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SUMMER TRAINNING REPORT ON

ROLE OF NSIC IN DEVELOPING THE MICRO, SMALL & MEDIUM SCALE INDUSTRIES OF INDIA

FOR NATIONAL SMALL INDUSTRIES CORPORATION

BY ABHISHEK KAR
In Partial fulfillment for the award of the degree

MASTER OF BUSINESS ADMINISTRATION & POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT 2010-2012

NEW DELHI INSTITUTION OF MANAGEMENT

SUMMER TRAINNING REPORT ON

ROLE OF NSIC IN DEVELOPING THE MICRO, SMALL & MEDIUM SCALE INDUSTRIES OF INDIA

FOR

NATIONAL SMALL INDUSTRIES CORPORATION

Under the supervision of

Mr. Deboprasad Ghatak

(Sr. Branch manager of NSIC)

Submitted by ABHISHEK KAR

Submitted toMrs. Abha Grover

ACKNOWLEDGEMENT

I express my sincere gratitude to Mr. Deboprasad Ghatak (Sr. Branch Manager of NSIC, Guwahati) and Mr. Jayanta saha (Business Development Manager of NSIC, Guwahati) for providing me an opportunity to work on this project. I am very grateful for their constant support and guidance throughout the duration of the entire project. Acknowledgements are also due to all the other staff in NSIC, Guwahati, Branch for providing information at various point of the project, especially the discussions on the market. I also express my sincere thanks to Miss Abha Grover (Faculty Mentor) for his sincere cooperation, guidance and support. Lastly, I thank my parents, family members and friends for their constant support in my endeavor.

ABHISHEK KAR ROLL NO.- E-1

DECLARATION

I Abhishek Kar student of New Delhi Institution of Management Batch July 2010-2012 declare that every part of the Project Report detailed ROLE OF NSIC IN DEVELOPING THE MICRO, SMALL & MEDIUM SCALE INDUSTRIES OF INDIA that I have submitted is original. I was in regular contact with the nominated guide and contacted regularly for discussing the project. Date of project submission :

Facultys Comments : Signature of Faculty guide - . Name -

TABLE OF CONTENTS
Ch Title Page No.

1. Executive Summary 2. Introduction 3. Objectives of NSIC 4. Board Of Directors 5. Marketing strategies of NSIC 6. Performance and achivement 7. NSIC short term financing schemes a. Raw materials assistance scheme b. Bill discounting scheme 8. Details of work done 9. SWOT analysis 10. Research Methodology 11. Questionnaires 12. Data Analysis 13. Key findings 14. Suggestions 15. Bibliography

6 7 -8 9-10 11 12-20 20-23

23-43 43 - 45 45-46 47-48 48-50 51 - 53 54-63 64 65 67

Executive Summary
During the course of two months the project- detailed study of Role of NSIC in promoting the micro, small and medium scale industries of India was carried out in Guwahati city for determining the goodwill of NSIC and also to determine the potential and efficiency of NSIC registration schemes for development of small industries of Guwahati. The mode of sample methodology is random. The sample unit is small industries whether registered or not registered under NSIC. Research approaches observation and survey. The research instrument used is questionnaire. The geographical condition of Guwahati favors a lot in the field of industrial finance as being a hub of north east and the capital of ASSAM. It provides great immense for the small scale industrial sector. The final conclusion after the analysis done on the data acquired during the survey is that Guwahati is a fast developing city with a great future for business units. All that needs to be done by the NSIC is that create an awareness about the prevailing schemes and also introduce new schemes prevailing to the market trend of Guwahati and they should even keep a keen watch over the activities and schemes of other players in the city. There are various steps that are being done to improve their marketing strategies as being the leader in Raw materials and government purchase in the region to make it customer friendly. NSIC is also giving its best effort to create awreness by conducting programmes (EDP) like Entrepreneurship Development Programme

INTRODUCTION

National Small Industries Corporation Ltd. (NSIC), is an ISO 9001-2008 certified Government of India Enterprise under Ministry of Micro, Small and Medium Enterprises (MSME). The strategic objectives, for which the Corporation was established, included to aid, counsel, assist, finance, protect and promote the interest of small industries in India. With enactment of the Micro, Small and Medium Enterprises Development (MSME) Act, 2006, medium enterprises also came into ambit. NSIC has been working to fulfill its mission of promoting, aiding and fostering the growth of small industries and industry related micro, small and medium enterprises in the country. Over a period of five decades of transition, growth and development, NSIC has proved its strength within the country and abroad by promoting modernization, upgradation of technology, quality consciousness, strengthening linkages with large medium enterprises and enhancing exports projects and products from small enterprises. NSIC operates through countrywide network of offices and Technical Centres in the Country. To manage operations in African countries, NSIC operates from its office in Johannesburg, South Africa. In addition, NSIC has set up Training cum Incubation Centre & with a large professional manpower, NSIC provides a package of services as per the needs of MSME sector. NSIC carries forward its mission to assist small enterprises with a set of specially tailored schemes designed to put them in a competitive and advantageous position.

The schemes comprise of facilitating marketing support, credit support, technology support and other support services. NSIC has embarked upon creating self-employment opportunities by imparting training in entrepreneurship, building and skill development to unemployed persons who intend to set up their small enterprises or seek employment opportunities . for this purpose, NSIC is operating through its Technical Service Centers at various locations across the country. NSIC has established innovative low cost technology incubators for rapid incubation for small enterprise establishment at its Technical Centers in india.

OBJECTIVES OF NSIC FOR REGISTERED INDUSTRIES

We shall endeavor to provide effective and prompt service so as to achieve total customer satisfaction at all times. We shall continuously upgrade our service quality, Communication facilities and the skill sets to meet customer requirements efficiently.
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We shall constantly adapt, innovate and refine our processes in line with global business trends to maintain credibility and leadership in our field.

We commit ourselves for fair play, transparency and sincere endeavor for the promotion and growth of Micro, small & Medium Enterprises.

We shall strive to achieve operational efficiency by attaining better productivity and profitability. We shall abide by statutory and legal regulations while carrying out our activities.

OBJECTIVES OF NSIC AS AN ORGANISATION (SELF OBJECTIVES)

yEnhance

reach of the Corporation resulting in growth in its business.

To achieve operational efficiency and self-sustenance by attaining better productivity and profitability.

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To upgrade the professional skills of all employees keeping in pace with business needs.

To provide safe, clean, hygienic & congenial work environment for effective contribution by every employee.

Additional NTSC/NTSECs Objectives are as below: To provide training for skill upgradation of trainees leading to opportunities for their employment/self employment. To provide common facility services to industries for enhancing their competitiveness and quality.

ORGANISATIONAL SET-UP The Policy guidelines to the Corporation are provided by the Board of Directors consisting of a full time Chairman-cumManaging Director; two Functional Directors; two Government Nominee Directors, one SIDBI Nominee Director and six Nonofficial Part -time Directors. The Corporation has a dedicated team of professionals at all levels and operates through 123 offices located all over India and one office located at Johannesburg (South Africa).

