Audit & Assurance services in Gachibowli

Statutory Audit

A Statutory Audit is a legally mandated audit carried out under various statutes such as the Companies Act, Income Tax Act, GST Act, or regulations by the Reserve Bank of India. It is conducted by a Chartered Accountant to ensure compliance, accuracy, and fairness in the financial reporting of the entity.

Entities Requiring Statutory Audit

Statutory audits are applicable to a wide range of organizations as per respective legal requirements. We offer audit services for the following entities:

• Private Limited Companies

• Public Limited Companies

• Section 8 Companies (Non-Profit Organizations)

• Limited Liability Partnerships (LLPs)

• One Person Companies (OPCs)

• Bank Branches (Bank Branch Audit under RBI guidelines)

• Partnership Firms

• Trusts and NGOs

Purpose of Statutory Audit

The key objective of a statutory audit is to ensure the financial statements present a true and fair view of the company’s financial position. It enhances transparency, strengthens compliance, and assures stakeholders of the organization’s integrity.

Benefits of Availing Statutory Audit Services

• Ensures compliance with regulatory requirements

• Improves financial credibility and investor confidence

• Detects and prevents er

Overview of Tax Audit

The Government of India conducts various types of audits under different laws such as company audits, cost audits, and stock audits. Similarly, under the Income Tax Act, ‘Tax Audit’ has been made mandatory to simplify the process of income computation for filing returns. Tax audit, defined under Section 44AB of the Income Tax Act, 1961, involves a review of business or professional accounts by a Chartered Accountant.

Who is Required to Undergo Tax Audit?

Business: If annual gross turnover exceeds ₹1 crore.

Profession: If gross receipts exceed ₹50 lakh.

Presumptive Taxation Scheme – Section 44AD

Applicable for businesses with turnover up to ₹2 crore.

Books of accounts not required to be maintained.

Net income presumed at 8% of gross turnover (6% for digital receipts).

Assessee opting for this scheme must continue for 5 financial years.

File ITR-4 to avail the scheme.

Presumptive Taxation Scheme – Section 44ADA

Applicable for professionals with gross receipts up to ₹50 lakh.

No need to maintain books of accounts.

Net income presumed at 50% of gross receipts.

Once opted, must continue for 5 financial years.

How to Avoid Tax Audit?

To avoid tax audit, ensure legal and appropriate earning practices, proper bookkeeping, and compliance with tax laws. Maintain books under Chapter IV and report taxable income and allowable losses correctly in the return.

Entities Covered Under Tax Audit

Individual / Proprietorship

Hindu Undivided Family (HUF)

Company

Partnership Firm

Association of Persons (AOP)

Local Authority

Turnover – What’s Included?

Duty drawback on exports

Interest income from lending or forex fluctuations

Advance received and forfeited from customers

Excise duty included in turnover (to be debited in P&L)

Turnover – What’s Excluded?

Sale or purchase of fixed assets

Gains from investment asset sales

Rental income

Interest income and expense reimbursements

Objectives of Tax Audit

Ensure books are maintained correctly and verified by a CA.

Report discrepancies and observations accurately.

Provide a report in Form 3CA/3CB and 3CD.

Help in better compliance and transparency.

Build credibility with stakeholders and tax authorities.

Audit Report Forms

Form 3CA: When audit under any other law is also applicable.

Form 3CB: When no other audit requirement under law exists.

Submission of Tax Audit Report

The Chartered Accountant must submit the audit report online through their login. The taxpayer must accept or reject the uploaded report. If rejected, the process must be repeated until accepted.

Due Date for Audit Completion

All taxpayers required to undergo tax audit must complete and submit their audit report by the due date prescribed under the Income Tax Act.

GST Audit

Audit under GST is the process of examination of records, returns, and other documents maintained by a taxable person. The purpose is to verify the correctness of turnover declared, taxes paid, refund claimed, and input tax credit availed, and to assess the compliance with the provisions of GST.

Audit & Assurance
We offer audit and assurance services based on a comprehensive understanding of our client’s business, industry-specific practices, and applicable regulatory requirements. Our services go beyond compliance, providing value-added insights through a broad range of audits tailored to specific business needs.

Our Audit & Assurance Services Include:
Statutory Audit: Ensures compliance with corporate and financial laws, validating the accuracy of financial statements.
Tax Audit: Conducted under Section 44AB of the Income Tax Act, reviewing the books of accounts for accuracy and compliance.
GST Audit: Audits as mandated under the GST Act, ensuring proper tax reporting and compliance.
Internal Audit: Evaluates internal controls and risk management processes, offering recommendations for improvement and policy revisions.
Forensic Audit: Investigation and analysis of financial records to detect fraud or misconduct, supporting litigation with credible audit evidence.
Concurrent Audit: Real-time, continuous auditing of financial transactions, emphasizing detailed verification rather than random sampling.
Operational Audit: Reviews operational processes and internal structures to enhance efficiency and effectiveness, including detailed SOP assessments.

