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AI Modules/Reporting/CARO 2020
Companies Act · ऑडिट रिपोर्ट· प्रतिवेदन

CARO 2020

21 रिपोर्टिंग clauses. 17 auto-drafted from books. 4 require ऑडिटर input.

CORAA CARO 2020 with सभी 21 clauses

CARO 2020 (Companies ऑडिटर's रिपोर्ट Order 2020) requires रिपोर्टिंग on 21 specific clauses across PPE, inventory, loans, deposits, statutory dues, आंतरिक नियंत्रण, fraud रिपोर्टिंग, and अधिक. CORAA auto-drafts 17 of the 21 clauses from books and लेजर डेटा. The remaining 4 require ऑडिटर judgment with documented evidence, physical verification, inventory verification, deposits अनुपालन, and fraud रिपोर्टिंग.

  • सभी 21 CARO clauses with sub-clauses rendered
  • 17 clauses auto-drafted from books, investments, statutory dues, default in repayment, आंतरिक ऑडिट
  • 4 manual clauses with ऑडिटर input, PPE physical verification, inventory verification, deposits, fraud
  • Clause 3(xi)(e), Rule 11(e) ratios variance disclosure auto-populated from Schedule III
  • Each clause anchored to its Companies Act paragraph reference
  • Pending vs पताed status per clause, पार्टनर sees what's outstanding
Two paths, one ledger

The old way, and ours.

Two paths to the same audit conclusion. One leaves traces; the other doesn't.

Traditional

The old way

  • -Senior पार्टनर समीक्षाएँ सभी 21 clauses against books one by one
  • -PPE clause 1 verified against स्थिर परिसंपत्ति register manually
  • -Inventory clause 2 reviewed against physical verification documents
  • -Statutory dues clause 7 chased through TDS, GST, PF, ESI लेजर separately
  • -Rule 11(e) ratios computed manually for variance disclosure
दिन of पार्टनर समय. Clauses sometimes addressed late, just before sign-off.
CORAA

On the Ledger

  • 17 auto-drafted clauses ready for पार्टनर समीक्षा on दिन 1
  • Investments, guarantees, securities (Clause 3), pulled from books
  • Sec 185 and Sec 186 अनुपालन (Clause 4), verified against loan लेजर
  • Statutory dues outstanding (Clause 7), auto-computed across TDS, GST, PF, ESI
  • Default in repayment (Clause 9), bank लेजर मिलान
  • Rule 11(e) variances pulled from Schedule III Ratios tab
21 CARO clauses ready for पार्टनर समीक्षा in two घंटे. NFRA-inspection defensible.
How it works

Three steps. Every trace logged.

Step 01

Books-derived clauses auto-draft

17 of the 21 CARO clauses derive from books and लेजर डेटा. CORAA reads the relevant लेजर (loans, investments, statutory dues, current ratio, debt-equity), checks अनुपालन against Companies Act paragraph references, and drafts each clause.

Step 02

Manual clauses prompt for ऑडिटर input

4 clauses require ऑडिटर input with documented evidence: Clause 1(c) PPE physical verification (ऑडिटर confirms with date), Clause 2 inventory physical verification (with discrepancy threshold), Clause 5 deposits अनुपालन, Clause 7 statutory dues partial confirmation, and Clause 11 fraud रिपोर्टिंग.

Step 03

Rule 11(e) variance disclosure

Clause 3(xi)(e) requires explanation for any of the 11 वित्तीय ratios with variance over 25% vs prior वर्ष. CORAA pulls the variances from the Schedule III Ratios tab and prompts the ऑडिटर for the explanation; the disclosure feeds Clause 3(xi)(e) directly.

Inside the module

What you actually get.

21 clauses with paragraph anchors

Every CARO clause is anchored to its Companies Act paragraph reference and CN 2022 (Guidance नहींte 2022) paragraph. The ऑडिटर knows exactly which statute is being addressed.

  • ›Clause 1: PPE and intangibles
  • ›Clause 2: Inventory verification
  • ›Clause 3: Investments, guarantees, securities
  • ›Clauses 4-21: each paragraph-anchored

17 auto-drafted clauses

Investments (3), Sec 185/186 अनुपालन (4), statutory dues (7), default in repayment (9), fund diversion (10), term loan application (11), आंतरिक ऑडिट (12), and others, सभी auto-drafted from books डेटा.

  • ›Investments, guarantees, securities
  • ›Sec 185 and Sec 186 अनुपालन
  • ›Statutory dues outstanding
  • ›Default in repayment of loans
  • ›Fund diversion check
  • ›Term loan application
  • ›Internal ऑडिट system

4 manual clauses with structured input

PPE physical verification (Clause 1(c)) requires the ऑडिटर to confirm verification date and discrepancies. Inventory verification (Clause 2) similar. Deposits (Clause 5) requires अनुपालन with Sec 73-76. Fraud (Clause 11) requires ऑडिटर की रिपोर्टing under Sec 143(12).

  • ›Clause 1(c) PPE: verification date and discrepancies
  • ›Clause 2 inventory: physical verification रिपोर्ट upload
  • ›Clause 5 deposits: Sec 73-76 अनुपालन
  • ›Clause 11 fraud: Sec 143(12) रिपोर्टिंग

Rule 11(e) variance disclosure

Clause 3(xi)(e) was added in 2021, requires explanation for any of 11 वित्तीय ratios with variance over 25%. CORAA pulls variances from Schedule III Ratios tab and prompts the ऑडिटर for each explanation.

  • ›Current ratio, Debt-equity, DSCR
  • ›ROE, Inventory turnover, Receivable turnover
  • ›Payable turnover, Net capital turnover
  • ›Net profit ratio, ROCE, ROI
  • ›Variance flagged at 25%
Frequently asked

Answers, up front.

17 of 21. Clauses 3 (investments and guarantees), 4 (Sec 185/186), 7 (statutory dues), 9 (default in repayment), 10 (fund diversion), 11 (term loan application), 12 (आंतरिक ऑडिट), 13 (Sec 188 RPT, when RPT list is set), 16 (registration under RBI), 17 (cash losses), 18 (ऑडिटर resignation), 19 (वित्तीय ratios), 20 (CSR), 21 (qualifications/adverse opinion). The remaining 4 require ऑडिटर input.
Clause 1(c) PPE physical verification (date and discrepancies above threshold), Clause 2 inventory physical verification (with discrepancy disclosure), Clause 5 deposits अनुपालन under Sec 73-76, and Clause 14 fraud रिपोर्टिंग under Sec 143(12). Each prompts the ऑडिटर for the specific evidence required by the Companies Act and the ICAI Guidance नहींte 2022.
CARO 2020 Rule 11(e) requires the ऑडिटर to रिपोर्ट on 11 वित्तीय ratios with explanation for any variance over 25% vs prior वर्ष. CORAA computes सभी 11 ratios from Schedule III डेटा, flags variances over 25%, and prompts the ऑडिटर for the explanation. The disclosure feeds Clause 3(xi)(e) and the Schedule III Ratios tab simultaneously.
Most clauses apply to private companies above the size thresholds. Exemptions: private companies with paid-up capital + reserves ≤ ₹1 crore, borrowings ≤ ₹1 crore from banks/FIs, and turnover ≤ ₹10 crore are exempt from CARO entirely. CORAA reads the thresholds from books and disables CARO if सभी three are met.
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CARO 2020, 21 Clauses, Auto-Drafted Audit Report | CORAA | CORAA