14 September 2012
The Order also exempts from its application a private limited company which fulfils all the following conditions: (i) its paid-up capital and reserves are rupees fifty lakhs or less; (ii) it has no outstanding loan exceeding rupees twenty five lakhs from any bank or financial institution; and (iii) its turnover does not exceed rupees five crores at any point of time during the financial year. 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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