Question

How would you differentiate between an ancillary unit and a tiny unit ?

Answer 1

An ancillary small industrial unit is the one who supplies not less than 50% of its production to another industry referred to as the parent unit and having the investment in plant/ machinery, which is not more than Rs 5 crore. On the other hand, a tiny industry is an industrial or business enterprise whose investment in fixed assets i.e., plant/machinery, that does not exceed Rs 25 lakh.