Caro for Chartered Accountants (1)

8/20/2019 Caro for Chartered Accountants (1)

http://slidepdf.com/reader/full/caro-for-chartered-accountants-1 1/4

COMPANIES (AUDITOR’S REPORT) ORDER, 2003APPRAISAL NOTE

Applicability (Any ! t"# $ll%in&)

1. Paid – up capital and reserves of more than 50 Lacs.

2. Has accepted any public deposit.3. Turnover eceedin! "s.5 #rores.$. %utstandin! Loans of "s.10 Lacs or more from ban&'s( and financial institution's(.

"eserve) The follo*in! eplanations are important in this re!ard)

'a( "eserve shall include both capital as *ell as revenue reserves'b( "evaluation reserve should also be ta&en into consideration *hile determinin!

the fi!ure of reserves.'c( The credit balance of Profit + Loss ,ccount should also be considered as a part

of reserve and the debit balance of P + L ,-c should be reduced from the fi!ureof revenue reserves. Ho*ever miscellaneous ependiture to the etent not

*ritten off should not be deducted as such.

Turnover) shall mean as the a!!re!ate amount for *hich sales are effected by thecompany. The term /sales effected *ould include sale of !oods as *ell as servicesrendered by the company.

C'plianc# Nt# ! CARO, 2003

$I*ED ASSETS

'a( #hec& *hether the "e!ister of ied ,ssets has been maintained or not.'b( #hec& *hether the necessary entries have been duly incorporated in the said

re!ister or not.'c( isclosure in the #,"% in re!ard to disposal of fied assets substantially durin!

the year.'d( #ompliance of section 23'1( 'a( of the #ompanies ,ct 154 in case of Limited

#ompanies.'e( inutes of the 6oard and 7eneral eetin! 'in compliance of section 23(.

2 LOANS + UNDER SECTION 30 O$ TE COMPANIES ACT, -./

'a( Loan includes 8ecured or 9nsecured ta&en or !ranted 'u-s 301(.'b( #hec& *hether the "e!ister of #ontracts or ,rran!ements - :nterest or #oncern

u-s 301 made or not.

'c( #hec& *hether the necessary entries have been duly incorporate in the saidre!ister or not.

'd( #hec&list of "elatives and orm ;o. 2$,, by all the irectors.'e( isclosure in the #,"% in re!ard to the follo*in!)

♦ ;umber of parties

♦ aimum amount durin! the year.

♦ ,mount involved at the end of the year.

♦ Transactions s<uared durin! the year and amount involved.



♦ "ate of :nterest for such loans.

♦ =hether pre>udicial to the interests of the company or not.

♦ Payment of Loans - :nterest as per 8chedule.

♦ isclosure in relation to recovery - payment of overdue amount if the

same is more than "s. 1 Lac and action thereof.

'f( etails of transactions *ith related parties u-s 301 if the value of suchtransactions eceed "s. 5 Lacs in respect of any party and in any one financialyear.

'!( #ompliance of section 2? and 2 of the ,ct.'h( inutes of the 6oard and 7eneral eetin!s in this re!ard.

3 PULIC DEPOSITS 1 UNDER SECTION .A O$ TE COMPANIES ACT, -./

'a( List of persons from *hom unsecured loans has been ta&en durin! the year andnature of relationship of such persons e.!. *hether 8hareholder irector their "elatives or :nter corporate.

'b( The follo*in! details in connection of the above)

♦

aimum amount durin! the year.♦ ,mount involved at the end of the year.

♦ Transactions s<uared durin! the year and amount involved.

♦ "ate of :nterest for such loans.

'c( inutes of the 6oard eetin!s in this re!ard.

INTERNAL AUDIT LIMIT UNDER CARO

'a( :ncreased from "s.25 Lacs to "s.50 Lacs lin&ed to Paid@up #apital and ree"eserves.

