'ICAI get assurance from Corp Affairs Min on cost audit rules'

The Institute of Cost Accountants of India has received assurance from the Corporate Affairs Ministry that cost audit rules would be finalised only after carefully studying suggestions from ICAI and other stakeholders.
ICAI in a statement said the assurance has been given by Corporate Affairs Minister Sachin Pilot.
The Minister has "assured that the new cost rules will be finalised after careful study of the suggestions given by the institute as well as inputs received from other stakeholders," ICAI said in a statement today.
Quoting the Minister, the statement also said that cost rules would not be finalised in haste and that concerns of students, CMA fraternity and society at large will be taken care of.

The statement was issued by ICAI President Suresh Chandra Mohanty.
Concerned over the proposal to relax eligibility norms for cost audit of companies, ICAI has urged the government to modify the draft rules, especially since the planned criteria excludes small and medium enterprises.
Going by the cost audit draft rules, issued on November 21 last by the Ministry, the threshold limits for companies required to carry out cost audit has been increased. The threshold limit for net worth of companies has been increased to Rs 500 crore from existing Rs 5 crore, while that for turnover has been raised to Rs 100 crore from Rs 20 crore.

The draft rules "fail to reflect the necessity and importance of mandatory requirement for maintaining cost accounting records and cost audit in a market economy," ICAI had said in November last year.