We had an appointment of Mr. Babu Lal Maharwal as a Cost Auditor from 2011 to 2017. Many times we did not receive cost audit report within the time limit from Mr. Babu Lal Maharwal. In this regards, we are facing many penalties for submission of Cost Audit Report. At present, for financial year 2014-2015 the Cost Audit Report is being litigated in court, due to which we are not paying the work done by him.
Now we have been appointed Mr. Vinay Sharma as a Cost Auditor for financial year 2017-2018, Mr. Vinay Sharma wants to NOC from Mr. Babu Lal Maharwal for submission of Cost Audit Report Financial Year 2017-18, but the NOC not being provided by Mr. Babu Lal Maharwal.
Under the circumstance, what steps should we take to submit the Cost Audit Report to the financial year 2017-2018?
Dear Priyanka Jangid,
First of all you should not mentioned cost auditor name in public forum.
Second thing Your company should have been checked cost auditor profile thoroughly and most importantly company should have been asked to cost auditor how he will done cost audit (method) etc.
but unfortunately companies just focus on less fee.
Again I am surprised how your new cost auditor is not able to get NOC from old cost auditor.
May be company is still focusing on fee rather than good cost auditor.
Regards
CMA Satish Kumar Gupta
Practicing Cost Accountant, Indore
CAclubindia
