{"id":11200,"date":"2020-03-17T08:52:20","date_gmt":"2020-03-17T08:52:20","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=11200"},"modified":"2024-06-03T16:28:15","modified_gmt":"2024-06-03T10:58:15","slug":"companies-auditors-reporting-order-caro-2020","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/companies-auditors-reporting-order-caro-2020\/","title":{"rendered":"Companies Auditors Reporting Order (CARO) 2020"},"content":{"rendered":"<table style=\"width: 100%;\">\n<tbody>\n<tr>\n<td style=\"padding: 10px;\"><strong>Table of Content<\/strong><\/p>\n<ul>\n<li><a href=\"#recent\">Recent Amendments under CARO<\/a><\/li>\n<li id=\"recent\"><a href=\"#companies\">Companies covered under CARO 2020<\/a><\/li>\n<li><a href=\"#matters\">Matters to be included in auditor\u2019s report<\/a><\/li>\n<li><a href=\"#comparison\">Comparison between CARO 2016 and CARO 2020<\/a><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 style=\"color: #1e82b6; font-size: 20px !important; text-align: justify;\">Recent Amendments under CARO<\/h3>\n<p style=\"text-align: justify;\">Ministry of Corporate Affairs (MCA) has made certain changes in companies (auditor\u2019s record) order vide its notification dated 25<sup>th <\/sup>February 2020, and has published Companies (Auditor\u2019s Report) Order, 2020. It shall be applicable for the audit of financial statement 2019-20.<\/p>\n<h3 id=\"companies\" style=\"text-align: justify;\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-15595 size-full\" src=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/03\/Companies-Auditors-Reporting-Order-CARO-2020.png\" alt=\"\" width=\"1200\" height=\"630\" srcset=\"https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/03\/Companies-Auditors-Reporting-Order-CARO-2020.png 1200w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/03\/Companies-Auditors-Reporting-Order-CARO-2020-300x158.png 300w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/03\/Companies-Auditors-Reporting-Order-CARO-2020-1024x538.png 1024w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/03\/Companies-Auditors-Reporting-Order-CARO-2020-768x403.png 768w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/03\/Companies-Auditors-Reporting-Order-CARO-2020-615x323.png 615w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/03\/Companies-Auditors-Reporting-Order-CARO-2020-400x210.png 400w, https:\/\/www.cagmc.com\/blog\/wp-content\/uploads\/2020\/03\/Companies-Auditors-Reporting-Order-CARO-2020-292x153.png 292w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/h3>\n<h3 style=\"color: #1e82b6; font-size: 20px !important; text-align: justify;\">Companies covered under CARO 2020<\/h3>\n<p style=\"text-align: justify;\">It shall be applicable to every company including a foreign company as defined in clause (42) of section 2 of the Companies Act, 2013 except:<\/p>\n<ol style=\"text-align: justify;\">\n<li style=\"list-style-type: none;\">\n<ol start=\"1949\">\n<li>A banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949.<\/li>\n<li>An insurance company as defined under the Insurance Act, 1938.<\/li>\n<li>Section 8 companies as per the companies Act 2013.<\/li>\n<li>A <a href=\"https:\/\/www.cagmc.com\/one-person-company\/\">One Person Company<\/a> as defined in clause (62) of section 2 of the Companies Act 2013<\/li>\n<li>A small company as defined in clause (85) of section 2 of the Companies Act 2013.<\/li>\n<li>A private limited company, not being a subsidiary or holding company of a public company:<\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<ul id=\"matters\" style=\"margin-left: 40px; text-align: justify;\">\n<li>Having a paid up capital and reserves and surplus not more than one crore rupees as on the balance sheet date.<\/li>\n<li>Should not having the total borrowings exceeding one crore rupees from any bank or financial institution at any point of time during the financial year.<\/li>\n<li>Total revenue as disclosed in Schedule III to the Companies Act (including revenue from discontinuing operations) should not exceeds ten crore rupees during the financial year as per the financial statement.<\/li>\n<\/ul>\n<h3 style=\"color: #1e82b6; font-size: 20px !important; text-align: justify;\">Matters to be included in auditor\u2019s report<\/h3>\n<ul style=\"text-align: justify;\">\n<li>The CARO, 2020 added some more clauses, as compared to CARO, 2016. \u00a0There are in total 21 clauses in CARO 2020 as compared to 16 clauses in CARO 2016, 7 clauses inserted, 1 clause merged with other and 1 clause deleted.<\/li>\n<li>Instead of fixed asset in <a href=\"https:\/\/cleartax.in\/s\/caro-2016-reporting-requirements\" target=\"_blank\" rel=\"noopener\">CARO 2016<\/a>, CARO 2020 includes Ind AS 10 PPE.<\/li>\n<li>A specific format has been given for reporting the details of such immovable properties whose title deeds are not held in the name of the company.<\/li>\n<li>Disclosure of details of proceedings against the company for holding Benami Property(Property in the name of proxy) and whether the company has disclosed the details in its financial statements.<\/li>\n<li>Discrepancies noticed during physical verification of inventory would have to be reported by the auditor if such Discrepancies are of 10% or more in the aggregate of each class of inventory.