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

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