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Monetory Limit in NSIC Registration

Tenders Diary Services Private Limied

A NSIC Registered Unit's "Monetary Limit" is the maximum amount of a single order it can place without making a security deposit. As a result, it is connected to order value, but it is fixed based on a unit's net sales turnover over the previous three years as shown in the audited balance sheets.

Example of a computation Total Sales - All Duties, Taxes, Returns, etc. = Net Sales Information about the company's net sales during the last three years: 2002–2003: Rs. 50 Lacs 2003–2004: 75 Lacs 80 Lacs in 2004-05 Monetary Limit is therefore equal to Rs. (50+75+80) / 3 * (50%) = Rs. 205 / (3*2) = Rs. 34.26 Lac. Say = Rs. 34 lac for a unit that is profitable over the course of three years. The Company's financial limit will be set at 40% of their average net sales turnover in the event that they have lost money for one of the previous three years.

 The financial restriction will also be set at 30% of the average net sales turnover over the previous three years if the SSI Unit has lost money for two out of the last three years. The unit's financial limit will be set at 20% of its average net sales turnover over the previous three years if the SSI unit has been losing money for the preceding three years. MTL is set at 50% of the average net sales value of the most recent year for which audited statements are available in cases of initial registration when the firm has been in operation for less than three years. Professionals in accounts and finance perform the Monitory Limit fixing at each NSIC office. Currently, branch office level money limits are set at up to 200 lacks, while regional office money limits are set at up to 500 lacks. If the Limit is greater than 500 Lacs, the same is set at the Head Office. However, the certificate is only granted at the branch office level following receipt of all required Competent Authority clearances. The supplier is not required to pay a security deposit if the order value is below the monthly limit.

GEM