TAXAJ - TAXAJ Knowledge Base #Companies Act 2013

Limited Liability Partnership (LLP) Registration in Bangalore

Mon, 12 Feb 2024 12:10:19 +0530

Comprehensive Guide to Limited Liability Partnership (LLP) Registration in Bangalore

Limited Liability Partnership (LLP) registration in Bangalore is a crucial step for entrepreneurs and business owners looking to establish a legally recognized entity in the vibrant business ecosystem of Bangalore, India. Bangalore, also known as the Silicon Valley of India, boasts a dynamic environment conducive to startups, tech ventures, and innovative enterprises. Registering an LLP in Bangalore offers numerous advantages, including limited liability protection, flexible management structure, and tax benefits.

In this comprehensive guide, we delve into the intricacies of LLP registration in Bangalore, outlining the process, requirements, benefits, and key considerations for aspiring entrepreneurs and business owners.

Understanding Limited Liability Partnership (LLP)

A Limited Liability Partnership (LLP) is a unique business structure that combines the benefits of a traditional partnership with limited liability protection for its partners. In an LLP, partners are not personally liable for the debts and liabilities of the business, thereby shielding their personal assets from business-related risks. LLPs are governed by the Limited Liability Partnership Act, 2008, and offer a flexible and transparent framework for conducting business activities.

Advantages of LLP Registration in Bangalore

LLP registration in Bangalore offers several advantages for entrepreneurs and business owners:

Limited Liability Protection: One of the key benefits of LLP registration is limited liability protection, which safeguards the personal assets of partners against business debts and liabilities.
Separate Legal Entity: An LLP is recognized as a separate legal entity distinct from its partners, enabling it to enter into contracts, own property, and incur obligations in its own name.
Flexible Management Structure: LLPs allow for a flexible management structure, giving partners the freedom to define roles, responsibilities, and decision-making processes according to their business requirements.
Tax Benefits: LLPs enjoy favorable tax treatment, with profits taxed at the partnership level rather than at the individual partner level, resulting in potential tax savings for partners.
Minimal Compliance Requirements: Compared to other business structures such as companies, LLPs have fewer compliance requirements, making them ideal for small and medium-sized enterprises (SMEs) and startups.

LLP Registration Process in Bangalore

The process of LLP registration in Bangalore involves the following steps:

Name Reservation: The first step in LLP registration is selecting a unique name for the partnership. The proposed name must comply with the naming guidelines prescribed by the Ministry of Corporate Affairs (MCA) and should not infringe upon existing trademarks or corporate names.
Obtain Digital Signature Certificates (DSCs): All designated partners of the LLP must obtain digital signature certificates (DSCs) from certifying authorities recognized by the MCA. DSCs are used to digitally sign the LLP registration documents.
Obtain Director Identification Numbers (DINs): Designated partners are required to obtain director identification numbers (DINs) from the MCA. DIN is a unique identification number assigned to individuals intending to serve as directors or partners in registered entities.
File LLP Registration Form: Once the name is reserved and DSCs and DINs are obtained, the partners must file the LLP registration form with the MCA. The form should include details such as the registered office address, partners' information, capital contribution, and LLP agreement.
LLP Agreement: Partners are required to execute an LLP agreement defining the rights, duties, and obligations of each partner, profit-sharing ratios, management structure, and other relevant provisions. The LLP agreement must be stamped and notarized.
Certificate of Incorporation: Upon submission of the LLP registration form and supporting documents, the Registrar of Companies (RoC) will review the application and issue the Certificate of Incorporation upon satisfaction of all requirements.
PAN and TAN Application: After obtaining the Certificate of Incorporation, the LLP must apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department.

Compliance Requirements for LLPs in Bangalore

LLPs registered in Bangalore are required to comply with various statutory and regulatory requirements, including:

Annual Filings: LLPs must file annual returns and financial statements with the MCA within the prescribed deadlines. Failure to comply may result in penalties and legal consequences.
Tax Compliance: LLPs are required to comply with the provisions of the Income Tax Act, including filing income tax returns and maintaining proper accounting records.
Statutory Audit: LLPs meeting certain turnover and capital thresholds are required to undergo a statutory audit by a qualified auditor.
Changes in LLP Agreement: Any changes to the LLP agreement, such as admission or retirement of partners, changes in profit-sharing ratios, or alteration of business activities, must be duly recorded and filed with the MCA.

