Collecting Receivables from Public/Private Corporates - Issues
Dear Friends,
Many of you have written to us on this subject. The challenges that entrepreneurs and SMEs face in collecting their receivables.
The small entrepreneur is helpless many times and some times even ends up going out of business due to default on payment by corporates. Unfortunately, there are no clear laws on collecting dues in India.
With this post we want all entrepreneurs to list the key issues faced in Receivables Collection.
Once we know the Issues, we will work on Root Causes and Solutions and put together a whitepaper that will be shared with Ministry of Corporate Affairs, Ministry of Finance and Ministry of MSME so the right mechanisms are established to support effective collection of dues.
We look forward to your inputs!
Rajendra Pratap Gupta more
Many of you have written to us on this subject. The challenges that entrepreneurs and SMEs face in collecting their receivables.
The small entrepreneur is helpless many times and some times even ends up going out of business due to default on payment by corporates. Unfortunately, there are no clear laws on collecting dues in India.
With this post we want all entrepreneurs to list the key issues faced in Receivables Collection.
Once we know the Issues, we will work on Root Causes and Solutions and put together a whitepaper that will be shared with Ministry of Corporate Affairs, Ministry of Finance and Ministry of MSME so the right mechanisms are established to support effective collection of dues.
We look forward to your inputs!
Rajendra Pratap Gupta more
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SINGLE TIME SETTLEMENT SYSTEM OFFERING HUGE REDUCTIONS BESIDES THE OPERATION OF WRITING OFF IN THE PRETEXT OF BAD AND DOUBTEUL DEBTS ; EDUCATING MANY TO ADOPT EASY MONEY MAKING AND BL;ACK MONEY CREATION SYSTEM IN THE CARRY OF CORRUPTION . STRINGENT APPLICATION OF LAWS AND STRICT, FAST, AND ACUTE POLICING ONLY CAN HELP REALISATION OF OVER-DUES THROUGH COURT OF LAW SEIZING THE PROPERTIES OF LONEES, DEBTORS AND GUARANTERS . IN SUCH ILL PRACTICES BUSINESS LOSS SHALL NOT BE CARRIED TO THE ACCOUNT OF GOVERNMENT OR THE SHAREHOLDERS . IT IS NECESSARY TO ARREST THE POSSIBLE MAL-PRACTICES AND ILL-BUSINESSING . more
Mar 30
Would it be possible to make big companies show what they owe to SMEs in their tax returns. Every year delay would then incur the interest of that year which would keep adding for the subsequent years. more
Mar 11
1. Foreign companies find it easy to collect their dues because of the system of Letter of Credit. This works very well for products. Would it be possible to have a local letter of credit system with fees proportionate to the value of the deal being made? 2. In case of services, big companies normally ask for very long credit periods. This seriously affects the cash flow of SMEs. Can it be made mandatory that credit periods for services rendered by SMEs must not be greater than 30 days or some such period by law, in applicable cases? 3. In case of services, another problem is that some large companies simply refuse to pay irrespective of the credit period. I have no idea ow to tackle this. Resorting to courts is not of much use due to the long time it takes for cases to be processed. more
Mar 09
I am fully agreeable with Mr. Ajay Mehta "Big companies, big people never suffer for anything they do" Big companies do fraud & default on any issue, sufferers are only INVESTORS & TO SOME EXTENT EMPLOYEES ONLY. Let us take example of: 1. Zenith Birla (India) Ltd 2. Ind-swift Laboratories Ltd, Chandigarh AND MANY MORE ...... (May see list of CLB ORDERS.. Full of such corporate) These corporate are attracting Sr Citizens for making Fixed Deposits in their companies by offering 1-2 % more interest payable. And DEFAULT WHILE MAKING PAYMENT / REFUND PRINCIPAL AMOUNT. These corporate are approaches CLB & by hook & crook, they get VERDICT ENABLING THEM TO DEFFER INTEREST PAYMENT / REFUND OF PRINCIPAL AMOUNT. If some competent & honest person review CLB ORDERS ISSUED & ACTION TAKEN BY CLB / ROC / RD later , can easily understand "A NEXUS BETWEEN CLB-MEMBERS & CORPORATE. Who are sufferer, only INVESTORS, SR CITIZENS ONLY. Numerous complaints in several hundred have been reported to MINISTRY OF CORPORATE AFFAIRS & PRIME MINISTER OFFICE. It seems they too have deaf ears. more
Mar 02
Someone rightly said- In India If a small company is bankrupt, the owner will suffer and the employees will' If a big company is bankrupt, the bank will suffer and the employees. Big companies, big people never suffer for anything they do. The company with whom I fighting for justice has- 1. Brought in scrap, built it into machines, painted and must have taken Govt loan against the same.- First benefit 2. They have not paid me-Second benefit 3. Taken Insurance claim - Third benefit 4. Filed counter claim against me -seeking fourth benefit 5. Planning to sell the unit for 1200 crore -fifth benefit And still the owner is a reputed personality in the society There has to be some protection to SMEs by Govt,then only we can expect to beat China or any other country. more
Feb 28
