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CARO Report: Companies (Auditor's Report) Order

Complete guide to CARO 2020. Companies (Auditor's Report) Order, reporting requirements, and checklist.

GetYourCA Team
8 April 2026·Updated 8 April 20262 min read12.5K views

CARO Report#

  • Companies (Auditor's Report) Order, 2020
  • Issued under Section 143(11) of Companies Act, 2013
  • Applicable from FY 2019-20

Applicability#

Applies to all companies:

  • Listed companies
  • Public companies (turnover > ₹50 crore or borrowings > ₹25 crore)
  • Private companies (if above thresholds)
  • Wholly-owned subsidiaries

Reporting Areas#

1. Property, Plant & Equipment

  • Title deeds
  • Revaluation
  • Immovable property

2. Inventory

  • Physical verification
  • Procedure

3. Loans

  • Loans given
  • Security and terms

4. Deposits

  • Deposits accepted
  • Compliance with RBI/other laws

5. Internal Controls

  • Internal controls adequacy
  • Internal audit findings

6. Statutory Dues

  • PF, ESI, GST, etc.
  • Delays in payment

7. Undisclosed Income

  • Deposits with banks
  • Investment details

8. Borrowings

  • Debentures
  • Term loans

9. NPA

  • Loans and advances
  • Asset classification

10. Loans to Directors

  • Loans to directors/relatives

11. Public Deposits

  • Acceptance of deposits

12. Cash Losses

  • Cash losses in current year

13. Resignation of Auditors

  • Resignation details

Format#

  • Separate statement
  • Annexure to audit report
  • Paragraph-wise reporting

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Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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