MNP Private Ltd. is a company registered under the Companies Act, 2013 with Paid Up Share Capital of 5 crores and turnover of 35 crores. Explain the…

(a) Small Company: According to Section 2 (85) of the Companies Act, 2013, Small Company means a company, other than a public company, — (1) paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than four crore rupees; and (2) turnover of which as per its last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than forty crore rupees. Nothing in this clause shall 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. (i) In the present case, MNP Private Ltd., a company registered under the Companies Act, 2013 with a paid up share capital of 5crores and having turnover of 35crore. Since only one criteria of turnover of 35crores is met, but the paid up share capital exceeds 4crores and the provisions require both the criteria to be met in order to avail the status of a small company, MNP Ltd. cannot avail the status of small company. (ii) If the turnover of the company is 45crore, then both the criteria are not fulfilled and MNP Ltd. can not avail the status of small company in this case also.