Statutory Audit
Companies Act audits for Pvt Ltd & LLPs
Independent statutory audit with CARO reporting, IND-AS/AS compliance review and board-ready financial statements.
What's included
- Financial statement audit
- CARO 2020 reporting
- Internal control review
- AGM & ROC filing support
Understanding Statutory Audit
A statutory audit is the independent examination of a company's financial statements mandated by the Companies Act, 2013 under Sections 139 to 143. Unlike a tax audit, there is no turnover threshold: every company registered in India — private limited, one person company or public — must have its accounts audited every year, even if it did zero business. The auditor reports to the shareholders on whether the financial statements give a true and fair view, and the signed report accompanies your annual filings with the ROC.
The scope goes well beyond ticking totals. The auditor reports under Section 143 on internal financial controls, loans and investments, fraud indicators, and — for companies covered by CARO 2020 — on 21 specific matters ranging from property records and inventory to loan defaults, benami proceedings and undisclosed income. Audit quality is now supervised by the NFRA for larger entities and by ICAI's disciplinary framework generally, so cutting corners is not an option for any credible firm.
For FY 2025-26, your audited financials must be adopted at the AGM, due by 30 September 2026 for most companies, and then filed in Form AOC-4 within 30 days of the AGM. LLPs above ₹40 lakh turnover or ₹25 lakh contribution also need an audit under the LLP Act. We complete standard private company audits in 2 to 3 weeks, including CARO reporting where applicable, for a transparent fee starting at ₹14,999.
Who needs this?
Every private limited company
All companies incorporated under the Companies Act must appoint an auditor and get annual accounts audited — even dormant, loss-making or zero-revenue companies. There is no exemption based on size.
One person companies and small companies
OPCs and small companies enjoy relaxations in board meetings and cash flow statements, but the statutory audit itself remains fully mandatory every year.
LLPs above the audit threshold
LLPs with turnover above ₹40 lakh or partner contribution above ₹25 lakh in a financial year must have their accounts audited under Rule 24 of the LLP Rules.
Startups raising or planning to raise funding
Investors, incubators and due-diligence teams expect clean audited financials from day one. A qualified or delayed audit report is a red flag during fundraising.
Subsidiaries of foreign companies
Indian subsidiaries need statutory audits both for local compliance and for group consolidation, often against tighter parent-company reporting calendars.
Companies changing or appointing first auditors
A newly incorporated company must appoint its first auditor within 30 days of incorporation via the board. We handle appointment formalities, ADT-1 filing and the audit together.
When this is NOT the right fit
| Your situation | What applies instead |
|---|---|
| ✕Sole proprietorships and ordinary partnership firms | Statutory audit under the Companies Act applies only to companies (and LLPs under LLP law). Proprietorships and partnerships may instead need a tax audit under Section 44AB if turnover crosses the limits. |
| ✕LLPs below ₹40 lakh turnover and ₹25 lakh contribution | These LLPs are exempt from mandatory audit, though partners can opt for a voluntary audit for lender or investor comfort. |
| ✕You need the same CA who does your accounting to sign the audit | Section 144 prohibits the statutory auditor from providing bookkeeping and certain other services to the same company. Independence rules mean the audit must be arms-length from accounting work. |
| ✕Backdated or signature-only audits | We do not sign audit reports without performing actual audit procedures, and NFRA and ICAI actively prosecute such conduct. Genuine audits protect directors too. |
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Documents you'll need — and why
Final trial balance and draft financial statements
The audit is performed on these; if statements are not drafted, we can prepare Schedule III-compliant financials as a separate pre-audit step.
Complete books of account with supporting vouchers
Section 143 requires the auditor to obtain sufficient evidence for material balances — sales, purchases and expenses are verified against underlying documents.
Bank statements, loan sanction letters and repayment schedules
CARO 2020 requires specific reporting on loan defaults, end-use of borrowings and working capital returns filed with banks against book figures.
Statutory registers, board minutes and previous ROC filings
Related party transactions, loans to directors under Section 185, and share allotments must be traced to board and shareholder approvals.
