This document discusses improving cash flows as a priority for Indian businesses during the COVID-19 pandemic. It provides tips for maintaining cash flows such as preparing realistic 13-week cash flow forecasts, maintaining relationships with vendors and employees, and managing government dues. The document also notes that the global economic recession caused by the pandemic may continue for 1-3 years and cause disruptions to supply chains and customer demand. Overall it advises Indian companies to take a multi-pronged approach focused on cash flows and basics to survive the current uncertain economic conditions.

1. IMPROVING
CASH FLOWS
Priority for India Inc. during
COVID - 19
R N MARWAH & CO. LLP | www.rnm.in
18 April 2020

2. R N Marwah & Co. LLP, Chartered Accountants, was
established by the late Mr R N Marwah in the year
1946. Commencing from the pre-independence era to
the modern age of science and technology, RNM has
loyally stood as a witness to the sequence of events
that have gradually moulded the nation and led to the
rise of a new India, over the past 70 years. RNM has
stood the test of time by being a pillar of strength for
each of its esteemed clients and growing from
strength to strength.
Our Head Office is located in the heart of the capital
city at Janpath, New Delhi (India) and being in close
proximity to the Registrar of Companies, Reserve Bank
of India and Department of Tax Revenue, we are able
to provide prompt and efficient service to our clients.
We have branch offices in Gurgaon & Bangalore and
soon we are going to launch our office in UK.
Our Services
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Tax & Regulatory
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Consultancy
R N Marwah & Co. LLP
Thinking of bottom line
Think of us
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3. Impacts of COVID -19
Recession in global economic is likely continue for at least 1-3 years.
Disruption of supply chain and customer demand.
Challenges in collecting receivables in a timely fashion.
Landmark attitudinal shift can be expected in post Covid world.
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4. Prepare a realistic
13-week Cashflow Forecast
Effective way to conserve cash flow
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5. Question 1
When do you expect the Global Economy to recover?
a ) 6 m o n t h s
c ) 2 - 3 y e a r s
b ) 1 - 2 y e a r s
d ) 5 y e a r s

6. VARIOUS FACETS TO THE STORY OF IMPROVING
CASH FLOWS
Maintaining vendor
relationships
Striking a Balance with
Employees
Managing Government
Dues
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7. Force Majeure (FM) clause in the contract.
The situation of Corona Virus is considered
as an 'FM' event in India or not.
Make efforts to execute the contract
despite the FM event.
Check for insurance claim.
Maintaining Vendor
Relationships
On February 19, 2020, the Govt. of India, through the Department of
Expenditure, Procurement Policy Division issued an Office Memorandum
clarifying that the disruption of the supply chains due to the spread of
the Corona Virus in China or any other country will be considered as a
case of natural calamity and the 'FM' clause could be cited.
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8. Question 2
Impact of COVID19 on the future of jobs? What's
most likely to happen
a) F a l l i n r e c r u i t m e n t
c) R e m o t e w o r k i n g w i l l
b e c o m e t h e n e w n o r m
b) S a l a r i e s w i l l b e c o m e u n f i x e d
d) N e w j o b s o f d i f f e r e n t k i n d s
w i l l b e c r e a t e d

9. Striking a Balance
with Employees
Monthly payroll expense forms a substantial
portion of the outgo of the cashflow.
Human resource, the most valuable resource.
Voluntary pay cuts or voluntary pay deferrals
On March 29, 2020, the Central Government issued an Order
invoking the powers under Section 10(2) (i) of the National
Disaster Management Act, 2005, directing employers to pay full
wages to their workers by treating them on duty during the period
of lockdown.
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10. Question 3
What will be most affected because of Covid-19?
a ) T o u r i s m
c ) I m p o r t a n d E x p o r t
b ) A g r i S e c t o r
d ) M a n u f a c t u r i n g S e c t o r

11. Extension of due dates for monthly GST
payments and GST refunds
Reduction in interest rates from 18% to 9%
now granted for making delayed TDS
payments dues between March 20, 2020,
and June 29, 2020.
No late fee/ penalty for delay in filing during
this period.
Managing
Government Dues
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12. Circular no.
135/05/2020
-GST
provides clarification
on the following refund
related issues which
may assist you in
improving cashflows:
Bunching of refund claims across Financial
Years is now permitted.
Refund of accumulated Input Tax Credit (ITC)
on account of reduction in GST rate now
allowed.
Change in the manner of refund of tax paid on
supplies other than zero-rated supplies.
Guidelines on refund of input tax credit under
section 54(3).
The Requirement to mention HSN/SAC in
Annexure 'B'.
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13. Question 4
How the Private sector can proactively address the
COVID-19 pandemic?
a) P r a c t i s i n g W o r k f r o m
h o m e
c) P r o v i d e f u n d i n g a n d
m e n t o r s h i p t o s m a l l b i z
b) U t i l i z a t i o n o f C S R f u n d s f o r
C o v i d - 1 9 r e l i e f
d) U t i l i z i n g m a u f a c t u r i n g u n i t /
a v a i l a b l e r e s o u r c e s f o r C o v i d r e l i e f

14. 5 Bold objectives that Companies
need to set
How do we re-start and stabilize with 0 risk of Covid-19?
Can we operate at 50% of the fixed costs?
Can we innovate through new selling strategies?
Can we leapfrog into digital adoption and deployment using
this pandemic as an opportunity?
Can we explore emerging opportunities such as new
products, diversification etc. during this lockdown?
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15. Conclusion
Conserving cashflow would require India Inc. to use a multi-pronged
approach by going back-to-the-basics. Top-line driven valuation models of
business start-ups are likely to face even harder challenges as the Venture
Capital industry is currently at a freeze, not looking at new investments in
the short term. Traditional cashflow driven businesses are likely to survive in
these uncertain times, so improve your cashflows today.
CA Raghu Marwah
M a n a g i n g P a r t n e r - R N M a r w a h & C o . L L P | w w w . r n m . i n