CARO 2015 Vs CARO 2003(Incl Amendments made in 2004)

[Sumit Binani]

Dear Professional Friends

Please find the revised comparison after incorporating the Amendments made in CARO 2003 in the year 2004.

I am also enclosing a doc file containing the sheet so that you could take a print and use it as a reference.

Thanks

Sumit Binani

9830810003 

Comparative Chart of CARO 2015 Vs CARO 2003 (Amended in 2004)
Title	CARO 2003 read with CARO Amendment 2004	CARO 2015	Remarks
Compiled by CA Sumit Binani & CS Mamta Binani
Applicability	Every company including a foreign company as defined in section 591 of the Act	Every company including a foreign company as defined in clause (42) of section 2 of the Companies Act, 2013 (18 of 2013) [hereinafter referred to as the Companies Act.	Retained
Exceptions	Banking Company, Insurance Company, Sec 25 Company and a Private Company with a paid up capital and reserves not more than Rs 50 lacs and which does not have loan outstanding exceeding Rs 25 lacs from any bank or financial institution and does not have a turnover exceeding Rs 5 crores at any point of time during the financial year.	Banking Company, Insurance Company, Section 8 Company, Small Company, One Person Company and Private Companies (with a paid up capital and reserves not more than Rs.50 lacs and which does not have loan outstanding exceeding Rs.25 lacs from any bank or financial institution and does not have a turnover exceeding Rs.5 crores at any point of time during the financial year.	Amendments highlighted in red colour
Commencement	1st day of July, 2003	From the date of publication in the official gazette.	-
Definitions	Provided Definitions of Chit Fund, Nidhi & Mutual Benefit Companies	Does not provide any definitions	Amendments highlighted in red colour
Auditor’s Report to contain matters	Every report made by the auditor under section 227 of Act, on the accounts of every company examined by him to which this Order applies for every financial year ending on any day on or after the commencement of this Order, shall contain the matters specified in paragraphs 4 and 5 (given in the following paragraphs)	Every report made by the auditor under section 143 of the Companies Act, on the accounts of every company examined by him to which this Order applies for the financial year commencing on or after 1st April, 2014, shall contain the matters specified in the paragraphs 3 and 4 (given in the following paragraphs)	Amendments highlighted in red colour
Matters to be included in the Auditor’s Report
Fixed Assets	Whether the company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets	Whether the company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets	Retained
	Whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of account	Whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so, whether the same have been properly dealt with in the books of account	Retained
	If a substantial part of fixed assets have been disposed off during the year, whether it has affected the going concern	--	Removed
Inventory	Whether physical verification of inventory has been conducted at reasonable intervals by the management	Whether physical verification of inventory has been conducted at reasonable intervals by the management	Retained
	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	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	Retained
	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 account	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 account	Retained
Loans	Has the company granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act. If so, give the number of parties and amount involved in the transactions	Whether the company has granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act	Underlined portion now deleted
	Whether the rate of interest and other terms and conditions of loans given by the company, secured or unsecured, are prima facie prejudicial to the interest of the company	--	Removed
	Whether receipt of the principal amount and interest are also regular	Whether receipt of the principal amount and interest are also regular	Retained
	If overdue amount is more than Rs 1 lac, whether reasonable steps have been taken by the company for recovery of the principal and interest	If overdue amount is more than Rs.1 lac, whether reasonable steps have been taken by the company for recovery of the principal and interest	Retained
	has the company taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Act. If so, give the number of parties and the amount involved in the transactions	--	Removed
	whether the rate of interest and other terms and conditions of loans taken by the company, secured or unsecured, are prima facie prejudicial to the interest of the company	--	Removed
	whether payment of the principal amount and interest are also regular	--	Removed
Internal Control	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. Whether there is a continuing failure to correct major weaknesses in 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. Whether there is a continuing failure to correct major weaknesses in internal control system	Retained
Transactions with entities in which directors are interested	whether the particulars of contracts or arrangements referred to in section 301 of the Act have been entered in the register required to be maintained under that section	--	Removed
	whether transactions made in pursuance of such contracts or arrangements have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time	--	Removed
