In continuation of the General Circular No. 15/2011 dated 11th
April 2011, Ministry hereby makes the following changes:
- The company shall, within thirty days of obtaining prior approval from the central government (form 23C) issue formal letter of appointment to the cost auditor, as approved by the Board.
- The cost auditor shall, within thirty days of the date of formal letter of appointment issued by the company, inform the Central Government in the prescribed form 23D.
- In case of change of cost auditor caused by the death of existing cost auditor, companies are allowed to file fresh e-form 23C, without any additional fee, within 90 days of the date of death.
- In case of change of cost auditor for reasons other than death of the existing cost auditor, companies are required to file fresh e-form 23C with applicable fee & additional fee, clearly specifying the reasons of change.
- Ensure compliance of section 224(1-B) of the Companies Act 1956, required changes are being made in the MCA21 system to restrict the number of cost audit approvals to the limits specified in section 224(1-B) through a counter on the membership number of the sole proprietor or partner of the firm.
The modifications contained in this circular shall be effective from the financial year commencing on or after the 1st day of January, 2013.
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