Overview of Secretarial Audit
The Secretarial Audit is a compliance audit where a qualified Secretarial Auditor examines and opines whether a company has adequate systems and processes to ensure compliance with applicable laws, rules, regulations, and guidelines. It promotes good corporate governance and highlights areas for improvement.

Key Features of Secretarial Audit
• Identifies instances of non-compliance and recommends corrective actions.
• Audits adherence to good corporate practices.
• Independent and value-adding process enhancing operations.
• Assesses risk management, control, and governance practices.
• Provides assurance to management and stakeholders on statutory compliance and governance.

Applicability of Secretarial Audit
Secretarial Audit is mandatory for the following companies:
• Every listed company
• Every public company with a paid-up share capital of ₹50 crore or more
• Every public company with a turnover of ₹250 crore or more
• Any company having borrowings of ₹100 crore or more
Note: Secretarial Audit is mandatory if any one of the above criteria is met.

Who Can Be Appointed as a Secretarial Auditor?
Only a member of the Institute of Company Secretaries of India (ICSI) holding a Certificate of Practice is eligible to conduct a Secretarial Audit and prepare the audit report.

Important Provisions of Secretarial Audit
• Specifying matters in the audit report
• Flexibility in compliance certification format
• Verification of records and statutory documents
• Coverage under Companies Act, SEBI laws, and other applicable regulations
• Defined audit period and auditor disqualification rules
• Company’s duty to provide necessary assistance

Benefits of Secretarial Audit
• Effective due diligence tool for investors and joint ventures
• Assures owners of lawful company operations and minimized risks
• Promotes professional discipline and self-regulation
• Reduces regulatory workload through timely compliance
• Improves investor confidence by displaying legal compliance

Laws Covered Under Secretarial Audit
• Companies Act, 2013
• Securities Contracts (Regulation) Act, 1956
• Depositories Act, 1996
• Foreign Exchange Management Act, 1999 (FDI, ODI, ECB)
• SEBI Regulations and Guidelines under the SEBI Act, 1992

Procedure of Secretarial Audit
1. Appointment of Secretarial Auditor
2. Communication to previous incumbent
3. Acceptance of appointment
4. Preliminary company discussions
5. Planning and initial meeting
6. Finalization of audit strategy
7. Testing, interviews, and analysis
8. Preparation of working papers
9. Discussion and audit summary
10. Submission of Secretarial Audit Report

Reporting of Qualifications in the Report
Any qualification, reservation, or adverse remark must be clearly stated in bold or italics. If the auditor cannot express an opinion, they must mention the reasons. If access to data is restricted, the report should highlight the limitations and their impact on the audit.
The company’s Board of Directors must provide a full explanation of any observation or remark made by the auditor in its Board Report.

Documents Required for Secretarial Audit
• Charter documents and statutory registers
• Board and general meeting minutes & notices
• Audited financials and previous Secretarial Audit report
• ROC, stock exchange filings (for listed companies)
• Annual performance reports, lease deeds, bonds, returns
• Filing documents with RBI (for foreign investments)

Due Diligence
Due diligence is an inspection and risk assessment of a potential business transaction. It acts as a background check to ensure all parties involved have accurate information to proceed confidently. It helps uncover misrepresentations or fraudulent dealings.

Overview of Due Diligence
Due diligence involves the exchange and review of confidential, legal, financial, and other material information by interested parties. It is typically carried out before entering into agreements, mergers, or other business transactions.

Objective of Due Diligence
The main goal is to identify potential problems, especially those that might lead to unexpected liabilities in the future.

When is Due Diligence Required?
Mergers and Acquisitions: Both buyer and seller perform due diligence to assess finances, litigation, patents, etc.
Partnerships: Ensures the credibility and capacity of the partnering business.
Joint Ventures & Collaborations: Evaluates reliability and operational capacity.
Other Situations: Includes strategic alliances, outsourcing agreements, product licensing, venture capital investment, and public issues.

Focused Areas of Due Diligence
• Business expectations in terms of revenue, profit, and future potential.
• Evaluation of resources and readiness to execute the business plan.
• Analysis of industry, competitors, management, and risk factors.

Benefits of Due Diligence
Administration & Ownership: Understand who controls the business.
Capitalization: Assess business scale and financial stability.
Competitors & Industry: Analyze market position.
Balance Sheet Review: Examine debt-to-equity ratios.
Revenue Trends: Evaluate profitability and growth.
Risk Analysis: Identify industry and company-specific risks.
Capital History: Assess stability and long-term prospects.

