A Report of Standard Chartered

A Report on Small & Medium Enterprise Financing
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2
SUMMER TRAINING PROGRAM

THE REPORT
ON
SMALL & MEDIUM ENTERPRISE FINANCING
BY
GOPAL C HANDRA SAHA
(ROLL NO. 17/MBA/Finance)
REPORT SUBMITTED IN THE PARTIAL FULLFILMENT OF

THE REQUIRMENT OF MBA PROGRAM
DSMS BUSINESS SCHOOL

WEST BENGAL UNIVERSITY OF TECHNOLOGY
PROF. DR. D. P. SAMANTA

(Principal, D.S.M.S. B’ School)
COMPANY GUIDE FACULTY GUIDE
MR. AVISEK DAS (Relationship Manager) PROF. PARTHA CHATTERJEE

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Student’s Declaration
I hereby declare that the project report entitled “Small and Medium
Enterprise Financing” submitted in partial fulfillment of the
requirements for the Degree of Masters of Business Administration
in Finance to DSMS BUSINESS SCHOOL, DURGAPUR. (West Bengal
University of technology, West Bengal India,) is my original work and
not submitted for the award of any other degree, diploma, fellowship,
or any other similar title or prizes.
Place: Durgapur (Gopal Chandra Saha)
Date: Reg. No. 092510710021
Roll No. 09251009040

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A project report
By
Gopal Chandra Saha
On
“SMALL & MEDIUM ENTERPRISE FINANCING”
Is approved and is acceptable in quality and form
---------------------------------- ----------------------------------------------
(Internal Examiner) (External Examiner)
Name: Name:
Qualification: Qualification:
Designation: Designation:
5
This is to certify that the project report entitled
“SMALL & MEDIUM ENTERPRISE FINANCING”

Submitted in partial fulfillment of the requirements for the Degree
Of
“Masters of Business Administration”
From
“DSMS Business School”
Gopal Chandra Saha
Registration No. 092510710021
Roll no. 09251009040
Master of Business Administration (MBA)
Has worked under my supervision and guidance and that no part of this report has been
submitted for the awarded of any other degree, Diploma, Fellowship or other similar titles
or prizes and that the work has not been published in any journal or Magazine.
Certified
Guide’s name:
Qualification:
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ACKNOWLEDGEMENT
The report bears the imprint of many people and without their support it
would not have existed.
First of all I would like to express my sincere in-debtless and profound sense
of gratitude to MR. Avisek Das, Relationship Manager of Standard
Chartered Bank, Siliguri Branch, whose continuous support in all manners
had made me capable to complete this project.
I acknowledge greatest thanks to Standard Chartered Bank for providing
me the opportunity to gain the practical knowledge by working in the
organization.
I acknowledge my deepest thanks to my project guide Prof. Partha

Chatterjee, DSMS B-School for all his care and encouraging words and
giving suggestion at the crucial stages of the project.
I am also grateful to my Parents and my friends, my brother for their

encouragement.
Thank you
Gopal Chandra Saha
Roll No. 09251009040

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S.NO. HEADING AND SUB HEADINGS PAGE

NO.
A Acknowledgement 6
1 Introduction 8
2 Main Text 10
2.1 Definition of SME in India and World 10
2.2 SME’s in India 12
2.3 Challenge faced by SME’s 14
2.4 Risk Faced by SME’s unit 14
2.5 The causes of sickness of SME industries 15
2.6 Government’s promotional policy and 16
support network
2.7 Financial needs of SME 17
2.8 Financial requirement of SME 18
2.9 About Standard Chartered 21
3 Analysis of SME Exposure 28

3.1 SME exposure of Standard Chartered 31
3.2 Financial Policy at Standard Chartered 32
3.3 Preparation of Credit Monitoring 33
Arrangement
3.4 Methods of Calculating Working Capital 36
Requirement
Process of Sanctioning of loan
4 Top Five Players in Siliguri Market (Segment 41

wise)
4.1 Questionnaire 66
4.2 List of SMEs Visited 69
5 References 73
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1. INTRODUCTION
Small and medium sized enterprises (SMEs) are one of the

principal driving forces in economic development. They stimulate
private ownership and entrepreneurial skills, they are flexible and
can adapt quickly to changing market demand and supply situations,
they generate employment, help diversify economic activity and
make a significant contribution to exports and trade.
In India, small and medium industries play a vital role in the

growth of the economy. Small industries have a 40% share in
industrial output, producing over 8000 value-added products. They
contribute nearly 35% in direct export and 45% in the overall
export from the country. They are one of the biggest employment-
providing sectors after agriculture, providing employment to 28.28
million people.
SMEs are a reservoir for the creation of jobs and a source of

diversity in the industrial fabric. At the same time, SME weaknesses
in terms of finance, human resources and commercial contacts are a
source of concern. Depending on the country, SMEs often suffer
from both financing difficulties, at least in certain critical stages of
their development, and structural weaknesses in their management
capacity.
Credit is a critical input for the SME Sector. Provision of timely

and adequate finance to SME Sector is central to the banking policy.
Nationalization of major banks in 1969 signaled the need for
redefining lending priorities and it was mandated that 40 per cent of
loan should be for what is called priority sector which includes
agriculture, SME and individual service and business sectors. There
has been a steady increase in the flow of credit to SME Sector which
has gone up considerably from Rs.48, 400 crore in 2001 to Rs. 1, 04,
900 crore in 2007.
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SMEs developed in a manner, which made it possible for them to

achieve the following objectives:
• High contribution to domestic production
• Significant export earnings
• Low investment requirements
• Operational flexibility
• Location wise mobility
• Lowering cost of production
• Generation of employment
• Attaining lower gestation period
As a result of globalization and liberalization, coupled with WTO

regime, Indian SMEs have been passing through a transitional
period. With slowing down of economy in India and abroad,
particularly USA and European Union and enhanced competition
from China and a few low cost centers of production from abroad
many units have been facing a tough time.
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2. MAIN TEXT
2.1 DEFINITION OF SMES IN INDIA AND WORLD
There is no universal definition of small and medium

enterprises. In some countries, there are certain objective
standards, which classify the units as micro, small or medium
enterprises depending on the number of employees. In some other
countries, annual turnover of the company determines the size of an
enterprise. The concept of size is also a relative phenomenon with
reference to the local economies, since a large company in a small
country could possibly be considered as a small company in a larger
country.
The Micro, Small and Medium Enterprises Development Act,

2006 has come into force on 02.10.2006. Under the Act, the SMEs
category in India comprises: (A) Micro Enterprises (B) Small
Enterprises (C) Medium Enterprises The criteria fixed for
identification are tabulated below for easy reference:
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Table 1: Investment Limits of SME's
Classification Investment in Plant and Investment in

Machinery Equipments
(For Manufacturing (For Service
Enterprises) sector
Enterprises)
Micro Investment in Plant and Machinery Investment in

Enterprises ceiling up to Rs.25Lakhs Equipments ceiling
up to Rs. 10 Lakhs
Small Enterprises Investment in Plant and Machinery Investment in

above Rs. 25 Lakhs but up to ceiling Equipment Above
of Rs.500Lakhs Rs. 10 Lakhs but up
to ceiling of Rs. 200
Lakhs
Medium Investment in Plant and Machinery Investment in

Enterprises above Rs.500 Lakhs but up to ceiling Equipment above
of Rs.1000 Lakhs Rs.200 Lakhs but up
to ceiling of Rs. 500
Lakhs
Internationally, SME is categorized with no subtypes. The

Ganguly Committee has recommended that on India, THREE TYPES
OF SMEs recognized.
1. Tiny Type : Annual turnover up to Rs.2

crores.
2. Small Type : Annual turnover of more than
Rs.2 crores but up to Rs.10
crores.
3. Medium Type : Annual turnover of more than
Rs.10 crores but up to Rs.50
crores.
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2.2 SME’S IN INDIA
The SME’s alone contribute to 7% of India’s GDP. As per the

Third All India Census of Small Scale industries conducted in 2004,
the SME’s have increased from about 80,000 units in the 1940’s to
about 10.52 million units. Their total employment is about 25
million and they produce about 7500 products including high
technology products.
In the sports goods and garments sector their contribution to
exports is as high as 90% to 100%.
They constitute 90% of the industrial units in the country and
also contribute to about 35% of India’s exports.
The Government of India since 1951 has encouraged and
supported the SME’s through its various policy initiatives. Since
2005, The Government of India has identified 3,000 SME clusters of
artisan-specific, village and small enterprises in the country and has
taken up 1,150 such clusters for intervention and improvement.
The performance of the Indian small scale sector in terms of
critical economic parameters such as number of units, production,
employment and export during the last decade is indicated below.
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Table2: Performance of SME Sector:
year No of Production Employment Exports

units
(In billion (In millions) (In
(In at current billion
millions) prices) at
current
prices)
1993-94 20.38 2416.48 13.93 253.07
1994-95 2.57 2998.86 14.65 290.68
1995-96 2.65 3626.56 15.26 364.70
1996-97 2.80 4118.58 16.00 392.48
1997-98 2.94 4626.41 16.72 444.42
1998-99 3.08 5206.50 17.15 489.79
1999- 3.21 5728.87 17.85 542.00

2000
2000-01 3.37 6454.96 18.56 599.78
2001-02 3.46 6905.22 19.22 712.44
2002-03 3.67 8243..63 20.07 861.03
2003-04 3.83 9323.54 20.90 NA
2004-05 4.00 10600.87 21.78 NA
2005-06 4.18 12138.00 22.78 NA
2006-07 4.37 14019.39 22.17 NA

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2.3 CHALLENGES FACED BY SME’s
Challenges faced by SMEs may be briefly set out as follows:
• Small and medium enterprises particularly the tiny segment of

the small enterprises, have inadequate access to finance due to
lack of financial information and non- formal business practices.
SMEs also lack access to private equity and venture capital and have
a very limited access to secondary market instruments.
• SMEs face fragmented market in respect of their inputs as well
as products and are vulnerable to market fluctuations.
• Low technology base and inability to move up to the current
technological system owing mainly to lack of funds required for
technological up gradation
• Economic efficiency is limited affecting their products/services in
competition with large sized units.
• SMEs face considerable delays in the settlement of
dues/payment of bills by the large buyers.
• Many small-scale entrepreneurs are facing difficulties in
providing collateral security as per the requirements of the
financing banks.
2.4 Risks Faced by SME Units

