Appointment of Cost Auditor

[Kavita Malyahan]

Kindly guide us regarding appointment of Cost Auditor as per Companies Act 2013, which Form required to be filed. 

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 Thanks & Regards'

  

  CS Kavita

  ACS No. 29486

  Mobile no. +91 9540666415

  email id:-  kav...@gmail.com

[VIMAL SHARMA Compliance]

23C to be filled by the Company with in 90 days from the closure of financial year and after approval of 23D will be filled by Cost Auditor

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[Kavita Malyahan]

Form 23 C is required under Companies Act, 1956, is it same for Companies Act 2013? 

[Deepesh Nayak]

Thanks sir,

I think no clarification till date for appointment of Cost Auditor as per new act and we have to appoint him as per old act and follow the old rules and orders.

Thanking you,

*CS Deepesh Kumar Nayak*
 Company Secretary

 *Mob. 097134-80215*
*csdeepe...@gmail.com*

On Wed, Jun 4, 2014 at 12:56 PM, VIMAL SHARMA Compliance <corp.comp...@gmail.com> wrote:

[Deepesh Nayak]

Yes, if you see the mapping of form and MCA portal, there is no substitute form of Form 23C. Even i seen yesterday the updated version of form 23C at MCA Portal. so we have to only this form right now.

other views are solicited.

Deepesh

Thanking you,

*CS Deepesh Kumar Nayak*
 Company Secretary

 *Mob. 097134-80215*
*csdeepe...@gmail.com*

[VIMAL SHARMA Compliance]

Yes Mr. Nayak and old forms are availale

[Kavita Malyahan]

Thanks for the prompt reply.

[Vinod Sunder R]

Section 148 of the new Act has been notified (this means it automatically repeals Sec 233B of the old act - as per section wise comparison issued by ministry). Hence, I dont think we will need to appoint Cost Auditors this year till the rules are notified. Also, there is no circular from MCA that says that Cost Audit Orders issued under Sec 233B of erstwhile Act shall be deemed to be orders issued under Sec 148 till notification of new cost audit rules. 

What do you feel ?

Vinod

[ramela rangasamy]

Dear Friends,

Though Section 148 of the new Act has been notified, we cannot appoint Cost Auditors this year through the existing old form till the rules are notified.There is no circular from MCA conveying that that Cost Audit Orders issued under Sec 233B of erstwhile Act shall be applicable and shall be considered as orders issued under Sec 148.

Filling the appointment through the existing form is meaningless, it speaks only about the CA 1956, which is no more.

 

Yours truly,
R.Ramela
Company Secretary in Practice
A-6, Aaryaa Harmony Apartment, A.S.Colony,
Police Kandasamy Street, Olympus,
Ramanathapuram,
Coimbatore 641 045.
Cell No.9442617180
Phone No.0422 – 2317180
e-mail: ram...@rrcompanysecretaries.com

[Deepesh Nayak]

Friends, if we appoint cost auditor in board meeting dated 05.05.2014, then what would be due date for filing form 23C???

We have appointed as per old act, rules and order.

Deepesh

Thanking you,

*CS Deepesh Kumar Nayak*
 Company Secretary

 *Mob. 097134-80215*
*csdeepe...@gmail.com*

[VIMAL SHARMA Compliance]

Due date is with in 90 days from closure of financial year.

Other view solicited

[Deepesh Nayak]

Today Filed form 23C with normal fees of Rs. 20000/-.

Deepesh

[sandeep jain]

I do not think that that there is need of filing form 23C

Regards

CS Sandeep Jain
Company Secretary
24 Ka 1, Jyoti Nagar,Jaipur-302004
Telephone : 0141-3111777, 3263017
Fax : 0141-2740924
Mobile : 09828050920
alternate email : sandee...@gmail.com

Get your own FREE website, FREE domain & FREE mobile app with Company email.

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[Deepesh Nayak]

Why sandeep ji.??

[periwal...@gmail.com]

Even if the rules are not notified. yet what is the harm in appointing cost auditor.

 

Pity is that even we professionals dont understand the value of other professionals. All the companies having high turnovers or doing good shall voluntarily get this cost audit conducted. I have get the auditor appointed in my company seeing the need for same.

 

And Form to be filed for same if Form 23C itself. had there been intention of MCA to not get cost audit conducted, it would have removed Form 23C from the portal.

[VIMAL SHARMA Compliance]

Do agree with Vandana Periwal

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[Vinod Sunder R]

Well, if you look at it from that perspective, you can very well appoint a professional and pay him. 

My argument is against filing the forms with MCA.. if the law does not stipulate it, I need not file it.  You can appoint a cost auditor if it benefits your company and pay him a suitable remuneration. 

