iii(b) if iii(c) If overdue Overall limit Auditor of the overdue amount is more increased from company need amount is than rupees five one lakh to five to verify terms more than lakhs, whether lakhs & conditions rupees one reasonable steps mentioned in lakh, whether have been taken loan reasonable by the company agreements, have been for recovery of resolutions taken by the the principal passed to check company for and interest; overall limits. recovery of the principal and interest; Loans, No Clause (iv) In respect of New clause Auditor need to Investments loans, examine and gurantees investments and minutes of the guarantees, meetings whether and related provisions of parties register Section 185 and and other 186 of the documents. Companies Act, 2013 have been complied with. If not, provide details thereof. (iv) is an No Clause Clause not ICAI release Internal Control adequate included guidance notes internal on Internal control system Financial commensurate Control. with the size of the company and the nature of its business, for the purchase of inventory and assets and for the sale of goods and services. Whether there is a continuing failure to correct major weaknesses in internal control system.
iii(b) if overdue amount is more than rupees one lakh, whether reasonable have been taken by the company for recovery of the principal and interest; iii(c) If overdue amount is more than rupees five lakhs, whether reasonable steps have been taken by the company for recovery of the principal and interest; Overall limit increased from one lakh to five lakhs Auditor of the company need to verify terms & conditions mentioned in loan agreements, resolutions passed to check overall limits. Loans, Investments and gurantees No Clause (iv) In respect of loans, investments and guarantees, whether provisions of Section 185 and 186 of the Companies Act, 2013 have been complied with. If not, provide details thereof. New clause Auditor need to examine minutes of the meetings and related parties register and other documents. Internal Control (iv) is an adequate internal control system commensurate with the size of the company and the nature of its business, for the purchase of inventory and assets and for the sale of goods and services. Whether there is a continuing failure to correct major weaknesses in internal control system. No Clause Clause not included ICAI release guidance notes on Internal Financial Control.