Overview & Impact of relief measures for SME Business continuity to combact COVID 19

1. Overview & Impact of relief measures
for SME business continuity
Speaker
Makarand Lele
Founder Partner

2. 2
Is the current picture is real Pandemic View?
• Pandemic affected numbers are in proportion to tests conducted – Korean strategy
not implemented
• Failure of implementation of Social Distancing & Voluntary Home Quarantine
• Non availability of adequate testing & rapid testing facilities
• Focus of Government is more on availability of food grains & control Pandemic – not
on identified infected population
• Overall failure of disaster management awareness among citizens & actual disaster
management by government machinery.

3. 3
Scenario in lockdown phase for business & owners
• Struggle to cope up with office routine for service companies.
• Office setups for WFH.
• Total stoppage for manufacturing, retail, aviation, hospitality segments.
• Overall struggle with communication facilities, banking, internet, access to data.
• Difficulties in recovering genuine dues.
• Difficulties to make government payment & other dues.
• Difficulties in accessing bank funds & making payments to the employees & others-
banks are not able to cope up with unprecedented pressures.

4. 4
Facilitation from government to business
• RBI directives to Banks - Ease of repayment of loans – Burden is postponed – However nothing comes free!
• Deferment of recovery of interest & loan installments & no NPA categorization
• Ease of corporate compliances
• filing of GST return due dates extended
• for Companies, LLPs new schemes announced to do delayed compliances without any additional fees or
penalty.
• Insolvency trigger point increased to dues of Rs 1 Cr
• Relaxation of condition to have resident director for Indian Companies
•
• Relaxation in number of board meetings for corporates in a particular period
• Relaxation in various compliance regulations by SEBI for listed entities
• Reduction in penal interest for delay in deposit of TDS/ TCS etc
• Time period of 15 months is granted for realisation of export proceeds without approval
• Extension of time granted for deposit of employee related dues to government.
• Majority of business licenses expiry period is extended

5. 5
Facilitation from government to citizens
• Ease of process compliances – due date of submission of form 15H to banks for non-
deduction of TDS is relaxed till June 2020
• Ease of payment of rent to landlord
• Due date for tax related investments extended to June 2020
• Timeline for filing of delayed income tax return for FY 18-19 is extended
• Driving license & permits expiry period is extended
• Restrictions on ATM usage removed
• No charges for Carona testing at private hospitals – Supreme Court Decision
• Easy availability of food grain through government ration shops
• Availability of concessional meals

6. 6
Odds from business perspective
• Retrenchment of temporary workers is banned
• Deduction in wages is banned
• Demanding rent from tenant is banned
• Stock market is whipping
• Government treasury in danger – no collection in march
• No strong measures for business sustainability during lock down
• No monetary benefits only deferment

7. 7
Who is gaining & will continue to gain?
• IT & ITES – service providers
• Food Delivery (not brick & mortal model)
• Web solutions – for meetings & socializing
• Medicines (R&D, distribution & supply chain)
• Hospitals
• Grossers & Vegetable suppliers to limited extent (middlemen?)
• Insurance sector – with force majeure cover
• Supply chain management & warehousing solutions providers

8. 8
What is missing?
• Current relaxations needs to be strengthened; more focused relaxations expected.
• Full fledge, whole hearted procedural relaxations from various compliances
• Relaxation of requirements like payment of stamp duty or use of stamp paper etc
• Relaxation for loan documentation & process compliances for easy loan schemes
• Extension of CSR spending period (for FY 2019-20) till June 2020
• Adequate support by banks to initiate online transactions
• Lifting of restrictions on doing cash transactions
• Lifting of monetary restriction in doing online transactions (can’t send/ pay more than Rs 20K in
one transaction in BHIM UPI App. Per day limit is 40K?)
• Availability of strong print media
• Control over wastage of huge vegetable & fruit produce– why not to give it free to needy.
• Substantial reduction in electricity, fuel and other essential prices
• Exemption from state/ local taxes like professional tax?

9. 9
Post COVID – Upcoming challenges – Fresh Start
• Re-capturing the market position
• Re-joining of workforce
• Re-gaining fund strength – long term needs & working capital
• Re - sourcing
• Re-covering dues
• Re-building strengths
• Re-gaining confidence of stakeholders
• Re-defining Business strategy – yesterday is not tomorrow!
• Matching with delivery expectations of OEM/ Customers
• Facing litigations by & against – arising out of recovery, contractual obligations, employee dues
• Managing regulatory compliances & statutory payments
• Regaining the business valuations
• Managing cost over runs for delayed projects

10. 10
Strategy - Post COVID
• Acknowledge Human Strength – as against AI
• Re-discover inner strength & potential
• Re-align daily schedule & drills -do time benefit analysis
• Re-think on travel plans & gathering essentials (web meetings)
• Re-design HR strategies
• Re-design market strategies
• Re-design investment patterns & sectors
• Re-design inventory strategy
• Re-design product mixture, offerings to market, new business avenues
• Re-look insurance covers
• Re-look contracts & agreements terms
• Re-emphasising on leading business segments – IT, Hospitality, Aviation, Transport, retail
• Strengthen IT infrastructure for enabling WFH
• Secure & protect data & IP
• Acquire skills for remote team management and KRA
• Enhance use of software, automated products, processes for routine admin functions

11. 11
Look up at sky at night and
enjoy stargazing
The Sky will be Blue again

12. 12
Any Questions?
Makarand Lele
+919822394381
makarand.lele@bizfirstpro.com