TELANGANA INDUSTRIAL HEALTH CLINIC LTD.

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TELANGANA INDUSTRIAL HEALTH CLINIC LTD.

ANNUAL REPORT

2018-19

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• To ENSURE healthy manufacturing MSEs through responsive

counseling and responsible consulting and other mentoring services.

• To ENGAGE Manufacturing MSE’s with a strong and consistent in financial performance through better compliance standards.

• To SUPPORT and ENRICH sustainable working environment that

attracts, retains and develops committed team sharing common values.

• To play the role of ADVOCACY in assuring prompt payment by the vendees of MSEs.

• To PROPEL potential MSE’s to equity platforms like NSE and BSE.

VISION AND MISSION

OBJECTIVES

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Message form Shri K. Taraka Rama Rao, Honorable Minister for I&C 2

Message form Adviser Dr. Yerram Raju 3

Message form MD & CEO, Shri M. Sanjaya 4

Board of Directors 5

Report on Corporate Governance 7

Social & Environmental Governance 12

Introductin to MSME 13

Industrialization in Telangana 14

What We Offer 16

FY 2018-19 The Year of Exploration 17

Risk Management 22

i-Health 23

Human Resources 24

Financials 25

Way Forward 60

INDEX

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Telangana State is the first in the country to come up with an innovative solution to the widespread problem of industrial sickness, particularly in the SMEs.

About a year ago, Telangana Government has created Telangana Industrial Health Clinic Ltd., with the mandate of preventing incipient sickness and reviving MS- MEs which have unfortunately fallen sick. Telangana Industrial Health Clinic Ltd is expected to work in tandem with banks and identify cases that require timely intervention. Given the looming economic slowdown the world over, these are even more testing times for the MSMEs. The relevance and utility of an institution like the TIHCL has become even more.

I appeal to the banks to appreciate the value an institution like Telangana In- dustrial Health Clinic Ltd., brings to the financial sector. Given the fact that MSMEs are the backbone of our economy, the bankers need to follow a very balanced approach in dealing with financial issues of the MSMEs. Telangana Industrial Health Clinic Ltd., has the professional expertise to figure out the genuine requirements of MSMEs facing financial difficulties and offer practical recommendations.

I hope that Telangana Industrial Health Clinic Ltd., will be able to show a large number of success stories in preventing sickness and revival of sick units in time to come. I expect Telangana Industrial Health Clinic Ltd., to become a national role model and a get emulated in all other states in our country

With Best Wishes

K. TARAKA RAMA RAO

Minister for IT, Municipal Administration &

Urban Development, Industries &

Commerce, Public Enterprises, Mines & Geology and NRI affairs

Government of Telangana

Message

( K. Taraka Rama Rao )

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The first year of full-fledged functioning of TIHCL posed several expected challenges. Principal challenge has been the resource mobilization that continued for the second year as well. The second challenge has been getting the Banks on board for co-financing for revival. The third has been putting technology in place. We had near nine-month long discussions with Microsoft that has been approved by the Government after due diligence of four firms that made presentations to us.

Major challenge continues to make the banks see the light at the end of tunnel for revival. Even data on sickness and incipient sickness has been kept in the cupboards. We had to depend upon Industry Associations. Every interaction with the Association has been icing on the cake. Several enterprises that are incipient sick have been noticed to be afraid of declaring themselves for fear of their creditors likely to hold up the bills due for payment of supplies. Most enterprises have not been able to reconcile to GST as a compelling virtuous intervention.

In order to help digitization, we have launched Digital Accountants Program that envisaged low cost accounting support to the micro and small enterprises at their doorstep. This effort is yet to get traction.

New loan products have been launched and the Company has gone fully online with the i-Health product, though with a delay of three months in June 2019.

Businesswise, we have a lot to achieve. The Company is fully geared to take the challenges in its stride and show the achievements true to its mandate. Potentially viable and viable MSMEs in manufacturing are being given exit with OTS by Banks. They are knocking the doors of NBFCs for direct working capital finance. This space is quite huge for discrete lenders like us because such enterprises will also be able to offer collateral security. TIHCL could position itself as a prime lender in this space

Regulatory compliance has been excellent. Managing Committee of the Board has been commendably guiding the Company in formulating new strategies and introducing new products.

The Company has given rise to great expectations in the stakeholders and shareholders of the Company. During the interactions with the Ministry of MSME, Government of India, we have been able to convince them of the effec- tiveness of the model and the Secretary (MSME), Gol has made public mention of this institution as the best way to resolve stress among the manufacturing MSEs.

During the year MOUs have been signed with MSME-DI and ICC, Hyderabad for enhancing our reach.

The year ahead is expected to be the year of fulfilment and the organization is committed to moving ahead despite odds. It hopes to see some positive recommendations from MSME Committee set up by the RBI, particularly in the area of stressed asset resolution. The staff and top management deserve all the encouragement to keep the flag of TIHCL flying high.

Message from Adviser

(Dr. B. Yerram Raju)

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The year 2018 -2019 was our Year of Exploration. TIHCL was established, having vision to build a complete eco-system for manufacturing MSEs and to meet the unmet needs of unserved and beleaguered manufacturing MSE’s in the State of Telangana. Your company which started its operations on April 2, 2018 is offering Revival and Rehabilitation, Credit facilitation, equity participation and handholding services for the stressed enterprises.

“We serve online to help offline. Our purpose is social, but objective is commercial. Our USP is ‘handholding.”

We explored intensely the possibility of on boarding the commercial banks in our retaliation effort but could not succeed. We explored without success, the possibility of securing capital from banks, SIDBI & NABARD. We are now looking elsewhere for capital to pursue our noble goals.

We successfully negotiated hard with Microsoft for providing technology. IT Department, Govt of Telangana and particularly the Principal Secretary (IT) supported us through the negotiation process and hosting on Azure cloud. During the year, we have launched our software, i-Health, on your Company’s website. All entrepreneurs can upload their applications from any where in the State, without any need to come to the Company’s office.

We disappointed our consulting teams during the year, as not many eligible enterprises were referred by either the DICs or Banks or Associations. Our in-house capabilities could take care of the revival of the walk-in enterprises.

We explored the possibility of lining up industry associations and addressed over ten meetings that is showing up results.

Our efforts to revive 41 enterprises succeeded with creation of or sustaining employment 895 persons and protecting or enhancing their capacities. Detailed report on the developments during the year has been provided in the following pages.

We explored digitalization of MSEs through an army of accountants and launched the first program for “Digital Accountants” in collaboration with MSME-DI and CITD. We entered into MOU’s with a ERP solutions firm ‘SY- SCON’ and an Industry Association, ICC.