Conclusion

LLP registration in Bangalore offers entrepreneurs and business owners a flexible and efficient vehicle for conducting business activities in one of India's most dynamic economic hubs. By understanding the LLP registration process, complying with statutory requirements, and leveraging the benefits of limited liability protection and tax efficiency, entrepreneurs can embark on their business journey with confidence and clarity.

Whether you're a tech startup, consulting firm, or creative agency, establishing an LLP in Bangalore provides a solid foundation for growth, innovation, and success in the competitive business landscape.

In summary, LLP registration in Bangalore is a strategic decision that can unlock a world of opportunities for ambitious entrepreneurs and visionaries seeking to make their mark in India's thriving business ecosystem. With the right guidance, expertise, and commitment to compliance, the journey from LLP registration to business success in Bangalore is within reach.

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Private Limited Company Registration in Bangalore

Fri, 22 Dec 2023 10:55:44 +0530

Private Limited Company Registration in Bangalore

For online Private Limited Company Registration in Bangalore, a minimum of 2 directors can be appointed whereas a maximum of 15 directors can be appointed.

To register a Private Limited Company in Bangalore no minimum paid-up capital is required. And it necessary to have Pvt Ltd at the end of the name.

Company registration in Bangalore is easy if the following requirements are complied with:

A minimum of 2 directors who are residents of India
Minimum of 2 shareholders and a maximum of 200 shareholders are required.
For company registration in Bangalore the government fees to be paid for a minimum of shares worth Rs.1 Lakh.
A registered address is required.

Private Limited Company Registration in Bangalore can be done easily in 10 days. TAXAJ has been providing registration services all over India at a very affordable rate.

What are the Advantages of Private Limited Company Registration in Bangalore ?

1. Limited risk to personal assets – The shareholders of a private limited company have limited liability. This means that as a shareholder you will be liable to pay for company’s liability only to the extent of the contribution made by you. The shareholders do not have any personal liability and hence need not pay for the company’s liability out of their own assets.

2. Legal Entity – A private limited company has a separate legal entity different from its directors and shareholders. This means that the company is responsible for the management of its assets and liabilities, debtors and creditors. The shareholders will not be held responsible for the losses of the company. So, the creditors cannot proceed against the directors or shareholders to recover the money.

3. Raising Capital – Even though registering a private limited company comes with compliance requirements, it is preferred by entrepreneurs as it helps them raise funds through equity, expand and at the same time limits the liability.

4. Trustworthiness – Companies in India are registered with the Registrar of companies (ROC) under the Companies Act 2013. Anyone can check the details of the company through the Ministry of Corporate Affairs (MCA) portal. Also, details of all the directors are provided while the formation of the company. Hence a private limited company form of business structure is trusted more.

5. Continue Existence – A company has ‘perpetual succession’, i.e. continue or uninterrupted existence until it is legally dissolved. A company, being a separate legal person, is unaffected by the death or cessation of any member but continues to be in existence irrespective of the changes in membership.

How to Register Private Limited Company in Bangalore ?

Looking to register your private limited company in bangalore? Registering your company as a private limited company in bangalore is difficult as the procedure is complicated and involves many compliances. Do not fear as our experts can help you in every step of the private limited company registration in bangalore. Instead of reading through the entire registration process, you can avail our expert service.

Step 1: Obtain Digital Signature Certificate (DSC)

Step 2: Obtain DIN

Step 3: Name Availability*

Step 4: Form SPICe+ INC-32

Step 5: e-MOA and e-AOA

Step 6: PAN and TAN Application

* The RUN Web service earlier available for name availability will be available only for change in name of an existing company. The change is effective from 23 February 2020.

Detailed Process of Private Limited Company Registration in Bangalore

Step 1: Obtain DSC (Digital Signature) Digital signatures are required to file the forms for company formation. The registration process is completely online and the forms require a digital signature. DSC is mandatory for all subscribers and witnesses in the Memorandum of Association (MOA) and Articles of Association (AOA).

You must obtain the digital signature certificates from government recognized certifying authorities. The list of such certified authorities can be accessed here. Or you can get your DSC online in just two days from here. The cost of obtaining DSC varies depending upon the certifying authority. You must obtain class 3 category of DSC.

