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    Audit Committee: An Audit Committee Is One of The Major Charge of Overseeing Financial Reporting and

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    An audit committee is a board committee responsible for overseeing financial reporting and disclosure. Under the Companies Act of 1956, public companies with paid-up capital of ₹5 crores or more were required to have an audit committee. The Companies Act of 2013 expanded this to include listed companies, public companies with ₹10 crore paid-up capital or ₹100 crore turnover, and public companies with outstanding loans over ₹50 crores. Audit committees must consist of at least 3 directors, 2/3 of whom must be non-executive directors.

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    Audit Committee: An Audit Committee Is One of The Major Charge of Overseeing Financial Reporting and

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    sahana
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    An audit committee is a board committee responsible for overseeing financial reporting and disclosure. Under the Companies Act of 1956, public companies with paid-up capital of ₹5 crores or more were required to have an audit committee. The Companies Act of 2013 expanded this to include listed companies, public companies with ₹10 crore paid-up capital or ₹100 crore turnover, and public companies with outstanding loans over ₹50 crores. Audit committees must consist of at least 3 directors, 2/3 of whom must be non-executive directors.

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    An audit committee is a board committee responsible for overseeing financial reporting and disclosure. Under the Companies Act of 1956, public companies with paid-up capital of ₹5 crores or more were required to have an audit committee. The Companies Act of 2013 expanded this to include listed companies, public companies with ₹10 crore paid-up capital or ₹100 crore turnover, and public companies with outstanding loans over ₹50 crores. Audit committees must consist of at least 3 directors, 2/3 of whom must be non-executive directors.

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    4 views4 pages

    Audit Committee: An Audit Committee Is One of The Major Charge of Overseeing Financial Reporting and

    Uploaded by

    sahana
    An audit committee is a board committee responsible for overseeing financial reporting and disclosure. Under the Companies Act of 1956, public companies with paid-up capital of ₹5 crores or more were required to have an audit committee. The Companies Act of 2013 expanded this to include listed companies, public companies with ₹10 crore paid-up capital or ₹100 crore turnover, and public companies with outstanding loans over ₹50 crores. Audit committees must consist of at least 3 directors, 2/3 of whom must be non-executive directors.

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    AUDIT COMMITTEE

    An audit committee is one of the major


    operating committees of a company that is in
    charge of overseeing ‘financial reporting and
    disclosure’.
    DEFINITION AS PER COMPANIES ACT
    1956
    As per Sec 292(A)(1) of Companies Act 1956 , every public
    company ( whether listed or unlisted) having a paid up capital
    of not less than 5 crore rupees shall constitute a committee of
    the Board as ‘ Audit Committee’.
    It meant constitution of audit committee of the Board is
    mandatory for a company having a paid up share capital of
    ₹5 crores or more.
    NEW PROVISIONS AS PER COMPANIES
    ACT 2013
    Companies Act 2013 , Rule 6 of the Companies, says that
    the following companies have to compulsorily constitute an
    Audit Committee :
    a) Every listed company;
    b) All public companies with a paid up capital of ₹10 crore;
    c) All public companies having a turnover of ₹100 crore or
    more;
    d) All public companies having in aggregate outstanding loans
    or borrowings or debentures or deposits exceeding 50 crores
    or more.
    CONSTITUTION OF AUDIT COMMITTEE
    As per Companies Act 1956, Audit committee shall, consist of
    not less than three directors and such number of other
    directors as the Board may determine of which two thirds of
    the total number of members shall be directors , other than
    managing or whole time directors, the audit committee, thus,
    shall stand comprised of only non-executive directors.

    The annual report of the company shall disclose the


    composition of the audit committee.

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