Summer Internship Project Report

ON
Customer Satisfaction
Towards
Raw Material Assistance Scheme of NSIC
Partial fulfillment of requirement of

BACHELOR OF COMMERCE (HONS)

B.COM Vth SEMESTER (Morning)

BATCH 2016-2019

SUBMITTED TO: SUBMITTED BY:

Ms. ADITI JOSHI AMEEN AHMAD

Assistant Professor 00314188816

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL,

KALKAJI

1
 Certificate of Completion

This is to certify that AMEEN AHMAD, Enrolment No. - 00314188816 has

successfully completed the Summer Internship Project on the topic

“CUSTOMER SATISFACTION TOWARDS RAW MATERIAL ASSISTANCE

SCHEME OF NSIC”.

The matter embodied in this project is a genuine work done by him and worth
appreciation

_____________

Ms. Aditi Joshi

(Assistant Professor)

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CERTIFICATE OF COMPANY

STUDENT’S UNDERTAKING
3
I, Ameen Ahmad being a student of BCOM (HONS.) Fifth semester of

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL hereby declare that

the project report under title “Customer Satisfaction towards Raw Material

Assistance Scheme of NSIC’’ is written and submitted by me under guidance

of Ms. Madhu Malti, which is my original work. All care has been taken to keep

this report error free and I sincerely regret for any unintended discrepancies

that might have crept into this report. I shall be highly obliged if errors (if any)

be brought to my attention.

The matter embodied in this report has not been submitted by me for award of

any other degree.

_____________
(Ameen Ahmad)

ACKNOWLEDGEMENT

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I take the opportunity with great pleasure to plot the circle of warm complement deep
sense of gratitude and profound thanks to all those who have spared their valuable
time and giving me their cooperation to make this project complete.

First of all I would like to start by thanking National Small Industries Corporation Ltd.
for their help and support.

Ms. Aditi Joshi, internal guide, for her constant help and guidance in this internship
project. Due to her help I was able to submit my all weekly reports efficiently and was
able to clear any doubt regarding this project.

Special thanks to Ms. Madhu Malti, Finance & Accounts Manager, National Small
Industries Corporation Ltd for her time and valuable suggestions, which really helped
me to put all the information that I had collected into proper perspective. I would
especially like to thank her for always being accessible to me and giving me the
constant support and encouragement at every step. She has motivated me to work
hard towards getting this project implemented.

CONTENTS

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PARTICULARS PAGE NO.

Acknowledgement 5

Contents with page no. 6

List of Figures 7

List of Tables 7

Executive Summary 8

Introduction to Topic 10-14

Literature Review 15-17

Company Profile 18-47

Theoretical framework of Topic 48-54

Research Methodology 55-62

Analysis and Interpretation 63-72

(Customer Analysis)

Findings, Limitations And Suggestions 73-76

Conclusion 77

Bibliography 78

Annexure 79-81

LIST OF FIGURES

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 S.NO. FIGURE NAME PAGE NO.
1. Figure 1 64
2. Figure 2 65
3. Figure 3 66
4. Figure 4 67
5. Figure 5 68
6. Figure 6 69
7. Figure 7 70
8. Figure 8 71
9. Figure 9 72

LIST OF TABLES

S.NO. TABLE NAME PAGE NO.

1. Table 1 12
2. Table 2 26
3. Table 3 44
4. Table 4 51
5. Table 5 52
6. Table 6 52

EXECUTIVE SUMMARY

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The NATIONAL SMALL INDUSTRIES CORPORATION LTD. (NSIC), an ISO 9001
certified company, has been working to promote, aid and foster the growth of micro
and small enterprises, since its establishment in 1995. With enactment of Micro,
Small and Medium Enterprises Development (MSMED) Act 2006,’medium
enterprises’ also come into its ambit.

Its authorized share capital is Rs.5,35,00,000 and its paid up capital is

Rs.5,32,98,800. NSIC operates through countrywide network of offices and
Technical Centres in the Country. To manage operations in African countries,
However, From January 2018, now NSIC closely looking after domestic MSME
Units. In addition, NSIC has set up Training cum Incubation Centre & with a large
professional manpower, NSIC provides a package of services as per the needs of
MSME sector.

NATIONAL SMALL INDUSTRIES CORPORATION LTD.’s Annual General Meeting

(AGM) was last held on 13 October 2017 and as per records, its balance sheet was
last filed on 31 March 2017.

Director of NATIONAL SMALL INDUSTRIES CORPORATION LTD is:

Shri Ravindra Nath (Chairman cum Managing Director).

The project is about how finance department works in the company and what major
role it plays in the functioning of the company. It also helps me understand the
accounting procedures adopted by the company. This will help in gaining knowledge
about the surviving strategy that a company may use in today scot throat competition
and cost cuttings across the board.

During the internship period at NATIONAL SMALL INDUSTRIES

CORPORATION LTD, I have enjoyed many exciting activities with staffs in

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Accounting and Finance department. The main accounts of this department are to
take care of all the procedures, documentations and issue of Letter of Credit. In this
department, I have had chances to carry outcome major activities which are learning
how to make vouchers and various excel reports.

Furthermore, the time in the Company have given me not only many significant
specialized knowledge but also many necessary soft skills. In addition, accounting
work reality at the company has help me to use my knowledge to go deeply in
practice and hence I have a general view about practical working environment and a
clear image of my own future career. Thus, I am very thankful to all lecturers and
NATIONAL SMALL INDUSTRIES CORPORATION Ltd. for internship period.

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 Chapter-I
Introduction To Topic

1.1 Introduction

(Raw Material Assistance)

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Raw Material Assistance Scheme aims at helping Small Scale Industries/Enterprises
by way of financing the purchase of Raw Material (both indigenous & imported). This
gives an opportunity to SSI to focus better on manufacturing quality products.

Benefits of the Scheme

1. Financial Assistance for procurement of Raw Material up to 90 days.

2. SSI helped to avail Economics of Purchases like bulk purchase; cash discount
etc.
3. NSIC takes care of all the procedures, documentation & issue of Letter of
credit in case of imports.

4. Can get Funds under Non Fund based Limit like LC Discounting/Bank
Guarantee.
5. Simple rate of interest levied.
6. Payment can be made to any Supplier.
7. Make advance payments to Vendor and avail cash discount.
8. Economics of large scale purchases can be availed, like bulk purchases
discount.
9. No need of stock hypothecation/statement and Reconciliation.
10. Rebate up to 1% on interest rate on the basis of performance and credit rating
to MSEs only as per the specified rating scale under Performance and Credit
Rating Scheme of NSIC. Such rebate can range between 0.25% to 1%.
11. Nominal charges for processing of application and NSIC fees.
12. There is no Margin Money involved.
13. NSIC takes care of all the procedures, documentation and issue of Letter of
Credit (LC) in case of import of raw materials.