We explored setting up knowledge platform on our website and all the staff are fully geared to addressing the issues brought to the fore by the ailing MSE’s with confidence. We equipped a small library to enhance the skills on a continuing basis. Sectoral perspectives are being explored. Research studies continue to be undertaken.

We have done TS-iPASS study based on secondary data.

The year truly proved a challenge. All the Directors and the Board, through various committees have contributed richly to setting up the right practices with transparency and accountability as guiding principles.

Our journey just started, and we are confident of high growth with fresh breeze on private equity blowing through our chambers. The year 2019-20 will be the Year of Performance.

Message from MD & CEO

(Maruvada Sanjaya)

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He is the Principal Secretary of the Industries & Commerce (I&C) and Information Technology (IT) Departments of the Telangana government. His assignment involves developing policy frame- works, attracting new investments, identifying opportunities for utilizing IT in various government processes, and promoting digital empowerment of the citizens.

Shri Jayesh Ranjan, I.A.S.

He is the Vice Chairman & Managing Director, Telangana State Industrial & Infrastructure Corporation (TSIIC), Hyderabad and Jt.Managing Director of Telangana State Industrial Developoment Corporation.

Shri E.V. Narasimha Reddy

He is Adviser, Government of Telangana, (TIHCL). After nearly three decades of banking experience with SBI, and Dean of Stud- ies, ASCI he devoted his attention to the growth of MSME sector both nationally and globally. He was member of Jury, SME’s, Asia Pacific Banker’s Congress, Manila (2004-05).

Dr. Yerram Raju Behara

He is the Commissioner of Industries, and is holding addtional charge of Commissioner of Labour, Employment Training and Factories.

Shri Ahmad Nadeem, I.A.S.,

A Career Central Banker, he had 33 years of commandable service with Reserve Bank of India and is the Managing Director

& CEO of TIHCL.

Shri Sanjaya Maruvada

Our Official Directors

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He has more than 30 years’ experience in RBI and held various positions in the Bank before retiring as the Banking Om- budsman for the States of Andhra Pradesh and Telangana. He was the Regional Director of RBI offices at Trivandrum and Hyderabad.

He is the president of Telangana Industrialists Federation (TIF), an association which strives for the welfare of MSMEs in the state of Telangana. He started his career as an entrepreneur in 1996. He held various positions in Industrial Associa- tions and IALAs. He has more than 25 years of Experience in manufacturing sector.

Dr. N. Krishna Mohan

She is a Strategy Consultant, Director of Corporate Boards and Academic Governing Councils and a Founder Member of a Woman Support NGO, since her superannuation from The Ad- ministrative Staff College of India in 2012, where she held the posts of Dean and Professor, Strategic Management.

Dr. B. Kinnera Murthy

Shri S. Srinivasa Rao

Shri Kondaveeti Sudhir Reddy

He retired as MD, APITCO, an organisation involved in SME sector.

A practical industrialist, he started his career as an entrepreneur starting an SSI unit in 1972. Later he joined APITCO as Consultant and rose to head the institution as MD.

Our Independent Directors

He is an accomplished Civil Servant with over 38 years of varied experience and exposure in Administration, Institution Building, General management with proven experience of giving strategic direction and policy support to several Government establishments and programmes. Currently he is involved in promoting a Global Scientific Research and Development platform based at Hyderabad.

Dr. S. V. Prabhath

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TIHCL’s Governance Philosophy

TIHCL defines Corporate Governance as a systemic process by which companies are directed and con- trolled to enhance their sustainability and profitability. TIHCL believes that the governance process should ensure that, companies’ resources are utilized in a manner that meets stakeholders’ aspirations and societal expectations. This belief is reflected in the Company’s deep commitment to contribute to the “triple bottom line”, namely conservation and development of the state’s economic, social and environmental capital.

TIHCL Corporate Governance structure, systems and processes are based on five core principles:

1. Protecting and enhancing the ‘values’ of the organization 2. Regulatory compliance oversight

3. Strategic direction

4. Preserving the independence, autonomy and transparency within the Board defined framework 5. Ensuring ethical practices in the organization

The Governance Structure

TIHCL has adopted best corporate practices and is committed to conduct its business in accordance with the applicable laws, rules and regulations. The Corporate governance framework is based on an effective independent Board, separation of the supervisory role of the Board from the Executive management team and proper constitution of Committees of the Board. Company’s Board of Directors comprise of professionals having vast experiences in relevant fields numbering 10 including five independent directors.

The company has been complying with all the requirements-

• To run as a Non-Banking Financial Institution without accepting public deposits subject to the conditions of the Reserve Bank.

• Of all applicable corporate governance norms in relation to the constitution of the Board and Com- mittees The practice of Corporate Governance in TIHCL takes place at three interlinked levels:

REPORT ON CORPORATE GOVERNANCE

A Strategic Supervision By Board of Directors

B Strategic Management By Managing Committee (MC)

C Execution By the Managing Director assisted by Chief Operating Officer

The three-tier governance structure ensures that:

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Page 10 of 37 A Strategic

Supervision By Board of Directors B Strategic

Management By Managing Committee (MC)

A. Strategic supervision is free from involvement in the task of strategic management of the Company. The strategic supervision is conducted by the Board with objectivity, thereby sharpening accountability of management;

Composition of the Board as on 31st March 2019

Category No. of directors Names

Whole-time Directors 2 Dr Yerram Raju Behara Shri Sanjaya Maruvada

Official Directors 3 Shri Jayesh Ranjan

Shri Ahmad Nadeem Shri E. Venkat Narsimha Reddy

Independent Directors 5

Dr. B. Kinnera Murthy Dr. S. V. Prabhath Dr. N. Krishna Mohan

Shri S. Srinivas Rao Shri Kondaveeti Sudhir Reddy

Total 10

Details of Board Meetings during the financial year

As against 4 meetings to be conducted, all the 4 have been conducted during the year as per details below:

Sl. Date Board Strength No. Of Directors Present

1 27.06.2018 10 10

2 07.09.2018 10 7

3 18.12.2018 10 8

4 20.03.2019 10 8

Attendance at Board Meetings and at Annual General Meeting (AGM) during the FY

Director No. Of Board Meetings

attended Attendance at AGM

Shri Jayesh Ranjan 4 1

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*Shri Gowra Srinivas retired from the role of Independent Director in the month of July 2018. He has been replaced by Shri Kondaveeti Sudhir Reddy on 10th September 2018.

