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COMPANIES AUDITOR REPORT ORDER

1

A PROJECT REPORT ON

ANALYSIS OF COMPANIES AUDITOR REPORT ORDER

SUBMITTED BY

M.COM-PART 2 (ADVANCED ACCOUNTANCY)

SEM - 4 ROLL NO. -17

ACADEMIC YEAR

2015-16

PROJECT GUIDE

PROF. RASIKA DESAI

SUBMITTED TO

UNIVERSITY OF MUMBAI

VIDYA PRASARAK MANDAL’S

K.G. JOSHI COLLEGE OF ARTS, &

N. G. BEDEKAR COLLEGE OF COMMERCE,

CHENDANI BUNDER ROAD,

THANE WEST-400601.

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DECLARATION

VIDYA PRASARAK MANDAL’S

K.G. JOSHI COLLEGE OF ARTS, &

N. G. BEDEKAR COLLEGE OF COMMERCE,

CHENDANI BUNDER ROAD,

THANE WEST-400601.

I FIONA JAWAHAR FERNANDO of K.G. Joshi College of Arts,

& N. G. Bedekar College of Commerce, M.Com Advanced accountancy – Part 2

Semester 4 hereby declare that I have completed the project on ANALYSIS OF

COMPANIES AUDITOR REPORT ORDER in academic year of 2015-2016.

The information submitted is true and original to the best of my

knowledge.

Signature of the student,

DATED: / /2016

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Acknowledgement

I owe a great many thanks to a great many people who helped and supported

me during the writing of this project.

I express my thanks to the Principal Dr. (Mrs.) Shakuntala A. Singh,

coordinator Mr. D. M. Murdeshwar and Librarian Faculty of, K.G. Joshi College

of Arts and N.G. Bedekar College of Commerce, Thane for extending their

support.

My deepest thanks to Lecturer Ms. RASIKA DESAI Ma’am the Guide of the

project for guiding and correcting various documents with attention and care. She has

taken pain to go through the project and make necessary correction as and when

needed.

I would also thank our Institution and our faculty members without whom this

project would have been a distant reality. I also extend our heartfelt thanks to our

family and well-wishers.

Last but not the least, I am thankful to the University of Mumbai who gave me

the opportunity to work on this project as a part of our syllabus.

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TABLE OF CONTENTS

1. BACKGROUND ............................................................................................................... 5

2. CONCEPT OF CORPORATE DISCLOSURE............................................................. 5

3. IS IT MANDATORY TO COMPLY CARO – 2015? ................................................... 6

4. FROM WHICH FINANCIAL YEAR CARO – 2015 IS APPLICABLE? .................. 6

5. TYPE OF COMPANIES COVERED UNDER THE CARO – 2015 ........................... 6

6. COMPANIES WHICH ARE EXCLUDED FROM APPLICABILITY OF CARO –

2015............................................................................................................................................ 7

7. WHICH MATTERS ARE REQUIRED TO BE INCLUDED IN AUDITORS

REPORT? ................................................................................................................................. 9

8. REASONS TO BE STATED FOR UNFAVOURABLE OR QUALIFIED ANSWERS

.................................................................................................................................................. 11

9. COMPARISON BETWEEN CARO 2003 AND CARO 2015 .................................... 12

-KEY CHANGES

IN

CARO: ............................................................................................ 12

10. REPORTING FORMAT OF CARO 2015 ............................................................... 19

11. INTRODUCTION TO TATA STEEL LTD. ........................................................... 21

- HISTORY ......................................................................................................................... 21

- CARO 2003 (2011-12) ...................................................................................................... 22

- CARO 2015 (2014-15) ...................................................................................................... 26

12. FINDINGS ................................................................................................................... 31

WELIOGRAPHY .................................................................................................................. 35

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1. BACKGROUND

CARO – COMPANIES (AUDITOR’S REPORT) ORDER, 2003 issued by the Central

Government as per the power granted under section 227(4A) of the Companies Act, 1956 is

applicable to an auditor report submitted after 31st December 2003. The Ministry of Corporate

Affairs has published CARO’2015 on 10th April 2015 which will come into force on the date

of its publication in official gazette. CARO’2015 will be applicable to companies commencing

its financial year on or after 1st April 2014. According to 143, the auditor is required to report

on certain matters only if he is not satisfied after his examination of the accounts but after this

new order, the auditor has to make a statement on each of the specified matters likewise in case

of Govt. companies, this order is in addition to the directions of the Comptroller and Auditor

General in India.

