Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
All companies, every year
Incorporation itself triggers the requirement — there’s no turnover threshold for a company’s statutory audit.
Even with no activity
A dormant or zero-turnover company still needs the audit and the annual ROC filing.
What the audit involves
The statutory auditor examines the books, vouches transactions on a sample basis, verifies balances, and gives an opinion on whether the financial statements show a true and fair view under the Companies Act and the applicable accounting standards. The first auditor must be appointed by the board within 30 days of incorporation; thereafter shareholders appoint the auditor at the AGM and the company files Form ADT-1. Even a brand-new company with one month of operations, or a dormant company with none, needs the audit before it can finalise accounts and file AOC-4 and MGT-7 with the Registrar. Skipping it stalls every downstream filing. The auditor also reports on internal financial controls for applicable companies and may flag matters in the report; resolving those points early keeps the accounts clean and the AGM on schedule.