A seminar on New Draft (Cost Audit and Cost Record) Rules was organised here on Tuesday. On this occasion, Rakesh Bhalla, from Institute of Cost Accountants of India (ICAI), set up under an Act of Parliament, said that the new draft rules have failed to reflect vision, fix responsibility and accountability.
He also expressed concern over the draft rules, 2013, released by ministry of corporate affairs and said that it would hurt the economy adversely.
"In formulating the cost records and audit rules-2013, the government has totally ignored the recommendations of expert group which was formed in 2008 and implemented its recommendations in 2011. Now, after a gap of two years, the government has taken a complete U-turn by bringing the draft rules,"said Bhalla.
He added the draft rules failed to reflect the necessity and importance of mandatory requirement for maintaining cost-accounting records and cost audit in a market economy.
Vijender Sharma, members, past-chairman of Northern India Regional Council (NIRC), said the cost accounting system also threw data that were used for detecting frauds. An effective cost-accounting system supports the strong corporate governance mechanism, emphasising that the institute will take up the matter at all levels to ensure that the draft rules was modified appropriately.