YoY)

2008-09 24.18%
2009-10 43.98%
2010-11 29.63%

- 48 -
PERFORMANCE OF S.M.E. (JAIPUR) :

PERIOD TARGET (In Cr.) ACHIEVED (In Cr.)

1.04.2010 to 575.00 652.10
31.03.2011

Industry wise sanctions and disbursement during the period 1/04/10 to

31/03/11

Sr.
No. Industries Proposal Sanctioned Proposal disbursed

No. Amount(cr.) No. Amount (cr.)

1 Engineering 5 50.89 3 48.99

Auto & Auto

2 ancillaries 1 1.50 1 1.50

3 Textile 16 35.39 14 34.40

4 Chemical 8 3.67 8 3.67

5 Plastic 8 13.37 6 12.79

6 Iron & Steel 20 61.41 18 57.91

7. Other manufacturing 91 270.52 79 195.79

8 Real estate 3 42.07 2 32.07

9 Construction s 19 71.11 16 64.64

10 Educational institutes 6 54.72 5 32.42

- 49 -
11 Hotels 1 1.50 1 1.50

12 Other service sector 8 8.93 7 7.93

13 Trading sector

(a) Retail 8 19.78 8 19.78

(b) Wholesale 18 17.24 13 9.80

Total 212 652.10 181 523.19

INITIATIVES TAKEN BY BANK IN MSME FINANCING DURING 2010-11

1. During this year, the Bank introduced five new customer-centric, area-specific
products to suit the local cluster needs along with the renewal of eight existing
customer-centric area-specific products.

2. The Bank sponsored a workshop on ―Management Skills to Source Financing

and Management of Technology by SMEs‖ for entrepreneurs organized by the
AIMA at Faridabad.

3. The Bank introduced ―Protrack‖ -- an e-tracking system for the SME credit
proposals with a view to have control over the turnaround time.

4. The Bank celebrated SME Festival from 1st January 2011 to 28th February
2011 in order to give boost to SME advances. Some concessions in the rate of
interest and service charges were announced for loans sanctioned during the
celebration period.

5. The Bank participated in the Workshops arranged by CGTMSE on Bank Credit

to Micro & Small Enterprises and the Role of Credit Guarantee.

6. The Bank accorded higher importance to Increase the flow of credit to MSME
with a special emphasis on Micro Enterprises.

- 50 -
7. The Bank focused on collateral free credit under the CGTMSE scheme
through a special campaign.

8. The Bank achieved total customer relationship through enhanced cross

selling, locational meetings, and involvement of trade bodies at the national and
state levels.

9. The Bank placed emphasis on continuous knowledge updating and skill

building of processing/marketing officers attached to its SME factories with the
help of external and internal training outfits.

SME PRODUCTS

1. BARODA Overdraft against Land & Building

2. Baroda SME Loan Pack

3. Baroda Vidyasthali Loan

4. Baroda Arogyadham Loan.

5. SME Short Term Loans

6. SME Medium Term Loans

7. Composite Loans

8. Baroda SME Gold Card.

9. Collateral Free Loans under Credit Guarantee fund trust Scheme for Small
Enterprises.

10. Term Loans and Working capital finance.

11. Loans under Technology Up gradation Fund/Credit Linked Subsidy Scheme.

- 51 -
12. Loans under National Equity Fund Scheme.

13. Baroda Artisans Credit Card

14. Baroda Laghu Udyami Credit Card.

FEATURES OF THE PRODUCT

 Bank of Baroda has posted skilled own employees who are stationed at
micro level in the market.
 Liberal approach for the SMEs.
 No hidden charges in any of the products.
 The products have very competitive rate of interest.
 Time Bound Turnaround Time of SME Proposals.
 Simplified Processing and System.
 A Unique product launched SME Loan Pack, which is a single line of
credit for fund-based, non-fund based long term requirements.
 Area specific products have been designed taking into consideration
specific geographical requirement of the cluster.

BRIEF DETAILS OF SME PRODUCTS

1. BARODA SME LOAN PACK

Baroda SME Loan Pack provides single line of credit for meeting SME borrowers‘
working capital as well as long-term requirements within the overall limit
approved by the bank.

- 52 -
PURPOSE:

To provide hassle free credit for working capital (fund based and non-fund
based) as also long-term requirements, taking into account nature of business,
cyclical trends, cash flow projections, peak time requirements and any
eventuality of unforeseen spurt in the business.

ELIGIBILITY:-

 Micro, Small and Medium Enterprises (Manufacturing and Service sector )

other than retail trade- as per regulatory definition irrespective of
geographical location, i.e. rural, semi-urban, urban, metro areas.
 All other entities with their annual sales turnover of Rs. 1 crore to Rs. 150
Crore and new infrastructure and real estate projects, where the project
cost is up to Rs. 50 Crores.

COMPOSITE LIMIT:

4.5 times of borrower‘s tangible net worth as per last audited Balance Sheet, or,
Rs. 5.00 Crores, whichever is lower.

MARGIN: 25% .

2. BARODA OVERDRAFT AGAINST LAND AND BUILDING

Baroda Overdraft against land and building is a unique product for financing
working capital requirements/long term margin requirements of SME borrowers
against the security of unencumbered land and building belonging to the unit or
Promoters of the unit.

PURPOSE:

To meet Fund based working capital requirements.

- 53 -
ELIGIBILITY:-

SMEs as per expanded definition established in the line of business for a

minimum period of 2 years and financed/ proposed to be financed under sole
banking arrangements.

LIMIT:-

Minimum:Rs. 25.00 Lakhs(for rural, semi-urban, urban, metro branches)

Maximum: Rs. 50.00 Lakhs (for Rural branches)
Rs. 200.00 Lakhs (for Semi-Urban) Rs. 500.00 Lakhs (for Urban and Metro
branches)

SECURITY:-

Mortgage of factory land and building and/or any other property (Land & Building)
belonging to promoters, viz. Directors, who will also stand as guarantors,
Proprietor or Partners.

In case of residential/commercial building, age of property should not be more

than 25 years.

MARGIN:-

40% of the market value of property mortgaged. Regional head is authorized to

reduce the margin upto 35% in deserving cases.

[Link] LOANS
ELIGIBILITY:-

Small Scale Industrial Units (including artisans, village and cottage industrial
units and tiny units in SSI Sector), and Small Scale Service & Business
Establishments engaged in industrial activities only.

- 54 -
PURPOSE:-

Fixed capital investment and / or working capital requirement.

AMOUNT OF LOAN :Up to Rs. 100/- Lakhs.

MARGIN:

Nil in case of composite loan up to Rs. 25,000/-.

15% - 25% in case of composite loans above Rs. 25000/- and up to Rs. 100/-
Lakhs.

SECURITY:

Charge on assets created out of loan amount and other collateral securities as
determined on the merits of each case.