Step 2: Apply for DIN (Director Identification Number) DIN is an identification number for a director. It has to be obtained by anyone who wants to be a director in a company. One DIN is enough to be a director in any number of companies.

There are 3 ways of obtaining DIN:

Option 1: File form DIR 3. The Form DIR-3 is applicable to a person who wants to become a director in an existing company. This form required basic details of the proposed director along with identity proof like PAN, Aadhaar Card, etc and address proof. With effect from 23 February 2020, in case of new companies, DIN can be applied within SPICe+ form for up to three directors.

Option 2: With filing SPICe+, DINs gets issued to the proposed directors who do not have a DIN. Under this process of filing through SPICe+ (INC 32), a maximum of three directors can apply for DIN. If the applicant wants to incorporate Company with more than 3 Directors and more than 3 persons doesn’t have DIN, in such a situation the applicant has to incorporate a Company with 3 Directors and have to appoint new directors later on after incorporation.

Option 3: Click on the link & let a TAXAJ expert procure DIN for you. If you go for Private Limited Company – Registration with TAXAJ, up to 2 DINs are covered in the plan & there is no need to apply for DIN separately.

Step 3: Name Approval

To get the name approval, there are following options:

Option 1: Reserving the name via Part-A of SPICe+ Form: In an attempt to ease procedures for new as well as existing companies,w.e.f 23 February 2020, the Ministry of Corporate Affairs (MCA) has introduced SPICe+ web service for the incorporation of a company. Part-A of the SPICe+ form allows for ‘name reservation’ with two proposed names and one re-submission (RSUB) while reserving Unique Names for the Companies.

In case of rejection of the name due to any similarity of name with a registered company, an LLP or trademark or due to non-adherence of the Companies (Incorporation Rules) 2014, the applicant has to re-file another SPICe+ form with prescribed fee. However, after the approval of the name, it will be reserved for a period of 20 days within which the company must proceed for incorporation by filing Part-B of the SPICe+ form.

Please note that DSC and DIN shall not required for filling of SPICe+ form for reservation of name. Only MCA Account is mandatory.

Option 2: Name approval by filing Part-A and Part-B of SPICe+ Form together: You can apply for the proposed name along with the application for incorporation. Part-B of the SPICe+ enables applying for incorporation. Similar to the earlier SPICe form, SPICe+ also enables combined application for incorporation and name approval. That means the Part-A and Part-B of SPICe+ form can be submitted together. However, only one name can be applied to this form.

In case of a combined application, in case of rejection due to non-approval of the name, the applicant will get a second chance of refilling the same SPICe+ form without any further charges. It means you get two chances of filing the same form without any extra charge of paying Rs. 1000/- both the times. The resubmission of the SPICe+ form (both for standalone name approval and incorporation) can be made using the ‘name applied for’ or ‘application number’ link available on the user’s dashboard.

In case of failure to get the name approved in the second go, you can file the SPICe form again from scratch. This will any day prove to be cheaper than opting for the first option. The whole process including name approval and incorporation takes around 2-3 days

Step 4: Form SPICe+ (INC-32) The MCA has introduced Form SPICe+ for the registration of new companies from 23 February 2020. The incorporation under Part-B of the SPICe+ form is also web based and streamlines the incorporation of companies.

Upon the name approval, the applicant can click on the link of the approved name (available on the user’s dashboard) and continue to complete the incorporation. The Part-B of the new SPICe+ form enables the web based incorporation and serves the following purposes with the benefit of a single application:

Application for allotment of DIN (Director Identification Number)
Reservation of company name
Incorporation of a new company
Application for PAN and TAN (mandatory)
Application for EPFO registration (mandatory)
Application for ESIC registration (mandatory)
Application for Professional tax registration (only for Maharashtra)
Application for opening a bank account for the company (mandatory)
Allotment of GSTN (Goods and Service Tax registration number) if applied for (optional)

The new SPICe+ form facilitates web based entries and real time validation of data making incorporation a seamless and quick process. The details filled in Part-A and Part-B of SPICe+ will be automatically filled in the linked forms AGILE-PRO, eAoA, eMoA, URC1, INC-9 (as applicable).

All these forms have to be downloaded in PDF and digitally signed, and later submitted for incorporation purposes. Upon the filling of the SPICe+ form, the user has to also download the form SPICe+ in a PDF format and affix the DSC to digitally sign the form.

