2

APPLICABILITY OF CARO, 2020

PARAS 1 AND 2 OF CARO, 2020

In exercise of the powers conferred by sub-section (11) of section
143 of the Companies Act, 2013 (18 of 2013 ) and in supersession
of the Companies (Auditor’s Report) Order, 2016, published in
the Gazette of India, Extraordinary, Part II, Section 3, Sub-sec-
tion (ii), vide number S.O. 1228(E), dated the 29th March, 2016,
except as respects things done or omitted to be done before such
supersession, the Central Government, after consultation with the
National Financial Reporting Authority constituted under section
132 of the Companies Act, 2013, hereby makes the following
Order, namely:—
Short title, application and commencement
1. (1) This Order may be called the Companies (Auditor’s Report)
Order, 2020.
(2) It shall apply to every company including a foreign company as
defined in clause (42) of section 2 of the Companies Act, 2013 (18
of 2013) [hereinafter referred to as the Companies Act], except—
(i) a banking company as defined in clause (c) of section 5
of the Banking Regulation Act, 1949 (10 of 1949);
(ii) an insurance company as defined under the Insurance
Act,1938 (4 of 1938);
(iii) a company licensed to operate under section 8 of the
Companies Act;
(iv) a One Person Company as defined in clause (62) of section
2 of the Companies Act and a small company as defined
in clause (85) of section 2 of the Companies Act; and
(v) a private limited company, not being a subsidiary or
holding company of a public company, having a paid up
capital and reserves and surplus not more than one crore

11
 m 3 l
a ,
0 r yet sr yf)02 , f
i o nhr o no( o
for financial years commencing on or after
12

i s
h c 2 f ato f as1 2 )
h n 0 e pie 0
y a p a 2 l rthp5 a2

42
b r n] , b oi e1
r mr r , (
f ooaO
during the financial year and which does not have a total
have total borrowings exceeding one crore rupees from

revenue as disclosed in Scheduled III to the Companies

Act (including revenue from discontinuing operations)
rupees as on the balance sheet date and which does not

any bank or financial institution at any point of time

O
exceeding ten crore rupees during the financial year as

(3) It shall come into force on the date of its publication in the

g fi a w 0 e
d a c s t2 cgPR
para 1.8

e r R i t yi ) e [ s
t d A l n l d , . nat )A u
i a e C p e p uO 5 2 C a
d t p gc ( l
u n p a n a mmaR-
r
1 i
e e1m c
a i d o e eoo A 4 r s a n
i
l d b t c f C 1 oo r o i
y d o e a 0 f a r
n e sn t l t o 6 ; 2 h p f d
a fi na o l
a s t 119 atf
d e
p c i o N h ls0- o gto n
c a a2 r t np t e fi

See para 1.7

m e e s i
c h,8o i e )
c p e
o p n c 0 n O1i d

2.2 Companies to which CARO, 2020 applies

( d
0 n ar 0r xo m

v
2 c s o a 2 o R 2 ue
0 y r s t d 0 nt A p l
c ttx e s
a
2 r r i 2s. fidi o s nc)e
, e e
t o u ,d Ct r i A(y y]
r eu- e
O v t O a

i
p G y sl nr
Ra hae6y
R e a
A e[ s t 1 neea l ae
C f me
o
. r . ’
I Aw nh e l
p -
5 l ahsc
t u pd
F l s3 A Cn ot a pf a fi mr
per the financial statements.

t ea b ’ m 1i
O
n h r
ora C
I fo r t0,a2 0c moc l i
c oO
Y u ti c t o d n o2ye ce
2.1 Effective date of CARO, 2020
T i a n o-2 x h
I o npi l d P i sn p era cnb p nt
c a a 9 n s

2.2-1 Applies to foreign company

L t r o gf
I c t p uf d: n e1 o f fi yods
i i
B
a n a ao es e20 r 0 f r
e t ee e o
A
oe o) ne m- o2( sor vec t i r )
C
I e,c t i
a g 9 t - t f es p n o2
L hs b t e1 or n ma f (

xxi
P t eny y( n r
e r dt e e3 oofep aa1
P nli oa l o i 0 e rd m00 t
p e u 2 r xm
A
opp i
t m pus cm q i o
i r e y)eo oa
t r
ta i
d s aa se er ur
r a q
ota
2
, l
p yc y[P
prt

42
r nn e e p(l l
o da tcl oio gy r esO r l
prar ri aeao p .

Official Gazette.
e , o i
t t nal s a l R c pct
ed ne nt a i i erlAa lus fiF aA
r r i p s t i i a i l i
sOl ,rd le
l
a c
co
fip r
onc ryec
l
C a
hlac
e0
.
] l
le
’
r l o hx i pa oa
t tn5 ; scp 2 a h
osas
i se r g en i i n a 1 s0. ht
t h h i a n r d c an- 0ns sf
i sh s l fi n v 2ie 2
d t rt c i u e fi1
4 ro

see para 2.3

t e w e al 0ed ,
uh,f dn no he ane
h n0 2n iO
n e
d2
aic o re oll Tt f fir o 2

1-4-2019
I , fiaR
Para 2.2
yh Om do O pA rn
r 4 e ef em oio
e w d eat s Rd C ect


vo n ht a e Asof he
Et a Ts Bth Ca Co Ts

 n h ere n n aatn ylye e h. oex t e g , a s lt
a ;
i g ha ari g i al c d c rbt hec t t
i nn
Para 2.2

i.e.

Companies (Specification of

-
hee shy e n a

Para 2.3
’ u t n a tt mae n i
s (u pon t ldi d s oe
y o . d”) t t r h v c t as reu o; i m
n
a r r
e nt rar o s
e
i ysi s
e ui o yto o l
t ,
s
pa
ei
t
c e
p h
t n ac e Pof yr i
t ny
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aee
f u c n dd ag
n tA hy ni c n y ,
”oi n o n s a
m r a c6 t s aua ppe dIl n rirh e i gI nn
o o
m A5
o
( tl
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e e ut dgt , t
c nf aa
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l 9
l
i mre s ons a t
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i a i
t o r
t m
n e
s r e1
h eb
t aa
e
r otn e cei rsi a nei
urd mry n s p
ens dn
g t e t e a i cAc i ngn v otdt
pulp ror n ce ni
i
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i
y
h f
t oth r
oLs ) ne s
u gae
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e
se
s ca
i ca
a
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r b; o “ ped gh e at o oe vte s n i t ;
s ati yh
r
S o y )( rt P i b r ced w ecr osd rn ri o c
E f re n oi L e ty ohn o nt x r A rnn e oc s y
I ‘ e d 6 cmL r ,n f g r e p t aI o i l
42

L
f ho a (5 oct eui i ae e x c mti sm v p
P
o t n 219 sin f a hod
d )or dss hee
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6 emen uac t
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ttl oa pf g ,
c o o r o u noe, er
e.g.

