1 COST AUDIT & COST COMPLIANCE SERVICES Behind Every Successful Business Decision, There is always a CMACOST AUDIT & COST COMPLIANCE SERVICESDey Deshmukh Nevin & Associates LLPCost AccountantsA COMPLETE SOLUTIONDey Deshmukh Nevin & Associates LLP Cost AccountantsHO : J-85, Sriniwaspuri New Delhi , /Presence at : Noida, Mumbai , Pune, Chennai, & Ahmedabad
2 About UsDey 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 2011Vision "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 bestaffordable 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.
3 We are value leader in the field of Cost and Management Accountancy Our ServicesWe are value leader in the field of Cost and Management AccountancyWe provide services all cross India through our Branch offices situated in major cities and managing by senior most CMAsOUR 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 DiscountingWe understand our clients and there Presentation requirement in Financial StatementWe provide user friendly Service
4 Our Offices & Leading experienced CMAs Dey Deshmukh Nevin & Associates LLPHead OfficeDelhi & NCRJ-85, Sriniwaspuri, New Delhi/Ashish DeyBranch OfficesNoidaAravalli Apartment, Sector-52, NoidaShilpi GoyalMumbaiShanker ChaudharyA/906, Bhoomi Hills Chs Ltd., Thakur Village, Kandavali (E), Mumbai-101PuneFlat:10, Build A-12, New SKF Colony, Chinchwadgaon, Pune-33Ashish DeshmukhChennaiDr Natesan Road, 1stLane, Triplicane,Chennai-05John D NevinAhmedabad170/B, ONGC, CISF Colony, Western Sector, ChandKheraAhmedabad-05, GujratShivani DhobleAssociate OfficesDhanbadKolkataRaipur
5 MANDADORY COST COMPLIANCE ORDER Glance at recent notifications issued by Cost Audit Branch of Ministry of Corporate AffairsMANDADORY COST COMPLIANCE ORDERGSR No. 429 (E) dated 3rd June, 2011prescribing The Companies (Cost Accounting Records) Rules , 2011 :Applicable for all Companies WhoseAggregate value of Net Worth > Rs 5 crores , ORAggregate value of turnover > Rs 20 Crs , OREquity/Debt securities listed in Stock ExchangeProcedure for Cost Compliance certificateEvery companies CAR applicable must submit cost compliance certificate along with Annual return with MCA.In the prescribed formDuly certified by Cost AccountantIn respect of each of the FY commencing on or after 1st April 2011
6 Cost Audit Order dated 2nd May ‘2011 Glance at recent notifications issued by Cost Audit Branch of Ministry of Corporate AffairsCost Audit Order dated 2nd May ‘20118 Industries CoveredBulk DrugsFormulation’FertilizersSugarIndustrial AlcoholElectricityPetroleumTelecommunicationCriteriaAggregate value of Net Worth > Rs 5 crores , ORAggregate value of turnover > Rs 20 Crs OREquity/Debt securities listed in Stock ExchangeMANDATORY COST AUDITOrder No. F. No. 52/26/CAB/2010, dt. 2nd May ‘2011 for Cost Audit by all Companies in 8 Groups ofRegulated Industries.Period of Reporting- Each of the FY commencing on or after the 1st April, 2011
7 Glance at recent notifications issued by Cost Audit Branch of Ministry of Corporate Affairs Cost Audit Order dated 3rd May ‘2011Subsequently modified on 30th June ‘20119 Industries CoveredCementTyres & TubesSteel PlantsSteel Tubes & PipePaperInsecticidesGlassPaints & VarnishesAluminumCriteriaAggregate value of turnover > Rs 100 Crs OREquity/Debt securities listed in Stock ExchangeMANDATORY COST AUDITOrder 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
8 Cost Audit Order dated 24th January 2012 Glance at recent notifications issued by Cost Audit Branch of Ministry of Corporate AffairsCost Audit Order dated 24th January 20129 Industries CoveredJute, Cotton, Silk, Woolen or Blended Fibers/TextilesEdible Oil Seeds and Oils(including vanaspati)Packaged Food ProductsOrganic & Inorganic ChemicalsCoal & LigniteMining & Metallurgy of Ferrous & Non-Ferrous MetalsTractors & other Motor Vehicles(incl. automotive components)Plantation Products.Engineering Machinery (incl.Electrical & Electronic products)CriteriaAggregate value of turnover > Rs 100 Crs OREquity/Debt securities listed in Stock ExchangeMANDATORY COST AUDITOrder 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 Cost Audit Order dated 6th November 2012 Glance at recent notifications issued by Cost Audit Branch of Ministry of Corporate AffairsCost Audit Order dated 6th November 2012From FY , Industries producing/processing followings products also covered under the cost audit :Sl no.Name of the Product or Activity Group1Sugar and Sugar Products19National long distance services2Molasses20International long distance Services3Ethyl Alcohol and other Spirits21Public mobile radio trunk services4Petroleum Oils ‐ Crude22Global mobile personal communication services5Petroleum Oils ‐ Refined23Passive telecom infrastructure and tower facilities6Petroleum Gases and other Gaseous Hydrocarbons24Cable landing stations7Other Petroleum Products25Broadcasting and related services8Electrical Energy26Other communication services not elsewhere specified9Bulk Drugs27Transmission or distribution of electricity10Pharmaceutical Products28Meat and Meat Products11Animal or Vegetable Fertilizers29Marine Products12Mineral or Chemical Fertilizers‐ Nitrogenous30Milk and Milk Products13Mineral or Chemical Fertilizers‐ Phosphatic31Poultry and Related Products14Mineral or Chemical Fertilizers‐ Potassic32Bee Products15Mineral or Chemical Fertilizers-Other33Vegetables16Basic telephone services ‐wired and WLL34Fruits and Nuts17Cellular mobile telephone services ‐ wireless and WLL35Coffee and Coffee Products18Internet and broadband services36Tea and Tea Products
