CARR 2011, Compliance
|We provide compliance report certification services as mandated by The Companies (Cost Accounting Records) Rules, 2011. The provisions relating to maintenance of Cost Accounting Records and Compliance Report thereon as required by the said rules are summarized belowIn exercise of powers conferred by section 642(1) read with section 209(1) (d) of the Companies Act, 1956, the Central Government has notified Cost Accounting Record Rules for the maintenance of cost records relating to the utilization of materials, labour and other items of cost, in the manner as prescribed, by specified class of companies engaged in production, processing manufacturing or mining operations of the prescribed products/activities. The aforesaid Cost records Rules 2011 were notified in suppression of all the existing 44 CARRs, as summarized below
G.S.R. No. 429(E) dated 3rd June, 2011 – The Companies (Cost Accounting Records) Rules, 2011 issued in supersession of 36 cost accounting records rulesG.S.R. No. 869(E) dated 7th December 2011 – The Companies Cost Accounting Records (6 Industry specific (IS) listed below) Rules 2011, issued in supersession of 8 cost accounting records rules
|Class of Companies|
|The cost accounting records rules are applicable to all companies where:|
|CARR 2011, Compliance Report|
|Every company to which the Common CARR or any of the IS CARR applies is required to submit a compliance report, in respect of each of its financial year commencing on or after the 1st day of April, 2011, duly certified by a cost accountant, along with the Annexure to the Central Government, in the prescribed form. MCA has issued a circular No. 8/2012 on 10 May 2012 making in mandatory on the part of Cost Auditors and Companies to file Cost Audit Reports and Cost Records Compliance Report in the XBRL format.Every company to which CARR applies shall submit the compliance report referred to in rule 5 of the rules, within 180 days from the close of the company’s financial year to which the compliance report relates.
Any contravention of the provisions of CARR, 2011 will render the company and every officer in default liable for punishment as provided under section 642(2) read with subsections (5) and (7) of section 209 of the Companies Act, 1956.
Section 209 (5) and (7) provides for that every officer of the company who is in default, shall be liable, in respect of each offence, to be punished with imprisonment for a term which may extend to six months, or with fine which may extend to ten thousand rupees
Section 642 (2) provides that a contravention of any rule made under subsection (1) shall be punishable with fine which may extend to five thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first during which such contravention continues.
If default is made by the cost accountant in complying with the provisions of these rules, he shall be punishable with fine, which may extend to five thousand rupees.