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small company case

03 April 2018

San industry Pvt LTD Company has it's paid up share capital of rupees 40 lakh and Turnover of rup 10 crore as per the last audited balance sheet. Examine the provision of company act 2013 decide wether the company will be treated as small company?
what would be ur answer in case the company is governed by any special act?

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4 Replies

aim patel (cs) (57 Points)
Replied 03 April 2018

In both of the above cases company will not be treated as Small company as it not covered under provision of small company due to excess turnover... and in second case the company governed by any Special Act cannot be classified as a small company.

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Ankita Gupta (83 Points)
Replied 04 April 2018

thanks

Rahul Prajapati (Student) (2282 Points)
Replied 04 April 2018

Ankita G,

˜Small Company in the Companies Act 2013. Under section 2 (85) of the Companies Act, 2013 a Small Company means a company other than a Public Company that satisfies either of the following conditions:

Paid-up share capital which does not exceed 50 lac rupees.
Or
Turnover of which as per its last profit and loss account does not exceed 2 crore rupees .

Provided that nothing in this clause shall apply to

(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.

YOUR COMPANY WILL NOT BE TREATED AS SMALL COMPANY.

Jatin Bajaj (CS) (2930 Points)
Replied 04 April 2018

As per the Companies Amendment Act 2017, small Company means the Company which has the paid up share capital of Rs. 50 lakhs and turnover of less than 2 crore as per the immediately preeceding financial year.

Provided that nothing in section 2(85) shall apply to the Company goverened by the special provisions of the act.