Post Program Report on

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1 Post Program Report on Seminar conducted by Symbiosis Institute of Management Studies Pune with support from National Foundation for Corporate Governance (NFCG) New Delhi Topic: Best Practices in SMEs and Their Relevance to Corporate Governance Issues Symbiosis Institute of Management Studies (SIMS) Khadki Pune and National Foundation for Corporate Governance (NFCG) New Delhi jointly conducted a seminar on Best Practices in SMEs and Their Relevance to Corporate Governance Issues on 14 th December 2013 at SIMS Auditorium. The seminar was divided into four tracks and speakers Track 1: Recent Trends and Issues of Indian SME Businesses Mr Mr Alok Saraf, Executive Director, Price Waterhouse Cooper, Mumbai. Track 2: Corporate Strategy in SMEs Mr AVR Murty, CEO, ElectroMech Pvt Ltd, Pirangut Track 3: Succession Planning in Family Run Businesses in India Mr Vinayak Bapat, Former CFO, Reliance Industries Ltd, Mumbai. Track: 4: Compliance with Regulations in SMEs Mr P K Rajagopal, Independent Director, Pune Excerpts of the Seminar: Mr Bapat - Corporate governance is a concern in Indian family businesses. And this is one of the biggest problems for many investors who want to invest in India. A third of the Indian family businesses interviewed planned to pass on the ownership but not the management to their next generation. The principal reason for bringing in professional management was the uncertainty regarding the skills and aptitude of the next generation. Mr Saraf - The results of PWC s Family Survey 2012 reveal that family firms are robust, vibrant and successful. Being highly ambitious and entrepreneurial, they are delivering solid profits even in an uncertain economic environment. These businesses are making a substantial contribution to the growth of the Indian economy, and hence expect the Government to offer a more targeted support,

2 e.g. access to capital, expediting approvals, clarity in some tax issues, greater predictability. However, family firms can do more to help themselves, first by adopting professional processes and practices of their publicly listed corporate competitors, and second, by being more proactive in finding and securing the assistance they need. Over 90% of the Indian family businesses are confident of achieving their predicted growth Mr Rajagopal - Certain challenges remain in SMEs are - the survey reveals that 56% of the family businesses in India view the need to continually innovate as a key challenge over the next five years. Family businesses believe that attracting the right talent (40%) and then retaining it (36%) is a challenge that will have to be faced in the medium term. 22% of the respondents felt that training and preparing the high-potential members of the staff to take up high-level decision-making positions and the ability to survive succession is one of the major challenges awaiting them in the near future. One-third of the companies interviewed feel the need to constantly keep up with the fast-paced strides technology is taking in turning the older business models obsolete and therefore, the need to invest time and resources in research and development (R&D). Top three internal issues facing Indian and global family businesses in the next 12 months are staff recruitment, cash flow or cash control, and company reorganization. Top three external issues facing Indian and global family businesses in the next 12 months are market condition, government policy and regulations, and competition. Mr Murty People in SMEs are the most important element without which organizations can t grow. To make organization successful employees have to be taken care not just in terms of salary but their work life balance too. Situational analysis, outlook, resolutions, measures, and control are important in forming the strategies in SMEs. The program was designed and outlined by Brig Rajiv Divekar (Retd), Director, Symbiosis Institute of Management Studies (SIMS). 444 delegates from SMEs located in around Pune and Mumbai attended the program. Photos of the Seminar

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