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The Secretarial Audit is the fragment of Legal Compliance reporting system. The Government of India analyzes the requirement for Secretarial Audit India only by rewarding it with the due Statutory recognition to such an audit. It’s the responsibility of the company to undertake Company Secretarial audit on its own.
This audit assures the board of directors about compliance of different provisions affecting corporate entities and, in this way, help justify their Bonafede of non-involvement in any commission or omission, any technical error, violation or contravention and breaches. This direct the directors to adopt measures for mitigating the consequences of the offences they hadn’t committed deliberately. The secretarial auditor performs as a catalyst in case of multiple corporate laws dealing with corporate functions and handles the situation well in case of alarming increment in the implications. In this way it supports the Board of Directors and Government of India.
According to section 383 A (1), any company which doesn’t require a full-time secretary and bears the paid-up capital up to 10 lakhs. The Compliance Certificate was made compulsory under the Companies (Amendment) Act, 2000, w.e.f. 13-12-2000, which inserted a provision in section 383A (1) of the Companies Act making it mandatory for every company not required to employ a whole-time secretary under sub-section. The certificate is a proof of the completion of the procedure complying with all the relevant provisions. The copy of the certificate is to be attached with the Board’ s report referred in section 217. The company secretary audits the documents before being submitted to board of directors for concluding the position of the company.
The content, scope and criteria of the company secretarial audit are framed by the Central Government of India and the rules and regulations are devised accordingly. According to 2000, Compliance Certificate Rules, the secretarial Audit is always conducted in interest of every corporate management as; an independent professional can approve that the company has walked by the compliances under the Act. It also serves as the thing of larger interest for the shareholders, creditors and employees. It assists in department of company affairs and registrar offices, the documents filed by the small and medium companies enveloped in this provision, assure proper compliance. This will even be helpful in reducing work of the inspection department. The inherent objectives of secretarial Audit are:
Secretarial Audit Advantage: -
Below are the respective advantages of the Secretarial Audit:
We deal in providing the following types of Secretarial audits:
For carrying out effective auditing procedure, like the provisions associated with money laundering act, Handling Mechanism, status of compliance of last audit/inspection, Investor Grievances, Power of Attorney received from investors are taken into account for consideration.
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