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Investor Presentaiton

ANNUAL REPORT 2018-2019 62 Condition No. Title Compliance Status (Put in the appropriate column) Remarks Complied Not Complied (if any) Condition No. Complied Not Complied Title Compliance Status (Put in the appropriate column) Complied Complied Not Complied Not Complied ANNUAL REPORT 2018-2019 Remarks (if any) 3(3)(b) 3(3)(c) The MD or CEO and CFO shall also certify that there are, to the best of knowledge and belief, no transactions entered into by the company during the year which are fraudulent illegal or violation of the code of conduct for the company's Board or its member; The certification of the MD or CEO and CFO shall be disclosed in the Annual Report. 5(3)(b) 4. Board of Director's Committee. For ensuring good governance in the company, the Board shall have at least following sub-committees: 5(3)(c) 4(i) Audit Committee; V 4(ii) Nomination and Remuneration Committee Formation of NRC is under process 5(4)(a) 5. Audit Committee 5(1) Responsibility to the Board of Directors 5(4)(b) 5(1)(a) The company shall have an Audit Committee as a sub- committee of the Board; 5(1)(b) 5(1)(c) 5(2)(a) 5(2)(b) 5(5) 5(5)(a) 5(5)(b) 5(5)(c) 5(5)(d) 5(2)(c) 5(2)(d) The Audit Committee shall assist the Board of Directors in ensuring that the financial statements reflect true and fair view of the state of affairs of the company and in ensuring a good monitoring system within the business; The Audit Committee shall be responsible to the Board; the duties of the Audit Committee shall be clearly set forth in writing. The Audit Committee shall be composed of at least 3 (three) members; The Board shall appoint members of the audit committee who shall be non-executive directors of the company excepting Chairperson of the Board and shall include at least 1 (one) independent director; All members of the audit committee should be "financially literate" and at least I (one) member shall have accounting or related financial management background and 10(ten) years of such experience; When the term of service of any Committee members expires or there is any circumstance causing any Committee member to be unable to hold office before expiration of the term of service, thus making the number of the Committee members to be lower than the prescribed number of 3 (three) persons, the Board shall appoint the new Committee member to fill up the vacancy immediately or not later than 1 (one) month from the date of vacancy in the Committee to ensure continuity of the performance of work of the Audit Committee; The company secretary shall act as the secretary of the Committee. 5(2)(e) 5(2)(f) The quorum of the Audit Committee meeting shall not constitute without at least 1 (one) independent director. 5(3)(a) The Board of Directors shall select 1 (one) member of the Audit Committee to be Chairperson of the Audit Committee, who shall be an Independent director; 5(5)(e) 5(5)(f) In the absence of the Chairperson of the audit committee, the remaining members may elect one of themselves as Chairperson for that particular meeting, in that case there shall be no problem of constituting a quorum as required under condition No.5(4)(b) and the reason of absence of the regular chairperson shall be duly recorded in the minutes. Chairperson of the Audit Committee shall remain present in the Annual General Meeting (AGM): The Audit Committee shall conduct at least its four meetings in a financial year: Provided that any emergency meeting in addition to regular meeting may be convened at the request of any one of the members of the Committee; The quorum of the meeting of the Audit Committee shall be constituted in presence of either two members or two third of the members of the Audit Committee, whichever is higher, where presence of an independent director is a must. Role of Audit Committee The Audit Committee shall: Will attend in upcoming AGM. Oversee the financial reporting process; Monitor choice of accounting policies and principles; Monitor Internal Audit and Compliance process to ensure that it is adequately resourced, including approval of the Internal Audit and Compliance plan and review of the Internal Audit and Compliance Report; Oversee hiring and performance of external auditors. Hold meeting with the external or statutory auditors for review of the annual financial statements before submission to the Board for approval or adoption; Review along with the management, the annual financial statements before submission to the board for approval; 5.5(g) 5.5(h) Review along with the management, the quarterly and half yearly financial statements before submission to the board for approval; Review the adequacy of internal audit function; 5(5)(i) Review the Management's Discussion and Analysis before disclosing in the Annual Report; Review statement of all related party transactions submitted by the management; Review Management Letters or Letter of Internal Control weakness issued by statutory auditors. 5(5)(1) Oversee the determination of audit fees based on scope and magnitude, level of expertise deployed and time required for effective audit and evaluate the performance of external auditors; √ 5(5)(j) 5(5)(k) 63
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