Skip to content

CMA Intermediate · Corporate Accounting and Auditing · Audit Report and Reporting under CARO

Sagar Infra Ltd (not a loan-giving company) granted loans during the year. Which of the following disclosures falls under clause 3(iii)(f) of CARO 2020?

Clause 3(iii)(f) requires disclosure of loans repayable on demand or without stated repayment terms: the aggregate amount, its percentage to total loans granted, and the amount given to Promoters and related parties. Overdues, renewals and repayment schedules are covered by other sub-clauses.

  1. AAggregate amount of loans repayable on demand or without specified repayment terms, its percentage to total loans granted, and amount granted to Promoters and related partiesCorrect
  2. BAggregate amount of loans overdue for more than ninety days and steps taken for recovery
  3. CAggregate amount of loans renewed or extended to settle overdues and its percentage to loans granted during the year
  4. DWhether the schedule of repayment of principal and interest has been stipulated

Explanation

Clause 3(iii)(f) deals with loans repayable on demand or without specified terms or period of repayment, requiring the aggregate amount, its percentage to total loans granted, and the amount granted to Promoters and related parties. Overdues over ninety days fall under (d), renewals and extensions under (e), and repayment schedules under (c).

Did you get it right without looking?

One question tells you little. A timed set on Audit Report and Reporting under CARO shows your real accuracy, how long you take and where you lose marks.

Practise Audit Report and Reporting under CAROFree diagnostic mock

More Audit Report and Reporting under CARO questions