You have been appointed as the statutory auditor of a limited company. The company is registered as a Nidhi company. What are the reporting…
CA Intermediate · Auditing and Ethics · PYQS · May 2024
You have been appointed as the statutory auditor of a limited company. The company is registered as a Nidhi company. What are the reporting requirements of a Nidhi company under the Companies Auditor's Report Order, 2020?
Suggested Answer and Working Notes:
Reporting requirements of a Nidhi Company under the CARO 2020: The auditor is required to report under clause (xii) of Paragraph 3 of CARO 2020: whether the Nidhi Company has complied with the Net Owned Funds to Deposits in the ratio of 1:20 to meet out the liability; whether the Nidhi Company is maintaining ten per cent. unencumbered term deposits as specified in the Nidhi Rules, 2014 to meet out the liability; whether there has been any default in payment of interest on deposits or repayment thereof for any period and if so, the details thereof.
Topics: Audit Report
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