Industry Insights

The Probe Newsletter August 2020

Universe of Registered Companies

  • As of Jul-20, there are 12,33,767 active companies in India.
  • 3,08,312 active companies were incorporated in India between Jan-18 to Jul-20.
  • Presently, there are 52,087 active companies in Hyderabad city.
  • The chart does not include LLPs.

Company Classification

  • As of Jul-20, there are 19,396 Not for Profit Co.in India.
  • Currently, there are 1,992 Govt Co.in the country.
  • 90.0% of the companies were registered as a Private Limited Co.

Probe New Company and LLP Incorporations Index

  • The Probe New Company and LLP Incorporations (PNCLI) Index was constructed using Dec-00 as the base year.
  • In Jul-20, index value stood at 466 with 1,16,309 companies and LLPs incorporated in the last 1 year.
  • In the last 12 months 30,504 LLPs were incorporated in India.

New Company Incorporations

  • During the month of Jul-20, 16,487 companies were incorporated in India of which 16,170 were private and 317 were public.
  • New company incorporation witnessed a growth by 50.5% when compared to Jun-20.
  • 14.1% of new incorporated companies were registered under trading business.

Company Incorporations – State-wise data

  • In Uttar Pradesh 1,806 companies were incorporated in Jul-20.
  • 7.8% new companies were incorporated in the Karnataka state.
  • In Jul-20, 69 companies were incorporated with the paid up capital of more than Rs 1 cr.

LLP Incorporations State-wise data

  • During the month of Jul-20, 4,319 LLPs were incorporated.
  • 256 LLPs were incorporated in Telangana which constituted 5.9% of total LLP incorporation.
  • 133 LLPs were incorporated under the agriculture business.

Nationwide Spread

  • Presently, there are 12,33,767 active companies in India.
  • West Bengal with 1,27,076 stood at the 3rd position in terms of active companies which constituted 10.3% of the total active companies.
  • 18,826 companies in Kolkata had paid up capital between Rs 1 – 5 lac.

Statewide Spread – Bihar

  • 42.7% of the active companies in Bihar were registered in the state capital – Patna.
  • 12,458 companies in Bihar had paid up capital of upto Rs 1 lac.
  • In Muzaffarpur, 1,192 companies were registered which accounted 4.3% of total active companies in the state.

Paid Up Capital

  • 14,926 companies had paid up capital between Rs 5 – 10 cr.
  • As of Jul-20, 2,281 companies in Mumbai city had paid up capital of more than Rs 25 cr.
  • 3.2% active companies had paid up capital between Rs 2 – 5 cr.
  • Currently, 30,619 companies in Kolkata had paid up capital of upto Rs 1 lac.
  • There are 39,299 companies in India with paid up capital between Rs 2 – 5 cr.
  • 10.8% of total active companies had paid capital between Rs 5 –15 lac.

Directorship Overview

  • As of Jul-20 there are 20,58,065 active directors in India.
  • Presently, there are 58,811 active foreign directors in the country.
  • Delhi has 2,29,166 active directors which constituted 11.1% of total active directors.
The Probe Newsletter July 2020
number of companies incorporated

Universe of Registered Companies

  • Currently, there are 12,17,127 active companies in India.
  • In the last 6 months 47,922 active companies were registered in India.
  • As of June-20, there are 68,404 active companies in Odisha.
  • The chart does not include LLPs.
Company Information

Company Classification

  • Currently, there are 60,458 public companies in
  • Presently, there are 29,251 OPC (One Person Company) in the country.
  • There are 737 Guarantee and Association companies in India.
probe information

Probe New Company and LLP Incorporations Index

  • The Probe New Company and LLP Incorporations (PNCLI) Index was constructed using Dec-00 as the base year.
  • Index value stood at the 445 with 1,40,113 entity registered in the last 12 months.
  • 12,610 LLPs were incorporated in the last 6 months.
New Company Incorporations

New Company Incorporations

  • In Jun-20, 10,954 companies were registered of which 10,739 were private and 215 were public.
  • 2,360 companies in Jun-20 were registered under manufacturing business.
  • In Jun-20, 932 companies were registered under ROC Bengaluru.
Number of Company Incorporations

Company Incorporations – State-wise data

  • 742 companies were registered in the state of Telangana which accounted 6.8% of total company registration in the month.
  • In Gujarat 542 companies were incorporated in Jun-20.
  • 8,827 companies registered had paid up capital up to Rs 1 lac.
Number of LLP Incorporatios

