MSME (medium, Small and Micro Enterprise) registration process and benefit



Hi
This request came from a friend so I decided to put it on this blog so many can get the benefit. 

What is MSME
MSME stands for Micro, Small and Medium Enterprise both in knowledge sector and production section.
In knowledge sector/ service sector: a micro enterprise is an organization with 10 lakhs of the investment, a small organization is with investment in equipment of less than 2 crore and a medium enterprise is one which has less than 5 crore investment in equipments.

In factories/ industries where production happens: a micro enterprise is one with investment in machinery of less than Rs. 25 lakhs, a small enterprise is something which has investment of less than Rs. 5 crore and a medium enterprise is something which has investment in machinery of less than Rs. 10 crore





Benefits of MSME registration
It is not necessary to do MSME registration, however, once registered you can get many benefits.
These benefits are under MSMED Act. It also gives more value to the lenders.
Here are few of the benefits:
1.       Easy sanction of loan due to government’s direction to bank on priority sector lending (agriculture, small and medium enterprise, startups etc.)
2.       Lower rate of interest as per the RBI and government directives.
3.       Excise exemption in certain state
4.       Lower stamp duty (such as in IT SEZ park in Maharashtra)
5.       Benefit of other packages declared by state and union government time to time.

From where to register:
You may do it free in the Indiafillings website:
What are the Documents to be submitted along with Filing of Entrepreneurs Memorandum?
Following documents need to be submitted while filing EM:
   •          Self-certified copy of Power of Attorney/Board Resolution /Society Resolution, wherever applicable, while signing as Partner/Managing Director or Authorized Person.
   •          Certified /notarized copy of the Partnership Deed/Memorandum of association /Articles of Association in case of Medium Enterprises.

4. What are the applicability criteria and procedure for Filing of Entrepreneur Memorandum?
Answer:
   •          Filling of memorandum is optional for all Micro and Small Enterprises.
   •          Filling of memorandum is optional for service sector medium enterprises
   •          Filling of memorandum is mandatory for manufacturing sector medium enterprises.
   •          A unit can apply for PRC for any item that does not require industrial license which means items listed in Schedule-III and items not listed in Schedule-I or Schedule-II of the licencing Exemption Notification. Units employing less than 50/100 workers with/without power can apply for registration even for those items included in Schedule-II.
   •          Unit applies for Provisional Registration in prescribed application form. No field enquiry is done and Provisional Registration Certificate (PRC) is issued.
   •          Once the unit commences production, it has to apply for permanent registration on the prescribed form

6.       What is the Validity of Registration Certificate granted?
Answer: Provisional registration is valid for a period of 2 years from the date of its Issue. In case Unit is not set up during two years, applicant may apply afresh and obtain a new provisional registration.
Permanent registration is granted for perpetuity.

7.       Can MSME Registration be revoked?
Answer: A Micro, small and medium Enterprises can violate the regulations in the following ways which will make it liable for de-registration:
   •          It crosses the investment limits.
   •          It starts manufacturing any new item or items that require an industrial license or other kind of statutory license.
   •          It does not satisfy the condition of being owned, controlled or being a subsidiary of any other industrial undertaking.

From where can I get more details about the scheme?


Governing a social enterprise issue and new perspective




Good evening friends.

Today, there are many NGOs, not for profit and social organisation exist. The prominent issue is governing of these organisation. Whether it is a society and Registration of Societies Act 1860. a public trust under Bombay Public Trust Act 1950 or not for profit company. Once founded, many issues arises such as founders want to have a strong hold over this, trustees are inactive or only trustees are working but others not working and so on. Taken from a highly experienced person's session, following is a good read if you are already part of an organisation or going to form an organisation.


3 things(3As) are very important Access Accountability and advocacy for any social organisation.


The board has to develop internal accountability management through MIS system, how they will verify by interacting with committees of the board members. Can have internal audits. This is possible when an organisation have financial accountability. This is a control mechanism. It is very important to have access of internal and external information. They have to know what is happening outside their own organsiation. What government regulations are happening, how other things are changing.



What is 7S of strategy? At the beginning of an organisation, apply the 7S.



The job of the board is advocacy because they are face of the organisation. When you have access to information then only you can act better.


How to let your organisation?

