Caro 2020

Official Page (opc) Private Limited has a turnover of Rs. 100 crores with a paid up capital of Rs. 3 crores. As it's auditor, Should you apply Caro 2020 in your audit report?

• Yes. Turnover is high

• Yes. Paid up capital is above 1 cr

• No. Paid up capital is below 5 cr

• No. Not applicable for OPc

Shady Tik Pvt Ltd is an entity winding down its operations due to heavy losses. During the year, It has cut its borrowings from bank to Rs. 80 lakhs from Rs. 1.2 cr. Its income from operations is Rs. 4 cr while income from discontinuing operations is Rs. 3 cr. Is CARO applicable for the company?

• Yes. But only for continuing operations

• Yes. For the company as a whole.

• No. Turnover is below 10 cr

• No. Borrowings below 1 cr

While reporting under clause (i), auditor need not report on which of the following aspects

• Benami properties

• Physical verification

• Title deeds

• Section 185 of Companies Act

Physical verification of the assets is the responsibility of the ___________ . (Pick the most relevant answer)

• Auditor

• Those Charged with Governance

• Management

• Shareholders

Which clause requires reporting in respect of loan or advance in the nature of loan granted which has fallen due during the year and has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties?

• Clause (iii)(e)

• Clause (iii)(a)

• Clause (iv)(d)

• Clause (ii)(b)

While reporting under Clause (iv) of the CARO , which of the following is correct :

• The auditor should report the nature of non-compliance, the maximum amount outstanding during the year and the amount outstanding as at the balance sheet date in respect of the directors only

• The auditor should report the nature of non-compliance, the maximum amount outstanding during the year and the amount outstanding as at the balance sheet date in respect of the directors and any person in whom any of the director of the company is interested

• The auditor should report the nature of non-compliance and the amount outstanding as at the balance sheet date in respect of the directors only

• The auditor should report the nature of non-compliance and the amount outstanding as at the balance sheet date in respect of the directors and any person in whom any of the director of the company is interested

The Companies (Acceptance of Deposits) Rules, 2014 cover the following main items:

• nature of deposits and persons from whom it can be accepted

• nature of deposits and terms and conditions of acceptance by companies from its members and persons other than its members

• manner and extent of deposit insurance

• Deposits given by a related party to a company

The meaning of “undisclosed income” as per clause (viii) of CARO is referred from:

• Benami Transactions (Prohibition) Act, 1988

• The Companies Act, 2013

• The Income Tax Act, 1961 

• Finance Bill, 1994

As per Clause ix Which of the following is indicative that borrowed funds have not been used to grant loans or advances or to meet the obligations of subsidiary, joint venture and associate:

• Sufficient cash flows from operations of the reporting company

• Funds raised by way of fresh issue of equity by the reporting company

• Net inflows from investing activities, example sale of building

• All of the above

A company making an offer/invitation on private placement is required to allot its securities within how many days from the date of receipt of application money for such securities:

• 15

• 35

• 40

• 60