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BOARD OF DIRECTORS AS ON 30.11.2010 NATIONAL SMALL INDUSTRIES CORPORATION LTD.

NAME S.No 1. Dr. H.P. KUMAR

PARTICULARS Chairman-cum-Mg.Director NSIC Ltd. NSIC Bhavan , Okhla Indl. Estate, New Delhi Director (Finance) NSIC Ltd. NSIC Bhavan , Okhla Indl. Estate,New Delhi Director (Plg. & Mkg.) NSIC Ltd. NSIC Bhavan , Okhla Indl. Estate, New Delhi Joint Secretary ,Ministry of MSME, Udyog Bhavan New Delhi Economic Advisor,Ministry of MSME,Udyog Bhavan New Delhi Deputy Managing Director SIDBI, SME Development Centre,C-11, G-Block Bandra Kurla Complex Bandra (East) Mumbai - 400 051 Managing Director M/s. Hind Agro Indus. Ltd. A-1, Okhla Indl. Area PhaseI New Delhi-110 020 Director M/s. Jai Raj Ancillaries P. Ltd. 3B/23, B.P., NIT, Faridabad-121001

TELEPHONE No. 011-26927172 / 26926067 Fax: 011-26926820 Email: cmd@nsic.co.in 011-26319452 Fax -011-26927758 Email:dfnsic@gmail.com dfin@nsic.co.in 011-26927327 Fax: 011-26927307 Email : dpm@nsic.co.in Tele Fax 011-23062336 011-23063283 Email: js.sme@nic.in amrsinha@gmail.com 011-23063433 Email: manchanda@nic.in 022-26520025 Fax : 022-26541124 Email: proy@sidbi.in

2.

SHRI RAVINDRA NATH

3.

SHRI P. UDAYA KUMAR

4.

SHRI AMARENDRA SINHA

5.

SH. R.K. MANCHANDA

6.

SH. RAKESH REWARI

7.

SH.SIRAJUDDIN QURESHI

011-26372786-92 Fax 011-26817941-42 Email: sirajuddinq@yahoo.com 0129-2412089/2414468 Fax 0129-4055501 Email: rajivchawlaindia@yahoo.com rajiv@jairajgroup.com japl@jairajgroup.com

8.

SH. RAJIV CHAWLA

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Marketing Strategies

Marketing, a strategic tool for business development, is critical to the growth and survival of small enterprises in today's intensely competitive market. NSIC acts as a facilitator to promote small industries products and has devised a number of schemes to support small enterprises in their marketing efforts, both in an outside the country. These schemes are briefly described as under: Consortia and Tender Marketing: Small Enterprises in their individual capacity face problems to procure & execute large orders, which inhibit and restrict their growth. NSIC, accordingly adopts Consortia approach and forms consortia of units manufacturing the same products, thereby easing out marketing problems of SSIs. The Corporation explores the market and secures orders for bulk quantities. These orders are then distributed to small units in tune with their production capacity. Testing facilities are also provided to enable units to improve and maintain the quality of their products conforming to the standard specifications.

Financing for Marketing Activities (Short term) NSIC facilitates financing for marketing actives such as Internal Marketing, Exports and Bill Discounting.

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Finance through syndication with Banks In order to ensure smooth credit flow to small enterprises, NSIC is entering into strategic alliances with commercial banks to facilitate long term / working capital financing of the small enterprises across the country. The arrangement envisages forwarding of loan applications of the interested small enterprises by NSIC to the banks and sharing the processing fee.

Performance and Credit Rating Scheme for small industries To enable small enterprises to ascertain the strengths and weaknesses of their existing operations and take corrective measures to enhance their organizational strength. NSIC is operating a Performance and Credit Rating Scheme through empanelled agencies like ICRA, ONICRA, CRISIL, FITCH, CARE, BRICKWORK RATINGS and SMERA. Small enterprise has the liberty to choose any of the rating agencies empanelled with NSIC. Rating agencies will charge the credit rating fee according to their policies. The benefits to small enterprises are as follows:
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An independent, trusted third party opinion on capabilities and credit worthiness of small enterprises.

Good rating to enhance the acceptability of the small enterprise with Banks. FIs, customers and buyers.

Facilitate prompter credit decisions from Banks on proposals of SSI units.

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75% of the credit rating fee subject to a maximum of Rs. 25,000/- will be reimbursed to the small enterprise having a turnover upto Rs.50 lakh by way of grants.

75% of the credit rating fee subject to a maximum of Rs. 30,000/- will be reimbursed to the small enterprise having a turnover above Rs.50 lakh to Rs.200 lakh by way of grants.

75% of the credit rating fee subject to a maximum of Rs. 40,000/- will be reimbursed to the small enterprise having a turnover above Rs.200 lakh by way of grants. Insurance of Export Credit for Micro and Small Enterprises

NSIC is facilitating micro and small enterprises to insure their export credits by entering into strategic alliance with Export Credit Guarantee Corporation of India Limited (ECGC). MSEs would be helped in insuring their export credits through any office of the Corporation, located all over the country. This arrangement is made to strengthen pr Credit Support: NSIC facilitates credit requirements of small enterprises in the following areas Financing for procurement of Raw Material (Short term) NSIC's Raw Material Assistance Scheme aims at helping Small Enterprises by way of financing the purchase of Raw Material (both indigenous & imported). The salient features are 1. Financial Assistance for procurement of Raw Materials upto 90 days. 2. Bulk purchase of basic raw materials at competitive rates.

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3. NSIC facilitates import of scares raw materials. 4. NSIC takes care of all the procedures, documentation & issue of letter of credit in case of imports.

Single point Registration for Government Purchase: NSIC operates a single Point Registration Scheme under the Government Purchase Programme, wherein the registered SSI units get purchase preference in Government purchase programme, exemption from payment of Earnest Money Deposit etc.
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Issue of tender sets free of cost. Advance intimation of tenders issued by DGS&D. Exemption from payment of earnest money. Waiver of security deposit up to the monetary limit for which the unit is registered.

Issue of competency certificate in case the value of an order exceeds the monetary limit, after due verification.

B2B Web Portal : NSIC Infomediary is a Business-to-Business (B2B) Portal that has been established to give online services for small and medium time importers, exporters and service providers in India. The portal is an initiative to provide business opportunities to small businesses, firms and small scale units to expand further. Thus, anyone involved in business activities and wants to utilize the strength and visibility of Internet can join NSIC Infomediary. Those who look for promotion and prospect for their trade and products/services can also join NSIC Infomediary.

