15 September 2011
Eg: A ltd was changed to Private Ltd company during Nov 2011. Whether the CARO is applicable to the company for the year 2011. Pvt. Ltd Comp has not satisfied the Cumulative conditions. 1. Paid up share capital does not exceed Rs. 50 Lakhs. 2. Company does not have loan outstanding from bank or any financial institutions exceeding Rs. 25 Lakhs. 3.COmpany does not have a turnover exceeding Rs. 5 Crore.
The CARO 2003 amendment 2004 will not attract for a private limited company, if the three criteria doesnot satisfy. if any one of the conditions satisfied, then it will be applicable.
for eg. if a private limited company having Rs.55 lacs share capital and doesnot have secured loans exceeding Rs25 lacs and doesn't have turnover exceeding Rs.5 crore. the CARO 2003 shall be applicable. If there is only one condition satisfied, then the CARO 2003 applicable for a Pvt Ltd co.
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