Caro 2003 V/s 2015 3e5b18
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COMPANIES AUDITOR REPORT ORDER
A PROJECT REPORT ON
ANALYSIS OF COMPANIES AUDITOR REPORT ORDER SUBMITTED BY
M.COM-PART 2 (ADVANCED ANCY) 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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COMPANIES AUDITOR REPORT ORDER
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 ancy – 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. knowledge.
The information submitted is true and original to the best of my
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 ed 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 . 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 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
3.
IS IT MANDATORY TO COMPLY CARO – 2015? ................................................... 6
2.
CONCEPT OF CORPORATE DISCLOSURE............................................................. 5
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. 11.
REPORTING FORMAT OF CARO 2015 ............................................................... 19 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 s 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 groups of the financial statements
in order to report the results of the business activities of a corporate enterprise and also to
demonstrate the credibility, ability and reliability of its working .kohlerer' s Dictionary for ants 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 ing.
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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 order for 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 s 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 body corporate 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
(ii)
Insurance Company: CARO – 2015 shall not be applicable to an insurance
(iii)
(iv)
(v)
u/s 5(c) of the Banking Regulation Act, 1949.
company as defined under the Insurance Act, 1938.
Companies ed 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.
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.
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
(ii)
turnover of which as per its last profit and loss does not exceed ₹ 2
amount as may be prescribed which shall not be more than ₹ 5 crore; and
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 ed 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; And
b) 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 ; 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 ; 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 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, ed 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 s 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 on 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 ed 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 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 s 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 maintained 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 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’s Report) 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 maintained under Section 189 of the Companies Act, 2013: a) The principal amounts are repayable over varying periods upto five years, while the interest is 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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COMPANIES AUDITOR REPORT ORDER
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 s 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 or complete. 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 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 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 for which 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 ants) 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 s 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.
No clause in CARO 2015.
6. -No comments required to be given w.r.t. loans taken from parties covered in the maintained u/s 301 of 1956 Act and further disclosures w.r.t. loans given, reduced.
No clause in CARO 2015. 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-caro2015.html#sthash.WmZTQ2Ol.dpuf
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A PROJECT REPORT ON
ANALYSIS OF COMPANIES AUDITOR REPORT ORDER SUBMITTED BY
M.COM-PART 2 (ADVANCED ANCY) 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 ancy – 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. knowledge.
The information submitted is true and original to the best of my
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 ed 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 . 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 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
3.
IS IT MANDATORY TO COMPLY CARO – 2015? ................................................... 6
2.
CONCEPT OF CORPORATE DISCLOSURE............................................................. 5
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. 11.
REPORTING FORMAT OF CARO 2015 ............................................................... 19 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 s 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 groups of the financial statements
in order to report the results of the business activities of a corporate enterprise and also to
demonstrate the credibility, ability and reliability of its working .kohlerer' s Dictionary for ants 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 ing.
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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 order for 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 s 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 body corporate 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
(ii)
Insurance Company: CARO – 2015 shall not be applicable to an insurance
(iii)
(iv)
(v)
u/s 5(c) of the Banking Regulation Act, 1949.
company as defined under the Insurance Act, 1938.
Companies ed 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.
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.
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
(ii)
turnover of which as per its last profit and loss does not exceed ₹ 2
amount as may be prescribed which shall not be more than ₹ 5 crore; and
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 ed 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; And
b) 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 ; 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 ; 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 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, ed 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 s 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 on 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 ed 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 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 s 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 maintained 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 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’s Report) 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 maintained under Section 189 of the Companies Act, 2013: a) The principal amounts are repayable over varying periods upto five years, while the interest is 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 s 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 or complete. 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 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 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 for which 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 ants) 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 s 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.
No clause in CARO 2015.
6. -No comments required to be given w.r.t. loans taken from parties covered in the maintained u/s 301 of 1956 Act and further disclosures w.r.t. loans given, reduced.
No clause in CARO 2015. 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-caro2015.html#sthash.WmZTQ2Ol.dpuf
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