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Discussion > Students >

Applicability of CARO 2004 for Private limited Cos

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[ Scorecard : 89]
Posted On 28 May 2008 at 16:55 Report Abuse

Hi All:

I have a clarification, with reference to applicability of CARO 2004 for Private Limited companies, conditions  for non-applicability:

1.     paid up capital and reserves not more than Rs.50 Lacs and

2.     which doesn’t have loan outstanding exceeding Rs.25 from any bank or Fin instn and

3.     doesn’t have turnover of turnover of Rs.5 crores

at any point of time during the financial year,

Also I understand that in order to be exempted from applicability of the Order, all the conditions stated in the order must be satisfied simultaneously.

Now my question, how should I interpret the words "satisfied simultaneously",

for example, if a company satisfies paid up capital condition and satisfies turnover condition and DOESNT HAVE ANY LOANS from any banks or FI’s as on ANY DAY OF FINANCIAL YEAR, does this mean CARO 2004 is not applicable?

Please help me to understand.

thanks in advance for your help.

Regards

Srinivas

 



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Shekar
CA & LCS


[ Scorecard : 1089]
Posted On 28 May 2008 at 17:02

Hi...

The company has to satisfy all 3 conditions mentioned by u to make CARO non-applicable...if any of  the one conditions is not satisfied and CARO is applicable....



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Srinikot


[ Scorecard : 89]
Posted On 28 May 2008 at 17:24

Hi shekar:

Thanks for your reply, let me be clear, if company has

- paidup capital - Rs.50 lacs

- turnover - Rs.25 crores

- loans from bankers - NIL

is CARO applicable for this private limited company?




Srinivas
accountant


[ Scorecard : 174]
Posted On 28 May 2008 at 17:33

Hi shekar:

Thanks for your reply, let me be clear, if company has

- paidup capital - Rs.50 lacs

- turnover - Rs.25 crores

- loans from bankers - NIL

is CARO applicable for this private limited company?




Sunil Nayak
Chartered Accountants


[ Scorecard : 96]
Posted On 28 May 2008 at 19:36

Based on the example given,  the CARO is not applicable.

For applicability the Pvt. Co need to comply with all the 3 conditions laid down. If any one condition is not complied then CARO is applicable.

If there is no loan taken by the company , then the question of complying with the second condition about the o/s liability does not arise.

Regards

Sunil Nayak.

 



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Vinay Sharma
CA


[ Scorecard : 30]
Posted On 01 June 2008 at 22:18

Hi

If any of the above conditions are not satisfied the CARO will be applicable




(Guest)
Posted On 13 August 2008 at 20:46

Whether CARO report id applicable to Private Company which is Subsidiary of Public Limited Company




CA H M JOHARI
CHARTERED ACCOUNTANT


[ Scorecard : 182]
Posted On 29 August 2008 at 18:13

If a Pvt. Ltd. company Taken a unsecured loan from Directors/Share holders less than Rs. 25 Lacs. Is CARO Applicable




Amit
Trainee


[ Scorecard : 20]
Posted On 01 September 2008 at 15:32

Suppose a company incorporate on 25th march received RS 60 lakhs as share application money whether CARO will be applicable for it or not




MAYUR
CA


[ Scorecard : 20]
Posted On 11 September 2008 at 19:12

Friends,

Please refer the Statement on the Companies (Auditor's Report) Order, 2003 issued by ICAI.  It states that share application money received should not be considered as part of paid-up capital.

Even, the loans from bank / FI are covered (irrespective of nature whether secured or unsecured)

 

 



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