CARO, 2016

(I) Applicability
-
-
-
-

Except (Not applicable to)

-
-
-
-
-

Matters to be include in Auditor`s Report (not applicable to consolidiated Financial Statement)

(II) Check Points
(i)
(ii)

(iii)
(iv)

-
-

(v)

-
-

(vi)
(vii)

(viii)
(ix)

(x)
 (xi)

(xii)

(xiii)
(xiv)

(xv)
(xvi)
 CARO, 2016
(I) Applicability
Every Company
Foreign Co.
Pvt. Ltd. co. (Subsidiary or Holding of Public Co. )
Pvt. Ltd. co. having
- (paid up cap. + res. & surplus) > 1 cr as on balance sheet date
+
- (Total Borrowing from bank or FI) > 1cr at any point of time during the FY
+
- (Revenue disclosed in Sch. III) > 10 cr during the FY

Except (Not applicable to)

Banking co.
Insurance co.
Section-8 co.
One person co.
small co.

Matters to be include in Auditor`s Report (not applicable to consolidiated Financial Statement)

(II) Check Points
Fixed Asset
(a) Maintenance of proper records for Fixed Asset
(full particulars, Quantitative details, situation of FA)
(b) Physical verification by mgt. => Discrepencies noticed => resolved in FS.
(c) Title deeds in the name of co.
Inventory
Physical verification by mgt. => Discrepencies noticed => resolved in FS.

Loan given by Company

- granted to companies, firms, LLP or other parties covered in the register u/s 189 of Co. Act, 2013
(a) Terms & Conditions are in the co.`s Interest.

(b) Schedule of repayment of principal & interest exist & regular.

(c) if amount is overdue > 90 days => steps been taken for recovery
Loan to director and investment by the company
- in compliance with the provision of sec. 185, 186 of co`s act, 2013

Section 185 prohibits limit for loan,advances given to related parties.

Section 186 stipulates limits on loan, investments, guarantee, securities.

Acceptance of deposits
- Directives of RBI, Provisions of section 73, 74 of Co. act are in the compliance.
(if not, nature of contavention been disclosed)

- Section-73 stipulates prohibition on acceptence of deposits.

- Section-74 stipulates provisions for acceptance of deposits from public.

Maintenance of costing records us 148 of the act.

- Accounts and records have been made or maintained.

> PF
> ESI
 > PF
> ESI
> sales tax
> service tax
Stautory dues > custom duty
> excise duty
(a) regular in payment of Statutory dues including
> VAT & cess
`

if not > Income Tax

- To be indicated Arrears of o/s statutory dues on the last day of FY

for period of more than 6 months from the date they became payable

(b) where dues are not paid on account of dispute.

Mere Representation to concerned
department will not be treated as Dispute.
to be mentioned

Forum where Dispute

Amount is pending

Financial Institution
Repayment of loans/borrowings
Banks
- if co. has committed DEFAULT IN REPAYMENT to
Government

if yes Debentureholders

- To be indicated Amount of Defualt.

Period of Default.
Lender-wise details required.
 Initial Public offer (IPO)
Utilisation of IPO and FPO
Further public offer (FPO)
- Money raised through
Any Debt Instrument like Bonds, Debentures

if not applied for the purpose Term Loans

Information to be reported Details of money, so raised.

Delays or Default.
Subsequent rectification.

Reporting of Fraud
Fraud

by company, on company, by its

or officers or employees
whether has been noticed if yes to be disclosed

Nature Amount

Managerial Remuneration
- are in compliance with the provision of section 197 and Schedule V of the act.
section 197 dealt with Maximum Mangerial
Remuneration.
If not complied

to be disclosed amount involved.

steps taken by co. for securing refund.

Nidhi Company
- has complied with Net owned funds : deposits 1:20

` to meet out the liability

- maintaining 10 % unencumbered term deposits as per Nidhi Rules, 2014

Related Parties Transactions

 - Transaction are in compliance with Section 177 and 188 of the act.
- Details have been disclosed in FS as per aplicable AS
section 177 dealt with Audit Committee.

Section 188 dealt with Related Party

transactions.

Prefential allotment
Private Placement of Prefential Issues

Private placement
- CO. has made Allotment through
fully or partly convertible debenture

- whether Section 42 of the act has been Complied

- Amount raised has been used for the purpose intended
If not complied
Section 42 dealt with private placement.
which stipulates that compnay making private
placement can not offer its securities through
any public advertisement.

