Legal Question in Banking Law in India

We have received a Show Cause Notice from ROC under Section 233B(7) of the Companies Act, 1956 regarding filing of Cost Audit Report with Central Government for the financial year ended on 31.03.2012, 31.03.2013, 31.03.2014 and 31.03.2015.

Below are relevant facts.

For Financial Year 2011 � 2012 (31.03.2012)

Form 23C � Intimation of Appointment of Cost Auditor ----- Filed

Form 23D � Intimation by Cost Auditor to Central Government ----- Not Filed

I-XBRL � Filing of Cost Audit Report with Central Government ----- Filed

For Financial Year 2012 � 2013 (31.03.2013)

Form 23C � Intimation of Appointment of Cost Auditor ----- Not Filed

Form 23D � Intimation by Cost Auditor to Central Government ----- Filed

I-XBRL � Filing of Cost Audit Report with Central Government ----- Not Filed

For Financial Year 2013 � 2014 (31.03.2014)

Form 23C � Intimation of Appointment of Cost Auditor ----- Filed

Form 23D � Intimation by Cost Auditor to Central Government ----- Filed

I-XBRL � Filing of Cost Audit Report with Central Government ----- Not Filed

For Financial Year 2014 � 2015 (31.03.2015)

Form CAR � 2 � Intimation of Appointment of Cost Auditor ----- Not Filed

Form CAR � 4 � Filing of Cost Audit Report with Central Government ----- Not Filed

Now what should I do in this case.

How should I proceed for compounding the offence or if I get the Report from Cost Auditor in back date then is it possible to pray the ROC for allowing us to file this Report as it was inadvertently left out at cost.

Kindly guide with procedure and legality.

Thanks


Asked on 6/20/16, 11:33 pm

2 Answers from Attorneys

1) Under Rule 8 of the Cost Audit (Report) Rules, 2001, Cost Auditor is subjected to penalty of Rs. 5,000/- in case of default.

2) ...Provided that in any proceedings against a person i n respect of an offence under this section consisting of a failure to take reasonable steps to secure compliance by the company with the requirements of

this section, it shall be a defence to prove that a competent and reliable person was charged with the

duty of seeking that those requirements were complied with and was in a position to discharge that duty: ...

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Answered on 6/21/16, 12:05 am
Fca Prashant Chavan Expert Edge LLP

21.06.2016

Dear Sir / Madam,

You should engage a local Chartered Accountant or Company Secretary to sort out this matter.

Regards.

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Answered on 6/21/16, 2:09 am


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