Regarding applicability of Secretarial Audit

[CS Mohit Saluja]

Dear Concern,

          Greetings of the Day  !

Query in respect of Secretarial Auditor
In case a company has got the Loans sanctioned from Financial Institutions to the tune of Rs. 135 crore i.e. more than 100 crores but has been utilising only 30-40 cr, whether the company is required to have a Secretarial Audit.

Kindly Note that: The Balance Sheet shows Long Term Liabilities as Loan from Financial Institution on 31.03.2023= Rs. 40 cr only

CS Mohit Saluja 

CERTIFIED CSR PROFESSIONAL

and Registered Trade Mark Agent

Mohit Saluja & Associates

Company Secretaries

FCS, L.L.B, M.Com, B.Com(Prof.)

338/7, Central Town

Near Swaran Institute

Jalandhar, Punjab-144001 

Tel: +91 9914558709 (M) 
Email: csmohit...@gmail.com | csmohits...@gmail.com

[Ashutosh Shukla]

Sir,

The term used under Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules 2014 is "outstanding." Put differently, it is the outstanding amount that should be greater than 100 cr and not the limit granted to a company. In your case, the outstanding loan appears to be less than 100 cr. Thus, the question of the applicability of SA per 204 of the CA 2013 on this particular ground does not arise. 

Thanks and Regards