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Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2010 When Private Ltd Company is mandatorily required to make cash flow statament??

CA. VIKAS GUPTA

CA. VIKAS GUPTA (Expert)
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20 November 2010 Hi,
Accounting Stadard 3 regarding cash flow statements is applicable only in case of level 1 entities i.e.: -
1. company whose securities are listed or are in process of being listed,or
2. Insurance or banking companies including financial institutions, or
3. Any enterprise having turnover exceeding Rs.50 crores in preceeding f.y. as per audited balance sheet, or
4. Any enterprise having borrowings including public deposits exceeding Rs.10 crores at any time during the accounting period, or
5. subsidiary or holding of any of the above 4.

In your case, i think point no. 3 to 5 may cover any private limited co. subject to limits specified in these points.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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22 November 2010 AS3 WILL BE APPLICABLE FOR LEVEL 1 COMPANY.

LEVEL 1 COMPANY.

Enterprises which fall in any one or more of the following categories, at any time during the accounting period, are classified as Level I enterprises:

Enterprises whose equity or debt securities are listed whether in India or outside India.

Enterprises which are in the process of listing their equity or debt securities as evidenced by the board of directors' resolution in this regard.

Banks including co-operative banks.

Financial institutions.

Enterprises carrying on insurance business.

All commercial, industrial and business reporting enterprises, whose turnover for the immediately preceding accounting period on the basis of audited financial statements exceeds Rs. 50 crore. Turnover does not include 'other income'.

All commercial, industrial and business reporting enterprises having borrowings, including public deposits, in excess of Rs. 10 crore at any time during the accounting period.

Holding and subsidiary enterprises of any one of the above at any time during the accounting period.

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