29 June 2010
CARO is applicable to every company including a foreign company as defined in section 591 of the Act, except the following :-
1. a Banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
2. an insurance company as defined in clause (21) of section 2 of the Act;
3. a company licensed to operate under section 25 of the Act;and
4. a private limited company with a paid up capital and reserves not more than rupees fifty lakh and which does not have loan outstanding exceeding rupees twenty five lakh from any bank or financial institution and does not have a turnover exceeding rupees five crore at any point of time during the financial year
So it does not depend upon the type of company but on the scale of operations of the company.
CAclubindia
