Certificate In MSME

Qs on MSME Rehabilitation - A Comprehensive Overview MCQs on MSME Rehabilitation What is a common symptom of MSME sickness? A. High profits B. Inventory shortages C. Continuous cash losses D. Employee expansion Which act helps banks enforce security without court intervention? A. Companies Act B. Banking Regulation Act C. SARFAESI Act D. FEMA What is an acceptable DSCR value for a healthy business? A. < 0.5 B. 0.8 C. Greater than 1 D. Exactly 1 What does NPA stand for? A. Non-Productive Asset B. Non-Performing Asset C. Non-Profit Authority D. Net Payment Agreement Which is a warning signal for MSME sickness? A. High turnover B. Frequent overdraft limit breach C. Employee hiring D. Product innovation Which code deals with insolvency resolution in India? A. Companies Code B. IBC C. Income Tax Code D. MSME Code Which of the following is a recovery option? A. Profit reinvestment B. Lok Adalat C. Credit sal...

MSME Rehabilitation - A Comprehensive Overview MSME Rehabilitation: Detailed Discussion 1. Sickness in MSMEs Sickness in MSMEs refers to the sustained financial and operational underperformance of the business. Recognizing early symptoms is crucial to enable timely intervention. Symptoms of Sickness Continuous cash losses Increasing working capital gap Decline in turnover and production Delayed statutory payments (PF, GST, etc.) Default in loan repayments Warning Signals Overdrafts exceeding limits frequently Cheque bounces Reduction in capacity utilization Inventory pile-up 2. Diagnosis and Prescription Early diagnosis is key. Tools such as SWOT analysis, credit rating reports, and cash flow analysis can be used to understand the root causes. Mathematical Example Debt Service Coverage Ratio (DSCR): DSCR = Net Operating Income / Total Debt Service Example: N...