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How cloud ERP software can help fight the Covid-19 pandemic?

Fighting COVID-19 - Social Distancing

The COVID-19 pandemic has spread in an unprecedented way across the entire planet, and it is showing no significant signs of slowing down or getting contained. The global economy has suffered greatly due to the lockdowns and disruptions in the supply chain, but it is slowly beginning to recover. As businesses reopen, and the world begins to regain functionality, social distancing rules are a must for everyone to ensure that the pandemic stays under control.

Why Social Distancing?

Social distancing rules ensure that the COVID-19 virus does not get a chance to spread from potential carriers to healthy people. Most businesses require daily contact between employees, vendors, customers and other stakeholders. Ignoring social distancing can mean a complete breakdown of the recovery process, and an increase in the outbreak of COVID-19. With the blanket ban on any such contact, businesses must function through digital means of communication, collaboration and management.

Consequences of Social Distancing

Enforcing social distancing guidelines in a business has several consequences, as the limited space and resources of a business cannot deal with the requirements to function normally. Simply speaking – no business can afford to go on normally with all employees maintaining a 6-ft gap at all times!

This means that certain consequences will be felt, such as –

  1. Disruption of Supply Chain: Businesses will have to deal with very unstable supply chains, and find alternative methods of procurement to ensure continued production. Social distancing means that all logistics transport and related labour personnel cannot interact with each other normally and hence function like they used to.
  2. Remote workforce: The majority of staff in companies will have to get used to working from home on rotation basis, as social distancing will not allow for the normal volume of employees to function inside the limited office/shop area. All the personnel whose physical presence is not essential will need to provide their services from home, and companies will have to facilitate the same efficiently.
  3. Reduced physical interaction: The physical interactions that are common in business, such as employee-employee or employee-customer or employee-vendor interaction, will all need to cease as much as possible. All these interactions must hence be turned digital to the extend possible.

Businesses have found a common solution to deal with social distancing requirements and quarantine conditions – cloud ERP software. By automating their business processes and eliminating unnecessary human dependence, cloud ERP software is helping businesses stay alive without the need for regular human-to-human contact.

The Answer - Cloud ERP Software

Cloud ERP Software will be the ultimate solution to help businesses facilitate social distancing, and help them through lockdown or quarantine conditions. Since social distancing is going to become a long-term requirement (even after the lockdown is lifted), businesses must search for cloud ERP software that can provide matching long-term solutions.

Cloud ERP Software can help a business in various ways when it comes to social distancing and fighting the spread of the COVID-19 pandemic –

Limiting Physical Contact through Digitalization of Business Process

Physical contact must be avoided at all cost, and this includes more than just the obvious human-to-human contact by touch or proximity. The COVID-19 virus is extremely contagious, and can spread through indirect contact via surfaces, paper, cloth, tools, etc. With cloud ERP software, you can avoid all paperwork and physical contact by digitizing your data and transferring everything to a cloud storage facility.

Automated Business Processes

By implementing cloud ERP software, business processes can be automated and streamlined, eliminating the need for unnecessary, tedious and repetitive manual labour. Automating fixed everyday tasks and processes can also provide the additional benefit of eliminating human-error, something that is commonly seen when menial tasks are concerned. With modules such as procurement to pay, inventory management and compliance management, a lot of such menial everyday tasks become the ERP software’s headache instead of your employees’.

Facilitating Work-From-Home

With cloud ERP modules such as project management, finance and accounting, sales and CRM, a large part of any company’s workforce can function remotely. Such ERP software will allow the employees to function efficiently and stay productive despite work-from-home situations, since all the data is integrated in one platform, and there is seamless communication and collaboration.

TYASuite Cloud ERP Solution

Choosing to implement cloud ERP software is not always simple, especially for SMBs and Start-ups. There are many factors to consider, and making the wrong choice can leave you with an ERP that is ill-suited to your business, not worth the investment and a waste of your precious time and money.

This is why TYASuite Cloud ERP Solutions provides you with the best possible choice. Specially designed to fit the needs of any business, irrespective of size and nature, the TYASuite Cloud ERP is –

Affordable

With customized pricing plans and a pay-as-you-grow approach, you decide how much you want to spend, and how much you want in return. The TYASuite Cloud ERP software is customizable to your specific needs to ensure maximum ROI and minimum implementation costs.

Scalable

Regardless of your business size, the TYASuite Cloud ERP software is a one-size-fits-all solution. With customized plans for different scales of business, you can start wherever you like, and scale up or down based on your evaluation of the software’s performance and efficacy with regard to your business processes and specific requirements.

Flexible

Unlike traditional or big-brand ERPs that have on-premise software, the TYASuite Cloud ERP is flexible to adapt and suit your business’ existing processes and functions. With integrated modules for each functionality, you choose what you need, and fit the pieces accordingly.

Plug and Play ERP

TYASuite Cloud ERP is the world’s 1st Plug and Play ERP Solutions. It has 2000+ pre-customized features which can be modified to suit your requirement in the click of a button. Join the plug-and-play ERP movement and enjoy the benefit of going live within 7 days with your own process. Never compromise with your requirements.

With our full deck of ERP tools, get access to Procurement to Pay, Project Management, Inventory Management, Asset Management, Vendor Management, Finance and Cloud Accounting modules to make sure you stay on top of the coming economic revolution. Never miss out on important news, manage your business seamlessly and enhance your profitability by going digital with TYASuite.

Sign up today for a FREE DEMO, and get 3 months usage of our Cloud ERP for no cost!

