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Companies cost audit report rule 2011

Vidya Suresh (Article ) (38 Points)

15 November 2011

What is difference in Companies Cost Audit Report Rules 2011 & Cost Audit Report Rule 2001

Whether exisiting Para 1-18 of Annexue to Cost audit Report shall continues and applicable for Exam Dec 2011

What is differecne in Cost Accounting Record Rule & Companies Cost Accounting record Rule 2011 and wthere the previous one applicable to Dec 2011 exam

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Raman N (Audit Executive) (21 Points)
Replied 26 November 2011

Companies (Cost Audit Report) Rules, 2011 is applicable to cos. for which Cost Audit has been ordered by Central Govt under Section 233B.

It will become applicable to companies engaged in production, processing, manufacturing or mining activities.

“Cost Records”means books of account relating to utilisationof materials, labourand other items of cost as applicable to the production, processing, manufacturing or mining activities of the company.

Therefor it speaks about the records which are to be maintained by the company as a proof of ascertainment of profit for its each product groups etc..

Company should file Form A and B

Companies (Cost Accounting Records) Rules, 2011 is applicable to

-Cos. engaged in production, processing, manufacturing, or mining activities, and

-Networth exceeds Rs. 5 Crores or Turnover exceed Rs. 20 Crores or Listed cos.

MCA had earlier issued Cost Audit Report Rules, 2001 which has now been superseded by the Companies (Cost Audit Report) Rules, 2011.

Company should file Form I , II and III.

In the above said forms, form II conatils lot of annexures and which is tedious task.

--Ask for more clarification if required--