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ICWAI urges for utilizing the potential skills of members

effectively through more regulatory powers

New Delhi, September 12, 2009

Institute of Cost and Works Accounts of India (ICWAI), an apex body to regulate the profession of cost and management accountancy in India, today urged while meeting the Union Minister for Corporate Affairs (MCA) Salman Khurshid to empower the Institute through their members for more regulatory powers.   The Institute presented the strategic framework for ICWAI to the Honorable Minister.

In a bid to provide more visibility to the institute and the profession of cost & management accounting, ICWAI suggested for acceptance and implementation of some of the recommendations of the Expert Group immediately. The Institute also suggested the following:

• Redraft the proposed provisions for cost accounting and cost audit to remove the anomalies under proposed clause 131 of the new Companies Bill, 2009 vis-à-vis Section 209 (1) (d) and 233 (b) of the Companies Act 1956
• Cost Accountants be allowed to attest and certify statement under Revised Schedule VI.
• Inclusion of ICWAI representative in the Expert Group for IFRS constituted by MCA.
• Inclusion of Cost Accountant in the audit of LLP Accounts.
• Inclusion of Cost Accountants within the definition of “Accountants” of the Direct Tax Code Bill 2009, Clause 284 (2).
• Inclusion of the name of Cost Accountant in Form I under MCA-21.
• On a global pattern, change the name of the institute as Institute of Cost & Management Accountants of India.

Speaking on the occasion, Salman Khursid said, “I am quite confident that under the present scenario, the Cost and Management Accounting professionals can play a major role in government initiative to control the inflation and make essential goods and services available to the public at a reasonable price.”

He further added, “The Expert Group constituted by the MCA to Review Cost Accounting Records Rules, Cost Audit Report Rules and the Cost Accounting Standards in the present economic scenario has done excellent work. The Group has made valuable recommendations with the objectives of making the Indian industry more competitive while appreciating the need to position Cost Audit in the enterprise governance structure”.

G.N Venkataraman, President ICWAI said, “We urge MCA to allow level playing field and strategic framework for the profession.”

He further emphasized, “Serious lapses in Corporate Governance in India drives home the point which ICWAI has been advocating regarding Enterprise Governance. Corporate Governance is about how companies are directed and controlled.

This conformance is of course necessary – but a governance structure should also support an organization’s efforts to improve performance. There is an urgent need to move from compliance governance to business governance and in this area the structure of cost accounting records and cost audit can play a pivotal role for the benefit of the industry and society at large.”