Understanding the Concept:
\[
\text{Least count} = \frac{\text{pitch}}{\text{divisions}} = \frac{0.5}{50} = 0.01\,mm
\]
Step 1: Reading
From diagram:
Main scale = 1 mm
Circular scale $\approx$ 20 divisions
\[
\text{Total} = 1 + 20 \times 0.01 = 1.20\,mm
\]
Final Answer: \(1.20\,mm\)