Audit under the Companies Act — delivered with discipline.
Statutory audit, internal audit, cost audit, secretarial audit, CARO 2020, and IFC/ICFR reporting — every form of audit mandated under the Companies Act, 2013, executed by ICAI-registered Chartered Accountants in Mumbai.
The Companies Act, 2013 sets the governance framework for every Indian company — and audit sits at the heart of it. Whether you operate a private limited, public limited, OPC, Section 8, or LLP, audit is not optional. It is the mechanism through which directors discharge their fiduciary duty and stakeholders see the business as it truly stands.
The Act mandates multiple distinct audits — statutory audit under Section 143, internal audit under Section 138, cost audit under Section 148, and secretarial audit under Section 204 — each with its own scope, applicability, and reporting format. On top of these sit CARO 2020 reporting and the audit opinion on Internal Financial Controls (IFC/ICFR).
At NDS Advisors, we handle every variant under one roof. Our audit teams understand the technical standards, the MCA expectations, and the practical realities of running a business — so the audit gets done on time, every conclusion is documented, and the report holds up to any regulator, lender, or investor that picks it up.
Audits We Conduct under the Companies Act
Statutory Audit (Sec 143)
Independent audit of financial statements under Section 143 — verifying truth and fairness in line with Accounting Standards, Ind AS, and Schedule III.
Internal Audit (Sec 138)
Mandatory internal audit for prescribed listed, public, and private companies — covering controls, processes, SOPs, and operational risk.
Cost Audit (Sec 148)
Cost records audit for specified industries — pharma, fertilisers, sugar, steel, and others — with reporting in Form CRA-3 and filing in CRA-4.
Secretarial Audit (Sec 204)
Audit of compliance with company law and securities regulations for listed and prescribed public companies, reported in Form MR-3.
CARO 2020 Reporting
Detailed reporting under the Companies (Auditor's Report) Order on PPE, inventory, loans, statutory dues, related party transactions, and more.
IFC & ICFR Reporting
Evaluation and audit opinion on Internal Financial Controls over Financial Reporting frameworks — for listed and prescribed companies.
Branch & Subsidiary Audit
Audit of branches, regional offices, and subsidiaries — feeding into consolidated reporting and group audit opinions.
Special Purpose Audits
Limited reviews, certifications, and special purpose audits required for ROC filings, due diligence, and regulatory submissions.
Our Audit Process
Appointment & Engagement
Auditor appointment formalities, Form ADT-1 filing, and a clear engagement letter with defined scope and timelines.
Planning & Risk Assessment
Walk-through of business processes, evaluation of internal controls, and audit plan tailored to your sector and risk profile.
Fieldwork & Testing
Substantive testing, ledger scrutiny, third-party confirmations, and statutory compliance verification — fully documented.
Reporting & Sign-Off
Audit opinion, CARO annexure where applicable, IFC opinion, and a separate management letter with action points.
ROC Filing Support
Assistance with Form AOC-4, MGT-7, and related post-audit ROC filings to close the annual compliance cycle.
Why Companies Act Audit Matters
Frequently Asked Questions
Every company registered under the Companies Act, 2013 — including private limited, public limited, OPC, Section 8, and small companies — must get its accounts audited annually by a qualified Chartered Accountant, regardless of turnover or profitability. LLPs are governed separately under the LLP Act and audit applies above prescribed turnover or contribution thresholds.
Only a Chartered Accountant in practice or a firm of Chartered Accountants registered with ICAI can be appointed as statutory auditor. The first auditor is appointed by the Board within 30 days of incorporation. Subsequent auditors are appointed by shareholders at the AGM for a term of five years, with Form ADT-1 filed within 15 days of appointment.
CARO 2020 (Companies Auditor's Report Order) requires auditors to report on specific matters such as property, plant and equipment, inventory, loans, related party transactions, statutory dues, and going concern. It applies to most companies — excluding small private companies, OPCs, banking companies, insurance companies, and certain Section 8 companies, subject to prescribed thresholds on paid-up capital, borrowings, and turnover.
Internal audit is mandatory under Section 138 for all listed companies and unlisted public or private companies crossing prescribed thresholds of paid-up capital, turnover, borrowings, or deposits. It can be conducted by a Chartered Accountant, Cost Accountant, or other qualified professional appointed by the Board.
Cost audit is mandated under Section 148 for companies engaged in specified industries — including pharmaceuticals, fertilisers, sugar, steel, and certain regulated sectors — where they cross prescribed turnover thresholds. The cost auditor is a Cost Accountant in practice, and reporting is done in Form CRA-3, filed with the MCA in Form CRA-4.
Secretarial audit under Section 204 is mandatory for every listed company and for public companies with paid-up capital of ₹50 crore or more, or turnover of ₹250 crore or more. It is conducted by a Company Secretary in practice and reported in Form MR-3, covering compliance with company law, securities laws, and other applicable regulations.
Auditors of listed companies and certain unlisted companies are required to report on the adequacy and operating effectiveness of Internal Financial Controls over Financial Reporting (ICFR). This involves evaluating policies, processes, and controls that ensure reliable financial reporting and prevent fraud, with conclusions included in the main audit report.
Failure to appoint an auditor or conduct an audit attracts penalties on the company, directors, and officers in default under Section 147 of the Companies Act, 2013. Penalties range from ₹25,000 to ₹5,00,000 for the company and ₹10,000 to ₹1,00,000 for officers, along with potential prosecution, adverse ROC remarks, and director disqualification.
Stay Audit-Ready, Year After Year
Partner with our team for independent assurance, stronger governance, and on-time MCA filings — every cycle, without surprises.
Talk to an Auditor or call +91 9819 000 511