Caro applies to all companies except 1.a banking company as defined in Banking Regulation Act,1949. 2. an insurance company as defined in the Companies act,1956. 3.a company licensed u/s 25 of the CompaniesAct,1956. 4.a private limited company with paid up capital and reserves not more than Rs.50 lakhs and does not have outstanding loan exceeding Rs.25 lakhs or more from any bank or financial institution and does not have a turnover exceeding Rs. 5 crores.