2 i t i e c nts
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2 i r ; i n es a a n t pn pXvO h ot t c
,
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fi
a
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t heo sf6
e l 5 mi. T i
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p d nc e c d t hc e mrI ’ n nd
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A e r n Ie i ni
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o I i I ait ci s i
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e y na eei a n els s ed i cp CC d f i e p v I mpr
H f c e s t
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i
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C o d s
y i h v i
t m t d c l nbTo aer psi ghno (o2v e i
s i dd

h
I s d s eg i
t i s
t n fin d er.m hn i C o2) ) r r ual rs, en
o I t e 1 s
o t nou n te c mu
H t ru f l pne oie a
c uUu . tt r rd1 ( bit a
W n b u i
sr a fiC e
dod e r c h
rroo
( 2 o sit bes

through electronic mode

s.oe t i oe i s g
O e
i r o uh e
s d e nedsi a
i hn Aie n eacd f dea
s e c t n di
nd
t
i r bc

Definitions Details) Rules, 2014

T d o d bt s h ut td sn es r o hPne ana r l i s u evi
e e fr e et t o t gt u ea ar oc
S
E r y t
n a o o n h
i f ,ao
t
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s t
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N n— a r ey
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d n - o r e t dn t s
A i t p a l b e9 e tipe
s r c s
Au h e t f l
p unt )he no ti n e
6rt o es
P m r a i a r i p
ec l y e5 a d

2.2-1a Electronic mode

s mh pai s
M
hA o o psc 5oa ,e 6b g ris oo n n t s en mba

42
O t c c ayi w
n t n 9nc r t
c noo t 5f u oLl c ani e (e un co ea
C e n eh a e o 1i o Aicy 9o o p ai n dao p m ewh — ba ci l
eh
r a i v s bti ) p . s nn 1e r rd e
e e l e s o oge apt t
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r
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oci sir u,t t ori e
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go t s
t s
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e.g.
l
o n t I
I t I
ta t f
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O s a o bi o o fis
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eci
t e fiu uir e i
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i ro t (






he he hnd Ais (

ii

iii
s obo af ur u (
13 Ts T d a TI f Cv co pt b
 ,
e . yc— c r din e tal
l .]
y ”3n t o tll h dfn
mse nni o na 3 e 1 i c noi
14

Companies

MCA’s Letter: No. 8/16(1)/61-PR, dated

Companies
n ao h a l
e u h n0 c0 e nw n

2.2-2 Applicability of CARO, 2020 to audit of branches of a company

i
c oi c s s ah t ps a0 fi2 m s aited
i cw pr i n t
i yc me, p2 f i d a
r sd
d r mcth a s r ,
g m, o e h t n b e uin
e de r o; oly os his n a i
m uh ol
ce
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, t ; pa sp
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i , c
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l c o yhd i n dn du c ue nA u fi t
e r ergn mio sI as m i
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i
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c n Ridsi r s sc g r i i
v
i hc g fte
f s n e r i f s2
o oa o p r na n i t i aRd t

2.2-1c Liaison Office of a foreign body corporate -

0 sr ua e t do i c . g s i o c e ,1
2 c -v nup im
s es t e u o ma s ,ee
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t d a
ha
t
r o se
e
d n s n
rsn ,nn
2 e ke p u ha u
e n a ul pf a n t i

14
2.2-1b Carrying out business activity in India

,
O t a e
c cat ptiI ba er bic rr
a m s a
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e
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R g t brv e .
A nch v v d u i dgi ee mo c
c i n s nhr d mp dcs ,3
e a oco i s
(Registration Offices and Fees) Rules, 2014

C i r r od ni sa eti vt i ’ r r ee e 8 r 4
F t
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(Audit and Auditors) Rules, 2014

A
t i
t n l i r bo t t d ud e , vu ncr of i b
C
I sma u i
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P
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A cf e t i
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9-5-1961,
oe a eg, ut o s ut o , a nr Fpt s
Para 2.2
hn i
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iv

ii

iii

iv

v
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o 1ot h 2 r r o a c r o plo h e n
(Audit and Auditors) Rules, 2014 clearly specifies that a branch auditor has
Para 2.3

Companies

t t
i 1o a i hn o ebri e t t a
i ed
l o ( tpect t i f t
n c a p v s a
d u ust ni e s“s e xnee a i
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t e s ,n .ta a i a i e i
n
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t .
r
t
p mAC
dbi u e huo n
p t uaf ot.. vot amrgt e mof
the same duties in respect of audit as the company’s auditor

m adt sre y ecf o O n a i

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2.3 Exemption of companies from CARO, 2020

, t e 4
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O n h ent 1e y c “ g d t i t r 2 R
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i
ii

to 4 a hs halw i nsabyr
15
I St 1 Pt t tvi p C
 ; f e ans s’s6e .ro eiplyd iyys ,e sn l l0aO ,eeem
t o kdi et t ub e 2 r h t
c h nnhI1tdr ln d n B o a0 h
16

-
See Para
t ro a h i a Rttar o
A 2 oi aatA0ana2 d vrsua a na.hd
opy
r
oc s m 2 P Affi v
s n f
o nit BytC,t uil i
r P Tul g o o r f
e
i o]
i
d
n yd -naIO
n a h f e m peqL
n e c n.
nmay o ehe ,
aOi n C y p d
n 2a nn edi o t yr e
t ao optoRh art dL uc pn w a t R nl t
i no t
a c o cs[r noi
Para 2.3-2

n pc d2As s oa l a m ae o a p
p e
s o] Nme
(o C or e t
yPht
o dao pv e 0
A o eb dm
f
m i md n1 ega o nr mo e fi2 C C i
t t a g
Para 2.3-3

f t oe Cc f l ae c his0 exe
o o c
e c fi Fgp i a
r o c
nld p ydn
t i ythteob t t P pol
m c
i n
i fie
C ) s i Bn o a y a o 0 pillf
u l ca fsa 2 OomNp d i
e 2 gec i Pi t l h 2 abi oel e eac) o , r eepece
h 6[ f np ] Nk s
i l a 0 ta t hiv i O n f x cac e e
t ( ] o i
d s nnt .
o
i
b b d 2 o i wts u
l w r l
b ytiRaten pb
sl

iii
f e0 l , nL i pu ( nrA e x l
2.3-8

o s 2 )[
5 l
o s aaI s
l a e u O s
i s o
ser o ae spo rdah er)a
8 u0 8]; e
h fi obe
t
.a c
i
l
ho
t R
ddh
l t
r bt ap
r t nthCimf
y it e h
n a2
l ( 0 aisto eaa t0p twA u eTe
t at oa) i fn e u m ds

i.e.
0
o] c , e2 l o d02 p a oi .v ea e( eo xdG o (ry
2 O s 0 rt b t as1 6C wmt e y sh) a e e r On

i
0 i
t rR u2 e a ant2 n r m ntbs l
l w p fie a
2 c e hs cfi e e a 0 f 0iao a e a e i f i ea
Paras 2.3-4

a, ta h
Para 2.3-1

, e dA t i e,h 2o 2Ldc eo oir f f(mbe c ter hp

v
O l i h l y ) Tp
R s nC c O e c p l
e h O t
tan,2 ) 0ath vnpno. ho( 2 o
cldp. mittm
A r uf rAR nhi pts sRa O( 2 e c o mngy cs1 ust rfo
C e e sw ai p 1 ,oe i bsoael l i s o e c o
F d do
e dC i tsc e A h
t R
mAa O t hh ae cta
o c a h e aed o snxe)c
O n
u[ n) nf hy
cn
o t
r nCe so r Refs
l w .
e )d yc
c n wdl r
a t
i w n e
or h(t
d
e
ne cCa v ti s

v
uo aer fi As e t ln i o yrPmtt o )
fi( i cya r i i t
Y
iv

e] [ l ( 2
T t e2) d) h a] sv
i a i fp Cti n I b a e t
i na iii d y f ( i
0 3nbdreof n d o0.upd g l , m
I d( a
L
I a
r 2 s1 e wp0
2 0o nahto
ts
a ap t t
2pmu n
d
n ae n
i y d eno1l
e n n fi i
iv

0 n)( ym0 l t tal )0 pr ayan

B e
p2 a a fi2 0ceuc x her mee i
( ao o n t a o s p r
no2 fe s mto a pci nau
A
yar e( 2hhd6o n t b h
dv os 2 scl snc opi t
, ac, ,cto m a
C oO n, v
I nP d1 pcO 1 to enece i i ll t i m a P e
L oR a[ a O i t o 0sni h dOv e l a u cmp r e s o r n t
t i Rhag2uc o o c a o h c
P sr ml s nc em p e
t f i a
pt obR i i eRo dx ctr e
P a w t i c m 0
A dA a A) s , a v . p t l n h 2 ee ldd
l v
eC
s
mc y[P cuA Cy
a dO
l t eo1 6 ohaba u
nAb
oCa sc 0 t
i
ea8ra
x e a ner i
nf oA nt dpC tnn yo Rshr0 sic spa l i ai
)rh, 2 m e e f n h 0 m u fip
eo Cs ac eaf a h etp2
A i h a t
n mv ibriot2sse i
c a
c)
i nie pA ifo
t haa Chna
p d t i
s, t
i
, w P
d
e
b e (
o owO l l
l oce i
t e
h20 a l
l ,
l on ms mo) t p l O y t e roCyR ei f c a per
y) sa dmmu n n n y L s h mf t w n ew,tfsh
iii

