If there is loan from one NBFC company to other NBFC company
Then Auditor provision which is prescribed in Companies (Audit and Auditors) rules, 2014
In point 5(c)
The NBFC is covered or not?
Please advice me on this matter
Explaination:
Sub section (2) of Section 139 provides as under:
No listed company or a company belonging to such class or classes of companies as may be prescribed, shall appoint or re-appoint-
(a) an individual as auditor for more than one term of five consecutive years; and
(b) an audit firm as auditor for more than two terms of five consecutive years:
For the purposes of sub-section (2) of section 139, the class of companies shall mean the
following classes of companies excluding one person companies and small companies:-
(a) all unlisted public companies having paid up share capital of rupees ten crore or more;
(b) all private limited companies having paid up share capital of rupees twenty crore or more;
(c) all companies having paid up share capital of below threshold limit mentioned in (a) and (b) above, but having
public borrowings from financial institutions, banks or public deposits of rupees fifty crores or more.
As per companies act, 2013 definitions
“financial institution” includes a scheduled bank, and any other financial
institution defined or notified under the Reserve Bank of India Act, 1934;(2 of 1934)
please guide me?
CAclubindia
