CARO 2015

CARO is applicable if Paidup Capital + Reserve exceeds Rs. 50 Lakh

Under section 2 (85) of the Companies Act, 2013 a Small Company means a company other than a Public Company that satisfies either of the following conditions: Paid-up share capital which does not exceed 50 lac rupees or such higher amount as may be prescribed which shall not be more than 5 crore rupees

So company is private company & paid up capital is less than 50 lakhs. Hence your company is small company.

Since your company is small company, CARO will be applicable only when your company outstanding loan crosses the stipulated limit of Rs 25 lakhs.

In calculation Reserve shall also be considered in the given case paidup capital + Reserve exceeded Rs. 50L, hence it should be applicable