21 June 2010
Hello friends and seniors, Can any body explain to me in short the Concept of "Comfort Letter from Company (The Board of Directors) to Company Secretaries in whole time practice agaist the Compliance Certificate under Section 383A of the Companies Act, 1956. Please provide me the format of Comfort Letter if any one have....
21 June 2010
The comfort letter is like the management representation letter given by the Company to the statutory auditors.
In this case, the letter would be addressed to the PCS and cover most points of the Secretarial compliance certificate and that it would be signed by one of the directors. Points for which the PCS has to rely on the Company's audited results like the shares issued, loans, dividends, share transfers etc. should be covered.
Points which can be factually verified like dates of ROC filings, board meetings need not be covered but the letter may state that no other meetings are held.
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