Downtown Limited is an unlisted public company. As per its audited financial statements for the financial year 2024–25, the company had a paid-up…

According to section 138 of the Companies Act, 2013, read with Rule 13 of the Companies (Accounts) Rules 2014, every unlisted public company is required to appoint an internal auditor if it satisfies any of the following conditions of having: i. Paid up share capital of fifty crore rupees or more during the preceding financial year; or ii. Turnover of two hundred crore rupees or more during the preceding financial year; or iii. 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; or iv. Outstanding deposits of twenty-five crore rupees or more at any point of time during the preceding financial year. In the given question, Downtown Limited has turnover of 210crore and it also has outstanding deposit amounting to 28 crore in the financial year 2024-25. Hence, it will be required to appoint an internal auditor for the financial year 2025-26.