• Management Risks
• General Management skills / methods / training / attitudes
• Perpetuation of the units as an ongoing concern
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• Financial Risks
• Lack of Financial Plans (Too many surprises & ad hoc decisions)
• Costs / Finances / Funds Inadequate attention to financial
disciplines and cash flow
• Inadequate financial plans & control over Cash Flows
(perpetually caught up in this vicious cycle).This can be dangerous.
• Inability to pay competitive wages / salaries to trained
professional in working classes
• Meticulous attention to funds flow & cash flows & follow up on
regular basis
• Marketing Risks
• Reach & Net working
• Dependence on few customers
• Technology Risks (Scope / Costs / Quality)
• Need for perpetual R&D
• Technology obsolescence
• Human Resource Risks
• Need for formally trained manpower
2.5 The causes of sickness of SME industries
• Diversion of funds.
• Dissension among partners.
• Shortage of power.
• Technological obsolescence.
• Overdependence on purchases by Government.
• Lack of knowledge about various credit schemes
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2.6 Government's Promotional Policy and Support

Network
New policies/measures for SME:
In order to help the sector integrate with the industry at large

within liberalized economic framework the government of India has
announced new policy measures. In the present context, the
following are of particular interest as announced in the year 1991:
a. The investment ceiling for the purpose of definition of a small unit
has been raised to Rs. 6 million (Rs. 7.5 million if the unit concerned
undertakes to export 30 percent of its output or if it is an ancillary
unit i.e. a firm supplying at least 50 percent of its output to large
scale industries).
b. Other investors (including large scale enterprises and foreign
investors) are now allowed 24 percent equity participation in a
small scale unit.
c. The Act on Delayed Payments to Small and Ancillary Enterprises
has been promulgated. Under this act, buying/mother units will be
required to pay interest on delayed payments for supplies bought
from SME units if the payments are delayed beyond the negotiated
and agreed upon time period.
d. The Reserve Bank of India has announced a package of measures
to ensure a better flow of credit to the SME through measures such
as expansion of 'single window' loan scheme.
Banks are encouraged to open specialized SME branches and to give
greater priority to the sector in their annual credit budgets.
e. Access to inputs has been improved by giving SME priority to
allocation of iron and steel from public sector undertakings and by
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removing obstacles to imports of a range of raw materials and

intermediate products.
f. The number of products which are reserved for SME stands at 836
in 1994. This represents a decrease of only 7 items since the
economic reform process has been initiated in 1991.
The Government of India during the pre liberalization period i.e.
before 1991 had several incentives and subsidies for promotion of
SME sector. These included providing term finance at concessional
rates of Interest, higher debt-equity ratio, capital investment
subsidies to encourage investment in less developed areas,
incentives for starting electronic industries etc.
2.7 Financial needs of SME
2.7.1 Borrowing needs can be classified into two groups:
a) Short term needs – When debt is used to finance temporary

or seasonal cash requirement it is known as short term needs which
include the following:
• Paying accounts payable during a peak period.

• Acquiring seasonal inventory.
• Carrying peak period accounts receivable.
• Meeting intermonth timing difference between the payments of
accounts payable accrued expenses and accounts receivable.
b) Long term needs – When a debt is used to finance

permanent working investment purchase long term assets or
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replace equity is known as long term needs, which include the

following:
• Supplementing permanent working capital in a growth

situation.
• Acquiring fixed assets.
• Partially financing the purchase of a business.
2.7.2 Lenders may use various credit facilities to meet the

various borrowing needs. They are:
a) A short term credit facility – It has a maturity of one year

or less. When a short term facility is used to finance a temporary,
short term need its repayment depends on sources that can
generate cash in a single operating cycle, such as a seasonal
shrinkage of trading assets.
b) A long term credit facility – It has a maturity of more than
one year. This facility is typically used to finance relatively
permanent or long term borrowing needs when repayment is not
expected within a single operating period.
2.8 Financial Requirements Of SME
2.8.1 Working Capital
Working capital represents the amount of assets that a company can

utilize. It is essential to have a positive working capital to ensure the
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operational efficiency of a company. It is used to acquire additional

assets, such as inventory products to be used in the business.
Working capital can be used for a variety of purposes. For one, it can
be used in the construction and renovation of a place for business. It
can also be used to acquire machinery needed for the business
operation.
A working capital loan is used to provide funds for a business,

typically when it lacks the resources to operate sufficiently. It is
utilized mostly when a business needs additional growth, until such
a time when all the operating expenses can be covered by the
revenue generated.
Without the use of a working capital loan, most businesses find it

difficult to expand the scope of the business or pay off the current
liabilities incurred. This is most evident during the early stages of
development for a business, when there is no sufficient cash flow to
be obtained from revenues. The loan is needed to pay for utility bills,
mortgage payments, business expenses, inventory, and employee
payroll.
Most businesses may find it difficult to obtain a working capital loan.

It is essential to have a good credit rating in order to improve the
chances of acquiring such a loan. These are used by lending
institutions to assess the overall financial standing of a business or
individual. They are then able to ascertain whether giving a loan is
at an acceptable level of risk.
There are many different working capital loans available. Here are
some common examples of the different forms that can be obtained.
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1. Short term loan

As the name implies, this is a loan for a short period of time where a
quick influx of cash is needed. For example, this is used when a
business needs funds to acquire additional inventory. The payment
terms usually last for a year or so.
2. Credit Line
A credit line can be used to get cash advances. This is similar to a
short term loan in that it is used for short term needs. Getting
approved for a credit line is dependent on a good credit rating.
3. Equity
These can be gotten from personal resources such as ones from a
housing property. Additional sources include friends and family
members. The terms are flexible allowing you the business owner to
grow your business rapidly without the headaches of traditional
loans and bureaucratic paper work involved with such a process.
These working capital loan program funds fast in as little as 20 to 30
days.
2.8.2 Fixed Asset
Everyone wants to support the loan with an asset. Thus

determination is to be made on assets that are most marketable,
most liquid and of highest quality. The asset can readily be
converted to cash and for which there is a sufficient demand in the
market. . Liquidity and marketability usually go hand in hand, since
fixed asset that can be readily converted to cash are high in demand.
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2.9 About Standard Chartered

Standard Chartered plc is a British financial services company
headquartered in London, UK with operations in more than seventy
countries. It operates a network of over 1,700 branches and outlets
(including subsidiaries, associates and joint ventures) and employs
73,000 people.
Despite its British base, it has few customers in the United Kingdom
and 90% of its profits come from Asia, Africa, and the Middle East.
Because the bank's history is entwined with the development of the
British Empire, its operations lie predominantly in former British
colonies, though over the past two decades it has expanded into
countries that have historically had little British influence. It aims to
provide a safe regulatory bridge between these developing
economies.
It now focuses on consumer, corporate, and institutional banking,
and on the provision of treasury services—areas in which the Group
had particular strength and expertise.
Standard Chartered is listed on the London Stock Exchange, Hong
Kong Stock Exchange and the Indian Stock Exchanges and is a
constituent of the FTSE 100 Index.
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PRESENCE OF STANDARD CHARTERED BANK IN INDIA: 33 CITIES WITH

MORE THAN 83 BRANCHES
2.9.1 MORE THAN BANKING
Corporate Social Responsibility (CSR) is at the core of the values of

Standard Chartered Bank.
The Bank is committed to the communities and environments in
which it operates. The Bank strongly supports the trend towards
delivering shareholder value in a socially, ethically and
environmentally responsible manner. ‘Living with HIV’ is a global
community initiative of
Standard Chartered that is aimed at raising awareness of HIV/AIDS
amongst employees through workshops and amongst stakeholders
by providing thought leadership. Under ‘Seeing is believing’, a
program that aims to restore sight to one million people globally by
2007, the
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Bank has raised funds to help 8000 people to see.

In partnership with Sight Savers International and VISION2020 the
Bank is now involved in two flagship projects at Vishakhapatnam
and Muzaffarpur, both aimed at the elimination avoidable blindness.
Furthermore, in support of the communities ravaged by the Asian
Tsunami
Crisis in 2004 the Standard Chartered Group committed US$ 1
million to India. The Bank is utilizing these funds for the
rehabilitation of two villages adopted near Chennai.
In 2004, Standard Chartered initiated the phenomenally successful
Standard Chartered Mumbai
Marathon - an event dedicated to charity fund raising. The two
marathons held so far have forged partnerships with customers and
charities and deepened the Bank’s ties with the community, with
over US$ 1 million being raised in 2005.
2.9.2 Some other fact about STANDARD CHARTERED BANK
· Over 50 nationalities are represented among our top 500 senior executives.
· SCB is the only international bank with over 90% profits from Asia, Africa,
and the Middle-East.
· SCB is the only international bank with a long unbroken banking history in
India and
China.
· SCB is the largest international bank in India in terms of branch network
and profits
· SCB is the only bank in the Falkland Islands.
· SCB is one of three note issuing banks in Hong Kong.
a) Principles and Value
· At Standard Chartered our success is built on teamwork, partnership and

the diversity of our people.
· At the heart of our values lie diversity and inclusion. They are a
fundamental part of our culture, and constitute a long-term priority in our
aim to become the world's best international bank.
· Today we employ 78,000 people, representing 115 nationalities, and you'll
find 61 nationalities among our 500 most senior leaders.
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· We believe this diversity helps to fuel creativity and innovation, supporting

the development of exciting new products and services for our customers
worldwide.
b) Stand for Strategic intent
· The world's best international bank

· Leading the way in Asia, Africa and the Middle East
c) Brand promise
· Leading by Example to be The Right Partner
d) Values
· Responsive
· Trustworthy
· International
· Creative
· Courageous
e) Approach
·Participation
Focusing on attractive, growing markets where we can leverage our
relationships and expertise
· Competitive positioning
Combining global capability, deep local knowledge and creativity to
outperform our competitors
· Management Discipline
· Continuously improving the way we work, balancing the pursuit of
growth with firm control of costs and risks
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2.9.3 Products offered by standard chartered
Operation
SME Commercia Personal

Banking l Banking Banking
Insurance Investment Loans Accounts

Services
ULIP Savings Currents
2.9.4 Standard Chartered Bank’s Products for SME
a) Bank Term Loan – A bank term loan to a company with a fixed

maturity and often featuring amortization of principal. If this loan is
in the form of line of credit, the funds are drawn shortly after the
agreement is signed. Otherwise the borrower usually uses the funds
from the loan soon after they become available. Bank term loans are
very common kind of lending. It is a contract, a legally enforceable
commitment to lend a specific amount for a specific period of time.
It sometimes goes by product name. Some examples are given
below:
• Mortgage- A term loan secured by legal property.

