A PROJECT REPORT On

Microfinance Industry in India and SKS Microfinance Ltd

The Report Submitted In Partial Fulfillment of the Requirements For The Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

(Collaborative program of M.S. Ramaiah Management Institute with PRIST University) BY

Mani Shankar Sonkushre Reg. no. CM2091860039

Under the guidance of

Prof Kumuda PR

PRIST UNIVERSITY
Vallam, Thanjavur

M S Ramaiah Management Institute

Page 1

STUDENT S DECLARATION

I hereby declare that the Project Report conducted on Microfinance Industry in India and SKS Microfinance Limited under the guidance of Prof Kumuda PR Submitted in Partial fulfillment of the requirements for the Degree of MASTER OF BUSINESS ADMINISTRATION
Collaborative program with PRIST University

TO M.S.RAMAIAH MANAGEMENT INSTITUTE It is my original work and the same has not been submitted for the award of any other Degree/Diploma/Fellowship or other similar titles or prizes

Place: Bangalore

STUDENT NAME : Mani Shankar Sonkushre

Date:

Reg. No : CM2091860039

M S Ramaiah Management Institute

Page 2

CERTIFICATE

This is to certify that the Project Report on Microfinance Industry in India and SKS Microfinance Ltd Submitted in partial fulfillment of the requirements for

the award of the degree of MASTER OF BUSINESS ADMINISTRATION Of PRIST UNIVERSITY In collaboration with M.S.RAMAIAH MANAGEMENT INSTITUTE

Is a record of bonafide Training carried out by (Mani Shankar Sonkushre, CM2091860039) under my supervision and guidance and that no part of this report has been submitted for the award of any other degree / diploma / fellowship or similar titles or prizes.

FACULTY GUIDE

Signature :

Name

: Kumuda PR

M S Ramaiah Management Institute

Page 3

ACKNOWLEDGEMENT

Guidance, help and encouragement are the essential requirements for successful completion of any project. I owe my gratitude to all those who have helped me in the preparation of this project report. I extend my special gratitude to our beloved director Shri ANANDARAM, Our DEAN & our Co-coordinator Dr Muralidharan H. for inspiring me to take up this project. I wish to acknowledge my sincere gratitude and indebtedness to my project guide Prof Kumuda PR of M.S. RAMAIAH MANAGEMENT INSTITUTE Bangalore for his valuable guidance and constructive suggestions in the preparation of project report. .

Mani Shankar Sonkushre MBA IV Semester M. S. Ramaiah institute of Management Bangalore

M S Ramaiah Management Institute

Page 4

Content
1. Executive summary a) Introduction to Micro Finance Industry b) Role of Microfinance a. Activities in Micro Finance c) Microfinance in India d) Microfinance Models e) Legal Regulations f) Success Factors of Microfinance in India g) Issues related to Microfinance in India 2. Research Design 3. SKS Microfinance a) Company Profile b) Operational Highlights c) Product structure d) Risk and Mitigation 4. Calculation and Analysis 5. Finding and Conclusions 6. Bibliography

M S Ramaiah Management Institute

Page 5

Executive summary :
This project reports gives an insight to the Microfinance industry in India. It covers the Scope, Problems, Risks, Improvement and Benefits of Microfinance Industry in India. Based on Various Data collected from different sources the working of microfinance industry and its process is dealt with a due consideration to all legal and social aspect of country. This report consists of detailed study of Indias largest microfinance company SKS Microfinance. In the report, the valuation of SKS microfinance is done on the basis of financial calculation and ratios. This report shows the working methodology, product structure and Risks mitigation of the company and based on the research and calculation some findings and conclusion is arrived at. Microfinance offers poor people access to basic financial services such as loans, savings, money transfer services and micro insurance, according to the Consultative Group to Assist the Poor, or CGAP(Consultative Group to assist the poor), an independent policy and research organization. The industry emerged to alleviate poverty on the premise that poor people, like everyone else, need a diverse range of financial services to run their business, build assets and reduce vulnerability to fluctuations in their income. Their needs for financial services have been traditionally met through a variety of financial relationships, mostly informal. In the past two decades, different types of financial services providers for poor people have emerged, including non-government organizations, or NGOs; cooperatives; community-based development institutions like Self Help Groups, or SHGs, and credit unions; commercial and state banks and microfinance institutions, or MFIs, offering new possibilities

M S Ramaiah Management Institute

Page 6

Introduction
Microfinance is defined as any activity that includes the provision of financial services such as credit, savings, and insurance to low income individuals which fall just above the nationally defined poverty line, and poor individuals which fall below that poverty line, with the goal of creating social value. The creation of social value includes poverty alleviation and the broader impact of improving livelihood opportunities through the provision of capital for micro enterprise, and insurance and savings for risk mitigation and consumption smoothing. A large variety of actors provide microfinance in India, using a range of microfinance delivery methods. Since the ICICI Bank in India, various actors have endeavored to provide access to financial services to the poor in creative ways. Governments also have piloted national programs, NGOs have undertaken the activity of raising donor funds for onlending, and some banks have partnered with public organizations or made small inroads themselves in providing such services. This has resulted in a rather broad definition of microfinance as any activity that targets poor and low-income individuals for the provision of financial services. The range of activities undertaken in microfinance include group lending, individual lending, the provision of savings and insurance, capacity building, and agricultural business development services.

Microfinance Definition
According to International Labor Organization (ILO), Microfinance is an economic development approach that involves providing financial services through institutions to low income clients. In India, Microfinance has been defined by The National Microfinance Taskforce, 1999 as provision of thrift, credit and other financial services and products of M S Ramaiah Management Institute
Page 7

very small amounts to the poor in rural, semi-urban or urban areas for enabling them to raise their income levels and improve living standards. "The poor stay poor, not because they are lazy but because they have no access to capital." The dictionary meaning of finance is management of money. The management of money denotes acquiring & using money. Micro Finance is buzzing word, used when financing for micro entrepreneurs. Concept of micro finance is emerged in need of meeting special goal to empower under-privileged class of society, women, and poor, downtrodden by natural reasons or men made; caste, creed, religion or otherwise. The principles of Micro Finance are founded on the philosophy of cooperation and its central values of equality, equity and mutual self-help. At the heart of these principles are the concept of human development and the brotherhood of man expressed through people working together to achieve a better life for themselves and their children. Traditionally micro finance was focused on providing a very standardized credit product. The poor, just like anyone else, (in fact need like thirst) need a diverse range of financial instruments to be able to build assets, stabilize consumption and protect themselves against risks. Thus, we see a broadening of the concept of micro finance--- our current challenge is to find efficient and reliable ways of providing a richer menu of micro finance products. Micro Finance is not merely extending credit, but extending credit to those who require most for their and familys survival. It cannot be measured in term of quantity, but due weightage to quality measurement. How credit availed is used to survive and grow with limited means.

