Appointment of Cost Auditor
Ministry has vide Circular dated 11/04/2011 has reviewed the existing procedure followed by the Companies for seeking prior approval of the Central Government for appointment of Cost Auditor under section 233B(2) of the Companies Act, 1956. In supersession of any earlier order / circular issued in this regard, Ministry has framed the revised procedure.
Further, vide order dated 03/05/2011 prescribed that the Companies which fulfill the following conditions shall have to get their cost accounts audited by Cost Auditor and to appoint him new procedure is to be adopted:-
1.To any Company to which any of the following rules apply:-
(a) Cost Accounting Records (Cement) Rules, 1997
(b) Cost Accounting Records (Tyres & Tubes) Rules, 1967
(c) Cost Accounting Records (Steel Plant) Rules, 1990
(d) Cost Accounting Records (Steel Tubes and Pipes) Rules, 1984
(e) Cost Accounting Records (Paper) Rules, 1975
(f) Cost Accounting Records (Insecticides) Rules, 1993
And
2. Having Turnover exceeding Rs. 100 Crores
or
2. Listed Entity or in the process of Listing.
To apply above order both of the above conditions must have to be apply.
The effective date of above order read with the circular is 1st April, 2011 onwards.
Detailed Circular and order attached for your ready reference.
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