april–june 2016 smeinsights a newsletter from onicra

April–June 2016

SMEINSIGHTS

A newsletter from Onicra

2 www.onicra.com

Table of Contents

Table of Contents .............................................................................................................................. 2

Economic Perspective ...................................................................................................................... 3

Executive Summary ........................................................................................................................... 3

Economic Growth ............................................................................................................................. 4

Services ............................................................................................................................................... 7

Manufacturing and Industry ............................................................................................................ 7

Agriculture, Forestry and Fishing ...................................................................................................... 8

Consumption Drivers ......................................................................................................................... 9

Investment Drivers ............................................................................................................................ 10

Export-Import .................................................................................................................................... 11

Interest Rate ..................................................................................................................................... 11

Inflation ............................................................................................................................................. 12

Financial Markets ............................................................................................................................. 13

Outlook.............................................................................................................................................. 16

MSME News Update ........................................................................................................................ 17

MSME: Innovative Financing .......................................................................................................... 21

Need for Strong Credit Information Infrastructure ...................................................................... 21

Technology Intervention to Simplify End Lending Process ......................................................... 21

Creating a Strong Financial Ecosystem ........................................................................................ 22

Deepening of Bond Markets .......................................................................................................... 22

Conclusion ........................................................................................................................................ 23

Onicra Rated Entities ....................................................................................................................... 24

Profile of ONICRA-Rated MSMEs* (For the Period from April 01, 2016 to June 30, 2016) ....... 24

About ONICRA Credit Rating Agency Of India Limited (ONICRA) .......................................... 27

ABOUT ONICRA MSME RATINGS .................................................................................................... 27

Benefits of NSIC-ONICRA Performance and Credit Rating ....................................................... 27

Disclaimer ......................................................................................................................................... 28

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ECONOMIC PERSPECTIVE

Executive Summary

Indian economy has registered a growth rate of 7.90% in the first quarter (Q1) of financial

year 2016-17 (FY 2016-17), which is an all-time high during last one and a half years. The

growth has been attributed to rebound in 'Agriculture, Fishing and Forestry' sector as the

Government has increased the expenditure on farm and priority sector. The total food-

grain production (mainly of rice and wheat) increased considerably on account of System

of Rice Intensification technology (SRI) which requires less seed and water. The technology

has been put into force more aggressively during FY 2015-16 and has started

demonstrating its benefits in the current fiscal.

The economy grew by 7.42%in the Q4 FY 2015-16 mainly due to boost in the

manufacturing sector, which was a result of low commodity prices following the collapse

of global commodity prices.

The trade deficit has narrowed during the first quarter as the exports, primarily of

engineering goods and gems and jewellery have picked up while the oil imports which

constitutes 31.00% of the total imports has declined by 30.45%. The value of Indian

currency (INR) against American Dollar (USD) has stabilized as the trade deficit has

softened, leading to increased forex reserves. Also, the flow of funds via Foreign Portfolio

Investment and Foreign Direct Investments (FDI) has led to stabilization of INR.

India’s Industrial Production has decelerated in April 2016 as the growth of manufacturing

sector (primarily electrical and machinery apparatus, food & beverages and tobacco)

decelerated.

There has been a moderation in the services sector in the Q4 FY 2015-16, led by slower

growth of ‘Trade, Hotels, Transport, Communication and Services related to Broadcasting’

sub sector. The slowdown in the services has been registered in May 2016.

Weak private spending and slowdown in demand has led to decline in the consumption

expenditure.

The Reserve Bank of India (RBI) has reduced repo rate by 25 basis point in April 2016 in

order to ease liquidity which resulted in an upsurge in the inflation in the first two months of

the Q1 FY 16-17. The rise in inflation was a result of rise in price of food items and

manufactured products.

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Economic Growth

Figure 1. Composition and Growth Rate of GVA

Source: Central Statistics Office (CSO)

Table 1. Growth Rate of GVA (in %, Sector-wise) at Basic Constant Prices (at FY

2011–12 Prices)

Sector Q4 FY

2013–14

Q1 FY

2014–15

Q2 FY

2014–15

Q3 FY

2014–15

Q4 FY

2014–15

Q1 FY

2015–16

Q2 FY

2015–16

Q3 FY

2015–16

Q4 FY

2015–16

Agriculture, Forestry and

Fishing 4.34 2.41 2.54 -0.66 -1.70 2.55 2.03 -0.96 2.32

Manufacturing and Industry 1.74 6.25 5.84 2.80 5.70 6.73 6.34 8.60 7.92

Mining & Quarrying 7.18 17.99 -0.72 5.22 10.14 8.45 4.95 7.10 8.57

Manufacturing -0.65 -0.17 2.41 -1.68 6.63 7.31 9.18 11.52 9.32

Electricity, Gas, Water Supply

& Other Utility

0.41 4.49 3.15 3.15 4.36 3.98 7.47 5.64 9.28

Construction 5.17 17.17 16.59 11.01 2.59 5.65 0.82 4.58 4.48

Services 5.40 7.14 9.32 11.44 9.35 8.78 9.00 9.14 8.75

Trade, Hotels, Transport,

Communication and Services

Related to Broadcasting

6.89 8.05 5.05 3.18 13.07 9.96 6.68 9.20 9.85

6.11

7.34

6.11

6.19 7.18 7.31 6.867.42

0.00

5000.00

10000.00

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20000.00

25000.00

30000.00

0.00

1.00

2.00

3.00

4.00

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8.00

9.00

10.00

Q1

FY

201

4–15

Q2

FY

201

4–15

Q3

FY

201

4–15

Q4 F

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014–15

Q1

FY

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5–16

Q2

FY

201

5–16

Q3

FY

201

5–16

Q4

FY

201

5–16

In P

erc

en

t

Services Manufacturing and Industry

Agriculture, Forestry and Fishing Gross Value Added at Basic Constant Prices (in %)

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Financial, Real Estate and

Professional Services

6.87 10.68 14.74 15.67 9.02 9.31 11.93 10.48 9.08

Public Administration,

Defence and Other Services

1.21 -0.15 6.09 18.50 4.14 5.95 6.87 7.19 6.40

Gross Value Added at Basic

Constant Prices 4.00 6.11 7.34 6.11 6.19 7.18 7.31 6.86 7.42

Source: CSO

The Indian economy has shown a growth of 7.19% in the FY 2015–16 on a year-on-year

basis (Y-o-Y) in terms of Gross Domestic Product (GDP). The growth can be seen in all the

major sectors. 'Services' sector lead with a growth of 8.92% followed by 'Manufacturing

and Industry' with growth of 7.40% while the 'Agriculture, Forestry and Fishing' sector grew

by 1.25% in the FY 2015–16 (Y-o-Y).