M S Ramaiah Management Institute

Page 8

Who are the clients of micro finance?

The typical micro finance clients are low-income persons that do not have access to formal financial institutions. Micro finance clients are typically selfemployed, often household-based entrepreneurs. In rural areas, they are usually small farmers and others who are engaged in small income-generating activities such as food processing and petty trade. In urban areas, micro finance activities are more diverse and include shopkeepers, service providers, artisans, street vendors, etc. Micro finance clients are poor and vulnerable non-poor who have a relatively unstable source of income. Access to conventional formal financial institutions, for many reasons, is inversely related to income: the poorer you are, the less likely that you have access. On the other hand, the chances are that, the poorer you are, the more expensive or onerous informal financial arrangements. Moreover, informal arrangements may not suitably meet certain financial service needs or may exclude you anyway. Individuals in this excluded and under-served market segment are the clients of micro finance. As we broaden the notion of the types of services micro finance encompasses, the potential market of micro finance clients also expands. It depends on local conditions and political climate, activeness of cooperatives, SHG & NGOs and support mechanism. For instance, micro credit might have a far more limited market scope than say a more diversified range of financial services, which includes various types of savings products, payment and remittance services, and various insurance products. For example, many very poor farmers may not really wish to borrow, but rather, would like a safer place to save the proceeds from their harvest as these are consumed over several months by the requirements of daily M S Ramaiah Management Institute
Page 9

living. Central government in India has established a strong & extensive link between NABARD (National Bank for Agriculture & Rural Development), State Cooperative Bank, District Cooperative Banks, Primary Agriculture & Marketing Societies at national, state, district and village level.

Financial needs and financial services

In developing economies and particularly in the rural areas, many activities that would be classified in the developed world as financial are not monetized: that is, money is not used to carry them out. Almost by definition, poor people have very little money. But circumstances often arise in their lives in which they need money or the things money can buy. Poors have several types of needs:
y

Lifecycle Needs: such as weddings, funerals, childbirth, education, homebuilding, widowhood, old age. Personal Emergencies: such as sickness, injury, unemployment, theft, harassment or death. isasters: such as fires, floods, cyclones and man-made events like war or bulldozing of dwellings.

Investment Opportunities: expanding a business, buying land or equipment, improving housing, securing a job (which often requires paying a large bribe), etc.

Poor people find creative and often collaborative ways to meet these needs, primarily through creating and exchanging different forms of non-cash value.

M S Ramaiah Management Institute

Page 10

Common substitutes for cash vary from country to country but typically include livestock, grains, jewellery and precious metals. Microfinance began to develop as an industry. In the 2000s, the microfinance industrys objective is to satisfy the unmet demand on a much larger scale, and to play a role in reducing poverty. While much progress has been made in developing a viable, commercial microfinance sector in the last few decades, several issues remain that need to be addressed before the industry will be able to satisfy massive worldwide demand.

Role of Microfinance:
The micro credit of microfinance progamme was first initiated in the year 1976 in Bangladesh with promise of providing credit to the poor without collateral , alleviating poverty and unleashing human creativity and endeavor of the poor people. Microfinance impact studies have demonstrated that Microfinance helps poor households meet basic needs and protects them against risks. The use of financial services by low-income households leads to improvements in household economic welfare and enterprise stability and growth. By supporting womens economic participation, microfinance empowers women, thereby promoting gender-equity and improving household well being.

The level of impact relates to the length of time clients have had access to financial services.

M S Ramaiah Management Institute

Page 11

Activities in Microfinance
Microcredit: It is a small amount of money loaned to a client by a bank or other institution. Microcredit can be offered, often without collateral, to an individual or through group lending. Micro savings: These are deposit services that allow one to save small amounts of money for future use. Often without minimum balance requirements, these savings accounts allow households to save in order to meet unexpected expenses and plan for future expenses. Micro insurance: It is a system by which people, businesses and other organizations make a payment to share risk. Access to insurance enables entrepreneurs to concentrate more on developing their businesses while mitigating other risks affecting property, health or the ability to work. Remittances: These are transfer of funds from people in one place to people in another, usually across borders to family and friends. Compared with other sources of capital that can fluctuate depending on the political or economic climate, remittances are a relatively steady source of funds. M S Ramaiah Management Institute
Page 12

Microfinance in India
At present lending to the economically active poor both rural and urban is pegged at around Rs 7000 crore in the Indian banks credit outstanding. As against this, according to even the most conservative estimates, the total demand for credit requirements for this part of Indian society is somewhere around Rs 2,00,000 crore. Microfinance changing the face of poor India Micro-Finance is emerging as a powerful instrument for poverty alleviation in the new economy. In India, micro-Finance scene is dominated by Self Help Groups (SHGs) - Banks linkage Programme, aimed at providing a cost effective mechanism for providing financial services to the 'unreached poor'. In the Indian context terms like "small and marginal farmers", " rural artisans" and "economically weaker sections" have been used to broadly define micro-finance customers. Research across the globe has shown that, over time, microfinance clients increase their income and assets, increase the number of years of schooling their children receive, and improve the health and nutrition of their families. A more refined model of micro-credit delivery has evolved lately, which emphasizes the combined delivery of financial services along with technical assistance, and agricultural business development services. When compared to the wider SHG bank linkage movement in India, private MFIs have had limited outreach. However, we have seen a recent trend of larger microfinance institutions transforming into Non-Bank Financial Institutions (NBFCs). This changing face of

M S Ramaiah Management Institute

Page 13

microfinance in India appears to be positive in terms of the ability of microfinance to attract more funds and therefore increase outreach. In terms of demand for micro-credit or micro-finance, there are three segments, which demand funds. They are:
y

At the very bottom in terms of income and assets, are those who are landless and engaged in agricultural work on a seasonal basis, and manual labourers in forestry, mining, household industries, construction and transport. This segment requires, first and foremost, consumption credit during those months when they do not get labour work, and for contingencies such as illness. They also need credit for acquiring small productive assets, such as livestock, using which they can generate additional income.

