Hi Sir, Is reporting on "Internal Financial Control" u/s 134(5)(e) is mandatory for private limited companies? Section only prescribes for listed companies. However Rule 8(5)(viii) says that Directors have to report the effectiveness of IFC in the Board statement. But nowhere it mentions that it is applicable for private limited companies. But Guidance Note says that IFC is applicable for ALL companies. Also sec 143(3)(i) says that auditor has report on the effectiveness of IFC in their report. So can you please clarify whehter IFC is applicable for private companies or not. My doubt is if the section itself says it is applicable only to public companies how can rules/guidance note says that it is applicable to all comapnies as they are generaly meant for providing explanation to the sections that were enacted in the law. Regards, Vinay

Section 134- Financial Statement, Board's report, etc.

Posted By: Arpitha 8 year(s) ago