Atul Ltd 38 Annual Report 2023-24 3.1 Audit Committee 3.1.1 Role a) Approving: i) appointment of the Chief Financial Officer ii) transactions with related parties and subsequent modifications thereof b) Conducting: i) pre-audit discussions with the Auditors regarding the nature and scope of the audit and post-audit discussion to ascertain any areas of concern ii) valuation of undertakings or assets, wherever necessary c) Formulating: i) code of conduct and related matters ii) scope, functioning, periodicity and methodology for conducting the internal audit in consultation with the Internal Auditor d) Reviewing: i) adequacy of the internal audit function, 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 ii) compliance reports of all applicable laws as well as steps taken to rectify instances of non-compliance periodically iii) compliance with the provisions of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, at least once in a financial year and verify that the systems for internal control are adequate and are operating effectively iv) financial reporting process and the disclosure of financial information to ensure that the Financial Statements are correct, credible and sufficient v) periodically with the Auditors the internal control systems, and the scope of the audit, including the observations of the Auditors and the Financial Statements before submission to the Board vi) reasons for substantial defaults, if any, in the payment to the depositors, the debenture holders, the members (in case of non-payment of declared dividends) and creditors vii) significant transactions and arrangements entered into by the unlisted subsidiary companies viii) the annual Financial Statements and Auditor’s Report with the Management before submission to the Board for approval with particular reference to: • any change in accounting policies and practices • compliance with accounting standards • compliance with the stock exchanges and legal requirements concerning the Financial Statements • disclosure of any related party transactions • going concern assumption • major accounting entries involving estimates based on the exercise of judgement by the Management • matters required to be included in the Directors’ Responsibility Statement for the Directors’ Report • qualifications in the draft Audit Report • significant adjustments made in the Financial Statements arising out of audit findings ix) the Auditors’ independence, performance and effectiveness of the audit process x) the Financial Statements, in particular, investments made by unlisted subsidiary companies xi) the following information mandatorily: • appointment, removal and terms of remuneration of the Chief Internal Auditor • Internal Audit Reports relating to weaknesses in the internal control systems
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