Who decides whether an entity is an SMC?
ASEBI
BRBI
CThe company itself based on the prescribed criteria
DNFRA
Answer & Solution
Correct answer: C. The company itself based on the prescribed criteria
1. Step 1: Companies (AS) Rules require a company to self-classify as SMC based on prescribed criteria.
2. Step 2: It must continuously meet criteria — failure means losing SMC exemptions.
3. Step 3: Hence (C).
_Source: ICAI BoS CA Inter Paper 1, Ch 3 "Applicability of Accounting Standards"_