In respect of deposits accepted by the company from the public:
1. Whether the directives issued by RBI and provisions of Sections 73 to 76 of the Companies Act, 2013 along with the applicable Rules have been complied with.
2. If NOT complied:
State the nature of contraventions
3. If an order has been passed by:
NCLT
Company Law Board
RBI
Any Tribunal
→ Whether the company has complied with such order.
Acceptance of deposits from public by certain companies
### Key Concept
This clause is aimed at protecting depositors. Companies accepting public deposits must follow strict rules on registration, disclosure, credit rating, and repayment. Any violation must be reported in the CARO report.
Worked example
### Example 1
Non-Compliance with Deposit Rules [Clause v]:
ABC Ltd accepted ₹5 crore from the public as fixed deposits without obtaining the required credit rating and without filing the return of deposits. What should the auditor report?
Answer: The auditor must report under Clause 3(v) that the company has accepted deposits but has NOT complied with the provisions of Section 73/76 of the Companies Act, 2013. Nature of contravention: (a) credit rating not obtained, (b) return of deposits not filed. Details of amount involved should be stated.
### Example 2
NCLT Order Not Complied [Clause v]:
An NCLT order directed PQR Ltd to repay ₹2 crore of deposits within 30 days. The company failed to repay.
Answer: The auditor reports under Clause 3(v) that an order was passed by NCLT directing repayment of deposits, but the company has NOT complied with the said order. Details (amount, order date) should be included.
⚠️ Common exam mistakes
Confusing inter-corporate deposits (ICDs) with public deposits — Clause (v) applies to deposits from the public under Sections 73-76; ICDs have different treatment.
Forgetting to report non-compliance with NCLT/Tribunal orders — students often only check Sections 73-76 and miss the second limb about orders passed by authorities.
Not specifying the 'nature of contraventions' — a vague statement is insufficient; the specific type of non-compliance must be stated.
Bare-Act text Clause 3(v) · Companies (Auditor's Report) Order, 2020 (CARO 2020) · click to expand
3(v): in respect of deposits accepted by the company or amounts which are deemed to be deposits, whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules made thereunder, where applicable, have been complied with; if not, the nature of such contraventions be stated; if an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal, whether the same has been complied with or not.