Page 138 - InterloopAnnualReport2020

REPORT OF THE AUDIT COMMITTEE

The Audit Committee comprises of one Non-Executive Director and two “financially literate” Independent Directors. The
Chairman of the Committee is an Independent Director. Five meetings of the Audit Committee were held during the Financial
Year 2019-20. The Audit Committee has concluded its annual review of the conduct and operations of the Company for the year
ended June 30, 2020, and reports that:
• The Audit Committee has reviewed and approved the Annual Financial and Operational results of the Company and
concluded that they are fair, balanced and understandable and that they also provided the necessary information for the
stakeholders to assess the business model, strategy, financial position and performance of the Company.

• The Audit Committee has vouched that appropriate accounting policies have been consistently applied. All core and
other applicable International Financial Reporting Standards were followed in the preparation of financial statements of
the Company on a going concern basis for the financial year ended June 30, 2020, which represent fairly the state of
affairs, results of operations, cash flows and changes in equity of the Company; Accounting estimates are based on
reasonable and prudent judgment. Proper and adequate accounting records have been maintained by the Company in
accordance with Companies Act, 2017 and the external reporting is consistent with management processes and adequate
for shareholder needs.

• The CEO and the CFO have endorsed the financial statements of the Company. They acknowledge their responsibility
for a true and fair presentation of the Company’s financial statements, the accuracy of reporting and compliance with
regulations and applicable accounting standards.
• The Audit Committee developed and the Board approved the “Related Party Transactions and Transfer Pricing Policy” to
regulate transactions between the Company and its Related Parties as per requirements of Section 208 of Companies
Act, 2017, the Listed Companies (Code of Corporate Governance) Regulations 2019 and Companies (Related Party
Transactions and Maintenance of Related Records) Regulations, 2018. This Policy is established to protect the interest of
the company and its stakeholders ensuring proper reporting, approval and disclosure in accordance with the applicable
legislation.

• The Internal Audit Function has reviewed all the related party transactions as per approved “Related Party Transactions
and Transfer Pricing Policy” and applicable laws. Relying on Internal Audit work and representations of the management,
the Audit Committee satisfied itself about the appropriate presentation of Related Parties Transactions’ in the financial
statements and recommended to the BOD for their approval.
• The Audit Committee has ascertained based on Internal and External Audit work and representations of the management
that the internal control systems including financial and operational controls, Accounting Systems for timely and appropriate
recording of purchases and sales, receipts and payments, assets and liabilities and the reporting structure are adequate
and effective. Further, the Company’s system of internal controls is appropriately designed to safeguard the assets of the
company.

• The Company has issued a Statement of Compliance with the Code of Corporate Governance which has also been
reviewed by the external auditors of the Company.

• The Board had carried out the Annual Performance Evaluation of its Committees. The results of the evaluation carried out
were found to be satisfactory.

• The Audit Committee ensured that statutory and regulatory obligations and requirements of best practices of governance
have been met.

INTERNAL AUDIT
• The Board of Directors have set up an independent Internal Audit Function of the Company. Internal Audit Function regularly
pursues monitoring and maintenance of financial controls, whereas the Audit Committee satisfies itself through regular
reviews of Internal and External Audit Reports, about the effectiveness of the Internal Controls framework.

• The Head of Internal Audit is a Chartered Accountant supported by a team of professionals who are suitably qualified and
experienced as per requirements of regulation 23 of Listed Companies (Code of Corporate Governance) Regulations,
2019.

136