Economic expansion of India Inc. for theQ4 FY 2015-16 has accelerated y-o-y. GDP for Q4

FY 2015–16 at factor cost grew at 6.76% (Y-o-Y), compared to 5.56% in Q4 FY 2014–15 (Y-o-

Y). Gross Value Added (GVA) for Q4 FY 2015–16 at basic constant prices expanded at

7.42% (Y-o-Y), compared to 6.19% in Q4 FY 2014–15.

India’s economy accelerated in the Q4 FY 2015–16 buoyed by improved agricultural

performance and growth in consumption. The Agriculture sector rebounded and grew by

2.32% in Q4 FY 2015–16 as compared to -1.70% in Q4 FY 2014–15. The improvement was

owing to the steps taken by Indian Government in the past 18 months. The government

providedSoil Health Card (SHC) to 0.14 billion (bn) farmers of the country out of which, 0.05

bn farmers were provided with SHC in FY 2015–16 and remaining farmers will be obtaining

the same in FY 2016-17. The SHC scheme was inaugurated in February 2015. For this, INR

1.09 bn have been released till December 2015. Under soil health management, INR 2.88

bn have been sanctioned in the FY 2015–16. In the years FY 2014–15 and FY 2015–16,

Indian government has sanctioned 79 and 101 Soil Health Laboratories respectively as

against only 43 such labs in the past four years. To promote organic farming, new scheme

called 'ParampragatKrishiVikasYojana' started in FY 2015–16with an allocation of INR 3.00

bn. So far 8000 cluster have been farmed.Neem Coated Urea was distributed and steps

were initiated against black marketing of urea. Due to this, black marketing of urea

stopped and production improved despite using less urea.

The 'Manufacturing and Industry' sector has also picked up pace on the back of

government initiative 'Make in India'. 'Manufacturing and Industry' outshone with a 7.92%

growth rate in Q4 FY 2015–16, compared to 5.70% in Q4 FY 2014–15. 'Manufacturing' sub-

sector followed by 'Electricity, Gas, Water Supply and Utility' sub sector led the rally with

growth rate of 9.32% and 9.28%, respectively over 6.63% & 4.36% in Q4 FY 2015–16.

Core sector data released by the CSO shows that while electricity generation and

cement production picked up significantly, steel output also recovered sharply although it

remained marginally in the negative in the fourth quarter.

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Table 2. GVA (Sector-wise) at Basic Constant Prices (in INR bn)

Sector Q4 FY

2013–14

Q1 FY

2014–15

Q2 FY

2014–15

Q3 FY

2014–15

Q4 FY

2014–15

Q1 FY

2015–16

Q2 FY

2015–16

Q3 FY

2015–16

Q4 FY

2015–16


Fishing 4210.90 3584.82 2935.60 5183.26 4139.26 3676.23 2995.31 5133.49 4235.42


Mining & Quarrying 763.84 797.08 608.41 716.47 841.31 864.44 638.54 767.36 913.43

Manufacturing 4210.65 4186.82 4140.49 3853.51 4489.86 4492.80 4520.62 4297.51 4908.33

Electricity, Gas, Water Supply &

Other Utility

507.37 548.53 548.45 543.24 529.48 570.37 589.42 573.87 578.61

Construction 2132.09 2135.76 2095.77 2127.54 2187.30 2256.37 2112.98 2224.94 2285.27

Services 11741.35 12552.33 13453.05 12237.65 12838.91 13654.14 14664.09 13356.40 13961.96




4482.77 4394.74 4398.18 4478.54 5068.51 4832.38 4691.91 4890.67 5567.96



4325.58 5319.33 5842.92 4516.52 4715.83 5814.71 6539.71 4990.02 5144.01

Public Administration, Defence

and Other Services

2933.00 2838.26 3211.95 3242.59 3054.57 3007.05 3432.47 3475.71 3249.99


Constant Prices 23566.20 23805.34 23781.77 24661.67 25026.12 25514.35 25520.96 26353.57 26883.02

Source: CSO

Table 3. Composition of Sectors and Sub-Sectors of GVA (in %)

Sector Q4 FY

2013–14

Q1 FY

2014–15

Q2 FY

2014–15

Q3 FY

2014–15

Q4 FY

2014–15

Q1 FY

2015–16

Q2 FY

2015–16

Q3 FY

2015–16

Q4 FY

2015–16


Fishing 17.87 15.06 12.34 21.02 16.54 14.41 11.74 19.48 15.76


Mining & Quarrying 3.24 3.35 2.56 2.91 3.36 3.39 2.50 2.91 3.40

Manufacturing 17.87 17.59 17.41 15.63 17.94 17.61 17.71 16.31 18.26

Electricity, Gas, Water Supply

& Other Utility

2.15 2.30 2.31 2.20 2.12 2.24 2.31 2.18 2.15

Construction 9.05 8.97 8.81 8.63 8.74 8.84 8.28 8.44 8.50

Services 49.82 52.73 56.57 49.62 51.30 53.52 57.46 50.68 51.94




19.02 18.46 18.49 18.16 20.25 18.94 18.38 18.56 20.71



18.36 22.35 24.57 18.31 18.84 22.79 25.62 18.93 19.13

Public Administration,

Defence and Other Services

12.45 11.92 13.51 13.15 12.21 11.79 13.45 13.19 12.09


Constant Prices 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Source: CSO

7 www.onicra.com

Services

'Services' sector contributes over 50% to Indian economy and has registered a contraction

in growth rate at 8.75% (Y-o-Y) in Q4 FY 2015–16, compared to 9.35% in Q4 FY 2014–15.

Disintegrating the sector, 'Trade, Hotels, Transport, Communication and Services Related

to Broadcasting' registered a decline at 9.85% in Q4 FY 2015–16.Changes in government

policy in spectrum allocation and scamsare some of the factors that have impaired the

growth in this sub-sector. The 'Financial, Real Estate and Professional Services' registered a

growth at 9.08% in Q4 FY 2015–16. Owing to rate cut in housing loans, realty sector has

shown a subsequent growth. 'Public Administration, Defence and Other Services'

registered a growth at 6.40% in Q4 FY 2015–16.