2. CONCEPT OF CORPORATE DISCLOSURE

Corporate disclosure is a process through which business enterprises communicate with

external parties. It is nothing but the communication of financial information of the activities

of the undertaking to the interested parties for facilitating their economic decisions. It is a

system of communication between the management and user groups of the financial statements

in order to report the results of the business activities of a corporate enterprise and also todemonstrate the credibility, accountability and reliability of its working .kohlerer' s Dictionary

for Accountants defines it as an explanation, or exhibit, attached to a financial statement, or

embodied in a report containing a fact, opinion or detail required or helpful in interpretation of

the statement or the report.

'Corporate Disclosure' or 'Financial Reporting' connotes communication of financial statements

and related information from an enterprise to third parties including shareholders, creditors,

customers, governmental agencies and the public. It is the movement of information from the

private domain (of management) into the public domain.' Corporate disclosure is that aspect of

financial reporting which has to do with the presentation of descriptive or supplementary data

as distinguished from the general form of financial statements. Thus disclosure means reporting

of qualitative and quantitative information of financial and non-financial nature regarding the

reporting entity to outsiders for the purpose of their analysis and decision- making. Hence,

corporate disclosure or financial reporting is a subset of communication component of

accounting.

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3. IS IT MANDATORY TO COMPLY CARO – 2015?

Yes! In section 143(11) of CA, 2013 it is clearly stated that the Central Government may orderfor the inclusion of a Statement on specified matters in the Auditor’s Report for specified class

or description of Companies. Accordingly, CARO – 2015 is issued by the CG in pursuance

with the provisions of subsection (11) of section 143 as an additional matters to be included in

auditors report. Therefore, CARO – 2015 should be complied by the Statutory Auditor of every

Company on which it applies.

4. FROM WHICH FINANCIAL YEAR CARO – 2015 IS

APPLICABLE?

Every report made by the auditor in pursuance with the provisions of section 143 of CA, 2013

for Financial Year commencing on or after first day of April, 2014 should include CARO –

2015. Hence, the Companies (Auditor’s Report) Order, 2015 is applicable from FY 2014-15

and the matters specified therein shall be included in each report made by auditor u/s 143 on

the accounts of every company to which CARO – 2015 applies.

5. TYPE OF COMPANIES COVERED UNDER THE CARO – 2015

The Companies (Auditor’s Report) Order, 2015 shall apply to every company including a

foreign company as defined in clause (42) of section 2 of the Companies Act, 2013.

According to section 2(42) of CA, 2013, Foreign Company means any company or bodycorporate incorporated outside India which—

(a) Has a place of business in India whether by itself or through an agent, physically or through

electronic mode; And

(b) Conducts any business activity in India in any other manner.

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6. COMPANIES WHICH ARE EXCLUDED FROM

APPLICABILITY OF CARO – 2015

All types of Companies specified in Paragraph 2 of CARO – 2015 are specifically exempted

from application of CARO. In other words, CARO – 2015 applies to all Companies except

certain categories of Companies specifically exempted therein.

Accordingly, following are the class of companies whose auditors are not required to comment

on matters specified in CARO – 2015.

(i) Banking Company: CARO – 2015 shall not apply to a banking company as defined

u/s 5(c) of the Banking Regulation Act, 1949.

(ii) Insurance Company: CARO – 2015 shall not be applicable to an insurance

company as defined under the Insurance Act, 1938.

(iii) Companies registered with Charitable Objects: Any company which has been

incorporated and licensed to operate under section 8 of CA, 2013 shall not be

required to comply with CARO – 2015.

(iv) One Person Company: A One Person Company (OPC) as defined under clause

(62) of section 2 of CA, 2013 is not covered under CARO – 2015. OPC means a

company which has only one person as a member.

(v) Small Company: A small company as defined under section 2(85) of the

Companies Act, 2013 is excluded from the scope of CARO – 2015. According to

section 2(85) of CA, 2013 small company means a company, other than a public

company,—

(i)

Paid-up share capital of which does not exceed ₹ 50 lakhs or such higher

amount as may be prescribed which shall not be more than ₹ 5 crore; and

(ii) turnover of which as per its last profit and loss account does not exceed ₹ 2

crore or such higher amount as may be prescribed which shall not be more

than ₹ 20 crore:

Note that the definition of Small Company has been amended vide the Companies (Removal of

Difficulties) Order, 2015 [S.O. 504(E)] W.e.f. 13th February, 2015.

