in a Dynamic Environment - Domain-b

Annual Report 2008-09III.Audit Committee(i)(ii)(iii)(iv)The Audit Committee of the Company is constituted in line with the provisions of Clause 49 of theListing Agreements with the Stock Exchanges read with Section 292A of the Companies Act, 1956.The terms of reference of the Audit Committee are broadly as under:Overview of the Company’s financial reporting process and the disclosure of its financial informationto ensure that the financial statements reflect a true and fair position and that sufficient andcredible information is disclosed.Recommending the appointment and removal of external auditors, fixation of audit fee and alsoapproval for payment for any other services.Discussion with the external auditors before the audit commences, of the nature and scope of auditas well as post-audit discussion to ascertain any area of concern.Reviewing the financial statements and draft audit report, including the quarterly/half-yearly financialinformation.Reviewing with the management the annual financial statements before submission to the Board,focusing primarily on: any changes in accounting policies and practices; major accounting entries based on exercise of judgment by management; qualifications in draft audit report; significant adjustments arising out of audit; the going concern assumption; compliance with accounting standards; compliance with stock exchange and legal requirements concerning financial statements; any related party transactions as per Accounting Standard 18.Reviewing the Company’s financial and risk management policies.Disclosure of contingent liabilities.Reviewing with the management, external and internal auditors, the adequacy of internal controlsystems.Reviewing the adequacy of internal audit function, including the audit charter, the structure of theinternal audit department, approval of the audit plan and its execution, staffing and seniority of theofficial heading the department, reporting structure, coverage and frequency of internal audit.Discussion with internal auditors of any significant findings and follow-up thereon.Reviewing the findings of any internal investigations by the internal auditors into matters wherethere is suspected fraud or irregularity or a failure of internal control systems of a material natureand reporting the matter to the Board.Looking into the reasons for substantial defaults in payments to the depositors, debenture holders,shareholders (in case of non-payment of declared dividends) and creditors.Reviewing compliances as regards the Company’s Whistle Blower Policy.The Audit Committee Meetings are usually held at the Corporate Office of the Company and are normallyattended by the Managing Director, Executive Director & Chief Financial Officer, other Executive Directors,Vice President (Finance), representatives of the Statutory Auditors and representatives of the InternalAuditors. The Operations Heads are invited to the meetings, as required. The Company Secretary acts asthe Secretary of the Audit Committee.The previous Annual General Meeting of the Company was held on July 1, 2008 and was attended byMr. Aman Mehta, Chairman of the Audit Committee.88