R S Sharma Expert Committee constituted on Cost Records and Cost Audits

Union Ministry of Corporate Affairs on 19 July 2014 constituted R S Sharma Expert Committee on Cost Records and Cost Audits. The Committee will submit the report within three months.

The Expert Committee will review the Companies (Cost Records and Audit) Rules 2014 and the need to have a comprehensive policy towards the role of the cost professions in the corporate and other sectors of economy.

The Composition of the Committee

• R. S. Sharma, former Chairman and Managing Director, ONGC - Chairman
• R.K. Jain, Additional Secretary, Ministry of Health & Family Welfare - Member
• Chandra Wadhwa, former President, ICWAI - Member
• Aruna Sethi, Adviser (Cost), Ministry of Corporate Affairs - Member-Convener

Terms of Reference

• To examine the Companies (Cost Records and Audits) Rules, 2014 including the prescribed classes of companies/industries/sectors and threshold limits
• To examine the current cost Audit scenario in the country and to suggest measures to optimally utilise  Cost Audit as an instrument of promoting transparency and efficiency in business and industry
• To identify and suggest principles that govern assignment of greater opportunities to cost professionals
• To suggest measures to enhance the utility of Cost Audit Reports to the government and other regulators/related agencies and the manner and extent of their filing.
• To study prevalent international practices relating to Cost Records in large economies and draw comparison to current Indian scenario
• To look into and make suitable recommendations about issues incidental to the above.

The expert committee was constituted in lieu of the concern expressed by the Council of the Institute of Cost Accountants of India (CICAI) over notification of the Companies (Cost Records and Audit) Rules 2014.