Statutory Audit Services
Statutory Audit Services
Statutory audit is an independent examination of a companys financial records by a Chartered Accountant as a Statutory Auditor. The auditor verifies whether the financial statements, Balance Sheet, Profit & Loss Account and Cash Flow Statement, gives true and fair picture of the companys financial position. If your company is registered under Companies Act 2013, statutory audit is not optional, its a legal requirement every single financial year. No turnover threshold, no exemption, every company must comply from its very first year of incorporation itself. The word “statutory” simply means its required by law, specifically the Companies Act, 2013.
Who Needs Statutory Audit?
| Type | Mandatory? |
Private Limited Company | Yes, Mandatory |
Public Limited Company | Yes, Mandatory |
LLP (above threshold) | Yes, Mandatory |
OPC, One Person Company | Yes, Mandatory |
Section 8 Non-Profit Company | Yes, Mandatory |
Proprietorship / Partnership | Not under Companies Act |
Auditor Rotation Rules
Company Type | Rotation Rule |
Listed Companies | Individual CA after 5 years, Firm after 10 years |
Private Companies (non-small) | Appointed for 5 year block, reappointment is allowed |
Small Companies | No mandatory rotation required |
Rotation rules are there to ensure auditor stays independent and dont develop too much familiarity with management over the years.
Real Business Benefits of Statutory Audit
Beyond just legal compliance, statutory audit adds genuine value to your business in many ways,
For Bank Loans
Banks require audited financials for credit appraisal. A clean audit report strengthens your loan application significantly and speeds up approval process.
For Fundraising and Investment
Investors and VCs rely heavily on audited statements before committing any funds. Unaudited books is almost always a dealbreaker for serious investors.
For Government Tenders
Most government tenders require audited financials for last 2 to 3 years. Without it you cannot even participate in bidding process.
For Mergers and Acquisitions
During due diligence, audited books speeds up the process and builds buyer confidence considerably.
For Internal Financial Discipline
Audit findings highlight internal control gaps, helping management fix problems before they becomes costly issues later.
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FAQs on Statutory Audit Services in Delhi
Yes. Even a dormant company with zero transactions must get its accounts audited annually. There is no exemption based on activity or turnover for companies.
No. Companies Act strictly prohibits appointment of auditors who have any financial or personal relationship with the company or its directors.
No. Statutory audit is mandatory from very first year of incorporation regardless of turnover or business activity level.
Books of accounts, bank statements, invoices, contracts, fixed asset register, GST returns, TDS returns, board resolutions and previous year audit report.
Yes, same CA firm can conduct both. In fact its more efficient as auditor already have thorough understanding of your financials from statutory audit.
LLPs with turnover exceeding Rs. 40 lakhs or contribution exceeding Rs. 25 lakhs are required to get accounts audited under LLP Act.
Final Thought: We always recommend to choose your expert wisely, because it’s a legal and social responsibility as well. Just as you would only allow a trained driver to drive your favourite car.