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A Ltd has entered into a contract with B Ltd by which the former will reserve 25% of their output to be sold to B. Ltd. or to a buyer at the direction of B Ltd. Can B Ltd. be called an associate company of A Ltd. ? Also determine, if S Private Ltd, with a paid-up share capital of 45 lakh and annual turnover of 175 lakh is a wholly owned subsidiary of H Ltd., a listed company. Can S Ltd. be called a small company ? (4 marks)?
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A Ltd has entered into a contract with B Ltd by which the former will ...
Can B Ltd. be called an associate company of A Ltd.?
Yes, B Ltd. can be called an associate company of A Ltd. According to the Companies Act, 2013, an associate company is defined as a company in which another company has significant influence but not control. In this case, A Ltd. has entered into a contract with B Ltd. to reserve 25% of their output for sale to B Ltd. or at the direction of B Ltd. This indicates that A Ltd. has significant influence over B Ltd.'s operations and decisions.

Can S Ltd. be called a small company?
To determine whether S Ltd. can be called a small company, we need to consider the criteria set forth by the Companies Act, 2013. According to the Act, a company is considered a small company if it meets the following conditions:
1. Its paid-up share capital does not exceed 50 lakh.
2. Its turnover does not exceed 2 crore.

In this case, S Ltd. has a paid-up share capital of 45 lakh, which satisfies the first condition of being a small company. However, its annual turnover is 175 lakh, which exceeds the second condition of not exceeding 2 crore. Therefore, based on the turnover criteria, S Ltd. cannot be called a small company.

Summary:
- B Ltd. can be called an associate company of A Ltd. as A Ltd. has significant influence over B Ltd.'s operations and decisions.
- S Ltd. cannot be called a small company as its turnover exceeds the limit set by the Companies Act, 2013.
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A Ltd has entered into a contract with B Ltd by which the former will reserve 25% of their output to be sold to B. Ltd. or to a buyer at the direction of B Ltd. Can B Ltd. be called an associate company of A Ltd. ? Also determine, if S Private Ltd, with a paid-up share capital of 45 lakh and annual turnover of 175 lakh is a wholly owned subsidiary of H Ltd., a listed company. Can S Ltd. be called a small company ? (4 marks)?
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A Ltd has entered into a contract with B Ltd by which the former will reserve 25% of their output to be sold to B. Ltd. or to a buyer at the direction of B Ltd. Can B Ltd. be called an associate company of A Ltd. ? Also determine, if S Private Ltd, with a paid-up share capital of 45 lakh and annual turnover of 175 lakh is a wholly owned subsidiary of H Ltd., a listed company. Can S Ltd. be called a small company ? (4 marks)? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A Ltd has entered into a contract with B Ltd by which the former will reserve 25% of their output to be sold to B. Ltd. or to a buyer at the direction of B Ltd. Can B Ltd. be called an associate company of A Ltd. ? Also determine, if S Private Ltd, with a paid-up share capital of 45 lakh and annual turnover of 175 lakh is a wholly owned subsidiary of H Ltd., a listed company. Can S Ltd. be called a small company ? (4 marks)? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Ltd has entered into a contract with B Ltd by which the former will reserve 25% of their output to be sold to B. Ltd. or to a buyer at the direction of B Ltd. Can B Ltd. be called an associate company of A Ltd. ? Also determine, if S Private Ltd, with a paid-up share capital of 45 lakh and annual turnover of 175 lakh is a wholly owned subsidiary of H Ltd., a listed company. Can S Ltd. be called a small company ? (4 marks)?.
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