Public Ltd Company Audit and Compliances

A Public Limited Company (PLC) is required to adhere to strict audit and compliance regulations to ensure transparency, accountability, and compliance with legal provisions. Proper auditing and timely compliances ensure the company's credibility and smooth functioning.MSME Registration is highly advantageous for Micro, Small, and Medium-sized enterprises, providing various benefits like tax exemptions and capital investment opportunities.

What is Public Ltd Company Audit and Compliances?

Audit and compliance for a Public Ltd Company involve periodic evaluations of its financial and operational activities as per statutory requirements. These include:

• Statutory Audit: Mandatory annual audits conducted by certified Chartered Accountants to verify financial accuracy.
• Internal Audit: Assessing operational efficiency, risk management, and internal controls.
• Secretarial Compliance: Ensuring adherence to corporate governance standards under the Companies Act, 2013.
• Tax Filings and Compliance: Filing income tax, GST, and other mandatory returns.
• Annual Compliances: Filing of forms like AOC-4 (financial statements) and MGT-7 (annual return) with the Registrar of Companies (RoC).

Benefits of Public Ltd Company Audit and Compliances

• Improved Credibility: Regular audits build trust with stakeholders, investors, and regulators.
• Legal Compliance: Ensures the company avoids penalties and legal issues.
• Financial Accuracy: Provides a true and fair view of the company’s financial status.
• Operational Efficiency: Highlights inefficiencies and potential risks in business operations.
• Attracts Investment: Compliance enhances investor confidence, aiding fundraising efforts.
• Sustainability: Encourages long-term growth by maintaining good governance.

What is the Process of Public Ltd Company Audit and Compliances?

ETaxwala simplifies registration procedures for businesses in India:

• Appointment of Auditor: Appoint a statutory auditor within 30 days of company registration.
• Conducting Statutory Audit: Auditor verifies financial statements and compliance with legal standards.
• Preparation of Financial Reports: Drafting balance sheets, profit & loss statements, and cash flow reports.
• Filing Annual Returns: Filing AOC-4 and MGT-7 with RoC after the annual general meeting (AGM).
• Tax Filing: Filing income tax returns, TDS returns, and GST returns.
• Secretarial Compliance: Ensuring all board meetings, AGMs, and corporate actions comply with the Companies Act.
• Resolution of Non-Compliance: Rectify discrepancies identified during audits.

Documents Required for Public Ltd Company Audit and Compliance

ETaxwala simplifies registration procedures for businesses in India:

• Invoices of Purchases and Sales during the year.
• Invoices of expenses incurred during the year.
• Credit Card Statements if Expenses are incurred by Proprietor on behalf on Company.
• Bank Statements from 1 April to 31 March for all bank accounts in the name of firm.

FAQs:

Q. Is a statutory audit mandatory for all Public Ltd Companies?


Ans: Yes, as per the Companies Act, 2013, statutory audits are compulsory for all Public Ltd Companies.

Q. What is the penalty for non-compliance?


Ans: Non-compliance can attract penalties, fines, or even prosecution under various laws, including the Companies Act.

Q. How often does a Public Ltd Company need to file returns?


Ans: Annual returns (MGT-7 and AOC-4) must be filed once a year. Other filings, such as GST and TDS, depend on the applicable tax deadlines.

Q. What happens if the audit reveals discrepancies?


Ans: If discrepancies are found, the company must rectify them immediately to avoid penalties. In severe cases, it might lead to legal actions.

Q. Why is secretarial audit necessary?


Ans: Secretarial audits ensure that the company complies with all applicable corporate laws and guidelines, enhancing governance.