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• Bullet – A term loan with all principle to be repaid on one date in

the future.
• Bridge – A term loan with a short term, where repayment is
required upon a certain event.
• Standby Term loan – The company has a predetermined amount
disbursed on an as need basis. Repayment is on a predetermined
schedule and funds cannot be re borrowed.
• Balloon – A term loan that require small principle repayment
over a number of periods and then a large payment at the end of the
loan.
• Leveraged Or Capital Lease – A long term secured loan structured
so it can be accounted for on financial statements as a lease in
accordance with GAAP.
b) Overdraft – The word overdraft means, the act of overdrawing

from a bank account. In other words, the account holder withdraws
more money from a bank account than has been deposited in the
bank.
c) Packing Credit – Short term loan that bank provides to the

exporters and or to the manufacturers for the purpose of promoting
small and medium industries. Loans can be in bath or in other
currencies.
d) Post Shipment – Loans are provided upon presentation of

documents and a credit line request. Post shipment is applied by
presenting bill of exchange issued specifying the amount and credit
term according to the documents. The maximum available term is
180 days.
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e) Letter Of Credit – Letter of credit is a financial instrument often

used in inland or international business w3here suppliers or
vendors do not have established relationships with their counter
parts. A letter of credit is a bank’s direct undertaking to the supplier
to pay. When letter of credit is in use, the issuing bank does not wait
for the buyer to default and for the seller to invoke the undertaking
f) Bank Guarantee - An agreement by a third party to repay the

loan in case of default or nonpayment by the borrower, which offers
an alternative source of repayment, is known as guaranty. As a
source of repayment, a guaranty is as reliable as the guarantor’s
ability and willingness to repay. It is a written contract stating that
in the event the primary party i.e., the buyer is unable or unwilling
to pay its dues to the supplier bank, as guarantor to the transaction
the bank guarantee would pay to the supplier. In other words, a
bank guarantee is an undertaking of a bank on behalf of its
customer. But this comes into play only when the principal party i.e.,
the buyer has failed to pay its supplier.
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3. Analysis of SME Exposure

A squeeze on interest margins, a nudge from the central bank and an
opportunity to expand their credit portfolio towards a new and
relatively unexplored direction, and led most banks to take a focus
on the small and medium enterprise (SME) sector. According to a
recent survey commissioned by Citibank, the small businesses and
professionals community in India is estimated at more than 3
million. As a result, this sector is the focus of attention among banks.
With so much to work with, most banks now have special cells in
place to target this sector. In addition to providing the usual loans
and working capital assistance, banks are now going the extra mile
to empower their SME clients.
But nothing works like a nudge from the Finance Minister himself. P
Chidambaram has asked the State Bank of India (SBI) to increase its
share of lending to this sector. “The bank should also use its vast
branch network to increase lending to the SME sector as it helps in
generating employment and also addresses the issue of balanced
regional development,” he said.
SBI on its part has already taken an initiative in this direction.

Through its Project Uptick, has taken a cluster financing approach,
where the units from similar industry are identified for process
improvement. This means that units, which come forward to adopt
innovations, get financial assistance for up gradation costs.
ICICI Bank, the country's second largest bank, has introduced a

simplified loan product, an unsecured loan up to Rs 25 lakh for the
SME sector. This is ideal for promoters with big ideas and little
29
collateral security. SMEs can also apply for loans through the bank’s
website now. Another service in the pipeline is the roping in legal
and taxation experts as channel partners whose services SME units
could utilize. However, the most important thing is the client’s track
record, the bank maintains.
Oriental Bank of Commerce (OBC) is in the process of setting up a

specialized cell for the SME sector. Apart from processing and
imparting loans for this sector, the cell would carry out marketing
activity and follow up loan cases for customers of SMEs. The cells
would be set up at all the 29 OBC regional centers across the
country.
Though, these are recent initiative, almost all banks now have a
special package for this sector. The foreign banks don’t want to be
left behind either. Most of them want to target the neglected
segment of potential customers as many of these businesses get only
transactional banking services, because of their size and relatively
low cash flow requirements. Typically, these are customers who do
not have access to loans from private and nationalized banks based
on their income.
Standard Chartered Bank has taken a lead in this direction. It is

offering this service through a separate business unit called
Standard Chartered Investment & Loans Ltd (SCILL), currently
present in 16 cities. The bank has drawn up a road map to extend
SCILL’s network to 60 cities by the end of this fiscal.
HSBC, which has become an aggressive player in the Indian market,

is not far behind. HSBC is offering this mass-banking service through
30
its 21 branches in 16 cities across the country. The minimum

income level required for getting a loan from HSBC is just Rs 3,500
per month for salaried employees and Rs 10,000 per year for the
self-employed.
Despite its extensive research, Citibank is a later entrant in this

business, and has announced its initiative only recently.
Understandably, risk management for this sector is a huge issue

with banks. CRISIL has stepped in to provide a rating service for the
SME sector. According to this rating program, SMEs would be rated
on a scale of one to eight, with scale one indicating the highest credit
quality and the scale eight, hinting at default possibilities.
The ratings assigned to SMEs would also function as a self-
improvement tool for them.
To top all initiatives, SBI, ICICI Bank and Standard Chartered Bank,
have agreed to join hands with the Small Industries Development
Bank of India (SIDBI) to float a rating agency for the SME segment.
The rating agency, Small and Medium Enterprises Rating Agency
(SMERA), will rate the company’s overall strength; unlike most
rating agencies whose core business are to rate debt instruments.
With planning, government encouragement and dedicated rating

services, banks can tap the potential of this sector in the coming
years.
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3.1 SME Exposure of Standard Chartered

The Indian banking sector may be focused on increasing its share
in the retail banking space. But for Standard Chartered Bank, the
future lies in the less glamorous SME (small and medium enterprise)
segment.
After gaining a strong base in credit card and personal banking

segment, the bank now plans to focus on the SME sector in the next
couple of years and has even lined up a few innovative products.
"Most Asian countries are dominated by SME businesses which
account for 60-70 per cent of GDP" said Mike Denoma, group
executive director (consumer banking) of Standard Chartered Bank.
While he was unwilling to specify the bank's exact strategy, some of
the products like cash management services and loan products are
likely to be launched soon.
According to him, a focus on the SME segment would make a good
business sense for the bank which has a strong clientele base of high
net worth individuals (HNI). Denoma believes that with many of the
HNIs being the chief executives of the small and medium sized
enterprises, it would be easier for the bank to foray into the SME
segment.
Denoma believes that the new focus on SME segment besides retail
banking could change a few things for StanChart which is
increasingly finding India attractive. "We were never more excited
about India earlier' says Denoma and adds that the next five years
would be completely different from the past five years. In fact
StanChart has identified India along with China as a key market for
its future growth plans. What has added to StanChart's excitement is
the fact that India would be ready with a credit bureau before the
end of 2004.
According to Denoma, that would change a few things in the pricing
32
of products like credit cards and loan products as a good borrower

would not be required to pay for the delinquencies of other
borrowers. At present, a single interest rate is applicable for all
borrowers irrespective of their creditworthiness.
3.2 FINANCING POLICY AT STANDARD CHARTERED BANK
I. LOAN APPLICATION BY THE FIRM

This is the very first step taken by the bank to approve any kind of
credit facilities to the SMEs. The loan application covers various type
of information about the enterprise which helps the bank to analyze
whether they should grant the loan and the degree of risk associated
with that loan. The various aspects covered here are:
• Details of the enterprise :- The application form should contain

various information about the enterprise such as Name of the firm,
Registered Office, Administrative Office, Factory works, Godown,
Branch Office, Constitution of the Firm(HUF/Sole/Partnership),
Date and Place of Incorporation, Sector, Category
(SSI/Medium/Large), main activity of the firm, name of
Directors/Proprietor/Karta, Capital Structure of the firm along with
list of major share holders, name & address of the guarantors, etc
are to be provided, whether the borrower firm is insured with
Export Credit Guarantee Corporation(ECGC).
• Credit Facility: - Here the firm specifies the kind of credit it
requires such as cash credit, term loan, packing credit, etc. and
shows the calculation of the amount required.
• Submission of Documents: - Along with the detailed
information about the enterprise certain documents also needs to be
submitted such as memorandum of association, articles of
33
association, proof of collateral securities held, insurance papers of

properties held, last two years audited financial statements along
with projections for the next two years, information of credit
facilities enjoyed from other banks, income tax return of the firm
and Directors/Proprietor/Karta.
II. ANALYSIS OF CREDIT APPLICATION BY STANDARD

