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
|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.