( oe iy) ( oR gn t nA a
o i t st)Pa a d

v
r l eo o Ll t
n2
a( e p cni er(
a 2 fiC o o e d t
ol
i sA oa
l ana t e p i
( O pC vees a
t s fOt h i s
t t
Pm la t i i c w t aC a i i
r vifin a o R s fmi r
p1
eo
l
a p a
vid 1 r
a
l
a gnN o na f
ec0o npsus n m r
aeeao
n m m poc i r e A e i
iF
u
ma nC mm i s a l i n o fi2 amina pxd,c o b erov C nl
fie
oa
cP
r
Oe so r
pubar c c
n i
k i
t epi0)
e r fodaP
o c nrL meno n r
f
aa po ytifr i vdy .
h P da nacda2( 2 yut ct ,
r)sFncoaeln
a[ at aC as an n l , ydaf oL ol i i ae l oa
Para 2.3

[ c
a fi l p e s
hi adc O 1 ae Cl g h(n]pp)crhp

v
) ) ) ) ) ib
IFbr i d l
u sRr a witPdn a n n m
fiu e t o o ms) ( 6 e s
e

v
Agaa i i o e l
n i
l r t i e 1 d m

2.3-4
( u oh Aa ymL L a hi epx t 2 0rh r
iii

iv

vi
( ( ( Cn sclG os oa u)i orr ( o
Ii i wTCP Bli(g i Tt fdae F( d ci 1 2Ot c

i
 re no ei s)e 8rsae sse s i i te0eneo f ytr ete
ob
otmt h h e e r hi h o h2t h h noe ha
0 ot)
Para 2.3

See
( t nh i a t ghht nt anb t
v

Fl h)
.a
l i
t
i
d o
eci nic(2 t ot
i e
n
a P ett .
g f r t [ se2o fds , psm hrv
i
e a t r a a r, ni mie

iii
h d s l h 1 h p f n sod e s ( t
vs nna l nwat
h c
ewmod i h
t e wfoO 2eh2 )
o)m
i
wp
o’ oem rrt s osnn
e
i
s
n n s
i
n te R 1pt(
e cC
by
an ccs
i
oya
i resC ma oua r a u bAr ado f 1 P
a r y la
a
t
2.3-1 Company licensed to operate under section 8 of the Act

nsl npo e t a i p b C a O es
)a
p ue dpanp
m e dis eer s pis dem se alwa
s
d r n(t a da
(m n p nrt h t h m v e p P u a’l i
ri e ir uaf orpo e nm? eP eyo ,d
v

e n a m t
i i ovi
oo
t dasx si o n tr. no n
i wco r e
t ac teoe
i c w f mns
a e

Companies (Incorporation) Rules, 2014

c rpCec do ps t5 v i r t no z
0 )l o
i de ei sttfeii2 i
t l f a 0I ope i
r
2 (l OmPed t ud s t npoo g, h tn c hpt d 2 s t mth o
eoOhe i ar s omnntr e .m
0 a ’
i

nm d ne c ac t 0 e o, g
hc,tt y
2
, i t i n eO eu
cq i
s e t odeAt o
i eume2a t r nCC e
O s‘s t ,1
s 3 u mot h e i
l i xai
h t n ec
r l s eeO
h , dte anP t
a
R e v e b

2.3-2 Definition of ‘One Person Company’ (OPC)

A i a mie 0oicn h
t sAoetr a aet he ansexs n po O c
C r
os on 2blhi
a e t f e
i .pr bsoi d w fos t
i i eAe0
Rti ms s
M gi ra
f ,
t ti no n r e p l y o r a e c e orI n i
O eh
t tpcgawot
n v y aegoi
d s
dr a e 5
t a
htb
bnCh2
a s Ce.
P y
R
a c
i p m A i i e i
t pr n l vcovh 6ly con y l f 0 n s ’ n
F
ch sth r n i
l i a on et4 p a o e2 oei e a
moe pce i mOd ota bycO , n
S
ew eci y n b o ndribi f np t n sO n p
E
I hy xennai a m a
c ceolpeos
h p u t oa n
i
u
bmp e t
i
l aR r
e ‘pa m
N t n ecaafl o i st soct hta i
t o stotba
hi l P. o
enp optp l s A rm
A t e
P fa n p fre wA6 ,u sec l i c t a b ee c
o p r a m oseml
oea p mor sa y ca c C nbo
e nAhsl
M r
O ym a u o i
t )e5 ni d i e m OmC n
C no hsCn a cbe
a ety ose h 9 i
t n f l aec a p h ‘ . o
ac cn ecfs h xil c i t 1n aou ] phu p t o sena l s
r
F
i i e o i ebi en ,opsot e mtsn ya sfr e ai
O n d h ,thmh e v t
0a hao ft
ccmnwo ofdat t
a nm p t e
p
N i
sie . wes
fotu o
ed m 2c t p
rm)Aa l
l o o
i )N colpayp fis M a
t
t siotntar ei
O 0 h e
I l
l 2 n i r e
0i
2pl e ( s csi e f8umta n m dsn ec n
T a m0 e d, do) h v i o

g
i

iii
P f i2 i a8e v bf ,pn c 2 e s h (c
) tn oe sp e taOr e O
M tnl n p n e r
e ded O a ( i
n “ co2
r n a o W c fimex c ‘a
i , amo yl R u55atup(d a hti Anh .
ine vb
E 1 ?8r ioe h s
X fuO po upt e d 2 6 p c s wec e eso t s eer
i t e
E
yaeR
t mc c o
eno wpt o
wm
Ahe
Cts n4mAt t oh a
r
i
u ss
t
a
nacb
ol d he
t rwi e ht
l A ogs nio n o a ta G e d i c e fpdt h t t
n vC cn s mtx e fme toCh yfPe s rt t ethl fa
oir firiHeie
k e . x ,
o oicct i t l
p o
nh
i
r e
dee
c
e t
o fo
u o
)neeo f o m
0pm o n det
r e r )rf lecerpwi
s t a s o s
u 6l
2ar o ea n e r e s
i s( e h e aenf nnhaN wr of %

62
osd (te S t . ora
ousi

iii
0, f s buhpa rny ) c 6 f d l i o o sce s ye (yn
2 0 t
2e a t 2 i 5?o nl v i i u l 0 u
,ncpt c,t e, e dOa ( An
a9)luh a n t 3 t d e t n t nd nno1 3d
O e a sre
e t ep 1 e p 1 a I p 1 s
e ec
s nei a a
t ar
pO oocs se

i.e.
m t d s . ma ds i e

iii
Rae
t h r
t yen i i
d a hm
t
ahm
r t ,)
t
( ee tc”
t er
una
eal ci me t
c hb
t d
l
e
l c
o
Ans x l paur ef o a foA c 2 p rc xa qc nuh e oh ei o u r
Ci nal ( ee ib i Gtc Swt oh Rp
e I opat oc Po c 1 r tAAeP Al s t
17
 , erfy , f t 0 st f sny rneld
n t o ndoepe0
o n h h : dnn ndgeono
i enhwe e o r ma o t a i g
n
18

