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Financial Benefits to MSMEs – Decoded In the Present situation of COVID-19, All businesses are suffering be it small or big. MSMEs plays a vital role in the economy of our country, as they contribute maximum of the GDP, create maximum employment, and generate maximum capital for the country. The government also understands this well and very serious and comes forward to help the MSMEs for meeting their day to day bills, paying salaries, buying raw material, running and maintenance expenses of machineries and so on. The Government offered Scheme of Rs.3 Lacs Crores as Collateral Free Automatic loans to the MSMEs to kick start the economy. The Government will also facilitate the provision of Rs. 20,000 crore as subordinate debt for stressed MSMEs and a Rs 50,000 crore equity infusion for MSMEs through Fund of Funds. The Government also took the opportunity to change the definition of MSMEs in the country. These Loans will be for the period of 4 yrs with a moratorium period of 12 months, which means MSMEs can pay only interest for the period of the first 12 months and after that EMI for 36 months will start. There will be 100% Credit guarantee cover to Banks and NBFCs on Principle and Interest and the scheme can be availed till 31st October, 2020. Borrowers with up to Rs 25 crore outstanding and Rs 100 crore turnover are eligible to take the benefit of Collateral Free loans upto  20% of the loan outstanding as on 29.02.2020, subject to maximum of Rs.5 crs per unit. But it will be the discretion of Banks and NBFCs to assess before giving any new loan. To support Self-Reliant India and Make in India concept, Government declared that the Government tenders upto Rs. 200 crs will be given only to Indian businessmen to avoid unnecessary and unfair competition with the global players. Other measures for MSMEs, the e-market linkage for MSMEs will be promoted to act as a replacement for trade fairs and exhibitions. MSME receivables from Government and CPSEs will be released in 45 days. The Government is making all efforts for the revival of economy and businessmen should also give their 100 % for the fast recovery of Economy and take advantage of Global business in the current situation, as Government is promoting MSMEs for the export of Goods and Services and become a global player. Regards, CS Amit Kumar Jain Finance Consultant Mentor Corporate Services Pvt Ltd.

New Year Resolution Since Childhood we are learning that we should start the New Year by making some New Year Resolution for the betterment in life and to start some long-pending and new habit in life. Law of Attraction says that we can get whatever we want in life….. be it Love, Happiness, Good Health, lots of Wealth, Power, Good Relationship, Happy family life, Successful Professional life, etc, etc. and thatswhy we take New Year Resolution to invite the same in our life. The only thing that we have to do is…. Start Thinking of our desires and give 100% for the achievement of those desires. Those who can dream can achieve also. We can achieve anything if we start believing in that and get focused on that. When we desire something strongly, the whole Cosmos makes efforts for bringing the same to us. So start thinking big and ask Cosmos for bringing the same to you and all your desires will be fulfilled for sure. Have Good New Year Resolution not only for your own development, but also for the development of society and mankind as a whole, like we will do at least 5 GOOD WORK every day, will make some DONATION every day, will HELP at least 5 people every day, will SPREAD POSITIVITY, HAPPINESS AND LOVE every day etc. Have A Blasting year ahead. Happy & Succesful New Year 2021. Regards, CS Amit Kumar Jain Finance Consultant Mentor Corporate Services Pvt Ltd. Cell: 09425373231

Economic Inclusion Vs Financial Inclusion Not only Financial Inclusion, there should be Economic Inclusion of the whole population. Every Citizen is although already a part of the Economy as manufacturer, trader, or consumer, but they are included in the economy incidentally and not willfully and actually not contributing anything to the economy. Every Citizen, who is earning should be encouraged to file Income Tax Returns (ITRs), make legitimate wealth, bring that wealth into the economic system, get that wealth rotated in the system, which will definitely increase his own wealth and the wealth of the country. Income Tax and Other Tax Authorities should work not only as Income Tax Assessor or Revenue Assessor or Tax Collection Authority for the purpose of collecting tax, but should also work as Statistical department to keep the data of income and revenue generation even without collecting tax, which will increase the per-capita income, consumption pattern, and rotation of money in the economy. Financial Inclusion will seem elusive unless there is a proper Economic Inclusion of the population. A proper Awareness program should be conducted for the awareness of Economic inclusion, benefits of filing of ITRs, and other taxes like GST, Excise, etc, should be circulated and informed to the common public. CA/CS/CMA, Tax Consultants should be encouraged for filing maximum ITRs, Tax collections, proper compliances, etc. So that they will also help in Economic development and Economic Inclusion. Regards, CS Amit Kumar Jain Finance Consultant Mentor Corporate Services Pvt Ltd Email: csamitkjain@gmail.com Cell: 09425373231

