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Under section 2(85)(ii) of the Companies Act, 2013, what are the turnover amount stated in the Act and…

Section 2(85)(ii) states a turnover amount of ₹2 crore and permits a higher amount up to ₹100 crore, based on the immediately preceding financial year’s profit and loss…

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Under section 2(85)(ii) of the Companies Act, 2013, what are the turnover amount stated in the Act and the ceiling on a higher amount that the rules may prescribe?

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Answer and explanation

Correct answer D

Section 2(85)(ii) states a turnover amount of ₹2 crore and permits a higher amount up to ₹100 crore, based on the immediately preceding financial year’s profit and loss account. The rules in force from 1 December 2025 prescribe maximums of ₹10 crore paid-up capital and ₹100 crore turnover. Both applicable criteria must be met, subject to the exclusions in section 2(85).

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Option A

₹10 crore is the statutory ceiling for the paid-up share capital criterion under section 2(85)(i).

Option B

The current statutory ceiling for a prescribed turnover amount is ₹100 crore.

Option C

₹20 crore was the turnover ceiling before the Companies (Amendment) Act, 2017.

Option D

Section 2(85)(ii) states ₹2 crore and allows a higher prescribed amount up to ₹100 crore.

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