Management Consultancy
Advisory support for MSME businesses — covering delayed payment guidance under the MSMED Act, profit optimisation practices, and awareness of government incentive and subsidy schemes.
What This Service Covers
Chartered Accountants in practice are permitted under Regulation 191 of the Chartered Accountants Regulations, 1988, to provide management consultancy and other specified advisory services alongside their core accounting, audit, and taxation work. At Shivbhavan & Associates, this advisory work focuses primarily on the needs of Micro, Small and Medium Enterprises (MSMEs) — a category of business that faces a distinct set of operational, financial, and regulatory challenges, and for which the MSME Development (MSMED) Act, 2006, provides a specific legal framework covering payment timelines, dispute resolution, and government support mechanisms.
Advisory engagements are structured around the specific challenges an MSME business is facing, whether that involves understanding statutory payment protections, reviewing internal financial practices, or navigating the range of government schemes available to registered MSME enterprises.
Provides the legal framework governing payment timelines and support mechanisms specific to MSME businesses.
Statutory Protections MSMEs Often Underuse
Many MSME businesses are unaware of the specific statutory protections available to them — particularly the payment timeline requirements under Sections 15 and 16 of the MSMED Act, 2006, which require buyers to pay MSME suppliers within 45 days and provide a mechanism to pursue delayed payments through the MSME Facilitation Council. Similarly, government incentive and subsidy schemes available to registered MSMEs are often underutilised simply due to limited awareness of what exists and how to access it.
This information is provided for general awareness. Which specific protections or schemes apply depends on individual business circumstances and should be confirmed directly with the firm.
Who This Typically Applies To
- MSME businesses awaiting payment from buyers beyond the statutory 45-day period
- Businesses that have not yet completed Udyam registration
- MSMEs applying for bank credit and needing structured project reports
- Businesses reviewing pricing and cost structures for efficiency
- MSMEs seeking awareness of applicable government schemes and subsidies
- Businesses in the Manufacturing, Trading, and Transport sectors specifically
Common Filing Scenarios
Payments Delayed Beyond 45 Days
An MSME supplier that has not received payment within 45 days of delivery or the agreed period can approach the MSME Facilitation Council for resolution, a statutory remedy that many eligible businesses are not aware exists.
Registering on the Udyam Portal
Businesses that have not yet completed Udyam registration are unable to access many of the protections and schemes available specifically to registered MSMEs, making this a foundational step before other advisory work becomes relevant.
Preparing Bank-Ready Financials
MSMEs applying for term loans or working capital facilities often need CMA data and project reports prepared in the specific format banks expect, which differs from routine internal financial reporting.
Reviewing Cost & Pricing Structures
As an MSME scales, a periodic review of cost structures and pricing approaches can identify areas where existing practices are no longer well-matched to the business's current size and transaction volume.
What's Included, By Entity Type
MSME Registration (Udyam)
Assistance with Udyam registration on the Government of India portal, updating of enterprise details, and understanding of the benefits available to registered MSMEs.
- Eligibility and applicable MSME category confirmed
- Udyam registration completed on the official portal
- Enterprise details kept updated as the business grows
- Registration certificate obtained for use with buyers and lenders
Delayed Payment Guidance
Advisory on the provisions of Sections 15 and 16 of the MSMED Act, 2006, which require buyers to make payment to MSME suppliers within 45 days, and guidance on filing references with the MSME Facilitation Council.
- Payment timelines under the MSMED Act explained
- Outstanding delayed payments reviewed for eligibility
- Reference filing with the MSME Facilitation Council guided
- Interest entitlement on delayed payment assessed
Profit Optimisation
Review of cost structures, pricing approaches, and working capital management practices for small and medium businesses, identifying areas where financial practices can be adjusted within existing resources.
- Cost structure reviewed against current business scale
- Pricing approach assessed for consistency and margin
- Working capital cycle examined for improvement areas
- Practical, resource-appropriate recommendations provided
Government Incentives & Schemes
Awareness advisory on central and state government schemes available to MSMEs, including the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Priority Sector Lending provisions, and applicable subsidy schemes.
- Relevant schemes identified based on sector and business size
- Eligibility criteria for each scheme reviewed
- Application process and documentation guided
- State-specific subsidy schemes flagged where applicable
CMA Data & Project Reports
Preparation of Credit Monitoring Arrangement (CMA) data and project reports for submission to banks in connection with term loan or working capital applications.
- Financial projections prepared in the bank-required format
- Fund flow and ratio analysis included as needed
- Project viability presented clearly for lender assessment
- Coordination with the bank through the application process
Sector-Specific Advisory
General business and financial advisory support for clients in the Manufacturing, Trading, and Transport sectors, drawing on the firm's experience with the compliance patterns particular to these industries.