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Marketing Intelligence : Collect and disseminate both domestic as well as international marketing intelligence for the benefit of MSMEs. This cell, in addition to spreading awareness about various programmes / schemes for MSMEs, will specifically maintain database and disseminate information. Exhibitions and Technology Fairs: To showcase the competencies of Indian SSIs and to capture market opportunities, NSIC participates in select International and National Exhibitions and Trade Fairs every year. NSIC facilitates the participation of the small enterprises by providing concessions in rental etc. Participation in these events exposes SSI units to international practices and enhances their business prowess. Buyer-Seller meets: Bulk and departmental buyers such as the Railways, Defence, Communication departments and large companies are invited to participate in buyer-seller meets to enrich small enterprises knowledge regarding terms and conditions, quality standards, etc required by the buyer. These programmes are aimed at vendor development from MSMEs for the bulk manufacturers. Technology Support Technology is the key to enhancing a company's competitive advantage in today's dynamic information age. Small enterprises need to develop and implement a technology strategy in addition to financial, marketing and operational strategies and adopt the one that helps integrate their operations with their environment, customers and suppliers.

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NSIC offers small enterprises the following support services through its Technical Services Centres and Extension Centres 1. Advise on application of new techniques 2. Material testing facilities through accredited laboratories 3. Product design including CAD 4. Common facility support in machining, EDM, CNC, etc. 5. Energy and environment services at selected centres. 6. Classroom and practical training for skill upgadation Infomediary Services Information today is becoming almost as vital as the air we breathe. We need it every minute of our working lives. With increase in competition and melting away of international boundaries, the demand for information is reaching new heights. NSIC, realizing the needs of MSMEs, is offering Infomediary Services which is a one-stop, one-window bouquet of aids that will provide information on business, technology and finance, and also exhibit the core competence of Indian SMEs.

Membership Benefits
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Tender & Trade Information. Banner display on NSIC Website Access to a wide range of technologies from India and abroad. Access to national and international business leads, JV opportunities and trade information.

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Comprehensive information on Government policies, rules and regulations, schemes and incentives.

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Access to industrial databases and member's directory. Various value added, specialized services for members of Infomediary Service.

Software Technology Parks NSIC Software Technology Parks (STPs) facilitate small enterprises in setting up 100% export-oriented units for software exports. They also act as nodal point to activate software exports directly through NSIC. These STPs extend support in terms of the requisite infrastructure to the small enterprises to start business operations with a minimum lead time.The scheme is governed by STPI regulations of the Ministry of Information Technology, Government of India. NSIC established the first STP at Okhla, New Delhi in 1995 and second in Chennai in 2001. Several small enterprises have taken advantage of these parks and contributed export earnings to the exchequer.

Incubation of unemployed youth for setting up of New Micro & Small enterprises This programme facilitates setting up of new enterprises all over the country by creating self-employment opportunities for the unemployed persons. The objective of this scheme is to facilitate establishment of new small enterprises by way of providing integrated services in the areas of training for entrepreneurial skill development, selection of small projects, preparation of project profiles/reports, identification and sourcing of plant, machinery and equipments, facilitating

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sanction of credit facility and providing other support services in order to boost the development of small enterprises in manufacturing and services sectors.

International Cooperation NSIC facilitates sustainable international partnerships. The emphasis is on sustainable business relations rather than on one-way transactions. Since its inception, NSIC has contributed to strengthening enterprise-to-enterprise cooperation, south south cooperation and sharing best practices and experiences with other developing countries, especially those in the African, Asian and Pacific regions. The features of the scheme are:
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Exchange of Business / Technology missions with various countries. Facilitating Enterprise to Enterprise cooperation, JVs, Technology Transfer & other form of sustainable collaboration.

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Explore new markets & areas of cooperation: Identification of new export markets by participating in sector- specific exhibitions all over the world.

Sharing of Indian experience with other developing countries

International Consultancy Services For the last five decades, NSIC has acquired various skill sets in the development process of small enterprises. The inherent skills are being networked to offer consultancy services for other developing countries. The areas of consultancy are as listed below:

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1. Capacity Building 2. Policy & Institutional Framework 3. Entrepreneurship Development 4. Business Development Services PERFORMANCE AND ACHIVEMENT National Small Industries Corporation Ltd (NSIC), a Government of India enterprise under the aegis of Ministry of MSME, achieved record operational and financial performance in terms of gross volume of business and profitability in the recently concluded financial year 2009-10. The year witnessed the Corporation achieved new heights on all parameters. There was substantial improvement in enhancing the companys outreach and its volume of operations. With the opening of new offices the Corporation expanded its reach to serve larger number of MSMEs, making the total number of NSIC offices 123. The Business Turnover of the Corporation for the year jumped to Rs. 4488 crore over the previous years turnover of Rs. 3508 crore. NSIC continued with its efforts to provide various raw materials like steel, aluminum, zinc, copper, paraffin wax etc to MSMEs through arrangements made with bulk manufacturers of these materials. In addition, the Corporation also started distribution of Coal to MSMEs in West Bengal. Total raw material facilitation to MSMEs increased from 302164 MTs in the year 2008-09 to 355719 MTs in the year 2009-10.

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The Corporation during the year provided credit support of Rs. 1056 crore to MSMEs as against Rs. 688 crore provided during the previous financial year, registering a growth of 53%.

In the year 2009-10, total 3327 new units were registered under Single Point Registration Scheme, while in the previous year 2677 units were registered.

Under B2B portal, total 3802 members were added during the year 2009-10, as against 2808 members made under Infomediary Services in the year 2008-09.

The Corporations revenue from its above mentioned two membership schemes during the year 2009-10, increased to Rs. 5.55 crore from Rs. 4.12 Crore in the year 2008-09, registering the growth of 35%.

The performance of NSICs Technical Centres also showed remarkable improvement in the year 2009-10. The aggregate income of the technical centres rose from Rs. 12.54 crore in the year 2008-09 to Rs. 17.16 crore in the year 2009-10, registering a growth of 37%.

Under the Performance & Credit Rating Scheme, total 7531 micro & small enterprises were rated during the year, as against 5011 units rated in the previous year.

NSIC organized 963 Marketing Promotion events including participation / organization / co-sponsoring of exhibitions, buyer-sellers meets and marketing campaigns as compared to 874 events in the previous year 200910. NSICs Techmart 2009 organized at the India International Trade Fair during November, 2009 was awarded Gold Medal for outstanding display of the MSMEs technology and products.

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During the year, NSIC continued its initiative to set up new Training-cum Incubation centres under Public-Private Partnership (PPP) mode for the purpose of inculcating entrepreneurial skills in the youth by way of skill development through which they become employable or create their own enterprises. So far, 45 such centres have been established at various locations in the country. These are in addition to three incubation centres opened at our technical centres. During the year, 8364 candidates were trained at these centres.

