The company should have filed e-Form CRA 2 giving details of Cost Auditor of the company (If applicable) like PAN No. and Membership Number ; The company should have filed e-Form DIR 12 & MR 1, if applicable, for the appointment of MD/WTD/ Manager CEO/CS/CFO giving details of designation ; The Company should have filed e- Form AOC-4(Annual Accounts) or AOC-4 XBRL and MGT-7 (Annual Return) filed for F.Y. 2017-18; AMITA DESAI & CO. 21 April 2019 26
Details of the Stock exchange, if the Company is a Listed Company Number of Directors in the Company and list of Directors If the Company has not appointed CS or CFO if required, the Company shall be restricted from filing Form INC 22A AMITA DESAI & CO. 21 April 2019 27
Mandatory Attachments Photograph of Registered Photograph of Registered Office showing inside office Office showing external with at least one building with at least one director/KMP who has director/KMP who has affixed his/her Digital affixed his/her Digital Signature to this form Signature to this form AMITA DESAI & CO. 21 April 2019 28
E-Form INC 22A to be digitally signed by one director in case of OPC and by one director and one KMP or two directors in case Company is other than OPC, the same need to be. E- Form INC-22A - certified by CA/ CS/ CWA in whole time practice. AMITA DESAI & CO. 21 April 2019 29
Last year, the Ministry of Corporate Affairs found that there were 114 Companies operating from same office of a small room and half of it were not having any business operations. These companies were having huge losses but Directors were drawing salaries and companies were lending finance to each other. These companies were having assets and filing regularly their returns. Majority of these companies are registered in Eastern Region AMITA DESAI & CO. 21 April 2019 30
MCA has come up with this new e-Form INC 22A to resolve various issues like Identifying shell / vanishing companies used for Black Money and Money Laundering activities Locating the office of the Company and with photo of Directors AMITA DESAI & CO. 21 April 2019 31
AMITA DESAI & CO. 21 April 2019 32
AMITA DESAI & CO. 21 April 2019 33
One Time Return of any kind of outstanding Receipt of Money or Loan by Company Notification MCA amendment in The Companies (Acceptance of Deposits) Rules, 2014 dated 22 nd January 2019 AMITA DESAI & CO. 21 April 2019 34
Sr. No. Particular Rational 1 Applicability / Exemption 2 Effective Date 3 Requirement of filing Form DPT-3 4 Clarification on certain receipt /loan 5 Deposit and exempted Deposit 6 The amount received from “ Real Estate Investment Trusts” shall not be 7 treated as deposits . Punishment for contravention of the Companies ( Acceptance of Deposits ) 8 Rules, 2014 AMITA DESAI & CO. 21 April 2019 35
Rationale of this changes The Reporting of Deposits was applicable only to following companies: (a) Eligible Companies means Public Company having Net Worth of not less than Rs.100 crore OR Turnover of not less than Rs.500 Crore which accepts deposits from persons other than its members after obtaining prior approval of its members; (b) Companies referred under section 73 (2), which have accepted Deposits from its members . However, the amendment requires one time report of all outstanding receipt of money or loan by a company which is not considered as Deposit as per rule 2 (1) (c) from 1 st April, 2014 till 31 st March 2019 (earlier it was upto 22 nd January 2019) – General Circular No. 05/2019 dated 12.04.2019 AMITA DESAI & CO. 21 April 2019 36
Applicability : Every Company Private Company Public Company OPC u/s 2 (68) u/s 2 (71) u/s 2 (62) Means not having minimum paid up share Means a Company which is capital, restricts the right not a Private Company as per means a to transfer its shares, CA, 2013. Provided that a company except in case of OPC company which is a limits the number of its which has subsidiary of a company, not members to 200. being a private company, only one Provided that where 2 or shall be deemed to be public person as a more persons hold one or company for the purposes of member; more shares in a Co. this Act even where such jointly, they shall, for the subsidiary company purposes of this clause, continues to be a private be treated as a single company in its articles ; member: AMITA DESAI & CO. 21 April 2019 37
Exempt Company Non-Banking Housing Finance Government Banking Financial Company Company registered as defined under RBI with National Company Company Act, 1934 Housing Bank *What is a Government Company : Government Company means the Company where holding of more than 51% of the paid up share capital is with the Central Government, or by State Government, or partly by Central Government and partly by State Government and Includes a Company which is Subsidiary Company of such Government Company AMITA DESAI & CO. 21 April 2019 38