As against 4 meetings to be conducted, all the 4 have been conducted during the year as per details below:

Attendance at Board Meetings and at Annual General Meeting (AGM) during the FY Composition of the Board as on 31st March 2019

A. Strategic supervision is free from involvement in the task of strategic management of the Company. The strategic supervision is conducted by the Board with objectivity, thereby

sharp ening accountability of management;

Page 11 of 37 Director No. Of Board Meetings

attended Attendance at AGM

Shri Jayesh Ranjan 4 1

Shri Ahmad Nadeem 1 Absent

Shri E. Venkat Narsimha Reddy 4 1

Dr. Yerram Raju Behara 4 1

Shri Sanjaya Maruvada 4 1

Dr. B. Kinnera Murthy 3

Dr. S. V. Prabhath 2 -

Dr. N. Krishna Mohan 4 -

Shri S. Srinivas Rao 4 -

Shri Kondaveeti Sudhir Reddy 2 -

Shri Gowra Srinivas 1 -

Leave of absence is granted to- On the dates

Shri Ahmad Nadeem 07.09.2018, 18.12.2018, 20.03.2019 Dr. S. V. Prabhath 07.09.2018, 18.12.2018

Dr. B. Kinnera Murthy 20.03.2019

B. Strategic management of the Company’s business vested with Management committee within Board approved direction and realization of Company goals. The primary role of the MC is to act as brain-trust behind the business model to realize the vision, and tactical and strategic objectives in accordance with Board approved plan. The MC also assesses the performance of the businesses model, on an ongoing basis.

Composition of Management Committee The committee was constituted on -19.03.2018

Category No. of

directors Names

Whole- time Directors 2 Dr Yerram Raju Behara Shri Sanjaya Maruvada Non- Executive Independent

Directors 3 Dr. S V Prabhath

Dr. N. Krishna Mohan Shri S. Srinivas Rao

Total 5

Details of Management Committee Meetings during the financial year Sl. Date MC Strength No. Of Directors Present

Page 10 of 37 A Strategic

Supervision By Board of Directors B Strategic

Management By Managing Committee (MC)

A. Strategic supervision is free from involvement in the task of strategic management of the Company. The strategic supervision is conducted by the Board with objectivity, thereby sharpening accountability of management;

Composition of the Board as on 31st March 2019

Category No. of directors Names

Whole-time Directors 2 Dr Yerram Raju Behara Shri Sanjaya Maruvada

Official Directors 3 Shri Jayesh Ranjan

Shri Ahmad Nadeem Shri E. Venkat Narsimha Reddy

Independent Directors 5

Dr. B. Kinnera Murthy Dr. S. V. Prabhath Dr. N. Krishna Mohan

Shri S. Srinivas Rao Shri Kondaveeti Sudhir Reddy

Total 10

As against 4 meetings to be conducted, all the 4 have been conducted during the year as per details below:

Sl. Date Board Strength No. Of Directors Present

1 27.06.2018 10 10

2 07.09.2018 10 7

3 18.12.2018 10 8

4 20.03.2019 10 8

Attendance at Board Meetings and at Annual General Meeting (AGM) during the FY

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B. Strategic management of the Company’s business vested with Management Committee within Board approved direction and realization of Company goals. The primary role of the MC is to act as brain-trust behind the business model to realize the vision, and tactical and strategic objectives in accordance with Board approved plan. The MC also assesses the performance of the businesses model, on an ongoing basis.

Management Committee

The Committee was constituted on -19.03.2018

Page 12 of 37 Sl. Date MC Strength No. Of Directors Present

1 15.06.2018 4 4

2 13.07.2018 6 6 (including special invitees)

3 27.08.2018 6 5

4 08.03.2018 5 4

Director No. of Meetings attended

Dr Yerram Raju Behara 4

Shri Sanjaya Maruvada 4

Dr. S. V. Prabhath 2

Dr. N. Krishna Mohan 4

Shri S. Srinivas Rao 3

Shri Srinivas Gowra 1

C. For Execution there are well-established set of policies and procedures followed in lending processes in revival of the MSE units. The products offered in revival package and their features, terms and conditions, including those related to effective interest rates, processing fees and other charges, penalties for delays in repayment or for prepayment/pre-closure, are clearly mentioned in the loan agreement and/or sanction letter, as per RBI’s Fair Practices Code for NBFCs. All the customer level and loan level information are being stored both electronic and as physical formats to ensure smooth functioning of the business

Committee Meetings for better Governance –

The Board of Directors functions either as a full Board or through Committees constituted to oversee specific operational areas.

Board Level Investment Committee

The committee was constituted on - 07.09.2018

Sl. Meeting held on Composition of the Committee 1 15.02.2019 Shri Sanjaya Maruvada

Dr. B. Kinnera Murthy Dr. S V Prabhath Purpose of

the committee

This committee meeting was held to consciously invest the investable surplus fund available with TIHCL

Securities Issuance and Allotment Committee

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Sl. Date MC Strength No. Of Directors Present

1 15.06.2018 4 4

3 27.08.2018 6 5

4 08.03.2018 5 4

Dr. S. V. Prabhath 2

Committee Meetings for better Governance –

Sl. Meeting held on Composition of the Committee 1 15.02.2019 Shri Sanjaya Maruvada

Dr. B. Kinnera Murthy Dr. S V Prabhath Purpose of

the committee

Securities Issuance and Allotment Committee

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Shri Gowra Srinivas 1 -

Leave of absence is granted to- On the dates

Shri Ahmad Nadeem 07.09.2018, 18.12.2018, 20.03.2019 Dr. S. V. Prabhath 07.09.2018, 18.12.2018

Dr. B. Kinnera Murthy 20.03.2019

B. Strategic management of the Company’s business vested with Management committee within Board approved direction and realization of Company goals. The primary role of the MC is to act as brain-trust behind the business model to realize the vision, and tactical and strategic objectives in accordance with Board approved plan. The MC also assesses the performance of the businesses model, on an ongoing basis.

Management Committee

The committee was constituted on -19.03.2018

Category Composition of the committee

Non- Executive Independent Directors

Dr. N. Krishna Mohan Dr. S V Prabhath Shri S. Srinivas Rao Whole- time Directors Dr Yerram Raju Behara

Shri Sanjaya Maruvada

Details of Management Committee Meetings during the financial year

Sl. Date MC Strength No. Of Directors Present

1 15.06.2018 4 4

3 27.08.2018 6 5

4 08.03.2018 5 4

Dr. S V Prabhath 2

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10 C. For Execution there are well-established set of policies and procedures followed in lending

processes in revival of the MSE units. The products offered in revival package and their features, terms and conditions, including those related to effective interest rates, processing fees and other charges, penalties for delays in repayment or for prepayment/pre-closure, are clearly mentioned in the loan agreement and/or sanction letter, as per RBI’s Fair Practices Code for NBFCs. All the customer level and loan level information are being stored both electronic and as physical formats to ensure smooth functioning of the business

Committee Meetings for better Governance

The Board of Directors functions either as a full Board or through Committees constituted to oversee specific operational areas.

