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Mandatory cost audit filing may be done away with
New Delhi, Nov 19: Government said today it proposes to do away with the mandatory filing of cost audits by companies and has incorporated a provision to this effect in the Companies Amendment Bill 2003.
New Delhi, Nov 19: Government said today it proposes
to do away with the mandatory filing of cost audits by
companies and has incorporated a provision to this effect in
the Companies Amendment Bill 2003.
As per the Companies Act, most companies in India have to
submit cost accounting data to the government regardless of
whether they are operating in cost-controlled or free market
environments.
"The Companies (Amendment) Bill 2003 proposes to do away with the mandatory filing of cost audits. However, since the bill has been returned (by the cabinet for redrafting), we will have to see what is the final recommendation," Joint Secretary in the Department of Company Affairs Rajiv Mehrishi told reporters here.
He was addressing a seminar by the Confederation of Indian Industries questioning the need for cost accounting and new cost audit report rules.
Taking note of the fact that the context in which cost accounting was originally prescribed - when a large part of the economy was controlled by the government - industry captains said while there was no debate on the usefulness of such an exercise, there appeared no need any more to make its filing mandatory with the government.
The industry was represented by Wartsila president Subodh Bhargava, SRF's vice-chairman Arun Bharat Ram, Schenectday-BEC India's MD Manu Tandon, Tisco's VP finance R C Nandrajog and Toyota Kirloskar deputy MD K K Swamy. Institute of Cost and Work Accountants of India members Chandra Wadhwa and D V Joshi also spoke on the occasion.
Bureau Report
"The Companies (Amendment) Bill 2003 proposes to do away with the mandatory filing of cost audits. However, since the bill has been returned (by the cabinet for redrafting), we will have to see what is the final recommendation," Joint Secretary in the Department of Company Affairs Rajiv Mehrishi told reporters here.
He was addressing a seminar by the Confederation of Indian Industries questioning the need for cost accounting and new cost audit report rules.
Taking note of the fact that the context in which cost accounting was originally prescribed - when a large part of the economy was controlled by the government - industry captains said while there was no debate on the usefulness of such an exercise, there appeared no need any more to make its filing mandatory with the government.
The industry was represented by Wartsila president Subodh Bhargava, SRF's vice-chairman Arun Bharat Ram, Schenectday-BEC India's MD Manu Tandon, Tisco's VP finance R C Nandrajog and Toyota Kirloskar deputy MD K K Swamy. Institute of Cost and Work Accountants of India members Chandra Wadhwa and D V Joshi also spoke on the occasion.
Bureau Report