Beeta Ltd., where you are the Company Secretary, has got listed in BSE and NSE recently. The company has not constituted an audit committee of the board yet. Advise the company about requirement and constitution of audit

As per section 177 of the Companies Act, 2013 read with rule 6 and 7 of the Companies (Meetings of Board and its Powers) Rules, 2014, the audit committee is required to be constituted for the following class of companies: Every listed public company; or the Public Companies having paid up share capital of ten crore rupees or more; or the Public Companies having turnover of one hundred crore rupees or more; or the Public Companies which have, in aggregate, outstanding loans, debentures and deposits, exceeding 50 crore rupees or above. Composition of Audit Committee The Audit Committee shall be constituted with a minimum number of three directors with independent directors forming a majority. Majority of members of Audit Committee including its Chairperson shall be persons with ability to read and understand, the financial statement. The above mentioned advise may be company management.