CHARTERED BANK
After the application form along with the documents are received by
the bank the credit manager first verifies the authenticity of the
documents and starts analyzing the various financial statements and
makes a report on the assessment of the Working Capital
Requirement with the help of CMA data sheet, prepares a Credit Risk
Rating, checks the past credit history of the firm and then finally
arrives at a decision to grant the loan.
3.3 Preparation of Credit Monitoring Arrangement (CMA)
For appraising the Working Capital requirement the borrower has

to submit the financial data to the Bank in a format prescribed by
RBI. This is known as the CMA format (Credit Monitoring
Arrangement). There are total six forms to be filled up in an excel
sheet according to the CMA format. These forms give the following
details:
FORM I: Here individual information in respect of each of the

working capital credit facilities such as Cash Credit, packing credit,
Bill purchased and discounted, Letter of Credit, Bank Guarantee, etc.
is to be given. The details of credit facilities availed and deposit
accounts maintained with other banks are also given. Along with
this, the record of maximum and minimum utilization of these limits
34
during the past 12 months is given. For renewal of credit facilities

the existing limit along with the new limits requested are provided.
FORM II: Details of Operating Statement for last two years audited
figures, current year estimates and projections for next year are
calculated. Here calculations for gross sales, net sales, cost of sales,
operating profit, other non-operating income, total income and
profit before tax is shown.
FORM III: Here the Balance Sheet for last two years audited figures,
current year estimates and projections for next year are analyzed.
The categories of broad heads here are Current Liabilities, Term
Liabilities, Net Worth, Total Liabilities, Current Assets, Fixed Assets,
other Non-Current Assets, Total Assets, Tangible Net Worth and Net
Working Capital. Current Liabilities include Short term borrowings
from banks/others, sundry creditors, advance from customers,
provisions, dividend payable, other statutory liabilities, other
current liabilities and provisions. The total of all these items
accounts for TOTAL CURRENT LIABILITIES (A). The term liabilities
include debentures, preference shares, term loans, and other
unsecured loans which totals to TOTAL TERM LIABILITIES (B).
(A+B) is the TOTAL OUTSIDE LIABILITIES. The NET WORTH (C)
includes share capital, general reserve, and profit and loss a/c. The
total of (A+B+C) forms TOTAL LIABILITIES. Current Assets include
cash/bank balance, investments (other than long term), receivables,
stock, and other current assets. The total of CURRENT ASSETS,
FIXED ASSETS AND NON-CURRENT ASSETS forms TOTAL ASSETS.
Net Working Capital is the difference of total current assets and
liabilities.
35
FORM IV: Comparative statement of Current Assets and Current

Liability for last two years audited figures, current year estimates
and projections for next year. Also calculation for month’s
consumption of raw materials, cost of production, and cost of sales,
receivables, and purchases are shown.
FORM V:
Computation of Maximum Permissible Bank Finance for Working
Capital Requirement for last two years audited figures, current year
estimates and projections for next year.
FORM VI: Details of funds flow statement for last two years audited
figures, current year estimates and projections for next year are
calculated. Here increase/decrease in current assets and liabilities
are shown in details. Along with the above forms a statement of
Analytical and Comparative Ratios is also submitted. These data are
also last two years audited figures, current year estimates and
projections for next year are calculated. The various ratios include
current ratio, Debt/Equity ratio, Bank borrowing/Total outside
liabilities, net sales/Total tangible assets, etc. Also stock of raw
material in terms of No. of months consumption, WIP in terms of No.
of months cost of production, FG in terms of No. of months cost of
sales, Sundry debtors in terms of No. of months sales are also given.
36
3.4 Methods of Calculating Working Capital Requirement
As per the recommendations of Tandon Committee, the corporate

should be discourage from accumulating too much of stocks of
current assets and should move towards very lean inventories and
receivable levels. The committee even suggested the maximum
levels of Raw Material, Stock-in-process and Finished Goods which a
corporate opening in an industry should be allowed to accumulate
these levels were termed as inventory and receivable norms.
Depending on the size of credit required, the funding of these
current assets (Working needs) of the corporate could be met by
one of the following methods:
• First Method of Lending:

Banks can work out working capital gap, i.e. total current assets less
current liabilities other than bank borrowings and finance a
maximum of 75 per cent of the gap (called Maximum Permissible
Bank Finance or MPBF); the balance to come out of long-term funds,
i.e., owned funds and term borrowings. This approach was
considered suitable only for very small borrowers i.e. where the
requirements of credit were less than Rs.10 lacks.
• Second Method of Lending:

Under this method, it was thought that the borrower should provide
for a minimum of 25% of total current assets out of long term funds
i.e., owned funds plus term borrowing. A certain level of credit for
purchase and other current liabilities will be available to fund the
buildup of current assets and the bank will provide the balance
(MPBF). Consequently total current liabilities inclusive of bank
borrowing could not exceed 75% of current assets. RBI stipulated
that the working capital needs of all borrowers enjoying fund based
credit fund based credit facilities of more than Rs.10 lacks should be
appraise(Calculate) under this method.
37
• Third Method of Lending:

Under this method, the borrower’s contribution from long term
funds will be to the extent of entire CORE CURRENT ASSETS, which
has been defined by the Study Group as representing the absolute
minimum level of raw material, process stock, finished goods, and
stores which are in the pipeline to ensure continuity of production
and a minimum of 25% of the balance current assets should be
finance out of long term funds plus term borrowings. However this
method was not accepted for implementation and hence is only for
academic interest.
38
Method 1 Method 2 Method 3

(Rs.) (Rs.) (Rs.)
A. Current Asset 25,00,000 25,00,000 25,00,000
B. Current liabilities 22,00,000 15,00,000 17,00,000
C. Working Capital (A-B) 300,000 10,00,000 800,000
D. Less 25% of 3,00,000 75,000 __________ _________
E. Less 25% of Current
Assets (25, 00,000*25%) ___________ 625,000 _________
F. Core Current Asset ____________ ___________ 100,000
G. Real Asset (A-F) ____________ ____________ 24,00,000
H. 25% of G ____________ ____________ 600,000
I. Current Liabilities ____________ ____________ 17,00,000
J. Maximum Permissible Bank
Finance
Method 1 (C-D) 225,000 ____________ _____________

Method 2 (C-E) ___________ 375,000 _____________
Method 3 (G-H-I) __________ ___________ 100,000
39
The process of sanctioning of loan can be better understood in 10 different

steps which start as follows:
1. Origin
2. Evaluation
3. Negotiation
4. Approval
5. Documentation
6. Disbursement
7. Portfolio Management
8. Administration
9. Orderly Payment
10. Unforeseen, Workout & Re-Payment
The process starts with Origin where client referrals, prospect discovery and
outside referrals take place. After that the next step is Evaluation which is
the most important step and almost half of sanctioning process is completed
in this step. The step consist of the loan, the type of business that the
customer engage with, management, figure and risk rating to determine the
credit worthiness of the client and to arrive at the lending rate. The rest of
the steps take place in the given sequence as shown in Fig 1.
The process can be easily understood with the help of this diagram:
40
3.5 Fig. 1:- Process of sanctioning loan
Origin Evaluation Negotiation

Client Request Purpose Tenor
Prospect Management Security
Discovery Business Repayment
Figures Other
Risk Rating
Approval Documentation Disbursement

Sanctioning Legal drawing Notes valid
Officer Document Review Document properly
Collateral Checks Executed
Purpose of finance
To be executed
Portfolio Management
Orderly Repayment
Administration
Re-payment
Figures Unforeseen Principal in full
Collateral Interest in full
Payment Workout
Credit review Early Recognition
Restructuring Re-payment
Management of plans Principal in full
Legal Efforts Interest in full
Re-Organization
Term of Recognition
41
4. TOP FIVE PLAYERS IN SILIGURI MARKET (SEGMENTWISE)
• Actually SME is looking for short & medium type business. This SME is
providing a simple way to develop the businesses. Every business men are
getting these opportunities through Standard chartered bank. This bank
provides CC with less interest than any other banks. Under this project the
following 20 segments are functioning in this bank.
1. Automobile 2 wheeler
2. Automobile 4 wheeler
3. Foods grains
4. Traders of Oil
5. Traders of Sanitary items
6. Traders of Electrical
7. Retailer of Garments
8. Traders of Pulses
9. Traders of Hardware items (Wire, Wire nettings, Building material)
10. Traders of Hardware Iron & Steel
11. Trader of Cement
12. Trader of Pharmaceuticals
13. Retailers of Electronics
14. Traders of jwellery
15. Trader of Sugar
16. Trader of Tea

42
17. Trader of Marbles
• The main target of the Standard Chartered bank is to provide CC (Cash

Credit) with a less interest. The interest rates of this bank are 11.25%-11.50%.
The cash credit is a short-term cash loan to a company. Stan chart provides this
type of funding after getting proper security to secure the loan. If any business
man to follow the norms and securities of the bank then he can continue his
transaction with the bank.
• According to needs and demands of the Cash Credit in Siliguri market

questionnaires are required. This questionnaire is detailed with some basic
questions i.e. Customer name, contact number, sales, stock, existing bank etc.
Sometimes some businessmen don’t want to give any information about their
business because it’s totally confidential but a prefect marketing approach can
help to gain this barrier. This approach should be politeness and meaningful so
that a customer can consider his merit of profitable business.
• Objective of the project: The main object of this project was found out the
top five players from this segment with respect of their turnover. I surveyed the
Siliguri market and it was found that maximum businessman’s turnover was
above 5 crore.
o Below I have given my experience which I have got from market.
1. Auto Dealer(2 wheeler) of siliguri:
So many small and medium 2wheeler auto dealers are situated in Siliguri. These
auto dealers are doing their business in siliguri market with high or medium
turnover.
43
These auto dealers are like i) Hero Honda (Beekay Auto Pvt. Ltd) ii) Yamaha
(National motors) iii) TVS motor (Annapurna house) iv) Bajaj (Siliguri Auto works
pvt. Ltd) v) Royal Enfield (Siliguri Distributors) vi) Kinetic vii) LML
Basically the segment of Standard Chartered Bank is to find out top five players
in siliguri market. After survey of 2 wheeler auto dealers in siliguri market those
auto dealers are playing with high value of turnover in the 2 wheeler sectors,
they are i) Beekay auto pvt. Ltd. ii) Annapurna house iii) Siliguri auto works pvt.
Ltd. iv) National motors v) Siliguri distributor.
These auto dealers are doing their business with the help of different banks like
SBI, HDFC, Union Bank, AXIS Bank, Canara Bank, PNB, Karnataka Bank etc.
Mainly they have chosen their existing bank for their self satisfaction. Some
banks do not provide “CC” to the auto dealers because the criteria are not
fulfilled by the customer. The criteria should match with the banker’s
requirement.
As examples, Hero Honda (Beekay auto pvt Ltd) has 15 crore turnover p.a. and
following CC form SBI with 12.5% interest because the organization is getting
better facilities from SBI.
Bajaj (Siliguri auto works pvt ltd) has 13 crore turnover p.a. and their existing
bankers are SBI, HDFC and using CC from SBI with 12.25% interest because they
are getting good facility.
TVS (Annapurna house) has 12 crore turnover p.a. and they are using CC from
Canara Bank because they enjoying better facilities with 12.5% interest. Their CC
limit is 1 crore.
Yamaha (National motors) has 8 crore turnover p.a and they are satisfied by
HDFC bank at 12.25% interest because they believe to do banking with good
relationship. So Yamaha get good relation with HDFC.
Royal Enfield (Siliguri Distributors) has 6 crore turnover p.a. and they are
enjoying their banking with Karnataka Bank and using current account.
44
If the top five players of two wheeler auto dealers are shown in a graph then it
will show the exact position among them in siliguri market.
Turnover p.a (in crore)

