FINANCIAL PERFORMANCE AND CREDITWORTHINESS ANALYSIS OF MSMEs USING CRISIL ANALYSIS AND CREDIT MONITORING ASSESSMENT

The assessment of the financial performance and creditworthiness of Micro, Small, and Medium-Sized Enterprises (MSMEs) is essential for sustainable growth and effective loan distribution. This study examines the use of CRISIL analysis and credit monitoring systems to evaluate the financial health of MSMEs. The study looks at key financial parameters including profitability, liquidity, solvency, and operational performance in addition to qualitative aspects like management calibre and industry prospects. Financial data from a group of MSMEs was assessed using ratio analysis, trend analysis, and correlation techniques. The findings show that MSMEs have better credit ratings and a lower default risk when they have consistent cash flows, efficient working capital management, and transparent financial reporting. The report also highlights the need of credit monitoring in improving loan availability and financial stability.