Sir as you have explained that the limit for private companies for internal audit will be if they have borrowings more than 100 Cr from bank or FI, but as bare text of the law it state that loan should be taken from bank or Public Financial Institution. Sir is their a difference between financial institution and public financial institution?
Will NBFC’s will be included in Financial institution?
i was travelling, so could not answer, queries will try to answer on daily basis
BELOW is DEFINITION of PFI
the Life Insurance Corporation of India, established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956);
the Infrastructure Development Finance Company Limited, referred to in clause (vi) of sub-section (1) of section 4A of the Companies Act, 1956 (1 of 1956) so repealed under section 465 of this Act;
specified company referred to in the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 (58 of 2002);
institutions notified by the Central Government under sub-section (2) of section 4A of the Companies Act, 1956 (1 of 1956) so repealed under section 465 of this Act;
such other institution as may be notified by the Central Government in consultation with the Reserve Bank of India:
Provided that no institution shall be so notified unless—
not less than fifty-one per cent of the paid-up share capital is held or controlled by the Central Government or by any State Government or Governments or partly by the Central Government and partly by one or more State Governments;
Definition of Financial Institution
NBFC will be covered in definition of financial institution but not public financial institution