<\/li>\n<li>If, the Company has been sanctioned working capital (cash credit) limits exceeds Rs.5 crores, in aggregate, from banks or financial institutions on the basis of security of current assets the auditor is required to provide specific details as to whether the quarterly returns\/statements filed by the Company with such banks or financial institutions are in agreement with the books of account of the Company.<\/li>\n<li>In clause 3(iii) of CARO, 2020, the auditor required to check and report in detail on the investments made by the company, any guarantee or security provided or any loans or advances in the nature of loans granted, secured or unsecured, to companies, firms, Limited Liability Partnerships or any other parties during the year, should not prejudicial to the interests of the company.<\/li>\n<li>A specific format has given to report the period and the amount of default by the company in repayment of loans or other borrowings or in the payment of interest thereon to any lender.<\/li>\n<li>The auditor is required to render his opinion on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, the auditor\u2019s knowledge of the Board of Directors and management plans, 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.<\/li>\n<li>The number of cash losses incurred in the financial year and in the immediately preceding financial year has to be reported.<\/li>\n<li>The auditor has to take into consideration the issues, objections or concerns raised by the outgoing auditors before forming his opinion.<\/li>\n<li>The auditor is required to report about the company if it is a declared willful defaulter by any bank\/ financial institution\/other lenders.<\/li>\n<li>The auditor would have to report as to whether term loans were applied for the purpose for which the loans were obtained and if not, the amount of loan and the purpose for which it is used would have to be reported.<\/li>\n<li>The auditor is required to report as to whether any fraud by the company or any fraud on the Company has been noticed or reported during the year; If yes, nature and the amount involved is to be indicated.<\/li>\n<li>The auditor is to consider whistle-blower complaints received during the year by the Company in his audit.<\/li>\n<li>The auditor is to report if the company has conducted any Non-Banking Financial or Housing Finance activities without a valid Certificate of Registration (COR) from the Reserve Bank of India as per the RBI Act 1934.<\/li>\n<li id=\"comparison\">The auditor of the parent company is now required to indicate the details if the auditor of subsidiary companies gives any qualifications\/adverse remark under CARO 2020 of the subsidiary companies and include such remark in the consolidated financial statements.<\/li>\n<li>The CARO, 2020 is expected to significantly improve the overall quality of reporting by the Auditors on the financial statements of the Companies and thereby lead to greater transparency and faith in the financial affairs of the companies. This is automatically expected to greater inflow of investment by and in Indian companies.<\/li>\n<\/ul>\n<h3 style=\"color: #1e82b6; font-size: 20px !important; text-align: justify;\">Comparison between CARO 2016 and CARO 2020:<\/h3>\n<table style=\"border: 1px solid #ddd; text-align: left; margin-left: 15px;\" width=\"100%\">\n<tbody>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><strong>Clause<\/strong><\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><strong>CARO 2016<\/strong><\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\"><strong>CARO 2020<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">i. Non \u2013current assets<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>Whether the company is maintain proper records showing full particulars including quantitative details and situation of fixed asset.<\/li>\n<li>Whether these fixed asset have been physically verified by management at reasonable interval.<\/li>\n<li>Whether the title deeds of immovable property are held in the name of the Company. If not provide the detail thereof<\/li>\n<\/ul>\n<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>Verification of the title deeds of the immovable properties and it\u2019s disclosure in financial statements<\/li>\n<li>Specified the format for maintaining the details of the fixed asset<\/li>\n<li>In case of revaluation of Property, Plant and Equipment (PPE) or intangible assets, by a Registered Value if the change is 10% or more of the net carrying value.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\u00a0ii. Inventory and other current assets<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>Whether physical verification of inventory has been conducted by the management at reasonable interval. And if discrepancies have been noticed on such verification whether the same has been properly dealt with in the books of account.<\/li>\n<\/ul>\n<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>If, the Company has been sanctioned working capital (cash credit) limits exceeds Rs.5 crores, in aggregate, from banks or financial institutions on the basis of security of current assets the auditor is required to provide specific details as to whether the quarterly returns\/statements filed by the Company with such banks or financial institutions are in agreement with the books of account of the Company. If not, give details.