Small Company V/s Section 139(2)

[Deepesh Nayak]

Good Evening to all...

Please reply ...

This is with reference to fill point no. 3 of form ADT 1.

A Private Limited Company has a paid up share capital of Rs. 24 Crores and Turnover is Nil as on 31.03.2014. As per definition of "Small Company" would it be considered as Small Company? as per my view yes it is small company.

If it will be small company then would it also be fallen under classes of Companies as prescribed under section 139(2). as per my view no, because Rule itself exempts OPC and small companies.

Thanking you,
CS Deepesh K Nayak

[CS Simranjeet Singh]

No, it won't be a small company. it is already clarified by ICSI also in its FAQ's.. you have to follow Section 139(1) in this case for appointment of Auditors.

 

 

Regards,

Simranjeet Singh

Associate Company Secretary

"To know, is to know that you know nothing. that is the meaning of true knowledge."

 

   

--
--
************************************************
Mail your comments, feedback and suggestions on CSMysore to Moderator: datta...@gmail.com and Manager: vivekhe...@gmail.com
---
You received this message because you are subscribed to the Google Groups "CSMysore" group.
To unsubscribe from this group and stop receiving emails from it, send an email to csmysore+u...@googlegroups.com.
For more options, visit https://groups.google.com/d/optout.

[Rajesh]

It is not a Small Company

On Mon, Nov 10, 2014 at 5:14 PM, Deepesh Nayak <csdeepe...@gmail.com> wrote:

[Urvish Desai]

Dear Mr. Deepak, 

In your case, the company will not be called as the small company, because the company's paid up share capital is more than the specified limit. 

In addition to that the compliance of the provision of Section 139 (2) read with Rule 5 of the chapter Companies (Audit and Auditors) Rules is required.

Other views are solicited.

 

URVISH DESAI

COMPANY SECRETARY

Mob: +91-8511016176

Mail: urvishde...@gmail.com

On Mon, Nov 10, 2014 at 5:14 PM, Deepesh Nayak <csdeepe...@gmail.com> wrote:

[Deepesh Nayak]

Thanks you ,

Sirs, ICSI in its earlier FAQ accepted the same views as of my but subsequently it changed without any clarification. However, the definition of Small Company remain same and the word used therein is "OR".

The language of definition is of permissive nature.

Thanking you,

Deepesh Kumar Nayak*
*Mob. 097134-80215*
*csdeepe...@gmail.com*

[CS Simranjeet Singh]

pls read as Section 139(2) in my previous mail.. i haven't seen figure of 24 crore.. but see language of def of small co is not clear.. but you to take it as big co and it can be evidenced from the fees charged while filing any eform with MCA.. you must be paying as per the fees applicable to a big co as against small co..so accordingly you need to comply 139(2)..

 

 

Regards,

Simranjeet Singh

Associate Company Secretary

"To know, is to know that you know nothing. that is the meaning of true knowledge."

 

   

[Deepesh Nayak]

Sir, logically your answer is right. on the basis of paid up capital the Company can be treated as big company but as per definition of small company, at least one condition should be complied for becoming a small company.

May be intention of law maker is otherwise but by the language of definition i came to this interpretation.

Thanking you,

Deepesh Kumar Nayak*
*Mob. 097134-80215*
*csdeepe...@gmail.com*

[CS Simranjeet Singh]

Sir you r right.. i was also of the same view earlier.. some provisions of CA, 2013 are drafted in a poor manner leading to confusions..

[Deepesh Nayak]

Yes sir, that i want to say. The question of worry is to confirm yes or no in point no 3 of ADT 1.

If i accept that the company fall under section 139(2) then it will be come under classes of companies and will have to comply provisions mentioned therein.

On the other side we will not bound for the same.

Thanking you,

Deepesh Kumar Nayak*
*Mob. 097134-80215*
*csdeepe...@gmail.com*

[CS Simranjeet Singh]

for now you have no other option than to Select Yes as rule 5 of auditor rules clearly mentions abt paid up cap above 10 crore leaving aside turnover criteria..

[Deepesh Nayak]

So much confusion sir.

Thanking you,

Deepesh Kumar Nayak*
*Mob. 097134-80215*
*csdeepe...@gmail.com*