Section 177 and Reg 18 of LODR Audit Committee meeting
Section: Section 177 of the Companies Act, 2013
Regulation: Regulation 18 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR)
Meeting: Audit Committee Meeting
Applicability: Applicable to all listed companies.
Timeline: The Audit Committee should meet at least four times a year, and the maximum time gap between two meetings should not exceed 120 days.
Exemption: No specific exemption is provided under Section 177 and Regulation 18 of LODR for holding an Audit Committee Meeting.
Penalty: If a company fails to comply with the provisions of Section 177 and Regulation 18 of LODR, it will be liable to pay a penalty as imposed by SEBI from time to time.
Reporting Authority: The Audit Committee reports to the Board of Directors of the Company.
Other Details:
The primary purpose of holding an Audit Committee meeting is to oversee the financial reporting process, internal controls, audit process, and risk management of the company.
The Audit Committee also reviews the financial statements of the company and ensures compliance with legal and regulatory requirements.
The members of the Audit Committee should be independent directors, and at least one member should have expertise in accounting or finance.
The Audit Committee should also meet separately with the statutory auditors and the internal auditors to discuss any matters that the Committee or these auditors believe should be discussed privately.
The minutes of the Audit Committee meeting should be recorded and maintained as per the provisions of the Companies Act, 2013 and LODR.
