Hi Shalu!

As per amendment notification dated 15th September 2022:

The definition of small company has been amended. The amended definition provides that "Small Company means a company having paid up share capital upto 4 crore and turnover upto 40 crore. 

The above said notification clearly specified that it shall have effect from the date of their publication of this notification in the Official Gazette i.e. 15th September 2022.

Therefore, in my view the same would be the effective date CARO 2020. Hence, the Audit Reports to be prepared after the said amendment would have effect of the amendment.

Very well state @juhee jee.

I would like to share the format for CARO-2022

We report that:

1. Fixed Asset:

1. The company has maintained proper records showing full particulars, including quantitative details and situation of its fixed assets.
2. As explained to us, fixed assets have been physically verified by the management at reasonable intervals; no material discrepancies were noticed on such verification.
3. The title deeds of immovable properties are held in the name of the company.

2. Inventory:

As explained to us, inventories have been physically verified during the year by the management at reasonable intervals. No material discrepancy was noticed on physical verification of stocks by the management as compared to book records.

3. Loans, Guarantee and Advances given:

The company has granted loans to ………parties covered in the register maintained under section 189 of the Companies Act, 2013

1. The terms and conditions of the grant of such loans are not prejudicial to the company’s interest;
2. The schedule of repayment of principal and payment of interest has been stipulated and in such cases the borrowers have been regular in repayment of principal and interest.

or

The terms of arrangement do not stipulate any repayment schedule and the loans are repayable on demand with interest.

• There are no overdue amounts in respect of the loans granted to the parties listed in the register maintained under section 189 of the Act.

or

Since the term of arrangement do not stipulate any repayment schedule and the loans are repayable on demand, no question of overdue amounts will arise in respect of the loans granted to the parties listed in the register maintained under section 189 of the Act.

or

Amounts are overdue in respect of above loans. The total amount overdue for more than ninety days is……….and reasonable steps have been taken by the company for recovery of the principal and interest.

or

Amounts are overdue is respect of above loans. But there is no amounts overdue for more than ninety days. Reasonable steps have been taken by the company for recovery of the principal and interest.

                                                            OR

According to the information and explanations given to us and on the basis of our examination of the books of account, the Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties listed in the register maintained under Section 189 of the Companies Act, 2013.  Consequently, the provisions of clauses iii (a), (b) and (c)of the order are not applicable to the Company.

4. Loans, Guarantee and Advances to Director of Company:

In respect of loans, investments, guarantees, and security, provisions of section 185 and 186 of the Companies Act, 2013 have been complied with.

Or

The company has complied with provisions of section 185