Regarding cost audit

This query is : Resolved

penta.kiransai (Querist)
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11 July 2016 The turnover of a company exceeds 1000 Cr but the individual product turnover does not exceed 35 Cr whether the cost audit is applicable?

CMA Satish Kumar Gupta

CMA Satish Kumar Gupta (Expert)
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05 December 2016 Dear Sir plz provide me your email address I will mail you a tool for checking cost audit in any company..

Aashok Kumar Sharma online

Aashok Kumar Sharma online

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20 July 2025 Regarding your query on cost audit applicability:

As per the Companies (Cost Records and Audit) Rules, 2014 (as amended), cost audit is required if:
The turnover of the company exceeds ₹100 crore in the immediately preceding financial year; or
The turnover of any product or service of the company exceeds ₹35 crore in the immediately preceding financial year.
In your case, overall turnover exceeds ₹1000 crore, which is way above ₹100 crore threshold.
Hence, cost audit is applicable even if individual product turnover is less than ₹35 crore because the overall turnover exceeds the prescribed limit.
Summary:

Condition Applicability of Cost Audit
Turnover of company > ₹100 crore Cost audit applicable
Turnover of individual product > ₹35 crore Cost audit applicable
Both conditions not met Cost audit not applicable
Since your company's total turnover exceeds ₹100 crore (₹1000 crore in your case), cost audit is mandatory irrespective of individual product turnover.

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