
Secretarial Audit is a process to check whether the company is carrying its operations in compliance with the provisions of various laws and rules/regulations/procedures, maintenance of books, records, etc. Such a secretarial audit is conducted by an independent professional. To make sure that the legal and procedural requirements are complied with.
Earlier under Companies Act 1956, the secretarial audit was not mandatory, but with the enactment of Companies Act, 2013 Secretarial Audit becomes mandatory for certain types of companies registered under this act or any previous Companies Act.
A secretarial audit report shall be given by a person being a member of the Institute of Company Secretaries of India having a Certificate of Practice.
A Secretarial Auditor needs to check whether various laws and rules, regulations made thereunder comply or not. These acts include the Companies Act, 2013, the Securities Contracts (Regulation) Act, 1956, the Depositories Act, 1996, Foreign Exchange Management Act, 1999, Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’), etc. and the Rules made there-under.
- Every listed company.
- Every company having outstanding loans or borrowings from banks or public financial institutions of Rs. 100 Crores or more.
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