The global crisis has forced a lot of businesses to reassess their strategies and include ‘out of the box’ reforms and solution to not just sustain but grow their business. Find valuable insights in this presentation.

1. सू#म, लघु और म,यम उ/योग एवं फाइन9स
- CA R L KABRA
May 30, 2020

2. हर सम&या एक उपहार है; सम&याओं के 1बना हम नह4ं बढ़6गे

3. The global crisis has forced a lot of businesses to reassess their strategies and
include ‘out of the box’ reforms and solution to not just sustain but grow their business

4. को#वद के बाद आपके ,यान देने यो/य मह2वपूण5 6बंदु
1) 9यवसाय को मज़बूत एवं ती?ता से नई ऊँ चाई पर ले जाना
2) इंटरनल एवं बाहरI चैलKज
3) कॅ श Nलो OलिQवRडटI / कॅ श हI Tकं ग
4) Vटाफ, कम5चाYरयZ, [ाहकZ एवं उ2पाद क] पॉOलसी
5) वेतन व Tकराये मK कटौती एवं ख़चa मK Tकफायत
6) आ2मbनभ5र भारत के तहत नया 6बज़नस मॉडल
7) ऑTफ़स काय5fणालI, Oशgा, VवाVhय सभी का गेम चKजर
8) [ाहकZ को हटकर आक#ष5त करना
9) #वकOसत देशZ से को#वड के बाद भारत मK bनवेश का लाभ उठाना
10) सरकार के पैके ज का फ़ायदा उठाना
11) आयात bनया5त पर असर

5. 5
Definition of Enterprise
as per MSME Act,2006
Definition of Udyog
Aadhar
Revised Definition of
Enterprise
as per MSME Act,2006
Important Definitions
Definition of MSME will be revised by raising
the Investment limit. An additional criterion
of turnover also being introduced. The
distinction between manufacturing and
service sector will also be eliminated.
(i) Micro - Investment limit upto Rs. 1
crores and turnover up to Rs. 5 crores
(ii) Small - Investment limit upto Rs. 10
Crores and turnover up to Rs. 50 crores
(iii) (iii) Medium - Investment limit upto Rs.
20 Crores and Turnover up to Rs. 100
Crores
Udyog Aadhaar is a twelve digit Unique
Identification Number provided by the
Ministry of Micro, Small and Medium
Enterprises, Government of India for
small and medium enterprises in India. It
is also known as Aadhaar for Business.
with the purpose to promote micro, small
and medium enterprises.
Establishment, by whatever name called,
engaged in the manufacture or production of
goods, in any manner, pertaining to any
industry specified in the First Schedule to the
Industries (Development and Regulation
Act),1951 (55 of 1951) or engaged in
providing or rendering of any service or
services.

6. q Protection against the delay in payment from Buyers i.e. maximum period for payment for purchase from MSME
shall not exceed 45 days, in case of delay, the buyer is liable to pay interest to the supplier, at 3 times of bank rate
q Excise exemption
q The exemption under the direct tax laws
q 50% reduction in fee for filing patents and trademarks
q Credit guarantee scheme
q Protection from delayed payments
q Loans without guarantee, low-interest rates on loan
q Financial support for participating in foreign business exposure from the Government of India.
q Subsidies provided to increase the company's revenue
q Concession in electricity bills
q The exemption provided when applying for government tenders
q Octroi benefits
Benefits of Udyog Aadhar

7. The SME (Small and Medium Scale Enterprises)
owner needs to fill a onepage form that he can do
either online or offline. For online registration, the
applicant should visit the official website:
https://udyogaadhaar.gov.in/UA/UAM_Registration.a
spx
If someone wishes to register
for more than one industry
then they should opt for
individual registration
In this form, the MSME has to
self-certify its existence, details
of the business activity, bank
account, ownership and
employment details and other
information.
No registration fees are
required to be paid for this
process
After filling the details, the registration number
would be generated and the same would be
mailed to the email address given and it will be
called UAN (Udyog Aadhaar Number)
Registration Process of Udyog Aadhar

8. 01
02
04
03
For government procurement, tender
Upto Rs. 200 crores global tenders,
will be disallowed.
E-market linkage for MSMEs
will be promoted to act as a
replacement for trade fairs
and exhibitions.
Emergency Credit Line to
Businesses / MSMEs from
Banks and NBFCs upto 20%
of entire outstanding credit
as on 29.02.2020
Any receivables
from Government of
India or will be received
in 45 days i.e. MSME
receivables from
Government and CPSEs
will be released in 45
days
Other Key Highlights