Manufacturing and Industry

'Manufacturing and Industry' sector contributes to one third to Indian economy and has

registered an expansion in growth rate at 7.92% (Y-o-Y) in Q4 FY 2015–16, compared to

5.70% in Q4 FY 2014–15. Fragmenting the sector, 'Manufacturing' sub sector registered a

growth at 9.32% in Q4 FY 2015–16 and a growth of 4.48% has been registered in

'Construction' sub sector. The major jump in Q4 FY 2015–16 (Y-o-Y) can be seen in

'Electricity, Gas & Water Supply' with a growth of 9.28% as compared to 4.36% previous

year.

Percentage change in Index of Industrial Production (IIP) for FY 2015–16 has declined as

compared to previous year for all the sectors except for 'Mining & Quarrying'. The growth

in 'Electricity' sector has decelerated as compared to previous year and stood at 5.61% in

the FY 2015–16 as compared to 8.43% in the FY 2014–15.

The percentage change in General Index in Q4 FY 2015–16 stood at 0.16% compared to

3.33% in Q4 FY 2014–15. Major deceleration was noted by 'Manufacturing' sub-sector at -

1.13% in Q4 FY 2015–16, against 3.71% in Q4 FY 2014–15. 'Electricity' sub-sector registered a

higher growth rate of 9.13% in Q4 FY 2015–16, against 3.65% in Q4 FY 2014–15. 'Mining and

Quarrying' sub-sector also registered a growth at 2.05% in Q4 FY 2015–16, compared to

0.34% in Q4 FY 2014–15. On observing the monthly growth chart of IIP, significant

acceleration can be seen in the month of March 2015 after minor decline in February

2016.

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Figure 2. Index of Industrial Production

Source: CSO

Table 4. Percentage Change in Index of Industrial Production

Industry Group FY 2014-15 FY 2015-16 Q4 FY 2014-15 Q4 FY 2015-16

Electricity 8.43 5.61 3.65 9.13

General Index 2.81 2.40 3.33 0.16

Manufacturing 2.30 2.01 3.71 -1.13

Mining & Quarrying 1.45 2.18 0.34 2.05

Source: CSO

Agriculture, Forestry and Fishing

Y-o-Y growth rate of production of food-grains and oilseeds is estimated at 0.08% and

0.73%, respectively as per IIIrdadvanced estimates of FY 2015-16. It is estimated that cotton

and sugarcane would record a negative growth with growth rate of -12.30% and -4.31%

(Y-o-Y), respectively in FY 2015-16. The production of food-grains is estimated at 252.23

million tonnes (mt). Under food-grains, wheat is expected to have a significant growth of

8.68% followed by gram with 2.05% growth. The rapeseed and mustard is expected to

show a growth rate of 9.12%.

195.00

183.70

190.30194.40

195.70

201.60

175.60

183.20 188.30181.90

196.30

177.90 179.70179.30 180.50

176.60 178.20181.40

166.30

184.20

186.40184.60

198.20

188.50187.30 189.50 190.90

184.80 186.90 188.10

171.70

193.10 195.10 194.10

207.70

121.90127.90

121.60117.70 120.20 119.30

130.80 130.80137.30 138.80 136.20

148.80

100.00

120.00

140.00

160.00

180.00

200.00

220.00

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Electricity General Index Manufacturing Mining & Quarrying

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Table 5. Major Crops Production

Production of crops (in mt)

Crops FY 2014–15 (final) FY 2015–16(III Advance Estimates) Growth (in % Y-o-Y)

Foodgrains 252.02 252.23 0.08

Rice 105.48 103.36 -2.01

Wheat 86.53 94.04 8.68

Coarse Cereals 42.86 37.78 -11.85

Maize 24.17 21.02 -13.03

Pulses 17.15 17.06 -0.52

Tur 2.81 2.60 -7.47

Gram 7.33 7.48 2.05

Oilseeds 25.71 25.90 0.73

Soyabean 10.37 8.92 -14.03

Groundnut 7.40 6.89 -6.97

Rapeseed and Mustard 6.28 6.86 9.12

Cotton

(million bales (of 170 kg each) 34.81 30.52 -12.30

Sugarcane 362.33 346.72 -4.31

Source: Directorate of Economics and Statistics, Department of Agriculture and

Cooperation

Consumption Drivers

Table 6. Growth Basic of Consumption Drivers

Growth (in % YoY)

Item Description Q4 FY15 Q4 FY16

Food Products and Beverages -0.53 -7.51

Wearing apparel, dressing and dyeing of fur 17.45 1.82

Consumer Goods 0.72 0.40

Deployment of Bank Credit to Housing* -22.70 78.70

Source: CSO

Note: *Including Priority Sector Housing

Consumption drivers in Q4 FY 2015–16 have slowed down significantly compared to the

corresponding period of previous fiscal. The expenditure in 'Food Products and Beverages'

and 'Consumer Goods' reflects a negative outlook, 'Apparel' sub-sector has also noted

major decline.

Due to banks extending rate cut in housing loans, there is a drastic improvement in

disbursement of bank credit in Q4 FY 2015–16. While Q4 FY 2015–16 registered a 78.70%

growth (Y-o-Y) in deployment of bank credit compared to a 22.70% decline (Y-o-Y) in Q4

FY2014–15, there is a 4.32% improvement in credit deployment on comparison with Q3 FY

2015–16.

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Investment Drivers

Table 7. Gross Bank Credit Deployment

Industry Outstanding as on Percentage Share Percentage Growth Percentage Growth

April 29, 2016 April 29, 2016 April 17, 2015 April 29, 2016

Infrastructure 9190.40 34.53 10.62 -1.45

Basic Metal & Metal Product 4187.35 15.73 7.73 9.21

Textiles 2039.38 7.66 1.25 0.36

Other Industries 1865.01 7.01 -1.48 2.76

Food Processing 1467.34 5.51 13.09 -13.00

Chemicals & Chemical Products 1573.67 5.91 -6.34 3.81

All Engineering 1525.69 5.73 6.45 -1.27

Construction 787.27 2.96 7.25 6.26

Gems &Jewellery 703.82 2.64 5.62 -1.54

Vehicles, Vehicle Parts & Transport

Equipment 681.59 2.56 4.72 -1.57

Cement & Cement Products 543.12 2.04 3.63 -4.43

Petroleum, Coal Products & Nuclear Fuels 518.82 1.95 -6.54 -6.97

Rubber, Plastic & their Products 361.63 1.36 1.86 -3.06

Mining & Quarrying (incl. Coal) 367.88 1.38 -1.04 2.19

Paper & Paper Products 341.62 1.28 3.76 0.71

Beverage & Tobacco 170.65 0.64 5.43 -10.39

Leather & Leather Products 104.25 0.39 3.17 1.25

Wood & Wood Products 100.77 0.38 5.90 2.51

Glass & Glassware 85.13 0.32 -3.48 -5.15

Total 26615.39 100.00 5.92 0.12

Source: RBI

The industry has seen a 0.12% growth in deployment of bank credit in the beginning of Q1

FY 2016–17, compared to 5.92% spurt in the beginning of Q1 FY 2015–16. The sluggish

growth can be attributed to incomplete transmission of the monetary policy as banks

have not passed on the entire benefit to the borrowers, unwillingness of the banks to lend

credit on account of rising Non Performing Assets (NPAs), worsening of corporate balance

sheets, forcing them to put their investment decision on hold and more attractive interest

rates for the borrowers in the bond market. The slowdown in the time deposit has also

been slowing the growth of bank credit as time deposits remain the most important

source of bank funding.

