SECRETARIAL AUDIT - as per new amendment

This discussion clarifies a condition for the Secretarial Audit of private companies under a new amendment: companies with outstanding loans or borrowings from banks or financial institutions of Rs. 100 crore or more. The key question is whether bank guarantees are considered borrowings for this purpose. While bank guarantees are contingent liabilities and noted separately, they are generally not treated as direct borrowings in this context.