 Economic Development of Bhopal We have seen and experienced exponential economic growth in  Few Cities, while others are going at a slow speed. I am a proud resident of Bhopal, the Capital of Madhya Pradesh, the City of lakes, but experienced slow economic growth in the city. What are the reasons for slow growth? Is the Government not paying proper attention? Is there any territorial problem? OR  Zeal or Willingness of Bhopali’s to grow economically? If we look at the history of the city, it’s State Capital, the majority of the population belongs to service class people, who are generally happy in their fixed monthly income and used to spend life in the fixed economic frame, and generally not willing or thinking of any big financial growth. They are satisfied people and happy in their fixed routine life. Another reason may be the “Nawabi LifeStyle” of the residents, where the day starts at 12am, and economic activities start at 2pm, when half of the working day for the economic world has passed away. We should think deeply for the Economic growth of the City. It is the willingness of the residents of the city which brings economic growth to the city. We have to be more disciplined for the growth of business, should start looking for new opportunities, and should try to spread the market / products. We have to come out from the Comfort Zone, and look out into the world. We can ask and demand for good Industrial/ Commercial Infrastructure from the Government. We have a logistic advantage in the city as we are located in the heart of the country, and sooner or later, every Company will start its manufacturing in Bhopal because of logistic advantage. We should come forward for the Industrial Development in our city and should try to enter into the manufacturing sector, which will create employment, business and other economic development in the city. And the most important thing, We should first start feeling proud of being “Bhopali”, and should have the feeling of giving back to the city. Regards, CS Amit Kumar Jain Finance Consultant Mentor Corporate Services Pvt Ltd Cell: 09425373231 EMail: csamitkjain@gmail.com

Day to Day Financial Management of Business  Day to Day Financial Management of Business Since Childhood we are listening that Financial Management is most important in managing domestic or business life. Finance Management is not only understanding the Profit & Loss of the business or reading the Balance Sheet of the business, it is far beyond that. If we talk about the Debt Financing (Loans) or Equity financing, we need to understand it well, before raising funds from any of the form.  Both Debt and Equity Financing have its pros and cons. Raising funds through Equity financing forced you to share the control on the business with No fixed interest cost, on the other hand Debt Financing is having fixed interest cost but liberty in doing business and implement your dreams and concept. There are many financial products available in the market both in Fund based and Non-Fund based. Businessmen have to take its wise decision while choosing the right product for its business needs. Sometimes Businessmen feels proud that lots of Bankers comes to my office/ shop to give me loan, but actually they are selling there own products as they are actually the marketing personnel of the Banks/NBFCs and they are selling their product irrespective of your need and requirement. When you need working capital finance, they may convince and give you term loan, which is not your actual need or vice versa. So Businessmen should take advise from Expert Finance Consultant advise before taking any loan, otherwise business will get trapped in wrong financial product. So taking any finance without the advise of Finance Consultant / Expert is like taking the medicines from Chemist for the chronic disease. Be Vigilant….. Be Aware…… Regards, CS Amit Kumar Jain Finance Consultant Mentor Corporate Services Pvt Ltd Email: csamitkjain@gmail.com Cell: 09425373231

