Caro

COMPANIES (AUDITOR’S REPORT) ORDER, 2003

APPRAISAL NOTE

Applicability (Any of the Following)

1. Paid – up capital and reserves of more than 50 Lacs.

2. Has accepted any public deposit.

3. Turnover exceeding Rs.5 Crores.

4. Outstanding Loans of Rs.10 Lacs or more from bank(s) and financial institution(s).

Reserve: The following explanations are important in this regard:

a) Reserve shall include both capital as well as revenue reserves

b) Revaluation reserve should also be taken into consideration while determining the figure of reserves.

c) The credit balance of Profit & Loss Account should also be considered as a part of reserve and the debit balance of P & L A/c should be reduced from the figure of revenue reserves. However, miscellaneous expenditure to the extent not written off should not be deducted as such.

Turnover: shall mean as the aggregate amount for which sales are effected by the company. The term “sales effected” would include sale of goods as well as services rendered by the company.

Compliance Note of CARO, 2003

1. FIXED ASSETS

a) Check whether the Register of Fixed Assets has been maintained or not.

b) Check whether the necessary entries have been duly incorporated in the said register or not.

c) Disclosure in the CARO in regard to disposal of fixed assets substantially, during the year.

d) Compliance of section 293(1) (a) of the Companies Act, 1956 in case of Limited Companies.

e) Minutes of the Board and General Meeting (in compliance of section 293).

2. LOANS – UNDER SECTION 301 OF THE COMPANIES ACT, 1956

a) Loan includes Secured or Unsecured, taken or granted (u/s 301).

b) Check whether the Register of Contracts or Arrangements / Interest or Concern u/s 301, made or not.

c) Check whether the necessary entries have been duly incorporate in the said register or not.

d) Checklist of Relatives and Form No. 24AA by all the Directors.

e) Disclosure in the CARO in...