Definition of small company as per companies act 2013

To be classified as a ‘small company’, a company now needs to fulfill both the conditions laid down in section 2(85) of the Companies Act, 2013.
.
- The Companies (Removal Of Difficulties) Order 2015, dated 13.02.2015
.
Conditions to be fulfilled:
.
Paid-up share capital should not exceed Rs. 50 lakh AND turnover (as per its last profit and loss account) should not exceed Rs. 2 crore. Earlier the requirement was to fulfill either one of the two conditions.
.
Definition not applicable to a holding/subsidiary/section 8/special act company.

Yes, Mr. Sreekanth, your observation is correct.
.
From FY 2014-15 onwards, cash flow statement is a compulsory part of the financial statement, except in the case of one person company, dormant company and small company [Sec. 2(40)].
.
Since the company is not fulfilling the turnover criteria in order to be classified as a small company, it shall prepare cash flow statement.