Future Belongs To Cost Accountants!!

Scope of Cost Audit is given Below:

Cost Audit 2011-12 & onwards

In case of following EIGHT INDUSTRIES, cost audit mandatory if

a) turnover exceeding 20 crores, or

b) net worth exceeding 5 crores, or

c) listed companies

1) Bulk Drugs

2) Formulations

3) Fertilizers

4) Sugar

5) Industrial Alcohal

6) Electricity Industry

7) Petroleum Industry

8) Telecommunications

Cost Audit 2011-12 & onwards

In case of following EIGHT INDUSTRIES, cost audit mandatory if

a) turnover exceeding 100 crores, or

b) net worth exceeding 5 crores, or

c) listed companies

1) Cement

2) Tyres & Tubes

3) Steel

4) Paper

5) Insecticides

6) Glass

7) Paints & Varnishes

8) Aluminium

Cost Audit 2012-13 & onwards

In case of following NINE INDUSTRIES, cost audit mandatory if

a) turnover exceeding 100 crores, or

b) listed companies

1) Textiles

2) Edible Oil

3) Packaged Food Products

4) Organic & Inorganic Chemicals

5) Coal & Lignite

6) Mining & Mettalurgy

7) Auto & Auto Components

8) Plantation Products

9) Engineering & Electricals

Cost Compliance Certificate 2011-12 & onwards

COMPLIANCE BY COST ACCOUNTANT is mandatory if

a) turnover exceeding 20 crores, or

b) net worth exceeding 5 crores, or

c) listed companies

d) IF COMPANY IS ENGAGED IN PRODUCTION, PROCESS, MANUFACTURING OR MINING ACTIVITIES

“Manufacturing Activity” includes any act, process or method employed in relation to -

 (i) transformation of raw materials, components, sub-assemblies, or parts into semi-finished or finished products; or

(ii) making, altering, repairing, fabricating, generating, composing, ornamenting, furnishing, finishing, packing, re-packing, oiling, washing, cleaning, breaking-up, demolishing, or otherwise treating or adapting any product with a view to its use, sale, transport, delivery or disposal; or

(iii) constructing, reconstructing, reconditioning, servicing, refitting, repairing, finishing or breaking up of any products. 

"Processing Activity” includes any act, process, procedure, function, operation, technique, treatment or method employed in relation to-

(i) altering the condition or properties of inputs for their use, consumption, sale, transport, delivery or disposal; or

(ii) accessioning, arranging, describing, or storing products; or

(iii) developing, fixing, and washing exposed photographic or cinematographic film or paper to produce either a negative image or a positive image; or

(iv) printing, publishing, finishing, perforation, trimming, cutting, or packaging; or

(v) pumping oil, gas, water, sewage or any other product; or

(vi) transforming or transmitting, distributing power or electricity; or

(vii) harboring, berthing, docking, elevating, lading, stripping, stuffing, towing, handling, or warehousing products; or

(viii) preserving or storing any product in cold storage; or

(ix) constructing, reconstructing, reconditioning, repairing, servicing, refitting, finishing or demolishing of buildings or structures; or

(x) farming, feeding, rearing, treating, nursing, caring, and stocking of living organisms; or

(xi) telecasting, broadcasting, telecommunicating voice, text, picture, information, data or knowledge through any mode or medium; or

(xii) obtaining, compiling, recording, maintaining, transmitting, holding or using the information or data or knowledge; or

(xiii) executing instructions in memory to perform some transformation and/or computation on the data in the computer's memory. 

“Production Activity” includes any act, process, or method employed in relation to –

(i) transformation of tangible inputs (raw materials, semi-finished goods, or sub-assemblies) and intangible inputs (ideas, information, know how) into goods or services; or

(ii) manufacturing or processing or mining or growing a product for use, consumption, sale, transport, delivery or disposal; or

(iii) creation of value or wealth by producing goods or services.

“Mining Activity” includes any act, process or method employed in relation to the extraction of ores, minerals, oils, gases or other geological materials from the earth’s crust, including sea bed or river bed.