The next market segment is small and marginal farmers and rural artisans, weavers and those self-employed in the urban informal sector as hawkers, vendors, and workers in household micro-enterprises. This segment mainly needs credit for working capital, a small part of which also serves consumption needs. This segment also needs term credit for acquiring additional productive assets, such as irrigation pumpsets, borewells and livestock in case of farmers, and equipment (looms, machinery) and worksheds in case of non-farm workers.

The third market segment is of small and medium farmers who have gone in for commercial crops such as surplus paddy and wheat, cotton, groundnut, and others engaged in dairying, poultry, fishery, etc. Among nonfarm activities, this segment includes those in villages and slums, engaged in

M S Ramaiah Management Institute

Page 14

processing or manufacturing activity, running provision stores, repair workshops, tea shops, and various service enterprises. These persons are not always poor, though they live barely above the poverty line and also suffer from inadequate access to formal credit. These are the people who require money and with Microfinance it is possible. Right now the problem is that, it is SHGs' which are doing this and efforts should be made so that the big financial institutions also turn up and start supplying funds to these people.Today India is facing major problem in reducing poverty. About 25 million people in India are under below poverty line. With low per capita income, heavy population pressure, prevalence of massive

unemployment and underemployment , low rate of capital formation , misdistribution of wealth and assets , prevalence of low technology and poor economics organization and instability of output of agriculture production and related sectors have made India one of the poor countries of the world. Present Scenario of India: India falls under low income class according to World Bank. It is second populated country in the world and around 70 % of its population lives in rural area. 60% of people depend on agriculture, as a result there is chronic underemployment and per capita income is only $ 3262. This is not enough to provide food to more than one individual . The obvious result is abject poverty , low rate of education, low sex ratio, exploitation. The major factor account for high incidence of rural poverty is the low asset base. According to Reserve Bank of India, about 51 % of people house possess only 10% of the total asset of India This has resulted low production capacity both in agriculture (which contribute around

M S Ramaiah Management Institute

Page 15

22-25% of GDP ) and Manufacturing sector. Rural people have very low access to institutionalized credit( from commercial bank). Poverty alleviation programmes and concepualisation of Microfinance: There has been continuous efforts of planners of India in addressing the poverty . They Have come up with development programmes like Integrated Rural Development progamme (IRDP), National Rural Employment Programme (NREP) , Rural Labour Employment Guarantee Programme (RLEGP) etc. But these progamme have not been able to create massive impact in poverty alleviation. The production oriented approach of planning without altering the mode of production could not but result of the gains of development by owners of instrument of production. The mode of production does remain same as the owner of the instrument have low access to credit which is the major factor of production. Thus in Nineties National bank for agriculture and rural development(NABARD) launches pilot projects of Microfinance to bridge the gap between demand and supply of funds in the lower rungs of rural economy. Microfinance . the buzzing word of this decade was meant to cure the illness of rural economy. With this concept of Self Reliance, Self Sufficiency and Self Help gained momentum. The Indian microfinance is dominated by Self Help Groups (SHGs) and their linkage to Banks. Deprived of the basic banking facilities, the rural and semi urban Indian masses are still relying on informal financing intermediaries like money lenders, family members, friends etc.

M S Ramaiah Management Institute

Page 16

Distribution of Indebted Rural Households: Agency wise

Credit Agency Government Cooperative Societies Commercial banks and RRBs Insurance Provident Fund Other Institutional Sources All Institutional Agencies Landlord Agricultural Moneylenders Professional Moneylenders Relatives and Friends Others All Non Institutional Agencies All Agencies Percentage of Rural Households 6.1 21.6 33.7 0.3 0.7 1.6 64.0 4.0 7.0 10.5 5.5 9.0 36.0 100.0

Source: Debt and Investment Survey, GOI Seeing the figures from the above table, it is evident that the share of institutional credit is much more now. The above survey result shows that till 1991, institutional credit accounted for around two-thirds of the credit requirement of rural households. This shows a comparatively better penetration of the banking and financial institutions in rural India.

M S Ramaiah Management Institute

Page 17

Percentage distribution of debt among indebted Rural Labor Households by source of debt :
Sr. No. Source of debt Households With cultivated land 1 2 3 4 5 6 7 8 Government Co-operative Societies Banks Employers Money lenders Shop-keepers Relatives/Friends Other Sources Total 4.99 16.78 19.91 5.35 28.12 6.76 14.58 3.51 100.00 Without cultivated land 5.76 9.46 14.55 8.33 35.23 7.47 15.68 3.52 100.00 5.37 13.09 17.19 6.86 31.70 7.13 15.14 3.52 100.00 All

Source: Rural labor enquiry report on indebtedness among rural labor households The table above reveals that most of the rural labour households prefer to raise loan from the non-institutional sources. About 64% of the total debt requirement of these households was met by the non-institutional sources during 1999-2000. Money lenders alone provided debt (Rs.1918) to the tune of 32% of the total debt of these households as against 28% during 1993-94. Relatives and friends and shopkeepers have been two other sources which together accounted for about 22% of the total debt at all-India level.

M S Ramaiah Management Institute

Page 18

The institutional sources could meet only 36% of the total credit requirement of the rural labour households during 1999-2000 with only one percent increase over the previous survey in 1993-94. Among the institutional sources of debt, the banks continued to be the single largest source of debt meeting about 17 percent of the total debt requirement of these households. In comparison to the previous enquiry, the dependence on co-operative societies has increased considerably in 1999-2000. During 1999-2000 as much as 13% of the debt was raised from this source as against 8% in 1993-94. However, in the case of the banks and the government agencies it decreased marginally from 18.88% and 8.27% to 17.19% and 5.37% respectively during 1999-2000 survey.

M S Ramaiah Management Institute

Page 19

Relative share of Borrowing of Cultivator Households (in per cent)

Sources of Credit Non Institutional Of which: Moneylenders Institutional Of which: Cooperative Societies,etc Commercial banks Unspecified Total 0.9 100.0 0.6 100.0 2.4 100.0 28.8 100.0 35.2 3.1 100.0 26.3 100.0 3.3 2.6 22.0 29.8 30.0 30.2 69.7 7.3 49.2 18.7 36.1 31.7 16.1 63.2 17.5 66.3 26.8 61.1 1951 92.7 1961 81.3 1971 68.3 1981 36.8 1991 30.6 2002* 38.9

Source: All India Debt and Investment Surveys

Table shows the increasing influence of moneylenders in the last decade. The share of moneylenders in the total non institutional credit was declining till 1981, started picking up from the 1990s and reached 27 per cent in 2001. At the same time the share of commercial banks in institutional credit has come down by almost the same percentage points during this period. Though, the share of cooperative societies is increasing continuously, the growth has flattened during the last three decades

M S Ramaiah Management Institute

Page 20

Distribution based on Asset size of Rural Households (in per cent).

