Companies Auditors Report Order CARO 2015

[Deepak Aggarwal]

What are differences between CARO 2003 and CARO 2015 ?

[Deepak Aggarwal]

Points added deleted in new CARO report

Please Note: D refers to deleted , A refers to Added

D: if a substantial part of fixed assets have been disposed off during the year, whether it has affected the going concern. 

D: Loan given to 301 parties. If so, give the number of parties and amount involved in the transactions.

D: (b) whether the rate of interest and other terms and conditions of loans given or taken by the company, secured or unsecured, are prima facie prejudicial to the interest of the company.

D: (v) (a) whether transactions that need to be entered into a register in pursuance of section 301 of the Act have been so entered.

D: (b) whether each of these transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time:(This information is required only in case of transactions exceeding the value of five lakh rupees in respect of any party and in any one financial year A: Inclusion of National Company Law tribunal, RBI or any other court or Tribunal in acceptance of deposits us 58AA (old)

A: Deposit of Stat Dues - in that clause Investor Education fund removed and separately mentioned as a point The following clauses have been deleted from the New CARO , 2015Clause nos as per old Caro. Clause VII Internal Audit system requirement Clause XII documentation for loans given by pledging the shares Clause XIII Nidhi, Chit fund Clause XIV dealing in Shares Clause XVII short term loans are used for Long term purpose Clause XVIII preferential alottment to parties and companies registered in 301 Register Clause XIX securities created in respect of Debentures issued Clause XX money raised by public issue.

[Ganeshan Kalyani]

Good information.

AI Summary

CARO reporting scope revised; deletions of multiple legacy clauses and added deposit and statutory-due disclosures. CARO 2015 revises auditor reporting by deleting multiple legacy CARO 2003 enquiry requirements (including disclosures on disposal of fixed assets, specified loans, prejudicial loan terms, section 301 register entries and pricing, and several operational financing clauses) and by adding clarifications on authorities relevant to deposit acceptance and restructuring deposit-related statutory dues disclosures, with the Investor Education Fund addressed separately.