Internal Audit

Pursuant to provisions of Section 138(1) of the Act read with Rule 13(1) of the Rules, the following class of Companies shall be required to appoint an internal auditor or a firm of internal auditors:-

  1. (A) Every listed company
  2. (B) Every unlisted public company having:
    • Paid up share capital of fifty crore rupees or more during the preceding financial year; OR
    • Turnover of two hundred crore rupees or more during the preceding financial year; OR
    • 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
    • Outstanding deposits of twenty five crore rupees or more at any point of time during the preceding financial year; AND
  3. (C) Every private company having:
    • Turnover of two hundred crore rupees or more during the preceding financial year; OR
    • Outstanding loans or borrowings from banks or public financial institutions exceed one hundred crore rupees or more at any point of time during the preceding financial year

Scope Functioning, Periodicity and Methodology for Conducting Internal Audit:

Pursuant to provisions of Section 138(2) of the Act, 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. Further as per the Rule 13(2) the Rules, Audit Committee of the Company or the Board shall, in consultation with the Internal Auditor, formulate the scope, functioning, periodicity and methodology for conducting the internal audit.

Thus, neither the Act nor the Rules illustrate the scope, functioning, periodicity and methodology for conducting the internal audit. However, the said powers have been vested to the Board or the Audit Committee of the Company.

In other words, internal auditing is a mechanism in the hand of the Board/Audit Committee of the Company and the same are to be structured in consultation with the internal audit looking into the different dynamic of the organisation.

Internal Audit Department/Pawan Hans Limited has a sanctioned strength of of 4 executives which comprises of Head of Department Deputy General Manager, two Managers (Regular) and one Junior Executive on Contract.

The Internal Audit Department is responsible for Internal Audit of Corporate Office, Regions and all bases of the Company and submission of the Internal Audit Report to the Board of Directors. In addition to Internal Audit responsibility the Department also carries out special investigation and related value added tasks on request from Senior Management.

Having an In-house Internal Audit Department has many advantages including retention of knowledge and learning, development of captive expertise, personnel with business knowledge, receptiveness of auditee, confidentiality and having resources at hand to undertake varied investigations

The area of Audit comprises departments including Operations, Materials, Stores, Engineering, Finance & Accounts, Administration, Human Resource, Marketing, Information Technology, Safety and allied activities.

The audit involves reporting on non compliances both statutory and non statutory compliances but also assessment of the efficiency and efficacy of the extant system & procedures. That is proprietary in running of systems and procedures.

For More Informations, Please Contact

Sh. Ashish Yadav
DGM (Internal Audit)
Phone: 0120-2476778
Fax:
E-Mail: ashish.yadav@pawanhans.co.in
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