Household Assets (Rs Institutional 000) Agency NonInstitutional Agency Less than 5 5-10 10-20 20-30 30-50 50-70 70-100 100-150 150-250 250 and above All classes 42 47 44 68 55 53 61 61 68 81 66 58 53 56 32 45 47 39 39 32 19 34 100 100 100 100 100 100 100 100 100 100 100 All

Source: Debt and Investment Survey, GoI, 1992 The households with a lower asset size were unable to find financing options from formal credit disbursement sources. This was due to the requirement of physical collateral by banking and financial institutions for disbursing credit. For households with less than Rs 20,000 worth of physical assets, the most convenient source of credit was non institutional agencies like landlords, moneylenders, relatives, friends, etc. Looking at the findings of the study commissioned by Asia technical Department of the World Bank (1995), the purpose or the reason behind taking credit by the rural poor was consumption credit, savings, production credit and insurance. Consumption credit constituted two-thirds of the credit usage within M S Ramaiah Management Institute
Page 21

which almost three-fourths of the demand was for short periods to meeting emergent needs such as illness and household expenses during the lean season. Almost entire demand for the consumption credit was met by informal sources at high to exploitive interest rates that varied from 30 to 90 per cent per annum. Almost 75 per cent of the production credit (which accounted for about one-third of the total credit availed of by the rural masses) was met by the formal sector, mainly banks and cooperatives.

Banking Expansion
Starting in the late 1960s, India was the home to one of the largest state interventions in the rural credit market. This phase is known as the Social Banking phase.It witnessed the nationalization of existing private commercial banks, massive expansion of branch network in rural areas, mandatory directed credit to priority sectors of the economy, subsidized rates of interest and creation of a new set of regional rural banks (RRBs) at the district level and a specialized apex bank for agriculture and rural development (NABARD) at the national level. The Net State Domestic Product (NSDP) is a measure of the economic activity in the state and comparing it with the utilization of bank credit or bank deposits indicates how much economic activity is being financed by the banks and whether there exists untapped potential for increasing deposits in that state. E.g. In the year 2003-2004 the percentage of bank deposits to NSDP is pretty high at around 75%-80% in Bihar and Jharkhand or these states are not as under banked as thought to be

M S Ramaiah Management Institute

Page 22

Micro Finance Models :

y

Micro Finance Institutions (MFIs): MFIs are an extremely heterogeneous

group comprising NBFCs, societies, trusts and cooperatives. They are provided financial support from external donors and apex institutions including the Rashtriya Mahila Kosh (RMK), SIDBI Foundation for micro-credit and NABARD and employ a variety of ways for credit delivery. Since 2000, commercial banks including Regional Rural Banks have been providing funds to MFIs for on lending to poor clients. Though initially, only a handful of NGOs were into financial intermediation using a variety of delivery methods, their numbers have increased considerably today. While there is no published data on private MFIs operating in the country, the number of MFIs is estimated to be around 800. Legal Forms of MFIs in India
Types of MFIs Estimated Legal Acts under which Registered Number* 1. Not for Profit MFIs a.) NGO - MFIs b.) Non-profit Companies 2. Mutual Benefit MFIs Mutually Aided Cooperative Societies (MACS) and similarly set up institutions 3. For Profit MFIs Non-Banking Financial Companies (NBFCs) Total 400 to 500 10 200 to 250 Indian Companies Act, 1956 6 700 - 800 Reserve Bank of India Act, 1934 Mutually Aided Cooperative Societies Act enacted by State Government Societies Registration Act, 1860 or similar Provincial Act Indian Trust Act, 1882 Section 25 of the Companies Act, 1956

M S Ramaiah Management Institute

Page 23

y Bank Partnership Model

This model is an innovative way of financing MFIs. The bank is the lender and the MFI acts as an agent for handling items of work relating to credit monitoring, supervision and recovery. In other words, the MFI acts as an agent and takes care of all relationships with the client, from first contact to final repayment. The model has the potential to significantly increase the amount of funding that MFIs can leverage on a relatively small equity base. A sub - variation of this model is where the MFI, as an NBFC, holds the individual loans on its books for a while before securitizing them and selling them to the bank. Such refinancing through securitization enables the MFI enlarged funding access. If the MFI fulfils the true sale criteria, the exposure of the bank is treated as being to the individual borrower and the prudential exposure norms do not then inhibit such funding of MFIs by commercial banks through the securitization structure.

y Banking Correspondents
The proposal of banking correspondents could take this model a step further extending it to savings. It would allow MFIs to collect savings deposits from the poor on behalf of the bank. It would use the ability of the MFI to get close to poor clients while relying on the financial strength of the bank to safeguard the deposits. This regulation evolved at a time when there were genuine fears that flyby-night agents purporting to act on behalf of banks in which the people have confidence could mobilize savings of gullible public and then vanish with them. It remains to be seen whether the mechanics of such relationships can be worked out in a way that minimizes the risk of misuse.

M S Ramaiah Management Institute

Page 24

y Service Company Model

Under this model, the bank forms its own MFI, perhaps as an NBFC, and then works hand in hand with that MFI to extend loans and other services. On paper, the model is similar to the partnership model: the MFI originates the loans and the bank books them. But in fact, this model has two very different and interesting operational features:

(a) The MFI uses the branch network of the bank as its outlets to reach clients. This allows the client to be reached at lower cost than in the case of a standalone MFI. In case of banks which have large branch networks, it also allows rapid scale up. In the partnership model, MFIs may contract with many banks in an arms length relationship. In the service company model, the MFI works specifically for the bank and develops an intensive operational cooperation between them to their mutual advantage.

(b) The Partnership model uses both the financial and infrastructure strength of the bank to create lower cost and faster growth. The Service Company Model has the potential to take the burden of overseeing microfinance operations off the management of the bank and put it in the hands of MFI managers who are focused on microfinance to introduce additional products, such as individual loans for SHG graduates, remittances and so on without disrupting bank operations and provide a more advantageous cost structure for microfinance.

