A private ltd company having share capital of rs.55 lakhs

To be classified as a ‘small company’, the company needs to fulfill both the conditions laid down in section 2(85) of the Companies Act, 2013.

i.e. paid-up share capital should not exceed Rs. 50 lakh AND turnover (as per its last P&L account) should not exceed Rs. 2 crore.

The said definition has been amended vide The Companies (Removal Of Difficulties) Order 2015, dated 13.02.2015.

Before the amendment, the requirement was to fulfill either one of the two conditions.

In the given instance, the company is fulfilling only the turnover condition.

Hence, it cannot be classified as a ‘small company’.

hi guys. please read the MCA order 

According to clause (85) of section 2, a company may be treated as a ‘small company’ if it meets either of the conditions provided therein thereby making the second limit unrestricted or inconsequential. Difficulties have arisen in this regard as companies which, though, meet one of the criteria but exceed the monetary limit in respect of second criteria excessively are also getting classified as ‘small companies’;

P.S even if ur company only fulfills one condtion , its still a small company as the other condition is "inconsequential"

Originally posted by : Ubaid
	hi guys. please read the MCA order  According to clause (85) of section 2, a company may be treated as a ‘small company’ if it meets either of the conditions provided therein thereby making the second limit unrestricted or inconsequential. Difficulties have arisen in this regard as companies which, though, meet one of the criteria but exceed the monetary limit in respect of second criteria excessively are also getting classified as ‘small companies’; P.S even if ur company only fulfills one condtion , its still a small company as the other condition is "inconsequential"

The aforesaid is only the issue.

The relevant amendment in given in para 2(a) of the said order.

"in section 2, in clause (85), in sub-clause (i), for the word “or” occurring at the end, the word “and” shall be substituted."

https://www.mca.gov.in/Ministry/pdf/ROD_1st_2015.pdf

I agree with CA.Deepak Gupta.