Sir, f n connection with the recently issued cireulars/notlficatlons concerning cost accounting records and c… — THE COST ACCOUNTANTS ACT, 1959

To, Sir, f n connection with the recently issued cireulars/notlficatlons concerning cost accounting records and cost audlt, 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-5 (copy enclosed) and no other detalls of cost records are requlred to be flled wlth the Government. If all the products/activities of a company, excluding the exempted categories, are covered under cost audlt, 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 Amounting Records) Rules, 2011 and the Companies (Cost Audit Report) Rules, 2011 for the first time, cost records and cost detalls, statements, schedules, etc. shall be kept in good order for the next elght financial years beginning with first year of application of the said Rules. (c) That the term "Turnover* defined in the Companies (Cost Accounting Records) Rules, 2011 shall exclude taxes & duties. It shaft have the same meaning, wherever It appears, in all other orders/rules Issued In ccrnnectlon with the cost accounting records and cost audit. (d) That for filing the cost audlt reports under the Companies (Cost Audlt Report) Rules, 2011, following procedure may be followed: (i) If only one product of a company is subject to cost audit and the company appoints more than one cost audltor, only a consolidated cost audit report [containing inter alia the qualifications, mrvatlons or suggestions If any glven by all the cost auditors] should be prepared General CJrcular No. 68/2011 52/13/CAB-2011 Government of Indla Ministry of Corporate Affairs Cost Audit Branch ***** Audit Br ***** 'B-1' Wing, 2nd Floor, P