Corporate & Secretarial Audit Services

Independent assurance to protect your business, your board, and your reputation.

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Audit as a Value-Add: Beyond the "Checkbox" Mentality

In the complex regulatory environment of India and Australia, an audit is often perceived as a necessary evil—a burden imposed by law. At CorpArray, we challenge this view. We believe that a well-executed corporate audit is a powerful diagnostic tool. It identifies hidden liabilities, improves operational efficiency, and provides directors with the "safe harbor" they need to prove they have exercised due diligence in their duties.

Whether it is the mandatory **Secretarial Audit** under Section 204 of the Indian *Companies Act 2013*, or a specialized **Compliance Due Diligence** for an Australian firm acquiring an Indian entity, our methodology is rigorous, independent, and result-oriented. This 1500-word overview details our approach to corporate assurance.

Corporate Assurance and Compliance Audit

1. Secretarial Audit (Form MR-3)

Secretarial Audit is a process to check compliance with the provisions of various laws and rules/regulations/procedures, maintenance of books, records etc. by an independent professional to ensure that the company has complied with the legal and procedural requirements and has also followed due process.

Who needs a Secretarial Audit in India?

  • Every Listed Company.
  • Every Public Company with a paid-up share capital of ₹50 Crore or more.
  • Every Public Company with a turnover of ₹250 Crore or more.
  • Every company having outstanding loans or borrowings from banks or public financial institutions of ₹100 Crore or more.

CorpArray’s practicing company secretaries provide a comprehensive **MR-3 Report**, certifying compliance across five major areas: The Companies Act, SEBI Act, FEMA, SCRA, and Depositories Act.

2. Legal and Compliance Due Diligence

In the world of M&A and Private Equity, what you don't know *can* hurt you. Our due diligence team conducts "deep dives" into target companies to identify:

  • Unrecorded Liabilities: Pending litigations, tax demands, or non-compliance with environmental or labor laws.
  • Title Defects: Issues with the ownership of intellectual property or real estate.
  • Regulatory Gaps: Missing licenses, expired registrations, or past FEMA violations that could trigger 300% penalties.

3. Internal Compliance Audit

For large proprietary companies in Australia or growing firms in India, we provide an outsourced internal audit function. We don't just find faults; we help you build better systems. Our internal audits cover:

  • Corporate Governance: Assessing the effectiveness of board committees and independent directors.
  • Related Party Transactions: Ensuring all transactions with directors or group firms are at "arm's length" and properly disclosed.
  • Data Privacy: Checking compliance with the *Privacy Act (Australia)* and the *DPDP Act (India)*.

4. Labour Law and ESG Audits

Ethics and employee welfare are now core components of corporate value. Our specialized ESG desk conducts:

  • Labour Law Audit: Verifying compliance with EPFO, ESIC, Minimum Wages, and POSH (Prevention of Sexual Harassment) laws.
  • Sustainability Audit: Assisting in the preparation of Business Responsibility and Sustainability Reports (BRSR).

Our Audit Methodology

Evidence-Based Review

We don't rely on verbal assurances. We verify every compliance claim against physical or digital records and board minutes.

Risk Categorization

Our reports categorize findings into Critical, Major, and Minor risks, allowing the board to prioritize remedial action.

Remediation Support

We don't just find the problem; we provide the solution. We help you file compounding applications or Regularization returns.

Independence

Our audit team is distinct from our secretarial team, ensuring a truly independent second-look at your compliance health.

Frequently Asked Questions

Generally, no. It is mandatory for all listed companies and certain large public companies. However, many Private Limited companies (especially those with foreign investment or bank loans over ₹100 Crore) voluntarily opt for a Secretarial Audit to ensure "bankable" compliance and investor confidence.

The audit report itself is a statement of fact. If the auditor "qualifies" the report (finds defaults), the company and its officers may face penalties under the specific laws that were breached. A qualified report must be explained in the Director's Report, which could impact the company's valuation and credit rating.

A standard due diligence for a small to medium-sized entity usually takes between **2 to 4 weeks**, depending on the quality of the company's records and the speed of their data room response.

Conclusion: Assurance for an Uncertain World

In an era of hyper-regulation, "I didn't know" is not a valid legal defense for a director. Assurance through independent audit is the only way to sleep soundly knowing your corporate vehicle is safe and compliant.

At CorpArray, we bring technical excellence, professional skepticism, and a value-add mindset to every audit assignment. We help you build a company that is not just compliant, but "investment-ready." Protect your legacy—contact our corporate audit team for a confidential health check.

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