MCA- Default by the Cost Auditors in filing Form 23D against the corresponding Form 23C

General Circular No. 35/2012, Dated the November 6, 2012


The President,

Institute of Cost Accountants of India,

12, Sudder Street,


Subject: Default by the Cost Auditors in filing Form 23D against the corresponding Form 23C


Ministry of Corporate Affairs vide General Circular No. 15/2011 dated April 11, 2011 had prescribed a revised procedure to be followed for appointment of cost auditors. As oer the revised procedure, each company is required to e-file its application with the Central Government in the prescribed Form 23C within 90 days from the date of commencement of each financial year, which shall be approved by mCA within 30 days.

2. Upon appproval by MCA, the company is required to issue formal letter of appointment to the cost auditor, who shall, within 30 days of the receipt of such letter of appointment, inform the Central Government in the prescribed Form 23D alongwith a copy of such appointment.

3. It is, however, observed that since April 1, 2011, through all the appointment applications made by the companies concerned in Form 23C have already been approved by the MCA, a large number of cost auditors have defaulted in filing the required Form 23D within the stipulated time. In many cases, the default period is even more than a year. this has been viewed seriously by the Ministry.

4. Keeping in view the initial operation of the revised procedure, all the defaulting cost auditors are requested to file their required Form 23D that have already become due till adte, by December 16, 2012 positively. In case of any further default, name of such defaulting members shall be  sent to the Institute on December 17, 2012 intimating the Institute to initiate Disciplinary of Cost and Works Accountants Act, 1959.

5. In cases where the company concerned, after approval of Form 23C, has filed to issue the formal letter of appointment to the cost auditor, they shall do so within 15 days of the issue of this circular enabling the cost auditor to file Form 23D within the extended time indicated above. in case of non-compliance, the Company and every officer thereof who is found to be in default shall be punishable as per provisions of the Companies Act, 1956.

6. The Institute is requested to bring this for the information of all concerned.


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