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">iii. Investments, loans or advances by company<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>CARO 2016 focused only on loan that whether the company has granted any loans, secured or unsecured to companies, firms, LLP or other parties covered in the registered maintained under section 189 of the Companies Act 2013. If so, whether terms and conditions of the grant of such loan are not prejudicial to the company\u2019s interest.<\/li>\n<\/ul>\n<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>CARO 2020 includes investments also in this clause that whether the company has granted any loans, investments guarantee and securities to companies, firms, LLP or other parties covered in the registered maintained under section 189 of the Companies Act 2013. If so, whether terms and conditions of the grant of such loan are not prejudicial to the company\u2019s interest.<\/li>\n<li>If company grant loans or advances in the nature of repayable on demand or without the any terms or period of payment, given to related party and promoters then specify the amount and percentage of such loans or advances and given to the promoters, related parties.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">iv. Loan to Directors and Investment by the Company<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>In respect of loan, investment, guarantees and security whether provision of section 185 and 186 of the Companies act 2013 has been complied with. If not, provide the details thereof.<\/li>\n<\/ul>\n<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">No change<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\u00a0v. Deposits accepted by the company<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>In case, the company has accepted deposits, whether the following has been complied with<\/li>\n<li>The Directives issued by the reserve bank of India.<\/li>\n<li>The provision of sec 73 to 76 or any other relevant provision of companies act 2013 and the rules framed there under.<\/li>\n<li>If the order has been passed by company law board (CLB) or National company law tribunal (NCLT) or RBI or any court or any other tribunal.<\/li>\n<\/ul>\n<p>And if not, the nature of contraventions should be stated.<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">No changes<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">vi. Maintenance of cost records<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>Central government has specified maintenance of cost records under sec 148(1) of companies act 2013 whether such accounts and records have been made and maintained.<\/li>\n<\/ul>\n<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">No change<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">vii. Statutory dues<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>Whether the company is regular in depositing undisputed statutory dues with the appropriate authorities. If not, \u00a0the extent of arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they become payable, shall be indicated by the auditor. The amount of dues which shall not be paid should disclose by the auditor.<\/li>\n<\/ul>\n<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">No change<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">viii. Disclosure of undisclosed transactions<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">Not applicable<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>In case of any transactions not recorded in the books of account have been surrendered or disclosed as income during the year in the tax assessments, has been properly recorded in the books of account.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">ix. Loans or other borrowings<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>Whether the company has defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders. If yes, the period and the amount of default to be reported<\/li>\n<\/ul>\n<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>Specific format for reporting the details of the default in repayment of loans or other borrowings (lender wise) is given.<\/li>\n<li>Various reporting clauses of section 143 of Companies Act 2013 is inserted as a part of this clause in respect of term loans, short term loans, funds raised to meet the obligations of subsidiaries.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\u00a0x. Money raised by IPOs, FPOs<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>Whether moneys raised by way of initial public offer or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised.<\/li>\n<li>And according to clause (xiv) of CARO 2016 Whether the company has made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and if so, as to whether the requirement of section 42 of the Companies Act, 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised<\/li>\n<li>If not, the details in respect of the amount of delays or default should mention and subsequent rectification, if any, as may be applicable, be reported;<\/li>\n<\/ul>\n<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>Merged clause (xiv) of CARO 2016 \u2013 compliance in relation to preferential allotment or private placement of shares.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">xi. Fraud<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>Whether any fraud by the company or any fraud on the Company by its officers or employees has been noticed or reported during the year. If yes, the nature and the amount involved is to be indicated.