However, following companies will not qualify as a Small Company:

(A) A holding company or a subsidiary company;

(B) A company registered under section 8; Or(C) A company or body corporate governed by any special Act;

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(vi) Private Company: The auditors of the following private limited companies are not

required to comment on the matters prescribed under CARO – 2015:

a) A private company with a paid up capital and reserves not more than ₹ 50 lakhs;

Andb) Such private company does not have loan outstanding exceeding ₹ 25 lakhs from

any bank or financial institution; And

c) Such private company does not have a turnover exceeding ₹ 5 crore at any point

of time during the financial year.

You should note that the concept of OPC and Small Company were not existed under the

companies Act, 1956 and such class of companies are newly introduced under the provisions

of the Companies Act, 2013.

Additionally, the scope of applicability of CARO – 2015 covers more number of companies in

compare to the previous CARO – 2003. There are mainly two factors which has widened the

application of CARO- 2015 viz. Small Companies and Foreign Companies.

A) Small Companies: As we know that the concept of Small Company is newly

introduced in the Companies Act, 2013. Further, the definition of Small Company

has been amended vide the Companies (Removal of Difficulties) Order, 2015 W.e.f.

13th February, 2015.

According to the revised definition of Small Company, the both conditions as prescribed in sub

clause (i) and (ii) of clause (85) of section 2 i.e. paid-up share capital and turnover criteria

should be met by company to fall under the definition of Small Company.

Thus, fewer companies are expected to meet the criteria to fall under the definition of Small

Company and therefore be outside the scope of applicability of CARO – 2015.

B) Foreign Company: In compare to the Companies Act, 1956, the definition of

Foreign Company has also been widened in section 2(42) of the Companies Act,

2013. Now, a company shall become foreign company if such company or body

corporate incorporated outside India has a place of business in India whether by

itself or through an agent, physically or through electronic mode and conducts any

business activity in India in any other manner.

Hence, more companies would get covered under the applicability of CARO – 2015.

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7. WHICH MATTERS ARE REQUIRED TO BE INCLUDED

IN AUDITORS REPORT?

As compared to the CARO – 2003, the reporting requirement under the CARO – 2015 have

been significantly reduced from 21 clauses to 12 clauses. As per paragraph 3 of CARO – 2015,following certain matters shall be included in the report made by the auditor under section 143

of the Companies Act, for the financial year commencing on or after 1st April, 2014:

1) Fixed Assets [Clause 3(i)]:

a) Proper Records: Whether the company is maintaining proper records showing full

particulars, including quantitative details and situation of fixed assets;

b) Physical Verification: Whether these fixed assets have been physically verified by the

management at reasonable intervals;

c) Whether any material discrepancies were noticed on such verification and if so, whether the

same have been properly dealt with in the books of account;

2) Inventory [Clause 3(ii)]:

a) Physical Verification: Whether physical verification of inventory has been conducted at

reasonable intervals by the management;

b) Adequacy of Procedure: Are the procedures of physical verification of inventory followed

by the management reasonable and adequate in relation to the size of the company and the

nature of its business. If not, the inadequacies in such procedures should be reported;

c) Adequacy of Records: Whether the company is maintaining proper records of inventory and

whether any material discrepancies were noticed on physical verification and if so, whether the

same have been properly dealt with in the books of account;

3) Loan given by Company [Clause 3(iii)]:

Whether the company has granted any loans, secured or unsecured to companies, firms or other

parties covered in the register maintained under section 189 of the Companies Act. If so,

a) Regular Recovery: Whether receipt of the principal amount and interest are also regular; And

b) Steps for Recovery: If overdue amount is more than rupees one lakh, whether reasonable

steps have been taken by the company for recovery of the principal and interest;

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4) Internal Control System [Clause 3(iv)]: Adequate Internal Control System: Is there an

adequate internal control system commensurate with the size of the company and the nature of

its business, for the purchase of inventory and fixed assets and for the sale of goods and services.

Correction of Weaknesses: Whether there is a continuing failure to correct major weaknesses

in internal control system.

5) Deposits [Clause 3(v)]: In case the company has accepted deposits, whether the following

has been complied with:

Directives issued by the Reserve Bank of India; And

The provisions of sections 73 to 76 or any other relevant provisions of the Companies

Act, 2013 and the rules framed thereunder;

Orders, if any, passed by Company Law Board (CLB) or National Company Law

Tribunal (NCLT) or Reserve Bank of India (RBI) or any court or any other tribunal.

