Write any five essential terms of reference of a valid Audit Committee, in compliance with the Regulation 18 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 20

The essential terms of reference of a valid audit committee as per Regulation 18(1) of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 for listed entity are as under: The audit committee must have minimum 3 number of Directors. At least two-thirds of the members of audit committee shall be independent directors and in case of a listed entity having outstanding SR equity shares, the audit committee shall only comprise of independent directors. All members of the audit committee shall be financially literate and at least one member shall have accounting or other related financial expertise. The chairperson must be an Independent Director and he/she shall be present at the Annual General Meeting to answer the queries of the shareholders. The company secretary must act as a secretary to audit committee. The audit committee at its discretion shall invite the finance Director or head of the finance function, head of the internal audit, representative of the statutory auditor and any other such executives to be present at the meetings of the audit committee.