Chandigarh : The Chandigarh-Panchkula Chapter of The Institute of Cost & Works Accountants (ICWAI) in association with PHD Chamber of Commerce & Industry organized a seminar on Cost Audits, Compliance Reports & Cost Records Rules, 2011 at PHD House, Sector 31, Chandigarh, here today.
The seminar was based on recently issued notifications by Cost Audit Branch, Ministry of Corporate Affairs, Govt. of India. On 2nd May, 2011, 3rd May, 2011 and 3rd June, 2011, the Govt. has issued notifications regulating the maintenance of cost records data by Companies.The key note speaker of the seminar was Dr. Ashok Aggarwal, practicing Cost Accountant and expert on the subject from New Delhi. The Guest of Honours were Mr. Balwinder Singh, Central Council Member of ICWAI and Mr. Rakesh Bhalla, Member Northern Region of ICWAI.
Sh. Rakesh Bhalla, Member Northern Region of ICWAI said that on the one hand this is a great opportunity for cost accountants and at the same time it is a big challenge for producing quality result and giving value added services to the Industry. With the introduction of records maintenance in all industries, industry will be benefitted as they will get the awareness regarding the cost of production, wastage, efficiency level and ultimately help in enhancing revenue of the company and Govt. exchequer.
Mr. Balwinder Singh, Central Council Member of ICWAI said that the Govt has regularized the system of maintenance of cost records and cost audit with an objective to give regulatory push to make Indian Industries Cost competitive, attaining higher level of maturity in competitiveness and to strengthen corporate structure management. Before issue of notifications in May and June, 2011, the Govt had been ordering the Cost Audit of Companies on selective basis. It had been long pending demand of the Industry to remove discrimination in the selection of companies for cost audit. Considering this, the Govt on 2nd and 3rd May, 2011 has ordered the Cost Audit of all companies covered under 14 industries which are listed or in the process of listing or companies having specified turnover. Furthermore, all companies engaged in maufacturing, production, processing and mining having turnover exceeding Rs. 20 crore are required to maintain cost records. The Govt. has also simplified the procedure of appointment of cost auditor, Mr. Balwinder Singh said.
Dr. Ashok Aggarwal, Key Note Speaker said the earlier cost record rules had prescribed separate format & rules for every industry which were very cumbersome, The Govt, earlier had prescribed formats for every industry. The revised cost record rules 2011 has given freedom to companies to maintain cost records in formats as they may desire. The Govt has now prescribed the minimum content to be included in the records to be maintained. This will give convenience to industries, said Dr. Ashok Aggarwal