Applicability of Cash Flow Statement

Applicability of Cash Flow Statement:-

According to Section 2(40) of Companies Act, 2013, The Financial statements of a company include Cash Flow Statement. Cash Flow Statement is governed by The Companies (Accounting Standards) Rules, 2006 (AS 3) and The Companies (Indian Accounting Standards) Rules, 2015 (Ind AS 7), as applicable.

The following companies have been given exemption from filing Cash Flow Statement:-

One Person Company
Dormant Company
Small Company
Start up company


Definition :-

1. One Person Company:-

As per section 2(62), One Person Company means a company which has only one person as a member.

2. Small Company:-

As per section 2(85), Small company means a company, other than public company whose

(i) Paid up share capital of which does not exceed fifty lakh rupees or such higher amount as may me prescribed which shall be not be more than ten crore rupees. &

(ii) Turnover of which as per profit and loss account for the immediately preceding financial year does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than one hundred crore rupees.

The following company shall not qualify as a small company –

[A] a holding or a subsidiary company

[B] a company registered under section 8

[C] a company or body corporate governed by any special Act.

3. Dormant Company:-

According to section 455(1) of Companies Act, 2013, Where a company is formed and registered under this Act for a future project or to hold an asset or intellectual property and has no significant accounting transaction, such a company or an inactive company may make an application to the Registrar in such manner as may be prescribed for obtaining the status of a dormant company.
This blog is authored by Company Secretary Ronak Gupta. He is author of many blogs and runs many websites and youtube channels. His work is dedicated to corporate laws, legal, secretarial, professional services and also in strategy formulations for corporates. Mail him at: csronakgupta23@gmail.com or call at :9910226715

Comments

  1. Michael HollieAugust 13, 2020 at 5:23 AM

    Thanks for a marvelous posting! I certainly enjoyed reading it, you are a great author.I will remember to bookmark your blog and may come back someday. I want to encourage one to continue your great job, have a nice holiday weekend!
    organisational development Perth

    ReplyDelete
  2. harishJuly 28, 2021 at 12:53 PM

    Informative Blog.

    section 8 company registration process

    ReplyDelete
  3. Business Compliance Services in IndiaFebruary 21, 2022 at 12:21 PM

    Thanks for sharing, This is really useful blog.
    If you required any info regarding TAX & Trademark registration please visit

    One Person Company registration online India
    limited liability partnership registration India
    Fast llp firm registration services online in India
    Private company registration process online in India
    Trademark registration in India - Complete guide

    ReplyDelete
  4. Especia associate llpApril 12, 2022 at 4:21 PM

    Thanks For sharing. Especia Associates is one of the leading Financial Advisor and Consultant In India. We provide CA Services, CFO Services, ESOP Services. ESOP For Private Company can be defined as a plan which is in benefits the employees as it encourages them of their own in the company. It is mostly provided by unlisted private companies or naïve start-up companies with limited finances. ESOP of a private company has instilled in the minds of employees that they have the part of ownership in the company and attract various workers during the growth of the company. if you need ESOP Services call 9310165114 or visit us ESOP For Private Companies

    ReplyDelete
  5. HisabkitabAugust 21, 2023 at 1:15 PM

    Our part-time accountant services in Surat offer the perfect blend of professionalism, expertise, and flexibility. Contact us today to discuss your business's accounting needs and embark on a journey towards financial success.

    ReplyDelete

Post a Comment

Popular posts from this blog

DIR 8 Intimation by Director

Image
FORM 'DIR-8' Intimation by Director  [Pursuant to Section 164(2) and rule 14(1) of Companies (Appointment and Qualification of Directors) Rules, 2014]   Registration No. of Company Nominal Capital           Rs.  Paid-up Capital Rs.  Name of Company Address of its Registered Office     To, The Board of Directors of XYZ Private Limited I, ________ son/daughter/wife of  __________  resident of  ________________ , Director/Managing Director/Manager in the company hereby give notice that I am/was a director in the following companies during the last three years:-   S.No Name of the Company Date of Appointment Date of Cessation 1   I further confirm that I have not incurre...
Read more

Security Clearance from MHA for foreign national of a country sharing land border with India

Overview  Latest regulations mandates security clearance from the Ministry of Home Affairs (MHA) for individuals from land-bordering countries, such as China, seeking directorships in Indian companies. This article unpacks the essential requirements, implications, and step-by-step application process at E-SAHAJ SEWA for this mandatory clearance, empowering businesses and aspiring directors to ensure smooth compliance and national security. Stay ahead of the curve and ensure success in India's dynamic business environment with this comprehensive guide. India’s corporate landscape is evolving, and so are its regulations. In June 2022, a significant amendment to the Companies (Appointment and Qualification of Directors) Rules [Notification] made security clearance from the Ministry of Home Affairs (MHA) mandatory for individuals from countries sharing land borders with India seeking directorships in Indian companies. While aiming to safeguard national security interests, this new req...
Read more

Valuation of Shares and other Securities under Companies Act, 2013

As per Companies Act, valuation may be required to be made in respect of any property, stocks, shares, debentures, securities or goodwill or any other assets (herein referred to as the assets) or net worth of a company or their liabilities.  Under this article, we will consider valuation aspects of shares and other securities under companies act 2013. Who can conduct valuation of shares? after 31st January, 2019 only a person registered as Registered Valuer as per Section 247 are eligible to do valuation of Securities. Except Registered valuer no other persons like (Merchant Banker or Chartered Accountant) can do the valuation of Securities.  What is the validity of a valuation report given under Sec 247 of the Companies Act? It is valid upto 6 months usually. However, it depends upon events for which you are considering the Valuation report. Is valuation report required for rights issue? Not mandatory in case of rights issue. If rights issue is at the premium, then? Still not...
Read more