Processing Fees

S.No. Slab for Processing fee

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a.) Up to Rs.25 lacs Rs.2,500/-

above Rs.25 lacs and up to Rs.50

b.) Rs. 5,000/-
lacs

c.) above Rs.50 lacs and up to Rs.1 core Rs. 10,000/-

0.1% of the assistance

d.) above Rs.1 core
applied for

TABLE 1

1.2 Objective of the study

1- To analyse the benefit to SME’S through raw material assistance scheme of

NSIC.

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 2- To study the customer satisfaction towards the raw material assistance
scheme, provide by NSIC.

1.3 Need and Scope.

The small scale industrial sectors have recorded significant growth and impressive
performance. This study aims at identifying and analysing the factors responsible for
successful survival by providing required raw material for their business, also helping
the government in formulating small scale industrial policy to revive the sick units by
promoting better performance.

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LITERATURE REVIEW

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A literature review is the summary and critical evaluation of previous published and
unpublished researches made by various scholars and researchers. The source of
literature review may be newspapers, articles, journals, magazines, books, thesis,
reports etc. It may also include discussions, methodological issues and suggestions
for future research.

Yolande Smit and J. A. Watkins (Department of Internal Auditing and Management

Accounting, Cape Peninsula University of Technology, South Africa), studied on
“Small and Medium Enterprises (SME) Risk Management Practices in South
Africa” and assessed on the effects of emerging technologies and innovation on
MSME’s in South Africa. The study found that the enterprises are satisfied with the
conducive working conditions, satisfactory Government supportive package, and a
fair, equitable and satisfactory subsidy system. The study suggested that
management should provide equal opportunities for training and development to its
employees to help improve their capacities for effective help improve their capacities
for effective delivery and satisfaction. Also management should form committee to
oversee promotion other than relying on manager’s decision alone, regularly review
employees’ salaries and benefits to ensure that they are commensurate to their skills
and work experience, comparable to the general industry practices which overall
would boost industry growth.

Henry Kofi Mensah (Department of Human Resources and Organizational

Development), studied on “Problems Obtaining Credit for SMEs”. This chapter
reviews the loan availability, procedure and condition and several problem faced by
small and medium enterprises in obtaining credit facility from commercial banks.
Firstly, the chapter focuses on the types and condition of credit facilities. Secondly,
the chapter overview the procedure when obtaining loans. Finally, the chapter
explores the problem faced by SMEs in obtaining loan. The study also explores to
found that training facilities, monetary package, impact of rewards and recognitions,
safe working conditions, job security influences the MSMEs goodwill. Also study
suggested that management should consul employees before decision making,
encourage their employees to experiment new methods and try out creative ideas,
organise more training development programs for improving the performance of
employees.

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Sometimes, however a general confusion is faced. Raw Material Assistance Scheme
is often considered while mentioning MSMEs at various occasions. Although similar,
these terms hold their own stands and are distinct in various manners.

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 CHAPTER-II
A Profile of Organisation

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2.1 History
National Small Industries Corporation Ltd. (NSIC), an ISO: 9001 certified company,
since its establishment in 1955, has been working to fulfil its mission of promoting,
aiding and fostering the growth of small scale industries and industry related small
scale services/business enterprises in the country. Over a period of five decades of
transition, growth and development, NSIC has proved its strength within the country
and abroad by promoting modernization, up gradation of technology, quality
consciousness, strengthening linkages with large medium enterprises and enhancing
exports - projects and products from small industries.

NSIC operates through more than 120 offices, supported by a team of over 500
professionals spread across the country. To manage operations in African countries,
NSIC operates from its office in Johannesburg.

Performance and Achievements

National Small Industries Corporation Ltd (NSIC), a Government of India enterprise

under the aegis of Ministry of MSME, achieved great operational and financial
performance in terms of gross volume of business and profitability in the recently
concluded financial year 2016-17. The year witnessed the Corporation achieved new
heights on all parameters. There was substantial improvement in enhancing the
company’s outreach and its volume of operations. With the opening of new offices
the Corporation expanded its reach to serve larger number of MSMEs, making the
total number of NSIC offices 131. The Business Turnover of the Corporation for the
year jumped to Rs. 20,622 crore. NSIC also registered record the previous year’s
record turnover of Rs. 21,242 crore. . For the financial year 2016-17, the company’s
Profit before tax was Rs. 165.07 crore as against Rs. 156.95 registering growth of
5.17%. Board of Directors has recommended the highest ever dividend of Rs. 31.26
crore as against Rs. 29.05 crore during the previous year, once again surpassing its
achievements of previous years.

Over the years, NSIC has reinforced its core strengths by adding new dimensions to
your Company’s capability profile. The Corporation has proactively reached out to
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the MSMEs, while facilitating their requirements in areas of Marketing, Credit and
Technology etc. 2016-17 was a year of great opportunities and successes, with stern
challenges. It was a period when the company performed exceedingly well in some
challenging situations.

NSIC, through, its Incubation Centres all over the country is encouraging youth to
become “Job provider instead of job seeker”. Many States Governments have
approached NSIC to open up Technology centres / Incubation centres for their
youth. Not only in India, but also many countries have also been approaching NSIC
to share our experiences with them in promoting entrepreneurship culture amongst
the youth in their countries leading to MSME development. Under India Africa Forum
Summit –I, NSIC on behalf of Government of India has been executing
establishment of Incubation Centres in various countries. So far, Incubation Centres
have been set up in Burkina Faso, Egypt, Ethiopia, Rwanda, Burundi and Gambia.
Two new schemes of the Ministry of MSME viz. National SC-ST Hub and MSME
Data Bank have been launched during the last year and your Corporation has been
assigned the task of implementing these schemes. Corporate Governance At NSIC,
Corporate Governance is all about maintenance of valuable relationship and trust
with all the stakeholders. This emanates from our strong belief that sound
governance system based on trust is integral to creating value on overall basis. I am
of the view that good governance goes beyond good working results and financial
propriety and is a pre-requisite to attainment of excellence performance towards long
terms goals as well as stakeholders’ value creation.

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Corporate Social Responsibility (CSR)

NSIC has been undertaking various CSR activities which is a reflection of the
company’s commitment towards the well-being of society. In this process, several
CSR initiatives have been undertaken in sectors like Education, Health, Vocational
Training, Safe drinking water and Environment sustainability etc. across the country.
Recognition of Excellence Your Company continued to earn awards and recognition
from different quarters as detailed in Directors’ Report. However, I would like to
mention a few significant awards conferred upon NSIC.

• The Corporation was conferred with India’s Top PSUs & Awards, 2016 by Dun &
Bradstreet.

• ABP News – CSR Leadership Awards in the category of “Best use of CSR
Practices in various Sectors”.

• In recognition of the Development Impact of NSIC’s Model of Rapid Incubation for

Creating Self-employment Opportunities for Youth, A “Plaque of Merit” has been
presented to NSIC by ADFIAP. This is NSIC’s second international award in a row.
Outlook I am confident that the progress NSIC made in 2016-2017 will continue in
future and the Corporation’s performance will scale new heights. The Corporation
stands committed to work on its mandate of being a premier organization fostering
the promotion and growth of MSMEs in the country. We, at NSIC, have always
realized that the Corporation needs to move with the times and engage with the
unlimited changes around it – unlimited in terms of spirit, capabilities and
opportunities and to create new epicentres of growth.

