Importance of Statutory Audit?
A cornerstone of corporate governance under Companies Act, 2013, providing a True and Fair view of financials for shareholders, MCA, and the Income Tax Department.
Which Companies Require It?
- Private Limited Companies — Mandatory (regardless of size)
- Public Limited Companies — Mandatory (includes CARO 2020)
- One Person Companies (OPC) — Mandatory
- Section 8 Companies (NGOs) — Mandatory
- Dormant Companies — Mandatory
- Foreign Companies with Indian business presence — Mandatory
- LLPs — Only if Turnover > ₹40L or Capital Contribution > ₹25L
Fines & Penalties
Company (Section 147)
₹25,000 – ₹5,00,000
Officer in Default
₹10,000 – ₹1,00,000 (or imprisonment up to 1 year)
Daily Delay Penalty (Form AOC-4/MGT-7)
₹100/day (no upper limit)
Director Disqualification
5 years if filings missed for 3 consecutive years
"Active Non-Compliant" MCA status
Blocks director changes, capital increase, company closure