TOPIC 15: QUICK REFERENCE TO “AUDIT COMMITTEE”

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Quick Reference to " Audit Committee" :-

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Legal Provision:-

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Section 177 of Companies Act, 2013.

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Rule 6 of Companies ( Meetings of Board and it's Powers ) Rules, 2014.

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Regulation 18 of SEBI ( LODR ) Regulations, 2015. ( Applicable in case of Listed Company ).
Rule 6A of Companies ( Meetings of Board and it's Powers ) Second Amendment Rules, 2015.
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Points :-

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1. The Audit Committee especially deals with Fiscal Matters and Auditors of the Company.

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2. Applicability:-
#Listed Company.
# Public Co having paid up Capital of ₹ 10 Cr or +.
# Public Company having Turnover of ₹ 100 Cr or +.
# Public Company having O/S loans , Debentures, Borrowings, Deposits of 50 Cr or +.

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3. Composition:-
Minimum 3 Directors with majority of Independent Director. ( 2/3rd shall be independent directors in case of Listed Companies as per LODR ).

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4. Meeting :-
The audit committee shall meet at least four times in a year and not more than one hundred and twenty days shall elapse/gap between two meetings. ( In case of Listed Company ).

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5. Vigil Mechanism is also a Part of Audit Committee.( Rule 7 ).

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6. Audit Company Mainly Examine the Financial Statement and Scrutiny of Various aspects wrt Finance of Company.

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7. The Audit Committee recommend for Appointment and Remuneration of Auditors of the Company.

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8. The Members of the Audit Committee should able to read and understand the Financial Statements.

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9. All related Party transactions shall require approval of Audit Committee . Audit Committee can make omnibus approval for transactions upto the value of ₹ 1 crore per transaction.

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Regards
ACA SOURAV BAGARIA