LLP Incorporations State-wise data

  • In Jun-20, 2,273 LLP were incorporated in India.
  • In Gujarat state, 220 LLPs were incorporated which constituted 9.7% of total LLP incorporation.
  • In Jun-20 497 LLP were incorporated under the trading business.
Nationwide Spread

Nationwide Spread

  • Currently, there are 12,17,277 active companies in India.
  • As of Jun-20, there are 38,728 active companies in Rajasthan of which 20,022 incorporated in Jaipur.
  • Karnataka with 80,613 stood at the 5th place in terms of total number of active companies.
Statewide Spread

Statewide Spread – Madhya Pradesh

  • 742 companies were registered in the state of Telangana which accounted 6.8% of total company registration in the month.
  • In Gujarat 542 companies were incorporated in Jun-20.
  • 8,827 companies registered had paid up capital up to Rs 1 lac.
Paid Up Capital

Paid Up Capital

  • 22,334 companies had paid capital more than Rs 10 cr.
  • In Assam state 2,243 companies had paid up capital of up to Rs 1 lac which constituted 30.5% of total companies in the state.
  • 14.2% companies had paid up capital between Rs 1 – 5 lac.
  • Currently, 30,619 companies in Kolkata had paid up capital of upto Rs 1 lac.
  • There are 39,299 companies in India with paid up capital between Rs 2 – 5 cr.
  • 10.8% of total active companies had paid capital between Rs 5 –15 lac.
Dictatorship overview

Directorship Overview

  • Presently, in India there are 20,02,590 active directors.
  • Uttar Pradesh has 1,91,345 active directors which constituted 9.6% of total directors in India.
  • Currently, there are 57,960 active foreign directors in India.
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A Note on Cement Industry – 2

India is the second-largest cement producer in the world with the installed capacity of 509 MTPA and accounts for over 8.0% of the global installed capacity. A total of 210 large cement plants together account for 410 MT of installed capacity in the country, while 350 mini cement plants make up the rest. Of the total 210 large cement plants in India, 77 are located in the states of Andhra Pradesh, Rajasthan, and Tamil Nadu. Of the total capacity, 98.0% lies with the private sector and the rest with the public sector. Cement production in India increased from 230 MT in 2011-12 to 337 MT in 2018-19.

The majority of the Indian cement industry constitutes domestic companies, however, the Indian cement industry has some multinational giants including Holcim and Lafarge, which have an interest in companies such as ACC, Ambuja Cement, and Lafarge Birla Cement. The top 20 companies account for around 70.0% of the total production.

Consolidation

During the period FY2016-20, a total of 60 MTPA capacity got acquired by bigger players which led to regional capacity consolidation.

  • In FY2016, Birla Corp acquired Reliance Cement’s 5.5 MTPA capacity in the central region.
  • In FY2017, Nuvoco Vistas (earlier Nirma Cement) acquired Lafarge Cements’ 10 MTPA capacity spread across east and north.
  • In FY2018, UltraTech acquired JP Associate’s 21 MTPA capacity spread across north, central, and south regions.
  • In FY2019, UltraTech further acquired 14 MTPA capacity from Century Textiles (spread across central, east, and west markets).
  • In the same year, UltraTech also acquired Binani Cement’s 6 MTPA in the north.
  • In FY2020, Dalmia acquired Murli Industries’ 3 MTPA in Maharashtra.
  • Further as per media release dated Feb 06, 2020, the Kolkata-based diversified conglomerate EMAMI Ltd announced that it has entered into a binding agreement with Nuvoco Vistas Corp, part of the Nirma group, for divesting its 100.0% equity stake in Emami Cement for an enterprise value of Rs 5,500 cr. The transaction is subject to the customary approvals including from the Competition Commission and is expected to be consummated in the next 3-4 months.

 Cement Demand:

Cement demand in the country is largely contributed by housing sector-where Urban housing segment contributes 25-26%, Rural housing contributes 28-30% and Government projects like Low-cost housing under PMAY schemes contribute another 11-12%.   infrastructure segments like roads, railways, metros, ports apart from other structure development like bridges, dams, and irrigation contribute 22-24%. Over the last few quarters, cement demand in the country has grown at a healthy rate mainly led by strong demand from government-related projects like infrastructure and low-cost housing under PMAY schemes.

cement demand breakup - India

For marketing cement, India is divided into five regions and a few companies dominate across markets:

Regional Capacity

Cement-Demand-Supply as a Whole

Cement production after touching a peak of 337.3 MT in FY2019, stood at 327 MT in FY2020.