However, if any of the above not complied with, the nature of contraventions should be stated.

6) Cost Records [Clause 3(vi)]: If the Central Government has specified maintenance of cost

records under section 148(1) of the Companies Act, 2013 whether such accounts and records

have been made and maintained.

7) Statutory Dues [Clause 3(vii)]:

a) Statutory Dues for more than 6 Months: Is the company regular in depositing undisputed

statutory dues including provident fund, employees’ state insurance, income tax, sales tax,

wealth tax, service tax, duty of customs, duty of excise, value added tax, cess and any other

statutory dues with the appropriate authorities and if not, the extent of the 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 became payable, shall be indicated by the auditor.

b) Dispute for Tax and Duty: In case dues of income tax or sales tax or wealth tax or service

tax or duty of customs or duty of excise or value added tax or cess have not been deposited onaccount of any dispute, then the amounts involved and the forum where dispute is pending shall

be mentioned. Note that a mere representation to the concerned Department shall not constitute

a dispute.

c) Transfer of Funds to IEPF: Whether the amount required to be transferred to investor

education and protection fund in accordance with the relevant provisions of the Companies Act,

1956 (1 of 1956) and rules made thereunder has been transferred to such fund within time.

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8) Cash and Accumulated Losses [Clause 3(viii)]: Whether in case of a company which has

been registered for a period not less than 5 years: Accumulated Losses: Its accumulated losses

at the end of the financial year are not less than 50% of its Net Worth; And

Cash Losses: Whether such company has incurred cash losses in such financial year and in the

immediately preceding financial year.

9) Repayment of Dues [Clause 3 (ix)]: Whether the company has defaulted in repayment of

dues to a financial institution or bank or debenture holders? If yes, the period and amount of

default to be reported;

10) Guarantee for Loans [Clause 3(x)]: Whether the company has given any guarantee for

loans taken by others from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company;

11) Usage of Term Loan [Clause 3(xi)]: Whether term loans were applied for the purpose for

which the loans were obtained;

12) Reporting of Fraud [Clause 3(xii)]: Whether any fraud on or by the company has been

noticed or reported during the year; If yes, the nature and the amount involved is to be indicated.

8. REASONS TO BE STATED FOR UNFAVOURABLE OR

QUALIFIED ANSWERS

1) Unfavourable or Qualified Answer: Where, in the auditor’s report, the answer to any of the

questions referred to in paragraph 3 is unfavourable or qualified, the auditor’s report shall also

state the reasons for such unfavourable or qualified answer, as the case may be.

2) Unable to Express Opinion: Where the auditor is unable to express any opinion in answer to

a particular question, his report shall indicate such fact together with the reasons why it is not

possible for him to give an answer to such question.

Hence, as per paragraph 4 of CARO – 2015, the auditor must give the reasons for unfavourable

or qualified answers to the above 12 clauses referred in paragraph 3 of CARO – 2015. However,

if the auditor is not able to express his opinion the fact and reason for the same should be

indicated in the report.

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9. COMPARISON BETWEEN CARO 2003 AND CARO 2015 This order is applicable from the date of its publication in Official Gazette to every auditor’s

report made by the auditor on accounts of the Company (to which Order applies) for financial

year commencing on or after April 1, 2014.

-KEY CHANGES IN CARO:

-Provisions of Companies Act, 1956 replaced with corresponding notified provisions of

Companies Act, 2013.

-Deletion of certain clauses of CARO, 2003 such as clause v, vii, xii, xiii, xiv, xvii, xviii, xix,

xx.

-Exemption of CARO applicability to One Person Company as per section 2(62) and small

company as per section 2(85) of the 2013 Act.

-Separate clause regarding amount required to be transferred to IEPF. -Effect on going concern

on disposal of substantial fixed assets, need not be given

-No comments required to be given w.r.t. loans taken from parties covered in the registermaintained u/s 301 of 1956 Act and further disclosures w.r.t. loans given, reduced.

-Mandatory disclosure regarding amounts involved in case of disputed specified statutory dues

and forum where such dispute is pending.

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10. REPORTING FORMAT OF CARO 2015

To the Members of XYZ Limited

We refer to our report on the financial statements of XYZ Limited (the Company) for the year

ended March 31, 2015 issued on _________. The Gazette version of the Companies (Auditor’sReport) Order, 2015 (CARO 2015) was not available in the Official Gazette of India on the date

of our report. Accordingly, our report does not contain an Annexure on the matters specified in

paragraphs 3 and 4 of CARO 2015.

