Define Small and Medium Companies. Describe applicability of Accounting Standards to Small and Medium Companies.

Answer 4A(i) Small and Medium Companies ("SMC") are companies that satisfy the following conditions: Equity and debt securities of the company are not listed or not in the process of listing on any stock exchange whether in India or outside India. Company is not a Bank or Financial Institution or Insurance Company. Company's turnover (excluding other income) does not exceed ₹ 250 crore in the immediately preceding accounting year. Company does not have borrowing (including public deposits) exceeding ₹ 50 crore at any time during immediately preceding accounting year. Company is not a holding company or subsidiary of a non-SMC. Applicability of Accounting Standards to SMC: Partial Exemption: Certain Relaxations are provided with respect to the following accounting standards: AS 17 Segment Reporting AS 15 Employee Benefits AS 19 Leases AS 20 Earnings Per Share AS 29 Provisions, Contingent Liabilities and Contingent Assets Full exemption: AS 3- Cash Flow statements shall not be applicable to SMCs if it is a One Person Company, dormant company and Small Company.