(i) The paid-up capital and turnover of Aaradhya Cosmetics Private Ltd. (ACPL) for FY 2024-25 is 4 crores and ₹45 crores respectively. Directors of…

Provisions of Law: (i) 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 exceed ten crores 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 exceed one hundred crores 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. Analysis: 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. Conclusion: Hence ACPL Cosmetics Private Ltd. cannot avail the status of a small company. Contention of directors of ACPL is incorrect. Provisions of Law: (ii) Government Company [Section 2(45)]: Government Company means any company in which not less than 51% of the paid-up share capital is held by- the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments. and the Section includes a Company which is a Subsidiary Company of such a Government Company. Analysis: In the instant case, Abhinav Natural Gases Ltd. (ANGL) cannot be tagged as a Government Company as the total holding of Central Government and State Government is ₹70.30 crores (₹ 40.10 crores + ₹30.20 crores) which is less than 51% of the paid-up share capital of ANGL i.e. ₹71.40 crores (51% of ₹ 140 crores). Conclusion: Hence ANGL shall not be tagged as Government company. Directors of ANGL cannot quote it as Government Company.