Applicability of Secretarial Audit

[Aanchal Chopra]

Dear Members

Can anyone please provide me reference to particular Case Law that depicts that the Secretarial audit on a Private Company (Which is a subsidiary of Public Company) will only be applicable to that private company if it itself satisfies the criteria species u/s 204 

Regards

CS Aanchal Chopra

[Mabu Basha]

Hi

Please refer rule 9 as under:

9 Secretarial Audit Report.

(1) For the purposes of sub-section (1) of section 204, the other class of companies shall be as under-

(a) Every public company having a paid-up share capital of fifty crore rupees or more; or

(b) Every public company having a turnover of two hundred fifty crore rupees or more; ¹[or]

¹[(c) every company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more.]

(2) The format of the Secretarial Audit Report shall be in Form No. MR.3.

¹[Explanation :- For the purposes of this sub-rule, it is hereby clarified that the paid up share capital, turnover, or outstanding loans or borrowings as the case may be, existing on the last date of latest audited financial statement shall be taken into account.]

Amendment

^1. Insert by Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2020 Dated 03rd January, 2020 Amendment effective from on or after 1st April, 2020

As per the above rule even private companies are covered for Secretarial Audit, where the outstanding loans are more than 100 Crores

Regards

CS Mabu Basha

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Best Regards
CS Mabu Basha

9848271085

[karan vij]

https://taxguru.in/company-law/deemed-public-company-subsidiary-of-public-limited-companies.html#:~:text=As%20per%20provision%20of%20'Deemed,considered%20as%20Deemed%20Public%20Company.&text=The%20private%20company%20becomes%20deemed,became%20subsidiary%20of%20public%20Company.

Read this article of deemed public company

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Thanks & Regards

Karan Vij

Email id: cska...@gmail.com

Mobile No: +91 8076218320

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