An emerging threat to small Enterprises (MSMEs)

An emerging threat to small Enterprises (MSMEs)

www.carajput.com; MSME

www.carajput.com; MSME

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 

www.carajput.com;MSME

www.carajput.com; 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

Documents for Udyam Registration MSME –

www.carajput.com;MSME Registration

www.carajput.com; MSME Registration

  • 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

Regards

Rajput Jain & Associates

www.carajput.com

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)