Board of Directors of ‘’Bio Pure water Ltd.’’ decides to set up its first unit in the hilly area of Himachal Pradesh. Company requires Rs. 3 crores for set up and Rs. 50 Lakhs for working capital. The company has earned marked 15% of its profit for Educational and Health needs of its employees and their family members.
(a) The above company comes under which category as per MSMED Act 2006.
(b) Write any one commercial reason for setting up of unit in the hilly region.
(c) According to you, what are the options available to the company for meeting its long term and short term needs?
(d) What are the values promoted by the company?
Board of Directors of ‘’Bio Pure water Ltd.’’ decides to set up its first unit in the hilly area of Himachal Pradesh. Company requires Rs. 3 crores for set up and Rs. 50 Lakhs for working capital. The company has earned marked 15% of its profit for Educational and Health needs of its employees and their family members.
(a) The above company comes under which category as per MSMED Act 2006.
(b) Write any one commercial reason for setting up of unit in the hilly region.
(c) According to you, what are the options available to the company for meeting its long term and short term needs?
(d) What are the values promoted by the company?
a) It comes under small scale industry. In the case of enterprises engaged in the manufacture or production of goods pertaining to any industries specified in the first schedule to the Industries (Development and Regulation) Act, 1951, Small enterprises has investment in plant and machinery more than twenty-five lakh rupees but less than exceed five crore rupees.
b) The Board of Director decides to set up its first unit in hilly area of Himachal Pradesh because of cheap price of land and labour.
c) The company for meeting its long term and short term needs should opted for equity source of fund and by loans from bank.
d) Values promoted by the company are as follows:
1. Balance Regional Development: The company set up its first unit in hilly area of Himachal Pradesh, thereby helping development of the region.
2. Motivation to employees: The company by providing educational and health needs of its employees and their family members, motivates the employees.
3. Generation of employment: The company set up its first unit in hilly area of Himachal Pradesh because of cheap price of land and labour, thereby increasing the employment opportunity.
4. Upliftment of rural area: The company has earned marked 15% of its profit for Educational and Health needs of its employees and their family members of hilly region which in turn improves the standard of living and achieves upliftment of the rural area.
a) It comes under small scale industry. In the case of enterprises engaged in the manufacture or production of goods pertaining to any industries specified in the first schedule to the Industries (Development and Regulation) Act, 1951, Small enterprises has investment in plant and machinery more than twenty-five lakh rupees but less than exceed five crore rupees.
b) The Board of Director decides to set up its first unit in hilly area of Himachal Pradesh because of cheap price of land and labour.
c) The company for meeting its long term and short term needs should opted for equity source of fund and by loans from bank.
d) Values promoted by the company are as follows:
1. Balance Regional Development: The company set up its first unit in hilly area of Himachal Pradesh, thereby helping development of the region.
2. Motivation to employees: The company by providing educational and health needs of its employees and their family members, motivates the employees.
3. Generation of employment: The company set up its first unit in hilly area of Himachal Pradesh because of cheap price of land and labour, thereby increasing the employment opportunity.
4. Upliftment of rural area: The company has earned marked 15% of its profit for Educational and Health needs of its employees and their family members of hilly region which in turn improves the standard of living and achieves upliftment of the rural area.