One Person Company that is to

o a a n sa tc e T2 r eao h s i t l i a otr a t
i a i
s v ra t r tvn s c t rs sv l d
r i s e r
bpe) s y . o e evc i a u s e i
tce s
s f r ipi t
‘species’

r t x d ceo e f s i e a e
e
p pimmP(
f e0t
0 n xel t
wr
,c daof
s
o
i r
a
e
s c sgPp r cm c
) i s e e
c

er o s
e ayuc o e 1 t s 2r u d f
l n d e m i dfn e y
aRear eli r
n sbn n3( a
s
e
i
n gbe s
a
yee
nh l e
s i
sr
oe
i p u
t
s
a
v
o n)o deO n oal d p
o e e O n at t
i t i u r a3 e t ho y
“ n st saoaim s t i e m e k ytha n sh l
inter alia

t a a n s t p d . e pgn tal prit l p m(a t i e

s fi i v oi e em e r d mine r t t e n e n x oefpe s t
d e t i
r f i ” v m e e i e i n r i a h uom i
s t l u a
i
r d i o t
c Ca oc b v or e vp o m h t dti b e r d
o h mpee P h cx fm
o o Cub nav a r t
i nc o
t feot s d h e
w c i f s s e r ndo oce c hw h ased o c tia i t
i loa Ol ltet re p r t cel t t
i r i
t dtph e m
e h
h w d ”
y n cf“i
o a o e m oe
sv oar e o i
wwnw
y o-a n do eer m
t l
u no e dwvn b r e
s t r mbn on
i s v st
t i
Companies (Incorporation) Rules, 2014

i i e oa dhetyac e u d
0 s toathwn r
i e a C sum n e
Pne eshsnpn eso raa
e e nie
f f
o
2 e
s
c hpn t i Ppe r o eur c r p t d a m mhs i pec oo d
0 A s m fin v o nn i ufep a t vscee e d
u e yoein Otb a nt l i r
2 u o o sw ni o
l e d
genus

, m Oala qidyc m c t e i g a o u c i
O h h nCdp t i t smu h r i v h htt r
R c t a ye , ai
s hee e t nuh ea
r a x o c
i o rcen t ,
e tdi r x e
A
C
i
h f
o p n
obcuetp l m m ans t espdecb
reu
l c
c e
t nco i
wov i e
r v e
g
p
e.
w ) m s d x h ir fni bt te a l ti
F
ta c ore“ eTt hrspfx o o as, . li
s
a v t n
p a ae lbh
l a uyi n hs
O
c s e r . s a aoam lee
a
y
n l
a hlov a
ai lr
l dh a a qbv
t
t
sa
r
e t ehrm
68

Y
Ai(ePv s i t gpea hic e n i s a o t h)g eya ne
T
d2t e dc” pce v e e i a sh hr r rr
o hc o s1 r nh ay
I
L ee nanco
o r A y p i
h b ha p
aer up y tu r
p
sto sc t . (
y i n w ar, eal
I hm oivOt enaw mt rm nwo r t a yac t o nof mom p e mi
B h cv c
A t i
t r owhat utt
i ear eo ans lr
a oe nne t
e a r n v c
C forc panetp, ) nio r oC poe u e t r ai
pnfe
fr pty osc ono ”n
I o f e h f m e m a sr
t hcd i ifi d a
f s o n mteent e moet ml
L g i n on
hico r

68
P )e She o a t oor (n l l pnii r .
t i e h i n
i t c u i
P (b .t
” e we)cf 2 iti
o l sdos oa u a e d ec out v l
ob
Ca5tb
i i
l t r
e fi
pnw Cdr eA
c

A ) s d r i le.
1 ts u eenrnw r Cl a a pe
68
o C ( t r uat e ne et o o g t c.h a
( a a o a ohhgi h e noon nli C uu v v
say, a private company

3 t c P 2aei
o dit s P k ntwt h s op t p o ti
n
h n v h t g e de s sta a oe te Nd nb t
nny t e O t i
r T c e e t i
a e de r fle r ,ddf t sr tid spI
r an au
oa
i shI fdi o p.s ern a
h pupen e o yvenno r
e acc e a . n r a)a vc
t t eO abaa8 foao ee
t
c p i e
r n0.ee c “
,ny fns
t Cst er c Ps
et
t
f
h fi PgAie n Po N e(1 l
e s
em u i 0 n et
s c a o P i hhe xa nn syr s s
r 1 einh e y
nygn Ron
s qt2onApseOs t
ek a
s d iae
t e nss t s nema
t n a “c
yo e p t m e e a d Oo m bbo n fge
Oda r ae r i
bc r e o
t n i e mn eyc l h r l oe h nh mmt
o c i Oa o n oppv n e
” oerht t e cmy e

Note :
yhe yxc sasy h
t cmiwr i f hyr
t
i u i s eee c ep2a e Fmmaw
e e
r
r u f ein uixeha hy2 h hh ooro
nt n ee wnf eq o W fipt Ss bwcmms Tb1 c Tt nC cod h
b aoer na t
Para 2.3

ae a“ p t e 6 i
pr p s e )a i r ots e . . . .
me memrm vue
l e e i q si
a l 1 2 3 4
oh oi u

68
c hCo(r ehr ey
cw ct mt 2pr t b R
 yreee dd
— e eh -2.e t
i n hn yhn .
t
nonnh e mri c b
” u h o ca l ca c
Para 2.3

a y fifit , e
y b iro ;
t nt f s uh e
t uh A
pn r n cri h c so i r st a st
hre ec w A ni s ’ e i l
. a
mai t et a xc
e ho ta y P rre d rre t
opw haf p t s t d l ie
a a
c l n oo eoo c i
c
Cmer t m o e rwe i i sel a e mesm A e
r otb c r p n 0m
nob lfuay o npd f e
e t fw O 3 p
oCa c s e n d
tec
i
r :
s p i o m 0e
0b
mee
ipb 1 s
snh ad e
c o ba n es e s r )s o a , 0 y
r oshy
i
l ; uce e y c a c r 0 eut . 2 a
n
: b d y s o 0ot hro y

85
e s i t r r ae oxr p ; n e(l d l , e e
n h
Pr n i e e u hm e cep u — y he
a t l
a y 0 n t r n y
0 eeuwvs c p
d p i ct r o n s o n 5l ro l a t b
2
nPp ee . n a h su aoee t a y y ush m a .al or l p f d
0 nbr p r b s p a m o e
2 O edru
e u n w a r ss y f a e s
‘ s h f ch
,
O enl bnf
a
o
n s a f te
n
s
oe yro l
p m o d t
; e
icl r
h a m Rs tos
n
o 8 n
c
a r oac n aft o n r
R hOl sesti h o
” t ]ouo l
ddmd
p o 8 s o s c dh uwc h e
y o v
t a a c n r ec oti
A e i
C fs,h n y r r o)a
e t l e ei r i
e s eeo n e mc nrsr e l
l y o v t y t ch cdh a t
c o
o ppc
See para 2.3-5

M l a h aa ad a r i
t o e(i. a xw ce i e g
ruyur u aen n aew d

ii
O n p t tetn h a
i c g vepd a v
i ed c i s e
e r n r rt s a
R
F ceaddi o m o
, e fi
oa
y
l nu e
d
i
e
s e a s
u ce p r
p te sxe d s r
b e
t
a
S fis
f e
p n n t
n o y
c n
ha
g
n ri uh
oe s s r t h
b e a d a
l e d m a o
nrb
i
s
ote b
i
u d
s n
r
o
E m a pc u r r e o l
I o h ass e a
l p i
h h nmn a u d o l c a e c s
i ocr p
a u r
N ytou u v l
a
t ra
e ao l s n u
p o -
b hxc t ssc dns o
A
P nfCo o a
r m m
he
cr pnrn
c a u r u se as i
: , e
ore nse r d c
o e
M aonh h t s o [suo s fih
ea s
i r o ws pe ,n dp ae r
rss ot t n c l h o d c ynu ) o op. y
y r d

i.e.
O
onr o “ a m a g h t e i td s e
n t
C n e s a i nigt r
y e y ni-b t , le fi ee

