Page 26 - Craftcil Feb 2024

feature - 57th IHGF Delhi Fair - Spring 2024

Driving Growth with Productivity and Capital Efficiency

• Innovation in Sustainable Technologies • Capital Efficiency • Improve cash flow
• Ways to improve Overall Productivity

7th February 2024: Proper negotiation,
alternative solutions, consistent monitoring,
technology adoption and strategic financial
planning are key to achieving sustainable
success in capital efficiency and improve overall
productivity. By effectively managing bank loans
and proactively reducing bank interest costs,
businesses can free up significant financial
resources, improve cash flow, and ultimately
enhance their overall productivity and
efficiency.

Mr. Lalit Chetani, Director, Ontrust Capital
Markets Private Limited addressed the
imperative need to enhance cash flow, minimize borrowing costs, Financial Indicators (KFIs). Negotiating properly during
and rejuvenate credit scores in a comprehensive talk. Excerpts onboarding and strategically planning prepayments for existing
from his presentation follow: loans were highlighted as essential practices.

The first crucial step is cross-checking In the fourth step, Mr. Chetani shared insights on improving KFIs.
of bank interest rates. Surprisingly, a He stressed the importance of treating funds as full equity to
significant number of SMEs, reap benefits such as an enhanced debt-equity ratio, elimination
approximately 90%, were oblivious to
of interest outflow, and consequent improvements in profitability
the fact that they were overpaying
and credit ratings.
interest. The speaker underscored
A Chartered Accountant by profession, Mr. Chetani is a graduate
that even a 1% interest reduction
from St. Xavier's College, Kolkata with MBA from IIM. He has two
could have a substantial long-term
decades of experience in financial services including banking,
impact on overall costs. Moving on to
investment banking & private equity - one of the very few in
credit management, Chetani outlined
India to have raised funds from multiple DFIs including World
the importance of understanding and efficiently managing both
external and internal credit ratios. While external ratios might be Bank (IFC Washington), etc.
unnecessary for businesses with turnovers less than 25 crores, Through an illustrative presentation,
internal ratios are obligatory. Mr. Vishal Sharma, Deputy Director,
Furthermore, the speaker delved into the significance of CII spoke about the various clusters
presenting oneself positively, especially in the priority sector, they had worked with through
and introduced the concept of WCDL as a supplementary tool to interventions. He elaborated on CII’s
cash credit, aiding in securing lower interest rates. The third step role towards achieving excellence in
involved equipping oneself with effective negotiation tools, such manufacturing and operations, cluster
as having an Udhyam Aadhar and personally reviewing Key development, sustainability corrosion

26 CRAFTCIL • February 2024