TO APPOINT OR REAPPOINT A COST AUDITOR (SECTION 233B)

1. Upon receipt of the order of the Central Government under section 233b(1) DETERMINE THE NAME OF THE cost Auditor at a Board Meting convened after giving notice to all the directors of the company as per section 286 and pass a resolution sanctioning the proposal for making the application to the Central Government to appoint a cost auditor.

2. Obtain a written certificate from the cost auditor to the effect that the appointment, if made, will be in accordance with the provisions of section 224(1B).

3. Obtain the approval of the Central Government for appointing the cost Auditor as determined in item 1 above, by making an application to it in Form No.23C.

4. Get the application signed by any director, managing or whole time director, manager or the secretary of your company.

5. Send along with the application a receipted treasury challan or demand draft evidencing the payment of requisite fees, prescribed under the companies (Fees on Applications) Rules, 1968.

6. If the application fee is paid b way of treasury challan, then pay the requisite fee of minimum Rs.50/- and maximum Rs.500/- as the case may be, in cash and as prescribed by the Companies (Fees on Applications) Rules, 1968, by way of treasury challan prepared in triplicate and paid into any of the specified branches of the Punjab Bank for credit under the head of account, “Major Head 104—Other General Economic Services—Regulation of Joint Stock Companies—Fees realized by the Central Government on application made to it under the Companies Act, 1956”. Two copies of the treasury challan will be given back to the depositor and the original copy of the treasury challan should be attached to the application made to the Central Government mentioned in item 3.

7. If the application fee is paid by way of demand draft, then draw the demand draft in favour of the Pay and Accounts Officer, Department of Company Affairs, New Delhi, and payable at any bank located in New Delhi, and the said demand draft should be attached to the application made to the Central government mentioned in item 3.

8. Deliver to the concerned Registrar of Companies a copy of the application together with a copy of all the documents attached to it.

9. Hold another Board Meeting after giving notice to all the directors of the company as per section 286 to pass Resolution and appoint the Cost Auditor.

10. Give intimation to the Auditor about the appointment.

11. Deliver a certified true copy of the Central Government’s approval to the concerned Registrar of Companies.

12. See the cost auditor so appointed / reappointed is not the statutory auditor of the company as appointed under section 224(3) and he should also not be a person falling under sub-sections (3) and (4) of section 226.

13. This appointment of Cost Auditor applied only where the Central Government has prescribed maintenance of cost records under section 209(1)(d) and direct under section 233-B that the audit of the cost accounts be conducted.