Nagpur News : The Vidarbha Industies Association Tax & Corporate Law Forum & the Nagpur Chapter of Cost Accountants conducted a Joint workshop on COST AUDIT AND COST COMPLIANCE REPORT – Recent Devlopments , on Friday 12 th October at Udyog Bhawan. CMA Kunal Banerjee , Past President of Institute of Cost Accountants of India was the Key Speaker. He explained the evolution of Cost Audit over the years from a few selected industries to the recent developments in this Field . He gave reference of the various Notifications issued by the Ministry of Corporate affairs.
The Corporate having Turnover more than 20 Cr or Networth of more than 5 crores in the immediately preceeding Financial year or where in the company’s equity or debt securities are listed or are in the process of listing , which is engaged in Production, Processing, Manufacturing or mining activities will have to submit a Cost Compliance Certificate certified by a Cost Accountant from 1st April 2011.
The corporate with the same criteria who are engaged in the following Industry such as
Pharmaceutical, Fertilizers, Sugar, Electricity, Petroleum & Telecommunications shall get its cost accounting records audited by a Cost Auditor while the companies who are engaged in Industry such as Cement, Tyre & Tubes, Steel, Steel Tubes & Pipes, paper , Glass, Paints & Varnishes, Aluminium & insecticides will have to fulfill the criteria of turnover more than 100 crores for Cost Audit.
From Financial Year 2012 -13 some more Industries have been added for Cost Audit under the criteria of Turnover more than 100 Crores such as Jute, Cotton, Silk, Woolen or Blended Fibers ,Edible Oil seeds & Oils , packaged Food Products, Organic & Inorganic Chemicals, Coal & Lignite, Tractor & other Motor Vehicles , Plantation Products, Engineering Machinery. He also explained that there is a shift from Rule base costing to Principal based costing.
The Institute of Cost Accountants have suggested some formats of Cost Sheets but they are not Mandatory but can be changed according to the nature or usefulness for a particular company. He also said that the date for Submission of Cost Audit Report & Cost Compliance Certificate for the Financial year 2011-12 has been extended to 31 st December 2012 & both are to be submitted in XBRL Format. The Liability of Submission of Cost Audit Report is of The Cost Auditor, while the Cost Compliance Certificate has to be submitted by the Company.
The Workshop was well attended by Practicing Professionals from all the 3 Institutes as well as Representatives from the Industry which evinced keen interest by raising relevant queries which were promptly clarified by the speaker..
The program was jointly chaired by the President of VIA Mr. Prafull Doshi, Akash Agrawal, Hon. Secretary & Chairman of the NCCA CMA Deepak Khanuja. Mr. Prafull Doshi, Welcomed the Speaker & the Participants. In his Opening Remarks the Chairman of NCCA CMA Deepak Khanuja explained that the Workshop has been organized to make the Industry People aware of this recent amendments in Cost Audit.
The Convenor of Tax & Corporate law Forum CA Naresh Jakhotia conducted the proceedings very well . The Secretary of the Nagpur Chapter, CMA Vivek Chavan proposed a Vote-of-Thanks. .