Caro 2003 - wrong answer in pcc nov. 11 rtp

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Nitesh Kumar Sharma (Querist)

08 November 2011 Dear all,
pls. check Q.NO.15(a)in PCC NOV.11 RTP.
Answer is CARO IS APPLICABLE.
But i think CARO IS NOT APPLICABLE.

as there are 3 points for pvt. co.:
1. paidup cap+Reserve - 50 Lakh
2. Borrowing - 25 Lakh
3. Turnover - 5 Crore

But RTP SAYS:
1. paidup cap+Reserve - 50 Lakh
2. Borrowing - 10 Lakh
3. NOT ACCEPTED PUBLIC DEPOSITS
4. Turnover - 5 Crore

PLS. COMMENT.
THANKS

CA RICHA BADALIA

CA RICHA BADALIA (Expert)

08 November 2011 25 lakhs is correct limit for borrowing.

CA Ghanshyam Joshi

CA Ghanshyam Joshi (Expert)

14 September 2012 The Order also exempts from its application a private limited company which fulfils all the following conditions:
(i) its paid-up capital and reserves are rupees fifty lakhs or less;
(ii) it has no outstanding loan exceeding rupees twenty five lakhs from any bank or financial institution; and
(iii) its turnover does not exceed rupees five crores at any point of time during the financial year.
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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