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Discussion > Audit >

CARO Applicability?

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employed

[ Scorecard : 2351]
Posted On 28 May 2010 at 17:34 Report Abuse

Hi

 

 

Is CARO applicable to

a) A private company which is a subsidiary of a public company

b) A public company which has converted itself into a private company before the end of the FY

 

 

Please give your answer assuming that the company is within the CARO prescribed threshold limits

of capital, borrowings and turnover, and has not accepted deposits from the public

 

 

 

Regards


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Kalpesh Chauhan,
Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)

[ Scorecard : 8160]
Posted On 28 May 2010 at 20:38

CARO Is applicable to a) A private company which is a subsidiary of a public company





Kumar
Article

[ Scorecard : 907]
Posted On 29 May 2010 at 04:10

Caro is applicable to;

A private co which is a subsidiary of public co 

a public co which has converted it self to pvt co provided the pvt co has capital & reserves of more than Rs 50 lakhs and / or has a turnover exceedind 5 cr and / or loan of more than Rs 25 thousand  from bank or FI.




Aditya Maheshwari
CA in Practice

[ Scorecard : 34833]
Posted On 29 May 2010 at 13:48

Where in CARO it is written that it is applicable to a private company which is a subsidiary of a public company? it just says it is not applicable to a private limited company with a paid up capital and reserves not more than rupees fifty lakh and which does not have loan outstanding exceeding rupees twenty five lakh from any bank or financial institution and does not have a turnover exceeding rupees five crore at any point of time during the financial year.

A private limited company, in order to be exempt from the applicability of the Order, must satisfy all the conditions mentioned above cumulatively. In other words, even if one of the conditions is not satisfied, a private limited company’s auditor has to report on the matters specified in the Order. There is no condition that if it is a subsidiary of a public limited company then CARO is applicable.

And for the second question i think it should be applicable as the limits are to checked at any time during the year and hence the order will be applicable.




Dheeraj
Learner

[ Scorecard : 1075]
Posted On 29 May 2010 at 15:45

CARO is applicable in 1st case i.e (a)




Aditya Maheshwari
CA in Practice

[ Scorecard : 34833]
Posted On 29 May 2010 at 16:06

yes CARO applicable in first case as i forgot the defination of public company which includes a private company which is a subsidiary of a company which is not a private company




CA PuRvI M!$rA
-

[ Scorecard : 2131]
Posted On 29 May 2010 at 18:01

CARO is aplicble in 1st case only...




.g.k.
employed

[ Scorecard : 2351]
Posted On 01 June 2010 at 19:34

hmm... friends, still divided opinion on case 2?




CA Mukul Mittal
CA in practice

[ Scorecard : 384]
Posted On 03 June 2010 at 08:07

agreed with kumar




Nikhil Bansal
Senior Auditor

[ Scorecard : 221]
Posted On 11 April 2012 at 15:52

 

CARO is applicable on all companies who are accepts public deposits. and CARO shall be apply on private companies which fulfills all following condintions.....

1. Having paid up share capital >= 50 lacs

2. Turnover more than 5 crore in any year

3. Taken Loan >= 25 lacs at any time during the year

 

 

 

 

 



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