BusinessEditors' Take

Certified Credit Counsellors – Advisor to MSMEs

Certified Credit Counsellors - Advisor to MSMEs b-updated

The government of India (GOI) has laid thrust on the financial inclusion of those excluded in the development process. In the recent past, the government has introduced various schemes to evolve entrepreneurial India with a special focus on the Micro small and medium enterprises (MSME). Some of these schemes are Start-Up India, MUDRA, Stand Up India Make in India and Digital India. It has been felt to have a mechanism to link potential entrepreneurs with these
introduced initiatives and providing handholding especially in the area of credit, to begin with, and later in the related areas lie technology, skill, and marketing, etc. Let’s further discuss Certified Credit Counsellors.

Access to credit and handholding services are one of the key challenges being faced by the MSMEs. To address the issue, an institutional arrangement in the name of Certified Credit Counsellors (CCC) has been put in place under a framework laid down by the Reserve Bank of India. The scheme was launched by the Deputy Governor RBI on July 11, 2017. The role of Implementing and Registering the authority under the scheme is assigned to SIDBI to spearhead the initiative. Indian Institute of Banking and Finance IIBF) has been identified as Certification Agency and the services of CCCs shall be rendered through portal.

CCCs are a system of professional / counseling for MSMEs, which could help bridge the information gap and help banks to make better credit decisions. They can recommend the bank’s business proposals prepared by them. SIDBI has formulated the operational guidelines and hosted it on the udyamimitra portal, including FAQ.

The existing and potential entrepreneurs may avail of the services of the CCCs. The services shall be in the area of application filing, project report preparation, credit counselling, monitoring, access to subsidy support, etc. The names of the qualified CCCs shall be available in the portal and the loan aspirants can choose any based on their ratings given by the previous receiver of services. CCCs can charge a reasonable fee from the loan aspirants subject to a maximum allowed from time to time and mentioned in the portal. The bankers too shall be benefited in various ways. They will get the applications after preliminary scrutiny is done. Hence the applications shall be duly filtered based on the bankability of the proposals. The bankers will gain confidence as they will be in a position to make informed credit decisions. The sanctions will be faster and the potential entrepreneurs shall be encouraged to undertake the manufacturing and other commercial activities including services as they shall be able to access the financial system channel with greater ease and flexibility.

The following shall be the functions of a CCC:
  1. Identification of aspirant entrepreneurs;
  2. Preparing the application along with all the desired documents and information
  3. Verification of the primary information/data collected.
  4. Guiding and creating awareness about the schemes and facilities available.
  5. Processing and submission of applications online /offline to banks or financial institutions.
  6. Assisting in obtaining documentation, security charge creation and finally loan disbursements.
  7. Post-sanction monitoring
  8. Assisting in obtaining subsidy, if applicable.
read more
BusinessEditors' TakeFinanceTechnology


COVID 19 - DISASTROUS 2020 Business impact b-updated

Since the spread of Corona Virus (COVID-19) has increased; the manufacturing sector has planned to shift their units from China; emotional and Economic backlash against China is expected. COVID-19 have proven to be disastrous for China in 2020. Already, countries and companies are working on a strategy; to do away with China as part of their supply chain strategy. Japanese Govt has announced packages for its companies bringing back manufacturing home. Let’s further discuss the disastrous effects of COVID-19 in 2020.

Before the rise in the COVID-19 pandemic, the electronics industry witnessed modest growth globally. Electronic companies in India which are dependent on imports from China; are hoping that the effect of the COVID-19 outbreak would ease in the coming months with several factories in China ramping up their production after reopening.

However, hurdles rose in logistics, reduced footfalls in stores, and a drop in demand with the rapid spread of the virus to other countries, including India, have emerged as new challenges to the brands.

As the ongoing season proves to be a carnival for Consumer durables major, but it has given a blown away due to the upheaval in the normal flow of time. As they fear that they will lose out on peak summer sales as the ongoing lockdown is likely to have a severe impact on sales of air conditioners, refrigerators and other white goods.

Due to this outbreak, the consumers will also put a halt in their spending on the purchase of premium white goods products which will result in reduced demand. The COVID-19 impact will be felt on sales of appliances from March through May, which account for 30-35% of the total sales.

