One of my client Co. has Rs.1,52,00,000 as share capital and Rs.(65,00,000) as Reserve & surplus. Whether CARO-2016 applicable or not?
One of my client Co. has Rs.1,52,00,000 as share capital and Rs.(65,00,000) as Reserve & surplus. Whether CARO-2016 applicable or not?
Yes, CARO is applicable.
companies auditor's report order
CARO 2016 would not applicable if the following conditions satisfied by the pvt company:
1. Paid up capital + Reserve <= 1Cr and
2. Borrowing < 1Cr and
3.Turnover < 10Cr
In this case, caro not applicable.
there is and instead of or @ radha.. so u have to fullfil all the three conditions then caro will applicable
Caro applicable
Thanks for the information but would like to know the purpose and format of reporting
Suhas Basu
Membership No 052684
As per the provisions we have to see the aggregate balance of paid up capital and reserves as on balance date. Whether it is debit balance of reserves or credit balance.
So i will suggest that Caro 2016 is not applicable because on balance sheet date the aggregate balance of paid up capital and reserves are less than Rs. 1 crore.(I.e. Rs 0.87 crore).
I am assuming that company is fulfilling additional two conditions also, which are relevant for availing the exemption.
Actually the Reserve & surplus balance is Dr. so want to ask whether consider the aggregate of paid up + Reserve & surplus which would be less than 1cr.?? now whether the CARO-16 Applicable???
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