Dear All,
Can anyone plzz clarify the below highlighted point as one of my Clients paid up share capital exceeds 50 lakhs so i want to know CFS applicability for them
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;
The Central Government has not yet prescribed the higher threshold so Cash Flow is applicable in your case since paid up exceeds Rs.50 Lakhs. Even if paid up does not exceed Rs.50 Lakhs but Turnover exceeds Rs. 2 Crores Cash Flow is still applicable.. The Company has to satisfy the twin conditions for it to qualify as a small company and also to exempt itself from preparation of CFS.
CAclubindia
