Women Entrepreneurship Schemes in India

 

We keep on talking on Women Empowerment initiatives to create a hype in our thought process, but logically not making them avail existing easy funding mechanism to fulfil their dream of getting really empowered. In USA 41.8% of all businesses are owned by women, alongwith 46.8% female labour force participation. Irrespective of all these schemes by Indian government, women comprise only 14% of the total entrepreneurs in India, with only 9.32% female labour force participation. We are hereunder summarising few of Government and Banking schemes to provide venture funding for women. Bring this awareness to make Nari Shakti on entrepreneurial platforms:

(1). Women Entrepreneurship Platform (WEP):

Mentorship, network, funding, skill training, Incubation, and acceleration program offered by NITI Ayog for women to support in their entrepreneurship journey.

Upasana Taku(MobiKwik) received support from WEP, their current valuation is ~₹5700 Cr.

Kavita Shukla(FRESHGLOW Co) received support from WEP, now has customers in over 35 countries.

Shradha Sharma(YourStory) received support from WEP, is one of the leading media platforms for entrepreneurs.

Radhika Aggarwal(ShopClues) received support from WEP, their current valuation is ~₹1,000 Cr.

(2). Mahila Udyam Nidhi Yojana

MUNY Offers loans upto 10 lakh to be repaid in 10 years for supporting women entrepreneurs to set up a new MSME / SME scale venture. It is offered by Punjab National Bank and Small Industries Development Bank of India (SIDBI) and the rate of interest better than prevailing in the market.

(3). Bharathiya Mahila Bank Business Loan

This scheme offer loans up to ₹20 crores to female entrepreneurs looking to start a manufacturing business. Ease of collateral free loan upto certain amount is big attraction of this scheme. The Bharatiya Mahila Bank merged with the State Bank of India, the loan programme is still active.

(4). Dena Shakti Scheme

Offers loans upto ₹20 lakhs at an interest rate 0.25% below the base rate for building a business in sectors like Partnership firm, business, Retail stores, Manufacturing sector, Microcredit organisations, Housing, Education, etc.

(5). Stree Shakti Yojana

Offers loans upto 20 lakh for industrial sectors such as housing, retail, and education. Also allows women to avail of an interest concession of 0.05% on loans more than Rs. 2 lakh.

(6). Stand-Up India Scheme

This initiative offers composite loans between 10 lakh and upto 1 Crore to women in SC/ST categories.

Kanika Tekriwal started JetSetGo with this initiative, their current valuation is ~₹100 Cr.

Rashmi Daga started FreshMenu with this initiative, their current valuation is ~₹210 Cr.

(7). Mudra Yojana Scheme

MYS offers loans of ₹50,000 to ₹10 lakh and ideal for setting up beauty salons, starting a small shop, home-based business, or starting your dream company.

Shanti Mohan started LetsVenture with this initiative, their current valuation is ~₹270 Cr.

Ananya Jain started Chai Break with this initiative, their current valuation is ~₹50 Cr.

Dream of Indian government of USD 10 Trillion$ economy in the next 10 years can happen true only if women contribute desired portion of per capital income with men. Wish all these initiatives bring women on a new horizon, with ease of funding and strengthen your entrepreneurial dreams to come true, and wish good luck to all the incredible women, who are making this world a better place to live.

Disclaimer : This is purely a knowledge sharing article, not offering or influencing any deal or transaction or investments.

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

Financial Independence and Retire Early - F.I.R.E.

This isn’t another one about Buffett’s wisdom on investing or life. It is about the relationship between time, health and money using Buffett’s wealth and age as clickbait. The author begins with “Would you rather have $0 and be 20 years old, or have $100 billion and be 90? Most people respond to this hypothetical with a resounding “Of course not, there’s no amount of money I would take to fast-forward to being 90 years old.””

“There’s a popular movement called F.I.R.E. (Financial Independence, Retire Early), where followers are devoted to living as frugally as possible so that they can retire as early as possible. While I agree with a lot of the merits of F.I.R.E. (namely the F.I. part), I disagree with the R.E. part. Retiring 10 years early at the expense of a considerable portion of one of the most valuable periods of life (your 20s/30s) seems absurd. 

