ROC CS/CWA/CA Panel for outsourcing of work of Technical Scrutiny of Balance Sheets

Circular Issued by: – Government of India, Ministry of Corporate Affairs, Office of Registrar of Companies.

Issued to: Local Chapter, ICAI/ICSI/ICWAI

Sub: - Panel for outsourcing of work of Technical Scrutiny of Balance Sheets.

This office  (ROC Office) is in process of preparing  a panel of professionals for outsourcing the work of Technical scrutiny of Balance sheets filed with this office  as per the provisions of  the Companies Act, 1956 on the following terms and conditions:-

1.  The fee payable per Balance Sheet for scrutiny of Balance Sheet and examining subsequent replies of the company will be as under:

2.  Only the professionals in whole time practice for at least continuous period of one year experience of Corporate Laws, Accounts, Accounting standards, Statutory audit of companies /Secretarial compliances certificates, maintenance and/or examination of secretarial records, secretarial audit etc. as on the date of application are eligible to apply for his name in the panel He shall also disclose a list of major assignments handled by him.

3.  The professional shall sign an agreement with the Registrar of Companies on case to case basis whenever a case is assigned to him.  A model agreement detailing the terms and conditions and task etc is enclosed as Annexure 1 to this letter.

4.  The professional shall also sign a declaration to maintain absolute integrity and secrecy in respect of any assignment under the agreement.

5. The professional shall be required to take an oath of confidentiality and breach of this condition shall make the person concerned liable for penal action under IPC, Cr.PC or any other relevant provisions besides, action for breach of agreement.

6.  Scrutiny of Balance Sheet of a company will be assigned to a professional who is neither related to the subject company or its competitors or any of its related companies, holding or subsidiary companies or any of the companies, partnership concern or other sole proprietors in which any of the Directors or their relatives are interested as Directors, shareholders, partners or sole proprietors.

7.  The professional will be supplied with a copy of the Balance Sheet and any other required document for scrutiny in the office of ROC and he will be required to carry out his work in the office of ROC during office hours.  He will deliver his report and his working papers to the authorized officer before leaving the office of ROC.

8. The professional will also help in examining/analyzing replies submitted by the company in response to the letters, notices regarding irregularities/ violations detected.

9. Work of only Technical scrutiny will be outsourced to the professionals. Subsequent sovereign functions like issue of notices, investigation and filing prosecutions will remain with the ROC and his staff.

10. The professional shall not sign or send any type of communication to the subject company.  The letters or notices shall be sent only by the ROC or his authorized officer(s).  The professional shall complete the scrutiny work and submit his report within the time prescribed by the ROC.

11. Not more than two cases at a time shall be assigned to any professional in the panel.

12. The ROC shall not be bound by the list of applicants sent by the NIRC and shall have full discretion to reject any of the application if not found suitable for the job.

13.  Inclusion of the name in the Panel shall not be a guarantee for any assignment. The ROC shall have full discretion for assignment of cases keeping into consideration the experience and profile of the professional in the panel.

14.  The panel shall be valid only for the financial year 2009-10.

You are requested to give a wider publicity to the said process and send the names applications of interested member professionals to this office at the earliest.

Yours faithfully,

Registrar of Companies,