PERIOD OF REPAYMENT:

Minimum 3 years and maximum of 10 years (which can be extended), with initial
holiday of 12 months to 18 months.

4. BARODA VIDHYASTHALI LOAN

Baroda Vidyasthali Loan is a special scheme for financing Educational

Institutions.

PURPOSE:

To meet the financial requirements for setting up the institutions which includes
construction of building, purchase of equipment etc. for the new set up as also
renovation of the existing facilities, purchase of instruments for imparting
education training to the students.

- 55 -
ELIGIBILITY:

Educational institutions, Schools, Colleges and other education bodies running

education activities set up by firms, company, trusts etc (Note: HUF are not
eligible.)

LIMIT:

Minimum Rs.25 lacs

Maximum Rs.10.00 crores

SECURITY:

 Equitable mortgage of Land & Building (not agricultural land).

 Hypothecation of Instruments & Equipment acquired out of the loan and
other assets of the Educational Institution.
 Personal guarantees of the Promoters of the Institution.

MARGIN

25% of the cost of the project.

5. BARODA AROGYADHAM LOAN

PURPOSE: -

To meet the financial requirements for setting up of new Nursing Home/Hospital

including Pathological Laboratory, Expansion/renovation/modernization of
existing Nursing Home/ Hospital including Pathological Laboratory, Purchase of
medical diagnostic equipments as also office equipments, viz. computers, air
conditioners, office furniture, Purchase of ambulance etc and to meet working
capital requirements.

- 56 -
ELIGIBILITY: -

 Micro, Small and Medium Enterprises as per regulatory definition

irrespective of geographical location, i.e. rural, semi-urban, urban, metro
areas.
 All other entities with their annual sales turnover of Rs. 1 crore to Rs. 150
Crore and new infrastructure and real estate projects, where the project
cost is up to Rs. 50 Crores.
Note: The Promoters should have requisite qualification in any branch of medical
science from a recognized University and should have minimum 2 years of work
experience.

LIMIT: -

Rural Centers - Rs. 0.50 crores

Semi-Urban Centers - Rs. 6.00 crores
Urban & Metro Centers - Rs. 12.00 crores
Notes:

Working Capital limits up to 10% of the annual sale or gross income, subject to
20% of the above ceiling limit in case of borrowers requiring both Term Loan and
working capital facilities.

SECURITY:-

1. Equitable mortgage of Land & Building/premises of Nursing Home/Hospital

2. Hypothecation of medical equipment/office equipment acquired out of loan

amount.

3. Personal guarantee of Promoter Directors in case of Limited Companies and

Trustees in case of Trusts.

4. Hypothecation of medicines, receivables and other chargeable current assets.

- 57 -
5. Charge on unencumbered assets of Promoter Directors in case of Private
Limited Companies, or any other collateral by way of FDR, mortgage of
properties in the personal name of the relatives of Promoters, etc.

MARGIN:

25% on the chargeable assets.

6. MARGIN MONEY SCHEME ENDER RURAL EMPLOYMENT GENERATION

PROGRAM OF KVIC

OBJECTIVES:

 To generate employment in rural area.

 To develop entrepreneurial skills among the rural unemployed youth.
 To achieve the goal of rural industrialization.
 To facilitate participation of Financial Institutions for higher credit to rural
industries.

ELIGIBILITY:

 Individual entrepreneurs above 18 years of age.

 Self-Help Groups
 Institutions
 Co-operative Societies
 Trusts
 Public Limited Companies owned by State/Central Government

- 58 -
ELIGIBLE PROJECTS:

[Link] village industry (except those mentioned in the negative list by KVIC)
located in the rural areas, in Manufacture as also Service Sector, and in which,
the fixed capital investment per head of a full time artisan or worker does not
exceed Rs. 50,000/-

2. Sponsoring of the Project is not mandatory.

3. KVIC would impart training to the beneficiary.

CEILING LIMIT PER PROJECT:

Rs. 25/- Lakhs (exclusive of cost of land)

MARGIN: 5% of the Project cost in respect of beneficiaries belonging to

SC/ST/OBC/ women/PH/Ex-Servicemen/Minority and those located in Hill,
Border & Tribal area/North East Region/Sikkim/Andaman & Nicobar Islands &
Lakshadweep.

10% in case of other beneficiaries.

MARGIN MONEY:

For projects costing up to Rs. 10/- Lakhs - 25% of the Project cost.

For Projects costing above Rs. 10/- lacs and up to Rs. 25/- Lakhs – 25% of Rs.
10/- Lakhs + 10% of the remaining cost of the Project.

In case of SC/ST/OBC/women/PH/Ex-Servicemen/Minority and those located in

Hill, Border & Tribal area/North East Region/Sikkim/Andaman & Nicobar Islands
& Lakshadweep, margin money will be 30% of the Project cost up to Rs. 10/- lacs
plus 10% of the remaining cost of the Project. Margin Money is calculated on the
actual bank loan availed + borrower‘s own contribution

- 59 -
7. COLLATERAL FREE LOANS UNDER CREDIT GUARANTEE FUND
SCHEME FOR MICRO AND SMALL ENTERPRISES

PURPOSE:

To provide collateral free loans up to Rs.50/- lacs to Micro & Small Enterprises
(both in the Manufacturing Sector as well as in the Service Sector)

ELIGIBILITY:

Micro & Small Enterprises (both in the Manufacturing Sector as well as in the
Service Sector)

LIMIT:

Term Loan and/or Working Capital / Non Fund Based facility like Letter of Credit,
Guarantee etc. up to an aggregate limit of Rs.50/- lacs to a single borrower.

SECURITY:

Current/fixed assets of the unit. No collateral / third party guarantee.

GUARANTEE FEE:

A onetime guarantee fee (Joining fee) at specified rate (currently 0.75% p.a. of
the credit facilities sanctioned and annual service fee @ 0.75% p.a.

BANK’S INITIATIVE

50% of the guarantee fee is shared by the bank with the borrowers (loan up to 25
lacs) to reduce the cost to the borrower.

- 60 -
8. BARODA SME GOLD CARD
Baroda SME Gold Card envisages provision of additional limit of 10% of the
assessed eligible bank finance for Working Capital to existing Small & Medium
Enterprises, on request along with regular application for Working Capital limits
to meet emergent requirements.

PURPOSE:

To provide hassle free on the spot assistance to take care of borrowers‘

emergent requirements and tie up temporary mismatch in liquidity arising out of
delayed payment by buyers, tax payment, execution of bulk orders, etc.

ELIGIBILITY:

Accounts in Standard Category for last 2 years, with credit rating of ―BOB 4‖ and
above and enjoying working capital limits of Rs. 25/- Lakhs and above.

Accounts having sole banking arrangement with our bank.

MARGIN:

Nil

RATE OF INTEREST:

As applicable for regular Cash Credit facility.