For one, what is 10 years in the grand scheme of your life? On the back end, the last 10 years are almost negligible (besides, you don’t know if you’re going to live to 90 or 100 anyways). But on the front end, they’re considerably more valuable.

Secondly, work can (and should) be a large part of what drives fulfillment. Progress with whatever we're pursuing (whether we call it work or not) is one of the key drivers of happiness, so we shouldn't discount the value of work and its impact on our overall well-being.

Would you give up 10 years on the tail end of your life if it meant that you would have a more fulfilling 20s/30s? I think most of us would take that rather than the opposite — optimizing solely for wealth early-on to get an extra 10 years of retirement at the end.”

Buffett and Munger are perhaps the best example of deriving fulfilment from their work well into their 90s.

He then ties health, time and money together:

“Certain experiences that require peak physical health might only be possible in the 20s and 30s phase. For example, say you want to run your fastest marathon, or you’re like these two friends, Phil and Carter, and you want to journey from Beijing to Barcelona by bike. Sure, no one needs to do these things, but they’re experiences that would be incredibly enriching and novel.

And sometimes, physical health isn’t the constraint. If you have children, they will only live with you for 18 years of their lives, and before you know it, they’re gone. Any experiences you want to have with your kids, you have a limited time window to do those things. So, it makes sense that at this phase (the roughly 20 year period where you have children at home), most people would find the greatest fulfillment by optimizing for time spent with their kids — earning those experience points while that window exists.

A bonus of having richer experiences earlier in life is that you not only get experience points, but these early experiences pay “memory dividends” in the value of the stories they create — stories that can be retold time and time again.

Experiences yield dividends because we humans have memory. We don’t start every day with a blank brain… We wake up every morning preloaded with a bunch of memories that we can access at any time.

When you add in this concept of a memory dividend to the net fulfillment equation, something becomes clear: it pays to invest in experiences early.

Compounding works not only with money, but also with experiences.”

The author concludes with some brilliant graphic illustrations on why ‘Net Fulfilment’ over ‘Net Worth’ is a better pursuit in life.

Disclaimer : This is purely a knowledge sharing article, not offering or influencing any deal or transaction or investments.

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

Why Willful Defaulters are laughing away from Banks ??

New RBI data shows wilful defaulters are laughing all the way away from banks

The saying goes if you owe the bank $100 that is your problem; if you owe the bank $100 million, that's the bank's problem.

Banks put all their might to get the money back from retail borrowers if they default on a car or an auto loan. Delay one instalment and banks come knocking on the door. They even resort to naming and shaming tactics, using third parties. The tactics seem to work in most cases and the borrower pays back.

But it is an entirely different game when it comes to corporate loan default, which is at a much bigger scale. Banks seem to forget their drill when faced with powerful defaulters, who have a battery of lawyers which drag the lenders from court to court for years on end. And in the end, banks have little to show by way of recovery.

The numbers game...Ugly numbers are already popping up. The Reserve Bank of India data, shared with Parliament, on December 19 shows that the country’s top 50 "wilful defaulters" owed Rs 92,570 crore to Indian banks as of March 31, 2022.

Wilful defaulters are those borrowers who have the means to pay back the banks but wouldn't do so. Banks ostracise such defaulters from the financial system. Gitanjali Gems, promoted by fugitive economic offender Mehul Choksi, tops the list with Rs 7,848 crore, followed by Era Infra, an exposure of Rs 5,879 crore and Rei Agro which has defaulted on loans worth Rs 4,803 crore.

Choksi, said to be an Antiguan citizen now, is beyond the reach of Indian law. The government and its several law enforcement agencies have, so far, failed to lay hands on any of the high-profile bank defaulters, which include former liquor baron Vijay Mallya, Winsome Diamonds & Jewellery promoter Jatin Mehta and Choksi’s nephew Nirav Modi, who is fighting his extradition from the UK.