9. Documents Required
1
2
3
5
6
7
4
Personal Aadhaar number &
Name of owner
Category of applicant
Name of business & Type of
organization
Key activity & Amount of
Investment in Plant
Machinery and Equipment
National Industrial
Classification (NIC) code
Number of persons employed
& Date of commencement of
Business
Bank details

10. Role of MSME in Indian Economy
Contribution of MSME’s in Country’s GVA and GDP

11. Distribution of MSME’s activity wise in India

12. Share of Rural and Urban MSME’s in the Country

15. को#वद के आ(थ*क पैके ज के लाभ कै से उठाए
1) आ6म 8नभ*र भारत अ=भयान के पाँच #पलरस
- इकॉनोमी
- इDEाFGHचर
- टेHनोलॉजी
- डेमोKाLफक
- Nडमांड
2) आ(थ*क पैके ज के चार Fतंभ
- लPड
- लेबर
- =लिHवNडटS
- ला
3) देसी Tांड को वैिUवक बनाने पर फ़ोकस
4) इज आफ डूइंग Yबज़नेस के क़दम
5) कप लायंस एवं रेगुलेशन को आसान बनाने पर फ़ोकस
6) छोटे उ`योगa कb पcरभाषा मe बदलाव

16. सू#म, लघु और म,यम उ/यम0 को द4 गई 7रयायत:
* सू#म, लघु और म,यम उ/यम0 को 3 लाख करोड़ >पये का बंधक मुDत ऋण।
* सू#म, लघु और म,यम उ/यम0 को 20,000 करोड़ >पये के अधीनNथ ऋण।
* फं ड ऑफ फं Sस के मा,यम से सू#म, लघु और म,यम उ/यम0 के Tलए 50,000 करोड़ >पये का Wवतरण Yकया जाएगा।
* 200 करोड़ >पये तक क[ वैि^वक _नWवदाएं मा`यता aाbत नह4ं हd।
* तीन मह4ने के Tलए 2500 करोड़ >पये तक के eयवसाय0 और fTमक0 को भWवhय _नiध का aावधान
* eयापार और fTमक0 के Tलए भWवhय _नiध का योगदान 6 मह4ने के Tलए कम
* आंTशक ऋण गारंट4 योजना 2.0 के तहत गैर-बdYकं ग कं प_नय0 के Tलए 45,000 करोड़ >पये क[ सुWवधा।
• आयकर 50,000 ट4डीएस / ट4सीएस ’से घटाए गए 50,000 करोड़ >।
आइए, asयेक 7रयायत पर चचाu करते हd…

18. Incentives for MSME’s
1. Requirement for audit
2. Reduction of corporate tax rate
3. Removal of Dividend Distribution Tax
4. Trade Receivable Discounting/NBFC
5. Working capital credit/subordinate quasi
equity
6. Ease of doing business
7. Equity and technical assistance
8. Intellectual Property Right (IPR)
9. Government e-Marketplace (GeM)/ for
procurement of goods & services
10. E-logistics market
11. Goods and Services Tax
12. Restraint on import of items being
produced by domestic MSMEs

19. • Being small and not being able to take the benefit from the govt. package
• Receivables being stuck with clients as well as from government
• Lack of cash and hence difficult to survive post Covid
• Repayment of bank debts post moratorium period
• Burden of Fixed cost with drying up of new orders
• Inability to get more funds
Problems faced by MSME’s in Covid Situation

20. Problems faced by other sectors
Automobile
Pharma
Chemicals
Electronics
Solar
Power
IT
Shipping
Tourism &
Aviation
Textile
Covid
Impact
Auto-Prohibited imports, High inventory with low sales
Pharma-Disruption in import of Drugs, Low production and
supply due to shutdown of Chinese market
Chemical-Similarly depended on china for raw materials
hence increase in price of raw materials
Electronics-Low purchasing power, low sale, low raw material
imports
Solar Power-80% modules and cells were imported from
china which is now delayed
IT-Mainly dependent on manpower hence stagnant due to
restriction in movement and lockdown
Shipping-Sharp drop in dry bulk cargo movement, no overall
shipping to other countries
Tourism & Aviation-Complete halt on operations, Badly
effected business
Textiles-Low cotton yarn exports, sector being dependent on
credit payments defaults have increased, worst scenario for
cotton farmers
Finance & Banking: Movement of funds around the world has
drastically reduced, less of investments, low interests on
savings etc. Banks majorly dependent on manpower has cut
down many of its operations due to restricted movement
Finance &
Banking

