Latest notifications by mca
- 1. Latest Notification by Ministry of Corporate Affairs The Companies (Cost accounting record) Rules, 2011 Vide the notification by ministry of corporate affairs dated 3rd June, 2011 the Companies Cost Accounting Record Rules, 2011 apply to every company, including a foreign company as defined under section 591 of the Act, which is engaged in the production, processing, manufacturing, or mining activities and wherein, the aggregate value of net worth as on the last date of the immediately preceding financial year exceeds five crore of rupees; or wherein the aggregate value of the turnover made by the company from sale or supply of all products or activities during the immediately preceding financial year exceeds twenty crore of rupees; or wherein the company’s equity or debt securities are listed or are in the process of listing on any stock exchange, whether in India or outside India. Provided that these rules shall not apply to a company which is a body corporate governed by any special Act; Provided further that these rules shall not apply to the activities or products covered in any of the following rules,- a) Cost Accounting Records (Bulk Drugs) Rules, 1974 b) Cost Accounting Records (Formulations Rules, 1988 c) Cost Accounting Records (Fertilizers) Rules, 1993 d) Cost Accounting Records (Sugar) Rules, 1997 e) Cost Accounting Records (Industrial Alcohol) Rules, 1997 f) Cost Accounting Records (Electricity Industry) Rules, 2001 g) Cost Accounting Records (Petroleum Industry) Rules, 2002 h) Cost Accounting Records (Telecommunication) Rules, 2002 Every company to which these rules apply, including all units (factories) and branches thereof shall, in respect of each of its financial year commencing on or after the 1st day of April, 2011, keep cost records. Every company to which these rules apply shall submit a compliance report, in respect of each of its financial year commencing on or after the 1st day of April, 2011, duly certified by a Cost Accountant, along with the Annexure to the Central Government, in the prescribed form.
- 2. The Companies (Cost Audit report) Rules, 2011 Vide notification dated 3rd June, 2011 the Companies cost audit report rules, 2011 shall apply to every company in respect of which an audit of the cost records has been ordered by the Central Government under sub-section (1) of section 233B of the Act. Every Cost Auditor, who conducts an audit of the cost records of the company, shall submit the report along with auditor's observations and suggestions, and Annexure to the Central Government in the prescribed form and at the same time forward a copy of such report to the company. The unit-wise, product-wise cost statement duly certified by the Cost Auditor are also to be kept in the company. The product group-wise cost statement of all the products and all units combined together will form part of the Cost Audit Report. The Companies (Cost Audit Orders) Industry specific Cost Audit Order for Regulated industries. Vide order F. No.52/26/CAB-2010 dated 2nd may, 2011 the Central Government directs that the companies to which the following rules apply, (a) Cost Accounting Records (Bulk Drugs) Rules 1974 (b) Cost Accounting Records (Formulations) Rules, 1988 (c) Cost Accounting Records (Fertilizers) Rules, 1993 (d) Cost Accounting Records (Sugar) Rules, 1997 (e) Cost Accounting Records (Industrial Alcohol) Rules, 1997 (f) Cost Accounting Records (Electricity) Rules, 2001 (g) Cost Accounting Records (Petroleum) Rules, 2002 (h) Cost Accounting Records (Telecommunication) Rules, 2002. wherein, the aggregate value of net worth as on the last date of the immediately preceding financial year exceeds five crore of rupees; or wherein the aggregate value of turnover from sale or supply of all its products or activities exceeds twenty crore of rupees or wherein the equity or debt securities are listed or in process of being listed in any stock exchange in India or outside India shall get its cost accounting record commencing on or after 1st April 2011 audited by Cost Auditor who shall be a Cost Accountant or firm of Cost Accountant holding valid certificate of practice under provisions of Cost & Works Accountants Act 1959. Industry specific Cost Audit Order for Unregulated industries. Vide order F. No.52/26/CAB-2010 dated 3nd may, 2011 the Central Government directs that the companies to which the following rules apply