Subsequent to the issuance of our report dated _______, CARO 2015 has been published in the

Official Gazette of India. While it is not obligatory on our part to issue our report on the matters

specified in paragraphs 3 and 4 of CARO 2015, based on the discussions with the Company, as

a measure of good governance, we give hereinafter a statement on the matters specified in

paragraphs 3 and 4 of CARO 2015. This may be treated as an Annexure to our aforesaid Report

on standalone financial statements for the year ended March 31, 2015.

i. In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars including quantitative

details and situation of fixed assets on the basis of available information.

b) As explained to us, all the fixed assets have been physically verified by the management in

a phased periodical manner, which in our opinion is reasonable, having regard to the size of the

Company and nature of its assets. No material discrepancies were noticed on such physical

verification.

ii. In respect of its inventories:

a) The inventories have been physically verified during the year by the management. In our

opinion, the frequency of verification is reasonable. b) In our opinion and according to the information and explanations given to us, the procedures

of physical verification of inventories followed by the management are reasonable and adequate

in relation to the size of the Company and the nature of its business.

c) The Company has maintained proper records of inventories. As per the information and

explanation given to us, no material discrepancies were noticed on physical verification.

iii. In respect of the loans, secured or unsecured, granted by the Company to companies,

firms or other parties covered in the register maintained under Section 189 of the Companies

Act, 2013:

a) The principal amounts are repayable over varying periods upto five years, while the interestis payable annually, both at the discretion of the Company.

b) In respect of the said loans and interest thereon, there are no overdue amounts.

iv. In our opinion and according to the information and explanations given to us, the Company

has an adequate internal control system commensurate with its size and the nature of its

business for the purchase of inventory and fixed assets and for the sale of goods and services.

During the course of our audit, we have not observed any continuing failure to correct major

weaknesses in such internal control system.

v. According to the information and explanations given to us, the Company has not accepted

any deposit from the public. Therefore, the provisions of Clause (v) of paragraph 3 of the

CARO 2015 are not applicable to the Company.

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vi. We have broadly reviewed the cost records maintained by the Company pursuant to the

Companies (Cost Records and Audit) Rules, 2014 prescribed by the Central Government under

Section 148(1)(d) of the Companies Act, 2013 and are of the opinion that, prima facie, the

prescribed accounts and cost records have been maintained. We have, however, not made a

detailed examination of the cost records with a view to determine whether they are accurate orcomplete.

vii. In respect of statutory dues:

a) According to the records of the Company, undisputed statutory dues including Provident

Fund, Employees’ State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, duty of

Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues have been

generally regularly deposited with the appropriate authorities. According to the information and

explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were

outstanding as at March 31, 2015 for a period of more than six months from the date of

becoming payable.

b) According to records of company, there are no dues of income tax or sales tax or wealth tax

or service tax or duty of customs or duty of excise or value added tax or cess have not been

deposited on account of any dispute.

c) According to the records of the Company, there are no amounts that are due to be transferred

to the Investor Education and Protection Fund in accordance with the relevant provisions of the

Companies Act, 1956 (1 of 1956) and rules made thereunder has been transferred to such fund

within time.

viii. The Company does not have accumulated losses at the end of the financial year. The

Company has not incurred cash losses during the financial year covered by the audit and in the

immediately preceding financial year.ix. Based on our audit procedures and according to the information and explanations given to

us, we are of the opinion that the Company has not defaulted in repayment of dues to financial

institutions, banks and debenture holders.

x. The Company has given guarantees for loans taken by others from banks and financial

institutions. According to the information and explanations given to us, we are of the opinion

that the terms and conditions thereof are not prima facie prejudicial to the interest of the

Company.

xi. The Company has raised new term loans during the year. The term loans outstanding at the

beginning of the year and those raised during the year have been applied for the purposes forwhich they were raised.

xii. In our opinion and according to the information and explanations given to us, no fraud by

the Company and no material fraud on the Company has been noticed or reported during the

year.

For ___________

(Chartered Accountants)

FRN: __________

MRN: _________

Date: __________

Place:__________

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11. INTRODUCTION TO TATA STEEL LTD.

Tata Steel Limited (formerly Tata Iron and Steel Company Limited (TISCO)) is an

Indian multinational steel-making company headquartered in Mumbai, Maharashtra, India,

and a subsidiary of the Tata Group. It was the 11th largest steel producing company in the

world in 2013, with an annual crude steel capacity of 25.3 million tonnes, and the second

largest steel company in India (measured by domestic production) with an annual capacity of

9.7 million tonnes after SAIL.

