Which of the following is a Small and Medium Sized Company (SMC) as per the Companies (Accounting standards) Rules, 2006:

CS Executive · Corporate and Management Accounting · PYQS · December 2020
Which of the following is a Small and Medium Sized Company (SMC) as per the Companies (Accounting standards) Rules, 2006:
(A) X Ltd. has appointed Merchant bankers to prepare a Red-herring prospectus for the purpose of filing the same with SEBI
(B) Y Pvt. Ltd. engaged only in insurance broking business has a turnover of ₹55 crore (including other income of ₹5 crore), GST collected of ₹1 crore and shown as Unsecured Loan and Secured Loan from bank of ₹9 crore and public deposits of ₹1 crore.
(C) Z Pvt. Ltd., acquired 51% equity in a listed company. It has a turnover of ₹50 crore and borrowings of ₹10 crore.
(D) W Pvt. Ltd. has a turnover of ₹55 crore (including other income of ₹5 crore) and took Secured Loan from bank of ₹10 crore and public deposits of ₹1 crore which were fully paid before the end of the financial year.

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Accounting

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