MCA has started issuing notices to the companies which did not comply with section 148 of Companies Act 2013 relating to cost records and cost audit.
An extract of such notice is given hereunder
Sub: – Notice for Non- compliance with Sec 148 of the Companies Act, 2013
This is with reference to the Form AOC-4 filed by your company for the Financial Year ended on 3/31/2015 (MM/DD/YYYY), wherein it is stated that the annual turnover of the company from the goods having CETA headings, as prescribed under Companies (Cost Records and Audit) Rules, 2014 is Rs._———— and the total annual turnover of the company is Rs.——+++-
- It may be noted that as per the abovementioned information, conducting cost audit and appointment of Cost Auditor for the same is mandatory in case of your company for the financial year 2015-16 as per Section 148 read with the Sub-rule (1) of Rule 6 of The Companies (Cost Records and Audit) Rules, 2014. Non-compliance of the above provisions will attract penal provisions against the company and its officers in default under sub-section 8 of section 148 of the Companies Act, 2013 and Rules made under section 148 of the Companies Act, 2013.
- In view of the above, you are directed to explain the reasons for non-appointment of cost auditor, within fifteen days from the issue of the date of this notice, through speed post only. The reply shall be furnished only in the prescribed proforma enclosed herewith.