CARO APPLICABILTY

    Posted By : Divyansh Sachdeva / Published on : 11-Feb-2019 06:09 AM / View : 129 / Comment : 0
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    CARO Applicability

    Paid up Capital: 400000
    Reserve and surplus: 65, 00,000
    Total: 69, 00,000

    Turnover: 4, 00, 99,041.92
    Long term Liabilities: 48, 85,008.00

    “As per the Provision, I wish to clear my doubt as whether the Clause (e) or Clause (f) would be applicable on the respective company”

    (e) A small company under Section 2 (85) of the Companies Act, 2013.

    (1) As per sec 2(85) of Companies Act 2013 small company means a company, other than a public company:
    a) Paid up share capital of which does not exceed Rs. 50 lacs or such higher amount as may be prescribed which shall not be more than Rs. 5 crore, and
    b) Turnover of which as per its last profit and loss account does not exceed Rs. 2 crore or such higher amount as may be prescribed which shall not be more than Rs. 20 crore.
    (2) The following company shall not qualify as a small company:
    a) A holding company or a subsidiary company.
    b) A company registered under Section 8 of the Act.
    c) A company or body corporate governed by any special act

    (f) The auditor of following type of Private Companies are not required to comment on the matter prescribed under CARO 2016:

    (1) A private company which is not holding or subsidiary company of a public company, and
    (2) A private company having a paid up capital and reserve and surplus not more than Rs. 1 crore as on the balance sheet date, and
    (3) A private company which does not have total borrowing exceeding Rs. 1 crore from any bank and financial institution at any point of time during the financial year, and
    (4) A private company which does not have total revenue exceeding Rs. 10 crore during the financial year.
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