Small and Medium Sized Company criteria set accounting standard applicability with turnover and borrowing thresholds. Rule 2 defines terms for the Companies (Accounting Standards) Rules, 2021: Accounting Standards means standards specified in rule 3; 'Act' means the Companies Act, 2013; 'Annexure' is the Appendix containing the Accounting Standards; and 'Enterprise' means a company as per the Act. It sets objective criteria for a Small and Medium Sized Company: unlisted securities, not a bank/financial institution/insurer, turnover Rs. 250 crore in the preceding year, borrowings Rs. 50 crore at any time in the preceding year, and not a holding/subsidiary of a non-SMC; qualification is assessed at the end of the accounting period.