M S Ramaiah Management Institute

Page 25

y Legal Regulations
Banks in India are regulated and supervised by the Reserve Bank of India (RBI) under the RBI Act of 1934, Banking Regulation Act, Regional Rural Banks Act, and the Cooperative Societies Acts of the respective state governments for cooperative banks. NBFCs are registered under the Companies Act, 1956 and are governed under the RBI Act. There is no specific law catering to NGOs although they can be registered under the Societies Registration Act, 1860, the Indian Trust Act, 1882, or the relevant state acts. There has been a strong reliance on self-regulation for NGO MFIs and as this applies to NGO MFIs mobilizing deposits from clients who also borrow. This tendency is a concern due to enforcement problems that tend to arise with self-regulatory organizations. In January 2000, the RBI essentially created a new legal form for providing microfinance services for NBFCs registered under the Companies Act so that they are not subject to any capital or liquidity requirements if they do not go into the deposit taking business. Absence of liquidity requirements is concern to the safety of the sector.

M S Ramaiah Management Institute

Page 26

Success Factors of Micro-Finance in India

Over the last ten years, successful experiences in providing finance to small entrepreneur and producers demonstrate that poor people, when given access to responsive and timely financial services at market rates, repay their loans and use the proceeds to increase their income and assets. This is not surprising since the only realistic alternative for them is to borrow from informal market at an interest much higher than market rates. Community banks, NGOs and grass root savings and credit groups around the world have shown that these microenterprise loans can be profitable for borrowers and for the lenders, making microfinance one of the most effective poverty reducing strategies. A. For NGOs 1. The field of development itself expands and shifts emphasis with the pull of ideas, and NGOs perhaps more readily adopt new ideas, especially if the resources required are small, entry and exit are easy, tasks are (perceived to be) simple and peoples acceptance is high all characteristics (real or presumed) of microfinance.

2. Canvassing by various actors, including the National Bank for Agriculture and Rural Development (NABARD), Small Industries Development Bank of India (SIDBI), Friends of Womens World Banking (FWWB), Rashtriya Mahila Kosh (RMK), Council for Advancement of Peoples Action and Rural Technologies (CAPART), Rashtriya Gramin Vikas Nidhi (RGVN), various donor funded programmes especially by the International Fund for Agricultural Development (IFAD), United Nations Development Programme (UNDP), World Bank and Department for International Development, UK (DFID)], and lately commercial M S Ramaiah Management Institute
Page 27

banks, has greatly added to the idea pull. Induced by the worldwide focus on microfinance, donor NGOs too have been funding microfinance projects. One might call it the supply push.

3. All kinds of things from khadi spinning to Nadep compost to balwadis do not produce such concrete results and sustained interest among beneficiaries as microfinance. Most NGO-led microfinance is with poor women, for whom access to small loans to meet dire emergencies is a valued outcome. Thus, quick and high customer satisfaction is the USP that has attracted NGOs to this trade.

4. The idea appears simple to implement. The most common route followed by NGOs is promotion of SHGs. It is implicitly assumed that no technical skill is involved. Besides, external resources are not needed as SHGs begin with their own savings. Those NGOs that have access to revolving funds from donors do not have to worry about financial performance any way. The chickens will eventually come home to roost but in the first flush, it seems all so easy.

5. For many NGOs the idea of organising forming a samuha has inherent appeal. Groups connote empowerment and organising women is a double bonus.

6. Finally, to many NGOs, microfinance is a way to financial sustainability. Especially for the medium-to-large NGOs that are able to access bulk funds for onlending, for example from SIDBI, the interest rate spread could be an attractive source of revenue than an uncertain, highly competitive and increasingly difficultto-raise donor funding. M S Ramaiah Management Institute
Page 28

B. For Financial Institutions and banks Microfinance has been attractive to the lending agencies because of demonstrated sustainability and of low costs of operation. Institutions like SIDBI and NABARD are hard nosed bankers and would not work with the idea if they did not see a long term engagement which only comes out of sustainability (that is economic attractiveness). On the supply side, it is also true that it has all the trappings of a business enterprise, its output is tangible and it is easily understood by the mainstream. This also seems to sound nice to the government, which in the post liberalisation era is trying to explain the logic of every rupee spent. That is the reason why microfinance has attracted mainstream institutions like no other developmental project. Perhaps the most important factor that got banks involved is what one might call the policy push. Given that most of our banks are in the public sector, public policy does have some influence on what they will or will not do. In this case, policy was followed by diligent, if meandering, promotional work by NABARD. The policy change about a decade ago by RBI to allow banks to lend to SHGs was initially followed by a seven-page memo by NABARD to all bank chairmen, and later by sensitisation and training programmes for bank staff across the country. Several hundred such programmes were conducted by NGOs alone, each involving 15 to 20 bank staff, all paid for by NABARD. The policy push was sweetened by the NABARD refinance scheme that offers much more favourable terms (100% refinance, wider spread) than for other rural lending by banks. NABARD also did some system setting work and banks lately have been given targets. The canvassing, training, refinance and close follow up by NABARD has resulted in widespread bank involvement. M S Ramaiah Management Institute
Page 29

Moreover, for banks the operating cost of microfinance is perhaps much less than for pure MFIs. The banks already have a vast network of branches. To the extent that an NGO has already promoted SHGs and the SHG portfolio is performing better than the rest of the rural (if not the entire) portfolio, microfinance via SHGs in the worst case would represent marginal addition to cost and would often reduce marginal cost through better capacity utilisation. In the process the bank also earns brownie points with policy makers and meets its priority sector targets. It does not take much analysis to figure out that the market for financial services for the 50-60 million poor households of India, coupled with about the same number who are technically above the poverty line but are severely underserved by the financial sector, is a very large one. Moreover, as in any emerging market, though the perceived risks are higher, the spreads are much greater. The traditional commercial markets of corporates, business, trade, and now even housing and consumer finance are being sought by all the banks, leading to price competition and wafer thin spreads. Further, bank-groups are motivated by a number of cross-selling opportunities in the market, for deposits, insurance, remittances and eventually mutual funds. Since the larger banks are offering all these services now through their group companies, it becomes imperative for them to expand their distribution channels as far and deep as possible, in the hope of capturing the entire financial services business of a household. Finally, both agri-input and processing companies such as EID Parry, fastmoving consumer goods (FMCG) companies such as Hindustan Levers, and consumer durable companies such as Philips have realised the potential of this big market and are actively using SHGs as entry points. Some amount of free-riding is

M S Ramaiah Management Institute

Page 30

taking place here by companies, for they are using channels which were built at a significant cost to NGOs, funding agencies and/or the government. On the whole, the economic attractiveness of microfinance as a business is getting established and this is a sure step towards mainstreaming. We know that mainstreaming is a mixed blessing, and one tends to exchange scale at the cost of objectives. So it needs to be watched carefully.

