CARO, 2016

Companies(Auditor’s Report) Order,2016

Applicable

Every Co + Foreign Co U/S 2(42) of Companies Act,2013

Exclude following class of companies (BISSOP)(NOT APPLICABLE)

B I S S O P Companies

BANKING CO INSURANCE CO SMALL CO SECTION 8 OPC PRIVATE LTD CO

HOLDING SUBSIDIARY

CARO NOT APPLICABLE TO CONSOLIDATED FS

WRITE IN THE EXAMS

OF PUBLIC CO
PSC + R&S MAX 1 CRORE
Clause () of Paragraph 3 of CARO 2016 states

i F vii) D xi) M xiv) P

ii I viii) D xii) N xv) N MAX TOTAL BORROWING 1 CRORE
iii L ix) E xiii) R xvi) R
iv L x) F
v D TOTAL REVENUE + INCOME FROM
vi C D.O MAX 10 CRORE

FILL D CD DEF MNR PNR

(1) FIXED ASSET

a) whether the company is maintaining proper records showing full particulars, including
quantitative details and situation of fixed assets;
b) whether these fixed assets have been physically verified by the management at
reasonable intervals; whether any material discrepancies were noticed on such
verification and if so, whether the same have been properly dealt with in the books of
account;
c) whether the title deeds of immovable properties are held in the name of the company. If
not, provide the details thereof
PROPER RECORDS→FULL PARTICULARS, QUANTITATIVE DETAILS, SITUATION
PV @ REASONABLE INTERVALS →ANY MD,PROPERLY DEALT IN BOA
TITLE DEEDS OF IMP →CO NAME →IF NOT, DETAILS

(2)INVENTORIES

a) Whether physical verification of inventory has been conducted at reasonable intervals by management
b) whether any material discrepancies were noticed and
c) if so, whether they have been properly dealt with in the books of account
PV @ REASONABLE INTERVALS MD →PROPERLY DEALT IN BOA

MUBARAK SHANI
 (3)LOAN TO RELATED PARTIES

Whether the company has granted any loans, secured or unsecured to companies, firms,
Limited Liability Partnerships or other parties covered in the register maintained under
section 189 of the Companies Act, 2013. If so,
a. whether the terms and conditions of the grant of such loans are not prejudicial to the
company’s interest;
b. whether the schedule of repayment of principal and payment of interest has been
stipulated and whether the repayments or receipts are regular;
c. if the amount is overdue, state the total amount overdue for more than ninety days, and
whether reasonable steps have been taken by the company for recovery of the principal
and interest;
LOANS TO CO FIRMS LLP OTHER PARTIES U/S 189
T&C →NOT PREJUDICIAL
SCHEDULE OF REP OF (P + INT) STIPULATED + REGULAR
Overdue→ state OD >90DAYS, + REASONABLE STEPS TAKEN →RECOVERY OF(P+INT)

(4)LOAN TO DIRECTORS

In respect of loans, investments, guarantees, and security whether provisions of section 185
and 186 of the Companies Act, 2013 have been complied with. If not, provide the details
thereof.

LOANS SECURITY GUARANTEE → TO DRS →AS PER 185,186 IF NOT, DETAILS

(5) PUBLIC DEPOSITS
a) In case, the company has accepted deposits, whether

i) the directives issued by the Reserve Bank of India and

ii) the provisions of sections 73 to 76 or

iii) any other relevant provisions of the Companies Act, 2013 and
iv) the rules framed thereunder, where applicable, have been complied with?
b) If not, the nature of such contraventions be stated;
c) If an order has been passed by
i) Company Law Board or
ii) National Company Law Tribunal or
iii) Reserve Bank of India or
iv) any court or
v) any other tribunal,
d) whether the same has been complied with or not?

DIRECTIVES BY RBI 73 -76 OTHER PROVISIONS RULES →COMPLIED →IF NOT,

NATURE OF CONTRAVENTIONS
+ ORDER PASSED BY
RBI NCLT COURT TRIBUNAL →COMPLIED?

(6) COST RECORDS

Whether maintenance of cost records has been specified by the Central Government under
sub-section (1) of section 148 of the Companies Act, 2013 and whether such accounts and
records have been so made and maintained.