Board Level Investment Committee

The committee was constituted on -19.03.2018

Nomination and Remuneration Committee The committee was constituted on - 20.03.2019

Committee Meetings for better Governance –

Sl. No Meeting held on Composition of the Committee

1 15.02.2019 Dr. S V Prabhath

Dr. B. Kinnera Murthy Shri Sanjaya Maruvada Purpose of

the committee

Share Issuance and Allotment Committee The committee was constituted on -19.03.2018

Sl. No Meeting held on Composition of the Committee

1 8.10. 2018 Shri E. Venkat Narsimha Reddy

Dr. Yerram Raju Behara Shri Sanjaya Maruvada Purpose

of the committee

The objective of this committee is to lay down the criteria and parameters that are to be considered by board of directors of the company while deciding on the issue and allotment of Equity Shares of the company from time to time. The committee approved policy is applicable to issue of equity shares only and does not cover issue of preference shares or any other securities

Committee Meetings for better Governance –

Sl. No Meeting held on Composition of the Committee

1 15.02.2019 Dr. S V Prabhath

Dr. B. Kinnera Murthy Shri Sanjaya Maruvada Purpose of

the committee

Share Issuance and Allotment Committee The committee was constituted on -19.03.2018

Sl. No Meeting held on Composition of the Committee

1 8.10. 2018 Shri E. Venkat Narsimha Reddy

Dr. Yerram Raju Behara Shri Sanjaya Maruvada Purpose

of the committee

The objective of this committee is to lay down the criteria and parameters that are to be considered by board of directors of the company while deciding on the issue and allotment of Equity Shares of the company from time to time. The committee approved policy is applicable to issue of equity shares only and does not cover issue of preference shares or any other securities

Nomination and Remuneration Committee - The committee was constituted on - 20.03.2019

Sl. No. Meeting held

on Composition of the Committee 1 15.04.2019 Shri E. Venkat Narsimha Reddy

Dr. B. Kinnera Murthy Shri S. Srinivas Rao Purpose of

the committee

The Committee’s role is to recommend to the Board in the matter of appointment, remuneration and removal of the Directors and Senior Management.

Industrialization in Telangana – an Overview

Telangana, aims to promote innovation and entrepreneurship, leveraging upon its natural demographic assets as well as its base of skilled technology and research professionals. The Telangana government has vision to transform the state as destination for all investors globally. And is committed to providing a graft-free, smooth environment for the businesses to thrive and evolve, thus advancing the state economy concurrently.

At the time of formation of the State, the speed of setting up of the businesses in the state needed acceleration to provide investor friendly atmosphere. Hence, an instrument like TS-iPASS has been devised as a policy instrument for online clearances to accelerate the industrial growth of the state-

TS-iPASS Year-wise clearances issued

Sl. No. Year No. of Units Investment in crores

(₹) Employment

1 2015-16 1546 29158.90 106685

2 2016-17 1793 34960.81 122511

3 2017-18 3037 58374.63 293422

4 2018-19 3058 35780.00 609508

Total 9434 158274.34 1132126

Telangana State with its focus on creating a robust ecosystem for start-ups has been acknowledged as 'Leader' for start-ups in India. This was announced by the

Department of Industrial Policy and Promotion (DIPP), Commerce and Industries Ministry as part of the State Start-up Rankings for 2018.

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TIHCL has incorporated Whistle Blowers Policy in the 2nd Board Meeting of the year 2018-2019 chaired by our Independent Director Shri S. Srinivasa Rao.

The Whistle Blower Policy of TIHCL would involve the following:

1.Keeping in view the substantial personal and professional risk involved in the process, TIHCL mandatorily keeps the confidentiality of the person and information revealed in the process, within the bounds of laws of the country.

2.The Independent Director would keep the Chairman of the Board informed through a strictly confidential note in a sealed cover the information so received.

3.The Independent Director would escalate the issue through the Chairman to the Serious Fraud Investigation Office of Government of India within 24 hours of completing the prelimi- nary inquiry with such information as warranted.

4.Under no circumstances, such information shall be discussed in media or public glare.

5.Internal Compliance Programs would encourage whistle blowers to report fraud or other wrong- doing.

6.Provide for compensation for lost back-pay and other damages, as well as rein statement if the whistle blower suffers retaliation in his/her employment.

7.It shall be the responsibility of the Managing Director & CEO to ensure that the architect of fraud would not qualify for any award through concealment or postponement of the act of punishment.

DIRECTORS ROLE/ CONTRIBUTION

Directors have furnished a brief statement on their contribution to the value of the Company.

It may be noticed that even the Government nominee Directors have furnished such statement setting a very healthy precedent in Corporate Governance in India. Two of the Directors did not choose to give such statement. Prudence prevailed on the Company not to insist. By next year, this gap will be hopefully filled up. A few of them even furnished as to what value they would like to add in the coming year. Board will have opportunity to measure their functioning and the functioning of the Board itself on these parameters-

WHISTLE BLOWERS POLICY

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SOCIAL AND ENVIRONMENTAL GOVERNANCE

As a part of ninth goal of sustainable development goals of the UN relating to SME De- velop ment, Govt of Telangana took the initiative of setting up of TIHCL. TIHCL through its re vival and restructuring package has revived 61 units, safeguarded employment of 1469 persons employment and activated ₹ 77.04 cores worth assets and machinery, lest they would have been rusted and obsolete.

Its revival covered environmental supportive industries like paper products manufacturing substituting plastics, a sweet lemon juice manufacturing co-operative society which provides preservative-free juice to patients of nearby hospitals, a textile park which protects the roots of women handloom artisans and many more. Our revival process ensures sustainability through all the environmental compliances.

Our Board ensures ethical conduct in business operations. The company is acutely conscious of bringing about change in the enterprise in it attempts to revive. On a para- digm shift in thinking about where they do their business and to be a departure from the past, Company is also conscious of the fact that the majority of customers coming for revival are not demanding in nature and therefore proactiveness in leading them to doing their business, consistent with their future aspiration, is required.

Increasing urbanization demands focus on sustainability issues, from the looming im- pacts of climate change, to health- and safety-associated risks, to credit and investment gaps that limit business opportunities and hamper economic progress in the country.

Market mechanisms can be less effective when an externality is widespread or an im- pact not so easy to discern like the biodiversity. Every product of the Company is as- sessed for its possible risks to the environment and society. Board is proactive while advising the management to be proactive and sensitive to the opportunities that lie when economy moves on a slow wheel.

Social and environmental governance continues to be obsession with our Board and Management.

