WELCOME to the CEP of WIRC Day 3

WELCOME to the CEP of WIRC Day 3 - 28 th June 2020

CEP- WIRC- MSME Incentive Schemes – Day 3 Presentation Agenda 1. Review of MSME Definition and Transition with reference to Notification issued on 26 th June 2020. (S. O. 2119(E) 2. 59 Minute – 1 Cr Loan. 3. Lean Manufacturing Competitiveness Scheme (LMCS) 4. ZED Certification Scheme 5. ISO 9000/ISO 14001 Certification. 6. Intellectual Property Rights 7. MSME SAMADHAAN: To Address Delayed Payment to MSEs 8. Organisation Structure (Three Tier) –Center/State/Other Institutes

Notification dated 26 th June 2020 : Definition 1. There is no change in definition, but additional clarification is provided. 2. Both the criteria's linked to Books of Accounts – to get authenticated figures. 3. Investment in Plant and Machinery – Source - linked to the Income Tax Return (ITR) of the previous year filed under the Income Tax Act 1961 4. Definition of Plant and Machinery – As per Income Tax Rules, 1962 5. No change in exclusion and scope. i. e. Only Plant and Machinery – Tangible (Other than Land & Building, Furniture, Fittings) 6. For new enterprises – for first year figures on self declaration.

Notification dated 26 th June 2020 : Changes in Definition • Sales Turnover 1. Export turnover – excluded 2. Information will be picked from GST return (Central Goods and Services Act -CGST Act) and the GSTIN. 3. New Enterprise or No PAN, No GSTN – Figures on self declaration up to 31 st March 2021, thereafter PAN and GSTN Mandatory.

Registration Processes (Effect of Change in Definition) 1. UAM replaced with “Udyam Registration Number”. (UAN) 2. All existing UAM or EM I and EM II certificate holder need to register again on the Udyam Registration portal on or after the 1 st day of July, 2020. 3. No changes in registration process – self declaration, No processing Fee etc. 4. An e-certificate, namely, “Udyam Registration Certificate” shall be issued on completion of the registration process. 5. All enterprises registered till 30 th June, 2020, shall be re-classified by system based information given in Udyam Registration portal 6. Cut off date for existing UAM/EM I and EM II – 31 st March 2021.

Registration Processes (Effect of Change in Definition 1. No enterprise shall file more than one Udyam Registration: Provided that any number of activities including manufacturing or service or both may be specified or added in one Udyam Registration. (Major Change as compare to previous Processes) 2. For upward change in classification i. e. form Micro to Small or Small to Medium – Crossing the limit of Investment or Turnover is sufficient. 3. For reverse change in classification, both the criteria of Investment as well as turnover is necessary.

Classification and Transition 1. After registration, Update Information of ITR and GSTN and other information on line on Udyam Registration portal. 2. Automatic classification into Micro, Small, Medium based on information updated. 3. For change in status due to change in turnover or Investment – communication by system to enterprise. 4. Upward change due to change in Investment or turnover or both, status to existing status to continue for one year from the date of registration. 5. Downward change due to change in Investment or turnover or both, status to existing status to continue till closure of the financial. Benefit of 1 st April of the financial year from following.

59 Minute – 1 Cr Loan – Approval in Principle • Salient Features 1. Working Capital Loan ( 1 lakh to 1 Cr. ) 2. Expected ROI 8% (Depends up on Financial Position of borrower) 3. No collateral security requirements 4. Processing Fee – Very Marginal Just Rs. 1000+ taxes 5. Approval in principle – online, actual disbursement within 7 to 8 days (Normal Period is 20 to 25 days) 6. Finance by participating bank – all nationalize and Private Bank 7. Online Processes – No Manual Intervention 8. Choice to select the bank and brach. 9. Approval in principle. Due diligence by lender. Lender’s decision final. 10. The Platform is integrated with CGTMSE to check eligibility of borrowers.

