Question

ABC Ltd. Is a well known manufacture of sanitary fittings. Recently company was short of funds for meeting its day to-day expenses. So the company approached one of its suppliers to grant 60 days credit on purchase of raw material. On the basis of creditworthiness of ABC Ltd., the supplier granted the credit. Identify the source of finance highlighted in the given case. Also explain its features​

Answer 1

Answer:

Newgen food industries set up food and beverages processing plant in the rural area of Haryana and opted for labour intensive technique due to easy availability of the labour. The enterprise avail the services of the local people who belong to the weaker section of society. The board of director decided invest 50 lacs to acquire plant and machinery, rupees 1 crore to buy land, rupees 20 lakh to buy raw material and rupees 20 lacs to maintain day to day expenses. On the basis of given information about newgen food industries, answer the following questions:(A) Name the act of industries which is applicable to the above industry.(MSMED,Act2006)(B) Identify the category into which this industrial unit will be placed as per act identified in part (a.) (small manufacturing)(C) State the investment limit of the category into which this industrial unit will be placed.