Micro and Small Enterprises (MSEs) play a pivotal role in the Indian economy. MSEs contribute a significant percentage to the country’s Gross Domestic Product (GDP) as well as employ a sizeable portion of the country’s total population, particularly belonging to the informal sector. Despite their significant contributions to the economy, one of the key challenges faced by such entities relates to the inadequate availability of funds, primarily due to delayed realisation of dues from the buyers.
Introduction
Over the years, numerous instances have come to light of delayed payments to MSEs, thereby affecting their overall financial stability. In order to address these issues, the Government has introduced several measures to enable timely realisation of dues to the MSEs. These include:
Recently, the Ministry of Corporate Affairs (MCA) issued the Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Amendment Order, 2024 (‘the Amendment Order 2024’), thereby amending the Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019 (‘the erstwhile order’).
In this issue of the First Notes, we aim to provide an overview of the key changes introduced by MCA through the Amendment Order 2024.
MCA amends order regarding information about payments to MSE suppliers
This issue of the First Notes aims to provide an overview of the key changes introduced by MCA through the amendment order 2024.
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