Effective Date FROM 22 nd January, 2019 MCA Notification date AMITA DESAI & CO. 21 April 2019 39
Requirement of filing Form DPT-3 One-Time Return Annually Return Rule 16A For disclosure of details of Rule 16 of the Companies outstanding money or loan received by a (Acceptance of Deposits) Rules, company but not considered as deposits 2014 requires every company which in terms of Rule 2(1)(c) of is accepting deposits to file Form the Companies (Acceptance of Deposits) DPT-3 on or before 30th June with Rules, 2014 information certified by its Auditors Due Date of filing is within Due Date of filing is 30 days from the date of 30th June of every deployment of DPT-3 e-Form financial year . on MCA AMITA DESAI & CO. 21 April 2019 40
• If loan/money has been received before 01.04.2014 and still outstanding in the balance sheet, then also 1 information is required to be furnished in Form DPT- 3 • If loan/money has been received any time after 01.04.2014 and repaid before 31.03.2019, then 2 no information is required to be furnished in Form DPT-3. • This form will be filed even if a Company has received 3 loan from its Holding Company or Subsidiary Company or Associate Company AMITA DESAI & CO. 21 April 2019 41
What is Deposit : Deposit includes Any receipt of money by way of deposit or loan or in any other form, by a company, Except the item prescribed Under Rule 2 (1) (c) (i) to (xviii) of the Companies (Acceptance of Deposits) Rules, 2014 AMITA DESAI & CO. 21 April 2019 42
Exempted Deposits Rule 2 (1) (c) of the Companies (Acceptance of Deposit) Rules, 2014 provides for exempted Deposits Sr.No. Particular Any received Amount from Central or State Government or Local 1 Authority, Statutory Authority constitute under act of Parliament or State Legislature. Any received Amount from Foreign Government or Foreign Bank, 2 Foreign Export Credit Agencies, Foreign Collaborators, Foreign bodies Corporate and Foreign Citizens, Foreign Authorities or persons resident outside India subject to the provisions of Foreign Exchange Management Act, 1999 (42 of 1999) and rules and regulations made there under; AMITA DESAI & CO. 21 April 2019 43
Any amount received as a loan or facility from any Bank/ Public Financial 3 Institutions/ Co-operative Banks. Any amount received as a loan or facility from any Public Financial Institutions 4 notified by Central Government/ Insurance Companies or Schedule Commercial Bank Any amount received against issue of Commercial Paper (CP) 5 Money received from any other Company (ICD) 6 Amount received towards subscription of any securities 7 - Allotment to be made within 60 days from the date of receipt of money or advance. - amount not refunded within 15 days from completion of 60 days will be treated as deposits . Any adjustment of the amount for any other purpose shall not be treatedas refund and considered as Deposit AMITA DESAI & CO. 21 April 2019 44
Deposit from Directors or Relative of director in case of private company 8 Amount issued as CCD (Provided it is mandatorily converted in shares in 10years) 9 Amount issued as Secured Debentures (Provided it is 100% secured). Any amount raised by issue of unsecured NCD and listed on Stock Exchange Amount received from Employee (Not exceeding his annual salary) 10 Any non interest bearing amount received and held in Trust 11 Advance received for supply of goods/services ( Maximum 365 days), amount 12 received for immovable property under agreement, security deposit for performance of contract , advance received under long term project for supply of capital goods and advance for future services in the form of warranty for period as per normal practice or 5 years which ever is less. AMITA DESAI & CO. 21 April 2019 45
‘Promoter’ unsecured funding on stipulation imposed by lending institution 13 Any amount accepted by a Nidhi company 14 Any amount received by way of ‘Subscription in respect of a Chit under the 15 Chit Fund Act, 1982 Collective Investment Scheme in compliance with SEBI Regulation 16 Convertible Note issued by Start up Company (25 lakhs or more repayable 17 within 5 years) Amount received by co from AIF, MF, Domestic Capital Venture, 18 Infrastructure Investment Trusts, Real Estate Investment Trusts (inserted vide amended Rules,2019) AMITA DESAI & CO. 21 April 2019 46
REAL ESTATE INVESTMENT TRUSTS Before Amendment After Amendment Any amount / money Such amount / money received by company now from Real Estate shall not be Investment Trusts considered as were treated Deposits as Deposits Rule 2(1) (c ) (xviii) Rule 2(1) (c ) (xviii) AMITA DESAI & CO. 21 April 2019 47
