CS Professional · Compliance Management, Audit and Due Diligence · Secretarial Audit
Veda Textiles Ltd, a listed company, is finalising its Board's report for the year. The CFO says the secretarial audit report is optional because the company has a full-time company secretary. Under section 204 of the Companies Act, 2013, which position is correct?
A listed company must annex a secretarial audit report, given by a company secretary in practice, to its Board's report under section 204(1). Having a full-time company secretary does not remove this duty, and the statutory auditor cannot substitute for the practising company secretary.
- AThe report is optional if a company secretary is employed full time
- BThe report must be given by a company secretary in practice and annexed to the Board's reportCorrect
- CThe report may be given by the statutory auditor instead
- DThe report is required only if the Audit Committee asks for it
Explanation
Section 204(1) requires every listed company to annex with its Board's report a secretarial audit report given by a company secretary in practice. An in-house company secretary does not replace this requirement. The statutory auditor is not the prescribed person for this report.
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