Various types of audit are as unders

• Statutory Audit
• Tax Audit
• Management / Operational / Internal / System Audit

Turnover limits for various categories for tax audit under income tax act are as unders

• Rs. 40 lacs for Business (Rs. 60 lacs from A.Y.2011-12)
• Rs. 10 lacs for Profession (Rs. 15 lacs from A.Y.2011-12)

Applicability of Accounting standards to various entities are as unders

a. For Corporate entities –

i.	Standard issued by National Advisory Committee on Accounting Standards (NACAS) and
ii.	Standard issued by The Institute of Chartered Accountants of India (ICAI)

b. For Non-Corporate entities – Standard issued by The Institute of Chartered Accountants of India (ICAI)

Classification of Corporate entities under Standard issued by NACAS are as unders

a. SMC (Small and Medium sized company)
b. Non SMC (other than Small and Medium sized company)

Definition of SMC under NACAS is given as unders

1. whose equity or debt securities are not listed or are not in the process of listing on any stock exchange, whether in India or outside India;
2. which is not a bank, financial institution or an insurance company;
3. whose turnover (excluding other income) does not exceed rupees fifty crore in the immediately preceding accounting year;
4. which does not have borrowings (including public deposits) in excess of rupees ten crore at any time during the immediately preceding accounting year; and
5. which is not a holding or subsidiary company of a company which is not a small and medium-sized company

A company shall qualify as a Small and Medium Sized Company, if the conditions mentioned therein are satisfied as at the end of the relevant accounting period.

Classification of Non-Corporate entities under Standard issued by The Institute of Chartered Accountants of India (ICAI) for the purpose of SME are as under

a. Level I Enterprises
b. Level II Enterprises
c. Level III Enterprises

Definition of Level I Enterprises is as under

Enterprises which fall in any one or more of the following categories, at any time during the accounting period:

i.	Whose equity or debt securities are listed, whether in India or outside India.
ii.	Which are in the process of listing their equity or debt securities as evidenced by the board of directors’ resolution.
iii.	Banks including co-operative banks.
iv.	Financial Institutions.
v.	Carrying on insurance business.
vi.	All commercial, industrial and business reporting enterprises, whose turnover for the immediately preceding accounting period on the basis of audited financial statements exceeds Rs. 50 crores. Turnover does not include 'other income'.
vii.	All commercial, industrial and business reporting enterprises having borrowings, including public deposits, in excess of Rs. 10 crore at any time during the accounting period.
viii.	Holding and subsidiary enterprises of any one of the above at any time during the accounting period.

Definition of Level II Enterprises is as under

Enterprises which are not Level I but fall in one or more of the following categories:

i.	All commercial, industrial and business reporting enterprises, whose turnover for the immediately preceding accounting period on the basis of audited financial statements exceeds Rs. 40 lakhs but does not exceed Rs. 50 crores. Turnover does not include 'other income'.
ii.	All commercial, industrial and business reporting enterprises having borrowings, including public deposits, in excess of Rs. 1 crore but not in excess of Rs. 10 crores at any time during the accounting period.
iii.	Holding and subsidiary enterprises of any one of the above at any time during the accounting period.

Definition of Level III Enterprises is as under:

Enterprises which are not covered under Level I and Level II.

Date wise applicability of Accounting Standard issued by The Institute of Chartered Accountants of India (ICAI) to the Non-Corporate Assessee is as under

