According to the recent amendment published in the Gazette of India, the revised form necessitates companies to disclose extensive financial details regarding their transactions with MSME suppliers. This encompasses payments made within and beyond the stipulated 45-day timeframe, outstanding balances, and explanations for any payment delays.

Key Elements of the New MSME-1 Form Include:

1. Supplier Details: Companies must list the names of their MSME suppliers.

2. Payments within 45 Days: Information about payments made to MSME suppliers within 45 days.

3. Payments after 45 Days: Details of payments made to MSME suppliers after the 45-day period.

4. Outstanding Balances: Reporting of amounts outstanding for 45 days or less, and those outstanding for more than 45 days.

5. Reasons for Delays: Companies are required to provide reasons for any delayed payments or outstanding amounts.

This amendment is effective immediately upon its publication in the Official Gazette. It underscores MCA's commitment to enhancing transparency and accountability in financial transactions with MSMEs, thereby ensuring timely payments to these enterprises.

Companies are reminded of their statutory obligation under Section 405 of the Companies Act, 2013, to submit accurate and complete information. Non-compliance may lead to penalties as stipulated by the Act.