# Financial Disclosures: Books, Solvency, Audit & Annual Return

## Section 34 — Maintenance of Books, Statement of Accounts & Solvency, Audit

### (1) Books of Account (BOA)

Maintained at the Registered Office
On cash or accrual basis
Using the double-entry system
For the prescribed period

### (2) Statement of Account and Solvency (SAS)

Prepared within 6 months from end of FY
Signed by all DPs
Filed with the RoC in the prescribed manner

### (3) Audit

LLP accounts are to be audited as prescribed.
The CG may exempt certain classes of LLPs from audit.

### (4) Penalties

Nature of contravention	Penalty
Non-compliance of filing with RoC	LLP: ₹100/day (max ₹1 lakh); Every DP: ₹100/day (max ₹50,000)
Non-compliance of maintaining BOA	LLP: ₹25,000 to ₹5 lakhs
Non-compliance of maintaining SAS / Audit of BOA	Every DP: ₹10,000 to ₹1 lakh

## Section 34A — Accounting and Auditing Standards

The CG, in consultation with NFRA, prescribes accounting and auditing standards (as recommended by ICAI) for LLPs.

## Section 35 — Annual Return

### (1) Filing requirement

Every LLP must file an annual return, duly authenticated, with the RoC within 60 days of closure of the FY.

> Example: FY closes 31st March → annual return is due by 30th May.

### (2) Penalty

LLP: ₹100/day (max ₹1 lakh)
Every DP: ₹50,000

Worked example

### Example 1

Example — Due date of SAS: ABC LLP has its FY ending 31st March 2025. Under Sec 34(2), it must prepare and file the SAS, signed by all DPs, by 30th September 2025 (6 months from year-end).

### Example 2

Example — Due date of Annual Return: XYZ LLP's FY ends on 31st March 2025. The annual return under Sec 35 must be filed by 30th May 2025 (60 days from close of FY).

### Example 3

Example — Cumulative penalty for late filing: PQR LLP files its annual return 200 days late. Result: LLP penalty = 200 × ₹100 = ₹20,000 (capped at ₹1 lakh anyway), and each DP is liable to ₹50,000.

⚠️ Common exam mistakes

Confusing the SAS filing window (6 months) with the annual return window (60 days) — they are separate compliances.
Forgetting that the SAS must be signed by ALL Designated Partners, not just one.
Citing accrual-only basis — the Act permits books on cash OR accrual, but always under the double-entry system.
Treating the LLP audit as automatic — it is as prescribed, and the CG may exempt certain LLPs.

Bare-Act text Sections 34, 34A, 35 · Limited Liability Partnership Act, 2008 · click to expand

Section 34(2) Every limited liability partnership shall, within a period of six months from the end of each financial year, prepare a Statement of Account and Solvency for 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 limited liability partnership. Section 35(1) Every limited liability partnership shall file an annual return duly authenticated with the Registrar within sixty days of closure of its financial year in such form and manner and accompanied by such fee as may be prescribed.

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Financial Disclosures (Sections 34, 34A, 35)

Worked example

⚠️ Common exam mistakes