PERIOD:

12 months to be allowed on 4 occasions during the year for a maximum period of

2 months on each occasion.

SECURITY:

As applicable to regular Cash Credit facility.

- 61 -
9. SME SHORT TERM LOANS

PURPOSE:

To meet temporary shortfall / mismatch in liquidity, for meeting genuine business

requirements only.

ENTERPRISES GROUP:

Small and Medium-sized corporate, business and Trading houses (including

partnership firms).

ELIGIBILITY CRITERIA:

 Satisfactory credit rating for the last three years (BOB 4 and above) and
for 4 half years in case of accounts where credit rating is done on half
yearly basis.
 Satisfactory dealings with the Bank for at least five years.

LOAN AMOUNT:

Up to 25% of the existing Fund based Working capital limits (depending on the
Credit Rating), subject to a minimum of Rs. 10 Lakhs and maximum of Rs. 250
Lakhs.

PERIOD:

Not exceeding 180 days – minimum 90 days

- 62 -
SECURITY:

 First charge / Equitable mortgage of fixed assets of the company / firm or

extension of existing first charge / equitable mortgage of fixed assets,
ensuring that there is a minimum asset cover of 1.50.
 Extension of Charge on current assets for the additional facility ensuring
that adequate drawing power is available.
 Extension of all existing guarantees of Directors / Third party guarantees
to cover the additional facility.

[Link] MEDIUM TERM LOANS

PURPOSE:

To augment enterprise‘s working capital gap and to help in improvement of

current ratio and also for meeting genuine business requirements. The facility will
also be available for repayment of secured and unsecured Loans of other banks
or institutions, but not for any purpose, which is not related to the enterprises
activity.

ENTERPRISES GROUP:

Small and Medium-sized corporate, business and trading houses (including

partnership firms).

ELIGIBILITY CRITERIA

 Satisfactory credit rating for the last three years

 Latest Balance Sheet etc. should be available.
 Satisfactory financial performance in terms of Sales/turnover and profits.
Negative variance, if any, should not be more than 10%.
 Debt-equity ratio should not be higher than 2.5:1 and average DSCR
should be not less than 1.75:1.

- 63 -
  Satisfactory dealings with the Bank for at least Three years.

LOAN AMOUNT:

Based Up to 25% of the existing fund Working capital limits (depending on the
Credit Rating), subject to a minimum of Rs. 25 Lakhs and maximum of Rs. 500
Lakhs.

PERIOD:

Not exceeding –36- months, to be repaid in equal quarterly or half-yearly

installments.

SECURITY: -

First charge / Equitable mortgage of fixed assets of the Company / firm or

extension of existing first charge/ equitable mortgage of fixed assets, ensuring
that there is a minimum asset cover of 1.50

11. SCHEME FOR FINANCING ENERGY EFFICIENCY PROJECTS

PURPOSE:

Financing SMEs for acquisition of equipments, services and adopting measures

for enhancement of energy efficiency/conservation of energy.

ELIGIBILITY

SME units financed by bank as also other units desirous of shifting their account
to Bank of Baroda.

LIMIT:

Up to 75% of the total project cost, subject to maximum of Rs. 1/- crore.
(Minimum amount of loan Rs. 5/- Lakhs).

- 64 -
PROJECT COST MAY INCLUDE THE FOLLOWING:

 Cost of acquisition/modification/renovation of equipment/software.

 Cost of alterations to existing machinery.
 Cost of structural / layout changes.
 Cost of energy audit/consultancy.
 Preparation of Detailed Project Report (DPR).
RATE OF INTEREST:

Bank‘s BPLR from time to time.

REPAYMENT:

Maximum 5 years, including moratorium, if any.

SECURITY:

 For Sole Banking Accounts: Extension of first charge on all fixed assets.
 For Consortium/Multiple Banking Accounts: first charge on equipments
acquired out of loan and collateral, if any, with the total security coverage
being not less than 1.25.
Grant from IREDA:

IRDEA, at present, gives a grant of Rs. 25,000/- for projects costing Rs. 1/- crore
or below to meet partial cost of Energy Audit. This grant is available for the first
100 projects (SME Sectors only) approved by them.

12. SCHEME FOR FINANCING EXISTING BORROWERS UNDER SME

SEGMENT FOR PURCHASE OF NEW VEHICLES

NATURE OF FACILITY:

Demand Loan / Term Loan

- 65 -
PURPOSE:

For acquiring any type of new vehicle eligible for Registration with Regional
Transport Authority.

LIMIT:

Maximum Rs. 50/- lacs.

ELIGIBILITY:

Proprietorship firms, Registered Partnership concerns, Private Limited

Companies, Limited Companies, Trusts, and Co-operative Societies (Except
individuals) under SME Segment with credit rating up to BOB-6.

MARGIN:

10 % of total cost of transport vehicle i.e. inclusive of initial insurance premium,

RTO Tax, Octroi, body building charges & other incidental charges in case of
new vehicle.

RATE OF INTEREST:

2.25% below BPLR with monthly rests, irrespective of credit rating.

NOTE: Though rate of interest is declined from credit rating, Credit Rating is to
be carried out for each account as per extant guidelines

PERIOD:

Maximum 60 months subject to review every year. The facility to be included in

the regular review proposal.

REPAYMENT OF TERM LOAN:

In 60 monthly installments depending upon the cash flow. Interest to be serviced

every month.

- 66 -
SME LOAN POLICY OF BANK OF BARODA

OBJECTIVES

The SME Loan Policy is framed with the following objectives:

 To improve flow of credit to SME Sector so as to doubles the credit to the

Sector in 5 years, i.e. by the year 2010.
 To formulate liberal norms of lending to SME sector, to ensure availability
of adequate and timely credit to the sector.
 To provide guidelines to the branches to dispense credit to SME Sector on
liberalized terms.
 To devise guidelines to the branches to dispense credit to SME credit
portfolio in a more focused manner.
 To comply with terms of policy package announced by Hon‘ble Union
Finance Minister on 10.08.2005 and further guidelines received from
Reserve Bank of India from time to time for implementation of the Policy
Package.

SCOPE OF POLICY

This Policy will form a part of Bank‘s Domestic Loan Policy and will cover
following:
 Composition of SME Sector—Micro, Small and Medium enterprises in
Manufacturing and Service areas.
 Broad guidelines on lending to SME Sector—regarding application norms,
time norms, submission of credit proposal, type of facilities, assessment of
requirement, margin, rate of interest, penal interest, credit rating, collateral
free loans, techno-economic viability study and financial analysis
 SME Loan Factory Model—includes credit and sales hub.
 Pricing Policy—as per the facility and amount demanded.

