Small Sized entity in Pakistan

Small Sized entity in Pakistan

There are two conditions for qualifying for small sized entity.

§    Paid up Capital & undistributed Reserves does not exceed 25 million Rupees. and

§    Revenue for the Year does not exceed 250 million per Year.

Small Sized Entity Example

Paid up Capital= 20

Revenue = 300 Million

Solution

This entity is not a small sized entity, because this company does not qualify the second condition of small sized entity i.e. (Revenue does not exceed 250 million.)

Small Sized Entity Example

Paid up Capital= 30 million

Revenue = 100 Million

Solution

The above company does not qualify the first condition of being small sized entity (i.e. capital + reserves should not exceed 30 million.

Small Sized Entity Practice Example

Paid up Capital= 15 million

Reserve undistributed = 26

Revenue = 130 Million