Applibality of caro 2015

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Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2016 Please advise whether CARO 2015 is applicable to a Pvt. Ltd Co.with paid up capital of Rs.1 lac, reserve and surpus of Rs.55 Las and turnover of Rs.1.50 Crore.
I shall be thankful.

Jatin Bajaj

Jatin Bajaj (Expert)
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23 May 2016 Yes, CARO Act 2015 shall be applicable on such Private Company
CARO Act 2015 shall not be applicable to a Private Company having paid up share capital of 50 lakhs Rupees and Turnover exceeding 5 crores Rupees.
So in the above case, CARO Act will be applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2016 Sir, I have read in an Article that CAR 2015 is not appliable to small companies.
please clear my doubt. I shall be grateful. Thanks a lot.

Jatin Bajaj

Jatin Bajaj (Expert)
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23 May 2016 Yes, CARO 2015 shall not be applicable to small Company as defined under section 2(85) of Companies Act 2013

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2016 Sir, in my query , the company is also a small company, how it attracts CARO 2015.
Is the definition of small company includes reserve and surplus or only paid up capital.
My doubt is still there. Thanks.

Jatin Bajaj

Jatin Bajaj (Expert)
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23 May 2016 Very good question.
As per CARO 2015, CARO act shall not be applicable to Private Limited Company having paid up share capital and free reserves exceeding 50 Lakhs. so in your case also, Paid up share capital is 1lakh and Free Reserves are 55 Lakhs which is exceeding 50 lakhs. SO CARO 2015 will not be applicable on your Company.

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2016 Sir ji, CARO ia applicable if Share Capital plus Reserve exceeds Rs.50 lacs.
Please read your reply again. Thanks.

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