Previous auditor has done CARO,2003 only voluntarily and was not mandatory.

So in ma view if it crosses Rs.25 lacs then CARO WILL BE APPLICABLE.

Wait for other members to comment and correct me if i am wrong.

I my view CARO will be applicable as the outstanding loan balnce exceeds 25 Lakhs.

as per CARO 2003 loan only include loan from bank or financial institute as in your case company took loan from directors therefore CARO is not applicable to the company.

AGM has to conduct. it doesnt matter whether CARO applicable or not.

1. CARO is applicable for pricate ltd co. only when they

               a. paid up capital is more than Rs.50lakhs or b. Loan from banking and financial institution in excess of Rs.25 lakhs or c. Turnover in excess of Rs.5 crores

In your case CARO 2003 would not be applicable. In case of an error in the previous year, its not necessary you continue it this year also. No report under CARO be issued.

2. ROC form will not be depedent on applicability of CARO. It will always be Form 20B for annual returns, 23AC for filing Balance Sheet and 23ACA for filing Profit & Loss a/c.

All companies should have an AGM(refer sec 166 of Companies Act,1956)

CARO is Not Applicable in your case.

CARO IS NOT APPLIBALE IN YOUR CASE

As Loans from Banks & Financial Institutions does not exceed Rs.25 lakhs.

Forms for Annual Filling is E- Form 20B, 23AC,23ACA & 66 if applicable.

AGM must be conducted ( Sec-166).

CARO IS NOT APPLICABLE IN UR CASE.

CARO IS NOT APPLICABLE IN YOUR CASE AND IF IT IS APPLIED ONCE THEN IT IS NOT NECESSORY TO APPLY IT EVERY YEAR... THIS IS FINAL ANSWER...

CARO is Not Applicable in your case

since it does not fall as per provisions of Law.

I think there is one more clause - the company must not have taken public deposit during the year.
 

In my opinion Mr. Anvesh Desai's answer is 100% correct................................

CARO becomes applicable only if Loans and borrowings are only from Banks and Financial institutions 

and loan from directors does not fall in its ambit.

So as a auditor you need not to report under CARO and as Mr Anvesh said there is no linkage between applicability of CARO and holding AGM. AGM to be held within a time specified in Companies Act.

Dear Sir / Madam,

if CARO is not appliable to pvt. co., then what is the format of audit report and what to report. if any one has a format of a simple audit report please forward the same.

One more query is

If a director has been appointed in Board Meeting in the mid of the year and  after certain days, he has applied & has been allotted with shares of the company & necessary ROC forms been duly filed whether this allotment will amount to preferential allottment at point no.18 of the CARO 2003 report.

(Assume here that the pvt. co. willing to have caro report voluntarily even though not applicable)