Performance in FY2020 (Apr-Mar,2020)

After a strong FY2019 (14% volume growth), the Indian cement industry started FY2020 on a muted note. Between Jun and Oct 2019, demand declined by 2.0% YoY due to

  1. Muted government spending after the general elections in Apr-May 2019.
  2. Change of governments in demand intensive states like Madhya Pradesh, Rajasthan, Andhra Pradesh, Karnataka, and Maharashtra.
  3. Prolonged monsoon.

However, the industry was showing initial signs of recovery since Nov 2019 and reported a 6.0% YoY increase in production over the Nov 2018 to Feb 2019 period (even after higher base; 10% growth in the preceding period of 2017-18). But the nationwide lockdown in the last 10 days of Mar 2020 impacted the cement volumes. Cement production declined by 25.0% in the month of Mar 2020.

Overall, FY2020 was a weak year in terms of demand with overall cement demand contracting by 1.0%.

 

  • Pricing trends: Strong utilization in the north/central/Gujarat markets (NCG) has kept cement prices robust vs those in the south/east/Maharashtra markets (SEM). During FY2020, prices in the NCG region rose more than 10.0% YoY. However, in the south, prices remained almost flat against a modest increase in the East. Demand contraction in the southern region in FY2020 and heightened competition in the Eastern region has been driving the sharp divergence in realization trends.
  • Operating expenditure: The cement industry benefitted from fall in pet coke and diesel prices during 2019 which has led to a reduction in input and freight cost for the cement industry. Thus, in spite of the slight rise in unitary fixed costs on account of lower utilization, unitary opex fell YoY, boosting margins.
  • Power & Fuel Cost: Average pet coke prices declined from USD 91/Ton in Q4FY19 to USD 68/ton in Q4FY20. This coupled with various cost control initiatives are undertaken by cement companies in the form of installation of WHRS (Waste Heat Recovery Systems) and other alternate sources like the use of lignite have led to a decline in power and fuel cost.
  • Freight Cost: Road transport comprises of 65-75% of the freight mix for all the major cement manufacturers in India. After a sharp decline in diesel prices recently, most of the cement companies saw a sharp decline in Freight costs in the last few quarters. Also, the applicability of higher axle load carriage capacity norms has positively impacted the freight cost for most of the cement companies. However, the crude prices have recovered from low of US$ 19.56/ per barrel in Apr 2020 to US$ 39.27/per barrel.crude price in USA
  • Margins: Higher realizations and moderation in OPEX expenditure led to firming up of operating margins of the cement industry to decade high of Rs 1,000/MT.Q4FY2020 (Jan-Mar,2020) update:
    1. Since Nov-2019, demand for cement started improving, however, in Mar-2020, due to nationwide lockdown due to Covid-19 the volumes of the cement industry declined. Cement volumes declined around 10.0% in Q4FY2020. As per a research report, the industry sells significant volumes in the last 10 days of the financial year.
    2. Net Sales Realization (NSR): During Q4FY2020, due to an increase in demand the industry increased the prices by 3.0%. Region-wise, West price was up 6.0% QoQ, South/East was up 3.0% QoQ and North/Central is up 2.0% QoQ.
    3. Cost: Variable cost including fuel and freight remained soft on account of crude witnessing sharp correction.
    4. Margins: Better realizations on account of an increase in prices coupled with a decline in variable cost led to healthy margins in Q4FY2020.

    Q1FY2021 so far:

    Cement Demand: Cement production in the month of April 2020 decreased by 86.0% YoY led by nationwide lockdown for the first 19 days of Apr 2020. Industry resumed factory operations from Apr 20, 2020 post gradual lifting of lockdown. During May, cement companies witnessed increased capacity utilization to 60-65.0% as against 35-40.0% at the start of the month. Capacity utilization further improved in the month of June 2020. The sharp increase was due to the pent-up demand before monsoon slows down the construction activity.

    Demand recovery is expected to be gradual till monsoon ends in Sep-2020. Further, from the demand side, rural housing which constitutes around 30.0% is expected to pick up faster on account of good rabi crop and labor availability. However, there is no clarity in urban housing demand due to an increase in Covid-19 cases in some of the urban cities which have led to partial shutdown of the cities once again.

