Virat Traders, an unlisted partnership firm, had a turnover of 249.99 crore and borrowings of 25.01 crore during the financial year 2023-24. It is…

Company qualifies as an MSME if following conditions are satisfied: whose equity or debt securities are not listed or are not in the process of listing on any stock exchange, whether in India or outside India;which is not a bank, financial institution or an insurance company;whose turnover (excluding other income) does not exceed 250 crore rupees in the immediately preceding accounting year;which does not have borrowings in excess of 50 crore rupees at any time during the immediately preceding accounting year; andwhich is not a holding or subsidiary of an entity which is not a MSME entity. Yes, Virat Traders qualifies as an MSME since it meets all five criteria. Further, it has been assumed that Virat Traders is not newly qualifying as an MSME in FY 2024-25 because a non-company entity that newly qualifies as an MSME can avail exemptions only after it remains as MSME for two consecutive years. Until then, full AS compliance is required.