What Is A Secretarial Audit?
A Secretarial Audit is an independent examination done by a professional to review whether the company is in compliance with the provisions and rules of various laws and standards applicable to the company. The auditor examines whether the governance, internal control and risk management are working efficiently in the organization or not. Every company is subject to various rules and regulations which are complicated but at the same time are crucial. In case of non-compliance, there are heavy penalties levied by the government officials on these companies. So to avoid any non-compliance and to take corrective measures, the Companies Act has made it mandatory for certain companies to conduct a secretarial audit.
Applicability:
1. 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.
“Turnover” means the aggregate value of the realisation of amount made from the sale, supply or distribution of goods or on account of services rendered, or both, by the company during a financial year.
Secretarial Audit is also mandatory to a Private Company which is a subsidiary of a Public Company, and which falls under the prescribed class of companies.
SCOPE OF SECRETARIAL AUDIT
A secretarial auditor has to check compliances by the company under the following laws and rules made there-under;
i. The Companies Act, 2013 (the Act) and the rules made there-under;
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made there-under;
iii. The Depositories Act, 1996 and the Regulations and Bye-laws framed there-under;
iv. Foreign Exchange Management Act, 1999 and the rules and regulations made there-under to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings;
v. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):-
a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
b. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;
c. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;
d. The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999;
e. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
f. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;
g. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009;
h. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998;
vi. Secretarial Standards issued by The Institute of Company Secretaries of India.
vii. The Listing Agreements entered into by the Company with Stock Exchange(s), if applicable;
viii. Other laws as may be applicable specifically to the company
Thus the scope of Secretarial audit is not limited to the corporate laws applicable to company but it extent to all laws applicable to Company.
Benefits of Secretarial Audit
- An effective mechanism to make sure of the compliance with the legal and procedural requirements.
- Provides a level of confidence to the directors & Key Managerial Personnel etc.
- Secretarial Audit ensures legal and procedural requirements so directors can concentrate on important business matters.
- Strengthen the goodwill of a company for their regulators and stakeholders.
- Secretarial Audit is an effective governance and compliance risk management tool.
- It helps the investor in analyzing the compliance level of companies, thereby increases the reputation.
How S.K. Agrawal & Co. Helps in Secretarial Audit?
With S.K. Agrawal & Co., you can comply Secretarial Audit seamlessly. We can help in complying Secretarial Audit in just 4 simple steps:
Step 1: Confirmation Mail Acceptance of our Proposal
Send confirmation mail at our email id regarding acceptance of our Proposal for Secretarial Audit. You can request a callback or directly call to our expert on phone number provided at our website. Our experts will contact you and clear all your queries.
Step 2: Send the Documents on our Email Id
Send below-mentioned documents on our email Id to comply for Secretarial Compliances:
- Company’s nature of business
- Management structure
- Details of laws applicable to the company
- Copy of all the documents filed under different laws
- Details of Internal control of the company
- Management representations as needed in various areas of audit
- Other documents, as required
The Secretarial Audit from S.K. Agrawal & Co. is completely online and thus, you can save time and money as you need not have to visit our office. If you want to visit to our office you are most welcome.
Step 3: Document Verification by our Experts Team
Our expert team will verify the documents Submitted by you.
Step 4: Our Experts Team will prepare Secretarial Audit Report
After Preparing Secretarial Audit Report, we will submit Audit Report in Form MR -3.
Service Area
We provide strategic and qualitative advisory services to all our clients from domestic to international organizations, small, medium and large sized enterprises, assisting them with their incorporation and quality management services so they can establish their business successfully globally. To help them deal with their tax issues, financial and legal requirements we provide all support for post incorporation services, so they are able to run their business seamlessly. We are based at New Delhi and Faridabad, but our wings are spread to serve clients across the globe. Customer Satisfaction, Quality of Service and our Turnaround time are the drivers of our enthusiasm and success. We are continuously serving our client at Faridabad, Delhi, Gurgaon (Gurugram), Noida (Gautam Budh Nagar), Sonipat, Panipat, Palwal, Jind, Karnal, Meerut, Hapur, Kolkata, Mumbai (Bombay), Pune, Bangalore, Nasik, Aurangabad, Nagpur, Ludhiana, Amritsar, Mohali, Hyderabad, Bareily, Kanpur, Agra ,Mathura, Baddi, Rudrapur, Haridwar, Siliguri, Jamshedpur,Hubli and many other Industrial Areas.