Every year, when the mighty Ravana burns on Dussehra night, we are reminded that no matter how strong negativity looks, truth and discipline always win. As a child this day was full of fun and love. I still remember going to Melas with parents, sibling and friends and eating street food, watching Ramayana play, purchasing so many toys and finally the day ended with Ram Burning Ravana. Now this is the day even today children cheer, fireworks light the sky, and the story of Ram defeating Ravana gets retold in countless homes. But if we pause for a moment, we’ll realize something powerful: every entrepreneur fights their own Ravana. For MSMEs, those demons don’t carry bows and arrows, they live in financial mistakes, poor discipline, and habits that quietly eat away at growth. Just as Ravana had 10 heads, MSMEs face 10 financial demons that must be conquered for true prosperity and credit readiness. Let me walk you through each “head of Ravana” and see how you, as an MSME owner, can defeat it.
1. Poor Record Keeping – The Demon of Confusion
Ravana’s first head is chaos. For MSMEs, that chaos appears in books of accounts that are incomplete, scattered, or missing. I’ve seen entrepreneurs walk into banks with a plastic folder of random bills and expect quick loans. But you must always remember bankers fund clarity, not confusion.
How to Defeat It:
Yes as Ram defeated Ravana you too can defeat it-
- Use accounting software like Zoho Books, ProfitBooks, or Tally.
- Reconcile accounts monthly, not just at year-end.
- Keep digital backups of invoices and receipts.
Remember: messy books = messy growth.
2. Delayed GST & Tax Filing – The Demon of Indiscipline
The second head is indiscipline. When MSMEs delay GST or ITR filings, it signals carelessness. Banks notice it easily. And trust begins to weaken. You can think of it like fasting on Dussehra, it only works if you do it on time. Filing late breaks the entire discipline and weaken your trusts with your bankers.
How to Defeat It:
You can defeat this head by:
- Creating a compliance calendar.
- Automate GST reminders. and all the statutory payments
- File even if turnover is low because consistency is always valued.
Timeliness is more than ritual — it is reputation.
3. Cheque Returns – The Demon of Broken Promises
A bounced cheque is not just a financial slip it’s a broken promise. In MSME credit evaluation, cheque return history is one of the first red flags. Imagine how it looks: “This business commits without funds.” Would you trust such a partner? No right, same goes with the banker.
How to Defeat It:
To defeat this head you can-
- Keep a minimum balance buffer.
- Use digital auto-pay where possible.
- Never issue a cheque unless 100% sure.
One cheque return today can cost you a crore tomorrow.
4. Overdependence on Cash – The Demon of Shadows
Cash makes sense in small bazaars or roadside vendors. But when MSMEs keep most transactions in cash, it raises eyebrows. Banks wonder: What are you hiding? Because now UPI has already made less cash transactions for even roadside vendors even auto rickshaw or rickshaw are no more behind in this race. And it questions you because you are an MSME. In today’s world, transparency is light. Cash is shadow.
How to Defeat It:
You can simpley-
- Shift more than 80% of your payments to banking channels.
- Encourage digital receipts for sales.
- Keep petty cash, but record it properly.
When your business shines in the open, banks stand beside you.
5. Weak CIBIL Score – The Demon of Past Mistakes
Ravana’s fifth head is your past catching up. A low CIBIL score follows you everywhere. Even if your business is doing well today, banks ask: Will you repeat old mistakes? I’ve seen MSMEs lose big contracts because their credit score didn’t allow timely loans.
How to Defeat It:
- Pay EMIs and credit cards on time.
- Avoid settlements as they damage history.
- Keep utilization < 40% of credit limits.
A good CIBIL score is your financial reputation — nurture it like your personal brand.
6. Continuous Losses – The Demon of Weak Viability
Businesses go through cycles. One bad year is forgivable. But continuous losses ring alarm bells. It’s like Ravana’s booming laugh more it booms it looks powerful, but it hides weakness inside.
How to Defeat It:
To defeat this head-
- Track unit economics (are you selling at profit or loss?).
- Cut dead costs early.
- Explore side revenues: rentals, exports, collaborations.
Viability is not luxury — it is survival.
7. High Related-Party Transactions – The Demon of Distrust
Too many dealings with “friend/family companies” erodes trust. It looks like money is being rotated to hide the real picture. Banks ask: Is this a genuine business or just adjustment entries?
How to Defeat It:
To defeat this head-
- Keep related-party transactions limited and at market value.
- Disclose transparently in financials.
- Use board resolutions where needed.
Trust is not built by hiding — it’s built by showing clearly.
8. Over-Leverage – The Demon of Greed
Borrowing beyond capacity is like Ravana’s arrogance. More is not always better. Some MSMEs keep taking loans until debt becomes a noose for them.
How to Defeat It:
You can defear this head by-
- Track Debt-Equity ratio (safe < 2:1).
- Use loans for productive assets, not expenses.
- Explore equity, subsidies, or partnerships instead of only loans.
Debt should be your bow, not your burden.
9. No Financial Planning – The Demon of Blindness
Running a business without financial planning is like going to war without arrows. Too many MSMEs wake up only when crisis strikes. By then, cash is already burnt.
How to Defeat It:
- Make a simple monthly cash flow sheet.
- Forecast next 3 months’ inflows/outflows.
- Keep an emergency reserve.
Planning is not paperwork — it is protection.
10. Ignoring Compliance – The Demon of Negligence
The final head is negligence. Ignoring labor laws, PF/ESI, or factory licenses can lead to penalties and blacklisting. Compliance may look boring, but it is your shield in the battlefield of business.
How to Defeat It:
- Keep a compliance checklist.
- Assign one person in your team to track updates.
- Review quarterly with your CA.
When you respect rules, the system respects you back.
The MSME’s Dussehra
Lord Ram did not win by strength alone. He built alliances, strategized, and used discipline. Similarly, MSMEs need:
- Knowledge (know your red flags)
- Systems (accounting, compliance, credit checks)
- Allies (bankers, mentors, advisors)
When you combine these, the Ravanas of finance will fall one by one.
My Final Thought
Dussehra is not just about burning an effigy. It’s about burning away weaknesses within us. For MSMEs, the demons are poor discipline, weak records, and financial blind spots.
This Dussehra, let’s light diyas of discipline, courage, and clarity in our businesses. Wishing you all a very happy Dusshera.
Victory in finance is victory in business.
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