Section 204 read with Section 117 - Secretarial Audit
Section: Section 204 read with Section 117 of the Companies Act, 2013
Purpose: The purpose of Secretarial Audit is to verify compliance with the provisions of the Companies Act, 2013, and other applicable laws, regulations, and guidelines by a company.
Applicability: Every listed company and every public company having a paid-up share capital of fifty crore rupees or more, or a turnover of two hundred fifty crore rupees or more, are required to conduct a secretarial audit.
Timeline: The Secretarial Audit Report should be submitted to the Board of Directors of the Company within 60 days from the conclusion of the financial year.
Exemption: No exemptions are available under Section 204 read with Section 117 of the Companies Act, 2013.
Penalty: In case of non-compliance, a company may be penalized with a fine of up to Rs. 5,000. Further, the company secretary, who is appointed to conduct the secretarial audit, may also be liable for any non-compliance, and penalized with a fine of up to Rs. 1,00,000.
Due Date: The Secretarial Audit Report should be submitted to the Board of Directors of the Company within 60 days from the conclusion of the financial year.
Forms: The Secretarial Audit Report shall be submitted in Form No. MR-3.
Reporting Authority: The Secretarial Audit Report is to be submitted to the Board of Directors of the Company.