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INTRODUCTION TO MSME

Micro Small and Medium Enterprises (MSMEs) - Indian Economy

MSMEs are the strongest drivers of economic development, innovation and employment. The MSME sector also contributes in a significant way to the growth of the Indian economy with a vast network of about 63.38 million enterprises. The sector contributes about 45% to manufacturing output, more than 40% of exports, over 28% of the GDP while creating employment for about 111 million people.

The MSME sector in India is exceedingly heterogeneous in terms of size of the enterprises and variety of products and services, and levels of technology employed.

Contribution of MSMEs in Country’s Economy at Current Price

However, the sector possesses a great potentiality within and also facing significant challenges which are required to be addressed by way of-

• Policy and institutional interventions

• Accelerating growth and enabling formalisation

• Addressing infrastructural bottlenecks

• Facilitating capacity building

• Facilitating access to credit and risk capital

• Technological interventions for improving underwriting standards and delivery

• Enabling market linkage and tie-up with public procurement platforms

The Government of India and Reserve Bank of India have taken up several initiatives and measures to address the challenges faced by MSMEs. However, the sector remains informal and vulnerable to structural and cyclical shocks, at times with persistent outcomes. Further, an increasingly globalized world, marked by competition and innovation is posing newer and varied challenges to the MSMEs.

Majority of supportive initiatives and measures taken up by GOI & RBI are supporting new enterprises and encouraging new start-ups ideas, but the increasing stress (be it financial stress or non-financial stress) in already established MSMEs remains unaddressed and to build a comprehensive eco-system for MSEs, resolution to de-stress the stress faced by existing MSEs should be prioritised.

Source: Annual Report Ministry of MSME 2018-19

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Introduction to MSME-

Micro Small and Medium Enterprises (MSMEs) - Indian Economy-

MSMEs are the strongest drivers of economic development, innovation and employment. The MSME sector also contributes in a significant way to the growth of the Indian economy with a vast network of about 63.38 million enterprises. The sector contributes about 45% to manufacturing output, more than 40% of exports, over 28% of the GDP while creating employment for about 111 million people. The MSME sector in India is exceedingly heterogeneous in terms of size of the enterprises and variety of products and services, and levels of technology employed.

Contribution of MSMEs in Country’s Economy at Current Price

Year MSME GVA Growth (%)

Total Gross Value added (GVA)

Share of MSME in GVA (%)

Total Gross Domestic Product (GDP)

Share of MSME in GDP (in %)

2011-12 2622574 - 8106946 32.35 8736329 30.00

2012-13 3020528 15.17 9202692 32.82 9944013 30.40

2013-14 3389922 12.23 10363153 32.71 11233522 30.20

2014-15 3704956 9.29 11504279 32.21 12467959 29.70

2015-16 4025595 8.65 12566646 32.03 13764037 29.20

2016-17 4405753 9.44 13841591 31.83 15253714 28.90

Source: Annual Report Ministry of MSME 2018-19

However, the sector possesses a great potentiality within and also facing significant challenges which are required to be addressed by way of-

 Policy and institutional interventions

 Accelerating growth and enabling formalisation

 Addressing infrastructural bottlenecks

 Facilitating capacity building

 Facilitating access to credit and risk capital

 Technological interventions for improving underwriting standards and delivery

 Enabling market linkage and tie-up with public procurement platforms

The Government of India and Reserve Bank of India have taken up several initiatives and measures to address the challenges faced by MSMEs. However, the sector remains informal and vulnerable to structural and cyclical shocks, at times with

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RBI has constituted ‘Expert Committee on Micro, Small and Medium Enterprises’, to look into areas of capacity building, policy changes and financing needs so as to unlock the potential of this sector.

In the process, the committee has interacted with public, various representatives of Ministries, several experts and stakeholders. The Committee also examined the experiences in other countries. The Committee concluded that combination of Digital Public Infrastructure, progressive regulation and new market forces has the potential to energize the MSME Sector. Emergence of a digital lending value chain will provide fast turnaround and easy accessibility for MSME borrowers and use new data and credit scoring algorithms to provide new types of risk-adjusted lending products. This infrastructure can operate at a scale, break access barriers, and provide MSMEs with the ability to access finance and scale to reach their potential.

It has recommended setting up Enterprise Development Centres and Diagnostic Clinics as part of en- hanced ecosystem for MSMEs. The Committee also recommended setting up of Distressed Asset Reso- lution Fund of Rs.5000cr and Fund of Funds of Rs.10000cr for sustainable MSME Development.

T-Hub initiative of Telangana received commendation from the Committee as worthy of emulation by the other States.

INDUSTRIALIZATION IN TELANGANA – AN OVERVIEW

Telangana, aims to promote innovation and entrepreneurship, leveraging upon its natural demographic assets as well as its base of skilled technology and research professionals. The Telangana government has vision to transform the state as destination for all investors globally, and is committed to providing a graft-free, smooth environment for the businesses to thrive and evolve, thus advancing the State economy concurrently.

At the time of formation of the State, the speed of setting up of the businesses in the State needed acceleration to provide investor friendly atmosphere. Hence, an instrument like TS-iPASS has been devised as a policy instrument for online clearances to accelerate the industrial growth of the state-

TS-IPASS YEAR-WISE CLEARANCES ISSUED

Telangana State with its focus on creating a robust ecosystem for start-ups has been acknowledged as

‘Leader’ for start-ups in India. This was announced by the Department of Industrial Policy and Promo- tion (DIPP), Commerce and Industries Ministry as part of the State Start-up Rankings for 2018.

EXPERT COMMITTEE ON MSME COMMITTEE

Nomination and Remuneration Committee - The committee was constituted on - 20.03.2019

Sl. No. Meeting held

on Composition of the Committee 1 15.04.2019 Shri E. Venkat Narsimha Reddy

Dr. B. Kinnera Murthy Shri S. Srinivas Rao Purpose of

the committee

The Committee’s role is to recommend to the Board in the matter of appointment, remuneration and removal of the Directors and Senior Management.

Industrialization in Telangana – an Overview

Telangana, aims to promote innovation and entrepreneurship, leveraging upon its natural demographic assets as well as its base of skilled technology and research professionals. The Telangana government has vision to transform the state as destination for all investors globally. And is committed to providing a graft-free, smooth environment for the businesses to thrive and evolve, thus advancing the state economy concurrently.

