Filing Cost Audit and Compliance Report in XBRL Format
The Ministry of Corporate Affairs (MCA) in India had made it mandatory for the cost auditors and the companies to file Cost Audit Reports and Compliance Reports using the XBRL taxonomy, from 2011-12 .
These reports are based on XBRL Taxonomy. Hence it would have to be filed in XBRL format developed (Form-I & Form-A) according to the following Rules:
- Companies (Cost Accounting Records) Rules, 2011
- Cost Accounting Records (Telecommunication Industry) Rules 2011
- Cost Accounting Records (Petroleum Industry) Rules 2011
- Cost Accounting Records (Electricity Industry) Rules 2011
- Cost Accounting Records (Sugar Industry) Rules 2011
- Cost Accounting Records (Fertilizer Industry) Rules 2011
- Cost Accounting Records (Pharmaceutical Industry) Rules 2011
- Companies (Cost Audit Report) Rules, 2011
Reports to be filed
- Filing of Cost Audit Report with Central Government – Every Cost Auditor or every Lead Cost Auditor on behalf of all the Cost Auditors in a Company, has to file their Cost Audit Report and other documents with the Central Government as per sub-section (4) of section 233B of the Act, and rules made there under.
- Filing of Compliance Report with Central Government – Every company has to file its Compliance Report and other documents with the Central Government as per clause (d) of sub-section (1) of section 209 of the Act, and rules made there under.
Companies operating in the above mentioned industries, meeting the following criteria should have cost auditors to conduct their cost records and file in XBRL format from FY 2011-12 (Includes XBRL for overdue reports relating to any previous years):
- Aggregate value of net worth as on the last date of immediately preceding financial year exceeds Â Rs 5 crores or
- Aggregate value of turnover during the immediately preceding financial year exceeds Rs 20 crores or
- Company’s Debt or Equity Shares are listed or in the process of listing in India or outside India or
- Value of turnover during the immediately preceding financial year exceeds rupees 100 crores
Companies exempted from filing Cost Audit
Companies which are not covered under the company specific Â Cost Audit Orders issued prior to 31.3.2011 and/or under the industry specific Cost Audit Order No. 52/26/CAB-2010 dated 2nd May 2011, 30th June 2011 and 24th January 2012 are exempted from filing the Cost Audit Report. However, companies which meet the threshold limits as prescribed in the relevant Cost Accounting Records Rules 2011 are required to file Compliance Report in the XBRL format.
Companies exempted from filing Compliance Report
Companies which are not covered under any of the Cost Accounting Records Rules notified in 2011 are exempted from filing the Compliance Report.
The following forms are to be used :
- Cost Audit Report need to be filed in FORM “ I XBRL
- Compliance report need to be filed in FORM “ A XBRL.
Within 180 days from the end of the financial year
Certifying XBRL Filing for Cost Audit Report
The Cost Auditor [or the Lead Cost Auditor in case the company has more than one Cost Auditor] is required to digitally sign and file the Cost Audit Report for the company as a whole.
Certifying XBRL filing for Compliance Report
Any valid Member of the Institute of Cost Accountants of India who is either a full-time employee with the concerned company or who holds a full-time Certificate of Practice can certify the Compliance Report.
DataTracks is a global leader in preparation of financial statements in XBRL and iXBRL formats for filing with regulators. DataTracks prepares more than 12,000 XBRL statements annually for filing with regulators such as SEC in the United States, HMRC in the United Kingdom and MCA in India. DataTracks provides world-class services with its team of certified accountants experienced in US GAAP, UK GAAP, India GAAP and IFRS.
To find out more about DataTracks, visit www.datatracks.in or send an email to firstname.lastname@example.org
The views expressed are that of the author’s and DataTracks is not responsible for the contents or views expressed therein. If any part of this blog is incorrect, inappropriate or violates the IP rights of any person or organization, please alert us at email@example.com. We will take immediate action to correct any violation.