85
yoP e eon c e t re hi n d aadt (di y a b orbe a s o
F i
s t h s p ob cd he i n t o piio 2 n t
i ra i
p g b
O ni n n ast i e r a s r a n a p y pe yp r
av eoou c fia ceo h cho g p i b me
g pn no p aa au m e
o r o
rymr
N n
po ntts e e e we c i m e r oit d oc m cm
um
O e l
I mrOddh d m r pn rs h o r o ,
c r e l i
t g o e a e c y y
T p nnc t ” a ull fp e t c h u c eas. pi sor n n
g a
P oe ee o o c y y y t o n c r c
M Ch ht ei
t
c hra
A y s hh rey
l rb
oo n g n n nhe
hsh ei
s c
w i a te
s
e s ar
n t n p
i
a
p
2.3-3 Small Company
E t xx h n e t t n a a att hn a an c d m m
X ntf
oso eew e a pks
a vtsn a i p p psod oo l
l b su p rnue d l
o
E
se g h p ul
- h oia e h d
l m m m abo l t l u por u e fio o o
r neryyn
a a
t m d
f o yhc
i nd ell t o o o oll ,h gfo py. ume v g m r h c c
e ec i o ift reu p a h c c c eds s ne an - on d a a a
a
Pv fim m u
r
) c p fiw umr h i d ar ni a n t o
t o
t

Provided
t s lwrr
a a a l e d h ta i o rd u o
eaf l oh rt op rr r
nrohhtc c d l
a ) ) a
) ) ) m sw oll nm
a
phe c uee h n n n

85
Ont yhi i ( m ( a t ca s t ch e s i
s i
s
h s 2 ( ( ( ( ) r cs i o gn eg i

ii

A
B
C
onw r s (re si e sr ion
fc a w fi n s a e e v ae t C t ht t ph t I
t I
t
I o “ I I I I

i
. i es h
t o , fi
s . . . . 5
. 6
.
5 t
c bu o n us 1
i 2 3 4
e olanu r hat
19
S Tc It Ts
20

2.3-4 Exemption to private limited companies from CARO, 2020

m0

▼
s
e o2
Y r0
f 2
t,
p
o O
de / N mR

▼
/ g nr ke e
C? n
i ao nm
r xA
Py d
l
?
. lr ai
bt d gr
edno
ee EC

-
On o o a
t c ? s u i p
0 na hC i
p 1e yf
no r ocl u rs
2 ap alc
i a. at at a l
c ninca
cs d
0
2 ym yb R mine s
i i
( t 0 r
, no nu pd t y n
O
R ac ap ue e oo l
rp a
d t
c o1e a s
t
A p8 pa dcehe f yci sA c y
s n
C mn mf i sn n a ei le

`
F oio o oo o
a
pexs o g aa o e h d d a m
O ct cy e nt u t e i
dec N dr N fs n
o
c N i n
w A fi
N
n o me c e
t
etocnt
Y es ua
T t eia epl or.e x a a

▼
I i / t
i d t l rc vII r
f e n s
L mny msi a ra r h eI fi
I
B ia
l ib gu b o1 t r ee) i l
a
A ep
l
u es e
r
b g
.
s n ll u s e
es dth lR a u nnt c
oha
C t t g a i
I
L a m a a gn n t r t
o de n
P vo
i vr
i aa o o
t
du
e t ev i
t gn
P
A
r
pl
c
l r
p.o ees
s eced schea
r rrn fi
hv e i
ea
hm eo t ra
e
hx
t e onSgeu
p h e
t hC ss sI Di no
t e i dt
ss s oe e
oF
I I Dr D s
e s
i
s Y e
0l

▼
s e 2b
s e Y 0a
Y 2c

▼ ▼ ▼
e ,li
Y O p
Rp
Aa
Para 2.3
C

 )
2 f o snt ooe dremr ,y,e d dn y
o d e t d h e a v n ni r t - l-
Para 2.3

see para

(
1 — y e i I t g a o e a a a ad a e r a n
po s

As of what date to be
r s I )
s r d e r y h : ; ste t e u i
r cna
aed a u u p I n e u s f o f
i y e h da
n fi
r i l ry eop j ota lt l
l n gla n s e e
a fii
d p i y o e ae
pis s r g n l
u i
t s ehpc i sw
i l n
a i u c my nr
rat b u[ na
i daa btmn
t ty n p w p m n i
tal i
i fn
i
t
e ste d t er o a e an o m oti e a
l fc
ds su da ea her t h xaha
n d o rs h a o
tn e
e

2.3-5 Not a holding Co. or a subsidiary of a public company

; cpe a e b r
ne a nd en]
c Soy
e
v t fiT p
.
n c rs
o t n
i a
n
h
t o
ur r at o aei s r m a c b d e e o fi .f )
r
sa o x g l r t
i h
see para 2.3-7

reckoned
see eut ninal hib e a f
i i
l l
o a t p g e
. a
0 e w n e i l yh eco b lh d ye ni
h ( e
i vsh s t i s n 0 a n i y
2
0 n o y
al n
r
e
g
n
i
t d u
n c
n
l
i
w
s
o atyd
o t 2 u t
p ors
e t
a
ote nt r
a g ue
rl
a a
s ei pn 0 sa tn
pe a a a th
2 e i e i
, b s c win s t a npmahi t 2 , h Ad Ai Dyc
O
md p e
r n o n n o s t , f s t w
R
a ol l
c o fi i i onr m O o u f

-
A oe
ct
m dl ra
r i s c .
e ] t
p tci
I oli R l
y p y
r o d
n n
C
a o; na oc i s
i .edfe r rta e o i
( o
t
h s i
dt c] ab bn[ ddt ] mss A t
see para 2.3-8
M heet a ue e tt
O es
t g le lar smg
a w eitlla
a l b C i
d sn a
s
c
x
u
t c
An
o
see para 2.3-5

R i s n a
t h a n a n o x o fia v
i i e e i
t
mn di t t fie e b l s do s )
y eoi
F i l su l r . m t o n e s
o p o r r e r r i par b n a : hn
S ii
l l
t o an t rl
eoa
uf u b o a dfv a o u am l r t
t
i
l t o
E
I ei h co i n e d f e n t re r
f s se u e
d o a o i
t
N t
a
d pas vkc eu syaoaoy f t a e h pn
i n i
c t
I a

Para 2.3-5
A n a ue a n n v n e n l n e s y p vt
r r t s n I r
P vo
i r - ha a ree r oia r
a ebn r o e s u u a I e
p
M r c e d r t b n v o [ i
t c r t e m d ys l
p n e
l o
O pg h i o o fi le rs i n e a o ov e y s e l a r fi u
C t[ a r n y a r c t d y n i
t e x n ece r u r dng
oin e
i y pc sne tg0n n a l y p e a rx a d s o ei
F t a o n a l h ee hu
O ew na
l o i
n f1
o
e
o
h
t t n1e
i .m n h
o
c fii e i
c h l m s
e
s
i
p de
m nt
l
c n d
n
k
n cn
N
O b l
l
sp
es
. dmg ’ sd s e i ontwx
t
er y o ao 0ko a a
b
St
nn
i
ao o y u R t f f
n rainea
I ym t R y t e i n 2c s i
T l
i f no a nrr i nl a l w n o a ln
c a 0e e y o
c
P a gd af a c d t b a fit i f p g t o 2r v ds
n e e
M ve ac
p ee u
ped pi n e s
l a ey
e u t
p o d
e n i d ,e
r
e ar sdi
E ah m c r e r ( e T c e B y r m i p O s o o
st o e mtca
m o l n m t d a e m l
X
i i
l g c
gx; ocr o c x i
c e n
a a o .
0 e i
l e o
c l ce)
u . Rb r o r
rC i
c
s
m
s
ae] c d o
E b m i i d d o

Monetary threshold
cAen h i 2xb i Al e
all

n cu i l c d h pn( f 1 d r
oif ep et eet eeta o t p n n 0 e a s e Cu n ss se f r

2.3-6
uv

v
i n e a - ) a g o
i
t ha ho hnf hhon s mad2ei l o t 2 fho l nR auc r
p y t
l t n t o o t t n fi l n , h a c i t d e1( o a i e n0
a o e O t v m o i r )s t d
mn c fil
l a e i
l n a a
l v s
i
p w
oe
a e r
ue
e n v.1
eo e a fiR n e b s pta r ( d c ees
a.

