Govt ushers in strict cost audit norms
01/07/2014 17:37
In a move expected to check unfair trade practices, companies engaged in public-facing businesses like healthcare, education and construction will now have to follow a strict audit regime for their expenses as well as the cost of products and services provided by them, reported PTI. The new cost audit rules would also apply to a range of other businesses such as drugs and pharma, medical devices, telecom services, power, roads and infrastructure, sugar, fertilisers, petro products, defence products and services, railways, aeronautical services, steel, edible oil, metals and minerals, as also multi-product or multi-service companies, as per the media reports. According to media reports, within the healthcare space, the new rules would apply to companies engaged in running hospitals, diagnostic centres, clinical centres or test laboratories, among others. The new rules, which came into effect yesterday as part of the new Companies Act, would also apply to companies engaged in education services, other than services falling under philanthropy or as part of social spending without forming part of any business, as per the media reports.
01/07/2014 17:37
In a move expected to check unfair trade practices, companies engaged in public-facing businesses like healthcare, education and construction will now have to follow a strict audit regime for their expenses as well as the cost of products and services provided by them, reported PTI. The new cost audit rules would also apply to a range of other businesses such as drugs and pharma, medical devices, telecom services, power, roads and infrastructure, sugar, fertilisers, petro products, defence products and services, railways, aeronautical services, steel, edible oil, metals and minerals, as also multi-product or multi-service companies, as per the media reports. According to media reports, within the healthcare space, the new rules would apply to companies engaged in running hospitals, diagnostic centres, clinical centres or test laboratories, among others. The new rules, which came into effect yesterday as part of the new Companies Act, would also apply to companies engaged in education services, other than services falling under philanthropy or as part of social spending without forming part of any business, as per the media reports.
