CARO Applicability-to Pvt.Ltd.Co.

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This discussion clarifies the applicability of CARO (Companies Auditor's Report Order) provisions to a private limited company. The company has a turnover of Rs. 9 Crores and share capital of Rs. 1.20 Crores, with no loans. While the turnover is below the Rs. 10 Crore threshold for exemption, the share capital exceeds Rs. 1 Crore. This means CARO, 2016 is applicable as at least one of the exemption conditions is not met.

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(Querist)
31 January 2022 Hi All

One of my clients is a private limited company with a turnover of Rs. 9 Crs. They do not have any loans. Their share capital is Rs. 1.20 Crs. Is CARO provisions get applicable to them ?

Thanks in advance.
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
31 January 2022 CARO provisions not applicable as turnover less than 10 crores.
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Bhaskaran Chackrapani Warrier

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Bhaskaran Chackrapani Warrier (Expert)
31 January 2022 Exemption condition is not satisfied since capital > 1 crore, hence CARO,2016 is APPLICBALE to the said company.
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Sonnal Khandaray

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Sonnal Khandaray (Querist)
01 February 2022 Whether all conditions are cumulative or exclusive?
Even if one condition get satisfied whether CARO gets applicable?
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