Small and medium sized company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2012 I'm currently making a Balance sheet for a period of 18 Months i.e. from the date of its incorporation til 31st March, 2012. Will the normal checklist of SMC apply to check if the company is an SMC or not

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

04 December 2012 Small and Medium Sized Company” (SMC) means, a company—

whose equity or debt securities are not listed or are not in the process of listing on any stock exchange, whether in India or outside India;

which is not a bank, financial institution or an insurance company;

whose turnover (excluding other income) does not exceed rupees fifty crore in the immediately preceding accounting year;

which does not have borrowings (including public deposits) in excess of rupees ten crore at any time during the immediately preceding accounting year; and

which is not a holding or subsidiary company of a company which is not a small and medium-sized company.

Explanation : For the purposes of clause (f), a company shall qualify as a Small and Medium Sized Company, if the conditions mentioned therein are satisfied as at the end of the relevant accounting period.

So if it is not going for listing then u need to check its applicability in preceeding financial year which is not there. Hence not required. However for next year whole 18 months period would be financial year.

Message likes : 1 times