W.e.f from Financial Year 2011-12, Professional (CA, CMA, CS) signing MCA Annual Return have to certify whether Cost Accounting Record
Rules -2011 (CARR) or Cost Audit Orders (CAO) are applicable on company
or not and mention Product or Service Category Code (ITC/ NPCS 4 Digit
Code). They have to certify it on Form 23 AC and Form 23 ACA on the following page:
Form 23 AC – On Page no 11, point VII,
Form 23ACA – On Page no 5, point IV,
Through this mechanism, Government will easily trace cases
where CARR or CAO is applicable and company contravenes provisions of
these rules.
Apart from this, now MCA Return will be filled in XBRL Format for below mention companies:
a) Listed Companies and their Indian subsidiaries; or
b) Companies having paid up capital of Rs 5 Crore and above; or
c) Companies having turnover of Rs 100 Crore and above;
Cost Audit or Maintenance of Cost Records (as the case may be)
are applicable on all companies whose return required to filled in XBRL
format. XBRL makes data analysis much easier than earlier formats, so
tracing of cases of contravenes of these rules will be easier.
So Professionals has to be very sure about CARR or CAO applicability before signing Return Form. Incase default is made by them disciplinary action will be taken against them.
With the help of my earlier articles I tried to clarify doubts
about applicability of Cost Audit & Maintenance of Cost Records.
Nowadays I receive quarries that Cost Audit / Cost Records are
applicable on company but MCA Return filled without Cost Audit / Cost
Records – Compliance Certificate, because they were unaware about its
applicability. What to do now????
In this case there are two situations
1. Return has not approved as yet
2. Return has been approved
Return has not approved as yet
Here you don’t need to lose sleep on your mistake. Follow the below mention steps for correction of your mistake.
i. Inform respective Registrar of Companies about this mistake.
ii. Last date of filling of Cost Audit Report and Compliance Certificate of Cost Records has been extended till 31st Jan 2013. Now you should fulfil provisions of Cost Audit or Cost Records as the case may be.
Return has been approved
If notice has not issued then, don’t need to worry. Follow the below mention steps for correction of your mistake.
i. Filled a Corrigendum to respective Registrar of Companies.