Growth in credit to almost all industries were negative during the first month of FY 2016–17.

The exceptions were metal, textile, chemicals, construction, mining, paper, leather and

wood industry. It should be noted that despite being positive, the credit deployment in the

‘paper’, ‘leather’, ‘wood’ and ‘construction’ industry grew at a slower pace compared to

corresponding period previous year.

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Export-Import

Table 8. Balance of Trade

Balance of Trade

Month Export Growth in Export Import Growth in Import Trade Balance

(in INR Bn) (Y-o-Y, in terms of INR) (in INR Bn) (Y-o-Y, in terms of INR) (in INR Bn)

2015 April 1387.61 -10.99 2102.60 -2.68 -714.99

2015 May 1436.05 -13.58 2094.88 -9.56 -658.83

2015 June 1438.20 -7.13 2141.63 -6.51 -703.44

2015 July 1482.14 -4.41 2314.46 -3.82 -832.33

2015 August 1402.67 -14.13 2210.88 -3.11 -808.21

2015 September 1442.98 -17.94 2119.92 -19.64 -676.94

2015 October 1393.53 -12.34 2026.64 -16.29 -633.11

2015 November 1292.62 -20.96 1974.15 -25.11 -681.53

2015 December 1501.89 -8.56 2269.44 2.35 -767.56

2016 January 1419.10 -6.59 1934.43 -3.65 -515.32

2016 February 1419.80 3.99 1860.94 4.43 -441.14

2016 March 1527.65 1.78 1809.29 -18.22 -281.63

2016 April 1372.45 -1.09 1689.24 -19.66 -316.79

Source: RBI

As can be seen from the above table, India consistently runs a trade deficit as imports are

more than exports. India has been recording negative trade balance mainly due to high

growth of imports, particularly of crude oil, gold and silver. The biggest trade deficit were

recorded with China, Saudi Arab, Iraq, Switzerland and Kuwait. Due to low global crude

oil prices the value of imports declined, thereby benefitting the net trade balance in the

months of January, February and March of 2016. Due to sluggish global demand and low

commodity prices, exports have witnessed downward trend in April 2016. Exports declined

in major categories including petroleum products, ready-made garments, engineering

goods, cotton yarn, carpet, leather, rice and cashew.

India's collected exports for Q4 FY 2015–16 rested at INR 4366.55 bn, while imports were

recorded at INR 5604.65 bn. M-o-M growth in exports in the months of February, March

and April was recorded at 0.05%, 7.60% and -10.16% respectively. On the other hand,

imports for February, March and April registered growth rate of -3.80%, -2.78% and -6.64%

m-o-m, respectively.

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Interest Rate

Table 9. Key Indicators of Monetary Policy of India

Bi-Monthly Review

Marginal Standing

Facility/ Bank Rate Repo Rate Reverse Repo Rate Cash Reserve Ratio Statutory Liquid

Ratio

(in %) (in %) (in %) (% of NDTL) (% of NDTL)

2015 June 8.25 7.25 6.25 4.00 21.50

2015 September 7.75 6.75 5.75 4.00 21.50

2015 December 7.75 6.75 5.75 4.00 21.50

2016 March 7.75 6.75 5.75 4.00 21.50

2016 April 7.00 6.50 6.50 4.00 21.25

2016 May 7.00 6.50 6.50 4.00 21.25

Source: RBI

Note: Bank Rate was aligned to MSF rate with effect from February 13, 2012. NDTL is net

demand and time Liabilities.

The RBI kept the bank rate, repo rate and reverse repo rate unchanged in the Q2, Q3 and

Q4 of the previous fiscal, while showing a decline by 50 basis points in Q1 FY 2015–16. The

central bank maintained the rates considering headline inflation. Keeping rates

unchanged in Q4 FY 2015–16 was driven by RBI not wanting to risk inflation from surging

due to a poor monsoon and a possible increase in interest rates by the US Federal Bank

next month. Also citing a spike in food prices, RBI kept interest rates unchanged in Q4 FY

2015–16. Further the inflation rose to 4.80% in March 2016, making difficult for the RBI to cut

rates any further. The RBI has reduced repo rate by 25 basis point in April 2016 in order to

ease liquidity which remained stable in June 2016.

Inflation

Figure 3. Inflation Indices

Source: CSO

13 www.onicra.com

Wholesale inflation (Wholesale Price Index, WPI) has risen to a 19 month high at 0.79% in

May 2016 from 0.34% in April 2016 due to increase in WPI of primary food articles. The Y-o-Y

inflation for WPI was positive for second consecutive month in May 2016. Primary food

inflation doubled to 7.88% in May 2016 from 4.23% in April 2016, while WPI for fuel products

decreased from -4.83% in April 2016 to -6.14% in May 2016.

Retail inflation (Consumer Price Index, CPI) increased to 5.76% in May 2016 as compared

to April 2016 due to increase in prices of food and beverages mainly vegetables and

pulses. Vegetable price inflation has risen to 10.77% in May 2016 from 4.82% in April 2016

while inflation rate for pulses increased to 31.57% in May 2016 from 34.13% in April 2016.

Financial Markets

Renewed selling of Indian equities by Foreign Institutional Investors (FIIs) along with higher

demand of US Dollars (USD) from banks and importers led the Indian Rupee to plunge to

12 month low at 68.24 against USD in February 2016. The Rupee became more stable as

RBI intervened to reduce volatility in the value of INR. The forex reserves are burgeoning on

the account of dollar purchases by central bank to rein the Rupee against USD. Sustained

foreign capital inflows boosted the Indian Rupee to 66.91 against USD in May 2016.