21. • 59 minute loan portal, 2% interest subvention for all GST registered MSME’s
• TReDS (Trade Receivables e-Discounting System) i.e. credit from banks against upcoming trade receivables.
• E-commerce platforms like Amazon & Alibaba to sell MSME’s products
• PSU compulsory procurement of 25% from MSME’s
• 20 hubs and 100 spokes to facilitate easy access to technology
• Financial assistance by way of 3-5% rebate in interest for pre & post shipment loan
• Zero Defect Zero Effect (ZED) certification
• Subsidy towards certification licenses for products through national as well as international bodies
• Minor violations under companies Act to be resolved by entrepreneur through certain simple procedures, no
need to approach courts
Steps MSME’S Can Take Under This ABHIYAAN

22. How can I get a loan in 59 minute ?
Register
on the
site
Answer
4
question
Provide
GST
Details
Provide
Tax info
Provide
bank A/c
Details
Provide
details of
directors
Provide
Loan info
Select
Bank
Pay fee
Download
approval
letter

24. Suggestion For Startup’s
Present and Future consumer demands would be as below:

25. Startup’s
• Covid convertibles and ‘Insider+’ rounds will dominate in 2020. Frequently, priced rounds with multiple
new leads will be replaced with convertibles structures
• Should adopt digitization and follow who were once upon start-ups, e.g. Amazon, Apple, Flipkart,
Facebook, to name a few
• Innovation for a cause: social, technical, commercial. For instance, floral waste from temples/Holy
Ganges is used for making incense sticks (HelpUsGreen), Oyo, Swiggy, Byjus, etc.
• ESOP Taxation
• Tax holiday/ Turnover upto Rs 100 cr/ 3 years exempt out of 10 yeras

26. Measures Taken by Other Countries
Let us understand what other economies in the world did to tackle the pandemic
c
Fiscal Stimulus as a % of GDP as of May-20World’s Leading Economy in terms of GDP

27. Measures Taken to Improve the Financial Liquidity
- By Other Countries
q USA
- Smaller Loans with reduced or no interest
- Delayed Payments & low collateral requirement
- Working capital loan at 3.75% & repayment up to 30 years
q CHINA
- Initial 6 months repayment holiday
- 50% Guarantee by the Government
(for unsecured working capital loans by SME’s)
q GERMANY
- Liquidity protection loans with guarantee
q UNITED KINGDOM
- NIL interest for first year and 80% guarantee by Govt
(for loans up to £25 million)
- NIL interest, NIL cost of fees, No repayment
for first year and 100% guarantee by Govt. for smaller loans
WORLD
ECONOMY
Deferment
of
Loans
Movement
of
Interest
Rates
Access
To
New Capital
PELTRO
Term
Funding
Scheme
Increased
LTV
Limit on
mortgages

28. को#वड के कु छ और मह.वपूण2 आ4थ2क पैके ज
1) सरकार छोटे उ<योग? को बकाया सभी भुगतान 45 Gदन मI करेगी
2) 15,000 तक कM पगार वाले कम2चाPरय? का Qो#वडIट फं ड एवं कं पनी के कं UVबुसन को माच2 2020 अगYत 2020 तक सरकार देगी
3) ई कॉमस2 एवं फन टेक टे]नोलॉजी के ^लए Qो.साGहत क़दम
4) सरकारV काय2 मI कॉ`Uै]टर को छह महVने कM ओर अव4ध
5) को#वद पीPरयड को रेरा मI फ़ोस2 मेजर मानना
6) छोटे उ<योग? को Gदवा^लयापन क़ानून मI PरलVफ़
7) dडYकॉम को 90 हज़ार करोड़ कM ^लि]वdडटV देना

