Anon
watch_later 09/10/17
What is CARO 2016?
When CARO is applicable to a company?
Company auditor’s report order (CARO) 2016 is a statement which needs to be given along with Audit report by auditor.
It is required as per Companies Act and is applicable only to the companies incorporated under the companies act.
Further it is a report of auditor where certain points are given for reporting purpose.
Caro is applicable to all companies except:
- Banking company as defined under section 5(c) of the banking regulation act, 1949
- Insurance company as defined under the insurance act 1938
- Company incorporated and licensed to operate under section 8 of Companies act 2013 (companies registered with charitable object)
- A one person company (OPC) as defined under clause (62) of section 2 of CA 2013 (OPC means a company which has only one person as a member)
A small company under section 2(85) of the companies act 2013
NOTE: As per sec 2(85) of companies act 2013 small company means a company , other than a public company
- Paid up share capital of which does not exceed Rupees 50 lakhs or such higher amount as may be prescribed which shall not be more than Rupees 5 crore AND
- Turnover of which as per its last profit and loss account does not exceed 2 crore or such higher amount as may be prescribed which shall not be more than Rupees 20 crore.
Matters covered under CARO are:
- Fixed Assets
- Inventory
- Loans by company
- Deposits
- Cost records
- Statutory dues etc.
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