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Question
How would you differentiate between an ancillary unit and a tiny unit?
Distinguish Between
Solution
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Basis of difference
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Ancillary industrial units
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Tiny units
|
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Definition
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Industrial units that have to supply a minimum of 50% of their production to their parent industries are termed ancillary industrial units. | Industries that have a maximum investment of Rs. 25 lakh in their plant and machinery are regarded as tiny industrial units. |
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Investment limit
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The maximum level of investment is Rs. 1 crore. | The maximum level of investment is Rs. 25 lakh. |
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Obligation
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Such units have to supply at least 50% of their production to their parent industries. | No such obligations. |
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Examples
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Industries engaged in the production of machine parts, tools, and other intermediate products. | Business units such as small shops, boutiques, STD (subscriber trunk dialling) booths, and photocopy centres. |
shaalaa.com
Small Scale Enterprise as Defined by MSMED Act 2006
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