The overall improved performance resulted in achievement of higher profit. The Corporation, during the year achieved operating profit of Rs. 28.13 crore, showing a jump of 205.43% over the operating profit of Rs. 9.21 crore in the previous financial year. After amortization of VRS expenditure of Rs. 2.12 crore, the Corporation has earned a net profit (before tax) of Rs. 25.94 crore, as compared to Rs. 6.92 crore earned during the previous year. The major highlights of the achievements of the Corporation for the financial year 2009-10 are briefly summed up here-below: Under the Performance & Credit Rating Scheme, total 7531 micro & small enterprises were rated during the year, as against 5011 units rated in the previous year. NSIC organized 963 Marketing Promotion events including participation / organization / co-sponsoring of exhibitions, buyer-sellers meets and marketing campaigns as compared to 874 events in the previous year 2009-10. NSICs Techmart 2009 organized at the India International Trade Fair during November,

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2009 was awarded Gold Medal for outstanding display of the MSMEs technology and products. During the year, NSIC continued its initiative to set up new Training-cum Incubation centres under Public-Private Partnership (PPP) mode for the purpose of inculcating entrepreneurial skills in the youth by way of skill development through which they become employable or create their own enterprises. So far, 45 such centres have been established at various locations in the country. These are in addition to three incubation centres opened at our technical centres. During the year, 8364 candidates were trained at these centres. NSIC SHORT TERM FINANCING SCHEMES NSIC Short Term Financing Schemes will comprise of the following: - Raw Material Assistance - Bill Discounting Each of these schemes are being separately discussed hereunder:-

Raw Material Assistance

1. NAME OF THE SCHEME The Scheme is called as the RAW MATERIAL ASSISTANCE SCHEME (RMA).

2. PURPOSE OF THE SCHEME

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In order to assist the Micro, Small and Medium Enterprises in procuring their essential raw material(s), NSIC arranges to provide raw material as per specific needs and requirement of the unit(s). The facilitation under the scheme is towards: Procurement of bulk raw materials namely Aluminium, Zinc, Copper, Iron & Steel etc. which are arranged through NSIC entering into a Memorandum of Understanding with their manufacturers. Other Raw Materials wherein NSIC merely makes direct payment to the supplier / manufacturer of the raw material on the specific request of the Micro, Small and Medium Enterprises.

3. TYPES OF ASSISTANCE The assistance under Raw Material Assistance is being provided in the following ways: 1)Raw Material Assistance against security of Bank Guarantee of approved banks/ Fixed Deposit Receipts ofnationalized banks / Security Deposit Receipts of NSIC.

(II)Raw Material Assistance Scheme: Agency Sale /bulk supplies including Godown operations and Scheme on arrangement & distribution of Iron and steel for MSMEs. (a) Against Advance Payment made by the MSMEs. (b) With financial assistance provided against the security of Bank Guarantee.

(III)Raw Material Assistance Scheme: Lock & Key Arrangements.

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(Presently no assistance is being provided under lock & key arrangement. Reference in the manual has been made to explain the procedure for disbursements made earlier since in some accounts outstandings are appearing under this scheme). PROCESSING FEE

Processing Fee shall be charged at the time of fixing of limit, enhancement of limit and renewal of limit as per the rates mentioned below: i) At the time of processing of application for fixing of limit: a. upto Rs.25 lacs : Rs. 2,500/b. above Rs.25 lacs and upto Rs.50 lacs : Rs. 5000/c. above Rs.50 lacs and upto Rs.1 crore : Rs.10,000/d. above Rs.1 crore : 0.1% of the assistance applied for.

PRE-SANCTION INSPECTION

Pre-sanction Inspection of the unit will be carried out jointly by the official of the executive and finance side at the NSIC Office receiving the application. This inspection must be carried out before the sanction of facility. The factory inspection Report will be prepared and submitted jointly in the prescribed form.

CREDITWORTHINESS REPORT

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To check the financial position and borrowings made by the unit from other sources, Banks Confidential Report should be obtained from the units

banker(s)/financial institution(s). However if the Bank Guarantee proposed as security is being issued by the bank from whom the unit has availed credit facilities, the obtaining of bankers confidential report from said bank may not be insisted upon. The proposal will be sanctioned by the Competent Authority only after being satisfied about the units credit worthiness, its need for assistance and the securities offered by it.

EVALUATION OF THE PROPOSAL On receipt of application duly supported by all prescribed documents, the case will be processed by preparing an appraisal note. The processing of a proposal would encompass the following: Preparing of an appraisal note, and Handling of the proposal through various levels / officersEach of these two aspects has been explained below:

PREPARING OF APPRAISAL NOTE As explained above, appraisal format has been prescribed, on which the detailed appraisal of the unit has to be carried out. The contents of the appraisal form have to be carefully filled as the details provided therein will have a major bearing on the decision making. The various aspects covered in the appraisal note has been explained here under which may be remembered while finalizing the

appraisal note:a. Particulars of the Applicant Unit

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Full particulars of the applicant firm/unit have to be mentioned against all the columns prescribed in the appraisal form. Complete address of the unit separately of its offices and factory with telephone number should be given. While writing the number and date of MSME Registration, it should be indicated whether the registration is provisional or final. If the unit is located in a backward / Hilly area, the category of backward area has to be mentioned. If there are any other Associates/ Sister Concerns of the applicant unit, the particulars of such concerns have also to be mentioned. Ascertaining of inter-unit transactions (if any) between all associate units and the Net Worth of the group/promoters is also required. If any other company holds majority stack i.e. 50% or more in the equity of applicant unit, it should be thoroughly examined in order to ascertain whether the applicant unit fulfils the norms prescribed for MSMEs.

b. Particulars of Promoters Under this heading, complete details about the promoters with their qualificatio n and past experience should be given. Whether the promoters past experience is relevant and adequate for successful implementation of the Project and itssmooth running has to be indicated.

c. Project / Line of Activity Under this heading, the nature of activity and the products to be manufactured have to be mentioned.

d. Conduct of Account with other Financial Institutions and Banks In case of existing units, the experience of its dealings with other Financial Institutions and Banks must be ascertained so as to see whether any defaults have

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been committed in meeting the commitment of other Financial Institutions/Banks. The details of loans availed from other Financial Institutions and credit limits from Banks with theirnature & amount should be indicated under this heading. If the applicant unit has not availed any credit limit or loan from Bank/Financial Institutions, it is possible that its other Associates / Sister concerns might have availed the same from other Banks/ Financial Institutions. Their dealings should also be got examined and the experience and conduct of their account should be reported in the appraisal note.

e. Comments on the Financial Data provided by the Applicant Unit. In case of existing unit financial data of previous year, current year and for next year should be examined. Net Sales should be given net of excise duty. To arrive at the net profit before interest and tax, the interest on Term Loans/Hire Purchase / Leasing only should be added back to the pre tax profit. However, the interest on working capital is not to be added back in the above amount. Tangible Net Worth is to be worked out by subtracting all intangible assets like goodwill, preliminary and pre-operative expenses, accumulated losses etc. from the amount of paid up capital and free reserves. Capital employed by the unit is also to be indicated and it is to be worked out by adding net working capital to the fixed assets or alternatively by adding term

liabilities in the amount of Net worth. In addition to this, Current ratio has to be worked out in order to ascertain the units contribution to the project cost and liquidity position of the enterprise.

