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We have to learn one line to learn each point of CARO, 2015.
Remember this key 🔑
"FIL ID Code - SAD GUN"
1. F : Fixed assets
2. I : Inventories
3. L : Loans u/s 189
4. I : internal control system
5. D : Deposited
6. Code : Cost records
7. S : Statutory dues
8. A : Accumulated Losses
9. D : Default of repayment
10. G : Guarantee for Loan
11. U : Usage of Term Loan
12. N : Noticed any fraud? and its reporting?
2. I : Inventories
3. L : Loans u/s 189
4. I : internal control system
5. D : Deposited
6. Code : Cost records
7. S : Statutory dues
8. A : Accumulated Losses
9. D : Default of repayment
10. G : Guarantee for Loan
11. U : Usage of Term Loan
12. N : Noticed any fraud? and its reporting?
Exception to CARO, 2015
Remember this way
"BICOS-Private"
B- Banking Company
I- Insurance Company
C- Companies u/s 8 of Companies Act, 2013
O- One Person Company u/s 2(62)
S- Small companies u/s 2(85)
Private- Private company
I- Insurance Company
C- Companies u/s 8 of Companies Act, 2013
O- One Person Company u/s 2(62)
S- Small companies u/s 2(85)
Private- Private company
All 3 condition must be fulfilled by private co for claiming exemption from CARO, 2015
"P L T"
"P L T"
P- paid up share capital and reserves not more than Rs. 50 lakhs.
and
L - Loans O/s from banks and Financial institution not more than Rs. 25 lakhs.
and
T- Turnover not more than Rs. 5 crores at any time during Previous Year.
