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CARO 2016 applicability

Priya jain (Article) (43 Points)

17 September 2016

One of my client Co. has Rs.1,52,00,000 as share capital and Rs.(65,00,000) as Reserve & surplus. Whether CARO-2016 applicable or not?

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14 Replies

CA Navin Jain (MANAGER (FINANCE & ACCOUNTS)) (11768 Points)
Replied 17 September 2016

Yes, CARO is applicable.

1 Like

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Dhiraj kumar (Employed) (427 Points)
Replied 17 September 2016

yes CARO 2016 ia applicable as its paid capital + reserves & surplus exceeded Rs. 1 Crore.

1 Like

Suresh Jain (Practice Training & Teaching) (1515 Points)
Replied 18 September 2016

Yes, CARO is applicable

August Gou Khongsai (driver) (22 Points)
Replied 18 September 2016

what is the fullform of CARO

Suresh Jain (Practice Training & Teaching) (1515 Points)
Replied 18 September 2016

companies auditors report order

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Suresh Jain (Practice Training & Teaching) (1515 Points)
Replied 18 September 2016

it is a reporting requirement by statutory auditors.

1 Like

August Gou Khongsai (driver) (22 Points)
Replied 18 September 2016

thanks bro jain

sagar singh (nothing) (36 Points)
Replied 18 September 2016

companies auditor's report order

Radha (student) (26 Points)
Replied 19 September 2016

CARO 2016 would not applicable if the following conditions satisfied by the pvt company:

1. Paid up capital + Reserve <= 1Cr and

2. Borrowing < 1Cr and

3.Turnover < 10Cr

In this case, caro not applicable.

palaknarang (CS) (21 Points)
Replied 19 September 2016

there is and instead of or @ radha.. so u have to fullfil all the three conditions then caro will applicable

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satyanarayana (Article Assistant) (25 Points)
Replied 19 September 2016

Caro applicable

SUHAS BASU (Senior chartered a9) (21 Points)
Replied 19 September 2016

Thanks for the information but would like to know the purpose and format of reporting

Suhas Basu

Membership No 052684

Gurmeet Singh (-) (25 Points)
Replied 19 September 2016

As per the provisions we have to see the aggregate balance of paid up capital and reserves as on balance date. Whether it is debit balance of reserves or credit balance.

So i will suggest that Caro 2016 is not applicable because on balance sheet date the aggregate balance of paid up capital and reserves are less than Rs. 1 crore.(I.e. Rs 0.87 crore).

I am assuming that company is fulfilling additional two conditions also, which are relevant for availing the exemption.

Priya jain (Article) (43 Points)
Replied 20 September 2016

Actually the Reserve & surplus balance is Dr. so want to ask whether consider the aggregate of paid up + Reserve & surplus which would be less than 1cr.?? now whether the CARO-16 Applicable???