M S Ramaiah Management Institute

Page 31

Issues in Microfinance
y Sustainability The first challenge relates to sustainability. MFI model is comparatively costlier in terms of delivery of financial services. An analysis of 36 leading MFIs by Jindal & Sharma shows that 89% MFIs sample were subsidy dependent and only 9 were able to cover more than 80% of their costs. This is partly explained by the fact that while the cost of supervision of credit is high, the loan volumes and loan size is low. It has also been commented that MFIs pass on the higher cost of credit to their clients who are interest insensitive for small loans but may not be so as loan sizes increase. It is, therefore, necessary for MFIs to develop strategies for increasing the range and volume of their financial services. y Lack of Capital The second area of concern for MFIs, which are on the growth path, is that they face a paucity of owned funds. This is a critical constraint in their being able to scale up. Many of the MFIs are socially oriented institutions and do not have adequate access to financial capital. As a result they have high debt equity ratios. Presently, there is no reliable mechanism in the country for meeting the equity requirements of MFIs. The IPO issue by Mexico based Compartamos was not accepted by purists as they thought it defied the mission of an MFI. The IPO also brought forth the issue of valuation of an MFI.The book value multiple is currently the dominant valuation methodology in microfinance investments. In the case of start up MFIs, using a book value multiple does not do justice to the underlying value of the business. Typically, start ups are loss making and hence the book value continually reduces over time until they hit break even point. A book value

M S Ramaiah Management Institute

Page 32

multiplier to value start ups would decrease the value as the organization uses up capital to build its business, thus accentuating the negative rather than the positive. y Financial service delivery Another challenge faced by MFIs is the inability to access supply chain. This challenge can be overcome by exploring synergies between microfinance institutions with expertise in credit delivery and community mobilization and businesses operating with production supply chains such as agriculture. The latter players who bring with them an understanding of similar client segments, ability to create microenterprise opportunities and willingness to nurture them, would be keen on directing microfinance to such opportunities. This enables MFIs to increase their client base at no additional costs. Those businesses that procure from rural India such as agriculture and dairy often identify finance as a constraint to value creation. Such businesses may find complementarities between an MFIs skills in management of credit processes and their own strengths in supply chain management. ITC Limited, with its strong supply chain logistics, rural presence and an innovative transaction platform, the e-choupal, has started exploring synergies with financial service providers including MFIs through pilots with vegetable vendors and farmers. Similarly, large FIs such as Spandana foresee a larger role for themselves in the rural economy ably supported by value creating partnerships with players such as Mahindra and Western Union Money Transfer. ITC has initiated a pilot project called pushcarts scheme along with BASIX (a microfinance organization in Hyderabad). Under this pilot, it works with twenty women head load vendors selling vegetables of around 10- 15 kgs per day. BASIX extends working capital loans of Rs.10,000/- , capacity building and business M S Ramaiah Management Institute
Page 33

development support to the women. ITC provides support through supply chain innovations by: 1. Making the Choupal Fresh stores available to the vendors, this avoids the hassle of bargaining and unreliability at the traditional mandis (local vegetable markets). The women are able to replenish the stock from the stores as many times in the day as required. This has positive implications for quality of the produce sold to the end consumer. 2. Continuously experimenting to increase efficiency, augmenting incomes and reducing energy usage across the value chain. For instance, it has forged a partnership with National Institute of Design (NID), a pioneer in the field of design education and research, to design user-friendly pushcarts that can reduce the physical burden. 3. Taking lessons from the pharmaceutical and telecom sector to identify technologies that can save energy and ensure temperature control in push carts in order to maintain quality of the vegetables throughout the day. The model augments the incomes of the vendors from around Rs.30-40 per day to an average of Rs.150 per day. From an environmental point of view, push carts are much more energy efficient as opposed to fixed format retail outlets. y HR Issues Recruitment and retention is the major challenge faced by MFIs as they strive to reach more clients and expand their geographical scope. Attracting the right talent proves difficult because candidates must have, as a prerequisite, a mindset that fits with the organizations mission.

M S Ramaiah Management Institute

Page 34

Many mainstream commercial banks are now entering microfinance, who are poaching staff from MFIs and MFIs are unable to retain them for other job opportunities. 85% of the poorest clients served by microfinance are women. However, women make up less than half of all microfinance staff members, and fill even fewer of the senior management roles. The challenge in most countries stems from cultural notions of womens roles, for example, while women are single there might be a greater willingness on the part of womens families to let them work as front line staff, but as soon as they marry and certainly once they start having children, it becomes unacceptable. Long distances and long hours away from the family are difficult for women to accommodate and for their families to understand. y Microinsurance First big issue in the microinsurance sector is developing products that really respond to the needs of clients and in a way that is commercially viable. Secondly, there is strong need to enhance delivery channels. These delivery channels have been relatively weak so far. Microinsurance companies offer minimal products and do not want to go forward and offer complex products that may respond better. Microinsurance needs a delivery channel that has easy access to the low-income market, and preferably one that has been engaged in financial transactions so that they have controls for managing cash and the ability to track different individuals. Thirdly, there is a need for market education. People either have no information about microinsurance or they have a negative attitude towards it. We have to counter that. We have to somehow get people - without having to sit down at a table - to understand what insurance is, and why it benefits them. That will help to M S Ramaiah Management Institute
Page 35

demystify microinsurance so that when agents come, people are willing to engage with them. y Adverse selection and moral hazard The joint liability mechanism has been relied upon to overcome the twin issues of adverse selection and moral hazard. The group lending models are contingent on the availability of skilled resources for group promotion and entail a gestation period of six months to one year. However, there is not sufficient understanding of the drivers of default and credit risk at the level of the individual. This has constrained the development of individual models of micro finance. The group model was an innovation to overcome the specific issue of the quality of the portfolio, given the inability of the poor to offer collateral. However, from the perspective of scaling up micro financial services, it is important to proactively discover models that will enable direct finance to individuals

M S Ramaiah Management Institute

Page 36

SKS Microfinance Ltd.

