CFO & Operations Services

A virtual CFO is not a statutory officer under the Companies Act 2013. However, if the company is required to have a whole-time CFO — mandatory for listed companies and certain classes of companies under Section 203 read with Rule 8A of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 — that role must be filled by an employee. Our virtual CFO engagement covers the analytical and advisory layer without substituting for the Section 203 statutory appointment.

Payments to a CA firm or LLP for professional services attract TDS at 10% under Section 194J of the Income-tax Act 1961 for FY 2025-26 (AY 2026-27), with a threshold of Rs 30,000 per annum. For TY 2026-27 onwards under ITA 2025, the corresponding provision is Section 393. The deductor must deposit TDS by the 7th of the following month and file Form 26Q quarterly; non-deduction triggers disallowance under Section 40(a)(ia) of ITA 1961.

Monthly MIS feeds directly into books of account maintained under Section 128 of the Companies Act 2013 and Rule 6F of the Income-tax Rules 1962. If turnover exceeds Rs 1 crore (business) or Rs 50 lakh (profession), a tax audit under Section 44AB of ITA 1961 (Section 63 under ITA 2025 for TY 2026-27) is mandatory. Clean, reconciled MIS reduces Form 3CD clause-by-clause rectification work and supports the statutory auditor's report under Section 143(3) of the Companies Act 2013.

Section 138 of the Companies Act 2013 read with Rule 13 of the Companies (Accounts) Rules 2014 mandates internal audit for unlisted public companies with paid-up capital above Rs 50 crore or turnover above Rs 200 crore, and private companies with turnover above Rs 200 crore or outstanding loans above Rs 100 crore. The statutory auditor must additionally report on adequacy of internal financial controls under Section 143(3)(i). Our CFO engagement designs and documents the control framework so the Section 143(3)(i) opinion is supportable from day one.

Section 188 of the Companies Act 2013 requires board approval — and shareholder approval beyond specified thresholds — for related party transactions (RPTs). For listed entities, SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, Regulation 23, imposes additional audit committee and shareholder approval requirements. We maintain the RPT register required under Rule 15 of the Companies (Meetings of Board and its Powers) Rules 2014, prepare arm-length documentation, and draft board notes to ensure each RPT is properly approved and disclosed in the directors report under Section 134(3)(h).