The Ministry of Corporate Affairs has set up an Expert Committee today under the chairmanship of R S Sharma, ex-CMD of ONGC, to look into the grievances of the Institute of Cost Accountants of India.

ET was first to bring out the injury suffered by the Institute in a story dated 2nd July 2014 under the Cost Audit Rules notified under the new Companies Act.

The government's action meets the Institute's long standing demand to give them a fair chance to represent their side and hence was met with a big sigh of relief from the fraternity. "Constitution of a formal Committee to examine the Rules is a big positive for us, since the earlier Rules were formed in a non-transparent way," mentioned a council member on condition of anonymity.

The Committee will include R K Jain, Additional Secretary, Ministry of Health and Family Welfare, Chander Wadhwa, former president of Institute of Cost Accountants of India and Aruna Sethi, Adviser (Cost), Ministry of Corporate Affairs. The chairman may add up to two more members if needed. While the committee has been asked to submit its result within three months from its first meeting.

The terms of reference to the committee include examination of the new Rules introduced in June '14, examining the prevalent Cost Audit scenario in the country, to suggest measures to improve utility of Cost Audit report to the government, to study prevalent global practices and to identify and suggest principles that should govern assignment of greater opportunities to Cost professionals. (PTI)