Information to be reported Amount involved.

Nature of non-compliance.

Non-cash transaction
- whether the company has been entered into non-cash transaction
with Directors
or Persons connected with Directors.

- whether provisions of section 192 of the act have been complied with.
Section-192 stipulates that no compnay shall enter  into an
arrangement by which Director or person connected with him
(Director) acquires or is to acquire assets for consideration other than
cash, from the company; or the company acquires or is to acquire
assets for consideration other than cash from such director or from
person connected with director unless prior approval has been
obtained in general meeting.
Registration under section 45-IA of RBI Act, 1934.
whether co. is required to be registered us 45-IA of RBI act, 1934.
If yes
Whether the registration has been obtained
Section 45 -IA of RBI act, 1934 dealt with NBFC`s
registration. which stipulates that it is mandatory
for a company to obtain Certificate of Registration
(CoR) from Reserve Bank of India (RBI) before
commencing or to carry on business of a non-
banking financial institution.
 CARO, 2020
Applicability (Same as CAR0, 2016)
-
-
-
-

Except (Not applicable to)

-
-
-
-
-

Matters to be include in Auditor`s Report (not applicable to consolidiated Financial Statement except cl
Check Points
(i)
(ii)
(a)

(b)

(iii)

(a)
(b)

(c)

(d)

(e)

Not applicable to companies whose

principal business is to give loans

(iv)

-
-

(v)

-
-

(vi)
(vii)

(viii)

(ix)
(a)
(b)

(c)

(d)

(e)

(f)
(x)
(a)

(b)

(xi)

(a)
 (b)

(c)

(xii)
(a)

(b)

(c)

(xiii)
(xiv)
(a)

(b)

(xv)
(xvi)
(a)

(b)

(c)

(d)

(xvii)
(xviii)

(xix)

(xx)

(a)
 (b)

(xxi)
 CARO, 2020
Applicability (Same as CAR0, 2016)
Every Company
Foreign Co.
Pvt. Ltd. co. (Subsidiary or Holding of Public Co. )
Pvt. Ltd. co. having
- (paid up cap. + res. & surplus) > 1 cr as on balance sheet date
+
- (Total Borrowing from bank or FI) > 1cr at any point of time during the FY
+
- (Revenue disclosed in Sch. III) > 10 cr during the FY

Except (Not applicable to)

Banking co.
Insurance co.
Section-8 co.
One person co.
small co.

Matters to be include in Auditor`s Report (not applicable to consolidiated Financial Statement except cluse xxi)
Check Points
Details of tangible and intangible assets
(a) (A) Maintenance of proper records for PPE
(full particulars, Quantitative details, situation of FA)
(B) Maintenance of Proper records for Intangible assets
(full particulars)

(b) Physical verification of PPE by mgt. => Discrepencies noticed => resolved in FS.

(c) Title deeds of Immovable properties in the name of co.

other than properties where
the company is the lessee
if not

Provide Details in the following format:

Description of Gross Held in Whether promoter, Period held – Reason for not
property carrying name of director or their relative indicate range, being held in name
value or employee where of company*
appropriate
*also indicate if in
dispute
 (d) Revaluation of if revaluation done by Registered Valuer

Specify
PPE Right of Intangible
use assets Assets if change > 10% in
amount of change the aggregate of the
net carrying value

of each class of PPE

or Intangible Asset.

(e) Proceeding been initiated/pending

against the company for holding any Benami property if yes

whether disclosed in FS.

Details of inventory and working capital.

- Physical verification by mgt. => Discrepencies noticed => resolved in FS.

- whether Coverage & procedure for Verification by mgt. is appropriate

- whether Discrepencies > 10 % in aggregate for each class of inventory were noticed.

whether disclosed in FS.

Whether working limit sanctioned > 5 cr at any point of time during the year.

From Bank or Financial on security of

Institution Current asset whether disclosed in FS.

Investments, Guarantee or Security, Loans or Advances (Secured or Unsecured) - given

- granted to companies, firms, LLP or other parties covered in the register u/s 189 of Co. Act, 2013
whether co. provided loans/advances/ guarantee/security.

