A comparative view between CARO 2016 and CARO 2020

CARO 2016 CARO 2020

(i) Fixed Assets (i) Retained with major enhancements

(ii) Inventory (ii) Retained with major enhancements

(iii) Loans given by company to related parties (iii) Retained with major enhancements

(iv) Loans to directors and investment by Company (iv) Retained (same as CARO 2016)

(v) Deposits (v) Retained (same as CARO 2016)

(vi) Cost Records (vi) Retained (same as CARO 2016)

(vii) Statutory Dues (vii) Retained with minor changes (GST added)

(viii) Previously unrecorded income (New Clause)

(viii) Repayment of loans (ix) Retained with major enhancements including term
loans
(ix) Utilisation of funds (x) Retained but term loans moved to (ix) above and old
CARO clause (xiv) merged in here
(x) Reporting of fraud (xi) Retained with minor changes (all frauds and not just
by Company’s officers or employees)
(xi) Approval of managerial remuneration Deleted

(xii) Nidhi Company (xii) Retained with major enhancements

(xiii) Related party transactions (xiii) Retained (same as CARO 2016)

(xiv) Private placement of Preferential issues This clause clubbed with clause (x) above

(xiv) Internal Audit System and Report (New Clause)

(xv) Non-Cash transactions (xv) Retained

(xvi) Registration under RBI Act (xvi) Retained with major enhancements

(xvii) Cash Loss during the Financial year and immediately

preceding Financial year (New Clause)
(xviii) Resignation of Statutory Auditors (New Clause)

(xix) Material uncertainty to meet liabilities (New Clause)

(xx) Transfer of unspent CSR amount to fund / account

(New Clause)
(xxi) Qualification / Adverse remark of auditor in CARO
reports of companies included in Consolidated
Financial Statements (New Clause)