May 29, 2020| 6 min read| views 614 Read More

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Plug and Play Cloud ERP: Flexible, Affordable and Reliable

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Ravi Kant

Atma-Nirbhar Bharat- The INR 20 Lakh Crore Package Deal

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Deepak Kumar Daga

Revised TDS Rate Chart for FY 2020-21 (w.e.f May 14, 2020)

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A Guide to risk management in procurement

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Ravi Kant

Re-Assessment Of Risk Post Covid- Must For CFOs And Auditors

The COVID-19 outbreak incident surfaced in Dec 2019 and the condition has continued to evolve throughout after April 30th, 2020. The lockdown has eased in certain parts of the country based on the zone ratings. However, the overall risk remains high.

Finance & accounting along with internal auditing will have to undergo a sea of changes to keep up with this pandemic. This publication covers key areas to be considered during and after the pandemic by CFOs and Internal Audit professionals.

1. Pandemic risk not covered as part of Enterprise Risk Assessment

Your Company is not the only one who has not covered the pandemic as part of the Enterprise Risk Assessment. However, you must need to response faster now. Below are the key actionable strategies for such a scenario:

  • Customer engagement should be the priority. Clear and factual communication should be established with customers on a regular basis. Inputs/queries from the customers should be responded to in time with clear facts.
  • Workforce protection will ensure that employees are taken care of. Clear and precise communication should be maintained with all employees on dos and don'ts during this time while explaining what the company is doing to take good care of them. Further, every employee's needs, health and safety, and fears should be addressed in a consistent manner.
  • Supply chain should be stabilized by connecting with the existing suppliers while identifying alternate sources/suppliers and minimizing the lead time for supplies.
  • Stress testing of financials will be important to understand how long the company can survive and what can be done to improve the situation. Different scenarios with a mix of revenue, receivables-collections, Govt. rules/ guidelines, credit period, fixed cost, variable cost and commitments need to be considered.
  • A single source of truth from the company is going to be a major binding factor. The employees, the customers, the suppliers, and other parties are going to rely on it and assess the company's situation during these trying times.

2. SOX/ IFC/ ICFR program adjustments

  • Reassess scoping based on the Q4 2019-20 no. and consider the impact of COVID-19 on estimates.
  • Business Continuity coverage of financials and relevant data should be assessed.
  • Delegation of authority (DOA) should be re-assessed and steps should be taken to flatten it.
  • Reduced staff availability should be factored into the planning.
  • Outsourced service provider (OSP) SOC reports are to be reviewed thoroughly. Pass on key concerns on COVID-19 with OSPs.
  • Reassess controls as to whether they can be performed from different geographies.
  • Remove single-person dependency.
  • Recording control activities (like covering meetings, and reviews) with the right individuals as audit evidence. This should be done after considering the company?s policies and the law of the land.
  • Move from paper-based entry to digital entry and digital approval (date, name of the reviewer and time). If required implement some automation tools for your business process with Procurement to Pay software, Project Management Tools, Compliance Management Tools, Vendor Management Software and others.
  • SOD conflicts may arise due to business needs but audit trail should be present. Good cloud ERP will be handy in these conditions.
  • Management override checks should be monitored frequently.

3. Contract compliance, modification and termination

  • Review whether a tracking mechanism for contract compliance is in place and operating effectively. There are many compliance management software in the market and you can take the advance of the same to manage your contract compliance.
  • Reassess contract clauses for relief during this time (like termination rights, disaster recovery and business continuity, notice, force majeure, insurance).
  • Analyze contracts which can be modified to meet:
  • Revised business plan,
  • Govt. guidelines (like delay in rent collection, salary deductions and employee termination).

4. Business continuity and disaster recovery

  • Tone at the top covering communication with customers, employees, supply chain vendors, local communities and law enforcement authorities.
  • Business plan will need revision considering reduced staff, business trends and flattening of DOA.
  • Reassess customer/business trends cutting down on production; re-forecast your capacity and resource requirements.
  • Manuals/SOP to be updated with relevant BCPDR steps and the same should be easily accessible. Many Cloud ERP software has inbuilt function of managing SOPs at user role level.
  • Use space on the local drives/shared drive/cloud to store daily work of all employees. Project Management software can be very useful in these moments.

5. IT security and automation opportunities

  • User access control - request and use of such controls to be monitored. Your ERP must have option to monitor and approval process to change any user role and track those changes.
  • Constant communication for cyber awareness, threat detection, practical examples and responses to promote proactive identification of malicious activity.
  • Security of Company data while using hand-held devices should be assessed.
  • Data security and integrity during transit.
  • Adequacy of licenses and third party applications should be done periodically.
  • Assessment and action on automation opportunities.
  • Financial transformation processes should be activated and tested now.

6. HR management

  • Remote working will require clear guidelines and reliable technology. Cloud Software has become an item is necessity now.
  • Flexible working hours should be incorporated in day-to-day work.
  • Absenteeism/productivity will need a new definition and new set of rules.
  • Contract employees are going to be a new norm among companies who need a specific skill set only for a particular period during the year.
  • Employee goals, manpower-budget and hiring policies will need revision. Candidates with an aptitude to work remotely will be preferred.
  • Communicate effectively and often with employees.

7. Adjustment to internal audit plan

  • Internal audit plan to be revised wherein new items which are now relevant w.r.t. COVID 19 will be scoped in and items not relevant now will be scoped out/ frequency will be adjusted.
  • Plan the audit calendar with fewer employees.
  • Use of technology, data analytics and electronic work paper has to be incorporated.
  • Develop steps which reduce interactions/inputs from Business personnel.
  • Consider adopting an agile internal audit plan wherein a short term plan is developed for key risk areas with tight schedules. This will help the company match their pace with the fast changing risk environment.

8. Compliance management

  • Tracking of changes to Finance Act 2020 and other relevant acts (like indirect tax, local laws, relief provided by Govt., SEC) should be done on a real time basis.
  • Tracking compliance with all laws and regulations and non-compliance should be highlighted.
  • Tracking correspondence with Govt./regulatory officials and fixing responsibility.
  • Ensuring timely action.
  • Compliance Management Tools will be a savior in this time.

