Existing Company which was previously not a Small and Medium Sized Company (SMC) and subsequently becomes a SMC, shall not be qualified for exemption
There is an important provision.
According to Rule 5 of Companies (Accounting Standards) Rules, 2021 "An existing company which was previously not a Small and Medium Sized Company (SMC) and subsequently becomes a SMC, shall not be qualified for exemption or relaxation in respect of Accounting Standards avaliable to a SMC until the company remains a SMC for two consecutive accounting periods."