Excel Ltd., an unlisted company, has a paid-up share capital of ₹30 Crore, turnover of ₹190 Crore and borrowings of ₹25 Crore and outstanding deposits of ₹30 Crore. Decide if the Company needs to comply with internal aud

Section 138 of the Companies Act, 2013 read with Rule 13 of the Companies (Accounts) Rules, 2014 stipulates that the following class of companies shall be required to appoint an internal auditor or a firm of internal auditors: 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. The internal auditor so appointed, may or may not be an employee of the company. The internal auditor shall be either a Chartered Accountant or a Cost Accountant or any other professional as may be decided by the Board. In the instant case, Excel Ltd. being an unlisted company, exceeds the prescribed limit of outstanding deposit, i.e., ₹25 Crore as applicable for such class of companies and hence is required to appoint an internal auditor. The provision allows appointment of any other professional other than Chartered Accountant or Cost Accountant as internal auditor and hence, Excel Ltd. can appoint Siddh who is the Company Secretary in practice, as internal auditor of the Company with the due approval of Board.