What is the criterion of turnover for a Small and Medium Company (SMC) under Companies Act?
ATurnover not exceeding ₹500 crores
BTurnover not exceeding ₹250 crores
CTurnover not exceeding ₹100 crores
DTurnover not exceeding ₹1,000 crores
Answer & Solution
Correct answer: B. Turnover not exceeding ₹250 crores
1. Step 1: SMC criteria under Companies (Accounting Standards) Rules 2021 include turnover ≤ ₹250 crores.
2. Step 2: Plus borrowings ≤ ₹50 crores, not listed, not a subsidiary of non-SMC.
3. Step 3: Hence (A).
_Source: ICAI BoS CA Inter Paper 1, Ch 3 "Applicability of Accounting Standards"_
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