India first to make secretarial audit imperative for some companies

India is set to become the first country in the world to make non-financial audit compulsory for companies belonging to a certain class.

This system of secretarial audit will help guarantee that all listed companies and companies with shareholder’s capital of at least Rs. 50 Crores or public companies with revenues of Rs. 250 Crores and above stay in line with the Companies Act of 2013.

The measure is looked upon as a part of the government’s initiative to inspire confidence in foreign investors by improving governance and transparency.

The government has implemented a fine ranging from Rs. 1 lakh to Rs. 5 lakhs in cases of non-compliance.

The recently issued secretarial standards also makes it companies to send a seven day notice for board meetings to ensure there are no last minute changes in agenda. The new provisions also require a meeting every quarter.

(Image credit: Indiatimes)