59 Minute – 5 Cr Loan – Approval in Principle • Documents Required and Website Reference 1. Last 6 months bank statement in PDF format – to be uploaded 2. GST certification is necessary and the borrower has to provide his / her GST ID and password. 3. Ownership certificates / details of current ventures of the applicant. 4. Personal and educational details of the applicant. 5. 3 -year income tax filings, Website Reference for Registration with “New User) www. psbloansin 59 minutes. com.

59 Minute – 5 Cr Loan – Approval in Principle • Application Steps • Step 1 : Complete the sign-up process by entering your name, email and mobile number. Click on ‘get OTP’ to verify your credentials • Step 2: Enter the OTP received on your phone and agree to the terms and conditions before clicking on ‘Proceed’. • Step 3: The next screen will ask a few basic questions which you need to answer in ‘yes’ or ‘no’ by selecting the corresponding radio selection box. Click proceed again to continue to the next step. • Step 4: Now, you will be asked to input your GST details, such as GST number and password, followed by income tax information. Here, you can either upload the statements in XML format or login with your ITR details such as PAN and date of incorporation.

59 Minute – 5 Cr Loan – Approval in Principle • Application Steps • Step 5: This step involves the upload of your past 6 -month bank statements in • • • PDF format. You can also login with your net banking credentials and allow the lenders to access the financial statements Step 6: Here, you provide the details of directors, proprietor and company address. Step 7: Now select the purpose of your loan and provide the details of any previous / existing loans taken by your business. Step 8: Select the bank through which you want your loan to be processed. The interest amount may vary from bank to bank. Step 9: Pay the ₹ 1000 convenience fee, plus taxes for approval. Step 10: Download your approval letter, pending further due diligence by the loan providing bank.

59 Minute – 5 Cr Loan – Approval in Principle • Some Facts and Figures • Tabling the Economic Survey for 2019 -20, the Government on Friday said 1, 59 lakh of loans have been sanctioned involving Rs. 49, 330 crore under loans within 59 minutes through the online portal. Of this, Rs. 37, 106 crore have been disbursed upto October 2019. ******

National Manufacturing Competitiveness Programme (NMCP) 1. Marketing Support/Assistance to MSMEs (Bar Code) 2. Entrepreneurial and Managerial Development of SMEs through Incubators 3. Enabling Manufacturing Sector to be Competitive through QMS & QTT 4. Building Awareness on Intellectual Property Rights (IPR) 5. Lean Manufacturing Competitiveness for MSMEs 6. Design Clinic for Design Expertise to MSMEs-Manufacturing Sector (DESIGN) 7. Marketing Assistance & Technology Upgradation 8. Technology and Quality Upgradation Support to MSMEs

ZED Certification Scheme • Objectives 1. Develop an Ecosystem for Zero Defect Manufacturing in MSMEs. 2. Promote adaptation of Quality tools/systems and Energy Efficient manufacturing. 3. Enable MSMEs for manufacturing of quality products. 4. Encourage MSMEs to constantly upgrade their quality standards in products and processes. 5. Drive manufacturing with adoption of Zero Defect production processes and without impacting the environment. 6. Support ‘Make in India’ campaign. 7. Develop professionals in the area of ZED manufacturing and certification

ZED Certification Scheme Benefits of Zed Certification. 1. Credible recognition of MSMEs for international investors seeking investment in India 2. Part of supply chain of national & international OEMs 3. Streamlined operations and lower cost 4. Superior quality, reduced rejection and higher revenues 5. Increased environmental consciousness and social benefits 6. “ZED Mark” to enable an MSME to be seen as a company with a difference 7. Other benefits expected to be announced by the Government in the near future

ZED Certification Scheme • Nature of Assistance • Ministry will organise workshops, sessions, industry awareness programmes. No participation fee for MSME. • Financial Assistance - a) Certification Fees paid to obtain ZED certification – Micro -80%, Small – 60% and Medium – 50% b) Desktop Assessment Rs. 10000/- and Final assessment – Rs. 80000/c) Rs. 1, 90, 000 For Gap Analysis, Handholding, Consultancy for improving rating of MSMEs by Consultants through QCI/NPC, Field formations of O/o DC-MSME viz. MSME-DI, MSME-TC including its autonomous bodies

