Rule 2: Definitions

(a)

“Accounting Standards” means the standards of accounting or any addendum thereto as specified in rule 3;

(b)

“Act” means the Companies Act, 2013 (18 of 2013);

(c)

“Annexure” in relation to these rules means the Annexure containing the Accounting Standards (AS) appended to these rules;

(d)

“Enterprise” means a ‘company’ as defined in clause(20) of section 2 of the Act;

(e)

“Small and Medium Sized Company” (SMC) means, a company-

(i)

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;

(ii)

which is not a bank, financial institution or an insurance company;

(iii)

whose turnover (excluding other income) does not exceed two hundred and fifty crore rupees in the immediately preceding accounting year;

(iv)

which does not have borrowings (including public deposits) in excess of fifty crore rupees at any time during the immediately preceding accounting year; and

(v)

which is not a holding or subsidiary company of a company which is not a small and medium-sized company.

Explanation

For the purposes of this clause, a company shall qualify as a Small and Medium Sized Company, if the conditions mentioned therein are satisfied as at the end of the relevant accounting period.