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Small Company

A small company is defined as a non-public company with paid-up share capital not exceeding ₹4 crore and turnover not exceeding ₹40 crore. Certain companies, such as holding or subsidiary companies and those governed by special acts, are not considered small companies. The document also includes a short quiz with examples of companies and their financials to determine CARO applicability.

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Vishal Agarwal
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28 views1 page

Small Company

A small company is defined as a non-public company with paid-up share capital not exceeding ₹4 crore and turnover not exceeding ₹40 crore. Certain companies, such as holding or subsidiary companies and those governed by special acts, are not considered small companies. The document also includes a short quiz with examples of companies and their financials to determine CARO applicability.

Uploaded by

Vishal Agarwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Small Company

A company that is not a public company and has:


Ø Paid-up share capital <= ₹4 crore &
Ø Turnover as per preceding F.Y <= ₹40 crore

Not treated as small company:


Ø Holding or a subsidiary company.
Ø Sec-8 Co.
Ø Body corporate or company governed by any special act.

Impact on Topics:
Ø CARO 2020 N.A.

Note: In case a company is covered under definiNon of small company, it will remain exempted from applicability of
Order even if it falls under any of criteria specified for private company.

Short Quiz:
Hera Pheri Pvt Ltd Bhagam Bhaag Pvt Ltd De Dana Dan Pvt Ltd
31.3.23 31.3.23 PUSC = 3.5 Cr 31.3.23
PUSC = 2.5 Cr T/o = 42 Cr PUSC = 4.5 Cr
T/o = 35 Cr T/o = 55 Cr
31.3.24
31.3.24 PUSC including R&S = 90 Lakhs 31.3.24
PUSC including R&S = 4 Cr T/o = 9 Cr PUSC including R&S = 80 L
T/o = 32 Cr Borrowings = 55 Lakhs T/o = 8 Cr
Borrowings = 40 Lakhs Borrowings = 65 Lakhs [During the
year 1.5 Cr was borrowed and
repayed]
CARO Applicable = No (Small Company) Yes, borrowings exceed 1 Cr Yes, borrowings exceed 1 Cr during
the year

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