ABC Private Limited was incorporated on 30 th September 2020. It has a paid up share capital of 45 crore. The company had a turnover of 250 crore…

(a) According to section 138 read along with Rules of the Companies Act, 2013, every private company having: (A) turnover of 200crore rupees or more during the preceding financial year; or (B) outstanding loans or borrowings from banks or public financial institutions exceeding 100crore rupees or more at any point of time during the preceding financial year. shall be required to appoint an internal auditor which may be either an individual or a partnership firm or a body corporate. In the given question, the company has a paid up capital of 45crore and turnover of 250crore for the financial year 2023-24. Since, the company is fulfilling the criteria of turnover (i.e. more than 200crore), hence, it is required to appoint an internal auditor for the financial year 2024-25.