- 67 -
  Identifying Thrust Industries—includes
o IT & IT enabled services
o Drugs & Pharmaceuticals
o Auto components, Auto Ancillary units
o Food and Agro based industries
o Textile machineries
o Dyes & intermediates
o Engineering equipments
o Chemicals
o Defense equipments manufacturing Units

TYPES OF FACILITIES - SME Units may be granted a variety of credit facilities

for their different needs which will include the following:

(a) Term Loan / Demand loan / Deferred Payment Guarantee: For

acquisition of capital goods (including second hand), fixed assets,
vehicles, plant &machinery, purchase of land, construction of buildings
etc.
(b) Working Capital by way of Cash Credit, Overdraft etc for:

1. Purchase of raw material, components, stores, spares and maintenance of

stock of these items at minimum level and stock in process and finished goods.
2. Finance against receivables including receipted challans / invoices. 3. Meeting
marketing expenses where the units have to incur large-scale expenditure
towards marketing of their products.

(c) Bills Purchase / Discounting under L/c or outside L/c.

(d) Export Credit facilities like Packing Credit, FBP / UFBP.

(e) Letter of Credit

(f) Bank Guarantees

- 68 -
Research
Methodology

- 69 -
 Research Methodology
The Research part of the project included finding the factors that will stimulate
financing in micro and small enterprises and whether the approach of Bank of
Baroda is satisfactory.

The research work followed by the

1. Analysis of existing facilities i.e. various loans granted by Bank of Baroda

to the SME Companies particularly of Jaipur region.
2. Effective working of SME Loan Factory.
3. Recommendations for the requisite improvement in the lending criteria of
a SME Loan Factory.

Title of the Study

―Suggestions to stimulate financing under micro and small enterprises ―

RESEARCH OBJECTIVES

 To gauge the level of satisfaction of existing customers (who are enjoying

various loan facilities) of Bank of Baroda.
 To prepare a loan scheme for the SMEs.
 To suggest the ways and benefits of cluster approach of Banks in
Financing SMEs in India
 To give recommendations towards enhancements of lending and effective
working of SME Loan Factory.

- 70 -
RESEARCH TYPE

Exploratory Research: It has the goal of formulating problems more

precisely, clarifying concepts, gathering explanations, gaining insights and
eliminating impractical ideas.

SAMPLE SIZE

Existing Customers* of Bank of Baroda (15 in number).

*- Existing customers here means those who are enjoying various facilities of
Bank of Baroda till March 2011.

RESEARCH AREA

Manufacturer and / or Exporter organizations in Sitapura Industrial Area and

Bagru Industrial Area, Jaipur Region (Rajasthan).

SOURCES OF THE RESEARCH DATA

Primary Data : Questionnaire.

Secondary Data : Internet and Books.

- 71 -
Data Analysis And
Interpretation

- 72 -
 ANALYSIS OF THE RESEARCH

The following graphs with their elaboration will explain the analysis done to draw
conclusions out of the data generated with the help of questionnaire used for the
research purpose:

Fig. 1

20%

Private Ltd.
20% 60% Partnership
Proprietary

The Figure 1 represents the Ownership pattern of various Companies.

Out of the 15 Companies

 60 % are Private Ltd.

 20 % are Partnership.
 20 % are Proprietary.

This reveals that larger part of the Organizations includes Private Limited.
Partnership and Proprietary Companies hold equal portions in SME.

- 73 -
 Fig. 2

0%
0% 0%

Public Banks
Private Banks
Cooperative Banks
Regional Banks

100%

The Figure 2 represents the Categories of Banks which are approached for
loans and advances. Here, we can see that all the Organizations approached for
Public Sector Banks.

This reveals that facilities provided by Public Sector Banks for SMEs are
comparatively good and Organizations belief on Public Sector banks. Other
banks should also make efforts to contribute in the growth of SME sector.

- 74 -
 Fig. 3

Awareness in the customers regarding schemes

provided by the Bank

27%

Yes
No
73%

The Figure 3 represents the number of the existing clients out of the sample size
15 that whether they are aware of the loans and advances schemes given by the
Bank of Baroda to the SMEs.

Out of 15 Clients, only 27 % are aware of the schemes provided by the Bank.
Rest 73 % is unaware about all the loans and advances schemes given by the
Bank to the SMEs.

- 75 -
 Fig. 4

Limit of the credit taken by the customers

0%

13.33% 20%
upto 25 lakhs
20% 25 lakhs - 1 crore
1 crore-5 crores
46.67% 5 crores - 10 crores
above 10 crores

The figure 4 indicates the Limit of the Credit taken by the existing customers.

This reveals that mostly customers have taken loan in the Rs. 1 crore and 5
Crores range that is 47 %. There are equal number of customers who have taken
loan in the range of 25 lacs to 1 crore and 5 crores to 10 cores.

Only 13 % have taken loan more than 10 crores that is only 2 customers out of
15 have taken loan which is above 10 Crores.

- 76 -
 Fig. 5

In Future, whether the customers will opt for Bank of

Baroda for Loans and Advances

13%

27% yes
60% Not thinked yet
No

This figure represents the number of customers that will opt for bank of Baroda if
in future; they will have a loan requirement.

Out of the total sample size, 60 % will opt for Bank of Baroda. 27 % have not
thinked yet. And 13 % will never opt for Bank of Baroda for their loan
requirement.

- 77 -
 Fig. 6

Customers having accounts in other Banks

40%

Yes
60%
No

This Figure indicates the percentage of customers who have accounts in other
Banks.

40 % of the customers have account in other Banks while 60 % do not have

account in the Bank other than Bank of Baroda.

- 78 -
 Fig. 7

Key factors that motivated the Customers to take Loan

from Bank of Baroda

13%
long term business
relations
Near Branch
87%

This figure shows that 87 % Customer‘s motivation is long term business

relations while the remaining 13 % customers took loan from Bank of Baroda
because it is the nearby Branch to their Organization.

The bifurcation on the basis of these key factors shows that yet the Bank has to
do a lot in the same direction so that the motivation level of the existing
customers can be increased and it can motivate to the new customer to take loan
willingly from the Bank of Baroda.

- 79 -
 Fig. 8

Whether Bank of Baroda’s products are sufficient or not

26%

yes
no
74%

This figure shows that the 74 % of the customers are satisfied with the Bank‘s
Products and they feel that the products are sufficient to the SME sector. While
26 % customers feel that SME products provided by the Bank is in-sufficient.

- 80 -
 Fig. 9

Services provided by the Bank

0%
6.50%
6.50%

40% Very Satisfied

Satisfied
Neutral
Dis-satisfied
47%
very Dis-satisfied

This figure represents the level of satisfaction regarding the services provided by
the Bank among the existing Customers.

40 % of the customers are highly satisfied by the services of Bank. Near about 7
% customers are neutral and 7 % are dis-satisfied with the services of the Bank.

So the Bank should concentrate on increasing the level of satisfaction among the
customers.