- 3. (a) Cost Accounting Records (Cement) Rules,1997 (b) Cost Accounting Records (Tyres & Tubes) Rules, 1967 (c) Cost Accounting Records (Steel Plant) Rules, 1990 (d) Cost Accounting Records (Steel Tubes & Pipes) Rules, 1984 (e) Cost Accounting Records (Paper) Rules, 1975 (f) Cost Accounting Records (Insecticides) Rules, 1993. wherein the aggregate value of turnover from sale or supply of all its products or activities exceeds hundred crore of rupees or wherein the equity or debt securities are listed or in process of being listed in any stock exchange in India or outside India shall get its cost accounting record commencing on or after 1st April 2011 audited by Cost Auditor who shall be a Cost Accountant or firm of Cost Accountant holding valid certificate of practice under provisions of Cost & Works Accountants Act 1959. Industry specific Cost Audit Order for Unregulated industries Vide order dated F. No.52/26/CAB-2010 30th June, 2011 the Central Government directs that the companies engaged in the production, processing, manufacturing or mining of Cement, Tyres & Tubes, Steel, Paper, Insecticides, Glass, Paints and Varnishes, Aluminium, identifying industries with Relevant Chapter Heading of the Central Excise Tariff Act, 1985. including intermediate products and articles or allied products thereof, wherein the aggregate value of turnover from sale or supply of all its products or activities exceeds hundred crore of rupees or wherein the equity or debt securities are listed or in process of being listed in any stock exchange in India or outside India shall get its cost accounting record commencing on or after 1st April 2011 audited by Cost Auditor who shall be a Cost Accountant or firm of Cost Accountant holding valid certificate of practice under provisions of Cost & Works Accountants Act 1959. Industry specific Cost Audit Order for Unregulated industries. Vide order dated F. No.52/26/CAB-2010 24th Jan, 2012 the Central Government directs that the companies engaged in the production, processing, manufacturing or mining of Jute, Cotton, Silk, Woolen or Blended Fibers/Textiles, Edible Oil Seeds and Oils (incl. Vanaspati), Packaged food products, Organic & Inorganic Chemicals, Coal & Lignite, Mining & Metallurgy of Ferrous & non Ferrous Metals, Tractors & other Motor Vehicles (incl. Automotive Components), Plantation
- 4. Products, Engineering Machinery (incl. Electrical & Electronic Products) identifying industries with Relevant Chapter Heading of the Central Excise Tariff Act, 1985. including intermediate products and articles or allied products thereof, wherein the aggregate value of turnover from sale or supply of all its products or activities exceeds hundred crore of rupees or wherein the equity or debt securities are listed or in process of being listed in any stock exchange in India or outside India shall get its cost accounting record commencing on or after 1st April 2012 respectively audited by Cost Auditor who shall be a Cost Accountant or firm of Cost Accountant holding valid certificate of practice under provisions of Cost & Works Accountants Act 1959. All companies that were covered under specific orders dated 2nd May 2011 or 3rd May 2011 or 30th June 2011 or 24th January 2012 shall continue to comply with the earlier orders up to the financial year commencing prior to 1st day of January 2013 and thereafter the following order will apply; Vide order F. No.52/26/CAB-2012 dated 6th November, 2012 the Central Government directs that all companies to which the following rules apply 1- (a) Cost Accounting Records (Telecommunication Industry) Rules 2011 (b) Cost Accounting Records (Petroleum Industry) Rules, 2011 © Cost Accounting Records (Electricity Industry) Rules, 2011 (d) Cost Accounting Records (Sugar Industry) rules, 2011 (e) Cost Accounting Records (Fertilizer Industry) Rules, 2011 (f) Cost