9. Supply chain management

  • Identifying alternate source/suppliers with lead time for supplies.
  • Arrange for requisite Govt./local admin permissions for supplies/resources.
  • Review the current stock/capacity and lead time to assess the ability to meet the revised business plan.
  • Identify potential disruptions in the supply chain and ways to address it.
  • Ensure compliance with relevant laws of the land (like OFAC, Govt. guidelines) when dealing with overseas/new vendors.

10. Treasury management

  • Revisit working capital requirements considering revised cash flow projections and new set of assumptions.
  • Constant co-ordination will be required with all departments to identify priority and non-priority payments.
  • Identifying, assessing and acting on the Govt. stimulus/credit support and its long term implications.
  • Reassess all short term investments in light of the current economic scenario.
  • Evaluate various financial positions taken (like hedge, put option).

11. Effective and timely book closure

  • Book closure checklist should be detailed with names of doer, reviewer and timelines. The same should be updated on a real time basis to capture all changes.
  • The doer and the reviewershould have access to data and systems/applications.
  • A Platform should be developedwhich provides access to the reviewer of the data prepared by the doer, proposed entries, reconciliation and supporting documentation. The entry be pushed to the ERP/accounting software once the same is approved.
  • Approval documentation should be saved for control testing.

12. Post lockdown suggestions

  • Develop a business plan with a conservative approach towards customer's expectations and future economic scenario. At the same time, explore new markets and products.
  • Take a hard look at all the contracts which made the company bleed during the pandemic and devise ways to safeguard company's interest in the future.
  • Revising the operating model to adjust to new safety expectations from the client, employees and vendors.
  • Revisit the supply chain and move operations from offshore locations.

a. To near the production site, or

b. At the production site.

  • Invest in technology which can ensure.

a. Reduction in human-to-human interaction,

b. Remote working,

c. Data security, and

d. Data encryption facility during transit.

  • Re-assess long term capital commitments.
  • Revise resource management with a fresh look at contract work force across all levels.
  • Reduce manual work to the maximum extent possible and move from a person/individual driven to a process driven working environment.

If you are not sure how to proceed in the current circumstances, you can reach out to the author Mr. Ravi at Ravi.k@tya.co.in for free guidance and consultations.

TYASuite is giving various performance improvement and remote management software for FREE. You can avail any of the software and improve efficiency and manage risks while fighting the COVID-19. Procurement to Pay Software, Compliance Management Software and Project Management Software has been in high demand since Covid-19 outbreak. What best is that you can go live in 7 days with our Plug and Pay ERP.

May 08, 2020 | 9 min read | views 8396 Read More
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MSMEs Success Post Covid: Government Plans and Initiatives

MSMEs are the lifeblood of the Indian economy, and experts across the globe have agreed that they will be instrumental in the recovery of the country's economic health from the COVID-19 financial crisis. They are also the sector that has been worst affected by the economic downturn of the global pandemic, as they lack the financial cushion required to weather such a violent storm of losses due to the lockdown.

The Ministry of Micro, Small and Medium Enterprises (MSME), Govt. of India, has formulated several new schemes to help Indian MSMEs survive this crisis, and here is a quick summary of those benefits-

1. Priority refund of GST and Income tax upto Rs. 5 lakhs with immediate effect

2. Notification regarding Taxation - GST and TDS relaxations - Relaxations have been made by the Income Tax Department regarding tax compliance timelines extending timelines to 30th June for the filing of belated/revised tax returns for FY 2018-19. Furthermore, any delayed payment of self-assessment tax made between 20th March 2020 to 30th June 2020 would attract reduced interest rate of 9% per annum (p.a.) instead of 12% p.a.

The payment of TDS for the month of March 2020 has also been addressed and delay of payment will attract a reduced rate of interest at 0.75% per month (instead of 1.5%). The filing of TDS returns for the FY 2019-20 has been granted extended timelines to 30th June. The deadline for the Aadhar-PAN linking has been extended from 31st March to 30th June, 2020.

3. Notification about the "Companies Fresh Start Scheme, 2020" - The ministry of corporate affairs has introduced the ?Companies Fresh Start Scheme 2020? and revised the ?LLP Settlement Scheme, 2020? to provide relief to law-abiding companies and LLPs during the COVID-19 crisis. The new amendments will allow companies and LLPs much longer timelines to comply with various requirements under the Companies Act 2013 and the LLP Act, 2008. Further, it allows a one-time waiver of additional filing fees for delayed filings during the period starting of 1st April to 30th September, 2020, offering companies and LLPs an opportunity to make a ?fresh start?. If any MSMEs has not filed their ROC annual or other return, they can file the same now without any late fee or penalties. If you need any assistance on the same, or you want to know more about the same, you can reach out to our expert team at CS@tya.co.in.

4. Notification on Amendment in the EPF Scheme - The Ministry of Labour and Employment announced an amendment in the EPF scheme to allow withdrawal of non-refundable advance by EPF members. Field offices have been directed to process all such claims promptly. All members of the EPF scheme are eligible for these benefits, and permitted to withdraw upto the amount of basic wages and dearness allowance for three months, or upto 75% of the amount standing to the member's credit in the EPF account, whichever is lesser.

5. Delinking ECR Return with Payment (under PF) - This is a significant step. Currently, companies were not allowed to file the PF returns without payment. Non-filling of PF return had severe consequences. The Companies now can file the ECR return without payment and can pay the amount later and also avail the benefit of extended due dates for payments. Further, the due date for March 2020 has been extended to May 15th, 2020.

6. EPF Contribution by Government on behalf of Companies - The labour ministry notified the special scheme wherein the government will contribute 24% of the employee and employer provident fund share per month for three months to PF accounts of employees earning less than Rs 15,000 to tide over the impact of Covid-19 on small establishments. Refer to detailed guidelines at https://www.epfindia.gov.in/site_en/covid19.php.