- 81 -
 FINDINGS OF THE RESEARCH

 We have surveyed the two industrial areas in Jaipur i.e. Sitapura and
Bagru Industrial Area. It is seen that most of the Industries in Sitapura
area are dealing in Garment as it is declared as non-pollution area and in
Bagru area, the Industries are dealing mainly in the production of Iron and
steel bars, rods etc.
 There is little bit support provided by the government/banks to the
Industries.
 All the firms expect low rate of Interest loans from the Banks.
 Most of the firms want that the Government should provide various
subsidies and rebates.
 Cash Credit, Term Loan, Bank Guarantee and Letter of Credit are the
most demanded facilities in the Industry.
 There is lack of motivation among customers to take loan from Bank of
Baroda.
 Most of the customers are not aware of the Bank‘s new schemes.
 There is a lot of scope seen in the nearby future of SMEs.

- 82 -
 SUGGESTIONS
To improve the flow of credit to MSE sector and to achieve the various targets
and commitment for the MSE sector, the bank should adopt the following
strategies:

1. The SMEs should need more and more awareness of the facilities
provided the Government and the Banks.

2. The Bank should invest in Customer Relationship Management in which

the following actions can be taken :

a) Bank should provide or give information (related to a particular concern

for e.g. information of sanction, disbursement, letters that bank posts
etc.) to the party through direct calls.
b) Bank should send greetings or gifts or sweets to its all customers on
various occasions.
c) Timely processing should be there i.e. if Bank says that we will
sanction a proposal within 15 days, then it should be done in the given
time.
d) Bank should fulfill all its promises given to the customers.
e) Bank rules should be clear related to the different charges and
concessions. It helps in long-term customer relationship.

Through above-mentioned points, the Bank can increase customer satisfaction

as well as the motivation level of customers and eventually it will attract the other
concerns also.

3. Banks should increase the staff.

- 83 -
4. Services should be made easy for the convenience of the customers.

5. Sanction of loan is very time-taking process so it should be made easier

and shorter so that less time is involved.

6. If a proposal does not satisfy all the rules and regulations, the Bank should
give suggestions to the customer that how he can fulfill these conditions. It
will build good brand image of the Bank.

7. Government should give benefits in various subsidies and rebates.

8. The bank should increase the number of personnel in the SME

Department so that the complaints of the clients of delaying the
sanctioning of proposal can be listened and solved properly.

9. There should be one IT personnel in each department which will help in

the work process and problem.

10. There should be less time duration for the documentation work done for
the customers who are applying for loan.

11. The bank should find out the key problem areas where the development of
SME is lacking.

12. Adequate marketing contacts & reach should be managed.

13. Simplified loan application forms in bilingual formats should be made

available for loans to Micro Enterprises.

14. Region wise and branch wise targets should be fixed for lending to MSE
sector and monthly review notes on Region wise performance should be
placed to Top Management.

- 84 -
15. SME branches and specialized SME branches should be opened at
potential centers, identified clusters and industrial estates to enhance the
flow of credit to MSE sector. The reason behind this is that distances
create problems to the customers.

16. Latest technology should be adopted for on line submission of MSE credit
applications, tracking of applications and for MIS requirements.

17. New credit products should be developed for MSE sector to meet the
emerging requirements of the sector from time to time.

18. Bank should improve the ability of R & D and innovations.

19. Financial Institutions should strengthen the willingness to extend credit to

SME and emerging industries.

20. Bank should wisely utilize SME credit products in line with government
policies.

21. There should be system software which automatically checks the CMA
Data.

22. Bank requires a strong anti-virus in every system.

23. Bank should introduce new and advance technology in systems because
system is working at MS 2003.

24. System speed and net connection speed is also very slow. So Bank
should work in this area as there is a requirement of fast working net
connection and system.

- 85 -
25. There should be more space in the SME Loan Factory for the proper
sitting arrangements for the customers.

LIMITATIONS OF THE RESEARCH

 Sample size was considerably small in size.

 Sample comprised of existing customers of Bank of Baroda only.
 Lack of interaction with Proprietors / Directors of the Manufacturing
concern due to non-co-operation of the company management.
 Customers of bank of Baroda (particularly of Jaipur region) are situated in
far-flung areas that are why approach to all was a cumbersome task.
(Therefore only Bagru Industrial area and Sitapura were the research
areas).

- 86 -
 CONCLUSION OF THE SECTOR

Opportunities in the MSMEs are enormous due to the following factors

 Less Capital Intensive

 Extensive Promotion & Support by Government

 Reservation for Exclusive Manufacture by small scale sector & Project

Profiles

 Funding - Finance & Subsidies

 Machinery & Raw Material Procurement

 Manpower Training & Technical & Managerial skills

 Tooling & Testing support

 Reservation for Exclusive Purchase by Government

 Growth in demand in the domestic market size due to overall economic

growth

 Increasing Export Potential for Indian products & export promotion

By its less capital intensive and high labor absorption nature, SSI sector has
made significant contributions to employment generation and also to rural
industrialization. This sector is ideally suited to build on the strengths of our
traditional skills and knowledge, by infusion of technologies, capital and
innovative marketing practices. This is the opportune time to set up projects in
the small-scale sector. It may be said that the outlook is positive, indeed
promising, given some safeguards. However, the bug bear of the sector has

- 87 -
been the inadequacies in capital, technology and marketing. The process of
liberalization will therefore, attract the infusion of just these things in the sector.

― TO THE ORGANIZATION‖
 Access to the field areas which full-time sales officers are unable to tap
due to lack of time.
 Preparation of the new scheme and making aware customers about all the
facilities of Bank of Baroda will be helpful for the bank.
 Although Bank is growing at a very fast pace, but still lack at some points
regarding awareness and motivation among the new customers. So they
should work in the concerned area.

― TO THE INTERN‖
 The summer internship gives a rendezvous with the corporate world,
which prepares the intern to be a full-time member of it.
 This is a simulation process , which prepares the intern to handle the real
life business situations.
 Last but not the least, it enhances knowledge related to the SME Loan
Factory.

- 88 -
Learning during
the Training

- 89 -
HOW SME-LF WORKS?

- 90 -
 Credit support officer Sanction authority
Credit officer

1. 2.
Check on completeness
of proposal
Receipt of proposal

3. Returned to
On complete Proposal On Incomplete
BO/ Party for
Proposal
Study of file, pre- Completion
sanction visit, raising
customer queries and
customer meeting Credit officer Sanction authority

File with Ratios 4.