Come out of founder's syndrome and develop second line of leadership.
Lack of second line of leadership in a social organisation

Why there is no second line of development of leadership, it is due to founder's syndrome. In this, the founder want to hold power and control.
Vijay Mahajan from Basix is a best example a person who strategise avoiding founder's syndrome. He formed organisations and just left that completely once it completely developed.To avoid founder's syndrome just don't stick to one organisation, go complete out of it. Not even as a consultant.

Second is sharing power: Don't hold power only with you or only with the management trustee. Share it with your executive committee.


What an NGO board i.e. board of trustee or corporate board i.e. board of directors?
Board and its function: what is board: It is a governing body. A board of director is a body of elcted people. It is as per by laws of such trust , society and it is there because law mandates it. It should be properly defined in the by laws.


What should be the board size and mix: The board should be 5 to 12 board. They should be from different back ground from technical and non technical. The board has to be resourceful. They should be from different background to have diverse background and thinking.

example is Sahara India foundation which have maximum member from bollywood which is notb good. Take people who have knolwedge, time and very good network in board. Majlis has mix people in the board.
Why board is required for NGO?: Control, directionb, it is mandatory by law (most important). Because law want somebody responsible. Board also help in funds and to promote organisation's mission. Even it also supervises.



How you raise board trust? Mostly known people and people introduced each other, funders , founder members, expert in th field (class feedback) from maam's ppt: Self referral, Beneficairies, family, friends, colleges, place of works, donors suggstion etc. In the company it is based on the nomination committee. Company law makes it mandatory to have this. They shortlist from the people available. If you are in a board you cannot be in the board of competitors. In NGOs it doesn't happen. Sometime, the trustees pass information to competitive NGOs. Sometime NGOs do this because they want the person
Please check whether there is confidentiality clause for the board once they are in and out as a trustee or as a director.


Thumberule is take board member should be from financially sound/ stable background so they will not be greedy. It is assumption, rich can also be corrupt. Another reason is if you are economically sound, you have better networking and fund will be easier. Save the children has all affluent people in the board such as Sabira Merchant, Sunil Shetty. Management trustee decides.


What does the board does : Startup board focuses in compliance. When board member themselves work are calledf working board. The first is compliance and things are working. The board has to be evaluated on the basis. The board meeting has to meet at least once in a month and they should have short term goal. The result will encourage them to move ahead.


What type of responsibilities a 4 years old board have: It depends. They may go for strategic planning.
Sooner the board has to have delegate. They cannot work as an employee forever.
Read article for next meeting.


What about board 7 years old what they do? They should decide what you want, you want to be a policy maker or show runner. Slowly, you should move in policy making role and let staff work indepedently. Salam Bombay foundation has good supervision and working as a policy maker. They do not do micro level management with executive committee.


Board functions: These are: vision and mission , forming structure and authority whether a startup board or a matured board. Selecting CEO and Statutory auditors as it grows. Forming policies for organisation guide CEO and staff
3 duties from the law for trustees: Care, Loyalty and Obedience (consisntecy with the objective) when you do survey for your project, ask question related to this. When you do beyond these, you are in ethical domain. Law is bare minimum. Go and visit credibility alliance. The whole case against Cyrus Mistry is based on these 3 factors.
Samvedna: As a founder member, do you allow your working team to grow. Samvedna had depenedancy on founder.
Everybody has different level of working in the organisation. Someone may be passionate, someone else will be logical.
A well known education trust running university has taken Retired Income Tax Commissioner to deal with the taxation issue and Parle Chairman who is a financial wizard and has good network.



What is the boars structure: Chairperson/ President, Vice President or Vice Chairperson, Secretary, Treasurer, Committees.
There is no lifespan in trust act for trustees but in the company one can be director maximum for 9 years. You have to incorporate this in your bylaws.
A well known social organisation's has office bearers by membership who has meeting every Saturday. They are different from trustees. Trustees elect chair person.



What is the role of president/ chairperson and vice : coordinate the work and planning, managing people on board, whether work is getting accomplished and who tights control in the organisation, commuication between trust and exeuctive director who is leader of the staff. Both equation has to be good unless organisation gets affected. Example of corporate foundation which has different agenda. CEO disagreed to carry out the agenda related to land acquisition. This is due to CEO being ethical. This discrepancy is more with bigger organisation. Unilever foundation, equal opportunity organisation board wanted more men, more male hiring decision.



One minute manager , read the book.


Vice president- to assist the president and handle office when president is absent. You can decide a broad role for your office bearers.


Past president or chairperson: Sharing experience, helping in cotinuity, helping present president in role, recruitment, orientation and development, chairing nominating committee, handholding in the initial phase
Secretary: Responsible for all legal compliance, sometime nore powerful than the president. Responsible for board's records



Treasurer: Looking finance. a tresurer should have knowledge (not degree) of working finance. Chairs finance committees. Don't hire anybody as a trasurer. See what practical finance knowledge they have.




What are the types of boards: Family (patriarchal in nature, more meeting, less conflict, better control over the assets provides physical and material support, affection among the members, ). It is helpful in the formative stage but creates conflict later. As it grows, new staff finds the trustees incompetent, they know weakness of trustees so may misuse too. Under FCRA and CSR such boards are not appreciated. Family trust will not be good in compliance. When you want to join an NGO, find out family involvement in the trust.




Invisible Boards: The board which is not active except the founders, staff have never met the trustees. Advantage: Least control, fast decision making. Disadvantage is poor governance.


Staff board: Staff in the board either current staff form NGO or NGO appoint staff in the board. Example Kamani Trust. A well known institute (lecturers1, readers 1, professor 2 for 3 years). It helps in building good rapport. Disadvantage, sometime staff treat this as grievance. Solution: Agenda in advance. Lack of fresh perspective as staff is lower in position and may want to avoid.


Professional board: Funded by venture capitalist, formed by like minded people. they first work and they register when they are confident. They see some amount of corpus is there. The board is professional being run like organisation. Term is not permanent, fixed but has performance appraisal.



If you are a trustee and you are not there in meeting, e voting and skype meeting is allowed via skype.
Sponsorship is preferred over donations by the corporates.



Should board members have job description: The first purpose orient them aboout their individual roles and responsibilities, clarifying expectations, encourage accountability and to promote efficiency. Define position level whether president or anything else. Define service term. Vodafone, Barclays have external people to evaluate board members. it should have benefit (non financial), medical benefit.




How many committees are there in your organisation ? In companies it is CSR, nomination, risk management committees it is not mandatory for NGOs. an NGO can have disciplinary committee other popular committees are fund raising committee, audit commitee (temple trusts). The board rattifies the decision of committee. Unfortunately we do not utilise the board members.



Role of the committees : Making recommendation, special tasks delegated by the board, operational function, grooming future board members. That includes strengthening operational function such as branding and compliance.


Type of other committees: Executive Committee, Finance or audit committee, risk committee, nomination committee, governance committee, programe committee, Ad-hoc committee.


The NGO is divided as board and executive. You can have same people in the board and executive in initial level or they can be different. You decide what you want.


That's all for today

Govind
Mumbai
November 30, 2016

MTHR Global HR conclave October 2016- Leadership lesson from sports and arts




If you are missing an MTHR Global event, you are missing something. Yesterday I met Sumita in Shine HR conclave in Mumbai. She is a senior HR professional in India's leading consumer MNC and we discussed in length about benefit of attending an HR event and how it supplement to your confidence, networking and growth. Similarly, met another old HR friend Rupal, who advocated attending HR conclave is a much better idea to enhance your knowledge and skills instead of spending heavy amount in certification. MDPs, EDPs from institutes like IIM, XLRI is nothing more than an incentive scheme to retain their professors and for corporates, to retain senior employees through networking and tag.
I have attended many MTHR Global event and each one of them is class in themselves. You get a different perspective every time. Sometime, you may wonder, really! HR has so many dimension? Business are functioning like this and so on. Sometime you will find an ex DCP talking about business, sometime, somebody from sports talking about business and even you will find Tom Alter, the legendary actor coming on stage and telling us what is personal touch in business and how call centre culture has killed that. In Whatever business you are, in whateverfunction you are, do not miss this opportunity. This is open for all thats why it is More Than HR Global. 
So friends, register now and enjoy the learning session.
This time, the topic is most relevant- Leadership lesson from sports and arts. Both sports and arts is subject to rigorous practice and discipline, its all about practicing for years and performing in few seconds or miliseconds.Speakers are not announced yet, but I am confident, most of them will do justice with the time you invest.

