CMA Navneet Kr Jain
Quick Summary
One question always comes to the mind of the compliance officials of the organisations at the beginning of the year that whether they are required to appoint cost auditor or have to maintain cost records and in which form they have to maintain the cost records, if section 148 of the Companies Act is
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FAQ :
The primary trigger is the company's turnover from all products and services during the preceding financial year. For cost records maintenance, the turnover must exceed ₹35 crore, while for cost audit, the thresholds are ₹50 crore or ₹100 crore depending on the sector and product/service turnover.
Companies engaged in the production of goods or provision of services specified in Table A (Regulated Sectors) or Table B (Non-Regulated Sectors) of the Companies (Cost Records and Audit) Rules, 2014, are covered if they meet the prescribed turnover criteria.
Cost records are accounting and statistical records that relate to the utilisation of various resources for the manufacture of goods or the provision of services by organisations.
The appointment of a cost auditor must be reported to the Central Government (MCA) within thirty days of the Board meeting where the appointment was made, or within 180 days of the financial year's commencement, whichever is earlier, using Form CRA-2.
The Cost Audit Report must be filed with the MCA in XBRL format using Form CRA-4 within thirty days from the date of receiving the cost audit report, after the Board has considered and examined it.
Yes, micro enterprises and small enterprises, as defined by the Micro, Small and Medium Enterprises Development Act, 2006, are not covered by these requirements.
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