Dey Deshmukh Nevin & Associates LLP Cost Accountants A COMPLETE SOLUTION Behind Every Successful Business Decision, There is always a CMA.

COST AUDIT &

COST COMPLIANCE SERVICES

Dey Deshmukh Nevin & Associates LLPCost Accountants

A COMPLETE SOLUTION

Dey Deshmukh Nevin & Associates LLP Cost AccountantsHO : J-85, Sriniwaspuri New Delhi -110065 , +91-8010739043/9910239043 Presence at : Noida, Mumbai , Pune, Chennai, & Ahmedabad

Behind Every Successful Business Decision, There is always a CMA

Dey Deshmukh Nevin & Associates LLP, team of Practicing Cost Accountants, registered with The Institute of Cost Accountants of India and with MCA with Offices at Major cities in India managing by experienced Cost Accountants who are vest with diversified knowledge and exposure in the filed of Cost and Management Accountancy , Taxation, Finance & Auditing. Our team members comprises Experienced Cost Accountants, CA’s, CS’s, MBA’s & Chartered Engineer’s. We Committed our experience and skill to provide high quality professional service to the clients with commitment to the highest standards of ethics and integrity.We are specialised in Cost Audit and Cost Compliance Certification and maintenance of Cost Records as per CAAR 2011

Vision "To be one of India’s leading Professional services firm and to provide maximum value to its clients.“Mission "To be best in class, multifaceted accounting firm bounded by Code of Ethics, delivering clients best affordable services with assurance of professional integrity.“Respect We are committed to a philosophy of mutual respect, in our dealings with clients, people and all our stakeholders.Integrity We are committed to integrity in our efforts, in our commitments to clients and our people, and in our conduct provide high quality professional services to the clients.

About Us

Our Services

We understand our clients and there Presentation requirement in Financial Statement We provide user friendly Service

We are value leader in the field of Cost and Management Accountancy

We provide services all cross India through our Branch offices situated in major cities and managing by senior most CMAs

OUR CORE SERVICES INCLUDES

• Cost Audits and Cost Compliance certification as per C.A.R. Rule 2011 Issued by MCA• Certificate of Cost of production of captive consumed goods as per Rule 8 of Central Excise Act, 1944 • Certificate for Average Cost of transportation as per Rule 5 of the Central Excise Valuation Rule 2000• Other various certification under Excise, Custom , DGFT etc

• Revenue Assurance Audit and Regulatory Audits• Special Audits under Central Excise, Custom & Service Tax Acts

• VAT / Sales Tax Audit and Other Sales Tax Consultancy • Financial Accounting/Book keeping Outsourcing Services• Conversion of Financial Statement from Indian GAAP into IFRS & US GAAP.• Risk Management• Direct & indirect Tax Services : Return Filling, Assessment, Settlement ,etc.

• XBRL filling with MCA• Special Assignment related to cases with ROC, SEBI, Tax Authorities• Company secretarial works related to filling of annual return with ROC, company formation, etc• Business Finance Advisory: act as intermediary to facilitate Bank Finance and L/c & Bills Discounting

Our Offices & Leading experienced CMAsDey Deshmukh Nevin &

Associates LLP

J-85, Sriniwaspuri, New Delhi-110065 +91-8010739043/9910239043

[email protected] & NCR Ashish Dey

Noida Aravalli Apartment, Sector-52, Noida-201301 Shilpi Goyal

PuneFlat:10, Build A-12, New SKF Colony, Chinchwadgaon, Pune-33 Ashish Deshmukh

Mumbai A/906, Bhoomi Hills Chs Ltd., Thakur Village, Kandavali (E), Mumbai-101

Shanker Chaudhary

Chennai Dr Natesan Road, 1stLane, Triplicane,Chennai-05 John D Nevin

Dhanbad RaipurKolkata

Branch Offices

Head Office

Ahmedabad 170/B, ONGC, CISF Colony, Western Sector, ChandKheraAhmedabad-05, Gujrat Shivani Dhoble

