Cost audit

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satish kumar voleti (Querist)
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20 December 2012 As per the revised Companies Cost Accounting standard rules 2011 maintenance of costing records is made mandatory for the Construction Companies... now my query is that is it necessary for the Construction Company to appointment a cost auditor or is it sufficient if it file compliance certificate for the fy 2012-13....

please clarify me in this regard...

aadish

aadish (Expert)
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20 December 2012 Please go through that circular -Consequent upon notification of the Product or Activity Group classification published vide S.O. 1747(E) dated 7th August, 2012 and in supersession of the earlier Orders issued vide even number dated 2nd May 2011, 3rd May 2011, 30th June 2011 and 24th January 2012, the Central Government hereby makes the following Order.
2. In exercise of the powers conferred by sub-section (1) of section 233B of the Companies Act, 1956 (1 of 1956), the Central Government being of the opinion that it is necessary to do so, hereby directs that all companies to which the following Rules apply,
(a) Cost Accounting Records (Telecommunication Industry) Rules 2011;
(b) Cost Accounting Records (Petroleum Industry) Rules 2011;
(c) Cost Accounting Records (Electricity Industry) Rules; 2011;
(d) Cost Accounting Records (Sugar Industry) Rules; 2011;
(e) Cost Accounting Records (Fertilizer Industry) Rules 2011;
(f) Cost Accounting Records (Pharmaceutical Industry) Rules 2011;
and which are engaged in the production, processing, manufacturing or mining of the products/activities included in the said Rules or covered in the following product or activity groups [Table-I] and wherein the aggregate value of the net worth of the company as on the last date of the immediately preceding financial year exceeds five crore of rupees; or wherein the aggregate value of the turnover made by the company from sale or supply of all products or activities during the immediately preceding financial year exceeds twenty crore of rupees; or wherein the company's equity or debt securities are listed or are in the process of listing on any stock exchange, whether in India or outside India, shall get its cost accounting records, in respect of each of its financial year commencing on or after the 1st day of January, 2013, audited by a cost auditor who shall be, either a cost accountant or a firm of cost accountants, holding valid certificate of practice under the provisions of Cost and Works Accountants Act, 1959 (23 of 1959).

CMA Narendra Mundra

CMA Narendra Mundra (Expert)
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05 January 2013 You need to filr cost compliance certificate for FY 11-12.

plese see following link for further info:

http://icwai.org/icwainew/XBRL/docs/Circulars/Section-4/Sec-4-ClarificationFNo52-1-of25May.pdf

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