Documents Required for Due Diligence
• Company overview and basic details
• Financial statements and reports
• Business agreements and contracts
• Intellectual Property documents
• Litigation and compliance records
• Marketing and branding strategies
• Internal control and audit systems
• Taxation and insurance details
• Environmental and HR aspects

Procedure Involved
I. Pre-Diligence Process
• Sign Letter of Intent and NDA with the target company
• Review submitted documents using a checklist
• Identify and categorize issues
• Create and manage a secure Data Room

What is a Reliable Data Room?
A secure virtual space for accessing confidential business information such as trade secrets, financials, and legal data. Access is typically time-limited and controlled.

II. Diligence Process
Professionals review documents and submit a Due Diligence Report. The report may be:
• Summary Report
• Detailed Report

The outcome may include:
Deal Breakers: Major issues or non-compliances that halt the transaction.

Financial Reporting and Accounting Advisory Services
In the current global environment, companies face growing challenges from an accounting perspective as shareholders, regulators, and stakeholders demand greater transparency in financial reporting and disclosures.
With increased scrutiny on financial statements and ever-evolving disclosure requirements from standard setters and regulators, businesses often struggle to meet these demands efficiently.
Our experienced partners and professionals help clients comply with these requirements through tailored advisory services focused on clarity, accuracy, and business alignment.

How Can We Help?
Our team combines in-depth technical accounting knowledge with industry insights and hands-on experience to support clients in resolving complex financial reporting challenges arising from business decisions, transactions, and regulatory updates.
We aim to deliver accurate and actionable accounting advice that balances commercial objectives with reporting standards and legal requirements, enabling organizations to adapt and thrive.

Our Services Include:
GAAP Conversions: Transitioning from local GAAP to IFRS with attention to tax, system changes, disclosures, and staff training.
Transactions & Financial Reporting Advice: Optimizing outcomes for IPOs, mergers, acquisitions, and divestitures with accurate financial modeling and compliance.
Accounting Advice for Restructures: Supporting clients during restructures by analyzing entity transfers, legal provisions, and dividend distribution implications.

Details of Key Services
GAAP Conversions: Local GAAP to IFRS conversion requires not only understanding the accounting standards but also business impacts like tax alignment, disclosure changes, and internal training needs.

Transaction and Financial Reporting Advisory: We assist with accounting and regulatory complexities in transactions such as mergers, IPOs, acquisitions, and divestments by:
• Identifying and analyzing accounting issues
• Assessing financial and regulatory impacts
• Preparing opening balance sheets and combined financials
• Modeling future financial impacts
• Collaborating on valuation and acquisition adjustments
• Offering IPO readiness and post-IPO support

Accounting Advice for Restructures: We help determine appropriate valuation and recording of assets, navigate legal provisions such as merger/group relief, address distributable reserve limitations, and manage accounting for goodwill, employee benefits, and share awards.

Why Choose Us?
We provide cost-effective, technically sound advice with global reach through our trusted accounting advisory network. Our teams are dedicated to helping clients navigate reporting complexities with confidence.

Auditing & Assurance Services

Management Audits
Management Audit is a systematic assessment of managerial practices to evaluate efficiency, effectiveness, and adequacy of management in an organization. It supports improvement in planning, structuring, and execution of business operations. This audit is often preferred by investor groups and shareholders to evaluate the quality of leadership.

Internal Audits
Internal Audits help assess the corporate governance structure, risk exposure, operational efficiency, and policy adherence. Our risk-based audit methodology is designed to align with organizational objectives and identify impediments while recommending areas for improvement and value addition.
• Evaluation of internal controls and processes
• Identification of revenue leakages and cost-saving opportunities
• Compliance reviews and business process improvements

Project Audits
Project Audits are conducted across project phases—from planning to execution. Each milestone is reviewed for inputs such as cost, materials, and outcomes, ensuring that the project is aligned with the budget and performance expectations.

Risk Assessment / Reviews
Risk assessments are performed at every phase of a business process to identify, analyze, and mitigate potential risks. A detailed Risk Mitigation Report helps minimize unavoidable risks and provides alternative courses of action to eliminate controllable risks.

Fund Utilization Assessment / Review
These reviews are specifically tailored for trusts and non-profits to provide contributors assurance that funds are utilized for the intended purpose, along with monitoring compliance with other terms and conditions.

Benefits of Auditing Services
• Improves management efficiency and decision-making
• Ensures optimum utilization of organizational resources
• Identifies gaps and deficiencies within the system
• Suggests improved methods for better operational control
• Highlights internal control weaknesses with corrective actions
• Detects early warning signs of organizational stress
• Assists in strategic planning and future-proofing
• Evaluates management and human resource performance
• Assesses effectiveness of current policies and processes