But it’s not just about wilful defaults. Much of the Rs 10 lakh crore loan that banks wrote off in the last five financial years belongs to corporates.

Of the total loan write-off, banks could recover only a fraction—around Rs one lakh crore. The remaining Rs 9 lakh crore is as good as gone, though technically the process of recovery is always on.

It’s our money

Every rupee that a bank writes off has to be provided for—called provisioning in the bankspeak.

Banks' profitability thus takes a hit. Who are the real losers? Common shareholders and depositors. Banks are supposed to be the guardians of public money. They raise deposits from small and big depositors and use these to lend to businesses.

So whenever a loan is not repaid, it’s the shareholder of the banks (value erosion) and the depositors (as the bank turns weaker in terms of capital and profitability) who suffer.

The government has, time and again, reiterated its intent to clamp down on wilful defaulters.

Coordinated action by the government, RBI and other sector regulators is critical to tackling wilful defaulters as seen in the Kingfisher case.

Banks are sitting ducks for cronies and crooks. In most cases, banks haven’t made meaningful progress in the recovery from deep-pocketed and well-connected promoters. At the end of a long legal process, the value of underlying assets deteriorates and banks are left empty-handed.

The government’s intervention to speed up the recovery process is equally critical since each penny it feeds to state-run banks from the exchequer is public money.

A lot of ground needs to be covered and quickly, as the loan write-off and wilful defaulter numbers show. Do the government and the RBI have the will to clamp down on wilful defaulters?

(extracts of newspapers)

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

The Power of Money & Happiness Index

#Down_to_earth_&_very_practical_approach_to_happiness_with_Money

(Life experience, as written by a #youngest_billionaire at 26 yrs.)

Some of you may already know that I travel around the world pretty frequently, having to visit and conduct meets at my offices in Malaysia , Indonesia , Thailand and China. I am in the airport almost every other week so I get to bump into many people who have read my books.

Recently, someone came up to me on a plane to KL and looked rather shocked. He asked, 'How come a millionaire like you is traveling economy?' My reply was, 'That's why I am a millionaire. ' He still looked pretty confused.

This again confirms that greatest lie ever told about wealth (which I wrote about in my latest book 'Secrets of Self-Made Millionaires').

#Many people have been brainwashed to think that millionaires have to wear Gucci, Hugo Boss, Rolex, and sit on first class in air travel. This is why so many people never become rich #because the moment they earn more money, they think that it is only natural that they spend more, putting them back to square one.

#The truth is that most self-made millionaires are frugal and only spend on what is necessary and of value. That is why they are able to accumulate and multiply their wealth so much faster.

Over the last 7 years, I have saved about 80% of my income while today I save only about 60% (because I have my wife, mother in law, 2 maids, 2 kids, etc. to support). Still, it is way above most people who save 10% of their income (if they are lucky).

I refuse to buy a first class ticket or to buy a $300 shirt because I think that it is a complete waste of money. #However, I happily pay $1,300 to send my 2-year old daughter to Julia Gabriel Speech and Drama without thinking twice.

When I joined the YEO, a few years back (YEO is an exclusive club open to those who are under 40 and make over $1m a year in their own business), I discovered that those who were self-made thought like me. Many of them with net worth well over $5 m, #travelled economy class and some even drove Toyotas and Nissans, not Audis, Mercs, BMWs..

I noticed that it was only those who never had to work hard to build their own wealth (there were also a few ministers' and tycoons' sons in the club) who spent like there was no tomorrow. Somehow, #when you did not have to build everything from scratch, you do not really value money. #This is precisely the reason why a family's wealth (no matter how much) rarely lasts past the third generation.

#Thank_God_my_rich_dad foresaw this terrible possibility and refused to give me a cent to start my business.

Then some people ask me, 'What is the point in making so much money if you don't enjoy it?' 

#The thing is that I don't really find happiness in buying branded clothes, jewellery or sitting first class. Even if buying something makes me happy it is only for a while, it does not last.

#Material happiness never lasts, it just gives you a quick fix. After a while you feel lousy again and have to buy the next thing which you think will make you happy. I always think that if you need material things to make you happy, then you live a pretty sad and unfulfilled life..

