Managerial remuneration rules: fresh consent and formal applications required for enhanced pay and perquisites under revised guidelines.
Revised managerial remuneration guidelines effective 1 April 1983 require fresh consent in the Department's revised format; earlier consents to 1978/1979 guidelines do not suffice. Any proposal to increase remuneration or perquisites (including higher gratuity) for the unexpired period of an existing sanction requires a fresh application under section 310 supported by a board resolution and compliance with prescribed notice procedures. Ex gratia payments are not permissible. Part A perquisites are subject to a ceiling of Rs. 45,000 or annual salary, Income tax Rules govern valuation of company housing (subject to a 10% salary cap), and salary excludes commission for terminal benefit eligibility.

Appointment of Cost Auditors in firm's name permitted if partners are practicing cost accountants and firm has central approval.
Approval is granted for the appointment of Cost Auditors in firm's name under sub section (2) of Section 233B of the Companies Act, 1956, conditional on all partners being practicing cost accountants under the Cost and Works Accountants Act, 1959, and the firm having been constituted with previous Central Government approval under the relevant regulation; companies may propose such appointments through their board and the Institute is requested to notify practitioners.

Full cost audit disclosure required; auditors must report complete cost account details and flag nondisclosure to authorities.
Section 233B and the Cost Audit (Report) Rules require appointed cost accountants to furnish full and complete details of a company's cost accounts in the cost audit report; requests to withhold particulars are inconsistent with those Rules and should be discouraged, and cost auditors should, where necessary, note such non-disclosure specifically to the government in their reports.

Proper books of account must be maintained in indelible ink, prohibiting pencil entries to ensure records' permanence.
Companies must prepare and maintain the books of account required by section 209 in indelible ink; pencil entries do not satisfy the statutory requirement that proper books of account be kept and that records be preserved in good order for the prescribed retention period.

Cost auditor independence: cost auditors must not serve as internal auditors during the period of their cost audit.
The Department advises that because the Cost Auditor must comment on the scope and performance of internal audit under the Cost Audit Report Rules, the Cost Auditor should not act as the company's internal auditor for the same period during which the cost audit is conducted.