Statutory Audit of Companies
Every company in India must have its annual financial statements audited by an independent chartered accountant under the Companies Act, 2013. We get your books audit-ready and work alongside your independent auditor, so the signed report is ready well before the AGM and the AOC-4 deadline.
What it is
A statutory audit is the yearly audit the law requires. An independent chartered accountant examines the company’s books and gives an opinion on whether the balance sheet and profit and loss statement show a true and fair view. The audited set then goes to shareholders and the Registrar of Companies (ROC).
The rules sit in Sections 139 to 147 of the Companies Act, 2013. Section 139 covers appointment, Section 141 eligibility and Section 143 the auditor’s report. That report includes the Companies (Auditor’s Report) Order, 2020 (CARO 2020) where it applies. The audited statements are filed in Form AOC-4 on the MCA V3 portal.
Who it applies to
Every company, whatever its size
Private, public, One Person and Section 8 companies all need an audit every year. Picture a Faridabad company incorporated in 2024 that never started trading. It still needs an auditor and an audited balance sheet.
LLPs above the audit limits
An LLP needs an audit once turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh in a year.
Why it matters
File AOC-4 on time
Form AOC-4 carries the audited statements and the auditor’s report. No audit, no AOC-4, and the late fee starts running.
Keep lenders and investors confident
Lenders want audited statements at every renewal; so do investors.
Build the tax return on audited numbers
Your ITR-6 and any Section 44AB tax audit report start from the audited accounts.
Statutory audit, tax audit and internal audit compared
| Statutory audit | Tax audit | Internal audit | |
|---|---|---|---|
| Law | Companies Act, 2013 (ss. 139–147) | Section 44AB, Income-tax Act, 1961 (Section 63 of the 2025 Act from tax year 2026-27) | Section 138, Companies Act, 2013 |
| Who needs it | Every company; LLPs above limits | Businesses above turnover limits (₹1 crore, or ₹10 crore with low cash) | Listed companies and larger unlisted companies |
| Report | Auditor’s report, CARO 2020 where applicable | Form 3CA or 3CB with Form 3CD | Report to the board or audit committee |
| Filed with | ROC, as part of AOC-4 | Income Tax e-filing portal | Not filed |
Here is the catch. A growing Ballabgarh trading company that crosses the tax audit limit needs both audits in the same season. In practice, one chartered accountant often does both, back to back, on the same closed books.
Documents required
Books and records
- Final books of account in your accounting software
- Bank statements and reconciliations for all accounts
- Fixed asset register and stock records
Tax and statutory filings
- GST returns, including GSTR-3B and GSTR-1
- TDS returns and challans
- Previous year’s audited financial statements
Company secretarial records
- Minutes of board and general meetings
- Related party list and transactions
- Balance confirmations from major parties
How it works
Confirm the auditor’s appointment
We check that an eligible auditor is in place: a first auditor appointed within 30 days of incorporation, or a five-year AGM appointment with Form ADT-1 filed within 15 days.
Close the books and prepare the financials
We finish the bank, GST and TDS reconciliations and draft the financial statements in Schedule III format.
Carry out the audit fieldwork
The auditor vouches transactions, checks inventory and assets, reviews loans and related party dealings, and questions figures that do not add up.
Issue the audit report
The auditor signs the report with a UDIN, adding CARO 2020 and the internal financial controls report where they apply. The audit is always done and signed by an independent practising chartered accountant or CA firm, never by the team that keeps your books.
Approve, adopt and file
The board approves the accounts, shareholders adopt them at the AGM, and we file AOC-4 within 30 days with your annual ROC compliance.
Timelines
First auditor within 30 days
The board appoints the first auditor within 30 days of registration; failing that, members do so at an EGM within 90 days.
AGM by 30 September
The AGM must be held within six months of the financial year end, so by 30 September 2026 for FY 2025-26. A company’s first AGM can be held within nine months of its first year end.
AOC-4 within 30 days of the AGM
Audited financial statements go to the ROC within 30 days of the AGM. An OPC files within 180 days of the year end. A tax audit report, if needed, is due by 21 October 2026.
