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New Definition of Small and medium companies
July 1 , 2021
1303 days
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- The Ministry of corporate affairs has expanded the definition of small and medium sized companies (SMCs).
- As per expanded definition, Small & Medium Companies is an unlisted company, a bank, an insurance or a financial institution with sales up to Rs 250 crore and borrowings up to Rs 50 crore.
- Earlier limit for sales was Rs 50 crore and for borrowings was Rs 10 crore.
- Now, SMCs are permitted to avail number of exemptions under Company (Accounting Standards) Rules 2021.
- It will reduce complexity of regulatory filings for smaller firms.
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