Company act 2013

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paras (Querist)
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25 December 2014 (1) Such class or classes of companies as may be prescribed shall be required to appoint an internal auditor, who 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. (2) The Central Government may, by rules, prescribe the manner and the intervals in which the internal audit shall be conducted and reported to the Board. can you explain sir???

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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26 December 2014 As per Rule 13 of Companies (Accounts) Rules, 2014, the following class of companies shall be required to appoint an internal auditor or a firm of internal auditors, namely:-
(a) every listed company;
(b) every unlisted public company having-
(i) paid up share capital of Rs. 50 crore or more during the preceding financial year; or
(ii) turnover of Rs. 200 crore or more during the preceding financial year; or
(iii) outstanding loans or borrowings from banks or public financial institutions exceeding Rs. 100 crore or more at any point of time during the preceding financial year; or
(iv) outstanding deposits of Rs. 25 crore or more at any point of time during the preceding financial year; and
(c) every private company having-
(i) turnover of Rs. 200 crore or more during the preceding financial year; or
(ii) outstanding loans or borrowings from banks or public financial institutions exceeding Rs. 100 crore or more at any point of time during the preceding financial year:
Provided that an existing company covered under any of the above criteria shall comply with the requirements of section
138 and this rule within 6 months of commencement of such section.

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