Summary

Learning Outcomes

• Understanding Operating Environment, Promoters’ interests and Commitment to Business

• CMA / Spreadsheet learning process which is designed to help you effectively analyse the financials of SMEs.

• An appropriate Working Capital and Term Lending appraisal methodologies.

• Key pointers to “ ratio Analysis” and Interpretation there of

Target Audience

• SME Credit Risk Appraisal Officers / Credit Managers from Banks, NBFCs and Investor Community

• SME Term Loan / Project Managers

• SME Relationship Managers (RMs / officers) from SME segments

• Credit Auditors of Banks / NBFCs

• Specialized SME Credit Branch Managers of Banks / NBFCs

• SME Centralised Operations / SME Factories of Banks

• SME-Entrepreneurs

Course Content

Day 1

Session 1

Overview of Credit Process

Application form including RBI’S CMA

• Nature and purpose of the Loan

• Type of loan and available security

• Analyse the potential borrower’s business, financial status and management standing

Session 2

Understanding of SME Ecosystem, Business Model & Management Capability

• Customer segments

• Value proposition:

• Channels:

Session 3

Case Study on understanding different types of SMEs viz., Traders, manufacturers & Service Sector.

Non-Financial Analysis & Discussions

• Case Study- Formation Of Groups, Allocation Of Cases and Allowing Participants Time (Say 45 Mins) to Read and Prepare Pointers on the Non Financial Analysis of an SME.

• Thereafter, groupwise presentations to be made by each group on Non Financial Analysis.

Session 4

• Types of Companies and Types of Financial Statements viz., Audited, Un Audited, Provisionals, Estimates, Forecast, Certified Annual Reports, Limited Audit etc.

• Introduction to Bank’s CMA format

• RBI CMA Forms 1, 2 and 3 (Spreadsheet Analysis in other banks / NBFCs parlance)

RBI CMA format P&L and B/S particulars

Financial analysis as per CMA

• How to analyse customer need?

• P&L, Balance Sheet analysis

Day 2

RBI CMA Forms 4, 5 & 6

Sessions 1 and 2

• Case Study- Financial Analysis-Cases to be filled by the participants in CMA formats on their laptops

Issues to be covered are:

• Working capital cycle

• Overview of capital

Assessment of Working Capital

Assessment Methodology

Session 3

Ratio Analysis

Case Study Based

• Growth, Liquidity, Gearing / Leverage, Coverage, Profitability & efficiency Ratios in detail

• Ratio analysis & interpretation with examples (current ratios, DSCR, ROCE, BEP and other key ratios)

Session 4

Assessment of Term Loans and Cash Flows

• Term Loans in connection with Procurement of Fixed Assets or Working Capital Assets.

Cash Flow Statement Explanation and Analysis

• Direct Method & Indirect Method

• Cash From operations

• Cash From Investments 

Training dates - April 25-26,2024

Training fees - ₹ 40,000 + applicable taxes