16
14
12
10
8
6
4
2
0
Annapurna Beekay auto National Siliguri auto Siliguri
house pvt.ltd Motors works distributor
pvt.ltd
2. Auto dealer(4wheeler) of siliguri:
There are so many 4wheeler auto dealers in siliguri. They are doing their
business with their long year experience and with their relationship of banks.
The banks are all time helping them to do their business. The business men are
getting different types of facility from banks i.e. working capital loan, term loan,
Cash Credit etc. Some business man doesn’t want to change their bank for their
long year relation.
Their existing banks are SBI, HDFC, AXIS, ICICI, PNB etc. Maximum dealers are
doing their business with SBI because it is the oldest Govt. bank in siliguri.
45
The survey report has detailed about the top five 4wheeler auto dealers in
siliguri. This auto dealer has positioned on the basis of their turnover.
These 4wheeler auto dealers are Kaysons Motors, Bajla motors Pvt. Ltd, Topsel
Toyota, Beekay Auto, Durga Hyundai, Ravi Auto (Mahindra) etc.
These top five auto dealers (4wheeler) are banking with SBI, ICICI, AXIS, and
HDFC.
Beekay Auto (Maruti Suzuki) is the top player in this segment because Maruti
Suzuki has great demand in this siliguri market. Their products are Alto,
ZenEstilo, Versa, Ritz, Aster etc. Their turnover is 12 crore and they are using
“CC” from SBI with 12.5% interest. They believe that SBI is Govt. bank and it has
more secured than private bank.
Bajla motors pvt. Ltd (Tata) is also reputed organization in siliguri. Their turnover
is 8 crore and they are also using “CC” from ICICI bank with 12% interest.
Kaysons House (Chevrolet) is 6 years old organization and its turnover is 4.2
crore. Their existing banks are Axis, SBI and ICICI. They are using “CC” from SBI
with 11.5% interest.
Ravi Auto (Mahindra) has 7 crore turnover and their existing bank is HDFC. They
follow “CC” of this bank with 12% interest. They have chosen this bank for their
long year relationship.
Durga Hyundai (Hyundai) has 5 crore turnover and their existing banks are HDFC,
ICICI. They have only normal current account.
46
Turnover p.a ( in crore)

16
14
12
10
8
6
4
2
0
Bajla Beekay Durga Kaysons Ravi Auto
motors pvt Auto Hyundai House
ltd
3. Traders of food grains:
There are so many food grains dealers in siliguri market. Maximum business men
are running their business from generation with their own experience and also
they are very qualified person. Their business strategies are totally different with
others. Maximum business men are following Govt. bank because it is more
secure than private bank. Actually this type of dealers follows the other dealer
that how they are dealing their business and how they are benefited by bank
etc. At that time of survey so many business men are not like to share their
turnover, their existing bank, their stock level etc. Because they think that it can
be hamper their business indirectly.
After survey I have found some top food grain players in siliguri market and
within this player I have located top five players. They are PP Commercial,
Motikar trading co., S.K enterprise, Mangal chand Anup kr., Motilal Kisan lal.
PP commercial is situated in siliguri nayabazar near M.R Compound. They follow

CC from SBI with 12% interest. They follow SBI for their long year relationship.
47
Though they are dealing with other private bank yet they follow SBI only for
their business safety. Their turnover is 8 crore.
Motikar trading co. has good business in siliguri market. Their turnover is 5 crore
and their existing bank is SBI. They follow CC at 12 % interest.
Mangal chand Anup kr has 6 crore turnover. They follow CC from PNB with
11.50% interest. This organization believes on cash transaction and they have
minimum creditors account in their balance sheet.
S.k enterprise has 7 crore turnover. Their existing bank is SBI and they follow CC
at 12% interest. This organization is very old organization and the owner of this
organization is very educated. His business handling ability is very good and I can
say he is perfect gentle man.
Motilal Kisan lal has 4 crore turnover. Their existing bank is Standard Chartered
Bank. They follow CC at 11.25% interest. They are satisfied with their banking
because they are more facility than the other banks.
Turnover p.a (in Crore)
10
9
8
7
6
5
4
3
2
1
0
Motikar Mangal Chand S.K Enterprise Motilal Kishan PP commerce
trading Co. Anup kumar Lal
48
4. Trader of Oil:
This type of business is situated in siliguri’s Nayabazar. They all are very
experience person. They have been doing their business for so many years.
Maximum dealers prefer SBI for their banking transaction and beside this bank
they also prefer HDFC, ICICI, Union Bank, Bank of Baroda etc. Though in this
segment every business is touching the position of crore but after surveys I have
found some top class dealers at nayabazar.
They are G.Corporation, Chandan Mal Kisan Lal Trader, Kalika & Sanghai
Distributor, Mahendra Munna Distributor, Biresh lal Jagdish Prasad. They all are
top class business man in this segment. Their oil products are Ruchi, Tulsi,
Emmami, Fortune etc.
G.Corporation is doing their banking transaction with SBI and HDFC. They also
follow CC (Cash Credit) of SBI at 11.5% interest. Their turnover is 15 crore. I have
talked with Jiban Krishna Roy, the owner of this business and a very experienced
person. He shared me about his business’s turnover, existing banks and vintage
of this business. The vintage of this business is above 15 years.
Kalika & Sanghai Distributor is very reputed business man at Nayabazar and they
have two firms, first is Kalika Distributor and second Sanghai Distributor. The
owner of this firm is Naresh Kr. Sanghai. Their turnover is 8 crore and they have
70 lakh CC in HDFC Bank at 12% interest. But they are not satisfied with HDFC’s
customer service. When I informed some great offer of Standard Chartered Bank
then he want to shift his bank because Standard Chartered interest is CC interest
rate is 11.25%. I have also arranged a meeting with my senior for their bank
shifting.
Mahendra & Munna Distributor has 7 crore turnover and they follow CC HDFC
Bank at 11.75% interest. The Owner of this organization is OM
Prakash Agarwall is a very good business man and also very experienced person.
49
Chandan Mal kishan Lal Trader has 10 crore turnover and the vintage of this
business is 20 year. They have the dealership of Tulshi oil and they follow CC
with SBI at 10.68% interest. Their CC limit is 94 lakh.
Biresh Lal Jagdish Prasad has 7 crore turnover and they follow CC with Bank
Baroda at 12.25% interest. The owner of this business is Nand kishore Agarwall.
He will be also shifting his bank with our bank because he is not satisfied with
Bank of Baroda customer service
16
14
12
10
8
6
4
2
0
G. Kalika & Chand Mal Mahendra & Biresh Lal
Corporation Sanghai Trader Munna Jagdish
Distributor Prasad
5. Trader of Sanitary Items:
This type of business is situated in siliguri’s Church road. They all are very
experience person. They have been doing their business for so many years.
Maximum dealers prefer SBI for their banking transaction and beside this bank
they also prefer HDFC, ICICI, Union Bank, Bank of Baroda etc. Though in this
segment every business is touching the position of crore but after surveys I have
found some top class dealers at Church road.
In this segment the top five players are Siliguri Sanjay Traders, R.K Sanitation,
Classic Sanitation, Sushil Sanitary Mart, and Shree Omkar Trader.
50
Siliguri Sanjay Trader is doing their banking transaction with HDFC. They also
follow CC (Cash Credit) of SBI at 11.5% interest. Their turnover is 6 crore. I have
talked with Bimal Agarwal, the owner of this business and a very experienced
person. He shared me about his business’s turnover, existing banks and vintage
of this business. The vintage of this business is above 15 years.
R.K Sanitation is very reputed business man at Church road and they have two
firms, first is R.K Sanitation. The owner of this firm is R.K Agarwall. Their turnover
is 4 crore and they have 30 lakh CC in PNB Bank at 12% interest.
Classic Sanitation Distributor has 2 crore turnover and they follow CC SBI Bank at
12% interest. The Owner of this organization is P.K Agarwall a very good
business man and also very experienced person.
Sushil Sanitary Mart Trader has 3 crore turnover and the vintage of this business
is 20 year. Their bank is IDBI bank and they don’t follow any CC but now they
want to create it in Standard Chartered Bank. They are interest for 50 lacks limit
CC.
Shree Omkar Trader has 1 crore turnover and they follow CC of Canara Bank at
12.25% interest. There CC limit is 10 Lacks and the owner of this business is
Navin Agarwall.
51
Turnover p.a (in Crore)

4
3.5
2.5
1.5
0.5
0
Siliguri Sanjay Shree Omkar Sushil Sanitary Classic Sanitation R.K Sanitation
Traders Trader Mart
6. Trader of Electricals (wholesaler):
There are so many Electricals dealers in siliguri market. Maximum business men
are running their business from generation with their own experience and also
they are very qualified person. Maximum business men are following Govt. bank
because it is more secure than private bank. Actually this type of dealers follows
the other dealer that how they are dealing their business and how they are
benefited by bank etc. At that time of survey so many business men are not like
to share their turnover, their existing bank, their stock level etc. Because they
think that it can be hamper their business indirectly. There are so many electrical
dealers in siliguri market and difficultly it was founded top five players in this
market.
52
So these players are Shree Shyam Supplier, Jyoti Enterprise, Mahavir Electricals,
Bharti Enterprise and Sanjay Electrics.
Shree Shyam Supplier is doing their banking transaction with SCB. They also
follow CC (Cash Credit) of SCB at 11.25% interest. Their turnover is 12 crore. I
have talked with Manish Golyan, a very experienced person. He shared me
about his business’s turnover, existing banks and vintage of this business. The
vintage of this business is above 15 years.
Jyoti Enterprise is very reputed business man at Church road.The owner of this
firm is OM Prakash Agarwall. Their turnover is 9 crore and they have 2 crore CC
limit in SCB at 11.25% interest.
Mahavir Electricals Distributor has 5crore turnover and they follow CC SCB at
11.25% interest. Their CC limit is 1 crore. The Owner of this organization is Dhiraj
Golyan a very good business man and also very experienced person.
Bharti Enterprise has 2 crore turnover and the vintage of this business is 20 year.
Their bank is PNB and they follow CC in this bank.
Sanjay Elecricals has 3 crore turnover and they follow CC of Bank of Baroda at
12.25% interest. There CC limit is 50 Lacks and the owner of this business is P.K
Agarwall.
53

