Dear friends
Ministry of Corporate Affairs, Govt. of India issued orders F.No.52/26/Cab-2010 dated 2/5/2011 and3/5/2011directing 14 industries(Bulk Drugs,Formulations,Fertilisers,Sugar, industrial Alcohol,Electricity Industry,petroleum Industry,Telecommunications,Cement,Tyres & Tubes,Steel Plates,Steel Tubes and Pipes, Paper, Insecticides) which are required to maintain Cost Accounting Records under Section 209(1)(d) of the Companies Act 1956 to fpllow revised procedure for appointment of Cost Auditor w.e.f. F.Y.2011-12 and forward Cost Audit Report to the Central Govt. as prescribed u/s 233B of the Companies Act 1956.
These orders are applicable on all companies wherein the aggregatevalue of the turnover made by the company from sale or supply of all products or activities during the immediately preceding financial year exceeds twenty/hundred crores of rupees, or wherein the company`s equity or debt securities are listed, shall get its cost accounting records audited by a cost auditor.
If a company contravenes any provisions of these orders,the company and every officer thereof who is in default shall be punishable as provided undersub-section(2) of section 642 read with Section 233B(11) of the Companies Act 1956.
I have put this on record to inform the management of such companies to avoid unnecessary legal wrangles.
CMA S.S.Mann FCMA