MCA has notified the accounting standards for SMCs that revise the turnover and borrowing limits as well as help in making disclosure requirements less onerous.
Under the revised SMC definition, SMCs have been defined as unlisted companies and which are not banks, financial institutions or insurance companies with a turnover not exceeding Rs. 250 crore and with no borrowings in excess of Rs. 50 crore
The increased limits are aligned with the latest definition as per the ministry of MSMEs and increase in threshold done by ICAI for non-corporate entities.
“The revised criteria will help a number of companies and will promote ease of doing business”.
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