“The challenge which consumer durable brands may have to deal with both un-interrupted continued supply and well as generating the desired demand.“

For potential customers, health and safety will become a priority. Customers will tend to spend more on this area with reduced discretionary spending.

People will spend on cheaper goods than on expensive goods, or delay spending for a while.

Extreme acceleration in the digital economy. I.e. Home education, home entertainment, home fitness, etc. There have been overserved an increased demand in subscription of Netflix & Amazon Prime in India.

A pro-active step has been taken by the consumer electronics brands by extending their warranty on products; which were expiring in the duration of lockdown to connect well to the customers.

Brand Loyalty to go for a toss- People will be less loyal towards brands as other aspects will take over. Customers switching brands will become faster due to various other concerns like safety, discounts, etc.

Let’s hope that things fall in place soon with a continued livelihood.


-Ashutosh Sharma

read more

US Crude Oil Price Reality

US crude oil price reality: A simplified version of news about the crude oil going negative. Let’s discuss the US crude oil price reality further.

  • US Crude witnessed $ 0 bbl news happened in Crude WTI (Future & Options) FNO, where most of the oil traded via Futures Contract. It never happened before in the history of Crude Oil Trading.
  • Two famous Future Contracts
  • West Texas Intermediate (WTI) – Oil from North America
  • Brent – Oil from the Middle East, Europe & Russia
  • Oil Price that gone negative is the settlement price for May 2020.
  • Settlement happens in two forms for Crude Oil Future Contract which is Net Settlement and Physical Delivery. Net Settlement – Allows buyers to settle the financial difference between buying price & settlement price
  • In case of Future Contract, the buyer does not opt for net settlement on or before notice period as the same incident happened last week for “May 2020” delivery, then it is assumed to be taking physical delivery of the underlying quantity of Crude Oil.
  • Buyers stuck with a physical delivery option that means that they have to take physical delivery which is not possible as they don’t have storage capacity which pushed the May 2020 Delivery Contract into negative.
  • As Future Crude Oil Price touched -37 points means sellers were paying buyers (refiner, storage facility, or a driller) to make deliveries in a bid to avoid incurring storage costs.
  • Texas Crude Oil Producers are facing a problem of glut.

Another News:

Oil bears, riding on the fever-pitch negative sentiment in crude since Monday’s historic subzero prices, pounded the West Texas Intermediate’s June contract by 54%, or $11.30, to $9.15 per barrel as U.S. benchmark poised for its lowest finish in 21 years. (Yahoo Finance)

Way Forward

Crude oil prices going ahead will depend on how long the lockdown stays and whether there is an extension. Experts say expectations are that production will fall by 1.7-2.0 million BPD by end-2020. It remains to be seen if the pace of the production fall will enough to stem the collapse in price.

read more



WORK FROM HOME A BLISS FOR COMPANIES..hmm, right now seeing the condition of the world, no one has a choice. But being an enterprise, every one of them works according to their inherent nature, i.e to earn profits. Great applications, cheap internet, and technologically driven business systems; have given companies yet another reason to improve their chunk of gains. Let’s thought some light on ‘work from home a bliss or boon for companies’.

This practice of remote working not only offers benefits to the business but also to employees alike:

  1. Employee benefits from flexibility.
  2. avoid long commutes- which impacts their job satisfaction.
  3. Aids in better focus as they avoid office distractions.
  4. Businesses improve their gains by reducing office management costs.
  5. Remote working allows a business to attract top talents from across the globe.

The above points clearly state that telecommunicating poses many advantages to both sides of the coin.

However, remote work program has a significant downside. They more often than not obstruct organization from creating and cementing their company cultures which is solidified in large part; by employees coming together and taking an active part in team-building activities and division or companywide meetings.

Should company culture/values be overlooked for the favor of convenience that remote working offers?

So the next question arises, should company culture/values be overlooked for the favor of convenience that remote working offers? working on company culture is not just for its own sake. It gives multiple advantages to the employees and the organization; i.e employee retention, satisfaction, and productivity.

The answer to the above question is simple; when employees vividly engage a company’s value, they are more likely to be participative. Actively engaging with the work is particularly important in today’s world- one study also affirms the same; companies with high engagement enjoy better customer loyalty, profitability, and productivity than their competitors.