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f. Nature and Amount of assistance sought Under this heading, the requirement of applicants unit for assistance from NSIC with the kind of facility and amount is to be reported.

g. Securities Proposed: The nature and amount of securities proposed to be provided against the assistance sought from NSIC should be clearly mentioned.

h. Recommendations: Under this heading, the recommendations made by the recommending officers and sanction by the competent authority have to be recorded viz. Nature of facility, amount recommended, terms & conditions should be clearly mentioned under this heading.
DOCUMENTATION FOR RAW MATERIAL ASSISTANCE

Before disbursement of assistance under Raw Material Assistance Scheme the following documents will be obtained by the designated officers in the Business Development Division, from persons authorized by the unit. i. Agreement for Raw Material Assistance Scheme ii. Material Receipt Note iii. Demand Promissory Note

iv. Letter Of Continuity v. Bank Guarantee From Approved Bank / SDR / FDR vi. Personal Guarantee of The Directors / Partners / Proprietor. vii. Post Dated Cheques

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The formats of the above documents have been prescribed in the Legal Documentation Manual. (MNL.LDOC.01). For all cases even mthough within the power of Zonal head but where any document to be executed requires any amendment from the format prescribed as per the Legal Documentation Manual, prior approval from head of law division at head office must be obtained regardless the value of assistance / lim it to be sanctioned in any case. It is to be ensured that proper documentation is being done before the Corporation invests its funds for assistance to MSMEs. The following procedures should be adopted: i. In all cases where the limit sanctioned are up to Rs. 150 lakh and the Zone is headed by Zonal General Manager (and any other officer exercising the j. powers of ZGM as per approval of head office), disbursement against the sanctioned limits k. shall be made only after all the prescribed documents including security documents have been executed and obtained and their legal vetting has been done by the authorized Law officer at any branch in the Zone.

ii. In all cases where the limit sanctioned are up to Rs. 200 lakh and the Zone is headed by Chief General Manager, disbursement against the sanctioned limits shall be made only after all the prescribed documents including security documents have

been executed and obtained and their legal vetting has been done by the authorized Law officer at any branch in the Zone.

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iii. In all CASES where limits sanctioned are beyond the values mentioned in i & ii above, disbursements against the sanctioned limits shall be made only after all the prescribed documents including security documents have been executed and obtained and their legal vetting has been done by Head of the Law Division at head office. The documents and post dated cheques collected from the borrowing units should be deposited with the designated officers of every NSIC Office, who shall keep the se documents and maintain a register for their receipt and release. These documents shall be kept in custody preferably in a fire proof cabinet.

DELEGATION OF SANCTIONING POWER:Sanction of Proposals received under Raw Material Assistance Scheme can be done as per sub delegation of powers conveyed in the Manual on Sub Delegation of Powers issued by the Company Secretary and changes made therein from time to time. Detailed guidelines contained in the manual of sub delegation of powers have to be complied with while exercising the powers subdelegated. However, the following deserves.

Maximum exposure to a single unit under Raw Material Assistance and / or Bill Discounting against the securityof BG

Maximum exposure to a single unit under these schemes is Rs. 300 Lac. (This limit is effective from 01.05.2008) In the following cases, the limit for maximum exposure shall be considered up to Rs. 500 Lac (This limit is effective from 26.03.2009) in case:

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A. all the outstanding dues against the existing sanctioned limits as on the date of considering the proposal must be within 90days. b. the unit must furnish bank guarantee(s) only from nationalized banks for the proposed enhancement in the limits.

DISBURSEMENT :-

The following disbursement procedure is to be adopted while extending the assistance to the unit: # After sanction of the proposal the disbursement will be made on completion of documentation and all other requirements as stipulated in the sanction letter. # The unit while requesting for disbursement against the limit sanctioned should furnish the following documents:

i) Proforma Invoice/ Invoice. ii) Materials Receipt Note iii) Units Request In case of first assistance, after sanction of the limit, the invoices / material receipt note should not pertain to the period before the date of sanction of limit. In case of subsequent assistance, wherein there is huge time gap between the date of invoice & the date of approaching NSIC for assistance, a confirmation has to be

obtained from the supplier unit(s) that the bills for which assistance is being sought have not already been paid to the supplier. Only after obtaining confirmation from the supplier unit, should NSIC process such requests. In any case invoices should not be more than 60 days old.

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#In case the assistance has been extended against proforma invoice, the unit must provide copy of the original invoice immediately after receipt of the material. NSIC Office must ensure to receive the copy of the original invoice before extending further assistance to the unit. # NSIC Office should extend assistance maximum to 95% of the Bank Guarantee / FDR /SDR Value, as it would ensure the coverage of the interest & service charges. However in no case, the outstanding amount (comprising of principal, interest, service charges & penal interest) should be allowed to exceed the value of Bank Guarantees / FDRs / SDRs taken as Security. # The payment should be released only in favour of supplier(s) of raw material and under no circumstances should be given to the applicant unit.

RATE OF INTEREST

The revised rate of interest as mentioned above shall be applicable on the all proposals sanctioned and disbursed on or after the date of its applicability from time to time. The principal amount outstanding as on the date of applicability of

revised rate of interest but pertaining to the assistance already granted and disbursed, shall also attract revised rate of interest. The revision in the rate of interest should also be intimated to the units availing assistance from NSIC. For cases covered other than bank guarantee, the interest rate to be charged in each case will be decided after considering the following factors:i) Nature of securities offered by the unit. ii) Financial position of the unit

34

iii) Experience of partys dealing and repayment performance. iv) In case of units which approach NSIC for assistance for the first time, the higher rate of interest should be charged initially and subsequently on satisfactory payment performance & dealing, concession in interest can be considered. v) Profitability position of the NSIC Office- it is to be ensured that the Office should be able to recover the cost of funds and all the overheads from its revenue income. The decision in fixing the interest rate should be taken by Head Office on case to case basis. The revised rate of interest as mentioned above shall be applicable on the all proposals sanctioned and disbursed on or after the date of its applicability from time to time. The principal amount outstanding as on the date of applicability of revised rate of interest but pertaining to the assistance already granted and disbursed, shall also attract revised rate of interest. The revision in the rate of interest should also be intimated to the units availing assistance from NSIC. For cases covered other than bank guarantee, the interest rate to be charged in each case will be decided after considering the following factors:-

i) Nature of securities offered by the unit. ii) Financial position of the unit iii) Experience of partys dealing and repayment performance. iv) In case of units which approach NSIC for assistance for the first time, the higher rate of interest should be charged initially and subsequently on satisfactory payment performance & dealing, concession in interest can be considered.

35

v) Profitability position of the NSIC Office- it is to be ensured that the Office should be able to recover the cost of funds and all the overheads from its revenue income. The decision in fixing the interest rate should be taken by Head Office on case to case basis.

RMA I
RAW MATERIAL ASSISTANCE AGAINST THE SECURITY OF BANK GUARANTEE/SDR/FDR.

Procedure for providing of assistance has been ex plained in para 4 at page no 16 to 25 above. The guidelines w.r.t. securities which can be accepted are given here under. To safeguard the assistance proposed to be extended to the units under Raw Material Assistance Scheme, the following liquid Security should be obtained:i. Bank guarantee of approved banks by Head Office. ii. Security Deposit Receipt of NSIC. iii. Fixed Deposit Receipt of Nationalized Banks.