Accounting Records (Pharmaceutical Industry) rules, 2011; and which are engaged in the production, processing, manufacturing or mining of the products /activities included in the said rules or covered in the following products or activity groups (Table-1) and wherein, the aggregate value of net worth as on the last date of the immediately preceding financial year exceeds five crore of rupees; or wherein the aggregate value of turnover from sale or supply of all its products or activities exceeds twenty crore of rupees or wherein the equity or debt securities are listed or in process of being listed in any stock exchange in India or outside India shall get its cost accounting record commencing on or after 1st , January 2013 audited by Cost auditor who shall be a Cost Accountant or firm of Cost
- 5. Accountant holding valid certificate of practice under provisions of Cost & Works Accountants Act 1959. Table-I Sr. No. Product or Activity Group Code Name of the product or Activity group Central Excise Tariff Act (CETA) Chapter heading covered in the Product or Activity Group 1 1020 Sugar and Sugar Products 1701 to 1702 2 1021 Molasses 1703 3 1027 Ethyl Alcohol and other Spirits 2207 4 2004 Petroleum Oils-Crude 2709 5 2005 Petroleum Oils-Refined 2710 6 2006 Petroleum Gases and other Gaseous hydrocarbons 2711 7 2007 Other Petroleum Products 2712 to 2715 8 2008 Electrical Energy 2716 9 2012 Bulk Drugs 2901 to 2942 10 2015 Pharmaceutical Products 3001 to 3006 11 2016 Animal or Vegetable Fertilizers 3101 12 2017 Mineral or Chemical Fertilizers- Nitrogenous 3102 13 2018 Mineral or Chemical Fertilizers –Phosphatic 3103 14 2019 Mineral or Chemical Fertilizers-Potassic 3104 15 2020 Mineral or Chemical Fertilizers-Others 3105 16 5101 Basic telephone services- wired and WLL Not applicable 17 5102 Cellular Mobile telephone services-Wired and WLL Not applicable 18 5103 Internet and broadband services Not applicable 19 5104 National long distance services Not applicable 20 5105 International long distance services Not applicable 21 5106 Public mobile radio trunk services Not applicable 22 5107 Global mobile personal communication services Not applicable 23 5108 Passive telecom infrastructure and tower facilities Not applicable 24 5109 Cable landing stations Not applicable 25 5121 Broadcasting and related services Not applicable 26 5141 Other communication services not else where specified Not applicable 27 5406 Transmission or distribution of electricity Not applicable
- 6. 2- The central Government directs that all companies to which the Companies (Cost Accounting Records) Rules, 2011 apply and which are engaged in the Production, Processing, Manufacturing or Mining of the products / activities included in the following product or activities groups (Table-II), and wherein the aggregate value of turnover from sale or supply of all its products or activities exceeds Hundred crore of rupees or wherein the equity or debt securities are listed or in process of being listed in any stock exchange in India or outside India shall get its cost accounting record commencing on or after 1st , January 2013 audited by cost auditor who shall be a Cost Accountant or firm of Cost Accountant holding valid certificate of practice under provisions of Cost & Works Accountants Act 1959. Table-II Sr. No. Product or Activity Group Code Name of the product or Activity group Central Excise Tariff Act (CETA) Chapter heading covered in the Product or Activity Group 1 1002 Meat and Meet Products 0201 to 0210; 0410; 1601 to 1603 2 1003 Marine Products 0301 to 0307; 1604 to 1605 3 1004 Milk and Milks Products 0401 to 0406 4 1005 Poultry and related Products 0407 to 0408 5 1006 Bee Products 0409 6 1010 Vegetables 0701 to 0714 7 1011 Fruits and Nuts 0801 to 0814 8 1012 Coffee and Coffee Products (Incl. 210120) 0901 9 1013 Tea and Tea Products (Incl. 210120) 0902 10 1014 Spices-Processed or Unprocessed 0913 to 0910 11 1015 Cereals, Flour and Products of Cereals 1001 to 1008; 1101 to 1109 12 1016 Oil Seeds and Products of Oil Seeds 1201 to 1208 13 1017 Other Seeds and Plants 1209 to 1214 14 1018 Vegetable Saps or Products 1301 to 1302; 1401; 1404 15 1019 Animal or Vegetable Fats and Oils 1501 to 1508; 1520 to 1522 16 1022 Sugar Confectionery or Chocolates 1704; 1806 17 1023 Cocoa Products 1801 to 1805 18 1024 Prepared Food Products 1901 to 1905; 2001 to 2009; 2101 to 2106; 2501 19 1025 Mineral Water and Aerated Drinks 2201 to 2202 20 1026 Alcoholic Beverages 2203 to 2206; 2208 21 1028 Vinegar 2209 22 1029 Food Residues or Prepared Animal Feed 2301 to 2309 23 1030 Unmanufactured and Manufactured 2401; 2403