7. Extension of Professional tax Return for April 2020 and annual renewals - Karnataka government has extended the due date for monthly return for March 2020 and now the returns can be filled till May 20th, 2020 without any interest or penalty. Similar extension has also been given to annual enrolment renewal which was due on April 30, 2020. The same can be done now by May 30th, 2020.

8. Introduction of Covid 19 Start-up Assistance Scheme (CSAS) - This scheme will provide assistance to innovative startups that have demonstrated the ability to adapt to the economic impact of Covid-19 and ensured its employees safety and financial stability.

9. Extension of Interest Subvention scheme for MSMEs - Government 2% interest subvention scheme was supposed to end on March 31st, 2020, however, Government has decided to extend the same to April 2020 as well.

10. Change on MSME definition - Government is working to update the definition of MSME, to include a much larger base of companies to avail various benefits designed for MSMEs.

11. Launch of SAFE, SAFE- Plus and SMILE Schemes by SIDBI - The special scheme will help MSEs to acquire equipment, plant and machinery and other assets including raw materials required for production or delivery of services. It will also help meet additional emergencies to ramp-up supplies of these essential products.

12. Notification about Movement of Essential Goods & Services - The Ministry of Home Affairs has demanded that unhindered movement of essential goods and services is to be ensured nation-wide during the lockdown. This has been conveyed in writing to all states and UTs, who have also been advised to set up 24x7 control rooms to help protect essential service providers from unwarranted stigmatization and harassment.

The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, has also set up a control room for real-time monitoring of the status of transportation and delivery of goods, manufacturing and delivery of essential commodities to the common man and the difficulties being faced by various stakeholders during the lockdown period.

13. Notification by the Ministry of Food Processing Industries on Task Force - Union Food Processing Industries Minister Smt. Harsimrat Kaur Badal assured industry representatives that a dedicated Task Force had been established to resolve all problems being faced by the food processing industry, consisting of all senior officials of the food processing industry as well as Invest India members. This task force will be addressing problems regarding manufacture and movement of food products, including factory shutdowns, permissions to operate warehouses, personnel movement and logistic disruptions.

14. Notification regarding CIRP Regulations - The Ministry of Corporate Affairs said that the IBBI has amended CIRP Regulations to provide relief in corporate insolvency resolution process due to the COVID-19 outbreak. The Insolvency and Bankruptcy Board of India (IBBI) stipulated that the period of lockdown imposed by the central govt. shall not be counted as part of the timeline for any activity that could not be completed in relation to a corporate insolvency resolution process. The amended regulations can be found at www.mca.gov.in and www.ibbi.gov.in.

15. Information portals set up - The GoI has set up special portals for the dissemination of COVID-19 related information, as follows -

· Invest India Business Immunity Platform (BIP) portal at  investindia

· List of Various existing MSME Schemes can be obtained at https://my.msme.gov.in/MyMsme/Scheme.aspx

Armed with these facts, MSMEs and small businesses can take the full aid of the Indian Government to survive the COVID-19 economic fallout, and recover their losses in the times to come once the lockdown ends. Making use of these newly afforded benefits, MSMEs must now re-plan their business strategies, and adapt accordingly. Invest India's BIP has been specially designed to help this particular effort, and MSMEs must take the full advantage being given to them.

This is the beginning of the digital age for small businesses, and new-age affordable cloud ERP solutions are being designed to help them transition to the digital formats. At TYASuite Software Solutions, we have designed a plug-and-play ERP software that is affordable, flexible and scalable to fit the needs of small businesses, startups and MSMEs. Visit our website for more details, and sign up for a Covid Special 6-month FREE DEMO designed specially to help you survive the COVID-19 pandemic.

May 01, 2020 | 7 min read | views 3209 Read More
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TYASuite

Top Tips For MSMEs to survive and thrive after Covid-19

India had initially declared a nationwide 21-day lockdown to counter the spread of the CoVid-19 pandemic. To curtail it further, India brought Lockdown 2.0! Many people around the world are commending this as a great step against the spread of the virus. While this may be true, it is also true that the implementation of the lockdown has left much to be wanted, and one of the biggest victims has been the Indian economy. All businesses, from MSMEs to industry giants, are now at a loss as to how to survive the business downturn. Business owners must now take drastic steps, or they simply will not make it through this.

Many analysts are convinced that the overall global losses are in danger of surpassing the combined losses during WWI and WWII! The National Statistical Office (NSO) calculated that the current job-market was at its worst, and unemployment had peaked to the max in 45 years.Barclays has theorized that the lockdown could bring the country’s growth down to 2.5% from the earlier estimate of 4.5%.

Here’s a more detailed look at the situation, sector-wise, of India’s industrial health –

1. Manufacturing Sector – Most of India’s major manufacturing companies have entirely shut down their operations or significantly reduced them – including Tata Motors, Aditya Birla Group, Larsen and Toubro, UltraTech Cement, Thermax, Grasim Industries and Bharat Forge.

Manufacturers such as Dabur India, ITC and Hindustan Unilever have also closed all factories not directly related to essential products.

2. Essential Goods and Services – The essential service industry, including food, healthcare, power and communications, though least affected, have also recorded all-time lows due to the massive disruption in the supply chain.

3. Services Industry – The services industry is also among the worst victims of the lockdown, with the logistics sector taking the brunt. Even the e-commerce sector, expected to be the least affected, has been brought down to its knees by the lack of logistics and transport facilities. E-commerce giants like Amazon and Flipkart have all closed their operations barring only essential consumables. Industries like Travel and tourism, Hospitality and Restaurant etc are the worst hit and may take years to bounce back.

There is a global reaction of maintaining normalcy, as much as is possible, through the implementation of work-from-home options, automation and cloud -based technology to deal with the situation.

