Skip to content

CS Executive · Setting Up of Business, Industrial and Labour Laws · Micro, Small and Medium Enterprises

Sunrise Textiles, a manufacturing proprietorship in Surat, has investment in plant and machinery of Rs 4 crore. Under the classification in Section 7 of the MSMED Act, 2006 as given in the official text, how is it classified?

It is a small enterprise. For manufacturing enterprises, Section 7 treats investment in plant and machinery above Rs 25 lakh but up to Rs 5 crore as small, and Rs 4 crore lies within that range.

  1. AMicro enterprise
  2. BSmall enterpriseCorrect
  3. CMedium enterprise
  4. DNot an MSME

Explanation

For manufacturing, a small enterprise has investment in plant and machinery above Rs 25 lakh but not above Rs 5 crore. Rs 4 crore falls in this band. A micro enterprise would need investment of at most Rs 25 lakh, and a medium enterprise needs more than Rs 5 crore.

Did you get it right without looking?

One question tells you little. A timed set on Micro, Small and Medium Enterprises shows your real accuracy, how long you take and where you lose marks.

Practise Micro, Small and Medium EnterprisesFree diagnostic mock

More Micro, Small and Medium Enterprises questions