Opinion Of Eminent Legal Luminaries On Controversial Issues

What Is The Reporting Responsibility Of The Auditor Of Company Has Not Complied With Law Of Deposit?

QUERY: What is the reporting responsibility of the auditor if company is not complying the law of deposit under new Companies Act, 2013?
ANSWER: The MCA has issued Companies (Auditor’s Report) Order, 2015 and notified on April 10, 2015 and it is applicable since then.

Clause (v) of the said report requires an auditor to report:

“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 and rules framed thereunder, where applicable, have been complied with? If not, the nature of contraventions should 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?”

Thus, it is the responsibility of the auditor to report under CARO, 2015.

Posted in Company Law

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Credit: Several of the queries and answers are reproduced with permission from the AIFTP Journal. We thank AIFTP for generously allowing us to host their research material.
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