Preet Food Industries set up food and beverages processing plant in the rural area of Haryana and opted for labour intensive technique due to easy availability of labour and to provide employment to local people. Board of directors decided to invest 50 lakhs to acquire plant & machinery, Rs. 1 crore to buy land, Rs. 20 Lakhs to buy raw materials and Rs. 20 lakhs to maintain day to day expenses.
(a) Name the Act of Industries which is applicable to the above industry.
(b) Which category of part (a) will the above industry came?
(c) State the investment limit in this category.
(d) What value have been followed by the above company?
Preet Food Industries set up food and beverages processing plant in the rural area of Haryana and opted for labour intensive technique due to easy availability of labour and to provide employment to local people. Board of directors decided to invest 50 lakhs to acquire plant & machinery, Rs. 1 crore to buy land, Rs. 20 Lakhs to buy raw materials and Rs. 20 lakhs to maintain day to day expenses.
(a) Name the Act of Industries which is applicable to the above industry.
(b) Which category of part (a) will the above industry came?
(c) State the investment limit in this category.
(d) What value have been followed by the above company?
a) The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 addresses these issues relating to definition, credit, marketing and technology upgradation. Medium scale enterprises and service related enterprises also come under the purview of this Act. The MSMED Act, 2006 came into force w.e.f., October, 2006. Accordingly, enterprises are classified into two major categories viz., manufacturing and services.
b) It is a small scale industry.
c) 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 enterprise have a limit of investment in plant and machinery to be more than twenty-five lakh rupees but less than exceed five crore rupees.
d)Values followed by the company are as follows:
1. Employment generation: The company opted for labour intensive technique due to easy availability of labour and to provide employment to local people.
2. Balanced Regional Development: The company set up food and beverages processing plant in the rural area of Haryana thereby helping in balanced regional development.
3. Concern for society: The company opted for labour intensive technique thereby showing concern towards the society.
a) The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 addresses these issues relating to definition, credit, marketing and technology upgradation. Medium scale enterprises and service related enterprises also come under the purview of this Act. The MSMED Act, 2006 came into force w.e.f., October, 2006. Accordingly, enterprises are classified into two major categories viz., manufacturing and services.
b) It is a small scale industry.
c) 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 enterprise have a limit of investment in plant and machinery to be more than twenty-five lakh rupees but less than exceed five crore rupees.
d)Values followed by the company are as follows:
1. Employment generation: The company opted for labour intensive technique due to easy availability of labour and to provide employment to local people.
2. Balanced Regional Development: The company set up food and beverages processing plant in the rural area of Haryana thereby helping in balanced regional development.
3. Concern for society: The company opted for labour intensive technique thereby showing concern towards the society.
