03 July 2010
Please tell me urgently , whether clause (IV) (2) of para 1 of CARO , is applicable if Paid up capital & reserves in P.Y. are 35 Lacs. But Net profit in current year is 20 lacs. Total 55 Lacs. Hence please tell me net profit in current year which is transferable to reserve shall be considered to calculate 50 Lacs limit.
03 July 2010
Since the reserves exceed Rs. 50 lakhs CARO will be applicable. The limits are to be checked at any time during the previous year. Hence it is liable for CARO reporting.
CAclubindia
