Secretarial Audit
- Secretarial Audit is an independent process assuring to add value and improve an organization’s operations. It helps to bring a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
- An audit is to be on the principle of “Prevention is better than cure”. It strengthens the image and goodwill of a company in the minds of regulators and stakeholders. It acts as an effective compliance risk management tool or a governance tool.
SECRETARIAL AUDIT REPORT
- It shall be prepared by a Company Secretary in Practice
- It shall be prepared in Form MR 3
- Annexed with Board’s Report, considering the increasing importance of Corporate Governance
OBJECTIVES OF SECRETARIAL AUDIT
- To avoid any unwarranted legal actions/penalties by law enforcing agencies and other persons as well
- To protect the interest of various stakeholders i.e. the customers, employees, society etc
- To protect the interest of various stakeholders i.e. the customers, employees, society etc
- To point out non-compliances and inadequate compliances
APPLICABILITY OF SECRETARIAL AUDIT :-
As per section 204 of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, following companies are required to obtain ‘Secretarial Audit Report’ form independent practicing company secretary. We are registered with the Institute of Company Secretaries of India as a Practicing Company Secretary who are peer reviewed and are eligible to conduct secretarial audit and issue secretarial audit report.
- Every listed company
- Every public company having a paid-up share capital of Fifty crore rupees or more
- Every public company having a turnover of Two Hundred Fifty crore rupees or more
- Every company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more.