CMA Intermediate · Corporate Accounting and Auditing · Cost Audit
Before issuing an order under section 148(1) for a class of companies regulated under a special Act (for example, a banking or insurance regulator's Act), what must the Central Government do?
The Central Government must consult the regulatory body constituted or established under the relevant special Act before issuing a cost records order for companies regulated under that Act, as provided in the proviso to section 148(1).
- AObtain the approval of the company's statutory auditor
- BConsult the regulatory body constituted or established under that special ActCorrect
- CObtain a resolution of the members of each such company
- DObtain approval of the Registrar of Companies
Explanation
The proviso to section 148(1) requires the Central Government to consult the regulatory body constituted or established under the special Act before issuing the order. It does not require auditor approval, member resolutions or Registrar approval.
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