Practice Test

Which of the following conditions are required to be fulfilled by private company in order to treat it as Small Company under section 2(85) of the Companies Act, 2013 ?
(I) Paid up share capital does not exceed Rs 50 lakhs or such higher amount as may be prescribed which shall not be more than Rs 5 Crores.
(II) Its borrowing as per latest audited balance sheet does not exceed Rs 20 Crores or such higher amount as may be prescribed which shall not be more than Rs 50 Crores.
(III) Turnover as per its last profit & loss account does not exceed Rs 2 Crores or such higher amount as may be prescribed which shall not be more than Rs 20 Crores.
(IV) Paid up share does not exceed Rs 25 lakhs or such higher amount as may be prescribed which shall not be more than Rs 2.5 Crores.

Where a fraudulent and dishonest use is made of the legal entity, the Court will break through the corporate shall and apply the principal of what is known as_______

Minimum paid-up capital for a private company is_____