M S Ramaiah Management Institute

Page 37

y Research Objective : Objective of this research is to study the performance of SKS microfinance Ltd in financial terms and also the strategy adopted by the firm to mitigate the various risks. It also covers various aspects of Microfinance industry with respect to the SKS Microfinance Ltd. y Research methodology : The methodology adopted in this research work is is both , Analytical and financial calculation. Various Risk factors are considered which arises from different area of business and their impact are analyzed. Through financial ratios, the performance of the firm is calculated and interpreted. Study of business activities is done based on the historical data of the firm. These data consists of their Operations, Product Structure and Financial statement. This research consists of following heads. a) Study of Company Profile. b) Data Collection from various Sources. c) Financial Calculations. d) Interpretation of calculation.

M S Ramaiah Management Institute

Page 38

Company Profile SKS Microfinance is the largest microfinance institution in India and is widely considered one of the fastest growing microfinance institutions worldwide. The company was founded in 1998 and transitioned from a non-profit to nonbanking financial company (NBFC) in 2005. SKS model is based on the highly successful Grameen Banks Joint Liability Group model of lending, where the company provides small value, collateral-free loans for income generation to poor women in groups. According to Mix Market, the average loan balance is US$166, and the annual effective interest rate varies between 26.7% and 31.4%. This model has proven extremely successful with over 99% repayment rates due to group model, which ensures credit discipline through mutual support and peer pressure. As of March 31, 2010, SKS had 6.78 million women borrowers with total lifetime disbursements worth more than US$ 3 billion. Since its founding, SKS has expanded into 19 states in India and has grown to 2,029 branches. The company currently employs over 21,000 individuals. During FY2010, the organization recruited and trained 700 staff, opened 55 branches, and enrolled 200,000 new SKS members each month.

M S Ramaiah Management Institute

Page 39

y Operational Highlights

A critical component of SKS

operational effectiveness is its use of

technology. As this business model requires millions of transactions across a diverse geography, SKS has developed a sophisticated technology platform. HDFC Securities states that this tool allows simplified data entry, improved accuracy and efficiency of loan collection, and improved fraud detection. Further, the collected information allows for superior product development and management decision making. In addition to its operational success, SKS has proven itself as a profitable organization. In FY2010, the Company had total revenues of US$207 million and Profit After Tax (PAT) of US$38 million. Its PAT has a CAGR of 247% over the last three years. This figure is particularly impressive given SKS enormous

growth. In July 2010, SKS became the first MFI to become a public company in India. According to the Consultative Group to Assist the Poor (CGAP), SKS floated a 23.3% stake on the Bombay and National Stock Exchanges for US$350 million, of which US$155 million was new capital. The deal was 13 times oversubscribed at the top of its price band. While this IPO has given the industry credibility, it has also drawn an enormous amount of criticism due to its business model of earning profits from the poor.

M S Ramaiah Management Institute

Page 40

y SKS Product Structure

In addition to being a for-profit company, SKS also has a social mission. In its 2009-2010 Annual Report, it states: Our mission is to eradicate poverty. We do that by providing financial services to the poor and by using our channel to provide goods and services that the poor need. The organization attempts to support this mission through both its innovative financial services and its relationship with its sister organization, SKS Society. While this mission is admirable, many wonder if the Company will be able to satisfy both its stockholders goals and its original

social purpose. The Company is listed on the Bombay Stock Exchange (BOM) and the National Stock Exchange (NSE) under the ticker SKSMICRO

M S Ramaiah Management Institute

Page 41

Risks and Mitigation at SKS Microfinance:

Leadership Risk
Explanation Mitigation

SKS s leader, Vikram Akula, has been a critical part of the organization s success. At this point, it does not appear SKS' mitigation of this issue is unknown. that a viable leader has been identified to continue SKS work should something happen to him.

Regulatory Risk Explanation A key factor of SKS ability to receive low interest loans is India's priority sector lending requirements. A change in this regulation could be damaging. Additionally, a forced reduction in MFI interest rates could also harm SKS profitability Mitigation SKS has temporarily attempted to protect itself from interest rate regulations through a stated goal of decreasing its current rates by a couple of percentage points. Additionally, it has more generally tried to compete regulatory risk through transparent processes and information flows.

Credit Risk
Explanation This type of risk is the potential negative effects on earnings or capital from borrower's late and non-payment of loans. Mitigation SKS' model of group lending attempts to mitigate non-payment due to mutual support and peer pressure. SKS has also implemented screening and monitoring processes.

M S Ramaiah Management Institute

Page 42

Operational Risk
Explanation Operational risk results in loses from inadequate or failed internal processes. A key issue for SKS is fraudulent activity by its own employees. Additional risks in this area could occur from natural disasters and other external issues. Mitigation SKS has attempted to create appropriate internal controls to safeguard its operations. In particular, it has established the Enterprise Risk Management framework to ensure clear accountability and facilitate risk planning activities.

Market Risk
Explanation As a financial intermediary, the main source of market risk is interest rate risk. More generally, market risk arises from changes in value of financial instruments. Mitigation SKS continuously monitors money markets and updates its portfolio as necessary. Additionally, the Company has gone outside traditional microfinance sources to ensure a better credit spread.

Portfolio Risk
Explanation Mitigation

Through a lack of geographic and/or SKS currently operates in 19 different product diversification, SKS could face states and has multiple sources of issues related to portfolio risk. revenue.

M S Ramaiah Management Institute

Page 43

Competition Risk
Explanation As the microcredit market is estimated at US$50 million, the entry of new players as well as growth of current competition is expected. Mitigation SKS believes that its position as the market leader will allow it to compete effectively. It will utilize its strong brand, innovative products, and extensive distribution network.

Political Risk Explanation India is a highly politicized environment. Political changes could then occur that negatively affect SKS' ability to provide its services in a profitable manner. Mitigation SKS attempts to mitigate this risk through close relationships with village and state leadership. Staff is also trained for a coordinated response in case of an issue.

M S Ramaiah Management Institute

Page 44

y Valuation :
valuation based on comparative analysis is the most appropriate valuation methodology for SKS given its straightforward approach and existence of comparable organizations. Additional a discounted cash flow analysis would have been difficult to create given the Companys uncertain future cash flows. Two types of analysis were completed. They include: (1) price to book value ratio. (2) price to earnings ratio.

