caro comparision

8/15/2019 CARO Comparision

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(ii) A$%+ deals ith the reportin re#irements hich ere present in CA$O, 2003 *#t have *een removed in CA$O 2015!

(iii) A$%+C lists o#t reportin re#irements in CA$O, 2015 hich are same as ere specified #nder CA$O, 2003!

PART A


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A Comparative st#d" of re#irements of CA$O, 2003 and CA$O, 20154

Parameters CARO, 2003 CARO, 2015 Ca!"es

A##$%&a'%$%t( &t shall appl" to ever" compan"incl#din a forein compan" as definedin section 591 of the Act, e/cept thefolloin 4+

&t shall appl" to ever" compan"incl#din a forein compan" as definedin cla#se (2) of section 2 of theCompanies Act, 2O13 e/cept +

&n addition to e/cl#sion of *anincompan", ins#rance compan" andcompanies ith charita*le o*7ectsfolloin companies are also e/cl#dedfrom p#rvie of CA$O4

(i) a anin compan" as defined incla#se (c) of section 5 of theanin $e#lation Act, 1998

(i) a *anin compan" as defined incla#se (c) of section 5 of theanin $e#lation Act, 199

(a) Open erson Compan"',

(*) 'mall Compan"',

(ii) an ins#rance compan" as definedin cla#se (21) of section 2 of the Act8

(ii) an ins#rance compan" as defined#nder the &ns#rance Act,193N)te or e/cl#sion of private limitedcompan", the ceilin of paid+#p

capital and reserve, and t#rnover remains #nchaned! oever, theceilin of o#tstandin loan has*een increased from 10 lahs to$s! 25 lah!


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(iii) a compan" licensed to operate#nder section 25 of the Act

(iii) a compan" licensed to operate#nder section of the Companies

Act8

(iv) a private limited compan" ith apaid #p capital and reserves notmore than 50 lah r#pees and hasnot accepted an" p#*lic depositand does not have loano#tstandin 10 lah r#pees or more from an" *an or financialinstit#tion and does not have at#rnover e/ceedin 5 crorer#pees!

(iv) a One erson Compan" asdefined #nder cla#se (62) of section 2 of the Companies Actand a small compan" as defined#nder cla#se (5) of section 2 of the -e Act8 and


(v) a private limited compan" ith apaid #p capital and reserves notmore than 50 lah r#pees andhich does not have loano#tstandin e/ceedin 25 lahr#pees from an" *an or financialinstit#tion and does not have at#rnover e/ceedin 5 crore r#peesat an" point of time d#rin the


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financial "ear!

Matters t) 'e %!&$*+e+ %! a*+%t)rs re#)rt

%.e+ Assets (a) :hether the compan" ismaintainin proper recordsshoin f#ll partic#lars, incl#din#antitative details and sit#ationof fi/ed assets;8

(a) :hether the compan" ismaintainin proper recordsshoin f#ll partic#lars, incl#din#antitative details and sit#ation of fi/ed assets;8

-o chane vis++vis CA$O, 2003!oever, the re#irement of reportinhether disposition of s#*stantial partof fi/ed assets has affected the oinconcern has *een dispensed ith!

(*) :hether these fi/ed assets have*een ph"sicall" verified *" themanaement at reasona*leintervals8 hether an" materialdiscrepancies ere noticed ons#ch verification and if so,hether the same have *een

properl" dealt ith in the *oos of acco#nt;8

(*) :hether these fi/ed assets have*een ph"sicall" verified *" themanaement at reasona*leintervals8 hether an" materialdiscrepancies ere noticed ons#ch verification and if so, hether the same have *een properl" dealt

ith in the *oos of acco#nt;

(c) &f a s#*stantial part of fi/ed assetshave *een disposed off d#rin the"ear, hether it has affected theoin concern;


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L)a!s :hether the compan" has ranted an"loans, sec#red or #nsec#red tocompanies, firms or other partiescovered in the reister maintained#nder section 19 of the -e Act! &f so,

CA$O 2015 deals onl" ith the loansranted *" the Compan", #nlieCA$O, 2003 hich also dealt ithloans taen *" the Compan"!

(a) as the compan" either rantedor taken an" loans, sec#red or #nsec#red to


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compan", sec#red or #nsec#red,are prima facie pre7#dicial to theinterest of the compan"8

compan" for recover" of theprincipal and interest8

interest of Compan" has *een doneaa" ith in the ne CA$O!

(c) :hether pa"ment of the principalamo#nt and interest are alsore#lar8

(d) if overd#e amo#nt is more thanone lah, hether reasona*lesteps have *een taen *" thecompan" for recover"


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I!ter!a$ C)!tr)$ &s there an ade#ate internal controlproced#re commens#rate ith the si>eof the compan" and the nat#re of its*#siness, for the p#rchase of inventor"

and fi/ed assets and for the sale of oods;! :hether there is a contin#infail#re to correct ma7or eanesses ininternal control;

&s there an ade#ate internal controls"stem commens#rate ith the si>e of the compan" and the nat#re of its*#siness, for the p#rchase of inventor"

and fi/ed assets and for the sale of oods and services;! :hether there isa contin#in fail#re to correct ma7or eanesses in internal control s"stem;

&n CA$O, 2003 a#ditor as re#ired toreport hether there as an ade#ateinternal control proced#re for p#rchaseof inventor", fi/ed assets and sale of

oods;

&n addition to a*ove CA$O, 2015re#ires a#ditor to report on ade#ac"of internal control on sale of servicesas ell!

