The Securities and Exchange Commission of Pakistan (SECP) has notified draft Synthetic and Rayon Companies Cost Accounting Records Order, 2012, for the companies engaged in production, processing and manufacturing of any of the synthetic and rayon products. These products include viscose staple fibre in all forms including polyester fibre, viscose filament yarn, viscose tyre yarn cord and acetate yarn fibre. The companies manufacturing these products are required to maintain such cost accounting records, including all particulars relating to utilization of material, labour or other inputs of items of cost as would be necessary. To bring uniformity to the cost records and cost audit reports, the SECP has developed the draft order in consultation with the Institute of Cost and Management Accountants of Pakistan (ICMAP). Cost audit can only be an effective regulatory tool when the cost records are properly prepared and cost audit reports are made on a uniform format for a particular sector. The draft order has been placed on the SECP website for the information of all stakeholders, the public and the companies engaged in the synthetic and rayon sector, to seek their feedback, and comments received within 30 days of publication of notification will be considered before final issue. SECP strives to make right regulations in the interest of the industry, as a whole and also in the interest of the other stakeholders. Cost audit can provide relevant and credible cost and revenue data to the stakeholders to support their decisions. Cost audit mechanism acts as a measure of efficiency and performance. It can serve as an important tool for effective enterprise governance, competitiveness and strengthening the regulatory mechanism. SECP’s regulatory apparatus aims at promoting sustainable growth by fostering efficiency and transparency.
