Msme disclosure
This query is : Resolved
13 June 2025
1-With inclusion of Traders in the Definition of MSME as micro, small & medium enterprises, do listed companies have to show such traders separately in msme diclosure in notes to accounts or can it be shown together with other msme enterprises altogether .?
2-Also please advice whether traders registered as medium Enterprise need to be disclosed or Traders -Micro & Small Needs disclosure?
2-Also please advice whether traders registered as medium Enterprise need to be disclosed or Traders -Micro & Small Needs disclosure?
12 August 2025
1. Inclusion of Traders in MSME Definition — Separate Disclosure in Notes to Accounts?
Traders are now included in the MSME definition as Micro, Small, and Medium Enterprises (per latest notifications).
Disclosure Requirement:
As per Accounting Standard (AS) 18 / Ind AS 1 and relevant MCA guidelines, the disclosure of MSME payables (i.e., dues to MSMEs) in the Notes to Accounts should ideally provide clarity on the nature of the enterprises.
Can Traders be shown together with other MSMEs?
Yes, companies can aggregate all MSMEs (including traders) in one disclosure category unless the volume or nature of traders’ transactions is material enough to warrant separate disclosure.
Best Practice:
If traders constitute a significant portion of MSME payables, it’s advisable to show them separately for transparency. Otherwise, a consolidated figure is acceptable.
2. Disclosure Requirement for Traders Registered as Medium Enterprises vs Traders-Micro & Small
Medium Enterprises:
Traders registered as Medium Enterprises are part of the MSME definition, so their dues must be disclosed as part of MSME disclosures.
Micro & Small Traders:
Similarly, micro and small traders must also be disclosed under MSME payables.
Summary:
All categories (Micro, Small, and Medium), including traders, must be disclosed in the Notes to Accounts for MSME payables.
There is no exemption based on trader status or enterprise size from disclosure.
Key References:
MSMED Act amendments and Ministry of Corporate Affairs (MCA) notifications (2023-2025).
Accounting Standard 18 / Ind AS 1 (Disclosure of Related Parties and Significant Accounting Policies).
Guidance on financial statement disclosures by ICAI and MCA.
Traders are now included in the MSME definition as Micro, Small, and Medium Enterprises (per latest notifications).
Disclosure Requirement:
As per Accounting Standard (AS) 18 / Ind AS 1 and relevant MCA guidelines, the disclosure of MSME payables (i.e., dues to MSMEs) in the Notes to Accounts should ideally provide clarity on the nature of the enterprises.
Can Traders be shown together with other MSMEs?
Yes, companies can aggregate all MSMEs (including traders) in one disclosure category unless the volume or nature of traders’ transactions is material enough to warrant separate disclosure.
Best Practice:
If traders constitute a significant portion of MSME payables, it’s advisable to show them separately for transparency. Otherwise, a consolidated figure is acceptable.
2. Disclosure Requirement for Traders Registered as Medium Enterprises vs Traders-Micro & Small
Medium Enterprises:
Traders registered as Medium Enterprises are part of the MSME definition, so their dues must be disclosed as part of MSME disclosures.
Micro & Small Traders:
Similarly, micro and small traders must also be disclosed under MSME payables.
Summary:
All categories (Micro, Small, and Medium), including traders, must be disclosed in the Notes to Accounts for MSME payables.
There is no exemption based on trader status or enterprise size from disclosure.
Key References:
MSMED Act amendments and Ministry of Corporate Affairs (MCA) notifications (2023-2025).
Accounting Standard 18 / Ind AS 1 (Disclosure of Related Parties and Significant Accounting Policies).
Guidance on financial statement disclosures by ICAI and MCA.
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