Sending Queries to the

party and the Branch

5.
Data entry for credit
rating and financial
analysis
6.

Request for advocate,

7. valuer and TEV reports

(Where required)
Satisfactory response
from customer of
queries and
preparation of
Appraisal Note
- 91 -
8.
9.
Receipt of Check on
advocate, valuers advocate, valuers
and TEV reports and TEV reports
(where required)

11
.. Issue of final
sanction letter with
10
signature from
.
credit officer
Final sanction by
sanction
authority

Workflow for
12 sanction and
. Preparation and disbursement
stampings of process
documents

13 14
.
Execution of Sanctioned & vetted
documents in Document released for
presence of Branch Disbursement by disbursement
Officer/ Manager
Branch

- 92 -
STUDY OF CREDIT MONITORING APPRAISAL (CMA)

There is a particular format to represent the various direct & indirect expenses,
profit, various assets & liabilities, capital etc. for the parties who wants to get
loans from the bank, is known as CMA.

In the CMA a party gives its brief detail of operating expenses, profit & loss
account, balance sheet items etc. that shows the complete picture of financial
position of the party in concern.

In the study of credit monitoring appraisal the financial position is analyzed. Its
study gives the knowledge of how should company represents all its financial
affairs.

If the information is available in the general form, it can be filled in the standard
format known as CMA. Therefore in CMA study, the preparation of it is also
included.

CIBIL

CIBIL is the CREDIT INFORMATION BUREAU (INDIA) LIMITED. It is India‘s

first credit information bureau – is a repository of information, which contains the
credit history of commercial and consumers borrowers. CIBIL provides this
information to its members in the form of credit information reports. Its official
website is [Link] Banks, Financial Institutions, State Financial
Corporations, Non-Banking Financial Companies, Housing Finance Companies
and Credit Card Companies are the members of CIBIL. These members are
provided with a user Id and Password for accessing it. Bank of Baroda has 5 %
stake in CIBIL. From this site, a CIBIL Information Report is created which is a
factual record of a borrower‘s credit payment history compiled from information
received from different credit grantors. Its purpose is to help credit grantors make
informed lending decisions – quickly and objectively.

- 93 -
A CIBIL report shows history of various accounts of the borrower. All should be
standard. And no account should be sub- standard, settled, written-off or
overdue.

ECGC:

ECGC is Export Guarantee Corporation of India Limited. It was established in the

year 1957 by the Government of India to strengthen the export promotion drive
by covering the risk of exporting on credit. A username and password is given to
all Banks to access it. It is the fifth largest credit insurer of the world in terms of
coverage of national exports.

ECGC provides a credit risk insurance covers to exporters against loss in export
of goods and services and offers guarantees to banks and financial institutions to
enable exporters to obtain better facilities from them.

Banks are concerned about the financial strength and the performance of the
borrowers. It is necessary that all borrowers are of good credit risk and there
should not be any shadow of doubt about the safety of the funds lent. The
investigation process carried out by the Bank for taking a credit decision is called
"credit analysis". The main source of information for judging the viability and
financial strength of operations of the borrower, are financial statements which
consist of two parts, viz. Balance Sheet and Profit & Loss Account and these
should be studied together for a meaningful analysis. The system or approach for
analyzing a balance sheet depends upon the purpose for which the study is
undertaken. Our purpose of analyzing the financial statements is different from
that of an investor, government authority etc.

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CREDIT ANALYSIS

While analyzing a credit proposal, several factors, apart from analysis of

statements, are taken into account. The process of credit analysis can broadly be
divided into the following major heads :

(a) Promoters and their business background

(b) Nature of the industry/business

(c) Factors of production

(d) Past financial record, present position and future profitability

(e) Financial Planning

(f) Borrower's integrity

(g) Purpose of advance

(h) Repayment program

(i) Security and other terms and conditions

(j) Associate concerns, if any, and their performance

(k) Promoters'/Borrowers' dealings with our Bank and other banks, where
applicable

The entire gamut of credit appraisal can be segregated into 7 sections is under:

Borrower appraisal
Man behind the project should be very competent and banker would willingly

Grant a credit facility to a borrower, if he has sufficient confidence in the borrower

That it will not be necessary to seek the help of a court for its recovery.

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 5 C’s of the borrower -

 Character—integrity of the borrower and his intention to repay. Character

is constituted by honesty, sobriety, good habits, personality, the ability and
willingness to keep his word under all circumstances, reputation of the
people with whom he deals etc.
 Capacity--- ability of the borrower to manage an enterprise or venture
successfully with the resources available to him.
 Capital:--ability to meet the loss, if borrower has some stake in the
business, he may not take much interest in its success.
 Collateral
 Conditions

For this Banks are following the KYC (Know your customer) norms, which
include:

 Customer identification
 Customer verification
 Document verification
 Credit report on borrowers
 Application form
 Borrower‘s past dealing with the branch
 Reports from persons having dealing with the borrower
 Reports from the guarantors
 Reputation in the line of trade in which he is engaged in
 Reputation in the society, community
 Credit information from other banks and financial institutions
 Credit information from RBI

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 Technical Appraisal:
 Availability of basic infrastructure:-Land, Location, Power, Water
 Licensing/ Registration Requirements
 Selection of technology: availability, application, Plant size and
production capacity, availability of skilled technical personnel/
training facility, continuous updating, availability of suitable raw
material and consumables

Management Appraisal
Individuals, proprietary concerns, partnership firms, corporate borrower

Financial Appraisal
Refers to the study of the following:

 Determination of the cost of the project.

 Assessment of the source of funds/means of financing the project
 Break even analysis
 Profit & Loss statement and balance sheet of last 3 years
 Cash flow projections
 Projected balance sheet
 Ratio Analysis

Economical analysis
Project should yield best possible return to the society in general and the
investor in particular.

Sensitivity analysis—the process of computing the IRR and the repaying

capacity of the borrower for different values of each of these parameters is called
the sensitivity analysis.

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 Market Appraisal
 General market prospects for the product
 Position of the product vis-à-vis the competitors
 Size of the market and share of the proposed unit.
 Pricing structure
 Raw material
 Marketing strategy thrust

Financial Ratios for Credit Appraisal (Not applicable in case of takeover of

accounts)

Following ratios can be accepted for granting credit facilities to SME units
falling as per regulatory guidelines or SMSs as per expanded coverage.

Sr. Ratio Norms

no
Micro and Small Medium Units covered
Enterprises Enterprises under SME
under under Sector as per
manufacturing manufacturing expanded
sector and sector and definition and
service sector service sector outside the
falling under falling under purview of
regulatory regulatory regulatory
guidelines guidelines definition
1 Current Ratio 1.17 & above 1.20 & above 1.33 & above
2 Debt Equity Ratio 3:1 3:1 3:1
( Total Term
Liability /
Tangible Net

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 Worth)
3 FACR (Fixed Not below 1.25 Not below 1.25 Not below1.25
Assets / Term
Debts)
4 Average DSCR 1.75 with a 1.75 with a 1.75 with a
for Term Loan condition that in condition that in condition that in
any one year it any one year it any one year it
should not be should not be should not be
below 1.25 as below 1.25 below 1.25
per extant
guidelines.