Furthermore, it gets even more important when companies aim for long term success as a professional culture/values play a significant part in achieving the desired results.

Keeping in mind all the above benefits of traditional work culture/values, work from home policies do not help in maintaining that and affects it in the following way:
  1. Teams, colleagues secluded from each other:
    When employees work exclusively from home, they are only likely to interact with their colleagues via email and calls. Remote working does not benefit from building meaningful relationships with coworkers as physically being present in the office does.
  2. The feeling of isolation among remote distant employee:
    Humans being social creatures, cut off and living in isolation makes them detrimental and affects their mental health. Remote working also causes anxiety, WFH programs do not render services like connections, trust and mutual purpose which makes employees struggle with office politics, bad thoughts and unnecessary confusion diverting them from their common aim.
  3. Difficult to cultivate motivation and enthusiasm. :
    As already mentioned above, lack of contact and physical interaction among employees degenerates team building and distract teams from a common goal. This creates a ripple effect and affects their motivation, enthusiasm towards work and organization.
    Unless they are 100% enthusiastic about their product/ service, they lack productivity, which becomes another challenge as it gets difficult to motivate remote employees over digital platforms.


It is true, WFH programs have their pros and cons, but some companies around the world are managing using this tool effectively. To successfully deploy this management style, every management is required to study their needs, behavioral patterns of their employees, make consistent changes to suite their respective teams and avoid inherent problems of this quickly getting popular management style.

read more

Covid-19 vs Indian Stock Market

stock covid-19 india b-updated

The story of the mayhem in the Indian stock market, currently in the grip of a global pandemic of covid-19. The average fall in each is within the 25-30 percent range. The same mentioned in the graph as Sensex, which fell from a peak of 42,000 points this January 17 to below 30,000 in three months and Nifty witnessed from 12000 to below 7000 points. The Indian Stock Market after the rise of covid-19 has steeply fallen.

After WHO declared COVID-19 a pandemic, the financial markets, as well as other asset categories such as real est­ate, commodities, crude oil, and bullion, it is the rare, completely unexpected. As more Western nations, and others like India, declare economic shutdowns and travel restrictions, the worst may still be in the future. The short-term disruptions are likely to be severe.

Due to COVID-19 situation:

RBI has reduced the timing of debt as well as the currency market in light of the lockdown amid the coronavirus outbreak. Currently,
• Money market trades timings from 9 am to 5 pm.

After a severely beaten stock, most investors are following the ‘buy-on-dips’ strategy but, they are forgetting that companies that have performed in the past are not necessarily going to emerge winners post this pandemic. It is extremely essential to analyze the impact of lockdowns and restrictions in trade on businesses before buying them. Since there is uncertainty in how long the lockdown will last or if it will be extended, it is too early to assess the gravity of the crisis.

Identify attractive sectors:

To identify the right stocks for long term investment as fundamental of the company have to be stronger which decides the future growth in deciding its return potential. Companies who use the raw material to benefit from low crude prices, thus, helping them improve their margins. The reason being Global easing and low crude oil prices are expected to help RBI see-through transient inflation. All these combinations make Indian equity markets relatively better off, compared to its global peers and sectors like private banking, autos, consumer staple & discretionary consumption plays, specialty chemicals, etc. are expected to report quicker recovery. RBI is expected to ease policy rates in an upcoming bi-monthly meet in the first week of April 20.

5 points should consider before buying stocks:
  • Management
  • Growth Prospects
  • Valuations
  • De-leveraged companies
  • Technological Driven Businesses
Large & Mid Cap Stocks

52 Week/1Yr High – Jan 2020 data
52 Week/1 Yr Low- Mar 2020 data
Current Market Price (CMP) – Apr 2020 data
These are some of the **stocks in the large-cap in different sectors, For e.g; if X would have bought 1L worth of shares of Reliance Ind. at 52 week low, he would have earned 40.46% of profit means 40k in few days.


Rule of thumb in asset allocation states that individuals should hold a percentage of stocks equal to 100 minus their age. So, for a typical 60-year-old, 40% of the portfolio should be equities. The rest would comprise of high-grade bonds, government debt, and other relatively safe assets. As a famous monologue says Investments are subject to market risk please read the documents carefully. Indian Market Indices since inception have always surged within a year from the depression whether it’s global or domestic.

