Exemption is available to following
- Which is one person Company (OPC) or a Small Company; or
- Which has turnover less than Rs. 50 Crores as per latest audited financial statement or which has aggregate borrowings from banks or financial institutions or any body corporate at any point of time during the financial year less then Rs. 25 Crore.
The above exemption shall be applicable to a private company which has not committed a default in filing its financial statements under section 137 of the Companies Act 2013 or annual return under section 92 of CA 2013 with the Registrar.
Opinion / Analysis
Based on above legal position, in case of
- One Person Company (OPC), or
- Small Companies or
- Private companies with turnover less than 50 Crore or
- Private Companies aggregate borrowings less than 25 Crore
The auditor is not required to report about the internal financial controls system in place. However, the exemptions available to Private Company under section 143(3)(i) would be available only if private company has not committed a default in filing its financial statements under section 137 of the said Act or annual return under section 92 of the said Act with the Registrar.
From above we can clonclude that in above case there will be exmeption, from IFCR reporting