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ICAI releases Exposure Draft Guidance Note on CARO 2020

The Central Government, in exercise of the powers conferred, under sub-section (11) of section 143 of the Companies Act, 2013 (hereinafter referred to as "the Act"), issued the Companies (Auditor's Report) Order, 2020, (CARO 2020/ "the Order") vide Order number S.O. 849(E) dated 25th February 2020. CARO 2020 was initially applicable for audits of financial year 2019-20 and onwards. Subsequently, vide notifications dated 24th March 2020 and 17th December 2020, its applicab..

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Comparison between CARO 2020 and CARO 2016

From the Financial year 2021-22, CARO 2020 is replacing CARO 2016. What is the difference between CARO 2020 and CARO 2016? Is there any additional reporting requirement under CARO 2020? All these questions are answered below-   CARO 2020 CARO 2016 Key Changes Clause 1- Reporting on Property, Plant and Equipment and Intangible Assets (a) (A) whether the company is maintaining proper records show..

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All about CARO 2020

Introduction to CARO 2020 CARO 2020 is a new concept for issue of audit reports in case of statutory audits of companies under Companies Act, 2013. CARO 2020 has included additional reporting requirements after consultations with the National Financial Reporting Authority (NFRA). NFRA is an independent regulatory body for regulating the audit and accounting profession in India. The aim of CARO 2020 is to enhance the overall quality of reporting by the company auditors.   Applica..

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ICAI | CARO 2016 applicable for November 2021 Examinations

Board of Studies The Institute of Chartered Accountants of India 24th July, 2021 Important Announcement for IPCC /Intermediate & Final Students Applicability of CARO 2016 for November 2021 Examinations   This is to bring to the attention of the students that Companies (Auditor’s Report) Order, 2016 issued by Ministry of Corporate Affairs would be applicable for the IPCC (Opted out), Intermediate, Final (Old - Opted out ) and Final (New) examinations to be h..

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ICAI announces regarding further extension by the MCA on the applicability date of CARO 2020 to 1st April 2021

Corporate Laws & Corporate Governance Committee The Institute of Chartered Accountants of India 19th December, 2020 ANNOUNCEMENT CARO, 2020 Further extension for applicability by one year, i.e. up to 1st April, 2021.   This is to inform you that the Ministry of Corporate Affairs vide Order dated 17.12.2020 has extended the applicability date of Companies (Auditor’s Report) Order, 2020 for one more year, i.e. for the financial years commencing on or after the 1st ..

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Companies (Auditors Report) Order, 2020 (CARO 2020) - Additions, Omissions and Alterations

In exercise of the powers conferred by sub-section (11) of section 143 of the Companies Act, 2013 and in supersession of the Companies (Auditor's Report) Order, 2016, the Central Government, after consultation with the National Financial Reporting Authority constituted under section 132 of the Companies Act, 2013, has issued Companies (Auditor’s Report) Order, 2020 on 25th February, 2020. Every report made by the auditor under section 143 of the Companies Act on the accounts of ever..

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CARO 2020- Only borrow money when it’s going to make you money!

Untitled 1 In this third article, we take a closer look at some of the clauses that help providing more information to lenders / investors as they analyse the utilisation of the money raised and the governance in the entity that is raising the funds. Some of these clauses will also help credit and risk teams to better understand the financial position and performance of borrowers. Working capital financing It is estimated that a significant portion of financing..

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CARO 2020 - The devil is in the detail!

In the last article, we dealt with the applicability of CARO 2020 and covered the practical aspects to be kept in mind by companies and their auditors as they go about finalizing their audit opinion on the consolidated financial statements for the year ending 31 March 2021. In this article, we deal with the reporting requirements related to assets. Maintaining full particulars of property, plant, and equipment ('PPE') CARO 2020 largely retains the principles on which the repor..

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CARO 2020 - A Stitch in Time Saves Nine

The Central Government issued the Companies (Auditor’s Report) Order, 2020, (CARO 2020/ “the Order”), initially applicable for audits of the financial year 2019-20 and onwards. Subsequently, its applicability was deferred by one year and CARO 2020 is now applicable for audits of the financial year 2021 and onwards.  There is no significant change in the applicability of the Order when compared to the earlier order, except that CARO 2020 applies to consolidated financial..

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CARO 2020 - Enlarging Auditor's Responsibility

Recently Ministry of Corporate Affairs has come out with Companies (Auditor's Report) Order, 2020; along with increase in scope of many clauses and insertion of new clauses, there is also deletion of single clause. Therefore in this article we will analyze such clauses along with various illustrations. Firstly it was applicable to F.Y. 2019-20 but now it is applicable from F.Y. 2020-21. Accordingly lets look at what are insertion in it as per CARO, 2020; Illustration 1: Mr. A is au..

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MCA Guidelines to File the MCA E-form COVID-19 : CAR-2020 & Key Features

Introduction: Ministry of Corporate Affairs vide a notification dated 20.02.2020, to all the Corporates including Companies and LLPs both are expected and strongly advised to put in place an immediate plan to implement "Work from Home" Policy in their headquarters and field offices. • MCA has came up with a new web based form CAR (Companies Affirmation of Readiness towards COVID-19) • Due date of deployment and Filing is 23rd March, 2020. • Compliance Requirement..

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ICAI issues exposure draft of guidance note on CARO, 2020

Introduction 1. The Central Government, in exercise of the powers conferred, under subsection (11) of section 143 of the Companies Act, 2013 (hereinafter referred to as “the Act”), issued the Companies (Auditor’s Report) Order, 2020, (CARO, 2020/ “the Order”) vide Order No. S.O. 849(E) dated 25th February 2020. CARO, 2020 contains certain matters on which the auditors of companies (except auditors of those categories of companies which are specifically exempted u..

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What's new in CARO 2020?

The Ministry of corporate Affairs recently has issued the Companies (Auditor's Report) Order, 2020 on 25.02.2020, which is applicable for reporting on the financial statements of the companies for the financial year commencing on or after 1st April 2019 apparently to bring in line with The Companies Act, 2013. A visit to the circular will highlight the following. 1. The applicability Section 1: By and large the same as prescribed in the earlier CARO, 2016. 2. Matters to be included..

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