'b( :ncreased from "s.2 #rores to "s. 5 #rores lin&ed to Turnover.'c( inutes of the 6oard eetin!s in this re!ard.

. DETAILS O$ SARE APPLICATION

'a( ,mount received as 8hare ,pplication durin! the year and date of receipt.'b( =hether pendin! for allotment or not.'c( =hether interest bein! paid or not on such share application.'d( etails of refund of share application durin! the year.'e( ,ny amount *hether due for transfer to :nvestor Aducation and Protection und

bein! due for payment for more than ? years.

/ STATEMENT O$ ARREARS O$ STATUTOR4 DUES

'a( ,rrears of statutory dues for more than 4 months.'b( =hen such dues should be deposited *ith the concerned authorities.'c( etails of delay eceedin! 30 days in case of Provident und ues.'d( "easons for delay.

5 DETAILS IN TERMS O$ SIC6 COMPANIES

'a( =hether the company is re!istered for more than 5 years.'b( ,ccumulated losses bein! not less than 50B of its net *orth@disclosure in #,"%.



'c( isclosure in #,"% "eportin! in relation to cash losses for the current year andprevious year after ma&in! ad>ustments of items of non@cash nature.

PA4MENT O$ LOANS TO AN6S 7 $INANCIAL INSTITUTIONS

'a( =hether there is any default in repayment of loans - interests to any ban& or

financial institutions durin! the year.'b( ;ecessary disclosure in relation to ,mount of such default and period involved.

- DEALIN8 7 TRADIN8 IN SARES OR SECURITIES

'a( ,pplies to companies involved in dealin! and tradin! of shares and securities.'b( ;ecessary entries in the "e!ister of :nvestments in case of other companies.'c( #ompliance of 8ection 3?2, of the #ompanies ,ct 154 in case of Limited

#ompanies.'d( ;ecessary disclosures in inutes.

0 DETAILS O$ 8UARANTEE

'a( etails of 7uarantees !iven by the #ompany.'b( #ompliance of 8ection 25 3?2, of the #ompanies ,ct 154 in case of Limited

#ompany.'c( ;ecessary disclosure in inutes.

PRE$ERENTIAL ALLOTMENT O$ SARES

'a( etails of preferential allotment to parties and companies covered in the re!ister maintained u-s 301 of the ,ct.

'b( isclosure in relation to pricin! of such preferential allotment and concern -interest of the company in this re!ard. etermination of price based on earnin!s

dividends assets value !ood*ill etc.'c( #ompliance of 8A6: 7uidelines in case of Listed #ompany.'d( #ompliance of provisions of section C1'1,( of the #ompanies ,ct 154 in case

of Limited #ompany.

urther the follo*in! disclosures are also important)'a( #ompliance of special statute if any applicable in case of companies havin! specific

nature of activity e.!. compliance of "6: 7uidelines and Prudential ;orms in case of ;6# #ompany.

'b( ;otice or report of any fraud on or by the company durin! the year if any the natureand the amount involved thereunder.

Ca9tin: T"# ;<#; plac#= a cn=i<#;abl# ;#=pn=ibility n t"# a9<it; I! "# i= t<i=c"a;&# "i= <9ti#= 9n<#; t"# ;<#; p;p#;ly, "# ="9l< btain, n t"# n# "an<,t"# c1p#;atin ! t"# 'ana&#'#nt an< n t"# t"#;, t"# ;#=p#ct an< cn!i<#nc#! t"# '#'b#;= t %"' "# i= ;#p;tin& T"# a9<it; 'ay b# liabl#, "%#>#;, i! iti= !9n< t"at "# #?p;#==#< "i= pinin %it"9t t"# #?#;ci=# ! ;#a=nabl# ca;#an< =@ill, ; %it"9t applyin& "i= 'in< t t"# !act=, ; i! "# #?p;#==#< "i= pininin c'pl#t# <i=;#&a;< ! t"# !act=

++++++++++++++++++



Documents

Caro for Chartered Accountants (1)