Figure 4. Foreign Exchange Rate Movement

Source: RBI

63.8663.63

65.07

66.22

65.06

66.1266.60

67.25

68.24

67.02

66.4766.91

62.00

63.00

64.00

65.00

66.00

67.00

68.00

69.00

INR VS USD

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Figure 5. Broader Equity Market Indices

Source: National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)

Figure 6. S&P BSE Indices: BSE Midcap and BSE Smallcap

Source: BSE

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S&P BSE MidCap S&P BSE SmallCap

15 www.onicra.com

Figure 7. Foreign and Domestic Institutional Investment

Source: NSE and BSE

The Indian markets have been plunging since the beginning of FY2016-17, S&P BSE Sensex

has shed by 4.40% in February 2016 from January 2016 as the investors have gradually lost

interest in Indian market because of ever- increasing bad loans of public sector banks.

Expectation of raising interest rates by Federal Reserve Bank of US of A created panic and

resulted in capital outflow from emerging economies. S&P BSE Midcap and Small cap

stocks has bounced back post February 2016 on the account of lower input cost. Midcap

stocks will continue to outperform till June 2016 due to fall in crude oil prices. FIIs inflow in

the Indian market reached at INR 242.01 bn in March 2016 which was so far the highest

investment since February 2013. FIIs were net buyers of Indian stocks for March 2016, April

2016 and May 2016, this trend was seen after four consecutive months of net selling.

However, domestic institutional investors (DIIs) were net buyers for period March 2016 and

April 2016.

16 www.onicra.com

Outlook

The growth rate of India’s GDP which was estimated at 7.00-7.50% in the FY 2015-16 has

shown an upward revision at 7.00-7.75% in the FY 2016-17 due to deceleration in the

revenue deficit, increase in capital expenditure and investment, mobilization of higher

excise duty collection on petroleum products. Despite deceleration in the manufacturing

sector, Indian economy has gained momentum, with Agriculture, Fishery and Forestry

sector and Electricity, Gas, Water Supply and other Utility sectors showing an upward

trend. However, the increase in the number of stalled projects mainly in the manufacturing

sector, under-utilized production capacity and sluggish global demand weakening

exports, may hinder the pace of economic growth.

Table 10. Growth Rate of Indian Economy

FY 2015–16(YoY, in %)

(Estimated as on 31stMarch 2016)

FY2016–17 (YoY, in %)

(Estimated as on 30th June 2016)

Economic Survey of India 7.00–7.50 7.00–7.75

International Monetary Fund (IMF) 7.30 7.49

Organisation for Economic Co-operation

and Development (OECD) 7.20 7.50

Asian Development Bank 7.40 7.40

In the FY 2016-17, the economic growth is expected to strengthen, backed by lower input

costs, a normal monsoon that will improve the rural demand and expansion of the supply

of agricultural products which also influences inflation. The shortage of agricultural

produce has led to increase in the prices of food items thereby increasing inflationary

pressures. An increase in the farm produce will combat rising demand thereby reducing

prices. Also, from the implementation of the recommendations of the 7th pay commission

and One Rank, One Pension for (OROP), consumption demand will get a boost due to

increased spending from higher wages. The allocation of 16 coal mines for commercial

mining shall positively influence the MSMEs, as this will lead to new price discovery. The

consumption growth is expected to decelerate due to fall in crude oil prices. The

government should be cautious of Britain’s exit from Euro (Brexit) which will adversely

affect the commodity and exchange markets. Foreign Portfolio Investment have pulled

funds from India's debt and equity markets as they perceive Indian markets to be risky.

17 www.onicra.com

MSME NEWS UPDATE

SIDBI and LIC enter into a MoU to promote start-ups and MSMEs, April 07, 2016

Small Industries Development Bank of India (SIDBI) and Life Insurance Corporation (LIC) of

India have entered into a Memorandum of Understanding (MoU) to provide Venture

Capital (VC) to start-ups and MSMEs under the funds-of-funds operation of SIDBI.

SIDBI set up an India Aspiration Fund (IAF) with a corpus of INR 200 bn post the budget

2016. It has also took up the management of venture funds of government of West Bengal

and Maharashtra through its unit called SIDBI Venture Capital Ltd. It is also in talks with

other state governments such as Karnataka, Kerala, Bihar and Rajasthan for supporting

the start-up initiatives of the state.

The MoU signed would increase the network of SIDBI apart from enabling LIC to support

larger venture funds, which has been supporting relatively smaller venture funds for SMEs

for the last two decades.

[http://economictimes.indiatimes.com/small-biz/sme-sector/sidbi-signs-mou-with-lic-to-promote-

startups-and-msmes/articleshow/51730427.cms]

Haryana to provide assistance to MSMEs for patent registration, products, and

processes, May 01, 2016

Haryana government has launched a scheme to grant financial assistance of up to INR 25

lakh to MSMEs for registration of patents for products and processes. The move aims to

promote registration of patents amongst MSME to protect their innovations, processes and

traditional products.

Under the scheme, the government has proposed 50 per cent of the actual expenses,

including filing, consultancy, search, and maintenance fee, to be granted subject to a

maximum of INR 25 lakh for both domestic and international patent registration. The

scheme is presently proposed to be operational for a period of five years i.e. MSMEs which

have acquired patent after August 14, 2015 and before August 14, 2020 would be eligible

under the scheme.

[http://economictimes.indiatimes.com/small-biz/sme-sector/haryana-to-give-financial-assistance-

to-msmes-for-patents/articleshow/52065052.cms]

NSE to launch a new trading platform to ease working capital constraints of MSMEs,

May 3, 2016

National Stock Exchange (NSE) has entered into a joint venture with SIDBI to launch an

electronic trading platform for financing the working capital requirements of MSMEs. The

new platform shall allow the sale of bill receivables and trade receivables of MSMEs and

help them to generate cash to ease their liquidity constraints.

It has been reported that the necessary approvals from the banking regulators are all in

18 www.onicra.com

place and the exchange may go live by the end of this calendar year. As per sources, the

name of the platform has been proposed as ‘trade exchanges’. To participate on the

exchange, the MSME will have to sign agreements with the exchange that will provide the

facility for electronically presenting and accepting bills. Besides providing the technical

infrastructure, the exchange will also look into aspects such as registration and due

diligence of MSMEs and respective corporate, on-boarding of financiers, technical

requirements and business processes for de-materialisation of invoices, documentation

requirements and legal formalities, etc.

However, there are certain risk factors that will arise such as identification of default

needs, default handling, settlement of funds etc. which need to be addressed. Moreover,

proper legal framework for supporting the model would require to be ensured and

provisions of registration requirements shall need to be made.

