Interview withMr. Nilay Rathi, Qualified Chartered Accountant & Management Post Graduate from Jamnalal Bajaj institute, Mumbai. He has 15 years long & wide experience in different industries like Steel, Packaging & Textiles. Currently working with well reputed Textile company as General Manager- Commercial.
TVC : What is your experience in getting financial accommodation from banks? Do they respond within a reasonable time and adopt positive approach?
NR : The bankers take an overall view of the running of a company. It indicates the company history, its legacy, turnover , composition of Directors etc. MSME units may have problems to get finance from banks. Textile Industry is peculiar being a “Low Margin , Long Working Capital industry cycle”
TVC : What’s your feeling on export of cotton ?
NR : The marketing of cotton is a virtual gamble because of tremendous volatility. The volatility factors are there due to fluctuation of cotton prices, weather conditions, Government policy intervention, Commodity market, etc. Fiber & Yarn manufacturer are always insecure due to high level of volatility in this market. We need more stable market. Volatility does not benefit farmers or buyers. Only middle men get benefited by volatility. China & Bangladesh due to mass production dominates price of cotton fibre & yarns. Export of cotton should be to the tune of excess production in the domestic market since cotton available in the market will be consumed for finished fabric which can generate more exchange revenue to the government.
TVC : What’s your experience about collateral Securities?
NR : We need to give 1.25 times collateral security for required amount of loan.
TVC : Whether your proposals for long term borrowing under TUFS are considered without many problems?
NR : We had faced many problems related to TUFS though we have a good position in the market. Government gives Unique Identity Number ( UID) for TUFS loans, first come first served basis, if any company fails to plan in advance to take TUFS loan and if it happens to apply late, company may not get UID number and hence not eligible for TUFS subsidy. Hence the equivalent benefit is not available to similar industries who had done expansion on same line in same period.
We request to government that application received during the black-out period should be made eligible for TUFS benefits. We also request that application which were unsuccessful in getting UID number gets extension of the sectorial CAP and should get priority when the fresh TUFS start.
TVC : Do you borrow funds outside TUFS for long term? If so, what is need for such funds and what is the outlook of banks?
NR : Our projects are confined to textiles and hence they tailored to the TUFS format hence mostly our loans which are eligible for TUF benefits are under TUFS.