CA Sandeep Kanoi

The MCA has issued Companies (Auditor’s Report) Order,2015 vide order dated 10.04.2015. It shall come into force on the date of its publication  in the Official Gazette.  We have Compiled format of Such CARO 2015 Audit Report and also uploaded the same in word format at the end of our this article. Format of CARO 2015 Audit Report will be as follows:-


Annexure to the Auditors’ Report

The Annexure referred to in our report to the members of ______________the Company’) for the year Ended on _________. We report that:

S.No. Particulars Auditors Remark
(i) (a) whether the company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;
(b) 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;
(ii) (a) whether physical verification of inventory has been conducted at reasonable intervals by the management;
(b)    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;
(c)     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;
(iii) (iii) 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. If so,
(a)       whether receipt of the principal amount and interest arc also regular; and
(b)           if overdue amount is more than rupees one lakh, whether reasonable steps have been taken by the company for recovery of the principal and interest;
(iv) 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.
(v) 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? I I 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?
(vi) 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;
(vii) (a) 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.
(b)    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).
(c)     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 thereunder has been transferred to such fund within time.
(viii) 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;
(ix) 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;
(x) 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;
(xi) whether term loans were applied for the purpose for which the loans were obtained;
(xii) 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.



Place- __________

Date- ___________

for _______________Chartered AccountantsFirm’s registration number: __________________________


Membership number: ________

 Download CARO 2015 Audit Report in Word Format

Author Bio

More Under Company Law


  1. MUDIT AGARWAL says:

    Dear sir,

    For the year end as on 31.03.2015 caro -2015 applicable ya caro 2003 applicable in audit report of said period .

    Warm Thanks

    Mudit Agarwal

  2. Padmanabhan Gopathy says:

    MCA Notifies the Companies (Auditor’s Report) Order, 2015. – (10-04-2015)

    Dear Members,

    Please note that the Ministry of Corporate Affairs (MCA) has notified the Companies (Auditor’s Report) Order, 2015 on 10th April 2015. Click on the following URL for the text of the aforesaid Order.

    Chairman, Auditing and Assurance Standards Board

  3. CA Sandeep Bangalore says:

    dear Sir,

    for FY 2013-14
    caro is not applicable.

    since in new companies act 2013, still caro is not notified.

    Please confirm.


    CA Sandeep

Leave a Comment

Your email address will not be published. Required fields are marked *