# CARO 2020 — Clauses (vii) to (ix)
## Clause (vii) — Statutory Dues
(a) Whether the company is regular in depositing undisputed statutory (government) dues. If not — disclose outstanding statutory dues > 6 months from due date, as on last day of FY.
(b) Where dues are not deposited due to dispute — state:
- The amount
- The forum where the dispute is pending
> Important: Mere representation to the department is not a dispute.
## Clause (viii) — Income Tax (Unrecorded Income)
Whether transactions not recorded in books were disclosed as income in Income Tax assessments (typically Sec 153A / search & seizure surrenders). If yes — whether this unrecorded income has been properly recorded in books during the year.
## Clause (ix) — Loans & Borrowings
(a) Default in repayment — Report defaults in repayment to lender, in the prescribed format:
| Nature of borrowing | Name of lender | Amount not paid on due date | Principal or Interest | No. of days delay | Remarks |
|---|
Lender-wise details for banks, FIs and Government only.
(b) Wilful Defaulter — Whether the company has been declared a wilful defaulter by any bank, FI, or other lender.
(c) Term Loan End-Use — Whether term loans were applied for the purpose obtained. If not — report amount diverted and the purpose actually used.
(d) Short-term vs Long-term — Whether short-term funds are used for long-term purposes (working capital diversion). If yes — nature and amount.
(e) Funds for Group entities — Whether the company took funds to meet obligations of its subsidiaries, associates or JVs. If yes — details, nature & amount.
(f) Pledge of group securities — Whether the company raised loans by pledging securities held in its subsidiaries/JVs/associates. If yes — give details and report any default.
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## Visual Map
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Clause (vii) → Government dues (TDS, GST, PF, etc.)
Clause (viii) → Income surfacing via IT assessment
Clause (ix) → Borrowings: default, end-use, group exposure
```