SECRETARIAL AUDIT

Secretarial Audit refers to a strategic review of compliance under Section 204 of the Companies Act, 2013, to verify that a company complies with all laws and regulations under corporate law. Applicable to listed companies and public companies with a paid-up capital of ₹50 crore or more or a turnover of ₹250 crore or more, it should be done by a Practicing Company Secretary (PCS). Greater than a mere legal requirement, it facilitates transparency, corporate governance, and risk management and reinforces stakeholder trust and long-term business success.

What Does Secretarial Audit Cover?

✅ A Secretarial Audit involves checking compliance with:
✅ Companies Act, 2013
✅ SEBI Regulations & Listing Obligations (LODR)
✅ FEMA Regulations (for foreign transactions)
✅ Depositories Act, 1996
✅ Other applicable corporate and industry-specific laws

Deliverables

✅ Secretarial Audit Report (Form MR-3)
✅ Recommendations for rectifying non-compliances
✅ Risk identification & compliance improvements
✅ Independent opinion from a qualified professional

Why is Secretarial Audit Important?

✅ Ensures statutory and regulatory compliance
✅ Minimizes legal risks, penalties, and reputational damage
✅ Enhances corporate governance and investor confidence
✅ Helps directors and officers in discharging their fiduciary duties
✅ Builds a foundation for ethical and sustainable business practices