#Instead, What makes me happy is........when I see my children laughing and playing and learning so fast. 

What makes me happy is when I see my companies and teams reaching more and more people every year in so many more countries.

What makes me really happy is when I read all the emails from people touched and inspired someone's life.

What makes me really happy is reading all your wonderful posts about how this blog is inspiring you. #This_happiness_makes me feel really good for a long time, much much more than what a Rolex would do for me.

I think the point I want to put across is that #happiness_must_come_from doing your life's work (be it teaching, building homes, designing, trading, winning tournaments etc.) and the money that comes is only a by-product.

#keep_sharing_this_with the children, and make them read this article, every year to follow....

Disclaimer : This is purely a knowledge sharing article, not offering or influencing any deal or transaction or investments.

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

Indian Women in Saving and Investment Economy

One fine day, I was asked a perplexing question,

Why do Indian women play no role in savings and investments ?????

I replied it's not true and following will be sufficient enough to prove my views :-

Women in their inimitable manner, have played an important role on the savings front in Indian households. This is a popular misconception, because women's investment choices are possibly more traditional. Being wired differently than men, women place great importance on factors like safety and tangibility, which amply reflect in their saving & investing preferences.

##GOLD, most of the yellow metals in Indian homes is purchased and owned by women. Even the gold inherited, reflects women's choices, rooted in our society since time inmemorial. No wonder, how Indian household own enough gold to meet America's requirement for next 100 years. You will notice the emotive appeal of every gold loan advertisement, is always directed towards a female gender. This asset has helped finance and mushroom many small and medium businesses across the country. These precious assets are powerful hedging instrument that women safeguard for helping economy in business.

##PROPERTY, DIAMONDS, same is the case with property, diamonds, art and collectibles, which are investable assets of measurable value. The likes of Cryptos / Bitcoins have a long way to go before they can earn a ladies trust as lifetime asset creation.

##FIXED INCOME INSTRUMENTS, when it comes to fixed income, I bet most of the post office deposits and Kisan Vikas Patra instruments are driven by women savings.

##CASH is actually queen !! Women are adept at best cash management. All will agree that during demonetisation in India, most cash was deposited by the woman members of the family.

##SHARES, coming to Equities, there is a big difference between low participation and no participation by women. But this too is changing.....It is heartening to note that indian study found that proportion of women equity investors too have grown from 16 % to 24% in just last two years in India stock markets.

##INTANGIBLE ASSETS, last but not the least are the intangible assets. Our little kids are the most precious assets to us. Need not to be mentioned, who plays the pivotal role in nurturing our future generations for individual, or for the nation.

Is there a need for more equal opportunity ?? 

Yes, But no one can deny the immeasurable role women play in our finances, saving economy and our overall life.

HAPPY WOMEN'S DAY !!

Disclaimer : This is purely a knowledge sharing article, not offering or influencing any deal or transaction or investments.

CA Yogesh Birla

Director
Birla WP Management Co.
read my blogs : www.YogeshBirlaCA.Blogspot.com

Why so few Indian's pay Income-Tax..... an Insight

Very few Indians pay Income-Tax. Do Indian’s evade taxes and hide their incomes is the popular notion?? But this is a big myth….. Are taxes very high in India? or is the widening ambit of GST creating such an impression... a global comparison shows there are many countries where rates of indirect tax and personal income tax are much higher, but exemption slab system is different.

According to the latest Income tax rules laid out by the Finance Minister in her Union budget, only people earning more than Rs 5 lakh will effectively pay Income tax. According to the government’s Economic Survey of 2020, India’s per capita income is Rs 1.4 lakh. The average Indian earns Rs 1.4 lakh a year. We know the income tax threshold limit is Rs 5 lakh.  Now, how many Indians earn more than Rs 5 lakh to qualify to pay income tax ? Which means, the average Indian is not required to pay any Income tax.

