Caro

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yesha

yesha (Querist)
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17 December 2013 if pvt company who is subsidiary of a public company ,caro is applicable?

Sanket

Sanket (Expert)
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17 December 2013 CARO 2003 shall not
be applicable to the following companies: i ) a
banking company as defined in clause ( c ) of
the section 5 of the Banking Regulation Act,
1949 ( 10 of 1949); ii ) an insurance company
as defined in clause ( 21 ) of section 2 of the
Companies Act , 1956 ; iii ) a company licensed
to operate under section 25 of the Companies
Act, 1956 ; iv ) a private company that satisfies
all the following conditions : a) its paid up
capital and reserves is not more than Rs .50
lakhs , b) does not have loan outstanding
exceeding Rs .25 lakhs from any bank or
financial institution and c ) does not have a
turnover exceeding Rs .5 crores . The Order
would become applicable to a private limited
company, if it does not satisfy any one of the
above mentioned condition at any point of
time , during the financial year covered by the
audit report . 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 companyâ€ ™s auditor has
to report on the matters specified in the Order.

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