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Accounting Standards Rules Rule 5
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The Companies (Accounting Standards) Rules, 2021

Rule 5 Qualification for exemption or relaxation in respect of SMC

Chapter
I · Accounting Standards
Text as on
14 August 2026
5. Qualification for exemption or relaxation in respect of SMC:-
An existing company, which was previously not Small and Medium Sized Company (SMC) and subsequently becomes a SMC, shall not be qualified for exemption or relaxation in respect of Accounting Standards available to a SMC until the company remains a SMC for two consecutive accounting periods.