Deposits	In case the company has accepted deposits from the public, whether the directives issued by the Reserve Bank of India and the provisions of sections 58A, 58AA or any other relevant provisions of the Act and the rules framed there under, where applicable, have been complied with. If not, the nature of contraventions should be stated; 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 whether the same has been complied with or not?	In case the company has accepted deposits, whether the 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 and the rules framed there under, where applicable, have been complied with? If not, the nature of contraventions should be stated; 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, whether the same has been complied with or not?	Retained
Internal Audit System	In the case of listed companies and/or other companies having a paid-up capital and reserves exceeding Rs.50 lakhs as at the commencement of the financial year concerned, or having an average annual turnover exceeding five crore rupees for a period of three consecutive financial years immediately preceding the financial year concerned, whether the company has an internal audit system commensurate with its size and nature of its business	--	Removed
Cost Record	Where maintenance of cost records has been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Act, whether such accounts and records have been made and maintained	Where maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act, whether such accounts and records have been made and maintained	Retained
Statutory Dues	Is the company regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees' State Insurance, Income-tax, Sales-tax, Wealth Tax, Service tax, Custom Duty, Excise Duty, 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	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	Amendments highlighted in red colour
	In case dues of Income tax/ Sales tax /Wealth tax/ Service tax/ Custom duty/ Excise duty/ cess have not been deposited on account of any dispute, then the amounts involved and the forum where dispute is pending shall be mentioned.	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 account of any dispute, then the amounts involved and the forum where dispute is pending shall be mentioned. (A mere representation to the concerned Department shall not constitute a dispute)	Amendments highlighted in red colour
		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 there under has been transferred to such fund within time	Amendments highlighted in red colour
Extent of Accumulated Losses	Whether in case of a company which has been registered for a period not less than five years, its accumulated losses at the end of the financial year are  not less than fifty per cent of its net worth and whether it has incurred cash losses in such financial year and in the in the immediately preceding financial year	Whether in case of a company which has been registered for a period not less than five years, its accumulated losses at the end of the financial year are not less than fifty per cent of its net worth and whether it has incurred cash losses in such financial year and in the immediately preceding financial year	Retained
Repayment of Dues	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	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	Retained
Documents & Records for Loans and Advances	Whether adequate documents and records are maintained in cases where the company has granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities; If not, the deficiencies to be pointed out	--	Removed
Provisions relating to Special Statute	Prescribed reporting pertaining to Chit Fund/Nidhi & Mutual Benefit Company	--	Removed
Records etc for Companies dealing and trading in securities	If the company is dealing or trading in shares, securities, debentures and other investments, whether proper records have been maintained of the transactions and contracts and whether timely entries have been made therein; also whether the shares, securities, debentures and other investments have been held by the company, in its own name except to the extent of the exemption, if any, granted under section 49 of the Act	--	Removed
Guarantee by the Company	Whether the company has given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company	Whether the company has given any guarantee for loans taken by others from bank or financial institutions, the terms and conditions whereof are prejudicial to the interest of the company	Retained
Term Loans-Application	Whether term loans were applied for the purpose for which the loans were obtained	Whether term loans were applied for the purpose for which the loans were obtained	Retained
Tenure of usage of funds raised	Whether the funds raised on short-term basis have been used for long term investment; If yes, the nature and amount is to be indicated	--	Removed
Preferential Allotment of Shares	Whether the company has made any preferential allotment of shares to parties and companies covered in the Register maintained under section 301 of the Act and if so whether the price at which shares have been issued is prejudicial to the interest of the company	--	Removed
Security on Debenture	Whether security or charge has  have been created in respect of debentures issued?	--	Removed
Disclosure of end use of public money raised	Whether the management has disclosed on the end use of money raised by public issues and the same has been verified	--	Removed
Fraud	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	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	Retained
Reasons to be stated for unfavorable or qualified answers	Where, in the auditor's report, the answer to any of the questions referred above is unfavorable or qualified, the auditor's report shall also state the reasons for such unfavorable or qualified answer, as the case may be	Where, in the auditor's report, the answer to any of the questions referred to above is unfavorable or qualified, the auditor's report shall also state the reasons for such unfavorable or qualified answer, as the case may be	Retained
	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.	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.	Retained