    Prices: Prices on a pan India basis increased by 10.0% MoM in May-2020 with a steep rise of 16.0% MoM in the southern and eastern regions. Cement prices across other regions increased by 5-7.0%. Further, prices increased by 0.8% MoM in Jun-2020. The rise in prices is attributable to limited supply led by restrictions on labor, logistics, and factory operations.

    Margins: Low diesel and coke prices and firm realizations may boost the margins to some extent. However, higher per ton fixed cost due to lower volumes might negate the benefits of lower variable cost.

    Road Ahead

    The eastern states of India are likely to be the newer and virgin markets for cement companies and could contribute to their bottom line in the future. In the next 10 years, India could become the main exporter of clinker and grey cement to the Middle East, Africa, and other developing nations of the world. Cement plants near the ports, for instance, the plants in Gujarat and Visakhapatnam, will have an added advantage for exports and will logistically be well armed to face stiff competition from cement plants in the interior of the country. India’s cement production capacity is expected to reach 550 MT by 2025.

    Peer ComparisonABOUT PROBE

    • Probe is an independent Information Services company focused on providing financial information on Unlisted and under-covered companies in India
    • The Probe42 platform has been extensively used by Banks and Corporates
    • Our Customers have found value in using Probe42.in to enable their decisions involving identifying prospects, sales preparation, credit and competitor analysis, etc.
    • Please reach out to us if you need information on ANY of the ~ 1,369,000 corporates in India

    DISCLAIMER

    Copyright© Probe Information Services Private Limited. This article is intended solely for the addressed recipient and any dissemination, distribution, or copying of this will require permission from Probe. Probe has relied on estimates, analytics, and other public sources of information in preparing this report and is not liable for any damages in connection with the use of the information.

Video on Demand – OTT Platform players

We only hear about disturbing news these days. Our Research team thought that they would put together a note on one industry that is bringing smiles to our faces while we are all at home – Video on Demand Players who have seen their business uptick in these times

Covid-19 and Lockdown made us all homebound. A number of businesses suffered while few of them flourished.  There is a long list of businesses that have suffered but one of the industries that came out smiling is OTT Platforms. A number of these players have seen a spike in their subscriptions/ viewership. Let’s look at the industry a bit in length:

  1. What is OTT? 

OTT(Over the top) services refer to applications and services that are accessible over the Internet and ride on an operator’s network. Though the term is commonly applied to video-on-demand platforms, it actually covers a broad range of web-based content:

  • Video Streaming: This is the most widely recognized OTT Media service and is currently synonymous with players delivering film and television content g. players Netflix, MX player, etc.
  • Audio Streaming: Audio streaming includes radio stations as well as podcasts
  • Messaging: OTT-based instant messaging services connect users directly through internet connections, without mobile SMS networks eg WhatsApp, Viber
  • VOIP: Voice over the internet or ability to make calls using the internet instead of regular network providers eg skype, Whatsapp calls, etc. This has further advanced to video calls now like Zoom, Skype, Google meet, BlueJeans, etc

Other segments that have grown as part of OTT are – Online Gaming, Education, Health-based content delivery.

How are the services delivered?

OTT services are delivered via a high-speed Internet connection rather than a cable or a satellite provider, that are typically accessed via websites on personal computers, as well as via apps on mobile devices (such as smartphones and tablets), digital media players (including video game consoles), or televisions with integrated Smart TV platforms

  1. Video Streaming Industry

For this report, we will confine ourselves to the Video Streaming Industry

The total number of internet subscribers in India has grown substantially over the last few years. As of Dec-2019, the number of Internet subscribers stood at 72 crores registering a 3-year CAGR of 22%.  Internet adoption across India has made the OTT space reach an inflection point for growth. Nokia’s annual Mobile Broadband India Traffic (MBiT) Index study reports a 47% increase in overall data traffic in India in 2019, driven by continued 4G consumption. The report highlights that the average amount of time spent on OTT platforms in India is about 70 minutes a day and an average single session lasts for about 40 minutes.

The table below highlights the trend in the growth of Internet subscribers in India over the years.

