Page 82 - IMDR MSME BOOK 2021

Managing Finance in Micro, Small & Medium Enterprises
Chapter 6
Findings and Conclusion

Findings
Prole of the MSME units

The respondent rm’s enterprises covered
manufacturing as well as service enterprises which
includes the sectors like education, nance, real estate,
retail business, software development, hospitality, tour
and travel, entertainment, sports, tness & gym etc.
It is found that majority (32%) of respondent rms
between 31-50 employees whereas 22% of the business
units had more than 50 employees. It is found that in the
last year that majority (52%) of the enterprises have
turnover between Rs.75 lakhs to Rs.1 crore. It is found
that the age of majority (51%) of the business units falls
between 5-10 years which helps to recognize the degree
of stability in policies in managing in nance. It is found
that majority (45%) of the sample units from
manufacturing sector have invested between Rs. 25-50
lakhs in the equipment whereas in service sector the
majority (69%) of the sample rms had investment in
equipment between INR 10-50 lakhs.
Monitoring Financial Health
A company's nancial statements provide vital
information about its nancial health. The information
the statements provide offers benchmarks and feedback
that help the company make minor adjustments and
also determine its overall direction. To accurately
evaluate the nancial health and long-term
sustainability of a company, a number of nancial
metrics must be considered. Four main areas of nancial
health that should be examined are liquidity, solvency,
protability and operating efciency. However, of the