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what is the need for secretarial audit ?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

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4 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

1. Complexity of laws- There are various laws i.e. Company Law, Competition Law, Economic Laws, Securities and Capital Market Laws, Consumer Protection Laws, Industrial and Labour laws, Pollution Control Laws, Foreign Exchange Legislation, etc. which implementation is required thoroughly audit to check their compliances otherwise would be resulted in various punitive actions. 2. Mismanagement and misuse of public funds by several companies. 3. Ensure effective enforcement of laws and to avoid violations of statutory compliances.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

Complexity of laws- There are various laws i.e. Company Law, Competition Law, Economic Laws, Securities and Capital Market Laws, Consumer Protection Laws, Industrial and Labour laws, Pollution Control Laws, Foreign Exchange Legislation, etc. which implementation is required thoroughly audit to check their compliances otherwise would be resulted in various punitive actions. 2. Mismanagement and misuse of public funds by several companies. 3. Ensure effective enforcement of laws and to avoid violations of statutory

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Data?1494421730 answered

Dear friend > Need for secretarial audit -- To ensure effective compliance mechanism; -- To improve quality and speed of compliance; -- To reduce the risk of consequences of non-compliance; -- To provide a level of confidence to the directors, officers in default, Key Managerial Personnel etc; http://image.slidesharecdn.com/secretarialauditicsi-150314004835-conversion-gate01/95/how-to-begin-secretarial-audit-compliance-of-all-applicable-law-6-638.jpg?cb=1426312274

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 answered

**NEED FOR SECRETARIAL AUDIT** 1. Complexity of laws- There are various laws i.e. Company Law, Competition Law, Economic Laws, Securities and Capital Market Laws, Consumer Protection Laws, Industrial and Labour laws, Pollution Control Laws, Foreign Exchange Legislation, etc. which implementation is required thoroughly audit to check their compliances otherwise would be resulted in various punitive actions. 2. Mismanagement and misuse of public funds by several companies. 3. Ensure effective enforcement of laws and to avoid violations of statutory compliances. Clause 49 Sub-clause I(C) (iii) of the Listing Agreementsays that “The Board shall periodically review compliance reports of all laws applicable to the company, prepared by the company as well as steps taken by the company to rectify instances of non-compliances.” Therefore, all listed companies required a system for reporting to the Board compliances with laws applicable to them. Hence, a Legal Compliance Reporting System is necessary. 4. Effective tool to boost confidence amongst Directors, Promoters and Key Managerial Personnel. 5. Hence, Secretarial Audit is an effective tool for corporate compliance management. It helps ensure timely corrective measures when non-compliance is detected. Thanks

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