(i) Yellow Banana Limited, an unlisted company furnishes the following data: (a) Paid-up share capital as on 31st March, 2025 ₹ 45 Crore. (b)…

(i) According to the Companies (Accounts) Rules, 2014, every unlisted public company having- (A) paid up share capital of 50 crore rupees or more during the preceding financial year; or (B) turnover of 200 crore rupees or more during the preceding financial year; or (C) outstanding loans or borrowings from banks or public financial institutions exceeding 100 crore rupees or more at any point of time during the preceding financial year; or (D) outstanding deposits of 25 crore 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, Yellow Banana Limited has outstanding loan from bank exceeding 100 crore rupees i.e., ₹ 105 crore on 3rd March, 2025 during the preceding financial year 2024-25. Hence, it is required to appoint Internal Auditor during the year 2025-26. (ii) According to section 139(7) of the Companies Act, 2013: (1) In the case of a Government company or any other company owned or controlled, directly or indirectly, by the Central Government, or by any State Government, or Governments, or partly by the Central Government and partly by one or more State Governments, the first auditor shall be appointed by the Comptroller and Auditor General of India (CAG) within 60 days from the date of registration of the company. (2) In case the CAG does not appoint first auditor within the said period, the Board of Directors of the company shall appoint such auditor within the next 30 days. (3) Further, in the case of failure of the Board to appoint such auditor within the next 30 days, it shall inform the members of the company who shall appoint such auditor within 60 days at an Extra Ordinary General Meeting, who shall hold office till the conclusion of the first annual general meeting.