Module: General Practice
Q6: Scenario: TechSol Private Limited has an Investment in Plant and Machinery of 18 Crore rupees and an Annual Turnover of 80 Crore rupees. Based on the revised MSME classification criteria effective April 1, 2025, how will this company be classified?
✅ Correct Answer: B
The company is classified as a Small Enterprise.
To be classified in a category, an enterprise must meet both the Investment and Turnover criteria for that category without exceeding the ceiling.
The limits for a Small Enterprise are Investment up to 25 Crore rupees and Turnover up to 100 Crore rupees.
TechSol's Investment of 18 Crore rupees is greater than the Micro limit of 2.5 Crore but less than the Small limit.
Its Turnover of 80 Crore rupees is greater than the Micro limit of 10 Crore but less than the Small limit.
Since both values fall within the Small band, the classification is Small Enterprise.
To be classified in a category, an enterprise must meet both the Investment and Turnover criteria for that category without exceeding the ceiling.
The limits for a Small Enterprise are Investment up to 25 Crore rupees and Turnover up to 100 Crore rupees.
TechSol's Investment of 18 Crore rupees is greater than the Micro limit of 2.5 Crore but less than the Small limit.
Its Turnover of 80 Crore rupees is greater than the Micro limit of 10 Crore but less than the Small limit.
Since both values fall within the Small band, the classification is Small Enterprise.