1.
ABC Ltd. engaged in manufacturing business has investment of 23 lakhs in plant
and machinery and now it is planning to increase its investment by setting a new
machinery of 12 lakhs.
1
State the category into which this industrial unit will be placed as per Micro, Small
and Medium Enterprise Development Act, 2006 after the additional investment.
(a) Micro Enterprises
(b) Small Enterprises
(c) Medium Enterprises
(d) Large Enterprises
Answers
Answered by
1
Answer:
the answer is C medium enterprises
Answered by
1
The answer is (a) Micro Enterprises.
- Micro, Small and Medium Enterprises or MSME's is a concept introduced by the government of India in order to initiate the development and recognition of Small scale industries. The Micro, Small and Medium Enterprise Development Act, 2006 was passed by the government for this reason.
- The MSME's have been contributing to the Indian economy to a large extent. They are engaged in production, manufacturing and processing activities and 27% of the country's GDP is contributed by this sector.
- According to the MSME Act, 2006, Companies can be categorized as micro, small or medium based on their investment. If the investment is less than 1 crore, it will come under micro enterprises. If it is less than 10 crore, it will fall under small enterprises. If it is less than 50 crore, it will fall under medium enterprises.
- Thus, in the given question, ABC Ltd will be placed under Micro Enterprises as their investment is less than 1 crore.
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