Statutory and Cost Auditors
Appointment, eligibility, rotation, resignation, reporting and cost-audit triggers.
Statutory and Cost Auditors
Appointment, eligibility, rotation, resignation, reporting and cost-audit triggers.
Legal map
Primary reference: Sections 139-148 and relevant rules.
The exact obligation depends on company type, transaction facts, exemptions, notifications, rules, articles, shareholder arrangements and—where relevant—SEBI or sectoral overlays.
Operating workflow
- Identify the legal trigger before executing the transaction.
- Determine approval authority, meeting/circulation route and interested-person restrictions.
- Prepare the evidence pack and draft records.
- Complete filing or disclosure within the applicable window.
- Update registers, minutes, cap table and compliance calendar.
- Retain acknowledgement and perform post-filing reconciliation.
Minimum evidence pack
- Applicable section/rule and current source copy
- Board/member/committee approval as required
- Notice, agenda note and explanatory material
- Signed agreements, declarations and supporting certificates
- Portal filing, SRN/challan and approval status
- Updated statutory register and master data reconciliation
Practical example
An auditor change requires Board/member actions, documentation of reasons and filing by the responsible parties.
Review questions
- Was the trigger identified before the action?
- Were interested directors or related parties handled correctly?
- Do approvals and filing data match the transaction documents?
- Were registers and financial records updated?
- Is there evidence of independent review?
Common failure modes
- Late awareness of a transaction
- Using an obsolete form or portal instruction
- Approvals recorded after implementation
- Mismatch between forms, minutes, registers and financial statements
- Failure to apply a listed-entity or sectoral overlay
- No evidence of dispatch, consent, quorum or signing
Practical Q&A
Is filing the form enough?
No. The underlying approval, evidence, register, financial record and portal acknowledgement should tell the same story.
Can a generic compliance calendar be used for every company?
Only as a starting point. Applicability must be tailored for company type, capital, turnover, borrowings, listing status, industry and events.
How should extensions and portal advisories be handled?
Maintain a current-circular register. Preserve the circular or advisory relied upon and record both the original statutory date and the extended operational date.