Withdrawal of Cost Audit Orders:-
Even though there is no provision in the Companies Act, 1956 for withdrawal of cost audit order,
the withdrawal of Cost Audit is considered in case of permanent closure or sale or merger/
amalgamation of production activities for the product under reference. These exemptions are based on logic that approval for withdrawal can be accorded by the executive since the cost audit orders
are also issued by the executive.
Following documents are required to be furnished along with application for withdrawal:
• Printed or attested true copy of complete Annual Report containing balance sheet and profit
and loss account for the year for which exemption is being sought along with copies of the
same pertaining to preceding two years (or immediate last three years).
• An affidavit containing full facts of capacity utilization, turnover and financial status of the
company such as sick or not, duly signed by two Directors of the company and authenticated
by a Notary Public.
• Documentary evidences substantiating closure/winding-up, sale, merger, amalgamation, etc.
e.g. Court’s order, surrender of licenses, sale of plant and machinery, power disconnection,
manpower reduction, etc.
Even though there is no provision in the Companies Act, 1956 for withdrawal of cost audit order,
the withdrawal of Cost Audit is considered in case of permanent closure or sale or merger/
amalgamation of production activities for the product under reference. These exemptions are based on logic that approval for withdrawal can be accorded by the executive since the cost audit orders
are also issued by the executive.
Following documents are required to be furnished along with application for withdrawal:
• Printed or attested true copy of complete Annual Report containing balance sheet and profit
and loss account for the year for which exemption is being sought along with copies of the
same pertaining to preceding two years (or immediate last three years).
• An affidavit containing full facts of capacity utilization, turnover and financial status of the
company such as sick or not, duly signed by two Directors of the company and authenticated
by a Notary Public.
• Documentary evidences substantiating closure/winding-up, sale, merger, amalgamation, etc.
e.g. Court’s order, surrender of licenses, sale of plant and machinery, power disconnection,
manpower reduction, etc.
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