Format of disclosure under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
1. The disclosure as required by The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 is required to be made in the annual Financial Statements of the entity wherever such Financial Statements are required to be audited under any law.
2. Accordingly you need to attach MSME disclosure to LLP form 08 if you are liable for audit under LLP Act. Attached herewith format of MSME disclosure for ease reference.
3. Similar disclosure also required in the financial statements of the company as per notification no G.S.R. 679(E) dated 04th September 2015.
4.Do not simply attach or insert blank disclosure if you have outstanding dues to MSME. Disclose whatever is applicable in your case as per your records. As if incase your vendor file case against you for outstanding payment and your books not having such disclosure it may lead to levy of penalties.
5.Most of the cases it has been seen in the financial statement ” management doe not have data about status of the vendor”. Kindly don’t write simply before checking msme status on invoice summited by the vendor. As nowadays MSME number is written on invoice itself (though not mandatory).
6. Management should also sought information from vendors about MSME status on yearly / or at the time of vendor registration.
MSME disclosure format:
Disclosures required under the Micro, Small &
Medium Development Act, 2006
We undersigned, Designated Partner of XXXXX SOLUTIONS LLP, hereby disclosing as under:
| Sr No | Particulars | Amount (Rs) |
|---|---|---|
| 1 | Amount remaining unpaid to any supplier as at the end of accounting year on account of: | |
| Principal amount | 0.00/- | |
| Interest due | 0.00/- | |
| 2 | Total interest paid on all delayed payments during the year under the provisions of the Act; | 0.00/- |
| 3 | The amount of interest due and payable for the period (Where the principal has been paid but interest under the MSMED Act, 2006 not paid); | 0.00/- |
| 4 | The amount of interest accrued and remaining unpaid at the end of the accounting year; | 0.00/- |
| 5 | The amount of further interest due and payable even in the succeeding year, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under section 23 of MSMED Act 2006. | 0.00/- |
