General Circular no.11/2012
F.No,52/1/Cab-2012
Government of India
Ministry of corporate affairs
Cost audit branch
***
Dated the 25th may,2012
To,
The President,
Institute of cost Accountants of India
12, sudder street,
Kalkata-700016
Subject: Cost Accounting Records and cost audit clarifications about Coverage of certain sectors there under.
Sir.
In partial modification of Para (b) (III) of the general circular no.67/2011 dated 30th November ,2011 it has been decided to extend exemption from mandatory cost audit to all units located in the specified zones such as special economic zones (SEZs) export processing zones (EPZs and free trade zones (FTZs) and also to the 100% export oriented units (EOUs) subject to the following:
a) Exemption from mandatory cost audit will be available only to those units of a company that either located in the specified zones or qualify as 100% EOUs and not to all other units of the same company
b) There will be no exemption from maintenance of cost accounting records and filing of compliance report with the MCA in compliance with the applicable cost accounting records rules
c) in case any regulatory body seeks cost data in respect of exempted units of any industry then all relevant units of such industry would be subject to cost audit in accordance with provisions of applicable rules /orders
d)the DTA (domestic tariff area) sales in all such exempted units for each year shall not exceed the permissible limits as per the policy in force in case their DTA sales for any year exceeds the permissible limits then the exemption from cost audit available to the unit shall stand withdrawn and the units would be subject to cost audit in accordance with the provisions of applicable rules /orders starting with the year in which exemption stood withdrawn and for every subsequent year thereafter
e) if any such exempted units either relocates outside the specified zones or lose 100% EOU status than the mandatory cost audit would become applicable from the year in which such change has taken place and for every subsequent year thereafter
2. The institute in requested to circulate this general circular for the information of all concerned
Copy to :
1 E-Governance cell ministry of corporate affairs Shastri bhavan new delhi with a request to upload this circular on the MCA™s website.
2. All Regional directors /registrars of companies
3. Ps to Cam /PS to MOS
4. Ps to secretary /special secretary
5. Ps to joint secretary (A) /Joint secretary (R) / Joint Secretary (M)
6. Ps to DII (DR) /DII (Policy)
7. Ps to Economic Adviser
