| Originally posted by : Ram Prakash Gautam | ||
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sir, plz give me knowledge about CARO ???? |
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I am providing u a summary..
CARO refers to companies auditors report order,2003.
IT CONTAINS A LIST OF OBSERVATIONS AND DISCLOSURES TO BE MADE IN AUDIT REPORT BY THE AUDITOR AFTER COMPLETION OF AUDIT. AUDITOR GIVES HIS OPINION BASED ON ABOVE OBSERVATIONS.
1. Applies to every company including a foriegn company u/s 591 of companies act.
2.Does not applies to a banking, insurance and company licensed to operate u/s 25
3. DOES NOT apply to a private limited company-
WHOSE PAID UP CAPITAL AND RESERVES DOES NOT EXCEED 50 LACS AND
WHICH DOES NOT HAVE ANY LOAN OUTSTANDING EXCEEDING RS 25 LACS FROM ANY BANK OR FINANCIAL INSTITUTION AND
WHICH DOES NOT HAVE A TURNOVER EXCEEDING RS 5 CRORES.
ALL THESE CONDITIONS IF EXIST TOGETHER THEN ONLY REPORTING REQUIREMENT NEED NOT BE COMPLIED..EVEN IF ANY ONE CONDITION IS NOT APPLIED THEN CARO WILL BE APPLICABLE TO THAT PRIVATE LIMITED COMPANY.
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