(to think of it - that is what certain companies are doing with CS - though not mandatory (as on date), many private company still employ CS and pay them)

As to form 23C still being on the MCA website, this could be for those companies that have still not filed forms for Cost Audit appointments for previous financial years - because, if form 23C for 2013-14 is not filed, then cost audit report cannot be uploaded. 

[ramela rangasamy]

Dear Friends,

Query no.1

Earlier we have filed form no.23C as per Section 233B(2) of CA 1956, which speaks about previous approval of central Government. The said Form was filed earlier for obtaining approval of central government.

Now under CA 2013, there is no such provision under Section 148. i.e. approval of Central Govern

Why we have to file Form no.23C (which was there under CA 1956, which is no more) for appointment of Cost Auditor for the financial year 2014-15?

Query No.2.

Where under Section 148, it is mentioned that the appointment cost auditor should be done and to be filed within 90 days?

As per my knowledge it is mentioned as 180 days in the draft - Companies (Cost records and cost audit)Rules, 2013, which is not yet notified.

Section 148(2) read with Rule 14 of Co(Appointement and Qualifcation of Directors) Rules, 2014 speaks about appointment of by Board of Directors on such remuneration as may be determined by members.

The above are my views, Other views are also solicited.

Yours truly,
R.Ramela
Company Secretary in Practice
A-6, Aaryaa Harmony Apartment, A.S.Colony,
Police Kandasamy Street, Olympus,
Ramanathapuram,
Coimbatore 641 045.
Cell No.9442617180
Phone No.0422 – 2317180
e-mail: ram...@rrcompanysecretaries.com

[Manju]

On Wednesday, June 4, 2014 12:46:32 PM UTC+5:30, kavita tanwer wrote:

Kindly guide us regarding appointment of Cost Auditor as per Companies Act 2013, which Form required to be filed. 

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 Thanks & Regards'

agreed with views of R Ramela

[KHUSBU KHEMKA]

Dear Friend

Can any1 provide me the board resolution format for the appointment of cost auditor.

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Regards

ACS KHUSBU KHEMKA

[periwal...@gmail.com]

Dear all,

 

Any update about whether Cost audit needs to be done or not?

 

And above all whether 23C is to be filed or not. I have raised ticket in MCA also. 5 days have been passed but there is no reply yet.

[KHUSBU KHEMKA]

I will go with the filing....If it charges additional amount further, it is better to file at the moment to avoid further additional fees.

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[VIMAL SHARMA Compliance]

Now a days they don't reply for tickets. I have also raised a ticket few days back but no reply received till date.

On Tue, Jun 17, 2014 at 5:57 PM, <periwal...@gmail.com> wrote:

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[Ritu Jhunjhunwala]

Will be done as per old act
Till the time new notification does not come

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[VANDANA PERIWAL]

no conclusion can be drawn unless any sort of clarification is there from MCA.

 

and yes I am also going to file the same as to penalty will be very high.

 

Thanks and Regards
CS Vandana Periwal

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[Manoj Singh Bisht]

Answer to this question : Can you tell me why we used to file Form 23C ?

Now, I trust query stands resolved.

Thanx

Manoj

[Manoj Singh Bisht]

Dear All,

Why are you filing Form 23C for cost auditor's appointment for conducting cost audit for the year 2014-15 !

Form 23C was required to be filed for approval of central govt as per sub-section (2) of Section 233B of the Act.

The condition of Govt. approval is not prescribed under the new Companies Act, 2013.

It is based on shareholder approval regime now (please compare section 148 of the Companies Act, 2013 and rule 14 of the Companies (Audit and Auditors) Rules, 2014 with Section 233B of the old Companies Act, 1956 and rules made under the old act)

Since approval of Central Government is not required and Rule 14 also does not stipulate form to be filed for intimation of appointment of Cost Auditor, I am of the view that Form 23C is not at all required to be filed.

If any form was required to be filed for the said appointment, the same would have been stipulated in the Companies (Audit and Auditors) Rules, 2014 . (Please note: Form with respect of appointment of Statutory Auditor are given in the said rules but no form is given with respect to appointment of Cost Auditor)

For appointment of cost auditor -relevant Rule is Rule 14 of Companies (Audit and Auditors) Rules, 2014. Rules for cost audit are not issued but rule for appointment of cost auditor (i.e. Rule 14 of Companies (Audit and Auditors) Rules, 2014) is issued under Section 148(3) of the Companies Act, 2013.

So please appoint cost auditor subject to shareholders approval and obtain shareholders approval in general meeting (AGM or EGM as the case may be). No need to file any form. 

Pls. revert, in case any clarification is required.

Thanks

Manoj

[VIMAL SHARMA Compliance]

Sir,

Section talks about only remuneration to be approved by Shareholders means still BOD has power to appoint him.

