Regarding cost audit
This query is : Resolved
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?
05 December 2016
Dear Sir plz provide me your email address I will mail you a tool for checking cost audit in any company..
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.
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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