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CARO Amendments CARO 2016Vs 2020 effective April 1 2022

Companies (Auditor’s Report) Second Amendment Order, 2020

In exercise of the powers conferred by sub-section (11) of section 143 of the Companies Act, 2013 (“CA, 2013”), the Central Government has made an order [i.e. Companies (Auditor’s Report) Second Amendment Order, 2020] vide Number S.O. 4588(E) dated 17th December 2020, to amend the Companies (Auditor’s Report) Order, 2020 (“CARO, 2020”), and determine the applicability date of CARO, 2020. 

By the above said amendment, the MCA has changed the applicability date of CARO, 2020 to the financial years commencing on or after the 1st April, 2021. So, CARO 2020 will be applicable from Financial Year 2021-22. Companies (Auditor’s Report) Order, 2016 (“CARO, 2016”) will continue to be applicable for Financial Year 2020-21.