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.
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.
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.
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 :
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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