sir,
Private limited company shall be exempted from the provisions of CARO, if it fulfills all the following conditions:
1.paid up capital and reserves shall not exceed Rs.50 lakhs,
2.outstanding loansfrom bank/financial institution shall not exceed Rs.25 lakhs,and
3.turnover shall not exceed Rs.5 crore.
eg.1.paid up share capital Rs.25 lakhs, loan outstanding Rs.10 lakhs, and turnover at the commencement of financial year Rs.6 crores.
in my opinion, since, two conditions are satisfied and one condition is not satisfied(ie, turnover exceeds Rs.5 crore), the caro will be applicable.
please give me your opiniion on the above is example and whether my opinion is correct or not.
CAclubindia
