19 June 2009
As per the conditions of CARO,2003 for a private limited company: A private limited company with a paid up capital and reserves not more than fifty lakh rupees and has not accepted any public deposit and does not have loan outstanding ten lakh rupees or more from any bank or financial institution and does not have a turnover exceeding five crore rupees.
My question is if only one or two and not all the three conditions are voilated then would CARO be applicable to such a company..?
In my case only Condition no.2 is fullfilled so what would be my position in respect of CARO..?
19 June 2009
In order to claim exemption form applicability of CARO all the three condition of Paragraph 2 should be satisfies : (iv) a private limited company with a paid-up capital and reserves not more than rupees fifty lakh and which does not have outstanding loan exceeding rupees twenty five lakhs from any bank or financial institution and does not have a turnover exceeding rupees five crores at any point of time during the financial year.
see the use of word "AND", hence CARO shall be applicable to your company .
CAclubindia