12
10
0
Shree Shyam Mahavir Jyoti Bharti Sanjay
Supplier electricals Electricals Electricals Electricals
7. Retailer of Garments:
There are so many Garments retailer in siliguri. They all very habituated and
highly educated person. Maximum business men are following Govt. bank
because it is more secure than private bank. Actually this type of dealers follows
the other dealer that how they are controlling their business and how they are
benefited by bank etc. But their turnover is not very high as like other segment.
Maximum business men are not follow CC, they use only normal current
account.
The top five players are Agarwal Brothers, Rony’s, Guru Nanak Garments, JP
Brothers, and Modi Garments.
54
Agarwal Brothers is situated at gouri sankar market .The owner of this firm is S.K
Agarwall. Their turnover is 1 crore and their bank name is Bank of Baroda.
Rony’s is situated at gouri sankar market .The owner of this firm is Manab Dutta.
Their turnover is 48 lacks and their bank name is Grameen Bank. They follow CC
at 5 lack limit.
Guru Nanak is situated at gouri sankar market .The owner of this firm is Jashbir
Singh (Sonu). Their turnover is 40 lacks and their bank name is ICICI Bank.
JP Brothers is situated at gouri sankar market. Their turnover is 50 lacks and

their bank name is ICICI and Axis Bank.
Modi Garments is situated at gouri sankar market .Their turnover is 30 lacks and
their bank name is HDFC, AXIS Bank.

2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
Agarwal Rony's Guru Nanak JP Brothers Modi
Brothers Garments Garments
8. Traders of Pulses:
All this dealers are situated in siliguri at nayabazar and they are very
knowledgeable person. They know how to control business and customer. After
my survey, I have found that maximum business men are depending on Govt.
55
bank and they does not trust private bank. Though the private banks are giving
maximum facility than Govt. bank yet they believe on Govt. bank. I have found
some five players at nayabazar. They are Shree Bhawani Enterprises, PP
Commercial, Sanjay kr. Rajib kr., Mahendra & Munna Distributor, Binod kr &
Monoj kr.
PP commercial is situated in siliguri nayabazar near M.R Compound. They follow

CC from SBI with 12% interest. They follow SBI for their long year relationship.
Though they are dealing with other private bank yet they follow SBI only for
their business safety. Their turnover is 8 crore.
Mahendra & Munna Distributor has 7 crore turnover and they follow CC HDFC
Bank at 11.75% interest. The Owner of this organization is OM Prakash Agarwall
a very good business man and also very experienced person.
Binod kr. & Monoj kr. has 6 crore turnover and they follow CC in HDFC Bank at
11.75% interest. The Owner of this organization is Ajay Agarwall.
Shree Bhawani Enterprise is situated in siliguri at nayabazar. They follow CC from

INDUS IND BANK with 12% interest. Though they are dealing with other private
bank yet they follow INDUS IND BANK only for their business releation. Their
turnover is 25 crore. Sanjay kr. & Rajib kr. has 5 crore turnover and they follow
CC in SBI at 12.5% interest.
30
25
20
15
10
0
Shree PP Sanjay kr. Mahendra & Binod kr.&
Bhawani Commercial Rajib Kr. Munna Monoj kr.
Enterprise Distributor
56
9. Trader of Hardware Items(Wire, Wire nettings, Building Material)
All this dealers are situated in siliguri and they are very knowledgeable person.
They know how to control business and customer. After my survey, I have found
that maximum business men are depending on Govt. bank and they does not
trust private bank. Though the private banks are giving maximum facility than
Govt. bank yet they believe on Govt. bank because their money is safe in Govt.
bank. I have found top five hardware dealers in this market. They are Siliguri
Balaji Stores, Mahavir Traders, Sinhal Brothers & Co., Durga Iron Steel and
Shyam Hardware Store.
Siliguri Blaji Store has 4 crore turnover and they follow CC in Union Bank at 12%
interest. The Owner of this organization is Bijay Kr. Agarwall.
Mahavir Traders has 5 crore turnover and they follow CC in SBI at 11.75%
interest. The Owner of this organization is Chandan Mal Agarwall. They also do
their business with Canara Bank.
Sinhal Brothers & Co. has 6 crore turnover and they follow CC in SBI at 11.5%
interest.
Durga Iron Steel has 3 crore turnover and they follow CC in HDFC Bank at 12%
interest. The Owner of this organization is Sankar Lal Agarwall.
Shyam Hardware Store has 4 crore turnover and they follow CC in SBI at 11.75%
interest. The Owner of this organization is Pradip Agarwall.
57
10
0
Siliguri Balaji Mahavir Sinhal Durga Iron Shyam
Store Trader Brothers & Steel Hardware
Co. Store
10. Trader of Hardware Iron & Steel:
They know how to control business and customer. After my survey, I have found
that maximum business men are depending on Govt. bank and they does not
trust private bank. Though the private banks are giving maximum facility than
Govt. bank yet they believe on Govt. bank. I have found top five hardware
dealers in this market. They are Siliguri Builders (P) Ltd, Bajrang Trading Co.,
Ganesh Steel Syndicate, Kundu Complex and Durga Iron Store.
Siliguri Builder has 100 crore turnover and they follow CC in SBI at 12% interest.
The Owner of this organization is Bikash Agarwall.
Bajrang Trading Co. has 3 crore turnover and they follow CC in OBC at 12%
interest. The Owner of this organization is Mr.P.K Agarwall. Their CC limit is 30
lacks.
Ganesh Steel Syndicate has 5 crore turnover and they follow CC in SBI at 12%
interest. The owner of this organization is Sanjib Agarwal.
58
Kundu Complex has 5 crore turnover and they follow CC in HDFC Bank at 11.75%
interest. The Owner of this organization is Samir Kundu.
Durga Iron Steel has 3 crore turnover and they follow CC in HDFC Bank at 12%
interest. The Owner of this organization is Sankar Lal Agarwall.
100
90
80
70
60
50
40
30
20
10
0
Siliguri Bajrang Ganesh Steel Kundu Durga Iron
Builder Trading Syndicate Complex Steel
11. Trader of Cement:
They know how to control business and customer. I have found top four
hardware dealers in this market. They are Sunrise Builders, Shiv Builders, M.K
Trading Co., Builders Steel Center.
Sunrise Builders has 60 crore turnover and they follow CC in Union Bank at 12%
interest. The Owner of this organization is Rajesh Agarwall.
59
Shiv Builders has 25 crore turnover and they follow CC in SBI at 12.5% interest.
The Owner of this organization is Susil Agarwall.
M.K Trading Co. has 10 crore turnover and they follow CC in IDBI Bank at 12%
interest. The Owner of this organization is Mahesh Bhansali.
Builders Steel Center has 9 crore turnover and they follow CC in SBI at 12%
interest. The Owner of this organization is B.P Agarwall.
BB Agarwal & Sons has 11 crore turnover and they follow CC in Indusind Bank at
12% interest.
70
60
50
40
30
20
10
0
Sunrise Builder Shiv Builders M.K Trading Co. Builders Steel BB Agarwal & Sons
Center
12. Trader of Pharmaceuticals (Wholesaler):
All this dealers are situated in siliguri at Khudiram Pally. After survey I have
found top five players of pharmaceuticals. They are Sunrise Distribution, Gunjan
Distributors, Anand Pharmaceuticals, P.C distributor, Bikash Medical, Shree
Shyam Pharmaceuticals.
Sunrise Distribution has 2 crore turnover and they follow normal current account
Bank of Baroda. The Owner of this organization is Suresh Kr. Singla.
Gunjan Distribution has 1 crore turnover and they follow Current account PNB.
The Owner of this organization is Prasanjeet.
Anand Pharmaceuticals has 50 lakh turnover and they follow Current in Union
Bank. The Owner of this organization is Susil Agarwall.
P.C Distributors has 25 lakh turnover and they follow normal current account.
60
Bikash Medical has 20 lakh turnover and they also follow current account in SBI.
2.5
1.5
0.5
0
Sunrise Gunjan P.C Distribution Anand Bikash Medical
Distribution Distribution Distribution
13. Retailer of Electronics:
I have found five electronics retailers in this siliguri market and like others they
also follow Govt.Bank. These players are Sony Center, Millennium Info system,
Computer land, Mahavir Stores and Sri Krishna Distributor.
Sony Center has 1 crore turnover and they follow normal current account in
Bank of Baroda.
Millennium Info system has 2 crore turnover and they follow Current account in
Bank of India. I have met with Suman Banik and he has given me this
information.
Mahavir Stores has 3 crore turnover and they follow CC in PNB. I have met with
Pradip Agarwal and he has given me this information about their business.
Sri Krishna Distributor has 3 crore turnover and they follow normal current
account in Syndicate Bank. The CC limit of this organization is 70 lakh.
Computer Land has 2 crore turnover and they follow current account in Bank of
India.
61
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Sony Center Millennium Info Mahavir Stores Sri Krishna Computer Land
System Distributor
14. Trader of Jwellery:
Maximum top class dealers are situated in siliguri at Hill Curt road. After survey I
have found top five players of Jwellery. They are Bidhan Jwellery, Diamond
queen Jwellery, Senco Gold, Guinea House, Das Jwellery.
Bidhan Jwellery has 6 crore turnover and they follow CC account in SBI. The CC
interest rate is 13%.
Gunjan Distribution has 3 crore turnover and they follow CC account SBI. I talked
with Ajay Das; he is one of member in this organization.
Diamond Queen has 5 crore turnover and they follow CC in SBI. The Owner of
this organization is Pawan kr. Sinhal.
Senco Gold has 4 crore turnover and they follow CC account in ICICI bank.
Das Jwellery has 2 crore turnover and they also follow current account in SBI.
62
10
9
8
7
6
5
4
3
2
1
0
Bidhan Jwellery Gunjan Distribution Diamond Queen Senco Gold Das Jwellery
15. Trader of Sugar:
All this dealers are situated in siliguri at Nayabazar road. After survey I have
found top five players of Sugar dealer. They are Bengal Agencies, PP Commercial,
Sanjay kr.Rajib kr., S.K Enterprise and Seven days foods (P) Ltd.
Bengal Agencies has 100 crore turnover and they follow CC account in SBI. The
CC interest rate is 11.5%. I have met with Kisan Agarwal and he has given me this
information.
PP Commercial has 18 crore turnover and they follow CC account SBI. I have met
with Rajesh Agarwal; he is one of the members of this organization. They also
follow HDFC and ICICI bank.
S.K Enterprise has 3 crore turnover and they follow CC in SBI.
Sanjay kr. Rajib kr. has 5 crore turnover and they follow current account in SBI. I
have met with Rajib Kr.
Seven days foods (P) Ltd has 4 crore turnover and they follow normal current
account in HDFC.
63
10 100 18
9
8
7
6
5 5
4 4
3 3
2
1
0
Bengal PP S.k Sanjay Kr. Seven days
Agencies Commercial Enterprise Rajib kr. foods (P)
Ltd.
16. Trader of Tea:
Siliguri is very famous for Tea and for me it is very easy to find top five players.
So these players are Sri Rama Tea Manufacturing Co. (P) Ltd., Rai & Co,
Putinbaree Tea Association Ltd, Avinash Tea Co. and Dewkinandan shivshanker.
Sri Rama Tea Manufacturing Co. has 20 crore turnover and they follow CC
account in SBI. The CC interest rate is 11.5%. I have met with Babulal Agarwal
and he has given me this information.
Rai & Co. has 5 crore turnover and they follow CC account in United Bank. I have
met with S.Roy; he is one of the members of this organization.
Putinbaree Tea Association Ltd. has 3 crore turnover and they follow CC in SBI.
Chandanmal Binod Kr. traders has 25 crore turnover and they follow CC in UCO
Bank. I have met with Rambilash Gloyel.
64
Avinash Tea Co. has 6 crore turnover and they follow CC account in SBI and their
CC limit is 31 lakh.
25
20
15
10
0
Shree Rama Tea Rai & Co. Putinbaree Chandanmal Binod Avinash Teac
Manufaturing Co. Kr.
17. Trader of Marbles:
There so many marbles dealers in siliguri and they are Ridhi Sidhi Marbles,
Haryana Marbles, Marbles House, Ganpati Marbles, and Bhawani Marble &
Sanitation.
Ridhi Sidhi Marbles has 20 crore turnover and they follow CC account in IDBI.
The CC interest rate is 11.5%. I have met with Ram Agarwal and he has given me
this information.
Haryana Marbles has 5 crore turnover and they follow CC account in SBI.
Marbles House has 3 crore turnover and they follow CC in SBI. The owner of the
organization is Dalon Mondol.
65
Ganpati Marbles traders has 3 crore turnover and they follow CC in SBI. I have
met with Pramod Maiya.
Bhawani Marble & Sanitation has 2 crore turnover and they follow CC account in
SBI. The owner of the organization is Ashok Goel.
25
20
15
10
0
Ridhi Sidh Haryana Marbles Ganpati Bhawani
Marbles Marbles House Marbles Marble &
Sanitation
66
4.1 Questionnaire
1. Name of the Organization:
2. Address:
……………………………………………………………………………………………………………………………
……………………………………………………………………………………………………..
3. Type of business: …………………………………………………………………………….
4. Vintage of the business: …………………………………………………………………..
5. Name of the person you are speaking:
6. Designation:
a) Manager b) Floor manager c) Partner

