CASH FLOW APPLICABILITY

Dear Sir, 

I have a query regarding applicability of CASH FLOW STATEMENT in case of Pvt. Ltd. Company and Proprietorship concern. 

What is threshhold limit ?

Query : Pvt. Ltd. Company having Paid Up Capital Rs. 10 Lac.

            And Turnover in FY 19-20 Rs. 17 CR.

Is Cash Flow Statement is mandatory to be prepared in this situation ?

Replies (4)
Quick Summary
This discussion clarifies the mandatory preparation of cash flow statements for Private Limited companies and proprietorships. It addresses the 'small company' definition and relevant thresholds, particularly noting changes effective from April 1st, 2021. The applicability depends on paid-up capital and turnover figures, with specific guidance provided for FY 20-21 and the current FY 21-22.

Private Company if Non Small need to prepare cash flow statement.

Prop no need to prepare cash flow statement.

Dear Sir whether my company (As per above stated figure) is covered under small company definition or not for FY 20-21 ?

W. E. F. 1/4/2021 the definition of small company has changed, since you are concerning for FY20-21 ,threshold of 50Lacs of paid up capital or turnover of 2 Crore( 17 Crore) is breached, by the way for this current FY 21-22 ,You have to check details as of 31/03/21 and not of 31/3/20...

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