Not applicable to companies

whose principal business is to
give loans
if yes

Indicate Aggregate amount during the year

+
 Balance Outstanding at the BS date

(A) with respect to such loans or advances and guarantees or security to subsidiaries, joint ventures and associates
(B) with respect to such loans or advances and guarantees or security to Other Parties.

Terms & Conditions Not prejudicial to company`s interest.

Schedule of repayment of principal & payment of interest Whether Stipulated.

Whether Repayments or reciepts are regular

if Amount is overdue, state Amount Overdue > 90 days

whether Reasonable steps taken by company for recovery

whether any loan or advance granted which has fallen due during the year ● Renewed, or
● Extended, or
● Fresh loan granted
● to settle overdues of existi
Not applicable to companies whose
principal business is to give loans if yes, Specify

Aggregate amount and

Percentage (%) of such dues
renewed or extended or settled
by fresh loans

Loans, investments, guarantees, securities. - given to Directors

- in compliance with the provision of sec. 185, 186 of co`s act, 2013

Section 185 prohibits limit for loan,advances given to related parties.

Section 186 stipulates limits on loan, investments, guarantee, securities.

Compliance in respect of deposits accepted

- Directives of RBI, Provisions of section 73, 74 of Co. act are in the compliance.
(if not, nature of contavention been disclosed)

- Section-73 stipulates prohibition on acceptence of deposits.

- Section-74 stipulates provisions for acceptance of deposits from public.

Maintenance of costing records us 148 of the act.

- Accounts and records have been made or maintained.

> PF
> ESI
 > PF
> ESI
> sales tax
> service tax
Deposit of Statutory Liabilities. > custom duty
> excise duty
(a) regular in payment of Statutory dues including
> VAT & cess
`

if not > Income Tax

- To be indicated Arrears of o/s statutory dues on the last day of FY

for period of more than 6 months from the date they became payable

(b) where dues are not paid on account of dispute.

Mere Representation to concerned
department will not be treated as Dispute.
to be mentioned

Forum where Dispute

Amount is pending

Unrecorded Income (New Clause Added)

Whether any transaction not recorded in books have been surrendered or disclosed as Income during the year

whether the previously unrecorded

income has been properly recorded in if yes, in tax assessments under the Income
the books of account during the year

Default in repayment of borrowings.

- if co. has committed DEFAULT IN REPAYMENT to Any Lender

if yes

- To be indicated Amount of Defualt.

Period of Default
to be reported as per the format below :

Nature of Name of lender* Amount Whether No. of Remarks

borrowing, not paid principal days delay , if any
including on due or interest or unpaid
debt date
securities
 Nature of Name of lender* Amount Whether No. of Remarks
borrowing, not paid principal days delay , if any
including on due or interest or unpaid
debt date
securities
*lender wise details to be provided in
case of defaults to banks, financial
institutions and Government.

- whether company is a declared wilful defaulter by Any Bank, or

Financial Institution, or
Other Lender.

Whether term loans Applied for the purpose for which the loans were obtained
Amount of loan so
diverted, and
If not, then Report

Purpose for which

it is used

Whether Short term Funds Raised Applied for the Long term Purposes

Nature
if yes, then Indicate

Amoun
t

Any Entity, or
Whether company has taken any funds from
Any Person

To meet the obligation of its Nature of Transaction

subsidiaries, associates or if yes, then Indicate
joint ventures
Amount

Subsidiaries
Whether company has Raised Loans on the pledge of securities held in its Joint Ventures

Associate Co.`s

If yes, Then Report

 Details Whether co. has
thereof defaulted in
repayment of such
loan

Initial Public offer (IPO)

Funds raised & Utilisation
Further public offer (FPO)
- Money raised through
Any Debt Instrument like Bonds, Debentures

if not applied for the purpose Term Loans

Information to be reported Details of money, so raised.

Delays or Default.
Subsequent rectification.

Prefential allotment
Allotment of shares
Private placement
- CO. has made Allotment through
fully or partly convertible debenture

- whether Section 42 & Section 62 of the act has been Complied

- Amount raised has been used for the purpose intended Section 42 dealt with private placement. which stipu
that compnay making private placement can not offe
securities through any public advertisement.
If not complied Section 62 Stipulates taht if the Company decides to
fresh shares, these should be offered to existing
shareholders in proportion to existing persons who a
holders of equity shares.
Information to be reported Amount involved.
Nature of non-compliance.