Need further clarification

[Chirag Bagadia]

Dear Manoj

If you read Section 148 (3) it says that cost audit shall be conducted by a cost accountant in practice who shall be appointed by Board on such remuneration as may be determined by Members in such manner as may be prescribed

Which means shareholder has right to only ratify the remuneration proposed by the board and appointment needs to done by Board Only

Hence we must file the Form 23C only

Regards

Chirag Bagadia

CS & Legal

Radio City 91.1FM

 

Thanks and Regards
Chirag Bagadia
ACS, LLB, Mcom

[gautam goyal]

Why Fees is coming to be Rs. 20000 instead of Rs. 2000??

Any notification or circular on revised fees..

[ankita shah]

it is as per authorised share capital of the company they have increase the fees .wait till 26 th june as circular is expected and can save 20k of the co. as this form is no more required to be filled 

[pooja joshi]

On Fri, Jun 20, 2014 at 3:29 PM, gautam goyal <gaut...@gmail.com> wrote:

[pooja joshi]

can anybody provide me in the manner in which the cost auditor remuneration has to be put up in general meeting. 

[Chirag Bagadia]

Dear Pooja

As desired, PFA AGM notice

AGM Notice

 

To ratify the appointment of Cost Auditors for the year 2014-15 by passing the following resolution as an Ordinary Resolution:

 

RESOLVED THAT pursuant to the provisions of Section 148 and all other applicable provisions of the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment thereof, for the time being in force), the reappointment of M/s ………………. as Cost Auditors to audit the cost records maintained by the Company for the Financial Year  2014-15 on a remuneration of Rs………/- (Rupees ……………… only) plus Service Tax as applicable and out of pocket expense, be and is hereby ratified.”

 

 

EXPLANATORY STATEMENT AS PER SECTION 102 OF COMPANIES  ACT   2013

 

Ratification of appointment of Cost Auditor:

 

A proposal for appointment of Cost Auditor for 2014-15 was recommended by the Audit Committee to the Board. It was proposed to re-appoint M/s ………………. as Cost Auditors. A certificate dated ………..2014 issued by M/s ………………… regarding his eligibility for appointment as Cost Auditors will be available for inspection at the registered office of the Company during 11.00 A.M to 1.00 P.M and shall also available at the meeting.

 

As per Rule 14 of Companies (Audit and Auditors) Rules 2014, the appointment and remuneration payable to the Cost Auditors is to be ratified by the Shareholders. Hence this resolution is put for the consideration of the shareholders.

 

None of the Directors and Key Managerial personnel or relatives of them are interested in the above resolution

 

The Board of Directors recommends the resolution for your approval.

Regards

Chirag Bagadia

CS & Legal

Radio City 91.1FM

[VANDANA PERIWAL]

Yes Mr. Gautam, it is as per Companies (Registration Offices and Fees) rules, 2014. Do check.

Thanks and Regards
CS Vandana Periwal

On Fri, Jun 20, 2014 at 3:29 PM, gautam goyal <gaut...@gmail.com> wrote:

[pooja joshi]

Mr. Chirag

Thank you so much for providing the details. But may i know why explanatory statement is needed if its a ordinary resolution. 

Regards,

Pooja 

[VIMAL SHARMA Compliance]

Explanatory statement is required to be attached for every business other than 4 ordinary business, whether OR or SR

[sonam jain]

Dear Friends

Kindly send me the board resolution for the appointment of cost auditor for the year 2014-2015.

Also, please find as attached the BR drafted by us.

The Chairman informed the Board that .............. have given their consent to act as cost auditors for the financial year 2014-15 and laid on the table the certificate received from .....................

It was accordingly

“RESOLVED THAT pursuant to section 148 of the Companies Act, 2013 and subject to the approval of Central Government, ......................... be and hereby appointed as cost auditors of the Company to conduct audit of .........................by the Company for the year ending on 31^st March, 2015 at an expense of Rs. 45,000 (Rupees Forty Five Thousand) plus out-of-pocket expenses.

RESOLVED FURTHER THAT any of the Directors of the Company be and is hereby authorized to submit the necessary application in necessary e-form  to the Central Government and to do all the acts as may be necessary”

Now, I want to ask you this, if on the same date of appointment if I put the same amont of remuneration which has been paid to the auditor since four years , is it valid?

Or after the appointment of auditor ssay as on 20.06.2014, should we pass another resolution in EOGM to decide the remuneration even if the amount is same since 4 years.

[sonam jain]

[Manoj Singh Bisht]

But no form is required to be filed.

[Manoj Singh Bisht]

redrafting concerned para for ease of reference. -  " Board to appoint cost auditor and remuneration for the cost auditor to be approved by the shareholders in general meeting."