At the time of formation of the State, the speed of setting up of the businesses in the state needed acceleration to provide investor friendly atmosphere. Hence, an instrument like TS-iPASS has been devised as a policy instrument for online clearances to accelerate the industrial growth of the state-

TS-iPASS Year-wise clearances issued

Sl. No. Year No. of Units Investment in crores

(₹) Employment

1 2015-16 1546 29158.90 106685

2 2016-17 1793 34960.81 122511

3 2017-18 3037 58374.63 293422

4 2018-19 3058 35780.00 609508

Total 9434 158274.34 1132126

Telangana State with its focus on creating a robust ecosystem for start-ups has been acknowledged as 'Leader' for start-ups in India. This was announced by the

Department of Industrial Policy and Promotion (DIPP), Commerce and Industries Ministry as part of the State Start-up Rankings for 2018.

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FINANCIAL

Lack of awareness of credit facilitation

Non-compliance of lenders’

stipulations

Inappropriate utilization of allocated funds

NON-FINANCIAL

Ownership and Management Knowledge on Banking Facilities Delay in release of subsidies and

realization of bills Accounting knowledge

FINANCIAL INSTITUTIONS DISAPPOINT

Bankers disinterest in revival of viable enterprises and conducting prejudicial TEV studies only to deny the

potentially viable enterprises to turn around Declining and delaying credit

Banks were found to be overanxious in proceeding under SARFAESI ACT 2000, disregarding the instructions

of RBI in this regard Lack of support for equity

SICKNESS

GSDP - Outlook for 2018-19

• As per advanced estimates released by the Directorate of Economics and Statistics, the Gross State Domestic Product (GSDP) at current prices for the year 2018-19 is estimated to be Rs. 8.67 lakh crore

• Impressive growth rate of 15 percent.

• Telangana GSDP at constant (2011-12) prices for the year 2018-19 is estimated at Rs. 6.25 lakh crore

• Highest growth rate of 10.6 percent, since the formation of State.

Performance of the state‘s economy in 2018-19

• The share of Telangana’s economy in the national GDP is 4.55%in 2018-19

• The share of the state in All India GDP has increased by about 53 points within a short span of about 4 years.

• The steep increase in state share is due to the State’s growth rate being higher than that of All-India growth rate.

Telangana has ranked 2nd in Ease of Doing Business and 100% on reforms scorecard.

ABOUT TIHCL

GROWTH

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WHAT WE OFFER

Ever since it commenced its operations on 2nd April 2018, the following products initially formed the bouquet of offerings:

1.REVIVAL AND REHABILITATION AND MARGIN LOAN FACILITATION

TIHCL revives and rehabilitates the sick and incipiently sick micro and small manufacturing enterprises in the State, by identifying the problems of the enterprise through diagnostic study and support them with handholding process. In cases where the entrepreneur is unable to bring in the additional margin money required by the bank for revival, TIHCL may grant a soft loan repayable along with bank finance.

2. CREDIT FACILITATION – A PREVENTIVE TOOL

Providing the supplementary finance or part-equity required by new enterprises in cluster locations at the stage of business commencement. Unsecured loans with high interest component upfront play a significant role in enterprises becoming incipient sick. Our objective is to curtail this practice, by providing credit facilitation at a very nominal rate of interest and ensuring at the same time that the entrepreneur has adequate stake in the enterprise. Clusters have the advantage of forward and backward integration, thus having a higher benefit than units setup elsewhere.

3.OVERDUE BILL PURCHASE

TIHCL will provide finance to entrepreneur on bills which are overdue for payment after discounting with bank. The bill if not paid beyond 90 days after due date will lead to account being classified as NPA.

TIHCL will provide finance to such bills by repurchasing and helping the entrepreneur to distance from NPA trap. TIHCL will finance only bills drawn on PSU and government departments.

4.CRITICAL AMOUNT FUNDING (CAF)

TIHCL provides loan facility for repayment of critical amount to stressed enterprises, which would prevent them slipping into NPA. In diagnostic study if the enterprise is viable for revival, a loan for the repayment of critical amount will be provided by TIHCL for onward payment to the bank to bail out unit from becoming NPA by taking Pari- Passu charge from the bank/FI.

Telangana Industrial Health Clinic (TIHCL) has started its journey on 2nd April 2018 as a fintech driven Non-Banking Finance Company promoted by Government of Telangana. TIHCL is an industry initiative to diagnose and cure stressed and incipient MSEs in the manufacturing sector. Founded on the principles of lean management institutional practices, with visionary leadership at the helm of its affairs, TIHCL is supported by an expert team of consultants and alliances committed to contribute for the purpose.

Our innovative institution has been set up to address the challenges of MSEs. Preventing Industrial sickness is an integral part of the development process. The factors responsible for sickness in manufacturing MSEs Majority of micro, small manufacturing enterprises face issues, because they are unorganized and are strangulated by enthusiastic application of Securitization and Reconstruction of aFinancial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 by the Banks.

TIHCL is one stop solution for all the financial and non-financial stress faced by MSEs, it has been established to be preventive as well as curative clinic for stressed MSEs in the State of Telangana within the gamut of industry ecosystem comprising entrepreneurs, industries department/DICs, Ministry/government, banks, financial institutions and other stake holders.

ABOUT TIHCL

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5. STRESSED ASSET FINANCING (SAF)

Based on the diagnostic study buttressed by TEV study where felt necessary, by TIHCL, if the applicant unit is found potentially viable, we would approach the unit’s Bank to off-load the asset along with the collateral securities if any held by them towards that account. The decision on providing this facility to the enterprise is completely at the discretion of TIHCL.

6. PRIORITY SANCTION

TIHCL will recommend early release of sanctioned investment subsidy (T-ldea). On enquiry received from Industries and commerce department, TIHCL will conduct a study on the Enterprise & provide recommendations to the I&C dept in its Study Report.

7. BRIDGE FINANCE

TIHCL will provide finance to stressed micro and small manufacturing enterprises against 75% of sanctioned investment subsidies (T-Idea) on a very selective bases

PRODUCTS ONLY FOR WOMEN

8. NARI (NARI ASSISTANCE REVIVAL OF INDUSTRY)

In the Revival and Restructure product offering, TIHCL is focusing on reviving the potential micro and small manufacturing units, which are incipient sick, sick or closed units in the region of the Telangana State. This particular product is devised for offering to Women Entrepreneurs at concessional rates of processing fee. We identify the problems of the enterprise in diagnostic study and support them with handholding process

9.WE (WOMEN ENTERPRISE) LOANS

TIHCL will provide financial assistance to existing manufacturing enterprises managed and owned by women entrepreneurs in providing Counselling and guidance to run and/or expand Manufacturing Activity

10.SWASHAKTI (FOR NEW UNITS BY WOMEN)

TIHCL will provide financial assistance to new manufacturing enterprises managed and owned by women entrepreneurs in providing Pre-entry project assistance, counselling and helping hand and guidance in compliance to start and run a Manufacturing Industrial enterprise

TIHCL HAS BEEN PROACTIVE WHILE DEALING WITH THE STRESS OF MANUFACTURING MSES AND IMPROVE ITS PRODUCT OFFERINGS.

