Cost audit applicability

This query is : Resolved

Dhananjay Jadhav (Querist)
Follow

13 September 2012 Hello Experts,
My product falls under chapter heading 3006 i.e. surgical sutures. Sectors which are subject to Cost audit, as given in MCA notification, do not include surgical equipments. neither does it include chapter heading 3006. Net worth, turnover are crossing the given limits as per give criteria.
I want to verify the applicability of cost audit for our organistaion.
Please advice
Reg
Dhananjay Jadhav

CA Ghanshyam Joshi

CA Ghanshyam Joshi (Expert)
Follow

14 September 2012 Dear Dhananjay,
Cost audit is applicable. Now the cost audit is applicable to the manufacturing concern having turnover greater than 20 Crores or net worth more than 5 Crores.

Message likes : 1 times

CA Ghanshyam Joshi

CA Ghanshyam Joshi (Expert)
Follow

14 September 2012 Cost record rules dated June 3, 2011
Applicability –
every company, including a foreign company as defined under section 591 of the Act, which is engaged in the production, processing, manufacturing, or mining activities
Specifically excludes all the companies covered under the cost audit order of May 2, 2011

which satisfy any one of the other criteria in the immediately preceding financial year
Net Worth in excess of 5 Cr
Turnover 20 Cr or more
Company is listed or is in the process of being listed

All companies meeting the above criteria are required to maintain cost records for each year beginning April 1, 2011.

A compliance report, duly certified by a cost accountant has to be submitted to the Central Government within 180 days from the close of the financial year.

Message likes : 1 times