If director having a huge debit balance in their imprest account how we treat them at time of finalization of financial statements.
If It is loans and advances only, can attract section 185 & 186 of companies act as well as 2(22)(e) of the income tax act to the tune of accumulated reserves.
Disclosure required in CARO 2020 if applicable.
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Hi Everybody!
Whether the applicability of CARO in private companies is calculated on the basis of consolidated turnover or on the basis of standalone turnover?
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Please explain Borrowings includes Unsecured loan ?
As given "a private limited company, not being a subsidiary or holding company of a public company, having a paid up capital and reserves and surplus not more than one crore rupees as on the balance sheet date and which does not have total borrowings exceeding one crore rupees from any bank or financial institution at any point of time during the financial year and which does not have a total revenue as disclosed in Scheduled III to the Companies Act (including revenue from discontinuing operations) exceeding ten crore rupees during the financial year as per the financial statements."
It should not be include Right ?
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caro
Please confirm the effective date to identify the small company as CARO 2020 applicability totally depend upon the Definition of Small Company. CARO 2016 & 2020
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2020 CARO will be applicable on a very limited companies as provisions under 2020 got liberal. Please share the difference between these two if any one can share how to determine the CARO ?
Click here to view / answer Share it oncaro
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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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