The paid-up capital and turnover of Aaradhya Cosmetics Private Ltd. (ACPL) for FY2024-25 is 4 crores and 45 crores respectively. Directors of ACPL…

(a) Small Company: Small company given under the Section 2 (85) of the Companies Act,2013 which means a company, other than a public company: (i) paid-up share capital of which does not exceed4crores rupees or such higher amount as may be prescribed which shall not be more than ten crore rupees; and (ii) turnover of which as per profit and loss account for the immediately preceding financial year does not exceed40crores rupees or such higher amount as may be prescribed which shall not be more than one hundred crore rupees: Exceptions: This clause shall not apply to: (A) a holding company or a subsidiary company; (B) a company registered under section 8; or (C) a company or body corporate governed by any special Act. In the given case, although the paid-up capital and turnover of Aaradhya Cosmetics Private Ltd. is within the terms of Small Company but, Aaradhya Cosmetics Private Limited (ACPL) is the holding company of Pooja Fashions Private Limited (PFPL) and as per the proviso (A) to Section 2 (85) , holding company shall not be treated a Small Company. Hence ACPL Cosmetics Private Ltd. cannot avail the status of a Small Company. Contention of directors of ACPL is incorrect.