In the first full year, over 5,000 companies have complied with the Ministry of Company Affairs order on mandatory cost audit.
In May 2011, MCA made cost audit mandatory for manufacturing units in sectors such as cement, tyre, steel, fertiliser, bulk drugs, formulations, sugar, paper, insecticides, petrochemicals, electricity and telecommunications.
A.S. Durga Prasad, Vice-President of the Institute of Cost Accountants of India, said here on Thursday said the indications suggested that managements of 5,000-odd companies submitted independently audited cost records with the MCA by September 30, 2012.
} In the second year, more companies are expected to submit cost audit records. Introduction of the audit substantially increased the number of cost accountants, around 1,000, turning towards auditing.
According to Suresh Chandra Mohanty, President of ICAI, currently there are some 2,383 practising cost accountants in the country.
The Union Government in recent years has taken initiatives to build and maintain authenticated cost records. These are to understand and analyse the costs of the Indian manufacturing sectors for tax purposes or for effective handling of issues like anti-dumping duties or inflation.
The institute, apart from undertaking capacity building and skill development exercises, is also currently focussing on cost related research. ICAI President said the Ministry of Commerce has asked it to study and analyse cost issues relating to anti-dumping duties.
The institute has established a cell for taxes. The cell will work on issues related to direct and indirect taxes with reference to generally accepted cost standards.