Companies (Auditors Report) Order, 2003 [CARO 2003] ‘CARO’ is applicable to every company including a foreign company as defined in section 591 of the Companies Act, 1956 (‘the Act’), except to: - a banking company, - an insurance company, - a company licensed to operate under section 25 of the Act and - to private company meeting all of the following conditions: -- paid up capital and reserves not more than Rs.50 lacs -- has not accepted any public deposit -- does not have a loan outstanding from any bank or financial institution of Rs.10 lacs or more -- does not have a turnover > Rs.5 crores The Order deals with the matters to be contained in the Auditor’s report under Sec 227 of the Companies Act, 1957. Fixed Assets Whether the company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets Whether these fixed assets have been physically verified by the management at reasonable interval