- Checking and fulfilling of provisions of law, rules and procedures etc.
- Must be conducted by an Independent professional
- Due process must be followed as prescribed
- Essentially a process to monitor the requirements to be fulfilled as per the rules and regulations.
APPLICABILITY OF SECRETARIAL AUDIT
- For every Listed Company
- For company having turnover of more than 250 crore and paid up share capital of more than 50 crore.
- A company secretary has to be recognised to conduct the secretarial Audit.
CONTENTS OF SECRETARIAL AUDIT REPORT
- It should be prepared by a practicing Company Secretary.
- It should be prepared in FORM M-3-R.
- It should be Annexed with Board’s Report.
PUNISHMENT IN CASE OF NON COMPLIANCE OF SECRETARIAL AUDIT
In case of non-compliance of Secretarial Audit the
- Officer of the Company
- Company Secretary
Who is in default shall be punishable with fine of up to minimum of 1 Lakh and Maximum of 5 Lakhs.
OBJECTIVES OF SECRETARIAL AUDIT
- To report and fulfil all the compliances as per the rules and laws
- To report the non-compliances.
- To protect the Interest of various stakeholders of the organization
- To avoid any illegal activities by law enforcing agencies and other person related to the organization
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