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CS Professional · Compliance Management, Audit and Due Diligence · Secretarial Audit

Zenith Polymers Ltd, a listed company, closes its books on 31 March. The Board is finalising its report under section 134(3). Which statement correctly describes the secretarial audit report requirement under section 204?

A listed company must annex to its Board's report a secretarial audit report given by a company secretary in practice in the prescribed form, MR-3. An in-house secretary or another professional cannot substitute, and the requirement is mandatory for listed companies.

  1. AThe report must be given by a company secretary in practice and annexed with the Board's reportCorrect
  2. BThe report may be given by the company's own whole-time company secretary and filed separately
  3. CThe report must be given by a chartered accountant in practice and placed before the audit committee only
  4. DThe report is optional for a listed company unless shareholders pass a special resolution

Explanation

Section 204(1) requires every listed company and other prescribed companies to annex with the Board's report a secretarial audit report given by a company secretary in practice, in the prescribed form (MR-3). An in-house secretary or a chartered accountant does not satisfy this. The report is not optional for listed companies.

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