Page 19 - IMDR MSME BOOK 2021

Managing Finance in Micro, Small & Medium Enterprises
Manufacturing Enterprises
The enterprises engaged in the manufacture or produc-
tion of goods pertaining to any industry are specied in
the rst schedule of the Industries Development and
Regulation Act, 1951.The manufacturing Enterprise is
dened in terms of investment in plant and machinery.
Ÿ A micro enterprise, where the investment in plant and
machinery does not exceed twenty-ve lakh rupees.

Ÿ A small enterprise, where the investment in plant and
machinery is more than twenty-ve lakh rupees but
does not exceed ve core rupees: or
Ÿ A medium enterprise, where the investment in plant
and machinery is more than ve crore rupees but does
not exceed ten crore rupees.
Services Enterprises:

The enterprises engaged in providing or rendering
services are dened in terms of investment in equipment.
Ÿ A micro enterprise, where the investment in
equipment does not exceed ten lakh rupees.
Ÿ A small enterprise, where he investment in equipment
is more than ten lakh rupees but does not exceed two
crore rupees: or
Ÿ A medium enterprise, where the investment in
equipment is more than two crore rupees but does not
exceed ve crore rupees.
According to the new notication dated June 01, 2020
Government of India introduced the following criteria for
classication of

Micro, Small and Medium Enterprises, namely:
Ÿ A Micro Enterprise, where the investment in Plant and
Machinery or Equipment does not exceed one crore
rupees and turnover does not exceed ve crore rupees.