Secretarial Audit, Secretarial Compliance and Secretarial Audit Applicability: What Indian Companies Must Know

Corporate governance in India is no longer optional — it is a legal and reputational necessity. As regulatory expectations rise, companies are required to maintain transparency, follow statutory rules, and demonstrate ethical business conduct. This is where secretarial audit, secretarial compliance, and understanding secretarial audit applicability become essential for organisations of all sizes.

What Is Secretarial Audit?

A secretarial audit is an independent verification of whether a company is complying with the provisions of the Companies Act, SEBI regulations, FEMA, and other applicable corporate laws. It is conducted by a practising Company Secretary and focuses on checking legal records, board processes, statutory filings, and governance standards.

The objective of a secretarial audit is not only to detect non-compliance but also to help companies identify risks early and strengthen internal controls. Many organisations partner with professional firms like ASC Group to ensure their audit is handled accurately and efficiently.

Understanding Secretarial Compliance

Secretarial compliance refers to the continuous process of adhering to all legal and regulatory requirements prescribed for a company. This includes maintaining statutory registers, filing returns on time, conducting board and shareholder meetings correctly, and following disclosure norms.

Strong secretarial compliance helps companies avoid penalties, prevent governance failures, and build trust with investors, regulators, and other stakeholders. Rather than treating compliance as a yearly task, businesses should view it as an ongoing governance function supported by professional advisors such as ASC Group.

Secretarial Audit Applicability — Who Needs It?

Knowing secretarial audit applicability is critical for determining whether your company is legally required to undergo an audit.

As per Section 204 of the Companies Act, 2013, secretarial audit is mandatory for:

• Listed companies

• Public companies with paid-up share capital of ₹50 crore or more

• Public companies with turnover of ₹250 crore or more

  
  

Additionally, certain private companies, subsidiaries, or companies governed by sector-specific regulations may also fall under secretarial audit applicability based on regulatory notifications.

Even if not mandatory, many companies voluntarily opt for secretarial audit to improve governance quality and reduce regulatory exposure.

Why These Three Elements Matter Together

While secretarial audit evaluates compliance, secretarial compliance ensures daily adherence, and secretarial audit applicability determines whether the audit is legally required. Together, they form a governance framework that supports sustainable growth, legal safety, and investor confidence.

Professional firms like ASC Group provide integrated solutions covering advisory, audit execution, and compliance management, allowing businesses to focus on growth while staying legally secure.

Final Thoughts

In today’s regulatory environment, ignoring secretarial responsibilities can lead to serious legal and financial consequences. Understanding secretarial audit applicability, maintaining proper secretarial compliance, and conducting regular secretarial audits are no longer optional — they are essential.

With expert guidance from ASC Group, businesses can stay compliant, transparent, and future-ready while meeting all statutory obligations with confidence. Original Source