AD-FREE CAclubindia and Daily Mobile Updates. Subscribe Now!

MCA Circular -Appointment of Cost Auditor by Companies

SANTOSH SHAH (Company Secretary) (754 Points)

20 April 2011

Hello All

Please find attached MCA Circular on Appointment of Cost Auditor by Companies dt 11.04.2011.

regards

Santosh Shah

Reply
Follow
Share

3 Replies

SANTOSH SHAH (Company Secretary) (754 Points)
Replied 20 April 2011

Originally posted by : SANTOSH SHAH
	Hello All Please find attached MCA Circular on Appointment of Cost Auditor by Companies dt 11.04.2011. regards Santosh Shah

Hello All,

Please find attached MCA Circular ( Revised Procedure) on Appointment of Cost Auditor -11.04.2011.

Summary of Circular:-

1. Appointment of Cost Auditor will not require prior approval from Central Government.

2. Appointment of Cost Auditor -First Point of Reference is Audit Committee ( AC)

3. Companies where Audit Committee (AC) not required by Law, Board of Directors (BOD) be the first point of reference.

4. AC / BOD to ensure such appointment is free from disqualifications U/S 233B(5) & 224 (3) & (4) of Companies Act.

5. Compliance from Cost Auditor & AC , on non-violation of limits U/S 224 (1-B).

6. AC / BOD to obtain Certificate from Cost Auditor certifying its Independence.

7. Company to File Form 23C by 90 days of start of financial year along with:-

a. B oard Resolution for Appointment of Cost Auditor

b. Certificate from Cost Auditor -Compliance U/s 224 (1-B)

8. E-form approved by Central Govt (CG) by 30 days. If not approved to be resubmitted as per details requested.

9. Company to issue formal letter of appointment to Cost Auditor approved by Board within 30 days of approval of E-Form.

10. Cost Auditor to file E-Form ( Yet to be Developed by MCA) to MCA for such appointment.

11. Disclosure by Companies in Annual Report about Cost Auditor, Due & Actual date of filing of Cost Audit Report.

12. Contravention of provisions of this Circular:-

a. Company :- Punishable U/S 642(2) / 209 (5) & (7) / 233B(11) of Companies Act 1956.

b. Cost Auditor :- Fine extended to Rs.5000/-

regards

Santosh Shah

Jaideep (Service) (1368 Points)
Replied 20 April 2011

Thanks for Sahring ...

(Guest)

THANKS FOR SHARING

Recent Topics

More recent discussions | Post

Related Threads

Popular Discussion

Start a New Discussion

Meet our PRO Members

Tanuj Kumar Sharma

PRO MEMBER

SHASHIKANT Amin

PRO MEMBER

Harshit Talati

PRO MEMBER

Amit Goyal

PRO MEMBER

Titus

PRO MEMBER

Subscribe to CAclubIndia Pro

Trending Online Classes

AI Advantage: Mastering ITR 2025 Compliance

Manoj Lamba

Enroll Now

05 July 2025
Certification Course on Practical Filing of Income Tax Returns

CA Pratibha Goyal

Enroll Now

09 July 2025
GST Demands and Recoveries: Navigating Through the Tides

CA Nipun Arora

Enroll Now

17 July 2025

view all classess

Subscribe to the latest topics :

Search Forum:

Forum Home

Popular Threads

MCA Circular -Appointment of Cost Auditor by Companies

3 Replies

Online classes for CA CS CMA. Professional courses for GST, Tally, Others & Books

Leave a reply

Recent Topics

Related Threads

Popular Discussion

Meet our PRO Members

Trending Online Classes

Subscribe to the latest topics :

Search Forum: