: AEPC welcomes change in investment valuation for MSMEs #FinanceIndia #StockMarketNEWS AEPC welcomes change in investment valuation for MSMEs New Delhi, Aug 25 (KNN) Apparel Export Promotion Council

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AEPC welcomes change in investment valuation for MSMEs #FinanceIndia #StockMarketNEWS
AEPC welcomes change in investment valuation for MSMEs New Delhi, Aug 25 (KNN) Apparel Export Promotion Council (AEPC) has welcomed the change in the accounting practice related to calculation of investment in Micro, Small and Medium Enterprises (MSMEs).

While thanking Reserve Bank of Indias (RBI) Governor Shaktikanta Das for bringing this change, AEPC chairman Dr A Sakthivel on Monday said, It will help in expanding the sector by around 20 per cent.

“I thank the RBI Governor for instructing the banks to account for the written down value of the plant and machinery in an enterprise instead of taking the original purchase price for calculating the total investment for the purpose of classification as MSMEs. With this, around 20 per cent more enterprises will come within the fold of MSME,” Dr Sakthivel added.

On Friday, the RBI came out with a notification asking the banks to account for written down value of plant and machinery or equipment and not the acquisition or original price, which was applicable in the earlier classification criteria. This will enable more enterprises to avail the MSME benefits.

The Chairman, in a letter to the RBI Governor, also thanked him for another important measure. The extension of the Validity of Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAMs) of the MSMEs obtained till June 30 2020 to March 31, 2021 will enable MSMEs to avail Covid-related benefits for a longer period.

These benefits have accrued to the sector primarily because of the revised classification of the MSME criteria as announced by the MSME Ministry in June 2020, he said.

“I am positive that these measures will help in mitigating the suffering of the Apparel Exporting Industry and the millions of our workers, for which we are indeed obliged. I assure our full support to realise the dream of the Prime Minister of a self-reliant India,” Dr Sakthivel added.

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