Growth of Internet Subscribers

Video on Demand (VOD) through OTT Platforms has caused huge disruption in the content consumption space over the last few years. From an Indian perspective, where having multiple cable connections in a single Indian household was a distant dream, OTT platforms have enabled individual viewership. OTT platforms today provide the comfort of viewing content at one’s convenience in terms of time, place, and device. Some of the key drivers that have aided growth in the OTT space include:

  • Improved connectivity in rural areas and a fall in data costs
  • Increase in smartphone penetration
  • Favorable demographics in terms of increase in its affluent population
  • Improvement in Payment Ecosystem
  • Supply of varied content
  1. History of VOD in India

The first Indian OTT platform was BIGFlix, which was launched by Reliance Entertainment in 2008. In 2010, Digivive launched the first mobile OTT app – NexGTv – providing both live TV and on-demand entertainment content. NexGTV was the first app to live stream Indian Premier League matches on mobile phones in 2013 and 2014. Later on, apps like Zee-owned DittoTV and Sony Liv were also launched in 2013, which helped grow the Industry. But the OTT industry in the country really expanded only after the launch of Netflix in 2016 and Amazon Prime Video by the end of the same year.

2. Size of VoD industry

According to recent coverage on LiveMint, that was sourced from the latest Global Entertainment & Media Outlook report released by PwC India, India’s OTT VoD market was valued at Rs 4,464 crore as of 2018 and is predicted to grow at a CAGR of 21.8% to Rs 11,976 crore in 2023. Of this, Subscription video on demand

(SVoD) is expected to grow at a 23.3% CAGR from Rs 3,756 crore in 2018 to Rs 10,708 crore in 2023. As per the report, this makes India poised to become the eighth biggest market in the world by 2023.

3. Categorization of players

There are more than 30 players in India and they can be categorized on the basis of their monetization methods. There are broadly 3 models of monetization –

  • Subscription-based VoD (SVoD)
  • Advertising based VoD (AVoD)
  • Transaction based VoD (TVoD)
Digital Video Consumer

Digital Video Consumer

Currently, the most preferred category of content consumption in India is via AVoD. However, subscription services are catching up too. People have warmed up to the idea of paying for content, which was not the case just a few years earlier. The above monetization models are distinct from telco-backed OTT platforms like Jio Cinema, Jio TV, Airtel Xtreme, etc., which are largely aggregators of content from other broadcasters and online video platforms.

4. Key distribution partnerships for OTT players in India

KPMG Report

5. Key Metrics

6. Regulations

India currently does not have any regulations governing OTT service providers. Any regulatory framework, in general, could impact the model of operations, the structure of transactions, and funding arrangements. Indian OTT service providers procure rights to Hollywood content and pay fees for such rights. This would be a typical content licensing payment and subject to regulations generally applicable to any import of service. In the case of foreign OTT service providers with no presence in India, advertising revenue directly collected from Indian advertisers/ad agencies or subscription revenue from Indian subscribers would be subject to import regulations as applicable to any other import of service. However, with most regulators around the globe working towards governing OTT players, the future of VoD cannot be imagined without a regulator. Regulations on content classification can be expected in the near future.

      7. Conclusion

 By 2023, it is estimated that 48% of India’s internet users will be from rural parts. This will provide a largely untapped market for new OTT players, who will have the opportunity to tap into rural markets that have access to the internet. Moreover, the impressive scale of the market and a liberal foreign investment environment will continue to be attractive to global streaming platforms looking to capitalize on the country’s fast-growing digital consumption.

Going forward, Indian players can focus on certain aspects to realize this opportunity:

  • Companies need to guide customers to their various choices by marketing their specific propositions and let them know how the platform can meet their entertainment needs
  • Instead of vying for the same target market with minimal differentiation, platforms can establish a distinct identity by untapping niches like ‘Music’ and ‘Program for kids’
  • Focusing on regional content can help an OTT platform differentiate themselves from their competitors, as the Indian audience seems to have more affinity towards regional shows or items
  • Analyzing a large amount of data OTT creates, can help gain an understanding of consumer insights and the data analytics can help monetize the OTT platform
  • With user experience being a key differentiator, investing in the right technology will play an important role in the coming years.

About Probe

  • Probe is an independent Information Services company focused on providing financial information on Unlisted and under-covered companies in India
  • The Probe42 platform has been extensively used by Banks and Corporates
  • Our Customers have found value in using Probe42.in to enable their decisions involving identifying prospects, sales preparation, credit and competitor analysis, etc.
  • Please reach out to us if you need information on ANY of the ~ 1,207,000 companies in India
Investment And Turnover Calculation Criteria For MSMEs Notified

Ministry of Micro, Small, and Medium Enterprises on 26th June 2020 has officially notified the criteria for calculation of Investment and Turnover for MSMEs. The notification outlines the new classification of MSME that was introduced on 1st June 2020, which is as per the table below along with a detailed plan of registration and other requirements.