Lets make a global assessment and look at other countries. The average American, who “earns the same as America’s per capita income”, has to pay 22% Income tax. Similarly, the average Chinese pays 10%, the average Mexican pays 15%, the average German pays 14%. Almost every other country has an Income tax limit, that is below the average income of it’s people. Only India and Bangladesh have Income tax limits that are much higher than the average income.

Data shows India’s taxpayer’s inequality, we estimate that only 3% of working Indians earn, three times the average per capita income. (That is, only 3% of Indians earn more than Rs 5 lakh.) This is comparable to other countries>> Only 5% of Americans earn 3 times their average income, 4% of British and roughly 3% of Chinese. This proves that only 3% of Indians are even qualified to pay income tax. Hence India has a very low income tax base.

So, if we believe India’s GDP, economic, and income data, possibility may be that there are tax evaders and black money holders in India. Even if money out of tax net is used to buy goods, gold, real estate, and other things; this is then captured in GDP data and reflected in the per-capita income in coming years. It is not possible that millions of people have hidden cash for many years without ever using them and keeping this money out of circulation. Even if they did, it gets reflected in RBI’s money supply data. This myth that India has a low income tax base, because millions of Indians hide their income has led to some catastrophic decisions and created a climate of dis-trust and suspicion of citizens by the income tax department.

India has very few taxpayers, not because millions of them are hiding their incomes and evading taxes. It is because India’s income tax structure is designed in a way that brings only small percentage of people to pay Income-Tax. So, it is evident that, millions of people are not hiding their incomes in a secret corner, but because for a poor country such as India, the income tax basic exemption limit is high and so automatically most of Indians fall out of the tax bracket, hence creating a burden on higher earning Individuals or Corporates.

contributed by :

CA Yogesh Birla

Director
Birla WP Management
visit us at : www.YogeshBirlaCA.Blogspot.com

Atma-Nirbhar Bharat Rojgar Yojna…. Emerging India

Government of India on 9^thDecember, 2020 approved INR 22,810 crore outlay for the Atma-Nirbhar Bharat Rojgar Yojna (ABRY), which aims at encouraging businesses to do new recruitments amid the Covid pandemic and restrengthen business and industries. Considering to boost employment in formal sector and incentivise creation of new employment opportunities during the covid recovery phase, it has approved an expenditure of INR 1,584 crore for the current financial year and INR 22,810 crore for the entire scheme period for year 2020 - 2023. Under this scheme, the Government will provide :-

• Subsidy for 2 years in respect of new employees engaged on or after 1^stOctober,2020 and upto 30^thJune,2021.

• The government will pay both 12% employee’s contribution and 12% employer’s contribution ie. 24% basic wages towards employees provident fund, in respect of new employees in establishments employing upto 1,000 employees for 2 years in this scheme.

• However, the government will pay only employee’s share of EPF contribution ie. 12% of wages in respect of new employees in establishments employing more than 1,000 employees for two years.
• An employee drawing a monthly wage of less than INR 15,000 who has not working in a any establishment registered with the EPF organisation before 1^stOctober2020, and did not have a universal account number or EPF member account number, prior to 1^stOctober2020, will be eligible for the benefit.

• Any EPFO member possessing universal account number, drawing a monthly wage of less than INR 15,000 who exited employment during covid pandemic from 1^stMarch,2020 to 30^thSeptmber,2020 and did not join employment in any EPFO covered establishment upto 30^thSeptember,2020 will also be eligible to avail the benefit.

• The EPFO will credit the contribution in Aadhar seeded account of members in an electronic manner.

• Then EPFO will develop software for this scheme and also develop a procedure which shall be transparent and accountable, it will work out the modality to ensure that there is no overlapping of benefit provided under the ABRY with any other scheme implemented the by the EPFO.