MUBARAK SHANI
 COST RECORDS BY CG → 148 →MAINTAINED?
(7) STATUTORY DUES

a. whether the company is regular in depositing undisputed statutory dues including

provident fund, employees’ state insurance, income-tax, sales-tax, service tax, duty of
customs, duty of excise, value added tax, cess and any other statutory dues to the
appropriate authorities and if not, the extent of the arrears of outstanding statutory dues
as on the last day of the financial year concerned for a period of more than six months
from the date they became payable, shall be indicated;
b. where dues of income tax or sales tax or service tax or duty of customs or duty of excise
or value added tax have not been deposited on account of any dispute, then the
amounts involved and the forum where dispute is pending shall be mentioned. (A mere
representation to the concerned Department shall not be treated as a dispute).
CO
UNDISPUTED DISPUTED
PF IT
ESI GST
IT NOT DEPOSITED
GST
AMOUNT + FORUM → MENTION
REGULAR IN DEPOSIT
IF NOT,
ARREARS OF O/S SD ON BSD
>6 MONTHS FROM DOP

(8) DEFAULT IN REPAYMENT OF DEBT

Whether the company has defaulted in repayment of loans or borrowing to a financial

institution, bank, Government or dues to debenture holders? If yes, the period and the
amount of default to be reported (in case of defaults to banks, financial institutions, and
Government, lender wise details to be provided).
DEFAULT IN REP FI BANK GOVT DH →YES, PERIOD+ AMOUNT OF DEFAULT

(9) END USE OF MONEY RAISED THROUGH PUBLIC ISSUE/LOANS

Whether moneys raised by way of initial public offer or further public offer (including debinstruments)
and term loans were applied for the purposes for which those are raised. If not, the details together
with delays or default and subsequent rectification, if any, as may be
applicable, be reported
MONEY RAISED →APPLIED FOR SAME PURPOSE →IF NOT DETAILS + SUBS.RECTIFICTN
(10) REPORT ON FRAUD
Whether any fraud by the company or any fraud on the Company by its officers oremployees has been noticed or
reported during the year; If yes, the nature and the amountinvolved is to be indicated;
FRAUD BY CO OFFICER EMPLOYEES → NATURE + AMOUNT

MUBARAK SHANI
 (11) MANAG. REMUNERATION

Whether managerial remuneration has been paid or provided in accordance with the
requisite approvals mandated by the provisions of section 197 read with Schedule V to the
Companies Act? If not, state the amount involved and steps taken by the company for
securing refund of the same;

MR→ AS PER 197 →IF NOT, AMOUNT+ STEPS

(12) NIDHI COMPANY

Whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the
ratio of 1: 20 to meet out the liability and whether the Nidhi Company is maintaining ten
per cent unencumbered term deposits as specified in the Nidhi Rules, 2014 to meet out the
liability;

NOF/DEPOSIT = 1:20 + 10% UNENCUMBERED TD

(13)RP DISCLOSURE

whether all transactions with the related parties are in compliance with sections 177 and
188 of Companies Act, 2013 where applicable and the details have been disclosed in the
Financial Statements etc., as required by the applicable accounting standards;
RP TRANSC →177 +188 → AS COMPLIED → DISCLOSED IN FS
(14)PRIVATE PLACEMENT

Whether the company has made any preferential allotment or private placement of shares
or fully or partly convertible debentures during the year under review and if so, as to
whether the requirement of section 42 of the Companies Act, 2013 have been complied
with and the amount raised have been used for the purposes for which the funds were
raised. If not, provide the details in respect of the amount involved and nature of noncompliance;
PP → 42 COMPLY →AMOUNT RAISED + USED FO SAME PURPOSE→IF NOT → AMOUNT + NATURE

(15)NON CASH TRANSACTIONS

Whether the company has entered into any non-cash transactions with directors or persconnected
with him and if so, whether the provisions of section 192 of Companies Act, 2013
have been complied with;
NCT WITH DIRECTORS →192 COMPLY

(16)NBFC REGISTERED WITH RBI

Whether the company is required to be registered under section 45-IA of the Reserve Bank
of India Act, 1934 and if so, whether the registration has been obtained.

CO → 45-IA OF RBI ACT → REGISTRATION OBTAINED

MUBARAK SHANI