To figure out how to survive the corona aftermath, the most easily estimated steps that the Indian industries will probably follow once the lockdown has ended are –

1. Generalized Cost-reduction – most sectors of industry have already begun to experience the general tendency of cost-reduction during the lockdown. Global downsizing will increase and motivate Indian business-owners to lay off all employees that aren’t critically essential to the survival of their businesses.

2. Increases in automation – while dealing with a reduced staff, most companies are going try increasing the amount of automation in their business processes. All functions that can possibly be automated without high investment will be done so with great haste. Cloud ERP and other Cloud business Software like E-Procurement software (cloud procurement to pay software), Project Management Software, Inventory Management Software, cloud Compliance Management Software etc. will be in great demand. It will become essential for survival. Till the time there is a cure for Covid-19, business will never want to take risks again and will plan to move for cloud platforms.

3. Prioritize their products and clients – companies are going to have to focus on their strengths, and may remove products from the market, prioritizing their most demanded and profitable products and clientele with only the more revenue creating ones kept in the books. It is very critical to monitor your projects, clients and products profitability and remove non-profitable products/clients and projects at the earliest. Project Management software can help you seamlessly track the profitability of your customers and projects.

4. Reform business strategy – According to a recent set of recommendations by KPMG[1], companies will have to assess their short term liquidity to meet operational payments, make necessary adjustments to their capital structures, defer non-essential capex and explore potential disposal of non-core assets to make balance sheets lean.

This is when the industry must find the key solutions towards their survival post the lockdown. Since downsizing will mostly become the easiest way to cut back on company expenditure, affordable automation of business processes must be ensured. Fortunately, the modern market is full of opportunities for small businesses to automate their process.

We at TYASuite have a product range that has been automating business process and helping companies reduce their costs while increasing their profitability for many years now, and we believe that we can be a big part of the solution that MSMEs will need to survive the post-lockdown crisis.With the TYASuite Plug and Play Business Software product, you can:

1. Streamline and automate your procurement function: Our Procurement to Pay Software is designed to automate your procurement process seamlessly. With guaranteed reduction in operation time and cost of your procurement function and accounting function by more than 80%. TYASuite E-Procurement software can be your savior in this difficult time.

2. Optimize your Finance function – Make your finance function efficient with our Plug and play finance automation tools, such as Automated Accounting Software, Automated FAR Software (Fixed Assets Register) , Expense and Time management software, and reporting tools. Once you automate your finance function, you can rest easy and let the software do the work while you supervise and analyze the data we provide. Our automated TDS and GST tools are the best in the industry to ensure that your managers can spend more time on non-routine analysis work.

3. GST Related Compliances - With our Multi-location-GST function, your finance team can automate all GST related filings with a click. If you are a multi-location company and still using traditional accounting software with single GST location, it is high time for you switch to our Multi-location GST Software and reduce your team hours significantly. With our Multi-location GST Software, your team can seamlessly raise multi-location Sales Invoices and file multi-state GST returns with a click, and enjoy many more time saving functionalities.

4. Customer and Project Profitability - Our Project Management Software will make it easy for you to manage your projects digitally, and help your employees fulfill their functions remotely. Set tasks, manage priorities, track project progress, meet deadlines and collaborate with the entire workforce in real-time from the comfort of your computer or smartphones. Further, the Project Management software will help you to monitor client profitability and project profitability with a click helping you to take timely decisions and plug your cash burn.

5. Inventory Management - Our Inventory management software will ensure streamlined inventory holding costs, helping you identify your slow-moving inventory and re-use or liquidate the slow-moving items quickly. Further, with real time inventory and sales report at your fingertips, you can reduce your overall inventory cost and improve your profitability.

6. Compliance Management - When the world is looking for cost savings and survival, it would be dangerous to lose money due to non-compliances. As a CFO or founder, our Compliance Management Software will make it easy for you to make sure that your company does not violate any of the applicable regulations and you can monitor and manage all compliances with a single click. It is a must have tool for working in a multi-location environment.

In the times to come, it is imperative to ensure that the MSMEs of India stay afloat, as they are the ones at the greatest risk of insolvency and imminent bankruptcy. While the government is making many promises to help them in as many ways as they can, the onus is on the companies themselves to adapt and transform in the required ways to handle the onslaught of post CoVid problems they have never prepared for. The only way to have a fighting chance is to turn to digital technology, and make sure that the companies, and the people who are in it, stay safe, healthy and protected.

To help MSMEs, TYASuite is helping companies to adopt these must have technologies for MSMEs at an affordable price. Avail a Special extended No-obligation Free Demo for all of our product ranges during this global economic crisis.

As an Indian Company, TYASuite is committed to help Indian MSMEs in surviving the CoVid Epidemic and consequent financial crisis.

[1] - https://home.kpmg/in/en/home/insights/2020/04/navigating-the-covid-19-crisis.html
 
Apr 27, 2020 | 8 min read | views 1360 Read More
TYASuite

Ravi Kant

ICAI Guidelines on Covid 19 Fallout For CFOs and Auditors

The whole world is coming out with their advisories for dealing with the implications of the Covid-19 Fallout. The sole accounting body in India has not left its footprint for the same.

Although SEBI has given more time to file earnings reports, corporates are still trying to meet their internal deadline amidst this fight against the Coronavirus. This puts a very high pressure on CFOs and Auditors to close the numbers and sign off while working from home.

The ICAI has released its guidelines for CFOs and Auditors on how to handle certain specific accounting issues due to Covid-19.

We have summarized possible accounting implications under Ind AS reporting related to Covid -19.

1. Inventory:

Reconsider Inventory Valuations to the “Net Realizable Value” considering the following:

  1. Reduced movement in inventory
  2. Decline in selling price
  3. Inventory obsolescence due to lower expected sales
  4. Amount of fixed overhead allocated to each unit of production shall not be increased as a consequence of low production or idle plant.

