CARO Clause 3(ii) — Inventory
Requires reporting on whether physical verification of inventory has been conducted at reasonable intervals, and whether any discrepancies of 10% or more in aggregate for any class of inventory were properly dealt with in the books.
Related terms
- Capitalisation Threshold
A minimum cost a company sets, below which an item is expensed rather than capitalised as a fixed asset, even if it otherwise meets the definition.
- CARO (Companies Auditor's Report Order)
An order under the Companies Act requiring statutory auditors of specified companies to report on additional matters beyond the standard audit opinion — fixed assets, inventory, loans, statutory dues and more.
- CARO Clause 3(iv) — Sections 185 and 186 Compliance
Requires reporting on whether the company has complied with Sections 185 and 186 of the Companies Act regarding loans, investments, guarantees and security given to other entities.
- CARO Clause 3(ix) — Default in Repayment
Requires reporting on whether the company has defaulted in repayment of loans or borrowings to any lender, including the period and amount of default.
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