Small company

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This query is : Resolved

Shivam Saraogi (Querist)

23 May 2016 Paid up Share Capital: 45 lakh
Reserve and Surplus: 40 lakh
Turnover on march 16 : 1.5 crores
Turnover on march 15 : 1.2 crores
Borrowings: 2 crores

The Company is a Small Company as per sec 2 clause 85 of companies act 2013 ? Is the CARO 2016 applicable? as small company falls into exception of applicability of CARO 2016? Whether it should be considered as small company or private limited company.

Jatin Bajaj

Jatin Bajaj (Expert)

24 May 2016 Defination of Small Company does not include Free Reserves. CARO Act 2016 will not be applicable to Private Company having paid up share capital+ Free Reserves exceeding 50 Lakhs, and Turnover exceeding 5 crores and outstanding Loan and borrowing exceeding 25 Lakhs.
In the above case paid up share capital+ Free Reserves is exceeding 50 Lakhs. and borrowing is also exceeding 25 Lakh. so CARO will not be applicable.

Shivam Saraogi

Shivam Saraogi (Querist)

24 May 2016 as per CARO 2016, exception of pvt. ltd co. is as follows

a private limited company, not being a subsidiary or holding company of a public company, having a paid up
capital and reserves and surplus not more than rupees one crore as on the balance sheet date and whichdoes not have
total borrowings exceeding rupees one crore from any bank or financial institution at any point of time during the
financial year and which does not have a total revenue as disclosed in Scheduled III to the Companies Act, 2013
(including revenue from discontinuing operations) exceeding rupees ten crore during the financial year as per the
financial statements.

My borrowings are exceeding this limit, Caro 2016 will be applicable?