CARO 2020. MCA notifies Companies (Auditor’s Report) Order 2020. Read Key Changes / Highlights
Note: Due to Covid-19 virus, MCA has extended the applicability of CARO 2020 from the financial year 2020-2021 instead of being applicable from the financial year 2019-2020
MCA in place of existing the Companies (Auditor’s Report) Order, 2016, has notified CARO 2020 after consultation with the National Financial Reporting Authority constituted under section 132 of the Companies Act, 2013.
Every report made by the auditor under section 143 of the Companies Act on the accounts of every company audited by him, to which this Order applies, for the financial years commencing on or after the 1st April, 2019, shall contain report on matters specified in paragraphs 3 and 4 of the CARO 2020.
In CARO 2016, clauses in paragraphs 3 were 16 whereas in CARO 2020 in paragraph 3 there are 21 reporting clauses
Unlike CARO 2016, which required reporting on all fixed assets, new reporting requirements pays attention to Property, Plant, Equipment and intangible assets.
Reporting on revaluation of Property, Plant and Equipments by company
Reporting of proceedings under the Benami Transactions (Prohibition) Act, 1988.
Reporting of compliances if company was sanctioned working capital limits in excess of five crore rupees or more from banks or financial institutions.
Reporting of investments in or providing of any guarantee or security or granting any loans or advances to companies, firms, Limited Liability Partnerships or any other parties.
Reporting of compliances with RBI directives and the provisions the Companies Act with respect to deemed deposits.
Reporting with respect to transactions not recorded in the books of account surrendered or disclosed as income in the income tax proceedings.
Comprehensive reporting requirement for default in the repayment of loans / other borrowings or in the payment of interest
Reporting on treatment by auditor of whistle-blower complaints received during the year by the company
Reporting on internal audit system
Reporting on cash losses
Reporting on resignation of the statutory auditors
Reporting on uncertainty of company capable of meeting its liabilities
Reporting transfer of unspent CSR amount to Fund specified in Schedule VII
Reporting on qualifications or adverse remarks by the auditors in the CARO reports of companies included in the consolidated financial statements
Empanelment to act as ICAI exam observers for January 2027 CA Examination. Last date to apply is 20.11.2026 Empanelment of…
No arrest under GST- Major decision taken in 57th Meeting of the GST Council on 8th October 2026 PRESS RELEASE…
A subsequent Apex Court ruling on the substantive issue cannot retrospectively make an act done in compliance of a binding…
Interest payment on mobilisation advance to NHAI not liable for deduction of tax at source u/s 194A - ITAT Interest…
Typographical error in turnover declared in ITR was not as a mistake apparent from the record u/s 154 when AO…
Ground taken by assessee that he was not aware of the order cannot be brushed aside so lightly in absence…
View Comments
Big unlisted companies operating under sec. 8 of the CA 2013 should not be exempted from the new CARO 2020. Please make it mandatory for such companies to adopt CARO 2020 as they have vast amount of immovable properties and show an annual turnover of more than Rs. 2000.
I mean Rs. 2000 crores