On call discussion about the requirement.
With the Increasing compliance in the corp-orates and to keep an eye on the compliance's made under law by the corp-orates. Government has introduced the concept of Secretarial Audit under Companies Act, 2013.
Secretarial Audit can be defined as the check made by the professional on the compliance's made by the company on the applicable laws applicable to them.
Secretarial Audit is not only useful for the government for the audit purpose but it also helps the corp-orates in many ways such as:
Companies should conduct the secretarial audit not only to adhere to the laws but as a good practice to ensure that they are adhering to all the applicable compliance's.
As per the Provisions of companies Act, 2013, Secretarial audit is applicable on:
Secretarial Audit can be given by a company secretary in practice and It shall be given in the prescribed format i.e. MR-3.
If there is any qualification or observation made by the practicing company secretary it shall be mention in the Secretarial Audit report and as per section 204 (1) company shall annex the same with the board report along with the justification on the report made under the Secretarial Audit Act.
If a company or an officer or company secretary in practice contravene any of the provisions of section 204, it shall be liable to a penalty of Rupees one Lakh which may extend to five Lakh rupees.
Further, Section 448 of companies Act, 2013 says that if in under any return, financial statement, prospectus or any other documents of the company under the provision of companies Act,2013 or rules made there under, makes a statement
(a) Which is false in any material particulars, knowing it to be false; or
(b) Which omits material fact, knowing it to be material
Shall be a liability to penalty as per section 447 of companies Act, 2013 which is an amount of at least ten lakh rupees or one percent of the turnover of the company, whichever is lower.
A Person Shall also is punishable with the punishment which shall be less than six months with imprisonment but which may not be extended to more than ten years and shall also involves the fine which shall not be less than the amount involve in fraud, nut can be extended up to three months.
Where the fraud involves public interest, the tenure of imprisonment shall not be less than three year.
Just tell us a little bit about your business and you'll have the incorporation certificate in 20 working days. It's that simple. In addition to yours, we'll be handling around 400 requests this month.
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Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.
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