1 BANK GUARANTEE

Security by way of Bank Guarantee should be from the Banks as approved by Head Office, equivalent to the value of the assistance including service charges and interest thereon. Presently the following banks stand approved for accepting their bank guarantees as security:

i. All Nationalized banks including IDBI Bank Ltd.

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ii. State Bank of India and it subsidiaries.

In addition to the aforesaid banks, Head Office on receipt of the requests from its Field Offices has approved the following banks for accepting Bank Guarantee as Security. In addition to the aforesaid banks, Head Office on receipt of the requests from its Field Offices has approved the following banks for accepting Bank Guarantee as Security:

1 Axis Bank Ltd. 2. Barclays Bank. 3. Catho lic Syrian Bank Ltd. 4. China Trust Commercial Bank 5. City Union Bank. 6. Dhanalakshmi Bank Ltd. 7. HDFC Bank Ltd. 8. ICICI Bank Ltd. 9. IndusInd Bank.

10. ING Vysya Bank Ltd. 11. J&K Bank Ltd. 12. Karnataka Bank Ltd. 13. Karur Vysya Bank Ltd. 14. Kotak Mahindra Bank. 15. Lakshmi Vilas Bank Ltd. 16. Nainital Bank Ltd. 17. SIDBI.

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18. South Indian Bank. 19. Standard Chartered Bank. 20. The Federal Bank Ltd. 21. Tamilnad Mercantile Bank. 22. Yes Bank Ltd.. 23. Citi Bank.N.A. 24. Pragathi Gramin Bank.

RMA II
- RAW MATERIAL ASSISTANCE SCHEME: - AGENCY SALE / BULK SUPPLIES

In order to facilitate the MSMEs in procurement of their basic raw material at a competitive price, the Corporation enters into a Memorandum of Understanding with bulk manufacturers of certain industrial raw materials. This arrangement is backed by the specific requirements from the MSMEs. In the said arrangement, the Corporation mobilizes the required raw material for the MSMEs at most competitive prices and also economizes it further by sharing certain discounts

arising out of the arrangement like quantity discount and other discounts (i.e. MOU discount, Cash Discount & PSU Discount) available from time to time. Thus for the procurement of bulk raw material, NSIC enters into Memorandum of Understanding with the manufacturers of such raw material. The process distribution of material under such arrangements involves; i. No material handling by NSIC where by the MSMEs directly procured from the bulk manufacturers delivery location,

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ii. Acts as material handling agencies on behalf of such manufactures i.e. does godowning activities. Under the scheme for arrangement and distribution of raw material as per allocation made by the bulk manufacturers, MSMEs are facilitated by arranging raw material as per their requirements. The scheme on arrangement and distribution of iron and steel is later discussed in detail. For facilitating the procurement of raw material, the MSMEs can adopt either of the two payment procedures; Make advance payment for the material to be procured , or Avail financial assistance from NSIC against the security of
RMA II A AGAINST ADVANCE PAYMENT

Under this arrangement, the business for booking of raw materials on bulk basis is done on receipt of request from the units located all over India. The following modus operandi is adopted: a. On the basis of requirements from the MSMEs, the concerned NSIC office with each MSMEs, signs MOU separately. Thereafter, composite order is placed on the bulk supplier/ manufacturer of the specific product by the respective NSIC office. b. Sales Tax Form C/declaration as per local laws is also issued to the manufacturers against the composite order. b. Specific request / indent from the unit is received along with the advance payment for lifting of the required material. the unit in the name of NSIC, is submitted at the NSIC Office facilitating such arrangement. It must be ensured that unit is registered under Sales Tax for the items being purchased. The request from the unit must also contain the following details: i. Material specification,

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ii. Quantity, iii. Name of the transporter, iv. Place from where the material is proposed to be lifted. v. Delivery destination vi. Payment of Service Charges (as applicable) c. The unit should also give an undertaking that in case of any delay in the delivery of the materials, the Corporation will not be held responsible. d. Branch office has to process the delivery indent received from the unit. Branch office will also ensure receipt of proper C Form furnished by the unit. e. Concurrence by Accounts Section confirming the receipt/realization of advance payment made by the unit. f. On obtaining financial concurrence, the delivery order is placed by the Branch office on the bulk suppliers of raw materials. Payment is also released favoring bulk suppliers along with the delivery order.

Service Charges Service Charges @ 0.25% of the value of the material booked is charged from the MSMEs along with the request.

RMAII B AGAINST THE SECURITY OF BANK GUARANTEE (as explained at RMA I)

RMA - IIC RAW MATERIAL ASSISTANCE SCHEME: - AGENCY SALE / BULK SUPPLIES GODOWNS OPERATIONS.

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NSIC act as intermediary agency for providing the raw material to MSMEs on behalf of the bulk suppliers (manufacturers). The following modus operandi is adopted: 1. Concerned NSIC Office hires the godown to facilitate movement of material from the bulk supplier (manufacturer to the buyer). 2. Buyer Unit would directly make the payment to the bulk supplier. NSIC would not be responsible for any financial involvement. 3. Bulk supplier sends dispatch instructions of the material to NSICsoffice/ godown for making arrangement for lifting of material on the basis of requirement of buyer unit(s). 4. On receipt of the material from bulk supplier, NSIC office delivers the material to the buyer unit on receipt of delivery order is sued by the Bulk Supplier. 5. Branch office would maintain record for receipt and issue of material. 6. Respective Branch office would raise the bill on Bulk supplier for service charges on monthly basis on the basis of material received /lifted during the month as per agreed terms.

7. Hiring of godown and appointment of service provider for managing the godown activities shall be as per sub delegation outlined in the Manual on SubDelegation of Powers and guidelines contained in the NSIC Purchase Procedure. RMA II D RAW MATERIAL ASSISTANCE SCHEME: AGENCY SALE / BULK SUPPLIES SCHEME ON ARRANGEMENT & DISTRIBUTION OF IRON & STEEL FOR MSMEs 1. ELIGIBILITY FOR COVERAGE UNDER THE SCHEME:

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1. a The MSMEs engaged in manufacturing activities and registered with Directorate of Industries / District Industries Centre. 1. b Government Departments are also eligible for supplies out of allocated material. The overall ceiling for all Government Departments has been kept at 30% of the allocated material. For eligible units described at (a) above, Ministry of Steel has stipulated that the following documents be obtained: i) Certificate of MSMEs Registration with Directorate of Industries / District Industries Center. ii) Document to certify the assessed manufacturing capacity of each of the MSMEs. iii) Prima facie evidence in respect of each of the MSME being in operation. Through this mechanism Ministry of Steel aims to discourage the units indulging in trading of such materials.

RMA III
RAW MATERIAL ASSISTANCE UNDER LOCK & KEY ARRANGEMENTS

(Presently no assistance is being provided under lock & key arrangement. Reference in the manual has been made to explain the procedure for disbursements made earlier since in some accounts outstandings are appearing under this scheme). 1. PURPOSE Under this arrangement, the raw material(s) procured is stored in the godown of the Central Warehousing Corporation / State Warehousing Corporations Godowns. The raw material so procured and stored can be provided to the unit

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after making payments thereof. The unit is , however, expected to lift the entire material within the maximum time limit of 90 days.