Fraud and whistle-blower complaints

Fraud

by company, on company, by its

or officers or employees
whether has been noticed if yes to be disclosed

Nature Amount

whether report us 143(12) of Co.`s Act filed by the auditor in Form ADT -4 with CG.

Prescribed under rule 13 of

Companies (Audit & Auditors)
Rules, 2014.

whether the auditor Considered Whistle-blower complaints, If any.

Omitted

Compliance by a Nidhi
- has complied with Net owned funds : deposits 1:20

` to meet out the liability

- maintaining 10 % unencumbered term deposits as per Nidhi Rules, 2014

Payment of Interest on deposits, or

if there is any default in
Repayments

If yes Provide Details.

Compliance on transactions with related parties.

 - Transaction are in compliance with Section 177 and 188 of the act.
- Details have been disclosed in FS as per aplicable AS
section 177 dealt with Audit Committee.

Section 188 dealt with Related Party

transactions.

Moved to Clause
X(b) in CARO,2020

Internal Audit System (New Clause) Size

whther the company has Internal Audit System in proportion of its
nature of its
business

whether Report of IA considered by Statutory Auditor.

Non-cash transaction with Directors

- whether the company has been entered into non-cash transaction
with Directors
or Persons connected with Directors.

- whether provisions of section 192 of the act have been complied with.
Section-192 stipulates that no compnay shall enter  into an
arrangement by which Director or person connected with him
(Director) acquires or is to acquire assets for consideration other than
cash, from the company; or the company acquires or is to acquire
assets for consideration other than cash from such director or from
person connected with director unless prior approval has been
obtained in general meeting.
Registration under section 45-IA of RBI Act, 1934.
whether co. is required to be registered us 45-IA of RBI act, 1934.
Section 45 -IA of RBI act, 1934 dealt with NBFC
registration. which stipulates that it is mandato
for a company to obtain Certificate of Registrati
(CoR) from Reserve Bank of India (RBI) before
commencing or to carry on business of a non-
banking financial institution.

If yes

Whether the registration has been obtained

Non-Banking Financial Activities, or

Whether co. has conducted any
Housing Finance Activities

Without a valid Certificate of

Registration (CoR) from the
Reserve Bank of India as per
the Reserve Bank of India Act,
1934

whether it continues to fulfil

whether the company is Core Investment Company (CIC) if, yes the criteria of a CIC

whether the co.(a part of the group of CIC) has more than one CIC if yes Indicate

Number of CIC which are part of

the group

Cash Losses (New Clause)

financial year, and
whether the co. has incurred cash losses in
in the immediately
FY
if yes, then state

Amount of cash
losses.
Resignation by Statutory Auditor (New Clause)
whether any resignation of statutory auditor takes place

if yes whether Auditor has considered Issues, Objections or

Concerns

Raised by outgoing auditor.

Material Uncertainity on Meeting liabilities (New Clause)

on the basis of

Financial Ageing expected dates auditor’s

Ratios of realisation of other information knowledge of the
financial assets accompanying the Board of Directors
and payment of financial and management
financial statements plans
liabilities

whether the auditor is of the opinion that

No material uncertainty Company is capable of meeting

exists as on Audit report its liabilities existing at the
Date balance sheet date.

Transfer to fund specified under Schedule VII of Companies Act, 2013. (New Clause)

whether the co. In respect of other than ongoing projects has transferred unspent amount

within a period of To fund specified under

six month of the Schedule VII of
expiry of the Companies Act, 2013.
financial year

In compliance with
second proviso to
section 135 (5) of the
Act
 Whether Remaining Unspent Amount in respect of ongoing projects Transferred to Special Accou

In compliance with
Section 135 Dealt with CSR (Corporate social second proviso to
responsibility). section 135 (6) of the
Act

Qualifications or adverse auditor remarks in other group companies. (New Clause)

whether there is any qualification or Adverse remarks

in the Companies (Auditor's Report) Order (CARO) reports

of the companies included in the consolidated financial statements

if yes, then Indicate

Details of the paragraph numbers of the

companie CARO report containing the
s, and qualifications or adverse
remarks
Abbreviations
1.) FI = Financial Institution
2.) the act = Companies Act, 2013
3.) CG = Center Government