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  • 8/17/2019 Presentation on Secretarial Audit-ICSI-Vile Parle-28.06.14

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    PRESENTATION ON

    SECRETARIAL AUDIT -

    COMPANIES ACT, 2013

     

    K. SETHURAMAN

    June 28, 2014

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      VOLUTION OF S CR TARIAL AUDIT

     Until 2000 – Securities related Audit (Clause 47C)

    February 2000 – Corporate Governance (Clause 49)  Copanies (Copliance Certi!icate) "ules# 200$ (Section %&%A)

    ' Unlisted copanies it paid*up capital o! "s $0 la+ or ore

    ' "e,uired even i! copany ad a Copany Secretary in eployent

    (applicable !ro -eceber %$# 2002) ' Secretarial Audit "eport !or reconciliation o! total aditted capital it

    depositories and total issued and listed capital (CA or CS)

      Annual "eturn Certi!ication

    -ue -ili.ence certi!icates / reports !or 1# open o!!er# bonus issue#G-" issue# etc3

     CA 5oluntary Guidelines# 2009

     Secretarial Audit and Annual "eturn certi!ication (Copanies Act 20$%)

              •         2

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    B N FICIARI S OF S CR TARIAL AUDIT

     Assurance o! Copliances to6

     Copanies -irectors

    ana.eent

    Sareolders

    Creditors / rustees

    Credit "atin. A.encies

    "e.ulatory Autorities

    ter Sta+eolders

              •         3

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    S CR TARIAL AUDIT FOR BIGG R

    COMPANI S (S C 204)

     Companies covered:

    (a)Every Listed Company  (includes Copanies ose debentures# arrants are listed)

    (b)Other class of companies6

    (i) 8very 1ublic Copany avin. a paid up share capital of fifty crore

    rupees or more (ii) 8very public copany avin. a turnover of two hundred fifty crore

    rupees or more

     Secretarial Audit "eport sall be anneed to :oard;s "eport

     :oard in teir "eport to eplain in !ull any ,uali!ication or observationor oter rear+s ade by 1CS in is report

     Forat o! Secretarial Audit "eport sall be in For "*%

     For contravention – copany# every o!!icer o is in de!ault and 1CS

    punisable it !ine – "s $ la+ to "s < la+

              •         4

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    APPOINTM NT OF S CR TARIAL AUDITOR

     :oard to appoint at its eetin. te Secretarial Auditor (on

    yearly basis) and !i is reuneration =Section $79(%)>

     Copany to !ile te resolution it "oC =Section $$7>

     Period of Office:  e Act is silent – su..ested to be

    siilar to statutory Auditor appointed under Section $%9($0 years eter Secretarial Auditor is a 1roprietor or a

    !ir)

     btain consent o! te Secretarial Auditor 

              •         5

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      LIGIBILITY, QUALIFICATIONS AND

    DISQUALIFICATIONS OF S CR TARIAL AUDITOR

     ?o le.al provisions in te Act

     Su..ested siilar re,uireents as are set out in te Act

    !or Statutory Auditors and applicable to Cost Auditors3

    (Self Code)

              •         

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    R MOVAL & R SIGNATION OF S CR TARIAL

    AUDITOR

     "eoval o! Secretarial Auditor – no provisions in te Act

     "esi.nation o! Secretarial Auditor – :oard to note and !ile

    !or it "oC (not obli.atory)

     Secretarial Auditor also to !ile !or it "oC (not obli.atory)

     Appointent o! Secretarial Auditor on casual vacancy

              •         !

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    DOCUM NTS R QUIR D FOR AUDIT

     ?otice# a.enda# notes on a.enda inutes o! eetin.s#

    attendance re.isters

     -ra!t Financial Stateents# Auditor;s "eport# -irector;s "eport

     Stateents !or borroin.s and investents

      All Statutory "e.isters  -isclosures / consents / declarations

     Filin.s it "oC / re.ulatory autorities / ":

     Filin.s / subissions to Stoc+ 8can.es

     "elevant approvals / correspondence

     Copliance certi!icates o! !unctional eads !or copliance o!

    applicable las

              •         8

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    AUDIT M THODOLOGY

     -eterine scope o! Audit

     "e,uest !or details o! various corporate actions / events sub@ect to audit

     -evelop te audit !raeor+

      Ascertain applicable las

     1repare cec+*lists and tie scedule

     Call !or docuents / in!oration

     btain ana.eent "epresentation etter 

     -iscuss and see+ clari!ication# i! re,uired

     -iscuss dra!t report it ana.eent

     FinaliBe and subit dra!t addressed to sareolders

              •         "

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    S CR TARIAL AUDIT R PORT – FORM NO. MR 

    !

     "eport is !or te !inancial year ended

     "eport is to be addressed to te ebers siilar to

    independent Auditors; "eport

     Parts of Secretarial Audit eport:

    (a)Para !: 1reable

    (b)Para ":  eport in #eneral  (based on veri!ication o! te

    copany;s boo+s# papers# inute boo+# !ors and returns

    !iled and in!oration provided) tat te copany as

    coplied it te statutory provisions listed in te report that the company has proper $oard processes and

    Compliance mechanism

              •         1         0

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    S CR TARIAL AUDIT R PORT – FORM NO. MR 

    !

    (a) Para %:  "eport cites eaination o! te boo+s# papers#

    inute boo+s# !ors and returns !iled and oter records

    aintained by te copany accordin. to te 1rovisions

    o!6

    (i) e Copanies Act# 20$% (te Act) and te rules ade tereunder

    (ii) e Securities Contracts ("e.ulation) Act# $9

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    S CR TARIAL AUDIT R PORT – FORM NO. MR 

    !

    (v) e !olloin. "e.ulations and Guidelines prescribed under te

    Securities and 8can.e :oard o! ndia Act# $992 (ES8: Act;)6* (a) e Securities and 8can.e :oard o! ndia (Substantial Ac,uisition

    o! Sares and a+eovers) "e.ulations# 20$$

    (b) e Securities and 8can.e :oard o! ndia (1roibition o! nsider

    radin.) "e.ulations# $992

    (c) e Securities and 8can.e :oard o! ndia (ssue o! Capital and

    -isclosure "e,uireents) "e.ulations# 2009

    (d) e Securities and 8can.e :oard o! ndia (8ployee Stoc+ ption

    Scee and 8ployee Stoc+ 1urcase Scee) Guidelines# $999

    (e) e Securities and 8can.e :oard o! ndia (ssue and istin. o!

    -ebt Securities) "e.ulations# 200&

              •         1         2

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    S CR TARIAL AUDIT R PORT – FORM NO. MR 

    !

    (!) e Securities and 8can.e :oard o! ndia ("e.istrars to an

    ssue and Sare rans!er A.ents) "e.ulations# $99% re.ardin. te Copanies Act and dealin. it client

    (.) e Securities and 8can.e :oard o! ndia (-elistin. o! 8,uity

    Sares) "e.ulations# 2009 and

    () e Securities and 8can.e :oard o! ndia (:uybac+ o! Securities) "e.ulations# $99&

    (vi) 33333333333333333333333333333333333333333333333333333333333333 (&ention the other laws

    as may be applicable specifically to the company)

              •         1         3

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    S CR TARIAL AUDIT R PORT – FORM NO. MR 

    !

    (d) Para ': "eport deals it eaination o! copliance it applicable

    clauses o! te !olloin.6

    (i) Secretarial Standards issued by te nstitute o! Copany

    Secretaries o! ndia

    (ii) e istin. A.reeents entered into by te Copany it 

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