Disclaimer: The views and investment tips expressed are personal views. I advise users to check with certified experts before taking any investment decisions.

**Stocks shown in this article are for example only. A lot of exceptions are considered.

read more
BusinessEditors' TakeFinance

India – after COVID-19 pandemic

India covid-19 pandemic finance articles b-updated

Covid – 19 has spooked one and all, from businesses and policy makers to economists and central banks, and led to a disruption of global value chains. But on the up side, as it is always said, every cloud has a silver lining, this article puts light on how this pandemic can prove to be a silver linning to india for manufacturing front and how it can make india stand out as one of the toughest countries that fought this era with courage.

Manufacturing Diversification towards India:

This unfortunate event has caused significant disruption to economic activity across the world as nations enforce lockdowns. China has been the biggest exporter of steel, chemicals, toys rare earths, mobiles electronics, garments bulk drugs and many other items in the world. Shutdown of manufacturing, transportation and shipping in various countries has disrupted supply chains of raw materials and end use products. Most of the companies worldwide have realized the risk of depending too much on one country for their sourcing needs.

Hence, there Is a scope for further diversification, which can result in better manufacturing opportunities for india leading to skill enhancements and job creation.

Important team player during Covid 19 :

India is the world’s largest manufacturer of hydroxychloroquine (HCQ), producing nearly 70 percent of the world’s supply. In efforts to curb virus by China, it demonstrated that anti malarial drug shortened the duration and reduced the severity of cough, fever and pneumonia in patients with mild and moderate disease. This relief has turned the world towards India and has made it an integral part of defence system towards Covid 19.

When successfully supplied to all required nations, india will prove to be an important team player in this crisis, strengthen India’s trust among other nations not for just during Pandemic but even for world economy after it.

The current scenario will not only help India in building better relations with other nations but also within the nation. All states are fighting against the pandemic together and hence, unity between state governments has enhanced.

To conclude, while the virus has affected the economy drastically, it will also help create more job opportunities and growth of new industries in the market. It can be taken as an opportunity to explore new business horizons.

read more
BusinessEditors' TakeFinance

NBFCs and MFIs in India during Covid-19

B-updated mfi nbfc covid-19 india

People often confuse the role of MFIs(Microfinance Institutions) and NBFCs(Non-Banking Financial Institutions). However, it turns out both aid with financial services, are different. NBFCs perform functions similar to banks in the absence of banks in rural areas. MFI stands for micro finance institutions and operate at a further smaller level than NBFCs. MFIs provide very small loans to the underprivileged sections of the society.

The RBI said on March 27 that it would lend as much as ₹1 lakh crore to banks under the TLTRO mechanism to ease funding pressure for corporates that was to be invested in primary and secondary market bonds and commercial papers in equal measure. It also reduced the repo rate to 4.4 per cent, the lowest in 15 years. The pandemic hit these institutions with the measures taken by the RBI on 27th March.

Both Sa-dhan, India’s largest microfinance industry body with 212 members, and Microfinance Institutions Network (MFIN), the industry grouping for NBFC-MFIs, separately urged the prime minister to take action.

MFIN said in its letter dated April 13 to the PM “We request you to direct the RBI to instruct all banks and other lenders to kindly pass on the same moratorium (benefit) to us, as all of us are giving to others. This simple step will go a long way to support the aspirations and livelihoods of millions of enterprising women across our nation,”.

On 17th April, along with reduction in the reverse repo rate to 3.75 percent, RBI also provided the much-needed liquidity support to non-banking financial companies (NBFCs) and microfinance institutions (MFIs) by announcing a second trail of targeted long-term repo operation window (TLTRO 2.0) of at least ₹50,000 crore. The Reserve Bank said it will conduct the first auction under the Targeted Long-Term Repo Operations 2.0 (TLTRO) for an amount of Rs 25,000 crore on April 23.

Under the TLTRO 2.0 window, banks can access three-year funding from the RBI to invest in investment-grade papers of NBFCs, with at least 50% invested in small- and mid-sized NBFCs and MFIs.

Within this, 10% will be invested in securities issued by MFIs, 15% in securities issued by NBFCs with asset size of ₹500 crore and below, and another 25% in securities issued by NBFCs with asset size of ₹500-5,000 crore.

