{"id":2282,"date":"2022-03-02T09:49:23","date_gmt":"2022-03-02T09:49:23","guid":{"rendered":"https:\/\/www.akgvg.com\/blog\/?p=2282"},"modified":"2022-03-02T09:49:23","modified_gmt":"2022-03-02T09:49:23","slug":"secretarial-audit","status":"publish","type":"post","link":"https:\/\/www.akgvg.com\/blog\/secretarial-audit\/","title":{"rendered":"Secretarial Audit"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-2283\" src=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/03\/Secretarial-Audit.jpeg\" alt=\"Secretarial Audit\" width=\"1000\" height=\"1000\" srcset=\"https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/03\/Secretarial-Audit.jpeg 1000w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/03\/Secretarial-Audit-300x300.jpeg 300w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/03\/Secretarial-Audit-150x150.jpeg 150w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/03\/Secretarial-Audit-768x768.jpeg 768w, https:\/\/www.akgvg.com\/blog\/wp-content\/uploads\/2022\/03\/Secretarial-Audit-230x230.jpeg 230w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p style=\"text-align: justify;\">A <a href=\"https:\/\/www.akgvg.com\/audit-assurance-services.php\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>secretarial Audit<\/strong><\/a> is a compliance audit, it is an effective tool for corporate compliance management. It helps to take corrective measures and detects non-compliances.<\/p>\n<p style=\"text-align: justify;\">It is a process to check that the company has complied with the legal and procedural requirements, and compliance with the provisions of various laws and rules\/regulations\/procedures, maintenance of books, records, etc.<\/p>\n<p style=\"text-align: justify;\">Section 204 of the Companies Act, 2013, considering the increasing importance of Corporate Governance mandates every listed company and such other class as prescribed to attach a Secretarial Audit Report with its Board\u2019s report.<\/p>\n<p style=\"text-align: justify;\">Secretarial auditing is a form of objective, independent assurance that adds value to and improves the operations of a company. It helps the organizations to improve and evaluate the effectiveness of risk management, control, and governance processes and accomplish its objectives.<\/p>\n<p style=\"text-align: justify;\">As per rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the prescribed class of companies is as follows:<\/p>\n<ul style=\"text-align: justify;\">\n<li>Every listed company<\/li>\n<li>Every Public Company having paid-up share capital of 50 crores or more; or<\/li>\n<li>Every Public Company having a turnover of 250 crores or more or<\/li>\n<li>Every Public Company has outstanding loans or borrowings from banks or public financial institutions of 100 crores or more.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>ROLE OF COMPANY SECRETARY<\/strong><\/p>\n<p style=\"text-align: justify;\">The practicing company secretary has been exclusively recognized for conducting the secretarial audit. Section204 further provides that Secretarial Audit Report is to be submitted in a format prescribed, the format of the Secretarial Audit Report shall be in Form MR-3.<\/p>\n<p style=\"text-align: justify;\">Section 204(3)and section provides that the Directors, inboardreport, shall explain any qualification or other remarks made by the practicing company secretary in the secretarial audit report.<\/p>\n<p style=\"text-align: justify;\"><strong>The Objectives of Secretarial Audit<\/strong><\/p>\n<p style=\"text-align: justify;\"><strong>The objectives of Secretarial Audit are as follows: &#8211;<\/strong><\/p>\n<ul style=\"text-align: justify;\">\n<li>To check &amp; report compliances of Secretarial Standards and applicable laws.<\/li>\n<li>To check inadequate compliances and non-compliances.<\/li>\n<li>To protect the interest of the customers, employees, society, and various stakeholders.<\/li>\n<li>To avoid any legal actions\/penalties.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>NEED FOR SECRETARIAL AUDIT<\/strong><\/p>\n<p style=\"text-align: justify;\">Secretarial Audit is the process of independent examination and verifying several applicable Laws to a company. It ensures timely compliance and eliminates non-compliance with various applicable rules and regulations. The need for Secretarial Audit is as follows: &#8211;<\/p>\n<ul style=\"text-align: justify;\">\n<li>It ensures that the procedural and legal requirements are duly complied with.<\/li>\n<li>It assures and gives a level of confidence to the directors &amp; Key Managerial Personnel etc.<\/li>\n<li>As Secretarial Audit ensures legal and procedural requirements, Directors can concentrate on important business matters.<\/li>\n<li>Enhance the image and goodwill of a company in the minds of stakeholders and regulators<\/li>\n<li>It helps the investor in analyzing the exact legal position and how much comply with laws.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. <a href=\"https:\/\/www.akgvg.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>AKGVG &amp; Associates<\/strong><\/a> does not intend to advertise its services through this.<\/p>\n<p style=\"text-align: justify;\">Posted by:<\/p>\n<p style=\"text-align: justify;\">CS Neetu Saini<\/p>\n<p style=\"text-align: justify;\">AKGVG &amp; Associates<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A secretarial Audit is a compliance audit, it is an effective tool for corporate compliance management. It helps to take corrective measures and detects non-compliances. It is a process to check that the company has complied with the legal and procedural requirements, and compliance with the provisions of various laws and rules\/regulations\/procedures, maintenance of books,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":2283,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120],"tags":[479,469,473,277],"class_list":["post-2282","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-secretarial-services","tag-secretarial","tag-secretarial-audit","tag-secretarial-service","tag-secretarial-support"],"_links":{"self":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/2282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/comments?post=2282"}],"version-history":[{"count":1,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/2282\/revisions"}],"predecessor-version":[{"id":2284,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/2282\/revisions\/2284"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media\/2283"}],"wp:attachment":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media?parent=2282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/categories?post=2282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/tags?post=2282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}