1. Statutory Audit under the Companies Act, 2013

• Every Nidhi Company is required to conduct a statutory audit annually.
  
• The audit must be carried out by a qualified Chartered Accountant appointed by the members.
  
• The auditor examines the financial statements, books of accounts, and compliance records.
  
• The audit ensures that the financial reporting is accurate and legally compliant.
  
• The audited financials must be filed with the Registrar of Companies (ROC) in Form AOC-4.
  

2. Audit of Deposits and Loans

• The auditor must verify that all deposits have been accepted only from members.
  
• The terms of loans issued must comply with the Nidhi Rules and be fully secured.
  
• The loan-to-deposit ratio, rate of interest, and collateral documents must be reviewed.
  
• Any violation, such as unsecured lending or excess borrowing, must be reported.
  
• The audit checks whether unencumbered term deposits of 10% have been maintained.
  

3. Compliance Audit with Nidhi Rules, 2014

• The auditor must ensure that the company complies with the provisions of the Nidhi Rules.
  
• Compliance includes member limits, Net Owned Fund requirements, and permissible activities.
  
• The rules related to advertisement, branch operations, and fund utilization must be examined.
  
• Any deviation from these rules is flagged as a non-compliance issue in the audit report.
  
• The audit supports adherence to the mutual benefit structure of the company.
  

4. Filing and Documentation Requirements

• The audited financial statements must include the Balance Sheet, Profit & Loss Account, and Cash Flow Statement.
  
• The auditor’s report is attached with Form AOC-4 for submission to the ROC.
  
• The company must also file Form MGT-7, which includes member and shareholding details.
  
• Statutory registers and records must be maintained and presented during the audit.
  
• The audit report must be presented at the Annual General Meeting for member approval.
  

5. Role of the Auditor and Reporting Duties

• The auditor is responsible for expressing an opinion on the company’s financial health.
  
• They must ensure the company follows accounting standards and statutory guidelines.
  
• Any fraud, misstatement, or irregularity must be reported to the Board and regulatory authorities.
  
• The auditor may provide recommendations for internal control improvements.
  

• Accurate and timely audits build transparency and strengthen member confidence.