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 company†™s auditor has to report on the matters specified in the Order.
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