Present status of cost audit and cost compliance rules

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 November 2014 Dear Expert

Can anyone provide me current status of cost audit and cost compliance as amended by mca

Thanks

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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03 December 2014 refer the link below

http://www.mca.gov.in/Ministry/pdf/rules_2_30062014.pdf

Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2014 Dear sir

Wheather cost audit/cost compliance for f.y.2013-14 is to be done as per old COMPANIES (COST ACCOUNTING RECORDS), RULES and COMPANIES (COST AUDIT REPORT), RULES or as per Companies (cost records and audit) Rules, 2014

Thanks

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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10 August 2024 For the financial year 2013-14, the cost audit and cost compliance should be carried out according to the rules that were in effect during that period. Here’s how to determine which rules apply:

### **Cost Audit and Cost Records Rules for FY 2013-14**

1. **Applicable Rules for FY 2013-14:**
- **Companies (Cost Accounting Records) Rules, 2011**: These were applicable for maintaining cost accounting records for the financial year 2013-14.
- **Companies (Cost Audit Report) Rules, 2011**: These were the rules governing the cost audit report for the same period.

These rules were issued under the Companies Act, 1956 and continued to apply until the new rules under the Companies Act, 2013 came into effect.

2. **Transition to New Rules:**
- **Companies (Cost Records and Audit) Rules, 2014**: These rules came into effect from April 1, 2014, and are applicable for financial years beginning on or after that date. Therefore, for FY 2013-14, the new rules do not apply.

### **Summary:**

- For the **financial year 2013-14**, you should adhere to the **Companies (Cost Accounting Records) Rules, 2011** and the **Companies (Cost Audit Report) Rules, 2011**.
- The **Companies (Cost Records and Audit) Rules, 2014** apply from April 1, 2014, onwards, meaning they would be applicable for the financial year 2014-15 and subsequent years.

### **Steps for Compliance:**

1. **Review Old Rules:**
- Ensure you are familiar with the requirements and formats as specified in the Companies (Cost Accounting Records) Rules, 2011 and the Companies (Cost Audit Report) Rules, 2011.

2. **Prepare Cost Records:**
- Maintain cost records as per the requirements specified in the 2011 rules.

3. **Conduct Cost Audit:**
- Appoint a cost auditor and ensure the audit is conducted in line with the 2011 rules. The cost audit report should also be prepared according to these rules.

4. **File Reports:**
- Submit the cost audit report in compliance with the formats and procedures set out in the 2011 rules.

By adhering to the regulations that were in effect during the financial year 2013-14, you ensure compliance with the legal requirements and avoid any issues with regulatory authorities.