What happens if the audit is delayed
Pay ₹100 a day on AOC-4
A late AOC-4 costs an additional fee of ₹100 a day, with no cap. Section 137(3) also allows a penalty of ₹10,000 plus ₹100 a day, up to ₹2 lakh for the company and ₹50,000 for each officer in default.
Face a Section 147 fine
Not appointing an auditor, or another breach of Sections 139 to 146, can cost the company ₹25,000 to ₹5 lakh and each officer in default ₹10,000 to ₹1 lakh under Section 147.
Lose your directors for five years
If financial statements or annual returns are not filed for three continuous financial years, every director becomes ineligible under Section 164(2)(a) for five years.
Frequently asked questions
Is a statutory audit compulsory for a company with no turnover?
Yes, every company must have its accounts audited, even with zero turnover. The Companies Act, 2013 requires an auditor for every company, with no size exemption. A dormant or newly started company still needs an auditor, an audited balance sheet and an AOC-4 filing each year. A company with few transactions has a short audit.
Who can be appointed as the statutory auditor?
Only a chartered accountant in practice, or a CA firm or LLP, can be appointed under Section 141(1). Section 141(3) disqualifies, among others, a body corporate other than an LLP, an employee of the company, a person auditing more than 20 companies, and anyone providing the services barred by Section 144. The auditor certifies eligibility in writing before appointment, so it is settled upfront.
Can our accountant also be our statutory auditor?
No, Section 144 bars the auditor from providing accounting and book-keeping services to the same company. Internal audit, management services and several other services are also on that list. So if one firm keeps your books, a different independent chartered accountant must audit them. That separation is what gives the report its weight.
How long is a statutory auditor appointed for?
An auditor appointed at an AGM holds office until the end of the sixth AGM, a five-year term, under Section 139(1). The first auditor, appointed by the board within 30 days of incorporation, holds office only until the first AGM. The company files Form ADT-1 within 15 days of the appointment, and annual ratification is no longer required.
Does CARO 2020 apply to my private company?
CARO 2020 does not apply to OPCs, small companies, banking and insurance companies, and Section 8 companies. A private company is also exempt if all four hold together. It is not a holding or subsidiary of a public company. Its paid-up capital plus reserves is ₹1 crore or less. Its bank and financial-institution borrowings never exceed ₹1 crore in the year. Its revenue is ₹10 crore or less. We check each one for you.
What is a small company for audit purposes?
Since 1 December 2025, a small company is a private company with paid-up capital up to ₹10 crore and turnover up to ₹100 crore. Holding and subsidiary companies, Section 8 companies and companies under special Acts are excluded. Small companies are outside CARO 2020 and internal financial controls reporting, and they file the shorter MGT-7A annual return.
Does the auditor report on internal financial controls?
Yes, under Section 143(3)(i), unless the company is exempt. The MCA notification of 13 June 2017 exempts OPCs, small companies, and private companies with turnover below ₹50 crore or borrowings below ₹25 crore. They must have no default in filing financial statements or annual returns. Everyone else gets this report yearly, so written approval procedures help.
Do LLPs need a statutory audit?
Only above the limits. An LLP must get its accounts audited if its turnover exceeds ₹40 lakh or its partners’ contribution exceeds ₹25 lakh in the financial year. Below both limits, the audit is optional unless the LLP agreement requires it, and a designated partner certifies the statement of accounts in Form 8. We tell you where you stand before the year closes.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
There is no government fee for the audit itself. Filing the audited statements in AOC-4 carries a normal fee based on authorised capital:
| Authorised capital | AOC-4 normal fee |
|---|---|
| Below ₹1 lakh | ₹200 |
| ₹1 lakh to below ₹5 lakh | ₹300 |
| ₹5 lakh to below ₹25 lakh | ₹400 |
| ₹25 lakh to below ₹1 crore | ₹500 |
| ₹1 crore and above | ₹600 |
Filed late, AOC-4 adds ₹100 for every day of delay. Check the fee on the MCA V3 portal before you pay.
Ready to begin?
Send us your trial balance and last year’s accounts, and we will plan your audit so the AGM and AOC-4 land on time.