CREDIT GUARANTEE FUND TRUST FOR MICRO AND SMALL ENTERPRISES (CGTMSE) MSME enterprises are the backbone of any economy and are an engine of economic growth, promoting equitable development for all. Therefore, to promote and develop MSMEs; the Government of Madhya Pradesh facilitates promotion and development of enterprises through many incentives, schemes and subsidies. Micro Small and Medium Enterprises (MSMEs) are crucial for the economic growth and stability of any country and play a vital role especially for developing countries as they facilitate economic activity and provide employment thus contributing to poverty reduction. INTRODUCTION Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) set up for giving wings to entrepreneurial zeal of millions of youth of this great country who are having bankable business ideas but lack collateral security and / or third party guarantee to access credit from formal source like Banks/NBFCs. CGTMSE extends them helping hand by providing guarantee to enable them access credit leading to setting up viable micro and small enterprises. Thereby transforming them from job seekers to job providers and meaningfully contribute in nation building. OBJECTIVE Availability of bank credit without the hassles of collaterals / third party guarantees would be a major source of support to the first-generation entrepreneurs to realise their dream of setting up a unit of their own Micro and Small Enterprise (MSE). Keeping this objective in view, Ministry of Micro, Small & Medium Enterprises (MSME), Government of India launched Credit Guarantee Scheme (CGS) so as to strengthen credit delivery system and facilitate flow of credit to the MSE sector. To operationalise the scheme, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). CGTMSE has introduced a new “Hybrid Security” product allowing guarantee cover for the portion of credit facility not covered by collateral security. In the partial collateral security model, the Lending Institutions will be allowed to obtain collateral security for a part of the credit facility, whereas the remaining part of the credit facility, up to a maximum of Rs.500 lakh, can be covered under Credit Guarantee Scheme of CGTMSE. CGTMSE will, however, have pari-passu charge on the primary security as well as on the collateral security provided by the borrower for the credit facility. The other objective is that the lender availing guarantee facility should endeavor to give composite credit to the borrowers so that the borrowers obtain both term loan and working capital facilities from a single agency. The Credit Guarantee scheme (CGS) seeks to reassure the lender that, in the event of MSE unit, which availed collateral free credit facilities, fails to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 50/75/80/85 per cent of the credit facility. CREDIT GUARANTEE Any collateral / third party guarantee free credit facility (both fund as well as non-fund based) extended by eligible institutions, to new as well as existing Micro and Small Enterprise, including Service Enterprises, with a maximum credit cap of Rs.500 lakh (Rupees Five Hundred lakhs only) are eligible to be covered. Recently, guarantee coverage made eligible to select NBFCs and Small Finance banks. The guarantee cover available under the scheme is to the extent of 50%/ 75% / 80% & 85% of the sanctioned amount of the credit facility. The extent of guarantee cover is 85% for micro enterprises for credit up to 5 lakh. The extent of guarantee cover is 50% of the sanctioned amount of the credit facility for credit from 10 lakh to 100 lakh per MSE borrower for retail trade activity. The extent of guarantee cover is 80% (i)           Micro and Small Enterprises operated and/or owned by women; and (ii)         all credits/loans in the North East Region (NER) for credit facilities upto Rs.50 lakhs. In case of default, Trust settles the claim up to 75% of the amount in default of the credit facility extended by the lending institution for credit facilities upto Rs.500 lakhs. (iii)        MSE Retail Trade : 50% of the amount in default subject to a maximum of  Rs.50 lakhs. The lender should cover the eligible credit facilities as soon as they are sanctioned. In any case, the lender should apply for guarantee cover in respect of eligible credits sanctioned in one calendar quarter latest by end of subsequent calendar quarter. Guarantee will commence from the date of payment of guarantee fee and shall run through the agreed tenure of the term credit in case of term loans / composite loans and for a period of 5 years where working capital facilities alone are extended to borrowers, or for such period as may be specified by the Guarantee Trust in this behalf. ELIGIBLE ACTIVITY 1.   Manufacturing 2.   Service 3.   Retail Trade (Upto 50% maximum Rs.50 Lacs) Note: Self Help Groups and Agriculture activities are Ineligible for this scheme. INTEREST RATES Interest rates charged as per RBI Guidelines are eligible for coverage under the Scheme. WHO ARE ELIGIBLE MSME units such as Individuals / Proprietorship, LLP, Partnership, Private Limited Company or registered company are eligible to be covered under the scheme.  IS CGTMSE FEES CHARGED EVERY YEAR ? Yes CGTMSE is charged every year. IS CGTMSE FEE REFUNDABLE? In case of pre-closure / request for refund, refund of proportionate annual guarantee fee (GF/AGF/ASF) will be allowed only where closure is marked in CGTMSE system/refund requested is within 3 months from the date of receipt of fee by CGTMSE. LIMIT OF LOAN AMOUNT Manufacturing Unit: The loan amount of Rs.1 lac to Rs.500 lacs will be given for the manufacturing units. Trading and Service Sector: The loan amount of Rs.1 lac to Rs.50 lacs will be given for the Retail trading and service sector units. ELIGIBLE BANKS Businessmen can apply to all Public/ Private Sector Banks and Regional Gramin Banks which are registered as Member Lending Institutions (MLI) with CGTMSE. DOCUMENTS REQUIRED? ·       Aadhaar Card of Proprietor / Director/ Promoter. ·       PAN of the Proprietor / Partnership /Private Limited Company / Public Limited Company /LLP/ etc ·       Business Address Proof. ·       Shop Act Registration/ Partnership Deed/ MoA and AoA. ·       Last 3 yrs Income Tax Returns.