ABOUT

Small and Medium Enterprises contribute significantly to industrial output, exports, and employment generation and the nation’s economic growth. Finance remains one of the major concerns for SMEs. Many entrepreneurs are technically sound but lack knowledge and the presentation of financial matters.

An entrepreneur has to play multiple roles in managing their business right from planning, purchasing, design, production, quality control, marketing, finance, manpower, public relations, new business development, and targeted growth. Due to their small size, they cannot afford to appoint highly qualified full-time finance executives to manage their finances, interact with bankers and regulatory agencies, as well as comply with statutory requirements.

With a view to providing efficient and cost-effective financial management solutions, the Small & Medium Business Development Chamber of India (SME Chamber of India), Maharashtra Industry Development Association, India International Trade Centre (IITCINDIA), and SME Business Management Institute have initiated a division called “CFO and Financial Advisory Council for SMEs”.

This Council consists of a full-time team of financial experts to provide appropriate advice and assistance to SMEs on-call or on a regular basis by appointing a panel of members, partners, associates, consultants, and advisors—such as ex-bankers, retired government officials, CFOs, CAs, Company Secretaries, and other experts.

Prof. Suresh D. Tendulkar, Chairman, Indian SME Knowledge Forum; Director, Central Board of RBI; and Former Chairman, Economic Advisory Council to the Prime Minister, launched the CFO & Financial Advisory Council for SMEs, initiated by SME Chamber of India, along with other dignitaries (left to right) in the picture: Mr. Chaitanya Shah, CEO, CKPP Associates, Mr. Chandrakant Salunkhe, President, SME Chamber of India; Mr. K.R. Sharma, Director, MSME Development Institute, Maharashtra; and Mr. Ravi Shankar, Founder Director, Brickwork Ratings India Pvt. Ltd.

SUPPORT SERVICES & ASSISTANCE:

  1. CFO Services: CFO services for SMEs who need experienced financial professionals on an interim basis. CFO services will provide proper guidance and assistance to SMEs to grow, overcome financial hurdles, and prepare a future financial growth plan. It is usual for small- to mid-sized firms to have sophisticated operations and complex cost and financial challenges like large companies. Companies without CFOs cannot grow and sustain in the competitive market or improve profitability without outsourcing a CFO on an as-needed basis.
  2. Preparation of Financial Results and Analysis: Most small- to mid-sized companies are not giving the required importance to preparing reliable financial statements for projection and getting funds for their venture. Unattractive and unauthenticated financial statements create a negative impression for investors. Business decisions should be made only on the basis of good, accurate, and complete information. The financial statements must look professional, follow accepted accounting principles, and highlight the company’s key ratios. A CFO can improve your company’s external image and assist you in obtaining funds from banks and investors.
  3. Preparation of Bank Loan Documentation: We assist SMEs in preparing project reports, business plans, company profiles and financial data as well as complete all the necessary documentation required to raise loans. We will present your financial statements professionally, follow accepted accounting principles, and highlight the company's key ratios to improve the company's chances of successfully getting loans from banks.
  4. Strategic Business Advisory: Our business strategy consultants support SMEs in translating innovation and core competencies into real business value by formulating strategies, managing change, and realizing benefits. Working collaboratively with clients, we provide solutions to the business needs that SMEs are confronted with, such as growing revenues, mergers and acquisitions, streamlining costs, and linking strategy to execution.
  5. Cash Flow and Budgeting Analysis: SMEs commonly face problems in managing their cash flow properly. A business can be profitable and yet still run into trouble due to cash flow issues. Our CFOs can forecast and evaluate your company's financial condition, estimate financing requirements and track cash flow sources and uses to maintain a healthy cash flow.
  6. Raising Private Equity and Venture Capital: Our CFOs can help you raise private equity and venture capital for your business. We will collect, collate, analyze, and disseminate information about various investment opportunities, incentives & schemes. We also assist in preparing and evaluating investment proposals and coordinating with fund managers.
  7. Preparation for Joint Ventures and International Collaborations: Joint ventures are more likely to be beneficial if their entry strategies are carefully formulated. Negotiating them properly is very important for a win-win outcome. Proper drafting of joint venture agreements is very important for the success of any joint venture. We can assist SMEs in setting up a joint venture, from entry strategies and negotiations to drafting agreements and compliance programs.
  8. Business Performance Management Solutions (BPM): Business performance management consists of a set of management and analytic processes, supported by technology, that enable businesses to define strategic goals and then measure and manage performance against those goals. Core BPM processes include financial and operational planning, consolidation and reporting, business modeling, analysis and monitoring of key performance indicators linked to strategy.
  9. Accounting Services as per IFRS: The increasing acceptance of IFRS, both in the United States and around the world, means that now is the time to become knowledgeable about these changes. IFRS for SMEs is a self-contained global accounting and financial reporting standard designed to meet the financial statement needs of small and medium-sized entities. Our CFOs will help SMEs understand and implement IFRS for SMEs.
  10. Financial and Statutory Due Diligence: All businesses involved in an acquisition, as buyers or sellers, need to ensure that the financial information they hold is as accurate as possible, not only to prevent paying too much (or in a seller's case receiving too little) but also to ensure that their governance and risk management objectives are met. We will conduct the diligence on your behalf to ensure that you make the best decisions.
  11. Preparing SMEs for listing on an SME Exchange: SMEs seeking to raise capital from the public capital markets for the first-time benefit greatly from hiring an experienced financial advisor to act as their guide during this complex process. Our senior bankers have collectively led numerous equity IPOs across a wide range of industries as both advisors and as principals. Our consultants maintain high-level relationships with many of the top investment banks, brokers and exchanges.
  12. Mergers and Acquisitions: We can help SMEs in buying and selling businesses whether small, medium or large. We can assist them in all areas of business acquisition, including planning an acquisition strategy, business valuation, and strategies for finding the ideal acquisition candidate. Synergistic acquisition is not limited to buying direct competitors. We will also detail how small and mid-sized companies can efficiently grow by buying related or complementary companies.
  13. Turnarounds and Debt Reduction: We assist underperforming or struggling organizations in a financial and operational capacity. We work directly with management to quickly stabilize performance by developing and implementing a strategic plan that addresses the immediate challenges an organization is facing. Our CFOs then assist clients in developing a long-term comprehensive plan that is built on their organization's unique strengths.

Other Financial & Specialised Services for SMEs

  1. Avoiding NPA status
  2. Reviving and restructuring sick units
  3. Assisting with availing government schemes and incentives
  4. Managing business performance
  5. Drafting legal agreements and other documents
  6. Raising funds for expansion, modernization, and diversification
  7. Providing taxation services (planning and preparation)
  8. Creating financial forecasts and projections
  9. Providing Company Secretary services
  10. Research on listed and unlisted companies
  11. Resolving problems and issues with banks and other institutions
  12. Advising on Goods and Services Tax (GST)
  13. Providing IPO advisory services
  14. Facilitating credit ratings
  15. Selecting and implementing accounting software
  16. Obtaining incentives and financial assistance from government agencies
  17. Implementing cost analysis, cost reduction, and liquidity improvement programs
  18. Conducting risk analysis
  19. Analyzing product pricing
  20. Liaising with the ROC, banks, PE/VC funds, and government agencies
  21. Managing insolvency and liquidation
  22. Handling arbitration and reconciliation

SME Chamber of India has in-house financial professionals and experts in various fields and we are also creating a panel of leading Financial Advisory Firms, Banks, Financial Institutions and retired professionals from Private, Government and banking sectors for rendering expert advisory services to Tiny, Micro, Small, Medium and Large as well as prospective entrepreneurs.