Annual Report 2010-2011 - Gammon India

(a) AUDIT COMMITTEE :
The Audit Committee of the Company is constituted in accordance with the provisions of Clause 49 of the Listing
Agreement with the Stock Exchanges read with Section 292A of the Companies Act, 1956.
The Audit Committee presently comprises of 4 (Four) Non-Executive Independent Directors and 1 (One) Executive
Director viz.: (1) Mr. C. C. Dayal (Chairman), (2) Mr. Atul Dayal, (3) Ms. Urvashi Saxena, (4) Mr. Naval Chaudhary and
(5) Mr. Himanshu Parikh - Executive Director. All the members of the Audit Committee are financially literate and
have accounting/related financial management expertise.
The Audit Committee meetings are held at the Registered Office of the Company and attended by invitation by the
Chief Financial Officer, Senior Vice President – Finance, representatives of the Statutory Auditors and the Internal
Auditors of the Company.
The Company Secretary acts as Secretary to the Audit Committee.
The role of audit committee as per Clause 49 of the Listing Agreement and Section 292A of the Companies Act, 1956,
includes the following:
(a) Overseeing of the Company’s financial reporting process and the disclosure of its financial information to ensure
that the financial statement is correct, sufficient and credible.
(b) Recommending to the Board the appointment and removal of statutory auditors, branch auditors and fixation of
their remuneration.
(c) Reviewing with 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 judgements by management
• Qualifications in draft audit report
• Significant adjustments arising out of audit
• The going concern assumption
• Compliance with accounting standards
• Compliance with Stock Exchanges and legal requirements concerning financial statements
• Any related party transactions i.e., transactions of the Company of material nature, with promoters or the
management, their subsidiaries or relatives etc. that may have potential conflict with the interests of the
Company at large.
• Reviewing with the management, statutory and internal auditors, internal controls and the adequacy of
internal control systems.
(d) Reviewing the quarterly and half yearly financial results.
(e) Reviewing the adequacy of internal audit functions, 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.
(f) Discussion with Internal Auditors, any significant findings and follow up thereon.
(g) Reviewing the findings of any internal investigations by the Internal Auditors into matters where there is suspected
fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the
board.
(h) Discussions with Statutory Auditors before the audit commences nature and scope of audit as well as have post
audit discussion to ascertain any areas of concern.
(i) Reviewing the Company’s financial and risk management policies.
(j) Looking into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders
(in the case of non-payment of declared dividends) and creditors, if any.
(k) Reviewing the operations, new initiatives and performance of the business divisions.
During the period under review, the Audit Committee met 4 (four) times and the dates of such meetings were:
13/05/2010, 14/08/2010, 12/11/2010 and 10/02/2011.
A NNUAL R EPORT I 2010/11
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