Taxmann’s CARO 2020 – A Para-wise Commentary on Companies (Auditor’s Report) Order 2020 by Srinivasan Anand G – 8th Edition July 2021

This book provides a para-wise commentary on Companies (Auditor’s Report) Order. It is a complete guide on the applicability and the matters that need to be reported by an Auditor on CARO.

This book is divided into three divisions:

• CARO Reporting under CARO, 2020 (Applicable from Financial Year 2021-22)
• CARO Report on Consolidated Financial Statements under CARO, 2020
• CARO Reporting under CARO, 2016 (Applicable for Financial Year 2021-22)

This book will be helpful for Auditors

The Present Publication is the 8^th Edition, amended up to 30^th June 2021, authored by CA Srinivasan Anand G., with the following noteworthy features:

• [FAQs & Case Studies]
  • CARO 2016
  • CARO 2020
• [Amended Schedule II] Related disclosure requirements
• [Clause-wise Ready Reckoner] on CARO 2020
• Review of earlier versions of CARO to do a quick comparison(s)
• [In a Nushell] CARO 2020
• Relevant Provisions of Companies Act, 2013

The contents of this book are as follows:

• CARO Reporting under CARO, 2020 (Applicable from Financial Year 2021-22)
  • Introduction
  • Additional Regulatory Information Disclosure Requirements of Schedule III vis-a-vis CARO, 2020
  • Applicability of CARO, 2020
  • Property, Plant and Equipment
  • Intangible Assets
  • Title Deeds of all Immovable Properties Disclosed in Accounts
  • Proceedings Pending against the Company for Holding Benami Property
  • Inventory
  • Quarterly Statements Submitted to Banks/FIs by Companies Enjoying Sanctioned Working Capital Limits
  • Loans or Advances in the Nature of Loans or Guarantees or Security Provided to, or Investments made in, Other Entities
  • Reporting on Compliance with Sections 185 and 186 as Regards Loans, Investments, Guarantees and Securities
  • Acceptance of Public Deposits and Deemed Deposits
  • Maintenance of Cost Records
  • Payment/Non-Payment of Statutory Dues
  • Transactions not Recorded in the Books and Surrendered or Disclosed as Income in Tax Assessment
  • Company Defaults in Repayment of Loans/Other Borrowings/in Payment of Interest to any Lender
  • End use of Term Loans
  • ‘Asset-Liability Maturity Mismatch’ – Use of Short-Term Funds for Long Term Purposes
  • Funds Taken from Other Entities by Company to Meet Obligations of Subsidiaries, Associates or JVs
  • Whether Company has Raised Loan on Pledge of Securities in Subsidiaries, Associates or JVs
  • End Use of Moneys Raised by Way of IPO/FPO
  • Private Placement/Preferential Allotment of Shares/FCDs/PCDs/OCDs
  • Frauds Noticed/Reported
  • Reporting of Compliances by Nidhi Companies
  • Related Party Transactions
  • Internal Audit
  • Non-Cash Transactions Involving Directors or Connected Persons
  • Registration of NBFCs U/S 45-IA of RBI Act, 1934
  • Whether Company has Incurred Cash Loss
  • Resignation of Statutory Auditors
  • Material Going Concern Uncertainty
  • Transfer of Unspent CSR Funds
  • Reasons to be Stated by Auditor for Qualified or Adverse Remarks
    in CARO Report
• CARO Report on Consolidated Financial Statements under CARO, 2020
  • Qualified/Adverse Remarks in CARO Reports of Companies Included in Consolidated Financial Statements
  • CARO Reporting under CARO, 2016 (Applicable for Financial Year 2021-22
  • Applicability of CARO, 2016
  • Fixed Assets/PPE
  • Title Deeds of Immovable Properties
  • Inventory
  • Loans to Parties Covered under Section 189
  • Reporting on Compliance with sections 185 and 186 as regards loans, investments, guarantees and securities
  • Acceptance of Deposits by Company
  • Maintenance of Cost Records
  • Payment/Non-Payment of Statutory Dues
  • Default in Repayment to Banks/FIs/Govt. Debenture Holders
  • End use of Monies Raised by Way of IPO/FPO/Term Loans
  • Frauds Noticed/Reported
  • Managerial Remuneration
  • Reporting on Compliances by Nidhi Company
  • Related Party Transactions
  • Private Placement/Preferential Allotment of Shares/FCDs/PCDs
  • Non-Cash Transactions Involving Directors or Connected Persons
  • Registration of NBFC under Section 45-IA of RBI Act, 1934