Overview: What is Statutory Audit for a Private Limited Company?  

Under the Companies Act, 2013, every private limited company in India must conduct a statutory audit of its financial statements—regardless of turnover, profit, or business activity. This audit must be carried out by a Chartered Accountant (CA) or a firm of CAs who are appointed as the company’s statutory auditor.

A statutory audit involves a detailed examination of books of accounts, records, and vouchers to ensure they reflect a true and fair view of the company’s financial position.

Statutory Audit Due Date for FY 2024–25  

The statutory audit must be completed before the AGM (Annual General Meeting) of the company.

This deadline is based on the requirement that:

• The AGM must be held within 6 months from the end of the financial year, and

• The financial year ends on 31st March 2025.

Who Must Get Their Statutory Audit Done?  

All private limited companies registered under the Companies Act are required to comply with the audit provisions, including:

• Dormant companies

• Zero-turnover companies

• Companies with no transactions

• Closely-held family businesses

There is no exemption from statutory audit for private limited companies, irrespective of size or nature of activity.

Auditor Appointment Rules  

• Companies must appoint their first auditor within 30 days of incorporation.

• For subsequent years, auditors are appointed for a 5-year term, subject to ratification.

• Form ADT-1 must be filed with the MCA to notify the appointment.

Penalties for Missing Audit Deadlines  

Failure to conduct the statutory audit or delay in submission can lead to penalties:

• Company: Fine between ₹25,000 to ₹5,00,000

• Officers in Default (including Directors): Fine between ₹10,000 to ₹1,00,000 or imprisonment up to 1 year

Additionally, non-audited financials cannot be approved in AGM, which may trigger ROC defaults, compliance delays, and restrictions on fund-raising or borrowings.

Why Does Audit Matter for Private Limited Companies?  

Even if you’re running a small or closely-held business, statutory audit ensures:

• Transparency & Internal Control: Detect errors or fraud

• Credibility: Required for investors, banks, and due diligence

• ROC Filings: Forms AOC-4 and MGT-7 require audited financials

• Tax Compliance: Audit impacts ITR filing and audit-related disclosures

What Does Ebizfiling Do?  

Ebizfiling simplifies your compliance process by connecting your company with experienced practicing Chartered Accountants.

• We don’t conduct the audit ourselves.

• We coordinate with vetted professionals who handle the statutory audit, documentation, and sign-offs.

• We also manage your ROC filings, DIR forms, AGM drafting, and ITR submissions—ensuring a smooth compliance cycle.

Frequently Asked Questions (FAQs)