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Caro 2016 reporting

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Mattam & Associates

36 Points Posted on 20 August 2020

a private limited company paid up capital 2 crore and reserves and surplus -2.10 crore. Is caro 2016 applicable to such company?

Replies (5)

Quick Summary

This discussion clarifies the applicability of CARO 2016 for private limited companies. It explains that CARO 2016 is not applicable if a company meets three specific criteria: paid-up capital and reserves not exceeding £1 crore, total borrowings from banks/financial institutions not exceeding £1 crore, and total revenue not exceeding £10 crore in the financial year. The key takeaway is that paid-up capital and reserves are considered in aggregate when assessing the first condition.

Sagar Patel

Tax and Business Consultant

11616 Points Posted on 20 August 2020

CARO not applicable to a Pvt. Ltd. having
1. A paid up capital and reserves and surplus not more than 1 Crore and
2. Total borrowings not more than 1 crore from any bank or financial institution and
3. Total revenue not more 10 crores during the financial year.
If all this three conditions satisfied, than CARO, 16 not applicable.

Mattam & Associates

36 Points Posted on 20 August 2020

2nd and 3rd conditions satisfied. I want to know while checking the first condition paid up share capital and reserves considered individually or in aggregate value.