COST AUDITORS - PPT. pptx PRESENTATION

COST AUDITORS

1. RRR CHAMBERS Email ID- [email protected] 1 1

2. Coverage Highlights of Companies Act, 2013 SWOT Analysis on cost accountants Analysis in general Planning for future prospective 1 2 Coverage RRR Chambers - [email protected]

3. Companies Act, 2013 Features of the Act: Increases: Transparency Corporate Responsibility and Accountability Shareholder and Stakeholder Protection Its scope and coverage to cover missing links in the old Act Step towards Globalization Ensures Investor Democracy Addresses the needs of the Shareholders/ Stakeholders and public at large 1 3 RRR Chambers - [email protected]

4. Classification RRR Chambers - [email protected]

5. One Person Company - Introduced Key Managerial Personnel – Defined and Identified Associate Company – Definition Introduced Class Action - Introduced Small Company - Defined Foreign Company - Redefined 1 5 Highlights of the Act RRR Chambers - [email protected]

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7. Do you think only Company Secretaries have scope in Companies Act, 2013? 7

8. Do you think only Chartered Accountants have scope in Companies Act, 2013? 8

9. 1 9 RRR Chambers - [email protected]

10. Let us analyze……. …… for Professionals Companies Act, 2013 1 10 RRR Chambers - [email protected]

11. Pre-certification of Forms XBRL Appointment as Key Managerial Personnel Advising as Expert Appear before National Company Law Tribunal Become Member of National Company Law Tribunal Internal Audit Valuers Appointment as Interim / Company Administrator Appointment as Provisional / Company Liquidator Companies Act, 2013 1 11 RRR Chambers - [email protected]

12. Exclusive Opportunities of Companies Act, 2013 1 12 RRR Chambers - [email protected]

13. Secretarial Audit Annual Return Certification Companies Act, 2013 1 13 RRR Chambers - [email protected]

14. Exclusive Opportunities of Companies Act, 2013 1 14 RRR Chambers - [email protected]

15. Statutory Audit Tax Audit (Not as per Companies Act, 2013) Companies Act, 2013 1 15 RRR Chambers - [email protected]

16. Now, it is turn of Cost Accountants…. Companies Act, 2013 1 16 RRR Chambers - [email protected]

17. Companies Act, 2013 1 17 FLY HIGH RRR Chambers - [email protected]

18. Section 2(28) – Definition Cost Accountant as defined in Section 2(1)(b) of the Cost and Works Accountants Act, 1959 Section 2(1)(b) of Cost and Works Accountants Act, 1959 defines "Cost Accountant" means a person who is a Member of the Institute of Cost Accountants of India” Companies Act, 2013 1 RRR Chambers - [email protected]

19. Section 2(38) – Definition “Expert” includes An Engineer A Valuer A Chartered Accountant A Company Secretary A Cost Accountant Any other person who has the power or authority to issue a Certificate in pursuance of any law for the time being in force; Companies Act, 2013 1 19 RRR Chambers - [email protected]

20. Section 138(1) – Appointment as Internal Auditor Specified class of Companies required to appoint an Internal Auditor The Internal Auditor shall be a Chartered Accountant or Cost Accountant or such other Professional as may be decided by the Board Companies Act, 2013 1 20 RRR Chambers - [email protected]

21. Section 148 – Cost Audit on Central Government specification Central Government powers to notify Statutory Auditor cannot be a Cost Auditor Cost Auditing Standards to be complied with, in conducting Cost Audit Furnishing information to Central Government within 30 days Companies Act, 2013 1 21 RRR Chambers - [email protected]

22. Penalties On Default / Contravention by Company Company shall be punishable with fine not less than Rs.25,000/- but which may extend to Rs.5,00,000/- Every officer in default shall be punishable with Imprisonment for a term which may extend to 1 year or Fine not less than Rs.10,000/- but which may extend to Rs.1,00,000/- or both Companies Act, 2013 1 RRR Chambers - [email protected]

23. Section 275(1) – Appointment as Company Liquidator Cost Accountant can be appointed as Liquidator Panel containing names of Professionals maintained by Central Government Companies Act, 2013 1 23 RRR Chambers - [email protected]

