Pvt. Co.-Under the Annual Return Format it contained a clause under (We Certify that...) a clause stating "The company did not have an average turnover of Rs. 10 crores or more during the relevant period" now my query here is should the company's average turnover must not be10crore or more for the companies filing such annual report pls explain me what is the implication of such clause because our company has far more than 10 crores.
Dear Mr. Ravi,
The explanation for the clause you enquired is found in Section 43A according to which if a Pvt Co has a turnover above Rs. 10 Crs it shall be termed as a Deemed Public Co i.e. the company automatically gets converted into a public co on crossing the turnover of Rs. 10 Crs.
But I am not sure whether this provision is still in force.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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