Tata Steel has manufacturing operations in 26 countries, including Australia, China, India, the

Netherlands, Singapore, Thailand and the United Kingdom, and employs around 80,500

people. Its largest plant is located in Jamshedpur, Jharkhand. In 2007 Tata Steel acquired the

UK-based steel maker Corus which was the largest international acquisition by an Indian

company till that date. It was ranked 486th in the 2014 Fortune Global 500 ranking of the

world's biggest corporations. It was the seventh most valuable Indian brand of 2013 as

per Brand Finance.

HISTORY

Tata Iron and Steel Company was established by Dorabji Tata on 26 August 1907, as part of

his father Jamsetji's Tata Group. By 1939 it operated the largest steel plant in the British

Empire. The company launched a major modernization and expansion program in 1951. Later

in 1958, the program was upgraded to 2 Million metric tonnes per annum (MTPA) project. By

1970, the company employed around 40,000 people at Jamshedpur, with a further 20,000 in the

neighbouring coal mines. In 1971 and 1979, there were unsuccessful attempts to nationalise the

company. In 1990, it started expansion plan and established its subsidiary Tata Inc. in New

York. The company changed its name from TISCO to Tata Steel in 2005.Tata Steel on

Thursday(12 Feb 2015) announced buying three strip product services centres in Sweden,

Finland and Norway from SSAB to strengthen its offering in Nordic region. The company,

however, did not disclose value of the transactions.

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CARO 2003 (2011-12)

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CARO 2015 (2014-15)

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12. FINDINGS

This order is applicable from the date of its publication in Official Gazette to every auditor’s

report made by the auditor on accounts of the Company (to which Order applies) for financial

year commencing on or after April 1, 2014.

CARO 2003 is applicable from 12th JUNE 2003 date of its publication in Official Gazette.

KEY CHANGES IN CARO:

1.

-Provisions of Companies Act, 1956 replaced with corresponding notified

provisions of Companies Act, 2013.

2. -Deletion of certain clauses of CARO, 2003 such as clause v, vii, xii, xiii, xiv, xvii,

xviii, xix, xx.

Only 12 clauses are specified in CARO 2015 instead of 18 (22 for others) as in CARO 2003.

CARO 2003 effective from 12th June, 2003 (date of publication in Official Gazette) by virtue

of power conferred by sub-section (4A) of Section 227 of the Companies Act, 1956 (hereinafter

referred to as “Act, 1956”) wherein the order specified 22 matters which were required to be

specified in the Auditor’s Report.

Simultaneously, by virtue of sub-section (11) of Section 143 of Companies Act,

2013 (hereinafter referred to as “Act, 2013”), the Central Government has conferred its powers

and have issued an order to be called as Companies (Auditor’s Report) Order, 2015 (referred to

as “CARO, 2015”) dated 10th April, 2015 specifying only 13 matter required to be specified in

the Auditor’s Report for the financial year ending 31st March, 2015.

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3. -Exemption of CARO applicability to One Person Company as per section 2(62)

and small company as per section 2(85) of the 2013 Act.

4. -Separate clause regarding amount required to be transferred to IEPF.

No clause in CARO 2003.

5. -Effect on going concern on disposal of substantial fixed assets, need not be given.


6. -No comments required to be given w.r.t. loans taken from parties covered in the

register maintained u/s 301 of 1956 Act and further disclosures w.r.t. loans given,

reduced.


7. -Mandatory disclosure regarding amounts involved in case of disputed specified

statutory dues and forum where such dispute is pending.

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In CARO 2015

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In Caro 2003

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WELIOGRAPHY

SEARCH ENGINE – GOOGLE

WEBSITES -

https://notes.aubsp.com/corporate-law/caro-2015-companies-auditors-report-order/

http://www.caclubindia.com/books/companies_auditors_report_order_2003/Chapter1.asp

http://taxguru.in/company-law/caro-2015-reporting-format.html#sthash.hq3yL1PI.dpuf

http://shodhganga.inflibnet.ac.in/bitstream/10603/7104/11/11_chapter%202.pdf

http://www.tatasteel.com/

http://www.tatasteel.com/investors/annual-report-2014-15/annual-report-2014-15.pdf

http://taxguru.in/company-law/brief-comparison-between-caro-2003-and-caro-

2015.html#sthash.WmZTQ2Ol.dpuf

caro 2003 v/s 2015

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