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Kinjal Shah asked 1 year ago

Hello sir I have a doubt in auditWhether CARO 2016 will be applicable to a company with following details1. Paid up share capital 1.5 cr2. Loan 50 lakhs3. Turnover 15 crThis is not a holding or subsidiary or sec 8 company Doubt here is, this company falls under the small company criteria as per section 2(85) so whether exemption from caro 2016 can be claimed even if it exceeds the limits prescribed for private limited companies?

1 Answers
RaviRavi Staff answered 1 year ago

New limits of small company were introduced on 1st Feb 2021 they are not applicable to July 21 Exams. Old limits are paid up capital 50 lakhs and turnover 2 crores, these are applicable to July 21 exams.
So as per that in above example, company is not small company.
and if company is small company but not fulfilling 4 conditions of private company then they will get exemption under small company clause, to get exemption you have to be covered in any one clause.

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