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



Q.3:- How would you differentiate between an ancillary unit and a tiny unit?

 

Answer:-



S.N. Ancillary Unit Tiny Unit
(i) An ancillary unit is the unit which supplies not less than 50% of its production to the parent unit. A tiny unit is the business enterprise whose investment in plant and machinery is not more than Rs. 25 lakh.
(ii) Investment limit in such unit is one crore. Investment limit is Rs. 25 lakh in this type of unit.
(iii) Parent unit assists the ancillary unit by providing technical and financial help. No such assistance is there.