Cost audit and compliance report

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CS M.Kurtrala Nathan (Querist)
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03 January 2013 Whether we can pass circular resolution for approval of cost audit and compliance report or it should be compulsory to be placed before the meeting for approval?

Ajay Mishra

Ajay Mishra (Expert)
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03 January 2013 Hi

Generally the audited result is approved by the Board in Board meeting not by circulation, but on the other hand, the Companies Act, 1956 not restrict to pass such resolution by circulation.

CMA Narendra Mundra

CMA Narendra Mundra (Expert)
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05 January 2013 I agree with Mr. Mishra

CS M.Kurtrala Nathan

CS M.Kurtrala Nathan (Querist)
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05 January 2013 But what about Cost accounting record & Cost audit report RULES 2011, in that rule it specifies that the CAR and CCR should be approved in Board meeting only.It also mentions penalties for violation of the rules !!!!

CMA Narendra Mundra

CMA Narendra Mundra (Expert)
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05 January 2013 Following is the extract from CARR:

"The Annexure prescribed with the compliance report, as certified by the cost accountant, shall be approved by the Board of Directors before submitting the same to the Central Government by the company"

Its not saying that it should be approved in Board Meeting, its simply saying shall be approved by Board of Directors.

Hope this resolve your querry.

CS M.Kurtrala Nathan

CS M.Kurtrala Nathan (Querist)
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11 January 2013 But there is a question in the XBRL file of CAR and CCR ,"Date of board of directors' meeting in which annexure to cost audit report was approved and Date of board of directors' meeting in which annexure to compliance report was approved ???
What date will you enter in that column????

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