15 March 2016
Exception of caro applies to some companies which includes pvt and small scale.
1. Exemption of pvt is applicable if
Capital below 50lac
Loans below 25 lac
Turnover below 5 crore
For small scale (other than public co.)
Cap 50lac
Turnover of last year below 2 cr
So a pvt co. Having capital 40l
Loans 30l
Turnover of last year 1 cr and current year 1.5 cr
My questions
1. Small scale are other than public. So it includes private co.?
2. In above example this pvt co. Doesnt fulfils first condition but fulfils second (small scale) so caro exempted or not?
1. Yes, After reading the definition of small company, it is inferred that Private company may or may not be a small company , however, small company will always be a private company.
2. After reading the content of non applicability of CARO, it won't applicable because it is specifically excluded.
CAclubindia
