Ministry of Corporate Affairs has issued different notifications with regard to common Cost Accounting Record Rules, 2011 on June 3, 2011 and six other Specific Cost Accounting Record Rules on Dec. 7, 2011 . Earlier there were 44 Cost Accounting Record Rules for different industries and Cost Records were required to be prepared as per specific formats mentioned under those rules i.e. different formats for different industries. Now as all the old notifications with regard to cost records have been abolished, the companies are required to prepare in any formats provided the records are capable of filling in Ministry.
We provide the consultancy to prepare these Cost Records, as per the Ministry Notification, which is fit for uploading to ministry, As per Companies Cost Accounting Records Rules 2011.
Cost Records means books of accounts relating to utilization of materials, labour and other items of cost, to facilitate calculation of true and fair cost of production or cost of operations, cost of sales, and margin for each product or service or activity, produced or provided by an entity including a non-profit entity, for any period, in compliance with Cost Accounting Standards issued by the Institute of Cost Accountants of India.
As per sub rule (2) of Rule 4, the companies are required to maintain cost records on regular basis in such manner so as to make it possible to calculate per unit cost of production or cost of operations, cost of sales and margin for each of its products and activities for every financial year on monthly/quarterly/half-yearly/annual basis. The cost statements are to be prepared for every unit and every product produced, processed, manufactured or mined.
As per sub rule (3), the cost records are to be maintained in accordance with the generally accepted cost accounting principles and cost accounting standards issued by the Institute; to the extent these are found to be relevant and applicable.