Page 262 - CA Inter Audit PARAM

CA Ravi Taori
of existing loans given to the same parties, if so, specify the aggregate amount of such
dues renewed or extended or settled by fresh loans and the percentage of the
aggregate to the total loans or advances in the nature of loans granted during the year
[not applicable to companies whose principal business is to give loans];
• 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,
specify the aggregate amount, percentage thereof to the total loans granted, aggregate
amount of loans granted to Promoters, related parties as defined in clause (76) of
section 2 of the Companies Act, 2013

➢ Clause V
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 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, if not, the nature of such contraventions be stated; 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;

QNO Cl 7 & 9 Old Course--(M18R)
CARO.17 Bhaskar CNO - CARO.130/CARO.150
Discuss the matters to be included in the auditor's report regarding statutory dues and repayment of
loans or borrowing to a financial institution, bank, Government or dues to debenture holders as per CARO,
2020.
Answer Matters to be included in the auditor's report- statutory dues and repayment of loans or borrowing to a
financial institution, bank, Government or dues to debenture holders (CARO, 2020) –

➢ Clause (vii)
• 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 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;
• Where statutory dues referred to in subclause (a) have not been deposited on account of
any dispute, then the amounts involved and the forum where dispute is pending shall be
mentioned. (A mere representation to the concerned Department shall not be treated as a
dispute).

➢ Clause (ix)
• whether the company has defaulted in repayment of loans or other borrowings or in the
payment of interest thereon to any lender, if yes, the period and the amount of default to
be reported as below:
• Nature of borrowing, including debt securities
• Name of lender (Lender wise details to be provided in case of defaults to banks,
financial institutions and Government)
• Amount not paid on due date
• Whether principal or interest
• No. of days delay or unpaid
• Remarks, if any
• whether the company is a declared willful defaulter by any bank or financial institution or
other lender;
• whether term loans were applied for the purpose for which the loans were obtained; if not,
the amount of loan so diverted and the purpose for which it is used may be reported
• whether funds raised on short term basis have been utilized for long term purposes, if yes,
the nature and amount to be indicated;

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