Post COVID-19 challenges in Micro, Small, Medium Enterprises relevance for Company Secretaries in India A special focus is made on the Andhra Pradesh Industrial Policy 2020-23

1. POST COVID-19
CHALLENGES IN MSME
RELEVANCE FOR CS
Moksha Kalyanram Abhiramula

2. Post covid-19 challenges in MSME relevance for CS
▪ Primary challenges
▪ Policy Advocacy
▪ AP Industrial Policy 2020-23
▪ CS – the compliance torch bearer

3. PRIMARY CHALLENGES

4. Primary challenges
▪ Delivery schedules
▪ Delayed payments
▪ Fixed cost issues
▪ Escalation in raw material cost
▪ Issue of financial/statutory compliances
▪ Credit Supports for MSME

5. Primary challenges ➔➔➔ Policy Advocacy
Challenges
▪ Delivery schedules
▪ Delayed payments
▪ Fixed cost issues
▪ Escalation in raw material cost
▪ Issue of financial/statutory compliances
▪ Credit Supports for MSME
Suggestions
▪ Re-negotiation of Liquidity Damages Clause
▪ Focus on ABC analysis – initiate recoveries
▪ Explore opportunities for leverage
▪ Explore opportunities for JVs
▪ Negotiate concerned departments
▪ Enable liaison and generate options

6. MSME – Overview of INDIA
Source: http://apedb.gov.in/enterprises-sector.html

7. New industrial policy for 2020-23
▪ Interventions across infrastructure
▪ Complete zoning and pre-clearance of industrial land in the state
▪ Setting up of MSME parks with plug and play facilities
▪ Ease of doing business
▪ Deemed approval with a grace period of 3 years for all green category MSMEs
▪ Skill development
▪ 30 skill centres
▪ 2 skilling universities
▪ Business enablement and fiscal incentives

8. New industrial policy for 2020-23
Source: http://apedb.gov.in/enterprises-sector.html

9. New industrial policy for 2020-23
Source: http://apedb.gov.in/enterprises-sector.html
Land banks
GoAP shall reserve lands for MSME in industrial parks in general and specifically for women in
addition to reimbursements and rebate on the land related expenses.

10. Key Interventions of Industrial Policy 2020-23

11. CS – the compliance torch bearer
▪ MSMEs require a proactive guidance towards the statutory compliance at
MCA, CBDT and allied areas – CS steps in as a protector
▪ MSMEs focus majorly on increase of productivity and financial
arrangements – CS steps in as a leverage provider
▪ MSMEs lack in Government scheme evaluation and mapping skills – CS
steps in as Knowledge provider.
▪ MSMEs strive for expansion – CS steps in for JVs formation, handholding and
management