- 7. Tobacco 24 1031 Tobacco Products 2402 25 2001 Mineral Products 2502 to 2522; 2524 to 2526; 2528 to 2530; 2601 to 2621 26 2002 Cement 2523 27 2003 Mineral Fuels ( other than Petroleum) 2701 to 2708 28 2009 Chemical Elements 2801 to 2805 29 2010 Inorganic Chemicals and their Derivatives 2806 to 2837; 2839 to 2850; 2852 to 2853 30 2011 Organic Chemicals and their Derivatives (excluding Bulk Drugs) 2901 to 2942 31 2013 Albuminoidal Substances, Starches, Glues and Enzymes 3501 to 3507 32 2014 Miscellaneous Chemical Products 3801 to 3807; 3809 to 3825 33 2021 Tanning Substances 3201 to 3202 34 2022 Colours, Dyes and Pigments 3203 to 3207; 3212 35 2023 Paints and Varnishes 3208 to 3211 36 2024 Inks and Colours 3213; 3215 37 2025 Plasters and Fillers 3214 38 2026 Essential Oils 3301 to 3302 39 2027 Personal Care Products 3303 to 3307; 8212; 9615 to 9616 40 2028 Soaps, Detergents Cleaning Agents 3401 to 3402 41 2029 Lubricating Preparations 3403 42 2030 Waxes and Wax Products 3404 to 3407 43 2031 Explosives 3601 to 3603 44 2032 Fireworks, Matches and Combustible Materials 3604 to 3606 45 2033 Photographic and Cinematographic Goods 3701 to 3707 46 2034 Insecticides 3808 47 2035 Chemicals-Plastics and Polymers 3901 to 3915 48 2036 Articles of Plastics and Polymers 3916 to 3926 49 2037 Rubber and Rubber Products 4001 to 4010; 4014 to 4017 50 2038 Rubber Tyres and Tubes 4011 to 4013 51 3001 Raw Hides, Skins & Leather 4101 to 4107; 4112 to 4115 52 3002 Leather Products 4201 to 4203; 4205 to 4206 53 3004 Wood and Wood Products 4401 to 4421 54 3007 Pulp of Wood and other Substances 4701 to 4707 55 3008 Newsprint 4801 56 3009 Paper and Paper Board 4802 to 4813 57 3010 Articles of Paper and Paper Board 4814; 4816 to 4823 58 3012 Silk 5001 to 5003 59 3013 Silk Yarn 5004 to 5006
- 8. 60 3014 Silk Fabrics 5007 61 3015 Wool 5101 to 5105 62 3016 Wool Yarn 5106 to 5110 63 3017 Wool Fabrics 5111 to 5113 64 3018 Cotton 5201 to 5203 65 3019 Sewing Thread 5204; 5401 66 3020 Cotton Yarn 5205 to 5207 67 3021 Cotton Fabrics 5208 to 5212 68 3022 Other Textile Yarns or Fabrics 5301 to 5303; 5305 to 5308 69 3023 Other Textile Fabrics 5309 to 5311 70 3024 Synthetic Yarns or Fibers 5402 to 5406; 5501 to 5511; 5601 to 5609 71 3025 Synthetic Fabrics 5407 to 5408; 5512 to 5516 72 3026 Carpets and Textile Floor Coverings 5701 to 5705 73 3027 Other Textile Fabrics or Products 5801 to 5811; 5901 to 5911; 6301; 6305 to 6310 74 3028 Knitted or Crocheted Fabrics 6001 to 6006 75 3029 Apparel and Clothing 6101 to 6117; 6201 to 6217 76 3030 Furnishings 6302 to 6304 77 3031 Footwear and Parts thereof 6401 to 6406 78 3032 Headgear and Parts thereof 6501 to 6502; 6504 to 6507 79 3036 Articles of Stones, Plaster, Cement Asbestos and Mica 6801 to 6815 80 3037 Ceramic Products 6901 to 6914 81 3038 Glass and Glass Products 7001 to 7011: 7013 to 7020 82 3039 Pearls, Diamonds, Stones and Jewellery Articles 7101 to 7118 83 4001 Primary Ferrous Materials 7201 to 7205 84 4002 Iron and Non-Alloy Steel 7206 to 7217 85 4003 Stainless Steel 7218 to 7223 86 4004 Other Alloy or Non-Alloy Steel 7224 to 7229 87 4005 Steel Products 7301 to 7326 88 4006 Copper and Copper Products 7401 to 7413; 7415; 7418 to 7419 89 4007 Nickel and Nickel Products 7501 to 7508 90 4008 Aluminium and Aluminium Products 7601 to 7616 91 4009 Lead and Lead Products 7801 to 7802; 7804; 7806 92 4010 Zinc and Zinc Products 7901 to 7905; 7907 93 4011 Tin and Tin Products 8001 to 8003; 8007 94 4012 Other Base Metals and their Products 8101 to 8103; 8301 to 8311 95 4013 Hand Tools 8201 to 8211; 8213 to 8215 96 4014 Nuclear Reactors and Accessories 8401 97 4015 Boilers and Accessories 8402 to 8404 98 4016 Engines or Motors and Part thereof 8405 to 8412
