Applicability of caro on public co.

Save Share

This query is : Resolved

Sushant Mahajan (Querist)

02 October 2013 Will provisions of CARO apply on every non listed public co.

or

there are certain exceptions

or

there are certain specific conditions for its applicability?

Please reply.

Akriti Bhatia

Akriti Bhatia (Expert)

05 October 2013 As per Companies (Auditor's Report) Order, 2003 (CARO).
It applies to all Companies, including foreign companies defined u/s.591 of the Companies Act (Act). It is, however, provided that this order shall not apply to follow-ing companies :

(i) A banking company

(ii) An insurance company

(iii) A company registered

u/s.25 of the Act

(iv) A private limited company which satisfies the following conditions :

(a) Its paid up capital and reserves do not exceed Rs.50 lacs;

(b) Its turnover does not exceed Rs.5 crores; and

(c) Its outstanding loan from any bank or financial institution does not exceed Rs.25 lacs.

If any of the above conditions are not satisfied, the above order will apply to the private limited company.

Message likes : 1 times

Sushant Mahajan

Sushant Mahajan (Querist)

06 October 2013 Thank You so much.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now