secretarial audit

Hi Tejaswini,

The concept of "secretarial audit" was introduced by Companies Act 2013. Secretarial Audit is a type of compliance audit to check the proper compliance with all the laws and regulations applicable on the company. A independent CS in practice needs to be appointed to conduct Secretarial audit who shall audit all the secretarial and other records of the company and submit his report.

As per section 204 of the act, Secretarial Audit is mandatory for:

• Every listed company
• All other public companies which either have
  • Paid up capital of Rs 50 crores or more or
  • Turnover of Rs 250 crores or more

Companies Act 2013 has specifically empowered CS in practice to audit the secretarial records of the companies and issue his report thereon. So a CA cannot perform Secretarial audit as per Sec 204.

‘Secretarial Audit’ is introduced by the recently enacted Companies Act, 2013. It is a process to check compliances made by the Company under Corporate Law & other laws, rules, regulations, procedures, etc.