Small company

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ARTHI (Querist)
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23 November 2015 Dear Friends / Experts,

Please guide me on the following, IF POSSIBLE:

Query

Section 2(85) (i) paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees; and

Section 2(85) (ii) turnover of which as per its last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than twenty crore rupees:

Should I go by the 'higher limit' i.e. 2nd criteria in the above sub-clauses (i) and (ii)? I request to clarify on the 'definition'.

Your reply, please..............

A Company having paid up capital of Rs.15 Crores and Turnover of Rs.4 Crores as on 31/03/15. Whether the said Company shall fall within the definition of Small Company.

Your reply, please..............

Thanks in advance for possible replies from all concerned.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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23 November 2015 No amount more than the minimum in the two limbs is prescribed, hence the minimum may be considered to check the applicability of 2(85).

The company in the cited example is not a small company.

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