CORAA
Book a live demoStart free trial
CARO 2020 · Section 143(11) Companies Act 2013

CARO 2020.

The Companies (Auditor’s Report) Order 2020 prescribes 21 reporting clauses that every applicable auditor must address in the annexure to the auditor’s report. Each clause below opens a dedicated page with reporting requirements, verification checklist, sample observation language, and CORAA cross-references.

Clause (i)
Property, Plant and Equipment and Intangible Assets
Records, physical verification, title deeds, revaluation, and Benami proceedings.
Read clause →
Clause (ii)
Inventory
Physical verification of inventory and working-capital limit returns / quarterly statements.
Read clause →
Clause (iii)
Investments, Guarantees, Security, Loans / Advances
Loans, investments, guarantees, security given — terms, recovery, classification.
Read clause →
Clause (iv)
Compliance with Section 185 and 186
Loans, investments, guarantees, security to directors and connected persons.
Read clause →
Clause (v)
Public Deposits
Acceptance of deposits as defined under Sections 73 to 76 / Companies (Acceptance of Deposits) Rules 2014.
Read clause →
Clause (vi)
Cost Records
Maintenance of cost records under Section 148(1) where applicable.
Read clause →
Clause (vii)
Statutory Dues
Regularity of deposit and disputed dues.
Read clause →
Clause (viii)
Undisclosed Income Surrender
Income surrendered or disclosed under the Income-tax Act 1961 search proceedings.
Read clause →
Clause (ix)
Loans / Borrowings — Default, Willful Defaulter, End-use
Default in repayment to banks/FIs/government, willful defaulter status, end-use of borrowed funds.
Read clause →
Clause (x)
Money Raised — IPO / FPO / Preferential / Private Placement
End-use of money raised and compliance with Section 42 / 62 for private placement / preferential allotment.
Read clause →
Clause (xi)
Fraud
Fraud by or on the company, whistle-blower complaints, Section 143(12) reporting.
Read clause →
Clause (xii)
Nidhi Company
Specific compliances for Nidhi Companies — net-owned funds, deposit acceptance, deposit ratio.
Read clause →
Clause (xiii)
Related Party Transactions
Compliance with Section 177 (Audit Committee) and Section 188 (board / shareholder approval).
Read clause →
Clause (xiv)
Internal Audit System
Existence of internal audit system commensurate with the size and nature of business; consideration of IA reports.
Read clause →
Clause (xv)
Non-cash Transactions with Directors
Section 192 compliance for any non-cash transactions with directors or connected persons.
Read clause →
Clause (xvi)
NBFC / CIC Registration with RBI
Registration requirements under Section 45-IA of RBI Act; CIC compliance.
Read clause →
Clause (xvii)
Cash Losses
Cash losses in the current and immediately preceding financial year.
Read clause →
Clause (xviii)
Resignation of Statutory Auditors
Issues / objections / concerns raised by outgoing statutory auditors during the year.
Read clause →
Clause (xix)
Material Uncertainty on Going Concern
Going-concern viability on the basis of audited financials, expected dates of meeting liabilities.
Read clause →
Clause (xx)
CSR — Unspent and Ongoing Project Transfers
Section 135 unspent CSR amounts — transfers to specified funds and ongoing-project escrow.
Read clause →
Clause (xxi)
Qualifications / Adverse Remarks in Consolidated CARO
For holding companies — qualifications or adverse remarks by component auditors in their CARO reports.
Read clause →
Want CARO automated on every engagement?

CORAA generates clause-wise CARO observations from your ledger work.

See the CARO moduleInteractive navigatorDownload template