Advisory Services
Audit
Consulting
ESG Advisory
RBI Registration
SEBI Registration
IRDA Registration
FEMA Advisory
Compliances
IBC Services
VCFO Services
Growing
Developing
ME-1
ME-2
EU-1
EU-2
SE
Others
Select Your Location
Secretarial Audit is a compliance audit. It is a part of total compliance management in an organization. It is an effective tool when it comes to corporate compliance management. In this article we shall know more about Secretarial audit in India, including its process and benefits.
Table of Contents
It is a process to check compliance to the provisions of the law, rules, and regulations, maintenance of books, etc. by an independent professional to make sure that the company complies with the legal requirements and procedural needs and also follows the due process. It’s a mechanism to monitor compliance with the requirements of the stated law.
The objective of Secretarial Audit can be summarized as:
The mandatory provisions regarding applicability of secretarial audit are:
The scope comprises verification of the compliances under the following:
The appointment of the secretarial auditor is made by following the below mentioned steps:
The process of such audit is as given below:
It may be noted that while preparing the audit report, the secretarial auditor shall consider:
The following documents are required:
In case where a company or an officer of such company or the company secretary in practice, breaches the provisions then the company or every officer of the company or the company secretary in practice who makes such breach, shall be punished with fine of minimum 1 lakh rupees and maximum of 5 lakh rupees.
The benefits of secretarial audit in India can be summed as under:
At present, secretarial audit in India is mandatory for listed companies and large public companies in terms of their paid up capital and turnover. The move is to take it to private companies also. Private limited companies have less disclosure requirements as compared to a public limited companies. This audit is applicable on private companies that’s subsidiary of listed entities.
Experts have welcomed this move as they expect it will improve compliance. The spate of failures of corporate governance in important entities in the past has necessitated the need to tighten the rules and beef up the oversight of the auditing and rating agencies while addressing the liquidity issues of the business.
Read our article:Why Secretarial Audit is Mandatory for Companies?
Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on corporate law. He is a creative thinker and has a great interest in exploring legal subjects.
On 11.12.15, the Hon’ble Delhi High Court (HC) pronounced a landmark judgement in the case ti...
Money laundering can be defined as the process of illegal concealment of the origin of money ob...
Every assessee in India is obligated to file an income tax return and make the timely payment o...
In the recent past, India has seen burgeoning demand for internet and smartphones. The rapid ri...
The Securities and Exchange Board of India (SEBI), the capital markets regulator, has recommend...
The objective of the enactment of the Prevention of Money-laundering Act, 2002, i.e. PMLA (the...
Tax planning is a continuing effort and a management strategy for ensuring the minimization of...
On 18th May 2023, the Securities Exchange Board of India (SEBI) released a Consultation Paper o...
Infrastructure and real estate have been regarded as India's "sunshine sector" since the turn o...
On 22nd May 2023, the Central Board of Direct Taxes (CBDT)[1] issued a new circular under secti...
Are you human?: 4 + 5 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
A Secretarial Audit secures non-financial aspects of the business impact on the Company's performance and verifies...
15 Feb, 2023
The Institute of Company Secretaries of India or commonly referred to as ICSI provides guidelines on auditing stand...
29 Mar, 2020
Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.
Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.
Stay updated with all the latest legal updates. Just enter your email address and subscribe for free!
Chat on Whatsapp
Hey I'm Suman. Let's Talk!