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Latest Amendment in Secretarial Audit (notified as on 3rd January, 2020)

Latest Amendment in Secretarial Audit

As per Section 204(1) Every listed company and a company belonging to other class of companies shall be as under:

 

(a) Every public company having a paid-up share capital of fifty crore rupees or more; or

(b) Every public company having a turnover of two hundred fifty crore rupees or more; 1[or]

(c) every company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more.]

 

Shall annex with its Board’s report made in terms of sub-section (3) of section 134,a secretarial audit report, given by a company secretary in practice, in E- Form MR-3

 

(2) It shall be the duty of the company to give all assistance and facilities to the company secretary in practice, for auditing the secretarial and related records of the company.

(3) The Board of Directors, in their report made in terms of sub-section (3) of section 134, shall explain in full any qualification or observation or other remarks made by the company secretary in practice in his report under sub-section (1).

(4) If a company or any officer of the company or the company secretary in practice, contravenes the provisions of this section, the company, every officer of the company or the company secretary in practice, who is in default, shall be punishable with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees

 

 

NOTE:For the purposes of this sub-rule, it is hereby clarified that the paid up share capital, turnover, or outstanding loans or borrowings as the case may be, existing on the last date of latest audited financial statement shall be taken into account.]

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