caro [Resolved] | Corporate Law #500375

This query is : Resolved

arihant (Querist)

08 October 2010 whether Caro is applicable if share capital is 90,00,000/- and Dr. balance of Profit and loos account is 70,00,000/-,in case of PVT LTD Company

Ajay Mishra

Ajay Mishra (Expert)

08 October 2010 Hi

CARO, 2003 and CARO (Amendment), 2004 - A Comparative Analysis
[Submitted by Mr. V.M.V. Subba Rao, B.Com., F.C.A., D.I.S.A(ICA)]
Sl. No. Clause CARO, 2003 CARO (Amend), 2004 Amendments / Remarks
01 Clause (iv)(2) of Para 1 a private limited company with a paid up capital and reserves not more than fifty lakh rupees and has not accepted any public deposit and does not have loan outstanding ten lakh rupees or more from any bank or financial institution and does not have a turnover exceeding five crore rupees. 'a private limited company with a paid up capital and reserves not more than rupees fifty lakh and which does not have loan outstanding exceeding rupees twenty five lakh from any bank or financial institution and does not have a turnover exceeding rupees five crore at any point of time during the financial year. 1. The Pvt. Ltd. Companies cannot legally raise public deposits and hence the clause has been omitted.
2. The loan outstanding limit has been raised from Rs.10 lakhs to Rs. 25 lakhs above.
3. Now a private limited Company, in order to be exempt from the applicability of the Order, must satisfy all the conditions at any point of time during the financial year.