- Sector-specific compliance calendar considerations reviewed
- Industry-relevant government schemes flagged
- Practical guidance grounded in sector-specific experience
- Coordination with the firm's other compliance services
Assistance with Udyam registration on the Government of India portal, updating of enterprise details, and understanding of the benefits available to registered MSMEs.
- Eligibility and applicable MSME category confirmed
- Registration certificate obtained for use with buyers and lenders
Advisory on the provisions of Sections 15 and 16 of the MSMED Act, 2006, which require buyers to make payment to MSME suppliers within 45 days, and guidance on filing references with the MSME Facilitation Council.
- Payment timelines under the MSMED Act explained
- Reference filing with the MSME Facilitation Council guided
Review of cost structures, pricing approaches, and working capital management practices for small and medium businesses, identifying areas where financial practices can be adjusted within existing resources.
- Cost structure reviewed against current business scale
- Practical, resource-appropriate recommendations provided
Awareness advisory on central and state government schemes available to MSMEs, including the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Priority Sector Lending provisions, and applicable subsidy schemes.
- Relevant schemes identified based on sector and business size
- Application process and documentation guided
Preparation of Credit Monitoring Arrangement (CMA) data and project reports for submission to banks in connection with term loan or working capital applications.
- Financial projections prepared in the bank-required format
- Coordination with the bank through the application process
General business and financial advisory support for clients in the Manufacturing, Trading, and Transport sectors, drawing on the firm's experience with the compliance patterns particular to these industries.
- Sector-specific compliance calendar considerations reviewed
- Practical guidance grounded in sector-specific experience
The Filing Process
Submit Enquiry
Share your requirement through the website or by phone. The firm reviews it and responds during office hours with next steps.
Document Collection
Relevant documents are collected based on your entity type and income sources, following the checklist confirmed for your specific situation.
Computation & Review
Income is computed under every applicable head, with eligible deductions and exemptions applied before the return is finalised for your review.
Filing & Confirmation
The return is filed within the statutory due date, and the filing acknowledgment along with the computation summary is shared with you.
Verified. Processed. Resolved.
Every filed return moves through e-verification, departmental processing, and — where applicable — refund or query resolution.
From Advisory to Practical Change
Management consultancy engagements typically conclude with a set of practical recommendations specific to the business — whether that's pursuing a delayed payment claim, applying for a specific government scheme, or adjusting a pricing approach. Where the recommendation involves a filing or application, such as Udyam registration or a scheme application, the firm can assist with that next step as a related, separately scoped engagement.
Government schemes and their eligibility criteria are periodically revised, so advisory around specific schemes reflects the position at the time of the engagement and is worth revisiting periodically as a business's circumstances change.
Documents You'll Need
Document requirements vary considerably depending on the specific advisory need, but the checklist below covers what's typically useful to have on hand for an initial discussion. Click each item as you gather it — the tracker above updates as you go. This is a preparation aid only; submitting an enquiry will confirm what's relevant to your specific situation.
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Frequently Asked Questions
What is Udyam registration and why does it matter?
Udyam registration is the official process by which a business is recognised as a Micro, Small, or Medium Enterprise on the Government of India's portal, and is generally a prerequisite for accessing MSME-specific protections and schemes.
Within how many days must an MSME supplier be paid?
Under Sections 15 and 16 of the MSMED Act, 2006, a buyer is generally required to pay an MSME supplier within 45 days of acceptance of goods or services, or within a shorter period if agreed in writing.
What can an MSME do if payment is delayed beyond 45 days?
An MSME supplier can file a reference with the MSME Facilitation Council, which has the authority to conduct conciliation or arbitration proceedings and can direct payment along with applicable interest.
Is interest payable on delayed payments to MSMEs?
Yes, the MSMED Act provides for compound interest at a rate significantly higher than typical bank rates on amounts paid late to a registered MSME supplier, calculated from the date payment became due.
What is CMA data and when is it needed?
Credit Monitoring Arrangement (CMA) data is a structured financial projection format that banks typically require when assessing a business's application for a term loan or working capital facility.
What is CGTMSE and how does it help MSMEs?
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides a credit guarantee mechanism that can help MSMEs access collateral-free loans from participating banks and financial institutions, subject to scheme conditions.
Do government MSME schemes change frequently?
Yes, eligibility criteria, subsidy amounts, and scheme availability are periodically revised by central and state governments, so advisory around specific schemes should be treated as current only as of the time it is provided.
Is management consultancy advisory a one-time or ongoing engagement?
It can be either — some engagements address a specific, one-time need such as a loan application, while others are structured as periodic advisory support as the business's circumstances evolve.
Have a Query About Management Consultancy?
Submit an enquiry and the firm will respond during office hours. Engaging the firm for this service begins with a formal engagement following your enquiry.