Explain in brief: Financially Literate.

This terminology is often used in the context of membership of an Audit Committee under the Companies Act, 2013 and the SEBI (LODR) Regulations, 2015. The term "financially literate" means the ability to read and understand basic financial statements i.e. balance sheet, profit and loss account, and statement of cash flows. A member will be considered to have accounting or related financial management expertise if he or she possesses experience in finance or accounting, or requisite professional certification in accounting, or any other comparable experience or background which results in the individual's financial sophistication, including being or having been a chief executive officer, chief financial officer, or other senior officer with financial oversight responsibilities.