applicability of caro

CARO Applicability: The order shall be applicable to:

1. Banking Company
2. Insurance Company
3. Section 25 Company
4. A private limited company with a paid-up and reserves not more than rupees “50 Lakhs ” and which does not have outstanding loan exceeding rupees “25 Lakhs” from any bank or financial institution and does not have a turnover exceeding rupees “5 Crores” at any point of time during the financial year.

Explanations:

1. Paid up share capital = Equity Share Capital + Preference Share Capital
2. Reserves = Capital Reserves + Revenue Reserves
3. Reserves include revaluation reserves also
4. Debit balance in Profit and Loss Account i.e. accumulated losses shall be reduced from revenue reserves for this purpose.

Application of even one provision will attract CARO

here is a link where you can find the FAQ

praveen is correct

any one limit exceed is enough to made caro applicable

if any limit exceed once during any part of the year

caro will be applicable

it is not necessary to check these limit on year end

Agreed. If any of the limit touches at any time in year.CARO will be applicable.