Section 25 Companies

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Ashish Joshi (Querist)
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02 February 2010 Dear Sir,
Can anybody provide me section 25 companies auditors report format

Best Regards
Ashish Joshi
9833718414

Ashish Joshi

Ashish Joshi (Querist)
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09 June 2010 I am not getting any resuly

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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23 July 2025 Certainly! Section 25 companies under the Companies Act, 1956 (now **Section 8 companies** under the Companies Act, 2013) are **non-profit companies**, and their audit report generally follows the same format as for other companies, with **specific emphasis on compliance with Section 25 conditions**.

Here’s a **sample format** of the **Auditor’s Report** for a **Section 25 (now Section 8) Company**, tailored to reflect the special provisions applicable:

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## 🧾 **Sample Auditor’s Report for a Section 25 Company**

### Independent Auditor’s Report

To the Members of **\[Company Name]**
(Company registered under Section 25 of the Companies Act, 1956)

#### Report on the Financial Statements

We have audited the accompanying financial statements of **\[Company Name]**, which comprise the **Balance Sheet as at \[date]**, the **Statement of Income and Expenditure**, the **Cash Flow Statement** for the year then ended, and a summary of significant accounting policies and other explanatory information.

#### Management’s Responsibility for the Financial Statements

The Company’s management is responsible for the preparation of these financial statements in accordance with the accounting principles generally accepted in India, including the **Accounting Standards** notified under the Companies Act. This responsibility includes the design, implementation, and maintenance of internal control relevant to the preparation and presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

#### Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

#### Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give a **true and fair view** in conformity with the accounting principles generally accepted in India:

* in the case of the **Balance Sheet**, of the state of affairs of the Company as at \[date];
* in the case of the **Income and Expenditure Account**, of the **excess of income over expenditure** (or vice versa) for the year ended on that date; and
* in the case of the **Cash Flow Statement**, of the cash flows for the year ended on that date.

#### Emphasis of Matter (if required)

Without qualifying our opinion, we draw attention to the fact that the Company is licensed to operate under Section 25 of the Companies Act, 1956 and **is prohibited from paying any dividend to its members**. The financial statements have been prepared on the basis that the Company is a going concern and will continue its not-for-profit objectives.

#### Report on Other Legal and Regulatory Requirements

1. As required by the **Companies (Auditor’s Report) Order (CARO)**, \[year], issued by the Central Government in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order to the extent applicable.

2. As required by Section 227(3) of the Companies Act, 1956, we report that:

* We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
* In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
* The Balance Sheet and the Income and Expenditure Account dealt with by this Report are in agreement with the books of account;
* In our opinion, the Balance Sheet, the Income and Expenditure Account and the Cash Flow Statement comply with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956;
* On the basis of written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on \[date] from being appointed as a director under Section 274(1)(g) of the Companies Act, 1956.

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**For \[Name of Firm]**
Chartered Accountants
(Firm Reg. No. XXXXX)

**\[Name of Partner]**
Partner
M. No. XXXXX
Place:
Date:

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### 📝 Notes:

* Update references to Companies Act, 2013 if audit is for FYs after 2013.
* Replace the Income & Expenditure Account with “Statement of Profit & Loss” if the company follows commercial accounting model.
* Adjust for CARO 2020 or 2023 as applicable.

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