Statutory Audit for Telangana Companies: Timelines, State Dues and ROC Hyderabad

A statutory audit follows the same standards everywhere in India. But for a company registered in Telangana, a few local points affect how the audit runs: state-level dues the auditor reports on, the ROC that the audited accounts go to, and how to get more time if the audit runs late. This guide covers them.

Timing the Audit Around the AGM

A Telangana company must hold its AGM by 30 September and file its audited accounts with ROC Hyderabad in AOC-4 within 30 days of it. The audit has to finish, and the board approve the accounts, in time for 21 clear days' notice of the AGM. In practice, that means the audit fieldwork should finish by mid-August.

If the Audit Runs Late

If the audit can't be completed in time, the company can apply to ROC Hyderabad in Form GNL-1 for an extension of up to three months for the AGM — before the 30 September deadline, with reasons. The extension isn't available for the first AGM, and isn't automatic, so it shouldn't be relied on.

State Dues in the Audit

Under CARO 2020, where it applies, the auditor reports on whether undisputed statutory dues were deposited regularly, and lists disputed dues. For a Telangana company, that includes:

• Telangana State GST, alongside Central and Integrated GST.
• Professional Tax deducted from employees and the company's own enrolment tax.
• Property tax and other local levies, where applicable.
• Legacy VAT or other state tax demands still under dispute.

Arrears in Professional Tax are a common CARO observation for smaller companies, because PT is often overlooked.

Title Deeds and Land

CARO also asks whether title deeds of immovable property are held in the company's name. For companies on industrial land allotted by TGIIC (formerly TSIIC) or another state agency, or where property is still registered in a founder's name, this often needs explanation. Having allotment letters, lease deeds and registration documents organised helps.

Choosing an Auditor in Hyderabad

Hyderabad has a large base of practising Chartered Accountants, and the ICAI has a branch in the city. When appointing an auditor, confirm they hold a certificate of practice, are independent of the company, and don't keep its books.

A Checklist for Telangana Companies

1. Plan the audit to finish by mid-August.
2. Reconcile and clear state dues, including Professional Tax.
3. Organise title documents for property and allotted land.
4. If you'll miss the deadline, apply to ROC Hyderabad in GNL-1 before 30 September.
5. File AOC-4 within 30 days of the AGM.

Getting Help

Think Filing carries out statutory audits for Telangana companies, planned around the AGM and ROC Hyderabad filing deadlines.