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Schemes & Programs of NSIC:
NSIC carries forward its mission to assist small enterprises with a set of specially
tailored schemes designed to put them in a competitive and advantageous position.
The schemes comprise of facilitating marketing support, credit support, technology
support and other support services.

Marketing:

Marketing, a strategic tool for business development, is critical to the growth and
survival of small enterprises in today's intensely competitive market. NSIC acts as a
facilitator to promote small industries products and has devised a number of
schemes to support small enterprises in their marketing efforts, both in an outside
the country. These schemes are briefly described as under:

Consortia and Tender Marketing:

Small Enterprises in their individual capacity face problems to procure & execute
large orders, which inhibit and restrict their growth. NSIC, accordingly adopts
Consortia approach and forms consortia of units manufacturing the same products,
thereby easing out marketing problems of SSIs. The Corporation explores the
market and secures orders for bulk quantities. These orders are then distributed to
small units in tune with their production capacity. Testing facilities are also provided
to enable units to improve and maintain the quality of their products conforming to
the standard specifications.

Single point Registration for Government Purchase:

NSIC operates a single Point Registration Scheme under the Government Purchase
Programme, wherein the registered SSI units get purchase preference in
Government purchase programme, exemption from payment of Earnest Money
Deposit etc.

 Issue of tender sets free of cost.

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  Advance intimation of tenders issued by DGS&D.
 Exemption from payment of earnest money.
 Waiver of security deposit up to the monetary limit for which the unit is
registered.
 Issue of competency certificate in case the value of an order exceeds the
monetary limit, after due verification.

B2B Web Portal for Marketing :

NSIC Infomediary is a Business-to-Business (B2B) Portal that has been established

to give online services for small and medium time importers, exporters and service
providers in India. The portal is an initiative to provide business opportunities to small
businesses, firms and small scale units to expand further. Thus, anyone involved in
business activities and wants to utilize the strength and visibility of Internet can join
NSIC Infomediary. Those who look for promotion and prospect for their trade and
products/services can also join NSIC Infomediary.

Marketing Intelligence :

Collect and disseminate both domestic as well as international marketing intelligence

for the benefit of MSMEs. This cell, in addition to spreading awareness about various
programmes / schemes for MSMEs, will specifically maintain database and
disseminate information.

Exhibitions and Technology Fairs:

To showcase the competencies of Indian SSIs and to capture market opportunities,

NSIC participates in International and National Exhibitions and Trade Fairs every
year. NSIC facilitates the participation of the small enterprises by providing
concessions in rental etc. Participation in these events exposes SSI units to
international practices and enhances their business prowess.

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Buyer-Seller meets:

Bulk and departmental buyers such as the Railways, Defence, Communication

departments and large companies are invited to participate in buyer-seller meets to
enrich small enterprises knowledge regarding terms and conditions, quality
standards, etc. required by the buyer. These programmes are aimed at vendor
development from MSMEs for the bulk manufacturers.

Credit Support:

NSIC facilitates credit requirements of small enterprises in the following areas

Financing for procurement of Raw Material (Short term)

NSIC's Raw Material Assistance Scheme aims at helping Small Enterprises by way
of financing the purchase of Raw Material (both indigenous & imported). The salient
features are

1- Financial Assistance for procurement of Raw Materials up to 90 days.

2- Bulk purchase of basic raw materials at competitive rates.
3- NSIC facilitates import of scares raw materials.
4- NSIC takes care of all the procedures, documentation & issue of letter of
credit in case of imports.

Financing for Marketing Activities (Short term)

NSIC facilitates financing for marketing actives such as Internal Marketing, Exports
and Bill Discounting.

Finance through syndication with Banks

In order to ensure smooth credit flow to small enterprises, NSIC is entering into
strategic alliances with commercial banks to facilitate long term / working capital
financing of the small enterprises across the country. The arrangement envisages

23
forwarding of loan applications of the interested small enterprises by to the banks.

Performance and Credit Rating Scheme for small industries

To enable small enterprises to ascertain the strengths and weaknesses of their

existing operations and take corrective measures to enhance their organizational
strength. NSIC is operating a Performance and Credit Rating Scheme through
empanelled agencies like ICRA, ONICRA, CRISIL, FITCH, CARE, BRICKWORK
RATINGS and SMERA. Small enterprise has the liberty to choose any of the rating
agencies empanelled with NSIC. Rating agencies will charge the credit rating fee
according to their policies. The benefits to small enterprises are as follows:

 An independent, trusted third party opinion on capabilities and credit

worthiness of small enterprises.
 Good rating to enhance the acceptability of the small enterprise with Banks.
FIs, customers and buyers.
 75% of the credit rating fee subject to a maximum of Rs. 25,000/- will be
reimbursed to the small enterprise having a turnover up to Rs.50 lakh by way
of grants.
 75% of the credit rating fee subject to a maximum of Rs. 30,000/- will be
reimbursed to the small enterprise having a turnover above Rs.50 lakh to
Rs.200 lakh by way of grants.
 75% of the credit rating fee subject to a maximum of Rs.40,000/- will be
reimbursed to the small enterprise having a turnover above Rs.200 lakh.

Technology Support

Technology is the key to enhancing a company's competitive advantage in today's

dynamic information age. Small enterprises need to develop and implement a
technology strategy in addition to financial, marketing and operational strategies and
adopt the one that helps integrate their operations with their environment, customers
and suppliers.

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NSIC offers small enterprises the following support services through its Technical
Services Centres and Extension Centres

1. Advise on application of new techniques

2. Material testing facilities through accredited laboratories
3. Product design including CAD
4. Common facility support in machining, EDM, CNC, etc.
5. Energy and environment services at selected centres
6. Classroom and practical training for skill upgradation

NSIC Technical Services Centres are located at the following places

Focus area
Name of the Centre

Chennai Leather & Foot ware

Howrah General Engineering

Hyderabad Electronics & Computer Application

New Delhi Machine Tools & related activities

Rajkot Energy Audit & Energy Conservation activities

Rajpura (PB) Domestic Electrical Appliances

Aligarh (UP) Lock Cluster & Die and Tool making

TABLE 2

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Infomediary Services

Information today is becoming almost as vital as the air we breathe. We need it

every minute of our working lives. With increase in competition and melting away of
international boundaries, the demand for information is reaching new heights. NSIC,
realizing the needs of MSMEs, is offering Infomediary Services which is a one-stop,
one-window bouquet of aids that will provide information on business, technology
and finance, and also exhibit the core competence of Indian SMEs.

Membership Benefits

 Tender & Trade Information.

 Banner display on NSIC Website

 Access to a wide range of technologies from India and abroad.