Welcoming this step, Business and Industry houses are hopeful to give benefit of this scheme to lakhs of workers beneficieries, affected during covid pandemic and working to make out growing economy to turn new milestones. Lets work towards an Emerging India…… 

contributed by :

CA Yogesh Birla

Director
Birla WP Management
visit us at : www.YogeshBirlaCA.Blogspot.com

नकद भुगतान एवं आयकर कानून

भारतीय आयकर अधिनियम की धारा 40 ए (3) के तहत प्रत्येक व्यक्ति, एकल स्वामित्व फर्म, पार्टनरशिप फर्म और कम्पनी द्वारा किसी भी व्यावसायिक खर्च या माल खरीद के सम्बन्ध में एक दिन में एक व्यक्ति को 10,000/- दस हज़ार से अधिक नकद या बेयरर चेक से भुगतान करने पर आय की गणना करते समय उक्त खर्च या खरीद की कोई छूट नहीं मिलेगी (कुछ विशिष्ट परिस्थितियों व् कृषि सम्बन्धी मामलों को छोड़कर) और ट्रक भाड़े के सम्बन्ध में दस हज़ार की जगह 35,000/- रुपये तक के नकद भुगतान की छूट है | 

🖋️इस सम्बन्ध में विशेष ध्यान देने योग्य बात ये है कि कुछ करदाताओं द्वारा अपनी आय को कम करने के उद्देश्य से 10,000/- दस हज़ार से ज्यादा नकद भुगतान किये गए खर्चों को प्रतिदिन 10,000/- से कम दिखाकर बुक्स ऑफ़ एकाउंट्स में प्रविष्टि कर दी जाती है जिससे इनकी छूट मिल सके लेकिन उक्त नकद खर्चों को टुकड़ों में दिखाना 01/04/2020 से आपको इससे भी बड़ी परेशानी में डाल सकता है क्योंकि धारा 271 एएडी के तहत बही खातों में गलत प्रविष्टि करने पर 100% की पेनल्टी लग सकती है

कई मामलों में खरीद या खर्चों के बिल जो कि दस हज़ार से ज्यादा के होते हैं और करदाता द्वारा उक्त पूरे बिल का भुगतान नकद में किया जाता है लेकिन बिना किसी सबूत के अर्थात अलग अलग तारिख की प्राप्ति रसीद या अकाउंट कन्फर्मेशन), नकद भुगतान को अलग अलग तारीखों में 10 हज़ार से कम दिखाकर उक्त खर्चों की छूट ले ली जाती है और सामान्यतया ऑडिट के दौरान भी उक्त खर्चों को केवल सेल्फ मेड वाउचर के आधार पर allow कर दिया जाता है|

🖋️इसके अतिरिक्त कुछ करदाता वेतन, किराये व् अन्य मासिक खर्चों का भुगतान प्रतिमाह 10,000 से ज्यादा होने पर माह में एक से अधिक बार भुगतान दिखा देते हैं लेकिन उचित प्रमाण / रसीद के बिना उक्त खर्चों को साबित करना मुश्किल हो सकता है|

🖋️उपरोक्त परिस्थिति में 10 हज़ार से कम भुगतान साबित नहीं होने पर आयकर विभाग द्वारा धारा 40 ए (3) के तहत पूरा खर्चा DISALLOW करने के साथ साथ धारा 271 एएडी के तहत बही खातों में गलत प्रविष्टि करने पर 100% अमाउंट की पेनल्टी भी लग सकती है, अतः बिना उचित दस्तावेजी सबूतों के 10 हज़ार से अधिक के बिलों का बहीखातों में टुकड़ों में प्रविष्टि करने से बचें और 10 हज़ार से ज्यादा के बिलों का भुगतान बैंकिंग चैनल के माध्यम से ही करें  ।

सीए. योगेश बिड़ला

Written by :

CA Yogesh Birla

Director
Birla WP Management
visit us at : www.YogeshBirlaCA.Blogspot.com

नया कृषि बिल 2020

1 - किसानो को सरकारी समर्थन मूल्य लागू रहेगा । 

2 - इसके अलावा किसान समर्थन मूल्य से अधिक देने पर दूसरे व्यापारी और उधोगपति को भी फसल बेचने को स्वतंत्र होगा । 

3 - कृषि खरीद मंडी समाप्त ।

4 - पहले किसानो को अनिवार्य रूप से फसल इस मंडी के रजिस्टर्ड दलालो ( जैसे किसी पार्टी के नेता- कार्यकर्ता ही होते थे ) उनको ही बेचना अनिवार्य था । अब यह बिचौलिए दलाल समाप्त ।     

