The Audit Committee of the Board has been re-constituted in compliance with Clause 52 of the SME Equity Listing Agreement.
Audit Committee was formed originally vide Resolution passed in the meeting of the Board of Directors dated May 15, 2012 and it was last re-constituted vide Board resolution dated September 10, 2014.The re-constituted Audit Committee comprises following members:
|Name of the Director||Status in Committee||Nature of Directorship|
|Mr. Harsh Mehadia||Chairman||Non-Executive-Independent Director|
|Mrs. Dipti Sharma||Member||Non-Executive-Independent Director|
|Mr. Vinod Garg||Member||Managing Director|
The Company Secretary of the Company shall act as a Secretary to the Committee. The Chairman of the Committee shall attend the Annual General Meeting of the Company to furnish clarifications to the shareholders in any matter relating to accounts.
The terms of reference of Audit Committee complies with requirements of both clause 52 of the SME listing agreement and section 177 of the Companies Act 2013. The scope and function of the Committee and its terms of reference shall include the following:
- Tenure The Committee shall continue to be in function as a committee of the Board until otherwise resolved by the Board, to carry out the functions of the Audit Committee as approved by the Board.
- Meetings of the Committee:The Committee shall meet at least four times in a year and not more than four months shall elapse between any two meetings of the Committee. The quorum for the meeting shall be either two members or one third of the members of the committee, whichever is higher but there shall be presence of minimum two Independent members at each meeting.
- Role and Powers: The Role of Audit Committee together with its powers shall be as under:
- Overseeing the company’s financial reporting process and the disclosure of its financial information to ensure that the financial statements are correct, sufficient and credible;
- Recommending to the Board, the appointment, re-appointment and, if required, the replacement or removal of the statutory auditor and the fixation of audit fees;
- Approving payment to statutory auditors for any other services rendered by the statutory auditors;
- Approving initial or any subsequent modification of transactions of the Company with related parties;
- Scrutinizing inter-corporate loans and investments
- Valuation of undertakings or assets of the Company, wherever it is necessary;
- Monitoring the end use of funds raised through public offers and related matters
- Reviewing, with the management, the annual financial statements before submission to the Board for approval, with particular reference to:
- Matters required to be included in the Director’s Responsibility Statement to be included in the Board’s report in terms of clause (c) of sub-section (3) of Section 134 of the Companies Act, 2013;
- Changes, if any, in accounting policies and practices along with reasons for the same;
- Major accounting entries involving estimates based on the exercise of judgment by management;
- Significant adjustments made in the financial statements arising out of audit findings;
- Compliance with listing and other legal requirements relating to financial statements;
- Disclosure of any related party transactions;
- Qualifications in the draft audit report.
- Reviewing, with the management, the quarterly financial statements before submission to the board for approval;
- Reviewing, with the management, the statement of uses / application of funds raised through an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilized for purposes other than those stated in the offer document/prospectus/notice and the report submitted by the monitoring agency monitoring the utilization of proceeds of a public or rights issue, and making appropriate recommendations to the Board to take up steps in this matter;
- Reviewing, with the management, performance of statutory and internal auditors, and adequacy of the internal control systems;
- Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit;
- Discussing with the internal auditors any significant findings and follow up there on;
- Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board;
- Discussing with the statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern;
- Looking into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of nonpayment of declared dividends) and creditors;
- Reviewing the functioning of the Vigil Mechanism/Whistle Blower mechanism, in case the same is existing;
- Reviewing and monitoring the auditor’s independence and performance, and effectiveness of audit process;
- Approving the appointment of the Chief Financial Officer (i.e. the whole time finance director or any other person heading the finance function) after assessing the qualifications, experience and background, etc., of the candidate; and
- Carrying out any other function as is mentioned in the terms of reference of the Audit Committee in the Companies Act 2013 or contained in the equity listing agreements as and when amended from time to time. Further, the Audit Committee shall mandatorily review the following:
- Management discussion and analysis of financial condition and results of operations;
- Statement of significant related party transactions (as defined by the Audit Committee), submitted by management;
- Management letters / letters of internal control weaknesses issued by the statutory auditors;
- Internal audit reports relating to internal control weaknesses; and
- The appointment, removal and terms of remuneration of the chief internal auditor.
Meeting of the Committee shall be called by at least seven days notice in advance or shorter notice if all the members agree in writing or through electronic mode.