The Ministry of Micro, Small and Medium Enterprises, through Notification No. S.O. 1376(E), dated 25th March 2025, has mandated all companies procuring goods or services from Micro and Small Enterprises (MSEs) to submit a half-yearly return to the Ministry of Corporate Affairs (MCA) if payments exceed 45 days from the date of acceptance or deemed acceptance. This directive, issued under F. No. 16/8/2018/E-P&G/Policy, is signed by Dr. Rajneesh, Additional Secretary and Development Commissioner.
To address the persistent issue of delayed payments, the directive enforces financial discipline, improves liquidity for MSEs, and strengthens the overall business ecosystem. All companies dealing with MSEs must track their payment cycles and comply with the reporting requirements to avoid regulatory scrutiny.
Compliance Requirements:
Applicability: Covers all companies procuring goods or services from MSEs (excludes medium enterprises).
Filing Trigger: If payments exceed 45 days from the date of acceptance or deemed acceptance.
Details to Report:
Outstanding payment amounts due to MSEs.
Reasons for payment delays.
Filing Frequency: Biannual submission to the MCA.
Business Implications:
Regulatory Scrutiny: Non-compliance may lead to penalties and legal consequences.
Operational Adjustments: Companies must implement strong monitoring systems to track MSE payments.
Financial Planning: Timely payments will help businesses maintain better relationships with suppliers and ensure smoother cash flow.
Companies should proactively manage their obligations, ensuring compliance with the MCA directive to mitigate risks and foster responsible corporate governance.
