39 While carrying out the audit of X (P) Ltd., auditor observed that total managerial remuneration paid by the company to its directors including managing director, whole time director and its manager exceeds 11% of net profit. While reporting under CARO, 2016, auditor is:
(a) not required to report such excess payment.
(b) report under clause (x) of Para 3, the nature of contravention and the amount involved.
(c) report under clause (xi) of Para 3, the amount involved and steps taken by the company for securing refund of the same.
(d) report under clause (xiv) of Para 3, the nature of contravention u/s 197 of Companies Act, 2013.
Its private limited company so no restrictions on managerial remuneration, no need of reporting , answer ‘a’ is correct