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Recently Institute of Chartered Accountants of India had clarified on the applicability of CARO 2003 to the financial statements of companies for the financial year 2014-15. It was clarified by ICAI that The Companies Act, 1956 has ceased to have effect from 01st April, 2014. As a corollary, the Companies (Auditor’s Report) Order, 2003 issued under section 227(4A) of the said Act also ceases to have effect from the said date.    

The Ministry of Corporate Affairs (MCA) has by notification dated 10-04-2015, notified “the Companies (Auditors report) Order, 2015 (CARO 2015) under section 143(11) of the Companies Act, 2013. The notification states that CARO 2003 has been omitted and CARO 2015 has been issued after consultation with ICAI.

It shall apply to financial year commencing on or after 1st April, 2014

As per Clause 2 of CARO 2015, Every report made by the auditor under section 143 of the Companies Act, on the accounts of every company examined by him to which this Order applies for the financial year commencing on or after 1st April, 2014, shall contain the matters specified in paragraphs 3 and 4.

Companies Covered
As per Clause 1(2) it shall apply to every company including a foreign company. The following exceptions has been mentioned:

(i) a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949.

(ii) an insurance company as defined under the Insurance Act,1938.

(iii) a company licensed to operate under section 8 of the Companies Act;

(iv) a One Person Company as defined under clause (62) of section 2 of the Companies Act and a small company as defined under clause (85) of section 2 of the Companies Act; and

(v) a private limited company with a paid up capital and reserves not more than rupees fifty lakh and which does not have loan outstanding exceeding rupees twenty five lakh from any bank or financial institution and does not have a turnover exceeding rupees five crore at any point of time during the financial year.

Download the Fillable CARO-2015 in MS Word Format Click Here >>

CARO-2015 and CARO-2003 Para-wise Comparison Click Here >>

MCA Notifies the Companies (Auditors report) Order, 2015 (CARO 2015) for Financial years 2014-15 |10-04-2015|