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Do we need to appoint cost auditor

Gargi Ranade (CS) (619 Points)

03 March 2012

Dear All.

We are an EOU and under the purview of Cost Accounting Records Rules 2011. However chapter code of our company was brought under the purview of Cost Audit through CAR order on 24th January 2012.

CARR 2011 specifically mentioned that Company should obtain compliance certificate either by employee cost accountant or from Practicing Cost accountant.

To get this compliance certificate from Cost Accountant do we need to appoint cost auditor though Board resolution and do we need to comply with the ROC formality of form filing 23C?

I have tried to search this but could not find the relevant information. Please help me to resolve my query.

Regards,

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4 Replies

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 03 March 2012

HI Gargi,

You need not appoint a Cost Auditor.

Mere Compliance Certificate from a praticing CS will do.

Regards,

prateek

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Shubhankar Limaye (B.Com.) (174 Points)
Replied 03 March 2012

For FY 2011-12 you need not appoint cost auditor but you will have to file the compliance report signed by a COST ACCOUNTANT either in practice or in whole time employment of the company. The 24th Jan order applies from financial year 2012-13 onwards, so you need to appoint Cost Auditor for the year 2012-13 and onwards. Hope this helps.

virender thakur (Chartered Accountancy) (23 Points)
Replied 25 March 2012

any body have call from obc

CMA. Rakesh Kataria (Practising Cost Accountant) (536 Points)
Replied 08 June 2012

As per Cost Accounting Recod Rules 2011, you need to take Complaince Replort from Cost Accountant, if you any employee who is Cost Accoutant and is memeber of Institute of Cost Accountant of India and paid memebrship fees, then that employee can sign the Complaince report.

If you do not have CMA working in your organisation then you can contact with Practicing Cost Accountant.

If you do not know any practicing Cost Accountant then pl. send me mail , i will provide you the same.