Secretarial Audit
Unlock the Benefits of Secretarial Audit for Your Business
Discover the world of secretarial audit and its significance under the Companies Act 2013 of India.
This essential process involves the meticulous verification of records and documents to ensure your business complies with legal and procedural requirements while following due processes. At its core, a secretarial audit safeguards your interests by guaranteeing compliance with various laws and standards.
Applicability of Secretarial Audit:
The Companies Act, of 2013, mandates secretarial audits for specific categories. These categories include:
- All Listed Companies
- Every public company with a paid-up share capital of fifty crore rupees or more
- Every public company with a turnover of two hundred fifty crore rupees or more
- Every company with outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more
Objectives of Secretarial Audit:
The primary objectives of the secretarial audit include:
- Ensuring compliance with applicable laws and Secretarial Standards
- Identifying non-compliance and inadequate adherence
- Protecting the interests of various stakeholders
- Preventing legal actions, penalties, and other liabilities
Benefits and Beneficiaries:
Secretarial audit offers several benefits:
- Effective due diligence for prospective acquirers, controlling interests, or joint venture partners
- Assurance to owners that the company adheres to legal requirements, reducing risks
- Legal compliance to safeguard management from penalties and legal actions
- Improved regulatory compliance and professional discipline
Beneficiaries include promoters, management, government authorities, investors, and other stakeholders.
Scope of Secretarial Audit:
The scope of secretarial audits extends to various laws. These include:
- Companies Act, 2013
- Securities and Exchange Board of India Act, 1992
- Reserve Bank of India Act, 1934
- Securities Contracts (Regulation) Act, 1956
- Depositories Act, 1996
- Foreign Exchange Management Act, 1999
- Competition Act, 2002
- SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015
- Any other law specifically applicable to the company and all related rules and regulations to the mentioned acts.
Elevate your business practices with a comprehensive understanding of secretarial audits. Ensure compliance, reduce risks, and protect your company’s reputation and interests.
