## CARO 2020 – Clause (v): Public Deposits (Including Deemed Deposits)
The auditor must report compliance with all of the following:
- Directives of the Reserve Bank of India (RBI)
- Provisions of the Companies Act relating to acceptance of deposits
- Orders of the Company Law Board (CLB) / Tribunal
If non-compliance exists → report the nature of contraventions.
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## CARO 2020 – Clause (vi): Cost Records
Whether cost records are required to be maintained under Section 148 of the Companies Act, 2013, and if so, whether such records have been made and maintained.
> The auditor does not opine on the accuracy of cost records — only on whether they exist and are maintained.
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## CARO 2020 – Clause (vii): Statutory Dues
Statutory dues include: GST, Income Tax, Customs Duty, PF, ESI, and other dues payable to government authorities.
### Undisputed Dues
| Condition | Reporting |
|---|
| Outstanding for ≤ 6 months | No reporting required |
| Outstanding for > 6 months as at balance sheet date | Must report — state amount and nature |
### Disputed Dues
| Condition | Reporting |
|---|
| Any disputed statutory due, regardless of amount or duration | Always report — state amount and authority before which dispute is pending |
> Key rule: Undisputed → only if outstanding > 6 months. Disputed → always report, no time condition.
### Example 1
Example 1 – Undisputed vs. Disputed dues
Great Textiles Ltd has the following dues as at 31 March 2024:
- GST of ₹15 lakh outstanding for 4 months (undisputed)
- GST of ₹8 lakh outstanding for 8 months (undisputed)
- Income Tax demand of ₹50 lakh for AY 2022-23 contested before ITAT (disputed)
What must the auditor report?
Answer:
- ₹15 lakh GST (4 months): Not reported — undisputed and ≤ 6 months.
- ₹8 lakh GST (8 months): Must report — undisputed but outstanding > 6 months.
- ₹50 lakh Income Tax (disputed): Must always report — state amount and that it is pending before ITAT. No time condition for disputed dues.
### Example 2
Example 2 – Cost records
Chemical Co Ltd is in a sector notified under Section 148. The auditor finds that while the company maintained some cost records, they were not maintained in the prescribed format.
What must be reported under Clause (vi)?
Answer: The auditor must report that cost records are required to be maintained under Section 148, but the company has not maintained them in the prescribed form. The auditor does not need to certify accuracy — only existence and proper maintenance.
### Example 3
Example 3 – Public deposits
ABC Ltd accepted deposits from the public without following the prescribed RBI directive on deposit repayment schedule. The CLB had issued a specific order to ABC Ltd on this matter which was also not complied with.
What must the auditor report under Clause (v)?
Answer: The auditor must report that ABC Ltd has not complied with: (1) RBI directives on public deposits and (2) the CLB order. The auditor reports the nature of each contravention.