Statutory Audit Applicability

• Audit for LLPs is not mandatory by default
  
• It becomes mandatory only if the LLP crosses specific financial thresholds
  
• The audit requirement is governed by the Limited Liability Partnership Act, 2008
  
• LLPs falling below the thresholds are exempt from statutory audit
  
• Voluntary audit can still be conducted if partners choose to do so
  

Turnover-Based Threshold

• LLPs must get their accounts audited if their annual turnover exceeds ₹40 lakhs
  
• Turnover includes gross revenue from all business activities during the financial year
  
• This limit applies to each financial year independently
  
• Even a single year of excess turnover triggers audit compliance for that year
  
• Proper records and documents must be maintained in anticipation of crossing the limit
  

Contribution-Based Threshold

• The audit is also required if the capital contribution exceeds ₹25 lakhs
  
• This refers to the total contribution made by all partners, whether in cash or kind
  
• The valuation of non-cash contributions must be certified appropriately
  
• Contribution is assessed as per the figures disclosed in the LLP Agreement and filings
  
• Exceeding this limit requires the appointment of a qualified Chartered Accountant
  

Audit Process and Filing

• The audit must be conducted by a practicing Chartered Accountant
  
• The auditor reviews the books of account, vouchers, and financial statements
  
• Audit findings are included in the Statement of Accounts and Solvency (Form 8)
  
• LLPs must file Form 8 and Form 11 (Annual Return) with the Registrar
  
• Failure to comply attracts penalties and late filing fees
  

Documentation and Timelines

• Books of account must be maintained on a cash or accrual basis
  
• The financial year ends on 31st March, and Form 8 must be filed by 30th October
  
• Form 11 (Annual Return) must be filed by 30th May every year
  
• Audit must be completed before the due date for filing Form 8
  
• Compliance ensures the legal validity and financial transparency of the LLP