Vidarbha Industries Association (VIA) and InFED-IIM Nagpur jointly organised a high-impact capacity-building workshop under the prestigious Raising and Accelerating MSME Performance (RAMP) Project on 23rd April 2025 at VIA Auditorium, Nagpur.
CA Pranav Joshi, Mentor at InFED – IIM Nagpur focused on enhancing financial acumen among MSMEs by clarifying key concepts in financial management. He covered an overview of financial statements, emphasizing that the financial statements should be seen as a tool for decision making and not mere compliance. The balance sheet was explored with a detailed discussion on sources and applications of funds, highlighting the importance of matching capital sources to their appropriate uses—especially avoiding short-term funds for long-term applications. Working capital management was a core focus, with practical illustrations showcasing scenarios like reduced revenues, stuck receivables, and personal withdrawals that can adversely impact liquidity. Strategies such as periodic review of working capital limits and assessing if limits are getting “blocked” were recommended.
Pranav Joshi emphasized that the entire eco-system in which MSMEs operate – banking, tax authorities, GST authorities – depends upon the entity’s financial statements for their assessment, but promoters rely on back-of-the-envelope calculations.
CA Sachin Jajodia, Partner of Agrawal Jajodia & Associates said that MSMEs should recognize that Input Tax Credit (ITC) under the Goods and Services Tax (GST) regime is a powerful tool for effective financial planning. He said by strategically managing and claiming ITC on their eligible purchases, companies are significantly enhancing their cash flow, balancing working capital, reducing their overall tax liability, and boosting profitability. He emphasized that a thorough understanding of ITC provisions, including eligibility criteria, documentation requirements, and timely compliance, is crucial for maximizing these financial benefits. Proper record-keeping, regular reconciliation of purchase data with GST portals, and ensuring timely payments to suppliers are key strategies being adopted by MSMEs in the region.
Furthermore, MSMEs are advised by CA Jajodia to stay informed about the list of blocked credits and adhere to the stipulated time limits for claiming ITC to avoid potential penalties. MSMEs should use technology and GST-compliant accounting practices are also proving beneficial in streamlining the ITC process and contributing to better financial health. He said that by integrating ITC management into their broader financial planning, MSME’s are not only optimizing their tax obligations but also fostering sustainable growth and improved operational efficiency in business.
Earlier, CA Naresh Jakhotia, Vice President of VIA welcomed the guest speakers with floral bouquet and mementos and also introduced the speakers. Further in his welcome address said this exclusive session, under the RAMP Project aimed to equip Micro, Small, and Medium Enterprises (MSMEs) with essential financial literacy, strategic insights, and awareness of government schemes to drive sustainable growth and strengthen financial management and tax practices.
Amogh Tijare, Business Development – INFED IIM Nagpur made an opening remark and also proposed a vote of thanks. The workshop was attended by members of the association, MSME units and entrepreneurs in large numbers.
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