Secretarial Audit Compliances and its Benefits


The secretarial audit is a part of compliance wherein the Government of India identifies its necessity by rewarding it with the due statutory acknowledgment of such an audit. Further, companies must carry out secretarial audits on their own which ensures that there is no violation, contradiction of any law and all the compliances relating to top management and business are compiled timely. Usually, Secretarial audit compliances is carried out to protect the business with upcoming risks and internal audit so that no loophole makes a business accountable for not being complied with the latest laws.

Benefits of the Secretarial Audit:
  1. It is carried out to make sure that the business activities and management of work are done following the statutory needs and the business is in a safe mode of working.
  2. To ensure that the one’s handling duties are carrying out their functions as directed and there is no violation of any rule/regulation.
  3. Make sure that all the compliances of business are fulfilled.
  4. Creates trust in the company regarding fulfillment of the compliances and updating the changes the moment they enter the market and apply compliances to avoid any penalties.
  5. Assist in decreasing the burden of execution bodies to make sure that secretarial compliances are pro-actively met in an organization.
  6. Offering support to various bodies including SEBI, Stock Exchanges, Financial Institutions, Banks, etc. for ascertaining the standards of compliances of industry-specific business.
  7. Providing a strategic plan to the company which wants to acquire the other one to ensure better business making strategies that include a merger, acquisitions and Joint venture.
  8. It provides conformity for legal accomplishments and safe investment. 

Various kinds of Secretarial Audits:
  • Secretarial audit for listed companies: All the companies which are listed need to get themselves audited with Chartered Accountant or company secretary. SEBI has taken the initiative to share the audit report to the stock exchange in an orderly manner.
  • Secretarial audit for public unlisted companies: Unlisted companies need to go through a secretarial audit once they obtain notice by ROC. The audit must be carried out following the Companies ACT.
  • Secretarial audit for private limited companies: Annual Secretarial Audit Compliances is essential for an organization to examine and review documents of an organization.
  • Secretarial audit for corporate governance audit of central public sector undertaking: The secretarial audit is carried out following guidelines and provisions in the relevant rules, laws, and instructions of SEBI. Execution of SEBI guidelines will safeguard the interest of shareholders and relevant stakeholders.
  • Stock broker’s audit: The security and Exchange Board of India through its notification has directed to whole internal audit on a half-yearly basis by the chartered accountants, cost and management accountants and company secretaries India in practice. 

Secretarial Audits are carried out to keep the organization up to date with the recent compliances. To avoid any penalty ASC offers regular secretarial services where audits are carried out and advisory over secretarial Laws is provided

Location: India

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