S.R.O. 602(I)/2022 — Revised Turnover Thresholds for Company Size Classification
Legal basis
Third Schedule to the Companies Act, 2017 (Sections 224 and 225) — criteria for classification of companies
What it does
Raised the turnover thresholds used to classify a non-listed company's size under the Third Schedule (Sections 224/225), across all three tiers below Public Interest Company level:
- Large Sized Company (non-listed, clause (a)(ii)): the trigger changed from turnover of "Rs. 1 billion or more" to turnover "greater than Rs. 800 million".
- Medium Sized Company — non-listed public company (clause (a)(ii)): from "turnover less than Rs. 1 billion" to "turnover upto Rs. 800 million".
- Medium Sized Company — private company (clause (b)(ii)): from "turnover greater than Rs. 100 million but less than Rs. 1 billion" to "turnover greater than Rs. 150 million but not exceeding Rs. 800 million".
- Small Sized Company (clause (ii)): the ceiling moved from "turnover not exceeding Rs. 100 million" to "turnover not exceeding Rs. 150 million".
Net effect: more companies now qualify for a smaller-tier, lighter reporting framework than before this SRO, since the Rupee bar for moving up a tier was raised across the board.