The President, 12, Sudder Street, Kolkata - 700 016 — THE COST ACCOUNTANTS ACT, 1959

The President, 12, Sudder Street, Kolkata - 700 016 General Circular No. 67/30l l 52/13/CAB-2011 Government of India Ministry of Corporate Affairs Cost Audlt Branch ***** Audlt B ***** 'B-1' Wing, 2" Floor, Paryavaran Bhawan, CGO Complex, Lodhi Road, New Delhi - 110 003 Dated the November 30, 2011 To, Institute of Cost and Works Accountants of India, Subject: Cost Accountina Records and Cost Audit - cm out coverage of certain sectors thereundrtr, sir, Ministry has examined various issues raised by the companies and/or professionals in connection with the recently issued circulars/notifications concerning cost accounting records and coverage of cost audit. To remove doubts and amblgultles, the following clarifications are issued: (a) That the Companies (Cost Accounting Records) Rule, 2011 are not applicable to: (I) Wholesale or retail trading actlvitles, (il) Ban king, financial, leasing, investment, Insurance, education, healthcare, tourism, travel, hospitality, recreation, transport services, business/professionaI consultancy, IT & IT enabled setvices, research & development, postal/courler services, etc. unless any of these have been specifically covered under any other Cost Accounting Records Rules. (iii) Companies engaged in rendering job work operations or contracting/ sub-contracting activities, and are paid only the job work or conversion charges, such as tailoring, baking, repairing, painting, printing, constructfng, servicing, etc. (IV) Companies engaged In the pmductlon, processing, manufacturing or mining activities till such time they commences their commercial operations. (v) Ancillary producls/activlties of companies inddental to their main operations (i.e. products/aetlvities that do not constitute their main line of business) and wherein the total turnov