Applicability

As per section 204(1) of Companies Act, 2013 read with rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the following companies shall annex with its Board’s report made in terms of Section 134(3), a Secretarial audit report by a Company Secretary in practice in Form No. MR-3.:

• Every listed company (includes Private Company whose debentures and warrants are listed);
• Every public company having a paid-up share capital of rupees Fifty crores or more; or
• Every public company having a turnover of rupees Two Hundred Fifty crores or more.

Only a member of the Institute of Company Secretaries of India holding certificate of practice (company secretary in practice) can conduct Secretarial Audit and furnish the Secretarial Audit Report to the company. [Section 204(1) of Companies Act, 2013]