More Than HR Global
in association with
MIT School of Management
Presents
“Lessons in Leadership from Sports & Arts”
On Saturday, 8th Oct, 2016, 9am to 5pm
at MIT Campus, Paud Road, Kothrud, Pune
"Running a football team is no different than running any other kind of organization -an army, a political party or a business. The principles are the same. The object is to win!” - Vince Lombardi
MITSOM, Maharashtra’s leading Business School partners with MTHR Global to present an event like no other titled “Lessons in Leadership from Sports and Arts”.
Using vivid lessons and examples from spheres outside business organizations, this Event will explore the leader's role as a powerful influencer and teach the fundamental principles of successful leadership. Providing insights and principles about persuasive leadership from a broad range of human experiences, it will draw on examples of Practising organizational and other leaders and compelling leadership principles from the performing arts, the fine arts, literature, sport, adventure and so on. The Speakers will use their unconventional matter to explore themes such as moral leadership, toxic leadership, learning from failures, 'distributed' leadership, leading for results and the leader as a mentor and coach.
Participants can learn how:
-          Hard work beats talent when talent fails to do the hard work                     - The difference between possible and impossible lies in a person’s determination
-          To lead a Project from Start to Finish                                                                      - To Manage Dynamic People Effectively
-          To Ensure Total Accountability                                                                                   - To Implement Big Picture Thinking
-          To Remember gender equity                                                                                       - Everybody defines his or her own success
 Both business leaders and HR professionals should seize this opportunity to participate in this Event and help their organizations take full advantage of the learning.

Timings
Agenda
9:45 am - 10:10 am
Lighting of Lamp, Inauguration ceremony, Intro to MITSOM and its activities
10:10 am - 10:20 am
Intro to MTHR Global and Theme
10:20 am - 11:00 am
Lessons from the Arts: Tete-a-Tete with Meher Pudumjee, Chairperson, Thermax
11:00 am - 11:15 am
Tea & Networking Break
11:15 am - 12 noon
What I Learnt from Sailing: Rajeev Kher, CEO, Saraplast
12 noon - 1 pm
Expanding the Boundaries of Learning through Sports and Arts

Panel Discussion:

Shobha Pandey, Head - General Manager Talent Development, John Deere

Capt Anil Dhankher, Head - HR, Abu Dhabi Commercial Bank

Sharad Gangal, EVP - HR, Admin, IR, Thermax India

and others


1 pm - 2 pm
Lunch & Networking Break


2 pm - 3 pm
Leadership Lessons from Sports: Prakash Iyer, Leadership Coach, Speaker & Author
Former Managing Director – Kimberly Clark
3 pm - 4 pm
Talent Development through Lessons from Sports & Arts

Panel Discussion & Workshop:

Kavita Kulkarni, VP & Head - HR, Infosys

Pratima Salunkhe - Head HR - Raychem RPG Ltd

and others
4 pm - 4.15 pm
Vote of Thanks
4.15 pm onwards
High Tea & Networking 

About MITSOM Business School:
MIT School of Management (MITSOM) was established in 1987 to impart value based education in the field of management science with the aim of creating global leaders and entrepreneurs for the nation. MITSOM was conceptualised by Prof. Ganesh Rao which then grew from strength to strength. MITSOM has witnessed a phenomenal growth in terms of quality and quantity and is on a mission to be a among the Top 10 Management institutes in India.
Courses at MITSOM are designed to equip students and managers with skills to meet the challenges and opportunities of the Corporate world. MITSOM is not only a leading provider of advanced leading opportunities that strengthen leadership capabilities, but its value based learning model provides transformational experience that fosters professional, intellectual and personal development.
About MTHRG:
Mumbai based MTHR Global (More Than HR Global), a leading Knowledge Community Pan India since 2002 is a not for profit body which continues to bring you the best in Learning and Networking! It is powered by a group of 5 young HR Professionals loaded with over 45 years of experience of Old and New Economy Industries, who are armed with a passion for people and innovative ideas for HR and management. MTHR Global also created the MTHR Global CxO Forum which is India’s most active CHRO community today.
Knowledge Partner:       People & Management Magazine
Mobility Partner:             Deltecs
It’s an event not to be Missed!!!  So, block 8th October 2016 on your calendar and send your confirmation at the earliest!
The participants of this Event are over 500 Corporate professionals across Pune, Mumbai & other parts of India, comprising of Leaders and Influencers from HR and other functions.
Registration Process:
There is no cost of participation but prior registration and confirmation from our end is a must.
Please send your details to register@mthrglobal.com
NAME:
ORGANIZATION:
DESIGNATION:
YEARS OF EXPERIENCE:
DOMAIN OF ORGANIZATION:
EDUCATION:
E-MAIL ID:
MOBILE NO:

We are also arranging Buses from Pune. We are trying to arrange buses from Mumbai too (Will be confirmed shortly)
Please become a member of MTHR Global by registering at the Official Groups on Social Media and keep yourself updated on all MTHRG activities:
Linked in:            https://www.linkedin.com/groups/71249
Facebook:           https://www.facebook.com/groups/mthrglobal/   (New Official Group – please disassociate from the previous group)
Twitter               https://twitter.com/mthrglobal
Do Register for the event At the Earliest to avoid disappointment.
Co-Founders and  facilitators of MTHR Global
Rajesh Kamath, Rajesh Gupta, Vipul Agarwal & Keyur Jani

Please note that there are groups of people impersonating MTHR Global. Be aware of those groups and promoters.





Vipul Agarwal
Co-Founder | More Than HR Global & MTHRG CxO Forum | www.mthrglobal.com

Director | Zend Consulting Services | www.zcsindia.com

KonfidanT- an initiative of KIIT University to bridge gap between industry and academia

Good Morning.


While writing this article, I am enjoying weather and hospitality of Bhubaneswar. 


You may find few of my posts and articles sarcastic as I am a strong protester of the sect of who believe that only MBA and only tier 1 MBA school can produce good professionals. What worries me most is, most of the B school and students are of herd mentality and they are not producing the young professional required for business beyond excel sheets and presentations


I have been very sceptical about private universities in India and their racket of money minting through various degrees and malpractices. You may go through few of my articles in the past. 


When Ashish Gakrey (founder, HR Shapers) introduced  me to KISS and KIIT last year, it opened a new world for me- that there is an institute who truly work in the field of education and provide free education to almost 25000 tribal children from primary to doctoral level. Please read following article for more details




This year, I have been invited to mentor 10 MBA students (from second year) of Kalinga School Of Management (KSOM) and I could not refuse. I would have regretted if I would have missed this opportunity of collaborative and mutual learning. 


How it started?
Almost 16 HR professionals from Mumbai, Pune and Kolkata were invited to mentor students. Each mentor were assigned 10-12 students of MBA 2nd year of different specialisation. First, the mentors were briefed about overall process of extensive 2 days programme. They were assigned their respective teams and it started with Group Discussion followed by mock PI.


Institute's role
There was no canvassing and there was no sweet talk. The Director as well as Sanjay Muthal (who was responsible for driving the whole process along with Mr. Aniruddha Khekale, Group Director, Human Resource, India, Emerson) were very clear. Go ruthless on students, show no mercy and tell us where they are lacking. How many B schools open themselves like this in front of the corporate to tell what their B school is, where is the gap? The intention was to fill the gap and not to canvas it. 


The process
Each mentor spent 2 days in Group Discussion and Personal Interview of the students. They analysed the gap and in the closing meeting briefed the students the students with overall/individual Development Plans.


What was the outcome?
The overall student quality is as at par with the many B schools who are graded above than KIIT SOM and all the mentors were happy. Overall result was almost same and all the mentors along with a faculty mentor from the institute assigned the task to fill the gap. 


What about students
Students were amazing. I had a group of 10 students from marketing, finance, operation and HR. If given opportunity, I could immediately hire 2 of them. They were very good in terms of communication, presentation, knowledge, their leadership, team handling ability (judged through personal interview, GD and DISC). They were open for feedback. They were not arguing at all. We (the faculty mentor and I) planned IDP (Individual Development Plan) for them. Amazingly, few students added additional task based on the feedback given and that was really surprising. They are in the second year, already burdened with their work, yet, ready to go extra miles to fill the gap. I am sure any HR friend reading this blog will not regret if they hire from KIIT campus. One of the students, Sudeepta surprised me in many ways. Before the first meeting, she scanned my LinkedIn profile and asked several intelligent question including my different activities, initial career change and so one. That was really surprising. I had never been  asked such a quality question, not even in Mumbai. Talent is everywhere. You need to identify. 


