Page 83 - IMDR MSME BOOK 2021

Managing Finance in Micro, Small & Medium Enterprises
four, likely the best measurement of a company's health
is the level of its protability. The majority (72%) of the
respondents have dened the key parameters to monitor
the nancial health of their organization, which is a pre-
requisite to keep nances in control and to manage the
growth of the rm. It shows that majority of the
respondents are monitoring the nancial health of their
enterprise on monthly basis whereas it has also been
observed that 20% of the respondents have not been
following the frequency which is commonly used in
accounting practice .In such cases the monitoring of
nancial performance has been done on requirement
basis.

Product Pricing
Pricing act as a crucial element for generating revenue
for an organization. Therefore, the pricing decisions of an
organization have a direct impact on its success. It is
essential to establish policies for pricing of its products
or services in order to achieve desired level of revenue
and prot levels. A set of price policies and strategies will
not only make price setting easier but also make possible
as series of prices at various levels of distribution that are
rational and justiable. The majority (72%) of the
respondents have dened the key parameters to monitor
the nancial health of their organization, which is a pre-
requisite to keep nances in control and to manage the
growth of the rm. The majority (76%) of the respondents
of the sample business units calibrate the impact of price
changes on prots and cash ows. It is found that the
general pricing strategy opted by the most(44%) of the
sample units is sales maximization pricing strategy , as
the enterprise are MSME therefore the adoption of sales
maximization to achieve the BEP is justied. The
perception of the respondents about the pricing policies
shows that they are aware of all available policies of