 Access to national and international business leads, JV opportunities and

trade information.

 Comprehensive information on Government policies, rules and regulations,

schemes and incentives.

 Access to industrial databases and member's directory.

 Various value added, specialized services for members of Infomediary

Service.

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Software Technology Parks

NSIC Software Technology Parks (STPs) facilitate small enterprises in setting up

100% export-oriented units for software exports. They also act as nodal point to
activate software exports directly through NSIC. These STPs extend support in
terms of the requisite infrastructure to the small enterprises to start business
operations with a minimum lead time. The scheme is governed by STPI regulations
of the Ministry of Information Technology, Government of India. NSIC established
the first STP at Okhla, New Delhi in 1995 and second in Chennai in 2001.

Incubation of unemployed youth for setting up of New Micro &

Small enterprises

This programme facilitates setting up of new enterprises all over the country by
creating self-employment opportunities for the unemployed persons. The objective of
this scheme is to facilitate establishment of new small enterprises by way of
providing integrated services in the areas of training for entrepreneurial skill
development, selection of small projects, preparation of project profiles/reports,
identification and sourcing of plant, machinery and equipments, facilitating sanction
of credit facility and providing other support services in order to boost the
development of small enterprises in manufacturing and services sectors.

International Cooperation

NSIC facilitates sustainable international partnerships. The emphasis is on

sustainable business relations rather than on one-way transactions. Since its
inception, NSIC has contributed to strengthening enterprise-to-enterprise
cooperation, south cooperation and sharing best practices and experiences with

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other developing countries, especially those in the African, Asian and Pacific regions.

International Consultancy Services

For the last five decades, NSIC has acquired various skill sets in the development
process of small enterprises. The inherent skills are being networked to offer
consultancy services for other developing countries. The areas of consultancy are as
listed below:

1. Capacity Building
2. Policy & Institutional Framework
3. Entrepreneurship Development
4. Business Development Services

Insurance of Export Credit for Micro and Small Enterprises

NSIC is facilitating micro and small enterprises to insure their export credits by
entering into strategic alliance with Export Credit Guarantee Corporation of India
Limited (ECGC). MSEs would be helped in insuring their export credits through any
office of the Corporation, located all over the country. This arrangement is made to
strengthen promotion of exports from small enterprises.

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AWARDS & RECOGNITIONS

In recognition of the services rendered by the Company for the development of

MSMEs the awards conferred upon NSIC include “Icon of the year Award from the
Institute of Cost and Works Accounts of India (ICWAI), “Meri Dilli Award” by Hon’ble
Chief Minister of Delhi in recognition of the innovative NSIC Incubation programme
for Small Enterprise establishment launched by NSIC for creating new employment
opportunities, employment and the growth of MSME sector in the country, “Small
Business Mentor of the Year” Award at the National Convention for Small Business
& Entrepreneurship organized by Zee TV, FSIA – V.B. Gulati Award for services
rendered to the MSME sector and Award and Letter of Appreciation from VEL TECH
Technical University, Chennai for partnering with the University in imparting skills to
students by way of in-plant training and projects entitled “India – a Superpower in
2020”.

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2.2 About the organisation

NSIC-TSC, DELHI

THE NSIC-TECHNIAL Delhi Branch Office services centre was established during
the year 2003 primarily for the upliftment of Machine Tools & related activities, allied
small scale industries and rural artisan.

AIMS AND OBJECTIVES:

The aim of NSIC is to support micro, small & medium enterprises with set of
specially tailored schemes to enhance their competitiveness and equip them to
overcome the challenge of the 21st Century with the following Specific objectives.

1- To provide technical and vocational training to youths for employment

generation.
2- To improve and quality and productivity by providing tools and on job training.
Up gradation of technology to SSIs.
3- To achieve operational efficiency and self-sustenance by attaining better
productivity and profitability.
4- To provide skilled manpower to SSI units.
5- To provide common facility services in areas such as:
Design and development of press tool, dies and mould, jigs and fixtures
gauges. Job work services to SSIs.

Mission:

To enhance the competitiveness of Micro, Small & Medium Enterprises by providing

integrated support services encompassing, Marketing, Finance, Technology and
other Services.

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Vision:

To be a premier organization fostering the promotion & growth of Micro, Small &
Medium Enterprises in the country.

QUALITY POLICY

 We shall endeavour to provide effective and prompt service so as to achieve

total customer satisfaction at all times. We shall continuously upgrade our
service quality,
 Communication facilities and the skill sets to meet customer requirements
efficiently.
 We shall constantly adapt, innovate and refine our processes in line with
global business trends to maintain credibility and leadership in our field.
 We commit ourselves for fair play, transparency and sincere endeavour for
the promotion and growth of Micro, small & Medium Enterprises.
 We shall strive to achieve operational efficiency by attaining better productivity
and profitability.
 Quality Policy has been communicated to all Interested Parties including
Public

QUALITY OBJECTIVES

 To enhance reach of the Corporation resulting in growth in its business

 To achieve operational efficiency and self-sustenance by attaining better

productivity and profitability.
 To upgrade the professional skills of all employees keeping in pace with
business needs.
 To provide safe, clean, hygienic & congenial work environment for effective

31
 contribution by every employee.

Additional Quality Objectives for NTSECs:

 To provide training for skill up gradation of trainees leading to opportunities

for their employment/self-employment.
 To provide common facility services to industries for enhancing their
competitiveness and quality.

PICS OF ORGANISATION:

 NSIC DELHI BRANCH OFFICE

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33
 ORGANISATION STAFF

 ACCOUNTS TEAM

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TRAINING ACTIVITIES :

NTSC, DELHI has a wide spectrum of training courses ranging from Basic Technical
Training courses to specialized and HI-TECH training courses as well as tailor made
training courses to suit the need and requirements of one and all.

Further, NSIC, DELHI has also been conducting specialized training Program of
OBS candidates sponsored by National Backward Classes Finance and
development corporation (NBCFDC). 200 Child labour youths have been trained
under Indus project supported by ILO.NSCFDC has also sponsored 25 youths six
months training.

The centre has trained more than 16000 youths in the different industrial trades till
date. We are committed for quality training.

We maintain the ethics of teacher and student relationship. We are more

35
emphasizing on job training along with classroom training. We trained our trainees to
get employment and also inspired them for self-employment.

EXPORTS

NSIC is a recognized Export House. NSIC, on behalf of small industries, is exporting

products and projects around the globe. The major areas of operation are: Export of
Indian products like handicrafts, leather items, hand tools etc. Supply of Small
Industry Projects on turnkey basis. Export of IT solutions from India. Export of Relief
supplies from India to UN and other International Agencies

Product

NSIC is associated with the exports of Small Scale Industries products to other
countries.

Project

NSIC undertakes export of industrial projects under it is associated with the exports
of Small Scale Industries products to other countries on turnkey basis. NSIC
provides a package of services for setting up of Industrial Projects to other countries.

