This document outlines the key changes made to the CARO (Companies Auditor's Report Order) reporting requirements in India. It summarizes the evolution from the CARO 2003 to CARO 2015, including changes made to the number of reporting points (from 21 to 12) and the relevant sections of the Companies Act that govern the order. It also provides definitions of key terms like One Person Company, Small Company, and outlines the 12 points that are required to be reported under CARO 2015, such as maintenance of accounts, statutory dues, loans, internal controls, and fraud.

4. CARO – 2003
As per Sec 227 (4A)
Companies Act, 1956
(Reporting on 21 points)
Supersession
(C.G after consultation with
ICAI)
CARO – 2015
As per Sec 143 (11)
Companies Act, 2013
(Reporting on 12 points)

8. Any company or Body Corporate
incorporated outside India which :-
Has a place of business in India
whether by itself or through an agent,
physically or through electronic mode;
Conduct any business activity in
India in any other manner

9. Banking
Company
• Defined in
Sec.5(c) of
Banking
Regulation
Act, 1949
Insurance
Company
• Defined in
Sec. 4 of
Insurance
Act, 1938
Section 8
• Company
Licensed to
operate as
per
Companies
Act,2013
One Person
Company*
• Defined in
Sec. 2 (62)
Small
Company*
• Defined in
Sec. 2 (85)

10. As per clause (62) of Section 2
O.P.C means a Company which has only one
person as a member

11. As per clause (85) of Section 2 Small
Company means a Company other then a
public company :-
Paid-up Share capital not exceed ‘50 Lacs /
such higher amount as may be prescribed
which shall not be more then ‘5 Crores
Turnover of which as per its last P&L A/c
does not exceed ‘2 Crores / such higher
amount which shall not be more then ‘20 Cr.

12. Provided that nothing in this clause shall
apply to:-
A Holding Company or a Subsidiary
Company;
A Company registered Under Section 8;
A Company or Body Corporate governed by
any Specific Act

13. Every Report
made by an
Auditor
under
Section 143
of the
Companies
Act, 2013
On the
accounts of
every
company
examined by
him
Order
applies for
the Financial
year
commencing
on or after
1st April,2014

14. A. Fixed Assets
B. Inventory
C. Granted Loan
D. Internal
Control System
H.Accumulated
&Incurred Cash
Losses
G. Deposit
Of
Statutory Dues
F. Maintenance
Of
Cost Record
E. Accepted
Deposit’s
I. Default in
Repayment Of
Dues
J. Given Any
Guarantee For
Loan
K. Term Loan
L. Frauds

15. A. Fixed Assets :-
Maintaining
proper
records
showing full
particulars
Includes
Quantitative
details &
situation of
Fixed Assets
Physical
Verification by
Management
Material
Discrepancies‘
Properly Dealt

16. B. Inventory :-
Physical
Verification by
Management
Inadequacies
should be
Reported
Maintaining
proper
records
showing full
particulars
Material
Discrepancies‘
noticed on
Physical
Verification
properly Dealt
in Book of
Account’s

17. C. Granted Loans :-
Granting
any Loans
(Secured or
Un-Secured)
to
Company,
Firm or
other
parties
Covered in
the register
maintained
under
Section 189
of the
Companies
Act,2013
Regular
Receipt of
Principal &
Interest
Amount
Overdue
Amount > 1
Lack
Reasonable
steps for
recovery
Principal &
Interest
Amount

18. D. Internal Control
System :-
Is there an
adequate
Internal
Control
System :-
*Size of
Company;
*Nature of
Business
Purchase of
Inventory &
Fixed Assets
& Sale of
Good’s &
Services
Continuing
Failure to
correct
major
Weaknesses

19. E. Accepted
Deposits:-
In case
company has
accepted
deposit’s
As per
Directive
issued by the
R.B.I
Provisions of
Section 73 to
76 or any
other
relevant of
the
Companies
Act,2013
If Not, nature
of
contravention
should be
stated

20. F. Maintenance
of Cost Record’s:-
Specified by
the Central
Government
Under Sub-
Sec. (1) of
Sec. 148 of
Companies
Act
Whether
such
accounts &
Record’s
have been
made &
maintained

21. G. Deposit of
Statutory Dues:-
Regular
Depositing
Undistributed
Statutory
Dues
If, Not
Extent of the
arrears of
Outstanding at
the last day of
the Financial
year, Concerned
for a period of
<6 Months

22. Provident
Fund
Employees
State
Insurance
Income Tax Service Tax
Wealth - Tax
Sales - Tax
Duty of
Custom &
Excise
Value Added
Tax
Cess & Any
other’s

23. • Dispute is pending shall be
mentioned
• A mere representation not
constitute a Dispute
Dues not
been
Deposited
• Investor Education and
Protection Fund
• Relevant Provision of the
Companies Act and rules made
there under transferred within
time
Amount
Transferred

24. H. Accumulated &
incurred cash losses:-
Registration <
5 Year’s
Accumulated
Loss > 50% of
Net Worth
Incurred Cash
Losses (in
such Financial
Year &
Immediately
preceding
financial year)

25. I. Defaulted in
Repayment of Dues:-
Due’s from
financial
institution
/ Bank /
Debenture
Holder’s.
Yes
Period &
Amount of
Default
Report

26. J. Given Any Guarantee
for Loan’s: -
Loan’s taken
by other’s
From Bank
or Financial
Institution
Terms &
Condition
are
Prejudicial to
the interest
of the
Company

27. K. Term Loans: -
Whether
Term
Loans
Applied
for the
purpose
For
which
loans
were
Obtained

28. L. Fraud : -
Any Fraud
on or by
the
company
noticed or
reported
If, Yes
Nature &
the
amount
involved is
to be
indicated