The digital signature of a professional is required to file Form INC-32. The professional must certify that all the information given in the form is correct. The professional can be Chartered Accountant, Company Secretary, Cost Accountant or advocate.

Prior to May 2015, the registration of companies required the filling up of several documents, such as the DIR–3 for acquiring the DIN (Director Identification Number), INC-1 for obtaining a name, INC–7 for registering the company with the Memorandum and Articles of Association, INC–22 for the registered office and finally, Form DIR-12 for the directors. With effect from January 2018, New Process of Name Approval “RUN” notified and e-form INC-1 omitted. INC-7 form omitted.

Now, all of these forms have been merged together in the SPICe+ form and RUN service is available only to change existing name. Only way out for incorporation of Company is SPICe+ form. No ROC fees for Incorporation of Company up to 10 lack of authorized capital.

Step 5: e-MoA(INC-33) and e-AoA (INC-34) e-MoA refers to an electronic Memorandum of Association and eAoA is electronic Articles of Association. These forms have been introduced to simplify the process of company registration in India.

Memorandum represents the charter of the company while articles of association contain the internal rules and regulations of the company.

Earlier memorandum of association and articles of association were required to be filed physically. But now these forms are filed online on MCA portal as a linked form with SPICe+ (INC-32). Both these forms must be digitally signed by subscribers to the Memorandum and Articles of Association.

Step 6: PAN and TAN Application Through this single form SPICe+, you can also apply for company’s PAN and TAN. The system will auto-generate these forms after the submission of SPICe+ form. The Certificate of Incorporation of PLC is issued with the PAN as allotted by the Income Tax Department after approval of the SPICe+ Form. An email containing the Certificate of Incorporation, PAN and TAN will be sent by the MCA. The Income Tax Department will issue the PAN card.

If all the details in the form are duly filled in along with the required documents, MCA will approve the registration and a CIN (Corporate Identity Number) will be allocated. You can also track this CIN online on MCA portal.

Documents required for filing SPICe+ (INC-32)

The following documents must be filed with SPICe (INC-32) for a private limited company registration:

A. Where Director and Subscriber are Indian Nationals

An Affidavit on a Stamp Paper is to be given by all the subscribers of the Company to state their willingness to become the shareholders of the Company
Proof of office address – Rental Agreement or Ownership Deed such as Sale Deed
Copies of utility bills such as electricity bill, water bill or gas bill not older than two months
Copies of utility bills that are not older than two months
Copy of approval in case the proposed name of the company contains any word(s) or expression(s) that require approval from central government
If the proposed name is based on a registered trademark or is subject matter of an application pending for registration under the Trade Marks Act, then it is mandatory to attach the trademark registration certificate or trademark application copy
NOC from the owner of the property, if the registered office is on a rented/leased property.
In case of subscribers/ Director does not have a DIN, it is mandatory to attach, proof of identity and address proof of the subscribers

B. Where Director/Subscriber is a Foreign National

Passport

Address proof: It can be driving license, residence card, bank statement, Government issued form of identification containing an address

How TAXAJ Helps in Private Limited Company Registration in Bangalore ?

With TAXAJ, you can establish your private limited company in Bangalore seamlessly. You can register your Private Limited Company in Bangalore in just 4 simple steps:

Step 1: Purchase the Plan

Purchase our Private Limited Company (PLC) Registration in Bangalore plan. You can even chat with our experts by entering your email, phone number and request a callback. Our experts will contact you and clear all your queries.

Step 2: Upload the Documents on our Website

Upload the below-mentioned documents on our website to incorporate your company:

Passport size photos of directors
Address proof of directors
Photo ID proof of directors
Specimen signature
Self-declaration about your directorship in other companies
Rent agreement of your registered office
No objection certificate from the owner of the property of the property
Aadhaar card
PAN card

The company registration from TAXAJ is completely online and thus, you can save time and money as you need not have to visit our office.

Step 3: Document Verification by our Experts and Signature of Documents

Our experts will verify the documents uploaded by you. You will need to attest your signature on the documents.

Step 4: Our Experts will File Forms on the MCA portal to Incorporation your Company

Our experts will file the below forms on behalf of you on the MCA portal –

Digital Signature Certificate (For 2 proposed directors) Application
Company Name Reservation
Filing of e-forms with ROC

After the company forms are filed on the MCA portal, the Registrar of Companies (ROC) and the respective departments will verify the forms submitted by our expert. The verification process takes around 10 days (subject to departmental approval and reverts from the respective departments).

