Sorry to bother you once again.
Yesterday, we had a discussion with our Statutory Auditors (Deloitte team) regarding Standard Costing.
New Rule i.e ICDS (Income Computation and Disclosure) is applicable from FY15 which talks about Valuation of Inventories.
It says that "Standard costing is not allowed" .
As per our understanding about Alpha, Part inventory will be valued at MAP at the end of quarter (which seems ok) but Product inventory will be valued at STD cost in each month. (Please see the attached DIT document)
We would also like to discuss the same matter during our visit - How to deal this situation ?
I am also attaching Minutes of Meeting with our statutory auditors.
Let me know, if you have any observation.