Whether a private Company having paid-up share capital of rupees 45 lakhs and turnover of Rs. 20 crores as per last audited balance sheet will be treated as small company?
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Dear Friend,
as far as your query is concerned that Whether a private Company having paid-up share capital
of rupees 45 lakhs and turnover of Rs. 20 crores as per
last audited balance sheet will be treated as small
company?
Let me informed that It is not a small company. Section 2(85) defines a small company
as a company other than a public companyโ
(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 2 crore rupees or such higher amount as
may be prescribed which shall not be more than twenty
crore rupees:
Provided that nothing in this clause shall apply toโ
(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.
This means that a private company shall not be covered in the
definition of small company if either its paid up share capital
exceeds Rs. 50 lakhs or its turnover exceeds Rs. 2 crores.
Since the turnover of this company is more than Rs 2 crores i.e.
Rs. 20 Crores, it will not be a small company.
Hope answer was helpful to you
Regards,
Arjun Pratap Singh
anamika gorai commented
almost 4 years ago
In the definition of section 2(85) what the higher amount prescribed exactly means?