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SECP approves draft pharmaceutical industry order 2013.

ISLAMABAD -- The Securities and Exchange Commission of Pakistan has approved draft Pharmaceutical Industry (Cost Accounting Records) Order, 2013 (the "Order") to facilitate maintenance of records by the companies engaged in the production, processing and manufacturing of pharmaceuticals products.

Pharmaceutical companies are required to maintain such cost accounting records including all particulars relating to utilization of material, labour or other inputs of items of cost to determine total product cost. The notification is being published for the information of all parties likely to be affected thereby.

The draft will become effective thirty days after its publication in the Official Gazette. Any objections or suggestions which may be received from any person in respect of the said draft before the expiry of the said date will be considered by the Commission.

Cost Audit practice was adopted in the Sub-Continent in 1967 and today a number of industries are following this practice. In Pakistan, "Cost Audit Rules" are applicable to five industries i.e. Cement, Sugar, Vegetable Ghee, Chemical Fertilizer, Synthetic and Rayon.

The Commission considers that maintenance of the cost accounting record and cost audit reporting is necessary to foster efficiency and promote sustainable growth. The primary advantage of maintaining cost accounting record as prescribed by the Commission in pharmaceutical industry is to determine accurate product cost.

It will enable a company to measure the efficiency of its manufacturing processes and to make improvements. It will furnish reliable data for comparing costs in different periods, for different volumes of output, in different departments and processes and in different companies.
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Publication:The Frontier Star (Northwest Frontier Province, Pakistan)
Geographic Code:9PAKI
Date:Apr 25, 2013
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