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Question -

How would you differentiate between an ancillary unit and a tiny unit?



Answer -

Basis of Comparison

Ancillary industrial units

Tiny units

Definition

Units supplying 50% of production to the parent industries are known as ancillary units.

Industries that invest less in their machinery till 25 lakh are known as tiny units.

Investment limit

Investment can go up to 1 crore

Investment can be till 25 lakh

Obligation

These units supply 50% of their production to the parent company.

There exists no such rules or obligations

Examples

Examples of such industries will be those involved in production of tools, machine spare parts, utilities for the primary industries.

Example of such units are shops selling stationery, photocopy centres.

 

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