Statutory Audit Service — Company Audit by Expert CA

Yes. Every Private Limited Company — regardless of turnover, profit, or whether it has started business — must get its accounts audited by a Chartered Accountant every financial year under Section 139 of the Companies Act 2013. The audited financial statements are required for filing AOC-4 (financial statement filing) and MGT-7 (annual return) with MCA. Failure to get accounts audited can result in penalties for the company and directors.

Statutory audit is conducted under the Companies Act 2013. Its purpose is to verify that the company's financial statements present a 'true and fair view' — it focuses on accuracy and compliance with accounting standards. Tax audit under Section 44AB of the Income Tax Act is required when turnover exceeds ₹1 crore (business) or ₹50 lakh (professional). It focuses on compliance with Income Tax Act provisions. Both produce separate reports — Audit Report under Companies Act and Form 3CA/3CB/3CD under the Income Tax Act. Companies with eligible turnover require both.

CARO 2020 (Companies Auditor's Report Order, 2020) is an order issued by the Ministry of Corporate Affairs requiring auditors to report on 21 specific matters — loans, investments, fraud, statutory dues, internal financial controls, etc. CARO 2020 applies to all companies except: private companies with paid-up capital ≤ ₹1 crore AND turnover ≤ ₹10 crore AND outstanding loans ≤ ₹1 crore from banks/FIs. Most private limited companies are exempt from CARO — our CA will confirm applicability for your company.

The Companies Act requires audited financial statements to be placed before shareholders at the Annual General Meeting (AGM). The AGM must be held within 6 months of the financial year end — i.e., by September 30 for March year-end companies. Following the AGM, AOC-4 must be filed within 30 days and MGT-7 within 60 days. The tax audit report (Form 3CA/3CD) has a separate deadline of September 30. We recommend starting the audit process by July to ensure timely completion.

Key documents for statutory audit include: trial balance and general ledger; bank statements (all accounts, all months); sales invoices and purchase bills; loan agreements and statements; fixed asset register; TDS certificates (Form 26AS / AIS); GST returns (GSTR-1, GSTR-3B, GSTR-9); advance tax challans; employee salary records; and previous year's audit report and financial statements. All documents can be shared via WhatsApp in PDF or Excel format — no physical delivery required.

A qualified audit report means the auditor has found issues that prevent them from giving a clean opinion. Common causes include: material misstatements in financial statements; significant departures from accounting standards; inability to obtain sufficient evidence (limitation of scope); and undisclosed related party transactions. A qualified report can affect bank loan approvals, investor confidence, and regulatory scrutiny. Our audit process involves early identification of potential qualification issues so they can be resolved before the report is finalized.

Yes. After the audit is complete, we can also file your MCA annual returns — AOC-4 (financial statements) and MGT-7 (annual return) — as part of our annual compliance package. This saves time and ensures seamless coordination between your auditor and the MCA filing. WhatsApp us for details on our annual compliance bundle.

Form 3CD is the statement of particulars filed as part of the tax audit report. It contains 44 clauses covering all aspects of the business that the Income Tax Department wants auditors to verify and report — including depreciation, loans above ₹20,000 in cash, TDS compliance, MSME payments, payments to related parties, and more. It is a comprehensive document and getting all 44 clauses right requires careful review of the entire year's transactions. Our CA handles this thoroughly.

Missing the September 30 tax audit deadline attracts a penalty of 0.5% of turnover under Section 271B, subject to a maximum of ₹1,50,000. Missing MCA filing deadlines attracts additional fees (₹100 per day per form). Late AGM holding can result in penalties on the company and directors. More importantly, financial institutions and banks require current audited financials for loan renewals — a missed deadline can delay credit facilities. We strongly recommend starting the audit process by June/July.

Yes. Statutory audit is mandatory for all registered Private Limited Companies under the Companies Act — regardless of whether the company made a profit, a loss, or had zero transactions during the year. Even a dormant company (no transactions) must get a 'nil audit' done. The audit report for a dormant company is straightforward and costs significantly less. Do not skip the audit — it can complicate future compliance and company revival.