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.
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.
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?
CAclubindia
