ACROPOLIS INSTITUTE OF MANAGEMENT & RESEARCH

INDORE

Synopsis Topic
Increase The Price of crude oil Increase on the Indian Stock Market

GUIDED BY: SUBMITTED BY :

PROF. ANAND BHATT AMAN SINGH

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 ACKNOWLEDGMENT

I sincerely feel the credit of the project work could not be narrowed to only one
individual. This work is an integrated effort of all those concerned with it, it would
have been quite difficult without their direct & indirect cooperation . I Wish to
express my appreciation and gratitude to all the concerned people.

First and foremost my intellectual debt Mr. Aditya Sir (MD Of EASEUP
PRIVATE LIMITED COMPANY)

Who has contributed significantly towards the completion of the project. He has
provided the guideline on which this project was made.

I am thankful to the entire staff of EASEUP PRIVATE LIMITED who have taken
to precious time and provided me with requisite data without which this project
would not have completed. I also thanks them for giving their valuable suggestions
during the entire period of research.

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 INDEX

S.No Topics Page No.

1 Introduction 4
1.1 Project Description 5
1.2 Relevance of the Project 5
1.3 Objective of the study 5
1.4 Limitation 5

2 About the Company 6

3 Literature / Conceptual Support 6

3.1 Banking Sector 6
3.2 Indian Banking Industry 7

4 Process/Methodology
4.1 Project Methodology 9
4.2 Sample Size of the study 9
4.3 Source of Data 10

5 Loan Processing Procedure 10

6 GST 11
6.1 GST Registration Process 11
6.2 GST Return Process 12

7 Conclusion 13

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 INTRODUCTION

A loan is a type of Debt. Like all debt instruments a loan entails the redistribution
of financial assets over time, between the lender and the borrower . The borrower
initially receives an amount of money from the lender, which they are obligated to
pay back, but not always in regular installments, to the lender. The loan is
generally provided at a cost , referred to as interest on the debt. A borrower may be
subject to certain restrictions known as loan covenants under the terms of the loan.

Acting as a provider of loans is one of the principal tasks for financial institutions.
Bank loans and credit are one way to increase the money supply.

Now a days loans easily available and the rate of interest at which they are
available are very reasonable. Government too is encouraging people to take
housing loans for certain purposes . For example, government is encouraging
people to take housing loans by tax concessions.

Running a business is never an easy task. One is bound to face financial hiccups
during the process. Whether someone is anew generation entrepreneur venturing
into a new business or a establishment businessman planning for a business
expansion, whether is money required for and immediate official expansion or it
could be time for the recession, when payment don’t come on time but the
expenditure cant wait, the business ease our way through scary road of financial
crisis and open the world of new business height of you,

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1.1 Project Description
This project deals with reviewing the credit worthiness of the borrower before
sanctioning of a loan. It deals with analysis of the data provided by the
company and following all the formalities as under the norms of the bank and
finally making a loan appraisal.

1.2 Relevance of the Project

The project deals with first getting the loan proposals from the clients and
making the appraisals note. It gives a practical insight of the procedures
followed by the bank in ascertaining the credit worthiness of the borrower . All
the various parameters such as financial, management and industrial are
studied. The borrowers are granted fund based (working Capital) and non-fund
based (Bank guarantee and letter of credit) facilities. The project requires
restructuring of Balance sheet and Profit and Loss Account into the CMA
Format provided by the bank.

1.3 Objective of the Study

● To study the current market scenario in the SME Sector.
● To learn the importance and details of financing the SME sector
● To learn the procedure of doing the rating.

1.4 Limitation of the study

● Study is limited only to the SME sectors
● Due to time limitations a detailed analysis could not be done

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 ABOUT THE COMPANY

ECOEDGE BUSINESS ADVISOR was founded in 2015. It provides the

services in the field of Accounting Management, Compliance Management ,
Project Finance,& Gov Subsidy. All Kind of retail loan.

LITERATURE /CONCEPTUAL SUPPORT

The purpose of the literature review is to review what has previously been done
on the subject and analyze it in the present context so that an effective
understanding cab be established.

3.1 Banking Sector

The Banking Industry was once a simple and reliable business that took deposits
from investors at a lower interest rate and loaned it out to borrowers at a higher
rate . However deregulation and technology led to a revolution in the Banking
global industrial powerhouses that have ian

The banking Industry at its core provides access to credit. In the lenders case, this
includes access to their own saving and investments, and interest payment on those
amounts. In the case of borrowers, it includes access to loans for the creditworthy,
at a competitive interest rate. Banking Services include transactional services, such
as verification of account details, account balance details and the transfer of funds,
as well as advisory services, that help individual and Institutions to properly plan
and manage their finances.

