COMPANIES (COST AUDIT REPORT) RULES, 2001 Superseded - New Rules Notified
GOVERNMENT has superseded the Cost Audit Report Rules, 2001 and notified the new Companies (Cost Audit Report) Rules, 2011.
These rules apply to every company in respect of which an audit of the cost records has been ordered by the Central Government under sub-section (1) of section 233B of the Companies Act.
Every such company has to, within ninety days of the commencement of every financial year, file an application with the Central Government seeking prior approval for appointment of the cost auditor, through electronic mode, in the prescribed form, along with the prescribed fee as per the Companies (Fees on Applications) Rules, 1999, and requisite enclosures.
Every cost auditor so appointed shall, within thirty days of receipt of letter of appointment, inform his appointment to the Central Government through electronic mode, in the prescribed form, along with the requisite enclosures.
Every cost auditor, who conducts an audit of the cost records of the company, shall submit the report along with auditor's observations and suggestions, and Annexure to the Central Government within 180 days of the closure of the Financial Year, in the prescribed form and at the same time forward a copy of such report to the company.
What happens if he does not do it? There is a maximum penalty of Rs. 5000/-, but maybe this can be imposed every day as every day there is a new contravention.
MCA NOTIFICATION [F.NO. 52/10/CAB-2010], Dated: June 3, 2011