- 9. 99 4017 Machinery and Mechanical Appliances 8413 to 8484; 8486 to 8487 100 4018 Electric Motors, Generators, Transformers and Parts thereof 8501 to 8505 101 4019 Batteries and Accumulators 8506 to 8507 102 4020 Electrical and Electronics Equipments or Appliances 8508 to 8519; 8521 to 8523; 8525 to 8548 103 4021 Railway Rolling Stock 8601 to 8606 104 4022 Parts of Railway Rolling Stock 8607 105 4023 Railway Track Fixtures and Fittings 8608 106 4024 Containers 8609 107 4025 Commercial Vehicles (3 or more wheels) 8701; 8704 to 8707; 8709; 8716 108 4026 Passenger Vehicles (4 or more wheels) 8702 to 8703 109 4027 Parts and Accessories of vehicles 8708; 8714 110 4029 Passenger Vehicles (2 and 3 Wheelers)- Motorised 8711; 8713 111 4030 Passenger Vehicles (2 or 3 Wheelers) Non- Motorised 8712; 8713; 8715 112 4031 Non- powered Aircraft and Parts thereof 8801; 8803 113 4032 Aircraft, Spacecraft and Parts thereof 8802 to 8803; 8805 114 4033 Parachutes and Rotochutes 8804 115 4034 Ships and Boats 8901 to 8904 116 4035 Floating Structures 8905 to 8908 117 4036 Optical equipments and Parts thereof 9001 to 9005; 9012 to 9013; 9033 118 4037 Photographic or Cinematographic Equipment and Parts thereof 9006 to 9008; 9010 to 9011; 9013 119 4038 Measuring instruments and Parts thereof 9014 to 9017; 9023 to 9033 120 4039 Surgical or Medical Instruments and Parts thereof 9018 to 9022; 9033 121 4040 Clocks or Watches and Parts thereof 9101 to 9114 122 4041 Musical Instruments and Parts thereof 9201 to 9202; 9205 to 9209 123 4043 Medical or Vehicular or Other Furniture and Mattress and thereof 9401 to 9404 124 4044 Light and Fittings 9405 125 4045 Prefabricated Buildings 9406 126 4046 Toys, Games and Sports equipments 9503 to 9508 127 4047 Stationery Items 9608 to 9612 128 4048 Miscellaneous manufactured articles 9601 to 9607; 9613 to 9614; 9617 to 9618 1-We assist in maintenance of your cost accounting records.
- 10. (a) We ensure that the cost records are kept on regular basis in such manner so as to make it possible to calculate per unit cost of production or cost of operations, cost of sales and margin for each of its products and activities for every financial year on monthly/quarterly/half-yearly/annual basis. (b) The cost records are maintained in accordance with the generally accepted cost accounting principles and cost accounting standards issued by the Institute; to the extent these are found to be relevant and applicable. The variations, if any, are clearly indicated and explained. (c ) The cost records are maintained in such manner so as to enable the company to exercise, as far as possible, control over the various operations and costs with a view to achieve optimum economies in utilization of resources. (d) We reconcile your cost records and cost statements, maintained under these rules with the audited financial statements for the financial year specifically indicating expenses or incomes not considered in the cost records or statements so as to ensure accuracy and to reconcile the profit of all product groups with the overall profit of the company. The variations, if any, are clearly indicated and explained. 2- We submit your compliance report to Central Government. We certify your compliance report and submit it to the central government in the prescribed Form -A in XBRL mode along with annexure. 3- We conduct your cost audit wherever applicable. We conduct an audit of the cost records of the company and submit the Cost Audit report to Central Government in the prescribed Form- I in the XBRL mode along with our observations and suggestions and Annexure and at the same time forward a copy of such report to you. 4- We also furnish Performance Appraisal Report to the Board/Audit Committee of the Company in the prescribed Form III to enable the management to take corrective steps to control current operations and plan for future wherever necessary. Thanks & best regards R.K.Shukla & Associates Cost Accountants Office- B-16/1 Nand Vihar Rohta Road Meerut-250002 (UP) Mob. 9027347530/ 7669292372 E-mail; rkshukla9123@rediffmail.com Cmarkshukla9123@gmail.com