Important threshold Limits under Companies Act 201
| Terms | Section | Applicability /non-applicability threshold limit |
| SMALL COMPANY | 2(85) | Paid up capital – not exceeding Rs. 2 cr and
Turnover not exceeding rs. 20 crore |
| Caro applicability | Applicable to all companies including a foreign company except:
● Banking company ● Insurance company ● section 8 company ● OPC company ● small company ● certain Pvt companies not crossing the following threshold limit and not being a subsidiary or holding of a public company. | |
Pvt company on which CARO is applicable:
● Paid capital and reserve & surplus more than Rs 1 crore; or ● Total borrowings from any bank or FI at any time during FY exceed Rs. 1 crore; or ● Total revenue as per schedule -III (including revenue from discontinuing operation) exceeds Rs.10 crore. | ||
| Adequacy and operating effectiveness of Internal financial control(IFC) reporting | 143(3)(i) | Not applicable/exemption: Small company /OPC
Applicable to Private Company if:- 1. turnover Rs. 50 Crores or more as per the latest audited financial statements; or 2. aggregate borrowings from banks, Financial institutions, and body corporate at any point in time during the financial year is Rs. 25 crores or more. |
| Mandatory Internal audit | Rule13 companies accounts rule 2014 | Applicability :
All Listed company Unlisted public company if any of the following conditions are satisfied::
Private company if any of the following conditions are satisfied::
|
| Cash flow statement | 2(40) | Exemption from cash flow statement to
OPC, small company, dormant company |
| SMC small and medium-sized companies claiming exemption from certain provisions of MCA notified AS | 2(e) of the Companies (accounting standards) rules | Meaning of SMC:
➢ Whose equity or securities are neither listed nor in the process of listing in any stock exchange ➢ Not being a bank/insurance co/FI ➢ Turnover less than rs 250 crore in immediately preceding accounting year ➢ Borrowings including public deposits less than Rs 50 crore at any time during the immediately preceding accounting year ➢ Not a holding or subsidiary of a NON-SMC |
| CSR | 135 | Every company
|
| Cost audit | 148 + rule 4 | For regulated sector: Overall annual turnover in preceding FY Rs. 50crore or more and aggregate turnover of individual products or services for which cost record required under rule 3 rs 25 crore or more.
For non-regulated sector: Overall annual turnover in preceding FY Rs. 100crore or more and aggregate turnover of individual products or services for which cost record required under rule 3 rs 35 crore or more. |