ZED Certification Scheme • Certification Processes - Steps • Step 1 : Register free on the online portal of ZED (www. zed. org. in), using the following link: http: //assessment. zed. org. in/Assessment_Before. Login. aspx, using the valid (Indian) mobile number and email address. Step 2 : Online self-assessment on the ZED parameters followed by Desktop Assessment. Step 3 : Site-assessment, if selected on the basis of Desktop Assessment. Step 4 : Consultancy: Rated MSMEs will have the option to avail the service of an authorized ZED consultant for gap-analysis and handholding. • Application form http: //assessment. zed. org. in/Assessment_Before. Login. aspx

ZED Certification Scheme • Who can apply: • All MSMEs registered under MSME Act, 2006 as amended from time to time • Whom to Contact: • Principal Director, MSME-TDC (PPDC), Foundry Nagar, Agra-282006. e-mail: info@ ppdcagra. com and MSME-Technology Development Centres under DC- MSME. **********

ISO 9000/ISO 14001 Certification • Objectives • To enhance the competitive strength of SMEs, • Nature of Assistance • Financial incentives to those SMEs/ancillary undertakings that have acquired ISO 9000/ISO 14001/HACCP certification through reimbursement of the expenditure incurred. • Who Can Apply MSME with valid UAM can apply. Documents Required • Invoice copy and all expenses details • Annexure I – certificate from GM DIC • Annexure II - Certificate from Chartered Accountant • Annexure III – Affidavit (Declaration by the proprietor/MD/ CEO

ISO 9000/ISO 14001 Certification • Mode of Payment a)Payments made to Certification Agency (excluding travel & hotel expenses & Surveillance charges) = Full Amount b) Payments to Recognised Consultants= Upto Rs. 30, 000 for i)Consultancy; (ii) Training (iii) Calibration For Details about only to • The entitlement for reimbursement = 75% ( (a) full Amount + (b)up to Rs. 30, 000/- ) up to Rs. 75, 000/-

ISO 9000/ISO 14001 Certification • List of Approved Consultant 1. Consultants registered with National Registration Board for Personal & Training (NRBPT) 2. TQM Division of Textile Committee 3. National Productivity Council(NPC) 4. Consultancy Development Centre(CDC) 5. Small Industries Service Institutes & 6. CII/FICCI/ASSOCHAM

ISO 9000/ISO 14001 Certification • How to apply • MSEs with their EM No. are required to submit their application, duly completed, to their local Director, MSME-DI • Addresses given in the following website: www. dcmsme. gov. in • Application Form http: //www. dcmsme. gov. in/publications/forms/Application%20 Form. pdf ***********

Intellectual Property Rights • Objectives 1. To provide awareness on Intellectual property rights. 2. Assist in formulating measures to safeguard their ideas and business strategies. 3. Initiating seminars, workshops, and training to improve the same. 4. Compensation for enrollment under IP. 5. To set up facilitation center across the country that aid in solving IP related problems. 6. To ensure proper utilization of IPR tools. 7. Encourage technology up-gradation and increase competitiveness The scheme is a drive by NMCC (National Manufacturing Competitive Council)

Intellectual Property Rights • Who Can Apply • Any MSME registered under Udyog Aadhar Memorandum is eligible to apply. of the scheme. • Procedure On line application with documents as below 1. Proposal 2. Utilization certificate from Chartered Accountant 3. Statement of Account 4. Original vouchers 5. Report of the Resource Persons of the Programme

Intellectual Property Rights

Intellectual Property Rights

Intellectual Property Rights The detail guidelines, eligibility criteria, funding pattern and prescribed format etc. are avilable on http: //www. dcmsme. gov. in/schemes/Guidelines-UK. pdf Related Links: www. wipo. int http: //www. tifac. org. in/do/pfc. htm