Normal Fine On company and every officer of the company who is in default shall be punishable with fine which may extend to ₹ 5,000/ - Continuing Offence where the contravention is a continuing one, ₹ 500/ - for every day during which the contravention continues AMITA DESAI & CO. 21 April 2019 48
E-Form INC – 35 AGILE A pplication for G oods and services tax Identification number, employees state I nsurance corporation registration p L us E mployees provident fund organisation registration AMITA DESAI & CO. 21 April 2019 49
AMITA DESAI & CO. 21 April 2019 50
Ministry of Corporate Affairs (MCA) had on 29 th March, 2019 Notified The Companies (Incorporation) Third Amendment Rules, 2019 in which Rule 38A is inserted, which will be effective from the date of its publication in official gazette . AMITA DESAI & CO. 21 April 2019 51
What is e-Form INC-35 ? Rule 38A of the Companies (Incorporation) Rules, 2014 , provides an option to the Applicant Company while formation to apply for registration of the following numbers, namely: Goods and Service Tax Identification Number (GSTIN)(wef 31.03.2019) a) Employees’ Provident Fund Organisation ( EPFO) (wef 08.04.2019) b) Employees’ State Insurance Corporation ( ESIC) (wef 15.04.2019) c) AMITA DESAI & CO. 21 April 2019 52
When to file e-Form INC-35 ? As per Rule 38 of the Companies (Incorporation) Rules, 2014 , E-From INC-35 to be filed while making application for Incorporation of a Company in Form INC-32(SPICe), along with e-MOA in Form INC-33 and e-AOA in Form INC-34 AMITA DESAI & CO. 21 April 2019 53
1) Details of Goods supplied by the Business with details of State ; 2) Details of Services supplied by the Business with details of State ; 3) Personal details of Director who is also an Authorised Signatory / Primary Owner / Office Bearer; 4) Personal details of Director other than Authorised Signatory / Primary Owner / Office Bearer; Personal Details: a) Director Identification Number; b) PAN; c) Full name of Director; d) Personal Mobile Number in which OTP generated; e) Personal Email Id in which OTP generated; f) Latest Passport size photograph. AMITA DESAI & CO. 21 April 2019 54
Minimum number of directors details – 5) a) In case of OPC – 1; b) In case of Private Company – 2; c) In case of Public Company – 3; d) In case of Producer Company – 5. 6) Police station 7) Reason for Registration 8) Place of business with proof of ownership and possession 9) State and Center Jurisdication AMITA DESAI & CO. 21 April 2019 55
Proof of Principal place of business Mandatory Proof of appointment Attachments to of Authorized Form INC-35 Signatory Specimen Signature AMITA DESAI & CO. 21 April 2019 56
Filing Fees of Form Nil INC 35 Processing Type Non STP AMITA DESAI & CO. 21 April 2019 57
E-Form DIR-3 KYC KYC OF DIRECTORS AMITA DESAI & CO. 21 April 2019 58
AMITA DESAI & CO. 21 April 2019 59
Introduction Ministry of Corporate Affairs (MCA) vide Notification dated 5 th July, 2018 has amended the Companies (Appointment and Qualification of Directors) Rules, 2014 by inserting Rule 11 (2) and (3) and Rule 12A and made Directors KYC mandatory which was effective from 10 th July 2018. AMITA DESAI & CO. 21 April 2019 60
DIR 3 KYC means KYC of Directors who has been allotted DIN (Director Identification Number) u/s154 of the Companies Act, 2013 and they are required to file e-Form DIR-3 KYC on MCA AMITA DESAI & CO. 21 April 2019 61
Rule 11 (2) reads that if DIN holder fails to file DIR-3 KYC within the given time then DIN will be De-activated by the Central Government or Regional Director (Northern Region) or any officer authorized by the Central Government for this purpose. And Rule 11(3) reads that the de-activated DIN shall be re-activated only after e-form DIR-3 KYC is filed with additional fees of Rs. 5000/- AMITA DESAI & CO. 21 April 2019 62
Due Date of filing DIR-3 KYC as per Rule 12A Annual Basis Initial Rule 12A requires that every individual who The Persons who have been allotted DIN till has been allotted DIN as on 31 st March of a 31 st March, 2018 were required to file this Financial year shall file DIR – 3 KYC with e-form with MCA by 31 st August, 2018. MCA on or before 30 th April of immediate (extended till 5 th October 2018) next Financial year. AMITA DESAI & CO. 21 April 2019 63
At present the form available on MCA portal is only for those individuals who were allotted DINs a) as on 31st March 2018 and b) whose DINs have been marked as ‘Deactivated due to non-filing of DIR- 3 KYC’ . However MCA has clarified that DIN holders are required to file e-Form DIR-3 KYC every year in the revised form which will shortly deployed on MCA portal and the due date of filing the said Form is within 30 days from the date of its deployment. AMITA DESAI & CO. 21 April 2019 64
