Secretarial Audit Services

    • Overview of Secretary Audit
    • Features of Secretarial Examination 
    • Benefits of taking the secretarial exam 
    • Violations related to secretarial examination 
    • Question and answer section
Call Us +91-9310165114

Quick Contact

Lets Get In Touch Now

Need Assistance?

Call us on

+91-9310165114

Contact us on

Download Company Profile

Download our awesome company profile!

Download Profile

 

Most companies in India require such requirements for this form of audit. There are special regulations that companies must comply with to carry out inspections. The main law regulating secretarial audits in India is the 2013 Companies Act. 

 

Section 204 (1) requires companies to obtain secretarial audit reports from the secretarial auditor. This provision should be read in conjunction with Rule 9 of the 2014 Corporate Regulations (Appointment and Compensation of Officers). 

 

Features of Secretarial Audit

 

This form of audit ensures that the company complies with the requirements of the 2013 Companies Act. It promotes good habits among the members of the company. It promotes the independence of the entire organization as a group of individuals carries it out. 

 

By taking appropriate steps about this form of assessment, companies can manage and manage different types of risk. Risk management is one of the company's main goals. This can be easily done by establishing a secretarial exam system. 

 

Most companies in India require such requirements for this form of audit. There are special regulations that companies must comply with to carry out inspections. The main law regulating secretarial audits in India is the 2013 Companies Act.

 

Section 204 (1) requires companies to obtain secretarial audit reports from the secretarial auditor. This provision should be read in conjunction with Rule 9 of the 2014 Corporate Regulations (Appointment and Compensation of Managers).

 

Who can perform the above compliance in connection with the secretarial audit?

 

Generally, those who have completed the Corporate Secretarial Course of the Indian Business Secretarial Association (ICSI) are eligible to take this type of exam in India. However, you must receive the necessary training to perform this type of audit. 

 

Secretary Audit Regulations 

 

Compliance requirements related to the company. All forms of flexibility in proof of company suitability. Review of corporate documents and records. Schedule for conducting secretarial exams. Appointment of an auditor to carry out this type of inspection. 

 

Benefits of taking the Secretarial Audit

 

Helps to perform due diligence on future buyers in personal acquisition transactions. It will provide some form of compensation to the company's management and shareholders. Compliance with the law ensures that the company complies with the appropriate standards for auditing. Reduces the risk your organization takes. This helps maintain the various forms of legal activity of the company. 

 

Statutory law on secretarial audit

 

 This form of review must be conducted by the requirements of the Companies Act 2013. In addition, the following laws apply to the conduct of examinations of Secretarial Audit in India

 2013 Companies Act and related rules 

 

1956 Securities Contract (Regulatory) Act (`SCRA`) and Regulations

 

1996 Deposit Law and Regulations and Ordinances and their respective rules.

Regulations on Foreign Exchange Control Act 1999 and Foreign Direct Investment, Foreign

Direct Investment and other related laws in India.

 

That said, the Securities and Exchange Commission of India rules apply to conduct secretarial examinations in India. Procedure for conducting a secretarial examination 

 

To conduct a Secretarial Audit in India: 

 

Appointment as company secretary 

 

By Rule 8 of the Company (Board of Directors) Rule 2014, the company must meet a board of directors and pass a resolution regarding the appointment of auditors. 

Official notice about this.

 

The appointment of the auditor should be formally communicated to the auditor. This is done formally by receiving a letter of commitment from the company. 

 

Sign the Commitment Declaration 

 

After the auditor has been appointed, the assignment must be signed to ensure that the tasks and responsibilities in performing the audit task are fulfilled. 

  

Working Paper Report Creation 

 

This step includes all reports related to secretarial audits performed by the enterprise. Such summaries in the context of the Secretariat's audit will be produced by a person appointed as the Secretariat's auditor. 

 

Submission of audit report 

 

The final step is to submit a report by the requirements of the Companies Act 2013. When preparing the report, a thorough analysis by the secretary auditor should be carried out. You will need to comment on the report during this analysis. 

 

Such statements should be made in the report itself. The audit must be fair, as an independent party conducts the audit. This report must be in the form of a statement. 

 

If company restrictions interfere with the auditor's work and fail to function, the secretary audit report should highlight these restrictions.

 

Which company cannot be examined by a secretary? 

 

The secretarial examination applies only to a small number of companies. Normally, this is only done by public and listed companies that hold shares on the stock exchange. By Article 2 (71) of the Companies Act 2013, a public company is defined as a company whose shares and securities are listed on an authorized stock exchange. 

 

However, if the private company is a subsidiary of a public company, a secretarial audit will be conducted according to the requirements of the public company. 

 

Violations related to secretarial audit

 

By Article 204 (4) of the Companies Act 2013, you will be punished if the company fails to conduct a secretarial examination or if its officers violate the secretarial examination provisions. 

 

By Article 448 of the Companies Act, the company commits fraud if the following activities occur during the audit process: 

Falsification of statements or material facts about the company 

Suppression of information intended to be disclosed by the company 

Omit all the important facts of the publication.

 

Anyone who is held liable under Article 447 of fraud will be sentenced to imprisonment at the following times: Imprisonment for more than 

6 months and up to 10 years. 

 

The perpetrator must pay a fine greater than or equal to the amount associated with the secretarial examination-related fraud. However, the fine can be tripled or more. If the fraud is in the public interest, the crime will be sentenced to 10 years in prison.

 

The Secretary Auditor will comment on whether the company has the appropriate systems and processes for the size and activities of the company to monitor and ensure compliance with applicable laws, rules, regulations, and guidelines.

Only members who are registered as working corporate secretaries with the Indian Association of Corporate Secretaries and have the appropriate certificate can carry out secretarial audits.

Secretary Auditor's Authority and Obligations Obtain company books and other relevant documents as part of the audit. To obtain information and explanations from company executives regarding various transactions.

Secretariat audits are an effective tool for managing corporate compliance. Helps ensure timely corrective actions in the event of non-compliance found—records and Documents to Confirm Compliance with Various Regulations / Procedures, Books, Keeping Records, etc.

Under the Companies Act, all companies must maintain certain records and registrations to comply with the various sections and rules of the Companies Act.

We respect your privacy, Our Privacy Policy

Get In Touch

Decide in 24 hours whether outsourcing will work for you

accounts@especia.co.in