19 March 2008
i like to know is it necessary to have cost audit every year.. is there any exemption for non conducting of cost audit. which are the section i should refer for a detailed knowledge
19 March 2008
Cost audit is necessary only to those companies where central govt in its official gazzette mentions certain categories of co.s and several products for which cost audit will become necessary.Refer cost audit rules available in ICWAI web site
19 March 2008
SEC 233B OF COS.ACT refers to cost audit. 209(1)(d) refers to cost records to be maintained by a company. THERE IS NO EXEMPTION FROM COST AUDIT ONCE DECLARED BY GOVT. FOR A PARTICULAR INDUSTRY OR A COMPANY. YOU HAVE TO SPECIFICALLY SEEK EXEMPTION BY PLEADING WITH THE MINISTRY OF COMPANY AFFAIRS AS TO WHY YOU COULD NOT COMPLY WITH COST AUDIT FOR THAT PARTICULAR YEAR. every year the central govt. by order declares for what companies the cost audit to be conducted.every such notification is published in official gazette . companies also get an order from the ministry of company affairs to get the cost audit done. such details can also be found in icwai website or the monistry website. R.V.RAO
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