## CARO 2020 – Clauses 8 & 9
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### Clause 8: Undisclosed Income
Report on whether:
1. Any transactions not recorded in the books of accounts have been surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961
2. If yes — whether the previously unrecorded income has been properly recorded in the books of accounts during the year
> This clause targets cases where companies disclose unaccounted income to the IT department (e.g., during surveys or assessments) but do not reflect it in the commercial accounts.
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### Clause 9: Repayment of Loans and Borrowings
This is a multi-part clause covering several dimensions of borrowing risk:
#### 9(a): Default in Repayment
- Whether the company has defaulted in repayment of loans, other borrowings, or payment of interest to any lender
- If yes: period of default and amount to be reported in a prescribed format:
| Column | Detail |
|---|---|
| Nature of borrowing (including debt securities) | — |
| Name of lender | — |
| Amount not paid on due date | — |
| Whether principal or interest | — |
| No. of days delay / unpaid | — |
| Remarks | — |
#### 9(b): Wilful Defaulter
- Whether the company has been declared a wilful defaulter by a bank, FI, or government
#### 9(c): Term Loan End-Use
- Whether term loans were applied for the purpose for which they were obtained
- If not, amount diverted and purpose of such usage
#### 9(d): Short-Term Loans for Long-Term Purposes
- Whether short-term loans (STL) have been used for long-term purposes
- Report the nature and amount
#### 9(e): Funds Raised for Subsidiaries/Associates/JVs
- Whether the company has taken funds from any entity or person to meet the obligations of its subsidiary, associate, or JV
- Report nature and amount
#### 9(f): Loans Against Pledge of Subsidiaries' Securities
- Whether the company has raised any loan during the year on the pledge of securities held in its subsidiaries, JVs or associates
- Whether the company has defaulted in repayment of such loans