| 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: 162 times
CAclubindia
