the Micro, Small & Medium Enterprises Development Act,2006

1. Take the suppliers list from your client.

2. Although practically it is a tough job to see whether a particular supplier comes in the category of MSM; still ask your client about the size of the supplier.  

3. Then come to ledger accounts of the suppliers and see the pattern of  payment. 

4. If the payments are being made within 45 days; no need to worry. 

5. Select those accounts the payment of which have not been made within 45 days of the supply of the goods.

6. See whether interest is being paid to them at more than 3 times of the bank rate or not. 

7. If not calculate the interest and difference of the interest and report it in your Audit.

Tutorial : The purpose of making such provisions in the statute is to protect the interest of the SMS industries otherwise they would not be in a positive to survive if the payment is withheld by their debtors.