2. TERMS & CONDITIONS : MARGIN MONEY Margin money, ranging from 20% to 30%, shall be payable by the unit on the value of the raw material. Category -wise bifurcation for margin money to be recovered is as follows:i) Ferrous/non-ferrous others scare items of Raw Material :20% ii) Others allied materials of the nature specified vide (i) above:25% iii) Electronics/Electrical/Chemicals/Food/Packaging & Pharmaceutical items :30% In case of imported material where price fluctuation is likely to occur, the amount of earnest money shall be determined on the basis of the landed cost of the

raw material. The range of margin money mentioned above can also be reviewed by looking at various factors influencing the end use of the material its shelf life and its acceptability in the market.

BILL DISCOUNTING SCHEME

1. NAME OF THE SCHEME The Scheme shall be called as BILL DISCOUNTING SCHEME.

2. SCOPE OF THE SCHEME

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The Scheme will cover purchase / discounting of bills arising out of genuine trade transactions i.e. purchase of supplies made by MSMEs to reputed Public Limited Companies / State and Central Govt. Departments / Undertakings.

3. SELLERS Micro, Small & Medium Enterprises

4. BUYERS i) State and Central Govt. Departments / Undertakings ii) Public Limited Companies

5. GRANT OF PURCHASER-WISE LIMITS Bills drawn by MSMEs for the supplies made by them and duly accepted by the Purchaser will be financed against security of Bank Guarantee in favour of NSIC.

Purchaser unit(s) may approach NSIC for sanction of annual limits by furnishing information as per the prescribed application form.

6. GRANT OF SELLER-WISE LIMITS Seller unit(s) may provide bank guarantee in favour of NSIC for availing financial assistance under the scheme. Bills drawn by them against their supplies made, duly accepted by the purchaser will be financed. Annual limits can be fixed for such units by obtaining information as per the prescribed application form.

7. PERIOD OF USANCE OF BILLS TO BE CONSIDERED FOR DISCOUNTING

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The maximum usance period of such bills should not exceed 90 days. The period of unexpired usance of the bill shall not exceed 90 days while the tenure of the bills shall not exceed 120 days.

8. DOCUMENTATION: i) Agreement Bond ii) Bank Guarantee iii) Bill of Exchange iv) Letter of Continuity v) Post dated cheques

In respect of cases covered under para 5 above, the agreement shall have to be executed both with the buyer unit as well as with the seller unit. The formats of the above documents have been prescribed in the Legal document.

9. SECURITY: Bank guarantees issued by banks approved by Head Office. The Bank Guarantee to be obtained should be equivalent to the value of assistance (including discounting charges & service charges for 90 days). Personal guarantee of proprietor, partners of firms and Directors of the company shall also be obtained. Or Bill of Exchange duly accepted by large corporate units of good financial standing with a turnover exceeding Rs. 200 crores and net worth exceeding Rs. 50 crores and which are profit making for the last three years. Such acceptance(s) over the bills of exchange

should be accompanied by buyer companies Board Resolution specifying the designated authority for accepting such bills. The Board Resolution should

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mention the companies desire to avail bills discounting facilities from NSIC and commitment to make payment of such bills on due dates.

Detail of Work done

During my internship period of 2 months from June to July, I surveyed the main areas of Guwahati City where there is an immense growth for the organization . These areas are as follows.       Amingaon Industrial Estate. Bamunimaidan industrial Estate. Fatashil Industrial Estate. GS Road. Fancy Bazar. Ganeshguri.

In these areas I have met the possible sources which usually generates business for the organization and as a marketing guy this was a perfect first teaching for me that how to deal with these business generating sources and a perfect corporate interaction with these peoples. These units are various industries dealing in steels, cloths, candle manufacturer, plastic industries, furniture ,etc . I got a good response from these sources about NSIC ,as goodwill of NSIC helped me a lot in handling different situations that surrounds me at the time of surveys. During my survey I found that at least 80 percent of the above mentioned sources is keen to provide work to NSIC because of its goodwill in the market in terms of good service, good employee behavior, least days are taken for sanction as compared to others, etc. NSIC provided me a great opportunity to meet various guys from various industry in Guwahati by giving me a chance to visit their project sites as NSIC management trainee. These site already has a tie-up with NSIC and some more up - coming builders project also shows keen interest in dealing with us through their clients

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who are interested in registration of business units. These project name with the names of the concerned companys are as follows-

The survey in the end of the internship period shows us the role of NSIC in promoting the small industries in guwahati region. How strong is the NSIC tactics in holding emerging market like Guwahati in terms of small industrial finance. Almost 90% of the raw material assistance scheme is done by NSIC in Guwahati. Strong policies provides greater customer satisfaction and a good official environment make it easy for employees to conduct proceedings. I was able to make following leads during this 2 months period. 1. Maa industries. Manufacturers of carton, steel and furnitures. 2. Foods and beverages. Manufaturers of food items. 3. Vlenda David. Manufacturers of garments and fashionable ornaments. The information about leads are as followingsThe final conclusion is that NSIC has a strong hold in Guwahati region regarding small industrial finance and is much ahead of other players of field. NSIC also facilitate its reginestere business units to participate in the trade fair and Expo with a very little money of just 5% of the installation cost

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SWOT Analysis Of NSIC

STRENGTH  Right schemes for various business units.  NSIC is a government undertaking company.  Has got tendering partners like NABARD, SIDBI, SBI, IOC, INDIAN RAILWAYS  Superior customer service than competitors.  Great brand image.  High degree of customer satisfaction.  Good place to work.  Dedicated work force.  Efficient and effective services.  Knowledge of Indian market.  Support of various promoters. WEAKNESS  Some gaps in range for certain sectors.  Customers service staff needs training.  Process time is too long and lengthy.  Too much of paper formalities. OPPORTUNITIES  Growing Indian financial sector.  People are becoming more service oriented.

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 Operative in the global market.

THREATS  From various competitors, foreign banks, Government Banks.  Future market trends.

Research Methodology Objective Of The Survey

The general purpose of the survey was to find out the potential and efficiency of NSIC in GUWAHATI for promoting the small scale industries of INDIA and also determine what is the goodwill of NSIC in the emerging market like GUWAHATI. More specifically, the NSIC provides following types of imformation to the micro, small & medium scale industries of GUWAHATI.  To access the awareness of the small industries of GUWAHATI about the services provided by NSIC.  To analyze the overall satisfaction of the small scale industries from financial schemes.  Analysis of the various services provided by NSIC in GUWAHATI.  To analyze the growth prospects of the number of the industries registered under NSIC.  To know what percentage people thinks NSIC is the frontier player in promoting small industries.  Which type of the financial schemes does the registered business units have?

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 To know existing customers will refer NSIC registered schemes to their relatives and frinds.

