Companies (Accounting Standards) Rules, 2021


The Ministry of Corporate Affairs through circular dated 23rd June, 2021 has issued the Companies (Accounting Standards) Rules, 2021. The amendment provides following revised criteria to qualify as “Small and Medium Sized Company” (SMC)-

A company –

  1. Whose equity or debt securities are not listed or are not in the process of listing on any stock exchange, whether in India or outside India;
  2. Which is not a bank, financial institution or an insurance company;
  3. Whose turnover (excluding other income) does not exceed two hundred and fifty crore rupees in the immediately preceding accounting year;
  4. Which does not have borrowings (including public deposits) in excess of fifty crore rupees at any time during the immediately preceding accounting year; and
  5. Which is not a holding or subsidiary company of a company which is not a small and medium-sized company.

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