24. Emerging Profession and gaining importance in Service industry Specialized in analyzing Cost element of the Products Facilitating fixation of prices of goods and services Channelizing the enterprise resources to most optimum, productive and profitable areas Promoting Corporate Governance through various operational disclosures to the Directors Providing audited cost data as regards contracts containing escalation clauses Companies Act, 2013 1 24 RRR Chambers - [email protected]

25. www.b5consulting.com 25 Lack of knowing strength Lack of aggressive approach Mingling with top mgt restricted Less branding Lack of utilization of skills WEAKNESS RRR Chambers - [email protected]

26. Opportunities of Cost Accountants Companies Act, 2013 1 26 RRR Chambers - [email protected]

27. Company Policies Management Functions Regulatory Compliances Ethics and Mutual Trust CORPORATE GROWTH Cost Accountant aligns everything to CORPORATE GROWTH Company with Cost Accountant www.b5consulting.com 27 26 RRR Chambers - [email protected]

28. CORPORATE GROWTH Companies Act, 2013 www.b5consulting.com 28 27 RRR Chambers - [email protected]

29. 29 Companies Act, 2013 Social Audit Corporate Development Audit Management Audit Internal Audit SOX Audit Audit Cost Audit 28 RRR Chambers - [email protected]

30. If an auditor while performing the audit, comes to know of an offence involving fraud is being / has been committed against the Company by officers / employees of the Company He shall immediately report the matter to the Central Government. No contravention by him if reported in good faith. If an auditor, does not comply with above he shall be punishable with fine not less than Rs.1,00,000/- but which may extend to Rs.25,00,000/- 1 30 Duties of Cost Auditor RRR Chambers - [email protected]

31. Companies Act, 2013 1 31 RRR Chambers - [email protected]

32. 1 32 Threats to Cost Accountants RRR Chambers - [email protected]

33. www.b5consulting.com 33 Threats to Cost Accountants Scope of Cost audit is less Concept of Cost Compliance Report removed Lack of support from industry Penalties and imprisonment for Cost accountants RRR Chambers - [email protected]

34. 1 34 RRR Chambers - [email protected]

35. On Default of Section 148 / Contravention by Cost Auditor Auditor shall be punishable with fine not less than Rs.25,000/- but which may extend to Rs.5,00,000/- If contravened willfully / knowingly with an intention to deceive The Company Shareholders Creditors Tax authorities he shall be punishable with fine not less than Rs.1,00,000/- but which may extend to Rs.25,00,000/- He shall also refund the remuneration received by him & Pay for damages to the Company, Statutory bodies or authorities or to any other person for loss arising out of incorrect or misleading statements made in Audit report. Companies Act, 2013 1 35 RRR Chambers - [email protected]

36. Relaxed eligibility norms for cost audit of companies facilitating other professionals decided by the Board for conduct of Audit. Threat of entry by other professionals. Increase in threshold limits for companies required to carry out cost audit. In turn reducing the total number of Companies required to carry out Cost Audit. Threshold limits Net worth increased from Rs. 5 crore to Rs. 500 crore Turnover increased from Rs.20 crore to Rs.100 crore. 1 36 Challenges under Cost Audit draft rules RRR Chambers - [email protected]

37. A LLP can be formed by Cost Accountants with other professionals and experts Creation of trust for CSR activities Creation of society for research activities Creation/ Structuring of OPC Register as Independent Director Take care of annual report with sustainability report Appointment of woman director on Board Opportunities 37 RRR Chambers - [email protected]

38. Various Segments… Opportunities in General 1 39 Telecommunication Industry Petroleum Industry Electricity Industry Sugar Industry Fertilizer Industry Pharmaceutical Industry Cement Industry Paper Industry Steel Industry RRR Chambers - [email protected]

39. Role of Cost Accountant in Telecommunication Industry….. A Statutory Auditor can analyze only the overall financial position of the Organization Whereas A Cost Auditor can only analyze the Profit Centers in the Organization. For eg : A Cost Auditor analyzes whether the Profit is through SMS Services or through other Value added Services, thereby facilitating decision making by the Management Companies Act, 2013 1 40 RRR Chambers - [email protected]

40. RRR Chambers - [email protected]

41. www.b5consulting.com 43 Planning for future Prospectives Role of Cost Management Accountant As Cost and Management Auditor As an Internal Auditor As a KMP As an Expert Advisor As a Valuer As a Company Administrator As a Liquidator RRR Chambers - [email protected]

42. 1 44 RRR Chambers - [email protected]