What about the faculty?

Faculty were not defensive at all. To be very frank, without their support and open for criticism, the KonfidanT 2016 would not have been possible. Each professor was assigned to one industry mentors and these great gurus are: Prof. Braja Ballav Kar, Prof. Satya Narayan Mishra,Prof. Manvinder Singh, Prof. Buddhaditya Padhi, Prof. Jitendra Mohanty, Prof. Biswajit Pattnaik, Prof. Joydeep Biswas, Prof. Sradha Padhi, Prof. Manoj Kumar Jena, Prof. Abhishek Kumar, Prof. Subhra Patnaik , Prof. Arun Patra, Prof. Indirah Indibara, Prof. Arvind Tripathy, Prof. C. V. Kamesh, Prof. Bandana Dash, Prof. Jogendra Behera, Prof. Sumita Mishra, Prof. Saroj Routray, Prof. Surya Narayan mishra, Prof. Suva Kanta Mohanty, Prof. Joydeep Biswas, Prof. Ipsita Nayak, Prof. Ashok Kumar Sar and Prof. Sugato Tripathy. My co mentor was Professor Arvind Tripathy. He was such a great help. Wherever I was exceeding allotted time while interviewing, he managed to help me. Wherever I was not able to clear my expectation with students, he came to my rescue. All the professors are from diverse backgrounds, from institutes like IIM and XLRI and most importantly, they come with corporate experiences. They are passionate, they are visionaries and they are leaders.





What is next?
All the students have their individual development plan for next year and I am sure, in the next year most of them will be ready enough to get their dream job. KSOM has seen rough patches and good time with ever increasing placement and its reputation. I am sure this will emerge as a leader in business school not only in east India, but also at a national level. 

***
and here is Mr. SanjayMuthal who took the charge and is responsible for bringing all of us together. An excellent orator and a person with passion and commitment. 




Should you participate in this mentorship programme - KonfidanT?
Every HR should participate in this kind of programmes due to various reason. or alternatively  (Here are few reasons why no HR professional should miss the chance of being part of such kind of programmes) As an HR, we barely know the candidate beyond the CV. What we know is, through the resume and performance during the interview. That can be faked up easily. As a mentor, when you spend time with these beautiful minds you actually get to know about their strengths and weakness. You know their true quality and value. You can mould them, you can shape them and you can hire a right candidate and can bring right people to your organisation.

Most of all I count on the satisfaction of sculpting the clay & make a beautiful idol out of it. 

If you are interested to participate, please write to Rajan at kiitcr.dj@kiit.ac.in or Professor Manoj at manoj@ksom.ac.in 


Here is some of the memorable pic:

We, the mentors with super mentor Dr. Achyuta Samanta founder of KIIT University and KISS. It was a privilege to be with him. 



Professor Arvind Tripathy and I with my fabulous team, my mentees Abhishek, Answesha, Jyotirmoy, Sudipta, Dilip, Aleeva, Saswat, Sumit, Suraj and Sonalika Mohanty. 




Aniruddha Khekale, Group Director HR- India, Emerson with his team of mentee. (I am also his mentee, but missing from the picture :) ) They are lucky to have him as a mentor. 


and here is SanjayMuthal who took the charge and responsible for bringing all of us together. An excellent orator and a person with passion and commitment. 


Should you participate in this mentorship programme - KonfidanT?
Every HR should participate in this prograame due to various reason. As an HR, we barely know the candidate. What we know is, through the resume and performance during the interview. That can be faked up easily. As a mentor, when you spend time with these beautiful mind, you actually know their strength and weakness. you know their true quality and value. You can mould them, you can shape them and you can hire a right candidate and can bring right people to your organisation. If you are interested to participate, please write to Rajan at kiitcr.dj@kiit.ac.in or Professor Manoj at manoj@ksom.ac.in 

Govind
Bhubaneswar
July 25, 2016