Pvt Ltd Company - Conditions to be satisfied for claiming exemption from CARO. | ||||||||||
A private limited company must satisfy the following three conditions : | ||||||||||
Its paid up capital and reserves do not exceed Rs.50 Lakhs. | ||||||||||
it has no outstanding loan exceeding Rs.25 Lakhs from any bank or financial institution | ||||||||||
and | ||||||||||
its turnover does not exceed Rs.50 crores | ||||||||||
Stress : | ||||||||||
All the above conditions must be satisfied cumulatively at any point of time during | ||||||||||
the financial year. | ||||||||||
(i.e) Even if one of the conditions is not satisfied, a private limited company's auditor | ||||||||||
has to report on the matters specified in paragraphs 4 and 5 in the order. | ||||||||||
The compliance with conditions for exemption will have to be judged on a financial year to financial | ||||||||||
year basis. | ||||||||||
It is possible that those are fulfilled in one financial year and so the company is exempt from CARO | ||||||||||
but if they are not fulfilled in any other financial year, | ||||||||||
then exemption will not be available for that year. | ||||||||||
That is to say, | ||||||||||
the availability of exemption for private company will have to be considered afresh every year. | ||||||||||
Please refer attached excel sheet……… | ||||||||||
Regards | ||||||||||
K.Ilayaraja… | ||||||||||