Dear Members, Greetings for the day!
If a company is having Paid up share capital of More than 1 crore, Borrowings and Turnover more than 1 crore and 10 crore but it is covered under section 2(85) "Small Company" , whether CARO 2020 will be applicable ?
CARO 2020 is not applicable to a private limited company, not being a subsidiary or holding of a public company if all of the following conditions are satisfied:
- having a Paid-up capital & Reserves & Surplus not more than ₹1 Cr. as on the balance sheet date, and
- does not have total borrowings exceeding ₹1 Cr. from any bank or financial institution at any point of time during the financial year, and
- does not have a total revenue exceeding ₹10 Cr. during the financial year as per the financial statements.
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