5 - पहले विभिन्न प्रकार के टैक्स किसानो को ही भरने पडते थे अब फसल खरीदने वाले को देना होगा ।

5 - किसान को अपने राज्य मे ही फसल भेजने की अनिवार्यता से मुक्ति मिल गई है । अब किसान अधिक मुल्य मिलने पर दूसरे शहर / राज्य में भी बेच सकता है । 

6- अगर किसान की फसल कोई नही खरीद रहा है तो किसान न्यूनतम सरकारी समर्थन मूल्य पर सरकार को बेच सकता है ।

7 - इस कानून के अनुसार अब सरकार और व्यापारी को तीन दिन के अंदर किसानो को पैसा देना अनिवार्य होगा । 

8 - किसानो को अब अपने फसल के लिए कोर्ट का चक्कर नही लगाना होगा । क्षेत्र का SDM ही व्यापारी से पैसा किसान को दिला देगा । 

Written by :

CA Yogesh Birla

Director
Birla WP Management
visit us at : www.YogeshBirlaCA.Blogspot.com

Digital Strategies for Emerging Indian Industries

Corona times taught many new aspects of doing business digitally. Its said that god has created good, in every bad event. Covid period shall be considered as adaptive time curve; wherein business owners tried to adopt digital operating and marketing strategies to work from home. Unlike mass marketing, which raise interest of local audience by means of radio spots, newspapers and other direct marketing tools; digital marketing allows companies to nurture a more personal relationship with their consumers from all over the world. With digital marketing, businesses can deliver contents to their customers through personalized and cost-effective communication. Birla WP Management team has prepared following decision matrix for clients to take decision on digital marketing strategies:

1. Track and Measure Data instantly gives your business a better idea of how your marketing campaign if faring. Using these tools, not only can you can make statistical assessment of your campaign, but also illustrate the progress of your marketing campaign in detailed graphics, which send running trend message to all management layers.

2. Impact Assessment shall be done on periodic basis by business owners to grow your traffic, leads, sales and conversions of enquiry to revenue / turnover. Without the ability to measure exact impact on targeted customers, you cannot alter or modify strengths of your products.

3. Quick and Convenient Service Tools to enhance product presence; wherein your digital presence shall start from showing product capabilities to end user and shall remain available till after sale service.

4. Lowest Cost Marketing is biggest benefit to be derived from digital marketing. Digitally it appeal directly to consumer and remain alive for longer duration than print media or other shout media. Cost of per impression or cost of per customer acquisition is lowest in digital media.

5. Demographic Targeting can be easily controlled in digital marketing; wherein you can restrict geographical area of your digital campaign and reduce cost. In facebook, insta, twitter, whatsapp, youtube media, many tools available to filter your customer targets, based on geography, habits, spending capacity, season, reach, fashion etc.

6. Data Bank creation for permanent use by industries and businesses. Transaction thru digital mode allow you to collect basic customer data to enhance sales and build brand goodwill on repetitive basis. Data is fuel to run digital marketing tools, wherein you can filter data and appeal harder to end consumer.

7. Instant Transaction Services is biggest advantage to reduce cost of working capital. Executing transactions is easy and instant on digital payment services, since no need to handle physical cash or time taking bank clearing floats etc. A single click can fetch you fund flow and inventory management.

8. Ability to Multitask is another big advantage of digital marketing. Making faq and viral them digitally may save precious time of your marketing team. At the same time data generated from past purchases, can be used for generating new sales. Data of one product and type of customer can be used to sale another product with same set of customers. All these digital campaigns are matter of a single click, without the risk of diminished satisfaction.

Selection of proper digital marketing strategy is continuous cost-benefit analysis by your business advisors; wherein it can reduce cost of interest, better use of working capital, generate more sales with same infrastructure, reduce inventories, reduce payment float etc. Author of the article may be contacted for expert advise, with deep rooted matrix assessment. Be digitally innovative......new digital world is waiting for your business to roll smoother and be front runner for value creation.