FY 2018-19 THE YEAR OF EXPLORATION

MARKETING OF TIHCL SERVICES

IDENTIFICATION OF SICK ENTERPRISES

1.Banks were unwilling to share data/information relating to incipient sick/sick manufacturing MSEs.

The enterprises are found unwilling to declare themselves as sick and incipient sick because of the reason that their creditors would defer their payments or even deny them. Therefore, finding the right clientele required survey of industries which are sick. In that endeavour one clear sign of sickness noticed by us is the disconnection of power. Accordingly, one of our accredited consultants Shri. G.

Manaiah, Retd. Dy. Director, Department of Industries and Commerce, collected details form TSSPDCL that revealed 4095 units have been disconnected with power for more than 6 months. This is an obvi- ous sign of sickness in enterprises and quite a good number of them could have potential for revival.

Accordingly, we are making efforts to reach those that have full locational details.

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2.We have also collaborated with ICC whose relationship with NSIC provided details of some of the units that failed to honour the commitments of honouring either the guarantees or pick up of raw ma- terials. Our executives would shortly explore the potential for revival of such enterprises.

3.We have been responding positively to all calls of the entrepreneurs, who walk into our office and with the help of our consultants have been reviving eligible enterprises. Monday to Thursday are exclu- sively dedicated to attend to entrepreneurs who are approaching TIHCL for help. Back office processing and sanctions would be taken up during the other two days during the week. All disbursements will be online to their respective bank accounts after the documentation and acceptance of terms and conditions of approval.

4.Sectoral studies and study of Ti-PASS are being done on the bases of secondary data. These are helping us to firm up appropriate strategies for revival.

PROMOTIONAL ACTIVATES

A.All the DICs and Associations as also Banks have been advised to refer the problem enterprises for resolving the stress through comprehensive diagnostics.

B.TIHCL has taken up aggressive promotional activities in order to penetrate into MSE market. Initia- tives have been taken by contacting all industry associations in Telangana. Correspondence through mails, letters and phone calls is being made with all the Banks.

1. AS PART OF THE PROMOTIONAL PROGRAMME,

a. Held a meeting with IDA Bollaram Infrastructure Development Association, Mallapur Industrial Units Welfare Association, BHEL Ancillary Industrial Estate Welfare Association, Patancheru Indus tries Association and Cherlapally Industries Association, Phase II.

b. Meeting held with CIPET for promotion of TIHCL and to improve understanding on cluster development.

c. TIHCL also participated in MSME Outreach Programme organised by MSME-DI held on 9th January 2019 and a seminar programme on “Greenshoots in Industrial Climate” organised by Telangana In dustrialists Welfare Federation (TIF) at MSME-DI, Balanagar.

In association with DICs promotional campaigns and awareness camps at different districts were held. The camps were conducted in the following districts Khammam Suryapet

Warangal Medchal Karimnagar Ranga Reddy Nizamabad Hyderabad Nalgonda Sangareddy Yadadri Bhuvanagiri

TIHCL Awarness Camp At Warangal

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d. TIHCL has requested Commissioner of Industries to add a paragraph about TIHCL in their website under segment of Revival of Sick Units with a link to TIHCL to respond to the needy.

2. FOLLOW UP HAS BEEN DONE WITH ALL INDUSTRY ASSOCIATIONS IN HYDERABAD. MEETINGS HAVE BEEN HELD WITH THE FOLLOWING ASSOCIATIONS:

• IDA Bollaram Infrastructure Development Association

• Mallapur Industrial Units Welfare Association

• BHEL Ancillary Industrial Estate Welfare Association

• Patancheru Industries Association.

• Cherlapally Industries Association Phase 2

With the list of industries data provided by Mallapur and Bollaram Associations, the process of contacting the entrepreneurs has been initiated. Further meetings are expected with ALEAP and Cherlapalli Associ- ations in March.

OPERATIONAL ACTIVITIES

1.SIRCILLA

In respect of revival of sick units in Sircilla Textile Park, Baddenapalli, Sircilla, as per the scheme approved by GoT, out of the 23 weavers only 18 have paid their share of 10% amounting to Rs.80.9 lacs. As regards Government Share of 30% amounting to Rs.242.70 lacs, we have received the amount on 31st August 2018 that has been remitted to the State Bank account. The Bank has given NOC and released the hypoth- ecated assets of the weavers. TIHCL is preparing the project for refinancing the working capital needs of the restructured partnership accounts. The weavers were asked to provide collateral securities for the new working capital loan to be sanctioned. No bank is willing to provide the required working capital.

DCCB, though willing to consider, has requested for either the park space allotted to the unit is fully trans- ferred to the weavers to accept on eligible primary security or the weavers should provide acceptable collateral securities. We have appraised the units accordingly.

2. CLUSTER DEVELOPMENT

LEATHER INDUSTRY CLUSTER

TIHCL is in discussions with Managing Director, Telangana State Leather Industrial Development corporation for the revival of 2 leather industry clusters at Armoor and Koonur. After environmental clearances are received, appropriate action will be initiated.

BRASSWARE CLUSTER

TIHCL has explored the prospects of reviving brassware cluster located at Chen- dur, Nalgonda districts. Discussions have been held with NIMSME and MSME-DI for appropriate facilitation and funding.

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a) Syscon Solutions Private Limited

Handholding is key in implementations of revival package, to effectively monitor the units assisted or facilitated by TIHCL it has entered an MOU with SYSCON, ERP solution provider whereby every enterprise assisted or facilitated by TIHCL will have to setup ERP in its workplace.

b) ICC at Bio- Asia Convention

The MOU covers the following

TIHCL & ICC will jointly work for identifying and handholding incipient sick and sick MSEs

TIHCL will be joining the ICC in the promotional and awareness conference held once in two months

ICC will work with the PSU vendor based to prevent sickness in and revival of incipient sick MSEs.

C) MSME- DEVELOPMENT INSTITUTE

MSME-DI will provide awareness to the entrepreneurs on the functions and role of TIHCL. To cater to this, both the parties would mutually share the various Awareness Programmes and Capacity building through EDC in the entire state of Telangana.

3. REGISTRATIONS

a) As per statutory mandate registration with Shops and Establishments Act 1988 is completed.

b) The name and the logo of TIHCL has been registered under the Trademark Registry of India

c) As per the statutory mandate, registration with 4 Credit Rating Agencies i.e. (TransUnion CIBIL, Equifax, Experian, CRIF) has been done

d) As per statutory mandate, the registration with CERSAI was completed on 19th January 2019.