[http://www.business-standard.com/article/markets/nse-to-launch-new-exchange-for-msmes-

116050300750_1.html]

Capital Float, SME lending Start up raises USD 25 mn in funding led by Creation

Investments, May 12, 2016

Bengaluru based start-up, Capital Float, which lends to MSMEs has raised USD 25 mn in

series B Funding led by Creation Investments, while existing investors also participated in

the round. Capital Float has raised USD 13 mn as part of its Series A funding in February last

year, bringing the total to USD 42 mn including its seed investment.

The latest fund raising exercise was undertaken with an objective of expanding the

balance sheet to enable lending more money from its balance sheet, to grow its

presence to 100 cities across India and increase its customer base to 20,000 SMEs.

The company generally lends to e-commerce vendors by partnering with players such as

Snapdeal, Paytm, Alibaba, Uber etc. It has already facilitated loans of over INR 40 bn to

start ups and SMEs. It also runs a market place for lending of which banks and other

financial institutions are a part.

[http://www.business-standard.com/article/companies/sme-lending-start-up-capital-float-raises-25-

mn-116051200488_1.html]

Autodesk enters into an MoU with Maharashtra government to support MSMEs

create world class products, May 16, 2016

3D Design technology company, Autodesk, has entered into a MoU with the Maharashtra

government to provide evolved design technology to MSMEs based out of the state. The

design technology is aimed at lowering the capital expenditure of the MSMEs, and

increase their design capabilities as well. The company aims to promote its technologies

like Fusion 360, which it claims can address critical challenges associated with design,

manufacturing and production. The technology is a cloud based product that can

reduce the upfront cost of business and support to create and innovate world - class

products.

19 www.onicra.com

As per the MoU, Autodesk will train 8000 franchises in the state on the optimum usage of

Fusion 360 design platform.

Meanwhile, Autodesk has claimed that it is in talks with other state governments to roll out

similar programs for local MSMEs.

[http://economictimes.indiatimes.com/small-biz/sme-sector/fusion-360-to-help-msmes-in-

maharashtra-create-world-class-products-autodesks-pradeep-nair/articleshow/52293136.cms]

State Governments support equity raising by SMEs through bourses, May 25, 2016

The Gujarat and Rajasthan governments have announced subsidies to pay for the

expenses of IPOs of SMEs, while governments of West Bengal and Maharashtra will employ

VC funds to invest in Initial Public Offerings (IPO).

The Gujarat government will reimburse 10 per cent of the IPO expenses of SMEs in the

state, subject to a maximum of INR 5 lakh each. Similarly, Rajasthan will reimburse up to

INR 2.5 lakh towards IPO expenses for SMEs there.

SIDBI and the Maharashtra government have come together to set up INR 20 bn VC fund

for MSMEs. The fund is soon expected to be registered with the Securities and Exchange

Board of India (SEBI). Similarly, MSME and the textile department of the government of

West Bengal have announced INR 20 bn VC Fund, in which SIDBI shall invest an initial

corpus of 15 per cent.

[http://www.business-standard.com/article/markets/state-govts-lend-support-to-sme-platforms-

116052501095_1.html]

Egypt seeks Indian experience for SME Financing, June 18, 2016

Egyptian Banking Institute (EBI) organized a visit of their experts to India to garner

expertise of the India's progress in developing and financing SMEs. India Institute of

Banking and Finance (IIBF) collaborated the visit the EBI and organized visits to a

number of financial and non-financial institutions, including the Central Bank of

India, the Small Industrial Development Bank of India (SIDBI), the Bank of India, the

Bank of Baroda, and the Reserve Bank of India.

The visits also aimed to bring closer the financial sectors of two economies to serve

the SMEs better.

[http://economictimes.indiatimes.com/small-biz/sme-sector/egypt-seeks-indias-help-to-learn-the-

ropes-of-sme-financing/articleshow/52808541.cms]

HDFC Bank launches e- banking for its SME customers, June 20, 2016

HDFC Bank has launched a digital bank tentatively called SM@Bank, for its MSE business,

to allow its customers 24*7 service on all its products over their personal computers and

mobiles. The services does away with the need to call the relationship manager or visit the

20 www.onicra.com

bank for the SME to channelize institutional funding and also makes banking operations

easier. The facility is available for existing as well as potential customers, and will exist

along-side the present brick and mortar banking services.

[http://www.business-standard.com/article/finance/hdfc-bank-looks-to-grow-market-share-in-

hinterland-with-its-sme-e-bank-116061900519_1.html]

21 www.onicra.com

MSME: INNOVATIVE FINANCING MSMEs are a major driver of economic growth and job creation, accounting for around

45% of the total manufacturing output and about 40% of the exports of the country. Yet,

these companies have difficulty securing financing, limiting their ability to grow and thrive.

MSMEs have a huge potential to grow but one of the major obstacle is lack of adequate

and timely finance. Due to the highly complex nature of credit needs and low scale,

banks view MSMEs as low-end and unprofitable. Their credit underwriting process is time

consuming due to lack of credit bureau, stringent regulatory know your customer

requirements and most importantly due to the fact that most MSMEs lack audited

financial data. Hence the gap between MSME and banks is widening.

Despite MSMEs observing a CAGR of 31.40% in institutional credit during the period from FY

2005–06 to FY 2011–12, only 33–34% of enterprises have access to institutional credit. In

2012, MSME sector required a total finance worth INR 32.5 trillion.The inability to raise

working capital is particularly a problem for small businesses, including technology start-

ups and professionals branching out into entrepreneurship.

The Government of India has taken a number of steps to improve the financial access of

MSME and help them attain suitable growth. This can be further accelerated with the help

of development of strong credit information infrastructure and increasing awareness

about the various schemes facilitated by the government

Need for strong credit information infrastructure

In order to overcome the ongoing financial gap in MSMEs, it is pertinent to create an

adequate and reliable credit information mechanism such as an MSME credit bureau. This

will also help in reducing the communication gap between the lenders and borrowers

and at the same time in obtaining finances and improving business prospects. One of the

critical factor that acts as a hurdle in obtaining credit is the maintenance of financial

history and this challenge can be addressed by building a sound financial information

infrastructure.

Information related to various schemes, programs, institutions, products and policies must

be easily available to the MSMEs at a single common point. A one stop agency for proper

information must be set up to reduce the ambiguity related to the benefits and schemes

offered by government both at state and centre level.

Rating agencies can play a critical role here as data aggregators, information generators

and disseminators. A credit bureau can sync with rating agency to bring about

information symmetry and greater data transparency in the system.

