Our company is engaged in manufacturing and exporting of granites. We have turover of more than Rs. 100 crores. Whether appointment of cost auditor for auditing the cost records is applicable for us? Please advise.
CS Arjun Rajagopal (B.com, ACS) (1056 Points)
01 December 2016Our company is engaged in manufacturing and exporting of granites. We have turover of more than Rs. 100 crores. Whether appointment of cost auditor for auditing the cost records is applicable for us? Please advise.
shinil
(student)
(32 Points)
Replied 02 December 2016
Please find the enclosed attachment regarding applicability of cost audit for your company.
Jatin Bajaj
(CS)
(2928 Points)
Replied 02 December 2016
According to section 148 of the Companies Act , Read with Companie Cost Audit Rule, As your Company falls under point no 6 of Clause C of Rule 3 of Cost Audit Rule, and as per this rule if the Company is producing more than 1 product or service, any product or service in which the indivisual turnover is rupees 50 crore or more , then Company has to appoint Cost Auditor.
But in case Company is producing any specific product or service and if the net worth of the Company is rupees 150 crore or or turnover of 25 crore or more then the Company has to appoint Cost Auditor
CMA Satish Kumar Gupta
(CMA)
(232 Points)
Replied 05 December 2016
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