Cost audit applicability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2013 Tell me Pls Cost Audit is applicable to Trading Companies in Retail or Wholesale But Listed on Bombay Stock Exchange.for FY 2011-12

Aditya Maheshwari

Aditya Maheshwari (Expert)
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22 February 2013 refer to cost accounting rules issued by MCA. In my view they are not applicable.
check whether they apply to u from this link
http://www.mca.gov.in/Ministry/companies_act.html

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2013 Since The Company is listed, But Not in Manufacturing or Processing Process, Logically It Should not be applied.

and Circular 67/2011 Also Clear That NA to Trading Companies in 1st point.

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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22 February 2013 Same thing i said. Not applicable to trading companies.

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2013 AND SIR WHAT ABOUT COST COMPLIANCE REPORT...WHETHER ITS APPLIES.
COST AUDIT REPORT IS NOT APPLICABLE, THEN COMPLIANCE REPORT IS APPLICABLE ?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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23 February 2013 No compliance report also not applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2013 Sir I am Confused Only Because:-

Mine Company is:-

Listed
>20 Cr Turnover
> 5 Cr. Networth

But Not Involved in any Manufacturing Activity., Its Trading Company Only

Sir Can u Give me Any reference in State of Your Answer.

Santosh Kalburgi

Santosh Kalburgi (Expert)
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09 November 2013 Hello,

For a pure trading company there is no cost audit applicable. But if the company is outsourcing the manufacturing or processing of products and selling them under its own brand.

Regards,
CMA Santosh G Kalburgi

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