Caro 2016 applicablilty

Auditing

Sir , Caro is applicable on private company if paid up capital and reserve and surplus is exceeding the prescribed limit , for computation of Reserve and surPlus amount if (securities premium account =100 lacs and general reserve =200lacs but current year loss is 250 lacs ) then what will be the total amount for reserve and surplus for computation of Caro applicability (100 lacs will be answer for such computation

DEEP VICKY

CA Final

★ 685

17-Sep-21 23:13

542

Answers (1)

For applicability of CARO,2016 (Paid up capital+ Free reserves) limit is to be checked at balance sheet date. So here reserve and surplus balance is 50 lacs( 200+100-250).

vishwam mandepudi

Qualified CA

★ 2K+

18-Sep-21 10:10