b.

c.

d.
x) hnu l A e e i ) cr r
ox vrR

See
hthto t s
t I
t oPa 2 l o
E( [ TofCt a I t ( o pr
uC be egd
r
v
v 1 h - l o l n
i e
i
r ) ) aes d
i a
1 t
.
t a
t o
t d e
c
( ( r ux



p r a s oo
PR Tn Tl

i
ii
a h ce
21
A Pt
 eyrsa n s ricis6e hesty : 
r n
hnor d o e e l 1 h cheub x x x x x x i
22

but it properly denotes a state or condition

2.3-6 Paid up capital plus reserves and surplus should not exceed `

t a f i m ’ hb h 0 t utdbs e x x x x x x d
o ,

Rs.
e o s tuT2 d x x
ept u i
t n sol u , e
existent at the time when the conclusion of law or fact has to be ascertained.

t a wy l e e p . , o st y e n d
a md n c
n m h e O a c n r u u
dot ea o o waa t d ”ti na a s l
c
tcc hp
e c s Rn l n p h a n
a eTm e s ffd e
o o A a eom
l s d i
hli hr. h a tCp t
i a s
l h e e
wbsa o t h s .e
o e p va oc t b
u c n ,
e uC end ai cu a o
fp eeg
l e t t hod cudes l
u t
o a
c c n
h u
l a
t gst el pqnhf c t
sf n
aal
l i
d
w
e o
s s nc
i
eou ueato
-
l
a
o
n
a o l l b ed N o d sdft
i c
a o : im n e o c s
yyb
f r
th
a s
a t : a
r e
hl
t o a w
l e ,
i
a su es e
b
i
t
i
r a
i etr ” he e
d iv thacOe . pases
“ s r
p n
e
a h o o g t a b n t pi e d
0 l d t n n a
t n la ha aRa mue a r l m
i -shn
2 c t u b A u
0 s f sry i
e t r e d d rd s o
t
o
2 tb
o o i a b e
t
n s a not hi Ct e r i h l
l
, u r i “ a e ayf u f e t i
a a f s a
O ns s a d t ” th er Go e ep h o d l
R
A sorae i
s s i
e
s g mao’ s ysh hs s t e
v a g
n
C e eyb n ex n of i s I t t fci t
i ) i
F oyb lu fi n i
e t did a Ali e saoec p e p ( d
n

v
O dn dca
i s e o b a l s Cin
b c e dtse a )
2 e
0al d ii
t “ h
t u b d I a ne c e r c ( p
Y
T 2puna n de ” s to o u e
nhe c a
l
fit
ei
er
p t p l
1
a d
I 0moa
2ohn o on d e ;
” wsi i
l a ded s nn u a r e
L n rn at e i t v.
not being

I
,c s fi c c n a ” a t p b tr r u L d i a
p i l
B i i fi l e fpe po A i p e a
A O gite x rta e ie gsro
m b n i e ah c
Acnum T a a f ci
ept
C
I Rn rth e oe r d i i ysc 2et yida
I
P p c o r
L Adie L te c sg e 1 h t ee pi A e e
r s yc
a
P
Col h g a s ein bna
“ t a hn
t uar C h l a e
t s e
w st a s a at t a n np
fo pe
P

Stroud’s Judicial Dictionary

t n“ nv per h o
A fh e i a a e a f a s d h P t
i s u p ou
o ahur
r e L s b eh o mbP a ha o mi st U p o r d

As per the Guidance Note,

s . e mi
)g Wda d teo a,“
s oto t y 2 aao
f p d -
D
a c
c n
c u
c p a
v
( e os t nas nc ydn no dyl e I e e a e np
n ) a s e of
debep
) i . e c na i o ot nal A r r d t
h i
2 e d m(v n eh d d i
t v fi i
t a t
i ac P a e s
r e t o
( e
b fi ) .
” a yd ee i ea d i m c n ded F f
h e a t r a
cn
1 t i2
t y v l t
c s
ult
a n t
i hcear eue ee O s r e i
e o i
l o
ao s
i f (
1 n d er a ss fim rlc o s o vrdm y p
t
r
r f
r f p i
t
r ei l c u l
a nat o apa A p f a n d l l
i oce fme i l N i
u p a o a pa
aut
Pfstrm
r ,a f s o tc a O q u n f p
t
o n a s r
’
oo ”
g r
t etewi n i h )ae c n n n I e d i s
e
i ep
yet t
,n eoi r pw nn if er u i T e s a r
r Po a i va t o t r A p l l r c a m
obp l

64
tla e a
e c y …i e
Be
o vnrno (a t o v T u l
a a h p ho
vti d nc i gnmn
Para 2.3

i f e b i a s e ee U d C C S u Sc
ei y i arp i s e

1 crore
l i A “o “b
‘ s uast P e
wdo u ndl p r u ugr l d

Notes :
b . e mwh e t oye a M l i

Less:
n ae

Add:

Add:

1.
R e ag a a
oo
Hc htsu . hh oie
ws
a
t l mn oh O C P
saup P Tt cv C aaadw C
 d e
v
gd r
e e aesee
r d f
i khe
e nn b bu e x x x x
Para 2.3

-
t . r i a d gv lg t x x x x I ct
i s I

`
l e n l
l er l a x ef
d
ei
a
t : s
e
os
l e u a nse a
h fi l x
x I r i
r p r
e r c
s r n
h
s ae sg u e
l en
c
lca . d h i
d
a
h w s sR,iy n c
l u be
a l c s t a “ n t a d v
t
i p a
t n a ss o
h n nofa l
u c e oe
p
adu i
p u e s
onu s e wei fes e h t ’
ci a s f Lo e m oc ,r b le c es
c a o t h s ea S vlu
ga b s snuh e dt e

-
np p t e db e a l d
l ir ap
i
d e u c s
o
n,
and
o
t v eal p t u ,pr
s a
f r
e hr
A n bb r f
i e c e ) u
0 l
uth d
i p
r te t
e i les un o ve,he p ds
l
2
0 c g a e u fid e d l
a hfv e h r tv s u
2 nn
i p h p ovi h e ht oe s e
s
v
r e r a ond
, s i g t ri s k
r sy,e s e e h e
O a t
u n o d Pd e a srl ” u r s w s
e e .
’ wa
R ”p i
t t : n fs c s cs
nlu l ne,r v
i s
e ts
A l
a u I s ; a
t o a n m oaa
l p r
olee
s t e e
C t m p I
I a n e ;
) th a r l il p r i a v u a v ev
i
p o m d r
u u f n c l
a a
e dm ar u t
a t
ier n ger hr
M ac o e e ; o t o eu b ni bu s zap e e s sse
O cn c l
u fi e
v c a e
r ms. y aS eS d i
l s v ne
R pi i c ne sc; t
s b t.”ivd n a cee r ee
F u d n S
i d s
s ;
e
r
e A h en
t t a d fis t n a u,rrl e‘ cr
e e a v s e t a oe l ou a a qml r be nd
S
E
dd
i d U h l
c r e g h
n t t t
S i
ts, e e
t rl
ppe gs s euao h an
I a u e L
d P c e
s
R i c
e a
i e c
n n fur nve e dmi e nt l
a
p l e e v as a

i.e.,
N “ c S e n d yp nr v i o ne v
A sin u R
l b
R o ; a f
n i s i per s ;
) s
e S g r
e r er (r ) c d bl
P e c U y l
l i e ce eos sds r t“ ns e dp e e
s ( se rta
n S b a n ; p
t t er cre n i e s i ve y )

2 v
M ne i m v s p na p ead t e v s r y u e e i
O fib d h o u r
m e t sin npr oe e me
s R r i e e r n n l
( p c pp
C ell e D s ; ti i u ( apm i
t r u
j “ d i s l a a 1 x a
d a b N e s s p
e m e s
e O snt l
a a c h y ehd
t d t ,r
t
i e a
t f f a re sc
F th t A n u v d e do ud l l e a a a s r i i u a

