New Delhi, June 16 -- India's audit watchdog has called for greater coordination between audit committees and auditors ofcompanies in a bid to strengthen corporate governance and improve the reliability of financial reporting.

In a guidance published on its website, the National Financial Reporting Authority (NFRA) has said that audit committees, which are typically led by independent directors, need to have deeper interactions with companies' statutory auditors for better understanding of future tax savings, profitability and liabilities.

To be sure, NFRA's guidance is addressed to all companies. Entities under its oversight include listed and large unlisted companies, insurance and banking companies and electricity utilities.

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