## CARO 2020 Clause (xvi)(b) – Core Investment Companies (CIC)
### What the Auditor Must Report
The auditor must examine two things:
1. Is the company a CIC? If yes, does it continue to fulfil the RBI criteria for a CIC?
- Includes exempted or unregistered CICs — they must still satisfy the applicable criteria continuously.
2. Multiple CICs in the Group? If the group of which the company is a part has more than one CIC, the auditor must indicate the number of CICs forming part of the group.
### Key Definitions
| Term | Meaning |
|---|---|
| CIC | Core Investment Company — an NBFC holding ≥ 90% assets as investments in equity/preference shares, bonds, debentures, debt or loans in group companies, and not carrying on any other financial activity |
| Exempted CIC | A CIC with asset size < ₹100 crore or one that raises no public funds and has no public interest |
| Registered CIC | Asset size ≥ ₹100 crore AND raises public funds — must register with RBI under Section 45-IA of the RBI Act, 1934 |
### Reporting Decision Tree
```
Is the company a CIC?
├── No → Report not applicable
└── Yes
├── Does it continue to fulfil CIC criteria? → Report Yes/No
└── Does the GROUP have more than one CIC?
├── No → State so
└── Yes → Indicate the NUMBER of CICs in the group
```