Page 10 - MSME BULLETIN 2022 .indd

,
VO
V
IN
MSME & ST
MS
MSME & START-UP BULLETIN, VOLUME 1, ISSUE 1, AUGUST 2022
OLUME 1, ISSUE 1, AUGUST 2022
IS
SU
E
,
LU
ME
1
S
-U
-UP BULLETIN, V
RT
P
BU
LL
ET
ART
E
E
ME
E
TA
S
&
1,
T
US
2
20
2
A
G
UG
well as other schemes related to de- numerous measures under Atmanirbhar
sign, intellectual property rights and Bharat Abhiyan. The measures include Rs
marketing scheme. 20,000 crore subordinate debt for MSMEs
and Rs 50,000 crore equity infusion through
The Covid-19 pandemic affected the entire

MSME funds of funds.
country’s economy, with the MSME sector
being the worst hit. The sector suffered The rationalization of taxes and duties (for

the most in ensuring business continuity, various products from steel and alloys to
challenged by severe liquidity crunch and garments and leather) favours domestic
dipping demand. Amidst the crisis, it’s manufacturers and will further boost the
the government’s consideration for the sector to support the slogan of vocal for
stressed sector that has provided much local to global.
impetus for the MSMEs. The government is
already reviving the economy by promoting The opportunities available in the form
indigenous manufacturing through various of government fi nancing, restructuring
incentive schemes. One of the key schemes of their loans, availment of rehabilitation
packages by RBI government or alternative
is PLI Scheme which is attracting global
players to set up manufacturing units in business ideas must be used by MSMEs
India to become an important part of the optimally. Here arises the need for Cost and
supply chain system. banks were exempted Management Accountants (CMAs). The role
to maintain cash reserve ratio for the loans of CMAs in helping the MSMEs navigate
through the obstacles of high fixed cost, low

disbursed from January 1 to October 31 2021

to first time MSME borrowers. Furthermore, credit worthiness, risk of bankruptcy etc.
RBI has also allowed Non-Banking Financial In the new era of disruptive technologies,
Companies (NBFCs) to avail bank funding Indian MSME are in a paradoxical situation
under Targeted Long Term Repo Operations as they want to improve the quality of
the products/services to ensure customer
(TLTRO) to promote incremental lending
and push revival of stressed sectors. Under delight. It is evident that in the quest for
the scheme, NBFCs will be able to provide excellence, MSME must adopt better quality

a credit lifeline to financially drying MSMEs. enhancement and sustainment strategies
these measures will helped make funds to take advantage of the new era, which in
turn will ensure their survival in the global
more readily available for MSMEs. The
Union Budget 2021-2022 brought relief market. Cost and Management Accounting

to the capital-starved MSMEs, with the offers a spectrum of tools and techniques
government infusing Rs 15,700 crore for for performance management and to ensure
the sector. The decision to incentivize the competitiveness with the help of MBO,
Balanced Scorecard, HR Cost accounting
incorporation of One Person Companies

(OPCs) in the budget will feed the MSME method. Effective deployment of the
ecosystem. To push for faster resolution management accounting techniques will
of cases, the government has sought assure the MSMEs with reduced operational
to strengthen NCLT framework while cost, decreased process variability,
enhanced business competitiveness and
announcing the introduction of alternate
methods of debt resolution, such as via enhanced customer satisfaction. The
e-courts and special framework for MSMEs. intricate methods of Target Costing,
The government had already initiated process costing and standard costing can
10
di
d
u
u
10 10 The Institute of Cost Accountants of Indiaa
a
nt
o
ts
f
f
In
an
d
a
n
n
ns
I
t
tu
ti
T The Institute of Cost Accountants of India
T
T
I
he
he
te
A
st
Co
ou
cc
cc
o
o
o
Co

f