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CA Intermediate · Corporate and Other Laws

Small-company thresholds: check both limits and the exclusions.

Review the revised capital and turnover limits alongside the exclusions in section 2(85).

What changed

The prescribed limits moved from ₹4 crore paid-up capital and ₹40 crore turnover to ₹10 crore and ₹100 crore respectively, under G.S.R. 880(E), dated 1 December 2025. The amendment sheet retains the exclusions for holding/subsidiary companies, section 8 companies and entities governed by a special Act; the definition also excludes public companies.

How to revise it

  1. Write a two-column comparison of the former and revised prescribed limits.
  2. Test capital and turnover separately before reviewing the company's category.
  3. Keep the exclusions beside the numbers in your revision notes; a threshold-only answer can miss the issue.
  4. Before your attempt, reopen the official sheet rather than relying on a saved screenshot of this summary.

Avoid this shortcut

Do not treat the notification date, a book's print date and an exam's amendment cut-off as interchangeable. Use the attempt named by the institute, and read the full definition with the relevant rules.

Official sources and exact references

Third-party study materials remain on their publishers’ websites. CharterPrep links to the originals and does not re-host them.

  1. ICAI January 2027 Corporate and Other Laws amendmentsSource: ICAI · external original. PDF pages 1–2; Chapter 1; G.S.R. 880(E)
  2. ICAI Paper 2 official material and amendment listingSource: ICAI · external original. January 2027 amendment link

Verify subsequent corrections and the applicable edition with the institute. An official link supports the cited point; it does not mean the institute approves this summary.