Post on 14-Jul-2015
MSMEs – Role of ProfessionalsMSMEs – Role of Professionals- Experience sharing - Experience sharing
P UDAYA SHANKERP UDAYA SHANKERHead, Centre for Industrial Credit & Financial ServicesHead, Centre for Industrial Credit & Financial Services
School of Enterprise Management School of Enterprise Management
Coverage MSME act Credit linked capital subsidy scheme Credit guarantee fund for small industries Venture capital Marketing assistance for SSI products Technology development & modernisation Cluster development National manufacturing competitiveness
and capacity building
Coverage Micro credit ISO certification Intellectual property rights Delayed payments to small industries Credit rating Rajiv Gandhi Udyami Mitra Yojna
Micro, Small & Medium Enterprises Development (MSMED) Act, 2006
Classification of enterprises
Manufacture/production of goods
Providing/rendering of services
Manufacturing enterprises Investment limit Plant and machinery Excluding land & building
Micro enterprises –
upto Rs.25 lakh
Small enterprises – above Rs.25 lakh & upto Rs.5 crore
Medium enterprises - above Rs.5 crore &
upto Rs.10 crore
Services enterprises Investment in equipment Excluding land & building
No relation with turnover or manpower engaged
Micro enterprises – upto Rs.10 lakh
Small enterprises – above Rs.10 lakh & upto Rs.2 crore
Medium enterprises - above Rs.2 crore &
upto Rs.5 crore
Credit Linked Capital Subsidy Scheme Technology up-gradation Select sectors 15 per cent upfront to MSME
Credit Guarantee Fund Scheme for Small Industries (CGFSI)
Collateral free lending upto Rs.25 lakh
Venture capital scheme
Innovative Not qualified for
conventional financing
Marketing assistance scheme for SSI products
Specialised organisations Marketing assistance Infrastructure Support services
Market related activities:
R&D Product up-gradation & standardisation Advertising, branding, catalogue Audio visual aids Trade fairs and exhibitions, sales
promotion tours Distribution networks, showrooms/ retail outlet/ware housing Training of personnel
Technology Development and Modernisation Scheme (TDMFS)
New/existing SSI, generally private limited companies
Equipment Technical know how Designs, drawings Up-gradation of process technology and products, packaging TQM and ISO 9000
Industries Cluster Development Programme (SICDP)
Micro & Small Enterprises Cluster Development Programme - Technology upgradation for a group of MSMEs of one industry
National Manufacturing Competitiveness Programme (NMCP) Schemes
Scheme for Capacity Building - Strengthening of database and advocacy by industry/enterprise associations
Micro Credit Scheme
Micro Finance Institutions (MFIs) Having network and experience in
small saving-cum-credit programmes Self-Help Groups (SHGs), Federation of
SHGs, Non-Banking Finance Companies dealing with poor, specialised co-operative societies, etc.
Rating
ISO 9000/ISO 14001 CertificationReimbursement Scheme
Acquiring Quality Management System (QMS) ISO 900 certification/ environment management (EMS)
ISO 14001 certification
To the extent of 75% or Rs.75,000 whichever is lower
For SSIs/ancillary/tiny/SSSBE
Intellectual property rights Patents and registration under
geographical indications of goods
Domestic patents Rs.25,000 grant
Foreign patent Rs.2 lakh grant Geographical indications
Rs.1,00,000 grant
Delayed payments to micro and small enterprises
Make payment on or before date agreed in writing
In no case, period agreed in writing shall exceed 45 days from the day of acceptance/deemed acceptance
Where buyer fails to make payment
Liable to pay compound interest with monthly rests
(3) three times of the bank rate
Annual accounts to furnish information of unpaid amount with interest
Principal amount and interest due thereon (shown separately)
Report on amount of interest and amounts paid during each accounting year
Amount of interest due/payable for period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest
Amount of interest accrued and remaining unpaid; and
Amount of further interest due and payable even in succeeding years, until such date when interest dues are actually paid
Amount of interest payable or paid, shall not, for the purposes of computation of income, allowed as deduction. (Interest not to be allowed as deduction from income.)
Credit rating of small enterprises NSIC Empanelled agencies:
ICRA, ONICRA, Dun & Bradstreet, CRISIL, FITCH and CARE, SMERA
Rajiv Gandhi Udyami Mitra Yojna (RGUMY) First generation
entrepreneurs – stages
Selection of enterprises to financing by agencies
Legal formalities Follow up
Building of data base for products and services in specific locations
Model formats for project report preparation
Drawing of long term perspective for enterprise sustenance
Establishing linkages with the suppliers and customers
Empanelling experts in various fields of operation