You are the senior partner of a firm of practising Company Secretaries. The turnover of your firm was ₹ 7 crores for year ended 31st March, 2026. Saugata is a director in AB Ltd., CD Private Ltd. and EF Ltd. He is confus

As per section 138 of the Companies Act, 2013 read with rule 13 of the Companies (Accounts) Rules, 2014: The following class of companies shall be required to appoint an internal auditor which may be either an individual or a partnership firm or a body corporate namely: (a) Every listed company; (b) Every unlisted public company having - i. Paid up share capital of fifty crore rupees or more during the preceding financial year; or ii. Turnover of two hundred crore rupees or more during the preceding financial year; or iii. Outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year; or iv. Outstanding deposits of twenty-five crore rupees or more at any point of time during the preceding financial year; and (c) Every private company having - i. Turnover of two hundred crore rupees or more during the preceding financial year; or ii. Outstanding loans or borrowings from banks or public financial institutions exceeding one hundred crore rupees or more at any point of time during the preceding financial year. Applying the above prescriptions: Internal audit is applicable to AB Ltd. as it is a listed company; Internal audit is not applicable to CD Private Ltd. as limits are not exceeded for turnover or outstanding loans; It is applicable to EF Ltd. as outstanding deposits is more than ₹25 crore.