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    Question

    For an enterprise with investment in plant and machinery

    or equipment of Rs.9 crore and turnover of Rs.40 crore will be classified as _______ , as per MSME Act.  
    A Micro enterprise Correct Answer Incorrect Answer
    B Small Enterprise Correct Answer Incorrect Answer
    C Medium enterprise Correct Answer Incorrect Answer
    D Large enterprise Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The definition of micro, small and medium enterprises is as under as per MSMED Act 2006 (amendment 2020):  

    • A micro enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹1 crore and turnover does not exceed ₹5 crore;   
    • A small enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹10 crore and turnover does not exceed ₹50 crore ; and   
    • A medium enterprise is an enterprise where the investment in plant and machinery or equipment does not exceed ₹50 crore and turnover does not exceed ₹250 crore.  

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