caro 2020

MCA has notified the revised Order which may be called the Companies (Auditor's Report) Order, 2020 and shall come into force on the date of its publication in the Official Gazette i.e 25-02-2020. 



The revised CARO shall apply to every company including a foreign company except, 

1. banking company, 
2. insurance company, 
3. Section 8 Company,
4. One Person Company, 
5. small company, 
6. private limited company, not being a subsidiary or the holding company of a public company, 



   (a) having a paid-up capital and reserves and surplus, not  more than 1 Crore rupees as on the balance sheet date 

and

(b) which does not have total borrowings exceeding 1 Crore rupees from any bank or financial institution at any point of time during the financial year 

and


(c) which does not have a total revenue exceeding 10 crore rupees during the financial year as per the financial statements. 



The CARO will now have the mandatory disclosure on CSR 

w.r.t 

1. transfer of the unspent amount to a Fund specified in Schedule VII

and

2. amount remaining unspent to the special account within a specified period.