Exports Assistance

NSIC is associated with the exports of Small Scale Industries products to other
countries. The broad categories of products exported by NSIC are:

 Builders Hardware
 Garden Tools & Accessories
 Handicrafts
 Electrical Products & Accessories

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  Sports Goods
 Sanitary Fittings
 Textile and Textile Products
 Leather Products
 Auto Components
 Architectural Iron
 Light Engineering Goods
 Hand Tools
 Castings & Forgings

COMPANY DETAILS

CIN U74140DL1955GOI002481

Company Name NATIONAL SMALL

INDUSTRIES
CORPORATION LTD

Company Status Active

RoC RoC-Delhi

37
CIN U74140DL1955GOI002481

Registration Number 2481

Company Category Company limited by Shares

Company Sub Union Government company

Category

Class of Company Public

Date of Incorporation 04 February 1955

Age of Company 63 years, 5 month, 20 days

COMPANY’S LOGO

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COMPANY’S SHARE EQUITY

Share Capital

Authorized Capital ₹5,35,00,000

Paid up capital ₹5,32,98,800

Listing and Annual Compliance Details

Listing status Unlisted

Date of Last Annual General Meeting 13 October 2017

Date of Latest Balance Sheet 31 March 2017

DIRECTORS OF NATIONAL SMALL INDUSTRIES CORPORATION

LTD

1. Name
2. Designation
3. Email
4. Mobile Number

1)SHRI RAVINDRA NATH

39
2) SHRI P. UDAYAKUMAR

Director (Planning And Marketing)

dpm@nsic.co.in

P: 91-11-26927327

3) SHRI A.K.MITTAL

40
 Director (Finance)

dfin@nsic.co.in
P: 91-11-26310549

Core Values
Safety

41
Quality service

Team work and professionalism

Learning organization

Protection of environment and ecosystem

Customer focus and satisfaction

Trust and empathy

Total transparency

Empowerment and motivated workforce

Innovation culture

2.4 Financial Positions of Last Few Years.

Financial Snapshot 2012-13 to 2016-17

42
 PARTICULARS 2012-13 2013-14 2014-15 2015-16 2016-17

NET SALES 148140 209670 250698 262863 231187

GROSS PROFIT 22311 27705 33038 37231 36212

NET PROFIT 6235 7594 8860 10146 10639

DEPRICIATION 208 220 497 434 488

CASH PROFIT 6443 7814 9357 10580 11127

PAID UP CAPITAL 46298 46298 53299 53299 53299

RESERVES SURPLUS (1085) 11666 15788 22609 29613

TANGIBLE NET WORTH 45213 57964 69087 75908 82912

TERM LIABILITIES 9807 13212 11461 11523 11369

CAPITAL EMPLOYED 55020 64176 80548 87431 94281

NET FIXED ASSETS 8986 10570 12155 17174 20352

OTHER NON CURRENT 1608 1482 6872 7332 7984

ASSETS

NET WORKING CAPITAL 44426 52124 61521 62925 65945

43
 CURRENT ASSETS 211196 252723 305919 330814 324932

CURRENTLIABILITIES 166770 193599 244398 267889 258987

CURRENT RATIO 1.27 1.31 1.25 1.23 1.25

TABLE-3

NSIC has achieved a great growth in last 5 years and their profit is increasing year

by year. The roller coaster ride that NSIC had in the last few years enabled it to

achieve so many awards which were awarded by the Government and many

MSME’s organisation.

2.5 Organization Structure

Descriptions of various functions:

44
TECHNICAL DEPARTMENT

Engineering services a vital role in proper working of an organization. The quality

those services decides the quality of work life (QWL) and the productivity level. The

role is highly emphasized since the main motive of every worker and the factory, as

a whole is high productivity. Engineering services actions always try to improve its

utilities services and maintenances service. The main emphasis is on prevention of

wear and also wastage.

FINANCIAL DEPERTMENT

“Money is all about” goes famous saying. Finance and account department is the

backbone of any organization. Thus it can be said that success of any organization

largely depends upon the optimum utilization of funds. NSIC has a well-equipped

finance department. NSIC has finance executive and account officers and other staff

working under him who are placed at Aligarh factory.

These are in total 8 persons working in accounts department.

 MADHU MALTI ( Manager A/CS )

 PRADEEP BARTHWAL ( Manager A/CS )

 PRIYA BHATIA ( Manager A/CS )

 GAURAV KUMAR GARG ( Accounts Officer )

 RAJKUMAR ( Accountant )

Functions of account Department:

Fund Management.

Budgetary control.

45
Purchases Accounting and control.

Wages Administration.

Audit compliance

Variance Analysis.

Information Technology.

QUALITY ASSURANC DEPARTMENT

Quality this word meant a lot for FMCG Company because they are known for their

good quality so it is not mere an accidents but the promise which they keep against

the costumers. It is a collective work of efficient people with a team of well trained

and experienced people.

Quality policy

NSIC is committed to:

1) Procurement, development, production and marketing of safe clean wholesome

foods of high quality, keeping focus on customers

By establishing and maintaining proper facilities necessary for controlled production

consistency in a sanitary manner, so as to ensure that customer’s confidence is

generated and maintained consistently.

2) Establishing and maintaining appropriate operating and monitoring procedure

necessary for controlled production. Establishing and maintaining appropriate

Training program so that every person responsible for products integrity and

safeguarding quality environments competent to carry out his responsibilities.

3) Achieving high safety, Occupational health and environment standards by

establishing internal review procedure to compliance applicable laws and

regulations.

46
PERSONNEL AND HRD DEPARTMENT

1-RECRUITMENT AND SELECTION

Recruitment refers to the getting interested applicants and providing a pool of

prospective employees as that the management can select the right person for the

right form the poor.

Source of recruitment

1-Internal source – Present employees, employee referrals former employees,

previous applicant.

2-External source- Advertisement, employment exchange, campus recruitment,

walk in, talking write in interview. The purpose of the selection process is to choose

right type of candidates’ form various type of jobs.

Recruitment in NSIC

In NSIC recruitment is mainly done through internal as well as external sources. As

an internal sources, the authorized staff of NSIC consider job description and

specification is done before going for recruitment and selection.

NSIC has its own recruitment policies. Vacancies are widely publicized through

various means as newspaper etc. it has a selection committee comprising of director

of company. Candidates are selected through written test and interviews.

Appointment letters issue at the of joining of the service.

47
 Chapter III
Theoretical framework of topic

3.1 Meaning
Non-availability of quality raw materials on a timely basis in an adequate quantity is

one of the main problems faced by micro, small and medium enterprises. There is

48
acute shortage of even the basic raw materials required by small scale units. These

units are under a handicap in obtaining raw materials of requisite quality at

reasonable prices. They do not get the benefits of bulk buying. For instance, the

handloom industry is facing shortage of yarn. Small scale industries also face

shortage of power due to which they are unable to make full utilization of plant

capacity. Majority of them cannot afford to install their own power generating plants

to ensure uninterrupted operations.

National Small Industries Corporation (NSIC) and State Small Scale Industries

Development Corporations are involved in making efforts for providing some raw

materials to MSME sector.

NSIC aims to help small scale units by financing purchase of raw material both

(indigenous and imported), thus allowing them to focus on manufacturing quality

products. It facilitates availability of scarce raw material either through the domestic

market or by importing.

State Directorate of Industries distributes scarce raw materials to small units. They

have set up depots for distribution of raw materials to small scale industries (SSIs).

The Central Government has introduced a buffer stock scheme to ensure availability

of scarce raw materials to this sector.

3.2 Importance

Raw Material Assistance Scheme of NSIC aims at helping small scale industries by
way of financing the purchase of raw material (both indigenous & imported). This
gives an opportunity to SSIs to focus better on manufacturing quality products.
49
Benefits of the Scheme

 Financial Assistance for procurement of Raw Material up to 90 days.

 SSI helped to avail Economics of Purchases like bulk purchase; cash discount
etc.
 NSIC takes care of all the procedures, documentation & issue of Letter of
credit in case of imports.

How to Apply

The Entrepreneurs are required to apply for Raw Material Assistance only on the
prescribed application forms. The application forms downloaded from the link given
below may be filled and submitted to the concerned Branch Office. The blank forms
are also available free of charge from the Branch offices.

The Process

 Duly filled application form is to be submitted along with the Application

 Preliminary appraisal and Unit inspection is carried out by NSIC.
 Sanction of Limit to the Unit.
 Signing of agreement between NSIC and Unit.
 Disbursement of assistance to the unit.

Terms and Conditions

 Security in the form of Bank Guarantee from Approved/Nationalized Banks.

 The rate of interest would be as under:

Assistance against the security of BG:

50
 Particulars Effective Rate of Interest(% per
Annum)
(w.e.f. 21.05.2018)

MICRO SMALL MEDIUM

Normal Interest

A. Entire Outstanding Dues within 90 Days

(i) Units (MSEs) having valid MSE 1 rating 9.50 10.00 11.00

(ii) Units (MSEs) having valid MSE 2 10.00 10.50 11.00

rating

(iii) Other units 10.50 11.00 11.00

B. Any Outstanding due more than 90 days and not beyond 270 days

10.50 11.00 11.00

C. Any Outstanding due more than 270 days

11.50 12.00 12.00

TABLE-4

Additional rate of interest on delayed payment (beyond 90 days), over and

above the normal rate of interest, would be as under:

51
a)In case entire outstanding is 1% for every cycle of 90 days on the
within 270 days principal outstanding dues

b) In case any outstanding is 1.25% for every cycle of 90 days

more than 270 days

TABLE-5

Processing Fee:

Processing Fee MICRO SMALL AND MEDIUM

On new sanctions 1.0% p.a. 1.0% p.a.

On Renewal 0.5% p.a. 1.0% p.a.

TABLE-6

Documents to be enclosed with application form

1. A passport size photograph of each of the Proprietor / Directors / Partners /

Society office bearers.
2. Self-attested photocopy of :

52
 1. UAM,
2. GST Registration Certificate ,
3. PAN Card of the Firm / Proprietor (in case of Proprietorship concern).
4. Copy of latest ITR of the Company/Firm /Directors/Partners/Proprietor
3. Self-attested statement of personal assets and liabilities along with the
residential address of Proprietor/Directors/Partners/Society office bearers.
4. Copy of Memorandum & Articles of Association along with list of Directors in
case of Pvt. Ltd. / Ltd. Co.
OR
Copy of Partnership Deed duly notarized in case of Partnership concern.
OR
A copy of Bye Laws & charter of society along with a list of governing body /
executive members in case of society.
5. A copy of Board Resolution in case of Pvt / Public Ltd. Co., Power of Attorney
in case of partnership firm & a Governing Body Resolution in case of Society
authorizing the signatory to sign and to deal with NSIC in respect of financial
assistance required, for and on behalf of the applicant unit.
6. Specimen signatures of authorized signatory attested by bank.
7. Copy of sanction letter for credit limit sanctioned by the FIs/ banks.
8. Audited/Provisional financial statements of the unit:
1. Last year Audited financial statements.
2. Provisional current year financial statements.
3. For startup MSME unit- Current year estimates financial statements
duly certified by its Auditors or Chartered accountants
9. Bank statement of the unit for the last six months.
10. Copy of the latest Electricity Bill.
11. Conduct Report of Account of the unit with Banks (Other than BG issuing
Bank) and Financial Institutions
12. Certificate / Undertaking from the borrower that their name(s), name of the
company/its owners/its associates /its sister concern/its members in any way
fall in the list of CIBIL/ RBI Defaulters list or any sort of case is there against
them.
13. Copy of orders in hand, in case of enhancement of limit beyond five crore

53
Documents Required for Renewal of Cases

1. Unit’s request letter for renewal of limit and declaration that there is no change
in constitution, promoters & address.
2. In case there is any change in constitution, promoters & address, relevant
supporting documents to be obtained.
3. Copy of latest and valid Bank Sanction letter.
4. In case renewal is due after the due date of filing of income tax return, copy of
Audited Annual Accounts for the last financial year. In case, audited annual
accounts are not finalized, self-attested declaration of financial parameters of
last financial year as mentioned at S.No.19 of Appraisal form along with latest
available Audited Annual Accounts.
5. Projected /Estimated annual accounts of the Current Financial Year or self-
attested financial parameters as mentioned at S.No.19 of the appraisal note.

Documents needed after Sanctioning of limit and before

disbursement

1. Agreement for Raw Material Assistance

2. Material Receipt as per Format.
3. Demand Promissory Note as per Format & duly signed.
4. Letter of Continuity as per Format.
5. Bills / Invoices for release of payment in favor of supplier.
6. Bank Guarantee as per format and its confirmation from Bank.

Research Methodology

“Marketing Research” is a key to evolution of successful marketing and program me.

It is an important tool to study buyer’s behaviour. Change in consumer life style and

consumption patterns brand loyalty and forecast market changes. Research is also

54
used to study competition and analysis the competitor’s products positioning.

Marketing research is also useful to help create and enhance equity.

Descriptive research-descriptive researches are design to describe some things.

This study is used to make specific prediction.

Descriptive Research Designing can be used to study:

 Consumer profile

 Market potential studies

 Product usage studies

 Attitude surveys

 Sales analysis

 Media research

 Price survey

Descriptive research gives researchers the opportunity to use both quantitative and

qualitative data in order to find data and characteristics about the population or

phenomenon that is being studied.

Research has both its advantages and disadvantages. Researchers can focus on

these strengths and weaknesses in order to implement a research design that can

account for them. The advantages of descriptive research include data collection and

life experiences, while the method can be disadvantageous in the sense of

confidentiality and objectivity and error.