2. Leases

  1. Changes in the terms of lease arrangements or lessor may give some concession to the lessee with respect to lease payments, rent free holidays etc. All this may lead to the application of “Accounting relating to the Modification of leases”
  2. Anticipated revisions should not be considered
  3. Discount rate used to determine the present value of new lease liabilities may need to incorporate any risk associated with COVID-19
  4. Compensation given by Government to the lessor for providing benefits to lessee can be accounted either as lease modification as per Ind AS 116 or government grants as per Ind AS 20.

3. Revenue

  1. Due to COVID-19, there could be likely increase in sales returns, decrease in volume discounts, higher price discounts etc. Under Ind AS 115, these factors need to be considered in estimating the amount of revenue to recognized, i.e., measurement of variable consideration
  2. Ind AS 115 also requires disclosure of information that allows users to understand the nature, amount, timing and uncertainty of cash flows arising from revenue. Therefore, entities may have to consider disclosure about the impact of COVID-19 on entities revenue

4. Going Concern Assessment

  1. Management of the entity should assess the impact of COVID-19 and the measures taken on its ability to continue as a going concern
  2. The impact of COVID-19 after the reporting date should also be considered and if, management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to do so, the financial statements should not be prepared on going concern basis
  3. Necessary disclosures as per Ind AS 1 shall also be made, such as material uncertainties that might cast significant doubt upon an entity's ability to continue as a going concern

5. Property Plant and Equipment

  1. PPE can remain under-utilized or not utilized for a period of time. It may be noted that the standards require depreciation charge even if the PPE remains idle
  2. The management may review the residual value and the useful life of an asset due to COVID-19 and, if expectations differ from previous estimates, it is appropriate to account for the change(s) as an accounting estimate

6. Impairment of non-financial assets

Preparer to consider the following factors for impairment testing

  1. Contraction in economic activity due to COVID-19
  2. Changes required in the recoverable amounts before the outbreak of COVID-19
  3. Adjustment required in the discount rate to measure the recoverable amount
  4. Update required in management’s forecasts/ budgets for future cash flows
  5. Whether assumptions are reasonable for estimating the value-in-use and fair value less costs of disposal and ensure that the impairment loss

7. Borrowing cost

The capitalization of interest is suspended when development of an asset is suspended. The management may consider this aspect while evaluating the impact of COVID-19

8. Provisions, Contingent Liabilities and Contingent Assets

  1. Some contracts may become Onerous due to increase in cost of material/labour, etc. Management should consider whether any of its contracts have become onerous and account the same.
  2. Ind AS 37 also requires assets dedicated to a contract to be tested for impairment before a liability for an onerous contract is recognized.
  3. Management should disclose that it has assessed whether executory contracts are onerous due to the adverse impact of COVID -19
  4. If the management is unable to assess whether some of the executory contracts have become onerous due to inadequacy of information, the same should be disclosed
  5. A provision for Restructuring costs is recognized only when the general recognition criteria for provisions are met and when there is a detailed formal plan for the restructuring and there is evidence that the entity has started to implement a restructuring plan (for example, by dismantling plant or selling assets or by the public announcement of the main features of the plan)
  6. Entities may have insurance policies that cover loss of profits due to business disruptions due to events like COVID-19. Entities claims on insurance companies can be recognized in accordance with Ind AS 37 only if the recovery is virtually certain (i.e. the insurance entities have accepted the claims and the insurance entity will meet its obligations)
  7. Ind AS 37 does not permit provisions for future operating costs or future business recovery costs. However, disclosure of nature and timing of outflow is allowed

9. Income Tax

  1. Entities with deferred tax assets should reassess forecasted profits and the recoverability of deferred tax assets, considering the additional uncertainty arising from the COVID-19 and the steps being taken by the management to control it
  2. Management might also consider whether COVID-19 affects its plans to distribute profits from subsidiaries and whether it needs to reconsider the recognition of deferred tax liability in connection with undistributed profits
  3. Management should disclose any significant judgments and estimates made in assessing the recoverability of deferred tax assets, in accordance with Ind AS 1.

10. Fair Value Assessment

In determining the Fair value measurement or disclosure requirements, adequate management consideration and professional judgment is required in determining whether the quoted prices are based on transactions in an orderly market. The following factors should be considered:

  1. Significant volatility or indications of the significant decline in market prices of financial instruments like equity, bonds and derivatives.
  2. Significant decrease in volume or level of activity.
  3. Preparers should be guided by the application guidance in Ind AS 113 that indicates circumstances in which the transaction is not considered an orderly transaction (i.e. not a forced liquidation or distressed sale)
  4. Preparers using valuation techniques may have to consider the impact of COVID-19 on various assumptions including discount rates, credit-spread/counter-party credit risk etc.

11. Derivative Accounting

Critical factors to be considered for Hedge accounting:

  1. If entities have adopted cash-flow hedge accounting for certain forecasted transactions, they should assess whether the transaction still qualifies as a highly probable forecast transaction considering their business environment.
  2. Assess any hedge ineffectiveness and record the impact of that in profit and loss
  3. Estimate the fair value of derivatives, including paying special attention to underlying assumption of derivatives, e.g., forward curve of interest rate, foreign currency, commodity etc.

In case you need to ascertain implications on your business, please reach out to our experts for a Free Consultation. You can email your queries to Mr. Ravi at ravi.k@tya.co.in

In case you wish to automate your Accounting and Inventory valuation, you can subscribe to TYASuite’s Advanced Cloud ERP.

In support of MSMEs in this difficult time, TYASuite is offering 6 months free subscription to their E-Procurement Software.

Apr 24, 2020 | 7 min read | views 3466 Read More
TYASuite

Deepak Kumar Daga

New TDS Rate Chart for the Financial year 2020-21

TDS compliances are the most common yet most important compliance for the business world. Every year during the finance budget government announces the TDS rates which shall be applicable for the coming Financial Year. Due to the changing economic scenario and other factors, the government introduces a few new sections or amends certain existing sections.