Our experts will follow up with the respective authorities till you receive the Incorporation Certificate. After the verification process is complete, you will receive the Incorporation Certificate along with PAN and TAN in about 10 days.

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Companies Auditor Report Order (CARO) 2020

Sun, 24 May 2020 13:28:33 +0530

Companies Auditor Report Order (CARO) 2020

1. Introduction to CARO 2020

CARO 2020 is a new format for issue of audit reports in case of statutory audits of companies under Companies Act, 2013. CARO 2020 has included additional reporting requirements after consultations with the National Financial Reporting Authority (NFRA). NFRA is an independent regulatory body for regulating the audit and accounting profession in India. The aim of CARO 2020 is to enhance the overall quality of reporting by the company auditors.

2. Applicability of CARO 2020

CARO 2020 is applicable for all statutory audits commencing on or after 1 April 2020 corresponding to the financial year 2019-20. The order is applicable to all companies which were covered by CARO 2016. Accordingly, the order applies to all the companies except the following companies specifically excluded from its purview:

One person company
Small companies (Companies with paid up capital less than/equal to Rs 50 lakh and with a last reported turnover which is less than/equal to Rs 2 crore)
Banking companies
Companies registered for charitable purposes
Insurance companies
The following private companies are also exempt from the requirements of CARO, 2020:
– Whose gross receipts or revenue (including revenue from discontinuing operations) is less than or equal to Rs 10 crore in the financial year
– Whose paid up share capital plus reserves is less than or equal to Rs 1 crore as on the balance sheet date (i.e. usually at the end of the FY)
– Not a holding or subsidiary of a Public company
– Whose borrowings is less than or equal to Rs 1 crore at any time during the FY

3. Reporting Requirements Under CARO 2020

The auditor’s report (CARO 2020) shall include a statement on the following matters, namely:

Details of tangible and intangible assets
Details of inventory and working capital
Details of investments, any guarantee or security or advances or loans given
Compliance in respect of a loan to directors
Compliance in respect of deposits accepted
Maintenance of costing records
Deposit of statutory liabilities
Unrecorded income
Default in repayment of borrowings
Funds raised and utilisation
Fraud and whistle-blower complaints
Compliance by a Nidhi
Compliance on transactions with related parties
Internal audit system
Non-cash dealings with directors
Registration under section 45-IA of RBI Act, 1934
Cash losses
Resignation of statutory auditors
Material uncertainty on meeting liabilities
Transfer to fund specified under Schedule VII of Companies Act, 2013
Qualifications or adverse auditor remarks in other group companies

In a case where the auditor’s answer to any of the requirements mentioned above is unfavourable or negative, then the auditor’s report shall also state the basis for such unfavourable or qualified answer.

Also, in a case where the auditor is unable to express any opinion on any specified matter, the report shall indicate such fact along with the reasons as to why it is not possible for the auditor to give an opinion on the same.

4. Detailed Reporting Under Each Clause
1. Details of tangible and intangible assets
Whether the records maintained by the company display the complete particulars on the details, quantity and situation of tangible and intangible assets.
Whether the management has carried out physical verification of the assets at different intervals reasonable with the size of the company.
Whether the material discrepancies, if any noticed on physical verification have been accounted for in the books of accounts.
Whether the title deeds pertaining to the immovable properties (except properties which are leased by the company with duly executed lease agreements in the company’s favour) disclosed in the financial statements are held in the name of the company.
If the title deeds are not held in the name of the company, the below details should be provided:
Description of a property
Gross carrying value
Held in the name of
Whether promoter, director or their relative or employee
Period held: indicate a range, where appropriate
Reason for not being held in the name of company*

