Companies Act, 2013

14 Remuneration of the Cost Auditor.

For the purpose of sub-section (3) of section 148,-

(a) in the case of companies which are required to constitute an audit committee-

(i) the Board shall appoint an individual, ¹[who is a cost accountant], or a firm of cost accountants in practice, as cost auditor on the recommendations of the Audit committee, which shall also recommend remuneration for such cost auditor;

(ii) the remuneration recommended by the Audit Committee under (i) shall be considered and approved by the Board of Directors and ratified subsequently by the shareholders;

(b) in the case of other companies which are not required to constitute an audit committee, the Board shall appoint an individual ¹[who is a cost accountant] or a firm of cost accountants in practice as cost auditor and the remuneration of such cost auditor shall be ratified by shareholders subsequently.

Amendments

1.Substituted by The Companies (Audit and Auditors) *Second Amendment Rules, 2018 Dated 7th May 2018

in clause (a), in sub-clause (i), for the words:-

"who is a cost accountant in practice"

the following words shall be substituted, namely :-

"who is a cost accountant"

Notes