Question ID :
31680
Applicability of CARO 2016
Whether CARO is applicable in following case?
1. Paid up share and reserve is Rs 6.52 crore
2. Borrowing NIL
3. Turnover Rs 20.75 crore
3. Private Limited Company
Posted by
CA. GHOSH SAMRAT
on
Jun 06, 2018
Filed Under
AUDIT
Assuming all the parameters given for the private company in question. Since the borrowing is NIL, CARO 2016 is not applicable to that private company provided it is not a holding or subsidiary of a public company. Two parameters, other than borrowings, satisfied the threshold limits. All the 3 parameters should be satisfied for the applicability of CARO, 2016.
Posted by
CA PRADEEP C B on
Jun 06, 2018
Answer ID :
68747
Please pardon me Sir. There is a mistake in my opinion as posted on yesterday. My correct opinion, If the private company, not being a holding or subsidiary of public company, satisfies any of the 3 parameters, CARO will be applicable. Here Paidup sharecapital and turnover are more than threshold limits of Rs. 1 crore and Rs. 10 crore respecctively. Hence the private company need to report under CARO, 2016. Hope this will help you.
Posted by
CA PRADEEP C B on
Jun 07, 2018
Answer ID :
68748
CARO is not applicable if all the conditions mentioned below are satisfied-
(1) A private company which is not holding or subsidiary company of a public company, and
(2) A private company having a paid up capital and reserve and surplus not more than ` 1 crore as on the balance sheet date, and
(3) A private company which does not have total borrowing exceeding 1 crore from any bank and financial institution at any point of time during the financial year, and
(4) A private company which does not have total revenue exceeding ` 10 crore during the financial year.
Since in your case, CARO is applicable.
Posted by
CA. SATISH CHAND GARG on
Jun 07, 2018
Answer ID :
68766
applicable
Posted by
VINAY BHARGAV KUMAR G on
Jun 09, 2018
Answer ID :
68778
CARO is applicable in the facts stated by you.
Posted by
SIVADAS CHETTOOR on
Jun 13, 2018