Cost audit is required or not

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Guest

Guest (Querist)

17 October 2012 Ours company reached nearest to 20 crores (19.50 Cores). for the year 2011-2012.

Ours is a manufacturing of machinery (Animal/Poultry Feed Milling plants).

Ours is a Pvt.Ltd., company.

Not listed in any stock exchange.

please clarify any body is it require cost audit or not.

When the cost audit will apply.
Are there any exemptions.

CMA Ajay Jaisingh

CMA Ajay Jaisingh (Expert)
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17 October 2012 Maintenance of Cost Records & Filing of Compliance Report:

On the basis of Turnover & Listing criteria, your company is not even required to maintain cost records.

Please refer below and check the NET WORTH of your company as on 31-03-2011 and 31-03-2012.

Cost Accounting Record Rules,2011 from Govt. of India are applicable from FY 2011-12 onwards to:

any COMPANY engaged in production, processing, manufacturing or mining,

having Turnover of Rs.20crores in immediately preceding FY
OR
Net Worth of Rs.5.00Crores as on the last day of immediately preceding FY
OR
listed or about to be listed in any of the stock exchange.

They are required to Maintain Cost Records with effect from 01-04-2011 and Compliance report FROM COST ACCOUNTANT to be submitted to Govt of India within 180days from the close of FY to which Compliance report relates, i.e., by 27th September for FY closing on 31st March. But the same has been extended upto 31-12-2012 for FY 2011-12 as the Compliance Report is to be filed in XBRL format for which required taxonomy is recently released by GOI.

Cost Audit:
Cost Audit is applicable w.e.f. FY 2011-12/2012-13 to various industries having previous year turnover or Rs.20Cr / Rs.100Cr (as applicable) or listed or about to be listed in any Stock Exchange.
Your Company falls under Turnover criteria of Rs.100 Crores. So, Cost Audit is not appliable.

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