As per Companies (Auditor's Report) Order, 2003 (CARO). It applies to all Companies, including foreign companies defined u/s.591 of the Companies Act (Act). It is, however, provided that this order shall not apply to follow-ing companies :
(i) A banking company
(ii) An insurance company
(iii) A company registered
u/s.25 of the Act
(iv) A private limited company which satisfies the following conditions :
(a) Its paid up capital and reserves do not exceed Rs.50 lacs;
(b) Its turnover does not exceed Rs.5 crores; and
(c) Its outstanding loan from any bank or financial institution does not exceed Rs.25 lacs.
If any of the above conditions are not satisfied, the above order will apply to the private limited company.