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Commenting in the caro report

rushi (article) (125 Points)

14 June 2012

A Private Co Has A turnover of 5,70,00,000.

this is the first fiancial year of the company.

the company has no fixed assets,inventories and also has no internal auditors.

How should i comment about theses three points in the CARO??????

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CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 14 June 2012

1. Short title, application and commencement. - (1) This order may be called the Companies (Auditor's Report) Order, 2003. (2) It shall apply to every company including a foreign company as defined in section 591 of the Act, except the following :- (i) a Banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (ii) an insurance company as defined in clause (21) of section 2 of the Act; (iii) a company licensed to operate under section 25 of the Act; and (iv) a private limited company with a paid up capital and reserves not more than fifty lakh rupees and has not accepted any public deposit and does not have loan outstanding ten lakh rupees or more from any bank or financial institution and does not have a turnover exceeding five crore rupees. hence in your case it very clear that caro would be applicable. go for furthre details: https://www.mca.gov.in/Ministry/notification/Notifications_2003/noti_12062003_480(E).html