Cost accountants protest against new cost audit draft rules

Cost Accountants (Pune Chapter) on Friday protested outside the Pune Municipal Corporation (PMC) against the new cost audit draft rules published by the Ministry of Corporate affairs. The accountants have demanded an immediate withdrawal of the rules claiming it detrimental to their field.

The recently published draft Cost Records and Cost Audit Rules 2013 severely curtail the scope of the Cost Audit Mechanism—a system put in place in 1965 and expanded steadily with a view to curb profiteering and other malpractices in the corporate sector. The draft rule proposes to exempt much of the private sector from this mechanism, while the focus remains only on government funded companies.

The proposed dilution of Cost Audit Mechanism is regressive in nature and will adversely affect the cost consciousness and cost competitiveness of the Indian industry and will put consumers to a great disadvantage .

Madhuvanti Sathe, Chairman, Pune Chapter of Cost Accountants, said the draft rules if finalised may come into effect from April 1, 2014.

The ministry has sought reactions till December 14. Currently, of the around 15,000 companies, only 600 companies will require cost audit. Most of these would be public sector companies. This will not only affect cost accountants but will also make it difficult for the government to keep prices and inflation under check, added.

Currently, there are around 65,000 cost accountants, of which 25, 000 are in the western region with around 1,500 in Pune.(Indian Express)