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REPORTING UNDER COMPANIES AUDITOR’S REPORT ORDER, 2020

[CARO]

Application: It shall refer to every company including a foreign company

except:

• Banking company as defined in Section 5( c) of the Banking

Regulation Act, 1949
• Insurance company as defined under the Insurance Act 1938
• Company licensed to operate under section 8 of the companies Act
• One person company & small company as defined in Sec 2(62)
and Sec 2(85) of the Companies Act
• 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 rupees as on Balance
sheet date and which does not have total borrowings exceeding one
crore rupees from any bank or Financial institution at any point in
time during the financial year and which does not have a total
revenue as disclosed in Sch III to the companies act (including
revenue from discontinuing operations) exceeding 10 crore rupees
during the FY as per the FS.

AUDITING SRI PRAGYA CA CLASSES CA NIVEDHA SHANKAR

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1. FIXED ASSET:

RECORDS: Whether a company is

RECORDS: Whether the company is
maintaining proper records showing
maintaining proper records showing
full particulars including quantitative
full particulars of Intangible assets
details and situation of PPE

Whether these PPE have been

Whether the title deeds of all the
physically verified by the
immovable properties disclosed in
management at reasonable
the FS are held in the name of the
intervals; whether any material
company, if not provide the details in
discrepancy was noticed and dealt
the format below:
with propwerly

Whether the company has revalued

Whether any proceedings have been
its PPE or intangible asset or both
initiated or are pending against the
during the year, and if so, whether
company for holding any benami
the revaluation is based on the
property under the Benami
valuation by a registered valuer;
Transactions (Prohibition) Act and
specify the amount of change, if the
rules made thereunder , and
change is 10% or more in the
whether company has disclosed the
aggregate of the net carrying value of
details in its FS
each class of PPE or IA

Description of Gross Held in Whether promoter, Period held, indicate Reason for
property carrying name of director, relative range where not being held
value or employee appropriate in name of
comp

2. INVENTORY

whether physical verification of

Whether during any point in point, the
inventories have been conducted at
company has been sanctioned WC
reasonable intervals, whether any
loan of more than 5 crores from banks
discrepancies of 10% or more in
and FI in aggregate, whether the
aggregate for each class of inventory
quarterly returns or statements filed
was noticed, if so, whether they have
with the bank/fi are in agreement with
been properly dealt with in the books
the BoA, if not- give details.
of accounts.

AUDITING SRI PRAGYA CA CLASSES CA NIVEDHA SHANKAR

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3. Loans, investments, guarantee, security provided

Whether during the year the company has provided any loans or advances in the nature of loan, or
stood guarantee or security to any entity, if so indicate
[NA to companies whose principal business is to give loans]
The aggregate amt during the year, the balance The aggregate amt during the year, the
outstanding at the BS date wrt. loans, advances, balance outstanding at the BS date wrt.
guarantees, security to subsidiary, JV & loans, advances, guarantees, security to
associates. other than subsidiary, JV & associates.

whether investments made, loans or advances given are not prejudicial to the interest of the
company

in respect of loans and advances in the nature of loans, whether the schedule of repayment of
principal and payment of interest has been stipulated and the whether the repayments or receipts
are regular

if amount is overdue, state the amount overdue more than 90 days, whether reasonable steps have
been taken for the recovery

Whether any loans or advance in the nature of loan, has been renewed or extended, or fresh loan
has been granted to settle the overdues of the existing loans- if so, specify the aggregate amount
ofdues renewed/extended/fresh loans and the percentage of the aggregate to the total loans or
advances [NA to companies whose principal business is to give loans]

whether the company has granted loans or advances which are repayable on demandor without
specifying any terms or period of repayment, if so, specify the aggregate amount, percentage of
total loans granted, aggregate amount of loans granted to promoters, Related parties

4. LIGS provided [185,186]

In respect of Loans, investments,

guarantees or security- whether the
provisions of section 185 and 186 of the
Companies Act have been complied with, if
not provide details thereof.

AUDITING SRI PRAGYA CA CLASSES CA NIVEDHA SHANKAR

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5. Deposits [73-76]
In respect of deposits accepted by the company
whether the provisions of Section 73 to 76 have been
complied with, if not, the nature of ocntraventions be
stated, if an order has been passed by company law
board or NCLT or RBI or any court or any tribunal,
whether same has been complied.

6. Cost records [148(1)]

Whether the maintenance of the cost records is as per Section 148(1) of the
companies Act.

7. Statutory dues [disputed and undisputed]

Disputed statutory dues

•Where statutory dues have not been depositted on account of any dispute, the amount
involved and the forum where dispute is pending.

