What is Secretarial Audit Package for Companies?

Secretarial audit is an audit to check compliance of various legislations including the Companies Act and other corporate and economic laws applicable to the company. Secretarial audit is a process to check the compliances made by a company under the Corporate Law and the other relevant laws, regulations, rules and procedures etc. It was enacted vide section 204 of the 2013 Companies Act. Under this, the regulators monitor the companies for compliances as needed by the stated laws and processes.

Secretarial audit is an audit to check compliance of various legislations including the Companies Act and other corporate and economic laws applicable to the company. Secretarial audit is a process to check the compliances made by a company under the Corporate Law and the other relevant laws, regulations, rules and procedures etc. It was enacted vide section 204 of the 2013 Companies Act. Under this, the regulators monitor the companies for compliances as needed by the stated laws and processes.

It is maintained that periodical inspections of the records gives the Authority the exact information of the company’s compliance policy. For the inexperienced, only a member of the Institute of Company Secretaries of India, who holds a certificate of practice, can conduct such a secretarial audit and then furnish the official Secretarial Audit Report to the Company.

A detailed secretarial audit helps:

To check reports on compliances.

To protect the interest of employees, customers, society etc.

To avoid any unnecessary legal actions by the law enforcing agencies.

To point out inadequate compliances and non-compliances.

To ensure that the procedural and legal requirements are suitably complied and that is important for the image and the goodwill of any company.