MSME investment

Msme Investment

Registration as an MSME:

  1. New registrations:
    1. The notification clarifies that in order to establish an MSME, Udyam Registration has to be filed online on the Udyam Registration Portal, based on self-declaration with no documentary requirements. No fee shall be applicable for registration.
    2. Aadhar number shall be required for registration:
      1. of the proprietor in case of Proprietorship
      2. of the managing partner in case of Partnership Firm
      3. of the karta in case of an HUF
    3.  For any other registered organisation like Company, LLP, Co-operative Society or Trust – GSTIN and PAN shall also be required along with the Aadhar Number
    4. Upon registration, the enterprise will be allotted an ‘Udyam Registration Number’.
    5. An e-certificate – ‘Udyam Registration Certificate’ shall be allotted to the enterprise on completion of the registration process.
    6. No enterprise shall file more than 1 (one) Udyam Registration, whether having one or more than one business activity i.e. complete disclosure of all the business activities to be specified in a single Udyam Registration.
  2.  Registration of existing enterprises:
    1. All existing enterprises registered under EM–Part-II or UAM shall register again on the Udyam Registration portal on or after the 1st July 2020.
    2. All enterprises registered till 30th June 2020, shall be re-classified in accordance with this notification.
    3.  The existing enterprises registered prior to 30th June 2020, shall continue to be valid only for a period up to the 31st March 2021.
    4. An enterprise registered with any other organisation under the Ministry of Micro, Small and Medium Enterprises shall register itself under Udyam Registration.

 

Composite criteria of investment and turnover for classification:

  1. The notification has clarified that a composite criterion of investment and turnover shall apply for classification of an enterprise as micro, small or medium i.e. if an enterprise crosses the ceiling limits specified for its present category in either of the two criteria of investment or turnover, it will cease to exist in that category and be placed in the next higher category. No enterprise shall be placed in the lower category unless it goes below the ceiling limits specified for its present category in both the criteria of investment as well as turnover.
  2. All units with GSTIN listed against the same PAN shall be collectively treated as one enterprise and the turnover and investment figures for all of such entities shall be seen together and only the aggregate values will be considered for deciding the category as micro, small or medium enterprise.

Calculation of INVESTMENT IN PLANT AND MACHINERY OR EQUIPMENT:

  1. The calculation of investment in plant and machinery or equipment will be linked to the ITR of the previous years filed under the Income Tax Act, 1961.
  2. In case of a new enterprise, where no prior ITR is available, the investment will be based on self-declaration of the promoter of the enterprise and such relaxation shall end after the 31st March of the financial year in which it files its first ITR.
  3. The expression “plant and machinery or equipment” of the enterprise, shall have the same meaning as assigned to the plant and machinery in the Income Tax Rules, 1962 framed under the Income Tax Act, 1961 and shall include all tangible assets (other than land and building, furniture and fittings).
  4. The purchase (invoice) value of a plant and machinery or equipment, whether purchased first-hand or second-hand, shall be taken into account excluding GST, on self-disclosure basis, if the enterprise is a new one without any ITR.
  5. The cost of certain items specified in the Explanation I to sub-section (1) of section 7 of the Act shall be excluded from the calculation of the amount of investment in plant and machinery.

Calculation of TURNOVER:

  1. Exports of goods or services or both, shall be excluded while calculating the turnover of any enterprise.
  2. Information as regards turnover and exports turnover for an enterprise shall be linked to the Income Tax Act or the Central Goods and Services Act and the GSTIN.
  3. Turnover related figures of such enterprise which do not have PAN will be considered on self-declaration basis for a period up to 31st March 2021 and thereafter, PAN and GSTIN shall be mandatory.

Points to Note:

  1. Enterprises having Udyam Registration Number shall have to update its information online on Udyam Registration portal along with its ITR and GST Returns and other required details.
  2. Failure to update such information poses a threat of suspension of the enterprise status.
  3. Based on the submission of documents, the enterprise classification shall be updated.
  4. Any graduation or reverse graduation shall be communicated to the enterprise.
  5. Facilitation and Grievance Redressal measures have been outlined in the notification, refer link.

Link to the Circular