10 37Spices ‐ processed or unprocessed68Lubricating Preparations38Cereals, Flour and Product of Cereals69Waxes and Wax Products39Oil Seeds and Products of Oil Seeds70Explosives40Other Seeds and Plants71Fireworks, Matches and Combustible Materials41Vegetable Saps or Products72Photographic and Cinematographic Goods42Animal or Vegetable Fats and Oils73Insecticides43Sugar Confectionery or Chocolates74Chemicals ‐ Plastics and Polymers44Cocoa Products75Articles of Plastics and Polymers45Prepared Food Products76Rubber and Rubber Products46Mineral Water and Aerated Drinks77Rubber Tyres and Tubes47Alcoholic Beverages78Raw Hides, Skins and Leather48Vinegar79Leather Products49Food Residues or Prepared Animal Feed80Wood and Wood Products50Unmanufactured and81Pulp of Wood and other substances51Tobacco Products82Newsprint52Mineral Products83Paper and Paperboard53Cement84Articles of Paper and Paperboard54Mineral Fuels (other than Petroleum)85Silk55Chemical Elements86Silk Yarn56Inorganic Chemicals and their Derivatives87Silk Fabrics57Organic Chemicals and their Derivatives (excluding Bulk Drugs)88Wool58Albuminoidal Substances,Starches, Glues and Enzymes89Wool Yarn59Miscellaneous Chemical Products90Wool Fabrics60Tanning Substances91Cotton61Colours, Dyes and Pigments92Sewing Thread62Paints and Varnishes93Cotton Yarn63Inks and Colours94Cotton Fabrics64Plasters and Fillers95Other Textile Yarns or Fibers65Essential Oils96Other Textile Fabrics66Personal Care Products97Synthetic Yarns or Fibers67Soaps, Detergents and Cleaning Agents98Synthetic Fabrics
11 99Carpets and textile floor coverings128Batteries and Accumulators100Other Textile Fabrics or Products129Electrical and Electronic Equipments or Appliances101Knitted or Crocheted Fabrics130Railway Rolling Stock102Apparel and Clothing131Parts of Railway Rolling Stock103Furnishings132Railway Track Fixtures and Fittings104Footwear and Parts thereof133Containers105Headgear and Parts thereof134Commercial Vehicles (3 or more wheels)106Articles of Stones, Plaster, Cement, Asbestos and Mica135Passenger Vehicles (4 or more wheels)107Ceramic Products136Parts and Accessories of Vehicles108Glass and Glass Products137Passenger Vehicles (2 and 3 Wheelers) ‐ Motorised109Pearls, Diamonds, Stones and Jewellery Articles138Passenger Vehicles (2 or 3 Wheelers) ‐ Non Motorised110Primary Ferrous Materials139Non‐powered Aircraft and parts thereof111Iron and Non‐Alloy Steel140Aircraft, Spacecraft and parts thereof112Stainless Steel141Parachutes and Rotochutes113Other Alloy or Non‐Alloy Steel142Ships and Boats114Steel Products143Floating Structures115Copper and Copper Products144Optical Equipments and parts thereof116Nickel and Nickel Products145Photographic or117Aluminium and Aluminium Products146Cinematographic Equipment and parts thereof118Lead and Lead Products147Measuring Instruments and parts thereof119Zinc and Zinc Products148Surgical or Medical Instrument and parts thereof120Tin and Tin Products149Clocks or Watches and Parts thereof121Other Base Metals and their Products150Musical Instruments and Parts thereof122Hand Tools151Medical or Vehicular or other Furniture and Mattress and parts thereof123Nuclear Reactors and Accessories152Lights and Fittings124Boilers and Accessories153Prefabricated Buildings125Engines or Motors and parts thereof154Toys, games and sports Equipments126Machinery and Mechanical appliances155Stationery Items127Electric Motors, Generators,Transformers and Parts thereof156Miscellaneous manufactured articles
12 Some Important Key Points 1. Appointment of Cost AuditorsThe 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 yearby 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, stating the revised rules for Cost Audit Report and in supersession of the Cost Audit Report Rules, 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
13 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, 2011The Cost Accounting Records (Telecommunication Industry) Rules, 2011The Cost Accounting Records (Sugar Industry) Rules, 2011The Cost Accounting Records (Pharmaceutical Industry) Rules, 2011The Cost Accounting Records (Petroleum Industry) Rules, 2011The Cost Accounting Records (Fertilizer Industry) Rules, 2011The Cost Accounting Records (Electricity Industry) Rules, 20118. 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.
14 Dey Deshmukh Nevin & Associates LLP Cost Accountants Any QueryGive us Chance to Serve YouYouAshish DeyB.Com(H), ACMA,CMA(USA),DIFRSCEO & PartnerHO : J-85, Sriniwaspuri, New Delhi , India: /: / ,