Advise whether the internal auditor is required to be appointed in the following scenarios: Name of the Company Status of the Company Paid-up Capital Turnover Outstanding loans and borrowings Lala Ltd. Listed 49 195 99 D

Section 138 of the Companies Act, 2013 read with Rule 13 of the Companies (Accounts) Rules, 2014, prescribes the following class of companies which is required to appoint an internal auditor namely:-: Every listed company; Every unlisted public company having: paid up share capital of ₹ 50 crore or more during the preceding financial year; or turnover of ₹ 200 crore or more during the preceding financial year; or Outstanding loans or borrowings from banks or public financial institutions exceeding ₹ 100 crore or more at any point of time during the preceding financial year; or Outstanding deposits of ₹ 25 crore or more at any point of time during the preceding financial year; and Every private company having - Turnover of ₹ 200 crore or more during the preceding financial year; or Outstanding loans or borrowings from banks or public financial institutions exceeding ₹ 100 crore or more at any point of time during the preceding financial year. Accordingly, in the given case, answer is as under: Name of the company Requirement to appoint internal auditor Lala Ltd. Yes, since it is a listed company Dilo Ltd. Yes, since the turnover is ₹ 200 crore Craft Ltd. Yes, since the paid-up capital is ₹ 50 crore Wood Pvt. Ltd. No, since the turnover or loans / borrowings does not exceed the threshold limits An internal auditor, shall either be a chartered accountant or a cost accountant, or such other professional as may be decided by the Board to conduct internal audit of the functions and activities of the company. The internal auditor may or may not be an employee of the company. So, if President (HR) and DGM (Finance) satisfying the above criteria, can be appointed as internal Auditor.