Secretarial Audit – Scope Enhanced

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Secretarial Audit Scope Enhanced

Secretarial Audit

The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 has been amended and consequently the scope of secretarial audit is enhanced. Before the amendment the audit was applicable to

  1. Every Listed Company.
  2. Every public company having paid up share capital of 50 Crore or more OR turnover 250 Crore or more

After the amendment , a category of companies has been added to the list

  • Private Companies having outstanding loans/borrowing for an amount Rs. 100 crore or more. For this purpose borrowings from  banks/public financial institutions/public as on the last date of latest audited financial statement are to be considered

Appointment of Company Secretary

A private company having paid up share capital of 5 crore or more is required to appoint a whole time Company Secretary

Now this limit has been increased to 10 Crore. So with the amendment a private company having paid up capital of 10 Crore or more only will be required to appoint a full time company secretary

Relevant Notification

Blog contributed by CS Prerna Gupta | Partner : Preksh Corpserve LLP