Secretarial Audit is a process to check compliance with the provisions of various laws and rules/regulations/procedures, maintenance of books, records etc., by an independent professional to ensure that the company has complied with the legal and procedural requirements and also followed due processes. It is essentially a mechanism to monitor compliance with the requirements of stated laws and processes
Applicability
Section 204 of the Companies Act, 2013 deals with the Secretarial Audit of Bigger Companies. As per the provisions every Listed Company or every public company having a paid-up share capital of Fifty Crore Rupees or more; or every public company having a turnover of Two Hundred Fifty Crore Rupees or more. or Every Private Company which is subsidiary of Public Company with above criteria. The Secretarial Report shall be in Form MR-3 annexed with the Board Report.
Initial Requirements
- Representation Letter from the Company
- List of other Acts applicable on the Company
- MOA & AOA of the Company
- Copy of Joint Venture Agreement, Technical Collaboration Agreement if any.
- Financial Statements of last year.
- List of events occurred in the Company
- Statutory Registers, Minutes Book and other necessary papers or documents as may be required.
The Secretarial Auditor should verify the Compliances relating to following:
- Memorandum and/or Articles of Association.
- Disclosures under Various Statues/Acts applicable
- Issue of shares and other securities
- Transfer and transmission of shares and other securities and related matters
- Deposits
- Charges
- Auditors
- Meetings of directors/committees thereof, security holders and other stakeholders.
- Secretarial Standards
- Dividend
- Corporate Social Responsibility (CSR)
- Directors and Key Managerial Personnel (KMP)
- Loans to Directors, etc, and related party transactions
- Loans, Investments, Guarantees and Securities
- Registers, filing of forms, returns and documents
Our Partner Mr. Jitesh Gupta is Eligible to be appointed as Secretarial Auditor of the Company. Mr. Jitesh Gupta is also on the Panel of Experts as Mediators & Conciliators established by Ministry of Corporate Affairs. He is the member of various core committees of ICSI and NIRC of ICSI and is on the panel of Peer Reviewers of ICSI. He was formerly the Board member of Auditing Standards of ICSI and was also a former member of Expert Advisory Board of ICSI.
He is also Member of Corporate Governance Committee of PHD Chamber of Commerce. He has been working under Insolvency laws from the Enactment of this Act. Our Firm has vast Experience in Corporate laws and team of Professional always helps the Corporate in effective compliance of corporate laws in the Companies.
Disclaimer: [The views, information or opinions expressed herein are compiled solely for disseminating knowledge. Professionals are advised to study the laws and compliance thoroughly before carrying out the Secretarial Audit Process].
