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Company-law utility

Internal Audit Applicability Checker — Section 138

Reviewed by Finin2min Editorial Desk · Last reviewed 11 September 2026

Check listed, unlisted public and private-company thresholds for turnover, capital, borrowings and deposits.

2-minute answer

Check listed, unlisted public and private-company thresholds for turnover, capital, borrowings and deposits.

Current-law check: This page was reviewed for currentness on the date shown. Verify any rate, threshold, deadline or regulatory status against the linked primary authority before acting.

Use this page to

  • Understand the calculation or decision rule
  • Test inputs and assumptions
  • Compare a base case with an alternative scenario
  • Verify the result against primary documents before acting

Practical control

Use the tool or guide as a decision aid, then verify the underlying assumption, product term, tax rule or statutory requirement before committing money or filing.

Reviewed for currentness, usability and source quality on 11 September 2026. Where an official source changes after this date, the official source prevails.

Check internal-audit requirement

Thresholds generally refer to the preceding financial year or any point during it as specified.
Internal audit
Main trigger

How This Is Calculated

Every listed company must have internal audit. Unlisted public companies must have it if paid-up capital is ₹50 crore or more, turnover is ₹200 crore or more, outstanding borrowings exceed ₹100 crore, or outstanding deposits are ₹25 crore or more — private companies have their own separate, generally higher threshold set.

Frequently Asked Questions

Is internal audit mandatory for every listed company?
Yes — listed companies always require internal audit regardless of size, unlike unlisted companies which are subject to specific financial thresholds.
What financial thresholds trigger internal audit for unlisted public companies?
Any one of: paid-up capital ≥₹50 crore, turnover ≥₹200 crore, outstanding borrowings >₹100 crore, or outstanding deposits ≥₹25 crore — meeting any single threshold triggers the requirement.

Evidence and verification checklist

Before relying on this page

This page is a structured implementation summary, not the operative legal text. Portal or process acceptance of a filing does not by itself establish legal compliance - the underlying classification, authority, evidence and timeline still have to be independently correct. Where the facts are contested, high-value, or time-barred if delayed, verify the current position with the official source and, where appropriate, a qualified professional before acting.

Methodology, assumptions and sources

Scope: Checks internal audit applicability under Section 138 of the Companies Act, 2013 and Rule 13 of the Companies (Accounts) Rules, based on company type and size thresholds.

Calculation logic

  1. For listed companies: internal audit is mandatory regardless of size.
  2. For unlisted public companies: mandatory if any of — paid-up share capital ≥ ₹50 crore, turnover ≥ ₹200 crore, outstanding loans/borrowings from banks/PFIs ≥ ₹100 crore, or outstanding deposits ≥ ₹25 crore (at any point during the preceding financial year) — any single threshold triggers applicability.
  3. For private companies: mandatory if turnover ≥ ₹200 crore, or outstanding loans/borrowings from banks/PFIs ≥ ₹100 crore (at any point during the preceding financial year) — note private companies are not subject to the paid-up-capital or deposits thresholds that apply to unlisted public companies.

Inputs and assumptions

Exclusions and edge cases

Sources

Review status: reviewed and approved by CA Nikhil Gupta on 8 July 2026.

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