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Under Section 2(85) of the Companies Act, 2013 read with Rule 2(1)(t) of the Companies (Specification of Definitions Details) Rules, 2014, with effect from 1 April 2021, a "small company" must satisfy:
Answer & Solution
Correct answer: C.
1. The Lesson 1 paragraph on Small Company quotes the 1-April-2021 amendment.
2. Both limbs apply cumulatively: paid-up capital ≤ Rs. 2 crore AND turnover ≤ Rs. 20 crore in the immediately preceding financial year.
3. The definition expressly excludes a holding company, a subsidiary, a Section 8 company, and a company governed by any special Act (proviso clauses (a)/(b)/(c)).
4. The outer statutory ceilings under Section 2(85) are Rs. 10 crore (paid-up) and Rs. 100 crore (turnover); the rule fixed the operational threshold lower.
_Source: ICSI CS Executive Paper 2 (Company Law) — Lesson 1: Introduction to Company Law, pp. 2-35._
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