Secretarial Audit was initiated by MCA under section 204 of the Companies Act, 2013read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. Secretarial Audit is a process by which the compliances with the provisions of various laws and rules/regulations/procedures, maintenance of books, records, etc., are duly checked by the independent practicing Company Secretary.The audit process ensures timely compliance and eliminates any un-intended non-compliance of various applicable rules and regulations by the company.
A Company Secretary in practice is a professional who is well-versed in matters of statutory, legal procedural, and practical aspects of laws applicable to companies (both listed and unlisted public and private companies). A strong knowledge base developed during the ICSI Course makes him a competent professional to conduct Secretarial Audit. As per subsection 1 of section 204, Secretarial Audit and furnish Secretarial Audit Report in form MR-3 can be conducted by the members of the Institute of Company Secretaries of India who are holding certificates of practice (i.e., PCS).
Limits for Applicability:
According to Section 204 of the companies act, 2013 the secretarial audit applies to the following companies:
The Report for the Secretarial audit shall be in Form MR-3 as prescribed under sub-rule (2) of rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
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Posted by: CA Neetu Saini