Written by :

CA Yogesh Birla

Director
Birla WP Management
visit us at : www.YogeshBirlaCA.Blogspot.com

Liquidity Booster for Domestic Industries by Government

In current scenario, maximum of MSME industries have arrived on a juncture facing big black wall, with no more funds to pump into industries. Hearing this voice, Central Government has come out with certain measures to pump liquidity into market and ease of tax compliance and filings, as detailed below:

MSME Step-1 - 20% top-up loan, on existing outstanding loan to be provided. It will not call additional colletoral, but will be covered with existing security with lenders to MSME. Those MSME having Loan upto 25crs and turnover upto 100crs will be covered in this scheme. This loan will be provided for 4 Years with a moratorium of 12 Months from availement.

MSME Step-2-  Rs. 20,000Crs will be infused as Subordinate Debt for stressed MSME thru CGTSME Trust. Government is also creating a master Fund of Fund, with infusion of  50,000crs as equity to standard and regulated MSME. It will help them to expand their capacities with less paperwork.

MSME Step-3- Definition of MSME changed has been changed with additional classification based on turnover limits (earlier it was based on investment limits). Different between manufacturing and service SME is removed. This will bring turnover limitation to micro industries, wherein their existence will be in controlled environment and boost will be for small industries categories. Wherein Atmanirbhar Bharat needed more secured environment for micro industries.

MSME Step-4- Government has provided secured domestic market to domestic industries; wherein it has banned Global Tender system upto Rs. 200 Crs Government procurement. This will provide boost to msme industries, wherein they will not have to face competition from global players and will get oxygen to survive in front of MNCs and larger corporate. Along with it, Government has also directed to clear all central government outstanding to msme, within 45 days to pump more liquidity to msme.

Labour law and EPF Step - EPF contribution was paid by Government for Covid times, March, April and May 2020. Now this payment support has been extended by another 3 Months, wherein 12%+12% contribution will be paid by Government of India.  Further employer contribution has been reduced from 12% to 10% for those organisation having more than 100 employee registered.

NBFC, MFI, HFC Step - Special Rs. 30,000crs Liquidity window will be given and government will buy debt papers of these institutions even if the same with rating as investment grade. These will be fully guaranteed by Government of India. Further government to provide Rs. 45,000 crs Liquidity to NBFC with this scheme; wherein first 20% Loss will be born by Govt of India. Even unrated papers will get money under this scheme.

Discom Liquidity Steps - Discom are not able to pay the power generation Companies, hence Rs. 90,000crs Special fund created to pay all outstanding of Power Generation Companies; wherein they will be funded thru PFC and REC.

Infra-Contractors Step – Considering lockdown non working period, government has provided an automatic extension of 6 Month to all Govt contractors of Railways, Roads, Other departments. Govt Agencies will also partially release Bank Guarantees to the extent of work completed. It’s a big step to build additional bidding networth capabilities and saving from liquidated damages and penalties.

Real-estate Industry Step - Covid19 shall be treated as act of God, using the Force Major Clause their project registration will be extended by 6 Month automatically; wherein Completion dates of existing projects to be extended automatically by 6 Months by Government authorities. It will be like providing oxygen to realestate segment, already in ventilator stage.

Direct Tax Related Step – for assessment year 2020-21, Government has extended Income Tax Return filing date to 30 November, 2020 (from existing 31^st July, 2020), tax audit date also extended to 31^st October 2020. Government has also reduced Non Salaried TDS and TCS rates by 25%, from existing slab rates. This will be effective from 14^th May 2020 will remain valid till 31^st march,2021. Further Government has directed to issue all pending refunds upto 5 Lakhs to assesses immediately.

If all these steps used with more digital mechanism, ease of business practices and opening of markets for msme, then only AtmaNirbhar Bharat can be thought of with motivated and dedicated Entrepreneurs.

Written by :

CA Yogesh Birla

Director
Birla WP Management
visit us at : www.YogeshBirlaCA.Blogspot.com