Accounting Standard	Date of Applicability	Level I	Level II	Level III
AS 1	1-4-1991 for companies / 1-4-1993 for others	Applicable	Applicable	Applicable
AS 2	1-Apr-99	Applicable	Applicable	Applicable
AS 3	1-Apr-01	Not  Applicable	Not   Applicable	Applicable
AS 4	1-Apr-95	Applicable	Applicable	Applicable
AS 5	1-Apr-96	Applicable	Applicable	Applicable
AS 6	1-Apr-95	Applicable	Applicable	Applicable
AS 7	For all contracts entered into during accounting periods on or after 1-4-2003	Applicable	Applicable	Applicable
AS 8	1-4-1991 for companies / 1-4-1993 for others	Applicable	Applicable	Applicable
AS 9	1-4-1991 for companies / 1-4-1993 for others	Applicable	Applicable	Applicable
AS 10	1-4-1991 for companies / 1-4-1993 for others	Applicable	Applicable	Applicable
AS 11	1-Apr-04	Applicable	Applicable	Applicable
AS 12	1-Apr-94	Applicable	Applicable	Applicable
AS 13	1-Apr-95	Applicable	Applicable	Applicable
AS 14	1-Apr-95	Applicable	Applicable	Applicable
AS 15	1-Apr-06	Applicable	Applicable	Applicable
AS 16	1-Apr-00	Applicable	Applicable	Applicable
AS 17	1-Apr-01	Applicable	Not   Applicable	Not   Applicable
AS 18	1-Apr-01	Applicable	Not   Applicable	Not   Applicable
AS 19	For all assets leased for accounting periods commencing on or after 1-4-2001	Applicable	Partly Applicable	Partly Applicable
AS 20	1-Apr-01	Applicable	Partly Applicable	Partly Applicable
AS 21	1-Apr-01	Applicable	Not   Applicable	Not   Applicable
AS 22	1-Apr-01	Applicable	Applicable
AS 23	1-Apr-02	Applicable	Not   Applicable	Not   Applicable
AS 24	1-Apr-04 1-Apr-05	Applicable	Not   Applicable	Not   Applicable
AS 25	1-Apr-02	Applicable	Not   Applicable	Not   Applicable
AS 26	1-Apr-03	Applicable	Applicable	Applicable
AS 27	1-Apr-02	Applicable	Not   Applicable	Not   Applicable
AS 28	1-Apr-04 1-Apr-06 1-Apr-08	Applicable	Applicable	Applicable
AS 29	1-Apr-04	Applicable	Partly Applicable	Partly Applicable
AS 30	1-Apr-11	Applicable
AS 31	1-Apr-11	Applicable
AS 32	1-Apr-11	Applicable

Date wise applicability of Accounting Standard issued by National Advisory Committee on Accounting Standards (NACAS) to the Corporate Assessee is as under

Accounting Standard	Exemption for SMC
AS 1	None
AS 2	None
AS 3	Optional
AS 4	None
AS 5	None
AS 6	None
AS 7	None
AS 8	None
AS 9	None
AS 10	None
AS 11	None
AS 12	None
AS 13	None
AS 14	None
AS 15	Partially applicable
AS 16	None
AS 17	Optional
AS 18	None
AS 19	Partially applicable
AS 20	Partially applicable
AS 21	None
AS 22	None
AS 23	None
AS 24	None
AS 25	None
AS 26	None
AS 27	None
AS 28	Partially applicable
AS 29	Partially applicable

IFRS would be applicable in three phase, which are as under


Companies which fall in the following categories will not be required to follow the notified accounting standards which are converged with the IFRS (though they may voluntarily opt to do so) but need to follow only the notified accounting standards which are not converged with the IFRS. These companies are: -

Definition of Networth for the purpose of IFRS is as unders

For the purpose of calculation of qualifying net worth of companies, the following rules will apply:

a. The net worth will be calculated as per the audited balance sheet of the company as at 31st March 2009 or the first balance sheet for accounting periods which end after that date.
b. The net worth will be calculated as the Share Capital plus Reserves less Revaluation Reserve, Miscellaneous Expenditure and Debit Balance of the Profit and Loss Account.
c. For companies which are not in existence on 31st March 2009, the net worth will be calculated on the basis of the first balance sheet ending after that date.

The calculation of net worth is for the purpose of the criteria only since "net worth" is a part of the criteria.