MSME-Micro Small and Medium Enterprise New definition as on 01 July 2020 with easy to remember Ninja technique

MSME 

What is new definition in MSME?
What are the new changes in definition?
What are the new features add in new definition?
What new about Manufacturing and Service sector in this new Definition?
How to remember New Definition easily?
What are the Ninja techniques to remember new definition?

"MSME"-Micro Small and Medium Enterprise New definition as on 01 July 2020 with easy to remember Ninja technique.

Indian Government set new definition for MSME which came in effect from 01/07/2020.

As per new definition there is no Service or Manufacturing Sector separately for defining MSME. As per previous definition there were only investment in Plant and Machineries or Equipment was calculated for defining Micro Small and Medium Enterprise, but as per new definition another parameter added which is Turnover simply yearly Sales.

Now you have to remember two things to define MSME

1) Investment in Plant and Machineries or Equipment (Plant and Machineries for Manufacturing Enterprises and Equipment for Service Sector)
2) Yearly Turn over
Don’t worry it is now very easy to remember all definition.

First: Micro Enterprise-If investment in Plant and Machineries or Equipment up to 1 Cr and Turnover up to 5 Cr than it's called Micro Enterprise.

Second: Small Enterprise-If investment in Plant and Machineries or Equipment up to 10 Cr and Turnover up to 50 Cr than it’s called Micro Enterprise.

Third: Medium Enterprise-If investment in Plant and Machineries or Equipment up to 50 Cr and Turnover up to 250 Cr than it’s called Micro Enterprise.

One thing you should remember that in all the above definition Investment and Turnover connected with “AND”, that’s mean when both the condition satisfy then we can call them Micro or Small or Medium, if any the two condition not satisfy then Enterprise will be changed to next or below level.

You Can watch Video on this Topic by Clicking on the Link: "MSME"-Micro Small and Medium Enterprise New definition as on 01 July 2020 with easy to remember Ninja technique.

Condition 1– “A” is a company who invested in Plant and Machineries Rs. 90 Lakhs and Turnover for the last financial year was 4 Cr, so Company “A” belongs to MICRO ENTERPRISE. This year Company “A” invest another 20 Lakhs in Plant and Machineries but turnover achieves 5 Cr. Now tell me company “A” belongs to which Enterprise?
It’s belongs to SMALL ENTERPRISE, although “A” not crossed the Turnover Limit 5 Cr but “A” crossed the investment limit by investing 90+20=110 Lakhs or 1.1 Cr.

Condition 2: – “A” is a company who invested in Plant and Machineries Rs. 90 Lakhs and Turnover for the last financial year was 4 Cr, so Company “A” belongs to MICRO ENTERPRISE. This year Company “A” achieves 6 Cr turnover. Now tell me company “A” belongs to which Enterprise? It’s belongs to SMALL ENTERPRISE, although “A” not crossed the investment Limit 1 Cr but “A” crossed the turnover limit.

I hope you all understand the new concept. Now I will tell you how to remember the investment and Turnover- simply you have to remember only Investment then multiply it by 5 you will get turnover. It is so simply. What you think? Just remember 1, 10 and 50.

It’s my pleasure to share knowledge with you. If you like my post please follow my blog and my youtube Channel. Thank you very much.