Module: General Practice
Q4: Scenario: "TechSol Pvt Ltd" was classified as a 'Micro' enterprise in 2024. In the financial year ending March 2025, its turnover increased to Rupees 8 crore, and its investment in equipment remained at Rupees 2 crore.
Question: Based on the revised 2025 classification criteria, what will be the classification of TechSol Pvt Ltd for the year 2026, and why?
✅ Correct Answer: B
Based on the revised classification limits applicable in 2025, a Micro Enterprise is defined as one with Investment up to Rupees 2.5 Crore and Turnover up to Rupees 10 Crore.
TechSol Pvt Ltd has an Investment of Rupees 2 Crore (which is within the Rupees 2.5 Crore limit) and a Turnover of Rupees 8 Crore (which is within the Rupees 10 Crore limit). Since both values are within the new Micro limits, the status remains Micro.
Under the older rules (where the turnover limit was Rupees 5 Crore), TechSol would have graduated to 'Small', but the 2025 revision allows it to retain 'Micro' benefits such as Priority Sector Lending status and lower interest rates.
TechSol Pvt Ltd has an Investment of Rupees 2 Crore (which is within the Rupees 2.5 Crore limit) and a Turnover of Rupees 8 Crore (which is within the Rupees 10 Crore limit). Since both values are within the new Micro limits, the status remains Micro.
Under the older rules (where the turnover limit was Rupees 5 Crore), TechSol would have graduated to 'Small', but the 2025 revision allows it to retain 'Micro' benefits such as Priority Sector Lending status and lower interest rates.