also indicate if in dispute
Whether a revaluation has been done by the company of its property, plant and equipment (including the right of use assets) or intangible assets or both during the year and, if so, whether the revaluation is based on the valuation by a Registered Valuer.
In case of a change in values upon revaluation, specify the amount of change, if the change is 10% or more in the aggregate of the net carrying value of each class of property, plant and equipment or intangible assets.
Whether any proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder. If yes, whether the company has appropriately disclosed the details in its financial statements.
2. Details of inventory and working capital
Whether the management has carried out physical verification of inventory at reasonable intervals.
If any discrepancies of 10% or more in the aggregate for each class of inventory were noticed and if so, whether they have been properly dealt with in the books of accounts.
Has the company, during any point of time of the year, sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of security of current assets.
Are the quarterly returns or statements filed by the company with financial institutions or banks in agreement with the books of account of the Company. In case of non-agreement, to provide details of such non-agreement.
3. Details of investments, any guarantee or security or advances or loans given
If the company has during the year made any investments in, given any guarantee or security or granted any loans or advances which are characterised as loans, unsecured or secured, to LLPs, firms or companies or any other person.
If the company has provided advances or provided loans which are characterised as loans, or given guarantee, or given security to any other entity (other than a company carrying on a business of providing loans), the below information should be furnished:
– The total amount given during the year, and the balances due as at the balance sheet date with respect to such loans or advances and guarantees or security to subsidiaries, joint ventures and associates.
– The total amount during the year, and the balance due on the balance sheet date of such loans or advances and guarantees or security to persons other than associates, subsidiaries and joint ventures.
In the case of investments made, guarantee or security provided, loans or advances granted (as mentioned above), the report should indicate:
– Whether the investments made, guarantees provided, security given and the terms and conditions of the grant of all loans and advances in the nature of loans and guarantees provided are not prejudicial to the company’s interest.
– In respect of loans and advances in the nature of loans, whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular.
– If the amount is overdue, state the total amount overdue for more than ninety days, and whether reasonable steps have been taken by the company for recovery of the principal and interest.
– In case any loan or advance in the nature of a loan is given which was due for repayment during the year and has been renewed or extended or fresh loans granted to settle the overdue of existing loans given to the same parties. If yes, specify the total amount of such dues renewed or extended or settled by fresh loans and the percentage (proportion) of the total to the total loans or advances granted during the year (other than companies whose principal business is to grant loans).
– In case the company has given any loans or advances in the nature of loans either repayable on demand or without specification of any terms or period of repayment. If so, to specify the total amount, percentage thereof to the total loans granted, the total amount of loans granted to promoters, related parties as defined section 2(76) of the Companies Act, 2013.
4. Compliance in respect of a loan to directors
If the company has given any loans to directors or any other person in whom the director is interested, or made any investments, whether the company has made compliance with the provisions governing such loans, investments and guarantees.
5. Compliance in respect of deposits accepted
In case the company has accepted deposits or deemed deposits, whether the company has followed the directives of the RBI as under:
– Compliance with the provisions prescribed for accepting deposits under section 73 to 76 of the Companies Act, 2013.
– The nature of contraventions, if the above provisions are not followed.
– Compliance with any order passed by any court or tribunal.
– Reporting of any non-compliance with the provisions of Companies Act, 2013.
6. Maintenance of costing records
In case the company is required to maintain cost records, whether the records have been maintained during the year and non-compliance if any.
7. Deposit of statutory liabilities
Whether the company has:
– Regularly deposited statutory dues.
– Are any statutory dues pending for a period more than 6 months as on the balance sheet date.
– In case of any disputed statutory dues, the amount of such dues, the forum before whom the dues are litigated.
8. Unrecorded income
– Whether any transactions which are not recorded in the accounts have been disclosed or surrendered before the tax authorities as income during the year. The details of such income tax assessments should be disclosed.
– Whether such undisclosed income has been recorded in the accounts during the year.
9. Default in repayment of borrowings
In case the company has made any default in the repayment of loans to banks, government, debenture-holders, etc. then the amount and period of default.
Description of borrowing includes debt securities
Name of lender
Amount unpaid on the due date
Whether interest or principal
Number of days of delay or unpaid
Auditor’s remarks

*details, lender-wise should be provided in case of defaults to financial institutions, banks, or Government

