Page 160 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

The auditor should report on whether a schedule for the repayment of principal and payment of interest has
been stipulated for loans and advances in the nature of loans, and whether the repayments or receipts are regular.
5. Overdue Amounts and Recovery Steps: If there is any amount overdue, the report should state the total
amount overdue for more than ninety days, and whether the company has taken reasonable steps for the recovery
of the principal and interest.
6. Renewal or Extension of Overdue Loans:
The auditor should report on whether any loan or advance in the nature of a loan that fell due during the year
has been renewed or extended, or if fresh loans have been granted to settle the overdue of existing loans given
to the same parties. If so, the aggregate amount of such dues renewed or extended or settled by fresh loans and
their percentage to the total loans or advances in the nature of loans granted during the year should be specified
[not applicable to companies whose principal business is to give loans].
7. Loans repayable on demand or without repayment terms: The report should state whether the company
has granted any loans or advances in the nature of loans either repayable on demand or without specifying any
terms or period of repayment. If so, the aggregate amount, its percentage to the total loans granted, and the
aggregate amount of loans granted to promoters and related parties as defined in clause (76) of section 2 of the
Companies Act, 2013 should be specified.

(iv) (CNO CARO.100) Loan under section 185 & 186
Compliance: In respect of loans, investments, guarantees, and security, whether provisions of sections 185 and
186 (Interest rate should not be less than Govt Security rate) of the Companies Act have been complied with.
Non-compliance Details: If not, provide the details thereof.

v) (CNO CARO.120) Deposits
1A. Directives issued by the RBI: In respect of deposits accepted by the company or amounts which are deemed
to be deposits, whether the directives issued by the Reserve Bank of India have been complied with.
1B. Sections 73 to 76: And the provisions of sections 73 to 76 or any other relevant provisions of the Companies
Act and the rules made thereunder, where applicable, have been complied with.
2A. Nature of Contraventions: If not, the nature of such contraventions be stated.
2B. Orders from Authorities: 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) (CNO CARO.140) Cost Records
1. Cost Records Specified: Whether maintenance of cost records has been specified by the Central Government
under sub-section (1) of section 148 of the Companies Act.
2. Made and maintained: And whether such accounts and records have been so made and maintained.

vii) (CNO CARO.160) Statutory dues
1. Undisputed Statutory Dues:
1A. Regular in depositing: whether the company is regular in depositing undisputed statutory dues including
Goods and Services Tax, provident fund, employees' state insurance, income-tax, sales-tax, service tax, duty of
customs, duty of excise, value added tax, cess and any other statutory dues to the appropriate authorities and
1B. Extent of the arrears: if not, the extent of the arrears of outstanding statutory dues as on 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;

www.auditguru.in 07.34