Or+ers #asse+ '(C)*rts )r Tr%'*!a$s

&f an order has *een passed *"Compan" ?a oard hether samehas *een complied ith or not;

&f an order has *een passed *"Compan" ?a oard or -ationalCompan" ?a %ri*#nal or $eservean of &ndia or an" co#rt or an" other tri*#nal, hether the same has *eencomplied ith or not;

A#ditor is re#ired to report hether the order passed *" -ational Compan"?a %ri*#nal or $eserve an of &ndiaor an" Co#rt or an" other %ri*#nal has*een complied ith or not;

Stat*t)r( D*es (a) &s the compan" re#lar indepositin #ndisp#ted stat#tor"d#es incl#din , &nvestor @d#cation and rotection #nd,@mplo"ees' tate &ns#rance,&ncome+ta/, ales+ta/, :ealth%a/, C#stom =#t", @/cise =#t",

(a) &s the compan" re#lar indepositin #ndisp#ted stat#tor"d#es incl#din provident f#nd,emplo"ees'state ins#rance,income+ta/, sales+ta/, ealth ta/,service ta/, d#t" of c#stoms, d#t"of e/cise, val#e added ta/, cess

ervice %a/, al#e added ta/ have*een added in the list! oever, thereis no chane in reportin re#irements!

CA$O, 2015 re#ires an a#ditor toreport hether the amo#nt re#ired to*e transferred to investors ed#cation


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Cess and an" other stat#tor" d#esith the appropriate a#thoritiesand if not, the e/tent of thearrears of o#tstandin stat#tor"

d#es as at the last da" of thefinancial "ear concerned for aperiod of more than si/ monthsfrom the date the" *ecamepa"a*le, shall *e indicated *" thea#ditor!

and an" other stat#tor" d#es iththe appropriate a#thorities and if not, the e/tent of the arrears of o#tstandin stat#tor" d#es as at

the last da" of the financial "ear concerned for a period of morethan si/ months from the date the"*ecame pa"a*le, shall *eindicated *" the a#ditor

and protection f#nd in accordance iththe relevant provisions of theCompanies Act, 1956 (1 of 1956) andr#les made there #nder has *een

transferred to s#ch f#nd ithin time;


(*) &n case d#es of sales ta/


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(c) hether the amo#nt re#ired to *etransferred to investor ed#cation

and protection f#nd in accordanceith the relevant provisions of theCompanies Act, 1956 (1 of 1956)and r#les made there #nder has*een transferred to s#ch f#ndithin time!


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PART /

$eportin re#irements specified #nder CA$O, 2003, no removed in CA$O, 2015

Parameters Re#)rt%!" re*%reme!ts as s#e&%%e+ *!+er CARO 2003

Tra!sa&t%)!s t) 'e e!tere+

%!t) re"%ster ) &)!tra&t

(a) :hether transactions that need to *e entered into a reister in p#rs#ance of section 301 of the Old Act have

*een so entered8

(*) :hether each of these transactions have *een made at prices hich are reasona*le havin reard to theprevailin maret prices at the relevant time8

(%his information is re#ired onl" in case of transactions e/ceedin the val#e of five lah r#pees in respect of an"part" and in an" one financial "ear)!

I!ter!a$ C)!tr)$ )r s#e&%%e+&)m#a!%es

&n the case of listed companies ande and nat#re of its*#siness8

Ma%!te!a!&e ) +)&*me!tsre$at%!" t) $)a!s a+a!&e

:hether ade#ate doc#ments and records are maintained in cases here the compan" has ranted loans andadvances on the *asis of sec#rit" *" a" of plede of shares, de*ent#res and other sec#rities8 &f not, thedeficiencies to *e pointed o#t!


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C)m#$%a!&e 4%t S#e&%a$Stat*tes

:hether the provisions of an" special stat#te applica*le to chit f#nd have *een d#l" complied ith; &n respect of nidhi< m#t#al *enefit f#nd


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Preere!t%a$ a$$)tme!t ) sares

:hether the compan" has made an" preferential allotment of shares to parties and companies covered in the$eister maintained #nder section 301 of the Act and if so hether the price at hich shares have *een iss#ed ispre7#dicial to the interest of the compan"8

Creat%)! ) se&*r%t%es :hether sec#rities have *een created in respect of de*ent#res iss#ed;

Usa"e ) #r)&ee+s r)m sare%ss*e+

:hether the manaement has disclosed on the end #se of mone" raised *" p#*lic iss#es and the same has *eenverified;

W%t Warm Re"ar+s,

CA PARA6 RAVAL, Ame+a'a+

caro comparision

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