An emerging threat to small Enterprises (MSMEs)
–Micro, small and medium-sized enterprises ( MSMEs) face an identity threat due to economic recession in the financial year (FY) 2021 in the midst of the Covid-19 pandemic.
-India was moving towards a 15-percent decline in revenue and a 25-percent decrease in earnings before interest, taxes. fortunately, for smaller firms, revenue will also fall by 17-21 percent, while the EBITDA margin would fall by 200-300 basis points ( bps) to 4-5 percent, with weak demand away from lower commodity prices.
-The downward trend at the operational level will also have an impact on creditworthiness. In the meantime, the average interest rate coverage ratio could fall to 1-1.5 times the 2.4-fold between the 2017 and 2020 fiscal years, “the study said.
As a summary to this issue, a three-pronged strategy is now crucial
-Improve job satisfaction with formal and informal employees to confident decisions.
-Speed up the execution of the Rs 3-Lakh Crore Aatmanirbhar scheme to ensure the continuous supply of liquidity to small and medium-sized enterprises.
-Lenders must go further than traditional credit processes because they have a key role to play in recovering.
What is MSME
|Category of Micro/Small/Medium Enterprises – Type of Enterprises||Micro-Enterprise||Small Enterprise||Medium Enterprise|
|Manufacturing OR Services Sector, Both||Investment up to ₹ 1 Cr AND Turnover up to ₹ 5 Cr||Investment up to ₹ 10 Cr AND Turnover up to ₹ 50 Cr||Investment up to ₹ 50 Cr AND Turnover up to ₹ 250 Cr|
- Adhaar Card – of the prop. (in case of the prop.)
- Of Managing Director/Partner(in case of company/partnership firm)
- Must be linked with mobile no. and pan.
- GSTIN and Pan Card.(RC copy of GST no.)
- Annual Turnover as per Income Tax and GST.
- Plant and Machinery details as per Income Tax Return.
- Self-declared if Income Tax Return not filed.
- Date of Incorporation of business (RC copy of company)
- Income Tax Return Copy with the Balance sheet and Profit and Loss.
- Email id/ Mobile No.
Benefits of Udyam Registration MSME –
– Collateral Free Borrowings
– Subsidized Loan from banks with a low-interest rate
– Participate in the International Trade Fairs
– Benefits from Central Government Schemes
– Preference in the Government Tenders
– Get Subsidy on the Patent Registration
– Protection against delayed payment
– Get Subsidy on Trademark Registration
– Concession in electricity bills
– Easy to get licenses, approvals, and registrations
– Reimbursement of Foreign Exhibition Charges