APPLICATION OF CARO REPORT

Devendra (Chartered Accountant) (4775 Points)

23 October 2010

DOES THE CARO APPLY TO A PVT. LTD CO. EVEN IF IT SATISFIES ONLY 1 CONDITION IE. ANNUAL TURNOVER ABOVE RS. 5 CR.?

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6 Replies

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)
Replied 23 October 2010

Yes......

Exemption is granted only to the companies which satisfies all the 3 conditions

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Devendra (Chartered Accountant) (4775 Points)
Replied 24 October 2010

i didn't get your answer kalpesh...

kalpana (PCC) (162 Points)
Replied 24 October 2010

Only by satisfying all the three consitions, CARO will not apply to the privcate company.

If any of the conditions not satisfied then CARO will immediately apply to that particular private company.

savita madhavan (Article) (37 Points)
Replied 24 October 2010

yes, CARO will be applicable.

CARO is not be applicable to a private company if it fulfills all of the 3 conditions-

1) paid up capital and reserves are not more than 50 lakhs

2) does not have outstanding loan from bank or financial institution exceeding 25 lakhs

3)does not have turnover exceeding 5crores at any point of time during the financial year.

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)
Replied 24 October 2010

Originally posted by : savita madhavan
	yes, CARO will be applicable. CARO is not be applicable to a private company if it fulfills all of the 3 conditions- 1) paid up capital and reserves are not more than 50 lakhs 2) does not have outstanding loan from bank or financial institution exceeding 25 lakhs 3)does not have turnover exceeding 5crores at any point of time during the financial year.

Yes......CARO WILL BE APPLICABLE YF ANY OF THE ABOVE CONDITIONS ARE NOT SATIFIED

I.E Exemption is granted only to the companies which satisfies all the 3 conditions

(Guest)

FINANCIAL YEAR:2009-2010

APPLICABILITY OF CARO, 2003


	Conditions:			Yes/No
			Amt in Rs.

1	Whether private limited company		Yes	Yes

2	Paid-up capital and reserves do not exceed Rs. 50 lakh	Capital	1000000
	Paid-up capital and reserves do not exceed Rs. 50 lakh
		Reserves	601620.54
			1601620.54

		Net worth	1601621	Yes

3	which doesn’t have loan outstanding	Term Loan	1876180
	exceeding Rs.25 from any bank or Fin instn
			1876180	Yes

4	Turnover does not exceed Rs. 5 crores		44970627.81	Yes



	All the conditions are fulfilled. Hence, provisions of CARO, 2003 are not applicable.

	at any point of time during the financial year,

	all the conditions stated in the order must be satisfied simultaneously.


	Conditions to be checked each year.


	Regards