CA Student Manoj is studying on the exemptions available to a private limited company in respect of certain reporting requirements. You are required…

(i) Applicability of Reporting requirements on adequacy of IFC w.r.t to financial statements to a Private Limited Company: The auditor's report shall state whether the company has adequate Internal financial controls with reference to financial statements in place and also on the operating effectiveness of such controls. This requirement shall not apply to a private company which— (I) is a One Person Company or a small company; or (II) has turnover less than 50crore as per the latest audited Financial Statements, and which has aggregate borrowings from banks or financial institutions or any body corporate at any point of time during the financial Year less than 25crore. (ii) Applicability of CARO to a Private Limited Company: Companies (Auditor's Report) Order, 2020 shall not apply to a private limited company, not being a subsidiary or holding company of a public company: (I) having a paid-up capital and reserves and surplus not more than one crore rupees as on the balance sheet date and (II) does not have total borrowings exceeding one crore rupees from any bank or financial institution at any point of time during the financial year and (III) does not have a total revenue as disclosed in Scheduled III to the Companies Act (including revenue from discontinuing operations) exceeding ten crore rupees during the financial year as per the financial statements.