29. Measures Taken by the Indian Government
ECONOMICAL
•3 month moratorium
•Deferment on 3 months of
interest payment
•No downgrade in asset
classification
•Reduction in repo rate by
75 basis points
•CRR reduced by 100 basis
points
MSME’s
•Rs 3 lakh crores Collateral free
Automatic Loans with 100%
credit guarantee cover
•Rs 20,000 crores subordinate
debt to stressed SME’s
•Rs 50,000 crores of equity
infusion
•MSME’s redefined
•Global tenders disallowed
•MSME receivables from Gov
and CPSEs to be released
•EPF support for business and
workers
•Liquidity schemes
• PFC/REC to infuse liquidity to
DISCOMs against receivables
•fresh initiation of insolvency
proceedings under IBC
• Decriminalization of Companies
Act violations involving minor
technical and procedural
defaults
•All sectors are now open to the
private sector while public
sector enterprises (PSEs)
•Introduction of Commercial
Mining in Coal Sector and
enhancing Private Investments
in the Mineral Sector
•Make in India in Defense
production
•Private participation in Space
activities
TAX
•Issuance of pending
income tax refunds
•TDS & TCS rates to be
reduced by 25%
•Defer payment of tax and
GST filing till June’20
•all income-tax return for FY
2019-20 will be extended
from 31st July,2020 & 31st
October, 2020 to 30th
November, 2020 and Tax
audit from 30th September,
2020 to 31st October,2020.
WORKFORCE
•Wage for MNREGA
workers increased
•Front-loaded Rs 2,000
paid to farmers
•Insurance cover of Rs 50
Lakh per health worker
•one-time ex-gratia to 30
million senior citizens,
widows, disabled
•Jan Dhan account
holders(women) get Rs
500 per month
•2% Interest Subvention
for Shishu MUDRA
loaners
•Credit facility for Street
Vendors
•increase in allocation
for MGNREGS to
provide employment
boost
AGRICULTURAL
•Emergency Working
Capital farmers through
NABARD
•concessional credit
boost to 2.5 crore
farmers under Kisan
Credit Scheme.
•Agri Infrastructure Fund
for farm-gate
infrastructure for
farmers
•Scheme for
Formalization of Micro
Food Enterprises (MFE)
•interest subvention
@2% per annum to
dairy cooperatives
•Private investment in
Dairy Processing

30. को#वद के दौरान टै.स सु#वधाएँ
1) TDS क4 दर दस 56तशत से घटाकर माच< 2020 तक के =लए साढ़े सात पसAट क4 गई
2) इनकम टै.स #वभाग कं प6नयH के अलावा बाक़4 सब करदाताओं के Mरफं ड जQदR हR देगा
3) इनकम टै.स #वभाग ने सभी कं प6नयH को 5 लाख से नीचे के Mरफं ड अदायगी क4
4) Mरटन< फ़ाइ=लंग क4 तारRख़ अब 30 नवंबर 2020 तथा टै.स ऑ^डट क4 तारRख़ 31 अ.टूबर 2020 तक बढ़ायी गई
5) असेसमaट टाइम बार के =लए तीन और छह महRने क4 सीमा बढ़ायी
6) #ववाद से #वdवास eक4म को 31 fदसंबर 2020 तक बढ़ाया
7) को#वद के दौरान माच< 2020 से अगeत 2020 तक सभी रिजeटड< GST hयापाMरयH को पूरा इनपुट iे ^डट लेने क4 छू ट दR गई
8) GST के Mरटन< भरने क4 तारRख़ आगे, kकं तु पाँच करोड़ से ऊपर के टन<ओवर मा=लक hयापाMरयH को nयाज सfहत भरना

31. को#वद के बाद आने वाले समय म0 1यवसा2यय3 के 4लए सुझाव
1) 2020-21 म0 अब अपने आपको सवा<इव करना, उसी म0 जीत
2) ख़चF चालू, कै श Jलो नहLं, अतः 1यवसाय को नया Oप देना ज़OरL
3) ख़ुद के Qयास, अपना हाथ जगTनाथ
4) Uबना उपयोगी असेट एवं इTव0टरL को बेचना
5) लोन लेकर रख0 XकTतु Yेप मZ नहLं आए
6) सरकार के Qयास3 का लाभ उठाना
7) असेट बेस लोन नहLं ले, जब तक आप का के स फलो अ2न^ग नहLं हो
8) इको4स_टम एवं डॉट कनेbट करके रख0
9) आपके 1यवसाय के 4लए मैन, मशीन एवं मटLcरयल पर dयान देव0
10) आपके 1यावसा2यक उeदेfय QॉXफट कमाना हL रख0 इसे दूसरे उeदेfय3 के साथ 4मbस नहL कर0

32. को#वद के बाद आने वाले समय म0 1यवसा2यय3 के 4लए सुझाव
11) आपके 1यवसाय को समय के साथ #व:तार कर0
12) को#वड जैसे क@ठन समय म0 अवसर ढूंढ0
13) वकF Gॉम होम को बढ़ावा देवे एवं टेLनोलॉजी का उपयोग कर0
14) अगर आपका Pबज़नस घाटे म0 हS तो उससे मोह नहTं करके Uयाग कर0 एवं नई सोच बनावे
15) आने वाले 1यावसा2यक समय म0 घर कX पढ़T 4लखी औरत3 को 1यवसाय के काम म0 उनकX [च के काम म0 लगाव0

33. सफर ल&बा है
राह भी क.ठन है
भ1व3य उ6जवल है
पु:षाथ= करते र.हये
सफलता आपके कदम छु एगी

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36. For any further assistance,
Please contact R L Kabra at rlkabra@rkabra.net
R Kabra & Co