23
Jan
2019
Companies told to disclose dues to MSMEs
Sources told TOI that the ministry of corporate affairs is expected to notify the rules over the next few days, specifying that disclosures have to made to the registrar of companies within 30 days.
NEW DELHI: The government is mandating disclosure for all companies that have arrears to micro, small and medium enterprises (MSMEs) for over 45 days in its latest attempt to increase transparency and improve the liquidity crunch faced by the employment-intensive sector that has a large share of manufacturing activity in the country.
Sources told TOI that the ministry of corporate affairs is expected to notify the rules over the next few days, specifying that disclosures have to made to the registrar of companies within 30 days.
In future, every company with unpaid bills to MSME units will have to make half-year disclosures with end of the specified period. “The rules are in line with what is prescribed in the law governing MSME sector. It is being implemented now to put pressure on companies to pay up,” said government sources.
The law provides for an agreement between sellers and buyers and binds it to payment within 45 days. If the buyer fails to settle the dues, it is liable to pay compound interest to the supplier on the amount from the appointed day, or on the date agreed on, at three times of the Bank Rate as notified by the Reserve Bank of India (RBI).
