TMI BlogCost Accounting Records and Cost Audit – clarifications regarding applicability and compliance requirements.X X X X Extracts X X X X X X X X Extracts X X X X ..... otifications concerning cost accounting records and cost audit, following clarifications are issued: (a) That the companies covered under Companies (Cost Accounting Records) Rules, 2011 shall only file a simple compliance report as per the notified Form-B (copy enclosed) and no other details of cost records are required to be filed with the Government. If all the products/activities of a company, excluding the exempted categories, are covered under cost audit, then the company will not be required to separately file the compliance report. (b) That for companies coming under the purview of the Companies (Cost Accounting Records) Rules, 2011 and the Companies (Cost Audit Report) Rules, 2011 for the first time, cost records and cos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (e) That in the General Circular no. 15/2011 dated 11th April 2011 regarding appointment of cost auditors by companies, it was provided that the Audit Committee shall obtain a certificate from the cost auditor certifying his/its independence and arm s length relationship with the company. In order that arm s length relationship is in fact ensured, it may be noted that cost auditor(s) appointed under section 233B(2) of the Companies Act, 1956 [whether for one or all of the company s products covered under cost audit], shall not provide any other services to the company relating to (i) design and implementation of cost accounting system; or (ii) the maintenance of cost accounting records, or (iii) act as internal auditor, whether a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 In my/our opinion, proper cost records, as per Companies (Cost Accounting Records) Rules, 2011 prescribed under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956, have/have not been maintained by the company so as to give a true and fair view of the cost of production/operation, cost of sales and margin of all the products/activities of the company. 3 Detailed unit-wise and product/activity-wise cost statements and schedules thereto in respect of the product groups/activities are/are not kept in the company. 4 In my/our opinion, the said books and records give/do not give the information required by the Companies Act, 1956 in the manner so required. 5 In my/our opinion, the said books and records are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. 3. etc. B Services Groups 1. 2. 3. etc. C Trading Activities (Product Group-wise) 1. 2. 3. etc. D Other Income Total Income as per Financial Accounts 3. RECONCILIATION ..... X X X X Extracts X X X X X X X X Extracts X X X X
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