The above ratios are indicative and deviations can be considered by the
sanctioning authority / competent authority on case-to-case basis, depending on
industry specific problems of unit etc. incorporating justification for the same in
the sanction note.

CREDIT RATING

The exercise of assessing the credit record, integrity and capability of a

prospective borrower to meet debt obligations. Credit rating relates to
companies, individuals and even countries. The rating agencies in India are
Credit Rating and Information Services of India Limited (CRISIL), ICRA, and
Credit Analysis and Research (CARE).

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CRISIL RATING MODELS

Eleven models for Credit Risk rating of all commercial advances i.e. existing as
well as new with exposure of Rs.25 lacs and above (FB+NFB) for implementation
have been introduced by our Bank.

New CRISIL Rating Models for commercial advances are based on two-
dimensional rating methodology specified under Basel II Accord requirements.

Eleven Models are applicable to Large Corporate, SME (Manufacturing Sector),

SME (Services), Traders, Banks, NBFCs, Brokers, Infrastructure (Power),
Infrastructure (Roads & Bridge), Infrastructure (Ports) and Infrastructure
(Telecom)

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The risk rating flow chart under CRISIL NEW rating models is as under:

Composite Rating

(Indicator of expected
loss i.e. EL)

Obligor (Borrower) Rating Facility Risk Rating (indicator

of Loss given default i.e. LGD)
(Indicator of Probability of
Default i.e. PD) Evaluation of Riskiness of a
Facility
Evaluation of Credit
worthiness of an Obligor
(Borrower).

Obligor (Borrower) Rating Project Risk Rating

1. Industry Risk 1. Project Implementation

2. Business Risk 2. Post Implementation

3. Financial Risk
9Borrower
4. Management Risk

Project Implementation Risk Post Project Implementation

1. Construction Risk 1. Industry Risk

2. Funding Risk 2. Business Risk

3. Financial Risk

4. Management Risk

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These Models involves three types of ratings

1. Obligor (Borrower) Rating

2. Facility Rating

3. Composite Rating

Obligor (Borrower) Rating is indicative of credit worthiness of an obligor or the

Probability of Default (PD) and it is based on the assessment of past and
projected Cash flows of the company.

For assessment of an obligor, the rating structure consists of evaluation by way

of four models viz.

1. Industry Risk – The assessment of this module which is external to borrower

and is done by assessment of industry related macroeconomic parameters like
demand supply gap / capacity utilization level / financial ratios like ROCE / OPM
etc. applicable to the specific industry and having different risk weights.

2. Business Risk – The assessment of this module is based on internal working

of the Borrower and relates to parameters such as after sales service, distribution
set up, capacity utilization etc. The parameters, which are only relevant to a
particular industry, are selected for scoring having different risk weights.

3. Financial Risk – The assessment of this module is based on internal working

of the Borrower and relates to parameters such as past (not in case of a green
field/infrastructure company under implementation stage) and projected
financials. The CMA based data input sheet is uploaded into the software and the
same allows computation of financial rating automatically based on the
computation of financial ratios like Net Profit Margin, Current Ratio, DSCR,
Interest Coverage etc.

102
4. Management Quality – The assessment of this module is based on internal
working of the Borrower‘s management and relates to parameters such as past
repayment record, quality of information submitted, group support, etc.

Obligor rating grades range from BOB 1 to BOB 10. Obligor grade is used for
deciding about the investment grade or non-investment grade borrower in
absolute terms.

Grade no. Nature of grades Description

I. BOB-1 Investment grade- highest safety

II. BOB-2 Investment grade- high safety

III. BOB-3 Investment grade- high safety

IV. BOB-4 Investment grade- adequate safety

V. BOB-5 Investment grade- moderate

safety

VI. BOB-6 Investment grade- moderate

safety

VII. BOB-7 Sub Investment grade- inadequate

safety

VIII. BOB-8 Sub Investment grade-high risk

IX. BOB-9 Default substantial risk

X. BOB-10 default

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Facility Rating is carried out for each and every facility separately which is
based on the Basel approach for the calculation of Loss Given Default (LGD).

Facility rating grade ranges from FR 1 to FR 8 with least risky to highest risky
advances facility in that order.

Grade no. Nature of Description

grade

1. FR-1 Highest-safety

2. FR-2 Higher-safety

3. FR-3 High-safety

4. FR-4 Adequate-safety

5. FR-5 Reasonable-safety

6. FR-6 Moderate-safety

7. FR-7 Low-safety

8. FR-8 Lowest-safety

Composite Rating is the matrix or the combination of PD and LGD and indicates
the Expected Loss (EL)in case the facility is defaulted. The composite rating is
worked out automatically by software based on the matrix of Obligor (Borrower)
Grade (BOB Rating) and Facility Rating Grade (FR Rating).

Composite rating grade ranges from CR 1 to CR 10. Bank has accepted BOB
6 as the cut off point for the acceptance of an obligor based on obligor rating
carried out as the applicable model Scoring Models for Educational Loan, Baroda
Traders‘ Loan have also been approved by the Board rolled out for

104
implementation. Efforts are being made to have scoring model for all retail
products keeping in view Basel II Accord.

Grade no. Nature of Definition

grade

1. CR-1 Minimum expected loss

2. CR-2 Lower expected grade

3. CR-3 Low expected grade

4. CR-4 Reasonable expected

grade

5. CR-5 Adequate expected loss

6. CR-6 Moderate expected loss

7. CR-7 Extra expected loss

8. CR-8 High probability of loss

9. CR-9 Higher probability of

loss

10. CR-10 Highest expected loss

Proposal from the new borrowers (i.e. borrowers approaching Bank for the first
time) may be entertained with minimum rating category of ―Moderate Safety‖
‗BOB-6‘ (CRISIL Rating Model) fresh / increase facilities to the existing borrower
having credit rating below ―BOB-6‖ to be considered on merits by sanctioning
authority up to 75% of normal lending powers as stated above.

105
WORKING CAPITAL ASSESSMENT

DEFINITION

A firm's working capital is the money it has available to meet current obligations
(those due in less than a year) and to acquire earning assets.

Or

Working Capital is the amount required in different forms at successive stages

of operation during the net operating cycle period of an enterprise.

Concept of Working Capital

Balance Sheet Concept Operating Cycle Concept

Gross Working Capital Net Working Capital

Total Current Assets Current Assets- Current Liabilities

106
WORKING CAPITAL GAP

Difference between gross working capital and current liabilities excluding bank-

Borrowing is known as working capital gap.

Working Capital Gap = Gross Working Capital – Current liabilities*

*Current liabilities excluding Bank borrowings.

ARGUMENT IN FAVOUR OF WORKING CAPITAL Positive Net Working

Capital is an indicator of the financial soundness and the ability to face
depression and contingencies firmly by an enterprise. Positive Net Working
Capital provides better margin of protection to short-term creditors and investors.

