Question
Companies must file which form every six months to
report outstanding payments to Micro, Small and Medium Enterprises (MSMEs)?Solution
Form MSME-I is mandated by the Ministry of Corporate Affairs (MCA) for companies to declare all outstanding payments to MSMEs that are overdue for more than 45 days. It must be filed semi-annually, and non-compliance may lead to penalties under the Companies Act, 2013. This reporting requirement ensures that large entities maintain payment discipline and reduces the systemic risk of delayed payments that adversely affect MSMEs' working capital and sustainability.
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