<\/li>\n<\/ul>\n<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>Any report in ADT-4 in relation to fraud is filed by auditor to the central government u\/s 143(12) and any complaints from whistle-blowers is considered by the auditor while submitting such report<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">xii. Nidhi company<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>Whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1: 20 to meet out the liability and whether the Nidhi Company is maintaining 10 per cent unencumbered term deposits as specified in the Nidhi Rules, 2014 to meet out the liability.<\/li>\n<\/ul>\n<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">No change<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">xiii. Related party transactions<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>Whether all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards;<\/li>\n<\/ul>\n<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">No change<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">xiv. Internal Audit System<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">Not applicable<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>whether the company has an internal audit system commensurate with the size and nature of its business<\/li>\n<li>whether the reports of the Internal Auditors for the period under audit were considered by the statutory auditor;<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">xv. Non-cash transactions<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>Whether the company has entered into any non-cash transactions with directors or persons connected with him and if so, whether the provisions of section 192 of Companies Act, 2013 have been complied with.<\/li>\n<\/ul>\n<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">No change<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">xvi. RBI registration<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>Whether the company is required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and if so, whether the registration has been obtained.<\/li>\n<\/ul>\n<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">No change<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">xvii. Cash losses<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">Not applicable<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>State the amount of cash losses, in case of cash losses incurred in the financial year and in the immediately preceding financial year.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">xviii. Consideration of outgoing auditor<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">Not applicable<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>In case of any resignation of the statutory auditors during the year, if so, whether the auditor has taken into consideration the issues, objections or concerns raised by the outgoing auditors<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">xix. Material uncertainty in relation to realisation of financial assets and payment of financial liabilities<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">Not applicable<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>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<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">xx. Compliance of CSR<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">Not applicable<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>If there is any amount left unspent whether the company has transferred this unspent amount in respect of other than ongoing projects and ongoing projects to specified funds\/accounts as per sec 135(5) and (6) respectively.<\/li>\n<li>135(5): If the unspent amount does not relate to an ongoing CSR project, such unspent amount should be directly transferred to the fund mentioned in Schedule VII of the Act, within 6months from the end of the relevant financial year.<\/li>\n<li>135(6): Any unspent amount from the total allocated amount for CSR remains, pursuant to any ongoing CSR project in accordance with its CSR policy, the company is then required to transfer such unspent amount to a special account called Unspent Corporate Social Responsibility Account within a period of 30days from the end of the financial year.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">xxi. Qualifications or adverse remarks in the consolidated financial statements<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">Not applicable<\/td>\n<td style=\"padding: 9px; border: 1px solid #ddd; text-align: left; font-size: 16px;\">\n<ul>\n<li>The auditor of the parent company is now required to indicate the details if the auditor of subsidiary companies gives any qualifications\/adverse remark under CARO 2020 of the subsidiary companies and include such remark in the consolidated financial statements<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Table of Content Recent Amendments under CARO Companies covered under CARO 2020 Matters to be included in auditor\u2019s report Comparison [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":15595,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[70],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Companies Auditors Reporting Order (CARO) 2020<\/title>\n<meta name=\"description\" content=\"Read about Companies Auditors Reporting Order (CARO) 2020. 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