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.