The central bank will make available further liquidity under this facility, depending on the pattern of utilization and requirement, assured RBI governor Shaktikanta Das. The measure has aimed at maintaining liquidity in the system, facilitating and incentivising banks to ensure better credit flow and enabling normal functioning of the financial markets.

The funds availed under TLTRO 2.0 shall be deployed in investment grade bonds, commercial paper (CPs) and non-convertible debentures (NCDs) of Non-Banking Financial Companies (NBFCs),” the RBI said in a notification.

Out of the 50 per cent funds availed, 10 per cent should go for securities issued by micro-finance institutions (MFIs) while 15 per cent towards instrument issued by NBFCs with asset size of Rs 500 crore and below. Remaining 25 per cent to be earmarked for instruments issued by NBFCs with assets size between Rs 500-5,000 crore, it added.

read more
BusinessEditors' TakeFinance


b-updated, msme, business, role


The Micro Small and Medium Enterprises make up over 90% of total enterprises in most of the economies and generate the highest rates of employment. It also account for a major share of industrial production and exports. The MSMEs play an important role in the growth of industrial economy of the country.Indian Economy is no exception. In India, the micro small and medium enterprises is considered as the engine of growth and for facilitating equitable development in the country. The component of employment of labour in this sector is much higher than that of the large enterprises.

Present Policy Framework: 

The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 facilitates the development of these enterprises and enhancement of their competitiveness. It provides the legal framework for recognition of the concept of “enterprise”, which comprises both manufacturing and service entities. It defines medium enterprises and seeks to integrate the three tiers of these enterprises, namely, micro, small and medium. It also provides for a State monitored administration at the national level with representation of all sections of stakeholders, particularly the three classes of enterprises

Employment Opportunities:

MSME sector in India creates largest employment opportunities for the population next only to agriculture. It has been calculated that an investment of approx. Rs 1 lakh in fixed assets in SSI sector creates employment for four persons. Not only this, the MSMEs also help in Industrialization of rural areas, reducing regional imbalances and assuring more equitable distribution of national income and wealth.

In fact, this sector is complimentary to the large industries and contribute largely towards the social and economic development of the country.  The MSME contributes significantly to manufacturing output, exports and employments of the country. In terms of value, the sector accounts for about 45% of the manufacturing and 40% of total exports of this country. It is estimated to employ about 6 Crore persons in over 2.6 Crore units throughout the country. There are over 6000 products ranging from traditional to high-tech items, which are being manufactured by 35 categories of MSMEs in India. It is well known that the MSME sector provides maximum opportunities for both self-employment and wage-employment, outside agriculture sector. MSME sector contributes not only to higher rate of economic growth but also in building an inclusive and sustainable society in countless ways through creation of non-agriculture livelihood at low cost, balanced regional development, gender & social balance, environmentally sustainable development and to top it all, proofing of recession in economic growth which the sector has proved time and again.


 The opportunities in the MSMES are extensive due to the following factors:

  • Less Capital Intensive
  • Extensive Promotion & Support by Government
  • Reservation for Exclusive Manufacture by MSME
  • Funding – Finance & Subsidies 
  • Project Profiles
  • Raw Material Procurement
  • Machinery Procurement
  • Technical & Managerial skills
  • Tooling & Testing support
  • Manpower Training
  • Export Promotion
  • Growth in demand in the domestic market size for products and services of MSME.
  • Reservation of items for exclusive purchase by government
  • Increasing Export Potential for products and services.
  • Growth in Requirements for ancillary units.

The promotional and protective policies of the government have ensured the presence of MSME in an unbelievable range of products, especially in consumer goods. However, the handicap of the sector has been the inadequacies in capital, technology and marketing. The process of liberalization along with Government support will attract the infusion of just these things in the sector. The MSME sector has performed remarkably well and enabled our country to achieve a wide measure of industrial growth and diversification. By its less capital intensive and high labour absorption nature, the sector has made significant contributions to generate employment and increase rural industrialization. This sector is optimally suited to build on the strengths of our traditional skills and knowledge, by introducing latest technologies, easy capital and innovative marketing practices. 

read more
**New** Live coronavirus updates

Our site is now supporting the world with fight against coronavirus, a live trackr is added to our site, B-Updated guys