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.