RK Info Pvt. Ltd. (the company) has the following financial details as of 31st March, 2024, according to its financial statements: Paid-up share capital: ₹60 crore Turnover: ₹180 crore Outstanding deposits: ₹30 crore The

(i) Mandatory appointment of Internal Auditor: As per Section 138 of Companies Act, 2013 read with Rule 13(1)(c) of the Companies (Accounts) Rules, 2014- Every private company having Turnover of two hundred crore rupees or more during the preceding financial year; or 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. From the above provision the criteria of paid-up share capital or outstanding deposits is not applicable to private company. RK Info Pvt. Ltd. is a private company having turnover of ₹180 crore which is less than the stipulated limit of ₹200 crores. Hence, it is not mandatory for RK Info Pvt. Ltd. to appoint an internal auditor. (ii) Appointment of whole-time company secretary as an internal auditor: As per section 138 read with explanation to rule 13 of the Companies (Accounts) Rules, 2014 the internal auditor may or may not be an employee of the company. Hence, a company secretary in whole-time employment can be appointed internal auditor of the same company, if so, decided by the Board.