Preliminary Notice for non-compliance u/s 148 of Companies Act, 2013 - Non- Appointment of Cost Auditor for FY 2016-17

[satish gupta]

Dear Professional Colleagues,

MCA has issued notice in below format to those companies who has not appointed Cost Auditor while cost audit is applicable. 

52/21/CAB/2020

Government of India

Ministry of Corporate Affairs

(Cost Audit Branch)

***

2nd Floor, B-1 Wing,

Pt. Deendayal Antyodaya Bhawan,

CGO Complex, New Delhi-110003

Dated the 2nd of December 2021

To

xxxxxx

Sub: - Preliminary Notice for non-compliance u/s 148 of Companies Act, 2013 - Non- Appointment of Cost Auditor for FY 2016-17-reg.

It has been noted from the details filed by your company in Form AOC-4/ AOC-4 (XBRL) filed for FY 2015-16, that the annual aggregate turnover of the company for the goods covered under maintenance of cost records under Companies (cost records and audit) Rules, 2014 is Rs. xxxxx and the total turnover of the company is Rs. xxxxx. Accordingly, your company is meeting the prescribed criteria for appointment of cost auditor and conducting cost audit for the FY 2016-17.

2.       It may be noted that appointment of Cost Auditor for conducting the cost audit and filing of e-form CRA-2 i.e. “Form of intimation of appointment of cost auditor by the company to Central Government” is mandatory under Section 148 of the Companies Act, 2013 read with Companies (cost records and audit) Rules, 2014 as amended from time to time. Non-compliance of the above provisions shall attract penal provisions against the company and its officers in default under Section 148(8) of the Act and Rules made thereunder.

3.       In view of the above, you are requested to explain the reasons for non-appointment of Cost Auditor / non-filing of e-form CRA-2 for FY 2016-17, within twenty one days from the date of issue of this letter, through e-mail only at cabmonitoringappt2016 at the rate mca.gov.in . The reply shall be furnished only in the prescribed format enclosed herewith.

 

-sd/-

Sumit Sachdeva

Deputy Director (Cost)

Response to the preliminary notice for non-appointment of Cost Auditor for FY 2016-17

 

Note: Attention is drawn to provisions of Section 448 read with Section 447 of Companies Act, 2013.

Thanks and Regards

Satish Gupta (FCMA, CS, LLB, M.Com)

Practicing Cost Accountant

Contact: 9827670006