Friday, April 15, 2016

New CARO 2016- Highlights

Application
Every company including a foreign company, except –

  • a banking company; an insurance company; company licenced under section 8; a one person company; a small company
  • a private limited company not being a subsidiary or holding company of a public company having
  • paid up capital and reserves and surplus not more than rupees one crore; and
  • total borrowings not more than rupees one crore;and
  • total revenue not more than rupees ten crore
  • Applicable for the Financial years commencing on or after 1st April, 2015
Key notes
  • Whether the title deeds of immovable properties are held in the name of the company. If not, provide the details thereof
  • In respect of loans, investments, guarantees, and security whether provisions of section 185 and 186 of the Companies Act, 2013 have been complied with. If not, provide the details thereof. 
  • In case, the company has accepted 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, 2013 have been complied with? If not, the nature of such contraventions be stated;
  • Whether the company has defaulted in repayment of loans or borrowing to a financial institution, bank, Government or dues to debenture holders? If yes, the period and the amount of default to be reported (in case of defaults to banks, financial institutions, and Government, lender wise details to be provided)
  • Whether moneys raised by way of initial public offer or further public offer (including debt instruments) and term loans were applied for the purposes for which those are raised. If not, the details together with delays or default and subsequent rectification, be reported
  • Whether managerial remuneration has been paid or provided in accordance with relevant provisions
  • Whether all transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements etc.
  • Whether the company has made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and whether section 42 of the Companies Act, 2013 have been complied with and the amount raised have been used for the purposes for which the funds were raised. If not, provide the details in respect of the amount involved and nature of non-compliance;
  • Whether the company has entered into any non-cash transactions with directors or persons connected with him, whether the provisions of section 192 of Companies Act, 2013 have been complied with;
  • Whether the company is required to be registered as an NBFC under section 45-IA of the Reserve Bank of India Act, 1934 and whether the registration has been obtained

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