The Finance Act 2020 has introduced below new TDS sections/key amendments in TDS Sections which the business enterprise must be aware of:

TDS Details Section Name TDS Rates (in %) (AY 2021-22) Expert Remarks
TDS on Mutual Fund Income 194K 10%  
TDS on E-Commerce Transactions 194O 1% (5% in case of no PAN given to E-commerce operator) Applicable to All E-Commerce Companies
TDS on Technical Services 194J 2% This will open up the litigation as clear guidelines are not given to identify and differentiate the technical services from professional services on which 10% TDS is applicable.
TDS on Salaries 192 New Reduced Slab rate for Salaries People introduced Companies can take a declaration from employees as to which method they want to follow, and employee can change their election while filling their return.

For the benefit of our readers, we have summarized complete TDS Rates applicable for FY 2020-21 (AY 2021-22).

TDS Rate For Assessment year 2020-21 and Assessment year 2021-22:

Particulars TDS Rates (in %)(AY 2020-21) TDS Rates (in %)(AY 2021-22)
1 where the person is resident in India-    
Section 192: Payment of salary Normal Slab Rate Normal Slab Rate/New Reduced Slab Rate
Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee.(Monetary Limit – Rs 50,000) 10 10
Section 193: Interest on securities    
a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act; 10 10
b) any debentures issued by a company where such debentures are listed on a recognized stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder; 10 10
c) any security of the Central or State Government; [i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018] (Monetary Limit – Rs 10,000) 10 10
d) interest on any other security 10 10
Section 194: Dividend to Domestic Companies 10 (Monetary Limit – Rs 2,500) 10 (Monetary Limit – Rs 5,000) (w.e.f. 01/04/2020)
Section 194A: – Interest other than interest on securities – Others (Monetary Limit – Rs 5,000) 10 10
Section 194A: Banks / Co-operative society engaged in business of banking / Post Office (Monetary Limit – Rs 40,000) 10 10
Section 194A: Senior citizen Interest To Senior Citizen from Deposits with banks. Deposits with post offices. Fixed deposit schemes. Recurring deposit schemes. (Monetary Limit – Rs 50,000) 10 10
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort (Monetary Limit – Rs 10,000) 30 30
Section 194BB: Income by way of winnings from horse races (Monetary Limit – Rs 10,000) 30 30
Section 194C: Payment to contractor/sub-contractor (Monetary Limit – Rs 30,000 per contract or Rs 1,00,000 for aggregate amount during the year)    
a) HUF/Individuals 1 1
b) Others 2 2
Section 194D: Insurance commission (Monetary Limit – Rs 15,000) 5 5
Section 194DA: Payment in respect of life insurance policy w.e.f. 1/9/2019, the tax shall be deducted on the amount of income comprised in insurance pay-out (Monetary Limit – Rs 1,00,000) 5 5
Section 194EE: Payment in respect of deposit under National Savings scheme (Monetary Limit – Rs 2,500) 10 10
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India 20 20
Section 194G: Commission, etc., on sale of lottery tickets (Monetary Limit – Rs 15,000) 5 5
Section 194H: Commission or brokerage (Monetary Limit – Rs 15,000) 5 5
Section 194-I: Rent (Monetary Limit – Rs 2,40,000)    
a) Plant & Machinery 2 2
b) Land or building or furniture or fitting 10 10
Section 194-IA: Payment on transfer of certain immovable property other than agricultural land (Monetary Limit – Consideration exceeding Rs 50,00,000) 1 1
Section 194-IB: Payment of rent by individual or HUF not liable to tax audit (Monetary Limit – Rent for the month or part of the month exceeds Rs 50,000) 5 5
Section 194-IC: Payment of monetary consideration under Joint Development Agreements 10 10
Section 194J: Payment for fees for Technical services, Professional services or royalty etc. (Monetary Limit –Rs 30,000 p.a)    
a) Cases, wherein, the payee is engaged in the business of the operation of Call Centre only 2 2
b) In case of fees for technical services (not being a professional royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic film): New Amendment effective from 1st April 2020) 10 2
c) Professional royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic film 10 10
d) In case of fees for any other professional services 10 10
e) In case the payee fails to furnish PAN 20 20
Section 194K: Payment of any income in respect of a) Units of a Mutual Fund as per Section 10(23D) b) Units from the administrator c) Units from specified company New Amendment effective from 1st April 2020) N.A. 10
Section 194LA: Payment of compensation on acquisition of certain immovable property (Monetary Limit –Rs 2,50,000 p.a.) 10 10
Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. 10 10
Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] 10 10
Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) 25% in case of Individual or HUF 30% in case of other resident person 25% in case of Individual or HUF 30% in case of other resident person
Section 194M: Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. Tax shall be deducted under section 194M when aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh. 5 5
Section 194N: a) Filed the returns of income for all of the three assessment years relevant to the three previous years and cash withdrawals exceeding 1 cr 2 2
b) Not Filed the returns of income for all of the three assessment years relevant to the three previous years: (This provision is applicable w.e.f. 01 July, 2020) Cash withdrawals from 20 Lakhs to 1 Cr NA 2
Cash withdrawals exceeding 1 Cr NA 2% till 30 June, 2020 and 5% from 01 July, 2020
Section 194O: Applicable for E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform. In case the E-commerce participant does not furnish PAN or Aadhar Number to the e-commerce operator, TDS shall be deducted at the rate of 5% under section 206AA of the Act (This Section is inserted by Finance Act, 2020 which is applicable from 01/10/2020) N.A. 1

Refer our separate discussion on TDS on Non-residents or write an email to our expert at Info@tya.co.in for a free analysis of your TDS on non-resident queries.

In case you wish to automate your TDS compliances, you can subscribe to automated procurement software.

