Overview
An audit is an independent examination of your books and financial statements by a Chartered Accountant, resulting in a signed opinion or report that regulators, banks, investors and tax authorities rely on. Different laws require different audits: the Companies Act, 2013 (statutory audit), the Income-tax Act (tax audit), the LLP Act, and GST law (reconciliation statement).
Beyond compliance, a good audit surfaces revenue leakage, weak controls, unreconciled balances and tax exposure early — when they are still cheap to fix. Our approach is risk-based and evidence-driven, with findings explained in plain language to owners and boards.
PADM India performs statutory audits of companies, tax audits of businesses and professionals, LLP audits, internal and management audits, stock and receivables audits for lenders, GSTR-9C reconciliation, and certifications (net-worth, turnover, 15CB, utilisation certificates).
Who needs this service
- Every private limited, public and one-person company (statutory audit is mandatory regardless of size)
- LLPs with turnover above ₹40 lakh or partner contribution above ₹25 lakh
- Businesses with turnover above ₹1 crore (₹10 crore if cash receipts and payments are each ≤5%)
- Professionals with gross receipts above ₹50 lakh
- Presumptive-scheme taxpayers declaring profit below 8%/6% (44AD) or 50% (44ADA) with income above the exemption limit
- Businesses whose lenders, investors, franchisors or grant-givers require audited statements or special-purpose reports
Eligibility & legal requirements
When an audit is compulsory (FY 2025-26 thresholds; the same limits continue under sections 62–63 of the Income-tax Act, 2025):
Eligibility rules for Auditing & Assurance
| Category | Rule |
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| Statutory audit — companies | Mandatory for every company under section 139 of the Companies Act, 2013, from the first financial year, irrespective of turnover or profit. Auditor appointed within 30 days of incorporation and ratified at the AGM. |
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| Statutory audit — LLPs | Required only if turnover exceeds ₹40 lakh or contribution exceeds ₹25 lakh in the financial year (Rule 24, LLP Rules, 2009). |
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| Tax audit — business (s. 44AB(a) / s. 63) | Turnover above ₹1 crore. Raised to ₹10 crore where cash receipts ≤5% of all receipts AND cash payments ≤5% of all payments (both conditions). |
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| Tax audit — profession (s. 44AB(b)) | Gross receipts above ₹50 lakh. No enhanced digital limit for professionals. |
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| Tax audit — presumptive scheme opt-outs (s. 44AB(c)–(e)) | Business under 44AD declaring profit below 8% (6% digital) or exiting the scheme within the 5-year lock-in; profession under 44ADA declaring below 50% — in each case where total income exceeds the basic exemption limit. Presumptive limits: 44AD ₹2 crore (₹3 crore if 95% digital); 44ADA ₹50 lakh (₹75 lakh if 95% digital). |
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| GST reconciliation statement (GSTR-9C) | Self-certified reconciliation required where aggregate turnover exceeds ₹5 crore; GSTR-9 annual return above ₹2 crore. |
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| Books of account (s. 44AA / s. 62) | Individuals and HUFs in business must maintain books if income exceeds ₹2.5 lakh or turnover exceeds ₹25 lakh in any of the three preceding years (₹1.2 lakh / ₹10 lakh for other entities); specified professionals above ₹1.5 lakh gross receipts. Presumptive-scheme taxpayers declaring the prescribed profit are exempt. |
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How to apply — step by step
The official procedure, and how PADM India runs it for you.
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01
Engagement and scoping
We confirm which audits apply, issue the engagement letter, and agree the timeline so reports are filed well before the statutory dates.
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02
Planning and risk assessment
We study the business, previous reports and key systems, identify high-risk areas (revenue, inventory, related parties, GST/TDS) and set materiality.
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03
Fieldwork
Vouching, ledger scrutiny, bank and party confirmations, physical verification of stock and fixed assets, GST-2B / 26AS / AIS reconciliations, and testing of internal controls.
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04
Findings discussed with you
Every observation is discussed before it is written; you get the chance to fix reconcilable items and provide explanations.
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05
Reporting and filing
Audit report and financial statements under the Companies Act; Form 3CA/3CB with the 3CD statement uploaded on the e-filing portal and accepted by you with your DSC; GSTR-9C certified and filed.
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06
Management letter and follow-up
A separate letter lists control weaknesses and process recommendations, with a follow-up review the next year.
Documents required
- Trial balance, ledgers and journals (Tally / Zoho / Busy backup or accountant access)
- Bank statements, loan statements and fixed-deposit confirmations for the full year
- Sales and purchase registers, GST returns filed (GSTR-1, 3B, 2B downloads)
- TDS returns, challans, Form 26AS and AIS
- Fixed-asset register, stock records and year-end physical count sheets
- Statutory registers, board minutes and previous year audited accounts (companies)
- Loan agreements, related-party details, contingent liabilities and legal correspondence
Key deadlines & penalties
Statutory dates for FY 2025-26:
Key deadlines for Auditing & Assurance
| Compliance | Due |
|---|
| Tax-audit report (3CA/3CB-3CD) upload | 30 September 2026 (one month before the ITR due date) |
| ITR for audited assessees | 31 October 2026 |
| Transfer-pricing report (3CEB) and ITR | 31 October / 30 November 2026 |
| Company AGM (adoption of audited accounts) | Within 6 months of year-end — 30 September 2026 |
| AOC-4 (audited financials to ROC) | 30 days from the AGM — 30 October 2026 |
| LLP Form 8 (statement of account and solvency) | 30 October 2026 |
| GSTR-9 / GSTR-9C | 31 December 2026 |
See every due date in the Tax & Compliance Calendar
If you miss it:
- Tax audit not done / report not filed: 0.5% of turnover or gross receipts, maximum ₹1,50,000 (s. 271B; s. 446 of the 2025 Act)
- Books not maintained when required: ₹25,000 (s. 271A)
- Company without an auditor / accounts not audited: fine on the company and every officer in default under the Companies Act; ROC filings cannot be completed
- GSTR-9C not filed: general penalty up to ₹25,000 under CGST plus equal SGST
Frequently asked questions
Yes, where both apply. The statutory audit is mandatory for every company; the tax audit applies additionally once turnover crosses ₹1 crore (or ₹10 crore digital). For audited companies the tax-audit report is in Form 3CA.
Not under section 44AB(a) if both cash receipts and cash payments are within 5% of the respective totals. You can also consider the 44AD presumptive scheme if you are eligible and 95% of receipts are digital. We will check both tests on your actual figures.
A periodic, management-directed review of controls, processes and compliance. Listed companies and larger unlisted companies (turnover ₹200 crore+, borrowings ₹100 crore+, etc.) must appoint an internal auditor under section 138; smaller businesses use it voluntarily to prevent leakage and fraud.
No. Independence rules prohibit the statutory auditor from also maintaining the books. We will do one or the other and can recommend a trusted firm for the other role.
Sources & official references
Thresholds, forms and due dates on this page reflect the law as verified on 6 September 2026 and may change with Finance Acts, CBDT/CBIC notifications or MCA circulars. This page is general information, not legal or tax advice — please confirm your specific position with us before acting.
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