The Institute of Chartered Accountants of India (ICAI) issued a Press Release on September 4th, 2020, in which it talked about how the MSMEs should reboot so that it can fit in this Covid-19 pandemic situation and for this ICAI issued a “BUSINESS CONTINUITY CHECKLIST” for the MSMEs to help out these enterprises.
ICAI said in its press release, “COVID 19 pandemic has posed an unprecedented challenging situation and an existential crisis before the entire mankind. The global economic outlook for the current year is subdued on account of the pandemic that has led economies to face the situation of deceleration of growth or recession. The Indian economy is no exception to this economic fallout.”
ICAI also talked about the Prime Minister Narendra Modi’s ‘AtmaNirbhar Bharat’ clarion call which he made in the times of economic shock from the COVID19 pandemic, so that it could help in the start of a golden era where India can make the fundamental transformation towards becoming a net exporter. Since the leadership has identified the medium, small, and micro-enterprise (MSME) sector as the rock on which the self-reliant dream is built, this shift too can be led by such players. One such assistance can be the role that small and medium professionals (SMPs) can play in terms of providing mentorship and support to MSME firms.
Further, in addition to the launch of MSME Mentorship programme, the Institute of Chartered Accountants of India (ICAI) has issued an “MSME Business Continuity Checklist” providing information on the number of factors that require special attention by the management of MSME which can guide their initiative to face this tough time.
Also, ICAI informed that there are a substantial number of Chartered Accountants spread across the country who are practicing as Small and Medium Professionals (SMPs). Over 3.20 lakh members strong Chartered Accountants community has a deep reach and connect to the MSMEs sector as SMPs are the trusted financial advisor of MSMEs providing a variety of services including project financing, working capital management, asset management, export promotions advice, budgetary forecasts, financial modelling, preparing standard operating procedures, assessing the design and operative effectiveness of internal controls besides regular accounting, auditing and taxation services.
Also the President of ICAI CA. Atul Kumar Gupta said, “ With the above objective in mind, the Institute of Chartered Accountants of India (ICAI) as true ‘Partner in Nation Building’ has thought it fit to have an independent analysis and come out with a model for sustainability of MSME. In the “MSME Business Continuity Checklist,” we have focused on a number of factors that require special attention by the management of MSME which can guide their initiative to face this tough time.”
He further added, “Keeping in mind that there would be specific situations for specific stakeholders, the checklist has been made generic in nature, rather than specific to any industry or legal body. Users should use their own experience or consult a professional if needed.”
The checklist issued by ICAI will serve the purpose of various research initiatives and guidance to MSME for enabling them to continue and contribute to building the Nation and be AtmaNirbhar. The ICAI MSME checklist can be accessed through- https://www.icai.org/resource/60380msme-business.pdf
With Warm Regards,