Internal financial control reporting exemption u/s 143(3)(i) to private companies – Clarification

Internal financial control reporting exemption u/s 143(3)(i) to private companies apply from FY commencing from 1st April, 2016 prepared on or after 13th June 2017

General Circular No. 08/2017

F.No. 1/1/2014-CL-V
Government of India
Ministry of Corporate Affairs

5th Floor, ‘A’ Wing, Shashi Bhawan,
Dr. R. P. Road, New Delhi

Dated: 25th July ,2017

To
All Regional Directors,
All Registrar of Companies,
All Stakeholders.

Sub: Clarification regarding appticability of exemption given to certain private cornpanies under section 143(3)(i) of the Companies Act 2013-reg.

Sir,

Stakeholders have drawn attention of this Ministry to the serial no. 5 of notification No. G.S.R. 583(E) dated 13th June, 2017 which states thai requirements of reporting under section 143(3)(i) of the Companies Act 2013 shall not apply to certain private companres as mentioned therein and have sought clarification w.r.t. the financiai year(s) in respect of which the said exemption shall be applicable. The issue has been examined in the Ministry and it is hereby clarified that the exemption shall be applicable for those audit reports in respect of financial statements pertaining to financial years commencing on or after 1st April,2016, which are made on or after the date of the said notification.

2. This issues with the approval of the Competent Authority.

Yours faithfully

(K. M. Narayanan)
Assistant Dirctor
Tel:23387263