APPRAISAL OF BANK FINANCE

The appraisal of bank finance for working capital thus involves the following
steps:

 Estimation of the level of Gross Working Capital

 Estimation of the level of Current Liabilities
 Computation of Net Working Capital Gap
 Computing the share of NWC gap required to be brought by the borrower
as margin
 Computation of the level of Bank Finance.

107
ESTIMATING WORKING CAPITAL REQUIREMENT

Following methods are generally used in estimating working capital for the future
period:

1. Operating Cycle Method: To estimate the gross working capital

requirements, the understanding of the operating cycle of
manufacture/production is very important:

CREDIT SALES

DEBTORS CASH

FINISHED GOODS
CASH SALES

RAW MATERIAL WORK IN PROCESS

Flow chart: Operating cycle of a manufacturing/production concern

COMPONENTS OF GROSS WORKING CAPITAL

1. Raw material
2. Consumable stores and spares
3. Stock in process
4. Finished goods
5. Receivables
6. Cash and Bank of Baroda balance
7. Other Current Assets

108
2. Tondon or chore committee recommendations

(Maximum Permissible Bank Finance system)

CURRENT LIABILITIES CURRENT ASSETS

Creditors for purchase Raw materials

Other Current Liabilities Stock-in-process

Total Current liabilities other Finished Goods

than Bank Borrowings

Bank borrowings including bills Receivables including bills

discounted with bankers
Discounted with bankers

Other Current Assets

Total Current Liabilities Total Current Assets

I Method II Method

Total Current Assets Total Current Assets

Less: Current Liabilities other than Bank Less: 25% of current assets
of Baroda borrowings

Working capital Gap Working capital Gap

Less: 25% of working capital gap Less: current liabilities other than
Bank borrowings

Maximum Permissible Bank finance Maximum Permissible Bank

finance

109
3. NAYAK COMMITTEE RECOMMENDATIONS FOR SSI INDUSTRIES

The method originally proposed for SSI borrowers and later made applicable for
all borrowers with Fund based working capital limits up to Rs.5 crore, the
computation is made at 20% of projected gross sales as follows:

Gross working capital minimum of 25% of projected gross sales

Borrower‘s margin 20% of gross working capital

4. CASH BUDGET METHOD

The method applicable for the assessment of working capital finance more than
Rs.1000 lac from the banking system for all types of borrowers. As in SME only
proposals upto 1000 lacs are considered thus this method does not apply over
here.

PRELIMINARY STUDY OF TWO PROPOSALS

Proposal is a request in the form of documents made by the party/ organization/

individual to get the requisite loan from the bank.

In the preliminary study an officer confirms that the documents are complete or
not and whether it fulfills the required rules and regulations. It also includes the
detail study of financial position and the validity of documents

110
PREPARING A QUERRY LETTER

In the case of any problem or query related to the proposal the officer who is
studying it prepare a letter to the branch manager or directly to the party to
collect the required information, known as query letter.

111
 SUMMARY
Reading texts and scoring high doesn‘t hold a higher position in the professional
courses, they stand equally on the platform with the ability to apply these texts in
the field work and perform.

―Summer Training‖ is the most vital part in professional courses like MBA as it
not only gives an understanding of the corporate world & its functioning but also
Grooms and matures an individual. This contribution of summer training prepares
a student to step out in the corporate world and start performing in the minimum
possible time.

I personally feel more confident now, with clear understanding and enlarged
horizon towards the work culture of the Indian corporate sector. It also gives me
a sense of immense pleasure to have done my Internship whole heartedly,
contributing the level best and learning not only about the functional aspect of the
work profile of the internship program but also about team- building, superior
subordinate relationship, crisis management, co-operation and co-ordination,
formal and informal groups, etc.

Given a thought today to the almost two months spent as a trainee in Bank of
Baroda, makes me realize that it was all applicably of the teachings and
guidance of the faculty members of my college ( International School of
Informatics &Management ) & all other teachers in my life.

Bank of Baroda‘s priorities and strategies for supporting MSMEs are relevant and
effective.

This is not a conclusion of the experience I had during the course of internship
but it‘s a beginning of a never ending process of learning while performing whole
heartedly.

112
 BIBLIOGRAPHY
BOOKS REFERRED

Instruction Booklet no. 5, Bank of Baroda.

Bank‘s Circulars related to the SME Loan Factory

Bank‘s Domestic loan Policy

Kothari, C.R., 2004, Research Methodology, New Delhi, New Age International
(P) Limited, Publishers.

NEWSPAPER REFERRED

Economic Times

Times of India

WEBSITES REFERRED

[Link]

[Link]

[Link]

[Link]

[Link]/download/sme-policy

[Link]/sme/NEWS/02272009_SBI%20to%20restructure%2041,000%2
0SME%20accounts%20by%20March%[Link]

113
 QUESTIONNAIRE
Name of the Organization:

Address:

Representative:

Designation:

Email id:

Contact No. :

Activity / Deals in:

Ownership pattern of the Company:

1. Proprietary
2. Partnership
3. Private Ltd.
4. Public Ltd.

Which category of bank you approach for loans and advances?

1. Private Banks
2. Public Sector Banks
3. Cooperative Banks
4. Regional Banks

114
Are you aware of the loans and advances schemes given by the Bank to
SMEs?

1. Yes
2. No

What is the limit of Credit you want or you have taken?

1. Upto Rs. 25 lakh

2. Rs. 25 lakh to Rs. 1 Crore
3. Rs. 1 Crore to Rs. 5 Crores
4. Rs. 5 Crores to Rs 10 Crores
5. Above rs. 10 Crores

In future, if you have loan requirement, will you opt for Bank of Baroda?

1. Yes
2. Not Thinked yet
3. No

Give reasons, why not?

______________________________________________________________________

Do you have account in other Banks also?

1. Yes
2. No

115
Availability of funds from financial institutes / Banks (loan facilities)

1. Very easy
2. Easy
3. Module
4. Difficult
5. Very difficult

Do you think that Indian SME s globally Competitive?

1. Yes
2. No

Is the Bank of Baroda’s SME Products sufficient to make Indian SME

globally Competitive?

1. Yes
2. No

Please mark your opinion about the services provided by the Bank of
Baroda

1. Very satisfied
2. Satisfied
3. Neutral
4. Dis-satisfied
5. Very Dis-satisfied

116
Are you satisfied with the working of the SME Department of Bank of
Baroda?

1. Yes
2. no

What are the key factors that motivated you to take loan from Bank of
Baroda?

________________________________________________________________

Any suggestions to stimulate financing?

________________________________________________________________
________________________________________________________________

Filled by …………………………………….

Designation …………………………………….

Signature …………………………………….

Contact no. …………………………………….

117