General Circular Nq62/2011 52/13/CAB-2011 Government of India Ministry of Corporate Affalrs Cost Audit Branch… — THE COST ACCOUNTANTS ACT, 1959

General Circular Nq62/2011 52/13/CAB-2011 Government of India Ministry of Corporate Affalrs Cost Audit Branch ***** 'B-1' Wing, 2nd Floor, Paryavaran Bhawan, CGO Complex, Lodhi Road, New Delhi 110 003 Dated the November 30, 2011 The President, Institute of Cost and Works Accountants of India, 12, Sudder Street, Kolkata 700 016 Subject: Cost Accounting Recordsand Cost Audlt = clrlicatlons about coveraqe oL certaln sectors thereunder Sir; Ministry has examined various issues raised by the companles andlor professionals in connection with the recently Issued circulars/notifications concerning cost accounting records and coverage of costaudit: To remove doubts and ambigultles, the following clarifications are Issued: (a) That the Companies (Cost Accounting Records) Rules; 2011 are not applicable to: (U) Wholesale or retall trading activities: (_) Banking, financial, leasing; investment, Insurance, education, healthcare; tourism, travel, hospitallty, recreation; transport services, business/professional consultancy; IT & IT enabled services, research & development; postal/courier services, etc: unless any of these have been specifically covered under any other Cost Accounting Records Rules; 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: constructing, servicing; etc: (Wv) Companles engaged In the production; processing, manufacturing Or mining activities till such time they commences their commercial operations: Ancillary products/activities of companies incidental to thelr maln operations (i.e. products/activlties that do not constltute thelr main line of business) and wherein the total turover from the sale of each s