CARO Audit Report 2015 Draft Format

By | August 16, 2015

Draft Specimen of CARO Audit Report 2015

Annexure to the Auditors’ Report

[Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ of our Report of even date to the members of ABC Company Limited on the accounts of the company for the year ended 31st March, 2015]

On the basis of such checks as we considered appropriate and according to the information and Explanations given to us during the course of our audit, we report that:

 (i) In respect of its fixed assets:

  1. The Company has maintained proper records showing full particulars, including quantitative details and situation of the fixed assets.
  2. As explained to us, fixed assets have been physically verified by the management during the year in accordance with the phased programme of verification adopted by the management which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification. 

(ii) In respect of its inventory:

  1. As explained to us, the inventories of finished goods, semi-finished goods, stores, spare parts and raw materials were physically verified at regular intervals/ (at the end of the year) by the Management. In case of inventories lying with third parties, certificates of stocks holding have been received.
  2. In our opinion and according to the information and explanation given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business.
  3. .In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification of stocks as compared to book records. ( or  In our opinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories. The discrepancies noticed on physical verification of stocks as compared to book records were not material and have been properly dealt with in the books of account.)

(iii) In respect of loans, secured or unsecured, granted to the parties covered  in register maintained under section 189 of the Companies Act 2013:

  1. According to the information and explanations given to us, the Company has granted unsecured loans to 2 companies, (_ firms or other parties)  covered in the Register maintained under Section 189 of the Companies Act, 2013.
  2. The principal amounts and  interest are being received regularly as per stipulations ;
  3. In respect of the aforesaid loans, there is no overdue amount more than Rs. one lakh;

OR

(According to the information and explanations given to us, the Company has not granted any loans to companies, firms or other parties covered in the Register maintained  under Section 189 of the Companies Act, 2013;  and therefore paragraph 3(iii ) of the Order is not applicable. )

(iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business for the purchase of inventory, 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 internal control.

(v)  In our opinion and according to the information and explanation given to us , the company has complied with (the Directives of the Reserve Bank of India- applicable to NBFC), the provisions of section 73 to 76 and  other relevant provisions of the Companies Act and the Companies (Acceptance of Deposit) Rules, 2014 as applicable, with regards to the deposits accepted from members and the public ( If not the nature of contraventions should be stated); No order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal with regard to the Deposits. ( If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal, then to report whether the same has been complied with or not?)

OR

[The company has not received any public deposits during the year].

(vi) We have broadly reviewed the cost records maintained by the Company pursuant to the the Rules made by the Central Government under Section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie the prescribed cost records have been made and  maintained. We have, however, not made a detailed examination of these records with a view to determining whether they are accurate or complete.

OR

[ As informed to us, the Central Government has not prescribed maintenance of cost records under sub-section (1) of Section 148 of the Act, in respect of the activities carried on by the Company.]

(vii) In respect of statutory dues:

  • According to the records of the company and information and explanations given to us, the Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, employees state insurance (ESI), Investor Education and Protection Fund, Income-tax, Tax deducted at sources, Tax collected at source, Professional Tax, Sales Tax, value added tax (VAT), Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it,  with the appropriate authorities.

 (b)According to the information and explanations given to us, there were no undisputed

amounts payable in respect of Income-tax, Wealth Tax, Custom Duty, Excise Duty, sales tax, VAT, Cess and other material statutory dues in arrears /were outstanding as at 31 March, 2015 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us,  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 by the company.

OR

(There has not been an occasion in case of the Company during the year under report

to transfer any sums to the Investor Education and Protection Fund. The question of reporting delay in transferring such sums does not arise as at 31st March, 2015, the Company has been registered for less than 5 years; hence, clause 3(vii)(c) of the Order is not applicable to it)

[or,  following are the instances of delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company

or  there were no amounts which required to be transferred by the Company to the Investor Education and Protection Fund]

(viii) The company does not have the accumulated losses at the end of financial year. The company has not incurred any Cash losses during the financial covered by our Audit and the immediately preceding financial year.  ( OR    The accumulated losses of the company are not more than 50% of its Net Worth.  The company has incurred any Cash loss of Rs.__ during the financial covered by our Audit and cash loss of Rs. _ in the immediately preceding financial year. )

In arriving at the accumulated losses and net worth as above , we  have considered the quantification which are quantifiable in the audit reports of the years to which these losses pertain.

(ix) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to financial institutions,  banks and debenture holders.

   (OR) In our opinion and according to the information and explanations given to us, the Company has defaulted in the repayment of Principal Loan Amount Rs._______ and Interest Amount Rs. ______ as on 31.03.2015 in respect of loan of Rs. ______ availed from ______Bank. The default  is for ____ months as on ______.)

(x)  In our opinion, and according to the information and the explanation given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions during the year; ( OR The company has given guarantees  in connection with loans taken by others from banks or financial institutions. In our opinion, and according to the information and the explanation given to us, the terms and conditions of the guarantees given are not prejudicial to the interest of the company. )

(xi)  The Term loans taken by the company have been applied for the purpose for which they were raised. ( OR  The company has not obtained any term loan during the year, so this para of order is not applicable.)

(xii) To the best of our knowledge 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 ________ ASSOCIATES

Chartered Accountants

(Firm Registration No. : ________)

_______________

Proprietor/Partner

(Membership No.: ___________ )

Place:

Date:     __/ ___/2015

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