Research Design
This is a descriptive type of research, studies are longitudinal or cross sectional. In this descriptive type of research we will use cross sectional research design. Cross sectional research is a one short research study at a given point of time and consists of a sample of the population of interest. Its advantage is that it gives a good overall picture of the position at a given time. It can cover many variables of interest and is not affected by the movement of elements in the sample, other elements can be substituted for them it is also a flexible in nature and can take care of simple analysis as well as complex statistical methods. In the research the following methods of collection data was followed : Data source - Primary and Secondary Research approaches Observation and Survey. Research Instruments Questionnaire. Contact Method Personal
.

Project Scheduling
The total time available for the completion of the project was sixty days, thus keeping the time constraint in mind a project schedule was designed so that the set objective were met. Defining the objective of the project.

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Preparing the research plan and schedule. Preparing the questionnaires. Analysis of the findings. Presentation of the findings.

Sample Methodology:
Sample Methodology used is random - Random sampling refer to taking a number of independent observations from the same probability distribution.

Sample Area:
GUWAHATI1. 2. 3. 4. 5. 6. 7. Amingaon industrial estate. Bamunimaidan industrial estate. Fatasil industrial estate. Fancy Bazar. G.S. road. Gneshguri. Chandmari.

Sample Unit :
The sample unit used is the survey of micro, small and medium scale industries of Guwahati.

Sample size :
The total of 100 people was asked to fill the questionnaires.

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Questionnaire
Set A For current customers of NSIC
Date questionnaire

Dear Sir/Madame, We are conducting a brief survey on financial services and want to include your opinion. kindly answer the questions given below to help us complete our survey. Q.1. Is your Business unit registered under NSIC financial schemes ? (a) Yes (b) No

Q.2. Are you satisfied with the financial services that NSIC provide you? (a) Yes (b) No

Q.3. Do you find the staff of NSIC friendly and co operative in nature? (a) Yes (b) No (c) Cant say

Q.4. In future will you again would like to take services of NSIC? (a) Yes (b) No (c) Cant Say

Q.5. Will you refer your realtives to register under NSIC financial schemes? (a) Yes (b) No

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Set B For Non NSIC Customers

Q.6. Have you ever heard of NISC? (a) Yes (b) No

Q.7. Do you want your business unit to register under NSIC? (a)Yes (b)No

Q.8. Are you familiar with NSIC financial schemes ? (a) Yes (b) No

Q.9.From which bank you have taken loan for Business expansion? . Q.10. What was the rate of interest that the bank charged? Bank Name.Interest Rate Q.11. Suggestions ( if any ) for further improvement in the NSIC financial schemes. Name .

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Address Telephone Number

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Data Analysis based upon the Data Obtained from the Questionnaires Set A Current Customers of NSIC

1. The following pie chart, tells us the number of small industries which has registered their business unit under NSIC financial schemes.

45

55

Yes No

Result : The Conclusion draw from the above analysis is that only about 55% of the number of persons who has registered their business unit under NSIC financial schemes.

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2. The following pie chart, let us know about the existing customer of NSIC financial schemes who are satisfied with the services and are very much interested in taking services in future again.

35

Result : The Conclusion draw from the above analysis is that the existing Customers of NSIC financial schemes are satisfied with the services and are interested in taking services in future again.

65

Satisfied N t Satisfied

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3. The following Pie chart depict the percentage of customers who find the staff of NSIC financial schemes friendly and cooperative.

3 18

79

Yes No Can't Say

Results : The Conclusion drawn from the above analysis is that about only 79% of the customers were satisfied ,18% were not satisfied while ,3% refused to comment upon the nature of the staff of NSIC financial schemes.

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4. The following Pie Chart depicts the number of small industries which would again like to take the services of NSIC financial schemes.

6 27

67

Yes NO Can't Say

Result : The Conclusion drawn from the above analysis is that about 67% of the small industries are interested to take the services of NSIC financial schemes in Future, if it needs.

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5. The following pie chart shows the customer s who are interested in referring NSIC financial schemes if their business unit have a sister concern.

22

78

Yes No

Result : The Conclusion drawn from the above analysis is that about 78% of the small industries are interested in referring NSIC financial schemes if their business unit have a sister concern.

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Set B Non-NSIC Customers

6. The Following is the pie chart which tells that the number of owners of small industries in guwahati who have heard about NSIC s financial schemes.

45 55

Yes No

Result : The conclusion drawn from the above analysis is that only 55% of the owners of small industries in Guwahati who have heard about NSIC financial schemes.

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7. The following pie chart shows us ,the number of persons who want their business unit to register under NSIC but don t know the procedure to registered their business unit.

55

45

Yes No

Result : The Conclusion drawn from the analysis is that only 45% of the persons who wanted to registered their business unit under NSIC financial schemes.

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8. The following chart shows us the owners of small industries in guwahati who are familiar with NSIC financial schemes.

36

64

Yes No

Result : The Conclusion drawn from the above analysis that only about 64% of the owners of small industries are familiar with NSIC financial schemes.

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9. The following chart shows the bank from which the small industries usually take loan for business expansion other than NSIC.
0% 10%

30% Rate of interest 15-16% 16-18% <18%

60%

Result : The Conclusion drawn from the above analysis shows the bank from which the small industries usually take loan for business expansion other than NSIC.

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10.

The following chart shows the rate of interest that the bank usually charge while lending money to the small industries of north east.

Banks
15-16% 16-18% <18%

10% 30%

60%

Result : The Conclusion drawn from the above analysis shows the rate of interest that the bank usually charge while lending money to the small industries of north east.

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Key Findings from the Analysis

Result

The final conclusion after the analysis done on the data acquired during the survey is that y Guwahati is a fast developing city with a great future for small industries registered under NSIC. All that is being done by NSIC is that it is creating an awareness about the prevailing schemes and also introducing new schemes prevailing in the market trend of Guwahati to make a city hub for small industries. y NSIC is giving the best effort to promote Entrepreneurship Development Programme (EDP) to make more awareness & create entrepreneurs and to motivate them to become the owner of micro, small and medium scale industries. y NSIC should keep a keen watch over the activities and schemes of other competitors in the city. y Steps is being taken to make the financial schemes customer friendly so that more and more development of small industries take place in Guwahati.

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SuggestionsThis are the suggestions for NSIC which can create more platform for small scale industries in North- East. y NSIC must do more propaganda of their products especially to show benefit of their products as compared to rival firms. Organize events, support causes and advertise and make awareness for their financial schemes in the suburban area of Guwahati. y Must highlight their advantage over nationalized banks for industrial loans. y Although NSIC is the number one in Government purchase and raw material Assistance in Guwahati but still face tough competition from SBI. NSIC must develop strategies to seek more attention from the new potential micro, small & medium scale industries. y NSIC should try to promote and motivate in the rural areas of ASSAM like Nagaon, Tinsukia, Dibrugarh, Jorhat. NSIC should also try to promote and motivate other north eastern states.

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Bibliography

www. nsic.co.in www.google.com www.economictimes.com Financial Manual of NSIC

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