Accounting rules eased for SMEs, small unlisted cos.

Small and medium commercial enterprises and small unlisted corporated entities are being exempted from the rigours of complying with some of the accounting standards issued by the Institute of Chartered Accountants of India (ICAI). The disclosures to be made by this category of commercial entities is also being partially eased.

A decision to this effect was taken by the central council of the institute on recommendation of the accounting standards board at a meeting in New Delhi.
The decision will reduce compliance cost for the SMEs. More significantly, it will give relief to chartered accountants in small towns who do not have the skills to prepare the accounts of the company in compliance with some of the new and complex accounting standards.

Banks blamed for sluggish growth in Orissa SSI sector

At a seminar on ‘Growth and Revival of SSI Sector in Orissa’ speakers expressed concern over large scale sickness and slow growth in the small-scale industries sector in Orissa.

“That the SSI sector in Orissa is losing momentum, has become a serious concern for the state government”, Orissa chief minister Shri Naveen Patnaik said adding the banks neglect financing the sick units despite the best efforts of the state. Pointing out that the Orissa State Financial Corporation (OSFC) has been saddled with huge non performing assets (NPAs), he said that efforts are on to revive and revamp the institution with the help of the Centre.