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AI Modules/Reporting/CARO 2020
କମ୍ପାନୀ ଅଧିନିୟମ · ଅଡିଟ୍ ରିପୋର୍ଟ· प्रतिवेदन

CARO 2020

21 ରିପୋର୍ଟିଂ clauses. 17 auto-drafted from books. 4 require ଅଡିଟର୍ input.

CORAA CARO 2020 with all 21 clauses

CARO 2020 (Companies ଅଡିଟରଙ୍କ ରିପୋର୍ଟ Order 2020) requires ରିପୋର୍ଟିଂ on 21 specific clauses across PPE, ଇନ୍‌ଭେଣ୍ଟରୀ, loans, deposits, statutory dues, internal controls, fraud ରିପୋର୍ଟିଂ, and more. CORAA auto-drafts 17 of the 21 clauses from books and ଲେଜର୍ data. The remaining 4 require ଅଡିଟର୍ judgment with documented evidence, physical verification, ଇନ୍‌ଭେଣ୍ଟରୀ verification, deposits ଅନୁପାଳନ, and fraud ରିପୋର୍ଟିଂ.

  • ସବୁ 21 CARO clauses with sub-clauses rendered
  • 17 clauses auto-drafted from books, investments, statutory dues, default in repayment, ଆଭ୍ୟନ୍ତରୀଣ ଅଡିଟ୍
  • 4 manual clauses with ଅଡିଟର୍ input, PPE physical verification, ଇନ୍‌ଭେଣ୍ଟରୀ verification, deposits, fraud
  • Clause 3(xi)(e), Rule 11(e) ratios variance disclosure auto-populated from Schedule III
  • Each clause anchored to its କମ୍ପାନୀ ଅଧିନିୟମ paragraph reference
  • Pending vs Addressed status per clause, partner 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 partner reviews all 21 clauses against books one by one
  • -PPE clause 1 verified against fixed asset register manually
  • -ଇନ୍‌ଭେଣ୍ଟରୀ clause 2 reviewed against physical verification documents
  • -Statutory dues clause 7 chased through TDS, GST, PF, ESI ଲେଜର୍ separately
  • -Rule 11(e) ratios computed manually for variance disclosure
ଦିନ of partner ସମୟ. Clauses sometimes addressed late, just before sign-off.
CORAA

On the Ledger

  • 17 auto-drafted clauses ready for partner review on ଦିନ 1
  • Investments, guarantees, securities (Clause 3), pulled from books
  • Sec 185 and Sec 186 ଅନୁପାଳନ (Clause 4), verified against loan ଲେଜର୍
  • Statutory dues outstanding (Clause 7), auto-computed across TDS, GST, PF, ESI
  • Default in repayment (Clause 9), bank ଲେଜର୍ ସମନ୍ୱୟ
  • Rule 11(e) variances pulled from Schedule III Ratios tab
21 CARO clauses ready for partner review in two ଘଣ୍ଟା. 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 ଲେଜର୍ data. CORAA reads the relevant ଲେଜର୍ (loans, investments, statutory dues, current ratio, debt-equity), checks ଅନୁପାଳନ against କମ୍ପାନୀ ଅଧିନିୟମ paragraph references, and drafts each clause.

Step 02

Manual clauses prompt for ଅଡିଟର୍ input

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

Step 03

Rule 11(e) variance disclosure

Clause 3(xi)(e) requires explanation for any of the 11 financial ratios with variance over 25% vs prior year. CORAA pulls the variances from the Schedule III Ratios tab and prompts the ଅଡିଟର୍ 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 କମ୍ପାନୀ ଅଧିନିୟମ paragraph reference and CN 2022 (Guidance Note 2022) paragraph. The ଅଡିଟର୍ knows exactly which statute is being addressed.

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

17 auto-drafted clauses

Investments (3), Sec 185/186 ଅନୁପାଳନ (4), statutory dues (7), default in repayment (9), fund diversion (10), term loan application (11), ଆଭ୍ୟନ୍ତରୀଣ ଅଡିଟ୍ (12), and others, all auto-drafted from books data.

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

4 manual clauses with structured input

PPE physical verification (Clause 1(c)) requires the ଅଡିଟର୍ to confirm verification date and discrepancies. ଇନ୍‌ଭେଣ୍ଟରୀ verification (Clause 2) similar. Deposits (Clause 5) requires ଅନୁପାଳନ with Sec 73-76. Fraud (Clause 11) requires ଅଡିଟର୍'s ରିପୋର୍ଟିଂ under Sec 143(12).

  • ›Clause 1(c) PPE: verification date and discrepancies
  • ›Clause 2 ଇନ୍‌ଭେଣ୍ଟରୀ: physical verification ରିପୋର୍ଟ upload
  • ›Clause 5 deposits: Sec 73-76 ଅନୁପାଳନ
  • ›Clause 11 fraud: Sec 143(12) ରିପୋର୍ଟିଂ

Rule 11(e) variance disclosure

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

  • ›Current ratio, Debt-equity, DSCR
  • ›ROE, ଇନ୍‌ଭେଣ୍ଟରୀ 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 (ଆଭ୍ୟନ୍ତରୀଣ ଅଡିଟ୍), 13 (Sec 188 RPT, when RPT list is set), 16 (registration under RBI), 17 (cash losses), 18 (ଅଡିଟର୍ resignation), 19 (financial ratios), 20 (CSR), 21 (qualifications/adverse opinion). The remaining 4 require ଅଡିଟର୍ input.
Clause 1(c) PPE physical verification (date and discrepancies above threshold), Clause 2 ଇନ୍‌ଭେଣ୍ଟରୀ physical verification (with discrepancy disclosure), Clause 5 deposits ଅନୁପାଳନ under Sec 73-76, and Clause 14 fraud ରିପୋର୍ଟିଂ under Sec 143(12). Each prompts the ଅଡିଟର୍ for the specific evidence required by the କମ୍ପାନୀ ଅଧିନିୟମ and the ICAI Guidance Note 2022.
CARO 2020 Rule 11(e) requires the ଅଡିଟର୍ to ରିପୋର୍ଟ on 11 financial ratios with explanation for any variance over 25% vs prior year. CORAA computes all 11 ratios from Schedule III data, flags variances over 25%, and prompts the ଅଡିଟର୍ 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 all three are met.
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CARO 2020, 21 Clauses, Auto-Drafted Audit Report | CORAA | CORAA