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Sudhanshu Shekhar (Self Employed)     13 September 2012

Cost audit

Dear friends

This is query about applicability and appointment of cost auditors:

If a comapny fall under the perview of cost audit for 1st time by what time it should appoint cost audit in regard to financial year 11-12 and 12-13.

And what is procedure and penalties if any?

 



 9 Replies

RAKESH

RAKESH (Almost CA)     13 September 2012

I think its 90 days from the start of the financial year and if that has been crossed then appoint immediately and file some form to ROC. MCA Circular is attached for ur reference.


Attached File : 98521 1054611 43 mca circular appointment of cost auditor by companies 11 04 2011.pdf downloaded: 165 times
Rahul Jain

Rahul Jain (Rahul Jain & Associates. (Cost Accountants))     13 September 2012

Dear Sudhanshu,

Last date for appointing the cost auditor was 29th June 2012. 

Procedure for appintment:-

1) Pass a board resolution for appointment of cost auditor.

2) Take letter of disqualification and arm's lenght relationship from Cost Auditor.

3) After taking both the letters file the form 23 C on MCA,stating appointment of Cost Auditor.

4) If  within one month govt doesnt have any query then its deemed appointment.

5) Issue an letter of appointment to Cost Auditor for Appointment.

6) After receiving the appoitment letter Cost Auditor will file form 23 D regardding confirmation to govt.

Regarding Penalties its now :-

Period of Delay                                                                 Fee Payable with the application Form 23 C

Up to 30 Days                                                                    Two times t normal fee

 

More tha 30 & less than 60                                             Four times t normal fee

More tha 60 & less than 90                                            Six times t normal fee

More than 90 Days                                                           Nine times t normal fee

 

Normal Fee:-

Its b/w Rs 500 to 200 depending upon company to Company...

Please let me know in case of any other clarifications:-

Thanks and Regards:-

CMA Rahul Jain

E-Mail:- rahuljain @ jmsandco.in

 

 

 

 

CMA Dinesh Kumar Singh

CMA Dinesh Kumar Singh (Manager - Finance)     14 September 2012

Agree with CMA Rahul Jain.

Swati Baidya

Swati Baidya (Legal & Compliance Officer)     14 September 2012

Can you please xplain what exactly we need to mention in letter of disqualification and arm's lenght relationship from Cost Auditor.

Can you please provide any format for that?

 

Thanks & Regards

Swati Baidya


Read more at: /forum/cost-audit-220233.asp?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CaclubindiacomForum+%28caclubindia.com%3A+Forum%29#.UFLbGbKm-5I"

Rahul Jain

Rahul Jain (Rahul Jain & Associates. (Cost Accountants))     14 September 2012

Swati Baidya

Swati Baidya (Legal & Compliance Officer)     14 September 2012

Thanks Mr. Rahul.

Sudhanshu Shekhar

Sudhanshu Shekhar (Self Employed)     15 September 2012

Tnaks Mr. Rahul for your support.

But i am stil not cleared on the point that if a comapny  liable for the forst time cost audit for the FY 11-12 after MCA notifiaction (i.e. first time specific cost audit order) then when it should appoint the cost auditor.

And when the first notification came into existance for applicability of cost audit.

If the company has not appointed cost auditor as of now waht are the consequnses for that.

Cost Audit Report for 2011-12 would also have to include comparative figures
for the years 2010-11 and 2009-10 (How it can be possible in the case of the company where cost audit applicable for the first time.)

Rahul Jain

Rahul Jain (Rahul Jain & Associates. (Cost Accountants))     15 September 2012

Dear Sudhanshu,

Auditor for 2011-12 was to be appointed within 90 days of notification and for 2011-12 within 90 days of financial year i.e. 29th june 2012......

Regarding previos years figures most of them can be derived from financial statements only............. and remaining can be calculated taking sm appropriate assumptions by mgt............

Thanks ...

CMA Rahul Jain

rahuljain @ jmsandco.in

 *RENU SINGH *

*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ )     16 September 2012

really nice explanation given by Rahul Sir


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