As support to MSMEs in this difficult time, TYASuite is offering a 6-month free subscription to their E-Procurement Software.

 

Apr 15, 2020 | 8 min read | views 35648 Read More
TYASuite

TYASuite

A Simple Guide to eProcurement Software 2020

EProcurement software solving many burning issues and best in class procurement functions are fast evolving with business demands. More efficiently to improve your entire end to end buying and payment cycle with Cloud-based ERP Solutions. With the ?The power of eProcurement software? streamline your business needs with the help of innovative technologies that can promote Excellence and Sustainability by shifting focus to value creation and strategic development. 

Start-ups and SME?s at Glance: eProcurement 

EProcurement software also adds significant value for Starts-up?s and small businesses to cut down the operational cost involved and improve the efficiency of the purchase process. Many studies indicate that an organization can enjoy returns in just three years that measure up to 300% of the initial investment. Everything is Digital with Procurement software, identifying vendors or supplies for placing the order and goods arrival is extremely easy. 

The 3 ?S? Factors: Simplicity, Saving Money and Short time business growth

Switching of eProcurement communicate would not simply cut the operation cost of your business. 

The process lets you communicate your businesses through sophisticated technology for simplification of the better purchasing process and your business organized with optimized plans to the suppliers, rapidly and smoothly.

Despite various advantages of eProcurement software, at its best of efficient control of inventories, reducing the overheads and significant improvement of the purchasing cycle and helps to your business growth in a short time.

Easy Integrate with any Accounting Software?s

Organizations are in a state of confusion because they are numerous offerings of both ERP and accounting software, many of the features look-alike kind of overlap. So, if you streamline entire business by well connecting every department (also include fianc?s and accounting), should start looking out for better cloud ERP that can easily integrate with accounting software. 

But if you are simply looking for to manage the accounting needs, should go any cloud-based accounting software by the well manageable recurring process. As a start-up or a small business, well, to plan to look out for an affordable ERP solution available in the market.

For any organisation, Accounting Software becomes compulsory. Best in Class ERP software?s easy to integrate with any accounting software?s that handles the revenue framework by avoiding human errors and makes flow for transparent financial audit and makes processes easier for business in tax compliance (GST and TDS).

ERP Software handles accounting and financial transactions by reducing the repeating and useless processes and automates the employee?s life-cycle of an organization process plan.

Demand and Benefits of eProcurement Solutions across industries

Consumer demand is increasing, and the possibility of instant real-time inventory, pricing, and populating data has rapidly become a burden for patrons who?ve conventionally relied on manual processes to cultivate and close business deals.

Rewards are priceless for any industry deal with purchasing transactions such as health, insurance, e-Commerce, industrial, manufacturing and many other industries. But implementation may initially be intimidating. Switching to right eProcurement software will revolutionize and optimize workflows can offer extensive benefits, as well as lower costs, fewer errors, and better-quality productivity and supply chain management.

Top Benefits you may not miss:

  1. Increased Productivity with better efficiency such as ordering, invoicing, approvals and payments by reducing the time through automation. 
  2. Reduced Costs by removing paperwork and the costs associated with paper processes.
  3. Shortened Business Cycles with real-time as a part of the automation process and increase capacity of completion of transactions with ease.
  4. Standardization of business Workflows, approvals for purchase orders, request of quotes and proposals. 
  5. Transparency and Control of Tracking improves better visibility, providing end-to-end transparency of all transactions in the procurement cycle

Top reasons should buy eProcurement software

A User-Friendly Interface: Take little time to fill forms, generate invoices and sending them to involved parties should easy manageable with a click.

Real-Time Conversation: With Seamless integrations in real-time, prevents useless spending and efficiently manage within the budget.

Speed and Flexibility: With the innovation of new technologies and cloud computing helps the implementation time from months to days and every organisation is unique in its setup process.

Automated Approval Workflow: Without the need for human intervention, the workflow parameters are set by procurement depart or at management level, the approval should be automated at user and company level control

Mobile Access: In any natural disasters or pandemics like COVID-19 the organisation must be prepared of remote work, with the flexibility of eProcurement software manage approvals through mobile anytime anywhere. It?s all about saving costs.

Automating procurement helps to transform your business growth at Scale

The impact of cost savings comes by significantly procuring the things at the right time and right price from the vendor. Hence, Procurement automation is the answer to simplifying your day to day tasks and today technology will add great value. 

  1. Expedites approval process by fully automating purchase order and enable the quick placing of orders at times.
  2. Provides visibility into your past spend refers to fetching an accurate report of past purchases, order history, supplier quotes, contracts and many others by automation remains in producing the right quality data for better visibility on spending.
  3. Through automation, Promotes see-through communication with suppliers and it is easier for both consumers and suppliers to have real-time communication and tracking of order status.
  4. All contract Maintained in a central repository and accessible through a single click. 
  5. With One-click accessible to all functions, the required information is easily accessible without navigating through multiple systems and it increases Overall Productivity. 

Bottom Line

As it is in the name ?Pro? ? ?Cure?, the software that cures all troubles like a pro to effectively manage all procurement functions such requirement generation, Requirement Generation, Requirement consolidation, Vendor Evaluation, Purchase Order Generation, Receiving Goods or services, Recording of Invoicing and payments.

According to Statista the size of Procurement software applications market will bring in an estimated 5.59 billion U.S. dollars in total revenue in 2020. However, All procurement software providers not able to solve every problem. But it is important to choose the parameters required for business while choosing the procurement software.

Hence look out for eProcurement software that fit your business as all in one solution that helps to automate the procurement process and minimize the bigger problems with your buyer and supplier for a smooth transition.

We have also written a blog on frequently asked questions (FAQ) about Cloud Procurement Software, which you will find it useful.

Apr 10, 2020 | 6 min read | views 1128 Read More