Associate Offices

MANDADORY COST COMPLIANCE ORDER

GSR No. 429 (E) dated 3rd June, 2011prescribing The Companies (Cost Accounting Records) Rules , 2011 :

Applicable for all Companies Whose

Aggregate value of Net Worth > Rs 5 crores , ORAggregate value of turnover > Rs 20 Crs , OREquity/Debt securities listed in Stock Exchange

Glance at recent notifications issued by Cost Audit Branch of Ministry of Corporate

Affairs

Procedure for Cost Compliance certificate

1) Every companies CAR applicable must submit cost compliance certificate along with Annual return with MCA.

2) In the prescribed form3) Duly certified by Cost Accountant4) In respect of each of the FY

commencing on or after 1st April 2011

Cost Audit Order dated 2nd May ‘2011

MANDATORY COST AUDIT Order No. F. No. 52/26/CAB/2010,

dt. 2nd May ‘2011 for Cost Audit by all Companies in 8 Groups of

Regulated Industries.

Period of Reporting- Each of the FY commencing on or after the 1st April, 2011

8 Industries Covered

• Bulk Drugs• Formulation’• Fertilizers• Sugar• Industrial Alcohol• Electricity• Petroleum• Telecommunication

Criteria

• Aggregate value of Net Worth > Rs 5 crores , OR

• Aggregate value of turnover > Rs 20 Crs OR

• Equity/Debt securities listed in Stock Exchange

Glance at recent notifications issued by Cost Audit Branch of Ministry of Corporate

Affairs

Cost Audit Order dated 3rd May ‘2011

Subsequently modified on 30th June ‘2011

MANDATORY COST AUDIT Order No. F. No. 52/26/CAB/2010,

dt. 3rd May ‘2011 ( subsequently modified on 30th June ‘2011 ) for Cost Audit by all Companies in 6 Groups of Industries.

Period of Reporting- Each of the FY commencing on or after the 1st April, 2011

9 Industries Covered

• Cement• Tyres & Tubes• Steel Plants• Steel Tubes & Pipe• Paper• Insecticides• Glass• Paints & Varnishes• Aluminum

Criteria• Aggregate value of turnover

> Rs 100 Crs OR• Equity/Debt securities listed

in Stock Exchange

Glance at recent notifications issued by Cost Audit Branch of Ministry of Corporate

Affairs

Cost Audit Order dated 24th January 2012

MANDATORY COST AUDIT Order No. F. No. 52/26/CAB/2010,

dt. 24th January ‘2012 for Cost Audit by all Companies in 9 Groups of Industries.

Period of Reporting- Each of the FY commencing on or after the 1st April, 2012

9 Industries Covered

• Jute, Cotton, Silk, Woolen or Blended Fibers/Textiles

• Edible Oil Seeds and Oils(including vanaspati)

• Packaged Food Products• Organic & Inorganic Chemicals• Coal & Lignite• Mining & Metallurgy of Ferrous

& Non-Ferrous Metals • Tractors & other Motor

Vehicles(incl. automotive components)

• Plantation Products.• Engineering Machinery

(incl.Electrical & Electronic products)

Criteria

• Aggregate value of turnover > Rs 100 Crs OR

• Equity/Debt securities listed in Stock Exchange

Glance at recent notifications issued by Cost Audit Branch of Ministry of Corporate

Affairs

Cost Audit Order dated 6th November 2012

From FY 2013-14, Industries producing/processing followings products also covered under the cost audit :

Glance at recent notifications issued by Cost Audit Branch of Ministry of Corporate Affairs

Sl no. Name of the Product or Activity Group Sl no. Name of the Product or Activity Group

