Appointment of statutory auditors by Company Law Board ‑ Fixation of audit fees ‑ Guidelines for - Companies Law - Circular : No. 8/6/83‑IGC,

Circular : No. 8/6/83 IGC, dated 7 6 1984. Subject:- Appointment of statutory auditors by Company Law Board Fixation of audit fees Guidelines for The Government had circulated guidelines in 1976 vide Circular No. 7/76, dated 8 4 1976 [printed here as Clarification 1] regarding fixation of audit fees for statutory auditors, for Government companies appointed under section 619(2). The Institute of Chartered Accountants of India has represented that there has been a phenomenal increase in the cost of service relating to audit particularly in respect of salaries paid to audit staff, stationery costs and other miscellaneous costs on account of general rise in prices due to inflationary pressures but there has not been corresponding increase in the audit fee of auditors due to rise in the cost of services. It has, therefore, been considered necessary that the board of directors of Government companies/deemed Government companies while recommending fixation/re fixation of audit fee for their statutory auditors in accordance with the, norms, as specified in the circular mentioned above should also take into account the effect of rising cost due to inflation/rise in prices as additional factors while suggesting the quantum of audit fee to be fixed for such auditors.