Here we are giving a quick and easy shortcut to easily remember para-3 of CARO 2016. This has been been shared on one of our users.
In the previous post, we also provided the Amendments in CARO 2016 and also the differences between the CARO 2016 and CARO 2015.
Learning Shortcut for CARO Para-3
The entire learning can be divided in 3 parts:
1. For Point No 1 to 8:-
F I L L your bank account with C C (short form of cash credit) use it to pay the STATUTORY DUES and make no DEFAULT IN REPAYMENT OF LOANS & BORROWINGS.
2. For Point 9,10 & 11:-
Register a Company & issue IPO use it for correct purpose without any FRAUD and don’t forget to pay MANAGERIAL REMUNERATION on time.
3. For Point 12-16:
Ask your secretary NIDHI for 4 C’s (compliances of Companies Act 2013):
1. Compliance with section 177 & 188 for related party transactions.
2. Compliance with section 42 for Preferential allotment and private placement.
3. Compliance with section 192 for Non Cash Transaction.
4. Compliance with section 45-IA of RBI Act.
All CARO 16 Points:-
- Fixed Assets
- Loans to parties covered Under section 189
- Loans, Investments guarantees and securities under section 185 & 186
- Compliance of Section 73 to 76 & RBI for Deposits
- Cost Records U/s 148 of Companies Act 2013
- Statutory Dues
- Default in repayments of Loans or Borrowings
- Managerial Remuneration – Compliance of section 197 of Companies Act 2013
- Nidhi Companies – Compliances of Nidhi Rules 2014
- Related parties transactions
- Preferential allotment and private placement
- Non Cash Transactions
- Section 45-IA of RBI Act