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Tuesday, 8 September 2020

Draft Management Representation Letter for Audit


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Draft Management Representation Letter for Secretarial Audit


Date ……………….. , 20…….

……………………………………...
Company Secretaries,
………………………………..

Dear Sir / Ma’am,

This representation letter is provided in connection with your audit for the financial year ended 31st March, ………… as the Secretarial Auditor under Section 204 of the Companies Act, 2013, covering:

(i)                 The Companies Act, 2013 (the Act) and the rules made thereunder;

(ii)              Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings; and

(iii)            The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made      thereunder; and

(iv)            The Depositories Act, 2018 and the Regulations and Bye-laws framed thereunder; and

(v)               Secretarial Standards (SS-1 and SS-2) issued and notified by the Institute of Company Secretaries of India (ICSI) and SS-3, if adopted by the Company: and

(vi)            SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and

(vii)          The following regulations and guidelines prescribed under the Securities and       Exchange Board of India Act,1992 (‘SEBI Act’) to the extent applicable to Company during the year under review:

a.      The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011

b.      The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;

c.       The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018;

d.     The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014;

e.      The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;

f.        The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;

g.      The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009;

h.      The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2011  and the Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018

(viii)       Other applicable laws including labour laws and environment laws for the year ended on 31st March, 2019  and

We acknowledge our responsibility for maintaining the Secretarial records and other statutory documents in respect of the enactments referred to above and confirm, to the best of our knowledge and belief, the following representations:

Ø Company Law

1.        The Company has maintained books of accounts as required under Section 128 of the Companies Act, 2013;

2.        The Company has complied with all the provisions of the Secretarial Standards issued and notified by the Institute of Company Secretaries of India (ICSI)

3.        The Company has complied with all the provisions of Companies Act, 2013 relating to Statutory Audit/Cost Audit/Internal Audit;

4.        No request for transfer or transmission of shares have been received by the company during the year other than as recorded;

5.        Statutory Registers were kept open for public inspection during working hours on all working days;

6.        Notice of Board meetings were duly sent to all the directors;

7.        Notes and notes to agenda were duly sent to all the directors.

8.        Draft Minutes and final minutes were properly sent to all the directors.

9.        Company has not obtained any secured loan from any financial institution/banks other than those mentioned in the register of charges;

10.    Notice of Annual General Meeting has been duly sent to all the members and other persons as stated in Section 101 of the Act.

11.    No show cause notice has been received by the company under the Acts referred to above or any other laws applicable to the company.

12.    Minutes of the Board and General Meetings were entered in the minute books within thirty days from the date of the meeting;

13.    The share certificates were properly stamped, wherever required;

14.    The entries in the statutory registers were made within the prescribed time;

15.    The company has not carried out  any alteration to the Articles of Association or Memorandum of Association other than those for which necessary compliance as to alteration has been carried out and proof of the filing with ROC are available in Records;

16.    We have provided to you all relevant information and have given access to all data and records.

17.    There are no pending litigations and claims other than reported in the balance sheet by way of contingent liability.

18.    No event other than those reported to you specifically has occurred during the year under review which has a major bearing on the company’s affairs in pursuance of the laws, rules, regulations, guidelines, standards, etc. referred to above.

19.    The views of all the dissenting Directors (if any) on important matters have been captured and recorded in the minute, wherever required.

20.    The venue and time of Board meeting was finalized with the consultation of all board members.

21.    The company has its own website and has made applicable disclosure under the Act & Rules made under the Companies Act, 2013 and SEBI (LODR) Regulations, 2015.

Ø Securities Laws

1.      All Price Sensitive Information was informed to the stock exchanges from time to time.

2.      All investors complains directly received by the company are recorded on the same date of receipt.

3.      The Company has complied with provision of SEBI (LODR) Regulations, 2015.

4.      Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’).


Ø Labour Laws:

1.      All the premises and establishments have been registered with the appropriate authorities.

2.      The Company has not employed any Child labour/Bonded labour in any of its establishments.

3.      The company is ensuring the compliance of PF/ESI and other social security measures to the contract employees. One of the responsible officers of the company carry out the survey regarding the compliance of this.


Environmental Laws:

1.      The Company is not discharging the contaminated water at the public drains/rivers. The company has efficient water treatment plants at its factory premises.

2.      The Company has been disposing the hazardous waste as per applicable rules.

3.      We are attaching herewith the list of various applicable laws other than the laws listed above.

Other Applicable Laws

There are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines based on the review of the compliance reports of Company Secretary / Chief Financial Officer / Whole-time Director taken on record by the Board of Directors of the Company.


For …………………….. Limited



Company Secretary / Director
M. No. / DIN


Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition.

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