MAJOR ACCOMPLISHMENTS IN THE PAST YEAR TO FOSTER REVIVAL PROCESS AND TO PREVENT THE SICKNESS IN MSES. TIHCL HAS SIGNED MEMORANDUM OF UNDERSTANDING WITH

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D) MOU with STATE BANK OF INDIA

MoU covers adherence to timelines for revival MoU covers adherence to timelines for revival and rstrucuring of manufacturing MSEs; appropriate hanholding to ensure the success of revival package; monitoring and follow up of the release of stress of the enterprise. Also provides for creating awareness and setting up a co-working platform for the benefit of manufacturing MSEs.

2.Study on skill requirements of MSEs in the manufacturing space, has been done by Development and Research Services Private Ltd at the behest of Planning Department of Government of Telangana with inputs from TIHCL.

CLIENT INTERFACE

1.CII in association with TIHCL conducted a Workshop on Lending Patterns and Risk Management Prac- tices for MSMEs at NSIC, Kushaiguda, Secunderabad. That was attended by about 20 representatives from different banks.

E) ASSOCIATION OF LADY ENTRE PRENEURS OF INDIA (ALEAP)

• To support and encourage women entre preneurs

• To share resources of both the organizations

• To disseminate knowledge and transfer of technology

• Organize awareness program for the benefit of MSEs

• To refer the stressed manufacturing MSMEs who are the members of ALEAP

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Participants of Digital Accountant Program Awarding Certificate to qualified Digital Accountant 3.TIHCL designed a “Digital Accountants Programme” to empower micro and small manufacturing En- terprises with accounting tools, ERP solutions and GST in a six days programme. Programme has been conducted in collaboration with MSME-DI and CITD. The programme will impart necessary skills to un- employed graduates so that can provide services to micro and small enterprises at nominal cost and earn a living for themselves.

TIHCL, a Non-Banking Financial Company –Non-Systemically Important Non-Deposit taking is basical- ly promoted to revive and rehabilitate stressed Micro and Small manufacturing units with co-financing as its lending model and is moving towards sole financing model. The company is promoted and owned by Government of Telangana as of now.

The Company’s management is planning to identify, measure and monitor all the risks encompass- ing the organisation and report to the Board or its delegated MC. Our risk portfolio would be credit, market risks as prime and operational risk as secondary. Besides Credit, the significant risks of the company, going forward, would be liquidity, interest rate and reputational risk, as per the extant model. With the new directives of RBI as regards applicability of NBFC norms even to Government Companies, the new compliance risk is likely to increase.

As TIHCL is a Fintech company and chosen Microsoft as our Technology Partner, the robust systems which are deployed will mitigate operational risks to a large extent as manual interventions are likely to be minimised. All the MOUs and Loan documents are being vetted by company’s empanelled legal counsel to minimise legal risks.

New products as and when introduced are weighted in the light of comprehensive risks associated with the product and priced suitably. Co-financing is explored first, before our banking upon sole financing products.

RISK MANAGEMENT

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i-HEALTH APPLICATION

On 24th May 2019, TIHCL has launched i- Health (online application) through Sri Jayesh Ranjan, IAS, Principal Secretary (I & C). i- Health is a cloud-based application to facilitate the needs and requirements of the manufacturing MSEs in the State of Telangana. Through TIHCL’s online application i-Health, MSEs can effortlessly reach TIHCL for support. TIHCL offers a portfolio of services and products, which are required for complete turnaround of the unit.

TIHCL being first of its kind innovative in the country, it has partnered with Microsoft to build a platform aimed to facilitate the needs, challenges and efforts of Manufacturing MSEs. Both the organizations have agreed to continue their partnership in setting a benchmark for engaging, rejuvenating and advocating the State of affairs for manufacturing MSEs for other States in the Country.

Launch of i-Health application-Microsoft and TIHCL Team

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Human Resources

Telangana Industrial Health Clinic Limited (TIHCL) is an evolving organization with innovative ideas and strives to Build and Develop a Sustainable Entrepreneurial Ecosystem dealing with challenges of stressed manufacturing MSMEs in the state of Telangana.

Our main moto is to Guide, Mentor and Support the stressed manufacturing MSMEs. This activity needs highly em- pathetic attitude with novel thinking for the HR working in the organization as there is nothing similar in the past to bank upon. We are driven by the values of Righteousness, Efficiency, Skill, Learning and Innovation and Organization- al culture represents our collective values, beliefs and principles of the members of the organization.

TIHCL believes in ‘Knowledge is Power, and Energy is Accelerator.’ Towards this, TIHCL operates with a diverse team of young and energetic workforce who are administered by knowledgeable resources retired as Senior Ex- ecutives from Financial Sector. To maintain the lean structure, well experienced, competent functional special- ists supplement the activity in identifying and resolving complex challenges much faster and easier. Th e company has provided more than equal opportunity to the female workforce in the recruitment policy and always respects and encourages them. We will continue to be a lean organization till we grow more grounded. The senior leaders will continue to play a major role in the development of an agile and a competent organization.

2018-2019 has been a ‘Year of Exploration’ for our organisation. Telangana Industrial Health Clinic Limited is a learning organization, where the employees are empowered through skill development and upgradation in the areas of customer handling and best lending practices. It is a great challenge for a paperless fintech NBFC like us to deal with less educated customers who are already psychologically down with the stress in their unit.

It strives hard to retain potential talent with right attitude and aptitude who would be a value addition to the organization. Our employees have been always on an ongoing mode of learning and are benefitted throughout the process of exploration Thus, TIHCL could develop ‘in house’ a few new products by understanding the diverse needs of sick industries to optimise their potential for revival.

Pivotal on HR front during the Financial Year 2018-2019 are as follows:

Re-designation of the Chief Executive Officer & Vice President Head Ops as Managing Director & CEO and Chief Operating Officer (COO) respectively to aptly suit their responsibilities.

Engagement of 10 new consultants into the team of TIHCL taking the total number to 14.

Arranged a few training sessions for employees overall development in the areas of discipline, knowledge on MSME sector, financial systems, etc. In conformality with the TIHCL objective of enabling and empowering its executives with knowledge and skills on a continuous basis all the executives have been advised to appear for certification course on MSME of IIBF.

Finally, the World Bank Officials have evinced interest and visited TIHCL to understand the uniqueness of the first of its kind organisation in the country and appreciated the efforts in reviving the sick industries.

The upcoming year 2019-20 has been declared as ‘Year of implementation’, in which we would like to revive a good number of sick units make our mark on the canvass of Telangana MSME.

Our HR Policy veers around ‘Enable, Empower and Execute’ with transparency, passion and compassion as the guiding forces.