Compliance Report

Applicability of Cost Compliance Report :

From the year 2011-12 onwards every Company to which Cost Accounting Record Rules under section 209(1)(d) apply shall submit a Compliance Report, duly certified by the Cost Accountant, in respect of each of its Financial year commencing on or after 01.04.2011, to the Central Government, along with the Annexure in the prescribed Form, This record is to be submitted within 180 days from the close of the Company’s Financial year to which the Compliance Report relates.

Companies engaged in production, procession, manufacturing or mining activity falling under any one of the following category:

1. Net Worth of Rs. 5 Crores or more; or
2. Turnover exceeding Rs. 20 Crores ;or
3. Listed on any Stock Exchange

are required to maintain Cost Records on regular basis showing margin for each and every product manufactured/produced/constructed or services provided.

The companies will be required to file Compliance Report with the MCA within 180 days of the close of financial year.

It shall be the duty of MD/ Every Director and other officers of the Company to take all reasonable steps to secure Compliance by the Company with the provisions of these rules as he is liable to maintain accounts u/s 209(1)(d).

The Annexure to the compliance report shall be approved by the Board of Directors and certified by the Cost Accountant before submitting the same to the Central Government by the Company.