LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Applicability of caro

Kanhaiya (Nangia & Co.) (1981 Points)

20 December 2014

Radhe Radhe,

Please Confirm that CARO Will be applicable:

1. When all the conditions are to be fulfilled

2. When any one of the conditions are to be fulfill

Conditions:

1. Turnover Exceeds Rs. 5 crore

2. O/S Loans Exceeds Rs. 25 Lacs

3. Paidup Caiptal + Reserves Exceeds Rs. 50 Lacs

Please Reply

Reply
Follow
Share

16 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 20 December 2014

Originally posted by : Kanhaiya
	Radhe Radhe, Please Confirm that CARO Will be applicable: 1. When all the conditions are to be fulfilled OR 2. When any one of the conditions are to be fulfill Conditions: 1. Turnover Exceeds Rs. 5 crore 2. O/S Loans Exceeds Rs. 25 Lacs 3. Paidup Caiptal + Reserves Exceeds Rs. 50 Lacs Please Reply

A private limited company, in order to be exempt from the applicability of the Order, must satisfy all the conditions mentioned above cumulatively. In other words, even if one of the conditions is not satisfied, a private limited company’s auditor has to report on the matters specified in the Order.

- Para 14 of Statement on the Companies (Auditor’s Report) Order, 2003 [2005 Edition]
.
[Note: Statement on CARO, 2003 is applicable on Financial Statements prepared on or before March 31, 2014.]

1 Like

Kishor Bhat (CA final CS executive (from Bangalore)) (1881 Points)
Replied 20 December 2014

CARO is no more applicable from the financial year 2015-16..from 1st April 2015.

CA ANKUSH AGGARWAL (CHARTERED ACCOUNTANT) (2782 Points)
Replied 20 December 2014

Mr kishore bhat CARO is not applicable from fy 2014-15.New order by CG will be notified very soon in future

CA Mahesh Garg (Chartered Accountant) (22 Points)
Replied 20 December 2014

Yes ankush you r right

Tejal (article) (29 Points)
Replied 20 December 2014

Hey! If Caro is abolished, why is it a part of our syllabus?

Tejal (article) (29 Points)
Replied 20 December 2014

Hey! If Caro is abolished, why is it a part of our syllabus?

CA ANKUSH AGGARWAL (CHARTERED ACCOUNTANT) (2782 Points)
Replied 21 December 2014

see the fact is caaro is not abolished it's just not applicable for fy 2014-15 and onwards.New caro whenever comes into existence would be similar to existing one.So,icai doesnt want to delete it for one or two attempts.If in exam question is for fy 2014-15,simply mention caro 2003 is not applicable otherwise give answer as per caro 2003