The Institute of Cost and Works Accountants of India (ICWAI) would voice its reservations over certain provisions of the Companies Bill 2009 when they meet the parliamentary standing committee of the ministrty of corporate affairs on October 10. Soon after the bill was introduced in parliament, the institute raised concerns about Section 131 of the new bill, which has excluded the services sector from the ambit of cost accounting.

The president of the institute GN Venkataraman told Financial Chronicle, “Section 131 is not properly worded and needs clarification,” he said. In a bid to make the bill more concise, the draft bill has clubbed sections 209 (1) (d) and 233B of Companies Bill 2008 into one – Section 131, which has excluded the services space. At the meeting we would look to discuss the overall bill however we would bring these to the notice of the committee,” Venkataraman said.

According to him, minister for corporate affairs Salman Khurshid has also voiced his approval about some suggestions made by the cost accounting body. However, the parliamentary committee would take the final call after which the bill would be passed to the parliament for approval. According to the Companies Bill 2008, which ultimately lapsed, under sections 209 (1) (d) companies engaged in production, processing and manufacturing activities were required to maintain cost records.

“There is still time left for changes to be incorporated in the bill,” Venkataraman said. The institute will also push for a proposal mooted by an expert group panel complied by members of industry chambers CII, Ficci, Assocham, ICAI and ICWAI, which states that firms with a turnover in excess of Rs 50 crore need to be brought under the purview of the cost auditing.