Page 162 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

Preferential Allotment /Private placement: Assess whether the company made any preferential allotment or
private placement of shares or convertible debentures (fully, partially, or optionally convertible) during the year.
Verify compliance with the requirements of section 42 and section 62 of the Companies Act, 2013. Ascertain if
the funds raised through these allotments and placements were utilized for their intended purposes. If the funds
were not used as intended, provide details regarding the amount involved and the nature of non-compliance.

(xi) (CNO CARO.240) Fraud:
1. Fraud by or on the Company: whether any fraud by the company or any fraud on the company has been
noticed or reported during the year, if yes, the nature and the amount involved is to be indicated;
2. Report under Sub-section (12) of Section 143: whether any report under sub-section (12) of section 143 of
the Companies Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies
(Audit and Auditors) Rules, 2014 with the Central Government;
3. Whistle-blower Complaints: whether the auditor has considered whistle-blower (think carefully)
complaints, if any, received during the year by the company;

(xii) (CNO CARO.260) Nidhi Company:
(Shortcut: NUD)
Net Owned Funds to Deposits Ratio: whether the Nidhi Company has complied with the Net Owned Funds
to Deposits in the ratio of 1:20 to meet out the liability;
Unencumbered Term Deposits: whether the Nidhi Company is maintaining ten per cent. unencumbered term
deposits as specified in the Nidhi Rules, 2014 to meet out the liability;
Default: whether there has been any default in payment of interest on deposits or repayment thereof for any
period and if so, the details thereof;

(xiii) (CNO CARO.280) Related Party:
Compliance with Companies Act: whether all transactions with the related parties are in compliance with
sections 177 and 188 of the Companies Act where applicable.
Disclosure as per Accounting Standards: the details have been disclosed in the financial statements, etc., as
required by the applicable accounting standards;

(xiv) (CNO CARO.300) Internal Audit:
Internal Audit System: whether the company has an internal audit system commensurate with the size and
nature of its business.
Internal Auditors' Reports: whether the reports of the Internal Auditors for the period under audit were
considered by the statutory auditor;

(xv) (CNO CARO.320) Non-cash transactions:
Non-cash Transactions with Directors: whether the company has entered into any non-cash transactions with
directors or persons connected with him and if so, whether the provisions of section 192 of Companies Act have
been complied with;

(xiv) (CNO CARO.340) NBFC
1A. Registration: whether the company is required to be registered under section 45-IA of the Reserve Bank of
India Act, 1934 (2 of 1934) and if so, whether the registration has been obtained.
1B. Activities without a valid (CoR): whether the company has conducted any Non-Banking Financial or
Housing Finance activities without a valid Certificate of Registration (CoR) from the Reserve Bank of India as
per the Reserve Bank of India Act, 1934.
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