independent director and audit committee

Not required to constitute Audit committee

thanks sandeep

Not required.

But if it attracts any one or all of the criteria (i.e. paid up capital or turnover or borrowing) as specified in act should constitute audit committee and should appoint 1/3rd of the total number of directors as Independent Director.

For Example in the financial year 2016 - 2017 borrowing was 60 Crore but in subsequent financial year 2017 - 2017 the borrowings was 40 Crore In such case also company should comply with the provisions of the CA 2013 for 3 consecutive financial year from 2017-2018.

After 3 consecutive financial year if it doesn't attracts the criteria then Company need not to comply.

Subsequent financial year 2017- 2018*