Ministry of Corporate Affairs has notified the Companies (Auditor’s Report) Order, 2016. The reporting requirements under CARO 2016 have been increased. New reporting requirements with respect to fixed assets, loans and investment, managerial remuneration, Nidhi Company, Related party transactions, preferential allotment/private placement, Non-cash transactions have been notified. Modifications have been made in reporting of inventory, granting of loans to certain parties, default in repayment of dues, fraud reporting etc. Reporting requirements with respect to Internal control system, deposit of statutory dues, accumulated losses and incurrence of cash losses, guarantee for loans taken by others from banks or financial institutions have been deleted. CARO 2016 shall be applicable on every report made by auditor u/s 143 of Companies Act, 2013 for FY commencing on or after 1 April 2015.