Investment and Financing decisions for MSMEs
Dr. Gurendra Bhardwaj
In India the number of sick MSMEs are greater than active units. The major reason of sickness of MSMEs is poor knowledge about investment and financing decisions of the project. Most of sick MSMEs were guided by the banks/ other financial institutions or various department of industries to achieve time bound targets of disbursement of government funds and subsidies. The increasing NPA of MSMEs is very significant macroeconomic problem in today's economic environment. No government is able to solve this problem, due to lack of awareness and poor understanding of these two financial aspects among the promoters and employees of MSMEs. This course will educate them about making sound financial plans to make their future secure and profitable. The course will cover mainly Introduction to Capital Budgeting, Cash flow computation Techniques of Capital Budgeting – (NPV, IRR, Payback, Profitability Index and ARR) Case Discussion on Capital Budgeting and use of software for financial decision making. Financing Decision- Sources of Finance Cost of Capital, Break Even Analysis, and Benefit-Cost Analysis etc. On the successful completion of the course the participants will be able to- · Prepare cash flow statements for each capital budgeting expenses · They will be able to evaluate various investment proposals in a scientific way · Participants can examine various sources of finance to satisfy their short and long term business requirements The aim of course is to promote MSME entrepreneurs to take financial decision independently.
Who will benefit
Employees and Owners of MSMEs