3. The Board of directors of every listed companies and the
following classes of companies shall constitute an Audit
Committee.
All public companies with a paid up capital of Rs.10
Crores or more;
All public companies having turnover of Rs.100 Crores or
more;
All public companies, having in aggregate, outstanding
loans or borrowings or debentures or deposits exceeding
Rs.50 Crores or more.
4. Composition
The Audit Committee shall consist of a minimum of 3
directors with independent directors forming a majority.
The majority of members of Audit Committee including its
Chairperson shall be persons with ability to read and understand,
the financial statement.
5. MEETING OF THE AUDIT COMMITTEE
AT LEAST 4 TIMES IN YEAR
GAP BETWEEN 2 MEETINGS SHOULD NOT
EXCEED 4 MONTHS
QUORUM
10. Emphasis of Matter Paragraphs in the
Auditor’s Report
If the auditor considers it necessary to draw users’
attention to a matter presented or disclosed in the
financial statements that, in the auditor’s judgment, is
of such importance that it is fundamental to users’
understanding of the financial statements, the auditor
shall include an Emphasis of Matter paragraph in the
auditor’s report provide