Writing directly to PM ( in respectful and polite language) may have some positive impact. Any individual can write in his/her personal capacity. Such letters,if not seen by PM himself, are least forwarded by PMO to concerned ministry (with specific registration number) and are replied by ministry (with copy to PMO, and hence, not totally ignored). We can make our point to PMO. Some of the points are as under: -(1)This institute was created in 1959 under an Act of Parliament with very specific purpose.Some big frauds were committed by few very big industrial houses. It was felt by members of parliament that financial audit was not sufficient to detect such frauds. Hence additional audit mechanism was needed to look more deeply into the working of the company. Consequently the concept of Cost Audit was brought into picture. (2) China is leading in industrial production, as on date, because their cost of production is substantially low as compared to similar products produced in India. Lakhs of industrial units have been closed down in India, during the past few decades, due to this reason which has created a situation of widespread unemployment in India. (3) This problem of high cost of production cannot be solved until and unless we/industry know exact cost of production in different segments separately. (4) Cost Audit Reports specifically point out weak areas/wastage/ suggestions for improvement / suggestions for reducing cost etc. (5) By keeping the thrash hold limit as high as 500 crore and 100 crore for cost audit, the ministry has tried to keep maximum companies out of the purview of Cost Audit. This spoils the basic purpose. (6) By not keeping listed companies within Cost Audit( where public money is involved), management is given unlimited liberty. (7) Though cost rules may cover companies having turnover of more than 25 crore, but their is no mechanism to ensure compliance (in the absence of Cost Compliance Report). (8) Hence entire rules (which are yet to be gazetted) need a re-look.
Posted on: Mon, 14 Jul 2014 05:31:33 +0000
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