Has the company been declared a wilful defaulter by any bank or financial institution or any other lender.
Have term loans been used for the object for which they were obtained; in case they have not been, the loan funds diverted and disclosure of the end use of such loans.
Has the company used funds raised for a short term basis for long term purposes. The nature and the amount of such funds.
Has the company raised any money from any person or entity for the account of or to pay the obligations of its associates, subsidiaries or joint ventures. The details of the money raised with the description of the transactions and the amounts in each case.
Has the company raised any loans during the year by pledging securities held in their subsidiaries, joint ventures or associate companies. The details of such loans and also the default in the repayment of the loans.
10. Funds raised and utilisation
– If the company has raised any funds from a public offer (equity or debt capital), details of the funds applied for the purposes. Also, the details of default or delays and rectification measures taken.
– Has the company made any private placement or preferential allotment of shares or convertible debentures (fully, partially or optionally convertible) during the year, whether the same is in accordance with section 42 and section 62 of the Companies Act, 2013.
– Whether the funds raised, have been used for the purposes they were raised and the non-compliance, if any.
11. Fraud and whistle-blower complaints
– Has there been any fraud by the company or any fraud done on the company. If any such fraud has been noticed or reported any time of the year. If yes, nature and amount involved have to be reported.
– Whether the auditors of the company have filed a report in Form ADT-4 with the Central Government as prescribed under the Companies (Audit and Auditors) Rules, 2014.
– In case of receipt of whistle-blower complaints, whether the complaints have been considered by the auditor.
12. Compliance by a Nidhi
Compliance with provisions applicable to a Nidhi company:
– Maintaining of net owned funds to deposit ratio of 1:20 for meeting liabilities.
– Maintaining 10% term deposits (which are unencumbered) for meeting liabilities.
– Details of any default in payment of interest on deposits or repayment of for any period.
13. Compliance on transactions with related parties
Whether the company has complied with the provisions of section 188 of the Companies Act, 2013 in respect of transactions with related parties. Also, whether appropriate disclosures are made in the financial statements.
14. Internal audit system
– Does the company have an internal audit system in accordance with its size and business activities.
– Have the reports of the internal auditors been considered by the statutory auditor.
15. Non-cash transactions
In case the company has undertaken non-cash transactions with their directors or other persons connected to the directors, whether the restrictions imposed are complied with.
16. Registration under Section 45-IA of RBI Act, 1934
Is the company required to be registered under the RBI Act and whether the company has obtained registration.
Whether the company has carried on any Non-Banking Financial or Housing Finance activities (NBFC or HFC) without having a valid registration certificate from RBI.
Is the company a Core Investment Company (CIC) under the RBI regulations and does it continue to fulfil the criteria of a CIC. In case the company is an exempted or unregistered CIC, does the company continue to fulfil the criteria for exemption.
Does the group to which the company belongs have more than one CIC as part of it, then indicate the number of CICs which are in the group.
17. Cash losses
Has the company incurred any cash losses in the financial year and the immediately preceding financial year, the amount of cash losses incurred.
18. Resignation of statutory auditors
Whether during the year, has there been any resignation of statutory auditors, if yes, has the auditor considered the objections, issues or concerns raised by the outgoing auditors.
19. Material uncertainty
Existence of any material uncertainty on the date of the audit report on an evaluation of:
– The ageing report, financial ratios and expected dates of realisation of financial assets and payment of financial liabilities, any other information accompanying the financial statements, the auditor’s knowledge of the Board of Directors and management plans.
– Opinion whether the company can meet its the liabilities which exist as at the balance sheet date when such liabilities are due in the future.
20. Transfer to fund specified under Schedule VII of Companies Act, 2013
– With respect to obligations under Corporate Social Responsibility, whether the company has transferred the unspent amount to a Fund specified in Schedule VII to the Companies Act within a period of 6 months from the expiry of the financial year.
– Whether any amount which remains unspent has been transferred to a special account in accordance with provisions of section 135 of the Companies Act, 2013.
21. Qualifications or adverse auditor remarks in other group companies
In case there have been any qualifications or adverse remarks in the audit reports issued by the respective auditors in case of companies included in the consolidated financial statements, to indicate the details of the companies and the paragraph numbers of the respective CARO reports containing the qualifications or adverse remarks.
All the above-stated clauses are mandatory to be reported on. Also, the disclosures are to be given appropriately.

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Description of a property	Gross carrying value	Held in the name of	Whether promoter, director or their relative or employee	Period held: indicate a range, where appropriate	Reason for not being held in the name of company*
					*also indicate if in dispute

Description of borrowing includes debt securities	Name of lender*	Amount unpaid on the due date	Whether interest or principal	Number of days of delay or unpaid	Auditor’s remarks
	*details, lender-wise should be provided in case of defaults to financial institutions, banks, or Government