Appreciate the importance of the macro environmental factors like political

and legal environments that can impact the business.

Political environment refers political and government and legal
environment. It has close relationship with the economic system and
economic policy. There are number of laws that regulate the conduct of
the business. These laws cover matter such as standards of business
and its production and service. Government policies like fiscal,
monetary, industrial, labour, and export and import policies which are
influenced to specific legal enactments and framework towards the
business organization political legal function and degree of the
effectiveness which are influenced to formulate and implement policy
in the legislature.
Distribution platform: It also allows it to lend across the country and
enables it to mitigate its exposure to local economic factors and
disruptions resulting from political circumstances or natural
disasters. Furthermore, its well-developed distribution network in
rural India gives it the capability to offer a variety of financial
products nationally in areas that your Company believes most
companies do not currently reach.

Situation: The sector owes a lot to the macro level political and
financial sector leadership, which has resulted in greater clarity as
to the emerging regulatory landscape for this sector. Introduction of
the Micro Finance Institutions (Development and Regulation) Bill,
2012 in Parliament, which will make Reserve Bank of India the
regulator for the sector. The Law on approval by Parliament and its
enactment will govern microfinance institutions. Changes at the
macro level have seen a re-rating of the MFI sector, flow of private
equity capital and credit to MFI institutions including company.

CONCLUSION
Mainly they work for with mission to eradicate poverty by providing financial
services to the poor. It only listed in micro lenders. The organization provides small
value, collateral-free loans for income generation to poor women in groups. There
has been drastic situation faced by the company, many problem came across and
incur losses for seven consecutive years. Some things went down to hill because
problem occurred with Andhra Pradesh state. All loans which have been taken by
small borrowers and others has went off. There was difficult situation for SKS micro
finance to compete with other industry. After posting profits in the third quarter of
FY13 after seven straight quarters of losses, countries lone listed micro-lender SKS
Microfinance hopes to continue the momentum and is expecting a profit of around
Rs 60 crore in the next fiscal. Looking towards, the SKS many microfinance
companies in India postponed their programmed of going public. With posting profit
in another quarter, other companies may find themselves in promising environment.
The Micro Finance Institutions (Development and Regulation) Bill, 2012 is pending
with a committee. This bill is expected to provide strong basis for development of
microfinance sector. After few years later, Grameen Capital India, a socialinvestment bank, says $144m of equity has been injected into microfinance groups
in the past 12 months, more than double the amount in the preceding year. The
International Finance Corporation, a multilateral lender, invested $18m in Equities, a
mid-sized group in the southern state of Tamil Nadu. They follow the various
preventive/ control measures included in the loan process to mitigate the risk of
loans to non-existent borrowers/ fictitious borrowers such as all the loans disbursed
pass through a checker control system, wherein loans processed by a sangam
manager are first approved by a branch manager or an assistant branch manager
and in order to prevent collusion with the locals, sangam managers are deployed
away from their home towns. SKS Microfinance has significant growth potential. We
expect it to expand its operations within new geographies and product lines. SKS
currently has insurance products and is piloting a mobile phone program, working
capital financing for retail shops, and home loans for the construction or
improvement. Finally, their positive trends seeks the company to highly potential

growth by Clear Market Leader with Scalable Model and for-profit organization,
Untapped Market Potential (clear gap between current loans and demand),
Investment concerns, Providing facilities to small borrowers, farmers and other
people, Ability to decrease operating expenses.