“Delayed Payment is a major problem in East zone”: FOSMI

FOSMI’s objective is to facilitate industrial development mainly in the micro and small sectors. FOSMI represents the interests of its
members through collective efforts. It has regular dialogues and exchange of views with various Government and Semi-Government organizations, Financial Institutions, Banks, Promotional Agencies
and others connected to the MSME Sector. FOSMI has representations on the following Committees and Boards, where it’s representatives voice the problems and promote the cause of the MSME sector.

DK Mohta, Ex-President, Federation of Small and Medium Industries, West Bengal

In a SMB gathering in Kolkata Ex-President of Federation of Small and Medium Industries, West Bengal DK Mohta, in an interaction with PC Quest talks about association deeds and present scenario of the market.

Tell us about FOSMI and how it is helping SMBs in Kolkata?
We are one of the major association in Kolkata for small scale industries and we have 27 affiliated associations with us and we are mainly representing the problem of the small scale sector through the various agencies which are concerned with this sector. We are now holding number of programs, seminars. For example the hottest topic now is GST for this we have organized quite a number of programs. Next new thing is lean manufacturing for which we have designed two clusters. We have been instrumental in that, and then that zero defect, zero effect all the government programs we try to make aware our members about all the government programs. And whenever they have any problems we stand with them.
Anyone can be a member of FOSMI, we have all sorts of trade members in our organization. It doesn’t caters to one or particular commodity it is for all the manufacturers. And because now the enterprise is also added so we are also welcoming them in our association as a member.

What are the plans ahead for FOSMI?
The plan is to work for traders community. We are going to serve our people by all means. We will raise there issues and take it to the right platform. We are also working with state government to provide helping hands to our members for this we are opening help centers at various places.

What is Insolvency &
Bankruptcy Code, 2016
— The Code highlights insolvency processes
for individuals, companies and
partnership firms. It may be noted that,
under IBC debtor and creditor both can
start ‘recovery’ proceedings against
each other.
— Companies have to complete the entire
insolvency exercise within 180 days under
IBC. The deadline may be extended
if the creditors do not raise objections
on the extension.
— For smaller companies including startups
with an annual turnover of Rs 1
crore the whole exercise of insolvency
must be completed in 90 days and the
deadline can be extended by 45 days.
— Insolvency and Bankruptcy Board of
India has been appointed as a regulator
and it can oversee these proceedings.
IBBI has 10 members; from Finance
Ministry and Law Ministry the Reserve
Bank of India.
— IBC permits hiring services of licensed
professionals who have total control
over assets of debtor while the proceedings
are going on at a tribunal.
— Two tribunals have been authorised
to resolve insolvency issues and pronounce
their judgement on them. One
is National Company Law Tribunal for
companies and the other Debt Recovery
Tribunal for individuals.

What are the challenges that SMB faces here in Kolkata?
Here challenges are too many. Delayed payment is one of them, because of the wagon industry being here, most of the clients delay the payments. It becomes major problem despite of facilitation center being there but it is not effective as should be. But thanks to the Insolvency and Bankruptcy Code 2016, which is helping us to tackle debt issues. Further GST is still a major affair for us, but we are supporting it as it is a good step from government in the long run. Another matter is to be technology sound. We are insisting our members in every gathering to develop on technology front. If we do not run along with newer technology; doing business will be difficult and we will fail in future.