Appointment of Cost Auditor by Companies

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.... of India, 12, Sudder Street, Kolkata - 700016 Subjects:- Appointment of Cost Auditor by Companies Sir, Ministry 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, the revised pr....

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....ection 226 of the Companies Act, 1956. (d) While a cost auditor shall have prime responsibility to ensure that he does not violate the limits specified under section 224(1B) of the Companies Act, 1956, the Audit Committee shall also be responsible for such compliance by the cost auditor. (e) The Audit Committee shall obtain a certificate from the cost auditor certifying his/its independence and ....

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....application. (h) If within thirty days from the date of filing such application, the Central Government directs the company to re-submit the said application with such additional information or explanation, as may be specified in that direction, the period of thirty days for deemed approval of the Central Government shall be counted from the date of re-submission by the company. (i) After expiry....

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....oard of Directors". 2. If a company contravenes any provisions of this circular, the company and every officer thereof who is in default, including the persons referred to in sub-section (6) of section 209 of the Act, shall be punishable as provided under sub-section (2) of section 642 read with sub-sections (5) and (7) of section 209 and sub-section (11) of section 233B of Companies Act, 1956. ....