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3.2 Indian Banking Industry
The Indian banking system consist of 27 public sectors banks, 21 private sector
banks ,49 foreign banks, 56 regional rural banks and 94,384 rural cooperative
banks, in addition to cooperative credit institutions.

As of Q1 FY19, total credit extended by commercial banks surged to Rs 86,976.02

billion (US$ 1,716.44 billion ) and deposits grew to Rs 115,070.27 billion
(US$1,716.44 billion). Assets of public sector banks stood at US$ 1,557.04 billion
in FY18.

Indian banks are increasingly focusing on adopting to risk management. Banks

have already embraced the international banking supervision accord of Basel 2,and
majority of the bank already meet capital requirements of Basel 3.which has a
deadline of March 31,2019.

The digital payments revolution will trigger massive changes in the way credit is
disbursed in India. Debit card have radically replaced credit cards as the preferred
payment mode in India, after demonetization. Debit cards garnered a share of
88.86 percent of the total card spending.

3.3 Small And Medium Enterprises in India

The small and medium enterprises segment has been a topic of intense deliberation
among banks, financial institutions, industry and academicians. In India, ‘small
scale industrial (SSI) units. As per the Micro, Small and Medium Enterprises
Development Act of 2006, any industrial unit with a total investment in its fixed
assets or leased assets or hire-purchase asset up to Rs 10 million is considered as a
medium unit. In addition ,an SSI unit should neither be a subsidiary of any other
industrial unit nor can it be owned or controlled by any other industrial unit.

The SME Sector produces a wide range of industrial products such as food
products, beverage, tobacco products, cotton textiles ,wool, silk, wood & wood
products ,machinery , machines and electrical machinery.

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 4 PROCESS / METHODOLOGY

Now after going through the conceptual support required for understanding the
project, a methodology has to be prepared for how to complete the project
successfully.

4.1 Project Methodology

The methodology / process followed is as follows:

● The borrower submits the project report and all the relevant documents to
the bank.

● The project report was given to me for an in depth analysis.

● A pre-sanction appraisal and evaluation was then carried out by studying

the company financial statement.

● Restructuring of the company Balance Sheet and Profit and Loss Account
in to the Credit Monitoring Arrangement (CMA ) format.

● The borrower company was rated using the CRISIL Credit Rating Model.

● On being assured of the credit worthiness of the borrower, the loan is

disbursed.

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4.2 Sample Size
The sample chosen for appraisal was one, consisting of proposals of SME accounts
and takeover accounts.

4.3 Source of Data

The project is made through secondary data. Secondary data in terms of financial
Statements i.e. Balance Sheet, Profit and loss and Cash Flow Statement were
studied. The data is then formatted as per the CMA requirement of the bank. The
given data was studied and the relevant ratios were computed to ascertain the credit
worthiness of the borrower . The various parameters such as financial and industry
were studied and hence a loan appraisal was created.

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 5. Loan Processing Procedure

Loan processing process by which a borrower applies for a new loan and a lender
processes that application. Origination generally includes all the steps from taking
a loan application through disbursal of funds (or declining the application).

Loan Process

Preparing Applying Underwriting

Processing Closing

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 6 .Goods And Services Taxes (GST)

GST is an Indirect tax which has been replaced many indirect taxes in India. The
Goods and Services Tax was passed in the Parliament on 29 th March 2017. The ac
came into effect on 1st July 2017. Goods Services Tax law in India is a
comprehensive, multi stage , destination- based tax that is levied on every value
addition.

6.1 GST Registration Process

Applicability =If 20 Lakh Turnover above in a business.

Document = Mobile Number, Email-ID, Pass Port Size Photo. Address Proof Of
Business, Bank Details.

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GST Return Process

There are two types of Returns

1= Regular Schemes

2= Composition Schemes

1= Regular Schemes = If turnover is more than 1Cr then regular scheme is

mandatory.

Following Returns will be filed under this scheme.

GSTR 3B =GSTR-3 is a monthly GST Return on the date of 20 every months.

A= Detailed to be furnished in 3B

1=Total Taxable Amount

2=CGST/ SGST / IGST

3= Amount of Input Tax Credit

2=Composition Scheme= A taxpayer whose turnover is below Rs 1.0Cr can opt

for composition schemes. In case of North – Eastern States and Himachal Pradesh,
the limits is now Rs 75 lakh.

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 7. Conclusion
7.1 Conclusion
The study at company gave a vast learning experience to me has helped to enhance
my knowledge. During the study I learnt how to theoretical financial analysis
aspects are used in practice during the GST and Terms loan assessment. I have
realized during my project I learn more practical knowledge.

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