Technology intervention to simplify end lending process

With Digital India programme laying National Optical Fibre Network (NOFN) across 250,000

Indian villages, the time has come to digitalise the MSME funding channel. An ecosystem

shall be created to integrate MSMEs and FIs at a common digital funding platform. The

22 www.onicra.com

digital revolution is enabling new business models for servicing MSMEs profitably, and

meeting their diverse financing needs using digital solutions, advanced analytics, a

network of agents and correspondents, and partnerships with the development sector.

Banks have a critical role to play in this digital future. They know the financial products,

possess the required scale, capital and consumer trust, and have the key competitive

advantage of risk management. All banks should tap the available technology and set

up Central Registration of Loan Applications. The same set will mitigate redundancies and

time consumption in manual loan application and reduce information asymmetry and

processing delays. It can be used by the borrower for tracking of the status of application

on the internet on the basis of the receipt issued to him.

The cloud banking shall digitalise the whole loan processing until sanctioning of the

amount. Digital funding platform will be an electronic MSME Rating ecosystem. It shall aid

banks with objective loan sanctioning by waiving off prejudices and furnishing accurate

information of MSME that have already been rated. The enterprises shall be required for

physical documentation and verification at the time of disbursement alone.

The scoring technology-enabled digital platform will build trust amongst stakeholders and

effectively bring transparency. Time-efficient electronic data point aggregation and

analysis increases accuracy and precision, thereby enhancing overall performance of the

ecosystem. The programme shall monitor and track time elapsed since loan application,

ensuring regulations and corrective measures if a gap emerges. It will dictate and enforce

time line for sanctioning or rejection of a loan application.

Creating a strong financial ecosystem

Financial ecosystem can be created by introducing innovative tools to meet the

requirements of MSMEs while dealing with the information asymmetry issues. Apart from

traditional products such a cash credit, term loan, bill discounting, innovative products like

factoring, bill discounting, collective bonds and SME IPO must also be used.

To reduce information asymmetry extensive use of credit score model must be used.

Credit rating and due diligence services can be made mandatory to assess the small

businesses before disbursing the loan.

Financial markets can play a critical role in this respect. The savings investment-growth link

remains central to the question of financial sector development and the ability of financial

institutions to fully play their intermediary role. Putting in place well-functioning

infrastructure in the banking sector and capital markets is crucial for catalysing domestic

and foreign resources for growth and investment.

Deepening of Bond Markets

Corporate bond market is undoubtedly a very essential segment of the financial market

since it not only supports the banking system in meeting the long term funding of the

corporate's but also a reliable source of finance in situations when the equity market is

unstable. On worldwide scenario, bond financing is rather more popular than bank

23 www.onicra.com

financing, but the situation in India is totally reverse. This is due to dominance of the

government securities in the bond market and also because of the heavy dependence of

the corporate on institutional finance for meeting their debt funding necessities.

With increased capital requirement under Basel III norms, banking sector will be required

to maintain higher capital and tighten their lending. Bond markets could become pivotal

in supporting the diverse financing requirements of the growing small and medium

enterprises.

Government has introduced a number of key measure to encourage bond market that

includes formation of an electronic auction platform that would facilitate primary offer of

corporate bonds on private placement. Announcement on formation of several central

level repositories has also been made in the Union Budget 2016 that would facilitate easy

dissemination of information. The Union Budget has also proposed to allow the foreign

portfolio investors to invest in the unlisted pass through securities issued by the Special

Purpose Vehicles (SPVs) and unlisted debt securities.

Conclusion

Growth of MSME is the key component for the sustainable growth of the developing

economy. India’s MSME sector has the potential to grow and hence is important to

empower them with a strong financial ecosystem. It is essential their financial needs are

met in a timely and efficient manner and there is a continuous monitoring of the

application of the funds availed by them.

24 www.onicra.com

ONICRA RATED ENTITIES

Profile of ONICRA-Rated MSMEs* (For the Period from April 01, 2016 to June 30,

2016)

The benefit of getting an MSME unit rated goes beyond procuring finance at competitive

rates. While drawing business from a client located in dispersed geographies or from large

corporate and multinationals, the rating exercise also serves as an independent due

diligence activity. Furthermore, ONICRA examines MSMEs based on various parameters

and provides an insight into shortcomings and highlights areas that require further

improvement. Large number of MSMEs have benefited from the ratings assigned, which

has also led to a larger acceptance of the rating scheme by the various stakeholders

including the SMEs and the investors.

As per notification by Ministry of Micro, Small and Medium Enterprises dated 23rd May,

2016, the rating scale for the PCR scheme has been revised as follows:

Figure 8.Industry wise Rating Distribution

NSIC-ONICRA Rating Definition

NSIC-ONICRA Rating reflects ONICRA's opinion on the company’s performance

capability and financial strength. Ratings are assigned on the scale given below.

Table 11: NSIC-Onicra Rating Scale

New Rating Scale Old Rating Scale Definition of Rating scale

ONICRA MSE 1 SE 1A Highest Credit Worthiness in relation to other MSEs

ONICRA MSE 2 SE 1B, SE 2A High Credit Worthiness in relation to other MSEs

ONICRA MSE 3 SE 1C, SE 2B Good Credit Worthiness in relation to other MSEs

ONICRA MSE 4 SE 2C, SE 3A Above Average Credit Worthiness in relation to other MSEs

ONICRA MSE 5 SE 3B, SE 3C Average Credit Worthiness in relation to other MSEs

ONICRA MSE 6 SE 4A, SE 4B Below Average Credit Worthiness in relation to other MSEs

ONICRA MSE 7 SE 4C, SE 5A Weak Credit Worthiness in relation to other MSEs

ONICRA MSE 8 SE 5B, SE 5C Poor Credit Worthiness in relation to other MSEs

25 www.onicra.com

Figure 8: Industry-Wise Distribution

Table 12: Rating-Wise Distribution

Rating

Q2FY16 Q3FY16 Q4FY16 Q1FY17

(%) (%) (%) (%)

ONICRA MSE 1 0.06 0.07 0.13 0.07

ONICRA MSE 2 1.49 2.10 1.29 1.76

ONICRA MSE 3 5.17 5.77 6.00 5.14

ONICRA MSE 4 13.96 15.37 17.47 13.46

ONICRA MSE 5 55.92 48.13 46.42 50.27

ONICRA MSE 6 22.30 27.06 26.37 28.15

ONICRA MSE 7 1.10 1.52 2.32 1.15

Total 100.00 100.02 100.00 100.00

12.92%

10.22%

7.31%

6.77%

6.43%

5.28%5.01%

46.08%

Construction & Engineering

Textile

Machinery & Equipments

Services

Retailing/Trading

Iron & Steel

Electrical Components &

Equipments

Others

* MSMEs are defined on the basis of industry and Investment in Plant and

Machinery slab: Unit Category Manufacturing Services

Micro Plant & Machinery <= 25 Lakh Plant & Machinery <= 10 Lakh

Small Plant & Machinery <= 5 Crore Plant & Machinery <= 2 Crore

Medium Plant & Machinery <=10 Crore Plant & Machinery <= 5 Crore

26

www.onicra.com

Table 13. Geographical Distribution of Rating Assigned

State / Union Territory Q2FY16 Q3FY16 Q4FY16 Q1FY17

(%) (%) (%) (%)

