Caro 2015
This query is : Resolved
Ajit kumar
(Querist)
27 June 2015
Can pvt limited CARO 2015 applicable for following situation
1.) Share capital and reserve Rs. 2900000
and 2.) bank cc outstanding on 31-03-2015 is Rs. 24,92,000 and 3.) turn over is 2.5 crore. please suggest caro 2015 applicable for this PVT LTD.
Its CC limit is 40 lacs and during the year utilised CC is Rs. 35 lacs.
1.) Share capital and reserve Rs. 2900000
and 2.) bank cc outstanding on 31-03-2015 is Rs. 24,92,000 and 3.) turn over is 2.5 crore. please suggest caro 2015 applicable for this PVT LTD.
Its CC limit is 40 lacs and during the year utilised CC is Rs. 35 lacs.
Ajit kumar
(Querist)
07 July 2015
please reply
18 July 2024
As per the Companies (Auditor's Report) Order, 2015 (CARO 2015), it is applicable to private limited companies meeting certain thresholds. Based on the information provided:
1. **Share Capital and Reserves**: The share capital and reserves amount to Rs. 29,00,000.
2. **Bank CC Outstanding**: The outstanding balance on the bank's cash credit (CC) account as of 31st March 2015 is Rs. 24,92,000.
3. **Turnover**: The turnover for the financial year is Rs. 2.5 crore.
Regarding the utilization of the CC limit:
- The CC limit is Rs. 40,00,000.
- The utilized CC during the year is Rs. 35,00,000.
**Applicability of CARO 2015**:
- According to CARO 2015, it is applicable to private limited companies if they exceed any one of the following thresholds:
a. Paid-up capital and reserves exceeding Rs. 50 lakhs.
b. Turnover exceeding Rs. 2 crores.
c. Borrowings exceeding Rs. 1 crore.
Based on the details provided:
- Your company's share capital and reserves are Rs. 29,00,000, which is below the Rs. 50 lakhs threshold.
- Turnover is Rs. 2.5 crore, exceeding the Rs. 2 crore threshold.
- Borrowings (outstanding CC) are Rs. 24,92,000, which is below the Rs. 1 crore threshold.
Since your turnover exceeds Rs. 2 crores, CARO 2015 is applicable to your private limited company. Therefore, you should ensure that the auditor's report complies with the requirements laid out in CARO 2015, including reporting on matters specified in the Order. These include areas such as fixed assets, inventory, loans, investments, deposits, etc., as detailed in the Order.
Always consult with a qualified auditor or company secretary to ensure complete compliance with all relevant regulations and reporting requirements.
1. **Share Capital and Reserves**: The share capital and reserves amount to Rs. 29,00,000.
2. **Bank CC Outstanding**: The outstanding balance on the bank's cash credit (CC) account as of 31st March 2015 is Rs. 24,92,000.
3. **Turnover**: The turnover for the financial year is Rs. 2.5 crore.
Regarding the utilization of the CC limit:
- The CC limit is Rs. 40,00,000.
- The utilized CC during the year is Rs. 35,00,000.
**Applicability of CARO 2015**:
- According to CARO 2015, it is applicable to private limited companies if they exceed any one of the following thresholds:
a. Paid-up capital and reserves exceeding Rs. 50 lakhs.
b. Turnover exceeding Rs. 2 crores.
c. Borrowings exceeding Rs. 1 crore.
Based on the details provided:
- Your company's share capital and reserves are Rs. 29,00,000, which is below the Rs. 50 lakhs threshold.
- Turnover is Rs. 2.5 crore, exceeding the Rs. 2 crore threshold.
- Borrowings (outstanding CC) are Rs. 24,92,000, which is below the Rs. 1 crore threshold.
Since your turnover exceeds Rs. 2 crores, CARO 2015 is applicable to your private limited company. Therefore, you should ensure that the auditor's report complies with the requirements laid out in CARO 2015, including reporting on matters specified in the Order. These include areas such as fixed assets, inventory, loans, investments, deposits, etc., as detailed in the Order.
Always consult with a qualified auditor or company secretary to ensure complete compliance with all relevant regulations and reporting requirements.
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