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Current Affairs 2018 to 2022
PYQ 1200 Q/A Part - 1
PYQ 1200 Q/A Part - 2
PYQ 1200 Q/A Part - 3
PYQ 1200 Q/A Part - 4
PYQ 1200 Q/A Part - 5
Kerala PSC India Year Book Study Materials Page 221
Book's First PageCost Audit The companies engaged in the production of goods or providing services as specified in orders issued by the central government under Section 148 of the Companies Act, 2013 are required to include the particulars relating to the utilization of material or labour or to other prescribed items of cost in their books of account. Such companies which are required to maintain cost records, and which have prescribed turnover are also required to get their cost records audited by a cost accountant in practice. The Companies (Cost Records and Audit) Rules were notified in 2014 specifying the class of companies and the threshold limit, which require to maintain cost records and conduct audit thereof. The aforesaid rules cover 6 regulated sectors and 33 non-regulated sectors which fall under the ambit of Section 148 of the Companies Act, 2013 for maintenance of cost records and conducting of audit thereof subject to the specified threshold limits. The cost records help the compilation of cost database for the own use of such companies for the purpose of cost management, pricing and other related functions. These records are also used by various government agencies like price-fixation authorities, regulatory bodies, WTO implementation and monitoring agencies, Competition Commission of India (CCI), Serious Fraud Investigation Office (SFIO), revenue authorities, and other institutions. The Ministry analyses the cost audit reports and monitors compliance to the Act/Rules by the specified companies. Investor Education and Protection Fund The Companies Act provides for establishment of Investor Education and Protection Fund (IEPF) for promoting Investor Awareness and protecting their interests. The amount of dividend, matured deposits, matured debentures, application money, etc., which remained unpaid/unclaimed for a period of seven years from the date they first become due for payment, are transferred to IEPF. Section 205 C of the Companies Act, 1956 did not allow the refund of such amount to individual once it is transferred to IEPF. Section 125 of Companies Act, 2013 allows refund of unpaid amounts transferred to IEPF. Such refunds are to be made by the Investor Education and Protection Fund Authority under Section 125 of the Act. IEPF Authority was made functional from 2016. The IEPF Authority is also entrusted with the responsibilities of carrying out investor awareness activities using the amounts transferred to IEPF. Investor Awareness Programmes (IAPs) are organized in association with three professional institutes namely; (a) Institute of Chartered Accounts of India, (b) Institute of Company Secretaries of India and (c) Institute of Cost Accounts of India. In addition, investor awareness activities like Crawler messages on Doordarshan through Prasar Bharati and airing jingles on All India Radio for the period of 90 days to create and increase investor’s awareness were taken up. Indian Corporate Law Service Ministry of Corporate Affairs is the cadre controlling authority of the Indian Corporate Law service (ICLS). The erstwhile Indian Company Law Service was rechristened in 2008 as the Indian Corporate Law Service. Serious Fraud Investigation Office The Serious Fraud Investigation Office (SFIO) was set up in 2003. The Companies Act, 2013, interalia, has accorded statutory status to SFIO and its functions and powers have been