Caro, 2003

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This query is : Resolved

Sagar Kulkarni (Querist)

06 July 2012 Balance Sheet of a private company which is a subsidiary of a Public Limited Co. reports as follows :
1. Share Capital- Rs. 25 Lacs
2. Reserves- Rs. 20 Lacs
3. Loans- Rs. 20 Lacs
4. Turnover- Rs. 4.50 Crores

Whether CARO is applicable

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)

06 July 2012 Dear Friend, for applicability of CARO following conditions are applicable;

1. Paid Up Share Capital and reserves should be more than Rs. 50.00 Lacs.
2. Borrowings from banks are more than 25.00 Lacs.
3. Turnover should be more than 5.00 Crore

Thus CARo is not applicable to your company. Thanks

Sagar Kulkarni

Sagar Kulkarni (Querist)

06 July 2012 Does this mean the fact that company is a subsidiary of public company does not have any impact on CARO applicability?

Thanks in advance..

CA Hardik Bunha

CA Hardik Bunha (Expert)

06 July 2012 This limits only applicable for private ltd co.

caro is not applicable to banking and insurance co. too.

caro is mandatory for public co.

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