CMA Navneet Kr Jain
Quick Summary
All About Cost Audit Applicability and its disclosures in other statutory documents The pandemic has again brought the focus on the importance of cost management of resources in the most effective and most efficient manner. The government of India had already mandated the maintenance of Cost Reco
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FAQ :
The first step is to check if the company's turnover exceeds Rs 35 Crores. If it does, you then need to verify if any of the company's activities are covered under Table A or Table B of the Companies (Cost Records and Audit) Rules 2014, using HSN code-wise turnover data filed with the GST department.
Cost records are accounting and statistical records that detail the utilisation of various resources for the manufacture of goods or the provision of services by an organisation.
For companies in Table A (Regulated Sectors), cost audit is applicable if overall annual turnover is Rs 50 crore or more, and the individual product/service turnover is Rs 25 crore or more. For Table B (Non-regulated Sectors), the overall turnover threshold is Rs 100 crore or more, with an individual product/service turnover of Rs 35 crore or more.
Companies must inform the appointed cost auditor and file a notice of appointment with the Central Government (MCA) within 30 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 data required includes costing information, HSN code-wise profitability, GST reconciliations, related party transactions, ratios, and value addition details.
Yes, service providers are covered if they are engaged in specific services listed in Table A or Table B of the relevant rules.
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