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Gaurav Kumar AggarwalGaurav Kumar Aggarwal asked 1 year ago

Sir for Caro applicability – exemption to
private company is –
Paid up share capital and
Revenue and
o/s loans and borrowings
need to be cumulatively satisfied for getting exemption, as per your notes & SM  but
in SM Q.No.4(a) Pg. No.5.89 one condition is enough?

1 Answers
RaviRavi Staff answered 1 year ago

Astha Pvt. Ltd. has fully paid capital of Rs 140 lakh. During the year, the company had borrowed Rs 15 lakh each from a bank and a financial institution independently. It has the turnover (Net of excise Rs 50 lakh which is credited to a separate account) of Rs 475 lakh.

Will Companies (Auditor’s Report) Order, 2016 be applicable to Astha Pvt. Ltd.?
In above case company wont get exemption as they are not fulfilling capital & reserves condition, it is Rs 140 lakhs which is exceeding 1 crore.
To claim exemption all conditions should be cumulatively fulfilled and for applicability even a single condition is broken, then it will become applicable.

everything is fine is above case

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