Cash flow statement

Co Act 2013 813 views 4 replies

Deep Shroff

Chartered Accountants

25 Points Joined February 2009

Whether Cash Flow Statement will be applicable to a Section 8 company or Section 25 Company for FY 14 - 15??

Replies (4)

Deepak Gupta

CA Student

15927 Points Joined May 2011

Originally posted by : Deep Shroff
	Whether Cash Flow Statement will be applicable to a Section 8 company or Section 25 Company for FY 14 - 15?? YES

1. From FY 2014-15 onwards, cash flow statement is a compulsory part of the financial statement except in the case of one person co., dormant co. and small co. [sec. 2(40)].
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2. Further, as per sec. 2(85), sec. 8 co. cannot be considered as a small co.
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3. Hence, financial statements of sec. 8 co. should include cash flow statement.

Nitin Gupta

CA Final Student

66 Points Joined July 2012

What small company means?

Shruthi

Article Assistent

336 Points Joined April 2012

Section 2(85) defines a Small Company as

‘‘small company’’ means a company, other than a public company,—

(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; or

(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:

Provided that nothing in this Section shall apply to—

(A) a holding company or a subsidiary company;

(B) a company registered under Section 8; or

ADARSH GUPTA

ca final

24 Points Joined August 2015

Cash flow is required for ascerting the financil position of business. It is prepared on monthly basis.so every co. Is required to prepare its cash flow statement whether it is fall in section 8 ;sec 25 or not