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Statutory / Tax Audit of the Company
An audit is a legally required review and
reporting of the accuracy of the company's
financial records. The purpose of an audit
is to determine whether an organization is
providing a fair and accurate representation
of its financial position by examining
information such as bank balances,
bookkeeping records and financial
transactions.
A company is required to have its accounts
audited by an independent Chartered
Accountant as defined under The Companies
Act.
In case its turnover for a financial year
exceeds INR 6 Million, it is also required
to perform and report an independent audit
under sec 44 AB of The Income Tax Act.
Filing of Income Tax Return
Subsequent to completion of Audit, the
summarized details are required to be filed
with the Income Tax Authorities in
prescribed form on an annual basis.
Also the company is required to ascertain
its “taxable income” as per provisions of
Income tax act and pay the taxes due
thereon.
Filing of returns is mandatory for all
companies and any lapses would attract
penalty and interest.
Filing of Annual return with Registrar Of
Companies (ROC)
A company in India is required to file its
return outlining prescribed details with
Registrar of Companies on annual basis.
The same is required to be filed in
electronic form and the return is popularly
called as ANNUAL RETURN.
Any lapses in filing these returns will make
company as “defaulter” and also its
directors name can be reflected as
“defaulters” under ROC.
Maintenance of Secretarial Records
A company is required to hold meetings of
its Board of Directors as per provision of
companies act and is also required to
maintain prescribed statutory registers. The
various registers includes :
-
Minutes of the
meeting of the Board
of Directors
-
Minutes of the
meeting of the
shareholders of the
company
-
Shareholders
Register
-
Register of advances
made to parties
covered u/s 301 of
The Companies Act
-
Register of charges
created etc.
Filing of forms/returns
under Foreign Exchange
Management Act (FEMA)
In cases where company
receives capital or loan
from persons or
companies residing
outside India or deals
with Foreign Exchange
(except in routine
course of import and
export), provisions of
FEMA are attracted.
As per FEMA Provisions,
prescribed forms are
required to be filed
with Reserve Bank of
India or their
authorized Dealers
(bank).
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