d) Proprietor e) Other
7. Contact no:
8. Level of stock:
a) Below 10 lacks b)11-30 lacks c) 31-50 lacks

d) 51 lacks-1 crore e) above 1 crore
9. Paid stock:
a) Below 10 lacks b) 11-30 lacks c) 31-50 lacks

d) 51 lacks-1 crore e) above 1 crore
67
10. Debtors level:
a) Below 20 lacks b) 20-50 lacks c) 50-80 lacks d) Above 1 crore
11. Debtors days:
a) Within 30 days b) Within 2-3 months

c) Within 4-6 months d) above 6 months
12. Turnover (p.a):
a) Below 50 lacks b) 50 lacks-1 crore c) 1 crore-5 crore

d) Above 5 crore
13. Creditors level:
a) Below 1 lack b) 2-5 lacks

c) 6-10 lacks d) Above 10 lacks
14. Existing bankers:
a) SBI b) Standard Chartered c) ICICI Bank

d) HDFC e) AXIS Bank f) Others
15. In which bank are you operating your current account?

………………………………………………………………………………………………..
…………………………………………………………..
68
16. Is it a working capital a/c or a normal current a/c?
………………………………………………………………………..
17. What exactly are you looking for in your bank?

………………………………………………………………………………………………….
………………………………………………………………………………………………….
………………………
18. Do you think that your bank is providing quality customer care services?
a) Yes b) No
19. Your expectations from SCB?
………………………………………………………………………………………………………..
………………………………………………………………………………………………………..
Date.
69
4.2 LIST OF SMEs VISITED
TRADER OF HARDWARE IRON & STEEL

Sl Present
No. Name Contact Person Address & Phone No. Bankers Turnover
Siliguri Builders Pvt. 429/354 Sevoke Road,Sky Star
1 Ltd. Bikash Agarwal Building,Siliguri,Ph No.9232749000 SBI/HDFC 100 crore
Ganesh Steel 2.5 Mile,Sevoke Road,Slg,Ph
2 Syndicate Sanjib Agarwal no.9832060471 SBI 5 crore
2nd Mile,Sevoke Road,SLG,Ph SBI,HDFC,
3 Kundu Complex Samir Kundu no.9434049281 Axis 5 Crore
4 Bajrang Trading CO. Mr.P. K Agarwal Sevoke Road,SLG,Ph no.9832021090 OBC 3 crore
Sankar Lal
5 Durga Iron Stotre Agarwal Sevoke Road,SLG-1,Ph no.2777512 HDFC 3 crore
TRADER OF CEMENT
Sl Present
3rd mile Infront of Sonamotor,Sevoke
1 Sunrise Builders Rajesh Agarwal Road,SLG,Ph no.9434045411 Union Bank 60 Crore
Burdwan Road,SLG,PH
2 Shiv Builders Susil Agarwal no.9434045148 SBI 25 crore
2nd mile,Sevoke Road.Ph
3 M.K.Trading Co. Mahesh Bhansali no.9434044691 IDBI 10 Crore
Builders Steel
4 Center(Ultra Tech) B.P Agarwal Sevoke Road,SLG,Ph no.2777553 SBI 9 crore
Indusind
5 BB Agarwal & Sons KC Dey Road,Ph no. 2430732 Bank 11 Crore
6
TRADER OF PHARMACEUTICALS (WHOLESALER)

Sl Present
Bank Of
1 Sunrise Distribution Suresh Kr. Singla Khudiram Pally Baroda 2 CRORE
2 Gunjan Distributors Prasanjeet S.B road(khudiram Pally) PNB 1 CRORE
Anand
3 Pharmaceuticals Arup Das Khudiram Plalli ,Ph no. 2532396 Union Bank 50 lakh
4 P.c Distributor Khudiram Plalli SBI 25 lakh
5 Bikash Medical Bikash Kr. Khudiram Pally,Ph no.9832356010 SBI 20 lakh
6 B.R Distributers Khudiram Pally,Ph no.2435307 SBI 15 lakh
Shree Shyam S.B road(khudiram Pally),ph
7 Pharmaceuticals M.L Gupta no.9832066171 SBI 19 lakh
8 Tirupati Enterprise Khudiram Pally SBI 10 lakh
Bharat Drug
9 Distributor Sandip Paul Khudiram Pally,ph no.2592920 SBI 18 lakh
TRADER OF ELECTRICALS (WHOLESALER )

Sl Present
Shree Shyam
1 Supplier Manish Golyan Sevoke Road,siliguri SCB 12 crore
Oriented
Sevoke Road,siliguri,Ph Bnak of
2 Shyam Enterprise Pankaj Agarwal no.9434877251 cmmerce 1 Crore
Canara
3 Maheswari Electrics P.K Maheswari Sevoke Road,Siliguri,Ph no.2777557 Bank 2 Crore
70
Sevoke Road,Siligri,Ph no. Canara

