In the context of expansion of the turnover and borrowing thresholds for Small and Medium sized Companies (SMC) by the Corporate Affairs Ministry, consider the following statements

1. The Corporate Affairs Ministry has increased the turnover threshold for SMCs to Rs 50 crore from Rs 10 crore.
2. SMCs are permitted to avail a number of exemptions under the Company (Accounting Standards) Rules 2021 to reduce the complexity of regulatory filings for smaller firms.

Select the correct statement.

The Corporate Affairs Ministry has expanded the turnover and borrowing thresholds for Small and Medium sized Companies (SMC).

What is the change?

• The Corporate Affairs Ministry has increased the turnover threshold for SMCs to Rs 250 crore from Rs 50 crore, and the borrowing threshold to Rs 50 crore from Rs 10 crore.
• SMCs are permitted to avail a number of exemptions under the Company (Accounting Standards) Rules 2021 to reduce the complexity of regulatory filings for smaller firms.

Hence only statement 2nd is correct.

By: Shubham Tiwari