Secretarial Audit

Audit

Secretarial Audit

Secretarial Audit is mandatory for certain companies under Section 204 of the Companies Act, 2013. A practising Company Secretary examines compliance with the Act, rules, and other laws, and issues a Secretarial Audit Report (Form MR-3). We conduct the audit, identify non-compliances, and provide a report to be annexed to the Board's Report.

Who needs it?

  • Listed companies
  • Companies with paid-up capital ≥ Rs 50 lakh
  • Companies with turnover ≥ Rs 250 crore
  • Companies having borrowings ≥ Rs 50 crore

What we audit

  • Companies Act & rules compliance
  • ROC filings & statutory registers
  • Board & general meeting compliance
  • SEBI & other applicable laws

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Overview

What is Secretarial Audit?

Secretarial Audit is an examination of compliance with the Companies Act, 2013, rules made thereunder, and other applicable laws (SEBI, FEMA, etc.). The auditor (a practising Company Secretary) verifies the company's secretarial records, ROC filings, board and general meeting processes, maintenance of statutory registers, and adherence to secretarial standards. The audit report (Form MR-3) is attached to the Board's Report. If non-compliances are found, they are reported and the company must address them. We conduct the audit with a structured approach and provide actionable recommendations.

Scope

What We Examine

We verify these areas during the secretarial audit.

Companies Act

Compliance with Act, rules, and regulations.

ROC Filings

MGT-7, AOC-4, and other e-forms.

Statutory Registers

Register of members, directors, charges, etc.

Board & AGM

Meetings, resolutions, minutes.

SEBI & SEBI Rules

For listed companies and applicable entities.

FEMA & Other Laws

Where applicable to the company.

Process

Secretarial Audit Process

1

Engagement & Scope

Define scope, sign engagement letter, and collect documents.

2

Document Review

Examine ROC filings, registers, minutes, and records.

3

Verification

Verify compliance with Companies Act and applicable laws.

4

Report & Draft

Prepare MR-3 report. Discuss findings with management.

5

Final Report

Issue signed report for annexure to Board's Report.

Our Services

Explore Other Services

We offer end-to-end corporate law consultancy, from entity formation to ongoing compliance.

FAQ

Frequently Asked Questions

Common questions about secretarial audit.

It is mandatory for listed companies and for unlisted companies meeting any of: paid-up capital ≥ Rs 50 lakh, turnover ≥ Rs 250 crore, or borrowings ≥ Rs 50 crore. We can assess whether your company falls within the scope.

We report them in the MR-3. We also advise on rectification. The Board's Report must include the audit report. Rectifying before or soon after the audit reduces exposure.

The MR-3 must be annexed to the Board's Report. It is typically completed before the AGM so it can be included in the annual report. We plan the audit timeline accordingly.