Hi,
Small and Medium Sized Companies are exempted from complying with certain Accounting standards as per Companies (accounting standards)rules,2006
SMC criteria is
a.(i) whose equity or debt securities are not listed or
(ii) which is not a bank, financial institution or an insurance company;
(iii) whose turnover (excluding other income) does not exceex 50 crore
rupees in the immediately preceding accounting year;
(iv) which does not have borrowings (including public deposits) in excess of 10 crore
rupees at any time during the immediately preceding accounting year;
But as per section 2(40) of the companies act,2013
ALL companies must include Cash Flow statement except
-OPC
- Dormant Company
-Small Company (whose turnover less than 2 crore and paid up capital less than 50 lakhs)
my query is
(a)where a company does not falls within the definition of small company but it satisfies the criteria of SMC company.
whether this company must include cash flows statement in its financial statements on the basis of sec.2(40)
OR
it need not include on the basis of companies(AS) Rules, 2006
(b) where contradiction arises between provision of the act and rules of that act, as in the above situation, which one will override the other ( Rules of the act override the provision or Provision will override the act)?
kindly clarify my two queries
thanks.
CAclubindia
