Appointment of Cost Auditor by Companies

Ministry of Corporate Affairs vide General Circular No. 36/2012 dated 6th November 2012, clarified some of the issues relating to e-form Nos 23C and 23D with respect to death of existing cost auditor, resignation or change of cost auditor and additional fee thereof etc. It clarifies the following issues:

  1. In case of death of existing cost auditor, companies are allowed to file fresh e-form 23C, without any additional fee, within 90 days of the date of death.
  2. In case of change of cost auditor for reasons other than death of the existing cost auditor, companies are required to file fresh e-form 23C with applicable fee & additional fee clearly specifying the reasons of change.
  3. If there is error in filing the e-form 23C or 23D due to typographical errors or other mistakes, there is no provision in MCA21 system, which may allow such correction. The circular cautioned members to be careful while filing e-forms 23C or 23D. In rare case, if still any error or mistake is observed, it should be brought to the notice of MCA well before approval, enabling it to return the said form for re-submission. Else, the companies and cost auditors are required to file the fresh e-forms and pay applicable fee and additional fee.

Cost Audit Order dated 6th November 2012

Ministry of Corporate Affairs vide its Cost Audit Order No. 52/26/CAB-2010 dated 6th November 2012 superseded Cost Audit Orders dated 2nd May 2011, 3rd May 2011, 30th June 2011 and 24th January 2012 and directed all companies covered in Cost Accounting Records (Industry Specific) Rules 2011 and Companies (Cost Accounting Records) Rules 2011 are required to get the cost audit done under this cost audit order for the products or activities Groups given in Table-I and Table-2 respectively, in respect of each of its financial year commencing on or after the 1st day of January 2013, audited by a cost auditor.

Source- ICWAI

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