MCA guidelines for accounting and auditing for private limited companies

In spite of the size or nature of a business, each private restricted organization should get its records reviewed by sanctioned bookkeepers before the finish of the monetary year. This errand of guaranteeing consistence likewise incorporates the choice of an examiner. The inspector should evaluate the records of the business and produce the review report and the examined monetary reports which they should likewise outfit to the Registrar of Companies.

  • Appointment of Auditors

After incorporation of a company in the first annual general meeting, an Auditor must be appointed by the Board of Directors. The Auditor will typically hold term till the conclusion of 6th AGM or 5 years. The appointment of an Auditor can also be made for a period of 1 year, renewable at each annual general meeting.

Before the appointment of the Auditor, a written consent along with Certificate must be obtained from the CA, that he/she is eligible for appointment as Auditor of a company and that the proposed appointment is in accordance with the Companies Act.

  • Annual General Meeting

According to Section 96 of the Companies Act, 2013 (“CA, 2013”), each organization is needed to finish its organization yearly documenting commitment, for which it needs to hold an Annual General Meeting (AGM) inside a half year after the monetary year closes or the inside 9 months by and large.

To hold an AGM, which is essential for a Private restricted organization, such a gathering examines the issues identifying with the arrangement of inspectors, assertion of profits, choices for chief’s compensations and other legal approaches for the organization. AGM can be led anyplace in the enlisted premises of business and within the sight of the necessary creation of chiefs and individuals


               Each organization is needed to record the yearly records and yearly return according to The Companies Act, 2013 inside 30 days and 60 days individually from the finish of the Annual General Meeting. The ROC recording of yearly records is represented under Section 129 (3), 137, of The Companies Act , 2013 read with Rule 12 of the Company (Accounts) Rules, 2014 and yearly return is administered under Section 92 of the Companies Act, 2013 read with Rule 11 of the Companies (Management and Administration) Rules, 2014

  • Director Report

Section 134 of the Act determines for accommodation of Director Report expressing their status in the organization and property in different organizations alongside other required subtleties.

  • Audit Compliance & Appointment of Auditor

To guarantee that each organization in their yearly recording consistence presents a valid and reasonable perspective on its monetary position, Section 139 of the Companies Act, 2013 states for legal review of the organization by an Auditor.

On planning of records by a private ltd organization, the equivalent must be inspected through a confirmed Chartered Accountant or expert as advised under Section 141 of the demonstration. The inspector will be capable to present the checked reports to the ROC.

For the arrangement of evaluator in a Private restricted organization, Form ADT – 1 will  must be utilized. The evaluator will be named for a square of 5 years. 

  • Filling of Income Tax Return

Section 208 of the Income Tax Act, 1961 specifies for the entities that are required to pay advance tax to the government. A private Ltd. company before lapsing   of the due date have to file advance tax to government quarterly.

As said earlier, the financials of the company are to be audited from a tax auditor or a professional appointed for successful filling of Income-tax return.

  • Maintenance of Statutory Registers and Records

Section 88 of the Companies Act orders each private restricted organization enrolled to keep a record, everything being equal, and books of records of the organization at a fitting spot available by specialists. The spot can either be the enlisted office of the organization or at a spot alluded by the organization reports.

The records as a piece of the organization’s yearly documenting consistence and conservation rules are to be saved for a base residency of 8 years.

  • Income Tax Compliances

The following is the required income tax compliances that must be adhered to:

  • Computation and quarterly payment of advance tax is a must
  • Documentation of income tax returns (tax has to be paid at a rate of 30% in addition to cess )
  • Tax audit (compulsory if business turnover or gross revenue of a business surpasses ₹ 1 crore in the year prior to the evaluation year.)
  • Tax audit report filing is all For resistance with the above arrangements, the organization as well as each individual found in default will be accused of tremendous money related punishments which may even stretch out to detainment in serious cases. so a necessary requirement


  • Consequences for Non-compliance

For resistance with the above arrangements, the organization as well as each individual found in default will be accused of tremendous money related punishments which may even stretch out to detainment in serious cases.