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TMI BlogAppointment of statutory auditors by Company Law Board ‑ Fixation of audit fees ‑ Guidelines forX X X X Extracts X X X X X X X X Extracts X X X X ..... endations made by the board of directors of the company and in the light of factual merits of each case. It has, however, been observed that a number of representations are received every year from the auditors generally complaining about the inadequacy of the remuneration fixed by the Company Law Board. These representations, by and large, point to the need for fixing some norms, which may be followed uniformly by the Government companies while sending their recommendation to us so as to avoid discrimination and disparity in making a proper assessment of a reasonable remuneration. It has, therefore, been considered necessary to issue guidelines for Government companies regarding fixation of director s remuneration, a copy of which is enclo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of transactions involved, where a company is engaged in promotion of industries and participates in the shares, stocks, debentures or other securities of joint stock companies or is otherwise an investment company within the meaning of proviso to sub‑section (1) of section 372. 8. Total loans and advances made, together with number and amount of transactions involved, where a company is engaged in rendering financial assistance to various types of industries or dealing in hire‑purchase business. 9. Total number of vouchers (cash and journal) both with respect to accounts maintained at head office and at branches, units, project sites, etc. 10 . Whether the company has decentralised the system of maintaining the accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors/branch auditors should be so recommended by the board of directors that the element of TA/DA and other incidental out‑of‑pocket expenses, where necessary, is kept separate from the substantive remuneration. In other words, the remuneration will be fixed on substantive basis . The TA/DA and other out‑of‑pocket expenses may be paid as mutually agreed between the auditors and the company. No such expenses should, however, be allowed in case audit is conducted by a local firm of auditors. As for the remuneration for the work required to be done under any other statute (other than under the Companies Act), the same may be paid to the auditors under the head Charges for other services as mutually agreed to betwee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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