Director Identification Number Date of Birth a) h) (DIN) Gender i) Full Name of the Director Aadhar Card Number b) j) Fathers Name of Director Passport Number (Mandatory c) k) Whether a citizen of India or in case of Foreign National) d) not Personal Mobile and Personal l) Nationality Email ID of the Director e) Whether resident in India or not m) Permanent Residential address f) & Present Residential address PAN g) AMITA DESAI & CO. 21 April 2019 65
Mandatory Attachments to e-Form DIR-3 KYC Proof of Address Proof of Identity of individual AMITA DESAI & CO. 21 April 2019 66
CERTIFICATION BY PROFESSIONAL E-Form DIR 3 KYC is required to be signed digitally by the applicant director and the same is required to be certified and verified by practicing CA / CS / CMA. Professional is required to declare that he has been duly engaged for the purpose of certification/verification of the form and he is certifying the followings: a) That he has satisfied himself about the identity of the applicant and his address based on the perusal of the original of the attached document and in case, where the applicant is residing outside India the particulars have to be verified from the documents duly attested by the attesting authority as prescribed. AMITA DESAI & CO. 21 April 2019 67
CERTIFICATION BY PROFESSIONAL b) That he has verified and attested the documents of the applicant based on the Originals documents produced before him. c) That he has gone through the provisions of the Companies Act, 2013 and rules made thereunder for the subject matter of this form and matters incidental thereto and he has verified the particulars mentioned in the form (including attachment(s)) from the original records maintained by the Company/applicant which is subject matter of this form and found them to be true, correct and complete and no information material to this form has been suppressed. AMITA DESAI & CO. 21 April 2019 68
CERTIFICATION BY PROFESSIONAL d) That Mobile Number and Email ID is of the applicant e) That all the required attachments have been completely and legibly attached to this form That he has kept a copy of this form and attachments f) thereto, in his records for further reference. ( professional are custodian of these documents ) g) That he is understood that he shall be liable for action under section 448 of the Companies Act, 2013 for wrong certifications, if any found at any stage. AMITA DESAI & CO. 21 April 2019 69
DIR 3 KYC is required every year to confirm the data , information as available on MCA system MCA wants its data base to be relevant and updated with any changes in Directors KYC AMITA DESAI & CO. 21 April 2019 70
AMITA DESAI & CO. 21 April 2019 71
The Companies (Amendment) Ordinance, 2018 had substituted Section 454 (3) in the Companies Act, 2013 (effective from 2 nd Nov 2018) The Ministry of Corporate Affairs had substituted Rule 3 in the Companies (Adjudication of Penalties) Amendment Rules, 2019 vide its Notification (Dated 19 th February, 2019) AMITA DESAI & CO. 21 April 2019 72
Section 454(1) The Central Government (CG) may, by an order published in the Official Gazette, appoint as many officers of the Central Government, not below the rank of Registrar, as adjudicating officers for adjudging penalty under the provisions of this Act in the manner as per the Companies (Adjudication of Penalties) Rules, 2014. Section 452 (2) The CG shall specify the jurisdiction of appointed adjudicating officers in the order. AMITA DESAI & CO. 21 April 2019 73
Section 454 (3) – Substituted 02.11.2018 If there is any non-compliance or default under the relevant provisions of the Companies Act, 2013 then adjudicating officer may, by an order – a) Impose penalty on the Company, the officer who is in default, or any other person, as the case may be; and b) direct such company, or officer who is in default, or any other person, as the case may be, to rectify the default, wherever he considers fit. AMITA DESAI & CO. 21 April 2019 74
Section 454 (4) The adjudicating officer before imposing any penalty shall give a reasonable opportunity of being heard and issue a written notice in the specified manner to such Company and the officer who is in default Rule 3 (2) reads that The adjudicating officer shall issue a written notice in the specified manner to the Company and the officer in default or any other person , as the case may be, to show cause, within such period as may be specified in the notice (which is not <15 days and > 30 days ) why the penalty should not be imposed on it or him. AMITA DESAI & CO. 21 April 2019 75