Fixed asset register and title deeds of immovable property
CARO clause 3(i) requires the auditor to report whether property records are maintained and title deeds are held in the company's name.
GST, TDS and PF/ESI returns with challans
CARO requires reporting on regularity of statutory dues and disclosure of amounts outstanding beyond six months.
Related party list and transaction details
AS-18/Ind AS 24 disclosures and Section 188 compliance are audit focus areas, and misreporting here is a common NFRA finding.
Previous year's signed audit report and financials
Opening balances must be verified and comparative figures agreed, especially if we are taking over from another auditor.
How it works, step by step
- 1
Appointment formalities and planning
Days 1-3Auditor consent, eligibility certificate, board/AGM appointment and ADT-1 filing where needed; we then plan the audit around your materiality and risk areas.
- 2
Fieldwork and verification
Days 4-10Vouching, bank and loan confirmations, statutory dues checks, fixed asset and inventory verification, related party testing and internal control walkthroughs.
- 3
Schedule III financials and CARO reporting
Days 10-14We finalise the balance sheet, P&L and notes in Schedule III format and prepare CARO 2020 responses clause by clause where the order applies.
- 4
Management discussion and draft report
Days 14-17Audit observations, proposed adjustments and any qualification are discussed with directors; management representation letter is obtained.
- 5
Signing and filing support
Days 17-21UDIN-authenticated signed report and financials are issued for the AGM; we support AOC-4 and MGT-7/7A filings so the audit actually reaches the ROC.
Due dates to know
AGM for FY 2025-26 (accounts adoption)
30 September 2026
First AGM of a new company can be held within 9 months of first FY-end.
AOC-4 filing (audited financials to ROC)
Within 30 days of AGM
Typically 29 October 2026 if the AGM is held on 30 September.
MGT-7/7A annual return
Within 60 days of AGM
LLP Form 8 (statement of accounts)
30 October 2026
Audited where the LLP crosses the ₹40 lakh/₹25 lakh thresholds.
What non-compliance costs
Company fails to comply with audit and financial statement provisions
Late AOC-4 filing costs ₹100 per day without upper limit, plus penalties on the company and every defaulting officer under the Companies Act.
No auditor appointed / audit not conducted
The company cannot legally adopt or file accounts; the company and officers face monetary penalties, and continued default can feed into director disqualification and strike-off proceedings.
Fraud or misstatement discovered in audited accounts
Section 147 penalties for auditors and Section 448 prosecution for false statements by management — one reason we insist on genuine verification, not signature audits.
Why doing this right pays off
Clean compliance record with the ROC
Timely audited financials keep AOC-4 and MGT-7 on schedule, protecting directors from daily late fees, disqualification risk and strike-off notices.
Fundraising and bank readiness
Three years of clean audit reports are the first thing investors and credit teams request. We keep your file diligence-ready.
CARO 2020 done properly
All 21 CARO clauses answered with working papers behind them — not boilerplate — so the report withstands NFRA-era scrutiny.
Early warning on control gaps
Audit observations on cash handling, approvals and reconciliations give directors a practical to-fix list, not just a signed report.
One team for audit-to-filing
From ADT-1 to AOC-4, appointment, audit and ROC filings are coordinated in one place, so nothing falls between your CA and your CS.
Common DIY mistakes we see
- Assuming a dormant or zero-revenue company can skip the audit — the Companies Act has no turnover exemption.
- Leaving the audit until September, then discovering unreconciled inter-company balances or missing loan confirmations days before the AGM deadline.
- Having the same person do bookkeeping and sign the statutory audit, which violates Section 144 independence rules.
- Ignoring CARO items like title deeds and quarterly stock statements filed with banks until the auditor asks — these need time to retrieve.
- Treating director loans and related party transactions casually, without board approvals, leading to qualified reports.
Frequently asked questions
Yes. Statutory audit is mandatory for every company regardless of turnover or activity — a NIL company still needs audited financials, an AGM and ROC filings. The good news: dormant-company audits are quick and sit at the bottom of our fee range.
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All-inclusive professional fee. Government fees (if any) extra at actuals.
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Tax audit report due — FY 2025-26
30 September 2026 — book now and beat the last-minute rush.