Applicability of IFC u/s 143(3)(I)

[Bipin Parmar]

Dear Sir / Ma'am,

As per MCA notification , reporting on IFC u/s 143(3)(i) is not applicable to

Private companies with turnover less than 50 Crore OR

Private Companies aggregate borrowings less than 25 Crore

What if T/O less than 50 Crore but borrowing more than 25 cr?

What if T/O More than 50 Crore but borrowing less than 25 cr?

Thanks & regards

Bipin

AI Summary

Exemption from Internal Financial Controls Reporting for Companies with Turnover Under 50 Crore or Borrowings Under 25 Crore A query regarding the applicability of Internal Financial Controls (IFC) under Section 143(3)(i) of the Companies Act was raised, focusing on private companies with specific financial thresholds. The notification exempts companies with turnover under 50 crore rupees or borrowings under 25 crore rupees from IFC reporting. The response clarified that if a company's turnover is less than 50 crore rupees, or if its borrowings are less than 25 crore rupees, IFC reporting is not applicable, regardless of the other condition. Thus, in both scenarios presented, IFC reporting is not required.