Harsh Vadher asked 3 years ago
In module q.10 abhimanyu ltd. Pg.11.37
Nbfc is not required to obtain registration if nof is less than 2crore that exemption has been given by rbi but still auditor has to report that matter under caro?
Ravi Staff answered 3 years ago
all companies in financing business, where more than 50% assets are in financing business and more than 50% income is from financing business are NBFCs
All NBFCs need to get registered with RBI
All NBFCs will have to maintain Net Owned Fund of 2 crores
Here company is at default of not getting certificate of registration and also at default of not maintaining net owned funds of 2 crores
under caro 16 & caro 20 auditor is suppose to comment whether registration is required with RBI and if its required what is status of registration
here we will have to report that, registration is required and company has not obtained certificate they have only applied for it.
further auditor should also check about minimum net owned fund of 2 crores, if they are not maintaining it, it will affect going concern, auditor consider this matter and report as per SA 570, no specific reporting given in caro if net owned funds criteria is not achieved, CARO only talk about, certificate of registration as during registration rbi will check net owned funds also