TO WHICH COMPANIES SECRETARIAL AUDIT IS MANDATORY?
Following companies are required to obtain ‘Secretarial Audit Report’ form independent practicing company secretary :
(1) Every listed company
(2) Every public company having a paid-up share capital of Fifty Crore rupees or more; or
(3) Every public company having a turnover of Two Hundred Fifty Crore rupees or more
The companies which are not covered under section mandatory list may obtain Secretarial Audit Report voluntarily as it provides an independent assurance of the compliances of applicable laws of the company.
THE OBJECTIVES OF SECRETARIAL AUDIT IS SUMMARIZED AS UNDER :
• To check & report on compliances of applicable laws and Secretarial Standards
• To point out non-compliances and inadequate compliances
• To protect the interest of various stakeholders i.e. the customers, employees, society etc.
• To avoid any unwarranted legal actions/penalties by law enforcing agencies and other persons as well.
Ongoing Compliance
