Summary of changes – CARO 2016 vs CARO 2020
- The Statutory auditor of the company is now required to report on the following additional points
S. No | CARO, 2020 No | Head | Topic | Brief description of the additional reporting requirement |
---|---|---|---|---|
1 | (i)(a)(B) | Property, Plant and Equipment | Intangible Assets | Whether the company is maintaining proper records showing full particulars of intangible assets. |
2 | (i)(c) | Property, Plant and Equipment | Title deeds of Immovable properties |
If the company has not maintained title deeds of immovable property disclosed in Financial statements, details thereof in the following manner should be given, a) Description of property b) Gross carrying value c) Held in name of d) Whether promoter, director or their relative or employee e) Period held – indicate range, where appropriate f) Reason for not being held in name of company* (*also indicate if in dispute) |
3 | (i)(d) | Property, Plant and Equipment | Revaluation of PPE | if change is 10% or more in the aggregate of the net carrying value of each class of PPE or intangible assets |
4 | (i)(e) | Property, Plant and Equipment | Benami Transactions (Prohibition) Act, 1988 | Details of any proceedings against the company under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) |
5 | (ii)(a) | Inventory | Inventory verification |
a) Opinion on coverage and procedure of inventory verification b) Discrepancy of 10% or more in aggregate for each class of inventory noticed during verification |
6 | (ii)(b) | Inventory | Sanction of working capital loan |
a) Sanction of working capital limit in excess of 5 crores in aggregate, from banks or financial institutions on the basis of security of current assets b) Quarterly returns or statements filed by the company with such banks or financial institutions are in agreement with the books of account of the Company |
7 | (iii)(a) (A&B) | Investments, loans and advances | Loans, advances and guarantees provided to any entity | Such loans, advances and guarantees should be split into aggregate amount during the year, and balance outstanding at the balance sheet date. |
8 | (iii)(e) | Investments, loans and advances | Renewal or extension of existing loan |
Whether any new loan has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties if yes, a) Amount of fresh loan or renewal b) percentage of the aggregate to the total loans or advances in the nature of loans granted during the year |
9 | (iii)(f) | Investments, loans and advances | Loans granted without any terms |
Loans granted without specifying any terms or period of repayment in the following format a) Amount of such loan b) Percentage thereof to total loans c) Aggregate amount of loans granted to promoters/related parties |
10 | (viii) | Unrecorded Transactions | Unrecorded Transactions | Income disclosed during Income tax assessment which has not been recorded in the books of accounts |
11 | (ix)(a) | Repayment of Dues | Format of reporting of default, if any |
Defaults in repayment of any loan in the below mentioned format should be given a) Nature of borrowing, including debt securities b) Name of lender* (*lender wise details to be provided in case of defaults to banks, financial institutions and Government.) c) Amount not paid on due date d) Whether principal or interest e) No. of days delay or unpaid f) Remarks, if any |
12 | (ix)(b) | Repayment of Dues | Willful defaulter | Whether the company is declared a willful defaulter by any bank or Financial Institution |
13 | (ix)(c) | Repayment of Dues | Application of term loans | Whether the term loans were applied for the purpose for which the loans were obtained |
14 | (ix)(d) | Repayment of Dues | Application of funds raised | whether funds raised on short term basis have been utilized for long term purposes |
15 | (ix)(e) | Repayment of Dues | Funds taken to meet obligation of subsidiary | whether the company has taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures |
16 | (ix)(f) | Repayment of Dues | Loans raised against pledge of securities held in its subsidiaries | whether the company has raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies |
17 | (xi)(b) | Fraud | Fraud Reporting | Whether ADT -4 under section 143(12) of the Companies Act, 2013 filed – reporting fraud to the Central government |
18 | (xi)(c) | Fraud | Whistle blower complaints | Whether the auditor has considered whistle-blower complaints |
19 | (xiv)(a) | Internal Audit | Internal audit system | whether the company has an internal audit system commensurate with the size and nature of its business |
20 | (xiv)(b) | Internal Audit | Internal auditor Report | whether the reports of the Internal Auditors for the period under audit were considered by the statutory auditor |
21 | (xvi)(b) | Compliance with RBI regulations | Certificate of Registration (CoR) | whether there is a valid Certificate of Registration (CoR) from the RBI for conducting any non-banking financial activity or housing finance activity |
22 | (xvi)(c) | Compliance with RBI regulations | Core Investment Company (CIC) | whether the company is a Core Investment Company (CIC) as defined in the regulations made by the RBI, if so, whether it continues to fulfil such criteria. |
23 | (xvi)(d) | Compliance with RBI regulations | Core Investment Company (CIC) | whether the Group has more than one CIC as part of the Group |
24 | (xvii) | Cash losses | Cash loss | Cash losses, if any in the financial year and in the immediately preceding financial year |
25 | (xviii) | Resignation of statutory auditors | Resignation |
any resignation of the statutory auditors during the year a) if yes, whether the current auditor has taken into consideration the issues, objections or concerns raised by the outgoing auditors |
26 | (xix) | Opinion on financial certainty | financial certainty | whether the auditor is of the opinion that no material uncertainty exists as on the date of the audit report that company is capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date |
27 | (xx)(a) | Corporate Social Responsibility | Transfer of fund | whether, the company has transferred unspent amount to a Fund specified in Schedule VII within prescribed time limit. |
28 | (xx)(b) | Corporate Social Responsibility | Transfer of fund | whether any amount remaining unspent under sub-section (5) of section 135 of the Companies Act, pursuant to any ongoing project, has been transferred to special account in compliance with the provision of sub-section (6) of section 135 of the said Act |
28 | (xxi) | CARO qualifications or adverse remarks relating to the consolidated financial statements | CARO qualifications or adverse remarks relating to the consolidated financial statements | if there are CARO qualifications in auditor report relating to the consolidated financial statements, indicate the details of the companies and the paragraph numbers of the CARO report containing the qualifications or adverse remarks |