It also reported that sectors already under stress have the highest number of SME corporates with potential issues in servicing even the interest component. The construction sector holds the highest number of SMEs (36.5%), real estate (33.8%), power (30.6%), textiles (28.5%) and chemicals (20.5%).
All these SMEs mostly depend on large companies' payments. "Unless the working capital days of large corporates come down significantly to below 50, the working capital cycle of SMEs is unlikely to improve," the agency said in its report.
It would require the economic activity to reach the level last observed in 2010-11 to 2011-12. This is unlikely to happen in the next 12-18 months, it added.
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