On Fri, Jun 20, 2014 at 1:00 PM, Manoj Singh Bisht <csmano...@gmail.com> wrote:

Dear Chirag,

yes remuneration is subject to approval of shareholders and not appointment.

Form 23C is not required to be filed. Central Govt. approval is not required.

Regards

Manoj

On Fri, Jun 20, 2014 at 12:55 PM, Chirag Bagadia <bagadia...@gmail.com> wrote:

[Manoj Singh Bisht]

Dear Chirag,

yes remuneration is subject to approval of shareholders and not appointment.

Form 23C is not required to be filed. Central Govt. approval is not required.

Regards

Manoj

On Fri, Jun 20, 2014 at 12:55 PM, Chirag Bagadia <bagadia...@gmail.com> wrote:

[SUDHIER KUMAR GUPTHA]

Content found on CMA Institute's Portal.

http://www.icmai.in/upload/Institute/Communique-President-18062014.pdf

Dear Professional Colleagues, 

 

Thank you for your patience on the Companies (Cost Accounting Records) Rules, 2013 and the Companies (Cost Audit Report) Rules, 2013, that are yet to be notified under the Companies Act 2013. We have been in constant touch with the 

MCA officials for the last few months. After the new government took charge in May, we had personal interactions with the MCA officials and they are in process of publishing the cost rules. 

 

We expect the cost rules to be released in the next few days. We are hopeful that with the responses of our professional fraternity at large and the continuous liaison with the Ministry, the final cost rules will be in the interest of the Indian 

Economy, Industry, Society at large as well as the profession

On Fri, Jun 20, 2014 at 12:55 PM, Chirag Bagadia <bagadia...@gmail.com> wrote:

[Miss Shanu Bhandari]

Dear Professionals,

Section 148(3)

Explanation.—For the purposes of this sub-section, the expression “cost auditing

standards” mean such standards as are issued by the Institute of Cost and Works Accountants of India, constituted under the Cost and Works Accountants Act, 1959, with the approval of the Central Government

It says with the approval of Central Government.

On Wed, Jun 4, 2014 at 1:37 PM, 'ramela rangasamy' via CSMysore <csmy...@googlegroups.com> wrote:

Dear Friends,

Though Section 148 of the new Act has been notified, we cannot appoint Cost Auditors this year through the existing old form till the rules are notified.There is no circular from MCA conveying that that Cost Audit Orders issued under Sec 233B of erstwhile Act shall be applicable and shall be considered as orders issued under Sec 148.

Filling the appointment through the existing form is meaningless, it speaks only about the CA 1956, which is no more.

 

Yours truly,
R.Ramela
Company Secretary in Practice
A-6, Aaryaa Harmony Apartment, A.S.Colony,
Police Kandasamy Street, Olympus,
Ramanathapuram,
Coimbatore 641 045.
Cell No.9442617180
Phone No.0422 – 2317180
e-mail: ram...@rrcompanysecretaries.com

On Wednesday, 4 June 2014 1:28 PM, Vinod Sunder R <raman...@gmail.com> wrote:

Section 148 of the new Act has been notified (this means it automatically repeals Sec 233B of the old act - as per section wise comparison issued by ministry). Hence, I dont think we will need to appoint Cost Auditors this year till the rules are notified. Also, there is no circular from MCA that says that Cost Audit Orders issued under Sec 233B of erstwhile Act shall be deemed to be orders issued under Sec 148 till notification of new cost audit rules. 

What do you feel ?

Vinod

On Wednesday, 4 June 2014 13:10:13 UTC+5:30, kavita tanwer wrote:

Thanks for the prompt reply.

On Wed, Jun 4, 2014 at 1:03 PM, VIMAL SHARMA Compliance <corp.comp...@gmail.com> wrote:

Yes Mr. Nayak and old forms are availale

On Wed, Jun 4, 2014 at 1:01 PM, Deepesh Nayak <csdeepe...@gmail.com> wrote:

Thanks sir,

I think no clarification till date for appointment of Cost Auditor as per new act and we have to appoint him as per old act and follow the old rules and orders.

Thanking you,

*CS Deepesh Kumar Nayak*
 Company Secretary

 *Mob. 097134-80215*
*csdeepe...@gmail.com*

On Wed, Jun 4, 2014 at 12:56 PM, VIMAL SHARMA Compliance <corp.comp...@gmail.com> wrote:

23C to be filled by the Company with in 90 days from the closure of financial year and after approval of 23D will be filled by Cost Auditor

[Miss Shanu Bhandari]

Do we still not need to file Form 23 C

[Manoj Singh Bisht]

it talks about cost auditing standards.

all standards whether accounting / cost auditing/secretarial are subject to central govt. approval.