Cost Accountants and
Companies Act 2013
Role of Cost Accountants
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“EXPERT” includes a cost accountant.
Role in the Formation of the company for signing declaration of Form.
Appointment as Internal Auditor where there is a huge scope for Cost
Accountants
Certification under Mergers and Acquisitions Scheme.
The INTERIM ADMINISTRATOR OR THE COMPANY
ADMINISTRATOR as per the Tribunal order.
Role of Cost Accountants
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Act
as
PROVISIONAL
LIQUIDATOR
OR
COMPANY
LIQUIDATOR
PERSON ORDERED TO BE EXAMINED under section 300 may
employ cost accountants or other professionals entitled to APPEAR
BEFORE THE TRIBUNAL under section 432.
A cost accountant with fifteen years of experience is ELIGIBLE TO BE
APPOINTED AS A MEMBER OF THE TRIBUNAL, in addition to
other prescribed qualification.
Appear before the Appellate Tribunal
Role of Cost Accountants –
as Cost Auditor
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As per clause 148 (2) audit of cost records of class of companies, shall be
conducted in the manner specified in the order.
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As per clause 148 (3) audit shall be conducted by a Cost Accountant in
practice who shall be appointed by the Board .
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Cost Auditing Standards made mandatory.
Service Sector - Challenges
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The Service sector has been brought in under the ambit of Cost Audit
for the first time.
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Service Sector assumed greater importance after WTO has replaced the
concept of GATT to GATIS encompassing vital service activities like
Finance, Energy, Health, Education, etc.
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A system of Cost Consciousness needs to be created in these sectors to
maintain efficiency, performance and propriety in their operations to
be competitive with larger players entering these sectors from
developed countries with greater resources and better efficiency of
operations.
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Service sector, suffers seriously, from availability of authenticated
and reliable, activity-wise, input-output data which are important to
eliminate waste and improve efficiency.
Service Sector - Challenges
Institute is taking immediate action for:
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issuance of suitable publications in the form of
Guidance Notes,
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Developing
Cost
Accounting
Standards
specifically for the service sector.
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Organsing programs creating awareness among
the service sector industry with regard to the
maintenance of the Cost Records and its utility in
different parts of the country
Opportunities CMA Profession
Opportunities
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Study and arrive at true cost of delivering Health Services under
CGHS, Primary Health care centres and Government Hospitals.
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Conducting Social Audit of various Social Sector Schemes by looking at
Cost – Benefits involved
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Develop an appropriate costing model for primary, Secondary, Degree
and Professional levels of education.
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Analyzing the Cost structure, suggesting proper accumulation and
assignment of costs and arriving at appropriate price of the Utilities
and Public Services.
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Study the Government Procurement Process and suggest measures for
Cost efficient and Time effective Procurement System without
impairing quality.
Opportunities
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Assisting in appropriate drafting of the various contracts from costing
and pricing points of view. Working out the feasible Revenue Sharing
model in PPP Projects.
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Evaluating various Government Schemes / Projects by linking Physical
and Financial parameters. This will help in improving the transparency
and accountability of all concerned.
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Monitoring the Operational Efficiency of PSUs through analysis of
capacity, wastages, men-machine-material productivity and operational
Cost structure.
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Assist the government organizations in moving towards and adopting
Accrual Accounting concept so as to truly reflect the Operational
Performance of the Organization.
Thank you