Applicability of CARO:
CARO came into force on 1-7-2003. It applies to all Companies, including foreign Companies defined u/s.591 of the Companies Act (Act). It is, however, provided that this order will apply to following companies:
a) All companies listed with any Stock Exchange(s) in India.
b) All Public Limited Companies.
c) Private Limited Company if fulfill any of below mentioned condition:
- Its paid up capital and reserves exceed Rs.50 lacs;
- Its turnover exceed Rs.5 Crores;
- Its outstanding loan from any bank or financial institution exceeds Rs.25 lacs.
Companies Exempt from CARO requirements:
a) A banking company
b) An insurance company
c) A company registered u/s.25 of the Act
d) A Private Limited Company if satisfy all criteria given above
CARO came into force on 1-7-2003. It applies to all Companies, including foreign Companies defined u/s.591 of the Companies Act (Act). It is, however, provided that this order will apply to following companies:
a) All companies listed with any Stock Exchange(s) in India.
b) All Public Limited Companies.
c) Private Limited Company if fulfill any of below mentioned condition:
- Its paid up capital and reserves exceed Rs.50 lacs;
- Its turnover exceed Rs.5 Crores;
- Its outstanding loan from any bank or financial institution exceeds Rs.25 lacs.
Companies Exempt from CARO requirements:
a) A banking company
b) An insurance company
c) A company registered u/s.25 of the Act
d) A Private Limited Company if satisfy all criteria given above