The data collection for descriptive research presents a number of advantages as it

can provide a very multifaceted approach. Data can include case, studies,

55
observation or surveys and give several angles on the information. For example,

within descriptive research surveys can give statistical information about an event as

well as give an idea about how people experienced the event. Another advantage of

descriptive research is the unique data collection form of case studies. These case

studies can be collected from individuals’ personal accounts or from written data

such as newspaper reports. This data collection allows descriptive research to

provide an insight into life experiences in a way that other research methods can’t. It

can remove barriers of strict academic approaches so that researchers can witness

how others experience an event.

Confidentiality is a big disadvantage of descriptive research. Subjects that

researchers are question may not always be truthful and instead will give answers

that they feel that the researcher wants to hear. In interviews, participants may also

refuse to answer any questions that they feel are too personal or difficult. Descriptive

research also carried with it an observer’s paradox, if a participant knows that

someone is observing them, they may change the way that they act. Subjectivity and

error also play a disadvantageous role in descriptive research. Questions presented

by a researcher are predetermined and prescriptive, while studies can contain errors.

A researcher may choose what information to use and ignore data that does not

conform to their hypothesis.

The purpose of descriptive research is just to describe and not to establish any

relationships. The advantages of descriptive research are that as the study does not

involve certain variables to be studied, it can provide a lot of information. It is useful

in identifying further areas of research. It is very useful in studying abstract ideas like

customer satisfaction etc. where it is not possible to develop models. The study is

also very flexible, you select the method depending on what you expect to find rather

56
than selecting the method and then studying. The main disadvantage of this type of

research is that you cannot identify the cause behind a phenomenon; you can just

describe and report the observations.

Descriptive research includes the data collection that describes the events and then

organizing the data through visual aids. There are a number of advantages of

descriptive research like education search and experiences may contain many

variables that are not realistically controllable. These variables can be studies

through descriptive research. Secondly, descriptive research may collect the data

from large geographical area. Thirdly, descriptive research is less expensive and

time consuming. On the other hand, there are some disadvantages of descriptive

research. The first disadvantage is that descriptive research requires more skills.

Secondly, response rate is low in this research. Thirdly, results of this research can

change over the period of time.

Exploratory Research-It is a type of research conducted for a problem that has not

been clearly defined. Exploratory research helps determine the best research

design, data collection method and selection of subject it should draw definitive

conclusion only with extreme caution. Given its fundamental nature, exploratory

research often concludes that a perceive problem does not actually exist.

Type of data used

Primary Data

It refers to the statistical material which the investigator originates for him for the

purpose of the enquiry in hand. In other words, it is one which is collected by the

investigator for the first time. When we use primary data, it is called raw material.

57
According to Wessel, "Data originally collected in the process of investigation are

known as primary data."

Secondary Data

It refers to the statistical material which is not originated by the investigator himself

but obtained from someone else's records, or when Primary data is utilised for any

other purpose at some subsequent enquiry it is termed as Secondary data. This type

of data is generally taken from newspapers, magazines, bulletins, reports, journals

etc. "Secondary data are those already in existence for some other purpose than the

answering of the question in hand."

I have collected and studied the data from various internet sites and journals and
their books of accounts. I also conducted a Questionnaire Survey with SSI units to
collect data regarding this project. I have compiled the data in excel sheets to
arrange them in a meaningful manner which would help better understand the report
and make recommendations and interpretations.

TECHNIQUE OF DATA COLLECTION

Questionnaires- A document that is used to guide what questions are to be asked

respondents and in what order, sometimes lists the alternative responses that are

acceptable.

58
What is the purpose of questionnaires?

As a mechanism for obtaining information and opinion, questionnaires have a

number of advantages and disadvantages when compared with other evaluation

tools. The key strengths and weaknesses of questionnaires are summarized in bullet

points below. In general, questionnaires are effective mechanisms for efficient

collection of certain kinds of information. They are not, however, a comprehensive

means of evaluation and should be used to support and supplement other

procedures for evaluating and improving teaching.

Type of question

Close ended closed questions

Definition

A common definition is:

A closed question can be answered with either 'yes' or 'no'.

This limited definition is also sometimes called a 'yes or no' question, for obvious

reasons.

Using closed questions

Closed questions have the following characteristics:

 They give you facts.

 They are easy to answer.

59
  They are quick to answer.

 They keep control of the conversation with the questioner.

Open questions

Definition

An open question can be defined thus:

An open question is likely to receive a long answer.

Although any question can receive a long answer, open questions deliberately

seek longer answers, and are the opposite of closed questions.

Using open questions

Open questions have the following characteristics:

 They ask the respondent to think and reflect.

 They will give you opinions and feelings.

 They hand control of the conversation to the respondent.

3.6.1 Universe of study

Sample Area : NSIC, Delhi

Sample Unit : SSI’s in Delhi

Type of research : Descriptive.

Sample Size : 50

60
Sample Area : NSIC, Delhi

Sample Unit : SSI’s in Delhi

Methods Used : Questionnaire

Questionnaire Type : Close ended questions

Sampling Technique : Convenience Sampling

Data Collection : Primary Data and Secondary Data

3.6.2 Sample size

Sample size determination is the act of choosing the number of observations to

include in a statistical sample. The sample size is an important feature of any

empirical study in which the goal is to make inferences about a population from a

sample. In practice, the sample size used in a study is determined based on the

expense of data collection, and the need to have sufficient statistical power. In

61
complicated studies there may be several different sample sizes involved in the

study: for example, in as survey sampling involving stratified sampling there would

be different sample sizes for each population. In a census, data are collected on the

entire population, hence the sample size is equal to the population size. In

experimental design, where a study may be divided into different treatment groups,

there may be different sample sizes for each group.

Sample sizes may be chosen in several different ways:

 Expedience - For example, include those items readily available or convenient to

collect. A choice of small sample sizes, though sometimes necessary, can result

in wide confidence intervals or risks of errors in statistical hypothesis testing.

 Using a target variance for an estimate to be derived from the sample eventually

obtain.

On the basis of above factors, the Sample Size I choose for this research is of 50

MSI units.

62
 Chapter IV
Analysis And Interpretation

4.1 Analysis & Interpretation

Ques1-Do you know about the Raw Material Assistance scheme?

63
 No

Yes

0% 10% 20% 30% 40% 50% 60% 70%

FIGURE-1

INTERPRETATION:

This question was to know about the awareness of the scheme in SSI’s.
According to Survey, 40% says YES and 60% says NO.

Thus,

It shows that most of the SSI’s are not aware about the scheme.

Ques2- Are you satisfy with Raw Material Assistance scheme?

64
 Yes
30%

Yes
No
No
70%

FIGURE-2

INTERPRETATION:

This question was to know about the customer satisfaction towards the scheme.
According to Survey, 30% says YES and 70% says NO.

Thus,

It indicates that most of the customers are not satisfied with this scheme.

Ques3- Rate your level of satisfaction with the process charge and rate
of interest under Raw Material Assistance scheme.

