Practical Compliance Checklist

 

Practical Compliance Checklist

1. Board Composition:

   • Ensure the Board has the required number of directors (3 for public companies, 2 for private).

   • Confirm that independent directors are appointed where necessary.

2. Financial Statements and Reporting:

   • Directors’ Report must be comprehensive, covering financials, CSR, and corporate governance.

   • Financial statements should be prepared according to Indian GAAP or Ind AS and audited by an external auditor.

3. Audit Committee:

   • Appoint an Audit Committee with the required composition.

   • Review financial statements, risk management, and audit findings regularly.

4. Loans to Directors:

   • Ensure no loans are provided to directors unless required by the business and in compliance with Section 185.

5. CSR Compliance:

   • Companies meeting the thresholds should create a CSR Committee and ensure they spend at least 2% of net profits on eligible activities.

6. Secretarial Audit:

   • For large or listed companies, ensure a secretarial audit is conducted annually.