1Sugar and Sugar Products 19National long distance services2Molasses 20 International long distance Services3Ethyl Alcohol and other Spirits 21Public mobile radio trunk services4Petroleum Oils   Crude‐ 22Global mobile personal communication services5Petroleum Oils   Refined‐ 23Passive telecom infrastructure and tower facilities6Petroleum Gases and other Gaseous Hydrocarbons 24Cable landing stations7Other Petroleum Products 25Broadcasting and related services8Electrical Energy 26Other communication services not elsewhere specified9Bulk Drugs 27Transmission or distribution of electricity10Pharmaceutical Products 28Meat and Meat Products11Animal or Vegetable Fertilizers 29Marine Products12Mineral or Chemical Fertilizers  Nitrogenous‐ 30Milk and Milk Products13Mineral or Chemical Fertilizers  Phosphatic‐ 31Poultry and Related Products14Mineral or Chemical Fertilizers  Potassic‐ 32Bee Products15Mineral or Chemical Fertilizers-Other 33Vegetables16Basic telephone services  wired and WLL‐ 34Fruits and Nuts

17Cellular mobile telephone services   wireless and WLL‐ 35Coffee and Coffee Products

18 Internet and broadband services 36Tea and Tea Products 

37 Spices   processed or unprocessed‐ 68 Lubricating Preparations38 Cereals, Flour and Product of Cereals 69 Waxes and Wax Products39 Oil Seeds and Products of Oil Seeds 70 Explosives40 Other Seeds and Plants 71 Fireworks, Matches and Combustible Materials41 Vegetable Saps or Products 72 Photographic and Cinematographic Goods42 Animal or Vegetable Fats and Oils 73 Insecticides43 Sugar Confectionery or Chocolates 74 Chemicals   Plastics and Polymers‐44 Cocoa Products 75 Articles of Plastics and Polymers45 Prepared Food Products 76 Rubber and Rubber Products46 Mineral Water and Aerated Drinks 77 Rubber Tyres and Tubes47 Alcoholic Beverages 78 Raw Hides, Skins and Leather48 Vinegar 79 Leather Products49 Food Residues or Prepared Animal Feed 80 Wood and Wood Products50 Unmanufactured and 81 Pulp of Wood and other substances51 Tobacco Products 82 Newsprint52 Mineral Products 83 Paper and Paperboard53 Cement 84 Articles of Paper and Paperboard54 Mineral Fuels (other than Petroleum) 85 Silk55 Chemical Elements 86 Silk Yarn

56 Inorganic Chemicals and their Derivatives 87 Silk Fabrics

57 Organic Chemicals and their Derivatives (excluding Bulk Drugs) 88 Wool

58 Albuminoidal Substances,Starches, Glues and Enzymes 89 Wool Yarn

59 Miscellaneous Chemical Products 90 Wool Fabrics60 Tanning Substances 91 Cotton61 Colours, Dyes and Pigments 92 Sewing Thread62 Paints and Varnishes 93 Cotton Yarn63 Inks and Colours 94 Cotton Fabrics64 Plasters and Fillers 95 Other Textile Yarns or Fibers65 Essential Oils 96 Other Textile Fabrics66 Personal Care Products 97 Synthetic Yarns or Fibers67 Soaps, Detergents and Cleaning Agents 98 Synthetic Fabrics

99Carpets and textile floor coverings 128Batteries and Accumulators100Other Textile Fabrics or Products 129Electrical and Electronic Equipments or Appliances101Knitted or Crocheted Fabrics 130Railway Rolling Stock102Apparel and Clothing 131Parts of Railway Rolling Stock103Furnishings 132Railway Track Fixtures and Fittings104Footwear and Parts thereof 133Containers105Headgear and Parts thereof 134Commercial Vehicles (3 or more wheels)

106Articles of Stones, Plaster, Cement, Asbestos and Mica 135Passenger Vehicles (4 or more wheels)

107Ceramic Products 136Parts and Accessories of Vehicles108Glass and Glass Products 137Passenger Vehicles (2 and 3 Wheelers)   Motorised‐

109Pearls, Diamonds, Stones and Jewellery Articles 138Passenger Vehicles (2 or 3 Wheelers)   Non Motorised‐

