12 September 2009
Yes, CARO 2003 is applicable to STPI if it is registered under the companies act, 1956 otherwise no...
However, CARO 2003 shall not be applicable to the following companies:
i) a banking company as defined in clause (c) of the section 5 of the Banking Regulation Act, 1949 (10 of 1949);
ii) an insurance company as defined in clause (21) of section 2 of the Companies Act, 1956;
iii) a company licensed to operate under section 25 of the Companies Act, 1956;
iv) a private company that satisfies all the following conditions:
a) its paid up capital and reserves is not more than Rs.50 lakhs, b) does not have loan outstanding exceeding Rs.25 lakhs from any bank or financial institution and c) does not have a turnover exceeding Rs.5 crores.
The Order would become applicable to a private limited company, if it does not satisfy any one of the above mentioned condition at any point of time, during the financial year covered by the audit report.
A private limited company, in order to be exempt from the applicability of the Order, must satisfy all the conditions mentioned above cumulatively. In other words, even if one of the conditions is not satisfied, a private limited company’s auditor has to report on the matters specified in the Order.
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