Overview
A statutory audit is an independent examination of your financial statements by a practising Chartered Accountant appointed as auditor. Financial due diligence is a review done for an investor or buyer to check the quality of the numbers and the compliance position of the business. Both go faster and cost less when the company is ready.
We carry out a readiness review: do the books agree with bank and tax records, are GST, TDS and income tax returns filed and reconciled, are ROC filings up to date, does the cap table match the records of the registrar, and are contracts, related-party dealings and employee matters properly documented.
The result is a report that lists issues by priority, a clean-up plan, and a data room organised for the investor or auditor. We do not sign an audit report. Where a statutory audit is needed, an independent practising Chartered Accountant is appointed by the company.
When do you need this?
Most often just before a funding round, an acquisition or the first statutory audit.
Usually a good fit if
- You are about to raise a seed or later round and want to avoid surprises in diligence.
- Your first statutory audit is coming and the books have not been closely reviewed.
- You are preparing for an acquisition, a loan or a government grant.
- You have taken over a company and want to know its true position.
Think twice if
- Your books have not been written up at all; bookkeeping must come first, and we can do that.
- You need a formal audit opinion; that has to come from an appointed statutory auditor.
Key benefits
Fewer surprises
Issues are found and fixed before an investor sees them.
Faster diligence
An organised data room shortens the process.
Stronger negotiating position
Clean numbers support your valuation.
Audit readiness
The auditor receives complete, reconciled records.
Compliance clean-up
Missed filings and mismatches are addressed.
Clear roadmap
A prioritised list tells your team what to fix first.
What we need from you
This is the document-heavy service, since the review rests on what you can show.
Financial
- Financial statements and trial balances for the periods under review
- Bank statements and loan or investor funding records
- Sales and purchase ledgers, with samples of invoices and contracts
- Payroll records and statutory challans
Tax
- Income tax, GST and TDS returns and challans
- Notices, assessments and replies
- Reconciliations with the GST portal and tax department statements
Corporate
- Memorandum and articles, shareholder and investor agreements
- Cap table and share allotment records
- ROC filings, board and shareholder minutes, statutory registers
- ESOP plan and grants, if any
Commercial
- Key customer and vendor contracts
- Related-party transactions and agreements
- Intellectual property documents and licences
How the process works
Agree scope and period 1 to 2 days
We confirm what is being reviewed, for which periods and for whom.
Collect documents 3 to 7 days
We build a checklist and collect the records from your team.
Review books and tax 1 to 2 weeks
We test the books against the bank, GST and TDS records, and check for unrecorded items.
Review corporate and contracts 3 to 5 days
We check cap table, registers, ROC filings and key contracts.
Issue the report 2 to 3 days
A report lists findings, severity and the recommended action for each.
Clean up and organise the data room 1 to 2 weeks
We help you correct what can be corrected and prepare an organised folder for the investor or auditor.
How long it takes
| Review | 2 to 3 weeks |
| Report | Within a few days of the review |
| Clean-up | 1 to 2 weeks, depending on findings |
Timing depends on how quickly documents are shared and how many issues are found.
What you receive
The deliverables are meant to be used immediately.
- Findings reportIssues by priority with the recommended action.
- ReconciliationsBank, GST and TDS reconciliations with open items.
- Compliance trackerFilings done, pending and overdue.
- Cap table checkA reconciled cap table with the registrar's records.
- Data room indexAn organised folder structure ready to share.
Statutory audit and due diligence
| Statutory audit | Financial due diligence | |
|---|---|---|
| Required by | Companies Act | Investor, buyer or lender |
| Done by | Independent practising Chartered Accountant | Adviser appointed by the party asking |
| Output | Audit report on financial statements | Findings on quality of numbers and compliance |
| Purpose | Assurance to shareholders and regulators | Decision on the deal |
Frequently asked questions
Is this an audit?
No. It is a readiness and advisory review. A statutory audit is performed by an independent practising Chartered Accountant appointed by the company.
Will it guarantee that diligence passes?
No. It lets you find and fix issues beforehand, but investors form their own views.
How far back do you review?
It depends on the purpose, commonly the last two to three years, or since incorporation for a young company.
Can you represent us to the investor?
We can support you with explanations and documents. Negotiation and legal advice on the deal itself would normally involve your lawyers.
What are the most common findings?
Unreconciled GST credit, missed TDS filings, pending ROC forms, a cap table that differs from the records, and contracts that are unsigned or not stamped.
Do we need clean books first?
It helps. If the books are behind, we first catch up or work with your accountant to bring them up to date.
This page is general information to help you prepare, not legal, tax or professional advice for your situation. Rules, forms, thresholds and due dates change, so we confirm the current position before we file anything for you. Taxswami Consultants is an independent professional services firm and is not a government body.