Question

The Government of India has defined micro, small and medium enterprises. Which of the following is correctly matched for an enterprise engaged in the manufacture or processing of goods as per the definition ?
(A) Micro enterprise: Investment in plant in plant and machinery does not exceed 25 lakhs.
(B) Small enterprise: Investment in plant and machinery is more than 25 lakhs but does not exceed 5 cr.
(C) Medium enterprise: Investment in plant and machinery is more than 5 cr but does not exceed 20 cr.

• A. All the above
• B. Only (A) and (B)
• C. Only (A) and (C)
• D. Only (B) and (C)
• E. None of the above

Answer 1

The correct option is B Only (A) and (B)

Nature of activity of the Enterprise	Investment in plant and machinery excluding land and building for enterprises engaged in manufacturing or production, processing or preservation of goods	Investment in equipment excluding land and building for enterprises engaged in providing or rendering of services (loans up to Rs 1 crore)
Micro	Not exceeding Rs.25.00 Lakhs	Not exceeding Rs.10.00 Lakhs
Small	More than Rs.25.00 lakhs but does not exceed Rs.500.00 lakhs	More than Rs.10.00 lakhs but does not exceed Rs.200.00 lakhs
Medium	More than Rs.500.00 lakhs but does not exceed Rs.1000.00 lakhs	More than Rs.200.00 lakhs but does not exceed Rs.500.00 lakhs