Price to Book Value (P/BV)

This ratio is used to compare a stocks market value to the book value of equity (or the difference between book assets and book liabilities). It is calculated through dividing the current stock price by the latest quarters equity book value per share. This ratio can be used to identify whether a stock is over or under valued. This indicator is closely tied to the return on equity, as this value is key measure of growth. A high P/BV with a low ROE is a sign that a stock is overvalued. Additionally, highly leverage can distort this ratio. Utilizing FY2010 figures and a current stock price from October 15, 2010, the P/BV is 6.27 and 7.53 post dilution.
Average Stock Price (Rs.) 1,133.10 Book Assets Book Net Liabilities Equity Share Number (Basic) 53.01 Share P/BV Number (Basic) (Dilluted) 63.64 6.27 P/BV (Dilluted)

40,552.07 30,971.80

9,580.27

7.53

M S Ramaiah Management Institute

Page 45

Price to earning Ratio (P/E) This ratio is used to compare a stocks market value to the per-share earnings. While this ratio can be helpful to understand how investors view the companys future earnings (i.e. a high P/E means investors expect high earnings growth), it is more useful when compared to other companies within the same industry. This ratio is often referred to as the multiple, because it represents how much an investor is willing to pay for each dollar of earnings. One important issue to note is that earnings are based on accounting figures and can be manipulated. Utilizing FY2010 figures and a current stock price from October 15, 2010, the P/E is 34.53 and 41.45 post dilution.

Average Stock Price (Rs.) 1,133.10

Net Profit After Tax 1,739.54

Share Number (Basic) 53.01

Earnings Share per Number Share (Dilluted) (Basic) 63.64 32.82

Earnings per P/E Share (Basic) (Dilluted) 27.33 34.53

P/E (Dilluted)

41.45

M S Ramaiah Management Institute

Page 46

Analysis and Interpretation: This valuation is not in line with the Companys ROE. SKS current ROE
commands a valuation of 2x book value, which would reduce the stocks value by approximately 75%. In addition, also believes P/BV is not in line with comparables. For example, NBFCs usually have P/BVs of 2-2.5x, public sector banks 1-2x, and private banks 2.5-4x. While MFIs have traded at higher multiples due to higher returns ratios, SKS ROE is in line with domestic NBFCs and banks. In contrast to these viewpoints, Angel Broking and Way2Wealth believes that the high P/BV is justified given SKS unique business model, its high growth potential due to the supply-demand gap, and a sustainable ROE of 20%. Similar to the P/BV, CGAP believes that this valuation is not in line with SKS financials. Looking at similar companies, SKS diluted valuation of over

40 times exceeds Compartamos valuation (26 times) despite the fact that Compartamos ROE was more than double that of SKS. It is recommended that its investors avoid SKS IPO, because while its strong growth prospects justify higher P/E ratios, SKS high leverage ratios, exposure to interest rate risk, and restricted shareholders rights made the issue unattractive.

M S Ramaiah Management Institute

Page 47

Findings:
SKS historical financials are very impressive. The Companys income, expenses, and net profit are growing in line with some efficiency gains as income is growing slightly faster than expenses. This is particularly impressive given the rapid expansion during these years and is likely based on their ability to successfully replicate their model without additional costs. While SKS s growth is impressive, a fundamental mismatch exists between its current assets and current liabilities, which have lead to absurdly high Current Ratios. This situation is due to the fact that all loans granted by the bank are for less than a year (current), yet the bank is being funded by long-term debt. Additionally, its leverage ratios are extremely high (averaging 80%). This ability to take on debt is based on current government regulations mandating that banks lend to priority sectors. Due to the high leverage, the return on equity is quite high while the return on assets overall is very low. In almost all analyst reports, valuations in advance of the IPO were seen as high. A report by Indiabulls further claims that SKS is an example were a great company has been confused with a great investment opportunity, asserting that the excitement over SKS IPO has caused a large overvaluation in the stock. If future

growth is not achieved (which is already factored into the high price of the stock), the value of the stock could be negatively affected. It should be noted that several analysts such as Way2Wealth justified their valuations due to superior growth prospects and higher margins and return ratios. Due to Indias regulatory environment, SKS has access to low-interest debt financing. The Companys debt to equity ratio remains high, and over leveraging is a major concern. Due to the need to continue its phenomenal rate of growth, SKS could be incentivized to over lever in order to attain the expected return on equity. M S Ramaiah Management Institute

Page 48

Further, according to Microsec, 55.8% of SKS loans can be recalled at any time. This situation adds additional risk to SKS SKS operations.

management decisions have faced a great deal of scrutiny since the

IPO. On October 4, 2010, SKS announced that the CEO, Suresh Gurumani, had been fired. Many view this action as inappropriate and occurring too soon after the IPO. Further, due to a Security and Exchange Board of India (SEBI) investigation, the newly appointed CEO, M. R. Rao, cannot make any major decisions without board approval until SEBI has reached a final decision. Additionally, a rash of suicides linked to microcredit lending has put SKS in the spotlight. Critics have questioned SKS business model, which profits from the poor, as well as

perceptions that interest rates are too high. Further issues could damage SKS brand as well as its plans to quickly expand. Recommendation : While SKS cost structure is low by international standards, it is not in line

with its Indian peers. The Companys operating expense ratio (operating expense divided by average loan portfolio) is 10.2%. This figure is high given a 6.4% average of the largest five Indian MFIs. While this high cost structure can be explained by SKS s rapid growth, it provides an opportunity for cost savings. Through further technological advances and process improvements, SKS can reduce its operating expenses and increase its margins. As seen in the Industry Analysis, the Indian market has a clear gap between the current microfinance loans (US$4.3 M) and the demand for them (US$51.4 M). This unmet demand provides an enormous opportunity for SKS. Through leveraging its current brand, innovative products, and extensive distribution networks, it can capture this demand and provide value both its stockholders and the wider Indian population. M S Ramaiah Management Institute

Page 49

Bibliography :
y Debt and Investment Survey, GOI y Rural labor enquiry report on indebtedness among rural labor households. y All India Debt and Investment Survey. y Paper on SKS microfinance by LAD consulting. y SKS Microfinance, Annual Report 2009-2010. y IIFL: RHP, India Infoline Research.

M S Ramaiah Management Institute

Page 50