Whether Cash Flow Statement will be applicable to a Section 8 company or Section 25 Company for FY 14 - 15??
Cash flow statement
Deep Shroff (Chartered Accountants) (25 Points)
18 August 2015
Deep Shroff (Chartered Accountants) (25 Points)
18 August 2015Whether Cash Flow Statement will be applicable to a Section 8 company or Section 25 Company for FY 14 - 15??
Deepak Gupta
(CA Student)
(15922 Points)
Replied 18 August 2015
| 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.
Shruthi
(Article Assistent)
(336 Points)
Replied 19 August 2015
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
(C) a company or body corporate governed by any special Act;
ADARSH GUPTA
(ca final)
(24 Points)
Replied 19 August 2015
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