CARO - 2015
Presented by:-Name :- Kishan KeshriSRN :- NRO0313433
Mobile No.: - 9717745535;8285586643
1. Background ;
2. Short Title ;
3. Applicability of the CARO,2015 ;
PRESENTATION CONTAINING:-
4. Companies Exculded under the CARO,2015 ;
5. Auditor’s Report to contain matter ;
6. Matter’s to be Included in the Auditor’s Report ;and
7. Reasons to be stated for unfavorable or qualified answers.
PRESENTATION CONTAINING:-
1. Background: - CARO – 2003
As per Sec 227 (4A) Companies Act, 1956
(Reporting on 21 points)
Supersession(C.G after consultation with ICAI)
CARO – 2015 As per Sec 143 (11)
Companies Act, 2013(Reporting on 12 points)
2. Short Title :-
This order may be called the Companies
(Auditor’s Report)Order,2015
i.e “CARO 2015”
3. Applicability of the CARO,2015 :-
1) Every Company Including a Foreign Company* as
Defined under Sec. 2 (42) of Companies Act,2013
To be Continue..
3. Applicability of the CARO,2015 :-
2) Private Limited Company (at any point of time during the Financial Year) :- Paid up Capital & Reserves > 50
Lakh Loan Outstanding (From Bank &
Financial Institution) > 25 Lakh Turnover > 5 Crore
(I) Foreign company :-
Any company or Body Corporate incorporated outside India which :-
Has a place of business in India whether by itself or through an agent, physically or through electronic mode;
Conduct any business activity in India in any other manner
4. Companies Excluded under the CARO,2015 :-
Banking Company• Defined
in Sec.5(c) of Banking Regulation Act, 1949
Insurance Company• Defined
in Sec. 4 of Insurance Act, 1938
Section 8 • Compan
y Licensed to operate as per Companies Act,2013
One Person Company*• Defined
in Sec. 2 (62)
Small Company*• Defined
in Sec. 2 (85)
(i) One person company:-
As per clause (62) of Section 2
O.P.C means a Company which has only one person as a member
(ii) Small company:-As per clause (85) of Section 2 Small Company means a Company other then a public company :-
Paid-up Share capital not exceed ‘50 Lacs / such higher amount as may be prescribed which shall not be more then ‘5 Crores Turnover of which as per its last P&L A/c does not exceed ‘2 Crores / such higher amount which shall not be more then ‘20 Cr.
To be Continue..
(ii) Small company:-Provided that nothing in this clause shall apply to:-
A Holding Company or a Subsidiary Company;
A Company registered Under Section 8;
A Company or Body Corporate governed by any Specific Act
5. Auditor’s Report to contain matter :-
Every Report
made by an Auditor under
Section 143 of the
Companies Act, 2013
On the accounts of
every company examined
by him
Order applies for
the Financial
year commencing on or after
1st April,2014
Shall Contain the
matter specified in Point 6 & 7
6. Matter’s to be Included in the Auditor’s Report:-
A. Fixed Assets
B. Inventory
C. Granted Loan
D. Internal Control System
H.Accumulated
&Incurred Cash
LossesG. Deposit
Of Statutory
Dues
F. Maintenan
ce Of
Cost Record
E. Accepted Deposit’s
I. Default in
Repayment Of Dues
J. Given Any
Guarantee For Loan
K. Term Loan L. Frauds
A. Fixed Assets :-
Maintaining proper records showing full
particulars
Includes Quantitative details & situation of Fixed
Assets
Physical Verification by Management
Material Discrepancies‘ Properly Dealt
B. Inventory :-
Physical Verification by Management
Inadequacies should be Reported
Maintaining proper records showing full
particulars
Material Discrepancies‘
noticed on Physical Verification properly
Dealt in Book of Account’s
C. Granted Loans :-
Granting any Loans (Secured or Un-
Secured) to Company, Firm or
other parties
Covered in the register maintained
under Section 189 of the Companies
Act,2013
Regular Receipt of Principal & Interest
Amount
Overdue Amount > 1 Lack Reasonable
steps for recovery Principal & Interest
Amount
D. Internal Control System :-
Is there an adequate Internal Control
System :-
*Size of Company;*Nature of Business
Purchase of Inventory & Fixed Assets & Sale of
Good’s & Services
Continuing Failure to correct major Weaknesses
E. Accepted Deposits:-
In case company has accepted deposit’s
As per Directive issued by the R.B.I
Provisions of Section 73 to 76 or any other
relevant of the Companies Act,2013
If Not, nature of contravention should
be stated
F. Maintenance of Cost Record’s:-
Under Sub-Sec. (1) of Sec. 148 of Companies Act
Whether such accounts & Record’s have been made &
maintained
G. Deposit of Statutory Dues:-
RegularDepositing
UndistributedStatutory
Dues
If, Not
Extent of the arrears of
Outstanding at the last day of the Financial
year, Concerned for a period of
<6 Months
To be Continue..
Provident Fund
Employees State Insurance
Income Tax
Service Tax
Wealth - Tax
Sales - Tax
Duty of Custom & Excise
Value Added Tax
Cess & Any other’s
Statutory Dues Includes:-
To be Continue..
Dues not been
Deposited
• Dispute is pending shall be mentioned
• A mere representation not constitute a Dispute
Amount Transferr
ed
• Investor Education and Protection Fund
• Relevant Provision of the Companies Act and rules made there under transferred within time
G. Deposit of Statutory Dues:-
H. Accumulated & incurred cash losses:-
Registration < 5 Year’s Accumulated Loss > 50% of Net Worth
Incurred Cash Losses (in such Financial Year & Immediately
preceding financial year)
I. Defaulted in Repayment of Dues:-
Due’s from financial institution / Bank /
Debenture Holder’s.Yes Period & Amount of Default
Report
J. Given Any Guarantee for Loan’s: -
Loan’s taken by other’s From Bank or Financial Institution
Terms & Condition are Prejudicial to the interest of
the Company
K. Term Loans: -
Whether Term Loans Applied for the purpose For which loans were Obtained
L. Fraud : -
Any Fraud on or by the company noticed or
reported If, Yes Nature & the amount
involved is to be indicated
7. Reasons to be stated for unfavorable or qualified answer’s :-
Where, in the Auditor’s Report, the answer to any of the Question
referred to in Point - 6 is Unfavorable or
Qualified,
The auditor’s report shall also state the
reasons for such unfavorable or qualified answer, as the case may
be
Unable to express any opinion in answer to a
particular question, report shall indicate Reasons why it is not
possible for him.
Top Related