Rule 3 (3) The notice issued shall clearly specify the nature of non-compliance or default have been committed or made by such Company and the officer who is in default or any other person, as the case may be and also draw attention to the relevant penal provisions of the act and the maximum penalty which can be imposed on it and him. AMITA DESAI & CO. 21 April 2019 76
Rule 3 (4) The Company and the officer who is in default or any other person has to reply to such notice shall be filed in electronic mode only within time specified in notice. However adjudicating officer may grant extension of further period not exceeding 15 days if Company and the officer who is in default or any other person satisfies that a) it or he has sufficient cause for not responding to the notice within the stipulated period or b) the adjudicating officer has reason to believe that the company or the officer or the person has received a shorter notice and did not have reasonable time to give reply. AMITA DESAI & CO. 21 April 2019 77
Rule 3( 5) If in the opinion of Adjudicating officer physical appearance is required, he may issue notice within a period of 10 days from the date of reply and fix a date for appearance. Provided that if any person, to whom a notice is issued under sub-rule (2), desires to make an oral representation, whether personally or through his authorised representative and has indicated the same while submitting his reply in electronic mode, the adjudicating officer shall allow such person to make such representation after fixing a date of appearance AMITA DESAI & CO. 21 April 2019 78
Rule 3 (6) On the date fixed for hearing and after giving a reasonable opportunity of being heard, the adjudicating officer may pass any order in writing as he thinks fit including an order of adjournment. Provided that after hearing Adjudicating Officer may require the concerned person to submit his reply in writing on certain other issues related to the notice relevant for determination of the default. AMITA DESAI & CO. 21 April 2019 79
Rule 3 (7) Adjudicating officer may pass an order:- In case physical appearance not required – within 30 days after the expiry of the period given for reply (15 to 30 days or such extended period) In case physical appearance required – within 90 days from the date of issue of appearance If due to some reason there is delay in order passed then such order shall not considered to be invalid. AMITA DESAI & CO. 21 April 2019 80
Rule 3 (8) Every order given by Adjudicating officer shall be duly dated and signed by him and shall clearly state the reason for requiring the physical appearance Rule 3 (9) Copy of the order by Adjudicating officer shall be sent to a) the concerned Company, Officer who is in default or any other person or all of them; b) Central Government ; and c) Copy of the Order shall be uploaded on website. . AMITA DESAI & CO. 21 April 2019 81
Powers of Adjudicating Officer under Rule 3 (10) to summon and enforce the to order for evidence or to attendance of any person produce any document, acquainted with the facts which in his opinion may and circumstances of the be relevant to the subject case after recording matter. reasons in writing; AMITA DESAI & CO. 21 April 2019 82
Rule 3 (11) Adjudicating Officer may pass an order of imposing penalty if any person fails to reply or neglects or refuses to appear before him AMITA DESAI & CO. 21 April 2019 83
Rule 3 (12) – Factors to be considered for adjudicating quantum of penalty Size of the Company; a) Nature of business carried on by the company; b) injury to public interest; c) nature of the default; d) repetition of the default; e) the amount of disproportionate gain or unfair advantage, wherever quantifiable, f) made as a result of the default; and the amount of loss caused to an investor or group of investors or creditors as a g) result of the default. Provided that, in no case, the penalty imposed shall be less than the minimum penalty prescribed , if any, under the relevant section of the Act. AMITA DESAI & CO. 21 April 2019 84
Rule 3 (13) In case a fixed sum of penalty is provided for default of a provision, the Adjudicating Officer shall impose that fixed sum, in case of any default therein. Rule 3 (14) Penalty shall be paid through Ministry of Corporate Affairs portal only. Rule 3 (15) All sums realised by way of penalties under the Act shall be credited to the Consolidated Fund of India. AMITA DESAI & CO. 21 April 2019 85