,
c l m e e R s v bn a e u i r
o cnp c ’
O fi u . , ,
N Ass n S e p r
r e e r R n i
n ro
o e ,a
.
r
f de a ”
e fi c d
t
s hre
t e h .
h
t ve o a c a
p
ss ep
r u
e d E d u s d P e o t / d i fin frf t e r i c / / dlu
O hre
S e e s r i sm so c i o e ev r e s t r a a f n ude .

i.e
I l V R R e t p ea nt de e c u a h i a s , a L L o a p gi
t u s ed ta e e
B. Reserves and Surplus
T fha
o R i d l l ii u a O Re ,or
s i np p f
“ , t e e
r vluh s r r
fia u
P o h E ’ a t t
a r t
n u e h ut e as s cns ” r l r a t & & e u p
M s s n t l rt l a f a nuu e g c le e P s ss s‘ g
)s s S u a i i u e a r e p cns se s ael d e a sevh P o e ‘ fi
E u e E l s ap p b v a
c e hd ro nh ea
t l r pnn s
i r
e e r f f p vf ug
l
64

X (n
2 c
n R p e a e e h t
v C C S D R S Oa
n ullra of v
r d
a
buruh e t nr,w o o r ro p n e
E
nbo
a F r r Sa t i
t
i o e e g
t fi
u
Swn t i ened e e u ee
o v c s rti v
i
o, v u e ) ) ) ) ) ) ) ) d h s
e m i ,
e gi r n n c p
e c ua t
i
t p d O s s
e ( ( ( ( ( ( ( dc r r b
evedoi n
v ept e a a n
a e r n sul a
d ( Aa nhs km s t a
l h g

a
b
c
d
e
f
g

h
c u a N R (e At e Dtia si o i e o l
a t fla dc
ed
s n O n b: l e r n b b r o nal e
eai i I a ) ) ) as sd
e nr i o ea
t t f ac n
cp s T s ( e o o i b a
l
l A ( ew vr i d b s re s s

ii

iii
ns
i a T e ( ho r ept s e e e u e r
S C U v t e e r v giv oi
a r l s r
u mv C D r vf
r e
P e mol e
r t eer e fia
t e dr
M s n ds s eg s

Less:
of le eu

Add:
e
2.

3.
O e rs l ee R he e ng
R Fa A b r r Tn Ro fi
C ‘
23

 sfs s a r g s e se deLfednd 8
uoe r o r n e h e h nr ihean 1
24

A Private Limited Company reports the following position as on 31st

2.3-7 Total borrowings not exceeding ` 1 crore from any bank or Fi-
l a f e
t i v t vt au&etnha
p el P e n r . r t g P r , o t a
rrs d dmi e nld e a s fi u e l r
uui f
o e
r s
e
i o s
e e ’ n
i g r k
c
s
s a
t a
sgh s P
d fii
c s e
d
er
l
i e r dh
es r a vs
r uce fio e l
f r
e i
p [
neh e
s i h t g s e e e l ere sca .
’
s e n or s p nive ei s

plus
at w o w d i l r e rat g
sas
g p n
o d f
t
u c
s
h
t o
r r ula
a hbepm n
e eh r c e o p i lc
a dsb g T d
l u i
vr
r k u r d e t ndt e . u a w
e ga p e e e
s m h i 0 ani n s o s d
i o
s gl e b do o st p 0 b e e a r
e a 0 h d i p c a g a.
c1 lae
a av wh p r
r t l s r r sin t sderst ‘ o
dhe8. r u nu o ut p i e b e
s u s f b
y o . o f l a us p v g l A o

`
nt l f oe cp p arnnep . f
p d u arrs
`

0 a,ep ” h r d rl ded cse i

t . s ’
a o
2 seba s su ee e
t ua i
a e c c f u m i s
0 e s d u sg bi t t sv et. pr u osa c rer e
a pc
r fi e u‘ deedlei
2 l t l e i c.
, ocu o p : rv” s om n de exo , r t n]
O rso n rr s ll i e nn het dI
i
I eu r
u n5tr
9 a16
R c i
h w d ue e u ae b ai t yy a I d g a n
i c l

Is CARO 2020 applicable to the company ?

A
0t l sd sl dh l sed fn
i l ple r fig s e a 0
C
2n s u dn ep l l , p ‘ e fie . yr b2

`
F . uo nu rr ut a e r 0 ap futg vi e l o
O 1 Ipl u r h ve 2pa d f n e . p g,
w as es o o s r d 0ml o e a i hrs pr nO
Y
ss.r0 sa ud hfr
n s . s e
s i
s 2ol ehnu t
l t e
s cac i
d R
`

T
I i hsu 2 e s e n y,es e s
o e n ,c i t
a c w s s e at1 nA

` 60 lacs
` 30 lacs
` 20 lacs
P&L A/c [Dr. Balance] ` 15 lacs
L l ve r w drlo
I a k 0 r v
fi e a nvr d l o O gSoee 5 n aC

nancial Institution [para 1(2)(iv)]

d2 d0 hre d n t

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Paid up capital
fule mi pa t Rs

Capital reserve
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March, 2020 :
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Para 2.3

s g) run c t egl rv
ngu osa
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Rp h

v
rni r cdl r t g 6 e t t


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‘

 nr t m ns, r -edro
t d d yddd c tsno ft.
i i t o r t et
e w ndr e Bills purchased or discounted are shown as a l e nve un g n
Para 2.3

contingent liability but even then it should be considered loan out-

 The term ‘borrowings’ includes devolved non-fund based facilities

-
tpu u r edi f ola r h e o e n t al a t uno e
o e uet ur e oer c i c s
p
ee “ t
- r
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e
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a
r
r fc
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eeryrs
a
t
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i
s bit u s e f
o cc
 The term ‘borrowings’ includes all fund-based facilities - wn i n ” choa l
de
l
f m e t
u c n
o dso rng r
u t ,e
t
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nd
i I
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A ps n u
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a
O ww n i i e s i oc nl ,ed aa ay hb

standing for the purpose of para 1(2)(v).

R o a l o nn r w er uc r w l oo e r og f yyt
F or
l s a aa o o hocne dis cvp l e e l tpl t
i a e
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e e
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d
rfs “s o lb bi i ti eo I c eca

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ode
cns


cio
25 Amp
 ly
l ye mil
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a s— ,
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b s
i n bb t de oeB i e s bik e n bu e e ni
26

-
wa oc ner i l c i : i e7 hei nni as
dld rn a t u R r
r y
l w dl r 9 t tsno a
sp eu f ved
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t
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so
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2
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o Er i st lul o B as co e n ;
s
T
I t.r si ng e i l
a f o nan t ni wit oh g) s usy eni,ss,n i n
L c d o d n i
l t d dit i i R as t
s t y( a s san s
ooi t too t o

c
si s F t eu u s
pmnf
I p ee ms yn ne l r a isn i
B ee b re
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s as c o e
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t
a
A pr c ula al uc ai ein h s h e l fu y gu r r
o u,fres r
C se
e s d l s l vl t t
i
rt
e r a o a pdoope e
di a

2.3-7b Financial Institution -

I tg u eia c s i f r c l n ink ,
e e o p

c financial institution”
L r i s i c nnn k d s a o
f he
t ho gc a t t l
yll eesto d]; o
P
nns t
i d nal r
onc i u i
a uci o
t e h sl nn f crt o a naaz,ts s l
P
i s e i c ra l,b a s l n I r ht fr
o o
i
r i o u sS acsiyue a
o r - yrabn
A c
sc o c d c l
i d e a 5 a wo e d di
n n t e p r
e p n e n wleteor nn
i 4— p ,ty nnt vn
i
e o
ohn y rmb gw, [ i u
t
uee et ail .
1 fie r g i oe
i l c oa rnrn s l
dbd ts a h s ’u
k a f n fi nr: o ni
i v t
i m
e fi
de i
g c
n g
,ofa f
,ns o i e o u u
c
r t w di ndi va ar oe s c t s
i rd y n g r d
r hsl
r
b i
god o fn- w e i s nc n n,e i t r

