Audit · Companies Act, 2013

Audit — Companies Act, 2013 delivered with discipline.

Statutory audit, internal audit, cost audit, secretarial audit, CARO 2020, and IFC/ICFR reporting — every audit mandated by the Companies Act, 2013, executed by ICAI-registered Chartered Accountants in Mumbai.

The Companies Act, 2013 sets the governance and compliance 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 any other form of company, statutory 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.

At NDS Advisors, we handle every variant under one roof. Our audit teams know 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.

Our Audit — Companies Act, 2013 Services

Statutory Audit (Sec 143)

Independent audit of financial statements — verifying truth and fairness in line with Accounting Standards, Ind AS, and Schedule III of the Companies Act, 2013.

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 — with reporting in Form CRA-3 and MCA filing in Form 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 on property, plant and equipment, inventory, loans, related party transactions, statutory dues, and going concern.

IFC & ICFR Reporting

Evaluation and audit opinion on Internal Financial Controls over Financial Reporting 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 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 an 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 It Matters

✓Mandatory compliance with the Companies Act, 2013

✓True and fair view of financial statements confirmed

✓Detects errors, irregularities, and internal control gaps

✓Strengthens investor and lender confidence

✓Aligned with AS, Ind AS, and Schedule III requirements

✓Reduces risk of MCA, ROC, and NFRA penalties

✓Strengthens IFC/ICFR and corporate governance

✓Supports smooth fundraising, listing, and due diligence

Frequently Asked Questions

Every company registered under the Companies Act, 2013 — including private limited, public limited, OPC, and Section 8 companies — must get its accounts audited annually by a qualified Chartered Accountant, regardless of turnover or profitability.

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 at the AGM for a five-year term, with Form ADT-1 filed within 15 days.

CARO 2020 requires auditors to report on specific matters including PPE, 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.

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 in specified industries — including pharmaceuticals, fertilisers, sugar, and steel — where they cross prescribed turnover thresholds. The cost auditor is a Cost Accountant in practice, reporting in Form CRA-3 and filing in Form CRA-4.

Failure to appoint an auditor or conduct an audit attracts penalties under Section 147 — ranging from ₹25,000 to ₹5,00,000 for the company and ₹10,000 to ₹1,00,000 for officers in default — 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.