09 October 2015
As per the new co. act 13, small companies are not required to make cash flow statement,
The definition of small co. Is :
1. Not having a paid up SC of more than 50lacs or such higher amount as may be prescribed which shall not be more than 5 crore
2. Not having turnover of more than 2 crore or such higher amount as may be prescribed which shall not be more than 20 crore
Can anybody give me the interpretation of the line with the word 'presribed' please ?
Limits are 50L/2C or 5C/20C ????
09 October 2015
The present limit to be a small company is paid up capital should not be more than 50 lakhs AND turnover should not be more than two crores.
Ref:- section 2(85) as amended by order dated 13-02-2015.
'Prescribed' should be understood as government has liberty to increase the above said minimum limit, from time to time ,but with in the cap of 5 crores and 20 crores.
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