65
 Highly satisfy
9%

Dissatisfy
30%

Satisfy
26%

Neither satisfy nor

Dissatisfy
35%

FIGURE-3

INTERPRETATION:

In this question we try to know about the level of satisfaction with the charge and
rate of interest under Raw Material Assistance scheme.

According to Survey,

9% highly satisfied, 26% satisfied, 35% neither satisfy nor dissatisfied and
30% dissatisfied.

It shows that level of satisfaction of the customer is not very high.

Ques4- Would you like to suggest this scheme to other unit?

66
 70%

60%

50%

40%

30%

20%

10%

0%
Yes No

FIGURE-4

INTERPRETATION:

In this question we try to know that the customers who are using this scheme, they
would like to suggest others to take this scheme.

According to Survey, Only 30% says YES and 70% says NO.

Thus,

It shows that those customers who do not like this scheme don’t want to tell
others.

Ques5- Is it easier to avail the Raw Material Assistance from NSIC

rather than any other financial institution?

67
 Yes No

40%

60%

FIGURE-5

INTERPRETATION:

In this question we try to know that availability of Raw Material Assistance is easier

in NSIC than other financial institution.

After analysis 60% says YES and 40% says NO.

It shows that Raw Material Assistance is easily available as compared to other

financial institution.

Ques6- What is the percentage rate increase in to your turnover after

availing the Raw Material Assistance scheme?

68
 30%

25%

20%

15%

10%

5%

0%
0<20 20<30 30<40 40<50

FIGURE-6

INTERPRETATION:

This question try to know about how much percentage rate increase in to their

turnover after availing the Raw Material Assistance.

According to Survey,

20% says 0<20, 25% says 20<30, 30% says 30<40, 25% says 40<50.

Thus,

It shows that Raw Material Assistance Scheme increases a good amount of

turnover of most SSI’s units

Ques7- How fast your application for Assistance under Raw Material
Assistance proceeds?

69
 45%

40%

35%

30%

25%

20%

15%

10%

5%

0%
Very slow Slow Fast Very fast

FIGURE-7

INTERPRETATION:

In this question we try to know how much fast application for assistance procedure.

According to Survey,

25% says very slow, 45% says slow, 20% says fast and 10% says very fast.

It shows that procedure is slow.

Ques8- How much is the portion of Assistance under this scheme out of
the total assistance?

70
 0<20
40<50 11%
21%

20<30
30<40 42%
26%

FIGURE-8

INTERPRETATION:

In this question we try to know how much portion of assistance under this scheme a

unit out of total assistance.

According to Survey,

11% says 0<20, 42% says 20<30, 26% says 30<40 and 21% says 40<50.

Thus,

It shows that assistance level is quite higher as compared to other financial

institutions.

Ques9- Is Raw Material Assistance scheme help you in producing

quality product?

71
 Yes No
30%

70%

FIGURE-9

INTERPRETATION:

In this question we try to know that this scheme help them in producing quality

product.

After analysis 70% says YES and 30% says NO.

It shows that most of them are able to produce quality product after using this

scheme.

72
 Chapter V
Findings and Suggestions

5.1 Findings

73
  Most of the respondents were not aware about Raw Material Assistance

scheme provided by NSIC.

 Half of the customer’s (SSIs) thinks that the schemes provided by NSIC are

not satisfactory and half are satisfied with the scheme.

 Most of the customer's (SSIs) thinks the interest rate is not reasonable.

 Most of the customer’s thinks that the process charge is very high.

 Most of the customer’s (SSIs) thinks that the schemes provided by NSIC are

not creating a major impact on their business.

 Most of the customer's think that the assistance timing is slow.

5.2 Limitations

1- The sample size is small and cannot represent whole of NSIC.

2- Due to time constraint the research could not be done exhaustively which may
not have resulted deeper insights.

3- Some SSI’s are reluctant to give response to some questions.

4- Some unavoidable errors occurred during the process of transforming raw

data from questionnaire in to the research in to the research findings

5.3 Suggestions

74
 NSIC should make more efforts to spread the awareness about its Raw

Material Assistance scheme through newspaper, internet, T.V. or other

electronic media.

 NSIC should decrease the rate of interest on the Raw Material Assistance

scheme.

 NSIC should decrease the process rate under Raw Material Assistance and

as well as simplify documentation process.

 NSIC should be providing the Raw Material Assistance to SSI’s as soon as

possible.

 Provide special incentives for encouraging larger flow of Venture Capital &

Private Equity funds into the sector.

CONCLUSION

75
It was a great experience working with members of NATIONAL SMALL
INDUSTRIES CORPORATION LTD. I got to learn many new things for example:
working on excel in day to day life of a company, corporate etiquettes, learning about
RMA scheme.

 Company may adopt more aggressive marketing to create more awareness

amongst the mass

 To tackle the huge need of their services all over and to reduce the lead time
of the delivery of their service.

 Having new RMA software installed, company can now have better and
efficient grievances handling system when it comes to the customers

 Members are having less awareness about the scheme, and it is important for
the marketing staff to educate them.

 The company should expand its advertising so that more customers get to
know about the firm and its services for MSME units.

Bibliography

76
 Website:
 www.nsic.com

 https://www.india.gov.in/raw-material-assistance-scheme

 http://www.jammuvirasat.com/2017/07/22/govt-scheme-for-raw-material-
assistance-for-your-business/

 Resources Person:
 Mr. Amit Tuteja (Z.G.M NSIC)

 Ms. Madhu Malti (F.M NSIC)

 Books

 Kotler, P. and Keller, K. (2012). Marketing management. Upper Saddle River,

N.J.: Prentice Hall.

 Kothari, C. and Garg, G. (2014). Research methodology Methods and

Techniques. 3rd ed. New Delhi: New Age International (P) Ltd.

Annexure

77
 Questionnaires

NAME :

E. MAIL :

Ques1-

Do you know about the Raw Material Assistance scheme?

1- Yes

2- No

Ques2-

Are you satisfy with Raw Material Assistance scheme?

1- Yes

2- No

Ques3-

Rate your level of satisfaction with the process charge and rate of interest under
Raw Material Assistance scheme.

1- Highly satisfy

2- Satisfy

3- Neither satisfy nor dissatisfy

4- Dissatisfy

Ques4-

78
Would you like to suggest this scheme to other unit?

1- Yes

2- No

Ques5-

Is it easier to avail the Raw Material Assistance from NSIC rather than any

Other Financial institution?

1- Yes

2- No

Ques6-

What is the percentage rate increase in to your turnover after availing the

Raw Material Assistance scheme?

1- 0<20

2- 20<30

3- 30<40

4- 40<50

Ques7-

How fast your application for Assistance under Raw Material Assistance proceeds?

1- Very slow

2- Slow

3- Fast

4- Very fast

Ques8-

How much is the portion of Assistance under this scheme out of the total assistance?

79
 1- 0<20

2- 20<30

3- 30<40

4- 40<50

Ques9-

Is Raw Material Assistance scheme help you in producing quality product?

1- Yes

2- No

80