Explanation 1 For the purposes of this rule, the term “specified manner” shall mean service of documents as specified under section 20 of the Act and rules made thereunder and details in respect of address (including electronic mail ID) provided in the KYC documents filed in the registry shall be used for communication under this rule. Explanation 2 For the purposes of this rule, it is hereby clarified that the requirement of submission of replies in electronic mode shall become mandatory after the creation of the e-adjudication platform AMITA DESAI & CO. 21 April 2019 86
Section 454(5) &(6) Rule 4 of the Companies (Adjudicating Penalties) Rules, 2014 Any person aggrieved by an order made by Adjudication Officer may prefer an Appeal To Regional Director (RD) in From ADJ Within 60 days from the date of order received by the aggrieved person AMITA DESAI & CO. 21 April 2019 87
Rule 5 Registration of Appeal On receipt of Appeal RD shall endorse the date on such Appeal and sign such endorsement and if appeal found in order shall be duly registered and serially numbered. Provided that appeal found to be defective, RD may allow not less than 14 days time to appellant to rectify the defects. Provided further that RD may grant extension of further period of 14 days if appellant satisfies sufficient cause for not rectifying the defect within 14 days And If appellant fails to rectify the defect within 14 days, then RD may refuse to register such appeal within 7 days by order in writing after completion of period of 14 days. AMITA DESAI & CO. 21 April 2019 88
Sub rule (1) Serve copy of Appeal RD shall serve copy of appeal to Adjudicating Officer (AO) against whose order the Appeal is sought along with notice requiring such AO to file his reply thereto within a period of 21 days. Provided that RD may extend the further period of 21 days if AO satisfies sufficient cause to not file within period of 21 days. AMITA DESAI & CO. 21 April 2019 89
Rule 6 Disposal of appeal by RD Sub rule (2) Serve copy of reply A copy of reply, application and written representation filed by AO before RD and shall serve same copy to the Appellant. AMITA DESAI & CO. 21 April 2019 90
Rule 6 Disposal of appeal by RD Sub rule (3) date of hearing RD shall notify the parties date of hearing before 30 days from the date of hearing of the Appeal AMITA DESAI & CO. 21 April 2019 91
Rule 6 Disposal of appeal by RD Sub rule (4) Adjournment On the date fixed for hearing RD may, subject to the reason to be recorded in writing, pass any order as he thinks fit including order of adjournment of hearing to a future date AMITA DESAI & CO. 21 April 2019 92
Rule 6 Disposal of appeal by RD Sub rule (5) Order of Ex-parte In case the Appellant or AO does not appear on the date fix for hearing RD may dispose off the Appeal “Ex - parte” However RD may set aside the ex-parte order and restore Appeal if Appellant appears afterwards and satisfies the RD that there was sufficient cause for his non-appearance. AMITA DESAI & CO. 21 April 2019 93
As per Section 454(7) of CA 2013 Order of Regional Director Regional Director may after giving the parties to the Appeal an opportunity of being heard, pass such order as he thinks fit , confirming, modifying or setting aside the order appealed against. AMITA DESAI & CO. 21 April 2019 94
Rule 6 Disposal of appeal by RD As per sub rule (6) the Order passed shall be dated and signed by RD As per sub rule (7) Certified copy of every order shall be send to Adjudicating Central Officer(AO) Appellant Government AMITA DESAI & CO. 21 April 2019 95
Penalty u/s 454 (8) Fine not < Rs. 25000 but may Company extend to Rs. 5 Lac Penalty Imprisonment extend to 6 months Officer of the Fine not <Rs. 25000 Company in but may extend to Rs.1 default Lac Or with Both AMITA DESAI & CO. 21 April 2019 96
AMITA DESAI & CO. 21 April 2019 97
INTRODUCTION The Micro, Small and Medium Enterprises Development Act, 2006 came into force on 2 nd October, 2006. The purpose of the Act was to promote, develop and enhance competitiveness of MSME’s and for other matters incidental thereto. MSME registration is optional but it has several benefits as well. AMITA DESAI & CO. 21 April 2019 98
MSMEs play a crucial role in any country by generating employment, promoting entrepreneurship and earning foreign exchange. Acknowledging the contribution of MSME , Government had enacted The Micro, Small and Medium Enterprises Development Act, 2006, providing various initiatives towards boosting entrepreneurship, investment and growth of this sector . AMITA DESAI & CO. 21 April 2019 99
However MSMEs face the maximum problem in raising finance due to : (a) Lack of collateral, (b) Lack of trust due to their weak economic base, (c) Cost of funding is high as loan can be availed from unorganised sector, (d) Process is time consuming AMITA DESAI & CO. 21 April 2019 100
Recommend
More recommend