4 R.K Electronics Binek Agarwal 9832071000 Bank 2 Crore
Sevoke Road,Siliguri,Ph
5 Bharti Enterprise Babulal Garg no.9832356475 SBI 5 Crore
6 Mahabir Stores Pradip Agarwal no.9932210531 PNB 3 Crore
7 Mahabir Electricals Dhiraj Golyan Sevoke Road,Siligri,Ph no.9932018834 SBI/SCB 5 Crore
OM Prakash
8 Jyoti Enterprise Agarwal Sevoke Road,SLG,PH No.9434082373 SCB 9 Crore
Gurudware Building,Sevoke
9 Atlas Copco N.K agarwal ROAD,SLG,Ph no.2431297 SBI 4 Crore
10 Bharat Electricals Subhas Agarwal Sevoke Road,SLG,Ph no.2777491 PNB 2 Crore
Syndicate
11 Sri Krishna Distributor Ronit Agarwal Nayabazar,SLG,Ph no.2503117 Bank 3 Crore
12 Sanjay Electricals P.K Agarwal Sevoke Road,SLG, Ph no.2533152 BOI 3 Crore
RETAILER OF GARMENTS
Sl Present
Bank of
1 Agarwal Brothers S.K Agarwala Seth Srilal Market,SLG,Ph no.2530348 Baroda 1 crore
HDFC,Bank
of india50
2 Sachin Sourav Retails G.Agarwal H.C Road,SLG,Ph no.6459401 akh 30 lakh
Gouri Sankar Market,SLG,Bidhan Grameen
3 Rony's Manab Dutta Road,SLG,Ph no.2536410 Bank 48 lakh
ICICI
Gouri Sankar Market,SLG,Bidhan Bank,Axis
4 G.M. Dresses Suman Road,SLG,Ph no.2537165 Bank 20 lakh
Guru Nanak Jasbir Gouri Sankar Market,SLG,Bidhan
5 Garments Singh(Sonu) Road,SLG,Ph no.9832328008 Union Bank 40 lakh
Gouri Sankar Market,SLG,Bidhan
6 Pradeep Trading Pradeep Road,SLG,Ph no.9832317075 ICICI 24 lakh
7 Kamal Hosiery P.C Sharma Road,SLG,PH no.9434188388 IDBI 20 lakh
8 J.P Brothers Road,SLG ICICI 50 lakh
9 Modi Garment Road,SLG HDFC,Axis 30 lakh
RETAILER OF ELECTRONICS
Sl Present
Bank of
1 Sony Center Sevoke RoadSLG,Ph no.2641654 Baroda 1 crore
Millennium Info Bank of
2 system Suman Banik Sevoke Road,Slg,Ph no.2641808 India 2 crore
3 Computer Land Sevoke Road Sevoke Road,SLG,Ph no.2642980 BOI 2 crore
4 Mahavir Stores Pradip Agarwal no.9932210531 PNB 3 Crore
Syndicate
5 Sri Krishna Distributor Ronit Agarwal Nayabazar,SLG,Ph no.2503117 Bank 3 Crore
RETAILER OF JEWELLERY
Sl Present
1 Guinea House Ajay Das Hilcurt Road,Siliguri. Ph no.2430446 SBI 3 Crore
Hilcurt Road,Siliguri. Ph
2 Das Jewellery no.9832033325 PNB 2 Crore
3 Jashamati Jewellery Hilcurt Road,Siliguri. Ph AXIS Bank 1 Crore
71
no.9832015251
Hilcurt Road,Siliguri. Ph
4 Senco Gold no.9874027010 SCB,ICICI 4 crore
5 Bidhan Jewellery Hilcurt Road,Siliguri.Ph no.2530358 SBI 6 crore
Diamond queen
6 Jwellers Pawan Kr. Sinhal Seth Srilal Market,SLG,Ph no.2520016 SBI 5 Crore
Chandan Prakash Seth Srilal Market,SLG,Ph
7 Silver Queen Jwellers Sinhal no.9832375446 ICICI 1 Crore
Min 50
8 Ujjwala Jewellery Ram Ch. Pal Hilcurt Road,Siliguri.Ph no.9434377443 SBI akhs
\
TRADER OF TEA
Sl Present
Sri Rama Tea
Manufacturing Co.(p) Naya Bazar,Siliguri,Ph No:
1 Ltd. Babulal Agarwal 9434019301 SBI 20 Crore
133,Hill Cart Road,Siliguri,Ph United
2 Rai & Co. S.Roy no:9832367275 Bank 5 Crore
Putinbaree Tea Ass. Mangturam Road(Khalpara),SLG,Ph
3 Ltd. G.R Agarwal no.9434059998 SBI 8 Crore
Khapara,Ward no.8,SLG,Ph SBI,Union
4 Avinash Tea Co. no.9933808882 bank 6 Crore
Mahesh Kr. Dr.Kalinath Road(Naya Bazar),Ph
5 Rambilas Roshanlal Agarwal no.9832063258 SBI/PNB 50lakhs
Dewkinandan
6 shivshanker Awind Singhal Mahabirsthan,slg,ph:9832010499 SBI 3 crore
M/S Chandan tea
7 corporation Rajib Hillcurt Road,slg,ph:9735000000 Union Bank 2crore
8 Usha tea traders Pradip Ghosh Hillcurt Road,slg,ph:0353-2431283 SBI 2 crore
Chandanmal Binod
9 Kr. Rambilash Gloyel Naya Bazar,Siliguri,Ph no.25022424 UCO 25
MARBLES
Sl Present
3rd mile Sevoke Road,SLG,Ph
1 Ridhi Sidhi Marbles Ram Agarwal no.9332230051 IDBI 20 Crore
2nd mile,Sevoke Road,SLG,Ph
2 Marbles House Dalon Mondol no.9832009987 SBI 3 crore
3rd mile ,Sevoke Road,Ph
3 Haryana Marbles no.9641021325 SBI 5 crore
Burdwan Road,Near Jalpaimore,Ph
4 Bharat Marbles Suresh Dalmia no.9832073766 IDBI 1 crore
Rameshwaram 4th mile,Sevoke Road,SLG,Ph Rajastan
5 Marbles&Tiles Shiv Kr. Agarwal no.9093368972 Bank 2 crore
Balchand 2nd mile,Sevoke Road.Ph
6 Jain Marbles Choraria no.9832032135 SBI 15-20 lakhs
3rd mile,Sevoke Road,SLG,Ph
7 Marble Centre Avinash Mantri no.9933471226 BOB 50-70 lakhs
Bhawani Marble & 2.5 mile,Sevoke road,SLG,Ph
8 Sanitation Ashok Goel no.9832321117/9832035619 SBI 2 Crore
3rd mile, Sevoke Road,SLG,Ph
9 Ganapati Marbles Pramod Maiya no.9832024666 SBI 3 Crore
Kailash
10 Balaji Tiles Chowdhary 2nd Mile,Opp. Prapti Showroom ICICI 60 lakhs
Distributors
Sl Present
1 Lal Chand Amar Suraj Kundolia S.F road,SLG,Ph no. 9434044766 HDFC 5 crore
72
chand
2 Pen corner Ramesh Agarwal Mahabirsthan Road,Slg,Ph no.2504898 Union Bank 1 Crore
Niranjan Network(P) 330,SF road,Behind urbashi Cinema
3 Ltd. Receiption Hall,SLG, Ph no. 9378189003 ICIC Bank 4 Crore
Chandan Kr.
4 Bidya Trader Gupta Mahabirsthan Road,Slg,Ph no.2503403 SBI 1 crore
Dindayal
5 Marda Enterprise Maheswari Nayabazar,SLG,Ph no.923341934 Union Bank 5crore
Mahabirsthan Road, SLG, Ph
6 Mundra Agen Govind Mundra no.9434067111 PNB 1 crore
7 S.p Trading Nirmal Mahabirsthan Road,Slg,Ph no.2778242 SBI 3 crore
73
5. REFERENCES
20. S.K.Bagchi, Bank Finance for ―Small and Medium Enterprises

21. V.K.Chopra, Innovations in SMEs Financing
22. www.ciionline.org
23. www.sme.icici.com
24. www.rbi.com
25. www.standardchartered.co.in
26. www.commerce.nic.in
27. http://dgft.delhi.nic.in/
28. www.sidbi.com
29. www.rbi.org.in
30. www.ecgc.in
31. College library
32. Circulars provided by bank

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A Report on Small & Medium Enterprise Financing

SUMMER TRAINING PROGRAM

REPORT SUBMITTED IN THE PARTIAL FULLFILMENT OF

DSMS BUSINESS SCHOOL

PROF. DR. D. P. SAMANTA

COMPANY GUIDE FACULTY GUIDE

MR. AVISEK DAS (Relationship Manager) PROF. PARTHA CHATTERJEE

Place: Durgapur (Gopal Chandra Saha)

Date: Reg. No. 092510710021

Roll No. 09251009040

Gopal Chandra Saha

“SMALL & MEDIUM ENTERPRISE FINANCING”

Is approved and is acceptable in quality and form

(Internal Examiner) (External Examiner)

This is to certify that the project report entitled

“SMALL & MEDIUM ENTERPRISE FINANCING”

“Masters of Business Administration”

I acknowledge my deepest thanks to my project guide Prof. Partha

I am also grateful to my Parents and my friends, my brother for their

Gopal Chandra Saha

Roll No. 09251009040

S.NO. HEADING AND SUB HEADINGS PAGE

3 Analysis of SME Exposure 28

4 Top Five Players in Siliguri Market (Segment 41

Small and medium sized enterprises (SMEs) are one of the

In India, small and medium industries play a vital role in the

SMEs are a reservoir for the creation of jobs and a source of

Credit is a critical input for the SME Sector. Provision of timely

SMEs developed in a manner, which made it possible for them to

As a result of globalization and liberalization, coupled with WTO

2.1 DEFINITION OF SMES IN INDIA AND WORLD

There is no universal definition of small and medium

The Micro, Small and Medium Enterprises Development Act,

Table 1: Investment Limits of SME's

Classification Investment in Plant and Investment in

Micro Investment in Plant and Machinery Investment in

Small Enterprises Investment in Plant and Machinery Investment in

Medium Investment in Plant and Machinery Investment in

Internationally, SME is categorized with no subtypes. The

1. Tiny Type : Annual turnover up to Rs.2

2.2 SME’S IN INDIA

The SME’s alone contribute to 7% of India’s GDP. As per the

Table2: Performance of SME Sector:

year No of Production Employment Exports

1994-95 2.57 2998.86 14.65 290.68

1995-96 2.65 3626.56 15.26 364.70

1996-97 2.80 4118.58 16.00 392.48

1997-98 2.94 4626.41 16.72 444.42

1998-99 3.08 5206.50 17.15 489.79

1999- 3.21 5728.87 17.85 542.00

2000-01 3.37 6454.96 18.56 599.78

2001-02 3.46 6905.22 19.22 712.44

2002-03 3.67 8243..63 20.07 861.03

2003-04 3.83 9323.54 20.90 NA

2004-05 4.00 10600.87 21.78 NA

2005-06 4.18 12138.00 22.78 NA

2006-07 4.37 14019.39 22.17 NA

2.3 CHALLENGES FACED BY SME’s

Challenges faced by SMEs may be briefly set out as follows:

• Small and medium enterprises particularly the tiny segment of

2.4 Risks Faced by SME Units

2.5 The causes of sickness of SME industries

2.6 Government's Promotional Policy and Support

In order to help the sector integrate with the industry at large