Undisputed statutory dues

•Whether the company is regular in depositted the dues including, GST, PF, ST,sales
tax, emp;loyees state insurance, customs and excise duty and any other statutory
due, to the appropriate authorities- if not, extent of arrears on the last day of the FY
which is outstanding for a period of more than 6 months from the date they became
payable.

8. Undisclosed Income
Whether any transaction not recorded in the BoA have been surrendered or
disclosed as income during the year in the tax assessments in the IT Act 1961,
if so whether the previously unrecorded income has been properly recorded
in the BoA during the year.

9. Repayment of loan

Whether company has defaulted

Whether term loans were applied
in repayment of loans or other
for the purpose for which it wss
borrowings or in the payment of Whether the company has been
obtained, otherwise mention the
interest thereon to any lender, if declared as wilful defaulter
amount diverted and the purpose
yes, the period and the amount of
of usage.
default as per format*

Whether the company has raised

Whether the company has taken
any loan during the year on the
any funds from any entity or
Whether STL have been used for pledge of securities held in its
person to meet the obligations of
LT purposes, mention the nature subsidiaries, JV or associate
its subsidiary, associate or JV,
and amount companies, if so give details and
mention the details of nature and
also if company has defaulted in
amount.
the repayment of such loans.

Nature of Name of lender Amount not paid Whether No of days delay Remarks, if any
borrowing incl on due date principal or or unpaid
debt securities interest

AUDITING SRI PRAGYA CA CLASSES CA NIVEDHA SHANKAR

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10. Issue proceeds- IPO & FPO

Whether company has made preferential
Whether money raised by way of IPO or FPO allotment or private placement of shares or
were used for the same purpose it was convertible debentures during the year, and if
obtained for, if not, details together with so, whether the requirements of Sec 42 and 62
delays or default and subsequent rectification have been complied with and the funds have
has to be reported been used for the same purpose for which it
has been raised for.

11. Fraud
Whether any fraud by the company by the company or any fraud on the
company has been noticed or reported during the year, if yes, nature and
the amount involved

Whether any report under section 143(12) of the companies Act has been
filed by the auditors in Form ADT 4

Whether the auditor has considered any whistle blower complaints

received during the tear by the company.

12. NIDHI company

Whether the nidhi company Whether the nidhi company

Whether there has been any
has complied with the net is maintaining 10%
defaults in repayment or
owned funds to deposits in unencumbered term
payment of interest, details
the ratio of 1:20 to meet out deposits as specified in nidhi
thereof.
liability rules to meet out liability

13. Related Party Transactions [177&188]

Whether all the compliances under the Section
177 and 188 have been complied with, and the
details have been disclosed in the FS as
required by AS.

14. Internal Audit

Whether the company has an internal audit system commensurate with
the size and nature of the business.

Whether the reports of the Internal auditor were considered by the

statutory auditor

15. Non cash transactions -192

Whether the company has entered into any non cash transactions
with directors or persons connected with him, and if so, whether
the provisions of Section 192 have been complied with.

AUDITING SRI PRAGYA CA CLASSES CA NIVEDHA SHANKAR

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16. RBI Registration

Whether the company is Whether the company has

Whether the company is a Whether the group has more
required to be registered undertaken any non banking
core investment company, as than one CIC as part of the
under section 45IA of the RBI financial or housing financial
defined in the regulations group, if yes, indicate the
Act,1934; and if so, whether activities without a valid
made by the RBI, if so whether number of CICs part of the
the registration has been certificate of registration from
it fulfils the criteria group
obtained the RBI

17. Cash losses

whether the company has incurred cash losses in the FY and in the immediately
preceeding FY, if so, state the amount of cash losses

18. Resignation of statutory auditors

Whether there has been any resignation of statutory auditors during the year, and if so,
whether the auditor has taken into consideration the issues, objections or concerns raised
by the outgoing auditors.

19. Going concern

On the basis of the financial ratios, ageing and expected dates pf realisation of financial assets and
payment of financial liabilities, whether the auditor is of the opinion that no material uncertainty
exists as on the date of audit report that company is capable of meeting its liabilities existing at the
date of BS as and when they fall due within a period of one year.

20. CSR
Other than ongoing project
• Whether in respect of other than ongoing projects, the company has transferred unspent amount to a fund
specified in Schedule VII to the companies act within a period of 6 months to the expiry of the FY in compliance
with second proviso to subsection (5) of section 135
Ongoing project
• Whether any amount remaining unspent, pursuant to any ongoing project, has been transferred to special
account in compliance with 135 (6)

21. Consolidated Financial Statements

Whether there have been qualification or adverse remark by the

respective auditors under CARO in the CFS, if yes, indicate the
details of the company and the para numbers of CARO Report

AUDITING SRI PRAGYA CA CLASSES CA NIVEDHA SHANKAR