vishal somani (Student) (50 Points)
26 August 2010i saw one point in that it was stated that -"According to the information and explanation given to us, the company has neither granted or taken any loans, secured or unsecured from companies firms or other parties covered in the register maintained under section 301..!
then i saw balance sheet, it was given that secured loans 1 lac and unsecured loans 80000..!
so i wanna ask u that... is it audit mistake or my mistake...
plz rely this ... i dont want to scratch my head.... :)
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 26 August 2010
Unscured loan may taken form bank and unsecured loan may taken form other than related party therfore its not covered under the provision of CARO
Surbhi Garg
(Chartered Accountant)
(64 Points)
Replied 26 August 2010
you have not mentioned that the secured & unsecured loans mentioned in the balance sheet are from the parties covered under 301 or from others...?
Arvind Sharma
(ACA)
(1432 Points)
Replied 26 August 2010
Dear Vishal.., both you as well as Audit Report, are correct...
The clause 4(iii)(a) of CARO regarding reporting on loan taken or granted by the company required reporting of those loans (Secured/Unsecured) which are taken from those partise which are required to be recorded in Register maintained u/s 301 of the Companies Act..., so the loan that was taken of Rs. 50000, that you observed in BS, may not be from such parties....
For detail refer Institute Publication on CARO....
Saket Jhalani
(C.A., C.S.)
(31 Points)
Replied 26 August 2010
Dear
Point u mentioned applicable only in case of related parties. It is not applicale to All unsecured Loans & Secured Loans.
So it's not the mistake of Auditor.
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