MSME – SAMADHAN – Delayed Payment Monitoring System • Salient Features 1. A Portal created by Office of DC(MSME), Ministry of Micro, Small and Medium Enterprises (MSME) where Micro and Small Enterprises (MSEs) can file their applications online regarding delayed payments. 2. Micro and Small Enterprise Facilitation Council MSEFC) established by the State/UTs as per the provisions of MSMED-Act 2006. 3. No intervention from Ministry of MSME – Independent Body 4. UAM is mandatory to file the claim 5. Only on line application is not necessary. Physical application can be filed. 6. Automatic conversion of application filed on portal in to Case

MSME – SAMADHAN – Delayed Payment Monitoring System • Salient Features 7. Acknowledgement on registered E-mail as proof. 8. work order is compulsory. In case purchase order is oral an affidavit to that effect is to be submitted. 9. Stipulated period to resolve the case is 90 days from the date of receipt of application. 10. Responsibilities and powers of Council members are at par with Judges 11. Legal notice by the supplier to buyer is not necessary before filling the case in the Council. 12. No penalty for false case by the seller, case is simply rejected

MSME – SAMADHAN – Delayed Payment Monitoring System • Salient Features 13. All types of dues are liable to file the claim i. e. EMD, Statutory Deposit etc. Claim not restricted only for supply or provision of service. 14. For acceptance or rejection of goods, 15 days period is allowed. 15. State government under Section 20 of MSMED Act, 2006 is empowered to constitute a council. 16. No restriction on buyer. Case can be filed against government department. 17. Law of limitation is not applicable. However, there should not be delay and latches on the part of the supplier 18. Supporting documents are PO, DC, Invoice, Demand letter. 19. Notice on E-mail or Whatsapp is valid notice.

MSME – SAMADHAN – Delayed Payment Monitoring System

Organizational Structure • At Central Level 1. Ministry of MSMEs ( Cabinet + State) a) SME Division (Small and Medium Enterprise Division) b) ARI Division ( Agro and Rural Industry) c) IF Wing ( Integrated Finance) d) DATC & DBT Division (Data Analytics and Technical Coordination And Direct Benefit Transfer) e) Office of the Development Commissioner (DCMSME) 2. Small Industries Development Organisation (SIDO) 3. National Small Industries Corporation(NSIC) 4. Entrepreneurship Development Institutions (EDIs)

Organizational Structure • ARI Division (Agriculture and Rural Industries Division) a) Khadi and Village Industries Commission (KVIC) b) Coir Board c) Mahatma Gandhi Institute For Rural Industrilisation(MGIRI) d) Prime Minister’s Employment Generation Programme (PMEGP), e) Scheme of Fund for Regeneration of Traditional Industries (SFURTI) A Scheme for Promoting Innovation, f) A Scheme for Promoting Innovation, Rural Industry and Entrepreneurship(ASPIRE).

Organizational Structure Office of the Development Commissioner (DCMSME) • Network a) MSME-Development Institutes (DI), b) Regional Testing Centres, c) Footwear Training Institutes, d) Production Centres, e) Field Testing Stations and f) specialized institutes. • Services Rendered a) Advising the Government in Policy formulation for the promotion and development of MSMEs. b) Providing techno-economic and managerial consultancy, common facilities and extension services to MSME units. c) Providing facilities for technology upgradation, modernization, quality improvement and infrastructure. d) Developing Human Resources through training and skill upgradation. e) Providing economic information services.

Organizational Structure • At State Level 1. Directorate of Industries 2. District Industries Centres 3. State Finance Corporation 4. State Industrial Development Corporation 5. Technical Consultancy Organisations 6. Entrepreneurship Development Institutions (EDIs)

Institutional Support 1. Industry Associations (MCCIA, LUB, FICCI, CII) 2. NGOs 3. SIDBI 4. NABARD 5. Banks/Financial Institutions/ NBFC/ Self Help Group

THANK YOU v. Thank you for your patience listening. v. I have enjoyed. v. Hope you too.