Pvt Ltd Company - Conditions to be satisfied for claiming ex

Pvt Ltd Company - Conditions to be satisfied for claiming exemption from CARO.

A private limited company must satisfy the following three conditions :

Its paid up capital and reserves do not exceed Rs.50 Lakhs.
it has no outstanding loan exceeding Rs.25 Lakhs from any bank or financial institution

and

its turnover does not exceed Rs.50 crores

Stress :


All the above conditions must be satisfied cumulatively at any point of time during
the financial year.

(i.e) Even if one of the conditions is not satisfied, a private limited company's auditor
has to report on the matters specified in paragraphs 4 and 5 in the order.

The compliance with conditions for exemption will have to be judged on a financial year to financial
year basis.

It is possible that those are fulfilled in one financial year and so the company is exempt from CARO

but if they are not fulfilled in any other financial year,

then exemption will not be available for that year.

That is to say,

the availability of exemption for private company will have to be considered afresh every year.


Please refer attached excel sheet………

Regards

K.Ilayaraja…

Attached File : 52 caro.xls downloaded: 158 times