Andaman and Nicobar Islands 0.00 0.00 0.00 0.00

Andhra Pradesh 2.26 2.26 3.35 3.04

Arunachal Pradesh 0.00 0.00 0.00 0.20

Assam 1.36 1.08 1.48 1.42

Bihar 3.17 2.74 3.87 1.42

Chandigarh 0.00 0.14 0.06 0.14

Chhattisgarh 0.23 0.07 0.13 0.54

Dadra and Nagar Haveli 0.00 0.22 0.32 0.20

Daman and Diu 0.00 0.00 0.19 0.20

Delhi 2.71 3.54 4.45 7.51

Goa 0.09 0.14 0.06 0.00

Gujarat 1.42 1.59 2.19 1.96

Haryana 1.87 2.81 2.19 1.62

Himachal Pradesh 0.06 0.07 0.13 0.61

Jammu & Kashmir 0.00 0.00 0.00 0.14

Jharkhand 0.13 0.43 0.77 0.88

Karnataka 9.57 8.95 8.90 6.70

K Kerala 0.32 0.29 0.06 0.00

Lakshadweep 0.00 0.00 0.06 0.00

Madhya Pradesh 2.84 4.47 3.16 1.49

Maharashtra 14.67 13.64 12.64 15.83

Manipur 1.68 3.17 2.77 1.76

Meghalaya 0.00 0.00 0.00 0.00

Mizoram 0.00 0.00 0.00 0.00

Nagaland 0.00 0.00 0.06 0.00

Odisha 0.78 1.15 1.23 1.15

Puducherry 0.00 0.07 0.00 0.00

Punjab 3.43 3.03 3.03 3.11

Rajasthan 3.62 3.32 3.87 3.04

Sikkim 0.00 0.07 0.00 0.00

Tamil Nadu 17.45 14.72 15.54 17.66

Telangana 6.01 8.01 5.29 3.65

Tripura 0.26 0.29 0.00 0.00

Uttar Pradesh 10.54 9.81 7.09 10.15

Uttarakhand 3.04 2.31 2.90 3.18

West Bengal 12.67 11.69 14.18 12.38

Total 100.00 100.00 100.00 100.00

27

www.onicra.com

ABOUT ONICRA CREDIT RATING AGENCY OF INDIA LIMITED

(ONICRA)

ONICRA Credit Rating Agency is one of the leading performance and credit rating

agencies in India. It provides ratings, risk assessment and analytical solutions to micro, small

and medium enterprises (MSMEs) and corporate. Third-party performance and credit

rating and assessment helps to create ‘trust’ between players in market that underpins

transactions.

ONICRA plays a central and critical role in collecting and analysing a variety of financial,

operational, industry and market information, then synthesising that information and

providing autonomous and reliable assessment of entities, thereby providing stakeholders

with an important input for their decision-making process.

To realise our goal, we have committed ourselves in providing stakeholders with objective,

timely, independent and forward-looking performance and credit opinions. The foundation

of this dedication is embedded in several core principles – objectivity, quality,

independence, integrity and transparency.

About ONICRA MSME Ratings

The Ministry of MSME, through NSIC, has signed a memorandum of understanding (MoU)

with ONICRA to provide performance and credit rating services to MSMEs. Rating creates

awareness about strengths, weaknesses, opportunities and threats relevant to the MSMEs

and assists in identifying areas of improvement. Under this scheme, a small scale unit pays

25 per cent of the rating fee to ONICRA, while the remaining 75 per cent is subsidised by

NSIC.

ONICRA has rated more than 45327 MSMEs since 2005.

NSIC scheme features

75% subsidy on NSIC-ONICRA Rating Fees

A Government of India initiative with NSIC

Turnover-based fee structure

Rating encompasses performance and credit factors

Benefits of NSIC-ONICRA Performance and Credit Rating

Assists in risk management by highlighting parameters measuring operational, financial and

business risk

Enhances acceptability with banks, financial institutions and provides access to cheaper

and timely credit

A ‘holistic health check-up of a unit’ that establishes credibility, goodwill and assists in

dealing with large companies

28

www.onicra.com

Helps in marketing and serves as first point to generate interest amongst potential

partners

OUR OFFICES

Visit us at: www.onicra.com

HARYANA

Gurgaon

Corporate Office & Rating

Office

5th Floor, Plot No, 21-22,

UdyogVihar Phase-1V

Gurgaon - 122015

India

GUJARAT

Ahmedabad

603, Aniket, Above Metro

Showroom, Opp. Jain

Derasar

C G Road, NavrangPura

Ahmedabad - 380009

India

TELANGANA

Hyderabad

#7-1-28/12/1

4th Floor, Serenity Plaza,

Shyam Karan Road

Near Andhra Bank

Ameerpet Branch, Ameerpet

Hyderabad - 500016

India

KARNATAKA

Bangalore

N-705, 7th Floor,

North Block,

Manipal Centre

47, Dickenson Road

Bengaluru - 560042

India

WEST BENGAL

Kolkata

3 D & F, 3rd Floor, Jindal

Tower, Block A, 21/1A/3,

Darga Road,

Kolkata - 700017

India

TAMIL NADU

Chennai

25, Ranganathan Garden,

Ground Floor, 15th

Main Road, Annagar West,

Chennai-600040, India

MAHARASHTRA

Mumbai

520, 5th Floor

Nirmal Corporate Centre

LBS Marg, Mulund (West)

Mumbai - 400080

India

UTTAR PRADESH

Noida

B10, Sector - 59

Noida - 201301

India

LUCKNOW

Aman Palace, Kanpur

Road, PuraniChungi,

Lucknow– 226005, India

Disclaimer

Information in this publication is intended to provide only a general outline of the subjects

covered. It should neither be regarded as comprehensive nor sufficient for making

decisions, nor should be used in place of professional advice. ONICRA Credit Rating

Agency of India Limited accepts no responsibility for any loss arising from any action

taken or not taken by anyone using this material.

http://www.onicra.com/

april–june 2016 smeinsights a newsletter from onicra

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