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ntx e u o an aerh e nh t d e aa u r; os r i y
t nena
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d Bhpt
poe i c n n qe e a r g i c t p p a
i
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ny cv r gt a aac r c e
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i
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v fi o k e i k ‘ s mg c Ss u fin ao u nn
i c n o ea p
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na t cnd mn i
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t e e a p f l
lh rndah i (
ah s e fa an o c tpr

a
ho han h mc
u en
no
n eas
e

2.3-7a Bank -
t i ia
l t vfrt o ”
“s t t l m t i cws ai
s
t oi ce b
n ebs i
t i
t spu ha. )n
)it
) ) ) ) ) )
u sa nh
l g i o hlln a n t d
n3
4 (to
i
(s
I
- a ( ( ( (
r fa

ii

iii

iv
v

vi
c
Oa a S tc Ta am 5 ( (
Para 2.3

i e o o o 9 eu 4on
pl )k, 1 s t “
oatc nt uti



- r as

39
o hfo (bac l n
ct 2 A C i
 ,ey
r s2 ” e o ”
y lr
a ey a ton l ge
l
o e hrt nn n v s o hb u r n to a d h
n
Para 2.3

-
r i l n pt t
p vte ao o
i t a i t d i a et i
t heit
e e p
m ei t a
r a
p
c
ne
n sn t
s P m fiu . shue r
h wo o
r mct u e ) i a a n nki t0 yci n
t or p t
i p (
I m r
pe
m ,
s t i rns
it0 2 nSt p

See
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f

r odl e ”s
y t
s
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o
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e
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t
i r
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a i
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c

u
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0
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n o n
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t
e uc9 c n
i dch
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l un
t vi a o ” k r fe hi is
O
R r ots s df1
not n ,
y y n
ns
ayn e o C ep
h t l
tbo e e n fi
t u e
A e mn
io
r
i , “ n n a yn se
s t m su up a vhe
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t me s “ )c s a a b — ; naa
n a h” ,
; o6] r t pr vene t
o ih n , A e p p - s y arm l t y )c e i
t u i rg
e n c ff r v
xviii

M ( f m (l1 ws dp
n n n pe

2.3-8 Total revenue not exceeding ` 10 crore

o tio s m o i ) pegn
fi c

f
O s fct u(d a
i o
o o a a mdy rl e Ia0 onee r i
R d eo
l e c n e p onn oa p (i2 pii fi al nr
ao c nvs 5c, i
F o a u d “ m m cua r h
o s er l
c tIn a l s o oo, 4nO me t t ta d u
S g r s t 4 a a,n a ehn o a t u d
E
I y omn
o s)f 3 s
n i ”
n
e ” c
y s
i
s
t
i
i i
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e
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N nr nc i (o 9 a c n n a h s g u pet o fiA ,o
t o t t c r
on o h 1 no e fi a s c oin t az i
t c hf sin
i

A ao c e i st o
P f; i
t is, t s
e k t m ai d
t p i ipd
h hen
t
s sa cgC Ahcn ’ e i( r
M r o s c ee fs
o n c ntu m c wde nuG enn
ol si ecui o d y 3 c
a huSt
ece uh s uB A ’
’ fii 4 o i i i l
O o l rt a n t c h nfr l i a k o s v 1n
C ; a
y
i
v t
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e lt I o gs 3 l w ooo
gv
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ent u on0t e
F t s r noc s s c B i
t nin 9
1 a i
t g i c
r fi nao t ft o i ro2s
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N i
t co
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a t n o tin
a i i v e ahe O i - 2etn
z u s 02ce
20Ae
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O s n fe o s A bt e i natI
02 p
a s r usp ac n tu e oce i
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p b I a
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T l h pno - i n fi i
t i e n i a
P a
i
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M r o i e 4 n n R n in n i a i c n g
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E s
u pin unn t t v n i
k n“ e
i
k k
l n he e e d s c l n a n s
X
d ei
pta
ea
o e
fiD o n “ h n ia t h
t
e y o
hai vvu
a
f fii a RAp i
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h fi ri i a t a c aso t t
o o f c n AC e n
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n t b t b m a nF
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a n
e
nn
o c b c s )Oa ‘ m o cm
) ) ) pri e n e n i hki fi a ’ ena foCx
S o nt ) o n ou s a cnt o I e

72
st n fi n b uao el s ( h fi o

Explanation.—
( A r ea t
( ( n. oe (
aa
b

c
yus f ‘
‘ i I “ a a i n sBn ha nt e )fh e )t

f
t o )
y t
i h 5- — ) t C oncb v tt s
i d )r-
: )t
n t : ( ) ) ) flleI i i i
l (
) p nls
v (ie
fio 4 er I o a t ybs o
( mooi

f
i n - 2

e
t (e I ( c a
hh

i
ii

iii
I - c et o ( f ( t i

e
c ed 5 o n d 5
w st ei u l 1 e t
ahe s n 4s ds i
r n
4
“ e” f s t
o pa xII a c
n
uu tu i o - aal
l ae Ier
yt as ee c
f v n b n r ep a
nf l he es nto9
i uoeh a el n
27
ao C a Tr Sa I 1 St bs Pbu o fi
 d ) * m
* e f
o *
*
e … d
28

The General instructions for preparation of statement of profit and loss

o ;
end of current end of the previous

s … r u
l y )
Figures as at the

reporting period

o f c a y
l
c … e n w n
a .
y
s u i y p t
i … x x x n l u
d x x x l
a b m d
n x x x e
4

e i v h y
l o e
s
b s e s e c i
c
e r s t e x
o e y n a
r c e
t p n— o a n d
s
a
u a i
t p a
n e
R pm a e c
h ( mro r s fi a
l
Profit and loss statement for the year ended ………………………

Note Figures as at the

reporting period

’
e of e
p d a p
e
u ce o e
s n r
STATEMENT OF PROFIT AND LOSS

n x x x enu o a s
a
e x x x ce m l
c h
t h
3

0 v x x x nv o s
i r T
2 e ae r
f d e S
0
2 r nr e h G
l fis e b t
, a e u o s
O t at n l
l y a
R
A o
t no e a n ;
s
7
1
C ‘ an v h.
se a t 0
, e p
1  2
No.

I he
* t r sbl * n 2
I e

F * h * m ,
I da y
PART II

O rt ,
y ac o m l
Y e
l e
hi
n n eli c t
s
u
J
T
I u :
r t y a
p
hp : a e e
Name of the Company…………………….

L de o l ; ep s f v c

in Schedule III provide as under :

I ed e
t s m va a o n n
i
B ya e . ot d e i s
A hn nr u o
c s bn e s f )
C cu aa
pp n e
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I
L Ss ms
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P fa e v c v he s n ; sa G
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t l co c s
s
e
c a I o i o r r y n n as l n o c
pc r I
tld r e e t
u f a a et a
h In I l
/
i
v
ma
e
p
+ c l p s p o — n
; fi r n s t d n r
d e

Particulars
I ea f o t s n a

4. Other income
oss o ( ph f o e ct s e u e e e i S
e ss o r m e r nd o
ro
f
m e
u e e e
e l : s
i e
pro r
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e
d
i g d
n
l o m n r s l a h c h ua c o t v t

r o s t e a

Less
nd f e
non a t
S S O
x
E ee
f n t
O eo c n i
D N s
en v
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n i l )at ) ) ) ) n n u ) ) enst r ) ) ) o
o
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v e t ( ( ( ( ( v t h ( ( (

2. A
*

a
b
c

a
b

a
b
c
e h o *
b fi ) r
Para 2.3

t p e Reo t w
no R O T o ( n O o

B
1.

3.
ar . I
. I
. N
cp I I I
I 1
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ti
I n

 h .f
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c r o
Para 2.3

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s vs
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29-31 o
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