110Primary Ferrous Materials 139Non powered Aircraft and parts thereof‐111Iron and Non Alloy Steel‐ 140Aircraft, Spacecraft and parts thereof112Stainless Steel 141Parachutes and Rotochutes113Other Alloy or Non Alloy Steel‐ 142Ships and Boats114Steel Products 143Floating Structures115Copper and Copper Products 144Optical Equipments and parts thereof116Nickel and Nickel Products 145Photographic or117Aluminium and Aluminium Products 146Cinematographic Equipment and parts thereof118Lead and Lead Products 147Measuring Instruments and parts thereof119Zinc and Zinc Products 148Surgical or Medical Instrument and parts thereof120Tin and Tin Products 149Clocks or Watches and Parts thereof121Other Base Metals and their Products 150Musical Instruments and Parts thereof

122Hand Tools 151Medical or Vehicular or other Furniture and Mattress and parts thereof

123Nuclear Reactors and Accessories 152Lights and Fittings124Boilers and Accessories 153Prefabricated Buildings125Engines or Motors and parts thereof 154Toys, games and sports Equipments126Machinery and Mechanical appliances 155Stationery Items

127Electric Motors, Generators,Transformers and Parts thereof 156Miscellaneous manufactured articles

Some Important Key Points

1. Appointment of Cost Auditors

The Audit Committee of the company shall be the first point of reference regarding the appointment of Cost Auditors.

The Cost Auditor has to be appointed by company within 90 days from the date of commencement of each financial year

by fling FORM 23C with the Central Government on Ministry of Corporate Affairs Portal.

On Filing the application, the same shall be deemed to be approved by the Central Government, unless contrary is heard within 30 days from the date of filing such application.

2. The Companies (Cost Audit Report) Rules, 2011 was notified by Ministry of Corporate Affairs on June 3rd, 2011 stating the revised rules for Cost Audit Report and in supersession of the Cost Audit Report Rules, 2001. The cost audit report submitted on or after April 1st, 2012, irrespective of the financial year of the company to which it relates, shall be in the form prescribed under these rules.

3. The Annexure prescribed with the cost audit report shall be approved by the Board of Directors before submitting the same to the Central Government by the cost auditor. The Annexure, duly audited by the cost auditor, shall also be signed by the Company Secretary and at least one Director on behalf of the company. In the absence of Company Secretary in the company, the same shall be signed by at least two Directors.

4. A cost accountant in full time practice or a firm of cost accountants appointed for conducting cost audit of a product/activity of a company is eligible to also authenticate the Compliance Report of the Company in respect of Companies (Cost Accounting Records) Rules 2011

Some Important Key Points

5 . A company coming under the purview of the Cost Audit for the first time, the cost auditor shall mention figures for the previous year (s) certifying by means of a note that the figures so stated are on the basis of information furnished by the management, for which he has obtained a certificate from them.

6. Cost Audit Report is to be prepared for the company as a whole in respect of the product/activity coming under cost audit.

7. Ministry of Corporate Affairs has issued the following revised Cost Accounting Record Rules vide notification dated December 7th, 2011

The Cost Accounting Records (Telecommunication Industry) Rules, 2011

The Cost Accounting Records (Sugar Industry) Rules, 2011

The Cost Accounting Records (Pharmaceutical Industry) Rules, 2011

The Cost Accounting Records (Petroleum Industry) Rules, 2011

The Cost Accounting Records (Fertilizer Industry) Rules, 2011

The Cost Accounting Records (Electricity Industry) Rules, 2011

8. Name and Details of Cost Auditor is compulsory in Annual Report .

9. CARO disclosure in Statutory Audit Report is mandatory in regards to cost accounting records maintenance.

Dey Deshmukh Nevin & Associates LLP Cost Accountants

Ashish DeyB.Com(H), ACMA,CMA(USA),DIFRS

CEO & Partner

HO : J-85, Sriniwaspuri, New Delhi-110065, India

: [email protected] / [email protected]

: +91-8010739043/9910239043,+91-11-26843258

Any Query

Give us Chance to Serve You

You