Vishakapatinam, Mar 12 (KNN) Creating awareness about the government schemes and benefits available for Micro, Small and Medium Enterprises (MSME) sector, Andhra Chamber of Commerce organized a workshop here.

Various government policies are still not being utilized by the micro, small and medium enterprises (MSME) due to lack of awareness.

Chennai-based Chartered Accountant Gopala Krishna Raju revealed that law is protecting the MSMEs from both sides. Under public procurement policy, the public sector units shall procure 25 per cent of the annual purchases from the MSMEs. Out of which, 3 per cent target is reserved for women entrepreneurs.

During the workshop, Cost and Management Accountant (CMA) professionals explained strategies for MSMEs to maximize profits by reducing the costs while improving the business and without compromising the quality of the product. They suggested applying various techniques of strategic cost management.

CMA P. Raju Iyer who is the chairman of Continuous Professional Development Committee and council member of Institute of Chartered Accountants of India (ICAI) said, “New approaches to strategic cost management have emerged such as target costing and kaizen costing that played a major role in the growth of many MSMEs. Cost management can be achieved through simple changes in the production planning like effective utilization of space and reducing wastage.”

Explaining some concepts of strategic cost management, he said that absence of focus on cost is one of key reasons for the exit of many MSMEs from the business within first four years. (KNN/JM)