Maintenance of books of account, other records, and audit
Proper Books of account:
The LLP shall maintain such proper books of account as may be prescribedrelating to its affairs for each year of its existenceon cash basis or accrual basis andaccording to double entry system of accounting andshall maintain the same at its registered officefor such period as may be prescribed.
Statement of Account and Solvency:
Every LLP shall, within a period of 6 months from the end of each financial year, prepare a Statement of Account and Solvencyfor the said financial year as at the last day of the said financial year in such form as may be prescribed, and such statement shall be signed by the designated partners of the LLP.
Every LLP shall file within the prescribed time, the Statement of Account, and Solvencywith the Registrar every year in such form and manner and accompanied by such fees as may be prescribed.
The accounts of LLP shall be audited in accordance with such rules as may be prescribed. However, the Central Government may, by notification in the Official Gazette, exempt any class or classes of LLP.
Any LLP which fails to comply with the provisions of this section shall be punishable
- with fine which shall not be less than Rs. 25,000
- but which may extend to Rs. 5 Lakhs
Every designated partner of such LLP shall be punishable
- with fine which shall not be less than Rs. 10,000
- but which may extend to Rs. 1 Lakh.
Annual return
Every LLP shall file an annual return duly authenticated with the Registrar within 60 days of closure of its financial year in such form and manner and accompanied by such fee as may be prescribed.
Any LLP which fails to comply with the provisions of this section shall be punishable with fine which shall not be less than Rs. 25,000 but which may extend to Rs. 5 Lakhs.
If the LLP contravenes the provisions of this section, the designated partner of such LLP shall be punishable with fine which shall not be less than Rs. 10,000 but which may extend to Rs. 1 Lakh.
