Dattaprasad (Audit Officer) (184 Points)
28 November 2011Dear All,
while preparing the audit Report of a private company, for which CARO is applicable, i have a doubt regarding charge of asset made on loan for vehicles.
our client has brought a vehicle through loan from bank. this transaction crated charge on loan amount outstanding but the company has not maintained register Under Section 125 of the companies act.
is there any requirement to qualify the report?, if yes, pls provide.
Kolluru Krishna Murty
(Partner)
(315 Points)
Replied 29 December 2011
Strictly speaking they have to maintain Register u/s 125, in the absence of which if there is a claim on the vehicle,it may create problem for the Financier.
As far as auditor is concerned Statutory books are not maintained.
So appropriate qualification has to be made.
kkm
CAclubindia
