After receiving various representations from members of the Institute of Cost Accountants of India after notification of the Companies (Cost Records and Audit) Rules 2014, expressing grievances about the scope of the rules and their implications for the profession of Cost Accountancy, MCA has decided to constitute an Expert Committee to examine issues relating to maintenance of Cost Records and Cost Audit. The Committee may submit its report within a period of 3 months from its first meeting.

The expert committee will consist of the following

1. Shri R.S. Sharma, former CMD, ONGC – Chairman
2. Shri R.K. Jain, Additional Secretary, Ministry of Health & Family Welfare – Member
3. Shri Chandra Wadhwa, former President, ICWAI – Member
4. Smt. Aruna Sethi, Adviser (Cost), Ministry of Corporate Affairs – Member-Convener (The Chairman in consultation with the Committee may co-opt up to two members having regard to the exigencies of the Terms of Reference)

The terms of reference of the Committee shall be as under:

a) To examine the Companies (Cost Records and Audit) Rules 2014, including the prescribed classes of companies/industries/sectors, the threshold limits and recommend appropriate changes/modifications to be made thereunder keeping in view rational and relevant criteria to determine the basis of including or excluding a class or classes of companies;

b) To examine the current Cost Audit scenario in the country and to suggest measures to optimally utilize Cost Audit as an instrument of promoting transparency and efficiency in business and industry;

c) To identify and suggest principles that should govern assignment of greater opportunities to Cost professionals;

d) To suggest measures to enhance the utility of Cost Audit Reports to Government and other regulators/related agencies and the manner and extent of their filing;

e) To study prevalent international practices relating to Cost Records in large economies and draw comparison to the current Indian scenario;

f) To look into and make suitable recommendations about issues incidental to the above.

The constitution of the aforesaid committee will come as much needed relief to the profession of the cost accountant, who are extremely hit by the cost audit rules under the Companies Act 2014